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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 811-10395
Pioneer Series Trust VII
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, 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: October 31
Date of reporting period: November 1, 2013 through April 30, 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 Emerging
Markets Local
Currency Debt Fund
--------------------------------------------------------------------------------
Semiannual Report | April 30, 2014
--------------------------------------------------------------------------------
Ticker Symbols:
Class A LCEMX
Class C LCECX
Class Y LCYEX
[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 21
Notes to Financial Statements 28
Approval of Investment Advisory Agreement 38
Trustees, Officers and Service Providers 42
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 1
President's Letter
Dear Shareowner,
A few months into 2014, we still expect U.S. economic growth for the year to be
in the 2.5% to 3% range, despite some weaker economic data releases during the
winter months driven in large part by harsh 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. 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 System
(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
suggested that rates may be raised roughly six months after the QE program is
fully tapered, that would still place the potential rate hike sometime in 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 faced 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 the 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 Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in 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 Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 3
Portfolio Management Discussion | 4/30/14
In the following discussion, portfolio managers Hakan Aksoy and Esther Law
review recent market events and describe the factors that affected the
performance of Pioneer Emerging Markets Local Currency Debt Fund during the
six-month period ended April 30, 2014. Mr. Aksoy and Ms. Law, both portfolio
managers at Pioneer, are responsible for the day-to-day management of the Fund.
Q How did emerging markets bonds and currencies perform during the six-month
period ended April 30, 2014?
A Local currency emerging markets bonds finished the six-month period with a
negative return, due largely to their poor performance from November 2013
through January 2014. The downturn was fueled by concerns about the
potential impact of the U.S. Federal Reserve's (the Fed's) decision to
"taper" its quantitative easing (QE) policy as well as slowing growth in
key emerging economies. The prospect of higher bond yields in the United
States drew cash out of the emerging markets, leading to weakness in bond
markets and fueling substantial sell-offs in certain emerging currencies.
January 2014, in particular, saw a sharp downturn in the currency markets,
leading to meaningful underperformance for local currency debt in the first
month of the year.
The markets stabilized and began to move higher from February 2014 onward,
as investors gradually became used to the idea of the Fed's tapering of QE.
Emerging markets bonds, following their weakness over the previous nine
months, offered relatively attractive yields that enticed a broader range of
investors once risk appetites began to recover. Despite their February to
April 2014 rebound, local currency bonds trailed their U.S. dollar-
denominated counterparts for the full six-month period ended April 30, 2014.
While local currency debt underperformed in the short term, we continue to
have a positive long-term view on the asset class based on the higher
yields, diversification benefits, and longer-term appreciation potential we
believe local currency debt offers.
Q How did the Fund perform during the six-month period ended April 30, 2014?
A Pioneer Emerging Markets Local Currency Debt Fund's Class A shares returned
-1.65% at net asset value during the six-month period ended April 30, 2014,
while the Fund's benchmark, the JP Morgan Government
4 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
Bond Index-Emerging Markets Global Diversified Index (the JP Morgan Index),
returned -1.48%. During the same period, the average return of the 104
mutual funds in Lipper's Emerging Markets Local Currency Debt Funds
category was -1.58% and the average return of the 353 mutual funds in
Morningstar's Emerging Markets Bond Funds category was 0.71%.
Q What investment decisions played the biggest roles in the Fund's benchmark-
relative performance during the six-month period ended April 30, 2014, both
from a positive and negative standpoint?
A Two aspects of the Fund's positioning stood out for their positive
contributions to relative performance during the period.
First, the portfolio's duration was below that of the JP Morgan Index
benchmark. (Duration is a measure of a portfolio's price-sensitivity to
changes in interest rates). Anticipating volatility in U.S. Treasuries, we
sought to reduce the Fund's interest-rate exposure by holding
shorter-duration bonds where appropriate. In addition, we allocated a
substantial portion of the portfolio's assets to corporate bonds. Since
corporate bonds in the emerging markets typically have a lower duration
than government debt, this also helped to reduce the Fund's interest-rate
sensitivity during the period. Further, corporate bonds generally offer
higher yields than government issues, yet in many cases the underlying
financial strength of corporations is as good - or better - than that of
governments. The Fund's weighting in corporate bonds as of April 30, 2014,
was approximately 40% of total investment portfolio, reflecting our view
that the corporate segment of the market offers a meaningful long-term
opportunity.
The second helpful aspect of our investment approach during the period was
the Fund's defensive positioning. We believed a defensive strategy was
appropriate given the risks in the global economy. The defensive posture of
the portfolio aided Fund performance given the volatility that occurred in
the first half of the six-month period. It should be noted, however, that
the defensive strategy detracted from performance to a certain degree once
the market began to recover. Nevertheless, we believe that the most
effective way to generate positive Fund performance over time is through
country allocations and individual security research, and not by attempting
to boost returns by taking on excess portfolio risk.
By far the biggest detractor from the Fund's performance relative to the
benchmark during the period came from country allocations. In particular,
the portfolio's positions in Russia, South Africa, and Turkey hurt the
Fund's relative performance.
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 5
Q How was the Fund's portfolio positioned as of April 30, 2014?
A We employ an active investment approach that seeks to capitalize on value
opportunities and avoid market segments with a less attractive risk/return
profiles. We are currently finding the most compelling investments in Latin
America. While the region's economies aren't as efficient as those in other
parts of the world, there is also a lower risk of political disruptions. We
believe the relative political stability provides the latitude for
performance upside if the region's economies do indeed become more
efficient in the years ahead. Mexico represents the portfolio's largest
overweight in Latin America, as the country is enacting meaningful reforms
and its economy is supported by a strong trading relationship with the
United States. We also have a portfolio tilt toward Peru, which has
substantial foreign-currency reserves, and Colombia, which has a stable
economy and is benefiting from inflows stemming from its increased
weighting within certain key benchmark indices. The Fund has a
neutral-weight in Brazil. While Brazil's slowing economic growth represents
a headwind for the country's bond market, that factor is offset to some
extent by the attractive yields on its local-currency debt.
In the Europe/Middle East/Africa (EMEA) region, several aspects of the
Fund's positioning deviate from the JP Morgan Index and industry peer
groups. For instance, the Fund is underweight in Russia, and the Russian
bonds the portfolio does own are of shorter duration. Russia's slowing
economic growth made us cautious about the country even before the Ukrainian
conflict became a factor, and now the growth outlook is even murkier due to
the possibility of international sanctions. The Fund is overweight in
Poland, where the bond market has been supported by rising exports and a
healthy domestic economy. The Fund is underweight in Hungary, where yields
are too low to offset the potential currency risk, and slightly overweight
in Nigeria, which offers attractive, low double-digit yields and - in
contrast to other countries within EMEA - has minimal exposure to the
problems in the Ukraine. The Fund holds a neutral position in South Africa
and Turkey. While Turkey offers attractive yields and a favorable growth
outlook, we believe the country's upcoming elections will lead to elevated
volatility in its financial markets.
India, which is not represented in the JP Morgan Index benchmark, is the
portfolio's top country pick within Asia. We believe this year's elections
will bring about positive change, and we think the country's central bank
will adopt favorable, growth-oriented policies under the direction of its
new governor, Raghuram Rajan. We also like Indonesia, which has a positive
growth outlook and a favorable trade-off of risk and return potential.
6 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
Q What is your outlook for emerging markets debt?
A We hold a cautiously optimistic outlook for emerging markets bonds for the
remainder of 2014. Economic growth in the emerging markets is slowing from
an average of about 5% in 2012 to the 4% to 4.5% range, but the pace
remains well above that of the developed markets. Such growth rates should
attract assets from lower-yielding countries over time, which is a positive
for the supply-and-demand equation. As noted earlier, investors also have
become more comfortable with the idea of Fed's tapering of its QE program,
meaning that the market impact of the issue is now largely in the rear-view
mirror.
Having said this, we also expect that volatility in the emerging debt
markets will remain high. U.S. Treasury yields declined over the first four
months of 2014, but over the longer term, we expect that the 10-year
Treasury yield will move above the 3% level. In addition, we expect that the
cycle of interest-rate increases in the emerging markets still has a bit
further to run. That translates to a higher cost of funding for emerging
markets countries, which increases the odds of periodic disruptions like the
one that occurred during January 2014. Geopolitical issues, such as the
conflict in the Ukraine, also represent a potential headwind to performance.
Overall, however, we believe the emerging markets are on track for improved
performance in 2014. An important element of support are the high yields
available in the emerging markets relative to those available in the
developed world, which not only attracts demand from yield-seeking
investors, but also provides a favorable starting point for total return.
Against this backdrop, we believe our diversified*, actively-managed, and
long-term investment approach can continue to add value for the Fund's
shareholders.
Please refer to the Schedule of Investments on pages 16-20 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 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.
* Diversification does not assure a profit nor protect against loss in a
declining market.
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 7
To the extent the Fund invests in issuers located within specific countries or
regions, the Fund may be particularly affected by adverse markets, rates, and
events which may occur in those countries and regions.
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 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.
At times, the Fund's investments may represent industries or sectors that are
interrelated or have common risks, making them more susceptible to any economic,
political, or regulatory developments or other risks affecting those industries
and sectors.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
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.
8 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
Portfolio Summary | 4/30/14
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Foreign Government Bonds 59.1%
U.S. Corporate Bonds 40.9%
Country Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Mexico 11.4%
Brazil 9.5%
South Africa 9.5%
Turkey 9.0%
Poland 8.9%
Malaysia 8.3%
Indonesia 6.4%
Thailand 6.3%
Supranational 5.9%
Ireland 5.5%
Hungary 4.8%
Columbia 4.2%
South Korea 3.7%
Peru 2.0%
Luxembourg 1.6%
Norway 1.2%
United Kingdom 1.1%
Chile 0.7%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total debt holdings)*
1. Thailand Government Bond, 3.625%, 6/16/23 4.02%
-----------------------------------------------------------------------------------------
2. Akbank TAS, 7.5%, 2/5/18 3.91
-----------------------------------------------------------------------------------------
3. South Africa Government Bond - CPI Linked, 2.75%, 1/31/22 3.04
-----------------------------------------------------------------------------------------
4. America Movil SAB de CV, 6.45%, 12/5/22 2.90
-----------------------------------------------------------------------------------------
5. Export-Import Bank of Korea, 7.55%, 8/27/15 2.77
-----------------------------------------------------------------------------------------
6. Gazprombank OJSC Via GPB Eurobond Finance Plc, 8.617%, 12/15/15 2.59
-----------------------------------------------------------------------------------------
7. Emgesa SA ESP, 8.75%, 1/25/21 2.53
-----------------------------------------------------------------------------------------
8. Poland Government Bond, 3.0%, 8/24/16 2.51
-----------------------------------------------------------------------------------------
9. Poland Government Bond, 4.75%, 10/25/16 2.51
-----------------------------------------------------------------------------------------
10. Russian Railways via RZD Capital Plc, 8.3%, 4/2/19 2.48
-----------------------------------------------------------------------------------------
* 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 Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 9
Prices and Distributions | 4/30/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 4/30/14 10/31/13
--------------------------------------------------------------------------------
A $8.72 $9.07
--------------------------------------------------------------------------------
C $8.71 $9.06
--------------------------------------------------------------------------------
Y $8.73 $9.08
--------------------------------------------------------------------------------
Distributions per Share: 11/1/13-4/30/14
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.1950 $ -- $ --
--------------------------------------------------------------------------------
C $0.1622 $ -- $ --
--------------------------------------------------------------------------------
Y $0.2065 $ -- $ --
--------------------------------------------------------------------------------
JP Morgan Government Bond Index--Emerging Markets Global Diversified Index is an
unmanaged, comprehensive, global, local emerging markets index, and consists of
regularly traded, liquid-fixed-rate, domestic currency government bonds to which
international investors can gain exposure. Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. It is not possible to invest directly in an
index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 11-13.
10 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
Performance Update | 4/30/14 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 Emerging Markets Local Currency
Debt Fund at public offering price during the periods shown, compared to that of
the JP Morgan Government Bond Index-Emerging Markets (JPM GBI EM) Global
Diversified Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
JPM GBI
Net Public EM
Asset Offering Global
Value Price Diversified
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
Life-of-Class
(2/4/2013) -7.28% -10.67% -6.79%
1 Year -9.72% -13.82% -9.42%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.79% 1.20%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Emerging Markets Local JPM GBI EM Global
Currency Debt Fund Diversified Index
2/28/2013 $9,550 $10,000
4/30/2013 $9,777 $10,290
4/30/2014 $8,827 $ 9,321
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 March 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 Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 11
Performance Update | 4/30/14 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 Emerging Markets Local Currency
Debt Fund during the periods shown, compared to that of the JP Morgan Government
Bond Index-Emerging Markets (JPM GBI EM) Global Diversified Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
JPM GBI
EM
Global
If If Diversified
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life-of-Class
(2/4/2013) -7.94% -7.94% -6.79%
1 Year -10.42% -10.42% -9.42%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.54% 2.10%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Emerging Markets Local JPM GBI EM Global
Currency Debt Fund Diversified Index
2/28/2013 $10,000 $10,000
4/30/2013 $10,233 $10,290
4/30/2014 $ 9,168 $ 9,321
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 March 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 Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
Performance Update | 4/30/14 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 Emerging Markets Local Currency
Debt Fund during the periods shown, compared to that of the JP Morgan Government
Bond Index-Emerging Markets (JPM GBI EM) Global Diversified Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
JPM GBI
EM
Global
If If Diversified
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life-of-Class
(2/4/2013) -7.00% -7.00% -6.79%
1 Year -9.47% -9.47% -9.42%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.53% 0.85%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Emerging Markets Local JPM GBI EM Global
Currency Debt Fund Diversified Index
2/28/2013 $5,000,000 $5,000,000
4/30/2013 $5,121,704 $5,144,969
4/30/2014 $4,636,823 $4,660,476
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 March 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 Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 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 Emerging Markets Local Currency
Debt Fund
Based on actual returns from November 1, 2013, through April 30, 2014.
---------------------------------------------------------------------------------------------------
Share Class A C Y
---------------------------------------------------------------------------------------------------
Beginning Account Value on 11/1/13 $1,000.00 $1,000.00 $1,000.00
---------------------------------------------------------------------------------------------------
Ending Account Value (after expenses) $983.50 $979.70 $984.80
on 4/30/14
---------------------------------------------------------------------------------------------------
Expenses Paid During Period* $5.56 $9.13 $4.18
---------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.13%,
1.86% and 0.85% 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 partial year period).
14 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
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 Emerging Markets Local Currency
Debt Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from November 1, 2013, through April 30, 2014.
---------------------------------------------------------------------------------------------------
Share Class A C Y
---------------------------------------------------------------------------------------------------
Beginning Account Value on 11/1/13 $1,000.00 $1,000.00 $1,000.00
---------------------------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,019.19 $1,015.57 $1,020.58
on 4/30/14
---------------------------------------------------------------------------------------------------
Expenses Paid During Period* $5.66 $9.30 $4.26
---------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.13%,
1.86% and 0.85% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
181/365 (to reflect the partial year period).
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 15
Schedule of Investments | 4/30/14 (unaudited)
---------------------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 38.2%
TRANSPORTATION -- 2.3%
Railroads -- 2.3%
RUB 12,000,000 BBB/Baa1 Russian Railways via RZD
Capital Plc, 8.3%, 4/2/19 $ 306,526
--------------
Total Transportation $ 306,526
---------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.5%
Agricultural Products -- 1.5%
BRL 500,000 NR/Ba2 Cosan Luxembourg SA, 9.5%,
3/14/18 $ 196,647
--------------
Total Food, Beverage & Tobacco $ 196,647
---------------------------------------------------------------------------------------------------
BANKS -- 19.0%
Diversified Banks -- 19.0%
TRY 1,150,000 NR/Baa2 Akbank TAS, 7.5%, 2/5/18 $ 483,712
BRL 700,000 BB+/Baa3 Banco ABC Brasil SA, 8.5%,
3/28/16 288,640
BRL 300,000 BBB-/Baa2 Banco Santander Brasil SA
Cayman Islands, 8.0%,
3/18/16 123,636
CLP 50,000,000 A/Aa3 Banco Santander Chile,
6.5%, 9/22/20 (144A) 88,264
RUB 13,000,000 NR/Aa3 Export-Import Bank of Korea,
7.55%, 8/27/15 342,655
TRY 270,000 NR/Aa3 Export-Import Bank of Korea,
8.2%, 5/31/16 119,945
RUB 12,000,000 NR/Baa3 Gazprombank OJSC Via GPB
Eurobond Finance Plc,
8.617%, 12/15/15 319,980
NGN 50,000,000 AAA/Aaa International Bank for
Reconstruction & Development,
10.0%, 10/28/15 296,533
BRL 400,000 NR/Baa2 Itau Unibanco Holding SA,
10.5%, 11/23/15 175,694
120,000 NR/Baa2 Standard Bank Plc, 8.125%,
12/2/19 138,600
TRY 300,000 NR/NR Turkiye Is Bankasi, 9/24/14 (b) 135,981
--------------
$ 2,513,640
--------------
Total Banks $ 2,513,640
---------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 6.3%
Other Diversified Financial
Services -- 6.3%
BRL 700,000 NR/Baa2 Banco Safra SA, 10.25%, 8/8/16 $ 298,053
ZAR 6,600,000 A-/NR Development Bank of
Southern Africa, Ltd., 12/31/27 (b) 186,703
PLN 870,000 AAA/Aaa European Investment Bank,
4.25%, 10/25/22 297,047
The accompanying notes are an integral part of these financial statements.
16 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
---------------------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
Other Diversified Financial
Services -- (continued)
RUB 2,000,000 BBB-/Baa3 Federal Grid Co OJS via Federal
Grid Finance, Ltd., 8.446%, 3/13/19 $ 51,368
--------------
$ 833,171
--------------
Total Diversified Financials $ 833,171
---------------------------------------------------------------------------------------------------
TELECOMMUNICATION
SERVICES -- 3.7%
Integrated Telecommunication
Services -- 1.0%
BRL 300,000 BBB-/Baa3 Oi SA, 9.75%, 9/15/16 $ 122,695
---------------------------------------------------------------------------------------------------
Wireless Telecommunication
Services -- 2.7%
MXN 5,000,000 A-/A2 America Movil SAB de CV, 6.45%,
12/5/22 $ 358,506
--------------
Total Telecommunication Services $ 481,201
---------------------------------------------------------------------------------------------------
UTILITIES -- 3.3%
Electric Utilities -- 0.9%
ZAR 2,000,000 BBB/Baa3 Eskom Holdings SOC, Ltd.,
12/31/18 (b) $ 123,344
---------------------------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 2.4%
COP 560,000,000 BBB/NR Emgesa SA ESP, 8.75%, 1/25/21 $ 312,704
--------------
Total Utilities $ 436,048
---------------------------------------------------------------------------------------------------
GOVERNMENT -- 2.1%
Government -- 2.1%
INR 8,000,000 AAA/NR European Bank for
Reconstruction & Development,
8.0%, 11/12/14 $ 132,152
IDR 1,750,000,000 NR/Aaa Kommunalbanken AS, 4.25%,
9/10/14 150,194
--------------
$ 282,346
--------------
Total Government $ 282,346
---------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $5,957,137) $ 5,049,579
---------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT
BONDS -- 55.2%
BRL 250,000 BBB+/Baa2 Brazil Letras do Tesouro Nacional,
7/1/15 (b) $ 98,506
BRL 200,000 BBB+/Baa2 Brazil Letras do Tesouro Nacional,
7/1/16 (b) 69,729
COP 250,000,000 BBB/Baa3 Colombia Government International
Bond, 7.75%, 4/14/21 145,474
The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 17
Schedule of Investments | 4/30/14 (continued) (unaudited)
---------------------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
Foreign Government
Bonds -- (continued)
COP 100,000,000 BBB-/Baa3 Colombian TES, 10.0%,
7/24/24 $ 65,140
ZAR 3,000,000 NR/NR Eskom Holdings SOC, Ltd.,
10.0%, 1/25/23 306,144
HUF 49,000,000 BB/Ba1 Hungary Government Bond,
6.5%, 6/24/19 241,828
HUF 30,000,000 BB/Ba1 Hungary Government Bond,
6.75%, 2/24/17 146,539
HUF 40,000,000 BB/Ba1 Hungary Government Bond,
7.5%, 11/12/20 206,626
IDR 2,200,000,000 NR/Baa3 Indonesia Treasury Bond,
10.0%, 9/15/24 213,882
IDR 1,500,000,000 NR/Baa3 Indonesia Treasury Bond,
10.5%, 8/15/30 152,121
IDR 2,000,000,000 NR/Baa3 Indonesia Treasury Bond,
11.0%, 9/15/25 207,625
IDR 2,000,000,000 BB+/Baa3 Indonesia Treasury Bond,
12.8%, 6/15/21 218,761
MYR 920,000 A/A3 Malaysia Government Bond,
3.58%, 9/28/18 281,495
MYR 800,000 A/A3 Malaysia Government Bond,
3.741%, 2/27/15 246,610
MYR 600,000 A/A3 Malaysia Government Bond,
4.012%, 9/15/17 186,690
MYR 500,000 A/A3 Malaysia Government Bond,
4.16%, 7/15/21 155,246
MYR 500,000 A/A3 Malaysia Government Bond,
4.378%, 11/29/19 158,327
MXN 2,800,000 A/A3 Mexican Bonos, 10.0%,
11/20/36 279,111
MXN 2,000,000 A/A3 Mexican Bonos, 10.0%, 12/5/24 197,202
MXN 3,700,000 A/A3 Mexican Bonos, 6.0%, 6/18/15 289,962
MXN 3,200,000 A/A3 Mexican Bonos, 8.5%, 12/13/18 278,893
PEN 200,000 A-/Baa2 Peru Government Bond, 7.84%,
8/12/20 79,503
PEN 400,000 A-/Baa2 Peru Government Bond, 8.2%,
8/12/26 164,569
PLN 900,053 A/A2 Poland Government Bond, 3.0%,
8/24/16 309,768
PLN 500,000 A/A2 Poland Government Bond, 4.0%,
10/25/23 164,830
PLN 900,000 A/A2 Poland Government Bond, 4.75%,
10/25/16 309,750
PLN 600,000 A/A2 Poland Government Bond, 4.75%,
4/25/17 207,353
PLN 300,000 A/A2 Poland Government Bond, 5.25%,
10/25/17 105,748
The accompanying notes are an integral part of these financial statements.
18 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
---------------------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
Foreign Government
Bonds -- (continued)
ZAR 3,643,710 A/Baa1 South Africa Government
Bond -- CPI Linked, 2.75%,
1/31/22 $ 375,622
ZAR 2,000,000 NR/Baa1 South Africa Government
Bond, 6.75%, 3/31/21 176,577
THB 16,000,000 A-/Baa1 Thailand Government Bond,
3.625%, 6/16/23 497,517
THB 8,200,000 A-/Baa1 Thailand Government Bond,
5.125%, 3/13/18 274,780
TRY 357,607 NR/NR Turkey Government Bond,
4.5%, 2/11/15 173,166
TRY 390,000 NR/NR Turkey Government Bond,
5.0%, 5/13/15 177,130
TRY 286,574 NR/NR Turkey Government Bond,
7.0%, 10/1/14 138,024
---------------------------------------------------------------------------------------------------
TOTAL FOREIGN
GOVERNMENT BONDS
(Cost $7,899,050) $ 7,300,248
---------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN
SECURITIES -- 93.4%
(Cost $13,856,187) (a) $ 12,349,827
---------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 6.6% $ 872,442
---------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 13,222,269
===================================================================================================
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
April 30, 2014, the value of these securities amounted to $88,264 or
0.7% of total net assets.
(a) At April 30, 2014, the net unrealized depreciation on investments based
on cost for federal income tax purposes of $13,856,187 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 148,070
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (1,654,430)
--------------
Net unrealized depreciation $ (1,506,360)
==============
(b) Security issued with a zero coupon. Income is recognized through
accretion of discount.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
BRL Brazilian Real CLP Chilean Peso
COP Colombian Peso
HUF Hungarian Forint
The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 19
Schedule of Investments | 4/30/14 (continued) (unaudited)
IDR Indonesian Rupiah
INR Indian Rupee
MXN Mexican Peso
MYR Malaysian Ringgit
NGN Nigerian Naira
PEN Peruvian Nuevo Sol
PLN Polish Zloty
RUB Russian Ruble
THB Thai Baht
TRY Turkish Lira
ZAR South African Rand
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 2014 aggregated $2,541,822 and $2,442,827,
respectively.
INTEREST RATE SWAP AGREEMENTS
--------------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Floating Fixed Expiration Appreciation
Principal Counterparty Pay / Receive Rate Rate Date (Depreciation)
--------------------------------------------------------------------------------------------------------------
THB 8,000,000 Morgan Pay Thai Baht 2.545% 3/30/16 $437
Stanley Capital 6 month
Services LLC LIBOR
--------------------------------------------------------------------------------------------------------------
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
THB Thai Baht
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 -- quoted prices in active markets for identical securities.
Level 2 -- other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speeds,
credit risk, etc.) See Notes to Financial Statements --
Note 1A.
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See
Notes to Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services or broker-dealers)
as Level 3.
The following is a summary of the inputs used as of April 30, 2014, in valuing
the Fund's investments:
---------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------
Corporate Bonds $ -- $ 5,049,579 $ -- $ 5,049,579
Foreign Government Bonds -- 7,300,248 -- 7,300,248
---------------------------------------------------------------------------------------
Total $ -- $12,349,827 $ -- $12,349,827
=======================================================================================
Other Financial Instruments
Net unrealized appreciation on
swap contracts $ -- $ 437 $ -- $ 437
---------------------------------------------------------------------------------------
Total $ -- $ 437 $ -- $ 437
=======================================================================================
During the six months ended April 30, 2014, there were no transfers between
Levels 1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
20 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
Statement of Assets and Liabilities | 4/30/14 (unaudited)
ASSETS:
Investment in securities (cost $13,856,187) $12,349,827
Cash 295,887
Foreign currencies, at value (cost $121,721) 121,721
Receivables --
Investment securities sold 509,587
Interest 255,350
Due from Pioneer Investment Management, Inc. 11,488
Unrealized appreciation on swap contracts 437
Prepaid expenses 24,884
---------------------------------------------------------------------------------------
Total assets $13,569,181
---------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 253,808
Dividends 47,855
Trustee fees 600
Due to affiliates 9,152
Accrued expenses 32,860
Reserve for repatriation taxes 2,637
---------------------------------------------------------------------------------------
Total liabilities $ 346,912
---------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $15,067,295
Undistributed net investment income 10,012
Accumulated net realized loss on investments and foreign currency
transactions (350,978)
Net unrealized depreciation on investments (1,506,360)
Net unrealized appreciation on credit default swaps 437
Net unrealized appreciation on other assets and liabilities denominated
in foreign currencies 1,863
---------------------------------------------------------------------------------------
Total net assets $13,222,269
=======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $4,437,490/508,729 shares) $ 8.72
Class C (based on $4,419,924/507,484 shares) $ 8.71
Class Y (based on $4,364,855/500,000 shares) $ 8.73
MAXIMUM OFFERING PRICE:
Class A ($8.72 (divided by) 95.5%) $ 9.13
=======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 21
Statement of Operations (unaudited)
For the Six Months Ended 4/30/14
INVESTMENT INCOME:
Interest (net of foreign taxes withheld of $8,526) $ 424,485
-------------------------------------------------------------------------------------------------
Total investment income $ 424,485
-------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 45,416
Transfer agent fees and expenses
Class A 342
Class C 204
Class Y 81
Distribution fees
Class A 5,471
Class C 21,605
Shareholder communications expense 337
Administrative reimbursement 11,346
Custodian fees 9,272
Registration fees 19,761
Professional fees 32,128
Printing expense 6,163
Fees and expenses of nonaffiliated Trustees 3,291
Miscellaneous 7,933
-------------------------------------------------------------------------------------------------
Total expenses $ 163,350
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (80,248)
-------------------------------------------------------------------------------------------------
Net expenses $ 83,102
-------------------------------------------------------------------------------------------------
Net investment income $ 341,383
-------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
CREDIT DEFAULT SWAPS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on:
Investments (net of foreign capital gains taxes of $55,063) $ (261,220)
Other assets and liabilities denominated in foreign currencies (8,898) $(270,118)
-------------------------------------------------------------------------------------------------
Change in net unrealized depreciation on:
Investments (net increase in reserve for capital gains taxes
of $2,637) $ (318,102)
Swap contracts 437
Other assets and liabilities denominated in foreign currencies 2,318 $(315,347)
-------------------------------------------------------------------------------------------------
Net loss on investments and foreign currency transactions $(585,465)
-------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(244,082)
=================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------------
Six Months
Ended
4/30/14 2/4/13 (a)
(unaudited) to 10/31/13
-------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 341,383 $ 416,172
Net realized loss on investments, credit default swaps and
foreign currency transactions (270,118) (349,357)
Change in net unrealized depreciation on investments,
credit default swaps and foreign currency transactions (315,347) (1,188,713)
--------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (244,082) $ (1,121,898)
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.20 and $0.15 per share, respectively) $ (99,862) $ (74,581)
Class C ($0.16 and $0.11 per share, respectively) (82,109) (56,600)
Class Y ($0.21 and $0.16 per share, respectively) (103,250) (79,660)
Tax return of capital:
Class A ($0.00 and $0.04 per share, respectively) -- (21,345)
Class C ($0.00 and $0.04 per share, respectively) -- (21,245)
Class Y ($0.00 and $0.04 per share, respectively) -- (21,140)
--------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (285,221) $ (274,571)
--------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 105,950 $ 15,138,736
Reinvestment of distributions 3,118 1,404
Cost of shares repurchased (83,210) (17,957)
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 25,858 $ 15,122,183
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (503,445) $ 13,725,714
NET ASSETS:
Beginning of period 13,725,714 --
--------------------------------------------------------------------------------------------------
End of period $ 13,222,269 $ 13,725,714
--------------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net
investment income $ 10,012 $ (46,150)
==================================================================================================
(a) The Fund commenced operations on February 4, 2013.
The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 23
Statement of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------------
'14 Shares '14 Amount
(unaudited) (unaudited) '13 Shares '13 Amount
------------------------------------------------------------------------------------------------
Class A*
Shares sold 10,154 $ 88,276 508,804 $5,081,877
Reinvestment of distributions 247 2,107 112 1,004
Less shares repurchased (9,242) (79,779) (1,346) (12,343)
------------------------------------------------------------------------------------------------
Net increase 1,159 $ 10,604 507,570 $5,070,538
================================================================================================
Class C*
Shares sold 2,051 $ 17,674 506,311 $5,056,859
Reinvestment of distributions 118 1,011 45 400
Less shares repurchased (405) (3,431) (636) (5,614)
------------------------------------------------------------------------------------------------
Net increase 1,764 $ 15,254 505,720 $5,051,645
================================================================================================
Class Y*
Shares sold -- $ -- 500,000 $5,000,000
Reinvestment of distributions -- -- -- --
Less shares repurchased -- -- -- --
------------------------------------------------------------------------------------------------
Net increase -- $ -- 500,000 $5,000,000
================================================================================================
* The Fund first publicly offered shares on February 5, 2013.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
Financial Highlights
-----------------------------------------------------------------------------------------------------------
Six Months Ended
4/30/14 2/5/13 (a)
(unaudited) to 10/31/13
-----------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.07 $ 9.98
-----------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.23 $ 0.29
Net realized and unrealized loss on investments (0.38) (1.01)
-----------------------------------------------------------------------------------------------------------
Net decrease in net assets from investment operations $ (0.15) $ (0.72)
-----------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.20) $ (0.15)
Tax return of capital -- (0.04)
-----------------------------------------------------------------------------------------------------------
Total distributions $ (0.20) $ (0.19)
-----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.72 $ 9.07
===========================================================================================================
Total return* (1.65)% (7.37)%(b)
Ratio of net expenses to average net assets 1.13%** 1.12%**
Ratio of net investment income to average net assets 5.41%** 4.16%**
Portfolio turnover rate 40%** 23%**
Net assets, end of period (in thousands) $ 4,437 $ 4,605
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 2.36%** 2.79%**
Net investment income 4.18%** 2.49%**
===========================================================================================================
(a) Class A shares were first publicly offered on February 5, 2013.
(b) Not annualized.
* 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.
The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 25
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------
Six Months Ended
4/30/14 2/5/13 (a)
(unaudited) to 10/31/13
-----------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.06 $ 9.97
-----------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.20 $ 0.23
Net realized and unrealized loss on investments (0.39) (0.99)
-----------------------------------------------------------------------------------------------------------
Net decrease in net assets from investment operations $ (0.19) $ (0.76)
-----------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.16) $ (0.11)
Tax return of capital -- (0.04)
-----------------------------------------------------------------------------------------------------------
Total distributions $ (0.16) $ (0.15)
-----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.71 $ 9.06
===========================================================================================================
Total return* (2.03)% (7.83)%(b)
Ratio of net expenses to average net assets 1.86%** 1.86%**
Ratio of net investment income to average net assets 4.68%** 3.42%**
Portfolio turnover rate 40%** 23%**
Net assets, end of period (in thousands) $ 4,420 $ 4,581
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 3.10%** 3.54%**
Net investment income 3.44%** 1.74%**
===========================================================================================================
(a) Class C shares were first publicly offered on February 5, 2013.
(b) Not annualized.
* 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.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
-----------------------------------------------------------------------------------------------------------
Six Months Ended
4/30/14 2/5/13 (a)
(unaudited) to 10/31/13
-----------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.08 $ 9.98
-----------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.24 $ 0.31
Net realized and unrealized loss on investments (0.38) (1.01)
-----------------------------------------------------------------------------------------------------------
Net decrease in net assets from investment operations $ (0.14) $ (0.70)
-----------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.21) $ (0.16)
Tax return of capital -- (0.04)
-----------------------------------------------------------------------------------------------------------
Total distributions $ (0.21) $ (0.20)
-----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.73 $ 9.08
===========================================================================================================
Total return* (1.52)% (7.15)%(b)
Ratio of net expenses to average net assets 0.85%** 0.85%**
Ratio of net investment income to average net assets 5.69%** 4.43%**
Portfolio turnover rate 40%** 23%**
Net assets, end of period (in thousands) $ 4,365 $ 4,540
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 2.09%** 2.53%**
Net investment income 4.45%** 2.75%**
===========================================================================================================
(a) Class Y shares were first publicly offered on February 5, 2013.
(b) Not annualized.
* 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.
The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 27
Notes to Financial Statements | 4/30/14 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Emerging Markets Local Currency Debt Fund (the Fund) is a series of
Pioneer Series Trust VII, a Delaware statutory trust. The Fund is registered
under the Investment Company Act of 1940 as a non-diversified, open-end
management investment company. The investment objective of the Fund is total
return through a combination of income and capital appreciation.
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 February 5, 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 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:
28 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
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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. 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.
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 for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. PIM's fair
valuation team is responsible for monitoring developments that may impact
fair valued securities and for discussing and assessing fair values on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 29
At April 30, 2014, there were no securities that were valued using fair
value methods (other than securities that were valued using prices supplied
by independent pricing services or broker-dealers).
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on debt securities are accreted/amortized for
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, 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. 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. 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
30 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
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.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
April 30, 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 are subject to examination by
federal and state tax authorities.
In addition to the requirements of the internal Revenue Code, the fund may
also be required to pay local taxes on the recognition of capital gains
and/or the repatriation of foreign currencies in certain countries. During
the six months ended April 30, 2014, the Fund paid $55,063 in such taxes.
In determining the daily net asset value, the Fund estimates the reserve
for such taxes, if any, associated with investments in certain countries.
The estimated reserve for the capital gains is based on the net unrealized
appreciation on certain portfolio securities, the holding period of such
securities and the related tax rates, tax loss carryforward (if applicable)
and other such factors. As of April 30, 2014, the Fund had $2,637 in
reserve related to capital gains.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for 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 October 31, 2013 was as follows:
--------------------------------------------------------------------------------
2013
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $210,841
Return of capital 63,730
--------------------------------------------------------------------------------
Total $274,571
================================================================================
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 31
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2013:
--------------------------------------------------------------------------------
2013
--------------------------------------------------------------------------------
Distributable earnings:
Capital loss carryforward $ (80,860)
Dividend payable (46,150)
Net unrealized depreciation (1,188,713)
--------------------------------------------------------------------------------
Total $(1,315,723)
================================================================================
The difference between book-basis and tax-basis net unrealized depreciation
is attributable to the tax deferral of losses on wash sales.
E. 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 $36 in underwriting commissions on the sale of Class A
shares during the during the six months ended April 30, 2014.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the 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.
32 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
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G. 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 investments in
foreign markets and countries with limited developing markets may subject
the Fund to a greater degree of risk than investments in a developed
market. These risks include disruptive political or economic conditions and
the imposition of adverse governmental laws or currency exchange
restrictions. The Fund's prospectus contains unaudited information
regarding the Fund's principal risks. Please refer to that document when
considering the Fund's principal risks.
H. 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 April 30, 2014 are listed in the
Schedule of Investments. The average value of interest rate swap contracts
open during the six months ended April 30, 2014 was $70,644.
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 of 0.70% of
the Fund's average daily net assets up to $1 billion and 0.65% on assets over $1
billion. For the six months ended April 30, 2014, the effective management fee
was equivalent to 0.70% 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 1.20%, 2.10% and 0.85% of the
average daily net assets attributable to Class A, Class C and Class Y shares,
respectively. Fees waived and expenses reimbursed during the six months
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 33
ended April 30, 2014 are reflected on the Statement of Operations. These
expense limitations are in effect through March 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
$8,725 in management fees, administrative costs and certain other reimbursements
payable to PIM at April 30, 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 April 30, 2014, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $256
Class C 72
Class Y 9
--------------------------------------------------------------------------------
Total $337
================================================================================
Included in "Due from affiliates" reflected on the Statement of Assets and
Liabilities is $125 in transfer agent fees and out-of-pocket reimbursements
payable from PIMSS at April 30, 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
34 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
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 $302 in
distribution fees payable to PFD at April 30, 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 purchases 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 April 30, 2014, no CDSCs 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 April 30, 2014, the Fund's expenses
were not reduced under such arrangements.
6. Additional Disclosures about Derivative Instruments and Hedging Activities
Values of derivative instruments as of April 30, 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
---------------------------------------------------------------------------------------------
Interest Rate Swaps Net unrealized Net unrealized
appreciation on depreciation on
interest rate interest rate
swaps $437 swaps $--
---------------------------------------------------------------------------------------------
Total $437 $--
---------------------------------------------------------------------------------------------
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 35
The effect of derivative instruments on the Statement of Operations for the six
months ended April 30, 2014 was as follows:
---------------------------------------------------------------------------------------------------
Change in
Derivatives Not Unrealized
Accounted for as Realized appreciation or
Hedging Instruments Gain 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
---------------------------------------------------------------------------------------------------
Interest Rate Swaps Net realized gain on interest
rate swaps $--
Interest Rate Swaps Change in unrealized appreciation
on interest rate swaps $437
9. 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 April 30, 2014.
-------------------------------------------------------------------------------------------------
Assets:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Assets Assets and Liabilities
Gross Statement Presented in ----------------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
-------------------------------------------------------------------------------------------------
Interest Rate
Swaps $437 $-- $437 $-- $-- $437
-------------------------------------------------------------------------------------------------
$437 $-- $437 $-- $-- $437
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
Liabilities:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Assets Assets and Liabilities
Gross Statement Presented in ----------------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
-------------------------------------------------------------------------------------------------
Interest Rate
Swaps $-- $-- $-- $-- $-- $--
-------------------------------------------------------------------------------------------------
$-- $-- $-- $-- $-- $--
-------------------------------------------------------------------------------------------------
36 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
10. Subsequent Events
Change in Independent Registered Public Accounting Firm
The Board of Trustees of the Fund, with the approval and recommendation of the
Audit Committee, appointed Deloitte & Touche LLP to serve as the Fund's
independent registered public accounting firm for the fiscal year ending October
31, 2014. Deloitte & Touche LLP replaces Ernst & Young LLP, which resigned as
the Fund's independent registered public accounting firm, effective upon
completion of the audit of the Fund's financial statements for the fiscal year
ended October 31, 2013.
During the periods that Ernst & Young LLP served as the Fund's independent
registered public accounting firm, including the Fund's two most recent fiscal
year, Ernst & Young LLP's reports on the financial statements of the Fund have
not contained an adverse opinion or disclaimer of opinion and have not been
qualified or modified as to uncertainty, audit scope or accounting principles or
practices, financial statement disclosure, or auditing scope or procedure,
which, if not resolved to the satisfaction of Ernst & Young LLP would have
caused Ernst & Young LLP to make reference to the subject matter of the
disagreement in connection with its report on the financial statements. In
addition, there have been no reportable events to the kind described in Item
304(a)(i)(v)of Regulation S-K under the Securities and Exchange Act of 1934.
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 37
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Emerging Markets Local Currency Debt 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
38 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
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. 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. It was noted that the Fund commenced operations in 2013 and had a
performance history of less than one year at the time the Trustees considered
the renewal of the investment advisory agreement. The Trustees concluded that
the investment performance of the Fund was satisfactory.
Management Fee and Expenses
The Fund commenced operations in 2013 and had an operating history of less than
one year at the time the Trustees considered the renewal of the investment
advisory agreement. Accordingly, the Trustees took into account information
provided in connection with the initial approval of the investment advisory
agreement. 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 Emerging Markets Bond category. The Trustees considered that the
Fund's management fee would rank in the second quintile of 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 expense ratio
would rank in
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 39
the third quintile of the peer group. The Trustees concluded that the
management fee payable by the Fund to PIM was reasonable in relation to the
nature and quality of services to be provided by PIM.
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 Fund commenced operations in 2013 and had an operating history of less than
one year at the time the Trustees considered the renewal of the investment
advisory agreement. Accordingly, the Trustees did not consider PIM's
profitability with respect to the management of the Fund in approving the
renewal of the investment advisory agreement.
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 breakpoint 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
40 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Funds. 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 Funds. 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 Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 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 www.sec.gov.
* Chief Executive Officer of the Fund.
** Chief Financial and Accounting Officer of the Fund.
*** Mr. Mayer resigned as a Trustee of the Pioneer Funds effective May 6, 2014.
42 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
This page for your notes.
Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14 43
This page for your notes.
44 Pioneer Emerging Markets Local Currency Debt Fund | Semiannual
Report | 4/30/14
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:
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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:
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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
(C) 2014 Pioneer Investments 26827-01-0614
Pioneer Global High
Yield Fund
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Semiannual Report | April 30, 2014
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Ticker Symbols:
Class A PGHYX
Class B PGHBX
Class C PGYCX
Class Y GHYYX
Class Z PGHZX
[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 16
Schedule of Investments 18
Consolidated Financial Statements 53
Consolidated Notes to Financial Statements 62
Approval of Investment Advisory Agreement 76
Trustees, Officers and Service Providers 81
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 1
President's Letter
Dear Shareowner,
A few months into 2014, we still expect U.S. economic growth for the year to be
in the 2.5% to 3% range, despite some weaker economic data releases during the
winter months driven in large part by harsh 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. 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 System
(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
suggested that rates may be raised roughly six months after the QE program is
fully tapered, that would still place the potential rate hike sometime in 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 faced 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 the 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 High Yield Fund | Semiannual Report | 4/30/14
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in 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 High Yield Fund | Semiannual Report | 4/30/14 3
Portfolio Management Discussion | 4/30/14
The environment for global high-yield corporate bond investing appeared to
improve and stabilize during the six-month period ended April 30, 2014, as the
U.S. economy continued to grow at a moderate pace, the European economy emerged
from recession, and many emerging markets were able to recover from earlier
volatility. In the following interview, Andrew Feltus discusses the market
environment and the performance of Pioneer Global High Yield Fund during the
six-month period. Mr. Feltus, a senior vice president and portfolio manager at
Pioneer, is lead manager of the Fund, and Tracy Wright, a senior vice president
and portfolio manager at Pioneer, is the co-manager of the Fund. Together, they
are responsible for the day-to-day management of the Fund.
Q How did the Fund perform during the six-month period ended April 30, 2014?
A Pioneer Global High Yield Fund's Class A shares returned 3.67% at net asset
value during the six-month period ended April 30, 2014, while the Fund's
benchmarks, the Bank of America Merrill Lynch (BofA ML) Global High Yield
and Emerging Markets Plus (GHY and EMP) Index, the BofA ML High Yield Master
II Index, and the Barclays Global High Yield Index, returned 5.01%, 4.76%,
and 5.35%, respectively*. During the same period, the average return of the
609 mutual funds in Lipper's High Current Yield Funds category was 4.09%,
and the average return of the 700 mutual funds in Morningstar's High Yield
Bond Funds category was 4.12%.
Q How would you describe the investment environment for high-yield investors
during the six-month period ended April 30, 2014?
A The six-month period was a good one, in general, for high-yield investors,
although the period began last November with a great deal of market
volatility. Much of the volatility was the product of partisan political
wrangling in Washington over economic policy issues that had resulted in a
partial government shutdown in October 2013, just before the beginning of
the six-month period. Topics ranging from raising the national debt ceiling
to how much money should be approved to fund the overall Federal budget were
among the most hotly debated. Emerging from the political squabbling,
however, were a series of bipartisan agreements at the end of 2013 that at
least temporarily settled the policy disputes and reassured the capital
markets that the U.S. government would continue functioning and
* Note to Shareholders: Effective October 31, 2013, the Barclays Global High
Yield Index replaced the BofA ML GHY and EMP Index as a benchmark for the
Fund. The BofA High Yield Master II Index remains as one of the Fund's
benchmarks. For comparison purposes, Pioneer has continued to report returns
for the BofA ML GHY and EMP Index for two full reporting cycles, including
this April 30, 2014, semiannual report. This will be the final report in
which returns for the BofA ML GHY and EMP Index will be provided.
4 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
paying its debts. Meanwhile, the U.S. economy appeared to be gaining
strength, even if growth rates were not as high as many hoped. Corporate
profits continued to improve, and default rates on corporate debt remained
very low by historical standards. Signs of economic progress encouraged
increased investment in so-called "risky" assets, including corporate bonds
and stocks.
Globally, investors also took encouragement from surprising economic
strength in Europe as well as signs of recovery in many emerging
economies--the fundamentals of which had previously been called into
question over concerns that any monetary policy tightening by the U.S.
Federal Reserve (the Fed) could adversely affect inflows of investment money
to developing nations with large current account deficits. Recoveries were
less evident in other commodity-exporting markets, however, mainly due to
evidence of continued economic slowing in China, which affected demand for
copper, iron, and other materials. Overall, though, the emerging markets
appeared to be on stronger and more stable footing at the end of the
six-month period than at the beginning of it.
Geopolitical risks tended to temper market optimism during the period. While
fears during the early part of the period that American military forces
might be drawn into battle over control of Syria eventually subsided, new
worries emerged in the late winter of 2014 over political tensions in the
Ukraine and neighboring Russia's aggressive actions against that country.
Even through all these crosscurrents, the riskier sectors of the capital
markets remained in demand during the six-month period, with the prices of
both stocks and high-yield bonds climbing. Default rates on high-yield and
other economically-sensitive fixed-income debt securities remained low,
while yield spreads tightened between higher-credit risk and lower-credit
risk securities. (Spreads are commonly defined as the differences in yield
between Treasuries and other types of fixed-income securities with similar
maturities.)
Q How did you position the Fund during the six-month period ended April 30,
2014, and which of your investment strategies had the biggest effects on the
Fund's performance?
A Benchmark-relative performance was held back by the Fund's underweighted
positioning in Europe, and in particular by the portfolio's relatively weak
exposures to both the euro and the British pound currencies. We did not have
confidence in Europe's economic growth prospects, especially in the southern
euro zone's peripheral nations such as Greece, Spain, Portugal and Italy.
Economies on the continent appeared to rebound with surprising strength,
however, while both the euro and the British pound gained in value against
the U.S. dollar.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 5
The Fund's performance benefited from good security selection in both the
United States and in the emerging markets during the period, while a
portfolio underweight to the emerging markets overall also aided results.
The Fund's exposure to U.S. high-yield corporate bonds also helped to boost
results for the six-month period, with securities issued by industrial
corporations faring particularly well. In the emerging markets, we focused
the portfolio's investments on corporate bonds, emphasizing higher-yielding
securities issued by financially strong companies.
We generally avoided investing in sovereign government debt within the
emerging markets. With that said, the Fund's results in the emerging markets
were held back by portfolio exposures to both Russia and the Ukraine.
Although we emphasized having the portfolio own corporate bonds rather than
sovereign debt in both countries, the rising political tensions in the
region affected the performance of corporate bonds as well as the currencies
in which they were denominated.
At the end of the six-month period, on April 30, 2014, the largest
allocation in the Fund's portfolio remained U.S. high-yield corporate bonds,
which accounted for nearly 32% of total invested assets. Corporate bonds in
the emerging markets represented the portfolio's second-largest allocation,
at nearly 26% of total investment portfolio, while emerging markets
sovereign debt accounted for approximately 7% of total investment portfolio.
Other noteworthy allocations in the Fund's portfolio as of period end
included international high-yield corporate bonds (roughly 10% of total
investment portfolio), convertible bonds (nearly 6%), floating-rate bank
loans (just over 5%), and event-linked (catastrophe) bonds issued by
insurance companies.
Q What were some of the individual portfolio investments that affected the
Fund's performance during the six-month period ended April 30, 2014?
A One of the stronger positive contributions to Fund performance during the
period came from the portfolio's investment in high-yield corporate bonds
issued by Stanadyne, a U.S. manufacturer of engine parts. Stanadyne's bonds
rose in value over the six-month period as the company sold some assets and
reduced its overall debt. Bonds of Marfrig and Minerva, two Brazilian beef
companies, also performed well for the Fund over the period, as did some
inflation-linked bonds issued by the Mexican government.
On the negative side, portfolio investments that underperformed during the
period included the debt of Midwest Vanadium, an Australian mining company
whose performance suffered after production was stopped due to a fire, and
the convertible bonds of Cobalt Energy, a U.S.-based energy
exploration-and-production company that experienced disappointing results
from some drilling operations.
6 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
Q Was the Fund's performance affected by any exposure to derivative securities
during the six-month period ended April 30, 2014?
A We did use currency forward contracts - which are a type of derivative - to
attempt to reduce the risks to the Fund from any volatility in world
currency markets, as many investments are denominated in non-U.S. dollar
currencies. However, the currency contracts that we used to hedge the
portfolio's exposure to Europe detracted from Fund performance when the euro
gained in value against the U.S. dollar.
Q What is your investment outlook?
A We expect that the expansion of the U.S. economy should continue at a steady
pace, helped by both the Fed's continued relaxed monetary policies and
evidence of strengthening in the industrial sector. Job growth has been
steady, and consistent with the growth rates of previous expansions, while
U.S. consumers are in far better financial shape than they were in 2008,
having reduced much of their personal indebtedness. Both the housing and
stock markets have bounced back well, and corporate profits have continued
to rise. The corporate earnings outlook remains solid, and that should keep
corporate bond default rates low. Despite those favorable factors, however,
it is important to remember that corporate bond prices have increased
noticeably, thus making their yield advantages over other fixed-income
investments tighter and less pronounced. As a result, high-yield bonds now
offer less margin of error should any problems arise.
While Europe's economy offered many positive surprises over the past few
months, strengthening more than was generally expected, we remain cautious
about investing on the continent, as banking institutions in the region have
not corrected all of their problems, and some countries with higher debt
levels still could face issues in the future.
Although we increased the Fund's exposure to the emerging markets during the
past six months, we remain cautious and have maintained the portfolio's
underweight position. Prices of high-yield emerging markets bonds are
currently in line with long-term averages and still appear attractive
relative to prices in the U.S. and in Europe, although the risks are higher.
Slowing economic growth trends in China could have a huge effect on the
emerging economies that are dependent upon exporting commodities such as
iron, copper and coal. Upcoming major elections in nations such as Brazil
and the Ukraine also could affect investment opportunities in the emerging
markets.
We continue to see investment opportunities in higher-yielding debt issued
by financially sound companies, but we expect to remain cautious and highly
selective when investing the Fund's assets, relying heavily on intensive
security analysis of the debt instruments issued by individual companies.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 7
Please refer to the Schedule of Investments on pages 18-52 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.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
Prepayment risk is the chance that an issuer may exercise its right to repay its
security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The Fund may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making 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.
8 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
Portfolio Summary | 4/30/14
Portfolio Quality
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(As a percentage of long-term securities, based on S&P ratings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
AAA 1.0%
A 1.7%
BBB 7.9%
BB 20.8%
B 39.1%
CCC 20.1%
Not Rated 7.3%
Cash Equivalent 2.1%
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.
Geographical Distribution
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(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United States 46.8%
Cayman Islands 7.1%
Luxembourg 7.0%
Argentina 4.2%
Mexico 4.0%
United Kingdom 3.9%
Bermuda 2.7%
Canada 2.6%
Ireland 2.6%
Netherlands 2.5%
Peru 1.8%
Austria 1.2%
Indonesia 1.2%
Brazil 1.0%
Singapore 1.0%
Australia 1.0%
Other (individually less than 1%) 9.4%
10 Largest Holdings
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(As a percentage of total long-term holdings)*
1. Minerva Luxembourg SA, 7.75%, 1/31/23 (144A) 1.59%
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2. Marfrig Overseas, Ltd., 9.5%, 5/4/20 (144A) 1.33
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3. Mexican Udibonos, 2.0%, 6/9/22 1.09
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4. EP Energy LLC, 9.375%, 5/1/20 1.02
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5. Cemex SAB de CV, 3.75%, 3/15/18 0.98
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6. The PNC Financial Services Group, Inc., Floating Rate Note (Perpetual) 0.95
---------------------------------------------------------------------------------
7. MIE Holdings Corp., 9.75%, 5/12/16 (144A) 0.87
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8. Vedanta Resources Plc, 8.25%, 6/7/21 (144A) 0.87
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9. UBS AG, 7.625%, 8/17/22 0.82
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10. ARD Finance SA, 11.125% (11.125% PIK, 0.0% cash), 6/1/18 (144A) (PIK) 0.80
---------------------------------------------------------------------------------
* The 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 Global High Yield Fund | Semiannual Report | 4/30/14 9
Prices and Distributions | 4/30/14
Net Asset Value per Share
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--------------------------------------------------------------------------------
Class 4/30/14 10/31/13
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A $10.14 $10.13
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B $10.15 $10.14
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C $10.11 $10.10
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Y $ 9.97 $ 9.96
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Z $10.43 $10.42
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Distributions per Share: 11/1/13-4/30/14
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Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
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A $0.3531 $ -- $ --
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B $0.3103 $ -- $ --
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C $0.3172 $ -- $ --
--------------------------------------------------------------------------------
Y $0.3620 $ -- $ --
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Z $0.3738 $ -- $ --
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Index Definitions
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The Barclays Global High Yield Index is an unmanaged index that provides a
broad-based measure of the global high-yield fixed-income markets. The index
represents the union of the Barclays U.S. High-Yield, Barclays Pan-European
High-Yield, Barclays U.S. Emerging Markets High-Yield, and Barclays Pan-
European Emerging Markets High-Yield Indices. The Bank of America (BofA) Merrill
Lynch (ML) Global High Yield and Emerging Markets Plus Index is an unmanaged
index that tracks the performance of the below and border-line investment-grade
global debt markets denominated in the major developed market currencies. The
index includes sovereign issuers rated BBB1 and lower along with corporate
issuers rated BB1 and lower. There are no restrictions on issuer country of
domicile. However, the bonds must be publicly issued in a developed market
(i.e., investment-grade country). The BofA ML High Yield Master II Index is an
unmanaged, commonly accepted measure of the performance of high-yield
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. It is not possible to invest directly in an index.
The indices defined here pertain to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 11-15.
10 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
Performance Update | 4/30/14 Class A Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Global High Yield Fund at public
offering price during the periods shown, compared to that of the Bank of America
(BofA) Merrill Lynch (ML) High Yield Master II Index, the Bank of America (BofA)
Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index, and the
Barclays Global High Yield Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
BofA BofA
ML ML Barclays
Net Public High GHY Global
Asset Offering Yield and High
Value Price Master EMP Yield
Period (NAV) (POP) II Index Index Index
--------------------------------------------------------------------------------
10 Years 7.87% 7.37% 8.69% 9.32% 9.71%
5 Years 16.63 15.55 15.81 15.28 16.54
1 Year 3.96 -0.70 6.30 6.13 7.41
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Expense Ratio
(Per prospectus dated March 1, 2014)
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Gross
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1.10%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global BofA ML High Yield Barclays Global BofA ML Global High Yield and
High Yield Fund Master II Index High Yield Index Emerging Markets Plus Index
4/30/2004 $ 9,550 $ 10,000 $ 10,000 $ 10,000
4/30/2005 $ 10,833 $ 10,647 $ 11,048 $ 11,036
4/30/2006 $ 12,089 $ 11,612 $ 12,212 $ 12,145
4/30/2007 $ 13,737 $ 13,054 $ 13,831 $ 13,724
4/30/2008 $ 13,322 $ 12,946 $ 13,892 $ 13,962
4/30/2009 $ 9,438 $ 11,044 $ 11,752 $ 11,976
4/30/2010 $ 15,266 $ 15,926 $ 17,038 $ 16,796
4/30/2011 $ 17,597 $ 18,051 $ 19,602 $ 19,050
4/30/2012 $ 17,350 $ 18,980 $ 20,474 $ 19,983
4/30/2013 $ 19,593 $ 21,645 $ 23,519 $ 22,970
4/30/2014 $ 20,368 $ 23,008 $ 25,262 $ 24,378
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had 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.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 11
Performance Update | 4/30/14 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 High Yield Fund during the
periods shown, compared to that of the Bank of America (BofA) Merrill Lynch (ML)
High Yield Master II Index, the Bank of America (BofA) Merrill Lynch (ML) Global
High Yield and Emerging Markets Plus Index, and the Barclays Global High Yield
Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
BofA BofA
ML ML Barclays
High GHY Global
If Yield and High
If Re- Master EMP Yield
Period Held deemed II Index Index Index
--------------------------------------------------------------------------------
10 Years 7.02% 7.02% 8.69% 9.32% 9.71%
5 Years 15.76 15.76 15.81 15.28 16.54
1 Year 3.07 -0.81 6.30 6.13 7.41
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.94%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global BofA ML High Yield Barclays Global BofA ML Global High Yield and
High Yield Fund Master II Index High Yield Index Emerging Markets Plus Index
4/30/2004 $ 10,000 $ 10,000 $ 10,000 $ 10,000
4/30/2005 $ 11,251 $ 10,647 $ 11,048 $ 11,036
4/30/2006 $ 12,466 $ 11,612 $ 12,212 $ 12,145
4/30/2007 $ 14,041 $ 13,054 $ 13,831 $ 13,724
4/30/2008 $ 13,505 $ 12,946 $ 13,892 $ 13,962
4/30/2009 $ 9,482 $ 11,044 $ 11,752 $ 11,976
4/30/2010 $ 15,238 $ 15,926 $ 17,038 $ 16,796
4/30/2011 $ 17,440 $ 18,051 $ 19,602 $ 19,050
4/30/2012 $ 17,073 $ 18,980 $ 20,474 $ 19,983
4/30/2013 $ 19,125 $ 21,645 $ 23,519 $ 22,970
4/30/2014 $ 19,713 $ 23,008 $ 25,262 $ 24,378
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"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 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.
12 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
Performance Update | 4/30/14 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 High Yield Fund during the
periods shown, compared to that of the Bank of America (BofA) Merrill Lynch (ML)
High Yield Master II Index, the Bank of America (BofA) Merrill Lynch (ML) Global
High Yield and Emerging Markets Plus Index, and the Barclays Global High Yield
Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
BofA BofA
ML ML Barclays
High GHY Global
If Yield and High
If Re- Master EMP Yield
Period Held deemed II Index Index Index
--------------------------------------------------------------------------------
10 Years 7.09% 7.09% 8.69% 9.32% 9.71%
5 Years 15.87 15.87 15.81 15.28 16.54
1 Year 3.22 3.22 6.30 6.13 7.41
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.81%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global BofA ML High Yield Barclays Global BofA ML Global High Yield and
High Yield Fund Master II Index High Yield Index Emerging Markets Plus Index
4/30/2004 $ 10,000 $ 10,000 $ 10,000 $ 10,000
4/30/2005 $ 11,250 $ 10,647 $ 11,048 $ 11,036
4/30/2006 $ 12,462 $ 11,612 $ 12,212 $ 12,145
4/30/2007 $ 14,047 $ 13,054 $ 13,831 $ 13,724
4/30/2008 $ 13,525 $ 12,946 $ 13,892 $ 13,962
4/30/2009 $ 9,499 $ 11,044 $ 11,752 $ 11,976
4/30/2010 $ 15,270 $ 15,926 $ 17,038 $ 16,796
4/30/2011 $ 17,484 $ 18,051 $ 19,602 $ 19,050
4/30/2012 $ 17,150 $ 18,980 $ 20,474 $ 19,983
4/30/2013 $ 19,223 $ 21,645 $ 23,519 $ 22,970
4/30/2014 $ 19,842 $ 23,008 $ 25,262 $ 24,378
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class 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 Global High Yield Fund | Semiannual Report | 4/30/14 13
Performance Update | 4/30/14 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 High Yield Fund during the
periods shown, compared to that of the Bank of America (BofA) Merrill Lynch (ML)
High Yield Master II Index, the Bank of America (BofA) Merrill Lynch Global High
Yield and Emerging Markets Plus Index, and the Barclays Global High Yield Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
BofA BofA
ML ML Barclays
High GHY Global
If Yield and High
If Re- Master EMP Yield
Period Held deemed II Index Index Index
--------------------------------------------------------------------------------
10 Years 7.97% 7.97% 8.69% 9.32% 9.71%
5 Years 16.94 16.94 15.81 15.28 16.54
1 Year 4.31 4.31 6.30 6.13 7.41
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.82%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global BofA ML High Yield Barclays Global BofA ML Global High Yield and
High Yield Fund Master II Index High Yield Index Emerging Markets Plus Index
4/30/2004 $ 5,000,000 $ 5,000,000 $ 5,000,000 $ 5,000,000
4/30/2005 $ 5,670,972 $ 5,323,482 $ 5,523,908 $ 5,518,103
4/30/2006 $ 6,219,577 $ 5,806,108 $ 6,105,875 $ 6,072,478
4/30/2007 $ 7,090,410 $ 6,526,794 $ 6,915,529 $ 6,862,220
4/30/2008 $ 6,917,922 $ 6,472,774 $ 6,945,811 $ 6,980,941
4/30/2009 $ 4,925,130 $ 5,521,959 $ 5,875,911 $ 5,987,830
4/30/2010 $ 7,978,749 $ 7,962,882 $ 8,518,899 $ 8,398,168
4/30/2011 $ 9,209,001 $ 9,025,524 $ 9,801,117 $ 9,524,834
4/30/2012 $ 9,114,957 $ 9,490,228 $ 10,236,796 $ 9,991,386
4/30/2013 $ 10,324,112 $ 10,822,626 $ 11,759,449 $ 11,485,058
4/30/2014 $ 10,769,238 $ 11,504,033 $ 12,630,920 $ 12,188,769
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 Class Y shares for periods prior to the inception of Class
Y shares on December 28, 2005, is the net asset value 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 on December 28, 2005, would have been
higher than the performance shown. For the period beginning December 28, 2005,
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 performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
Performance Update | 4/30/14 Class Z Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class Z shares of Pioneer Global High Yield Fund during the
periods shown, compared to that of the Bank of America (BofA) Merrill Lynch (ML)
High Yield Master II Index, the Bank of America (BofA) Merrill Lynch Global High
Yield and Emerging Markets Plus Index, and the Barclays Global High Yield Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
BofA BofA
ML ML Barclays
High GHY Global
If Yield and High
If Re- Master EMP Yield
Period Held deemed II Index Index Index
--------------------------------------------------------------------------------
10 Years 8.35% 8.35% 8.69% 9.32% 9.71%
5 Years 16.84 16.84 15.81 15.28 16.54
1 Year 4.17 4.17 6.30 6.13 7.41
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.89%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global BofA ML High Yield Barclays Global BofA ML Global High Yield and
High Yield Fund Master II Index High Yield Index Emerging Markets Plus Index
4/30/2004 $ 10,000 $ 10,000 $ 10,000 $ 10,000
4/30/2005 $ 11,342 $ 10,647 $ 11,048 $ 11,036
4/30/2006 $ 12,657 $ 11,612 $ 12,212 $ 12,145
4/30/2007 $ 14,383 $ 13,054 $ 13,831 $ 13,724
4/30/2008 $ 14,105 $ 12,946 $ 13,892 $ 13,962
4/30/2009 $ 10,237 $ 11,044 $ 11,752 $ 11,976
4/30/2010 $ 16,566 $ 15,926 $ 17,038 $ 16,796
4/30/2011 $ 19,173 $ 18,051 $ 19,602 $ 19,050
4/30/2012 $ 18,910 $ 18,980 $ 20,474 $ 19,983
4/30/2013 $ 21,400 $ 21,645 $ 23,519 $ 22,970
4/30/2014 $ 22,292 $ 23,008 $ 25,262 $ 24,378
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for Class Z shares for periods prior to the inception of Class
Z shares on July 6, 2007, is the net asset value 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 Z shares, the performance for Class Z
shares prior to their inception on July 6, 2007, would have been higher than the
performance shown. For the period beginning July 6, 2007, the actual performance
of Class Z shares is reflected. Class Z 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.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global High Yield Fund
Based on actual returns from November 1, 2013, through April 30, 2014.
--------------------------------------------------------------------------------
Share Class A B C Y Z
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 11/1/13
--------------------------------------------------------------------------------
Ending Account $1,036.70 $1,032.20 $1,033.10 $1,038.20 $1,037.70
Value (after expenses)
on 4/30/14
--------------------------------------------------------------------------------
Expenses Paid $ 5.71 $ 9.88 $ 9.28 $ 4.30 $ 4.55
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.13%, 1.96%,
1.84%, 0.85%, and 0.90% for Class A, Class B, Class C, Class Y and Class Z
shares, respectively, multiplied by the average account value over the
period, multiplied by 181/365 (to reflect the one-half year period).
16 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
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 Global High Yield Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from November 1, 2013, through April 30, 2014.
--------------------------------------------------------------------------------
Share Class A B C Y Z
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 11/1/13
--------------------------------------------------------------------------------
Ending Account $1,019.19 $1,015.08 $1,015.67 $1,020.58 $1,020.33
Value (after expenses)
on 4/30/14
--------------------------------------------------------------------------------
Expenses Paid $ 5.66 $ 9.79 $ 9.20 $ 4.26 $ 4.51
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.13%, 1.96%,
1.84%, 0.85%, and 0.90% for Class A, Class B, Class C, Class Y and Class Z
shares, respectively, multiplied by the average account value over the
period, multiplied by 181/365 (to reflect the one-half year period).
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 17
Schedule of Investments | 4/30/14 (unaudited)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE
BONDS -- 5.5%
ENERGY -- 0.5%
Oil & Gas Exploration &
Production -- 0.4%
7,610,000 NR/NR Cobalt International Energy, Inc.,
2.625%, 12/1/19 $ 7,148,644
-------------------------------------------------------------------------------------------------------------
Oil & Gas Storage &
Transportation -- 0.1%
800,000 NR/NR Golar LNG, Ltd., 3.75%, 3/7/17 $ 893,520
-----------------
Total Energy $ 8,042,164
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.9%
Construction Materials -- 0.9%
10,300,000 NR/NR Cemex SAB de CV, 3.75%,
3/15/18 $ 15,179,625
-----------------
Total Materials $ 15,179,625
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.1%
Electrical Components &
Equipment -- 0.1%
1,250,000 B/B3 General Cable Corp., 4.5%,
11/15/29 (Step) $ 1,251,562
-----------------
Total Capital Goods $ 1,251,562
-------------------------------------------------------------------------------------------------------------
AUTOMOBILES &
COMPONENTS -- 0.6%
Automobile Manufacturers -- 0.6%
4,894,000 BBB-/Baa3 Ford Motor Co., 4.25%, 11/15/16 $ 9,231,308
-----------------
Total Automobiles & Components $ 9,231,308
-------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES &
APPAREL -- 0.3%
Homebuilding -- 0.3%
4,640,000 B/B2 KB Home, 1.375%, 2/1/19 $ 4,570,400
-----------------
Total Consumer
Durables & Apparel $ 4,570,400
-------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE &
TOBACCO -- 0.1%
Distillers & Vintners -- 0.1%
2,274,177 NR/NR CEDC Finance Corp International,
Inc., 10.0% (10.0% PIK, 0.0% cash),
4/30/18 (PIK) $ 1,933,050
-----------------
Total Food, Beverage & Tobacco $ 1,933,050
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS,
BIOTECHNOLOGY & LIFE
SCIENCES -- 0.1%
Biotechnology -- 0.1%
1,000,000 NR/NR Cubist Pharmaceuticals, Inc.,
1.125%, 9/1/18 (144A) $ 1,139,375
-----------------
Total Pharmaceuticals,
Biotechnology & Life Sciences $ 1,139,375
-------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.2%
Real Estate Operating
Companies -- 0.2%
2,805,000 B+/B2 Forest City Enterprises, Inc.,
4.25%, 8/15/18 $ 3,136,341
-----------------
Total Real Estate $ 3,136,341
-------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.1%
Internet Software &
Services -- 0.5%
3,750,000 NR/NR WebMD Health Corp., 1.5%,
12/1/20 (144A) $ 3,975,000
3,485,000 NR/NR WebMD Health Corp., 2.5%,
1/31/18 3,563,412
-----------------
$ 7,538,412
-------------------------------------------------------------------------------------------------------------
Application Software -- 0.6%
1,945,000 NR/NR Citrix Systems, Inc., 0.5%,
4/15/19 (144A) $ 1,942,569
1,025,000 NR/NR Mentor Graphics Corp., 4.0%,
4/1/31 1,231,281
6,365,000 BB-/NR Nuance Communications, Inc.,
2.75%, 11/1/31 6,396,825
-----------------
$ 9,570,675
-----------------
Total Software & Services $ 17,109,087
-------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE &
EQUIPMENT -- 0.2%
Computer Storage &
Peripherals -- 0.1%
1,755,000 BB/NR SanDisk Corp., 0.5%, 10/15/20
(144A) $ 1,989,731
-------------------------------------------------------------------------------------------------------------
Electronic Components -- 0.1%
1,605,000 BB+/NR Vishay Intertechnology, Inc.,
2.25%, 5/15/41 (144A) $ 1,466,569
-----------------
Total Technology Hardware
& Equipment $ 3,456,300
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 19
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS &
SEMICONDUCTOR
EQUIPMENT -- 1.4%
Semiconductor Equipment -- 0.9%
3,400,000 BBB/Baa1 Lam Research Corp., 1.25%,
5/15/18 $ 4,337,125
5,515,000 BBB/NR Novellus Systems, Inc., 2.625%,
5/15/41 9,782,231
-----------------
$ 14,119,356
-------------------------------------------------------------------------------------------------------------
Semiconductors -- 0.5%
10,750,000 NR/NR ReneSola, Ltd., 4.125%, 3/15/18
(144A) $ 8,485,781
535,000 NR/NR Suntech Power Holdings Co., Ltd.,
3.0%, 3/15/13 (d) 53,500
-----------------
$ 8,539,281
-----------------
Total Semiconductors &
Semiconductor Equipment $ 22,658,637
-------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE
CORPORATE BONDS
(Cost $75,251,276) $ 87,707,849
-------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 3.0%
ENERGY -- 0.2%
Oil & Gas Storage &
Transportation -- 0.2%
131,100 7.62 B+/Ba2 NuStar Logistics LP, Floating Rate
Note, 1/15/43 $ 3,488,571
-----------------
Total Energy $ 3,488,571
-------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.3%
Air Freight & Logistics -- 0.3%
3,428 NR/NR CEVA Group Plc, 12/31/14* (c) $ 4,336,635
-----------------
Total Transportation $ 4,336,635
-------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.1%
Hotels, Resorts & Cruise
Lines -- 0.1%
17,350 NR/NR Perseus Holding Corp., 14.0%,
9/15/14 (144A) $ 1,422,700
-----------------
Total Consumer Services $ 1,422,700
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.1%
Other Diversified Financial
Services -- 0.9%
160,000 7.12 BB+/B1 Citigroup, Inc., Floating Rate Note
(Perpetual) $ 4,344,000
355,600 8.12 B/B3 GMAC Capital Trust I, Floating Rate
Note, 2/15/40 9,775,444
-----------------
$ 14,119,444
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.2%
3,100 B/B3 Ally Financial, Inc., 7.0%
(Perpetual) (144A) $ 3,085,662
-----------------
Total Diversified Financials $ 17,205,106
-------------------------------------------------------------------------------------------------------------
INSURANCE -- 1.0%
Reinsurance -- 1.0%
1,515,236 0.00 NR/NR Altair Re, Floating Rate Note,
4/30/16 (Cat Bond) $ 1,827,374
5,300,000 0.00 NR/NR Altair Re, Floating Rate Note,
6/30/16 (Cat Bond) 5,423,490
1,806,000 NR/NR Kane SAC Ltd., Series B,
7/18/19 (c) 1,849,705
33,500 NR/NR Lorenz Re, Ltd., (Cat Bond)
(Perpetual) (c)* 4,049,480
3,550,000 NR/NR Pangaea Re, 10/1/15 (Cat
Bond) (c) 3,949,056
$ 17,099,105
-----------------
Total Insurance $ 17,099,105
-------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.3%
Electric Utilities -- 0.3%
212,000 BB+/Ba1 PPL Capital Funding, Inc., 5.9%,
4/30/73 $ 5,109,200
-----------------
Total Utilities $ 5,109,200
-------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $43,188,711) $ 48,661,317
-------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED
STOCKS -- 0.1%
BANKS -- 0.1%
Diversified Banks -- 0.1%
445 BBB+/Baa3 Wells Fargo & Co., 7.5% (Perpetual) $ 531,546
-----------------
Total Banks $ 531,546
-------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE
PREFERRED STOCKS
(Cost $467,249) $ 531,546
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Shares
-------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.6%
MATERIALS -- 0.2%
Diversified Metals & Mining -- 0.2%
6,615,974 Blaze Recycling & Metals LLC* (e) $ 396,958
95,846 Freeport-McMoRan Copper &
Gold, Inc. 3,294,227
-----------------
$ 3,691,185
-----------------
Total Materials $ 3,691,185
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 21
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Rate (b) Ratings
Shares (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.1%
Building Products -- 0.1%
894 Panolam Holdings Co.* (e) $ 700,002
-----------------
Total Capital Goods $ 700,002
-------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.2%
Air Freight & Logistics -- 0.1%
1,584 CEVA Group Plc* $ 2,003,317
-------------------------------------------------------------------------------------------------------------
Marine -- 0.1%
2,370,345 Horizon Lines, Inc.* $ 1,647,508
-----------------
Total Transportation $ 3,650,825
-------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.0%+
Hotels, Resorts & Cruise
Lines -- 0.0%+
33,046 NR/NR Perseus Holding Corp.* $ 49,569
-------------------------------------------------------------------------------------------------------------
Education Services -- 0.0%+
11,492 Cengage Learning Holdings II LP $ 419,935
-----------------
Total Consumer Services $ 469,504
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.0%+
Other Diversified Financial
Services -- 0.0%+
24,638 BTA Bank JSC (G.D.R.) (144A)* $ 13,531
-----------------
Total Diversified Financials $ 13,531
-------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.1%
Real Estate Development -- 0.1%
161,215 Newhall Land Development LLC* $ 725,468
-----------------
Total Real Estate $ 725,468
-------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $18,511,779) $ 9,250,515
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Principal
Amount ($)
-------------------------------------------------------------------------------------------------------------
ASSET BACKED
SECURITIES -- 1.6%
TRANSPORTATION -- 0.1%
Airlines -- 0.1%
1,213,302 BB+/Ba2 Continental Airlines 1998-1
Class B Pass Through Trust,
6.748%, 3/15/17 $ 1,286,101
-----------------
Total Transportation $ 1,286,101
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.0%+
Hotels, Resorts & Cruise
Lines -- 0.0%+
490,953 NR/NR Westgate Resorts 2012-A LLC,
3.75%, 8/20/25 (144A) $ 494,880
-----------------
Total Consumer Services $ 494,880
-------------------------------------------------------------------------------------------------------------
BANKS -- 0.9%
Thrifts & Mortgage Finance -- 0.9%
447,997 1.43 CCC/Caa3 Amortizing Residential Collateral
Trust 2002-BC1, Floating Rate
Note, 1/25/32 $ 304,400
1,000,000 NR/NR Bayview Opportunity Master Fund
Trust 2013-3RPL, 4.0%, 4/28/18
(Step) (144A) 990,175
675,000 BB/NR CarNow Auto Receivables Trust
2012-1, 6.9%, 11/15/16 (144A) 680,694
7,457,801 0.35 CCC/Caa2 Carrington Mortgage Loan Trust
Series 2007-FRE1, Floating Rate
Note, 2/25/37 6,734,334
1,523,000 CCC/C Citicorp Residential Mortgage Trust
Series 2006-2, 5.918%, 9/25/36
(Step) 1,379,494
1,629,324 1.13 CCC/Caa1 Countrywide Asset-Backed
Certificates, Floating Rate Note,
11/25/34 1,360,720
502,830 0.28 B-/Caa1 GSAMP Trust 2006-HE8, Floating
Rate Note, 1/25/37 481,808
1,500,000 6.55 NR/NR Security National Mortgage Loan
Trust 2007-1, Floating Rate Note,
4/25/37 (144A) 1,473,609
1,000,000 BB/NR United Auto Credit Securitization
Trust 2013-1, 4.4%, 4/15/19
(144A) 1,006,978
-----------------
$ 14,412,212
-----------------
Total Banks $ 14,412,212
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.6%
Other Diversified Financial
Services -- 0.2%
7,172,074 0.63 CCC-/Caa3 Aircraft Finance Trust, Floating
Rate Note, 5/15/24 (144A) $ 3,048,131
-----------------
Specialized Finance -- 0.4%
752,089 0.58 CCC/Caa2 Lease Investment Flight Trust,
Floating Rate Note, 7/15/31 $ 541,504
8,634,697 0.54 CCC/Caa2 Lease Investment Flight Trust,
Floating Rate Note, 7/15/31 6,216,982
-----------------
$ 6,758,486
-----------------
Total Diversified Financials $ 9,806,617
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 23
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $24,417,791) $ 25,999,810
-------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 1.2%
BANKS -- 1.2%
Thrifts & Mortgage Finance -- 1.2%
945,021 2.33 BB/B2 American Home Mortgage
Investment Trust 2005-1, Floating
Rate Note, 6/25/45 $ 936,009
138,237 6.85 B/NR COMM 2000-C1 Mortgage Trust,
Floating Rate Note, 8/15/33 (144A) 134,430
1,502,000 5.14 B-/B3 Credit Suisse First Boston Mortgage
Securities Corp., Floating Rate
Note, 10/15/39 (144A) 1,349,497
9,000,000 7.08 D/NR Credit Suisse First Boston Mortgage
Securities Corp., Floating Rate Note,
12/15/35 (144A) 4,524,408
625,732 NR/Caa1 CSMC Mortgage-Backed Trust
2007-3, 5.0%, 4/25/37 622,030
574,537 NR/NR Extended Stay America Trust
2013-ESH MZ, 7.625%, 12/5/19
(144A) 575,749
295,107 5.67 NR/NR First Horizon Mortgage Pass-Through
Trust 2004-6, Floating Rate Note,
11/25/34 278,931
1,059,742 NR/NR Homeowner Assistance Program
Reverse Mortgage Loan Trust
2013-RM1, 4.0%, 5/26/53 (144A) 1,036,957
2,100,000 6.21 B-/NR JP Morgan Chase Commercial
Mortgage Securities Trust
2007-LDP12, Floating Rate Note,
2/15/51 2,068,548
2,456,792 3.15 BB/Caa3 JP Morgan Mortgage Trust 2005-A1,
Floating Rate Note, 2/25/35 2,285,544
4,315,000 BB/B1 TimberStar Trust 1, 7.5296%,
10/15/36 (144A) 4,403,121
775,000 6.16 B-/B1 Wachovia Bank Commercial
Mortgage Trust Series 2007-C34,
Floating Rate Note, 5/15/46 805,943
-----------------
$ 19,021,167
-----------------
Total Banks $ 19,021,167
-------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $22,844,662) $ 19,021,167
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 73.7%
ENERGY -- 11.6%
Oil & Gas Drilling -- 0.7%
4,100,000 NR/NR North Atlantic Drilling, Ltd., 6.25%,
2/1/19 (144A) $ 3,925,750
2,835,000 B+/B1 Shelf Drilling Holdings, Ltd., 8.625%,
11/1/18 (144A) 3,054,712
3,765,000 BB-/B1 Unit Corp., 6.625%, 5/15/21 3,990,900
-----------------
$ 10,971,362
-------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment
& Services -- 0.4%
2,175,000 BB-/B1 Calfrac Holdings LP, 7.5%,
12/1/20 (144A) $ 2,300,062
1,297,000 B/B1 Expro Finance Luxembourg SCA,
8.5%, 12/15/16 (144A) 1,355,365
2,680,000 B-/B2 FTS International, Inc., 6.25%,
5/1/22 (144A) 2,713,500
54,000 NR/NR Green Field Energy Services, Inc.,
11/15/16 (144A) (c) (d) 4,050
-----------------
$ 6,372,977
-------------------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.3%
2,770,000 NR/NR American Energy -- Utica LLC, 3.5%,
3/1/21 (144A) (PIK) $ 2,866,950
1,025,000 B-/B3 Jones Energy Holdings LLC, 6.75%,
4/1/22 (144A) 1,063,438
1,000,000 NR/Caa1 YPF SA, 8.875%, 12/19/18 (144A) 1,041,250
-----------------
$ 4,971,638
-------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration
& Production -- 7.8%
1,270,000 B-/B3 Bonanza Creek Energy, Inc.,
6.75%, 4/15/21 $ 1,358,900
2,830,000 B-/B3 BreitBurn Energy Partners LP,
7.875%, 4/15/22 3,063,475
2,000,000 B-/B3 Carrizo Oil & Gas, Inc., 7.5%, 9/15/20 2,190,000
4,240,000 B-/B3 Comstock Resources, Inc.,
7.75%, 4/1/19 4,536,800
3,695,000 BB/B1 Denbury Resources, Inc.,
5.5%, 5/1/22 3,736,569
13,700,000 B/B2 EP Energy LLC, 9.375%, 5/1/20 15,789,250
4,980,000 B-/B3 EPL Oil & Gas, Inc., 8.25%, 2/15/18 5,378,400
3,260,000 B/NR GeoPark Latin America, Ltd. Agencia
en Chile, 7.5%, 2/11/20 (144A) 3,423,000
4,990,000 B-/B3 Gulfport Energy Corp., 7.75%, 11/1/20 5,414,150
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 25
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration
& Production -- (continued)
6,250,000 CCC+/Caa1 Halcon Resources Corp.,
8.875%, 5/15/21 $ 6,476,562
1,000,000 BBB-/Baa3 KazMunayGas National Co JSC,
4.4%, 4/30/23 (144A) 943,750
5,215,000 B/B3 Kodiak Oil & Gas Corp.,
8.125%, 12/1/19 5,788,650
750,000 B-/Caa1 Lightstream Resources, Ltd.,
8.625%, 2/1/20 (144A) 765,938
3,000,000 B-/Caa1 Memorial Production Partners
LP, 7.625%, 5/1/21 3,161,250
2,800,000 CCC+/Caa1 Midstates Petroleum Co., Inc.,
9.25%, 6/1/21 2,863,000
5,000,000 B+/Ba2 MIE Holdings Corp., 7.5%,
4/25/19 (144A) 5,031,250
12,850,000 B+/NR MIE Holdings Corp., 9.75%,
5/12/16 (144A) 13,444,312
2,840,000 B+/B2 Oasis Petroleum, Inc., 6.5%, 11/1/21 3,038,800
7,570,000 BB+/B2 Pacific Rubiales Energy Corp.,
5.375%, 1/26/19 (144A) 7,778,175
2,450,000 B-/Caa1 QR Energy LP, 9.25%, 8/1/20 2,621,500
6,995,000 BB-/B2 Rosetta Resources, Inc.,
5.875%, 6/1/22 7,134,900
1,500,000 B-/B3 Sanchez Energy Corp., 7.75%,
6/15/21 (144A) 1,605,000
1,650,000 BB/Ba3 SM Energy Co., 6.5%, 1/1/23 1,777,875
3,800,000 B-/B3 Stone Energy Corp., 7.5%, 11/15/22 4,123,000
2,410,000 B+/B3 Swift Energy Co., 8.875%, 1/15/20 2,530,500
3,020,000 CCC+/Caa1 Talos Production LLC, 9.75%,
2/15/18 (144A) 3,178,550
CAD 2,775,000 B/NR Trilogy Energy Corp., 7.25%,
12/13/19 (144A) 2,673,752
1,520,000 BB-/B1 Tullow Oil Plc, 6.0%, 11/1/20 (144A) 1,550,400
1,850,000 BB/B2 Ultra Petroleum Corp., 5.75%,
12/15/18 (144A) 1,947,125
1,245,000 B/B3 Vanguard Natural Resources LLC,
7.875%, 4/1/20 1,341,488
-----------------
$ 124,666,321
-------------------------------------------------------------------------------------------------------------
Oil & Gas Refining
& Marketing -- 0.2%
4,025,000 B+/B2 Calumet Specialty Products Partners
LP, 6.5%, 4/15/21 (144A) $ 4,014,938
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Oil & Gas Storage
& Transportation -- 0.8%
950,000 3.26 BB/Ba1 Energy Transfer Partners LP, Floating
Rate Note, 11/1/66 $ 874,000
NOK 12,000,000 6.96 NR/NR Golar LNG Partners LP, Floating Rate
Note, 10/12/17 2,120,534
4,000,000 BB+/Ba3 Sabine Pass Liquefaction LLC,
5.625%, 2/1/21 4,130,000
5,850,000 BB/Ba3 Targa Resources Partners LP, 4.25%,
11/15/23 (144A) 5,469,750
-----------------
$ 12,594,284
-------------------------------------------------------------------------------------------------------------
Coal & Consumable Fuels -- 1.4%
315,000 B-/B3 Alpha Natural Resources, Inc.,
6.0%, 6/1/19 $ 239,400
11,063,000 BB-/B1 Berau Capital Resources Pte, Ltd.,
12.5%, 7/8/15 (144A) 11,477,862
3,750,000 BB-/B1 Berau Coal Energy Tbk PT, 7.25%,
3/13/17 (144A) 3,693,750
6,200,000 CC/Ca Bumi Capital Pte, Ltd., 12.0%,
11/10/16 (144A) (d) 2,883,000
1,900,000 NR/B1 Indo Energy Finance II BV, 6.375%,
1/24/23 (144A) 1,474,875
4,435,000 D/NR James River Coal Co., 7.875%,
4/1/19 (d) 510,025
950,000 CCC+/Caa2 Mongolian Mining Corp., 8.875%,
3/29/17 (144A) 570,000
1,900,000 B-/Caa1 Murray Energy Corp., 8.625%,
6/15/21 (144A) 2,061,500
EURO 1,050,000 CC/Ca New World Resources NV, 7.875%,
1/15/21 (144A) 225,767
-----------------
$ 23,136,179
-----------------
Total Energy $ 186,727,699
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 10.0%
Commodity Chemicals -- 0.9%
EURO 2,500,000 CCC+/B3 KP Germany Erste GmbH, 11.625%,
7/15/17 (144A) $ 3,953,520
9,820,000 BB-/B2 Rain CII Carbon LLC, 8.0%,
12/1/18 (144A) 10,286,450
-----------------
$ 14,239,970
-------------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.4%
EURO 4,325,000 NR/B3 INEOS Group Holdings SA, 5.75%,
2/15/19 (144A) $ 6,164,630
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 27
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Construction Materials -- 0.3%
600,000 B+/NR Cemex Finance LLC, 6.0%,
4/1/24 (144A) $ 600,750
3,700,000 BBB/Baa3 Votorantim Cimentos SA, 7.25%,
4/5/41 (144A) 3,787,875
-----------------
$ 4,388,625
-------------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 2.5%
3,355,000 B-/B3 AEP Industries, Inc., 8.25%, 4/15/19 $ 3,568,881
11,250,297 CCC+/Caa2 ARD Finance SA, 11.125% (11.125% PIK,
0.0% cash), 6/1/18 (144A) (PIK) 12,375,327
423,529 NR/Caa1 Ardagh Packaging Finance Plc,
7.0%, 11/15/20 (144A) 441,529
5,000,000 CCC+/Caa1 Ardagh Packaging Finance Plc,
9.125%, 10/15/20 (144A) 5,562,500
EURO 2,100,000 CCC+/Caa1 Ardagh Packaging Finance Plc,
9.25%, 10/15/20 (144A) 3,229,922
2,400,000 CCC+/Caa2 Reynolds Group Issuer, Inc.,
8.25%, 2/15/21 2,595,000
7,490,000 CCC+/Caa2 Reynolds Group Issuer, Inc.,
8.5%, 5/15/18 7,827,050
4,675,000 CCC+/Caa2 Reynolds Group Issuer, Inc.,
9.875%, 8/15/19 5,189,250
-----------------
$ 40,789,459
-------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.6%
3,085,000 BB/Ba3 Amsted Industries, Inc., 5.0%,
3/15/22 (144A) $ 3,077,288
6,210,000 BB-/B1 Ausdrill Finance Pty, Ltd., 6.875%,
11/1/19 (144A) 5,713,200
10,175,000 D/NR Midwest Vanadium Pty, Ltd.,
11.5%, 2/15/18 (144A) (d) 5,392,750
1,360,000 NR/NR Mirabela Nickel, Ltd., 3.5%
(0.0% PIK, 3.5% cash), 6/30/14
(144A) (PIK) 1,326,000
11,725,000 NR/NR Mirabela Nickel, Ltd., 8.75%,
4/15/18 (144A) (d) 2,814,000
4,000,000 BBB-/Baa2 MMC Norilsk Nickel OJSC via
MMC Finance, Ltd., 5.55%,
10/28/20 (144A) 3,860,000
5,300,000 CCC+/B3 Molycorp, Inc., 10.0%, 6/1/20 5,207,250
1,560,000 B/Caa1 Prince Mineral Holding Corp.,
11.5%, 12/15/19 (144A) 1,751,100
12,660,000 BB/Ba3 Vedanta Resources Plc, 8.25%,
6/7/21 (144A) 13,419,600
-----------------
$ 42,561,188
-------------------------------------------------------------------------------------------------------------
Precious Metals & Minerals -- 0.1%
1,825,000 BBB/Baa2 Fresnillo Plc, 5.5%, 11/13/23 (144A) $ 1,870,625
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Steel -- 2.3%
5,770,000 CCC/Caa2 Essar Steel Algoma, Inc., 9.875%,
6/15/15 (144A) $ 3,317,750
11,475,000 CCC+/Caa2 Ferrexpo Finance Plc, 7.875%,
4/7/16 (144A) 10,270,125
4,340,000 B-/Caa1 JMC Steel Group, Inc., 8.25%,
3/15/18 (144A) 4,383,400
1,800,000 BB/Ba2 Metalloinvest Finance, Ltd.,
5.625%, 4/17/20 (144A) 1,606,500
2,660,000 NR/Ba2 Metalloinvest Finance, Ltd., 6.5%,
7/21/16 (144A) 2,646,700
4,620,000 NR/Caa2 Metinvest BV, 10.25%,
5/20/15 (144A) 4,366,824
11,350,000 NR/Caa2 Metinvest BV, 8.75%,
2/14/18 (144A) 9,791,304
-----------------
$ 36,382,603
-------------------------------------------------------------------------------------------------------------
Paper Products -- 0.9%
8,640,000 B+/B1 Grupo Papelero Scribe SA de CV,
8.875%, 4/7/20 (144A) $ 8,424,000
5,685,000 BB-/Ba3 Resolute Forest Products, Inc.,
5.875%, 5/15/23 (144A) 5,528,662
-----------------
$ 13,952,662
-----------------
Total Materials $ 160,349,762
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 5.3%
Aerospace & Defense -- 1.1%
1,995,000 CCC+/Caa1 Accudyne Industries Borrower,
7.75%, 12/15/20 (144A) $ 2,164,575
2,100,000 BB-/Ba3 Bombardier, Inc., 4.75%, 4/15/19 2,136,750
4,900,000 BB-/Ba3 Bombardier, Inc., 6.0%, 10/15/22 4,985,750
2,970,000 BB/B1 DigitalGlobe, Inc., 5.25%,
2/1/21 (144A) 2,895,750
5,408,000 B-/B2 DynCorp International, Inc.,
10.375%, 7/1/17 5,718,960
-----------------
$ 17,901,785
-------------------------------------------------------------------------------------------------------------
Building Products -- 0.4%
6,750,000 BB-/B1 Griffon Corp., 5.25%, 3/1/22 (144A) $ 6,665,625
-------------------------------------------------------------------------------------------------------------
Construction & Engineering -- 1.8%
EURO 2,725,000 B/B2 Abengoa Finance SAU, 6.0%,
3/31/21 (144A) $ 3,846,650
6,900,000 B/B2 Abengoa Finance SAU, 8.875%,
11/1/17 (144A) 7,797,000
2,230,000 BB-/Ba3 Dycom Investments, Inc.,
7.125%, 1/15/21 2,413,975
6,450,000 B/B2 Empresas ICA SAB de CV, 8.9%,
2/4/21 (144A) 6,579,000
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 29
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Construction &
Engineering -- (continued)
7,700,000 BB-/B1 OAS Investments GmbH, 8.25%,
10/19/19 (144A) $ 7,882,875
-----------------
$ 28,519,500
-------------------------------------------------------------------------------------------------------------
Electrical Components
& Equipment -- 0.3%
3,250,000 B+/B2 General Cable Corp., 7.0%,
10/1/22 (144A) $ 3,258,125
1,100,000 B-/B3 WireCo WorldGroup, Inc.,
9.5%, 5/15/17 1,124,750
-----------------
$ 4,382,875
-------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.7%
5,075,000 B/B3 Constellation Enterprises LLC,
10.625%, 2/1/16 (144A) $ 4,263,000
2,980,000 B+/B2 JB Poindexter & Co., Inc., 9.0%,
4/1/22 (144A) 3,270,550
4,100,000 BB/NR Magnesita Finance, Ltd., 8.625%
(Perpetual) (144A) 3,951,375
-----------------
$ 11,484,925
-------------------------------------------------------------------------------------------------------------
Construction & Farm Machinery
& Heavy Trucks -- 0.5%
8,405,000 CCC-/B3 Navistar International Corp.,
8.25%, 11/1/21 $ 8,552,088
-------------------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.2%
4,015,000 CCC+/NR WPE International Cooperatief UA,
10.375%, 9/30/20 (144A) $ 2,539,488
-------------------------------------------------------------------------------------------------------------
Trading Companies
& Distributors -- 0.3%
4,365,000 B+/B1 WESCO Distribution, Inc., 5.375%,
12/15/21 (144A) $ 4,441,388
-----------------
Total Capital Goods $ 84,487,674
-------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES
& SUPPLIES -- 0.4%
Environmental & Facilities
Services -- 0.3%
5,080,000 B-/Caa2 Liberty Tire Recycling LLC, 11.0%,
10/1/16 (144A) $ 4,927,600
6,510,000 NR/NR Old AII, Inc., 12/15/16 (c) (d) 65
-----------------
$ 4,927,665
-------------------------------------------------------------------------------------------------------------
Diversified Support Services -- 0.1%
1,475,000 B/Caa2 NANA Development Corp., 9.5%,
3/15/19 (144A) $ 1,497,125
-----------------
Total Commercial Services
& Supplies $ 6,424,790
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 2.5%
Airlines -- 1.1%
7,363,000 B-/NR Gol Finance SA, 9.25%,
7/20/20 (144A) $ 7,326,185
2,050,000 BBB-/NR Guanay Finance, Ltd., 6.0%,
12/15/20 (144A) 2,165,415
4,250,000 BB-/NR TAM Capital 3, Inc., 8.375%,
6/3/21 (144A) 4,574,062
3,500,000 B/B2 United Continental Holdings, Inc.,
6.0%, 7/15/26 3,351,250
-----------------
$ 17,416,912
-------------------------------------------------------------------------------------------------------------
Marine -- 0.2%
3,650,000 B+/B2 Navios South American Logistics,
Inc., 7.25%, 5/1/22 (144A) $ 3,659,125
-------------------------------------------------------------------------------------------------------------
Railroads -- 0.4%
3,500,000 B+/NR Far East Capital, Ltd. SA, 8.0%,
5/2/18 (144A) $ 2,467,500
3,370,000 B/B3 Florida East Coast Holdings Corp.,
6.75%, 5/1/19 (144A) 3,462,675
-----------------
$ 5,930,175
-------------------------------------------------------------------------------------------------------------
Trucking -- 0.2%
5,710,989 NR/Caa2 Inversiones Alsacia SA, 8.0%,
8/18/18 (144A) $ 3,769,252
-------------------------------------------------------------------------------------------------------------
Airport Services -- 0.4%
3,284,250 CCC+/Caa1 Aeropuertos Argentina 2000 SA,
10.75%, 12/1/20 (144A) $ 3,288,355
3,900,000 B/B2 Aguila 3 SA, 7.875%,
1/31/18 (144A) 4,129,125
-----------------
$ 7,417,480
-------------------------------------------------------------------------------------------------------------
Highways & Railtracks -- 0.2%
MXN 39,000,000 BBB/NR Red de Carreteras de Occidente
SAPIB de CV, 9.0%, 6/10/28 (144A) $ 2,753,590
-----------------
Total Transportation $ 40,946,53
-------------------------------------------------------------------------------------------------------------
AUTOMOBILES &
COMPONENTS -- 1.1%
Auto Parts & Equipment -- 0.9%
3,150,000 B-/B3 Meritor, Inc., 6.75%, 6/15/21 $ 3,331,125
10,550,000 CC/Ca Stanadyne Holdings, Inc., 12.0%,
2/15/15 (Step) 10,576,375
-----------------
$ 13,907,500
-------------------------------------------------------------------------------------------------------------
Tires & Rubber -- 0.2%
2,810,000 B+/B1 The Goodyear Tire & Rubber Co.,
7.0%, 5/15/22 $ 3,098,025
-----------------
Total Automobiles & Components $ 17,005,525
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 31
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES
& APPAREL -- 1.8%
Homebuilding -- 1.1%
2,100,000 BB-/B2 Brookfield Residential Properties,
Inc., 6.5%, 12/15/20 (144A) $ 2,210,250
9,802,000 NR/C Desarrolladora Homex SAB de CV,
12/11/19 (144A) (c) (d) 1,078,220
800,000 B/B2 KB Home, 7.0%, 12/15/21 858,000
4,450,000 BB-/Ba3 Lennar Corp., 4.75%, 11/15/22 4,338,750
2,200,000 B/B2 Rialto Holdings LLC, 7.0%,
12/1/18 (144A) 2,293,500
5,810,000 B+/B2 Standard Pacific Corp.,
6.25%, 12/15/21 6,216,700
7,500,000 NR/Ca Urbi Desarrollos Urbanos SAB de
CV, 2/3/22 (144A) (c) (d) 843,750
-----------------
$ 17,839,170
-------------------------------------------------------------------------------------------------------------
Leisure Products -- 0.7%
EURO 4,700,000 CCC+/Caa2 Heckler & Koch GmbH, 9.5%,
5/15/18 (144A) $ 6,902,881
5,000,000 CCC+/Caa1 Icon Health & Fitness, Inc.,
11.875%, 10/15/16 (144A) 4,875,000
-----------------
$ 11,777,881
-----------------
Total Consumer Durables & Apparel $ 29,617,051
-------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.2%
Casinos & Gaming -- 0.6%
EURO 6,950,000 B+/B3 Cirsa Funding Luxembourg SA,
8.75%, 5/15/18 (144A) $ 10,026,682
2,704,717 NR/NR Mashantucket Western Pequot Tribe,
6.5% (5.5% PIK, 1.0% cash),
7/1/36 (PIK) 405,708
-----------------
$ 10,432,390
-------------------------------------------------------------------------------------------------------------
Hotels, Resorts &
Cruise Lines -- 0.2%
2,860,000 B+/B3 Viking Cruises, Ltd., 8.5%,
10/15/22 (144A) $ 3,231,800
-------------------------------------------------------------------------------------------------------------
Restaurants -- 0.1%
BRL 4,250,000 NR/Ba2 Arcos Dorados Holdings, Inc.,
10.25%, 7/13/16 (144A) $ 1,761,984
-------------------------------------------------------------------------------------------------------------
Education Services -- 0.3%
4,225,000 CCC+/Caa1 Cambium Learning Group, Inc.,
9.75%, 2/15/17 $ 4,288,375
-----------------
Total Consumer Services $ 19,714,549
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
MEDIA -- 1.7%
Broadcasting -- 0.5%
4,000,000 B-/Caa2 Intelsat Luxembourg SA,
7.75%, 6/1/21 $ 4,170,000
1,600,000 B+/B1 Nara Cable Funding, Ltd., 8.875%,
12/1/18 (144A) 1,728,000
EURO 1,550,000 B+/B1 Nara Cable Funding, Ltd., 8.875%,
12/1/18 (144A) 2,322,603
-----------------
$ 8,220,603
-------------------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.9%
2,025,000 B/B3 Altice SA, 7.75%, 5/15/22 (144A) $ 2,111,062
6,300,000 B-/Caa1 Intelsat Jackson Holdings SA,
6.625%, 12/15/22 (144A) 6,473,250
1,250,000 B+/Ba3 Numericable Group SA, 6.0%,
5/15/22 (144A) 1,279,688
400,000 NR/Ba3 Numericable Group SA, 6.25%,
5/15/24 (144A) 409,500
4,375,000 BB/Ba2 Videotron, Ltd., 5.375%,
6/15/24 (144A) 4,407,812
-----------------
$ 14,681,312
-------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.2%
1,115,000 B-/B3 Regal Entertainment Group, Inc.,
5.75%, 2/1/25 $ 1,103,850
1,000,000 B/Caa1 WMG Acquisition Corp., 6.75%,
4/15/22 (144A) 1,007,500
-----------------
$ 2,111,350
-------------------------------------------------------------------------------------------------------------
Publishing -- 0.1%
1,675,000 B-/B3 MPL 2 Acquisition Canco, Inc.,
9.875%, 8/15/18 (144A) $ 1,804,812
-----------------
Total Media $ 26,818,077
-------------------------------------------------------------------------------------------------------------
RETAILING -- 0.6%
Distributors -- 0.1%
1,250,000 BB-/Ba3 LKQ Corp., 4.75%, 5/15/23 $ 1,200,000
-------------------------------------------------------------------------------------------------------------
Department Stores -- 0.3%
5,600,000 B/NR Grupo Famsa SAB de CV, 7.25%,
6/1/20 (144A) $ 5,684,000
-------------------------------------------------------------------------------------------------------------
Computer &
Electronics Retail -- 0.2%
2,710,000 B+/B1 Rent-A-Center, Inc., 4.75%, 5/1/21 $ 2,540,625
-----------------
Total Retailing $ 9,424,625
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 33
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE
& TOBACCO -- 8.5%
Distillers & Vintners -- 0.3%
4,829,992 NR/NR CEDC Finance Corp International,
Inc., 8.0%, 4/30/18 (Step) $ 4,395,293
-------------------------------------------------------------------------------------------------------------
Agricultural Products -- 0.2%
4,400,000 B/NR Tonon Bioenergia SA, 9.25%,
1/24/20 (144A) $ 3,982,000
-------------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 7.5%
1,960,000 B/B2 Agrokor dd, 8.875%, 2/1/20 (144A) $ 2,173,150
EURO 3,200,000 B/B2 Agrokor dd, 9.875%, 5/1/19 (144A) 5,038,310
6,000,000 BB/Ba3 Bertin SA, 10.25%, 10/5/16 (144A) 6,757,500
4,450,000 B+/B2 CFG Investment SAC, 9.75%,
7/30/19 (144A) 4,355,438
2,705,000 B/B1 Chiquita Brands International, Inc.,
7.875%, 2/1/21 3,016,075
9,720,000 B+/B2 Corp Pesquera Inca SAC, 9.0%,
2/10/17 (144A) 10,084,500
6,800,000 B/B3 FAGE Dairy Industry SA, 9.875%,
2/1/20 (144A) 7,344,000
2,969,595 NR/NR Independencia International, Ltd.,
12/30/16 (144A) (c) (d) 7,424
4,690,000 BB/Ba3 JBS Finance II, Ltd., 8.25%,
1/29/18 (144A) 5,018,300
3,720,000 BB/NR JBS Investments GmbH, 7.75%,
10/28/20 (144A) 3,957,150
2,800,000 B/B2 Marfrig Holding Europe BV, 11.25%,
9/20/21 (144A) 3,024,000
3,000,000 B/B2 Marfrig Holding Europe BV, 9.875%,
7/24/17 (144A) 3,150,000
20,248,000 B/B2 Marfrig Overseas, Ltd., 9.5%,
5/4/20 (144A) 20,602,340
6,300,000 CCC/NR MHP SA, 8.25%, 4/2/20 (144A) 5,166,000
4,755,000 BB-/B1 Minerva Luxembourg SA, 12.25%,
2/10/22 (144A) 5,396,925
24,000,000 BB-/B1 Minerva Luxembourg SA, 7.75%,
1/31/23 (144A) 24,690,005
6,500,000 B+/B2 Pesquera Exalmar S.A.A., 7.375%,
1/31/20 (144A) 5,988,125
1,375,000 B/B1 Post Holdings, Inc., 6.75%,
12/1/21 (144A) 1,440,312
1,675,000 B/B1 Post Holdings, Inc.,
7.375%, 2/15/22 1,792,250
1,144,000 B+/B3 Wells Enterprises, Inc., 6.75%,
2/1/20 (144A) 1,184,040
-----------------
$ 120,185,844
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Tobacco -- 0.5%
7,165,000 B-/Caa1 Alliance One International, Inc.,
9.875%, 7/15/21 $ 7,236,650
-----------------
Total Food, Beverage & Tobacco $ 135,799,787
-------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT
& SERVICES -- 2.3%
Health Care Supplies -- 0.6%
5,750,000 B/B3 ConvaTec Healthcare E SA, 10.5%,
12/15/18 (144A) $ 6,325,000
3,200,000 B-/Caa2 Immucor, Inc., 11.125%, 8/15/19 3,616,000
-----------------
$ 9,941,000
-------------------------------------------------------------------------------------------------------------
Health Care Services -- 0.1%
1,758,000 CCC+/Caa2 Gentiva Health Services, Inc.,
11.5%, 9/1/18 $ 1,837,110
-------------------------------------------------------------------------------------------------------------
Health Care Facilities -- 1.3%
7,895,000 B-/B3 CHS, 6.875%, 2/1/22 (144A) $ 8,181,194
2,400,000 B-/B3 Kindred Healthcare, Inc., 6.375%,
4/15/22 (144A) 2,430,000
1,050,000 B-/B3 Kindred Healthcare, Inc.,
8.25%, 6/1/19 1,123,500
4,300,000 BB-/Ba1 LifePoint Hospitals, Inc., 5.5%,
12/1/21 (144A) 4,472,000
3,945,000 B+/Ba3 Tenet Healthcare Corp.,
4.375%, 10/1/21 3,782,269
-----------------
$ 19,988,963
-------------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.3%
5,120,000 BB/Ba2 WellCare Health Plans, Inc.,
5.75%, 11/15/20 $ 5,465,600
-----------------
Total Health Care Equipment
& Services $ 37,232,673
-------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS,
BIOTECHNOLOGY
& LIFE SCIENCES -- 1.0%
Biotechnology -- 0.6%
9,652,000 B-/Caa2 Lantheus Medical Imaging, Inc.,
9.75%, 5/15/17 $ 9,603,740
-------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.4%
1,740,000 B+/B1 Grifols Worldwide Operations, Ltd.,
5.25%, 4/1/22 (144A) $ 1,766,100
4,755,000 CCC+/Caa2 JLL, 7.5%, 2/1/22 (144A) 4,873,875
-----------------
$ 6,639,975
-----------------
Total Pharmaceuticals,
Biotechnology & Life Sciences $ 16,243,715
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 35
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
BANKS -- 3.4%
Diversified Banks -- 2.3%
TRY 4,500,000 NR/Baa2 Akbank TAS, 7.5%, 2/5/18 (144A) $ 1,892,786
6,875,000 9.75 BBB-/NR Banco de Credito del Peru Panama,
Floating Rate Note, 11/6/69 (144A) 8,069,531
6,000,000 CCC+/Caa1 Banco de Galicia y Buenos Aires SA,
8.75%, 5/4/18 (144A) 5,940,000
820,000 9.75 NR/Ca Banco Macro SA, Floating Rate
Note, 12/18/36 733,761
2,000,000 NR/Baa3 Banco Nacional de Costa Rica,
6.25%, 11/1/23 (144A) 1,977,500
1,250,000 NR/Baa2 BBVA Bancomer SA Texas, 6.75%,
9/30/22 (144A) 1,393,750
4,750,000 BB-/B1 CorpGroup Banking SA, 6.75%,
3/15/23 (144A) 4,667,222
5,550,000 NR/NR Russian Agricultural Bank OJSC
Via RSHB Capital SA, 8.5%,
10/16/23 (144A) 5,119,875
1,500,000 NR/Ba1 Turkiye Is Bankasi, 6.0%,
10/24/22 (144A) 1,456,500
5,000,000 BB+/Ba1 VTB Bank OJSC Via VTB Capital SA,
6.95%, 10/17/22 (144A) 4,787,500
-----------------
$ 36,038,425
-------------------------------------------------------------------------------------------------------------
Regional Banks -- 0.9%
13,430,000 6.75 BBB/Baa3 The PNC Financial Services Group,
Inc., Floating Rate Note (Perpetual) $ 14,806,575
-------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.2%
4,000,000 BB-/Ba3 Alfa Bank OJSC Via Alfa Bond
Issuance Plc, 7.5%, 9/26/19 (144A) $ 3,860,000
-----------------
Total Banks $ 54,705,000
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.3%
Other Diversified Financial
Services -- 0.1%
2,245,000 5.35 BB+/Ba3 Citigroup, Inc., Floating Rate
Note (Perpetual) $ 2,093,462
-------------------------------------------------------------------------------------------------------------
Specialized Finance -- 1.0%
3,045,000 BBB-/NR Cantor Fitzgerald LP, 7.875%,
10/15/19 (144A) $ 3,220,088
2,737,000 B/B2 National Money Mart Co.,
10.375%, 12/15/16 2,880,692
8,870,000 B+/B2 Nationstar Mortgage LLC,
6.5%, 6/1/22 8,382,150
1,775,000 B+/B2 Nationstar Mortgage LLC,
6.5%, 7/1/21 $ 1,692,906
-----------------
$ 16,175,836
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.9%
INR 240,670,000 NR/NR International Finance Corp.,
8.25%, 6/10/21 $ 4,062,042
10,395,000 NR/NR Tarjeta Naranja SA, 9.0%,
1/28/17 (144A) 10,369,312
-----------------
$ 14,431,354
-------------------------------------------------------------------------------------------------------------
Asset Management
& Custody Banks -- 0.4%
6,800,000 BB/NR JBS Investment Management, Ltd.,
7.25%, 4/3/24 $ 6,893,500
-------------------------------------------------------------------------------------------------------------
Investment Banking
& Brokerage -- 0.8%
10,650,000 BBB/NR UBS AG, 7.625%, 8/17/22 $ 12,655,076
-------------------------------------------------------------------------------------------------------------
Diversified Capital Markets -- 0.1%
1,200,000 7.50 BB/NR Credit Suisse Group AG, Floating
Rate Note (Perpetual) (144A) $ 1,303,500
-----------------
Total Diversified Financials $ 53,552,728
-------------------------------------------------------------------------------------------------------------
INSURANCE -- 5.1%
Insurance Brokers -- 1.0%
GBP 4,840,000 B-/Caa2 Towergate Finance Plc, 10.5%,
2/15/19 (144A) $ 8,581,973
GBP 1,200,000 6.03 NR/B1 Towergate Finance Plc, Floating Rate
Note, 2/15/18 (144A) 2,046,704
4,900,000 CCC+/Caa2 USI, Inc. New York, 7.75%,
1/15/21 (144A) 5,059,250
-----------------
$ 15,687,927
-------------------------------------------------------------------------------------------------------------
Reinsurance -- 4.1%
1,900,000 6.38 NR/NR Aquarius + Investments Plc for Swiss
Reinsurance Co., Ltd., Floating Rate
Note, 9/1/24 $ 2,016,850
450,000 8.10 BB-/NR Atlas Reinsurance VII, Ltd., Floating
Rate Note, 1/7/16 (Cat Bond) (144A) 471,150
725,000 4.30 BB+/NR Blue Danube II, Ltd., Floating Rate
Note, 5/23/16 (Cat Bond) (144A) 736,310
250,000 6.23 BB+/NR Blue Danube, Ltd., Floating Rate
Note, 4/10/15 (Cat Bond) (144A) 256,400
1,925,000 5.29 BB-/NR Caelus Re, Ltd., Floating Rate Note,
3/7/16 (Cat Bond) (144A) 1,953,490
1,250,000 6.89 NR/NR Caelus Re, Ltd., Floating Rate Note,
4/7/17 (Cat Bond) (144A) 1,309,375
1,250,000 17.98 NR/NR Combine Re, Ltd., Floating Rate Note,
1/7/15 (Cat Bond) (144A) 1,331,500
1,500,000 10.26 BB-/NR Compass Re, Ltd., Floating Rate Note,
1/8/15 (Cat Bond) (144A) 1,531,350
1,000,000 11.26 B+/NR Compass Re, Ltd., Floating Rate Note,
1/8/15 (Cat Bond) (144A) 1,023,800
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 37
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
400,000 9.05 BB/NR East Lane Re V, Ltd., Floating Rate
Note, 3/16/16 (Cat Bond) (144A) $ 430,200
1,500,000 6.70 BB/NR East Lane Re, Ltd., Floating Rate
Note, 3/13/15 (Cat Bond) (144A) 1,549,650
500,000 7.39 BB-/NR Embarcadero Reinsurance, Ltd.,
Floating Rate Note, 2/13/15
(Cat Bond) (144A) 511,600
1,950,000 5.03 BB+/NR Foundation Re III, Ltd., Floating Rate
Note, 2/25/15 (Cat Bond) (144A) 1,975,155
1,500,000 7.43 NR/NR Galileo Re, Ltd., Floating Rate Note,
1/9/19 (Cat Bond) (144A) 1,556,550
1,925,000 13.55 B-/NR Ibis Re II, Ltd., Floating Rate Note,
2/5/15 (Cat Bond) (144A) 1,984,290
1,250,000 8.40 BB-/NR Ibis Re II, Ltd., Floating Rate Note,
2/5/15 (Cat Bond) (144A) 1,278,375
350,000 N/A BB-/NR Kilimanjaro Re, Ltd., Floating Rate
Note, 4/30/18 (Cat Bond) (144A) 351,050
750,000 N/A BB-/NR Kilimanjaro Re, Ltd., Floating Rate
Note, 4/30/18 (Cat Bond) (144A) 752,025
1,450,000 4.05 BB/NR Longpoint Re, Ltd. III, Floating Rate
Note, 5/18/16 (Cat Bond) (144A) 1,472,475
2,500,000 12.03 B/NR Mystic Re, Ltd., Floating Rate Note,
3/12/15 (Cat Bond) (144A) 2,628,750
800,000 8.55 B+/NR Mythen Re, Ltd., Series 2012-2
Class A, Floating Rate Note, 1/5/17
(Cat Bond) (144A) 848,640
650,000 11.78 B-/NR Mythen Re, Ltd., Series 2012-2
Class A, Floating Rate Note,
11/10/16 (Cat Bond) (144A) 690,105
2,000,000 7.56 BB-/NR Queen Street IV Capital, Ltd.,
Floating Rate Note, 4/9/15
(Cat Bond) (144A) 2,052,200
900,000 8.56 BB-/NR Queen Street V Re, Ltd., Floating Rate
Note, 4/9/15 (Cat Bond) (144A) 928,890
300,000 10.58 B/NR Queen Street VI Re, Ltd., Floating
Rate Note, 4/9/15 (Cat Bond) (144A) 314,280
750,000 8.65 B/NR Queen Street VII Re, Ltd., Floating
Rate Note, 4/8/16 (Cat Bond) (144A) 795,975
3,450,000 12.06 B-/NR Residential Reinsurance 2011, Ltd.,
Floating Rate Note, 6/6/15
(Cat Bond) (144A) 3,619,740
750,000 9.06 BB-/NR Residential Reinsurance 2011, Ltd.,
Floating Rate Note, 6/6/15
(Cat Bond) (144A) 787,425
1,800,000 12.80 NR/NR Residential Reinsurance 2012, Ltd.,
Floating Rate Note, 12/6/16
(Cat Bond) (144A) 1,963,080
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
450,000 5.80 BB/NR Residential Reinsurance 2012, Ltd.,
Floating Rate Note, 12/6/16
(Cat Bond) (144A) $ 470,880
950,000 19.05 NR/NR Residential Reinsurance 2012, Ltd.,
Floating Rate Note, 12/6/16
(Cat Bond) (144A) 1,052,505
1,850,000 22.05 NR/NR Residential Reinsurance 2012, Ltd.,
Floating Rate Note, 6/6/16
(Cat Bond) (144A) 2,198,355
550,000 8.05 BB/NR Residential Reinsurance 2012, Ltd.,
Floating Rate Note, 6/6/16
(Cat Bond) (144A) 606,705
1,100,000 10.05 BB-/NR Residential Reinsurance 2012, Ltd.,
Floating Rate Note, 6/6/16
(Cat Bond) (144A) 1,221,440
750,000 9.30 B-/NR Residential Reinsurance 2013, Ltd.,
Floating Rate Note, 6/6/17
(Cat Bond) (144A) 784,800
1,600,000 4.03 BB/NR Sanders Re, Ltd., Floating Rate Note,
5/5/17 (Cat Bond) (144A) 1,614,720
13,799 NR/NR Sector Re V, Ltd., 12/1/17
(Cat Bond) (144A) (c ) --
2,350,000 NR/NR Sector Re V, Ltd., 12/1/18
(Cat Bond) (144A) (c) 2,412,980
3,533 NR/NR Sector Re V, Ltd., 3/1/18 (Cat Bond)
(144A) (c) 898,857
1,000,000 NR/NR Sector Re V, Ltd., 3/30/19
(Cat Bond) (144A) (c) 1,000,000
2,000,000 NR/NR Silverton Re, Ltd., 9/16/16
(Cat Bond) (144A) (c) 2,113,200
8,535,000 7.51 BB+/Ba2 Sirius International Group, Ltd.,
Floating Rate Note (Perpetual) (144A) 8,990,999
875,000 16.51 NR/NR Successor X, Ltd., Floating Rate Note,
1/27/15 (Cat Bond) (144A) 913,238
950,000 16.30 NR/NR Successor X, Ltd., Floating Rate Note,
11/10/15 (Cat Bond) (144A) 975,175
375,000 11.28 B-/NR Successor X, Ltd., Floating Rate Note,
11/10/15 (Cat Bond) (144A) 398,625
900,000 8.53 B+/NR Tar Heel Re, Ltd., Floating Rate Note,
5/9/16 (Cat Bond) (144A) 961,290
250,000 6.28 NR/NR Tradewynd Re, Ltd., Floating Rate
Note, 1/8/15 (Cat Bond) (144A) 250,700
-----------------
$ 63,985,149
-----------------
Total Insurance $ 79 ,673,076
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 39
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.8%
Diversified REIT -- 0.2%
2,565,000 NR/Baa2 Trust F, 5.25%, 12/15/24 (144A) $ 2,593,856
-------------------------------------------------------------------------------------------------------------
Mortgage REIT -- 0.4%
6,485,000 NR/NR NorthStar Realty Finance Corp.,
3.0%, 9/30/14 $ 6,476,822
-------------------------------------------------------------------------------------------------------------
Diversified Real
Estate Activities -- 0.3%
995,000 B+/B1 Alam Synergy Pte, Ltd., 9.0%,
1/29/19 (144A) $ 1,032,312
4,025,000 NR/Ba1 BR Malls International Finance, Ltd.,
8.5% (Perpetual) (144A) 4,145,750
-----------------
$ 5,178,062
-------------------------------------------------------------------------------------------------------------
Real Estate Operating
Companies -- 0.9%
5,750,000 CCC+/NR Alto Palermo SA, 7.875%,
5/11/17 (144A) $ 5,527,188
8,405,000 CCC+/NR IRSA Inversiones y Representaciones
SA, 8.5%, 2/2/17 (144A) 8,362,975
-----------------
$ 13,890,163
-----------------
Total Real Estate $ 28,138,903
-------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.7%
Internet Software & Services -- 0.2%
2,910,000 BB/Ba3 Equinix, Inc., 5.375%, 4/1/23 $ 2,960,925
700,000 BB+/Ba1 IAC, 4.875%, 11/30/18 731,500
-----------------
$ 3,692,425
-------------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.3%
4,025,000 BB-/B3 Entegris, Inc., 6.0%, 4/1/22 (144A) $ 4,075,312
-------------------------------------------------------------------------------------------------------------
Data Processing
& Outsourced Services -- 0.4%
3,597,000 B-/Caa1 First Data Corp., 12.625%, 1/15/21 $ 4,316,400
1,700,000 BB-/Ba3 NeuStar, Inc., 4.5%, 1/15/23 1,479,000
-----------------
$ 5,795,400
-------------------------------------------------------------------------------------------------------------
Systems Software -- 0.6%
11,100,490 NR/NR Pegasus Solutions, Inc., 13.0%,
9/15/14 (144A) (d) $ 10,323,456
-------------------------------------------------------------------------------------------------------------
Home Entertainment Software -- 0.2%
3,225,000 BB+/Ba2 Activision Blizzard, Inc., 6.125%,
9/15/23 (144A) $ 3,507,188
-----------------
Total Software & Services $ 27,393,781
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE
& EQUIPMENT -- 1.0%
Computer Storage
& Peripherals -- 0.4%
6,925,000 BBB-/Ba1 Seagate HDD Cayman, 4.75%,
6/1/23 (144A) $ 6,933,656
-------------------------------------------------------------------------------------------------------------
Electronic Equipment
Manufacturers -- 0.4%
6,150,000 B+/B1 Viasystems, Inc., 7.875%,
5/1/19 (144A) $ 6,549,750
-------------------------------------------------------------------------------------------------------------
Electronic Components -- 0.2%
EURO 1,800,000 B+/Ba2 Belden, Inc., 5.5%, 4/15/23 (144A) $ 2,564,378
-----------------
Total Technology Hardware
& Equipment $ 16,047,784
-------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT -- 0.3%
Semiconductors -- 0.3%
5,070,000 B/B2 Advanced Micro Devices, Inc.,
6.75%, 3/1/19 (144A) $ 5,260,125
CNY 14,000,000 BB-/NR LDK Solar Co., Ltd., 10.0%,
2/28/14 (d) 334,733
-----------------
$ 5,594,858
-----------------
Total Semiconductors
& Semiconductor Equipment $ 5,594,858
-------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 6.1%
Integrated Telecommunication
Services -- 3.9%
4,790,000 B/B3 Cincinnati Bell, Inc.,
8.375%, 10/15/20 $ 5,269,000
8,378,000 CCC+/Caa1 Cincinnati Bell, Inc., 8.75%, 3/15/18 8,796,900
COP 1,626,000,000 NR/Ba1 Empresa de Telecomunicaciones
de Bogota, 7.0%, 1/17/23 (144A) 778,058
5,200,000 BB-/Ba2 Frontier Communications Corp.,
7.125%, 1/15/23 5,369,000
2,940,000 BB-/Ba2 Frontier Communications Corp.,
8.5%, 4/15/20 3,423,262
10,345,000 BB-/Ba2 Frontier Communications Corp.,
8.75%, 4/15/22 11,793,300
500,000 B+/B3 GCI, Inc., 6.75%, 6/1/21 505,625
EURO 1,600,000 B+/B1 Telenet Finance V Luxembourg SCA,
6.25%, 8/15/22 (144A) 2,410,630
1,760,000 B/B1 Windstream Corp., 6.375%, 8/1/23 1,711,600
6,285,000 B/B1 Windstream Corp., 7.5%, 6/1/22 6,709,238
2,300,000 B/B1 Windstream Corp., 7.75%, 10/1/21 2,489,750
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 41
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Integrated Telecommunication
Services -- (continued)
6,765,000 B/B1 Windstream Corp., 7.75%, 10/15/20 $ 7,306,200
5,700,000 B/B1 Windstream Corp., 8.125%, 9/1/18 6,027,750
-----------------
$ 62,590,313
-------------------------------------------------------------------------------------------------------------
Wireless Telecommunication
Services -- 2.2%
2,800,000 BB-/B1 Altice Financing SA, 6.5%,
1/15/22 (144A) $ 2,933,000
600,000 B-/B3 Altice Finco SA, 8.125%,
1/15/24 (144A) 648,000
3,600,000 NR/Caa1 Digicel Group, Ltd., 8.25%,
9/30/20 (144A) 3,834,000
2,300,000 NR/NR Richland Towers Funding LLC,
7.87%, 3/15/16 (144A) 2,423,641
2,880,000 BB/Ba3 T-Mobile USA, Inc., 6.542%, 4/28/20 3,096,000
1,940,000 BB/Ba3 T-Mobile USA, Inc., 6.633%, 4/28/21 2,095,200
1,300,000 BB/Ba3 T-Mobile USA, Inc., 6.731%, 4/28/22 1,402,375
2,750,000 NR/NR Unison Ground Lease Funding LLC,
5.78%, 3/15/20 (144A) 2,644,309
7,800,000 BB/Ba3 Vimpel Communications Via VIP
Finance Ireland, Ltd. OJSC, 7.748%,
2/2/21 (144A) 7,819,500
4,875,000 BB/Ba3 VimpelCom Holdings BV, 7.5043%,
3/1/22 (144A) 4,777,500
RUB 130,000,000 BB/Ba3 VimpelCom Holdings BV, 9.0%,
2/13/18 (144A) 3,413,572
-----------------
$ 35,087,097
-----------------
Total Telecommunication Services $ 97,677,410
-------------------------------------------------------------------------------------------------------------
UTILITIES -- 3.0%
Electric Utilities -- 1.0%
5,681,000 CCC/NR Cia de Transporte de Energia Electrica
en Alta Tension Transener SA, 9.75%,
8/15/21 (144A) $ 3,848,878
7,150,000 5.25 BBB+/A3 Electricite de France SA, Floating
Rate Note (Perpetual) (144A) 7,296,575
811,000 NR/Caa3 Empresa Distribuidora Y
Comercializadora Norte, 9.75%,
10/25/22 (144A) 608,250
2,995,000 8.75 BB+/Ba1 Enel S.p.A., Floating Rate Note,
9/24/73 (144A) 3,451,738
84,335 B-/B1 FPL Energy National Wind Portfolio
LLC, 6.125%, 3/25/19 (144A) 82,728
311,438 B-/Ba2 FPL Energy Wind Funding LLC,
6.876%, 6/27/17 (144A) 304,431
-----------------
$ 15,592,600
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Gas Utilities -- 0.7%
2,437,000 B-/B2 Star Gas Partners LP, 8.875%, 12/1/17 $ 2,583,220
8,117,602 CCC+/Caa1 Transportadora de Gas del Sur SA,
9.625%, 5/14/20 8,168,337
-----------------
$ 10,751,557
-------------------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.6%
5,525,000 NR/Caa2 DTEK Finance Plc, 7.875%,
4/4/18 (144A) $ 4,494,422
5,804,389 NR/NR Ormat Funding Corp.,
8.25%, 12/30/20 5,804,389
-----------------
$ 10,298,811
-------------------------------------------------------------------------------------------------------------
Independent Power Producers
& Energy Traders -- 0.7%
1,350,000 BB-/Ba3 AES Corp. Virginia, 5.5%, 3/15/24 $ 1,350,000
940,000 NR/Baa3 Instituto Costarricense de Electricidad,
6.95%, 11/10/21 (144A) 984,650
1,500,000 B+/B1 InterGen NV, 7.0%, 6/30/23 (144A) 1,575,000
133,950 NR/NR Juniper Generation LLC, 6.79%,
12/31/14 (144A) 130,977
7,100,000 BB-/B1 NRG Energy, Inc., 6.25%,
5/1/24 (144A) 7,126,625
357,000 BB+/Ba1 NSG Holdings LLC, 7.75%,
12/15/25 (144A) 381,990
-----------------
$ 11,549,242
-----------------
Total Utilities $ 48,192,210
-------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $1,201,405,695) $ 1,181,768,211
-------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT
BONDS -- 5.7%
5,250,000 BBB-/NR Brazil Minas SPE via State of Minas
Gerais, 5.333%, 2/15/28 (144A) $ 5,151,562
BRL 2,950,000 BBB-/Baa2 Brazilian Government International
Bond, 10.25%, 1/10/28 1,408,130
7,300,000 CCC+/Caa2 City of Buenos Aires Argentina,
12.5%, 4/6/15 (144A) 7,511,700
COP 6,986,000,000 BBB/Baa3 Colombia Government International
Bond, 12.0%, 10/22/15 3,972,415
GHS 5,400,000 NR/NR Ghana Government Bond,
19.24%, 5/30/16 1,741,765
GHS 3,660,000 NR/NR Ghana Government Bond,
21.0%, 10/26/15 1,231,790
GHS 2,000,000 NR/NR Ghana Government Bond,
26.0%, 6/5/17 720,527
IDR 53,000,000,000 NR/Baa3 Indonesia Treasury Bond,
7.0%, 5/15/22 4,309,129
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 43
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Foreign Government
Bonds -- (continued)
IDR 81,459,000,000 NR/Baa3 Indonesia Treasury Bond,
8.25%, 6/15/32 $ 6,841,386
IDR 11,650,000,000 NR/Aaa Inter-American Development Bank,
4.5%, 2/4/16 965,343
BRL 11,200,000 AAA/Aaa International Finance Corp.,
5.0%, 12/21/15 4,627,784
INR 241,840,000 NR/Aaa International Finance Corp.,
7.75%, 12/3/16 4,068,774
MXN 4,800,000 A/A3 Mexican Bonos, 7.5%, 6/3/27 398,168
MXN 226,573,600 A/A3 Mexican Udibonos, 2.0%, 6/9/22 16,837,228
MXN 10,556,270 A/A3 Mexican Udibonos, 3.5%, 12/14/17 867,921
NGN 760,000,000 B+/Ba3 Nigeria Government Bond,
16.0%, 6/29/19 5,239,340
3,388,320 CCC+/NR Province of Salta Argentina, 9.5%,
3/16/22 (144A) 3,367,990
3,025,000 CCC+/Caa2 Provincia de Buenos Aires Argentina,
10.875%, 1/26/21 (144A) 2,760,312
2,125,000 CCC+/Caa2 Provincia de Buenos Aires Argentina,
11.75%, 10/5/15 (144A) 2,071,875
2,210,000 CCC+/NR Provincia de Neuquen Argentina,
7.875%, 4/26/21 (144A) 2,174,088
2,335,000 B/B1 Republic of Ghana, 7.875%,
8/7/23 (144A) 2,159,875
RON 24,770,000 NR/NR Romania Government Bond,
5.85%, 4/26/23 8,138,980
2,000,000 B/NR Rwanda International Government
Bond, 6.625%, 5/2/23 (144A) 2,000,000
575,000 CCC/Caa3 Ukraine Government International
Bond, 6.75%, 11/14/17 (144A) 484,438
3,500,000 CCC/Caa3 Ukraine Government International
Bond, 7.8%, 11/28/22 (144A) 2,935,625
-------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN
GOVERNMENT BONDS
(Cost $103,130,961) $ 91,986,145
-------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 0.1%
Municipal General -- 0.1%
8,875,000 0.00 NR/NR Non-Profit Preferred Funding Trust I,
Floating Rate Note, 9/15/37
(144A) $ 1,978,770
-------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $8,858,916) $ 1,978,770
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
44 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE
LOAN INTERESTS -- 5.2%**
ENERGY -- 0.3%
Oil & Gas Equipment
& Services -- 0.1%
1,375,000 0.00 B-/B2 FTS International, Inc., Term Loan
(First Lien), 4/1/21 $ 1,382,950
-------------------------------------------------------------------------------------------------------------
Coal & Consumable Fuels -- 0.2%
4,700,000 0.00 NR/NR Bumi Resources Tbk PT, Term
Loan, 8/15/14 $ 4,611,875
792,928 6.43 NR/NR Long Haul Holdings, Ltd., Facility B
Loan, 11/17/13 (d) 317,171
-----------------
$ 4,929,046
-----------------
Total Energy $ 6,311,996
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.7%
Aerospace & Defense -- 0.6%
3,777,207 4.23 B/B2 DAE Aviation Holdings, Inc., Term
Loan, 11/2/18 $ 3,833,865
1,487,052 3.49 B-/Caa1 Hunter Defense Technologies, Inc.,
Term Loan, 8/22/14 1,412,699
2,860,573 6.43 BB/B1 Hunter Defense Technologies, Inc.,
Term Loan, 8/22/14 2,631,727
1,712,338 5.00 B/NR Standard Aero, Ltd., Term
Loan, 11/2/18 1,738,559
-----------------
$ 9,616,850
-------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.1%
1,418,897 4.50 B+/B2 Pro Mach, Inc., Term Loan, 7/6/17 $ 1,418,897
-----------------
Total Capital Goods $ 11,035,747
-------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES
& SUPPLIES -- 0.2%
Diversified Support Services -- 0.0%+
1,926,073 10.00 NR/NR IAP Worldwide Services, Inc.,
12/31/15 (d) $ 603,502
-------------------------------------------------------------------------------------------------------------
Security & Alarm Services -- 0.2%
2,268,862 4.25 B/Ba3 Monitronics International, Inc.,
Term B Loan, 3/23/18 $ 2,273,826
-----------------
Total Commercial Services
& Supplies $ 2,877,328
-------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.1%
Air Freight & Logistics -- 0.1%
1,002,425 6.75 B-/B2 Ozburn-Hessey Holding Co LLC,
Term Loan, 5/23/19 $ 1,005,558
-----------------
Total Transportation $ 1,005,558
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 45
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.2%
Auto Parts & Equipment -- 0.2%
3,206 3.75 B+/Ba3 Allison Transmission, Inc., Term
Loan, 8/23/19 $ 3,201
3,119,676 5.50 NR/NR TI Group Automotive Systems LLC,
Additional Term Loan, 3/27/19 3,138,200
-----------------
$ 3,141,401
-----------------
Total Automobiles & Components $ 3,141,401
-------------------------------------------------------------------------------------------------------------
MEDIA -- 0.8%
Advertising -- 0.1%
2,192,990 6.75 B/NR Affinion Group, Inc., Term
Loan, 10/9/16 $ 2,201,214
-------------------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.7%
GBP 5,600,000 4.50 BB-/Ba3 Virgin Media Investment Holdings,
Ltd., Term Loan, 6/8/20 $ 9,504,004
1,353,325 4.75 B/Ba3 WideOpenWest Finance LLC, Term
Loan, 4/1/19 1,357,765
-----------------
$ 10,861,769
-----------------
Total Media $ 13,062,983
-------------------------------------------------------------------------------------------------------------
RETAILING -- 0.7%
Distributors -- 0.3%
4,820,000 0.00 NR/NR Industrial Packaging Group, Term
Loan, 3/10/15 $ 4,820,000
-------------------------------------------------------------------------------------------------------------
Automotive Retail -- 0.4%
6,061,875 5.75 B+/B2 CWGS Group LLC, Term Loan, 2/20/20 $ 6,107,339
-----------------
Total Retailing $ 10,927,339
-------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.1%
Food Distributors -- 0.1%
1,037,625 5.75 B/B1 AdvancePierre Foods, Inc., Term
Loan, 7/10/17 $ 1,039,895
-----------------
Total Food & Staples Retailing $ 1,039,895
-------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT
& SERVICES -- 0.9%
Health Care Services -- 0.8%
1,042,127 4.25 B+/B1 Alliance HealthCare Services, Inc.,
Term Loan, 6/3/19 $ 1,042,941
1,392,375 6.75 B+/B1 Ardent Medical Services, Inc., 1st
Lien Term Loan, 5/2/18 1,378,451
417,670 6.50 NR/B1 BioScrip, Inc., Term Loan, 7/31/20 420,628
696,116 6.50 BB-/B1 BioScrip, Inc., Term Loan, 7/31/20 700,467
1,032,125 6.50 B+/B2 Gentiva Health Services, Inc., Term
Loan, 10/10/19 1,022,772
1,115,878 7.50 B-/B2 inVentiv Health, Inc., Term
Loan, 8/4/16 1,120,063
The accompanying notes are an integral part of these financial statements.
46 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Health Care Services -- (continued)
2,550,000 4.75 B/B1 National Mentor Holdings, Inc., Term
Loan, 1/31/21 $ 2,557,969
1,492,500 5.75 B/B2 National Surgical Hospitals, Inc., Term
Loan, 8/1/19 1,500,895
1,881,600 6.00 B/B1 Surgery Center Holdings, Inc., Term
Loan, 4/11/19 1,891,008
1,427,063 7.25 NR/NR Virtual Radiologic Corp., Term
Loan, 12/22/16 884,779
-----------------
$ 12,519,973
-------------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.1%
1,097,346 9.75 B+/B2 MMM Holdings, Inc., Term
Loan, 10/9/17 $ 1,105,576
797,807 9.75 B+/B2 MSO of Puerto Rico, Inc., Term
Loan, 12/12/17 802,793
-----------------
$ 1,908,369
-----------------
Total Health Care Equipment
& Services $ 14,428,342
-------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS,
BIOTECHNOLOGY
& LIFE SCIENCES -- 0.0%+
Pharmaceuticals -- 0.0%+
980,094 5.00 B/NR Generic Drug Holdings, Inc., 8/16/20 $ 982,135
-----------------
Total Pharmaceuticals,
Biotechnology & Life Sciences $ 982,135
-------------------------------------------------------------------------------------------------------------
INSURANCE -- 0.1%
Multi-line Insurance -- 0.1%
1,858,822 4.25 B/B1 Alliant Holdings I, Inc., Term
Loan, 12/20/19 $ 1,860,541
-----------------
Total Insurance $ 1,860,541
-------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.0%
Application Software -- 1.0%
12,718,699 8.50 B-/B1 Expert Global Solutions, Inc., Term
Loan, 4/3/18 $ 12,162,256
3,500,000 9.75 CCC+/Caa1 Vertafore, Inc., Term Loan, 10/29/17 3,562,346
-----------------
$ 15,724,602
-----------------
Total Software & Services $ 15,724,602
-------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE
& EQUIPMENT -- 0.1%
Electronic Components -- 0.1%
2,177,194 5.00 B/B2 Scitor Corp., Term Loan, 2/15/17 $ 2,143,628
-----------------
Total Technology Hardware
& Equipment $ 2,143,628
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 47
Schedule of Investments | 4/30/14 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE
LOAN INTERESTS
(Cost $85,829,754) $ 84,541,495
--------------------------------------------------------------------------------------------------------------
Purchased Put Option -- 0.0%+
4,923,450 Put USD/Call TRY @ 2.154, 12/1/15 $ 86,706
--------------------------------------------------------------------------------------------------------------
TOTAL PURCHASED PUT OPTION
(Cost $81,114) $ 86,706
--------------------------------------------------------------------------------------------------------------
RIGHTS / WARRANTS -- 0.0%+
ENERGY -- 0.0%+
Oil & Gas Equipment
& Services -- 0.0%+
2,275 Green Field Energy Services, Inc.,
11/15/21 (144A) $ 2,298
------------------
Total Energy $ 2,298
--------------------------------------------------------------------------------------------------------------
AUTOMOBILES
& COMPONENTS -- 0.0%+
Auto Parts & Equipment -- 0.0%+
990 Lear Corp., 11/9/14 $ 163,385
------------------
Total Automobiles & Components $ 163,385
--------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE
& TOBACCO -- 0.0%+
Distillers & Vintners -- 0.0%+
5,578,091 Belvedere SA, 12/23/16 $ 270,827
------------------
Total Food, Beverage & Tobacco $ 270,827
--------------------------------------------------------------------------------------------------------------
TOTAL RIGHTS / WARRANTS
(Cost $447,730) $ 436,510
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT
IN SECURITIES -- 96.7%
(Cost $1,584,435,638) (a) (f) $ 1,551,970,041
--------------------------------------------------------------------------------------------------------------
OTHER ASSETS &
LIABILITIES -- 3.3% $ 53,680,749
--------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 1,605,650,790
==============================================================================================================
Written Call Option
(4,923,449) Call USD/Put TRY @ 2.95, 12/1/15 $ (29,681)
--------------------------------------------------------------------------------------------------------------
TOTAL WRITTEN CALL OPTION
(Cost $(81,114)) $ (29,681)
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
48 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
* Non-income producing security.
+ Amount rounds to less than 0.1%.
NR Not rated by either S&P or Moody's.
REIT Real Estate Investment Trust.
(G.D.R.) Global Depositary Receipts.
(Perpetual) Security with no stated maturity 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.
Step Bond issued with an initial coupon rate which converts to a higher
rate at a later date.
PIK Represents a pay in kind security.
** 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.
(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 April 30, 2014, the value of these securities
amounted to $870,331,784 or 54.2% of total net assets.
(a) At April 30, 2014, the net unrealized depreciation on investments
based on cost for federal income tax purposes of $1,596,775,070 was
as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 76,299,575
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (121,104,604)
--------------
Net unrealized depreciation $ (44,805,029)
==============
(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 recognized through
accretion of discount.
(d) Security is in default and is non-income producing.
(e) Security is valued using fair value methods (other than prices
supplied by independent pricing services broker-dealers). See Notes
To Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 49
Schedule of Investments | 4/30/14 (unaudited) (continued)
(f) Distributions of investments by country of issue (excluding
temporary cash investments) as a percentage of total investment in
securities, is as follows:
United States 46.8%
Cayman Islands 7.1
Luxembourg 7.0
Argentina 4.2
Mexico 4.0
United Kingdom 3.9
Bermuda 2.7
Canada 2.6
Ireland 2.6
Netherlands 2.5
Peru 1.8
Austria 1.2
Indonesia 1.2
Brazil 1.0
Singapore 1.0
Australia 1.0
Other (individually less than 1%) 9.4
-----
100.0%
=====
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
BRL Brazilian Real
CAD Canadian Dollar
CNY New Chinese Yuan
COP Columbian Peso
EURO Euro
GBP British Pound Sterling
GHS Ghanaian Cedi
IDR Indonesian Rupiah
INR Indian Rupee
MXN Mexican Peso
NGN Nigerian Naira
NOK Norwegian Krone
RON Romanian Leu
RUB Russian Ruble
TRY Turkish Lira
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 2014 aggregated $262,555,997 and $289,709,113,
respectively.
The accompanying notes are an integral part of these financial statements.
50 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
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
broker-dealers) as Level 3.
The following is a summary of the inputs used as of April 30, 2014, in valuing
the Fund's investments:
----------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 87,707,849 $ -- $ 87,707,849
Preferred Stocks -- -- -- --
Transportation
Air Freight & Logistics 4,336,635 4,336,635
Consumer Services
Hotels, Resorts & Cruise Lines 1,422,700 1,422,700
Diversified Financials
Consumer Finance 3,085,662 3,085,662
Insurance
Reinsurance 17,099,105 17,099,105
All Other Preferred Stocks 22,717,215 -- -- 22,717,215
Convertible Preferred Stocks 531,546 -- -- 531,546
Common Stock
Materials
Diversified Metals & Mining -- -- 396,958 396,958
Capital Goods
Building Products -- -- 700,002 700,002
Transportation
Air Freight & Logistics -- 2,003,317 -- 2,003,317
Consumer Services
Hotels, Resorts & Cruise Lines -- 49,569 -- 49,569
Education Services -- 419,935 -- 419,935
Real Estate
Real Estate Development -- 725,468 -- 725,468
All Other Common Stock 4,955,266 -- -- 4,955,266
Asset Backed Securities -- 25,999,810 -- 25,999,810
Collateralized Mortgage Obligations -- 19,021,167 -- 19,021,167
Corporate Bonds
Insurance
Reinsurance -- -- 6,425,037 6,425,037
All Other Corporate Bonds -- 1,175,343,174 -- 1,175,343,174
Foreign Government Bonds -- 91,986,145 -- 91,986,145
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 51
Schedule of Investments | 4/30/14 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------------------
Municipal Bonds $ -- $ 1,978,770 $ -- $ 1,978,770
Senior Floating Rate
Loan Interests -- 84,541,495 -- 84,541,495
Purchased Options -- 86,706 -- 86,706
Rights / Warrants
Energy
Oil & Gas Equipment & Services -- 2,298 -- 2,298
All Other Rights/Warrants 434,212 -- -- 434,212
----------------------------------------------------------------------------------------------------------
Total $ 28,638,239 $ 1,498,710,700 $24,621,102 $ 1,551,970,041
==========================================================================================================
Other Financial Instruments
Written Options $ -- $ (29,681) $ -- $ (29,681)
Unrealized depreciation
on forward foreign
currency contracts $ -- $ (43,497) $ -- $ (43,497)
----------------------------------------------------------------------------------------------------------
Total Other Financial
Instruments $ -- $ (73,178) $ -- $ (73,178)
==========================================================================================================
The following is a reconciliation of assets valued using significant observable
inputs (Level 3):
----------------------------------------------------------------------------------------------------------
Common Preferred Corporate Municipal
Stocks Stocks Bonds Bonds Total
----------------------------------------------------------------------------------------------------------
Balance as of 10/31/13 $ 1,442,957 $12,168,900 $ 6,589,185 $ 2,662,500 $ 22,863,542
Realized gain (loss) -- -- 17,332 -- 17,332
Change in unrealized
appreciation
(depreciation)(1) (345,997) 808,969 1,188 (683,730) (219,570)
Purchases -- 7,106,000 5,350,000 -- 12,456,000
Sales -- (2,984,764) (5,532,668) -- (8,517,432)
Transfers in to Level 3* -- -- -- -- --
Transfers out of Level 3* -- -- -- (1,978,770) (1,978,770)
----------------------------------------------------------------------------------------------------------
Balance as of 4/30/14 $ 1,096,960 $17,099,105 $ 6,425,037 $ -- $ 24,621,102
----------------------------------------------------------------------------------------------------------
(1) Realized gain (loss) on these securities is included in the net realized
gain (loss) from investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) on investments in the
Statement of Operations.
* Transfers are calculated on the beginning of period values. During the six
months ended April 30, 2014, one security valued at $1,978,770 transferred
from Level 3 to Level 2.
Net change in unrealized appreciation (depreciation) of investments still
held as of 4/30/14 $(219,570)
---------
The accompanying notes are an integral part of these financial statements.
52 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
Statement of Assets and Liabilities | 4/30/14 (Consolidated) (unaudited)
ASSETS:
Investment in securities (cost $1,584,435,638) $1,551,970,041
Cash 5,138,829
Foreign currencies, at value (cost $16,067,713) 15,974,107
Receivables --
Investment securities sold 18,984,137
Fund shares sold 2,967,959
Dividends 82,404
Interest 29,095,418
Other assets 81,288
----------------------------------------------------------------------------------------
Total assets $1,624,294,183
----------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 9,971,419
Fund shares repurchased 6,744,923
Dividends 1,212,560
Written options (premiums paid $81,114) 29,681
Unrealized depreciation on forward foreign currency contracts 43,497
Due to affiliates 505,347
Trustee Fees 4,604
Accrued expenses 131,362
----------------------------------------------------------------------------------------
Total liabilities $ 18,643,393
----------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $1,945,789,077
Distributions in excess of net investment income (8,990,281)
Accumulated net realized loss on investments, written options
and foreign currency transactions (298,657,465)
Net unrealized depreciation on investments (32,465,597)
Net unrealized appreciation on written options 51,433
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (76,377)
----------------------------------------------------------------------------------------
Total net assets $1,605,650,790
----------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $483,888,028/47,720,384 shares) $ 10.14
Class B (based on $21,860,602/2,153,643 shares) $ 10.15
Class C (based on $387,136,958/38,286,636 shares) $ 10.11
Class Y (based on $704,994,740/70,731,840 shares) $ 9.97
Class Z (based on $7,770,462/744,867 shares) $ 10.43
MAXIMUM OFFERING PRICE:
Class A ($10.14 / 95.5%) $ 10.62
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 53
Statement of Operations (Consolidated) (unaudited)
For the Six Months Ended 4/30/14
INVESTMENT INCOME:
Interest (net of foreign taxes withheld of $50,573) $ 65,331,084
Dividends (net of foreign taxes withheld of $1,010) 978,332
------------------------------------------------------------------------------------------
Total investment income $ 66,309,416
------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 5,343,929
Transfer agent fees
Class A 126,971
Class B 10,128
Class C 47,524
Class Y 14,401
Class Z 1,520
Distribution fees
Class A 621,353
Class B 116,677
Class C 1,968,966
Shareholder communication expense 993,873
Administrative reimbursements 282,698
Custodian fees 113,247
Registration fees 46,472
Professional fees 123,497
Printing expense 14,657
Fees and expenses of nonaffiliated Trustees 34,776
Miscellaneous 59,718
------------------------------------------------------------------------------------------
Total expenses $ 9,920,407
------------------------------------------------------------------------------------------
Net investment income $ 56,389,009
------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
WRITTEN OPTIONS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (26,465,850)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (1,633,909) $ (28,099,759)
------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 30,207,235
Written options 51,433
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 529,397 $ 30,788,065
------------------------------------------------------------------------------------------
Net gain on investments $ 2,688,306
------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 59,077,315
==========================================================================================
The accompanying notes are an integral part of these financial statements.
54 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------
Six Months
Ended
4/30/14 Year Ended
(Consolidated) 10/31/13
(unaudited) (Consolidated)
-------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 56,389,009 $ 137,829,746
Net realized gain (loss) on investments and foreign
currency transactions (28,099,759) (29,404,113)
Change in net unrealized appreciation (depreciation)
on investments, written options and foreign
currency transactions 30,788,065 23,577,860
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 59,077,315 $ 132,003,493
-------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.35 and $0.69 per share, respectively) $ (17,625,897) $ (39,075,003)
Class B ($0.31 and $0.60 per share, respectively) (727,683) (1,895,090)
Class C ($0.32 and $0.62 per share, respectively) (12,581,458) (27,819,963)
Class Y ($0.36 and $0.71 per share, respectively) (27,742,033) (64,287,065)
Class Z ($0.37 and $0.73 per share, respectively) (293,156) (668,755)
-------------------------------------------------------------------------------------------
Total distributions to shareowners $ (58,970,227) $ (133,745,876)
-------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 173,903,126 $ 569,358,307
Reinvestment of distributions 50,765,942 114,528,755
Cost of shares repurchased (386,960,897) (980,777,449)
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ (162,291,829) $ (296,890,387)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (162,184,741) $ (298,632,770)
NET ASSETS:
Beginning of period 1,767,835,531 2,066,468,301
-------------------------------------------------------------------------------------------
End of period $1,605,650,790 $1,767,835,531
-------------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (8,990,281) $ (6,409,063)
===========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 55
Statements of Changes in Net Assets (continued)
---------------------------------------------------------------------------------------
'14 Shares '14 Amount
(unaudited) (unaudited) '13 Shares '13 Amount
---------------------------------------------------------------------------------------
Class A
Shares sold 4,334,937 $ 43,535,865 14,731,425 $ 150,646,557
Reinvestment of
distributions 1,568,814 15,772,151 3,367,873 34,353,691
Less shares repurchased (10,677,901) (107,289,776) (25,080,406) (255,425,099)
---------------------------------------------------------------------------------------
Net decrease (4,774,150) $ (47,981,760) (6,981,108) $ (70,424,851)
=======================================================================================
Class B
Shares sold or exchanged 10,836 $ 109,389 43,774 $ 446,051
Reinvestment of
distributions 60,269 606,357 153,039 1,563,046
Less shares repurchased (466,691) (4,694,500) (1,491,388) (15,249,577)
---------------------------------------------------------------------------------------
Net decrease (395,586) $ (3,978,754) (1,294,575) $ (13,240,480)
=======================================================================================
Class C
Shares sold 1,201,271 $ 12,047,521 5,699,265 $ 58,272,555
Reinvestment of
distributions 974,991 9,772,826 2,061,215 20,951,660
Less shares repurchased (5,555,237) (55,673,651) (12,516,330) (127,057,433)
---------------------------------------------------------------------------------------
Net decrease (3,378,975) $ (33,853,304) (4,755,850) $ (47,833,218)
=======================================================================================
Class Y
Shares sold 11,907,304 $ 117,612,889 35,418,684 $ 356,406,434
Reinvestment of
distributions 2,465,369 24,361,946 5,684,565 57,034,416
Less shares repurchased (22,025,656) (217,653,351) (57,693,557) (577,335,870)
---------------------------------------------------------------------------------------
Net decrease (7,652,983) $ (75,678,516) (16,590,308) $ (163,895,020)
=======================================================================================
Class Z
Shares sold 57,806 $ 597,462 341,466 $ 3,586,710
Reinvestment of
distributions 24,442 252,662 59,605 625,942
Less shares repurchased (159,721) (1,649,619) (544,482) (5,709,470)
---------------------------------------------------------------------------------------
Net increase
(decrease) (77,473) $ (799,495) (143,411) $ (1,496,818)
=======================================================================================
The accompanying notes are an integral part of these financial statements.
56 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
4/30/14 Year Ended Year Ended Year Ended
(Consolidated) 10/31/13 10/31/12 10/31/11 Year Ended Year Ended
(unaudited) (Consolidated) (Consolidated) (Consolidated) 10/31/10 10/31/09
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.13 $ 10.13 $ 9.83 $ 10.53 $ 9.39 $ 7.56
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.33 $ 0.71 $ 0.76 $ 0.77 $ 0.80 $ 0.90
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions 0.03 (0.02) 0.35 (0.70) 1.11 1.98
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ 0.36 $ 0.69 $ 1.11 $ 0.07 $ 1.91 $ 2.88
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.35) $ (0.69) $ (0.81) $ (0.77) $ (0.77) $ (1.05)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.01 $ -- $ 0.30 $ (0.70) $ 1.14 $ 1.83
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.14 $ 10.13 $ 10.13 $ 9.83 $ 10.53 $ 9.39
====================================================================================================================================
Total return* 3.67% 6.96% 11.89% 0.49% 21.16% 43.56%
Ratio of net expenses to average net assets 1.13%** 1.10% 1.10% 1.09% 1.10% 1.10%
Ratio of net investment income to average net
assets 6.80%** 6.97% 7.74% 7.37% 8.08% 11.68%
Portfolio turnover rate 33%** 33% 33% 52% 49% 33%
Net assets, end of period (in thousands) $483,888 $ 531,829 $602,568 $648,746 $1,117,231 $1,018,040
Ratios with no waiver of fees and assumption
of expenses by the Adviser and no reduction
for fees paid indirectly:
Total expenses 1.13%** 1.10% 1.10% 1.09% 1.15% 1.32%
Net investment income 6.80%** 6.97% 7.74% 7.37% 8.02% 11.46%
====================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 57
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
4/30/14 Year Ended Year Ended Year Ended
(Consolidated) 10/31/13 10/31/12 10/31/11 Year Ended Year Ended
(unaudited) (Consolidated) (Consolidated) (Consolidated) 10/31/10 10/31/09
------------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 10.14 $ 10.14 $ 9.83 $ 10.53 $ 9.37 $ 7.54
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.29 $ 0.60 $ 0.68 $ 0.68 $ 0.70 $ 0.81
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.03 0.00(a) 0.36 (0.69) 1.15 2.01
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.32 $ 0.60 $ 1.04 $ (0.01) $ 1.85 $ 2.82
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.31) $ (0.60) $ (0.73) $ (0.69) $ (0.69) $ (0.99)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.01 $ -- $ 0.31 $ (0.70) $ 1.16 $ 1.83
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.15 $ 10.14 $ 10.14 $ 9.83 $ 10.53 $ 9.37
====================================================================================================================================
Total return* 3.22% 6.18% 11.10% (0.32)% 20.40% 42.42%
Ratio of net expenses to average net assets 1.96%** 1.94% 1.91% 1.90% 1.92% 2.00%
Ratio of net investment income to average net
assets 5.98%** 6.13% 6.94% 6.59% 7.27% 10.88%
Portfolio turnover rate 33%** 33% 33% 52% 49% 33%
Net assets, end of period (in thousands) $21,861 $ 25,847 $38,965 $50,509 $80,100 $96,411
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for
fees paid indirectly:
Total expenses 1.96%** 1.94% 1.91% 1.90% 1.92% 2.08%
Net investment income 5.98%** 6.13% 6.94% 6.56% 7.27% 10.80%
====================================================================================================================================
* 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) Amount rounds to less than $0.005 per share.
The accompanying notes are an integral part of these financial statements.
58 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
4/30/14 Year Ended Year Ended Year Ended
(Consolidated) 10/31/13 10/31/12 10/31/11 Year Ended Year Ended
(unaudited) (Consolidated) (Consolidated) (Consolidated) 10/31/10 10/31/09
------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.10 $ 10.10 $ 9.80 $ 10.49 $ 9.34 $ 7.51
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.30 $ 0.63 $ 0.69 $ 0.70 $ 0.73 $ 0.82
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.03 (0.01) 0.35 (0.69) 1.11 1.99
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.33 $ 0.62 $ 1.04 $ 0.01 $ 1.84 $ 2.81
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.32) $ (0.62) $ (0.74) $ (0.70) $ (0.69) $ (0.98)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.01 $ -- $ 0.30 $ (0.69) $ 1.15 $ 1.83
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.11 $ 10.10 $ 10.10 $ 9.80 $ 10.49 $ 9.34
====================================================================================================================================
Total return* 3.31% 6.23% 11.17% (0.13)% 20.43% 42.56%
Ratio of net expenses to average net assets 1.84%** 1.81% 1.78% 1.78% 1.82% 1.98%
Ratio of net investment income to average net
assets 6.09%** 6.26% 7.08% 6.72% 7.37% 10.78%
Portfolio turnover rate 33%** 33% 33% 52% 49% 33%
Net assets, end of period (in thousands) $387,137 $ 420,932 $468,920 $460,476 $524,448 $461,644
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for
fees paid indirectly:
Total expenses 1.84%** 1.81% 1.78% 1.78% 1.82% 1.98%
Net investment income 6.09%** 6.26% 7.08% 6.72% 7.37% 10.78%
====================================================================================================================================
* 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 High Yield Fund | Semiannual Report | 4/30/14 59
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
4/30/14 Year Ended Year Ended Year Ended
(Consolidated) 10/31/13 10/31/12 10/31/11 Year Ended Year Ended
(unaudited) (Consolidated) (Consolidated) (Consolidated) 10/31/10 10/31/09
------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.96 $ 9.96 $ 9.66 $ 10.35 $ 9.25 $ 7.46
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.34 $ 0.72 $ 0.76 $ 0.81 $ 0.86 $ 0.94
Net realized and unrealized gain (loss) on
investments
and foreign currency transactions 0.03 (0.01) 0.37 (0.70) 1.03 1.91
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.37 $ 0.71 $ 1.13 $ 0.11 $ 1.89 $ 2.85
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.36) $ (0.71) $ (0.83) $ (0.80) $ (0.79) $ (1.06)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.01 $ -- $ 0.30 $ (0.69) $ 1.10 $ 1.79
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.97 $ 9.96 $ 9.96 $ 9.66 $ 10.35 $ 9.25
====================================================================================================================================
Total return* 3.82% 7.27% 12.35% 0.85% 21.35% 43.78%
Ratio of net expenses to average net assets 0.85%** 0.82% 0.80% 0.74% 0.73% 0.78%
Ratio of net investment income to average net
assets 7.07%** 7.24% 8.03% 7.72% 8.42% 11.43%
Portfolio turnover rate 33%** 33% 33% 52% 49% 33%
Net assets, end of period (in thousands) $704,995 $ 780,656 $945,946 $1,364,543 $958,596 $215,614
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for
fees paid indirectly:
Total expenses 0.85%** 0.82% 0.80% 0.74% 0.73% 0.79%
Net investment income 7.07%** 7.24% 8.03% 7.72% 8.42% 11.43%
====================================================================================================================================
* 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.
60 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
4/30/14 Year Ended Year Ended Year Ended
(Consolidated) 10/31/13 10/31/12 10/31/11 Year Ended Year Ended
(unaudited) (Consolidated) (Consolidated) (Consolidated) 10/31/10 10/31/09
------------------------------------------------------------------------------------------------------------------------------------
Class Z
Net asset value, beginning of period $ 10.42 $ 10.43 $ 10.11 $ 10.86 $ 9.67 $ 7.79
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.36 $ 0.75 $ 0.82 $ 0.85 $ 0.87 $ 1.00
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.02 (0.03) 0.36 (0.77) 1.13 1.98
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.38 $ 0.72 $ 1.18 $ 0.08 $ 2.00 $ 2.98
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.37) $ (0.73) $ (0.86) $ (0.83) $ (0.81) $ (1.10)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.01 $ (0.01) $ 0.32 $ (0.75) $ 1.19 $ 1.88
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.43 $ 10.42 $ 10.43 $ 10.11 $ 10.86 $ 9.67
====================================================================================================================================
Total return* 3.77% 7.11% 12.30% 0.53% 21.58% 43.69%
Ratio of net expenses to average net assets 0.90%** 0.89% 0.88% 0.76% 0.90% 0.90%
Ratio of net investment income to average net
assets 7.03%** 7.18% 7.99% 7.67% 8.26% 11.46%
Portfolio turnover rate 33%** 33% 33% 52% 49% 33%
Net assets, end of period (in thousands) $ 7,770 $ 8,570 $10,069 $ 7,580 $ 7,416 $ 4,283
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for
fees paid indirectly:
Total expenses 0.90%** 0.89% 0.88% 0.76% 0.91% 1.23%
Net investment income 7.03%** 7.17% 7.99% 7.67% 8.25% 11.13%
====================================================================================================================================
* 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 High Yield Fund | Semiannual Report | 4/30/14 61
Notes to Financial Statements | 4/30/14 (Consolidated) (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Global High Yield Fund (the Fund) is a series of Pioneer Series Trust
VII, a Delaware statutory trust. The Fund is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company.
The investment objective of the Fund is to maximize total return through a
combination of income and capital appreciation.
The Fund offers five classes of shares designated as Class A, Class B, Class C,
Class Y and Class Z shares. Class Y shares were first publicly offered on
December 28, 2005. Class Z shares were first publicly offered on July 6, 2007.
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 or Class Z 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 year.
Actual results could differ from those estimates.
62 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
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. 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 is deemed to be unreliable, price information will be obtained from an
alternate 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. Credit default swaps are valued by an independent pricing service
based upon valuation models incorporating default probabilities, estimated
recovery rates, actual reported transactions, and other available market
data. 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 senior loan interests 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
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 63
team uses fair value methods approved by the Valuation Committee of the
Board of Trustees. PIM's fair value valuation team is responsible for
monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may include
credit ratings, the financial condition of the company, current market
conditions and comparable securities. The Trust 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 Trust'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 Trust's securities may differ significantly from exchange prices and
such differences could be material.
At April 30, 2014, two securities were valued using fair value methods (in
addition to securities valued using prices supplied by independent pricing
services broker-dealers) representing 0.1% of net assets.
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, including interest on
income bearing cash accounts, is recorded on the accrual basis, 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. 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.
64 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
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. 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 hedge 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 8).
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no provision for federal income taxes is required.
As of April 30, 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.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 65
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 October 31, 2013 was as follows:
----------------------------------------------------------------------------
2013
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $133,745,876
----------------------------------------------------------------------------
Total $133,745,876
============================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2013:
----------------------------------------------------------------------------
2013
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 4,281,580
Capital loss carryforward (270,530,204)
Current year dividend payable (1,370,221)
Unrealized depreciation (72,626,530)
----------------------------------------------------------------------------
Total $ (340,245,375)
============================================================================
The difference between book basis and tax basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales, the mark-to-market
of foreign currency contracts, adjustments relating to catastrophe bonds,
partnerships, interest on defaulted bonds, and interest accruals on
preferred stock.
E. 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 $26,791 in underwriting commissions on the sale of Class A shares
during the six months ended April 30, 2014.
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 5). Class Y and Class Z 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).
66 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
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 B, Class C, Class Y and Class
Z shares can reflect different transfer agent and distribution expense
rates.
G. 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 investments in
foreign markets and countries with limited developing markets may subject
the Fund to a greater degree of risk than in a developed market. These risks
include disruptive political or economic conditions and the imposition of
adverse governmental laws or currency exchange restrictions. The Fund's
prospectus contains unaudited information regarding the Fund's principal
risks. Please refer to that document when considering the Fund's principal
risks.
The Fund invests in below investment grade (high yield) debt securities and
preferred stocks. Some of these high yield securities may be convertible
into equity securities of the issuer. Debt securities rated below investment
grade are commonly referred to as "junk bonds" and are considered
speculative. These securities involve greater risk of loss, are subject to
greater price volatility, and are less liquid, especially during periods of
economic uncertainty or change, than higher rated debt securities.
H. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian or a subcustodian of the Fund. PIM is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
I. Purchased Options
The Fund may purchase call and put options in order to seek to increase
total return. Purchased call and put options entitle the Fund to buy and
sell a specified number of shares or units of a particular security,
currency or index at a specified price at a specific date or within a
specific period of time.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 67
Upon the purchase of a call or put option, the premium paid by the Fund is
included in the Statement of Assets and Liabilities as an investment. All
premiums are marked-to-market daily, and any unrealized appreciation or
depreciation are recorded in the Fund's financial statements. As the
purchaser of an index option, the Fund has the right to receive a cash
payment equal to any depreciation in the value of the index below the strike
price of the option (in the case of a put) or equal to any appreciation in
the value of the index over the strike price of the option (in the case of a
call) as of the valuation date of the option. Premiums paid for purchased
calls and put options which have expired are treated as realized losses on
investments in the Statement of Operations. Upon the exercise or closing of
a purchased put option, the premium is offset against the proceeds on the
sale of the underlying security or financial instrument in order to
determine the realized gain or loss on investments. Upon the exercise or
closing of a purchased call option, the premium is added to the cost of the
security or financial instrument. The risk associated with purchasing
options is limited to the premium originally paid. The average value of
contracts open during the six months ended April 30, 2014 was $33,289.
Purchased put option contracts outstanding at period end are listed at the
Fund's Schedule of Investments.
J. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price, upon
the exercise of the option. When the Fund writes an option, an amount equal
to the premium received by the Fund is recorded as 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.
68 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
The average value of contracts open during the six months ended April 30,
2014 was $45,575. Written call option contracts outstanding at period end
are listed at the end of the Fund's schedule of investments.
The Fund held one written call option contract that was open at April 30,
2014. If the put options were exercised at April 30, 2014, the maximum
amount the Fund would have been required to pay was $81,114.
Transactions in written call options for the six months ended April 30, 2014
are summarized as follows:
----------------------------------------------------------------------------
Number of Contracts Premium Received
----------------------------------------------------------------------------
Options open at beginning of period -- $ --
Options opened (4,923,449) (81,114)
Options exercised -- --
Options closed -- --
Options expired -- --
----------------------------------------------------------------------------
Options open at end of period (4,923,449) $ (81,114)
============================================================================
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, the Fund's investment
adviser, manages the Fund's portfolio. Management fees are calculated daily at
the annual rate of 0.70% of the Fund's average daily net assets up to $500
million; 0.65% of the next $500 million; 0.60% of the next $500 million; 0.55%
of the next $500 million; and 0.45% on assets over $2 billion. For the six
months ended April 30, 2014, the effective management fee (excluding waivers
and/or assumption of expenses) was equivalent to 0.64% of the Fund's average
daily net assets.
PIM contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.10%, 2.00%, 2.00% and 0.90% of the average
daily net assets attributable to Class A, Class B, Class C and Class Z shares,
respectively. Class Y shares do not have an expense limitation. These expense
limitations were in effect through March 1, 2013.
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 Global High Yield Fund | Semiannual Report | 4/30/14 69
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $75,100 in management fees, administrative costs and certain
other reimbursements payable to PIM at April 30, 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 April 30, 2014, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $283,551
Class B 17,446
Class C 195,541
Class Y 491,700
Class Z 5,635
--------------------------------------------------------------------------------
Total $996,873
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $401,299 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at April 30, 2014.
4. Basis for Consolidation of the Financial Statements
The consolidated financial statements of the Fund include the accounts of Blaze
Holding GHYDF, Inc. (the "Subsidiary"). All intercompany accounts and
transactions have been eliminated in consolidation. The Subsidiary, a Delaware
corporation, was incorporated on February 10, 2011 and is wholly-owned and
controlled by the Fund. It is intended that the Fund will remain the sole
shareholder of, and will continue to control, the Subsidiary. The Subsidiary
acts as an investment vehicle for the Fund's interest in Blaze Recycling and
Metals LLC, Class A Units. As of April 30, 2014, the Subsidiary represented
approximately $396,958 or approximately 0.02% of the net assets of the Fund.
5. 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
70 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
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 $28,948 in distribution fees payable to PFD at April
30, 2014.
In addition, redemptions of each class of shares (except Class Y and Class Z
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 or Class
Z shares. Proceeds from the CDSCs are paid to PFD. For the six month ended April
30, 2014, CDSCs in the amount of $17,192 were paid to PFD.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until February 12, 2014 was in the amount of $215
million. As of February 12, 2014, the facility is in the amount of $240 million.
Under such facility, depending on the type of loan, interest on borrowings is
payable at the London Interbank Offered Rate (LIBOR) plus 0.90% (0.85% as of
February 12, 2014) on an annualized basis, or the Alternate Base Rate, which is
the greater of (a) the facility's administrative agent's daily announced prime
rate on the borrowing date, (b) 2% plus the Federal Funds Rate on the borrowing
date and (c) 2% plus the overnight Euro dollar rate on the borrowing date. The
Funds pay an annual commitment fee to participate in the credit facility. The
commitment fee is allocated among participating Funds based on an allocation
schedule set forth in the credit agreement. For the six month ended April 30,
2014, the Fund had no borrowings under the credit facility.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 71
7. Bridge Loan Commitments
As of April 30, 2014, the Fund had no outstanding unfunded loan commitments. The
Fund had the following bridge loan commitment outstanding as of April 30, 2014:
--------------------------------------------------------------------------------
Net
Unrealized
Loan Shares Cost Value Appreciation
--------------------------------------------------------------------------------
Hearthside Food Solutions
LLC, Bridge Loan 2,315,000 $2,315,000 $2,315,000 $ --
--------------------------------------------------------------------------------
Total $ --
================================================================================
8. 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 April 30, 2014, the Fund's expenses
were not reduced under such arrangements.
9. Forward Foreign Currency Contracts
At April 30, 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 contracts open during
the six months ended April 30, 2014 was $24,964,074.
Open forward foreign currency contracts at April 30, 2014 were as follows:
------------------------------------------------------------------------------------------
Net
Net In Unrealized
Contracts Exchange Settlement Appreciation
Currency to Deliver For Date Value (Depreciation)
------------------------------------------------------------------------------------------
EURO (European Euro) 440,000 $ 610,368 5/2/14 $ 610,226 $ (142)
PHP (Philippine Peso) 307,400,000 6,863,139 5/13/14 6,895,166 32,027
RUB (Russian Ruble) 78,000,000 2,207,255 5/13/14 2,183,260 (23,995)
EURO (European Euro) (5,000,000) 5,000,000 5/19/14 5,035,608 35,608
GBP (British
Pound Sterling) (11,368,000) 19,194,564 5/19/14 18,897,685 (296,879)
JPY (Japanese Yen) (1,191,551,081) 11,668,833 5/19/14 11,686,605 17,772
BRL (Brazilian Real) 4,000,000 1,664,655 6/6/14 1,772,906 108,251
NOK (Norwegian Krone) 100,000,000 16,698,749 6/6/14 16,805,400 106,651
EURO (European Euro) (2,725,000) 3,779,745 6/11/14 3,747,994 (31,751)
EURO (European Euro) (7,000,000) 9,709,438 6/11/14 9,673,684 (35,754)
EURO (European Euro) (1,831,569) 2,540,500 6/11/14 2,539,320 (1,180)
EURO (European Euro) (17,000,000) 17,000,000 6/11/14 17,054,270 54,270
TRY (Turkish Lira) (5,802,689) 2,694,290 7/14/14 2,685,915 (8,375)
------------------------------------------------------------------------------------------
Total $ (43,497)
==========================================================================================
72 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
10. 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 April 30, 2014.
------------------------------------------------------------------------------------------
Assets:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Assets Assets and Liabilities
Gross Statement Presented In -------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $388,606 $ (388,606) $ -- $ -- $ -- $ --
Written options 51,433 (51,433) -- -- -- --
------------------------------------------------------------------------------------------
$440,039 $ (440,039) $ -- $ -- $ -- $ --
==========================================================================================
----------------------------------------------------------------------------------------------
Liabilities:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Assets Assets and Liabilities
Gross Statement Presented In -------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Pledged Amount
----------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 432,103 $ (388,606) $ 43,497 $ -- $ -- $ 43,497
Written options 81,114 (51,433) 29,681 -- -- 29,681
----------------------------------------------------------------------------------------------
$ 513,217 $ (440,039) $ 73,178 $ -- $ -- $ 73,178
==============================================================================================
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 73
11. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of April 30, 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 Currency Net unrealized Net unrealized
Contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $ -- currency contracts $43,497
Written options Net unrealized Net unrealized
appreciation on depreciation on
written option $ 51,433 written option $ --
--------------------------------------------------------------------------------------
Total $ 51,433 $43,497
--------------------------------------------------------------------------------------
The effect of derivative instruments on the Statement of Operations for the six
months ended April 30, 2014 was as follows:
-----------------------------------------------------------------------------------------------
Change in
Derivatives Not Unrealized
Accounted for as Realized Appreciation
Hedging Instruments Location of Gain Gain or (Loss) (Depreciation)
Under Accounting or (Loss) on on Derivatives on Derivatives
Standards Codification Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
-----------------------------------------------------------------------------------------------
Forward Foreign Net realized gain (loss) on forward
Currency Contracts foreign currency contracts and
other assets and liabilities
denominated in foreign currencies $ (1,633,909)
Forward Foreign Change in unrealized appreciation
Currency Contracts (depreciation) on forward foreign
contracts and other assets and
liabilities denominated in
foreign currencies $ 529,397
Written options Net realized gain (loss) on
written options $ --
Written options Change in unrealized appreciation
(depreciation) on written options $ 51,433
74 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
12. Subsequent Events
Change in Independent Registered Public Accounting Firm
The Board of Trustees of the Fund, with the approval and recommendation of the
Audit Committee, appointed Deloitte & Touche LLP to serve as the Fund's
independent registered public accounting firm for the fiscal year ending October
31, 2014. Deloitte & Touche LLP replaces Ernst & Young LLP, which resigned as
the Fund's independent registered public accounting firm, effective upon
completion of the audit of the Fund's financial statements for the fiscal year
ended October 31, 2013.
During the periods that Ernst & Young LLP served as the Fund's independent
registered public accounting firm, including the Fund's two most recent fiscal
year, Ernst & Young LLP's reports on the financial statements of the Fund have
not contained an adverse opinion or disclaimer of opinion and have not been
qualified or modified as to uncertainty, audit scope or accounting principles or
practices, financial statement disclosure, or auditing scope or procedure,
which, if not resolved to the satisfaction of Ernst & Young LLP would have
caused Ernst & Young LLP to make reference to the subject matter of the
disagreement in connection with its report on the financial statements. In
addition, there have been no reportable events to the kind described in Item
304(a)(i)(v) of Regulation S-K under the Securities and Exchange Act of 1934.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 75
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Global High Yield 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
76 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
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 first quintile of its Morningstar
category for the ten year period ended June 30, 2013, 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 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.
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
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 77
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 expense ratio of the Fund's Class A shares for
the twelve months ended June 30, 2013 was in the fifth quintile relative to its
Strategic Insight peer group and in the fourth quintile relative to its
Morningstar peer group, in each case for the comparable period, and that the
expense ratio of the Fund's Class Y shares for the twelve months ended June 30,
2013 was in the fifth quintile relative to its Strategic Insight peer group and
in the third quintile relative to its Morningstar peer group, in each case for
the comparable period. The Trustees noted that the expense ratio of the Fund's
Class A shares was approximately eleven basis points higher than the median
expense ratio of its Strategic Insight peer group and approximately six basis
points higher than the median expense ratio of its Morningstar peer group, and
that the expense ratio of the Fund's Class Y shares was approximately ten basis
points higher than the median expense ratio of its Strategic Insight peer group
and approximately three basis points higher than the median expense ratio of its
Morningstar 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, under the
investment advisory agreement with the Fund, PIM performs
78 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
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.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 79
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.
80 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
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
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.
*** Mr. Mayer resigned as a Trustee of the Pioneer Funds effective May 6, 2014.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 81
This page for your notes.
82 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
This page for your notes.
Pioneer Global High Yield Fund | Semiannual Report | 4/30/14 83
This page for your notes.
84 Pioneer Global High Yield Fund | Semiannual Report | 4/30/14
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 19382-08-0614
Pioneer Global Multisector
Income Fund
(Formerly Pioneer Global Aggregate Bond Fund.)*
--------------------------------------------------------------------------------
Semiannual Report | April 30, 2014
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PGABX
Class C PGCBX
Class Y PGYBX
* Effective August 1, 2013, Pioneer Global Aggregate Bond Fund
was renamed Pioneer Global Multisector Income Fund.
[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 40
Notes to Financial Statements 47
Approval of Investment Advisory Agreement 61
Trustees, Officers and Service Providers 65
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 1
President's Letter
Dear Shareowner,
A few months into 2014, we still expect U.S. economic growth for the year to be
in the 2.5% to 3% range, despite some weaker economic data releases during the
winter months driven in large part by harsh 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. 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 System
(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
suggested that rates may be raised roughly six months after the QE program is
fully tapered, that would still place the potential rate hike sometime in 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 faced 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 the 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 Multisector Income Fund | Semiannual Report | 4/30/14
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in 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 Multisector Income Fund | Semiannual Report | 4/30/14 3
Portfolio Management Discussion | 4/30/14
The U.S. economy continued to grow at a moderate pace over the six-month period
ended April 30, 2014, while the European economy emerged from recession and many
emerging markets rallied after being hit hard by earlier worries about rising
interest rates and a shortage of capital. Some emerging markets, however,
remained vulnerable to slowing growth trends in China. In the following
interview, Charles Melchreit and Paresh Upadhyaya discuss the factors that
affected the performance of Pioneer Global Multisector Income Fund during the
six-month period. Mr. Melchreit, a senior vice president and portfolio manager
at Pioneer, and Mr. Upadhyaya, a senior vice president and portfolio manager at
Pioneer, are responsible for the day-to-day management of the Fund along with
Kenneth J. Taubes, Executive Vice President, Chief Investment Officer, U.S., and
a portfolio manager at Pioneer, and Andrew Feltus, a senior vice president and
portfolio manager at Pioneer+.
Q How did the Fund perform during the six-month period ended April 30, 2014?
A The Fund's Class A shares returned 1.89% at net asset value during the
six-month period ended April 30, 2014, while the Fund's benchmark, the
Barclays Global Aggregate Bond Index (the Barclays Index), returned 2.10%.
During the same period, the average return of the 227 mutual funds in
Lipper's Global Income Funds category was 2.57%, and the average return of
the 398 mutual funds in Morningstar's World Bond Funds category was 2.53%.
Q How would you describe the investment environment for global bonds during
the six-month period ended April 30, 2014?
A The six-month period produced positive performance by many fixed-income
markets, highlighted by stabilization of markets in the U.S., a bounce-back
in performance from emerging markets securities, and surprising strength in
Europe. Rising geopolitical tensions also affected the markets, with
worries about Syria dominating concerns early in the period, and political
and military tensions between the Ukraine and Russia capturing headlines
towards the end of the six months.
+ Effective August 1, 2013, Pioneer Global Aggregate Bond Fund was renamed
Pioneer Global Multi-sector Income Fund. In addition, effective August 1,
2013, the Fund changed its investment objective and certain investment
policies and strategies, and Kenneth Taubes, Andrew Feltus, and Paresh
Upadhyaya joined Charles Melchreit as portfolio managers of the Fund.
Please see the prospectus for more information.
4 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
In the United States, the economy continued to grow at modest rates,
supporting the performance of credit-linked debt in particular, including
high-yield and investment-grade corporate bonds. U.S. Treasury interest
rates stabilized over the six months following a period of high volatility
during which market rates fluctuated sharply in reaction to the expectation
that the Federal Reserve ("Fed") would start withdrawing some of its
monetary stimulus from the economy by beginning to taper its quantitative
easing (QE) bond-buying program.
Emerging markets in general performed well during the six-month period
after being hit hard in the spring and early summer of 2013, when investors
withdrew money because of worries that higher interest rates in the United
States would lead to reductions in the flow of capital to developing
nations. That development had led to sharp declines in asset prices and
currency values, especially in those economies with the largest current
account deficits, such as Turkey, South Africa, Brazil, India and
Indonesia. In the aftermath, even as Treasury rates in the United States
stabilized, many major emerging nations, including Indonesia, India and
Brazil, adjusted their fiscal and monetary policies, resulting in
impressive recoveries in their markets. Investors grew more confident that
economic fundamentals in the emerging markets had improved and that current
account deficits could be financed. Meanwhile, new geopolitical tensions
arose, highlighted by the emergence of nationalist, anti-Russian protests
in the Ukraine that led the country's pro-Russian President to flee the
country. In response, Russia took control of the strategically important
Crimean region, which was part of the Ukraine.
Elsewhere, economic growth in China continued to slow as the country's
leadership tightened monetary policy and began the process of moving the
nation to a more consumer-oriented economy. The move resulted in sharp
reductions in credit growth, which in turn reduced demand for materials
such as copper, iron and coal.
The European economy emerged from recession during the six-month period.
The peripheral southern European nations performed particularly well as the
euro currency gained in relative value amid renewed investor buying of
peripheral market bonds.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 5
Finally, progress in Japan slowed as investors awaited evidence that the
Japanese government would follow through on expectations of major
structural economic reforms.
Q How did the Fund's positioning influence performance relative to the
Barclays Index during the six-month period ended April 30, 2014?
A The Fund slightly underperformed the Barclays Index during the period. The
portfolio's overall currency positioning detracted from the Fund's relative
performance, mainly due to underweighted exposures to the euro and the
British pound, which rallied as the European economy emerged from
recession, and to bonds issued by peripheral European nations such as
Greece and Portugal, which attracted more demand during the period. The
portfolio's overweighted position in the Russian ruble also held back the
Fund's performance.
The Fund's overall duration positioning held back benchmark-relative
results during the period, primarily because of the portfolio's short-
duration stance in Europe, where interest rates declined, and because of
longer-duration positioning in Russia and the Philippines, where interest
rates backed up. (Duration is intended to be a measure of a portfolio's
price sensitivity to changes in interest rates.) On the positive side, the
portfolio's shorter-duration position in the United States helped
performance as interest rates rose, and longer-duration stances in both
Mexico and Norway also helped performance as interest rates in both
countries declined.
Good sector allocation and security selection decisions aided the Fund's
performance during the period. Sector allocations were particularly
beneficial for relative performance, especially the portfolio's emphasis on
the credit sectors, where the Fund experienced solid performance from
investments in corporate bonds, with issues in the financials and
industrials sectors outperforming. Good security selection within the
Fund's corporate bond allocation also added to performance. In addition,
overweights to commercial mortgages and asset-backed securities and a
de-emphasizing of government agency debt boosted the Fund's results, as did
modest portfolio exposure to municipal bonds.
Further supporting the Fund's performance during the period were the
portfolio's underweighted positions in the currencies of Canada, the Czech
Republic and Chile, and overweighted positions in the currencies of Poland
6 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
and Romania. The Fund's overall currency positioning during the period was
based on our confidence in the U.S. dollar, which we thought would
strengthen because of our more positive growth outlook for the U.S. economy
(a strengthening economy would likely drive interest rates
higher)--especially compared with the outlooks (both for growth and
interest rates) for other major economies. At the end of the period, we
remained bullish about the prospects for the U.S. dollar.
At the end of the period, on April 30, 2014, U.S. corporate debt, both
investment-grade (18% of net assets) and high-yield (7% of net assets),
represented the Fund's largest sector allocation, followed by emerging
markets bonds, which accounted for nearly 20% of net assets. International
investment-grade bonds were another large allocation as of period end,
representing nearly 18% of the Fund's net assets.
Q Did you use any derivative investments when managing the Fund during the
six-month period ended April 30, 2014?
A Yes, the Fund used some currency forward contracts to hedge the risks in
the portfolio arising from volatility in the relative values of different
currencies. The use of these contracts had a modestly positive influence on
the Fund's results during the six-month period.
Q What is your investment outlook?
A We retain a positive view on the economic growth outlook in general and
especially for the United States, where we think the economy should
continue to expand at a moderate pace and inflationary pressures should
remain somewhat muted. The Fed is likely to wind down its QE program by the
end of this calendar year; however, the European Central Bank and the Bank
of Japan seem more likely to move to ease their region's monetary policies
further and to push interest rates lower.
Going forward, we believe the U.S. economy is likely to generate a growth
rate that is above long-term averages, and that other developed markets
also should see their economies strengthen. Economies in the emerging
markets also should improve, but growth rates are more likely to be lower
than potential gross domestic product. China's economy, in particular, may
continue to slow, which will have effects on some other emerging markets
that are dependent on exports of materials to China. In addition,
geopolitical risks remain, and it always is possible that new or heightened
tensions could arise in areas that had been considered quiet.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 7
The overall positive outlook for global economic growth should continue to
support healthy corporate earnings, and we remain positive about the
prospects for the performance of credit-sensitive securities, especially
corporate bonds. In addition, we think the U.S. dollar is likely to be
supported by relatively stronger macroeconomic fundamentals and the Fed's
reduced monetary accommodation.
Please refer to the Schedule of Investments on pages 17-39 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.
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 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 securities issued by U.S. Government-sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
Floating rate loans and similar instruments may be illiquid or less liquid than
other instruments, and the value of any collateral can decline or be
insufficient to meet the issuer's obligations.
The value of municipal securities can be adversely affected by changes in
financial condition of municipal issuers, lower revenues, and regulatory and
political developments.
The Fund is subject to currency risk, meaning that the Fund could experience
losses based on changes in the exchange rate between non-U.S. currencies and the
U.S. dollar.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
8 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
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 Multisector Income Fund | Semiannual Report | 4/30/14 9
Portfolio Summary | 4/30/14
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Corporate Bonds 27.3%
Foreign Government Bonds 24.6%
Collateralized Mortgage Obligations 12.8%
International Corporate Bonds 11.9%
U.S. Government Securities 11.1%
Asset Backed Securities 3.7%
U.S. Preferred Stocks 2.7%
Municipal Bonds 2.5%
Convertible Corporate Bonds 1.7%
Convertible Preferred Stocks 0.7%
Senior Secured Loans 0.7%
International Preferred Stocks 0.3%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. Freddie Mac Gold Pool, 4.0%, 7/15/43 2.41%
--------------------------------------------------------------------------------
2. Mexican Udibonos, 3.5%, 12/14/17 1.76
--------------------------------------------------------------------------------
3. Poland Government Bond, 5.25%, 10/25/17 1.63
--------------------------------------------------------------------------------
4. Poland Government Bond, 5.5%, 4/25/15 1.57
--------------------------------------------------------------------------------
5. Federal Home Loan Mortgage Corp., 4.0%, 1/1/44 1.35
--------------------------------------------------------------------------------
6. Norway Government Bond, 2.0%, 5/24/23 1.32
--------------------------------------------------------------------------------
7. Norway Government Bond, 4.5%, 5/22/19 1.29
--------------------------------------------------------------------------------
8. Mexican Udibonos, 2.0%, 6/9/22 1.20
--------------------------------------------------------------------------------
9. Fannie Mae, 3.5%, 5/12/14 1.17
--------------------------------------------------------------------------------
10. Romania Government Bond, 5.85%, 4/26/23 1.17
--------------------------------------------------------------------------------
* 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 Global Multisector Income Fund | Semiannual Report | 4/30/14
Prices and Distributions | 4/30/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 4/30/14 10/31/13
--------------------------------------------------------------------------------
A $10.94 $10.98
--------------------------------------------------------------------------------
C $10.98 $11.01
--------------------------------------------------------------------------------
Y $11.04 $11.07
--------------------------------------------------------------------------------
Distributions per Share: 11/1/13-4/30/14
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.1810 $-- $0.0621
--------------------------------------------------------------------------------
C $0.1326 $-- $0.0621
--------------------------------------------------------------------------------
Y $0.1962 $-- $0.0621
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Barclays Global Aggregate Bond Index is an unmanaged index that provides a
broad-based measure of the global investment-grade fixed-income markets. Index
returns are calculated monthly, assume reinvestment of dividends and, unlike
Fund returns, do not reflect any fees, expenses or sales charges. It is not
possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 12-14.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 11
Performance Update | 4/30/14 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 Multisector Income Fund at
public offering price during the periods shown, compared to that of the Barclays
Global Aggregate Bond Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
Barclays
Net Public Global
Asset Offering Aggregate
Value Price Bond
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
Life-of-Class
(12/27/07) 5.11% 4.35% 4.57%
5 Years 6.41 5.45 5.15
1 Year -0.89 -5.35 1.62
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.05% 1.00%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Barclays Global
Multisector Income Fund Aggregate Bond Index
12/31/2007 $ 9,550 $ 10,000
4/30/2008 $ 9,982 $ 10,460
4/30/2009 $ 9,646 $ 10,229
4/30/2010 $ 11,020 $ 11,176
4/30/2011 $ 12,140 $ 12,345
4/30/2012 $ 12,509 $ 12,752
4/30/2013 $ 13,281 $ 12,937
4/30/2014 $ 13,162 $ 13,147
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 March 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 Global Multisector Income Fund | Semiannual Report | 4/30/14
Performance Update | 4/30/14 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 Multisector Income Fund
during the periods shown, compared to that of the Barclays Global Aggregate Bond
Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
Barclays
Global
Aggregate
If If Bond
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life-of-Class
(12/27/07) 4.25% 4.25% 4.57%
5 Years 5.58 5.58 5.15
1 Year -1.60 -1.60 1.62
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.75% 1.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Barclays Global
Multisector Income Fund Aggregate Bond Index
12/31/2007 $ 10,000 $ 10,000
4/30/2008 $ 10,429 $ 10,460
4/30/2009 $ 9,976 $ 10,229
4/30/2010 $ 11,309 $ 11,176
4/30/2011 $ 12,370 $ 12,345
4/30/2012 $ 12,640 $ 12,752
4/30/2013 $ 13,301 $ 12,937
4/30/2014 $ 13,088 $ 13,147
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 March 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 Global Multisector Income Fund | Semiannual Report | 4/30/14 13
Performance Update | 4/30/14 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 Multisector Income Fund
during the periods shown, compared to that of the Barclays Global Aggregate Bond
Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
Barclays
Global
Aggregate
If If Bond
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life-of-Class
(12/27/07) 5.35% 5.35% 4.57%
5 Years 6.71 6.71 5.15
1 Year -0.53 -0.53 1.62
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.57% 0.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global Barclays Global
Multisector Income Fund Aggregate Bond Index
12/31/2007 $ 5,000,000 $ 5,000,000
4/30/2008 $ 5,227,750 $ 5,229,772
4/30/2009 $ 5,054,129 $ 5,114,537
4/30/2010 $ 5,790,645 $ 5,588,203
4/30/2011 $ 6,382,956 $ 6,172,351
4/30/2012 $ 6,610,228 $ 6,375,830
4/30/2013 $ 7,031,849 $ 6,468,690
4/30/2014 $ 6,994,963 $ 6,573,437
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 March 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 Global Multisector Income Fund | Semiannual Report | 4/30/14
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 Global Multisector Income Fund
Based on actual returns from November 1, 2013 through April 30, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 11/1/13 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 4/30/14 $1,018.90 $1,015.30 $1,021.10
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.01 $ 9.49 $ 3.76
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.00%,
1.90%, and 0.75% for Class A, Class C, and Class Y respectively, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the partial year period).
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 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 Global Multisector Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from November 1, 2013 through April 30, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 11/1/13 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 4/30/14 $1,019.84 $1,015.37 $1,021.08
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.01 $ 9.49 $ 3.76
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.00%,
1.90%, and 0.75% for Class A, Class C, and Class Y respectively, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the partial year period).
16 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
Schedule of Investments | 4/30/14 (unaudited)
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE
BONDS -- 1.7%
CAPITAL GOODS -- 0.2%
Electrical Components &
Equipment -- 0.2%
56,000 B/B3 General Cable Corp., 4.5%,
11/15/29 (Step) $ 56,070
--------------
Total Capital Goods $ 56,070
-----------------------------------------------------------------------------------------------------------
CONSUMER DURABLES &
APPAREL -- 0.2%
Homebuilding -- 0.2%
50,000 B/B2 KB Home, Inc., 1.375%, 2/1/19 $ 49,250
--------------
Total Consumer Durables & Apparel $ 49,250
-----------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT &
SERVICES -- 0.4%
Health Care Equipment -- 0.4%
75,000 B+/NR Hologic, Inc., 2.0%, 12/15/37 (Step) $ 84,422
--------------
Total Health Care Equipment
& Services $ 84,422
-----------------------------------------------------------------------------------------------------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT -- 0.9%
Semiconductor Equipment -- 0.4%
75,000 BBB/Baa1 Lam Research Corp., 1.25%, 5/15/18 $ 95,672
-----------------------------------------------------------------------------------------------------------
Semiconductors -- 0.5%
85,000 A-/NR Intel Corp., 2.95%, 12/15/35 $ 100,938
--------------
Total Semiconductors &
Semiconductor Equipment $ 196,610
-----------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE
CORPORATE BONDS
(Cost $342,689) $ 386,352
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 2.9%
BANKS -- 0.7%
Diversified Banks -- 0.5%
4,350 6.00 A-/Baa1 US Bancorp, Floating Rate Note (Perpetual) $ 120,495
-----------------------------------------------------------------------------------------------------------
Regional Banks -- 0.2%
500 6.25 A-/NR CoBank ACB, Floating Rate Note
(Perpetual) (144A) $ 51,359
--------------
Total Banks $ 171,854
-----------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.4%
Other Diversified Financial
Services -- 1.3%
6,527 7.88 BB+/Ba2 Citigroup Capital XIII, Floating Rate
Note, 10/30/40 $ 177,926
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 17
Schedule of Investments | 4/30/14 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------------
Other Diversified Financial
Services -- (continued)
3,000 7.12 BB+/B1 Citigroup, Inc., Floating Rate
Note (Perpetual) $ 81,450
850 8.12 B/B3 GMAC Capital Trust I, Floating Rate
Note, 2/15/40 23,366
--------------
$ 282,742
-----------------------------------------------------------------------------------------------------------
Asset Management & Custody
Banks -- 0.1%
1,000 5.90 BBB+/Baa2 State Street Corp., Floating Rate
Note, 12/31/73 $ 25,960
--------------
Total Diversified Financials $ 308,702
-----------------------------------------------------------------------------------------------------------
INSURANCE -- 0.8%
Property & Casualty Insurance -- 0.2%
2,225 5.10 BBB/Baa1 The Allstate Corp., Floating Rate
Note, 1/15/53 $ 55,892
-----------------------------------------------------------------------------------------------------------
Reinsurance -- 0.6%
16,836 0.00 NR/NR Altair Re, Floating Rate Note, 4/30/16
(Cat Bond) $ 20,304
50,000 0.00 NR/NR Altair Re, Floating Rate Note, 6/30/16
(Cat Bond) 51,165
50,000 NR/NR Pangaea Re, 10/1/15 (Cat Bond) (c) 55,620
--------------
$ 127,089
--------------
Total Insurance $ 182,981
-----------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $617,772) $ 663,537
-----------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED
STOCK -- 0.7%
BANKS -- 0.7%
Diversified Banks -- 0.7%
130 BBB+/Baa3 Wells Fargo & Co., 7.5% (Perpetual) $ 155,283
-----------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE
PREFERRED STOCK
(Cost $136,282) $ 155,283
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings
-----------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 3.6%
FOOD & STAPLES RETAILING -- 0.3%
Food Retail -- 0.3%
49,250 BBB-/NR CKE Restaurant Holdings, Inc., 4.474%,
3/20/43 (144A) $ 50,056
--------------
Total Food & Staples Retailing $ 50,056
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
BANKS -- 2.5%
Thrifts & Mortgage Finance -- 2.5%
7,836 NR/A1 BCMSC Trust 1998-A, 6.65%, 4/15/28 $ 7,927
77,488 NR/Ba3 Bear Stearns Asset Backed Securities
Trust, 8.41%, 10/25/29 (Step) 78,485
44,804 BB/B2 Citicorp Residential Mortgage Trust
Series 2006-1, 5.836%, 7/25/36 (Step) 44,637
42,144 B-/B1 Citicorp Residential Mortgage Trust Series
2006-3, 5.703%, 11/25/36 (Step) 42,040
6,420 0.52 AA+/A1 Countrywide Asset-Backed Certificates,
Floating Rate Note, 1/25/36 6,310
17,404 4.46 BB+/Ba1 Countrywide Asset-Backed Certificates,
Floating Rate Note, 10/25/35 17,443
24,280 5.07 BB+/Ba2 Countrywide Asset-Backed Certificates,
Floating Rate Note, 2/25/36 24,768
25,000 A/NR First Investors Auto Owner Trust 2013-1,
2.02%, 1/15/19 (144A) 25,020
25,930 0.55 AA+/Aa2 First NLC Trust 2005-2, Floating Rate
Note, 9/25/35 25,401
11,805 NR/Baa1 Irwin Home Equity Loan Trust 2005-1,
5.32%, 6/25/35 (Step) 11,556
50,000 5.50 BBB/Baa1 Mastr Specialized Loan Trust, Floating
Rate Note, 11/25/34 (144A) 48,493
9,559 0.85 AAA/Aaa New Century Home Equity Loan Trust
2005-1, Floating Rate Note, 3/25/35 9,345
13,412 5.91 AA/A3 Origen Manufactured Housing Contract
Trust 2004-A, Floating Rate Note, 1/15/35 14,228
44,479 AAA/NR SNAAC Auto Receivables Trust, 3.11%,
6/15/17 (144A) 44,702
100,000 A/NR Springleaf Funding Trust 2013-A, 2.58%,
9/15/21 (144A) 100,610
6,226 A+/Baa2 Structured Asset Securities Corp., 4.77%,
10/25/34 (Step) 6,479
60,929 AA/A2 Terwin Mortgage Trust Series TMTS
2005-16HE, 4.6175%, 9/25/36 (Step) 63,588
--------------
$ 571,032
--------------
Total Banks $ 571,032
-----------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.8%
Other Diversified Financial
Services -- 0.2%
50,000 A/Aa3 Capital Auto Receivables Asset Trust/Ally,
1.74%, 10/22/18 $ 50,061
-----------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.5%
96,625 BBB+/Baa1 Domino's Pizza Master Issuer LLC, 5.216%,
1/25/42 (144A) $ 103,829
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 19
Schedule of Investments | 4/30/14 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.1%
30,000 AA/Aaa Santander Drive Auto Receivables Trust
2012-1, 3.78%, 11/15/17 $ 30,899
--------------
Total Diversified Financials $ 184,789
-----------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $787,160) $ 805,877
-----------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 12.3%
BANKS -- 9.4%
Thrifts & Mortgage Finance -- 9.4%
8,676 0.60 CCC/NR Alternative Loan Trust 2003-14T1, Floating
Rate Note, 8/25/18 $ 8,243
5,644 CCC/B2 Alternative Loan Trust 2004-28CB, 5.5%,
1/25/35 5,847
14,514 BB+/Ba2 Alternative Loan Trust 2004-4CB, 4.25%,
4/25/34 14,846
10,767 0.60 NR/A3 Bank of America Alternative Loan Trust
2003-10, Floating Rate Note, 12/25/33 10,783
19,890 A+/Baa2 Bank of America Alternative Loan Trust
2003-2, 5.75%, 4/25/33 20,627
53,221 NR/Baa2 Bank of America Alternative Loan Trust
2003-7, 5.5%, 9/25/33 55,425
19,479 NR/B1 Bank of America Alternative Loan Trust
2004-10, 5.5%, 11/25/19 19,692
14,773 NR/Ba2 Bank of America Alternative Loan Trust
2004-2, 6.0%, 3/25/34 15,285
14,308 NR/Ba3 Bank of America Alternative Loan Trust
2004-6, 5.0%, 7/25/19 14,554
31,700 CCC/NR Bank of America Funding 2005-8 Trust,
5.5%, 1/25/36 31,521
10,270 2.70 AA+/NR Bank of America Mortgage 2004-E Trust,
Floating Rate Note, 6/25/34 10,324
6,355 5.12 BBB+/NR Bank of America Mortgage 2005-H Trust,
Floating Rate Note, 9/25/35 6,336
15,403 A+/NR Bank of America Mortgage Trust 2004-11,
5.75%, 1/25/35 16,232
12,887 A+/NR Bank of America Mortgage Trust 2004-9,
5.5%, 11/25/34 13,626
79,786 NR/Caa2 Bayview Commercial Asset Trust, 3.855%,
9/25/37 (Step) (144A) (d) 5,553
124,606 NR/Caa2 Bayview Commercial Asset Trust, 4.13574%,
7/25/37 (Step) (144A) (d) 735
9,621 2.63 A+/Ba1 CHL Mortgage Pass-Through Trust 2003-56,
Floating Rate Note, 12/25/33 9,630
3,247 NR/B1 Citicorp Mortgage Securities Trust Series
2006-1, 5.0%, 2/25/36 3,423
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
Thrifts & Mortgage
Finance -- (continued)
26,686 0.32 AA/Aaa Citigroup Commercial Mortgage Trust
2007-FL3, Floating Rate Note,
4/15/22 (144A) $ 26,470
25,483 NR/Baa1 Citigroup Mortgage Loan Trust, Inc., 6.75%,
8/25/34 27,406
100,000 4.65 AA-/A3 City Center Trust 2011-CCHP, Floating
Rate Note, 7/15/28 (144A) 100,028
100,000 NR/Aaa COMM 2012-LC4 Mortgage Trust,
4.063%, 12/10/44 104,053
50,000 AAA/Aaa COMM 2013-LC6 Mortgage Trust,
2.941%, 1/10/46 48,485
38,402 NR/Baa1 Credit Suisse Commercial Mortgage Trust
Series 2007-C1, 5.361%, 2/15/40 41,001
3,160 1.50 AA+/A3 Credit Suisse First Boston Mortgage
Securities Corp., Floating Rate Note,
12/25/33 3,161
100,000 5.58 NR/Aa2 DBUBS 2011-LC3 Mortgage Trust,
Floating Rate Note, 8/10/44 (144A) 111,890
50,000 NR/Aaa GS Mortgage Securities Corp. II,
3.377%, 5/10/45 50,842
25,000 AA-/NR GS Mortgage Securities Corp. II,
3.682%, 2/10/46 (144A) 24,768
50,000 NR/Aaa GS Mortgage Securities Corp. II,
5.56%, 11/10/39 54,438
100,000 1.90 NR/A3 GS Mortgage Securities Corp. II, Floating
Rate Note, 11/8/29 (144A) 101,169
67,596 2.30 A+/NR GSR Mortgage Loan Trust 2003-9, Floating
Rate Note, 8/25/33 67,720
100,000 2.52 A/A2 JPMorgan Chase Commercial Mortgage
Securities Corp., Floating Rate Note,
10/15/25 (144A) 100,276
41,833 0.51 NR/Ba1 JPMorgan Chase Commercial Mortgage
Securities Trust 2006-FL2, Floating Rate
Note, 11/15/18 (144A) 40,369
35,000 NR/Aaa JPMorgan Chase Commercial Mortgage
Securities Trust 2011-C5, 4.1712%,
8/15/46 37,571
13,229 2.49 AA+/Baa1 JPMorgan Mortgage Trust 2004-A1,
Floating Rate Note, 2/25/34 13,569
117,981 2.59 A+/NR JPMorgan Mortgage Trust 2004-A2,
Floating Rate Note, 5/25/34 118,570
18,327 B+/Baa3 JPMorgan Mortgage Trust 2004-S1,
5.0%, 9/25/34 19,112
16,109 B-/Ba2 JPMorgan Mortgage Trust 2004-S1,
6.0%, 9/25/34 16,966
5,765 BB+/NR MASTR Alternative Loan Trust 2004-10,
5.5%, 10/25/19 5,910
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 21
Schedule of Investments | 4/30/14 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
Thrifts & Mortgage
Finance -- (continued)
688 AAA/NR MASTR Alternative Loan Trust 2004-13,
4.5%, 1/25/15 $ 687
40,702 B-/NR MASTR Alternative Loan Trust 2004-6,
6.0%, 7/25/34 42,343
15,139 A+/NR MASTR Alternative Loan Trust 2005-1,
5.5%, 2/25/35 15,375
46,806 6.63 A-/NR MASTR Seasoned Securitization Trust
2005-1, Floating Rate Note, 9/25/32 48,957
16,930 0.61 A+/Baa1 Merrill Lynch Mortgage Investors Trust
Series MLCC 2004-A, Floating Rate
Note, 4/25/29 16,101
75,000 5.48 NR/Ba2 ML-CFC Commercial Mortgage Trust
2006-3, Floating Rate Note, 7/12/46 76,758
GBP 66,836 0.92 AA+/NR Paragon Secured Finance Plc, Floating
Rate Note, 11/15/35 111,220
41,713 BB+/Caa1 RAAC Series 2004-SP2 Trust, 6.0%,
1/25/32 42,511
15,682 0.70 NR/Baa3 RALI Series 2002-QS16 Trust, Floating
Rate Note, 10/25/17 14,955
20,088 BBB+/Baa2 RALI Series 2004-QS1 Trust, 4.25%,
1/25/34 20,211
4,096 0.70 BBB+/Baa2 RALI Series 2004-QS1 Trust, Floating
Rate Note, 1/25/34 4,090
26,506 NR/B1 RALI Series 2004-QS13 Trust, 5.0%,
9/25/19 27,149
7,620 NR/B3 RALI Series 2004-QS16 Trust, 5.5%,
12/25/34 7,765
23,757 1.55 B-/Ba3 RESI Finance LP, Floating Rate Note,
9/10/35 (144A) 20,681
6,806 B-/NR Residential Asset Securitization Trust
2004-A10, 5.5%, 2/25/35 6,938
21,263 B/NR Residential Asset Securitization Trust
2004-A9, 5.75%, 12/25/34 22,024
15,296 CCC/NR Residential Asset Securitization Trust
2005-A9, 5.5%, 7/25/35 15,209
33,996 CCC/NR RFMSI Series 2005-S6 Trust, 5.25%,
8/25/35 34,330
EURO 24,987 0.75 AAA/A1 RHG Mortgage Securities Pty, Ltd.,
Floating Rate Note, 7/21/35 34,575
AUD 19,989 3.47 AAA/A1 RHG Mortgage Securities Pty, Ltd.,
Floating Rate Note, 7/21/35 18,422
23,350 0.37 BBB+/Ba1 Sequoia Mortgage Trust 2005-2,
Floating Rate Note, 3/20/35 20,637
37,610 2.67 A+/Baa3 Structured Asset Securities Corp.
Mortgage Certificates Series 2003-31A,
Floating Rate Note, 10/25/33 37,890
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
Thrifts & Mortgage
Finance -- (continued)
50,000 AAA/Aa1 TimberStar Trust 1, 5.668%,
10/15/36 (144A) $ 54,164
53,875 2.40 BBB+/NR WaMu Mortgage Pass-Through Certificates,
Floating Rate Note, 1/25/35 54,160
20,078 5.24 BB/B3 Wells Fargo Mortgage Backed Securities
2005-AR13 Trust, Floating Rate Note,
5/25/35 20,533
6,690 AA+/Baa1 Wells Fargo Mortgage Backed Securities
2006-16 Trust, 5.0%, 11/25/36 6,954
--------------
$ 2,151,095
--------------
Total Banks $ 2,151,095
-----------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.6%
Specialized Finance -- 0.6%
EURO 100,000 1.58 AAA/Aaa Permanent Master Issuer Plc, Floating
Rate Note, 7/15/42 $ 140,064
--------------
Total Diversified Financials $ 140,064
-----------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.2%
Wireless Telecommunication
Services -- 0.2%
30,000 NR/A2 Crown Castle Towers LLC, 4.883%,
8/15/20 (144A) $ 33,264
--------------
Total Telecommunication Services $ 33,264
-----------------------------------------------------------------------------------------------------------
GOVERNMENT -- 2.1%
6,550 AA+/Aaa Federal Home Loan Mortgage Corp.,
REMICS, 5.0%, 6/15/34 $ 6,634
100,000 4.30 NR/Baa2 Federal Home Loan Mortgage Corp.,
Floating Rate Note, 9/25/44 (144A) 101,404
18,906 AA+/Aaa Federal National Mortgage Association
REMICS, 4.5%, 6/25/29 20,469
18,347 AA+/Aaa Federal National Mortgage Association
REMICS, 6.0%, 3/25/35 18,812
45,000 5.36 AA+/Aaa FREMF Mortgage Trust 2010-K9 REMICS,
Floating Rate Note, 9/25/45 (144A) 49,456
25,000 4.50 NR/A3 FREMF Mortgage Trust 2011-K12,
Floating Rate Note, 1/25/46 (144A) 26,215
25,000 4.94 NR/A3 FREMF Mortgage Trust 2011-K702,
Floating Rate Note, 4/25/44 (144A) 26,913
50,000 5.05 AA+/A3 FREMF Mortgage Trust 2011-K703,
Floating Rate Note, 7/25/44 (144A) 54,029
25,000 4.44 A-/Aaa FREMF Mortgage Trust Class B, Floating
Rate Note, 7/25/48 (144A) 26,432
50,000 AA+/Aaa Government National Mortgage
Association, 4.5%, 9/20/39 53,399
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 23
Schedule of Investments | 4/30/14 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
Government -- (continued)
15,746 AA+/Aaa Government National Mortgage
Association, 5.25%, 8/16/35 $ 17,583
242,074 1.03 AA+/Aaa Government National Mortgage
Association, Floating Rate Note,
2/16/53 (d) 19,146
287,272 1.08 AA+/Aaa Government National Mortgage
Association, Floating Rate Note,
8/16/52 (d) 19,678
337,368 1.07 AA+/Aaa Government National Mortgage
Association, Floating Rate Note,
9/16/52 (d) 27,567
--------------
$ 467,737
--------------
Total Government $ 467,737
-----------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $2,703,792) $ 2,792,160
-----------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 34.7%
ENERGY -- 4.8%
Oil & Gas Drilling -- 0.6%
25,000 BBB+/Baa1 Pride International, Inc., 6.875%, 8/15/20 $ 30,059
100,000 BBB-/Baa3 Rowan Companies, Inc., 4.75%, 1/15/24 102,386
--------------
$ 132,445
-----------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.3%
25,000 BBB-/Baa2 Weatherford International, Ltd.,
Bermuda, 5.95%, 4/15/42 $ 28,117
25,000 BBB-/Baa2 Weatherford International, Ltd.,
Bermuda, 9.625%, 3/1/19 32,803
--------------
$ 60,920
-----------------------------------------------------------------------------------------------------------
Oil & Gas Exploration &
Production -- 2.0%
50,000 B-/B3 Carrizo Oil & Gas, Inc., 8.625%, 10/15/18 $ 53,500
50,000 B/B2 EP Energy LLC, 9.375%, 5/1/20 57,625
90,000 B+/B1 Linn Energy LLC, 7.0%, 11/1/19 (144A) 93,038
51,000 B+/B1 Linn Energy LLC, 8.625%, 4/15/20 55,016
23,000 BBB/Baa1 Marathon Oil Corp., 5.9%, 3/15/18 26,418
70,000 BBB/Baa3 Plains Exploration & Production Co.,
6.75%, 2/1/22 78,138
100,000 BB/Ba2 Range Resources Corp., 5.0%, 3/15/23 102,000
--------------
$ 465,735
-----------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.2%
25,000 BBB-/Baa2 Spectra Energy Capital LLC, 6.2%, 4/15/18 $ 28,574
21,000 BBB/Baa2 Valero Energy Corp., 9.375%, 3/15/19 27,422
--------------
$ 55,996
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
Oil & Gas Storage &
Transportation -- 1.4%
25,000 BBB-/Baa3 Buckeye Partners LP, 6.05%, 1/15/18 $ 27,850
25,000 BBB-/Baa2 DCP Midstream LLC, 9.75%,
3/15/19 (144A) 31,888
50,000 5.85 BB/Baa3 DCP Midstream LLC, Floating Rate
Note, 5/21/43 (144A) 47,250
70,000 BBB/Baa2 Kinder Morgan Energy Partners LP,
4.15%, 3/1/22 71,843
25,000 BBB/Baa2 Plains All American Pipeline LP,
6.125%, 1/15/17 28,110
10,000 A/A3 Questar Pipeline Co., 5.83%, 2/1/18 11,331
10,000 BBB-/Baa2 Spectra Energy Capital LLC, 6.75%,
7/15/18 11,604
60,000 BBB-/Baa3 Sunoco Logistics Partners Operations
LP, 6.1%, 2/15/42 67,685
13,000 BBB-/Baa3 The Williams Companies, Inc., 7.75%,
6/15/31 15,104
--------------
$ 312,665
-----------------------------------------------------------------------------------------------------------
Coal & Consumable Fuels -- 0.3%
45,000 B-/B3 Alpha Natural Resources, Inc.,
6.0%, 6/1/19 $ 34,200
25,000 BB-/B1 Berau Coal Energy Tbk PT, 7.25%,
3/13/17 (144A) 24,625
--------------
$ 58,825
--------------
Total Energy $ 1,086,586
-----------------------------------------------------------------------------------------------------------
MATERIALS -- 1.9%
Diversified Chemicals -- 0.1%
20,000 BBB/Baa2 Eastman Chemical Co., 4.8%, 9/1/42 $ 20,243
-----------------------------------------------------------------------------------------------------------
Construction Materials -- 0.8%
150,000 B+/NR Cemex SAB de CV, 5.875%,
3/25/19 (144A) $ 154,125
30,000 BBB/Baa2 Holcim US Finance Sarl & Cie SCS,
6.0%, 12/30/19 (144A) 34,226
--------------
$ 188,351
-----------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.3%
35,000 BB+/Baa3 AngloGold Ashanti Holdings Plc,
5.375%, 4/15/20 $ 35,121
35,000 BBB/Baa3 Freeport-McMoRan Copper & Gold,
Inc., 3.875%, 3/15/23 34,069
--------------
$ 69,190
-----------------------------------------------------------------------------------------------------------
Gold -- 0.2%
35,000 BBB+/Baa2 Goldcorp, Inc., 3.7%, 3/15/23 $ 33,595
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 25
Schedule of Investments | 4/30/14 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
Steel -- 0.5%
25,000 BBB/Baa2 Glencore Funding LLC, 4.125%,
5/30/23 (144A) $ 24,257
100,000 NR/Caa2 Metinvest BV, 10.25%, 5/20/15 (144A) 94,520
--------------
$ 118,777
--------------
Total Materials $ 430,156
-----------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 2.0%
Aerospace & Defense -- 0.2%
50,000 BB-/Ba3 Bombardier, Inc., 4.25%, 1/15/16 (144A) $ 51,938
-----------------------------------------------------------------------------------------------------------
Building Products -- 0.8%
25,000 BBB-/Ba3 Masco Corp., 5.95%, 3/15/22 $ 27,250
85,000 BBB-/Ba3 Masco Corp., 7.125%, 3/15/20 98,812
50,000 5.75 BBB+/Baa2 Stanley Black & Decker, Inc., Floating
Rate Note, 12/15/53 54,062
--------------
$ 180,124
-----------------------------------------------------------------------------------------------------------
Electrical Components &
Equipment -- 0.1%
25,000 B-/B3 WireCo WorldGroup, Inc., 9.5%, 5/15/17 $ 25,562
-----------------------------------------------------------------------------------------------------------
Construction & Farm Machinery &
Heavy Trucks -- 0.3%
60,000 A/A3 Cummins, Inc., 5.65%, 3/1/98 $ 66,618
10,000 A/A3 Cummins, Inc., 6.75%, 2/15/27 12,008
--------------
$ 78,626
-----------------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.1%
20,000 BBB/Baa2 Valmont Industries, Inc., 6.625%, 4/20/20 $ 23,534
-----------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.5%
55,000 BB+/NR Aviation Capital Group Corp., 6.75%,
4/6/21 (144A) $ 61,508
40,000 BBB/Baa2 GATX Corp., 6.0%, 2/15/18 45,230
--------------
$ 106,738
--------------
Total Capital Goods $ 466,522
-----------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 2.1%
Airlines -- 1.3%
100,000 A/Baa2 Air Canada 2013-1 Class A Pass
Through Trust, 4.125%, 11/15/26 (144A) $ 100,250
11,614 A/Baa1 Delta Air Lines 2010-2 Class A Pass
Through Trust, 4.95%, 5/23/19 12,630
75,000 BB+/NR United Airlines 2013-1 Class B Pass
Through Trust, 5.375%, 8/15/21 77,438
100,000 A-/Baa1 US Airways 2013-1 Class A Pass Through
Trust, 3.95%, 5/15/27 100,250
--------------
$ 290,568
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
Railroads -- 0.1%
25,000 BBB+/A3 Burlington Northern Santa Fe LLC,
5.75%, 3/15/18 $ 28,536
-----------------------------------------------------------------------------------------------------------
Airport Services -- 0.7%
150,000 B/B2 Aguila 3 SA, 7.875%, 1/31/18 (144A) $ 158,812
--------------
Total Transportation $ 477,916
-----------------------------------------------------------------------------------------------------------
CONSUMER DURABLES &
APPAREL -- 0.1%
Home Furnishings -- 0.1%
25,000 BBB/Baa3 Mohawk Industries, Inc., 3.85%, 2/1/23 $ 24,812
--------------
Total Consumer Durables & Apparel $ 24,812
-----------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.8%
Casinos & Gaming -- 0.4%
50,000 BBB-/Ba1 GLP Capital LP, 4.375%, 11/1/18 (144A) $ 51,750
25,000 BBB/Baa2 International Game Technology, Ltd.,
7.5%, 6/15/19 29,500
--------------
$ 81,250
-----------------------------------------------------------------------------------------------------------
Education Services -- 0.4%
25,000 NR/Aa2 Bowdoin College, 4.693%, 7/1/12 $ 23,154
75,000 AA-/Aa2 Tufts University, 5.017%, 4/15/12 75,241
--------------
$ 98,395
--------------
Total Consumer Services $ 179,645
-----------------------------------------------------------------------------------------------------------
MEDIA -- 0.2%
Cable & Satellite -- 0.2%
25,000 BBB+/Baa1 British Sky Broadcasting Group Plc,
6.1%, 2/15/18 (144A) $ 28,583
10,000 BBB/Baa2 Time Warner Cable, Inc., 8.25%, 4/1/19 12,665
--------------
$ 41,248
--------------
Total Media $ 41,248
-----------------------------------------------------------------------------------------------------------
RETAILING -- 0.2%
Internet Retail -- 0.2%
50,000 BBB-/Ba1 Expedia, Inc., 5.95%, 8/15/20 $ 55,448
--------------
Total Retailing $ 55,448
-----------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.1%
Drug Retail -- 0.1%
13,789 BBB+/Baa1 CVS Pass-Through Trust, 5.773%,
1/10/33 (144A) $ 15,128
--------------
Total Food & Staples Retailing $ 15,128
-----------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.9%
Brewers -- 0.1%
20,000 A/A2 Anheuser-Busch InBev Worldwide, Inc.,
7.75%, 1/15/19 $ 24,822
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 27
Schedule of Investments | 4/30/14 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
Agricultural Products -- 0.3%
50,000 BBB/Baa2 Viterra, Inc., 5.95%, 8/1/20 (144A) $ 55,828
-----------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 1.4%
50,000 BB-/B1 B&G Foods, Inc., 4.625%, 6/1/21 $ 49,750
70,000 BBB/Baa2 Kraft Foods Group, Inc., 3.5%, 6/6/22 71,146
32,000 BBB-/Baa1 Mondelez International, Inc., 6.5%, 2/9/40 40,772
150,000 B/B1 Post Holdings, Inc., 7.375%, 2/15/22 160,500
--------------
$ 322,168
-----------------------------------------------------------------------------------------------------------
Tobacco -- 0.1%
20,000 BBB-/Baa2 Lorillard Tobacco Co., 3.75%, 5/20/23 $ 19,230
--------------
Total Food, Beverage & Tobacco $ 422,048
-----------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT &
SERVICES -- 0.3%
Health Care Technology -- 0.3%
75,000 B/B3 MedAssets, Inc., 8.0%, 11/15/18 $ 79,688
--------------
Total Health Care Equipment
& Services $ 79,688
-----------------------------------------------------------------------------------------------------------
BANKS -- 3.9%
Diversified Banks -- 2.8%
NOK 250,000 AAA/Aaa Asian Development Bank, 3.375%,
5/20/14 $ 42,101
EURO 50,000 NR/Aaa AXA Bank Europe SCF, 3.5%, 11/5/20 78,349
AUD 100,000 AA-/Aa2 Cooperatieve Centrale
Raiffeisen-Boerenleenbank BA Australia,
6.0%, 10/29/15 96,236
75,000 AA-/Aa2 Cooperatieve Centrale
Raiffeisen-Boerenleenbank BA
Netherlands, 3.875%, 2/8/22 78,463
AUD 185,000 AAA/Aaa International Bank for Reconstruction
& Development, 5.75%, 10/21/19 187,615
100,000 BBB/Baa2 Intesa Sanpaolo S.p.A., 6.5%,
2/24/21 (144A) 115,412
50,000 4.50 NR/Baa3 Scotiabank Peru SA, Floating Rate
Note, 12/13/27 (144A) 47,000
--------------
$ 645,176
-----------------------------------------------------------------------------------------------------------
Regional Banks -- 0.9%
65,000 4.45 BBB/Baa3 The PNC Financial Services Group, Inc.,
Floating Rate Note (Perpetual) $ 65,000
115,000 6.75 BBB/Baa3 The PNC Financial Services Group, Inc.,
Floating Rate Note (Perpetual) 126,788
--------------
$ 191,788
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.2%
50,000 BBB-/Baa2 Astoria Financial Corp., 5.0%, 6/19/17 $ 53,813
--------------
Total Banks $ 890,777
-----------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.4%
Other Diversified Financial
Services -- 2.5%
25,000 A-/NR Carlyle Holdings II Finance LLC, 5.625%,
3/30/43 (144A) $ 27,089
90,000 BBB/Baa3 EnLink Midstream Partners LP, 4.4%,
4/1/24 92,657
100,000 7.12 AA-/Baa1 General Electric Capital Corp., Floating
Rate Note (Perpetual) 115,000
NZD 100,000 A/A3 JPMorgan Chase & Co., 4.25%, 11/2/18 82,741
25,000 A/A3 JPMorgan Chase & Co., 6.0%, 1/15/18 28,658
125,000 5.15 BBB/Ba1 JPMorgan Chase & Co., Floating Rate
Note (Perpetual) 118,281
100,000 A/NR KKR Group Finance Co. II LLC, 5.5%,
2/1/43 (144A) 107,819
--------------
$ 572,245
-----------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.3%
56,000 BBB-/NR Cantor Fitzgerald LP, 7.875%,
10/15/19 (144A) $ 59,220
-----------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.3%
INR 3,800,000 NR/NR International Finance Corp., 8.25%,
6/10/21 $ 64,137
-----------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 1.3%
10,000 BBB/A3 Macquarie Group, Ltd., 6.0%,
1/14/20 (144A) $ 11,198
100,000 BBB+/Baa3 Merrill Lynch & Co., Inc., 7.75%, 5/14/38 134,400
75,000 BBB+/Baa3 Morgan Stanley Co., 4.1%, 5/22/23 74,507
50,000 BBB+/Baa3 Morgan Stanley Co., 4.875%, 11/1/22 52,763
25,000 BBB/Baa2 Raymond James Financial, Inc.,
4.25%, 4/15/16 26,507
--------------
$ 299,375
--------------
Total Diversified Financials $ 994,977
-----------------------------------------------------------------------------------------------------------
INSURANCE -- 3.3%
Life & Health Insurance -- 1.1%
35,000 BBB+/NR Delphi Financial Group, Inc.,
7.875%, 1/31/20 $ 41,238
35,000 BBB/Baa2 MetLife, Inc., 10.75%, 8/1/69 53,550
45,000 A-/Baa2 Protective Life Corp., 7.375%, 10/15/19 54,996
100,000 5.88 BBB+/Baa2 Prudential Financial, Inc., Floating
Rate Note, 9/15/42 105,250
--------------
$ 255,034
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 29
Schedule of Investments | 4/30/14 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
Multi-line Insurance -- 0.3%
60,000 BBB/A3 AXA SA, 8.6%, 12/15/30 $ 77,700
-----------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.9%
20,000 BBB-/Baa2 OneBeacon US Holdings, Inc., 4.6%,
11/9/22 $ 20,115
110,000 6.50 BBB/Baa1 The Allstate Corp., Floating Rate
Note, 5/15/57 118,525
50,000 BBB-/Baa3 The Hanover Insurance Group, Inc.,
7.5%, 3/1/20 59,490
--------------
$ 198,130
-----------------------------------------------------------------------------------------------------------
Reinsurance -- 1.0%
50,000 BBB/NR Montpelier Re Holdings, Ltd., 4.7%,
10/15/22 $ 50,985
40,000 BBB/NR Platinum Underwriters Finance, Inc.,
7.5%, 6/1/17 44,852
95,000 7.51 BB+/Ba2 Sirius International Group, Ltd., Floating
Rate Note (Perpetual) (144A) 100,076
25,000 5.88 NR/NR Wilton Re Finance LLC, Floating Rate
Note, 3/30/33 (144A) 25,500
--------------
$ 221,413
--------------
Total Insurance $ 752,277
-----------------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.7%
Diversified REIT -- 0.1%
20,000 BBB/Baa2 Digital Realty Trust LP, 4.5%, 7/15/15 $ 20,672
-----------------------------------------------------------------------------------------------------------
Office REIT -- 0.9%
40,000 BBB-/Baa2 Alexandria Real Estate Equities, Inc.,
4.6%, 4/1/22 $ 41,844
25,000 BBB-/Baa3 Corporate Office Properties LP, 3.6%,
5/15/23 23,706
50,000 BB/Ba1 DuPont Fabros Technology LP, 5.875%,
9/15/21 52,125
35,000 BBB/Baa2 Highwoods Realty LP, 3.625%, 1/15/23 33,774
50,000 BBB/Baa2 Piedmont Operating Partnership LP,
3.4%, 6/1/23 46,620
--------------
$ 198,069
-----------------------------------------------------------------------------------------------------------
Retail REIT -- 0.2%
35,000 BBB-/Baa2 DDR Corp., 7.5%, 4/1/17 $ 40,392
-----------------------------------------------------------------------------------------------------------
Specialized REIT -- 0.5%
25,000 BBB-/Baa3 Healthcare Realty Trust, Inc., 6.5%,
1/17/17 $ 28,150
40,000 BBB-/Baa2 Hospitality Properties Trust, 5.0%,
8/15/22 42,054
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
Specialized REIT -- (continued)
45,000 BBB-/Baa3 Senior Housing Properties Trust,
6.75%, 4/15/20 $ 51,877
--------------
$ 122,081
--------------
Total Real Estate $ 381,214
-----------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.0%
Internet Software & Services -- 0.5%
100,000 BB-/B2 Bankrate, Inc., 6.125%, 8/15/18 (144A) $ 106,250
-----------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.1%
25,000 BB-/B3 Entegris, Inc., 6.0%, 4/1/22 (144A) $ 25,312
-----------------------------------------------------------------------------------------------------------
Data Processing & Outsourced
Services -- 0.2%
50,000 BB-/Ba2 Audatex North America, Inc., 6.0%,
6/15/21 (144A) $ 53,625
-----------------------------------------------------------------------------------------------------------
Home Entertainment Software -- 0.2%
50,000 BB+/Ba2 Activision Blizzard, Inc., 6.125%,
9/15/23 (144A) $ 54,375
--------------
Total Software & Services $ 239,562
-----------------------------------------------------------------------------------------------------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT -- 0.1%
Semiconductor Equipment -- 0.1%
25,000 BBB+/Baa1 KLA-Tencor Corp., 6.9%, 5/1/18 $ 29,327
--------------
Total Semiconductors &
Semiconductor Equipment $ 29,327
-----------------------------------------------------------------------------------------------------------
TELECOMMUNICATION
SERVICES -- 2.9%
Integrated Telecommunication
Services -- 2.0%
COP 124,000,000 NR/Ba1 Empresa de Telecomunicaciones
de Bogota, 7.0%, 1/17/23 (144A) $ 59,335
30,000 BB-/Ba2 Frontier Communications Corp.,
8.5%, 4/15/20 34,931
50,000 B+/B3 GCI, Inc., 6.75%, 6/1/21 50,562
45,000 NR/A2 GTP Acquisition Partners I LLC, 4.347%,
6/15/16 (144A) 47,579
45,000 NR/A2 GTP Towers Issuer LLC, 4.436%,
2/15/15 (144A) 45,924
20,000 A-/A2 Ooredoo International Finance, Ltd.,
6.5%, 6/10/14 (144A) 20,100
EURO 50,000 BBB/Baa2 Telefonica Emisiones SAU, 5.496%,
4/1/16 75,324
25,000 NR/NR Unison Ground Lease Funding LLC,
2.981%, 3/15/20 (144A) 24,086
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 31
Schedule of Investments | 4/30/14 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
Integrated Telecommunication
Services -- (continued)
70,000 BBB+/Baa1 Verizon Communications, Inc.,
6.55%, 9/15/43 $ 86,345
--------------
$ 444,186
-----------------------------------------------------------------------------------------------------------
Wireless Telecommunication
Services -- 0.9%
75,000 BB/Ba3 MetroPCS Wireless, Inc., 6.625%,
11/15/20 $ 80,062
RUB 5,000,000 BB/Ba3 VimpelCom Holdings BV, 9.0%,
2/13/18 (144A) 131,291
--------------
$ 211,353
--------------
Total Telecommunication Services $ 655,539
-----------------------------------------------------------------------------------------------------------
UTILITIES -- 2.9%
Electric Utilities -- 2.7%
25,000 BBB/Baa1 Commonwealth Edison Co., 6.95%,
7/15/18 $ 29,261
100,000 5.25 BBB+/A3 Electricite de France SA, Floating Rate
Note (Perpetual) (144A) 102,050
100,000 A+/Aa3 Electricite de France SA, 6.0%, 1/22/14
(144A) 109,027
200,000 8.75 BB+/Ba1 Enel S.p.A., Floating Rate Note,
9/24/73 (144A) 230,500
70,000 BBB/Baa2 Public Service Co. of New Mexico,
7.95%, 5/15/18 83,344
50,000 6.25 BBB-/Baa1 Southern California Edison Co., Floating
Rate Note (Perpetual) 53,500
10,000 BBB+/A3 West Penn Power Co., 5.95%,
12/15/17 (144A) 11,349
--------------
$ 619,031
-----------------------------------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 0.2%
35,114 BBB-/Baa3 Panoche Energy Center LLC, 6.885%,
7/31/29 (144A) $ 38,055
--------------
Total Utilities $ 657,086
-----------------------------------------------------------------------------------------------------------
GOVERNMENT -- 0.1%
TRY 65,000 AAA/Aaa European Investment Bank, 0.0%,
3/2/15 (c) $ 28,672
--------------
Total Government $ 28,672
-----------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $7,391,485) $ 7,908,628
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS -- 10.6%
60,000 NR/NR Fannie Mae, 3.0%, 5/14/14 $ 61,917
250,000 NR/NR Fannie Mae, 3.5%, 5/12/14 253,730
58,000 NR/NR Fannie Mae, 3.5%, 5/14/14 61,081
230,979 AAA/Aaa Fannie Mae, 3.5%, 9/1/42 234,730
36,471 AA+/Aaa Fannie Mae, 4.5%, 4/1/41 39,208
37,769 AA+/Aaa Fannie Mae, 5.0%, 6/1/40 41,544
280,158 NR/NR Federal Home Loan Mortgage Corp.,
4.0%, 1/1/44 293,325
100,000 NR/NR Federal Home Loan Mortgage Corp.,
4.5%, 5/12/14 107,391
80,822 AA+/Aaa Federal Home Loan Mortgage Corp.,
5.0%, 10/1/38 88,295
69,277 AA+/Aaa Federal Home Loan Mortgage Corp.,
5.0%, 9/1/38 75,690
51,091 AA+/Aaa Federal Home Loan Mortgage Corp.,
6.0%, 8/1/37 57,479
27,252 AA+/Aaa Federal Home Loan Mortgage Corp.,
6.5%, 1/1/38 30,732
100,196 AA+/Aaa Federal Home Loan Mortgage Corp.,
6.5%, 4/1/38 114,951
500,000 AAA/Aaa Freddie Mac Gold Pool, 4.0%, 7/15/43 523,145
61,005 NR/NR Government National Mortgage
Association I, 4.5%, 1/15/40 66,419
62,348 NR/NR Government National Mortgage
Association I, 4.5%, 7/15/41 68,527
64,008 NR/NR Government National Mortgage
Association I, 4.5%, 9/15/40 69,623
84,709 AAA/Aaa Government National Mortgage
Association II, 4.5%, 9/20/41 91,833
60,000 AA+/Aaa U.S. Treasury Bonds, 4.5%, 2/15/36 71,522
60,000 AA+/Aaa U.S. Treasury Bonds, 4.5%, 8/15/39 71,719
--------------
$ 2,422,861
-----------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(Cost $2,365,925) $ 2,422,861
-----------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT
BONDS -- 26.0%
EURO 50,000 AA+/Aaa Austria Government Bond, 4.15%,
3/15/37 (144A) (144A) $ 89,194
200,000 BBB-/NR Brazil Minas SPE via State of Minas
Gerais, 5.333%, 2/15/28 (144A) 196,250
200,000 BB/Ba1 Croatia Government International Bond,
5.5%, 4/4/23 (144A) 202,000
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 33
Schedule of Investments | 4/30/14 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT
BONDS -- (continued)
GHS 10,000 NR/NR Ghana Government Bond, 16.9%,
3/7/16 $ 3,147
GHS 100,000 NR/NR Ghana Government Bond, 19.24%,
5/30/16 32,255
GHS 380,000 NR/NR Ghana Government Bond, 21.0%,
10/26/15 127,891
GHS 25,000 NR/NR Ghana Government Bond, 26.0%,
6/5/17 9,007
IDR 222,000,000 NR/Baa3 Indonesia Treasury Bond, 6.125%,
5/15/28 15,611
IDR 200,000,000 NR/Baa3 Indonesia Treasury Bond, 7.0%, 5/15/27 15,396
IDR 2,500,000,000 NR/Baa3 Indonesia Treasury Bond, 7.375%,
9/15/16 215,911
IDR 1,210,000,000 NR/Baa3 Indonesia Treasury Bond, 8.25%,
6/15/32 101,623
IDR 850,000,000 NR/Aaa Inter-American Development Bank,
4.5%, 2/4/16 70,433
BRL 400,000 AAA/Aaa International Finance Corp., 5.0%,
12/21/15 165,278
INR 3,790,000 NR/Aaa International Finance Corp., 7.75%,
12/3/16 63,764
EURO 35,000 BBB+/Baa3 Ireland Government Bond, 5.0%,
10/18/20 57,779
EURO 100,000 NR/Baa2 Italy Buoni Poliennali Del Tesoro, 4.75%,
8/1/23 (144A) (144A) 158,887
JPY 20,000,000 AA-/Aa3 Japan Government Ten Year Bond, 1.0%,
12/20/21 204,230
JPY 20,000,000 NR/Aa3 Japan Government Twenty Year Bond,
1.5%, 3/20/19 208,178
KES 7,450,000 B+/B1 Kenya Treasury Bill, 8/11/14 (c) 83,341
MYR 507,000 A/A3 Malaysia Government Bond, 3.418%,
8/15/22 149,266
MXN 1,050,000 A/A3 Mexican Bonos, 6.5%, 6/9/22 82,863
MXN 300,000 A/A3 Mexican Bonos, 7.5%, 6/3/27 24,885
MXN 3,492,323 A/A3 Mexican Udibonos, 2.0%, 6/9/22 259,523
MXN 4,634,460 A/A3 Mexican Udibonos, 3.5%, 12/14/17 381,038
NGN 20,000,000 B+/Ba3 Nigeria Government Bond, 16.0%, 6/29/19 137,877
NOK 1,800,000 AAA/Aaa Norway Government Bond, 2.0%, 5/24/23 285,865
NOK 965,000 AAA/Aaa Norway Government Bond, 4.25%, 5/19/17 174,424
NOK 1,490,000 AAA/Aaa Norway Government Bond, 4.5%, 5/22/19 279,193
NOK 1,000,000 AAA/Aaa Norway Government Bond, 5.0%, 5/15/15 174,306
PLN 1,000,000 A/A2 Poland Government Bond, 5.25%,
10/25/17 352,494
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT
BONDS -- (continued)
PLN 1,000,000 A/A2 Poland Government Bond, 5.5%,
4/25/15 $ 339,276
100,000 A-/A2 Poland Government International
Bond, 4.0%, 1/22/24 100,850
NZD 100,000 AA-/Aa2 Province of Ontario Canada, 6.25%,
6/16/15 88,258
AUD 100,000 AA+/Aa1 Queensland Treasury Corp., 5.75%,
7/22/24 102,743
RON 770,000 NR/NR Romania Government Bond, 5.85%,
4/26/23 253,008
RON 200,000 NR/NR Romania Government Bond, 5.9%,
7/26/17 65,838
RUB 4,200,000 BBB/Baa1 Russian Federal Bond -- OFZ, 7.5%,
3/15/18 112,000
TRY 180,928 NR/NR Turkey Government Bond, 10.5%,
1/15/20 90,695
200,000 CCC/Caa3 Ukraine Government International
Bond, 7.5%, 4/17/23 (144A) 167,240
GBP 70,000 NR/Aa1 United Kingdom Gilt, 4.25%, 9/7/39 134,988
GBP 75,000 NR/Aa1 United Kingdom Gilt, 8.75%, 8/25/17 157,121
--------------
$ 5,933,926
-----------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $6,268,377) $ 5,933,926
-----------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 2.4%
Municipal Airport -- 0.1%
20,000 BBB/Baa1 Indianapolis Airport Authority, 5.1%,
1/15/17 $ 21,881
-----------------------------------------------------------------------------------------------------------
Municipal Development -- 0.3%
50,000 AA-/Aa3 California Statewide Communities
Development Authority, 6.0%, 8/15/42 $ 59,229
-----------------------------------------------------------------------------------------------------------
Municipal General -- 0.4%
70,000 AA/A2 JobsOhio Beverage System,
3.985%, 1/1/29 $ 69,694
20,000 AA/A2 JobsOhio Beverage System,
4.532%, 1/1/35 19,931
--------------
$ 89,625
-----------------------------------------------------------------------------------------------------------
Higher Municipal Education -- 1.0%
25,000 A+/NR Baylor University, 4.313%, 3/1/42 $ 23,784
10,000 AA/Aa1 Illinois Finance Authority, 5.0%, 10/1/51 10,426
25,000 AAA/Aaa Massachusetts Health & Educational
Facilities Authority, 5.5%, 7/1/32 33,080
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 35
Schedule of Investments | 4/30/14 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
Higher Municipal
Education -- (continued)
25,000 AAA/Aaa Massachusetts Institute of Technology,
5.6%, 7/1/11 $ 31,434
50,000 AA/Aa1 New York State Dormitory Authority
Series A, 5.0%, 7/1/40 56,226
20,000 AAA/Aaa Permanent University Fund, 5.0%, 7/1/30 23,793
50,000 AA/Aa2 University of California, 3.38%, 5/15/28 46,642
--------------
$ 225,385
-----------------------------------------------------------------------------------------------------------
Municipal Medical -- 0.1%
25,000 AA-/A1 Massachusetts Development Finance
Agency, 5.25%, 4/1/37 $ 27,076
-----------------------------------------------------------------------------------------------------------
Municipal Power -- 0.1%
25,000 AA-/A1 South Carolina State Public Service
Authority, 5.0%, 12/1/43 $ 26,482
-----------------------------------------------------------------------------------------------------------
Municipal Water -- 0.2%
45,000 AAA/NR Tarrant Regional Water District, 5.0%,
3/1/52 $ 48,015
-----------------------------------------------------------------------------------------------------------
Municipal Obligation -- 0.2%
50,000 AA+/Aa1 State of Washington, 5.0%, 8/1/39 $ 54,498
-----------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $524,210) $ 552,191
-----------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTEREST -- 0.2%**
TELECOMMUNICATION SERVICES -- 0.2%
Integrated Telecommunication
Services -- 0.2%
48,902 3.25 BB/B1 West Corp., B-10 Term Loan (First Lien),
6/30/18 $ 48,363
-----------------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE
LOAN INTEREST
(Cost $49,765) $ 48,363
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------------------------
PURCHASED CALL OPTION -- 0.0%+
84,202 Call TRY/Put USD @ 2.154, 12/1/15 $ 1,483
-----------------------------------------------------------------------------------------------------------
TOTAL PURCHASED CALL OPTION
(Premiums paid $1,388) $ 1,483
-----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN
SECURITIES -- 95.1%
(Cost $21,188,844) (a) $ 21,670,661
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
-----------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------------
WRITTEN PUT OPTION -- (0.0)%+
(84,202) Put TRY/Call USD @ 2.95, 12/1/15 $ (508)
-----------------------------------------------------------------------------------------------------------
TOTAL WRITTEN PUT OPTION
(Premiums received $(1,388)) $ (508)
-----------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 4.9% $ 1,122,131
-----------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 22,792,284
===========================================================================================================
+ Amount rounds to less than 0.1%.
* Non-income producing security.
NR Not rated by either S&P or Moody's.
WR Rating withdrawn by either S&P or Moody's.
(Step) Bond issued with an initial coupon rate which converts to a higher
rate at a later date.
REIT Real Estate Investment Trust.
(Perpetual) Security with no stated maturity 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 April 30, 2014, the value of these securities
amounted to $4,721,356 or 20.7% of total net assets.
(a) At April 30, 2014, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $21,194,800 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 1,167,324
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (691,463)
--------------
Net unrealized appreciation $ 475,861
==============
(b) Debt obligation with a variable interest rate. Rate shown is rate at
end of period.
(c) Security issued with a zero coupon. Income is earned through
accretion of discount.
(d) Security represents the interest only portion payments on a pool of
underlying mortgages or mortgage-backed securities.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 37
Schedule of Investments | 4/30/14 (unaudited) (continued)
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
AUD Australian Dollar
BRL Brazilian Real
COP Colombian Peso
EURO Euro
GBP British Pound Sterling
GHS Ghanian Cedi
IDR Indonesian Rupiah
INR Indian Rupee
JPY Japanese Yen
KES Kenyan Shilling
MXN Mexican Peso
MYR Malaysian Ringgit
NGN Nigerian Naira
NZD New Zealand Dollar
NOK Norwegian Krone
NZD New Zealand Dollar
PLN New Polish Zloty
RON Romanian New Leu
RUB Russian Ruble
TRY Turkish Lira
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 2014 aggregated $5,944,563 and $9,590,573,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 -- quoted prices in active markets for identical securities.
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services or broker-dealers)
are categorized as Level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
The following is a summary of the inputs used as of April 30, 2014, in valuing
the Fund's assets:
-------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 386,352 $ -- $ 386,352
Preferred Stocks -- -- -- --
Banks
Regional Banks -- 51,359 -- 51,359
Insurance
Reinsurance -- -- 127,089 127,089
All Other Preferred Stocks 485,089 -- -- 485,089
Convertible Preferred Stocks 155,283 -- -- 155,283
Asset Backed Securities -- 805,877 -- 805,877
Collateralized Mortgage Obligations -- 2,792,160 -- 2,792,160
Corporate Bonds -- 7,908,628 -- 7,908,628
U.S. Government Agency Obligations -- 2,422,861 -- 2,422,861
Foreign Government Bonds -- 5,933,926 -- 5,933,926
Municipal Bonds -- 552,191 -- 552,191
Senior Floating Rate Loan Interests -- 48,363 -- 48,363
Purchased Call Option -- 1,483 -- 1,483
-------------------------------------------------------------------------------------------------------
Total $ 640,372 $20,903,200 $ 127,089 $ 21,670,661
=======================================================================================================
Other Financial Instruments
Unrealized depreciation on
futures contracts $ (20,094) $ -- $ -- $ (20,094)
Unrealized appreciation on
written put option -- 880 -- 880
Unrealized depreciation on
forward foreign currency contracts -- (18,104) -- (18,104)
-------------------------------------------------------------------------------------------------------
Total Other Financial Instruments $ (20,094) $ (17,224) $ -- $ (37,318)
=======================================================================================================
The following is a reconciliation of assets valued using significant observable
inputs (Level 3):
-------------------------------------------------------------------------------------------------------
Preferred
Stocks
-------------------------------------------------------------------------------------------------------
Balance as of 10/31/13 $ 105,090
Realized gain (loss)(1) 2,216
Change in unrealized appreciation (depreciation)(2) 25,164
Purchases 30,000
Sales (35,381)
Transfers in to Level 3* --
Transfers out of Level 3* --
-------------------------------------------------------------------------------------------------------
Balance as of 4/30/14 $ 127,089
=======================================================================================================
(1) Realized gain (loss) on these securities is included in the net realized
gain (loss) from investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) on investments in the
Statement of Operations.
* Transfers are calculated on the beginning of period values.
During the six months ended April 30, 2014, there were no transfers between
Levels 1, 2 and 3.
Net change in unrealized appreciation (depreciation) of investments still
held as of 4/30/14 $ 25,164
------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 39
Statement of Assets and Liabilities | 4/30/14 (unaudited)
ASSETS:
Investment in securities, at value (cost $21,188,844) $21,670,661
Cash 1,206,934
Futures collateral 22,500
Foreign currencies, at value (cost $358,973) 352,249
Receivables --
Investment securities sold 1,025,379
Fund shares sold 28,008
Interest 251,455
Prepaid expenses 17,429
---------------------------------------------------------------------------------------------------
Total assets $24,574,615
===================================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 1,649,487
Fund shares repurchased 5,530
Dividends 47,712
Variation margin 20,094
Written options (premiums received $1,388) 508
Net unrealized depreciation on forward foreign currency contracts 18,104
Accrued expenses 40,896
---------------------------------------------------------------------------------------------------
Total liabilities $ 1,782,331
===================================================================================================
NET ASSETS:
Paid-in capital $22,335,044
Undistributed net investment income 24,305
Accumulated net realized loss on investments and foreign
currency transactions (5,570)
Net unrealized appreciation on investments 481,817
Net unrealized depreciation on futures contracts (20,094)
Net unrealized appreciation on written options 880
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (24,098)
---------------------------------------------------------------------------------------------------
Total net assets $22,792,284
===================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $6,889,714/629,527 shares) $ 10.94
Class C (based on $3,928,531/357,758 shares) $ 10.98
Class Y (based on $11,974,039/1,084,180 shares) $ 11.04
MAXIMUM OFFERING PRICE:
Class A ($10.94(divided by)95.5%) $ 11.46
===================================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
Statement of Operations (unaudited)
For the Six Months Ended 4/30/14
INVESTMENT INCOME:
Interest (net of foreign taxes withheld of $1,514) $632,587
Dividends 21,242
---------------------------------------------------------------------------------------------------
Total investment income $653,829
---------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 71,480
Transfer agent fees and expenses
Class A 6,284
Class C 2,530
Class Y 302
Distribution fees
Class A 8,175
Class C 18,889
Shareholder communications expense 3,400
Administrative reimbursements 13,864
Custodian fees 15,782
Registration fees 26,982
Professional fees 33,508
Printing expense 8,743
Fees and expenses of nonaffiliated trustees 3,278
Miscellaneous 20,500
--------------------------------------------------------------------------------------------------
Total expenses $233,717
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (96,600)
--------------------------------------------------------------------------------------------------
Net expenses $137,117
--------------------------------------------------------------------------------------------------
Net investment income $516,712
--------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS, WRITTEN OPTIONS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 85,176
Futures contracts 6,465
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (88,877) $ 2,764
--------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 43,624
Futures contracts (30,828)
Written options 880
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 39,845 $ 53,521
--------------------------------------------------------------------------------------------------
Net gain on investments, futures contracts, written options and
foreign currency transactions $ 56,285
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $572,997
==================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 41
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------------
Six Months
Ended
4/30/14 Year Ended
(unaudited) 10/31/13
--------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 516,712 $ 950,702
Net realized gain on investments, futures contracts and
foreign currency transactions 2,764 136,170
Change in net unrealized appreciation (depreciation) on
investments, futures contracts, written options and
foreign currency transactions 53,521 (1,242,718)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 572,997 $ (155,846)
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.18 and $0.29 per share, respectively) $ (110,312) $ (201,827)
Class C ($0.13 and $0.19 per share, respectively) (46,475) (71,517)
Class Y ($0.20 and $0.32 per share, respectively) (330,537) (466,944)
Net realized gain:
Class A ($0.06 and $0.17 per share, respectively) $ (39,796) $ (113,364)
Class C ($0.06 and $0.17 per share, respectively) (21,563) (60,494)
Class Y ($0.06 and $0.17 per share, respectively) (98,561) (238,175)
--------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (647,244) $ (1,152,321)
--------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 3,929,145 $ 6,054,922
Reinvestment of distributions 155,763 320,142
Cost of shares repurchased (9,391,317) (5,463,448)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ (5,306,409) $ 911,616
--------------------------------------------------------------------------------------------------
Net decrease in net assets $ (5,380,656) $ (396,551)
NET ASSETS:
Beginning of period 28,172,940 28,569,491
--------------------------------------------------------------------------------------------------
End of period $ 22,792,284 $ 28,172,940
==================================================================================================
Undistributed (distributions in excess of) net
investment income $ 24,305 $ (5,083)
==================================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
--------------------------------------------------------------------------------------------------
'14 Shares '14 Amount
(unaudited) (unaudited) '13 Shares '13 Amount
--------------------------------------------------------------------------------------------------
Class A
Shares sold 125,467 $ 1,362,644 193,258 $ 2,180,260
Reinvestment of distributions 10,704 115,902 21,726 243,127
Less shares repurchased (134,211) (1,450,810) (381,847) (4,289,342)
--------------------------------------------------------------------------------------------------
Net increase (decrease) 1,960 $ 27,736 (166,863) $ (1,865,955)
==================================================================================================
Class C
Shares sold 32,407 $ 352,765 66,648 $ 752,099
Reinvestment of distributions 3,523 38,284 6,749 75,775
Less shares repurchased (27,423) (298,412) (84,082) (933,826)
--------------------------------------------------------------------------------------------------
Net increase (decrease) 8,507 $ 92,637 (10,685) $ (105,952)
==================================================================================================
Class Y
Shares sold 203,196 $ 2,213,736 275,954 $ 3,122,563
Reinvestment of distributions 144 1,577 111 1,240
Less shares repurchased (694,148) (7,642,095) (21,451) (240,280)
--------------------------------------------------------------------------------------------------
Net increase (decrease) (490,808) $(5,426,782) 254,614 $ 2,883,523
==================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 43
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/14 Ended Ended Ended Ended Ended
(unaudited) 10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.98 $ 11.49 $ 11.22 $ 11.19 $ 10.84 $ 9.25
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.19 $ 0.30 $ 0.36 $ 0.34 $ 0.35 $ 0.39
Net realized and unrealized gain (loss) on investments 0.01 (0.35) 0.29 0.01 0.41 1.57
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 0.20 $ (0.05) $ 0.65 $ 0.35 $ 0.76 $ 1.96
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.18) $ (0.29) $ (0.36) $ (0.32) $ (0.40) $ (0.37)
Net realized gain (0.06) (0.17) (0.02) -- (0.01) --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.24) $ (0.46) $ (0.38) $ (0.32) $ (0.41) $ (0.37)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.04) $ (0.51) $ 0.27 $ 0.03 $ 0.35 $ 1.59
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.94 $ 10.98 $ 11.49 $ 11.22 $ 11.19 $ 10.84
====================================================================================================================================
Total return* 1.89% (0.45)% 5.98% 3.22% 7.21% 21.58%
Ratio of net expenses to average net assets 1.00%** 1.00% 1.00% 1.00% 1.00% 1.00%
Ratio of net investment income to average net assets 3.59%** 3.36% 3.26% 2.94% 3.26% 3.83%
Portfolio turnover rate 47%** 33% 29% 34% 27% 28%
Net assets, end of period (in thousands) $ 6,890 $ 6,888 $ 9,128 $14,830 $ 6,235 $ 5,434
Ratios with no waiver of fees and assumption
of expenses by the Adviser:
Total expenses 1.88%** 2.05% 1.65% 2.07% 2.35% 2.90%
Net investment income 2.71%** 2.31% 2.60% 1.86% 1.91% 1.93%
====================================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
44 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/14 Ended Ended Ended Ended Ended
(unaudited) 10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 11.01 $ 11.51 $ 11.23 $ 11.19 $ 10.82 $ 9.23
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.14 $ 0.20 $ 0.26 $ 0.24 $ 0.25 $ 0.29
Net realized and unrealized gain (loss) on investments 0.02 (0.34) 0.30 0.02 0.43 1.58
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 0.16 $ (0.14) $ 0.56 $ 0.26 $ 0.68 $ 1.87
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.13) $ (0.19) $ (0.26) $ (0.22) $ (0.30) $ (0.28)
Net realized gain (0.06) (0.17) (0.02) -- (0.01) --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.19) $ (0.36) $ (0.28) $ (0.22) $ (0.31) $ (0.28)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.03) $ (0.50) $ 0.28 $ 0.04 $ 0.37 $ 1.59
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.98 $ 11.01 $ 11.51 $ 11.23 $ 11.19 $ 10.82
====================================================================================================================================
Total return* 1.53% (1.24)% 5.09% 2.39% 6.45% 20.55%
Ratio of net expenses to average net assets 1.90%** 1.90% 1.90% 1.90% 1.90% 1.89%
Ratio of net investment income to average net assets 2.68%** 2.46% 2.33% 2.15% 2.37% 2.94%
Portfolio turnover rate 47%** 33% 29% 34% 27% 28%
Net assets, end of period (in thousands) $ 3,929 $ 3,847 $ 4,414 $ 3,555 $ 3,264 $ 3,281
Ratios with no waiver of fees and assumption
of expenses by the Adviser:
Total expenses 2.55%** 2.75% 2.39% 2.94% 3.00% 3.57%
Net investment income 2.03%** 1.84% 1.84% 1.11% 1.27% 1.26%
====================================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 45
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/14 Ended Ended Ended Ended Ended
(unaudited) 10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 11.07 $ 11.59 $ 11.30 $ 11.22 $ 10.85 $ 9.25
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.21 $ 0.33 $ 0.39 $ 0.35 $ 0.34 $ 0.38
Net realized and unrealized gain (loss) on investments 0.02 (0.36) 0.30 0.05 0.45 1.59
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 0.23 $ (0.03) $ 0.69 $ 0.40 $ 0.79 $ 1.97
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.20) $ (0.32) $ (0.38) $ (0.32) $ (0.41) $ (0.37)
Net realized gain (0.06) (0.17) (0.02) -- (0.01) --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.26) $ (0.49) $ (0.40) $ (0.32) $ (0.42) $ (0.37)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.03) $ (0.52) $ 0.29 $ 0.08 $ 0.37 $ 1.60
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.04 $ 11.07 $ 11.59 $ 11.30 $ 11.22 $ 10.85
====================================================================================================================================
Total return* 2.11% (0.25)% 6.24% 3.66% 7.48% 21.69%
Ratio of net expenses to average net assets 0.75%** 0.75% 0.79% 0.82% 0.94% 1.00%
Ratio of net investment income to average net assets 3.82%** 3.58% 3.42% 3.01% 3.31% 3.83%
Portfolio turnover rate 47%** 33% 29% 34% 27% 28%
Net assets, end of period (in thousands) $11,974 $17,438 $15,297 $11,160 $ 4,205 $ 1,809
Ratios with no waiver of fees and assumption
of expenses by the Adviser:
Total expenses 1.36%** 1.57% 1.18% 1.55% 1.86% 2.48%
Net investment income 3.21%** 2.76% 3.04% 2.28% 2.38% 2.35%
====================================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
46 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
Notes to Financial Statements | 4/30/14 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Global Multisector Income Fund (formerly known as Pioneer Global
Aggregate Bond Fund) (the Fund) is a series of Pioneer Series Trust VII, a
Delaware statutory trust. The Fund is registered under the Investment Company
Act of 1940 as a diversified, open-end management investment company. The
investment objective of the Fund is to provide a high level of current income.
The Fund offers 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 28, 2007. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has identical rights (based on relative
net asset values) to assets and liquidation proceeds. Share classes can bear
different rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 47
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.
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 market prices and/or quotations are
not readily available or are considered to be unreliable are valued by a
fair valuation team comprised of certain personnel of Pioneer Investment
Management, Inc. (PIM), the Fund's investment adviser, pursuant to
procedures adopted by the Fund's Board of Trustees. PIM's fair valuation
team uses fair value methods approved by the Valuation Committee of the
Board of Trustees. PIM's fair valuation team is responsible for monitoring
developments that may impact fair valued securities and for discussing and
assessing fair values on an ongoing basis, and at least quarterly, with the
Valuation Committee of the Board of Trustees.
48 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
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 April 30, 2014, there were no securities that were valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services or broker-dealers).
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, 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. 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 Global Multisector Income Fund | Semiannual Report | 4/30/14 49
C. 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).
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no provision for federal income taxes is required.
As of April 30, 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 table year. The tax character of distributions
paid during the year ended October 31, 2013 was as follows:
---------------------------------------------------------------------------
2013
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 875,669
Long-term capital gain 276,652
---------------------------------------------------------------------------
Total $1,152,321
===========================================================================
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 50
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2013:
---------------------------------------------------------------------------
2013
---------------------------------------------------------------------------
Distributable earnings:
Undistributed long-term gain $ 162,320
Current year dividend payable (59,773)
Unrealized appreciation 428,940
---------------------------------------------------------------------------
Total $ 531,487
===========================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales, adjustments
related to sidecars, the mark-to-market of forward and futures contracts,
and interest accruals on preferred stock.
E. 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 $297 in underwriting commissions on the sale of Class A
shares during the six months ended April 30, 2014.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 51
G. 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 investments in
foreign markets and countries with limited developing markets may subject
the Fund to a greater degree of risk than investments in a developed
market. These risks include disruptive political or economic conditions and
the imposition of adverse governmental laws or currency exchange
restrictions. The Fund's prospectus contains unaudited information
regarding the Fund's principal risks. Please refer to that document when
considering the Fund's principal risks.
The Fund invests in below investment grade (high yield) debt securities and
preferred stocks. Some of these high yield securities may be convertible
into equity securities of the issuer. Debt securities rated below
investment grade are commonly referred to as "junk bonds" and are
considered speculative. These securities involve greater risk of loss, are
subject to greater price volatility, and are less liquid, especially during
periods of economic uncertainty or change, than higher rated debt
securities.
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 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
April 30, 2014 was $22,500. 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. Futures contracts are subject to
market risk, interest rate risk and currency exchange rate risk. Changes in
value of the contracts may not directly correlate to the changes in value
of the underlying securities. With futures, there is minimal counterparty
credit risk to the Fund since futures are exchange-traded and the
exchange's clearinghouse, as counterparty to all exchange-traded futures,
guarantees the futures against default. The average value of contracts open
during the six months ended April 30, 2014 was $1,361,042.
52 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
At April 30, 2014, open futures contracts were as follows:
------------------------------------------------------------------------------------
Number of Net
Contracts Settlement Unrealized
Type Long/(Short) Month Value Depreciation
------------------------------------------------------------------------------------
FC US 5 Yr Note (CBT) (5) 6/14 $ (594,765) $ (2,500)
US Long Bond (CBT) (4) 6/14 $ (527,875) $(11,875)
US 10 Yr Note (CBT) (6) 6/14 $ (740,813) $ (5,719)
------------------------------------------------------------------------------------
Total (15) $(1,863,453) $(20,094)
------------------------------------------------------------------------------------
I. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian or a subcustodian of the
Fund. PIM is responsible for determining that the value of the collateral
remains at least equal to the repurchase price.
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 April 30,
2014 was $779. Written call option contracts outstanding at period end are
listed at the end of the Fund's schedule of investments. The Fund held one
written put option contract that were open at April 30, 2014. If the put
option was exercised at April 30, 2014, the maximum amount the Fund would
have been required to pay was $508.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 53
Transactions in written options for the six months ended April 30, 2014 are
summarized as follows:
---------------------------------------------------------------------------------
Number of Contracts Premium Paid
---------------------------------------------------------------------------------
Options open at beginning of period -- $ --
Options opened 84,202 (1,388)
Options exercised -- --
Options closed -- --
Options expired -- --
---------------------------------------------------------------------------------
Options open at end of period 84,202 $(1,388)
=================================================================================
K. Purchased Options
The Fund may purchase call and put option in order to seek to increase
total return. Purchased call and put options entitle the Fund to buy and
sell a specified number of shares or units of a particular security,
currency or index at a specified price at a specific date or within a
specific period of time. Upon the purchase of a call or put option, the
premium paid by the Fund is included in the Statement of Assets and
Liabilities as an investment. All premiums are marked-to-market daily, and
any unrealized appreciation or depreciation are recorded in the Fund's
financial statements. As the purchaser of an index option, the Fund has the
right to receive a cash payment equal to any depreciation in the value of
the index below the strike price of the option (in the case of a put) or
equal to any appreciation in the value of the index over the strike price
of the option (in the case of a call) as of the valuation date of the
option. Premiums paid for purchased calls and put options which have
expired are treated as realized losses on investments in the Statement of
Operations. Upon the exercise or closing of a purchased put option, the
premium is offset against the proceeds on the sale of the underlying
security or financial instrument in order to determine the realized gain or
loss on investments. Upon the exercise or closing of a purchased call
option, the premium is added to the cost of the security or financial
instrument. The risk associated with purchasing options is limited to the
premium originally paid. The average value of purchased options open during
the six months ended April 30, 2014 was $569. Purchased option contracts
outstanding at period end are listed at the end of the Fund's schedule of
investments.
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 of 0.50% of
the Fund's average daily net assets.
54 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
PIM has contractually agreed to limit ordinary operating expenses of the Fund to
the extent required to reduce Fund expenses to 1.00%, 1.90% and 0.75% of the
average daily net assets attributable to Class A, Class C and Class Y shares,
respectively. Fees waived and expenses reimbursed during the six months ended
April 30, 2014 are reflected on the Statement of Operations. These expense
limitations are in effect through March 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 from affiliates" reflected on the Statement of Assets and Liabilities is
$2,673 in management fees, administrative costs and certain other reimbursements
due to PIM at April 30, 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 April 30, 2014, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $2,275
Class C 901
Class Y 224
--------------------------------------------------------------------------------
Total: $3,400
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $1,965 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at April 30, 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
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 55
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 $309 in
distribution fees payable to PFD at April 30, 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 purchases 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 April 30, 2014, CDSCs in the amount of $13 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 April 30, 2014, the Fund's expenses
were not reduced under such arrangements.
6. Forward Foreign Currency Contracts
At April 30, 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 April 30, 2014 was
$5,632,734.
56 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
--------------------------------------------------------------------------------------------------------
Net
Net In Unrealized
Contracts Exchange Settlement Appreciation
Currency to Deliver For Date Value (Depreciation)
--------------------------------------------------------------------------------------------------------
AUD (Australian Dollar) $ (372,214) $ (336,449) 6/6/14 $ (345,087) $ (8,638)
AUD (Australian Dollar) (120,554) (111,784) 5/1/14 (112,043) (259)
BRL (Brazilian Real) 350,000 145,657 6/6/14 155,129 9,472
CLP (Chilean Peso) (150,000,000) (259,502) 6/18/14 (264,355) (4,853)
CZK (Czech Koruna) (13,500,000) (688,440) 6/20/14 (682,056) 6,384
EURO (European Euro) (215,075) (297,358) 7/16/14 (298,302) (944)
EURO (European Euro) (1,366,271) (1,894,223) 6/11/14 (1,895,104) (881)
EURO (European Euro) (107,614) (148,574) 6/11/14 (149,267) (693)
EURO (European Euro) (93,140) (128,708) 7/16/14 (129,182) (474)
EURO (European Euro) 216,189 298,524 5/2/14 299,897 1,373
GBP (British Pound
Sterling) (110,000) (182,859) 5/19/14 (185,732) (2,873)
HUF (Hungarian Forint) (66,994,656) (297,602) 6/6/14 (302,193) (4,591)
JPY (Japanese Yen) (38,079,469) (373,479) 5/19/14 (372,911) 568
MXN (Mexican Peso) 3,813,010 289,380 6/11/14 290,685 1,305
NOK (Norwegian Krone) (1,794,563) (298,524) 5/2/14 (302,018) (3,494)
NZD (New Zealand
Dollar) (85,041) (69,409) 5/7/14 (73,309) (3,900)
PHP (Philippine Peso) 13,300,000 296,941 5/13/14 298,327 1,386
PLN (Polish Zloty) 2,083,941 688,440 6/20/14 686,407 (2,033)
RON (Romanian New
Leu) 965,480 297,602 6/6/14 300,973 3,371
RUB(Russian Ruble) 4,400,000 124,512 5/13/14 123,158 (1,354)
RUB(Russian Ruble) (4,399,799) (123,037) 5/13/14 (123,153) (116)
TRY (Turkish Lira) (234,338) (108,469) 7/14/14 (108,807) (338)
ZAR (South African
Rand) (3,129,440) (289,380) 6/11/14 (295,902) (6,522)
--------------------------------------------------------------------------------------------------------
Total $(18,104)
========================================================================================================
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 57
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 April 30, 2014.
------------------------------------------------------------------------------------------
Assets:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Assets Assets and Liabilities
Gross Statement Presented In ------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $23,859 $(23,859) $ -- $-- $-- $ --
Futures
contracts $ -- $ -- $ -- $-- $-- $ --
Written options $ 880 $ -- $880 $-- $-- $880
------------------------------------------------------------------------------------------
$24,739 $(23,859) $880 $-- $-- $880
==========================================================================================
--------------------------------------------------------------------------------------------
Liabilities:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Liabilities Assets and Liabilities
Gross Statement Presented In ------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Pledged Amount
--------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $41,963 $(23,859) $18,104 $-- $-- $ 18,104
Futures
contracts $20,094 $ -- $20,094 $-- $-- $ 20,094
Written options $ -- $ -- $ -- $-- $-- $ --
--------------------------------------------------------------------------------------------
$62,057 $(23,859) $38,198 $-- $-- $ 38,198
--------------------------------------------------------------------------------------------
58 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
8. Additional Disclosures about Derivative Instruments and
Hedging Activities
Values of derivative instruments as of April 30, 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 Currency Net unrealized Net unrealized
Contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $ -- currency contracts $18,104
Interest Rate Futures* Net unrealized Net unrealized
appreciation on depreciation on
futures contracts $ -- futures contracts $20,094
Written Options Net unrealized Net unrealized
appreciation on depreciation on
written options $880 written options $ --
-----------------------------------------------------------------------------------------------------
Total $880 $38,198
-----------------------------------------------------------------------------------------------------
* Reflects unrealized appreciation/depreciation on futures contracts (See
Note 1H). The current day's variation margin is disclosed on the Statement
of Assets and Liabilities.
The effect of derivative instruments on the Statement of Operations for the six
months ended April 30, 2014 was as follows:
-------------------------------------------------------------------------------------------------------
Change in
Derivatives Not Unrealized
Accounted for as Realized Appreciation
hedging instruments Location of Gain Gain (Loss) (Depreciation)
Under Accounting or (Loss) on on Derivatives on Derivatives
Standards Codification Derivatives Recognized Recognized Recognized
(ASC) 185 in Income in Income in Income
-------------------------------------------------------------------------------------------------------
Interest Rate Futures Net realized gain (loss) on
futures contracts $ 6,465
Interest Rate Futures Change in net unrealized
appreciation (depreciation)
on futures contracts $(30,828)
Forward Foreign Net realized gain (loss) on
Currency Contracts forward foreign currency
contracts and other assets
and liabilities denominated
in foreign currencies $(88,877)
Forward Foreign Change in unrealized appreciation
Currency Contracts (depreciation) on forward foreign
currency contracts and other assets
and liabilities denominated in
foreign currencies $ 39,845
Written Options Change in unrealized appreciation
(depreciation) on written options $ 880
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 59
9. 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 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 April 30,
2014, the Fund had no borrowings under the credit facility.
10. Subsequent Event
Change in Independent Registered Public Accounting Firm
The Board of Trustees of the Fund, with the approval and recommendation of the
Audit Committee, appointed Deloitte & Touche LLP to serve as the Fund's
independent registered public accounting firm for the fiscal year ending October
31, 2014. Deloitte & Touche LLP replaces Ernst & Young LLP, which resigned as
the Fund's independent registered public accounting firm, effective upon
completion of the audit of the Fund's financial statements for the fiscal year
ended October 31, 2013.
During the periods that Ernst & Young LLP served as the Fund's independent
registered public accounting firm, including the Fund's two most recent fiscal
year, Ernst & Young LLP's reports on the financial statements of the Fund have
not contained an adverse opinion or disclaimer of opinion and have not been
qualified or modified as to uncertainty, audit scope or accounting principles or
practices, financial statement disclosure, or auditing scope or procedure,
which, if not resolved to the satisfaction of Ernst & Young LLP would have
caused Ernst & Young LLP to make reference to the subject matter of the
disagreement in connection with its report on the financial statements. In
addition, there have been no reportable events to the kind described in Item
304(a)(i)(v) of Regulation S-K under the Securities and Exchange Act of 1934.
60 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Global Multisector Income 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
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 61
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 administra-
tor, 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 third quintile of its Morningstar
category for the one year period ended June 30, 2013, and in the second quintile
of its Morningstar category for the three and five year periods 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 concluded that the investment performance of
the Fund was satisfactory.
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.
62 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
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 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 fourth 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 noted
that PIM was waiving fees and/or reimbursing expenses in order to limit the
ordinary operating expenses of the Fund. The Trustees considered that, taking
into account the contractual expense limitation agreed to by PIM with respect to
Class Y shares of the Fund, the expense ratio of the Fund's Class Y shares for
the twelve months ended June 30, 2013 would be in the third quintile relative to
its Morningstar peer group.
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 serv-
ices 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 profit margin in
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 63
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
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 invest-
ment 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.
64 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
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.
*** Mr. Mayer resigned as a Trustee of the Pioneer Funds effective May 6, 2014.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 65
This page for your notes.
66 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
This page for your notes.
Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14 67
This page for your notes.
68 Pioneer Global Multisector Income Fund | Semiannual Report | 4/30/14
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 21910-06-0614
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
----------------------- ------------------------- -----------------------------------------------
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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.
------------------------------------------- ------------------------------
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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 VII
By (Signature and Title)* /s/ Daniel K. Kingsbury
Daniel K. Kingsbury, President
Date June 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 June 27, 2014
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date June 27, 2014
* Print the name and title of each signing officer under his or her signature.