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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 811-09685
Pioneer High Yield Fund
(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, 2014 through October 31, 2015
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer High
Yield Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2015
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Ticker Symbols:
Class A TAHYX
Class C PYICX
Class R TYHRX
Class Y TYHYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 44
Notes to Financial Statements 52
Report of Independent Registered Public Accounting Firm 65
Approval of Investment Advisory Agreement 67
Trustees, Officers and Service Providers 72
Pioneer High Yield Fund | Annual Report | 10/31/15 1
President's Letter
Dear Shareholder,
Through the first three quarters of 2015, global markets experienced pockets of
higher-than-average volatility due to significant cross-currents from different
geographic regions. All year, investors focused on the Federal Reserve System's
(the Fed's) deliberations over when to begin normalizing interest rates.
However, while there were signs of gradual economic improvement in the U.S.,
economies abroad increasingly diverged. In June, for example, investors grew
concerned about the debt crisis in Greece. That news, in turn, was followed by
evidence of an economic slowdown in China, which only served to exacerbate
existing worries about growth trends in the emerging markets, a segment of the
global economy already being negatively impacted by slumping commodity prices,
including the price of crude oil, which has been in near-steady decline for
almost a year. Through September 30, 2015, the pockets of heightened market
volatility alluded to above had resulted in the Standard & Poor's 500 Index
turning in a negative (-5.27%) return over the first nine months of the year.
However, the S&P 500 recovered nicely in October, returning 8.43% for the month,
which boosted the index's year-to-date return into positive territory, at 2.71%.
Despite the headwinds still vexing the global economy, our longer-term view of
the U.S. economy has remained positive. Economic conditions in the U.S. have
generally been constructive, based largely on improvements in employment
statistics and an uptick in the housing sector, which has aided the consumer
side of the economy, where household spending has been rising modestly. U.S.
consumers also stand to benefit, potentially, from lower energy prices as the
winter weather approaches. We continue to believe the U.S. economy remains on a
slow, steady growth trend, and that it is unlikely to be disrupted by a slow
pace of interest-rate normalization by the Fed.
Pioneer Investments believes that investors in today's environment can
potentially benefit from the consistent and disciplined investment approach we
have used since our founding in 1928. We focus on identifying value across
global markets using proprietary research, careful risk management, and a
long-term perspective. Our ongoing goal is to produce compelling returns
consistent with the stated objectives of our investment products, and with our
shareowners' expectations. We believe our shareowners can benefit from the
experience and tenure of our investment teams as well as the insights generated
from our extensive research process.
2 Pioneer High Yield Fund | Annual Report | 10/31/15
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
November 2, 2015
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer High Yield Fund | Annual Report | 10/31/15 3
Portfolio Management Discussion | 10/31/15
In the following discussion, portfolio managers Tracy Wright and Andrew Feltus
discuss the factors that affected the performance of Pioneer High Yield Fund
during the 12-month period ended October 31, 2015. Ms. Wright, lead portfolio
manager of the Fund, a senior vice president and a portfolio manager at Pioneer,
and Mr. Feltus, Director of High Yield and Bank Loans, a senior vice president
and a portfolio manager at Pioneer, are responsible for the day-to-day
management of the Fund.
Q How did the Fund perform during the 12-month period ended October 31, 2015?
A Pioneer High Yield Fund's Class A shares returned -2.97% at net asset value
during the 12-month period ended October 31, 2015, while the Fund's
benchmarks, the Bank of America Merrill Lynch (BofA ML) High Yield Master
II Index and the BofA ML All-Convertibles Speculative Quality Index,
returned -2.05% and -6.18% respectively. During the same period, the
average return of the 656 mutual funds in Lipper's High Yield Funds
category was -2.24%, and the average return of the 773 mutual funds in
Morningstar's High Yield Bond Funds category was -2.09%.
Q Could you please describe the market environment for high-yield bonds
during the 12-month period ended October 31, 2015?
A The period saw substantial volatility in the high-yield market as global
growth concerns, a collapse in commodity prices, and speculation over the
U.S. Federal Reserve System's (the Fed's) future monetary policies dampened
investor sentiment. U.S. economic growth remained reasonably strong,
although reported results for export-focused companies were negatively
affected by deteriorating overseas demand and a strong U.S. dollar. Despite
an improved domestic employment picture, upward pressure on wages was
minimal, which helped keep inflation below the Fed's target rate. As a
result, the Fed maintained a patient stance throughout the period with
regard to the initiation of an interest-rate tightening cycle.
As the period began in November 2014, central banks in Europe and Japan
were grappling with policy measures aimed at averting the prospect of
outright deflationary conditions in their respective economies. At the same
time, financial markets were struggling to digest the accelerating,
downward trend in crude oil prices that had begun around the fourth quarter
of 2014. Falling oil prices were driven by an excess of supply, while
prices of other commodities were weak due to slowing economic growth in
China and a weakening overall global demand outlook. While providing a
boost to the U.S. consumer in the form of lower gasoline and home heating
4 Pioneer High Yield Fund | Annual Report | 10/31/15
costs, the sharp decline in oil prices undermined fiscal conditions in a
number of emerging markets countries, including Russia, thus adding to an
already growing number of geopolitical risks.
Given the multiple areas of concern, investors' risk-aversion levels rose.
That led to a downturn in the performance of high-yield bonds and other
credit-sensitive areas of the fixed-income market. Energy-related
securities - which make up the largest component of the high-yield market -
performed especially poorly.
After cratering in late January, oil prices appeared to stabilize as the
first half of 2015 progressed, helping the high-yield market recover some
of the ground it had lost towards the end of 2014 and beginning of 2015.
After that brief recovery, however, oil prices began to drop again around
the middle of June, and continued to do so throughout the remainder of the
12-month period ended October 31, 2015. In addition, the latter part of the
period saw headlines become dominated by growing unease over slowing
economic growth in China and the implications that could have for the
global economy; then, the August devaluation of China's currency, the yuan,
raised the possibility of further global currency devaluations and spurred
dramatic spikes in both equity and fixed-income market volatility.
Against that backdrop of heightened uncertainty about global economic
conditions, high-yield bonds in aggregate, as measured by the BofA ML High
Yield Master II Index, finished the period in negative territory (-2.05%),
with energy-related issues experiencing double-digit declines.
Q Can you review the principal investment strategies you employed in managing
the Fund during the 12-month period ended October 31, 2015, and discuss the
degree to which those strategies contributed to or detracted from
benchmark-relative returns?
A The performance of the Fund's core portfolio allocation to high-yield bonds
lagged the benchmark's negative return during the period, with the relative
underperformance principally driven by exposure to energy-related issues.
While we maintained a more or less benchmark-neutral allocation to energy
in the Fund's portfolio, security selection within the sector was
unfavorable. Specifically, the portfolio's tilt toward exploration &
production companies (such as Linn Energy, Halcon Resources, and Penn
Virginia), whose fortunes are closely tied to the price of oil, and a
corresponding underweight to pipeline companies with more stable revenues,
were the main detractors from the Fund's benchmark-relative returns during
the period.
Outside of the Fund's positioning in energy, most of the investment themes
within the portfolio worked out well during the period. In particular, we
maintained non-benchmark allocations to convertible bonds and equities,
with a focus on sectors that are not well represented in the high-yield
bond
Pioneer High Yield Fund | Annual Report | 10/31/15 5
market, or where we had seen better valuations than those available within
high yield. That strategy added to the Fund's benchmark-relative results
over the 12 months, driven largely by strong security selection within
convertibles, though the outperformance of equities, in general, versus
high-yield bonds also contributed positively to relative returns.
Within the convertibles/equity portfolio allocations, we have been
attracted to health care issuers because we view the sector as positioned
to benefit from both increased utilization in the wake of the government's
Affordable Care Act, and from secular growth based on favorable demographic
trends. In addition, valuations within the group have been supported by
significant merger-and-acquisition activity. The Fund's exposure to health
care was the leading positive contributor to relative performance during
the period. Most notably, holdings of the common stock of insurers Aetna
and Cigna aided benchmark-relative returns, as both companies announced
merger plans: Aetna with Humana, and Cigna with Anthem. Also in health
care, the Fund's positions in the common stock of Cubist Pharmaceuticals
and the convertible securities of Salix Pharmaceuticals benefited relative
results. Mergers, once again, drove strong performance as both companies
were acquired by other pharmaceutical firms during the period.
Outside of health care, the Fund's benchmark-relative returns received
boosts from positions in the convertible securities of ON Semiconductor,
and the common stock of coffee chain Starbucks.
With regard to sector weights, we maintained an underweight portfolio
exposure to the basic materials sector, which includes such industries as
metals & mining, forestry, fertilizer and chemicals. The positioning in
basic materials added to the Fund's performance relative to the benchmark,
as the sector was negatively affected by slowing global economic growth and
weakening demand for commodities. During the period, we also maintained a
Fund position in event-linked (or "catastrophe") bonds, which are issued by
insurers seeking to mitigate the risk of having to pay claims based on a
specific triggering event, normally a natural disaster of some kind. In
addition to providing attractive income, catastrophe bonds are uncorrelated
to the broader high-yield market and thus can be a valuable source of
diversification*. The Fund's position in catastrophe bonds added notably to
benchmark-relative performance over the 12-month period.
From the perspective of portfolio quality, the Fund benefited from below-
benchmark exposure to lower-quality, CCC-rated issues, given the largely
"risk-off" environment experienced in the high-yield market over the 12
months. On the downside, the portfolio's underweight to BB-rated
* Diversification does not assure a profit nor protect against loss.
6 Pioneer High Yield Fund | Annual Report | 10/31/15
issues, which outperformed the overall high-yield market, hurt the Fund's
benchmark-relative results. We have continued to underweight the Fund in
BB-rated issues versus the benchmark. One reason for the positioning is our
constructive view of the credit environment, but we also believe prices of
higher-quality bonds are likely to be more affected by an upward move in
interest rates than prices of lower-quality bonds, given that current
spreads for higher-quality securities are tighter. (Credit spreads are
commonly defined as the differences in yield between Treasuries and other
types of fixed-income securities with similar maturities.)
Q Can you discuss the factors that affected the Fund's income-generation (or
yield), either positively or negatively, during the 12-month period ended
October 31, 2015?
A The Fund's income generation and yield provided to shareholders was
relatively stable over the 12-month period. The portfolio's positions in
convertible securities and common stocks resulted in a lower overall yield
compared with that of a portfolio comprised entirely of high-yield bonds;
however, we regard the allocations to convertibles and equities as helpful
with respect to improving the Fund's total return profile.
Q What role did derivatives play in the Fund's investment process and results
during the 12-month period ended October 31, 2015?
A During the period, we utilized credit-default-swap indices in order to
maintain the desired level of portfolio exposure to the high-yield market,
while also seeking to maintain sufficient liquidity to make opportunistic
investment purchases, and to help meet any unanticipated shareholder
redemptions. The strategy had a modest, positive effect on the Fund's
performance.
Q What is your assessment of the current climate for high-yield investing?
A Despite muted economic activity overseas and persistent geopolitical
uncertainties, we continue to have a positive outlook for both the U.S.
economy and overall corporate credit fundamentals. The average default rate
for high-yield bonds has remained between 1% and 2%, well below historical
averages. We think it likely that defaults will pick-up to a certain degree
over the coming quarters, but we expect the default rate to remain below
the long-term trend. We will be closely monitoring factors that could have
the potential to influence the direction of oil prices as we evaluate the
Fund's positioning with respect to energy-related issuers.
Given recent improvements in the U.S. employment picture, a hike in
interest rates by the Fed in the near future once again appears to be back
on the table. While the expectation is that the coming rate-hike cycle will
be
Pioneer High Yield Fund | Annual Report | 10/31/15 7
gradual and measured in nature, it would not be surprising to see more
rate-sensitive areas of the bond market react strongly to an increase in
the Federal funds rate. On balance, we view current conditions as
supportive of both credit-market sentiment and high-yield securities as an
asset class, and we believe the Fund's portfolio is positioned accordingly.
Please refer to the Schedule of Investments on pages 17-43 for a full listing of
Fund securities.
Investments in high-yield or lower-rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
When interest rates rise, the prices of fixed income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The portfolio may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
8 Pioneer High Yield Fund | Annual Report | 10/31/15
Portfolio Summary | 10/31/15
Portfolio Diversification*
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Corporate Bonds 56.2%
Convertible Corporate Bonds 12.4%
International Corporate Bonds 9.2%
U.S. Common Stocks 6.7%
Senior Secured Loans 6.3%
Collateralized Mortgage Obligations 2.1%
U.S. Preferred Stocks 1.7%
U.S. Government Securities 1.6%
Convertible Preferred Stocks 1.6%
Temporary Cash Investment 1.0%
Asset Backed Securities 0.8%
International Common Stocks 0.3%
International Preferred Stocks 0.1%
* Includes investments in Insurance-Linked Securities totaling 4.9% of total
investment portfolio.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)**
1. Sprint Corp., 7.25%, 9/15/21 1.57%
--------------------------------------------------------------------------------
2. Crown Cork & Seal Co., Inc., 7.375%, 12/15/26 1.20
--------------------------------------------------------------------------------
3. HCA, Inc., 5.375%, 2/1/25 1.19
--------------------------------------------------------------------------------
4. Sealy Corp., 8.0%, 7/15/16 (4.0% cash, 4.0% PIK) (PIK) (e) 1.06
--------------------------------------------------------------------------------
5. Scientific Games International, Inc., 10.0%, 12/1/22 1.06
--------------------------------------------------------------------------------
6. CHS, Inc., 8.0%, 11/15/19 1.00
--------------------------------------------------------------------------------
7. Ford Motor Co. 0.88
--------------------------------------------------------------------------------
8. CCO Holdings LLC, 6.5%, 4/30/21 0.82
--------------------------------------------------------------------------------
9. Frontier Communications Corp., 8.5%, 4/15/20 0.81
--------------------------------------------------------------------------------
10. Nationstar Mortgage LLC, 6.5%, 7/1/21 0.80
--------------------------------------------------------------------------------
** This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
Pioneer High Yield Fund | Annual Report | 10/31/15 9
Prices and Distributions | 10/31/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/15 10/31/14
--------------------------------------------------------------------------------
A $9.33 $10.54
--------------------------------------------------------------------------------
C $9.52 $10.74
--------------------------------------------------------------------------------
R $10.53 $11.84
--------------------------------------------------------------------------------
Y $9.34 $10.55
--------------------------------------------------------------------------------
Distributions per Share: 11/1/14-10/31/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.4471 $0.0657 $0.4050
--------------------------------------------------------------------------------
C $0.3831 $0.0657 $0.4050
--------------------------------------------------------------------------------
R $0.4668 $0.0657 $0.4050
--------------------------------------------------------------------------------
Y $0.4752 $0.0657 $0.4050
--------------------------------------------------------------------------------
Index Definitions
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The Bank of America (BofA) Merrill Lynch (ML) High Yield Master II Index is an
unmanaged, commonly accepted measure of the performance of high-yield
securities. The Bank of America (BofA) Merrill Lynch (ML) All-Convertibles
Speculative Quality Index is an unmanaged index of high-yield U.S. convertible
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike fund returns, do not reflect any fees, expense 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 the
"Value of $5 Million Investment" charts on pages 11-14.
10 Pioneer High Yield Fund | Annual Report | 10/31/15
Performance Update | 10/31/15 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer 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 and the Bank of America (BofA)
Merrill Lynch (ML) All-Convertibles Speculative Quality Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Net Public BofA ML BofA ML All-
Asset Offering High Yield Convertibles
Value Price Master II Speculative
Period (NAV) (POP) Index Quality Index
--------------------------------------------------------------------------------
10 Years 6.17% 5.68% 7.48% 7.14%
5 Years 5.55 4.57 6.01 7.04
1 Year -2.97 -7.37 -2.05 -6.18
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.15%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High BofA ML High Yield BofA ML All-Convertibles
Yield Fund Master II Index Speculative Quality Index
10/05 $ 9,550 $ 10,000 $ 10,000
10/06 $ 10,500 $ 11,034 $ 11,706
10/07 $ 11,875 $ 11,789 $ 13,486
10/08 $ 8,042 $ 8,663 $ 7,157
10/09 $ 11,081 $ 12,890 $ 11,223
10/10 $ 13,260 $ 15,368 $ 14,186
10/11 $ 13,684 $ 16,112 $ 14,274
10/12 $ 15,279 $ 18,236 $ 15,671
10/13 $ 17,345 $ 19,846 $ 19,186
10/14 $ 17,904 $ 21,007 $ 21,250
10/15 $ 17,371 $ 20,576 $ 19,937
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. POP
returns reflect deduction of maximum 4.50% sales charge. NAV returns would have
been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer High Yield Fund | Annual Report | 10/31/15 11
Performance Update | 10/31/15 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer High Yield Fund during the periods
shown, compared to that of the Bank of America (BofA) Merrill Lynch (ML) High
Yield Master II Index and the Bank of America (BofA) Merrill Lynch (ML)
All-Convertibles Speculative Quality Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
BofA ML BofA ML All-
High Yield Convertibles
If If Master II Speculative
Period Held Redeemed Index Quality Index
--------------------------------------------------------------------------------
10 Years 5.45% 5.45% 7.48% 7.14%
5 Years 4.84 4.84 6.01 7.04
1 Year -3.64 -3.64 -2.05 -6.18
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.83%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High BofA ML High Yield BofA ML All-Convertibles
Yield Fund Master II Index Speculative Quality Index
10/05 $ 10,000 $ 10,000 $ 10,000
10/06 $ 10,923 $ 11,034 $ 11,706
10/07 $ 12,272 $ 11,789 $ 13,486
10/08 $ 8,250 $ 8,663 $ 7,157
10/09 $ 11,303 $ 12,890 $ 11,223
10/10 $ 13,427 $ 15,368 $ 14,186
10/11 $ 13,774 $ 16,112 $ 14,274
10/12 $ 15,269 $ 18,236 $ 15,671
10/13 $ 17,233 $ 19,846 $ 19,186
10/14 $ 17,649 $ 21,007 $ 21,250
10/15 $ 17,006 $ 20,576 $ 19,937
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.
12 Pioneer High Yield Fund | Annual Report | 10/31/15
Performance Update | 10/31/15 Class R Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class R shares of Pioneer High Yield Fund during the periods
shown, compared to that of the Bank of America (BofA) Merrill Lynch (ML) High
Yield Master II Index and the Bank of America (BofA) Merrill Lynch (ML)
All-Convertibles Speculative Quality Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Net BofA ML BofA ML All-
Asset High Yield Convertibles
Value Master II Speculative
Period (NAV) Index Quality Index
--------------------------------------------------------------------------------
10 Years 5.88% 7.48% 7.14%
--------------------------------------------------------------------------------
5 Years 5.20 6.01 7.04
--------------------------------------------------------------------------------
1 Year -3.36% -2.05 -6.18
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.49%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High BofA ML High Yield BofA ML All-Convertibles
Yield Fund Master II Index Speculative Quality Index
10/05 $ 10,000 $ 10,000 $ 10,000
10/06 $ 10,967 $ 11,034 $ 11,706
10/07 $ 12,367 $ 11,789 $ 13,486
10/08 $ 8,365 $ 8,663 $ 7,157
10/09 $ 11,521 $ 12,890 $ 11,223
10/10 $ 13,747 $ 15,368 $ 14,186
10/11 $ 14,164 $ 16,112 $ 14,274
10/12 $ 15,738 $ 18,236 $ 15,671
10/13 $ 17,821 $ 19,846 $ 19,186
10/14 $ 18,324 $ 21,007 $ 21,250
10/15 $ 17,709 $ 20,576 $ 19,937
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 R shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer High Yield Fund | Annual Report | 10/31/15 13
Performance Update | 10/31/15 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer High Yield Fund, during the periods
shown, compared to that of the Bank of America (BofA) Merrill Lynch (ML) High
Yield Master II Index and the Bank of America (BofA) Merrill Lynch (ML)
All-Convertibles Speculative Quality Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Net BofA ML BofA ML All-
Asset High Yield Convertibles
Value Master II Speculative
Period (NAV) Index Quality Index
--------------------------------------------------------------------------------
10 Years 6.61% 7.48% 7.14%
5 Years 5.90 6.01 7.04
1 Year -2.69 -2.05 -6.18
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.84%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer High BofA ML High Yield BofA ML All-Convertibles
Yield Fund Master II Index Speculative Quality Index
10/05 $ 5,000,000 $ 5,000,000 $ 5,000,000
10/06 $ 5,521,274 $ 5,516,951 $ 5,853,176
10/07 $ 6,265,456 $ 5,894,681 $ 6,742,802
10/08 $ 4,273,487 $ 4,331,582 $ 3,578,702
10/09 $ 5,922,451 $ 6,444,824 $ 5,611,615
10/10 $ 7,116,229 $ 7,683,840 $ 7,092,920
10/11 $ 7,368,839 $ 8,056,199 $ 7,136,991
10/12 $ 8,254,562 $ 9,118,038 $ 7,835,318
10/13 $ 9,408,010 $ 9,922,881 $ 9,592,871
10/14 $ 9,741,628 $ 10,503,401 $ 10,625,050
10/15 $ 9,479,388 $ 10,287,908 $ 9,968,259
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14 Pioneer High Yield Fund | Annual Report | 10/31/15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer High Yield Fund
Based on actual returns from May 1, 2015, through October 31, 2015.
--------------------------------------------------------------------------------
Share Class A C R Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/15
--------------------------------------------------------------------------------
Ending Account $ 949.88 $ 946.75 $ 947.45 $ 952.25
Value (after expenses)
on 10/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 5.75 $ 9.27 $ 7.41 $ 4.33
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.17%, 1.89%,
1.51%, and 0.88% for class A, C, R and Y shares, respectively, multiplied
by the average account value over the period, multiplied by 184/365 (to
reflect the one-half period).
Pioneer High Yield Fund | Annual Report | 10/31/15 15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer High Yield Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2015, through October 31, 2015.
--------------------------------------------------------------------------------
Share Class A C R Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/15
--------------------------------------------------------------------------------
Ending Account $1,019.31 $1,015.68 $1,017.59 $1,020.77
Value (after expenses)
on 10/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 5.96 $ 9.60 $ 7.68 $ 4.48
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.17%, 1.89%,
1.51%, and 0.88% for class A, C, R and Y shares, respectively, multiplied
by the average account value over the period, multiplied by 184/365 (to
reflect the one-half year period).
16 Pioneer High Yield Fund | Annual Report | 10/31/15
Schedule of Investments | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 11.7%
ENERGY -- 0.8%
Oil & Gas Equipment & Services -- 0.2%
2,170,000 SEACOR Holdings, Inc., 3.0%, 11/15/28 $ 1,767,194
------------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.0%+
3,423,887 American Energy - Utica LLC, 3.5%
(3.50% Cash, 0.00% PIK), 3/1/21 (144A) (PIK) $ 211,853
------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.6%
6,440,000 Cobalt International Energy, Inc., 2.625%,
12/1/19 $ 4,636,800
3,120,000 Whiting Petroleum Corp., 1.25%, 4/1/20 (144A) 2,747,550
-----------------
$ 7,384,350
------------------------------------------------------------------------------------------------------
Coal & Consumable Fuels -- 0.0%+
4,705,000 Alpha Natural Resources, Inc., 3.75%,
12/15/17 (e) $ 141,150
-----------------
Total Energy $ 9,504,547
------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 1.1%
Aerospace & Defense -- 0.1%
1,150,000 The KEYW Holding Corp., 2.5%, 7/15/19 $ 913,531
------------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.2%
3,150,000 Dycom Industries, Inc., 0.75%, 9/15/21 (144A) $ 3,272,062
------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.8%
10,874,000 General Cable Corp., 4.5%, 11/15/29 (Step) $ 7,428,301
3,725,000 SolarCity Corp., 1.625%, 11/1/19 2,584,219
-----------------
$ 10,012,520
-----------------
Total Capital Goods $ 14,198,113
------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.5%
Homebuilding -- 1.0%
6,160,000 KB Home, 1.375%, 2/1/19 $ 5,663,350
3,015,000 Lennar Corp., 2.75%, 12/15/20 (144A) 6,802,594
-----------------
$ 12,465,944
------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 0.5%
5,470,000 Jarden Corp., 1.125%, 3/15/34 $ 6,030,675
-----------------
Total Consumer Durables & Apparel $ 18,496,619
------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.3%
Specialized Consumer Services -- 0.3%
2,710,000 Ascent Capital Group, Inc., 4.0%, 7/15/20 $ 1,830,944
2,195,000 Carriage Services, Inc., 2.75%, 3/15/21 2,417,244
-----------------
$ 4,248,188
-----------------
Total Consumer Services $ 4,248,188
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 17
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
MEDIA -- 0.4%
Broadcasting -- 0.4%
4,425,000 Liberty Media Corp., 1.375%, 10/15/23 $ 4,527,328
-----------------
Total Media $ 4,527,328
------------------------------------------------------------------------------------------------------
RETAILING -- 0.3%
Internet Retail -- 0.3%
4,455,000 Shutterfly, Inc., 0.25%, 5/15/18 $ 4,262,878
-----------------
Total Retailing $ 4,262,878
------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.2%
Health Care Equipment -- 0.7%
3,985,000 Insulet Corp., 2.0%, 6/15/19 $ 3,820,619
1,746,000 NuVasive, Inc., 2.75%, 7/1/17 2,192,321
2,610,000 Wright Medical Group, Inc., 2.0%,
2/15/20 (144A) 2,466,450
-----------------
$ 8,479,390
------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.5%
2,500,000 Alere, Inc., 3.0%, 5/15/16 $ 2,776,562
2,015,000 Endologix, Inc., 2.25%, 12/15/18 1,669,931
1,390,000 Endologix, Inc., 2.75%, 11/1/20 1,398,688
935,000 Quidel Corp., 3.25%, 12/15/20 884,744
-----------------
$ 6,729,925
-----------------
Total Health Care Equipment & Services $ 15,209,315
------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 2.8%
Biotechnology -- 1.7%
1,920,000 BioMarin Pharmaceutical, Inc., 1.5%, 10/15/20 $ 2,786,400
3,380,000 Cepheid, 1.25%, 2/1/21 3,029,325
6,697,000 Emergent BioSolutions, Inc., 2.875%, 1/15/21 8,228,939
1,420,000 Immunomedics, Inc., 4.75%, 2/15/20 (144A) 1,151,975
2,520,000 Ironwood Pharmaceuticals, Inc., 2.25%,
6/15/22 (144A) 2,357,775
4,538,000 PDL BioPharma, Inc., 4.0%, 2/1/18 3,775,049
-----------------
$ 21,329,463
------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 1.1%
3,725,000 Impax Laboratories, Inc., 2.0%, 6/15/22 (144A) $ 3,427,000
2,050,000 Jazz Investments I, Ltd., 1.875%, 8/15/21 2,174,281
2,625,000 The Medicines Co., 2.5%, 1/15/22 (144A) 3,199,219
7,215,000 Theravance, Inc., 2.125%, 1/15/23 5,226,366
-----------------
$ 14,026,866
-----------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 35,356,329
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Yield Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 2.6%
Internet Software & Services -- 1.0%
2,055,000 Twitter, Inc., 0.25%, 9/15/19 $ 1,821,244
5,145,000 WebMD Health Corp., 1.5%, 12/1/20 5,328,291
5,995,000 WebMD Health Corp., 2.5%, 1/31/18 6,013,734
-----------------
$ 13,163,269
------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.5%
6,345,000 Cardtronics, Inc., 1.0%, 12/1/20 $ 6,011,888
------------------------------------------------------------------------------------------------------
Application Software -- 1.0%
5,815,000 Mentor Graphics Corp., 4.0%, 4/1/31 $ 7,977,453
2,509,000 Nuance Communications, Inc., 1.5%, 11/1/35 2,637,586
1,665,000 Synchronoss Technologies, Inc., 0.75%, 8/15/19 1,697,259
-----------------
$ 12,312,298
------------------------------------------------------------------------------------------------------
Systems Software -- 0.1%
595,000 FireEye, Inc., 1.0%, 6/1/35 (144A) $ 514,675
595,000 FireEye, Inc., 1.625%, 6/1/35 (144A) 501,659
800,000 Proofpoint, Inc., 0.75%, 6/15/20 (144A) 897,000
-----------------
$ 1,913,334
-----------------
Total Software & Services $ 33,400,789
------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.2%
Communications Equipment -- 0.2%
2,595,000 Brocade Communications Systems, Inc.,
1.375%, 1/1/20 (144A) $ 2,551,209
-----------------
Total Technology Hardware & Equipment $ 2,551,209
------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.5%
Semiconductor Equipment -- 0.2%
2,605,000 SunEdison, Inc., 2.625%, 6/1/23 (144A) $ 1,212,953
2,400,000 SunEdison, Inc., 3.375%, 6/1/25 (144A) 1,113,000
-----------------
$ 2,325,953
------------------------------------------------------------------------------------------------------
Semiconductors -- 0.3%
4,480,000 ON Semiconductor Corp., 1.0%, 12/1/20 (144A) $ 4,401,600
-----------------
Total Semiconductors & Semiconductor
Equipment $ 6,727,553
------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $161,093,931) $ 148,482,868
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 19
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 1.9%
TRANSPORTATION -- 0.2%
Air Freight & Logistics -- 0.2%
4,940 CEVA Group Plc, 0.0%, 12/31/14 (e)* $ 2,223,022
-----------------
Total Transportation $ 2,223,022
------------------------------------------------------------------------------------------------------
BANKS -- 0.6%
Diversified Banks -- 0.6%
279,760 7.12 Citigroup, Inc., Floating Rate Note (Perpetual) $ 7,712,983
-----------------
Total Banks $ 7,712,983
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.0%
Consumer Finance -- 1.0%
3,225 Ally Financial, Inc., 7.0% (Perpetual) (144A) $ 3,302,904
358,975 8.12 GMAC Capital Trust I, Floating Rate Note, 2/15/40 9,272,324
-----------------
$ 12,575,228
------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.0%+
2,817 6.38 Morgan Stanley, Floating Rate Note (Perpetual) $ 72,960
-----------------
Total Diversified Financials $ 12,648,188
------------------------------------------------------------------------------------------------------
INSURANCE -- 0.0%+
Reinsurance -- 0.0%+
33,500 Lorenz Re, Ltd., Variable Rate Notes,
(Perpetual)* (f) $ 83,750
-----------------
Total Insurance $ 83,750
------------------------------------------------------------------------------------------------------
UTILITIES -- 0.1%
Electric Utilities -- 0.1%
34,958 PPL Capital Funding, Inc., 5.9%, 4/30/73 $ 885,836
-----------------
Total Utilities $ 885,836
------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $24,763,627) $ 23,553,779
------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 1.6%
ENERGY -- 0.0%+
Oil & Gas Exploration & Production -- 0.0%+
715 Halcon Resources Corp., 0.0% (Perpetual) $ 91,341
33,162 SandRidge Energy, Inc., 7.0% (Perpetual) 207,262
-----------------
$ 298,603
-----------------
Total Energy $ 298,603
------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.0%
Home Furnishings -- 1.0%
143,000 8.00 Sealy Corp., 8.0%, 7/15/16 (4.0% cash, 4.0%
PIK) (PIK) (e) $ 12,627,872
-----------------
Total Consumer Durables & Apparel $ 12,627,872
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Yield Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Health Care Equipment & Services -- 0.3%
HEALTH CARE SERVICES -- 0.0%+
742 BioScrip, Inc.* (c) $ 58,827
------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.2%
6,508 Alere, Inc., 3.0% (Perpetual) $ 2,057,342
------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.1%
1,725 Kindred Healthcare, Inc., 7.5%, 12/1/17 $ 1,302,513
-----------------
Total Health Care Equipment & Services $ 3,418,682
------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.1%
Pharmaceuticals -- 0.1%
1,400 Allergan plc, 5.5%, 3/1/18 $ 1,465,282
-----------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 1,465,282
------------------------------------------------------------------------------------------------------
BANKS -- 0.2%
Diversified Banks -- 0.2%
2,000 Wells Fargo & Co., 7.5% (Perpetual) $ 2,370,000
-----------------
Total Banks $ 2,370,000
------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $20,890,588) $ 20,180,439
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
Shares
------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 6.8%
ENERGY -- 0.5%
Oil & Gas Exploration & Production -- 0.3%
2,301,661 Halcon Resources Corp.* $ 1,613,695
137,800 Marathon Oil Corp. 2,532,764
62,696 SandRidge Energy, Inc.* 23,216
-----------------
$ 4,169,675
------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.2%
39,932 Marathon Petroleum Corp.* $ 2,068,478
-----------------
Total Energy $ 6,238,153
------------------------------------------------------------------------------------------------------
MATERIALS -- 0.6%
Commodity Chemicals -- 0.6%
127,734 Axiall Corp. $ 2,586,614
51,171 LyondellBasell Industries NV 4,754,298
-----------------
$ 7,340,912
-----------------
Total Materials $ 7,340,912
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 21
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.7%
Aerospace & Defense -- 0.2%
22,814 Orbital ATK, Inc. $ 1,953,335
------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.0%+
40,825 General Cable Corp. $ 628,297
------------------------------------------------------------------------------------------------------
Construction & Farm Machinery &
Heavy Trucks -- 0.2%
482,433 Commercial Vehicle Group, Inc.* $ 2,006,921
36,133 Joy Global, Inc. 620,765
-----------------
$ 2,627,686
------------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.3%
131,756 Kennametal, Inc. $ 3,704,979
73,714 Liberty Tire Recycling LLC (c) 737
-----------------
$ 3,705,716
-----------------
Total Capital Goods $ 8,915,034
------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.0%+
Diversified Support Services -- 0.0%+
53 IAP Worldwide Services, Inc. $ 74,221
-----------------
Total Commercial Services & Supplies $ 74,221
------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.4%
Air Freight & Logistics -- 0.1%
2,282 CEVA Group Plc* $ 1,026,927
------------------------------------------------------------------------------------------------------
Airlines -- 0.3%
75,364 United Continental Holdings, Inc.* $ 4,545,203
-----------------
Total Transportation $ 5,572,130
------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.8%
Automobile Manufacturers -- 0.8%
704,311 Ford Motor Co. $ 10,430,846
-----------------
Total Automobiles & Components $ 10,430,846
------------------------------------------------------------------------------------------------------
Consumer Services -- 0.3%
RESTAURANTS -- 0.3%
58,543 Starbucks Corp. $ 3,663,036
------------------------------------------------------------------------------------------------------
Education Services -- 0.0%+
13,966 Cengage Learning Holdings II, Inc. $ 338,676
-----------------
Total Consumer Services $ 4,001,712
------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.7%
Health Care Services -- 0.1%
255,259 BioScrip, Inc.* $ 502,860
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Yield Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.6%
29,704 Aetna, Inc. $ 3,409,425
32,251 Cigna Corp. 4,322,924
-----------------
$ 7,732,349
-----------------
Total Health Care Equipment & Services $ 8,235,209
------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.8%
Pharmaceuticals -- 0.1%
27,566 Mylan NV $ 1,215,385
------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.7%
14,198 Bio-Rad Laboratories, Inc.* $ 1,980,337
54,880 Thermo Fisher Scientific, Inc. 7,177,206
-----------------
$ 9,157,543
-----------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 10,372,928
------------------------------------------------------------------------------------------------------
BANKS -- 0.1%
Diversified Banks -- 0.1%
19,287 JPMorgan Chase & Co. $ 1,239,190
-----------------
Total Banks $ 1,239,190
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Consumer Finance -- 0.1%
14,940 Capital One Financial Corp. $ 1,178,766
-----------------
Total Diversified Financials $ 1,178,766
------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.9%
Specialized REIT -- 0.2%
117,160 Communications Sales & Leasing, Inc. $ 2,353,744
------------------------------------------------------------------------------------------------------
Real Estate Operating Companies -- 0.7%
379,245 Forest City Enterprises, Inc.* $ 8,381,314
-----------------
Total Real Estate $ 10,735,058
------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.9%
Computer Storage & Peripherals -- 0.2%
103,800 EMC Corp. $ 2,721,636
------------------------------------------------------------------------------------------------------
Technology Hardware, Storage &
Peripherals -- 0.4%
171,011 NCR Corp.* $ 4,548,893
------------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.3%
54,309 TE Connectivity, Ltd. $ 3,499,672
-----------------
Total Technology Hardware & Equipment $ 10,770,201
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 23
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------------
Telecommunication Services -- 0.0%+
Integrated Telecommunication Services -- 0.0%+
87,633 Windstream Holdings, Inc. $ 570,491
-----------------
Total Telecommunication Services $ 570,491
------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $64,637,148) $ 85,674,851
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited)
------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 0.1%
CONSUMER SERVICES -- 0.0%+
Hotels, Resorts & Cruise Lines -- 0.0%+
246,268 Westgate Resorts 2012-A LLC, 3.75%,
8/20/25 (144A) $ 248,491
-----------------
Total Consumer Services $ 248,491
------------------------------------------------------------------------------------------------------
BANKS -- 0.1%
Thrifts & Mortgage Finance -- 0.1%
1,000,000 VOLT XXV LLC, 4.5%, 6/26/45 (Step) (144A) $ 977,634
-----------------
Total Banks $ 977,634
------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $1,227,314) $ 1,226,125
------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 2.0%
BANKS -- 2.0%
Thrifts & Mortgage Finance -- 2.0%
2,000,000 5.97 Banc of America Commercial Mortgage
Trust 2007-5, Floating Rate Note, 2/10/51 $ 2,059,994
1,150,000 5.90 Bear Stearns Commercial Mortgage
Securities Trust 2007-PWR16, Floating Rate
Note, 6/11/40 (144A) 1,141,166
1,475,000 4.80 CFCRE 2015-RUM Mortgage Trust, Floating
Rate Note, 7/15/30 (144A) 1,476,540
2,500,000 3.21 Citigroup Commercial Mortgage Trust 2014-GC23
REMICS, Floating Rate Note, 7/12/47 (144A) 1,629,802
2,750,000 5.96 COBALT CMBS Commercial Mortgage Trust
2007-C3, Floating Rate Note, 5/15/46 2,608,816
595,000 5.96 COBALT CMBS Commercial Mortgage Trust
2007-C3, Floating Rate Note, 5/15/46 538,623
2,650,000 3.70 COMM 2014-KYO Mortgage Trust, Floating Rate
Note, 6/11/27 (144A) 2,611,675
3,000,000 4.90 CSMC Trust 2015-SAND, Floating Rate Note,
8/15/30 (144A) 3,000,455
663,936 Global Mortgage Securitization, Ltd., 5.25%,
11/25/32 (144A) 516,351
2,513,900 5.00 GMAT 2013-1 Trust, Floating Rate Note, 11/25/43 2,399,584
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Yield Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
2,000,000 4.94 GS Mortgage Securities Corp II Series 2005-GG4,
Floating Rate Note, 7/10/39 $ 1,959,265
772,454 Homeowner Assistance Program Reverse
Mortgage Loan Trust 2013-RM1, 4.0%,
5/26/53 (144A) 760,134
4,270,000 3.80 JPMorgan Chase Commercial Mortgage
Securities Trust 2014-INN, Floating Rate
Note, 6/15/29 (144A) 4,238,375
400,000 5.58 Springleaf Mortgage Loan Trust 2013-1,
Floating Rate Note, 6/25/58 (144A) 401,755
-----------------
$ 25,342,535
-----------------
Total Banks $ 25,342,535
------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $25,642,240) $ 25,342,535
------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 61.9%
ENERGY -- 10.0%
Oil & Gas Drilling -- 0.0%+
1,690,000 Offshore Group Investment, Ltd., 7.5%, 11/1/19 $ 496,438
------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.5%
5,175,000 Exterran Partners LP, 6.0%, 10/1/22 $ 4,372,875
1,850,000 Exterran Partners LP, 6.0%, 4/1/21 1,600,250
1,545,000 Key Energy Services, Inc., 6.75%, 3/1/21 494,400
-----------------
$ 6,467,525
------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 6.6%
2,360,000 Antero Resources Corp., 6.0%, 12/1/20 $ 2,265,600
1,595,000 Carrizo Oil & Gas, Inc., 7.5%, 9/15/20 1,591,012
2,945,000 Chaparral Energy, Inc., 8.25%, 9/1/21 1,001,300
6,590,000 Chesapeake Energy Corp., 5.375%, 6/15/21 4,267,025
668,000 Comstock Resources, Inc., 9.5%, 6/15/20 146,960
3,675,000 Concho Resources, Inc., 5.5%, 4/1/23 3,693,375
2,925,000 Concho Resources, Inc., 6.5%, 1/15/22 3,031,031
4,670,000 Denbury Resources, Inc., 5.5%, 5/1/22 3,269,000
7,215,000 EP Energy LLC, 9.375%, 5/1/20 6,277,050
5,205,000 EPL Oil & Gas, Inc., 8.25%, 2/15/18 1,639,575
7,615,000 Gulfport Energy Corp., 7.75%, 11/1/20 7,538,850
5,605,000 Halcon Resources Corp., 8.875%, 5/15/21 1,881,178
2,470,000 Hilcorp Energy I LP, 5.75%, 10/1/25 (144A) 2,284,750
4,975,000 Legacy Reserves LP, 6.625%, 12/1/21 3,283,500
12,635,000 Linn Energy LLC, 6.25%, 11/1/19 2,969,225
220,000 Linn Energy LLC, 7.75%, 2/1/21 50,600
4,480,000 Memorial Production Partners LP, 7.625%, 5/1/21 3,001,600
2,190,000 Midstates Petroleum Co., Inc., 9.25%, 6/1/21 394,200
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 25
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- (continued)
8,170,000 Noble Energy, Inc., 5.875%, 6/1/22 $ 8,229,453
1,005,000 Northern Oil and Gas, Inc., 8.0%, 6/1/20 831,135
2,240,000 Northern Oil and Gas, Inc., 8.0%, 6/1/20 1,852,480
4,860,000 PDC Energy, Inc., 7.75%, 10/15/22 4,884,300
2,860,000 Penn Virginia Corp., 7.25%, 4/15/19 786,500
4,480,000 Penn Virginia Corp., 8.5%, 5/1/20 1,299,200
800,000 Sanchez Energy Corp., 6.125%, 1/15/23 580,000
3,775,000 Sanchez Energy Corp., 7.75%, 6/15/21 3,001,125
5,170,000 Swift Energy Co., 7.875%, 3/1/22 1,331,275
3,200,000 Vanguard Natural Resources LLC, 7.875%, 4/1/20 1,916,000
5,200,000 Whiting Canadian Holding Co ULC, 8.125%,
12/1/19 5,239,000
1,850,000 WPX Energy, Inc., 7.5%, 8/1/20 1,729,750
2,945,000 WPX Energy, Inc., 8.25%, 8/1/23 2,768,300
-----------------
$ 83,034,349
------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.9%
6,525,000 Calumet Specialty Products Partners LP, 6.5%,
4/15/21 $ 6,068,250
4,695,000 Tesoro Corp., 5.375%, 10/1/22 4,777,162
-----------------
$ 10,845,412
------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.9%
4,810,000 Crestwood Midstream Partners LP, 6.125%,
3/1/22 $ 4,136,600
1,910,000 Crestwood Midstream Partners LP, 6.25%,
4/1/23 (144A) 1,623,500
3,220,000 Global Partners LP, 7.0%, 6/15/23 3,026,800
3,800,000 ONEOK, Inc., 7.5%, 9/1/23 3,752,500
6,775,000 Sabine Pass Liquefaction LLC, 5.625%, 2/1/21 6,724,188
4,685,000 Targa Resources Partners LP, 4.25%, 11/15/23 4,099,375
-----------------
$ 23,362,963
------------------------------------------------------------------------------------------------------
Coal & Consumable Fuels -- 0.1%
4,170,000 James River Coal Co., 7.875%, 4/1/19 (e) $ 2,168
2,250,000 SunCoke Energy Partners LP, 7.375%,
2/1/20 (144A) 1,867,500
-----------------
$ 1,869,668
-----------------
Total Energy $ 126,076,355
------------------------------------------------------------------------------------------------------
MATERIALS -- 5.4%
Commodity Chemicals -- 1.0%
1,220,000 Hexion, Inc., 6.625%, 4/15/20 $ 1,033,950
2,382,000 Hexion, Inc., 8.875%, 2/1/18 1,822,230
2,445,000 Hexion, Inc., 9.0%, 11/15/20 1,295,850
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Yield Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Commodity Chemicals -- (continued)
1,750,000 Rain CII Carbon LLC, 8.0%, 12/1/18 (144A) $ 1,523,585
5,195,000 Tronox Finance LLC, 6.375%, 8/15/20 3,699,879
4,560,000 Tronox Finance LLC, 7.5%, 3/15/22 (144A) 3,226,200
-----------------
$ 12,601,694
------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.1%
580,000 Blue Cube Spinco, Inc., 10.0%, 10/15/25
(144A) $ 629,300
580,000 Blue Cube Spinco, Inc., 9.75%, 10/15/23
(144A) 624,950
-----------------
$ 1,254,250
------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 3.3%
3,811,008 Ardagh Finance Holdings SA, 8.625%, (0.00%
Cash, 8.625% PIK) 6/15/19 (144A) (PIK) $ 3,992,031
3,350,000 Ardagh Packaging Finance Plc, 6.75%, 1/31/21
(144A) 3,433,750
758,824 Ardagh Packaging Finance Plc, 7.0%, 11/15/20
(144A) 760,721
7,100,000 Ball Corp., 5.25%, 7/1/25 7,215,375
13,120,000 Crown Cork & Seal Co., Inc., 7.375%, 12/15/26 14,317,200
7,495,000 Reynolds Group Issuer, Inc., 8.5%, 5/15/18 7,560,581
4,565,000 Reynolds Group Issuer, Inc., 9.875%, 8/15/19 4,804,662
-----------------
$ 42,084,320
------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.1%
1,595,000 Prince Mineral Holding Corp., 11.5%, 12/15/19
(144A) $ 1,339,800
------------------------------------------------------------------------------------------------------
Gold -- 0.3%
5,580,000 IAMGOLD Corp., 6.75%, 10/1/20 (144A) $ 4,212,900
------------------------------------------------------------------------------------------------------
Steel -- 0.4%
3,375,000 Cliffs Natural Resources, Inc., 8.25%, 3/31/20
(144A) $ 3,020,625
2,855,000 JMC Steel Group, Inc., 8.25%, 3/15/18 (144A) 1,941,400
-----------------
$ 4,962,025
------------------------------------------------------------------------------------------------------
Paper Products -- 0.2%
2,845,000 Resolute Forest Products, Inc., 5.875%, 5/15/23 $ 2,119,525
-----------------
Total Materials $ 68,574,514
------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 2.6%
Aerospace & Defense -- 0.3%
3,780,000 DigitalGlobe, Inc., 5.25%, 2/1/21 (144A) $ 3,400,412
------------------------------------------------------------------------------------------------------
Building Products -- 0.1%
1,750,000 Gibraltar Industries, Inc., 6.25%, 2/1/21 $ 1,802,500
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 27
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.6%
1,390,000 AECOM, 5.875%, 10/15/24 (144A) $ 1,435,175
5,795,000 Amsted Industries, Inc., 5.0%, 3/15/22 (144A) 5,852,950
-----------------
$ 7,288,125
------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.3%
4,030,000 JB Poindexter & Co., Inc., 9.0%, 4/1/22 (144A) $ 4,261,725
------------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.5%
4,901,000 Apex Tool Group LLC, 7.0%, 2/1/21 (144A) $ 3,945,305
1,550,257 Liberty Tire Recycling LLC, 11.0%, 3/31/21
(0.0% cash, 11.0% PIK) (144A) (PIK) (c) 992,164
945,000 Xerium Technologies, Inc., 8.875%, 6/15/18 963,900
-----------------
$ 5,901,369
------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.8%
5,200,000 Rexel SA, 5.25%, 6/15/20 (144A) $ 5,409,300
2,000,000 United Rentals North America, Inc., 5.75%,
11/15/24 2,030,000
2,695,000 WESCO Distribution, Inc., 5.375%, 12/15/21 2,607,412
-----------------
$ 10,046,712
-----------------
Total Capital Goods $ 32,700,843
------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.7%
Environmental & Facilities Services -- 0.1%
2,000,000 Safway Group Holding LLC, 7.0%, 5/15/18
(144A) $ 2,055,000
------------------------------------------------------------------------------------------------------
Diversified Support Services -- 0.6%
1,800,000 NANA Development Corp., 9.5%, 3/15/19 (144A) $ 1,656,000
3,695,000 The GEO Group, Inc., 5.875%, 10/15/24 3,731,950
2,165,000 TMS International Corp., 7.625%, 10/15/21
(144A) 1,980,975
-----------------
$ 7,368,925
-----------------
Total Commercial Services & Supplies $ 9,423,925
------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 1.0%
Airlines -- 0.4%
1,920,000 Air Canada, 5.00%, 3/15/20 (144A) $ 1,866,816
2,950,000 Intrepid Aviation Group Holdings LLC, 6.875%,
2/15/19 (144A) 2,562,812
-----------------
$ 4,429,628
------------------------------------------------------------------------------------------------------
Railroads -- 0.3%
4,250,000 Florida East Coast Holdings Corp., 6.75%,
5/1/19 (144A) $ 4,280,812
------------------------------------------------------------------------------------------------------
Trucking -- 0.2%
3,500,000 syncreon Group BV, 8.625%, 11/1/21 (144A) $ 2,738,750
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Yield Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Airport Services -- 0.1%
1,700,000 Aguila 3 SA, 7.875%, 1/31/18 (144A) $ 1,738,250
-----------------
Total Transportation $ 13,187,440
------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.1%
Auto Parts & Equipment -- 0.1%
1,280,000 Pittsburgh Glass Works LLC, 8.0%, 11/15/18
(144A) $ 1,333,120
-----------------
Total Automobiles & Components $ 1,333,120
------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 4.1%
Homebuilding -- 3.9%
1,590,000 Brookfield Residential Properties, Inc., 6.5%,
12/15/20 (144A) $ 1,593,975
2,540,000 CalAtlantic Group, Inc., 5.375%, 10/1/22 2,590,800
6,975,000 CalAtlantic Group, Inc., 6.25%, 12/15/21 7,550,438
4,345,000 DR Horton, Inc., 5.75%, 8/15/23 4,746,912
8,375,000 KB Home, 7.0%, 12/15/21 8,479,688
4,150,000 Lennar Corp., 4.5%, 6/15/19 4,305,625
8,730,000 Lennar Corp., 4.75%, 11/15/22 8,730,000
3,660,000 Meritage Homes Corp., 7.0%, 4/1/22 4,007,700
1,800,000 Rialto Holdings LLC, 7.0%, 12/1/18 (144A) 1,845,000
1,500,000 Shea Homes LP, 5.875%, 4/1/23 (144A) 1,569,375
3,195,000 Taylor Morrison Communities, Inc., 5.875%,
4/15/23 3,234,938
-----------------
$ 48,654,451
------------------------------------------------------------------------------------------------------
Textiles -- 0.2%
2,920,000 Springs Industries, Inc., 6.25%, 6/1/21 $ 2,905,400
-----------------
Total Consumer Durables & Apparel $ 51,559,851
------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 2.2%
Casinos & Gaming -- 1.2%
2,075,000 GLP Capital LP, 4.375%, 11/1/18 $ 2,147,625
457,562 Mashantucket Western Pequot Tribe, 6.5%,
7/1/36 (1.0% cash, 5.50% PIK) (PIK) 2,288
14,265,000 Scientific Games International, Inc., 10.0%,
12/1/22 12,624,525
700,000 Scientific Games International, Inc., 6.25%,
9/1/20 486,500
-----------------
$ 15,260,938
------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.7%
2,750,000 NCL Corp., Ltd., 5.25%, 11/15/19 (144A) $ 2,853,125
1,680,000 Viking Cruises, Ltd., 6.25%, 5/15/25 (144A) 1,650,600
4,290,000 Viking Cruises, Ltd., 8.5%, 10/15/22 (144A) 4,665,375
-----------------
$ 9,169,100
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 29
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.3%
3,475,000 Constellis Holdings LLC, 9.75%, 5/15/20 (144A) $ 3,144,875
-----------------
Total Consumer Services $ 27,574,913
------------------------------------------------------------------------------------------------------
MEDIA -- 3.4%
Advertising -- 0.3%
3,360,000 MDC Partners, Inc., 6.75%, 4/1/20 (144A) $ 3,418,800
------------------------------------------------------------------------------------------------------
Broadcasting -- 0.8%
6,170,000 Gannett Co., Inc., 6.375%, 10/15/23 $ 6,663,600
2,875,000 Quebecor Media, Inc., 5.75%, 1/15/23 2,946,875
-----------------
$ 9,610,475
------------------------------------------------------------------------------------------------------
Cable & Satellite -- 1.8%
9,250,000 CCO Holdings LLC, 6.5%, 4/30/21 $ 9,706,719
1,670,000 Neptune Finco Corp., 6.625%, 10/15/25 (144A) 1,757,675
1,575,000 Numericable-SFR SAS, 6.0%, 5/15/22 (144A) 1,578,938
9,050,000 Videotron, Ltd., 5.375%, 6/15/24 (144A) 9,298,875
-----------------
$ 22,342,207
------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.4%
425,000 Regal Entertainment Group, 5.75%, 3/15/22 $ 438,812
2,895,000 Regal Entertainment Group, Inc., 5.75%, 2/1/25 2,844,338
2,665,000 WMG Acquisition Corp., 6.75%, 4/15/22 (144A) 2,466,804
-----------------
$ 5,749,954
------------------------------------------------------------------------------------------------------
Publishing -- 0.1%
1,675,000 MPL 2 Acquisition Canco, Inc., 9.875%,
8/15/18 (144A) $ 1,758,750
-----------------
Total Media $ 42,880,186
------------------------------------------------------------------------------------------------------
RETAILING -- 1.2%
Department Stores -- 0.5%
2,710,000 Argos Merger Sub, Inc., 7.125%, 3/15/23 (144A) $ 2,852,275
2,910,000 Dollar Tree, Inc., 5.75%, 3/1/23 (144A) 3,066,412
-----------------
$ 5,918,687
------------------------------------------------------------------------------------------------------
Computer & Electronics Retail -- 0.2%
2,590,000 Rent-A-Center, Inc., 6.625%, 11/15/20 $ 2,434,600
------------------------------------------------------------------------------------------------------
Specialty Stores -- 0.3%
4,010,000 Outerwall, Inc., 5.875%, 6/15/21 $ 3,699,225
------------------------------------------------------------------------------------------------------
Automotive Retail -- 0.2%
2,900,000 Asbury Automotive Group, Inc., 6.0%, 12/15/24
(144A) $ 3,066,750
-----------------
Total Retailing $ 15,119,262
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer High Yield Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.3%
Food Distributors -- 0.3%
3,635,000 KeHE Distributors LLC, 7.625%, 8/15/21 (144A) $ 3,834,925
-----------------
Total Food & Staples Retailing $ 3,834,925
------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 2.4%
Distillers & Vintners -- 0.3%
4,100,000 Constellation Brands, Inc., 3.75%, 5/1/21 $ 4,192,250
------------------------------------------------------------------------------------------------------
Agricultural Products -- 0.3%
4,460,000 Southern States Cooperative, Inc., 10.0%,
8/15/21 (144A) $ 3,880,200
------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 1.3%
1,360,000 Dole Food Co., Inc., 7.25%, 5/1/19 (144A) $ 1,364,760
2,425,000 Pilgrim's Pride Corp., 5.75%, 3/15/25 (144A) 2,479,562
7,600,000 Post Holdings, Inc., 6.0%, 12/15/22 (144A) 7,638,000
1,775,000 Post Holdings, Inc., 6.75%, 12/1/21 (144A) 1,837,125
750,000 Post Holdings, Inc., 7.75%, 3/15/24 (144A) 798,750
1,940,000 Post Holdings, Inc., 8.0%, 7/15/25 (144A) 2,104,900
-----------------
$ 16,223,097
------------------------------------------------------------------------------------------------------
Tobacco -- 0.5%
7,560,000 Alliance One International, Inc., 9.875%, 7/15/21 $ 6,511,050
-----------------
Total Food, Beverage & Tobacco $ 30,806,597
------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.1%
Personal Products -- 0.1%
1,245,000 Revlon Consumer Products Corp., 5.75%, 2/15/21 $ 1,260,562
-----------------
Total Household & Personal Products $ 1,260,562
------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.1%
Health Care Supplies -- 0.2%
2,210,000 Sterigenics-Nordion Holdings LLC, 6.5%,
5/15/23 (144A) $ 2,223,812
------------------------------------------------------------------------------------------------------
Health Care Services -- 0.5%
3,675,000 BioScrip, Inc., 8.875%, 2/15/21 $ 2,838,938
3,055,000 Quintiles Transnational Corp., 4.875%,
5/15/23 (144A) 3,140,907
-----------------
$ 5,979,845
------------------------------------------------------------------------------------------------------
Health Care Facilities -- 2.7%
11,400,000 CHS, Inc., 8.0%, 11/15/19 $ 11,856,000
13,850,000 HCA, Inc., 5.375%, 2/1/25 14,213,562
2,520,000 HealthSouth Corp., 5.75%, 9/15/25 (144A) 2,508,975
5,110,000 Kindred Healthcare Inc., 6.375%, 4/15/22 4,828,950
1,265,000 Universal Hospital Services, Inc., 7.625%, 8/15/20 1,206,494
-----------------
$ 34,613,981
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 31
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.6%
6,965,000 WellCare Health Plans, Inc., 5.75%, 11/15/20 $ 7,278,425
------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.1%
1,400,000 MedAssets, Inc., 8.0%, 11/15/18 $ 1,426,250
-----------------
Total Health Care Equipment & Services $ 51,522,313
------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 1.1%
Pharmaceuticals -- 1.1%
5,610,000 DPx Holdings BV, 7.5%, 2/1/22 (144A) $ 5,722,200
9,910,000 Valeant Pharmaceuticals International, Inc.,
5.875%, 5/15/23 (144A) 8,342,981
-----------------
$ 14,065,181
-----------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 14,065,181
------------------------------------------------------------------------------------------------------
BANKS -- 1.1%
Diversified Banks -- 1.1%
3,175,000 6.10 Bank of America Corp., Floating Rate Note
(Perpetual) $ 3,210,719
475,000 6.50 Bank of America Corp., Floating Rate Note,
10/23/49 496,380
4,125,000 6.25 Bank of America Corp., Floating Rate Note,
9/29/49 4,182,956
2,375,000 5.90 Citigroup, Inc., Floating Rate Note (Perpetual) 2,363,125
3,675,000 5.88 Wells Fargo & Company, Floating Rate Note
(Perpetual) 3,887,048
-----------------
$ 14,140,228
-----------------
Total Banks $ 14,140,228
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.1%
Specialized Finance -- 1.7%
5,825,000 Fly Leasing, Ltd., 6.375%, 10/15/21 $ 5,999,750
1,515,000 Nationstar Mortgage LLC, 6.5%, 6/1/22 1,363,500
10,350,000 Nationstar Mortgage LLC, 6.5%, 7/1/21 9,470,250
1,820,000 Nationstar Mortgage LLC, 6.5%, 8/1/18 1,785,875
3,100,000 Oxford Finance LLC, 7.25%, 1/15/18 (144A) 3,177,500
-----------------
$ 21,796,875
------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.8%
2,000,000 Ally Financial, Inc., 4.625%, 3/30/25 $ 2,015,000
1,250,000 Ally Financial, Inc., 4.625%, 5/19/22 1,300,000
3,875,000 5.55 Capital One Financial Corp., Floating Rate
Note (Perpetual) 3,882,266
3,265,000 TMX Finance LLC, 8.5%, 9/15/18 (144A) 2,563,025
-----------------
$ 9,760,291
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer High Yield Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.3%
4,325,000 5.55 Morgan Stanley, Floating Rate Note (Perpetual) $ 4,319,594
------------------------------------------------------------------------------------------------------
Diversified Capital Markets -- 0.3%
3,740,000 Quicken Loans, Inc., 5.75%, 5/1/25 (144A) $ 3,711,950
-----------------
Total Diversified Financials $ 39,588,710
------------------------------------------------------------------------------------------------------
INSURANCE -- 5.6%
Life & Health Insurance -- 1.0%
2,310,000 CNO Financial Group, Inc., 4.5%, 5/30/20 $ 2,402,400
5,400,000 Fidelity & Guaranty Life Holdings, Inc., 6.375%,
4/1/21 (144A) 5,683,500
4,200,000 5.65 Voya Financial, Inc., Floating Rate Note, 5/15/53 4,252,500
-----------------
$ 12,338,400
------------------------------------------------------------------------------------------------------
Reinsurance -- 4.6%
500,000 5.95 Alamo Re, Ltd., Floating Rate Note, 6/7/18
(Cat Bond) (144A) $ 519,100
4,064,365 Altair Re, Variable Rate Notes, 6/30/16 (f) 287,351
2,800,000 Altair Re, Variable Rate Notes, 6/30/17 (f) 2,943,640
1,000,000 Arlington Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 8/31/16 (f) 1,034,000
1,000,000 Berwick Segregated Account (KANE SAC Ltd.),
Variable Rate Note, 1/22/16 (f) 1,125,700
4,500,000 Carnoustie Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 2/19/16 (f) 4,933,350
1,200,000 Clarendon Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 6/15/16 (f) 1,189,800
550,000 0.00 Compass Re II, Ltd., Floating Rate Note,
6/8/16 (Cat Bond) 547,910
3,014,550 Exeter Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 1/7/16 (f) 3,279,227
1,500,000 Fairfield Segregated Account (KANE SAC Ltd.),
Variable Rate Notes, 2/2/16 (f) 1,477,950
6,200,000 Gullane Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 1/22/17 (f) 6,849,760
1,261,500 Hereford Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 1/7/16 (f) 1,490,715
1,000,000 3.76 Kilimanjaro Re, Ltd., Floating Rate Note,
11/25/19 (Cat Bond) (144A) 991,100
500,000 Lahinch Re, Variable Rate Notes, 6/15/16 (f) 501,450
2,600,000 Lorenz Re, Ltd., Variable Rate Notes, 3/31/18 (f) 2,779,140
1,467,400 Muirfield Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 1/12/16 (f) 1,642,901
4,500,000 Pangaea Re, Series 2015-1, Principal at Risk
Notes, 2/1/19 (f) 5,132,250
5,800,000 Pangaea Re, Series 2015-2, Principal at Risk
Notes, 11/30/19 (f) 6,016,920
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 33
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
5,120,000 Pangaea Re., Variable Rate Notes, 7/1/18 (f) $ 92,160
1,500,000 Prestwick Segregated Account (KANE SAC Ltd.),
Variable Rate Notes, 7/1/16 (f) 1,585,350
12,321 Sector Re V, Ltd., Variable Rate Notes, 12/1/17
(144A) (f) 52,882
1,100,000 Sector Re V, Ltd., Variable Rate Notes, 12/1/19
(144A) (f) 1,250,480
2,152 Sector Re V, Ltd., Variable Rate Notes, 3/30/19
(144A) (f) 50,606
2,000,000 Silverton Re, Ltd., Variable Rate Notes, 9/16/16
(144A) (f) 40,000
1,550,000 Silverton Re, Ltd., Variable Rate Notes, 9/18/17
(144A) (f) 1,797,070
3,000,000 St. Andrews Segregated Account (KANE SAC Ltd.),
Variable Rate Notes, 1/22/16 (f) 3,217,800
1,514,150 Troon Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 1/12/16 (f) 1,644,670
506,000 Turnberry Segregated Account (KANE SAC Ltd.),
Variable Rate Notes, 1/15/16 (f) 513,843
4,400,000 Versutus Ltd., Series 2015-A, Variable Rate Notes,
12/31/2017 (f) 5,103,120
-----------------
$ 58,090,245
-----------------
Total Insurance $ 70,428,645
------------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.0%
Specialized REIT -- 0.9%
3,252,860 AAF Holdings LLC, 12.0%, 7/1/19 (144A)
(12.0% cash, 0.0% PIK) (PIK) $ 3,407,371
5,465,000 Equinix, Inc., 5.375%, 4/1/23 5,683,600
1,410,000 Iron Mountain, Inc., 5.75%, 8/15/24 1,417,050
-----------------
$ 10,508,021
------------------------------------------------------------------------------------------------------
Real Estate Services -- 0.1%
1,480,000 Kennedy-Wilson, Inc., 5.875%, 4/1/24 $ 1,467,050
-----------------
Total Real Estate $ 11,975,071
------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 2.2%
Internet Software & Services -- 1.1%
3,400,000 Bankrate, Inc., 6.125%, 8/15/18 (144A) $ 3,412,750
3,475,000 Cimpress NV, 7.0%, 4/1/22 (144A) 3,501,062
6,085,000 j2 Global, Inc., 8.0%, 8/1/20 6,472,919
-----------------
$ 13,386,731
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer High Yield Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.6%
2,350,000 Audatex North America, Inc., 6.0%, 6/15/21
(144A) $ 2,366,474
1,830,000 First Data Corp., 7.0%, 12/1/23 (144A) 1,862,025
3,688,000 NeuStar, Inc., 4.5%, 1/15/23 3,171,680
-----------------
$ 7,400,179
------------------------------------------------------------------------------------------------------
Application Software -- 0.2%
2,470,000 Citrix Systems, Inc., 0.5%, 4/15/19 $ 2,809,625
------------------------------------------------------------------------------------------------------
Home Entertainment Software -- 0.3%
3,285,000 Activision Blizzard, Inc., 6.125%, 9/15/23 (144A) $ 3,576,544
-----------------
Total Software & Services $ 27,173,079
------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.0%
Communications Equipment -- 0.3%
1,890,000 CommScope Technologies Finance LLC, 6.0%,
6/15/25 (144A) $ 1,918,350
1,595,000 Plantronics, Inc., 5.5%, 5/31/23 (144A) 1,622,912
-----------------
$ 3,541,262
------------------------------------------------------------------------------------------------------
Technology Hardware, Storage &
Peripherals -- 0.6%
5,290,000 Seagate HDD Cayman, 4.75%, 1/1/25 $ 4,751,113
3,610,000 Seagate HDD Cayman, 4.75%, 6/1/23 3,349,607
-----------------
$ 8,100,720
------------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.1%
1,380,000 Flextronics International, Ltd., 4.625%, 2/15/20 $ 1,431,750
-----------------
Total Technology Hardware & Equipment $ 13,073,732
------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.9%
Semiconductor Equipment -- 0.4%
5,100,000 Entegris, Inc., 6.0%, 4/1/22 (144A) $ 5,253,000
------------------------------------------------------------------------------------------------------
Semiconductors -- 0.5%
640,000 Advanced Micro Devices, Inc., 6.75%, 3/1/19 $ 492,800
820,000 Advanced Micro Devices, Inc., 7.0%, 7/1/24 574,000
3,225,000 Micron Technology, Inc., 5.25%, 8/1/23 (144A) 3,150,793
1,825,000 Micron Technology, Inc., 5.875%, 2/15/22 1,856,938
-----------------
$ 6,074,531
-----------------
Total Semiconductors & Semiconductor
Equipment $ 11,327,531
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 35
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 6.3%
Integrated Telecommunication Services -- 3.7%
3,625,000 CenturyLink, Inc., 5.8%, 3/15/22 $ 3,525,312
3,300,000 CenturyLink, Inc., 6.45%, 6/15/21 3,324,750
8,858,000 Cincinnati Bell, Inc., 8.375%, 10/15/20 9,234,465
530,000 Frontier Communications Corp., 10.5%,
9/15/22 (144A) 549,875
304,000 Frontier Communications Corp., 7.125%, 1/15/23 271,320
9,401,000 Frontier Communications Corp., 8.5%, 4/15/20 9,683,030
3,100,000 Frontier Communications Corp., 8.75%, 4/15/22 2,983,750
530,000 Frontier Communications Corp., 8.875%,
9/15/20 (144A) 550,204
1,880,000 Level 3 Financing, Inc., 5.375%, 1/15/24 (144A) 1,903,500
8,830,000 Windstream Corp., 7.5%, 6/1/22 7,339,938
4,975,000 Windstream Services LLC, 6.375%, 8/1/23 3,942,688
3,460,000 Windstream Services LLC, 7.75%, 10/15/20 3,114,000
-----------------
$ 46,422,832
------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 2.6%
1,840,000 Altice Financing SA, 6.625%, 2/15/23 (144A) $ 1,844,600
1,375,000 Altice US Finance I Corp., 5.375%,
7/15/23 (144A) 1,391,500
20,345,000 Sprint Corp., 7.25%, 9/15/21 18,691,970
4,300,000 T-Mobile USA, Inc., 6.542%, 4/28/20 4,407,500
1,635,000 T-Mobile USA, Inc., 6.633%, 4/28/21 1,692,225
2,000,000 T-Mobile USA, Inc., 6.731%, 4/28/22 2,065,000
3,350,000 WCP Issuer llc, 6.657%, 8/15/43 (144A) 3,457,770
-----------------
$ 33,550,565
-----------------
Total Telecommunication Services $ 79,973,397
------------------------------------------------------------------------------------------------------
UTILITIES -- 2.0%
Electric Utilities -- 0.8%
7,360,000 Talen Energy Supply LLC, 4.625%,
7/15/19 (144A) $ 6,732,928
3,975,000 Talen Energy Supply LLC, 6.5%, 6/1/25 (144A) 3,527,812
-----------------
$ 10,260,740
------------------------------------------------------------------------------------------------------
Gas Utilities -- 0.4%
1,850,000 Ferrellgas LP, 6.5%, 5/1/21 $ 1,715,875
3,585,000 Ferrellgas LP, 6.75%, 1/15/22 3,325,661
-----------------
$ 5,041,536
------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy
Traders -- 0.8%
1,650,000 AES Corp. Virginia, 5.5%, 3/15/24 $ 1,559,250
2,850,000 NRG Energy, Inc., 6.25%, 5/1/24 2,550,750
4,700,000 NRG Energy, Inc., 7.625%, 1/15/18 4,923,250
The accompanying notes are an integral part of these financial statements.
36 Pioneer High Yield Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy
Traders -- (continued)
1,265,000 TerraForm Power Operating LLC, 5.875%,
2/1/23 (144A) $ 1,166,962
-----------------
$ 10,200,212
-----------------
Total Utilities $ 25,502,488
------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $839,882,735) $ 783,102,868
------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 1.6%
5,000,000 0.07 U.S. Treasury Note, Floating Rate Note, 1/31/16 $ 5,000,185
5,000,000 0.07 U.S. Treasury Note, Floating Rate Note, 10/31/16 4,999,090
5,000,000 0.08 U.S. Treasury Note, Floating Rate Note, 4/30/16 5,000,600
5,000,000 0.09 U.S. Treasury Note, Floating Rate Note, 7/31/16 5,000,720
------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $19,998,605) $ 20,000,595
------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 5.5%**
ENERGY -- 0.3%
Oil & Gas Drilling -- 0.3%
3,863,910 7.50 Jonah Energy LLC, Term Loan (Second Lien),
5/8/21 $ 3,042,829
2,291,250 5.75 Offshore Group Investment, Ltd., Term Loan,
3/28/19 683,555
-----------------
$ 3,726,384
-----------------
Total Energy $ 3,726,384
------------------------------------------------------------------------------------------------------
MATERIALS -- 0.1%
Specialty Chemicals -- 0.1%
1,412,532 3.75 Axalta Coating Systems US Holdings, Inc.,
Refinanced Term B Loan, 2/1/20 $ 1,410,766
------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.0%+
528,651 3.75 Fortescue Metals Group Ltd., Bank Loan, 6/30/19 $ 449,222
-----------------
Total Materials $ 1,859,988
------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.3%
Environmental & Facilities Services -- 0.1%
612,775 4.00 WCA Waste Corp., Term Loan, 3/23/18 $ 610,094
------------------------------------------------------------------------------------------------------
Diversified Support Services -- 0.0%+
418,819 5.37 IAP Worldwide Services, Inc., Term Loan, 7/18/19 $ 420,913
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 37
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Security & Alarm Services -- 0.2%
2,673,469 4.25 Monitronics International, Inc., Term B Loan,
3/23/18 $ 2,661,439
-----------------
Total Commercial Services & Supplies $ 3,692,446
------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.8%
Auto Parts & Equipment -- 0.8%
7,368 3.50 Allison Transmission, Inc., Term B-3 Loan,
8/23/19 $ 7,385
1,940,350 4.50 TI Group Automotive Systems LLC, Initial US
Term Loan, 6/25/22 1,928,223
7,930,434 4.00 Tower Automotive Holdings USA LLC, Initial
Term Loan (2014), 4/23/20 7,877,562
-----------------
$ 9,813,170
-----------------
Total Automobiles & Components $ 9,813,170
------------------------------------------------------------------------------------------------------
MEDIA -- 0.3%
Advertising -- 0.1%
1,968,087 6.75 Affinion Group, Inc., Tranche B Term Loan,
4/30/18 $ 1,895,104
------------------------------------------------------------------------------------------------------
Broadcasting -- 0.1%
1,402,696 4.00 Univision Communications, Inc., Replacement
First-Lien Term Loan, 3/1/20 $ 1,394,124
------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.1%
657,254 3.75 Cinedigm Digital Funding 1 LLC, Term Loan,
2/28/18 $ 656,432
-----------------
Total Media $ 3,945,660
------------------------------------------------------------------------------------------------------
RETAILING -- 0.5%
Automotive Retail -- 0.5%
6,745,313 5.25 CWGS Group LLC, Term Loan, 2/20/20 $ 6,749,528
-----------------
Total Retailing $ 6,749,528
------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.0%+
Food Distributors -- 0.0%+
8,432 5.75 AdvancePierre Foods, Inc., Term Loan
(First Lien), 7/10/17 $ 8,450
-----------------
Total Food & Staples Retailing $ 8,450
------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.0%
Health Care Equipment -- 0.2%
2,373,703 4.50 Kinetic Concepts, Inc., Term DTL-E1 loan, 5/4/18 $ 2,376,670
------------------------------------------------------------------------------------------------------
Health Care Services -- 0.7%
1,159,805 4.25 Alliance HealthCare Services, Inc., Initial Term
Loan, 6/3/19 $ 1,155,094
720,822 6.50 Ardent Legacy Acquisitions, Inc., First Lien Term
Loan, 7/31/21 721,723
2,053,542 6.50 BioScrip, Inc., Initial Term B Loan, 7/31/20 1,889,259
The accompanying notes are an integral part of these financial statements.
38 Pioneer High Yield Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Health Care Services -- (continued)
1,232,125 6.50 BioScrip, Inc., Term Loan, 7/31/20 $ 1,133,555
2,551,150 4.25 National Mentor Holdings, Inc., Tranche B Term
Loan, 1/31/21 2,512,883
1,352,167 0.00 National Surgical Hospitals, Inc., First Lien Term
Loan, 5/15/22 (d) 1,328,504
-----------------
$ 8,741,018
------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.1%
721,714 9.75 MMM Holdings, Inc., Term Loan, 10/9/17 (e) $ 534,069
524,682 9.75 MSO of Puerto Rico, Inc., MSO Term Loan,
12/12/17 (e) 388,265
-----------------
$ 922,334
-----------------
Total Health Care Equipment & Services $ 12,040,022
------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.5%
Biotechnology -- 0.5%
7,441,350 7.00 Lantheus Medical Imaging, Inc., Initial Term
Loan, 6/25/22 $ 6,957,662
-----------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 6,957,662
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.3%
Investment Banking & Brokerage -- 0.3%
3,430,000 8.33 MJ Acquisition Corporation, 2nd Lien Term
loan, 4/8/23 $ 3,447,150
-----------------
Total Diversified Financials $ 3,447,150
------------------------------------------------------------------------------------------------------
INSURANCE -- 0.0%+
Multi-line Insurance -- 0.0%+
368,761 4.50 Alliant Holdings I LLC, Initial Term Loan, 7/28/22 $ 365,419
-----------------
Total Insurance $ 365,419
------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.6%
IT Consulting & Other Services -- 0.1%
1,975,000 5.75 Evergreen Skills Lux Sarl, Initial Term Loan
(First Lien), 4/23/21 $ 1,651,594
------------------------------------------------------------------------------------------------------
Application Software -- 0.5%
4,813,691 8.50 Expert Global Solutions, Inc., Term B Advance
(First Lien), 4/3/18 $ 4,780,597
668,841 4.25 Vertafore, Inc., Term Loan (2013), 10/3/19 669,607
-----------------
$ 5,450,204
-----------------
Total Software & Services $ 7,101,798
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 39
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.8%
Integrated Telecommunication Services -- 0.8%
5,000,000 0.00 Level 3 Financing, Inc., First Lien Term Loan,
5/31/22 (d) $ 5,002,345
5,100,408 0.00 Virgin Media, First Lien Term loan, 6/30/23 (d) 5,070,923
-----------------
$ 10,073,268
-----------------
Total Telecommunication Services $ 10,073,268
------------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTERESTS
(Cost $73,228,867) $ 69,780,945
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
Shares
------------------------------------------------------------------------------------------------------
WARRANTS -- 0.0%+
HEALTH CARE EQUIPMENT & SERVICES -- 0.0%+
Health Care Services -- 0.0%+
2,136 BioScrip, Inc. 6/30/25* $ -
2,136 BioScrip, Inc. 6/30/25* -
-----------------
Total Household & Personal Products $ -
------------------------------------------------------------------------------------------------------
WARRANTS
(Cost $-) $ -
------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 1.0%
Commercial Paper -- 1.0%
3,155,000 Barclays, Floating Rate Note, 11/2/15 (g) $ 3,154,936
3,155,000 Mondelez, Floating Rate Note, 11/2/15 (g) 3,154,934
3,155,000 Prudential Funding LLC, Floating Rate Note,
11/2/15 (g) 3,154,968
3,155,000 Societe Generale SA, Commercial Paper,
11/2/15 (g) 3,154,978
-----------------
$ 12,619,816
------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $12,619,957) $ 12,619,816
------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 94.1%
(Cost $1,243,985,012) (a) $ 1,189,964,821
------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 5.9% $ 74,179,300
------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 1,264,144,121
======================================================================================================
* Non-income producing security.
+ Amount rounds to less than 0.1%.
(Cat Bond) Catastrophe or Event-Linked Bond. At October 31, 2015, the value of
these securities amounted to $2,058,110, or 0.2% of total net
assets. See Notes to Financial Statements -- Note 1G.
(Perpetual) Security with no stated maturity date.
(PIK) Represents a pay-in-kind security.
(Step) Bond issued with an initial coupon rate which converts to a higher
rate at a later date.
The accompanying notes are an integral part of these financial
statements.
40 Pioneer High Yield Fund | Annual Report | 10/31/15
REIT Real Estate Investment Trust.
(144A) Security is exempt from registration under Rule 144A of the
Securities Act of 1933. Such securities may be resold normally to
qualified institutional buyers in a transaction exempt from
registration. At October 31, 2015, the value of these securities
amounted to $296,622,780, or 23.5% of total net assets.
** Senior floating rate loan interests in which the Fund invests
generally pay interest at rates that are periodically redetermined
by reference to a base lending rate plus a premium. These base
lending rates are generally (i) the lending rate offered by one or
more major European banks, such as LIBOR (London InterBank Offered
Rate), (ii) the prime rate offered by one or more major United
States banks, (iii) the 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.
(a) At October 31, 2015, the net unrealized appreciation (depreciation)
on investments based on cost for federal income tax purposes of
$1,249,515,524 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 65,805,708
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (125,356,411)
-----------------
Net unrealized depreciation $ (59,550,703)
=================
(b) Debt obligation with a variable interest rate. Rate shown is rate at
end of period.
(c) Security is valued using fair value methods (other than prices
supplied by independent pricing services or broker-dealers). See
Notes to Financial Statements -- Note 1A.
(d) Rate to be determined.
(e) Security is in default.
(f) Structured reinsurance investment. At October 31, 2015, the value of
these securities amounted to $56,115,885 or 4.4% of total net
assets. See Notes to Financial Statements -- Note 1G.
(g) Security issued with a zero coupon. Income is recognized through
accretion of discount.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2015 were as follows:
-----------------------------------------------------------------------------------------------------------
Purchases Sales
-----------------------------------------------------------------------------------------------------------
Long-Term U.S. Government $ 19,996,964 $ --
Other Long-Term Securities $427,613,484 $594,653,073
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS - SELL PROTECTION
-----------------------------------------------------------------------------------------------------------
Notional Obligation Credit Expiration Premiums Unrealized
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date Received Appreciation
-----------------------------------------------------------------------------------------------------------
27,629,015 J.P. Morgan
Chase Bank Markit CDX 5.00% B+ 12/20/19 $1,879,644 $ 296,181
North America
High Yield
Index
30,165,000 J.P. Morgan
Chase Bank Markit CDX 5.00% B+ 12/20/20 291,105 836,898
North America
High Yield
Index
-----------------------------------------------------------------------------------------------------------
$2,170,749 $1,133,079
-----------------------------------------------------------------------------------------------------------
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Based on Standard & Poor's rating of the issuer or the weighted average of
all the underlying securities in the index.
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 41
Schedule of Investments | 10/31/15 (continued)
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of October 31, 2015, in valuing
the Fund's assets:
-----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 148,482,868 $ -- $ 148,482,868
Preferred Stocks
Transportation
Air Freight & Logistics -- 2,223,022 -- 2,223,022
Diversified Financials
Consumer Finance 9,272,324 3,302,904 -- 12,575,228
Insurance
Reinsurance -- -- 83,750 83,750
All Other Preferred Stocks 8,671,779 -- -- 8,671,779
Convertible Preferred Stocks
Energy
Oil & Gas Exploration &
Production -- 298,603 -- 298,603
Consumer Durables & Apparel
Home Furnishings -- 12,627,872 -- 12,627,872
Health Care Equipment &
Services
Health Care Services -- -- 58,827 58,827
Health Care Facilities -- 1,302,513 -- 1,302,513
All Other Convertible Preferred
Stocks 5,892,624 -- -- 5,892,624
Common Stock
Capital Goods
Industrial Machinery 3,704,979 -- 737 3,705,716
Commercial Services & Supplies
Diversified Support Services -- 74,221 -- 74,221
Transportation
Air Freight & Logistics -- 1,026,927 -- 1,026,927
Consumer Services
Education Services -- 338,676 -- 338,676
All Other Common Stocks 80,529,311 -- -- 80,529,311
Asset Backed Securities -- 1,226,125 -- 1,226,125
Collateralized Mortgage Obligations -- 25,342,535 -- 25,342,535
Corporate Bonds
Capital Goods
Industrial Machinery -- 4,909,205 992,164 5,901,369
Insurance
Reinsurance -- 2,058,110 56,032,135 58,090,245
All Other Corporate Bonds -- 719,111,254 -- 719,111,254
U.S. Government Agency Obligations -- 20,000,595 -- 20,000,595
Senior Floating Rate Loan Interests -- 69,780,945 -- 69,780,945
Warrants --* -- -- --*
Commercial Paper -- 12,619,816 -- 12,619,816
-----------------------------------------------------------------------------------------------
Total $108,071,017 $1,024,726,191 $57,167,613 $1,189,964,821
===============================================================================================
* Security is valued at $0.
The accompanying notes are an integral part of these financial statements.
42 Pioneer High Yield Fund | Annual Report | 10/31/15
-----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------------
Other Financial Instruments
Unrealized depreciation on
futures contracts $ (2,956,440) $ -- $ -- $ (2,956,440)
Unrealized appreciation on
swap contracts -- 1,133,079 -- 1,133,079
-----------------------------------------------------------------------------------------------
Total Other Financial Instruments $ (2,956,440) $ 1,133,079 $ -- $ (1,823,361)
===============================================================================================
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
-----------------------------------------------------------------------------------------------
Convertible
Preferred Preferred Common Corporate
Stocks Stocks Stocks Bonds Total
-----------------------------------------------------------------------------------------------
Balance as of 10/31/14 $ 5,359,616 $ -- $ -- $ 34,341,400 $ 39,701,016
Realized gain (loss)(1) -- -- -- 120,474 120,474
Change in unrealized
appreciation (depreciation)(2) (3,629,725) (15,373) -- (8,186,957) (11,832,055)
Purchases -- 74,200 737 53,629,867 53,704,804
Sales -- -- -- (24,526,626) (24,526,626)
Transfers in Level 3* -- -- -- -- --
Transfers out Level 3* -- -- -- -- --
Transfers in and out of
Level 3 categories* (1,646,141) -- -- 1,646,141 --
-----------------------------------------------------------------------------------------------
Balance as of 10/31/15 $ 83,750 $ 58,827 $ 737 $ 57,024,299 $ 57,167,613
===============================================================================================
(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 year
ended October 31, 2015, there were no transfers between Levels 1, 2 and 3.
Net change in unrealized appreciation (depreciation) of investments still
held as of 10/31/15 $(11,586,558)
-------------
The following is a summary of the fair valuation of certain Fund's assets and
liabilities as of October 31, 2015:
-----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------------
Assets:
Futures collateral $ -- $2,614,000 $ -- $2,614,000
Variation margin for futures contracts 264,120 -- -- 264,120
Centrally cleared swap collateral -- 3,075,000 -- 3,075,000
Variation margin for centrally cleared
swap contracts -- 76,330 -- 76,330
-----------------------------------------------------------------------------------------------
Total $264,120 $5,765,330 $ -- $6,029,450
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 43
Statement of Assets and Liabilities | 10/31/15
ASSETS:
Investment in securities (cost $1,243,985,012) $1,189,964,821
Cash 64,024,015
Centrally cleared swap collateral 3,075,000
Futures collateral 2,614,000
Receivables --
Investment securities sold 8,409,293
Fund shares sold 807,398
Dividends and interest 16,750,545
Swap contracts, premiums paid 2,170,749
Variation margin for futures contracts 264,120
Variation margin for centrally cleared swap contracts 76,330
Unrealized appreciation on centrally cleared swap contracts 1,133,079
Prepaid expenses 24,479
----------------------------------------------------------------------------------
Total assets $1,289,313,829
==================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 17,959,812
Fund shares repurchased 2,808,874
Distributions 716,374
Trustee fees 7,018
Unrealized depreciation on futures contracts 2,956,440
Due to affiliates 520,013
Accrued expenses 201,177
----------------------------------------------------------------------------------
Total liabilities $ 25,169,708
==================================================================================
NET ASSETS:
Paid-in capital $1,310,315,053
Distributions in excess of net investment income (1,689,788)
Accumulated net realized gain on investments, futures contracts
and swap contracts 11,362,408
Net unrealized depreciation on investments (54,020,191)
Net unrealized depreciation on futures contracts (2,956,440)
Net unrealized appreciation on swap contracts 1,133,079
----------------------------------------------------------------------------------
Total net assets $1,264,144,121
==================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $651,646,277/69,875,991 shares) $ 9.33
Class C (based on $310,805,274/32,657,806 shares) $ 9.52
Class R (based on $36,931,367/3,506,481 shares) $ 10.53
Class Y (based on $264,761,203/28,362,199 shares) $ 9.34
MAXIMUM OFFERING PRICE:
Class A ($9.33 / 95.5%) $ 9.77
==================================================================================
The accompanying notes are an integral part of these financial statements.
44 Pioneer High Yield Fund | Annual Report | 10/31/15
Statement of Operations
For the Year Ended 10/31/15
INVESTMENT INCOME:
Interest $ 74,726,120
Dividend 6,010,884
--------------------------------------------------------------------------------------------
Total investment income $ 80,737,004
--------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 9,290,120
Transfer agent fees
Class A 464,352
Class B* 1,363
Class C 90,018
Class R 7,681
Class Y 33,959
Distribution fees
Class A 1,981,448
Class B* 3,917
Class C 3,534,095
Class R 216,117
Shareholder communications expense 1,673,815
Administrative expense 419,450
Custodian fees 51,801
Registration fees 145,872
Professional fees 528,686
Printing expense 60,279
Fees and expenses of nonaffiliated Trustees 63,820
Miscellaneous 119,954
--------------------------------------------------------------------------------------------
Total expenses $ 18,686,747
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (3,912)
--------------------------------------------------------------------------------------------
Net expenses $ 18,682,835
--------------------------------------------------------------------------------------------
Net investment income $ 62,054,169
--------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS AND SWAP CONTRACTS:
Net realized gain (loss) on:
Investments $ 10,427,745
Futures contracts 2,805,363
Swap contracts (426,643) $ 12,806,465
--------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ (117,437,053)
Futures contracts (2,956,440)
Swap contracts 1,133,079 $ (119,260,414)
--------------------------------------------------------------------------------------------
Net realized and unrealized loss on investments, future
contracts and swap contracts $ (106,453,949)
--------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (44,399,780)
============================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 45
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/15 10/31/14
-------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 62,054,169 $ 82,998,731
Net realized gain on investments, futures contracts
and swap contracts 12,806,465 70,410,452
Change in net unrealized depreciation on investments,
futures contracts and swap contracts (119,260,414) (87,561,507)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (44,399,780) $ 65,847,676
-------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.45 and $0.49 per share, respectively) $ (36,251,392) $ (51,734,086)
Class B* ($0.01 and $0.38 per share, respectively) (13,339) (677,701)
Class C ($0.38 and $0.42 per share, respectively) (13,606,421) (16,344,422)
Class R ($0.47 and $0.50 per share, respectively) (1,834,583) (2,296,952)
Class Y ($0.48 and $0.52 per share, respectively) (11,161,976) (15,200,183)
Class Z** ($0.33 and $0.48 per share, respectively) (169,975) (354,433)
Net realized gain:
Class A ($0.47 and $0.39 per share, respectively) (39,952,753) (41,922,595)
Class B* ($0.00 and $0.39 per share, respectively) -- (789,847)
Class C ($0.47 and $0.39 per share, respectively) (17,243,465) (15,125,505)
Class R ($0.47 and $0.39 per share, respectively) (1,986,479) (1,740,430)
Class Y ($0.47 and $0.39 per share, respectively) (10,891,583) (11,661,682)
Class Z** ($0.47 and $0.39 per share, respectively) (204,761) (226,381)
-------------------------------------------------------------------------------------------
Total distributions to shareowners $ (133,316,727) $ (158,074,217)
-------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 349,181,937 $ 456,963,949
Reinvestment of distributions 114,304,411 135,491,462
Cost of shares repurchased (639,420,837) (948,516,737)
-------------------------------------------------------------------------------------------
Net decrease in net assets resulting from Fund
share transactions $ (175,934,489) $ (356,061,326)
-------------------------------------------------------------------------------------------
Net decrease in net assets $ (353,650,996) $ (448,287,867)
NET ASSETS:
Beginning of year 1,617,795,117 2,066,082,984
-------------------------------------------------------------------------------------------
End of year $1,264,144,121 $1,617,795,117
-------------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (1,689,788) $ (1,934,078)
===========================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
** Class Z shares converted to Class Y shares on August 7, 2015.
The accompanying notes are an integral part of these financial statements.
46 Pioneer High Yield Fund | Annual Report | 10/31/15
---------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/15 10/31/15 10/31/14 10/31/14
Shares Amount Shares Amount
---------------------------------------------------------------------------------------
Class A
Shares sold 15,132,051 $ 149,632,637 22,628,161 $ 244,426,656
Reinvestment of
distributions 6,983,820 69,075,879 8,030,042 86,166,013
Less shares repurchased (37,230,097) (361,942,117) (54,617,046) (588,741,394)
---------------------------------------------------------------------------------------
Net decrease (15,114,226) $ (143,233,601) (23,958,843) $ (258,148,725)
=======================================================================================
Class B*
Shares sold or
exchanged 1,587 $ 16,884 42,451 $ 463,317
Reinvestment of
distributions -- -- 115,630 1,251,178
Less shares repurchased (1,349,985) (14,282,939) (913,584) (9,960,499)
---------------------------------------------------------------------------------------
Net decrease (1,348,398) $ (14,266,055) (755,503) $ (8,246,004)
=======================================================================================
Class C
Shares sold 2,156,459 $ 21,705,372 2,431,370 $ 26,682,709
Reinvestment of
distributions 2,299,470 23,227,333 2,158,906 23,594,501
Less shares repurchased (8,763,104) (87,499,120) (6,955,018) (76,477,421)
---------------------------------------------------------------------------------------
Net decrease (4,307,175) $ (42,566,415) (2,364,742) $ (26,200,211)
=======================================================================================
Class R
Shares sold 958,719 $ 10,518,554 1,135,491 $ 13,776,692
Reinvestment of
distributions 323,874 3,618,079 318,501 3,838,679
Less shares repurchased (2,096,080) (23,179,692) (1,675,707) (20,317,088)
---------------------------------------------------------------------------------------
Net decrease (813,487) $ (9,043,059) (221,715) $ (2,701,717)
=======================================================================================
Class Y
Shares sold 17,113,943 $ 163,871,492 15,253,495 $ 165,300,175
Reinvestment of
distributions 1,823,872 18,015,138 1,870,357 20,077,374
Less shares repurchased (14,704,582) (144,264,313) (22,818,797) (245,204,364)
---------------------------------------------------------------------------------------
Net increase
(decrease) 4,233,233 $ 37,622,317 (5,694,945) $ (59,826,815)
=======================================================================================
Class Z **
Shares sold 376,250 $ 3,436,998 627,900 $ 6,314,400
Reinvestment of
distributions 39,754 367,982 56,351 563,717
Less shares repurchased (905,767) (8,252,656) (773,275) (7,815,971)
---------------------------------------------------------------------------------------
Net decrease (489,763) $ (4,447,676) (89,024) $ (937,854)
=======================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
** Class Z shares converted to Class Y shares on August 7, 2015.
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 47
Financial Highlights
-----------------------------------------------------------------------------------------------------------------------------------
Year Year Year
Year Year Ended Ended Ended
Ended Ended 10/31/13 10/31/12 10/31/11
10/31/15 10/31/14 (Consolidated) (Consolidated) (Consolidated)
-----------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.54 $ 11.07 $ 10.25 $ 9.67 $ 9.88
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.44(b) $ 0.46 $ 0.51 $ 0.51 $ 0.51
Net realized and unrealized gain (loss) on investments (0.73) (0.11) 0.84 0.59 (0.18)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.29) $ 0.35 $ 1.35 $ 1.10 $ 0.33
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.45) $ (0.49) $ (0.53) $ (0.52) $ (0.54)
Net realized gain (0.47) (0.39) -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.92) $ (0.88) $ (0.53) $ (0.52) $ (0.54)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.21) $ (0.53) $ 0.82 $ 0.58 $ (0.21)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.33 $ 10.54 $ 11.07 $ 10.25 $ 9.67
===================================================================================================================================
Total return* (2.97)% 3.22% 13.52%(a) 11.66% 3.20%
Ratio of net expenses to average net assets 1.17% 1.15% 1.14% 1.16% 1.16%
Ratio of net investment income (loss) to average net assets 4.51% 4.34% 4.82% 5.18% 4.99%
Portfolio turnover rate 32% 28% 46% 33% 47%
Net assets, end of period (in thousands) $651,646 $895,795 $1,206,497 $1,263,707 $1,467,120
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(a) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended October 31, 2013, the total return would
have been 13.49%.
(b) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
48 Pioneer High Yield Fund | Annual Report | 10/31/15
-----------------------------------------------------------------------------------------------------------------------------------
Year Year Year
Year Year Ended Ended Ended
Ended Ended 10/31/13 10/31/12 10/31/11
10/31/15 10/31/14 (Consolidated) (Consolidated) (Consolidated)
-----------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.74 $ 11.28 $ 10.43 $ 9.84 $ 10.04
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.38(b) $ 0.40 $ 0.44 $ 0.45 $ 0.44
Net realized and unrealized gain (loss) on investments (0.75) (0.13) 0.87 0.59 (0.17)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.37) $ 0.27 $ 1.31 $ 1.04 $ 0.27
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.38) $ (0.42) $ (0.46) $ (0.45) $ (0.47)
Net realized gain (0.47) (0.39) -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.85) $ (0.81) $ (0.46) $ (0.45) $ (0.47)
===================================================================================================================================
Net increase (decrease) in net asset value $ (1.22) $ (0.54) $ 0.85 $ 0.59 $ (0.20)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.52 $ 10.74 $ 11.28 $ 10.43 $ 9.84
-----------------------------------------------------------------------------------------------------------------------------------
Total return* (3.64)% 2.41% 12.87%(a) 10.85% 2.59%
Ratio of net expenses to average net assets 1.89% 1.83% 1.86% 1.85% 1.87%
Ratio of net investment income (loss) to average net assets 3.79% 3.65% 4.11% 4.50% 4.32%
Portfolio turnover rate 32% 28% 46% 33% 47%
Net assets, end of period (in thousands) $310,805 $397,186 $443,442 $467,377 $527,822
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(a) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended October 31, 2013, the total return would
have been 12.75%.
(b) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 49
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------------
Year Year Year
Year Year Ended Ended Ended
Ended Ended 10/31/13 10/31/12 10/31/11
10/31/15 10/31/14 (Consolidated) (Consolidated) (Consolidated)
-----------------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 11.84 $ 12.39 $ 11.46 $ 10.82 $ 11.03
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.46(b) $ 0.48 $ 0.53 $ 0.53 $ 0.54
Net realized and unrealized gain (loss) on investments (0.83) (0.14) 0.95 0.64 (0.19)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.37) $ 0.34 $ 1.48 $ 1.17 $ 0.35
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.47) $ (0.50) $ (0.55) $ (0.53) $ (0.56)
Net realized gain (0.47) (0.39) -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.94) $ (0.89) $ (0.55) $ (0.53) $ (0.56)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.31) $ (0.55) $ 0.93 $ 0.64 $ (0.21)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.53 $ 11.84 $ 12.39 $ 11.46 $ 10.82
===================================================================================================================================
Total return* (3.36)% 2.82% 13.24%(a) 11.11% 3.03%
Ratio of net expenses to average net assets 1.51% 1.49% 1.47% 1.56% 1.46%
Ratio of net investment income (loss) to average net assets 4.16% 3.99% 4.50% 4.79% 4.73%
Portfolio turnover rate 32% 28% 46% 33% 47%
Net assets, end of period (in thousands) $36,931 $51,146 $56,248 $69,207 $78,187
===================================================================================================================================
* 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.
(a) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended October 31, 2013, the total return would
have been 13.13%.
(b) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
50 Pioneer High Yield Fund | Annual Report | 10/31/15
-----------------------------------------------------------------------------------------------------------------------------------
Year Year Year
Year Year Ended Ended Ended
Ended Ended 10/31/13 10/31/12 10/31/11
10/31/15 10/31/14 (Consolidated) (Consolidated) (Consolidated)
-----------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.55 $ 11.08 $ 10.25 $ 9.67 $ 9.88
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.47(b) $ 0.50 $ 0.55 $ 0.54 $ 0.55
Net realized and unrealized gain (loss) on investments (0.73) (0.12) 0.85 0.59 (0.19)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.26) $ 0.38 $ 1.40 $ 1.13 $ 0.36
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.48) $ (0.52) $ (0.57) $ (0.55) $ (0.57)
Net realized gain (0.47) (0.39) -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.95) $ (0.91) $ (0.57) $ (0.55) $ (0.57)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.21) $ (0.53) $ 0.83 $ 0.58 $ (0.21)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.34 $ 10.55 $ 11.08 $ 10.25 $ 9.67
===================================================================================================================================
Total return* (2.69)% 3.55% 13.98%(a) 12.02% 3.55%
Ratio of net expenses to average net assets 0.88% 0.84% 0.82% 0.82% 0.81%
Ratio of net investment income (loss) to average net assets 4.77% 4.64% 5.12% 5.51% 5.33%
Portfolio turnover rate 32% 28% 46% 33% 47%
Net assets, end of period (in thousands) $264,761 $254,504 $330,398 $287,901 $372,280
===================================================================================================================================
* 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.
(a) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended October 31, 2013, the total return would
have been 13.89%.
(b) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer High Yield Fund | Annual Report | 10/31/15 51
Notes to Financial Statements | 10/31/15
1. Organization and Significant Accounting Policies
Pioneer High Yield Fund (the Fund) is 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 offered four classes of shares designated as Class A, Class C,
Class R and Class Y shares. Class B shares converted to Class A shares as
of the close of business on November 10, 2014. Class Z shares converted to
Class Y shares as of the close of business on August 7, 2015. Each class of
shares represents an interest in the same portfolio of investments of the
Fund and has identical rights (based on relative net asset values) to
assets and liquidation proceeds. Share classes can bear different rates of
class-specific fees and expenses such as transfer agent and distribution
fees. Differences in class-specific fees and expenses will result in
differences in net investment income and, therefore, the payment of
different dividends from net investment income earned by each class. The
Amended and Restated Declaration of Trust of the Fund gives the Board the
flexibility to specify either per-share voting or dollar-weighted voting
when submitting matters for shareholder approval. Under per-share voting,
each share of a class of the Fund is entitled to one vote. Under
dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the
record date. Each share class has exclusive voting rights with respect to
matters affecting only that class, including with respect to the
distribution plan for that class. There is no distribution plan for Class Y
shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities at the date of the financial statements, and the
reported amounts of income, expenses and gains and losses on investments
during the reporting period. Actual results could differ from those
estimates.
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements:
52 Pioneer High Yield Fund | Annual Report | 10/31/15
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE.
Fixed-income securities are valued at prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings. Valuations may be supplemented by dealers and other
sources, as required. Senior floating rate loan interests (senior loans)
are valued in accordance with guidelines established by the Board of
Trustees at the mean between the last available bid and asked prices from
one or more brokers or dealers as obtained from Loan Pricing Corporation,
an independent pricing service. If price information is not available from
Loan Pricing Corporation, or if the price information is deemed to be
unreliable, price information will be obtained from an alternative loan
interest pricing service. If no reliable price quotes are available from
either the primary or alternative pricing service, broker quotes will be
solicited. Event-linked bonds are valued at the bid price obtained from an
independent third party pricing service. Other insurance-linked securities
may be valued at the bid price obtained from an independent pricing
service, or through a third party using a pricing matrix, insurance
industry valuation models, or other fair value methods or techniques to
provide an estimated value of the instrument. 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. Shares of money market mutual funds are valued at such funds'
net asset value. Cash may include overnight time deposits at approved
financial institutions.
Securities or senior loans 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.
Pioneer High Yield Fund | Annual Report | 10/31/15 53
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 October 31, 2015, three securities were valued using fair value methods
(in addition to securities valued using prices supplied by independent
pricing services, broker-dealers or through a third party using an
insurance industry valuation model), representing 0.1% of net assets.
B. Investment Income and Transactions
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, 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.
C. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no federal income tax provision is required. As
of October 31, 2015, the Fund did not accrue any interest or penalties with
respect to uncertain tax positions, which, if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax returns filed
within the prior three years remain subject to examination by federal and
state tax authorities.
54 Pioneer High Yield Fund | Annual Report | 10/31/15
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences. At
October 31, 2015, the Fund reclassified $1,227,807 to decrease
distributions in excess of net investment income and $1,227,807 to decrease
accumulated net realized gain on investments, futures contracts and swap
contracts to reflect permanent book/tax differences. These adjustments have
no impact on net assets or the results of operations.
The tax character of distributions paid during the years ended October 31,
2015, and October 31, 2014, was as follows:
---------------------------------------------------------------------------
2015 2014
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 72,847,189 $ 86,607,777
Long term capital gain 60,469,538 71,466,440
---------------------------------------------------------------------------
Total $133,316,727 $158,074,217
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 5,188,849
Undistributed long term capital gain 8,629,844
Dividend payable (716,374)
Net unrealized depreciation (59,273,251)
---------------------------------------------------------------------------
Total $(46,170,932)
===========================================================================
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 on
swaps and futures contracts, adjustments relating to catastrophe bonds, interest
on defaulted bonds, and interest accruals on preferred stock and other holdings.
Pioneer High Yield Fund | Annual Report | 10/31/15 55
D. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned $35,284 in underwriting commissions on the sale of
Class A shares during the year ended October 31, 2015.
E. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class C and Class R shares of the Fund,
respectively (see Note 4). Class Y shares do not pay distribution fees. All
expenses and fees paid to the Fund's transfer agent, for its services are
allocated among the classes of shares based on the number of accounts in
each class and the ratable allocation of related out-of-pocket expenses
(see Note 3).
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, Class R and Class Y shares
can reflect different transfer agent and distribution expense rates.
F. Risks
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund invests in below
investment grade (high yield) debt securities and preferred stocks. Some of
these high yield securities may be convertible into equity securities of
the issuer. Debt securities rated below investment grade are commonly
referred to as "junk bonds" and are considered speculative. These
securities involve greater risk of loss, are subject to greater price
volatility, and are less liquid, especially during periods of economic
uncertainty or change, than higher rated debt securities. The Fund's
prospectus contains unaudited information regarding the Fund's principal
risks. Please refer to that document when considering the Fund's principal
risks.
56 Pioneer High Yield Fund | Annual Report | 10/31/15
G. Insurance linked securities (ILS)
The Fund invests in event-linked bonds. Event-linked bonds are floating
rate debt obligations for which the return of principal and the payment of
interest are contingent on the non-occurrence of a pre-defined "trigger"
event, such as a hurricane or an earthquake of a specific magnitude. The
trigger event's magnitude may be based on losses to a company or industry,
industry indexes or readings of scientific instruments, or may be based on
specified actual losses. If a trigger event, as defined within the terms of
an event-linked bond occurs, the Fund may lose a portion or all of its
accrued interest and/or principal invested in such event-linked bond. The
Fund is entitled to receive principal and interest payments so long as no
trigger event occurs of the description and magnitude specified by the
instrument. In addition to the specified trigger events, event-linked bonds
may expose the Fund to other risks, including but not limited to issuer
(credit) default, adverse regulatory or jurisdictional interpretations and
adverse tax consequences.
The Fund's investments in ILS may include special purpose vehicles ("SPVs")
or similar instruments structured to comprise a portion of a reinsurer's
catastrophe-oriented business, known as quota share instruments (sometimes
referred to as reinsurance sidecars), or to provide reinsurance relating to
specific risks to insurance or reinsurance companies through a
collateralized instrument, known as collateralized reinsurance. Structured
reinsurance investments, which also may include industry loss warranties
("ILWs"), are subject to the same risks as event-linked bonds. In addition,
because quota share instruments represent an interest in a basket of
underlying reinsurance contracts, the Fund has limited transparency into
the individual underlying contracts and therefore must rely upon the risk
assessment and sound underwriting practices of the issuer. Accordingly, it
may be more difficult for PIM to fully evaluate the underlying risk profile
of the Fund's investment in quota share instruments and therefore place the
Fund's assets at greater risk of loss than if PIM had more complete
information.
Quota share instruments and other structured reinsurance instruments
generally will be considered illiquid securities by the Fund. These
securities may be difficult to purchase, sell or unwind. Illiquid
securities also may be difficult to value. If the Fund is forced to sell an
illiquid asset, the Fund may be forced to sell at a loss.
G. 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
Pioneer High Yield Fund | Annual Report | 10/31/15 57
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 October 31, 2015,
was $2,614,000. Subsequent payments for futures contracts ("variation
margin") are paid or received by the Fund, depending on the daily
fluctuation in the value of the contracts, and are recorded by the Fund as
unrealized 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
year ended October 31, 2015, was $(26,675,028).
At October 31, 2015, open futures contracts were as follows:
---------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation
Type Counterparty Long/(Short) Month Value (Depreciation)
---------------------------------------------------------------------------
S&P 500 Citibank N.A. (568) 12/15 $(58,893,080) $ (2,956,440)
---------------------------------------------------------------------------
Total (568) $(58,893,080) $ (2,956,440)
===========================================================================
H. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may sell
or buy credit default swap contracts to seek to increase the Fund's income,
or to attempt to hedge the risk of default on portfolio securities. A
credit default swap index is used to hedge risk or take a position on a
basket of credit entities or indices. As a seller of protection, the Fund
would be required to pay the notional (or other agreed-upon) value of the
referenced debt obligation to the counterparty in the event of a default by
a U.S. or foreign corporate issuer of a debt obligation, which would likely
result in a loss to the Fund. In return, the Fund would receive from the
counterparty a periodic stream of payments during the term of the contract
provided that no event of default occurred. The maximum exposure of loss to
the seller would be the notional value of the credit default swaps
outstanding. If no default occurs, the Fund would keep the stream of
payments and would have no payment obligation. The Fund may also buy credit
default swap contracts in order to hedge against the risk of default of
debt securities, in which case the Fund would function as the counterparty
referenced above.
58 Pioneer High Yield Fund | Annual Report | 10/31/15
When the Fund enters into a credit default swap contract, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the right to receive a contingent payment. An upfront payment
made by the Fund, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made as a result of a credit
event or upon termination of the contract are recognized, net of the
appropriate amount of the upfront payment, as realized gains or losses in
the Statement of Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as variation margin on
centrally cleared swaps on the Statement of Assets and Liabilities.
Open credit default swap contracts at October 31, 2015, are listed in the
Schedule of Investments. The average value of credit default swap contracts
open during the period ended October 31, 2015, was $1,486,870.
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 $500 million, 0.65% of the next $500
million, 0.60% of the next $4 billion, 0.55% of the next $1 billion, 0.50% of
the next $1 billion, 0.45% of the next $1 billion, 0.40% of the next $1 billion,
0.35% of the next $1 billion, and 0.30% on assets over $10 billion. For the year
Pioneer High Yield Fund | Annual Report | 10/31/15 59
ended October 31, 2015, the effective management fee (excluding waivers
and/or assumption of expenses) was equivalent to 0.65% of the Fund's average
daily net assets.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Class Z expenses to 0.85% of the average daily net assets.
Fees waived and expenses reimbursed during the year ended October 31, 2015, are
reflected on the Statement of Operations. This expense limitation was in effect
through August 7, 2015, for Class Z shares. There can be no assurance that PIM
will extend the expense limitation agreement beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$68,448 in management fees, administrative costs and certain other
reimbursements payable to PIM at October 31, 2015.
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly owned
indirect subsidiary of UniCredit, provided substantially all transfer agent and
shareowner services to the Fund at negotiated rates.
In addition, the Fund reimbursed PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the year ended October 31, 2015, such out-of-pocket expenses by class of shares
were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 880,043
Class B 245
Class C 416,300
Class R 104,824
Class Y 264,777
Class Z 7,626
--------------------------------------------------------------------------------
Total $1,673,815
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $367,588 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at October 31, 2015.
60 Pioneer High Yield Fund | Annual Report | 10/31/15
4. Distribution and Service Plans
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class C and Class R
shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the
average daily net assets attributable to Class C shares. The fee for Class C
shares consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class C shares. Pursuant to the Plan, the
Fund further pays PFD 0.50% of the average daily net assets attributable to
Class R shares for distribution services. Included in "Due to affiliates"
reflected on the Statement of Assets and Liabilities is $83,977 in distribution
fees payable to PFD October 31, 2015.
The Fund also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Fund a
service fee of up to 0.25% of the Fund's average daily net assets attributable
to Class R shares held by such plans.
In addition, redemptions of each class of shares (except Class R and Class Y
shares) may be subject to a contingent deferred sales charge (CDSC). A CDSC of
1.00% may be imposed on redemptions of certain net asset value purchases of
Class A shares within 12 months of purchase. Redemptions of Class C shares
within 12 months of purchase are subject to a CDSC of 1.00% based on the lower
of cost or market value of shares being redeemed. Shares purchased as part of an
exchange remain subject to any CDSC that applied to the original purchase of
those shares. There is no CDSC for Class R or Class Y shares. Proceeds from the
CDSCs are paid to PFD. For the year ended October 31, 2015, CDSCs in the amount
of $10,304 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses, due to interest earned
on cash held by PIMSS. For the year ended October 31, 2015, the Fund's expenses
were not reduced under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund
Pioneer High Yield Fund | Annual Report | 10/31/15 61
may borrow up to the lesser of the amount available under the facility or the
limits set for borrowing by the Fund's prospectus and the 1940 Act. The credit
facility in effect until June 9, 2015, was in the amount of $215 million. As of
June 9, 2015, the facility is in the amount of $240 million. Under such
facility, depending on the type of loan, interest on borrowings is payable at
the London Interbank Offered Rate (LIBOR) plus 0.85% on an annualized basis, or
the Alternate Base Rate, which is the greater of (a) the facility's
administrative agent's daily announced prime rate on the borrowing date, (b) 2%
plus the Federal Funds Rate on the borrowing date and (c) 2% plus the overnight
Eurodollar rate on the borrowing date. The Funds pay an annual commitment fee to
participate in a credit facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the year ended October 31, 2015, the Fund had no borrowings under
the credit facility.
7. Bridge Loan Commitments
Bridge loans are designed to provide temporary or "bridge" financing to a
borrower pending the sale of identified assets or the arrangement of longer-
term loans or the issuance and sale of debt obligations.
As of October 31, 2015, the Portfolio had one bridge loan commitment of
$3,235,870, which could be extended at the option of the borrower, pursuant to
the following loan agreements:
--------------------------------------------------------------------------------
Unrealized
Appreciation/
Loan Shares Cost Value Depreciation
--------------------------------------------------------------------------------
Charter
Communications
Operating LLC,
Bridge Loan 3,235,870 $3,235,870 $3,235,870 $--
--------------------------------------------------------------------------------
Total 3,235,870 $3,235,870 $3,235,870 $--
================================================================================
8. Additional Disclosures about Derivative Instruments and Hedging Activities
The Fund's use of derivatives subjects it to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Fund.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
62 Pioneer High Yield Fund | Annual Report | 10/31/15
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at October 31,
2015, was as follows:
---------------------------------------------------------------------------------------------
Statement of Assets and Liabilities
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
---------------------------------------------------------------------------------------------
Assets
Unrealized appreciation
on swap contracts $ -- $1,133,079 $ -- $ -- $ --
---------------------------------------------------------------------------------------------
Total Value $ -- $1,133,079 $ -- $ -- $ --
=============================================================================================
Liabilities
Unrealized depreciation
on future contracts $ -- $ -- $ -- $(2,956,440) $ --
---------------------------------------------------------------------------------------------
Total Value $ -- $ -- $ -- $(2,956,440) $ --
=============================================================================================
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at October 31, 2015, was as follows:
---------------------------------------------------------------------------------------------
Statement of Operations
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
---------------------------------------------------------------------------------------------
Net realized gain (loss) on
Swap contracts $ -- $ (426,643) $ -- $ -- $ --
Futures contracts -- -- -- 2,805,363 --
---------------------------------------------------------------------------------------------
Total Value $ -- $ (426,643) $ -- $ 2,805,363 $ --
=============================================================================================
Change in net unrealized
appreciation (depreciation) on
Swap contracts $ -- $1,133,079 $ -- $ -- $ --
Futures contracts - - -- -- (2,956,440) --
---------------------------------------------------------------------------------------------
Total Value $ -- $1,133,079 $ -- $(2,956,440) $ --
=============================================================================================
Pioneer High Yield Fund | Annual Report | 10/31/15 63
9. Conversion of Class B Shares and Class Z Shares
As of the close of business on November 10, 2014 (the "Conversion Date"), all
outstanding Class B shares of the Fund were converted to Class A shares.
As of the close of business on August 7, 2015 (the "Conversion Date"), all
outstanding Class Z shares of the Fund were converted to Class Y shares.
11. Pending Litigation
The Fund is currently involved in a litigation matter relating to Fund
investments. Currently, the amount of a judgment cannot be reasonably estimated.
The plaintiff in the matter seeks to recover approximately $73 million in
principal from the Fund, together with interest. The Fund believes the claim is
without merit and is defending the matter vigorously. On January 14, 2014, Judge
Gerber of the United States Bankruptcy Court for the Southern District of New
York issued a Decision and Order on Motions to Dismiss in the litigation. Judge
Gerber denied in part and granted in part the motions to dismiss. The plaintiff
filed a third amended complaint on April 18, 2014. Defendants filed a renewed
motion to dismiss on July 30, 2014. Oral argument on the motion to dismiss took
place on January 14 and 15, 2015. On November 18, 2015, Judge Gerber granted the
renewed motion to dismiss the count of the complaint for fraudulent transfers
made with actual intent. The renewed motion to dismiss the constructive
fraudulent transfer count was denied. We subsequently moved for reconsideration
of the decision on the constructive fraudulent transfer count; this motion was
denied on December 7, 2015. Factual discovery has commenced and will run through
mid-May 2016. It is reasonably possible that an adverse outcome may result. On
December 4, 2014, the plaintiff made a settlement offer to all defendants in the
Fund litigation. The plaintiff offered full settlement for 10% of the face
amount of the claims. A limited group of small holders accepted the settlement
offer. On April 24, 2015, the plaintiff renewed its settlement offer, offering
full settlement for 8.5% of the face amount of the claims. The renewed
settlement offer was not accepted. We are not aware of a current outstanding
settlement offer.
64 Pioneer High Yield Fund | Annual Report | 10/31/15
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of Pioneer High Yield Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer High Yield Fund as of October 31, 2015,
and the related statement of operations for the year then ended and the
statements of changes in net assets and the financial highlights for each of the
two years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights for the years ended October 31,
2013, 2012, and 2011 were audited by other auditors. Those auditors expressed an
unqualified opinion on those financial statements and financial highlights in
their report dated December 23, 2013.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of October 31, 2015, by correspondence with the
custodian, brokers and agent banks; where replies were not received from brokers
or agent banks, we performed other auditing procedures. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer High Yield Fund as of October 31, 2015, the results of its operations
for the year then ended, and the changes in its net assets and the financial
highlights for each of the two years in the period then ended, in conformity
with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
December 23, 2015
Pioneer High Yield Fund | Annual Report | 10/31/15 65
Additional Information (unaudited)
Qualified interest income is exempt from nonresident alien (NRA) tax
withholding. The percentage of the Fund's ordinary income distributions derived
from qualified interest income and qualified short term gains were 79.19% and
15.20%, respectively.
PIM, the Fund's investment adviser, is currently an indirect, wholly owned
subsidiary of UniCredit. On November 11, 2015, UniCredit announced that it
signed a binding master agreement with Banco Santander and affiliates of Warburg
Pincus and General Atlantic (the "Private Equity Firms") with respect to Pioneer
Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as previously announced by UniCredit, will establish a holding
company, with the name Pioneer Investments, to be owned by UniCredit (50%) and
the Private Equity Firms (50% between them). The holding company will control
Pioneer's U.S. operations, including the Adviser. The holding company also will
own 66.7% of Pioneer's and SAM's combined operations outside the U.S., while
Banco Santander will own directly the remaining 33.3% stake. The closing of the
Transaction is expected to happen in 2016, subject to certain regulatory and
other approvals.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Fund's current investment advisory agreement with PIM to terminate.
Accordingly, the Fund's Board of Trustees will be asked to approve a new
investment advisory agreement. If approved by the Board, the Fund's new
investment advisory agreement will be submitted to the shareholders of the Fund
for their approval.
Subsequent Event (unaudited)
Effective November 2, 2015, Boston Financial Data Service became the transfer
agent to the Fund at negotiated rates.
66 Pioneer High Yield Fund | Annual Report | 10/31/15
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer 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 January 2015 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2015 and July
2015. Supplemental contract review materials were provided to the Trustees in
September 2015. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings in connection with the review of the Fund's
investment advisory agreement.
In March 2015, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In July 2015,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in September
2015.
At a meeting held on September 15, 2015, 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 approving the
renewal of the investment advisory agreement, the Trustees
Pioneer High Yield Fund | Annual Report | 10/31/15 67
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in 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 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 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
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the advisory
agreement.
68 Pioneer High Yield Fund | Annual Report | 10/31/15
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. In all
quintile rankings referred to below, first quintile is most favorable to the
Fund's shareowners.
The Trustees considered that the Fund's management fee for the most recent
fiscal year 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 most recent fiscal year was
in the fourth quintile relative to its Morningstar peer group and in the fourth
quintile relative its Strategic Insight peer group, in each case for the
comparable period. 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 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
Pioneer High Yield Fund | Annual Report | 10/31/15 69
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
to the Fund.
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, 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 including reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
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.
70 Pioneer High Yield Fund | Annual Report | 10/31/15
Pioneer is the principal U.S. asset management business of Pioneer Global Asset
Management, the worldwide asset management business of UniCredit Group, which
manages over $150 billion in assets (including the Funds). Pioneer and the Funds
receive reciprocal intangible benefits from the relationship, including mutual
brand recognition and, for the Funds, direct and indirect access to the
resources of a large global asset manager. The Trustees concluded that any such
benefits received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer High Yield Fund | Annual Report | 10/31/15 71
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations during at least the past five years. Trustees who are interested
persons of the Fund within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the Fund are
referred to as Independent Trustees. Each of the Trustees serves as a trustee of
each of the 50 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
72 Pioneer High Yield Fund | Annual Report | 10/31/15
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (65) Trustee since 2006. Private investor (2004 - 2008 and 2013 - Director, Broadridge
Chairman of the Board Serves until a present); Chairman (2008 - 2013) and Chief Financial Solutions, Inc.
and Trustee successor trustee Executive Officer (2008 - 2012), Quadriserv, Inc. (investor communications and
is elected or (technology products for securities lending securities processing
earlier retirement industry); and Senior Executive Vice President, provider for financial
or removal. The Bank of New York (financial and securities services industry) (2009 -
services) (1986 - 2004) present); Director,
Quadriserv, Inc. (2005 -
2013); and Commissioner, New
Jersey State Civil Service
Commission (2011 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (71) Trustee since 2005. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - Trust (publicly-traded
successor trustee 2004 and 2008 - present); Interim Chief Executive mortgage REIT) (2004 - 2009,
is elected or Officer, Oxford Analytica, Inc. (privately-held 2012 - present); Director of
earlier retirement research and consulting company) (2010); The Swiss Helvetia Fund, Inc.
or removal. Executive Vice President and Chief Financial (closed-end fund) (2010 -
Officer, I-trax, Inc. (publicly traded health care present); Director of Oxford
services company) (2004 - 2007); and Executive Analytica, Inc. (2008 -
Vice President and Chief Financial Officer, present); and Director of
Pedestal Inc. (internet-based mortgage trading Enterprise Community
company) (2000 - 2002); Private consultant Investment, Inc.
(1995-1997), Managing Director, Lehman Brothers (privately-held affordable
(investment banking firm) (1992-1995); and housing finance company)
Executive, The World Bank (1979-1992) (1985 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (71) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and
successor trustee Mellon Institutional Funds
is elected or Master Portfolio (oversaw 17
earlier retirement portfolios in fund complex)
or removal. (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer High Yield Fund | Annual Report | 10/31/15 73
Independent Trustees (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (68) Trustee since 1998. Founding Director, Vice President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc. (consulting
successor trustee firm) (1982 - present); Desautels Faculty of
is elected or Management, McGill University (1999 - present);
earlier retirement and Manager of Research Operations and
or removal. Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (67) Trustee since 1998. President and Chief Executive Officer, Newbury, Director of New America High
Trustee Serves until a Piret & Company, Inc. (investment banking firm) Income Fund, Inc. (closed-end
successor trustee (1981 - present) investment company) (2004 -
is elected or present); and Member, Board
earlier retirement of Governors, Investment
or removal. Company Institute (2000 -
2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (68) Trustee since 2014. Consultant (investment company services) (2012 - None
Trustee Serves until a present); Executive Vice President, BNY Mellon
successor trustee (financial and investment company services) (1969
is elected or - 2012); Director, BNY International Financing
earlier retirement Corp. (financial services) (2002 - 2012); and
or removal. Director, Mellon Overseas Investment Corp.
(financial services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
74 Pioneer High Yield Fund | Annual Report | 10/31/15
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (57)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer, U.S. (since
successor trustee 2010) of PIM-USA; Executive Vice President of
is elected or Pioneer (since 2008); Executive Vice President of
earlier retirement Pioneer Institutional Asset Management, Inc.
or removal. (since 2009); and Portfolio Manager of Pioneer
(since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer of the Fund's
investment adviser and certain of its affiliates.
Pioneer High Yield Fund | Annual Report | 10/31/15 75
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (59)** Advisory Trustee Chief Investment Officer, 1199 SEIU Funds Trustee of Pioneer
Advisory Trustee since 2014. (healthcare workers union pension funds) (2001 - closed-end investment
present); Vice President - International companies (5 portfolios)
Investments Group, American International Group, (Sept. 2015 - present)
Inc. (insurance company) (1993 - 2001); Vice
President Corporate Finance and Treasury Group,
Citibank, N.A.(1980 - 1986 and 1990 - 1993); Vice
President - Asset/Liability Management Group,
Federal Farm Funding Corporation
(government-sponsored issuer of debt securities)
(1988 - 1990); Mortgage Strategies Group,
Shearson Lehman Hutton, Inc. (investment bank)
(1987 - 1988); and Mortgage Strategies Group,
Drexel Burnham Lambert, Ltd. (investment bank)
(1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
** Ms. Monchak is a non-voting advisory trustee.
76 Pioneer High Yield Fund | Annual Report | 10/31/15
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (53) Since 2014. Serves Chair, Director, CEO and President of Pioneer Trustee of Pioneer
President and Chief at the discretion Investment Management-USA (since September 2014); closed-end investment
Executive Officer of the Board. Chair, Director, CEO and President of Pioneer companies (5 portfolios)
Investment Management, Inc. (since September (Sept. 2015 - present)
2014); Chair, Director, CEO and President of
Pioneer Funds Distributor, Inc. (since September
2014); Chair, Director, CEO and President of
Pioneer Institutional Asset Management, Inc.
(since September 2014); and Chair, Director, and
CEO of Pioneer Investment Management Shareholder
Services, Inc. (since September 2014); Managing
Director, Morgan Stanley Investment Management
(2010 - 2013); and Director of Institutional
Business, CEO of International, Eaton Vance
Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (50) Since 2003. Serves Vice President and Associate General Counsel of None
Secretary and Chief at the discretion Pioneer since January 2008; Secretary and Chief
Legal Officer of the Board. Legal Officer of all of the Pioneer Funds since
June 2010; Assistant Secretary of all of the
Pioneer Funds from September 2003 to May 2010;
and Vice President and Senior Counsel of Pioneer
from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (54) Since 2010. Serves Fund Governance Director of Pioneer since None
Assistant Secretary at the discretion December 2006 and Assistant Secretary of all the
of the Board. Pioneer Funds since June 2010; Manager - Fund
Governance of Pioneer from December 2003 to
November 2006; and Senior Paralegal of Pioneer
from January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (52) Since 2010. Serves Senior Counsel of Pioneer since May 2013 and None
Assistant Secretary at the discretion Assistant Secretary of all the Pioneer Funds
of the Board. since June 2010; and Counsel of Pioneer from June
2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2008. Serves Vice President - Fund Treasury of Pioneer; None
Treasurer and Chief at the discretion Treasurer of all of the Pioneer Funds since March
Financial and of the Board. 2008; Deputy Treasurer of Pioneer from March 2004
Accounting Officer to February 2008; and Assistant Treasurer of all
of the Pioneer Funds from March 2004 to February
2008
------------------------------------------------------------------------------------------------------------------------------------
Pioneer High Yield Fund | Annual Report | 10/31/15 77
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (50) Since 1998. Serves Director - Fund Treasury of Pioneer; and None
Assistant Treasurer at the discretion Assistant Treasurer of all of the Pioneer Funds
of the Board.
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (57) Since 2002. Serves Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer at the discretion Pioneer; and Assistant Treasurer of all of the
of the Board. Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (35) Since 2009. Serves Fund Administration Manager - Fund Treasury of None
Assistant Treasurer at the discretion Pioneer since November 2008; Assistant Treasurer
of the Board. of all of the Pioneer Funds since January 2009;
and Client Service Manager - Institutional
Investor Services at State Street Bank from March
2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (63) Since 2010. Serves Chief Compliance Officer of Pioneer and of all the None
Chief Compliance Officer at the discretion Pioneer Funds since March 2010; Chief Compliance
of the Board. Officer of Pioneer Institutional Asset Management,
Inc. since January 2012; Chief Compliance Officer
of Vanderbilt Capital Advisors, LLC since July
2012: Director of Adviser and Portfolio
Compliance at Pioneer since October 2005; and
Senior Compliance Officer for Columbia Management
Advisers, Inc. from October 2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (44) Since 2006. Serves Director - Transfer Agency Compliance of Pioneer None
Anti-Money Laundering Officer at the discretion and Anti-Money Laundering Officer of all the
of the Board. Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
78 Pioneer High Yield Fund | Annual Report | 10/31/15
This page for your notes.
Pioneer High Yield Fund | Annual Report | 10/31/15 79
This page for your notes.
80 Pioneer High Yield Fund | Annual Report | 10/31/15
This page for your notes.
Pioneer High Yield Fund | Annual Report | 10/31/15 81
This page for your notes.
82 Pioneer High Yield Fund | Annual Report | 10/31/15
This page for your notes.
Pioneer High Yield Fund | Annual Report | 10/31/15 83
This page for your notes.
84 Pioneer High Yield Fund | Annual Report | 10/31/15
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Pioneer Funds
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
InvestmentS(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2015 Pioneer Investments 19441-09-1215
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
The audit fees for the Fund were $50,566
payable to Deloitte & Touche LLP for the year ended
October 31, 2015 and $46,307 for the year ended October 31, 2014.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
There were no audit-related services in 2015 or 2014.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
The tax fees for the Fund were $8,750
payable to Deloitte & Touche LLP for the year ended
October 31, 2015 and $8,750 for the year ended October 31, 2014.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
There were no other fees in 2015 or 2014.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Fund's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Fund. For the
years ended October 31, 2015 and 2014, there were no
services provided to an affiliate that required the
Fund's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund were $8,750
payable to Deloitte & Touche LLP for the year ended
October 31, 2015 and $8,750 for the year ended October 31, 2014.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The 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 High Yield Fund
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 30, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 30, 2015
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 30, 2015
* Print the name and title of each signing officer under his or her signature.