OMB APPROVAL
OMB Number: 3235-0570
Expires: January 31, 2017
Estimated average burden
hours per response.....20.6
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 811-21978
Pioneer Series Trust VI
(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 Floating
Rate Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A FLARX
Class C FLRCX
Class K FLRKX
Class Y FLYRX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 44
Notes to Financial Statements 52
Report of Independent Registered Public Accounting Firm 64
Approval of Investment Advisory Agreement 66
Trustees, Officers and Service Providers 71
Pioneer Floating Rate 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 height ened 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 Floating Rate 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 Floating Rate Fund | Annual Report | 10/31/15 3
Portfolio Management Discussion | 10/31/15
Floating-rate bank loans produced modest investment returns during the 12-month
period ended October 31, 2015, as investors' confidence in the economy early in
the period gave way to worries about slowing global growth trends. In the
following interview, Jonathan Sharkey discusses the factors that influenced the
performance of Pioneer Floating Rate Fund during the 12-month period. Mr.
Sharkey, a senior vice president and a portfolio manager at Pioneer, is
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 Floating Rate Fund's Class A shares returned 1.53% at net asset
value during the 12-month period ended October 31, 2015, while the Fund's
benchmark, the Barclays High Yield Loans Performing Index (the Barclays
Index), returned 1.29%. During the same period, the average return of the
209 mutual funds in Lipper's Loan Participating Funds category was -0.01%,
and the average return of the 249 mutual funds in Morningstar's Bank Loan
Funds category was -0.02%.
Q How would you describe the investment environment for bank loans during the
12-month period ended October 31, 2015?
A Conflicting forces hit the bank loan market during the period. For a total
of six months, the market environment was positive, while the backdrop was
more negative during the other six months.
November and December of 2014, the first two months of the period,
foreshadowed the up-and-down market conditions during the Fund's entire
fiscal year. Bank loans turned in positive performance in November,
followed by a negative return for December, as the effects of falling oil
prices on energy-related loans acted as a drag on the market.
During the first five months of 2015, from January 1 through May 31, bank
loans performed positively as market demand for loan investments increased
based on a number of factors. They included investors' general confidence
in the health of the domestic economy, the credit-worthiness of bank loans,
and the perception that interest rates eventually would increase, which
would benefit floating-rate loan investments. That supportive backdrop
deteriorated, however, beginning in June, as a series of developments
combined to erode the confidence of market participants. Some of the issues
causing investors' concerns included a renewed debt crisis in Greece,
further declines in crude oil prices, and the slowing of economic growth in
China. All of those factors contributed to negative market sentiment, and
June 1 through October 31 marked the fourth-worst five-month performance
period in the history of bank loan investments. Despite the slump between
June and October, as of
4 Pioneer Floating Rate Fund | Annual Report | 10/31/15
period end, the year-to-date performance of bank loans, as measured by the
Barclays Index, remained in positive territory. Moreover, the asset class
had outperformed both high-yield and investment-grade securities over the
first 10 months of 2015.
Q What were the principal factors that affected the Fund's performance
relative to the Barclays Index benchmark during the 12-month period ended
October 31, 2015?
A The Fund slightly outperformed the Barclays Index during the 12-month
period, for several reasons. Primarily, the Fund's positive benchmark-
relative results benefited the most from our emphasis on holding
higher-quality loans than the Barclays Index; from the portfolio's below-
benchmark exposures to the poorer-performing energy sector; and from
overall favorable security selection results.
With regard to quality, during the period we maintained consistently lower
Fund exposures, compared with the benchmark, to loans rated B- or CCC. That
up-in-quality bias aided relative returns. At the same time, the Fund's
allocation to struggling energy sector loans was just over 3% of invested
assets, lower than that of the benchmark. In addition, the Fund had a
relatively small exposure to loans in the metals and mining industry, which
also underperformed during the 12-month period.
With regard to individual portfolio investments, the holding that
contributed the most to the Fund's benchmark-relative returns during the
period was a loan to Virtual Radiological, a corporation that provides
remote diagnostic imaging services to health care providers. The company
had been experiencing some financial difficulties, but the debt recovered
in value when the corporation was sold. Other portfolio positions that
performed well and helped the Fund's relative results included loans to
Ocwen Financial, Apex Tool, and DelMonte Foods.
While the Fund had relatively good selection results in the underperforming
energy and metals and mining groups, the 10 investments that detracted the
most from performance on an absolute return basis all came from those two
areas. In energy, the portfolio's underperforming holdings included loans
to Paragon Offshore, Ocean Rig and Pacific Drilling. In metals and mining,
holdings that detracted from Fund performance included loans to Essar Steel
and Fortescue Resources, an Australian mining company.
Also holding back the Fund's results, on a benchmark-relative basis, was an
investment in loans to Weight Watchers International. We substantially
reduced the Fund's position in Weight Watchers' loans and moved to an
underweight during the 12-month period. Unfortunately, the reduction
Pioneer Floating Rate Fund | Annual Report | 10/31/15 5
came prior to the announcement that media personality Oprah Winfrey was
acquiring a major stake in the company, which led to a sharp recovery in
the prices of the loans.
Q Did the Fund have any exposure to derivative securities during the 12-month
period ended October 31, 2015? If so, did the positions affect the Fund's
performance?
A Yes, the Fund held one credit default swap position during the period,
which was sold well before period end. The position had little to no impact
on the Fund's performance.
Q What factors affected the Fund's yield, or distributions to shareholders,
during the 12-month period ended October 31, 2015?
A The Fund's dividend* modestly declined during the fiscal year ended October
31st. Yields paid by higher-rated loans, such as those held in the Fund's
portfolio, tended to drift lower over the 12 months, as those loans saw
strong demand during a period when the market's appetite for lower-rated
loans tended to decline. Given the increased demand for the higher-quality
loans, there was little pressure for yields to increase.
Q What is your investment outlook?
A Recent job-creation data, which remains solid, combined with a relatively
low unemployment rate - now hovering at around 5% - increases the
likelihood that the U.S. Federal Reserve System (the Fed) could start
raising short-term interest rates perhaps as soon as the end of 2015, or
early in 2016. Any increase in short-term interest rates likely will have a
favorable impact on both the yields and prices of floating-rate bank loans,
although the effects may not be immediately felt. Bank loans recently have
been trading at discounted prices that, in our opinion, overstate both
current and likely future default risks, and so we believe loans continue
to offer attractive investment value.
We also think floating-rate bank loans represent a good relative value
compared with traditional income-oriented, longer-duration investment
alternatives, such as bonds. If market interest rates, like the rate on
10-year Treasuries, start to rise, we think longer-duration bond funds will
experience price pressures, while the floating-rate feature of bank loans,
on the other hand, can provide some price protection. (Duration is a
measure of the sensitivity of the price, or the value of principal, of a
fixed-income investment to a change in interest rates, expressed as a
number of years).
* Dividends are not guaranteed.
6 Pioneer Floating Rate Fund | Annual Report | 10/31/15
Overall, we believe floating-rate bank loans represent a good investment
opportunity for appropriate investors, and that prospects for the loan
market should improve even more once market interest rates begin to rise.
From that point, the key risk going forward would be any macroeconomic
event that might make the Fed hit the "pause button" on any further rate
increases, or any regulatory issue that disrupts future CLO issuance, as
CLOs have been a market-stabilizing investor in the bank-loan asset class
over the past two years.
Please refer to the Schedule of Investments on pages 16-43 for a full listing of
Fund securities.
Debt securities rated below investment grade are commonly referred to as "junk
bonds" and are considered speculative. Below-investment-grade debt 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 may invest in high-yield securities of
any rating, including securities that are in default at the time of purchase.
Securities with floating interest rates generally are less sensitive to interest
rate changes but may decline in value if their interest rates do not rise as
much, or as quickly, as prevailing interest rates. Unlike fixed-rate securities,
floating-rate securities generally will not increase in value if interest rates
decline. Changes in interest rates also will affect the amount of interest
income the Fund earns on its floating-rate investments.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 7
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]
Senior Secured Loans 93.1%
International Corporate Bonds 1.9%
U.S. Government Securities 1.5%
U.S. Corporate Bonds 1.4%
Temporary Cash Investment 1.0%
Asset Backed Securities 0.5%
U.S. Preferred Stocks 0.2%
Exchange Traded Fund 0.2%
U.S. Common Stocks 0.1%
Collateralized Mortgage Obligations 0.1%
Convertible Preferred Stocks 0.0%+
+ Amount rounds to less than 0.1%.
* Includes investments in Insurance Linked Securities totaling 1.4% of total
investment portfolio.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)**
1. Charter Communications Operating LLC, Term F Loan, 1/1/21 0.84%
--------------------------------------------------------------------------------
2. U.S. Treasury Note, Floating Rate Note, 4/30/17 0.79
--------------------------------------------------------------------------------
3. U.S. Treasury Note, Floating Rate Note, 1/31/17 0.79
--------------------------------------------------------------------------------
4. Albertsons LLC, Term B-2 Loan, 3/21/19 0.77
--------------------------------------------------------------------------------
5. CityCenter Holdings LLC, Term B Loan, 10/16/20 0.73
--------------------------------------------------------------------------------
6. American Airlines, Inc., 2015 Term Loan, 6/27/20 0.70
--------------------------------------------------------------------------------
7. PQ Corp., 2014 Term Loan, 8/7/17 0.62
--------------------------------------------------------------------------------
8. Avago Technologies Ltd., Tranche B Term Loan (First Lien), 4/16/21 0.61
--------------------------------------------------------------------------------
9. Tower Automotive Holdings USA LLC, Initial Term Loan (2014), 4/23/20 0.59
--------------------------------------------------------------------------------
10. CSM Bakery Solutions LLC, Term Loan (First Lien), 7/3/20 0.59
--------------------------------------------------------------------------------
** This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
8 Pioneer Floating Rate Fund | Annual Report | 10/31/15
Prices and Distributions | 10/31/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/15 10/31/14
--------------------------------------------------------------------------------
A $6.73 $6.86
--------------------------------------------------------------------------------
C $6.74 $6.87
--------------------------------------------------------------------------------
K $6.73 $6.86
--------------------------------------------------------------------------------
Y $6.75 $6.88
--------------------------------------------------------------------------------
Distributions per Share: 11/1/14-10/31/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2342 $ -- $ --
--------------------------------------------------------------------------------
C $0.1856 $ -- $ --
--------------------------------------------------------------------------------
K $0.2604 $ -- $ --
--------------------------------------------------------------------------------
Y $0.2605 $ -- $ --
--------------------------------------------------------------------------------
The Barclays High Yield Loans Performing Index is an unmanaged index that
provides broad and comprehensive total return metrics of the universe of
syndicated term loans. To be included in the index, a bank loan must be dollar
denominated, have at least $150 million in funded loans, a minimum term of one
year, and a minimum initial spread of LIBOR+1.25%. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees, expenses or sales charges. It is not possible to invest
directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 10-13.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 9
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 Floating Rate Fund at public
offering price during the periods shown, compared to that of the Barclays High
Yield Loans Performing Index.
Cumulative Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Net Public Barclays High
Asset Offering Yield Loans
Value Price Performing
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
Life of Class
(2/14/2007) 3.50% 2.96% 4.26%
5 Years 3.65 2.71 4.25
1 Year 1.53 -2.99 1.29
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.07%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Floating Barclays High Yield Loans
Rate Fund Performing Index
2/07 $ 9,550 $10,000
10/07 $ 9,670 $10,162
10/08 $ 7,972 $ 7,945
10/09 $ 9,845 $10,540
10/10 $10,774 $11,751
10/11 $11,095 $12,080
10/12 $11,919 $13,155
10/13 $12,424 $13,898
10/14 $12,694 $14,361
10/15 $12,889 $14,436
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.
POP returns reflect deduction of maximum 4.50% sales charge. NAV 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.
10 Pioneer Floating Rate Fund | Annual Report | 10/31/15
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 Floating Rate Fund during the
periods shown, compared to that of the Barclays High Yield Loans Performing
Index.
Cumulative Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Barclays High
Yield Loans
If If Performing
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life of Class
(2/14/2007) 2.69% 2.69% 4.26%
5 Years 2.91 2.91 4.25
1 Year 0.81 0.81 1.29
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.78%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Floating Barclays High Yield Loans
Rate Fund Performing Index
2/07 $10,000 $10,000
10/07 $10,070 $10,162
10/08 $ 8,211 $ 7,945
10/09 $10,069 $10,540
10/10 $10,921 $11,751
10/11 $11,176 $12,080
10/12 $11,898 $13,155
10/13 $12,327 $13,898
10/14 $12,503 $14,361
10/15 $12,605 $14,436
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 11
Performance Update | 10/31/15 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class K shares of Pioneer Floating Rate Fund during the
periods shown, compared to that of the Barclays High Yield Loans Performing
Index.
Cumulative Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Net Barclays High
Asset Yield Loans
Value Performing
Period (NAV) Index
--------------------------------------------------------------------------------
Life of Fund
(2/14/2007) 3.59% 4.26%
5 Years 3.81 4.25
1 Year 1.92 1.29
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.69%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Floating Barclays High Yield Loans
Rate Fund Performing Index
2/07 $10,000 $10,000
10/07 $10,121 $10,162
10/08 $ 8,344 $ 7,945
10/09 $10,304 $10,540
10/10 $11,277 $11,751
10/11 $11,613 $12,080
10/12 $12,475 $13,155
10/13 $13,004 $13,898
10/14 $13,339 $14,361
10/15 $13,595 $14,436
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class K shares for the period prior to the
commencement of operations of Class K shares on December 10, 2013, is the net
asset value performance of the Fund's Class A shares, which has not been
restated to reflect any differences in expenses, including Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares generally are higher
than those of Class K shares, the performance of Class K shares prior to their
inception would have been higher than the performance shown. For the period
beginning December 10, 2013, the actual performance of Class K shares is
reflected. Class K shares are not subject to sales charges and are available for
limited groups of eligible investors, including institutional investors. All
results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Floating Rate Fund | Annual Report | 10/31/15
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 Floating Rate Fund during the
periods shown, compared to that of the Barclays High Yield Loans Performing
Index.
Cumulative Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Net Barclays High
Asset Yield Loans
Value Performing
Period (NAV) Index
--------------------------------------------------------------------------------
Life of Class
(2/14/2007) 3.75% 4.26%
5 Years 3.99 4.25
1 Year 1.92 1.29
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.82% 0.70%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Floating Barclays High Yield Loans
Rate Fund Performing Index
2/07 $5,000,000 $5,000,000
10/07 $5,061,980 $5,080,852
10/08 $4,174,504 $3,972,310
10/09 $5,163,652 $5,270,050
10/10 $5,665,295 $5,875,608
10/11 $5,841,313 $6,039,967
10/12 $6,295,679 $6,577,577
10/13 $6,595,680 $6,948,991
10/14 $6,760,856 $7,180,379
10/15 $6,890,708 $7,218,025
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2016, for Class Y shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Floating Rate Fund
Based on actual returns from May 1, 2015, through October 31, 2015.
--------------------------------------------------------------------------------
Share Class A C K Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/15
--------------------------------------------------------------------------------
Ending Account $ 996.96 $ 993.59 $ 997.65 $ 999.22
Value (after expenses)
on 10/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 5.44 $ 9.10 $ 3.57 $ 3.53
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.08%, 1.81%,
0.71% and 0.70% for class A, C, K and Y shares, respectively, multiplied by
the average account value over the period, multiplied by 184/365 (to
reflect the one-half year period).
14 Pioneer Floating Rate Fund | Annual Report | 10/31/15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Floating Rate 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 K Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/15
--------------------------------------------------------------------------------
Ending Account $1,019.76 $1,016.08 $1,021.63 $1,021.68
Value (after expenses)
on 10/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 5.50 $ 9.20 $ 3.62 $ 3.57
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.08%, 1.81%,
0.71% and 0.70% for class A, C, K and Y shares, respectively, multiplied by
the average account value over the period, multiplied by 184/365 (to
reflect the one-half year period).
Pioneer Floating Rate Fund | Annual Report | 10/31/15 15
Schedule of Investments | 10/31/15
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 0.3%
BANKS -- 0.1%
Diversified Banks -- 0.1%
18,434 7.88 Citigroup Capital XIII, Floating Rate Note, 10/30/40 $ 468,224
1,567 6.00 US Bancorp, Floating Rate Note (Perpetual) 41,996
-------------
$ 510,220
-------------
Total Banks $ 510,220
--------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.2%
Consumer Finance -- 0.2%
40,000 8.12 GMAC Capital Trust I, Floating Rate Note, 2/15/40 $ 1,033,200
-------------
Total Diversified Financials $ 1,033,200
--------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $1,608,754) $ 1,543,420
--------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 0.0%+
CAPITAL GOODS -- 0.0%+
Industrial Machinery -- 0.0%+
1,000 Stanley Black & Decker, Inc., 4.75%, 11/17/15 $ 145,250
-------------
Total Capital Goods $ 145,250
--------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $100,000) $ 145,250
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.1%
COMMERCIAL SERVICES & SUPPLIES -- 0.0%+
Diversified Support Services -- 0.0%+
32 IAP Worldwide Services, Inc. $ 44,589
-------------
Total Commercial Services & Supplies $ 44,589
--------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.0%+
Auto Parts & Equipment -- 0.0%+
50 Lear Corp. $ 6,253
-------------
Total Automobiles & Components $ 6,253
--------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.1%
Education Services -- 0.1%
26,266 Cengage Learning Holdings II, Inc. $ 636,950
-------------
Total Consumer Services $ 636,950
--------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,031,142) $ 687,792
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Floating Rate Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 0.1%
BANKS -- 0.1%
Thrifts & Mortgage Finance -- 0.1%
500,000 1.77 KKR Financial CLO 2007-1, Ltd., Floating Rate
Note, 5/15/21 (144A) $ 498,078
-------------
Total Banks $ 498,078
--------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.0%+
Specialized Finance -- 0.0%+
253,854 0.63 Lease Investment Flight Trust, Floating Rate
Note, 7/15/31 $ 139,620
253,854 0.59 Lease Investment Flight Trust, Floating Rate
Note, 7/15/31 121,850
-------------
$ 261,470
-------------
Total Diversified Financials $ 261,470
--------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $839,135) $ 759,548
--------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 0.1%
DIVERSIFIED FINANCIALS -- 0.1%
Other Diversified Financial Services -- 0.1%
373,586 4.19 Velocity Commercial Capital Loan Trust 2011-1,
Floating Rate Note, 8/25/40 (144A) $ 358,643
-------------
Total Diversified Financials $ 358,643
--------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $331,443) $ 358,643
--------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 3.2%
ENERGY -- 0.4%
Oil & Gas Drilling -- 0.0%+
100,000 7.50 Offshore Group Investment, Ltd., 7.5%, 11/1/19 (e) $ 29,375
--------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.1%
800,000 WPX Energy, Inc., 7.5%, 8/1/20 $ 748,000
--------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.3%
1,405,000 NuStar Logistics LP, 6.75%, 2/1/21 $ 1,461,200
-------------
Total Energy $ 2,238,575
--------------------------------------------------------------------------------------------------
MATERIALS -- 0.3%
Specialty Chemicals -- 0.1%
900,000 INEOS Group Holdings SA, 5.875%, 2/15/19 (144A) $ 900,000
--------------------------------------------------------------------------------------------------
Construction Materials -- 0.1%
350,000 Cemex SAB de CV, 5.875%, 3/25/19 (144A) $ 353,850
--------------------------------------------------------------------------------------------------
Paper Products -- 0.1%
795,000 Resolute Forest Products, Inc., 5.875%, 5/15/23 $ 592,275
-------------
Total Materials $ 1,846,125
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 17
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.1%
Construction & Engineering -- 0.1%
750,000 MasTec, Inc., 4.875%, 3/15/23 $ 628,125
--------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.0%+
250,000 WireCo WorldGroup, Inc., 9.5%, 5/15/17 $ 227,500
-------------
Total Capital Goods $ 855,625
--------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.1%
Homebuilding -- 0.1%
335,000 Brookfield Residential Properties, Inc., 6.125%,
7/1/22 (144A) $ 329,138
-------------
Total Consumer Durables & Apparel $ 329,138
--------------------------------------------------------------------------------------------------
MEDIA -- 0.3%
Advertising -- 0.1%
770,000 MDC Partners, Inc., 6.75%, 4/1/20 (144A) $ 783,475
--------------------------------------------------------------------------------------------------
Broadcasting -- 0.1%
210,000 0.83 NBCUniversal Enterprise, Inc., Floating Rate Note,
4/15/16 (144A) $ 210,236
--------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.1%
540,000 Virgin Media Secured Finance Plc, 5.375%,
4/15/21 (144A) $ 567,000
-------------
Total Media $ 1,560,711
--------------------------------------------------------------------------------------------------
RETAILING -- 0.1%
Specialty Stores -- 0.1%
660,000 Outerwall, Inc., 6.0%, 3/15/19 $ 656,700
-------------
Total Retailing $ 656,700
--------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.0%+
Packaged Foods & Meats -- 0.0%+
229,000 Chiquita Brands International, Inc., 7.875%, 2/1/21 $ 243,026
-------------
Total Food, Beverage & Tobacco $ 243,026
--------------------------------------------------------------------------------------------------
BANKS -- 0.1%
Diversified Banks -- 0.1%
500,000 1.10 Bank of America Corp., Floating Rate Note, 3/22/16 $ 500,848
180,000 5.95 Citigroup, Inc., Floating Rate Note (Perpetual) 178,650
-------------
$ 679,498
-------------
Total Banks $ 679,498
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Floating Rate Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Specialized Finance -- 0.1%
615,000 Nationstar Mortgage LLC, 6.5%, 8/1/18 $ 603,469
-------------
Total Diversified Financials $ 603,469
--------------------------------------------------------------------------------------------------
INSURANCE -- 1.3%
Reinsurance -- 1.3%
500,000 5.95 Alamo Re, Ltd., Floating Rate Note, 6/7/18 (Cat
Bond) (144A) $ 519,100
500,000 3.52 Atlas IX Capital, Ltd., Floating Rate Note, 1/17/19
(Cat Bond) (144A) 508,600
250,000 8.33 Atlas Reinsurance VII, Ltd., Floating Rate Note,
1/7/16 (Cat Bond) (144A) 252,225
500,000 4.37 Blue Danube II, Ltd., Floating Rate Note, 5/23/16
(Cat Bond) (144A) 497,450
250,000 6.86 Caelus Re, Ltd., Floating Rate Note, 4/7/17 (Cat
Bond) (144A) 258,025
250,000 0.00 Compass Re II, Ltd., Floating Rate Note, 6/8/16
(Cat Bond) 249,050
250,000 9.06 East Lane Re V, Ltd., Floating Rate Note, 3/16/16
(Cat Bond) (144A) 255,925
548,100 Exeter Segregated Account (Kane SAC Ltd.), Variable
Rate Notes, 1/7/16 (f) 596,223
650,000 4.77 Kilimanjaro Re, Ltd., Floating Rate Note, 4/30/18
(Cat Bond) (144A) 650,975
350,000 4.27 Longpoint Re, Ltd. III, Floating Rate Note, 5/18/16
(Cat Bond) (144A) 352,415
500,000 7.27 Northshore Re, Ltd., Floating Rate Note, 7/5/16
(Cat Bond) (144A) 512,150
500,000 0.00 PennUnion Re, Ltd., Floating Rate Note, 12/7/18
(Cat Bond) (144A) 500,600
600,000 8.60 Queen Street VII Re, Ltd., Floating Rate Note,
4/8/16 (Cat Bond) (144A) 601,320
350,000 10.03 Residential Reinsurance 2012, Ltd., Floating Rate
Note, 6/6/16 (Cat Bond) (144A) 365,540
250,000 9.28 Residential Reinsurance 2013, Ltd., Floating Rate
Note, 6/6/17 (Cat Bond) (144A) 264,625
500,000 3.51 Sanders Re, Ltd., Floating Rate Note, 5/5/17 (Cat
Bond) (144A) 499,550
500,000 3.87 Sanders Re, Ltd., Floating Rate Note, 6/7/17 (Cat
Bond) (144A) 506,200
250,000 11.32 Successor X, Ltd., Floating Rate Note, 11/10/15
(Cat Bond) (144A) 250,125
250,000 8.49 Tar Heel Re, Ltd., Floating Rate Note, 5/9/16 (Cat
Bond) (144A) 257,450
-------------
$ 7,897,548
-------------
Total Insurance $ 7,897,548
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 19
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.1%
Semiconductors -- 0.1%
750,000 Micron Technology, Inc., 5.25%, 8/1/23 (144A) $ 732,742
-------------
Total Semiconductors & Semiconductor Equipment $ 732,742
--------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.1%
Wireless Telecommunication Services -- 0.1%
550,000 0.66 Vodafone Group Plc, Floating Rate Note, 2/19/16 $ 549,744
-------------
Total Telecommunication Services $ 549,744
--------------------------------------------------------------------------------------------------
UTILITIES -- 0.2%
Gas Utilities -- 0.0%+
250,000 Ferrellgas LP, 6.5%, 5/1/21 $ 231,875
--------------------------------------------------------------------------------------------------
Independent Power Producers & Energy
Traders -- 0.2%
521,000 NRG Energy, Inc., 6.25%, 7/15/22 $ 479,320
375,000 Star Energy Geothermal Wayang Windu, Ltd.,
6.125%, 3/27/20 (144A) 364,688
-------------
$ 844,008
-------------
Total Utilities $ 1,075,883
--------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $19,890,116) $ 19,268,784
--------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 1.5%
4,445,000 0.10 U.S. Treasury Note, Floating Rate Note, 1/31/17 $ 4,444,280
-------------
4,450,000 0.09 U.S. Treasury Note, Floating Rate Note, 4/30/17 4,447,552
--------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $8,896,659) $ 8,891,832
--------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 88.6%**
ENERGY -- 3.6%
Oil & Gas Drilling -- 0.8%
2,992,091 6.00 Drillships Financing Holding, Inc., Tranche B-1
Term Loan, 3/31/21 (g) $ 1,742,893
1,750,000 7.50 Jonah Energy LLC, Term Loan (Second Lien), 5/8/21 1,378,125
346,110 5.75 Offshore Group Investment, Ltd., Term Loan,
3/28/19 (e) (g) 103,256
1,208,040 4.50 Pacific Drilling SA, Term Loan, 6/3/18 (g) 665,428
1,980,000 3.75 Paragon Offshore Finance, Term Loan, 7/16/21 (g) 782,100
-------------
$ 4,671,802
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Floating Rate Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.8%
691,250 3.75 77 Energy, Tranche B Loan (First Lien), 6/17/21 $ 578,346
1,770,509 3.88 Fieldwood Energy LLC, Closing Date Loan, 9/25/18 1,571,327
1,670,250 5.75 FR Dixie Acquisition Corp., Term Loan, 1/23/21 1,252,688
1,012,188 5.25 McDermott International, Inc., Tranche B Loan
(First Lien), 4/11/19 994,474
-------------
$ 4,396,835
--------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.6%
1,634,277 5.25 ExGen Renewables I LLC, Term Loan, 2/5/21 $ 1,646,534
214,073 4.50 Glenn Pool Oil & Gas Trust, Term Loan, 5/2/16 213,538
1,350,938 4.00 Seadrill Operating LP, Initial Term Loan, 2/14/21 794,351
997,500 5.00 TerraForm AP Acquisition Holdings LLC, Term
Loan, 6/26/22 977,550
-------------
$ 3,631,973
--------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.6%
1,650,000 3.50 EP Energy LLC, Tranche B-3 Loan, 5/24/18 $ 1,492,219
943,314 0.00 Penn Products Terminals, LLC Tranche B Term Loan,
4/1/22 (d) 947,441
1,355,936 5.50 TPF II Power, LLC, Term Loan, 10/2/21 1,356,275
-------------
$ 3,795,935
--------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.7%
1,516,005 4.25 Chelsea Petroleum Products I LLC, Term B
Loan 7/22/22 $ 1,503,372
936,059 0.00 Pilot Travel Centers LLC, Initial Tranche B Term
Loan, 10/30/21 (d) 941,521
1,768,500 4.25 Western Refining, Inc., Term Loan 2013, 11/12/20 1,739,024
-------------
$ 4,183,917
--------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.1%
464,706 0.00 Energy Transfer Equity, First Lien Term Loan,
12/2/19 (d) $ 452,023
--------------------------------------------------------------------------------------------------
Coal & Consumable Fuels -- 0.0%+
195,833 18.15 Bumi Resources Tbk PT, Term Loan, 11/7/15 $ 63,646
-------------
Total Energy $ 21,196,131
--------------------------------------------------------------------------------------------------
MATERIALS -- 9.5%
Commodity Chemicals -- 0.6%
1,247,489 4.50 AZ Chem US, Inc., Tranche B Term Loan (First
Lien), 6/9/21 $ 1,248,113
2,406,120 4.25 Tronox Pigments Holland BV, New Term Loan,
3/19/20 2,219,215
-------------
$ 3,467,328
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 21
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.9%
498,750 0.00 Chemours Company, Tranche B Term Loan, 5/12/22 (d) $ 455,525
2,125,180 5.00 Nexeo Solutions LLC, Initial Term Loan, 2/26/17 2,045,486
948,120 4.25 OXEA Sarl, Tranche B-2 Term Loan (First Lien), 1/15/20 912,566
1,995,595 3.75 Tata Chemicals North America, Inc., Term Loan, 8/7/20 1,982,707
-------------
$ 5,396,284
--------------------------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 0.2%
997,500 4.25 Methanol Holdings Limited, Initial Term Loan, 6/2/22 $ 950,119
--------------------------------------------------------------------------------------------------
Specialty Chemicals -- 2.7%
1,740,064 4.50 Allnex Luxembourg & CY SCA, Tranche B-1
Term Loan, 10/4/19 $ 1,743,871
902,835 4.50 Allnex Luxembourg & CY SCA, Tranche B-2
Term Loan, 10/4/19 904,811
2,311,981 3.75 Axalta Coating Systems US Holdings, Inc.,
Refinanced Term B Loan, 2/1/20 2,309,091
321,135 3.50 Chemtura Corp., New Term Loan, 8/29/16 320,867
851,023 3.26 Huntsman International LLC, 2015 Extended
Term B Dollar Loan, 4/19/19 843,045
2,688,125 4.50 MacDermid, Inc., Tranche B Term Loan
(First Lien), 6/7/20 2,607,481
2,002,637 4.25 OMNOVA Solutions, Inc., Term B-1 Loan, 5/31/18 1,987,617
3,502,462 4.00 PQ Corp., 2014 Term Loan, 8/7/17 3,497,538
529,141 2.75 WR Grace & Co-Conn, Delayed Draw
Term Loan, 1/23/21 521,535
1,470,399 2.75 WR Grace & Co-Conn, U.S. Term Loan, 1/23/21 1,449,262
-------------
$ 16,185,118
--------------------------------------------------------------------------------------------------
Construction Materials -- 0.3%
1,509,642 4.25 CeramTec Service GmbH, Initial Dollar Term
B-1 Loan, 8/30/20 $ 1,512,001
--------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 0.5%
311,260 4.00 Ardagh Holdings USA, Inc., Tranche B-3
Term Loan (First Lien), 12/17/19 $ 312,087
997,475 5.50 BWay Intermediate, Initial Term Loan, 8/14/20 1,000,592
1,000,000 5.00 Prolampac Holdings, Inc., Initial Term
Loan (First Lien), 7/23/22 996,250
948,750 4.50 Tekni-Plex, Inc., Tranche B-1 Term Loan
(First Lien), 4/15/22 945,785
-------------
$ 3,254,714
--------------------------------------------------------------------------------------------------
Paper Packaging -- 1.0%
2,500,000 4.00 Berry Plastics Corporation, Term F Loan, 9/17/22 $ 2,507,640
1,326,705 8.00 Caraustar Industries, Inc., Term Loan, 5/1/19 1,327,258
404,627 4.50 Coveris Holdings SA, USD Term Loan, 4/14/19 404,375
The accompanying notes are an integral part of these financial statements.
22 Pioneer Floating Rate Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Paper Packaging (continued)
1,797,313 4.25 Multi Packaging Solutions, Inc., Initial
Dollar Tranche B Term, 9/30/20 $ 1,789,450
-------------
$ 6,028,723
--------------------------------------------------------------------------------------------------
Aluminum -- 0.6%
265,375 5.75 Noranda Aluminum Acquisition Corp.,
Term B Loan, 2/28/19 $ 170,503
1,496,250 0.00 Novelis, Inc., Initial Term Loan, 5/28/22 (d) 1,467,610
2,063,250 5.50 TurboCombustor Technology, Inc., Initial
Term Loan, 10/18/20 1,991,036
-------------
$ 3,629,149
--------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.9%
3,130,180 3.75 Fortescue Metals Group Ltd., Bank Loan, 6/30/19 $ 2,659,870
2,969,450 4.00 US Silica Co., Term Loan, 7/23/20 2,791,283
-------------
$ 5,451,153
--------------------------------------------------------------------------------------------------
Steel -- 1.3%
1,705,200 3.50 American Builders & Contractors Supply Co, Inc.,
Term B Loan, 4/16/20 $ 1,697,740
992,438 4.50 Atkore International, Inc., Term Loan (First Lien),
3/27/21 935,372
960,300 7.50 Essar Steel Algoma Inc., Initial Term Loan, 8/9/19 529,365
1,715,954 4.75 JMC Steel Group, Inc., Term Loan, 4/1/17 1,673,055
1,052,593 3.75 Signode Industrial Group US, Inc., Tranche B Term
Loan (First Lien), 3/21/21 1,037,681
1,696,905 4.50 TMS International Corp., Term B Loan, 10/2/20 1,620,544
-------------
$ 7,493,757
--------------------------------------------------------------------------------------------------
Paper Products -- 0.5%
1,653,881 5.75 Appvion, Inc., Term Commitment, 6/28/19 $ 1,567,052
1,232,881 4.25 Rack Holdings, Inc., Tranche B-1 USD Term
Loan, 10/1/21 1,229,028
-------------
$ 2,796,080
-------------
Total Materials $ 56,164,426
--------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 8.8%
Aerospace & Defense -- 2.2%
2,519,570 4.00 Accudyne Industries Borrower SCA, Refinancing
Term Loan, 12/13/19 $ 2,322,205
1,246,875 0.00 Alion Science and Technology Corporation,
Term Loan (First Lien), 8/13/21 (d) 1,240,121
947,816 4.25 CPI International, Inc., Term B Loan, 11/17/17 947,816
2,723,402 3.75 DigitalGlobe, Inc., Term Loan, 1/25/20 2,727,640
1,864,216 6.25 DynCorp International, Inc., Term Loan, 7/7/16 1,817,610
438,728 0.00 Standard Aero Limited, First Lien
Term Loan, 6/23/22 (d) 438,180
1,258,263 7.00 TASC, Inc., First Lien Term Loan, 2/28/17 1,262,982
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 23
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Aerospace & Defense (continued)
1,685,342 5.75 The SI Organization, Inc., Term Loan
(First Lien), 11/19/19 $ 1,680,603
623,685 3.25 Wesco Aircraft Hardare Corp., Tranche B Term
Loan (First Lien), 2/24/21 610,951
-------------
$ 13,048,108
--------------------------------------------------------------------------------------------------
Building Products -- 3.2%
2,462,975 3.50 Armstrong World Industries, Inc., Term
Loan B, 3/15/20 $ 2,458,869
2,250,000 6.00 Builders FirstSource, Inc., Initial Term
Loan, 7/24/22 2,241,914
1,628,921 4.25 NCI Building Systems, Inc., Tranche B Term
Loan, 6/24/19 1,626,376
1,675,806 0.00 Nortek, Inc., Incremental-1 Loan, 10/30/20 (d) 1,659,048
2,300,000 6.25 Quanex Building Products Corporation, Term
Loan First Lien, 10/7/22 2,272,688
2,750,955 4.00 Quikrete Holdings, Inc., Initial Loan (First
Lien), 9/26/20 2,747,506
1,221,938 0.00 Summit Materials, LLC, Restatement Effective
Date Term Loan, 6/26/22 (d) 1,221,556
2,652,750 5.50 Ultima Intermediate Sarl, Term Loan B
(First Lien), 7/2/20 2,675,962
2,089,925 4.25 Unifrax Corp., New Term B Loan, 12/31/19 2,073,379
-------------
$ 18,977,298
--------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.1%
361,605 3.75 Aecom Technology, Term Loan B, 10/15/21 $ 363,729
--------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.9%
617,064 5.25 Pelican Products, Inc., Term Loan (First Lien), 4/8/20 $ 614,364
2,967,468 3.00 Southwire Co., Term Loan, 1/31/21 2,952,631
1,926,019 6.00 WireCo WorldGroup, Inc., Term Loan, 2/15/17 1,923,611
-------------
$ 5,490,606
--------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.7%
155,188 4.25 CeramTec Acquisition Corp., Initial Dollar
Term B-2 Loan, 8/30/20 $ 155,431
456,909 4.25 CeramTec GmbH, Dollar Term B-3 Loan, 8/30/20 457,623
1,252,043 4.50 Doosan Infracore, Tranche B Term, 5/28/21 1,256,216
700,000 5.00 Filtration Group Corporation, Term Loan (First Lien),
11/21/20 700,525
742,500 4.25 Gates Global LLC, Tranche B Term Loan (First
Lien), 6/12/21 700,425
403,363 5.00 Kloeckner Pentaplast of America, Inc., Initial U.S.
Borrower Dollar Term Loan, 4/22/20 404,372
The accompanying notes are an integral part of these financial statements.
24 Pioneer Floating Rate Fund | Annual Report | 10/31/15
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
Industrial Conglomerates (continued)
172,378 5.00 KP Germany Erste GmbH, Initial German Borrower
Dollar Term Loan, 4/22/20 $ 172,808
-------------
$ 3,847,400
-----------------------------------------------------------------------------------------------------
Construction & Farm Machinery
& Heavy Trucks -- 0.2%
299,088 3.25 Manitowoc Co. Inc. (The), Term B Loan, 12/18/20 $ 288,799
1,185,000 6.50 Navistar, Inc., Tranche B Term Loan, 8/17/17 1,150,931
-------------
$ 1,439,730
-----------------------------------------------------------------------------------------------------
Industrial Machinery -- 1.1%
2,334,208 4.25 Gardner Denver, Inc., Initial Dollar Term Loan, 7/30/20 $ 2,194,480
2,000,000 0.00 NN, Inc.Initial Term Loan, 10/2/22 (d) 1,995,000
1,217,199 5.25 Tank Holding Corp., Initial Term Loan, 7/9/19 1,210,505
1,378,298 6.25 Xerium Technologies, Inc., Initial Term Loan, 5/17/19 1,377,437
-------------
$ 6,777,422
-----------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.4%
1,450,000 4.25 Univar USA, Inc., Initial Dollar Term Loan, 6/25/22 $ 1,429,285
817,831 3.75 WESCO Distribution, Inc., Tranche B-1 Loan, 12/12/19 818,598
-------------
$ 2,247,883
-------------
Total Capital Goods $ 52,192,176
-----------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 3.2%
Environmental & Facilities Services -- 1.3%
471,732 3.75 ADS Waste Holdings, Inc., Initial Tranche
B-2, 10/9/19 $ 466,622
1,246,875 5.25 Infiltrator Water Technologies, LLC, Term B
Loan, 5/21/22 1,247,498
1,169,125 0.00 Waste Industries USA, Inc., Initial Term
Loan, 2/20/20 (d) 1,174,483
1,940,421 5.50 Wastequip LLC, Term Loan, 8/9/19 1,933,954
1,956,500 4.00 WCA Waste Corp., Term Loan, 3/23/18 1,947,940
950,670 5.00 Wheelabrator, Term B Loan, 10/15/21 930,469
42,146 5.00 Wheelabrator, Term C Loan, 10/15/21 41,250
-------------
$ 7,742,216
-----------------------------------------------------------------------------------------------------
Diversified Support Services -- 0.8%
2,058,694 4.00 EMI Music, First Lien Term Loan, 8/14/22 $ 2,059,553
251,609 5.37 IAP Worldwide Services, Inc., Term Loan, 7/18/19 252,867
502,553 7.50 infoGroup, Inc., Term B Loan, 5/26/18 478,682
1,465,709 0.00 Language Line, LLC, Initial Term Loan
(First Lien), 7/2/21 (d) 1,465,709
790,000 0.00 Ryan, LLC, Tranche B Term Loan, 8/5/20 (d) 782,100
-------------
$ 5,038,911
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 25
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Security & Alarm Services -- 0.7%
912,805 4.25 Allied Security Holdings LLC, Closing Date Term
Loan (First Lien), 2/12/21 $ 895,690
505,737 4.00 Garda World Security Corp., Term B Delayed
Draw Loan, 11/8/20 493,726
1,976,973 4.00 Garda World Security Corp., Term B
Loan, 11/1/20 1,930,020
831,069 4.25 Monitronics International, Inc., Term B
Loan, 3/23/18 827,329
-------------
$ 4,146,765
--------------------------------------------------------------------------------------------------
Human Resource & Employment
Services -- 0.2%
1,280,493 3.75 On Assignment, Inc., Initial Term B Loan, 6/5/22 $ 1,284,217
--------------------------------------------------------------------------------------------------
Research & Consulting Services -- 0.2%
903,444 5.00 Wyle, Tranche B Loan (First Lien), 5/22/21 $ 901,366
-------------
Total Commercial Services & Supplies $ 19,113,475
--------------------------------------------------------------------------------------------------
TRANSPORTATION -- 3.6%
Air Freight & Logistics -- 0.8%
541,872 6.50 CEVA Group Plc, Pre-Funded L/C Loan, 3/19/21 $ 478,653
562,857 6.50 Ceva Intercompany BV, Dutch BV Term, 3/19/21 497,190
97,044 6.50 Ceva Logistics Canada, ULC, Canadian Term
Loan, 3/19/21 85,722
776,355 6.50 Ceva Logistics U.S. Holdings, Inc., US Term
Loan, 3/19/21 685,780
1,686,188 6.75 Ozburn-Hessey Holding Co LLC, 5/23/19 1,678,810
1,670,250 5.25 Syncreon Group BV, Term Loan, 9/26/20 1,343,160
-------------
$ 4,769,315
--------------------------------------------------------------------------------------------------
Airlines -- 2.0%
1,580,000 4.00 Air Canada, Replacement Term Loan, 9/26/19 $ 1,586,420
3,969,300 0.00 American Airlines, Inc., 2015 Term Loan,
6/27/20 (d) 3,946,973
2,315,534 3.25 Atlantic Aviation FBO, Inc., Term Loan
(2013), 6/1/20 2,307,332
600,000 3.25 Delta Air Lines, Inc., Term Loan, 8/24/22 601,050
1,706,250 3.25 United Airlines, Inc., Class B Term Loan, 4/1/19 1,703,051
889,875 3.50 US Airways, Inc., Tranche B-1 Term Loan
(Consenting), 5/23/19 887,187
493,226 3.00 US Airways, Inc., Tranche B-2 Term Loan
(Consenting), 11/23/16 492,815
-------------
$ 11,524,828
--------------------------------------------------------------------------------------------------
Marine -- 0.5%
926,449 7.50 Commercial Barge Line Co., Initial Term Loan
(First Lien), 9/22/19 $ 922,396
The accompanying notes are an integral part of these financial statements.
26 Pioneer Floating Rate Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Marine (continued)
1,953,959 5.25 Navios Maritime Partners LP, Term Loan, 6/27/18 $ 1,941,746
-------------
$ 2,864,142
--------------------------------------------------------------------------------------------------
Trucking -- 0.2%
884,564 5.50 Aegis Toxicology Corp., Tranche B Term Loan
(First Lien), 2/20/21 $ 804,953
47,872 1.50 The Kenan Advantage Group, Inc., Delayed
Draw Term 1 Loan, 1/24/17 47,783
109,338 4.00 The Kenan Advantage Group, Inc., Initial Canadian
Term Loan, 7/24/22 109,133
342,790 4.00 The Kenan Advantage Group, Inc., Initial U.S. Term
Loan, 7/24/22 342,147
-------------
$ 1,304,016
--------------------------------------------------------------------------------------------------
Marine Ports & Services -- 0.1%
774,080 5.25 SeaStar Solutions, Term Loan, 1/22/21 $ 774,080
-------------
Total Transportation $ 21,236,381
--------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 3.8%
Auto Parts & Equipment -- 2.4%
1,330,532 4.94 Affinia Group, Inc., Tranche B-2 Term Loan, 4/25/20 $ 1,332,594
2,280,094 3.50 Allison Transmission, Inc., Term B-3 Loan, 8/23/19 2,285,368
1,086,250 4.00 Cooper Standard Intermediate Holdco 2 LLC, Term
Loan, 3/28/21 1,078,329
249,370 0.00 Electrical Components International, Inc., First
Lien Term Loan, 4/17/21 (d) 249,993
427,492 0.00 Key Safety Systems, Inc., Initial Term Loan,
7/28/21 (d) 423,751
1,457,518 3.75 MPG Holdco I, Inc., Initial Term Loan, 10/20/21 1,452,182
1,900,000 5.25 Remy International, Inc., Term B Loan 2013, 3/5/20 1,902,970
1,090,061 4.25 Schaeffler AG, Facility B-USD, 5/15/20 1,095,342
971,454 4.50 TI Group Automotive Systems LLC, Initial US Term
Loan, 6/25/22 965,382
3,335,014 4.00 Tower Automotive Holdings USA LLC, Initial Term
Loan (2014), 4/23/20 3,312,780
-------------
$ 14,098,691
--------------------------------------------------------------------------------------------------
Tires & Rubber -- 0.3%
1,812,500 3.75 The Goodyear Tire & Rubber Co., Term Loan
(Second Lien), 3/27/19 $ 1,818,889
--------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 1.0%
2,441,699 3.50 Chrysler Group LLC, Term Loan B, 5/24/17 $ 2,440,422
1,970,000 3.25 Chrysler Group LLC, Tranche B Term Loan, 12/29/18 1,965,321
1,212,750 6.00 Crown Group llc, Term Loan (First Lien), 9/30/20 1,207,826
-------------
$ 5,613,569
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 27
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Personal Products -- 0.1%
807,917 3.50 Visteon Corp., Tranche B Loan (First Lien), 4/8/21 $ 806,227
-------------
Total Automobiles & Components $ 22,337,376
--------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.9%
Home Furnishings -- 0.5%
2,581,653 4.25 Serta Simmons Bedding LLC, Term Loan, 10/1/19 $ 2,585,608
174,361 3.50 Tempur Sealy International, Inc., New Term B
Loan, 3/18/20 174,760
-------------
$ 2,760,368
--------------------------------------------------------------------------------------------------
Housewares & Specialties -- 0.9%
2,490,717 4.50 Reynolds Group Holdings, Inc., Incremental U.S. Term
Loan, 12/31/18 $ 2,497,566
2,537,328 5.50 World Kitchen LLC, U.S. Term Loan, 3/4/19 2,550,015
-------------
$ 5,047,581
--------------------------------------------------------------------------------------------------
Leisure Products -- 0.3%
2,028,857 3.75 Bombardier Recreational Products, Inc., Term
B-2 Loan, 1/30/19 $ 2,030,125
--------------------------------------------------------------------------------------------------
Apparel, Accessories & Luxury Goods -- 0.2%
1,349,771 3.25 PVH Corp., Tranche B Term Loan, 12/19/19 $ 1,357,543
-------------
Total Consumer Durables & Apparel $ 11,195,617
--------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 6.6%
Casinos & Gaming -- 1.9%
4,091,691 4.25 CityCenter Holdings LLC, Term B Loan, 10/16/20 $ 4,098,086
872,813 0.00 Eldorado Resorts, Inc., Initial Term Loan,
7/17/22 (d) 873,897
2,921,156 3.50 MGM Resorts International, Term B Loan, 12/20/19 2,919,681
258,181 3.75 Pinnacle Entertainment, Inc., Tranche B-2 Term
Loan, 8/13/20 258,181
3,002,313 6.00 Scientific Games, Initial Term B-2, 10/1/21 2,939,921
-------------
$ 11,089,766
--------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 1.1%
2,738,410 3.50 Four Seasons Holdings Inc., Term Loan, 6/27/20 $ 2,719,014
1,134,079 3.50 Hilton Worldwide Finance LLC, Initial Term
Loan, 9/23/20 1,137,701
1,666,000 4.00 Sabre GLBL, Inc., Incremental Term Loan, 2/19/19 1,667,749
1,052,472 4.00 Sabre GLBL, Inc., Term B Loan, 2/19/19 1,053,656
-------------
$ 6,578,120
--------------------------------------------------------------------------------------------------
Leisure Facilities -- 0.8%
1,520,311 3.25 Cedar Fair LP, U.S. Term Facility, 3/6/20 $ 1,527,438
997,475 5.50 L.A. Fitness International, LLC, Tranche B Term
Loan (First Lien), 4/25/20 949,679
773,063 0.00 Life Time Fitness, Inc., Closing Date Term Loan,
6/4/22 (d) 769,801
The accompanying notes are an integral part of these financial statements.
28 Pioneer Floating Rate Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Leisure Facilities (continued)
1,695,750 3.50 Six Flags Theme Parks, Inc., Tranche B Term
Loan, 6/30/22 $ 1,701,580
-------------
$ 4,948,498
--------------------------------------------------------------------------------------------------
Restaurants -- 0.8%
681,360 3.75 1011778 BC ULC, Term B-2 Loan, 12/12/21 $ 682,455
1,709,246 4.00 Landry's, Inc., B Term Loan, 4/24/18 1,713,242
2,381,564 4.25 PF Chang's China Bistro, Inc.,
Term Borrowing, 7/2/19 2,327,979
-------------
$ 4,723,676
--------------------------------------------------------------------------------------------------
Education Services -- 1.1%
2,612,666 3.75 Bright Horizons Family Solutions, Inc., Term B
Loan, 1/14/20 $ 2,619,731
3,425,575 5.00 Laureate Education, Inc., New Series 2018
Extended Term Loan, 6/16/18 2,958,841
1,043,101 0.00 McGraw-Hill Global Education Holdings, LLC,
Term B Loan, 3/22/19 (d) 1,046,035
-------------
$ 6,624,607
--------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.9%
348,496 0.00 Creative Artists Agency, LLC, Amendment No. 3
Incremental Term Loan, 12/10/21 (d) $ 349,748
623,422 0.00 Genex Holdings, Inc., Term B Loan (First Lien),
5/22/21 (d) 621,474
2,000,000 6.00 KC Mergersub, Inc., Initial Term Loan (First
Lien), 8/13/22 1,980,000
1,452,627 0.00 Prime Security Services Borrower, LLC, Term B
Loan (First Lien), 6/19/21 (d) 1,446,635
921,144 4.00 Weight Watchers International, Inc., Initial Tranche
B-2 Term Loan, 4/2/20 719,260
-------------
$ 5,117,117
-------------
Total Consumer Services $ 39,081,784
--------------------------------------------------------------------------------------------------
MEDIA -- 9.3%
Advertising -- 0.9%
2,597,664 6.75 Affinion Group, Inc., Tranche B Term Loan, 4/30/18 $ 2,501,335
2,871,229 0.00 Consolidated Precision Products, First Lien Term
Loan, 12/28/19 (d) 2,818,591
-------------
$ 5,319,926
--------------------------------------------------------------------------------------------------
Broadcasting -- 2.0%
1,155,375 4.50 Catalina Holding Corp., Tranche B Term
Loan (First Lien), 4/3/21 $ 996,511
699,662 3.00 CBS Outdoor Americas Capital llc, Tranche
B Term Loan (First Lien), 1/15/21 697,257
1,786,951 4.00 Entercom Radio llc, Term B-2 Loan, 11/23/18 1,788,067
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 29
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Broadcasting (continued)
1,910,417 4.25 Hubbard Radio LLC, Term Loan, 5/12/22 $ 1,878,178
1,470,000 3.25 Quebecor Media, Inc., Facility B-1 Tranche, 8/17/20 1,428,198
713,357 3.00 Sinclair Television Group, Inc., New Tranche B Term
Loan, 4/19/20 703,994
584,287 0.00 Townsquare Media, Inc., Initial Term Loan,
3/17/22 (d) 585,017
2,830,464 3.81 Tribune Media Company, Term B Loan, 12/27/20 2,828,661
730,969 4.00 Univision Communications, Inc., 2013 Incremental
Term Loan, 3/1/20 727,028
-------------
$ 11,632,911
--------------------------------------------------------------------------------------------------
Cable & Satellite -- 3.4%
2,391,635 3.50 Cequel Communications LLC, Term Loan, 2/14/19 $ 2,370,409
4,789,750 3.00 Charter Communications Operating LLC, Term F
Loan, 1/1/21 4,747,842
1,800,000 0.00 Charter Communications Operating, LLC, Term F
Loan, 1/23/23 (d) 1,800,563
1,913,109 3.75 Intelsat Jackson Holdings SA, Tranche B-2 Term
Loan, 6/30/19 1,857,809
442,534 4.50 Learfield Communications, Inc., 2014 Replacement
Term Loan (First Lien), 10/9/20 442,949
1,697,500 4.00 MCC Georgia LLC, Tranche G Term Loan, 2/8/20 1,697,500
469,200 3.25 MCC Iowa LLC, Tranche H Term Loan, 1/29/21 464,362
2,452,419 3.50 Telesat Canada, U.S. Term B Loan, 3/28/19 2,440,157
1,218,206 4.50 WideOpenWest Finance LLC, Replacement
Term B Loan, 4/1/19 1,202,852
1,207,098 3.50 Ziggo BV, (USD) Tranche B-3 Term Loan, 1/15/22 1,189,274
1,138,945 3.50 Ziggo BV, Tranche B-1 Term Loan (First Lien), 1/15/22 1,122,127
733,957 3.50 Ziggo BV, Tranche B-2 Term Loan (First Lien), 1/15/22 723,120
-------------
$ 20,058,964
--------------------------------------------------------------------------------------------------
Movies & Entertainment -- 2.1%
2,130,695 3.50 AMC Entertainment, Inc., Initial Term Loan, 4/30/20 $ 2,131,362
2,100,000 5.00 CDS U.S. Intermediate Holdings, Inc., Initial Term
Loan (First Lien), 6/25/22 2,110,762
242,444 3.75 Cinedigm Digital Funding 1 LLC, Term Loan, 2/28/18 242,141
1,526,414 3.25 Kasima LLC, Term Loan, 5/17/21 1,525,460
1,528,451 3.50 Live Nation Entertainment, Inc., Term B-1
Loan, 8/17/20 1,528,769
83,333 0.00 NVA Holdings, Inc., Amendment No. 2 Term B
Loan, 8/14/21 (d) 83,438
166,247 0.00 NVA Holdings, Inc., Term Loan (First Lien),
8/8/21 (d) 166,455
The accompanying notes are an integral part of these financial statements.
30 Pioneer Floating Rate Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Movies & Entertainment (continued)
1,955,000 3.50 Seminole Hard Rock Entertainment, Inc., New
Term Loan B, 5/14/20 $ 1,925,675
3,111,500 3.75 WMG Acquisition Corp., Tranche B Refinancing
Term Loan, 7/1/20 3,033,712
-------------
$ 12,747,774
--------------------------------------------------------------------------------------------------
Publishing -- 0.9%
739,765 0.00 Cengage Learning Acquisitions, Inc., Term
Loan, 3/6/20 (d) $ 736,529
836,211 4.75 Interactive Data Corp., Tranche B Term Loan
(First Lien), 4/24/21 837,079
2,652,750 6.25 McGraw-Hill School Education Holdings llc,
Term B Loan, 12/18/19 2,655,238
1,025,000 0.00 Quincy Newspapers, Inc., Term Loan B,
10/19/22 (d) 1,021,156
-------------
$ 5,250,002
-------------
Total Media $ 55,009,577
--------------------------------------------------------------------------------------------------
RETAILING -- 2.3%
Department Stores -- 0.3%
1,666,074 4.25 Neiman Marcus Group, Ltd. LLC, Other Term
Loan, 10/25/20 $ 1,628,209
--------------------------------------------------------------------------------------------------
Apparel Retail -- 0.2%
1,425,000 0.00 Hudson's Bay Company, Initial Term Loan,
8/14/22 (d) $ 1,429,453
--------------------------------------------------------------------------------------------------
Computer & Electronics Retail -- 0.3%
985,000 3.75 Rent-A-Center, Inc., Term Loan (2014), 2/6/21 $ 975,150
932,729 14.75 Targus Group International, Inc., Term
Loan, 5/24/16 699,547
-------------
$ 1,674,697
--------------------------------------------------------------------------------------------------
Home Improvement Retail -- 0.5%
3,367,904 4.50 Apex Tool Group LLC, Term Loan, 2/1/20 $ 3,294,932
--------------------------------------------------------------------------------------------------
Specialty Stores -- 0.3%
522,375 4.25 PetSmart, Inc., Tranche B-1 Loan, 3/10/22 $ 522,909
1,000,000 0.00 Staples, Inc., Initial Loan, 4/24/21 (d) 996,500
-------------
$ 1,519,409
--------------------------------------------------------------------------------------------------
Automotive Retail -- 0.7%
559,647 3.00 Avis Budget Car Rental LLC, Tranche B Term
Loan, 3/15/19 $ 558,765
1,152,759 5.25 CWGS Group LLC, Term Loan, 2/20/20 1,153,480
1,701,875 3.75 The Hertz Corp., Tranche B1 Term Loan, 3/11/18 1,701,165
487,500 3.00 The Hertz Corp., Tranche B-2 Term Loan, 3/11/18 483,615
-------------
$ 3,897,025
-------------
Total Retailing $ 13,443,725
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 31
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 1.6%
Drug Retail -- 0.1%
691,250 4.50 Hearthside Group Holdings LLC, Term Loan
(First Lien), 4/24/21 $ 690,144
--------------------------------------------------------------------------------------------------
Food Distributors -- 0.8%
1,546,949 5.75 AdvancePierre Foods, Inc., Term Loan
(First Lien), 7/10/17 $ 1,550,237
1,426,262 4.75 Clearwater Seafoods LP, Term Loan
B 2013, 6/26/19 1,425,370
1,727,792 4.26 Del Monte Foods Consumer Products, Inc.,
Term Loan (First Lien), 11/26/20 1,692,157
-------------
$ 4,667,764
--------------------------------------------------------------------------------------------------
Food Retail -- 0.7%
4,321,387 5.38 Albertsons LLC, Term B-2 Loan, 3/21/19 $ 4,322,467
-------------
Total Food & Staples Retailing $ 9,680,375
--------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 2.7%
Agricultural Products -- 0.3%
1,970,000 3.25 Darling International, Inc., Term B USD
Loan, 12/19/20 $ 1,968,154
--------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 2.1%
2,246,192 4.50 Boulder Brands USA, Inc., Term Loan, 7/9/20 $ 2,212,499
3,327,999 5.00 CSM Bakery Solutions LLC, Term Loan
(First Lien), 7/3/20 3,300,543
1,749,252 3.75 JBS USA LLC, Initial Term Loan, 5/25/18 1,749,899
2,712,880 3.00 Pinnacle Foods Finance LLC, New Term
Loan G, 4/29/20 2,714,144
833,000 3.00 Pinnacle Foods Finance LLC, Tranche H Term
Loan, 4/29/20 832,774
306,050 3.75 Post Holdings, Inc., Tranche B Loan
(First Lien), 5/23/21 307,005
990,000 4.50 Shearer's Foods, LLC, Term Loan
(First Lien), 6/19/21 982,575
-------------
$ 12,099,439
--------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.3%
1,764,000 3.75 JBS USA LLC, Incremental Term Loan, 9/18/20 $ 1,762,342
-------------
Total Food, Beverage & Tobacco $ 15,829,935
--------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 1.8%
Household Products -- 0.7%
498,750 0.00 Energizer Holdings, Inc., Term Loan, 5/20/22 (d) $ 498,638
1,383,464 0.00 Spectrum Brands, Inc., Term Loan, 6/16/22 (d) 1,390,922
2,341,676 4.01 SRAM LLC, Term Loan (First Lien), 4/10/20 2,212,884
-------------
$ 4,102,444
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Floating Rate Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Personal Products -- 1.1%
985,000 4.25 Atrium Innovations, Inc., Term Loan, 1/29/21 $ 926,311
250,000 7.75 Atrium Innovations, Inc., Tranche B Term Loan
(Second Lien), 7/29/21 219,167
1,597,957 4.75 Federal-Mogul Corporation, Tranche C Term, 4/15/21 1,465,127
2,076,786 3.50 NBTY, Inc., Term B-2 Loan, 10/1/17 2,063,027
500,000 0.00 Party City Holdings, Inc., Term Loan,
8/6/22 (d) 499,896
1,640,215 4.00 Revlon Consumer Products Corp., Acquisition
Term Loan, 8/19/19 1,641,496
-------------
$ 6,815,024
-------------
Total Household & Personal Products $ 10,917,468
--------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 6.8%
Health Care Equipment -- 0.6%
731,250 0.00 Hill-Rom Holdings, Inc., Initial Term B Loan,
7/30/22 (d) $ 733,078
2,018,018 4.50 Kinetic Concepts, Inc., Term DTL-E1 loan, 5/4/18 2,020,540
875,000 0.00 Physio-Control International, Inc., Initial Term
Loan (First Lien), 5/19/22 (d) 862,969
-------------
$ 3,616,587
--------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.6%
1,000,000 0.00 Greatbatch, Inc., Term Loan B, 10/14/22 (d) $ 1,004,375
1,851,560 5.00 Immucor, Inc., Term B-2 Loan, 8/19/18 1,816,843
750,000 0.00 Sterigenics-Nordion Holdings, LLC, Initial Term
Loan, 4/27/22 (d) 746,250
-------------
$ 3,567,468
--------------------------------------------------------------------------------------------------
Health Care Services -- 3.2%
1,019,084 4.25 Alliance HealthCare Services, Inc., Initial Term
Loan, 6/3/19 $ 1,014,944
350,326 0.00 Ardent Legacy Acquisitions, Inc., Term Loan,
7/31/21 (d) 350,764
1,218,203 6.50 BioScrip, Inc., Initial Term B Loan, 7/31/20 1,120,747
730,922 6.50 BioScrip, Inc., Term Loan, 7/31/20 672,448
1,508,762 4.00 BSN Medical GmbH & Co. KG, Facility
B1A, 8/28/19 1,497,446
2,804,354 4.00 Envision Healthcare Corp., Initial Term
Loan, 5/25/18 2,802,893
2,940,000 2.33 Fresenius US Finance I, Inc., Tranche B Term
Loan, 8/7/19 2,941,838
324,188 0.00 Genoa Healthcare Company, LLC, Initial Term
Loan (First Lien), 4/21/22 (d) 323,985
950,000 0.00 Global Healthcare Exchange, LLC, Initial Term
Loan, 8/13/22 (d) 948,516
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 33
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Health Care Services (continued)
1,068,252 4.25 National Mentor Holdings, Inc., Tranche B
Term Loan, 1/31/21 $ 1,052,229
687,167 0.00 National Surgical Hospitals, Inc., Term Loan
(First Lien), 5/15/22 (d) 675,141
955,730 0.00 Pharmaceutical Product Development, Inc.,
Initial Term Loan, 8/6/22 (d) 944,579
860,332 0.00 Surgery Center Holdings, Inc., Initial Term Loan
(First Lien), 7/24/20 (d) 858,898
1,663,864 4.50 Truven Health Analytics, Inc., New Tranche
B Term Loan, 6/6/19 1,636,827
2,180,746 4.25 US Renal Care, Inc., Tranche B-2 Term Loan
(First Lien), 7/3/19 2,181,428
-------------
$ 19,022,683
--------------------------------------------------------------------------------------------------
Health Care Facilities -- 1.4%
269,663 3.58 CHS, Incremental 2018 Term F Loans, 12/31/18 $ 268,947
541,778 3.08 CHS, Incremental 2019 Term G Loan, 12/31/19 540,169
996,857 4.00 CHS, Incremental 2021 Term H Loan, 1/27/21 995,542
326,981 3.08 HCA, Inc., Tranche B-4 Term Loan, 5/1/18 327,434
2,354,539 4.25 Kindred Healthcare, Inc., Tranche B Loan
(First Lien), 4/10/21 2,351,577
1,462,771 5.25 RegionalCare Hospital Partners, Inc., Term Loan
(First Lien), 4/21/19 1,449,058
189,615 3.75 Select Medical Corp., Series E Tranche B Term
Loan, 6/1/18 189,378
2,444,975 6.75 Steward Health Care System LLC, Term
Loan, 4/10/20 2,425,843
-------------
$ 8,547,948
--------------------------------------------------------------------------------------------------
Managed Health Care -- 0.1%
257,755 9.75 MMM Holdings, Inc., Term Loan, 10/9/17 (e) $ 190,739
187,387 9.75 MSO of Puerto Rico, Inc., MSO Term Loan,
12/12/17 (e) 138,666
-------------
$ 329,405
--------------------------------------------------------------------------------------------------
Health Care Technology -- 0.9%
613,463 4.25 ConvaTec, Inc., Dollar Term Loan, 12/22/16 $ 613,207
2,426,892 3.75 Emdeon, Inc., Term B-2 Loan, 11/2/18 2,415,769
972,466 3.50 IMS Health, Inc., Term B Dollar Loan, 3/17/21 969,348
1,257,194 4.00 MedAssets, Inc., Term B Loan, 12/13/19 1,251,286
-------------
$ 5,249,610
-------------
Total Health Care Equipment & Services $ 40,333,701
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Floating Rate Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY
& LIFE SCIENCES -- 3.7%
Biotechnology -- 0.8%
3,189,394 3.50 Alkermes, Inc., 2019 Term Loan, 9/25/19 $ 3,190,724
1,795,500 7.00 Lantheus Medical Imaging, Inc., Initial Term
Loan, 6/25/22 1,678,792
-------------
$ 4,869,516
--------------------------------------------------------------------------------------------------
Pharmaceuticals -- 2.4%
1,683,000 5.50 Akorn, Inc., Term Loan B, 11/13/20 $ 1,666,170
1,250,000 0.00 Concordia Healthcare Corp., Initial Dollar Term
Loan, 10/20/21 (d) 1,205,469
416,487 0.00 Endo International, First Lien Term Loan, 6/24/22 (d) 410,604
1,182,000 3.19 Grifols Worldwide Operations USA, Inc., U.S. Tranche
B Term Loam, 4/1/21 1,181,200
2,093,500 4.25 JLL, Initial Dollar Term Loan, 1/23/21 2,055,294
1,379,000 3.25 Mallinckrodt International Finance SA, Initial Term
B Loan, 3/6/21 1,313,306
1,244,355 4.25 PharMEDium Healthcare Corp., Initial Term Loan
(First Lien), 1/23/21 1,243,058
852,171 3.50 Prestige Brands, Inc., Term B-3 Loan, 9/3/21 853,680
355,750 3.25 RPI Finance Trust, Term B-3 Term Loan, 11/9/18 355,884
1,086,875 3.50 RPI Finance Trust, Term B-4 Term Loan, 11/9/20 1,084,950
1,279,190 3.75 Valeant Pharmaceuticals International, Inc., Series
C-2 Tranche B Term Loan, 12/11/19 1,199,880
1,990,492 3.75 Valeant Pharmaceuticals International, Inc.,
Series E1 Tranche B Term Loan, 8/5/20 1,855,138
-------------
$ 14,424,633
--------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.5%
2,250,000 5.75 Albany Molecular Research, Inc., Term
Loan B, 7/14/21 $ 2,252,812
413,024 4.25 Catalent Pharma Solutions, Dollar Term
Loan, 5/20/21 413,116
-------------
$ 2,665,928
-------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 21,960,077
--------------------------------------------------------------------------------------------------
BANKS -- 0.2%
Thrifts & Mortgage Finance -- 0.2%
953,124 5.50 Ocwen Financial Corp., Initial Term Loan, 1/15/18 $ 955,698
-------------
Total Banks $ 955,698
--------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.6%
Other Diversified Financial Services -- 1.8%
742,500 5.50 4L Technologies Inc., Term Loan, 5/8/20 $ 705,375
1,133,546 3.50 AWAS Finance Luxembourg 2012 SA,
Term Loan, 7/16/18 1,131,421
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 35
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Other Diversified Financial Services (continued)
1,470,000 4.50 CTI Foods Holding Co LLC, Term Loan (First
Lien), 6/29/20 $ 1,440,600
475,000 3.50 Delos Finance SARL, Tranche B Term
Loan, 2/27/21 475,544
2,591,240 3.50 Fly Funding II Sarl, Term Loan, 8/9/18 2,582,739
2,492,625 5.00 Livingston International, Inc., Initial Term B-1 Loan
(First Lien), 4/18/19 2,343,068
1,962,103 5.00 Nord Anglia Education, Initial Term Loan, 3/31/21 1,917,956
-------------
$ 10,596,703
--------------------------------------------------------------------------------------------------
Specialized Finance -- 0.5%
1,622,274 4.25 Mirror BidCo Corp., New Incremental Term
Loan, 12/18/19 $ 1,618,218
124,688 0.00 Royal Holdings, Inc., Initial Term Loan
(First Lien), 6/12/22 (d) 123,939
175,000 0.00 Royal Holdings, Inc., Initial Term Loan
(Second Lien), 6/12/23 (d) 174,781
1,285,425 0.00 Trans Union, LLC, 2015 Term B-2 Loan,
4/9/21 (d) 1,271,607
-------------
$ 3,188,545
--------------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.5%
1,051,948 0.00 Clondalkin Acquisition B. V., Term Loan,
5/31/20 (d) $ 1,046,688
1,887,360 0.00 Vistra Group Limited, Term Loan First Lien,
7/21/22 (d) 1,892,078
-------------
$ 2,938,766
--------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.8%
498,750 4.00 Concentra, Inc., Tranche B Term Loan (First
Lien), 5/8/22 $ 499,161
1,980,550 4.75 Duff & Phelps Corp., Initial Term Loan, 4/23/20 1,970,648
1,947,595 4.25 Guggenheim Partners Investment Management
Holdings LLC, Initial Term Loan, 7/22/20 1,950,029
-------------
$ 4,419,838
-------------
Total Diversified Financials $ 21,143,852
--------------------------------------------------------------------------------------------------
INSURANCE -- 1.2%
Insurance Brokers -- 0.6%
1,140,743 5.00 CGSC of Delaware Holdings Corp., Term Loan
(First Lien), 4/16/20 $ 1,036,174
299,245 4.50 National Financial Partners Corp., Tranche B Term
Loan (First Lien), 7/1/20 295,738
2,068,352 4.25 USI Insurance Services LLC, Term B Loan, 12/30/19 2,050,254
-------------
$ 3,382,166
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Floating Rate Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Life & Health Insurance -- 0.2%
902,778 6.75 Integro Ltd., Term Loan, 10/9/22 $ 875,694
--------------------------------------------------------------------------------------------------
Multi-line Insurance -- 0.1%
682,890 4.50 Alliant Holdings I LLC, Initial Term Loan, 7/28/22 $ 676,702
--------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.3%
2,123,877 5.75 Confie Seguros Holding II Co., Term B Loan (First
Lien), 11/9/18 $ 2,129,187
-------------
Total Insurance $ 7,063,749
--------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.6%
Mortgage REIT -- 0.3%
2,097,841 3.50 Starwood Property Trust, Inc., Term Loan (First
Lien), 4/17/20 $ 2,082,107
--------------------------------------------------------------------------------------------------
Retail REIT -- 0.2%
997,500 4.25 DTZ US Borrower LLC, 2015-1 Additional Term Loan
(First Lien), 11/4/21 $ 989,863
--------------------------------------------------------------------------------------------------
Specialized REIT -- 0.5%
997,500 0.00 Communications Sales & Leasing, Inc., Term Loan
First Lien, 10/16/22 (d) $ 943,468
2,301,000 3.25 The GEO Group, Inc., Term Loan, 4/3/20 2,303,876
-------------
$ 3,247,344
--------------------------------------------------------------------------------------------------
Real Estate Services -- 0.6%
2,140,842 4.50 Altisource Solutions Sarl, Term B Loan, 12/9/20 $ 1,921,406
1,494,201 4.25 GCA Services Group, Inc., Replacement Term Loan
(First Lien), 11/1/19 1,491,399
-------------
$ 3,412,805
-------------
Total Real Estate $ 9,732,119
--------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 4.8%
Internet Software & Services -- 0.2%
988,581 6.00 Vocus, Inc., Tranche B Loan (First Lien), 5/23/21 $ 972,929
--------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.9%
1,402,167 3.75 Booz Allen Hamilton, Inc., Refinance
Tranche B, 7/31/19 $ 1,407,074
1,975,000 5.75 Evergreen Skills Lux Sarl, Initial Term Loan
(First Lien), 4/23/21 1,651,594
684,575 4.50 PSAV Presentation Services, Tranche B Term
Loan (First Lien), 1/24/21 674,306
870,625 3.75 Science Applications International Corporation,
Tranche B Incremental Loan, 4/21/22 872,620
681,538 0.00 SunGard Data Systems, Inc.,Tranche E Term Loan,
3/11/20 (d) 681,879
-------------
$ 5,287,473
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 37
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.3%
249,375 3.75 Black Knight InfoServ, LLC, Term B Loan, 5/7/22 $ 250,310
1,637,680 3.70 First Data Corp., 2018 New Dollar Term
Loan, 3/24/18 1,628,298
-------------
$ 1,878,608
--------------------------------------------------------------------------------------------------
Application Software -- 2.0%
1,596,367 4.25 Applied Systems, Inc., Initial Term Loan
(First Lien), 1/15/21 $ 1,588,528
2,445,799 4.50 Epiq Systems, Inc., Term Loan, 8/27/20 2,433,570
652,397 8.50 Expert Global Solutions, Inc., Term B Advance
(First Lien), 4/3/18 647,912
1,112,213 3.75 Infor., Tranche B-5 Term Loan (First Lien), 6/3/20 1,084,562
1,244,378 7.50 Serena Software, Inc., Term Loan, 4/10/20 1,241,657
1,243,115 6.25 STG-Fairway Acquisitions, Inc., Term Loan
(First Lien), 3/4/19 1,233,015
1,728,237 3.50 Verint Systems, Inc., Tranche B-2 Term Loan
(First Lien), 9/6/19 1,728,237
2,188,681 4.25 Vertafore, Inc., Term Loan (2013), 10/3/19 2,191,189
-------------
$ 12,148,670
--------------------------------------------------------------------------------------------------
Systems Software -- 0.9%
547,592 0.00 Avast Software, First Lien Term Loan, 3/20/20 (d) $ 546,908
1,240,625 5.75 AVG Technologies N.V., Term Loan, 10/15/20 1,241,400
2,800,088 4.00 EZE Software Group LLC, Term B-1 Loan, 4/6/20 2,783,755
493,750 5.00 MSC Software Corp., Initial Term Loan (First
Lien), 5/28/20 487,270
-------------
$ 5,059,333
--------------------------------------------------------------------------------------------------
Home Entertainment Software -- 0.5%
1,644,500 3.25 Activision Blizzard, Inc., Term Loan, 7/26/20 $ 1,651,298
1,162,493 5.25 Micro Focus International, Term Loan B, 10/7/21 1,162,908
-------------
$ 2,814,206
-------------
Total Software & Services $ 28,161,219
--------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE
& EQUIPMENT -- 1.5%
Communications Equipment -- 0.2%
395,000 3.75 Ciena Corp., Term Loan, 7/15/19 $ 394,012
350,000 0.00 Commscope, Inc., First Lien Term Loan, 5/29/22 (d) 350,438
721,927 3.25 Commscope, Inc., Tranche 4 Term Loan, 1/14/18 719,103
-------------
$ 1,463,553
--------------------------------------------------------------------------------------------------
Electronic Equipment Manufacturers -- 0.4%
956,952 4.50 Sensus USA, Inc., Term Loan (First Lien), 5/9/17 $ 954,560
1,505,455 4.75 Zebra Technologies, Term Loan B, 9/30/21 1,517,677
-------------
$ 2,472,237
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
38 Pioneer Floating Rate Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Electronic Components -- 0.2%
147,000 3.25 Belden Finance 2013 LP, Initial Term Loan, 9/9/20 $ 146,860
484,763 6.25 FCI -- Fidji Luxembourg Bc4 Sarl , Term
Loan, 12/19/20 484,762
337,154 3.50 Generac Power Systems, Inc., Term Loan B, 5/31/20 333,782
-------------
$ 965,404
--------------------------------------------------------------------------------------------------
Technology Distributors -- 0.7%
780,006 3.25 CDW LLC, Term Loan, 4/25/20 $ 778,868
1,390,315 0.00 Deltek, Inc., Term Loan (First Lien), 12/31/22 (d) 1,390,894
229,439 0.00 SS&C European Holdings, Term B-2 Loan, 6/29/22 (d) 230,421
1,482,859 0.00 SS&C Technologies, Inc., Term B-1 Loan, 6/29/22 (d) 1,489,204
-------------
$ 3,889,387
-------------
Total Technology Hardware & Equipment $ 8,790,581
--------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 1.2%
Semiconductor Equipment -- 0.4%
1,101,117 3.50 Emtegris, Inc., Term Loan B, 3/25/21 $ 1,098,365
477,951 2.58 Sensata Technologies Finance Company, LLC,
Term Loan First Lien, 10/14/21 478,547
1,206,851 0.00 Vat, First Lien Term Loan, 2/11/21 (d) 1,205,846
-------------
$ 2,782,758
--------------------------------------------------------------------------------------------------
Semiconductors -- 0.8%
3,434,067 3.75 Avago Technologies Ltd., Tranche B Term Loan
(First Lien), 4/16/21 $ 3,437,168
493,750 4.50 M/A-COM Technology, Initial Term Loan, 5/7/21 495,602
653,666 3.25 Microsemi Corp., Term Loan (First Lien), 3/14/21 651,725
-------------
$ 4,584,495
-------------
Total Semiconductors & Semiconductor Equipment $ 7,367,253
--------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.5%
Integrated Telecommunication Services -- 1.1%
2,744,000 4.00 Cincinnati Bell, Inc., Tranche B Term Loan, 9/10/20 $ 2,715,874
263,675 3.44 GCI Holdings, Inc., New Term B Loan, 2/2/22 264,993
1,005,731 4.75 Securus Technologies Holdings, Inc., Initial Term
Loan (First Lien), 4/30/20 784,470
504,991 3.50 Virgin Media, First Lien Term Loan, 6/30/23 502,072
1,636,644 3.25 West Corp., B-10 Term Loan (First Lien), 6/30/18 1,624,625
980,228 3.50 Windstream Services LLC, Tranche B-5 Term
Loan, 8/8/19 960,215
-------------
$ 6,852,249
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 39
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.4%
3,079,885 3.00 Crown Castle International Corp., Tranche B-2
Term Loan (First Lien), 1/31/21 $ 3,082,657
1,092,132 4.50 Numericable U.S. LLC, Tranche B-1 Term Loan,
4/23/20 1,079,930
944,546 4.50 Numericable-SFR, Tranche B-2 Loan (First Lien),
4/23/20 933,993
1,175,787 3.32 Syniverse Holdings, Inc., Initial Term Loan, 4/23/19 1,076,580
2,204,282 4.00 Syniverse Holdings, Inc., Tranche B Term Loan,
4/23/19 2,018,296
-------------
$ 8,191,456
-------------
Total Telecommunication Services $ 15,043,705
--------------------------------------------------------------------------------------------------
UTILITIES -- 2.8%
Electric Utilities -- 1.1%
1,616,510 4.75 Atlantic Power LP, Term Loan, 2/20/21 $ 1,617,521
2,590,375 3.00 Calpine Construction Finance Co. LP, Term B-1
Loan, 5/3/20 2,528,854
1,894,542 4.25 Star West Generation LLC, Term B Advance, 3/13/20 1,866,124
679,080 3.75 Texas Competitive Electric Holdings Co LLC, DIP
Delayed Draw Term Loan (2014), 5/5/16 679,823
-------------
$ 6,692,322
--------------------------------------------------------------------------------------------------
Water Utilities -- 0.3%
1,719,375 4.75 WTG Holdings III Corp., Term Loan (First Lien),
12/12/20 $ 1,711,853
--------------------------------------------------------------------------------------------------
Independent Power Producers & Energy
Traders -- 1.4%
534,169 4.00 Calpine Corp., Term Loan, 9/27/19 $ 535,504
1,391,513 0.00 Calpine Corp., First Lien Term Loan, 5/28/22 (d) 1,378,178
1,203,077 4.00 Dynegy, Inc., Tranche B-2 Term Loan, 4/23/20 1,199,640
2,038,396 2.75 NRG Energy, Inc., Term Loan (2013), 7/1/18 1,986,003
3,306,212 3.75 NSG Holdings LLC, New Term Loan, 12/11/19 3,264,841
-------------
$ 8,364,166
-------------
Total Utilities $ 16,768,341
--------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTERESTS
(Cost $536,933,721) $ 524,718,741
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------------------------
MUTUAL FUNDS -- 0.2%
DIVERSIFIED FINANCIALS -- 0.2%
Other Diversified Financial Services -- 0.2%
50,000 PowerShares Senior Loan Portfolio $ 1,150,000
-------------
Total Diversified Financials $ 1,150,000
--------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(Cost $1,192,485) $ 1,150,000
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
40 Pioneer Floating Rate Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 1.0%
Commercial Paper -- 1.0%
1,475,000 Barclays, Floating Rate Note, 11/2/15 (c) $ 1,474,970
1,475,000 Mondelez, Floating Rate Note, 11/2/15 (c) 1,474,969
1,475,000 Prudential Funding LLC, Floating Rate Note,
11/2/15 (c) 1,474,985
1,475,000 Societe Generale SA, Commercial Paper,
11/2/15 (c) 1,474,990
-------------
$ 5,899,914
--------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $5,899,980) $ 5,899,914
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 95.1%
(Cost $576,723,435) (a) $ 563,423,924
--------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 4.9% $ 28,983,661
--------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 592,407,585
==================================================================================================
+ 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 $7,301,325, or 1.2% of total net
assets. See Notes to Financial Statements -- Note 1H.
(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 $12,150,125 , or 2.1% of total net assets.
REIT Real Estate Investment Trust.
(Perpetual) Security with no stated maturity date.
** 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 $576,904,729 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 1,184,725
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (14,665,530)
------------
Net unrealized depreciation $(13,480,805)
============
(b) Debt obligation with a variable interest rate. Rate shown is rate
at end of period.
(c) Security issued with a zero coupon. Income is recognized through
accretion of discount.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 41
Schedule of Investments | 10/31/15 (continued)
(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 $596,223 or 0.1% of total net
assets. See Notes to Financial Statements -- Note 1H.
(g) 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 $ 8,896,659 $ --
Other Long-Term Securities $135,277,182 $278,433,024
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
-------------------------------------------------------------------------------------------------------------------
Notional Credit Expiration Premiums Unrealized
Principal ($)(1) Counterparty Obligation Entity/Index Coupon Rating(2) Date Received Appreciation
-------------------------------------------------------------------------------------------------------------------
J.P. Morgan Markit CDX North
Chase America High
1,361,250 Bank Yield Index 5.00% B+ 6/20/20 $81,943 $3,954
(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.
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
-----------------------------------------------------------------------------------
Preferred Stocks $1,543,420 $ -- $ -- $ 1,543,420
Convertible Preferred Stock 145,250 -- -- 145,250
Common Stocks 6,253 681,539 -- 687,792
Asset Backed Securities -- 759,548 -- 759,548
Collateralized Mortgage
Obligations -- 358,643 -- 358,643
Corporate Bonds
Insurance
Reinsurance -- 7,301,325 596,223 7,897,548
All Other Corporate Bonds -- 11,371,236 -- 11,371,236
The accompanying notes are an integral part of these financial statements.
42 Pioneer Floating Rate Fund | Annual Report | 10/31/15
-------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------
U.S. Government and
Agency Obligations -- 8,891,832 -- 8,891,832
Senior Floating Rate
Loan Interests -- 524,718,741 -- 524,718,741
Mutual Funds 1,150,000 -- -- 1,150,000
Commercial Paper -- 5,899,914 -- 5,899,914
-------------------------------------------------------------------------------------
Total $ 2,844,923 $559,982,778 $596,223 $563,423,924
=====================================================================================
Other Financial Instruments
Unrealized appreciation
on credit default
swap contracts $ -- $ 3,954 $ -- $ 3,954
-------------------------------------------------------------------------------------
Total Other Financial
Instruments $ -- $ 3,954 $ -- $ 3,954
=====================================================================================
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:
Centrally cleared
swap collateral $ -- $ 95,000 $ -- $ 95,000
Variation margin for
centrally cleared
swap contracts -- 1,439 -- 1,439
--------------------------------------------------------------------------------
Total $ -- $ 96,439 $ -- $ 96,439
================================================================================
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
--------------------------------------------------------------------------------
Corporate
Bonds
--------------------------------------------------------------------------------
Balance as of 10/31/14 $ --
Realized gain (loss)(1) --
Change in unrealized appreciation (depreciation)(2) 48,123
Purchases 548,100
Sales --
Transfers in to Level 3* --
Transfers out of Level 3* --
--------------------------------------------------------------------------------
Balance as of 10/31/15 $ 596,223
================================================================================
(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 $48,123
-------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 43
Statement of Assets and Liabilities | 10/31/15
ASSETS:
Investment in securities (cost $576,723,435) $ 563,423,924
Cash 36,291,881
Centrally cleared swap collateral 95,000
Receivables --
Investment securities sold 3,675,158
Fund shares sold 3,629,062
Interest 2,119,383
Dividends 1,260
Centrally cleared swap contracts, premium paid 81,943
Variation margin for centrally cleared swap contracts 1,439
Unrealized appreciation on swap contracts 3,954
Prepaid expenses 37,737
---------------------------------------------------------------------------------
Total assets $ 609,360,741
=================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 14,625,354
Fund shares repurchased 1,687,996
Distributions 195,447
Trustee fees 2,036
Due to affiliates 218,033
Due to Pioneer Investment Management, Inc. 11,145
Accrued expenses 213,145
---------------------------------------------------------------------------------
Total liabilities $ 16,953,156
=================================================================================
NET ASSETS:
Paid-in capital $ 614,755,789
Undistributed net investment income 292,477
Accumulated net realized loss on investments and swap contracts (9,348,536)
Net unrealized depreciation on investments (13,299,511)
Net unrealized appreciation on swap contracts 3,954
Net unrealized appreciation on delayed draw loan commitments 3,412
---------------------------------------------------------------------------------
Total net assets $ 592,407,585
=================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $174,978,762/25,992,164 shares) $ 6.73
Class C (based on $92,923,899/13,786,747 shares) $ 6.74
Class K (based on $692,565/102,850 shares) $ 6.73
Class Y (based on $323,812,359/47,956,162 shares) $ 6.75
MAXIMUM OFFERING PRICE:
Class A ($6.73 (divided by) 95.5%) $ 7.05
=================================================================================
The accompanying notes are an integral part of these financial statements.
44 Pioneer Floating Rate Fund | Annual Report | 10/31/15
Statement of Operations
For the Year Ended 10/31/15
INVESTMENT INCOME:
Interest $ 27,931,211
Dividends 318,614
-------------------------------------------------------------------------------------------------
Total investment income $ 28,249,825
-------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 3,664,292
Transfer agent fees
Class A 38,969
Class C 19,787
Class Y 3,648
Class Z* 352
Distribution fees
Class A 490,093
Class C 1,005,865
Shareholder communications expense 636,440
Administrative expense 195,332
Custodian fees 63,908
Registration fees 115,156
Professional fees 106,720
Printing expense 49,683
Fees and expenses of nonaffiliated Trustees 24,627
Interest expense 4,553
Miscellaneous 268,364
-------------------------------------------------------------------------------------------------
Total expenses $ 6,687,789
Less fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (471,987)
-------------------------------------------------------------------------------------------------
Net expenses $ 6,215,802
-------------------------------------------------------------------------------------------------
Net investment income $ 22,034,023
-------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAP CONTRACTS AND DELAYED DRAW LOAN COMMITMENTS
Net realized gain (loss) on:
Investments $ (4,792,836)
Swap contracts 4,087 $ (4,788,749)
-------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ (7,431,193)
Swap contracts 3,954
Delayed draw loan commitments 5,103 $ (7,422,136)
-------------------------------------------------------------------------------------------------
Net realized and unrealized loss on investments, swap contracts
and delayed draw loan commitments $(12,210,885)
-------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 9,823,138
=================================================================================================
* Class Z shares converted to Class Y shares on August 7, 2015.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate 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 $ 22,034,023 $ 30,211,193
Net realized loss on investments and swap contracts (4,788,749) (2,161,487)
Change in net unrealized appreciation (depreciation) on
investments, swap contracts and delayed draw loan
commitments (7,422,136) (8,434,792)
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 9,823,138 $ 19,614,914
-------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.23 and $0.24 per share, respectively) $ (6,819,255) $ (9,406,216)
Class C ($0.19 and $0.19 per share, respectively) (2,752,797) (3,458,024)
Class K* ($0.26 and $0.24 per share, respectively) (19,162) (349)
Class Y ($0.26 and $0.26 per share, respectively) (12,261,475) (16,096,732)
Class Z** ($0.19 and $0.25 per share, respectively) (102,418) (714,579)
-------------------------------------------------------------------------------------------
Total distributions to shareowners $ (21,955,107) $ (29,675,900)
-------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 196,814,951 $ 373,641,102
Reinvestment of distributions 19,923,924 28,835,511
Cost of shares repurchased (331,831,538) (512,014,334)
-------------------------------------------------------------------------------------------
Net decrease in net assets resulting from Fund
share transactions $ (115,092,663) $ (109,537,721)
-------------------------------------------------------------------------------------------
Net decrease in net assets $ (127,224,632) $ (119,598,707)
NET ASSETS:
Beginning of year 719,632,217 839,230,924
-------------------------------------------------------------------------------------------
End of year $ 592,407,585 $ 719,632,217
-------------------------------------------------------------------------------------------
Undistributed net investment income $ 292,477 $ 35,586
===========================================================================================
* Class K shares commenced operations on December 10, 2013.
** 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 Floating Rate 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 8,071,604 $ 55,022,985 18,836,617 $ 130,797,329
Reinvestment of
distributions 957,018 6,514,616 1,388,741 9,629,680
Less shares repurchased (17,843,127) (121,562,711) (23,818,544) (165,075,594)
-------------------------------------------------------------------------------------
Net decrease (8,814,505) $ (60,025,110) (3,593,186) $ (24,648,585)
=====================================================================================
Class C
Shares sold 2,422,862 $ 16,560,977 4,093,630 $ 28,456,600
Reinvestment of
distributions 364,313 2,483,342 480,489 3,335,867
Less shares repurchased (5,321,906) (36,300,891) (6,810,541) (47,261,964)
-------------------------------------------------------------------------------------
Net decrease (2,534,731) $ (17,256,572) (2,236,422) $ (15,469,497)
=====================================================================================
Class K*
Shares sold 107,395 $ 730,438 1,439 $ 10,000
Reinvestment of
distributions -- -- -- --
Less shares repurchased (5,984) (40,870) -- --
-------------------------------------------------------------------------------------
Net increase 101,411 $ 689,568 1,439 $ 10,000
=====================================================================================
Class Y
Shares sold 18,061,494 $ 123,616,077 29,736,107 $ 207,017,300
Reinvestment of
distributions 1,585,617 10,825,526 2,173,235 15,108,008
Less shares repurchased (22,868,910) (156,327,282) (41,776,103) (290,364,598)
-------------------------------------------------------------------------------------
Net decrease (3,221,799) $ (21,885,679) (9,866,761) $ (68,239,290)
=====================================================================================
Class Z**
Shares sold 129,737 $ 884,474 1,056,437 $ 7,359,873
Reinvestment of
distributions 14,657 100,440 109,575 761,956
Less shares repurchased (2,561,729) (17,599,784) (1,340,586) (9,312,178)
-------------------------------------------------------------------------------------
Net decrease (2,417,335) $ (16,614,870) (174,574) $ (1,190,349)
=====================================================================================
* Class K shares commenced operations on December 10, 2013.
** Class Z shares converted to Class Y shares on August 7, 2015.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 47
Financial Highlights
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/15 10/31/14 10/31/13 10/31/12 10/31/11
---------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 6.86 $ 6.95 $ 6.95 $ 6.77 $ 6.87
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.24(a) $ 0.24 $ 0.28 $ 0.33 $ 0.31
Net realized and unrealized gain (loss) on investments (0.14) (0.09) 0.01 0.16 (0.11)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.10 $ 0.15 $ 0.29 $ 0.49 $ 0.20
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.23) $ (0.24) $ (0.29) $ (0.31) $ (0.30)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.13) $ (0.09) $ -- $ 0.18 $ (0.10)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.73 $ 6.86 $ 6.95 $ 6.95 $ 6.77
===========================================================================================================================
Total return* 1.53% 2.17% 4.24% 7.43% 2.98%
Ratio of net expenses to average net assets 1.08% 1.07% 1.06% 1.11% 1.10%
Ratio of net investment income (loss) to average net assets 3.48% 3.49% 3.88% 4.77% 4.47%
Portfolio turnover rate 24% 43% 40% 42% 57%
Net assets, end of period (in thousands) $174,979 $238,764 $ 266,832 $179,260 $176,701
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 1.10% 1.07% 1.10% 1.11% 1.12%
Net investment income (loss) to average net assets 3.46% 3.49% 3.85% 4.77% 4.45%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(a) The 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 Floating Rate Fund | Annual Report | 10/31/15
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/15 10/31/14 10/31/13 10/31/12 10/31/11
---------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 6.87 $ 6.96 $ 6.95 $ 6.78 $ 6.87
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.19(a) $ 0.19 $ 0.23 $ 0.27 $ 0.26
Net realized and unrealized gain (loss) on investments (0.13) (0.09) 0.02 0.16 (0.10)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.06 $ 0.10 $ 0.25 $ 0.43 $ 0.16
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.19) $ (0.19) $ (0.24) $ (0.26) $ (0.25)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.13) $ (0.09) $ 0.01 $ 0.17 $ (0.09)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.74 $ 6.87 $ 6.96 $ 6.95 $ 6.78
===========================================================================================================================
Total return* 0.81% 1.43% 3.61% 6.46% 2.33%
Ratio of net expenses to average net assets 1.81% 1.78% 1.80% 1.86% 1.89%
Ratio of net investment income (loss) to average net assets 2.74% 2.79% 3.13% 4.02% 3.68%
Portfolio turnover rate 24% 43% 40% 42% 57%
Net assets, end of period (in thousands) $92,924 $112,117 $129,093 $70,655 $65,238
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 1.84% 1.78% 1.83% 1.86% 1.89%
Net investment income (loss) to average net assets 2.71% 2.79% 3.09% 4.02% 3.68%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(a) The 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 Floating Rate Fund | Annual Report | 10/31/15 49
Financial Highlights (continued)
------------------------------------------------------------------------------------------
Year
Ended 12/10/13 to
10/31/15 10/31/14
------------------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $ 6.86 $ 6.95
------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.26(a) $ 0.24
Net realized and unrealized gain (loss) on investments (0.13) (0.09)
------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.13 $ 0.15
------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.26) $ (0.24)
------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.13) $ (0.09)
------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.73 $ 6.86
==========================================================================================
Total return* 1.92% 2.21%(b)
Ratio of net expenses to average net assets 0.71% 0.69%**
Ratio of net investment income (loss) to average net assets 3.81% 3.45%**
Portfolio turnover rate 24% 43%
Net assets, end of period (in thousands) $ 693 $ 10
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.73% 0.69%**
Net investment income (loss) to average net assets 3.79% 3.45%**
==========================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) Not Annualized.
The accompanying notes are an integral part of these financial statements.
50 Pioneer Floating Rate Fund | Annual Report | 10/31/15
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/15 10/31/14 10/31/13 10/31/12 10/31/11
---------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 6.88 $ 6.97 $ 6.96 $ 6.78 $ 6.89
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.26(a) $ 0.27 $ 0.31 $ 0.35 $ 0.33
Net realized and unrealized gain (loss) on investments (0.13) (0.10) 0.02 0.16 (0.12)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.13 $ 0.17 $ 0.33 $ 0.51 $ 0.21
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.26) $ (0.26) $ (0.32) $ (0.33) $ (0.32)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.13) $ (0.09) $ 0.01 $ 0.18 $ (0.11)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.75 $ 6.88 $ 6.97 $ 6.96 $ 6.78
===========================================================================================================================
Total return* 1.92% 2.50% 4.77% 7.78% 3.11%
Ratio of net expenses to average net assets 0.70% 0.70% 0.70% 0.70% 0.88%
Ratio of net investment income (loss) to average net assets 3.84% 3.86% 4.16% 5.17% 4.70%
Portfolio turnover rate 24% 43% 40% 42% 57%
Net assets, end of period (in thousands) $323,812 $352,115 $425,245 $18,805 $60,596
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.82% 0.82% 0.83% 0.85% 0.88%
Net investment income (loss) to average net assets 3.72% 3.74% 4.04% 5.02% 4.70%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 51
Notes to Financial Statements | 10/31/15
1. Organization and Significant Accounting Policies
Pioneer Floating Rate Fund (the Fund) is a series of Pioneer Series Trust VI, 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 produce a high level of current income.
The Fund offers four classes of shares designated as Class A, Class C, Class K
and Class Y shares. Class K shares commenced operations on December 10, 2013.
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 of Trustees the
flexibility to specify either per-share voting or dollar-weighted voting when
submitting matters for shareholder approval. Under per-share voting, each share
of a class of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class K or Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Fixed
income
52 Pioneer Floating Rate Fund | Annual Report | 10/31/15
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.
Shares of money market mutual funds are valued at such funds' net asset
value. Cash may include overnight time deposits at approved financial
institutions.
Trading in foreign securities is substantially completed each day at
various times prior to the close of the NYSE. The values of such securities
used in computing the net asset value of the Fund's shares are determined
as of such times.
Securities or 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.
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
Pioneer Floating Rate Fund | Annual Report | 10/31/15 53
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 there were no securities that were valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services or broker-dealers or through a third party
using an insurance industry valuation model).
B. Investment Income and Transactions
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis.
Dividend and interest income are reported net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
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.
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
54 Pioneer Floating Rate Fund | Annual Report | 10/31/15
financial statement and tax purposes. Capital accounts within the financial
statements are adjusted for permanent book/tax differences to reflect tax
character, but are not adjusted for temporary differences. At October 31,
2015, the Fund reclassified $177,975 to increase undistributed net
investment income and $177,975 to increase accumulated net realized loss on
investments and swap contracts to reflect permanent book/tax differences.
These adjustments have no impact on net assets or the results of
operations.
At October 31, 2015, the Fund was permitted to carry forward indefinitely
$1,458,598 of short-term losses and $5,992,094 of long-term losses under
the Regulated Investment Company Modernization Act of 2010 without
limitation. Additionally, at October 31, 2015, the Fund had a net capital
loss carryforward of $1,891,734 of which the following amounts will expire
between 2016 and 2019 if not utilized: $349,923 in 2016, $967,278 in 2017,
and $574,533 in 2019.
The tax character of distributions paid during the years ended October 31,
2015, and October 31, 2014, were as follows:
---------------------------------------------------------------------------
2015 2014
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $21,955,107 $29,675,900
---------------------------------------------------------------------------
Total $21,955,107 $29,675,900
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 661,055
Capital loss carryforward (9,342,426)
Dividend payable (195,447)
Net unrealized depreciation (13,471,386)
---------------------------------------------------------------------------
Total $(22,348,204)
===========================================================================
The difference between book basis and tax basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales, adjustments
relating to catastrophe bonds, the tax treatment of premium and
amortization, the mark-to-market of swap contracts, tax basis adjustments
on interest accruals on preferred stock, interest on defaulted bonds and
other holdings.
D. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
is recorded in
Pioneer Floating Rate Fund | Annual Report | 10/31/15 55
the Fund's financial statements. The Fund records realized gains and losses
at the time a contract is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (see Note 6).
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A (UniCredit),
earned $19,509 in underwriting commissions on the sale of Class A shares
during the year ended October 31, 2015.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class K and Class Y shares do not pay distribution fees. All
expenses and fees paid to the Fund's transfer agent, for its services are
allocated among the classes of shares based on the number of accounts in
each class and the ratable allocation of related out-of-pocket expenses
(see Note 3).
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 K and Class Y shares
can reflect different transfer agent and distribution expense rates.
G. Risks
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund invests in below
investment grade (high yield) debt securities. 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
56 Pioneer Floating Rate Fund | Annual Report | 10/31/15
Fund's investments in foreign markets or countries with limited developing
markets may also subject the Fund to a greater degree of risk than
investments in a developed market. Risks associated with these markets
include disruptive political or economic conditions and the possible
imposition of adverse governmental laws or currency exchange restrictions.
The Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
H. 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 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.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 57
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.
I. Repurchase Agreements
Repurchase agreements are arrangements under which the Fund purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Fund at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Fund. The securities purchased serve as
the Fund's collateral for the obligation of the counterparty to repurchase
the securities. The value of the collateral, including accrued interest, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian or a subcustodian of the
Fund. The Fund's investment adviser, PIM is responsible for determining
that the value of the collateral remains at least equal to the repurchase
price. In the event of a default by the counterparty, the Fund is entitled
to sell the securities, but the Fund may not be able to sell them for the
price at which they were purchased, thus causing a loss to the Fund.
Additionally, if the counterparty becomes insolvent, there is some risk
that the Fund will not have a right to the securities, or the immediate
right to sell the securities. As of the year ended October 31, 2015 the
fund had no outstanding repurchase agreements.
J. 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 Floating Rate 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.
Open centrally cleared swap contracts at October 31, 2015, are listed in
the Schedule of Investments. The average value of swap contracts open
during the year ended October 31, 2015, was $26,898.
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 0.60% of
the Fund's average daily net assets up to $500 million and 0.55% on assets over
$500 million. For the year ended October 31, 2015, the annualized management fee
(excluding waivers and/or assumption of expenses) was equivalent to 0.59% of the
Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 0.70% of the Fund's average daily net assets
attributable to Class Y shares. Fees waived and expenses reimbursed during the
year ended October 31, 2015, are reflected on the Statement of Operations. These
expense limitations are in effect through March 1, 2017. There can be no
assurance that PIM will extend the expense limitation agreement for a class of
shares beyond the date referred to above.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 59
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
$54,176 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 $221,000
Class C 93,400
Class K 5
Class Y 314,179
Class Z 7,856
--------------------------------------------------------------------------------
Total $636,440
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $152,657 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at October 31, 2015.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets
attributable to Class A shares as compensation for personal services and/or
account maintenance services or distribution services with regard to Class A
shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $11,200 in distribution fees payable to
PFD at October 31, 2015.
60 Pioneer Floating Rate Fund | Annual Report | 10/31/15
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchases as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to PFD. For the
year ended October 31, 2015, CDSCs in the amount of $21,647 were paid to PFD.
5. Expense Offset Arrangements
The Fund 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. Forward Foreign Currency Contracts
At October 31, 2015, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. There were no forward foreign currency
contracts outstanding during the year ended October 31, 2015.
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until 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 average daily amount of borrowings
outstanding during the period was $6,266,667. The related weighted average
annualized interest rate for the period was 0.96%, and the total interest
Pioneer Floating Rate Fund | Annual Report | 10/31/15 61
expense on such borrowings was $4,553, which is included in interest expense,
located on the Statement of Operations. As of October 31, 2015, there were no
borrowings outstanding.
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.
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 Rate Risk Risk Risk
--------------------------------------------------------------------------------
Assets
Unrealized
appreciation on
swap contracts $ -- $3,954 $ -- $ -- $ --
--------------------------------------------------------------------------------
Total Value $ -- $3,954 $ -- $ -- $ --
================================================================================
Liabilities
Unrealized
depreciation on
swap contracts $ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------------
Total Value $ -- $ -- $ -- $ -- $ --
================================================================================
62 Pioneer Floating Rate Fund | Annual Report | 10/31/15
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 Rate Risk Risk Risk
--------------------------------------------------------------------------------
Net realized gain
(loss) on
Swap contracts $ -- $4,087 $ -- $ -- $ --
--------------------------------------------------------------------------------
Total Value $ -- $4,087 $ -- $ -- $ --
================================================================================
Change in net
unrealized
appreciation
(depreciation) on
Swap contracts $ -- $3,954 $ -- $ -- $ --
--------------------------------------------------------------------------------
Total Value $ -- $3,954 $ -- $ -- $ --
================================================================================
9. Bridge and Delayed Draw 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 Fund had the following bridge loan and delayed draw
loan commitments outstanding as of October 31, 2015:
--------------------------------------------------------------------------------
Unrealized
Appreciation/
Loan Shares Cost Value Depreciation
--------------------------------------------------------------------------------
Charter Communications
Operating LLC, Bridge Loan 565,217 $565,217 $565,217 $ --
Integro Limited, Bridge
Term Loan 347,222 333,393 336,805 3,412
--------------------------------------------------------------------------------
Total 912,439 $898,610 $902,022 $3,412
================================================================================
10. Conversion of Class Z Shares
As of the close of business on August 7, 2015, all outstanding Class Z shares of
the Fund were converted to Class Y shares.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 63
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VI and the Shareowners of
Pioneer Floating Rate Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Floating Rate Fund (one of the funds
constituting Pioneer Series Trust VI), 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 Floating Rate 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
64 Pioneer Floating Rate Fund | Annual Report | 10/31/15
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 was 95.08%.
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.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 65
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Floating Rate 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 manager 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
66 Pioneer Floating Rate Fund | Annual Report | 10/31/15
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
manager 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.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 67
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 second quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoint in the management fee schedule and the
reduced fee rate above a certain asset level. 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 third
quintile relative its Strategic Insight peer group, in each case for the
comparable period. The Trustees considered that the expense ratio of the Fund's
Class Y shares for the most recent fiscal year was in the second quintile
relative to its Morningstar peer group and in the first quintile relative its
Strategic Insight peer group, in each case for the comparable period. The
Trustees noted that PIM was waiving fees and/or reimbursing expenses in order to
limit the ordinary operating expenses of the Fund. The Trustees considered that
the expense ratio of the Fund's Class A shares was approximately two basis
points higher than the median expense ratio of the funds in the Fund's
Morningstar peer group. The Trustees considered the impact of transfer agency,
sub-transfer agency and other non-management fee expenses on the expense ratios
of the Fund, and noted the impact of expenses relating to small accounts and
omnibus accounts on transfer and sub-transfer agency expenses generally. The
Trustees noted that they separately review the Fund's transfer agency,
sub-transfer agency and intermediary arrangements.
The Trustees reviewed management fees charged by 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
68 Pioneer Floating Rate Fund | Annual Report | 10/31/15
noted that, in some instances, the fee rates for those clients were lower than
the management fee for the Fund and considered that, under the investment
advisory agreement with the Fund, PIM performs additional services for the Fund
that it does not provide to those other clients or services that are broader in
scope, including oversight of the Fund's other service providers and activities
related to compliance and the extensive regulatory and tax regimes to which the
Fund is subject. The Trustees also considered the different entrepreneurial
risks associated with PIM's management of the Fund and Pioneer's management of
the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
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 breakpoint 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.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 69
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. 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.
70 Pioneer Floating Rate Fund | Annual Report | 10/31/15
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
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.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 71
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 2007. Private investor (2004 - 2008 and 2013 - present); Director, Broadridge
Chairman of the Board Serves until a Chairman (2008 - 2013) and Chief Executive Officer Financial Solutions, Inc.
and Trustee successor trustee (2008 - 2012), Quadriserv, Inc. (technology (investor communications and
is elected or products for securities lending industry); and securities processing
earlier retirement Senior Executive Vice President, The Bank of New provider for financial
or removal. York (financial and securities services) (1986 - services industry) (2009 -
2004) present); Director,
Quadriserv, Inc. (2005 -
2013); and Commissioner, New
Jersey State Civil Service
Commission (2011 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (71) Trustee since 2007. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - 2004 Trust (publicly-traded
successor trustee 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); Executive The Swiss Helvetia Fund, Inc.
or removal. Vice President and Chief Financial Officer, (closed-end fund) (2010 -
I-trax, Inc. (publicly traded health care services present); Director of Oxford
company) (2004 - 2007); and Executive Vice Analytica, Inc. (2008 -
President and Chief Financial Officer, Pedestal present); and Director of
Inc. (internet-based mortgage trading company) Enterprise Community
(2000 - 2002); Private consultant (1995-1997), Investment, Inc.
Managing Director, Lehman Brothers (investment (privately-held affordable
banking firm) (1992-1995); and Executive, The housing finance company)
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)
------------------------------------------------------------------------------------------------------------------------------------
72 Pioneer Floating Rate Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (68) Trustee since 2007. 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 2007. 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)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Floating Rate Fund | Annual Report | 10/31/15 73
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 2008) None
Trustee Serves until a and Chief Investment Officer, U.S. (since 2010) of
successor trustee PIM-USA; Executive Vice President of Pioneer
is elected or (since 2008); Executive Vice President of Pioneer
earlier retirement Institutional Asset Management, Inc. (since 2009);
or removal. 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.
74 Pioneer Floating Rate Fund | Annual Report | 10/31/15
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine 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.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 75
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 2007. 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
------------------------------------------------------------------------------------------------------------------------------------
76 Pioneer Floating Rate Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (50) Since 2007. 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 2007. 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 None
Chief Compliance Officer at the discretion the Pioneer Funds since March 2010; Chief
of the Board. Compliance Officer of Pioneer Institutional Asset
Management, Inc. since January 2012; Chief
Compliance Officer of Vanderbilt Capital
Advisors, LLC since July 2012: Director of
Adviser and Portfolio Compliance at Pioneer since
October 2005; and Senior Compliance Officer for
Columbia Management Advisers, Inc. from October
2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (44) Since 2007. Serves Director - Transfer Agency Compliance of Pioneer None
Anti-Money Laundering at the discretion and Anti-Money Laundering Officer of all the
Officer of the Board. Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Floating Rate Fund | Annual Report | 10/31/15 77
This page for your notes.
78 Pioneer Floating Rate Fund | Annual Report | 10/31/15
This page for your notes.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 79
This page for your notes.
80 Pioneer Floating Rate Fund | Annual Report | 10/31/15
This page for your notes.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 81
This page for your notes.
82 Pioneer Floating Rate Fund | Annual Report | 10/31/15
This page for your notes.
Pioneer Floating Rate Fund | Annual Report | 10/31/15 83
This page for your notes.
84 Pioneer Floating Rate 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 21401-08-1215
Pioneer Flexible
Opportunities Fund
(Formerly Pioneer Multi Asset Real Return Fund)*
--------------------------------------------------------------------------------
Annual Report | October 31, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PMARX
Class C PRRCX
Class R MUARX
Class Y PMYRX
* Effective June 1, 2015, the Fund was renamed Pioneer
Flexible Opportunities Fund.
[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
Consolidated Financial Statements 34
Consolidated Notes to Financial Statements 42
Report of Independent Registered Public Accounting Firm 60
Approval of Investment Advisory Agreement 62
Trustees, Officers and Service Providers 67
Pioneer Flexible Opportunities 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 height ened 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 Flexible Opportunities 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 Flexible Opportunities Fund | Annual Report | 10/31/15 3
Portfolio Management Discussion | 10/31/15
In the following discussion, Michele Garau and Howard Weiss review recent market
events and describes the factors that affected the performance of Pioneer
Flexible Opportunities Fund* during the 12-month period ended October 31, 2015.
Mr. Garau, a senior vice president and portfolio manager at Pioneer, is
responsible for the day-to-day management of the Fund, along with Mr. Weiss, a
vice president and portfolio manager at Pioneer.
Q How did the Fund perform during the 12-month period ended October 31, 2015?
A Pioneer Flexible Opportunities Fund's Class A shares returned 2.85% at net
asset value during the 12-month period ended October 31, 2015, while the
Fund's benchmark, the Barclays U.S. Treasury TIPS 1-10 Year Index (the
Barclays Index), returned -1.24%. During the same period, the average
return of the 313 mutual funds in Lipper's Alternative Global Macro Funds
category was -3.95%, and the average return of the 327 mutual funds in
Morningstar's Tactical Allocation Funds category was -3.60%.
Q Could you discuss some of the investment decisions that factored into the
Fund's benchmark-relative performance during the 12-month period ended
October 31, 2015?
A In managing the Fund during the period, we retained a preference for
equities and had less emphasis on bonds and commodity-linked investments,
based on our belief that stocks were continuing to offer the most
attractive long-term return prospects, despite elevated volatility in the
equity markets over the second half of the 12-month period. As of October
31, 2015, the portfolio had allocations of roughly 65% in stocks, 25% in
fixed-income investments, and 10% in investments that gave the Fund
exposure to "real" assets, which include real estate investment trusts
(REITs) and commodities. The positioning was beneficial to Fund performance
given equities' strong returns relative to both commodities and bonds
during the period -- particularly the Treasury Inflation Protected
Securities held in the Barclays Index.
In addition, the Fund's performance benefited from the portfolio's
allocation to REITs. REITs, in general, and Asian REITs, in particular,
performed well over the 12 months due to the combination of their above-
average yields and the overall strength in global property markets.
Benchmark-relative performance received a further boost from our decision
to hold little-to-no commodity-linked investments in the portfolio
throughout the course of the year, which enabled the Fund to sidestep the
impact of the significant underperformance of the asset class.
* Note to Shareholders: Effective June 1, 2015, Pioneer Multi-Asset Real
Return Fund was renamed Pioneer Flexible Opportunities Fund.
4 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
Our decision to emphasize investment-grade bonds over high-yield debt
within the Fund's fixed-income portfolio was another positive contributor
to relative performance. High-yield bonds underperformed investment-grade
bonds by a wide margin during the 12-month period, reflecting the combined
impact of falling commodity prices and rising investor risk-aversion.
On the negative side, the Fund's allocation to international equities
detracted from performance, somewhat, as stocks in both the developed and
emerging markets lagged U.S. equities for the 12-month period.
Q Could you discuss the Fund's overall positioning as of October 31, 2015,
and touch upon any adjustments you made during the 12-month period?
A The Fund's asset allocation embodies our long-term investment orientation,
and we feel that present global market conditions have not shifted to the
point where they would warrant our undertaking a broad-based portfolio
repositioning away from equities. Our preference for equities is a
reflection of both the improving global economy and the rich valuations
found in most segments of the global fixed-income markets. In addition, the
U.S. Federal Reserve System (the Fed) has stated on many occasions that its
future interest-rate increases will be gradual in nature and dependent upon
incoming data. We believe those factors, together with the continued
strength in corporate profit margins, make the case for preferring equities
over bonds. We have continued to favor the U.S. equity market over other
developed international markets, but we have also sought to take advantage
of select opportunities in Europe and Japan. We have found a number of
attractive investment candidates in the aerospace/defense sector, and in
companies that are making shareholder-friendly capital allocation decisions
in the form of dividends and share buybacks.
The Fund also has sizable exposure to the Chinese market in the form of
"H"-shares listed in Hong Kong. As is the case elsewhere, our investment
approach with regard to China remains top-down and theme-driven. We have
emphasized holding the stocks of companies that we feel are primed to
benefit from China's transition to an economy that is more reliant on
domestic consumption, and less dependent on fixed-asset investment and
government spending. At the same time, we have steered the portfolio's
emerging markets exposure away from countries that we believe are likely to
be hurt by the very same shift. The net impact of the changes has been a
reduction in the Fund's weighting in the emerging markets: Chinese
investments made up approximately half of the allocation at the close of
the period, with holdings in India, the Philippines and Vietnam making up
the remainder of the emerging markets position.
The portfolio's current positioning within fixed-income is geared primarily
toward capitalizing on specific opportunities in bond sectors where
investors' fears caused yields to rise to attractive levels in relation to
the
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 5
underlying risks. For instance, we have invested the Fund in the bonds of
certain mining and energy companies where cash flows remain more than
sufficient to make the required debt payments, but where the broader
downturn in commodities has caused bond prices to fall to distressed
levels. We have also identified what we believe to be a potential
opportunity in U.S. dollar-denominated paper in large Russian companies
such as Lukoil, Gazprom, and others. We believe those securities offer very
attractive yields for relatively low default risk. In addition, the
portfolio holds the sovereign debt of emerging markets nations where we
have seen favorable country-specific opportunities, such as Indonesia and
Mexico.
The Fund's "real" asset portfolio continues to be focused almost entirely
on REITs. With the exception of opportunistic positions in platinum- and
palladium-related investments - the market for the latter's having received
a boost from palladium's use in catalytic converters at a time of strong
global auto sales - we have avoided commodity-linked investments on the
basis of the unfavorable supply-and-demand equation found in most markets.
In contrast, we have found REITs to be a source of both above-average
income and attractive total return potential. We believe the opportunity
for capital appreciation in Asian REITs has been largely realized, but we
retain the Fund's allocation to that sector based on compelling yields.
Q Can you discuss how you used derivatives as part of your investment
strategy for the Fund during the 12-month period ended October 31, 2015,
and how the use of derivatives affected performance, if at all?
A The impact of derivatives on the Fund's performance during the 12-month
period was positive; however, our goal in using derivatives (outside of
commodity-linked instruments) isn't to add to the Fund's total return. In
other words, the derivative positions in the portfolio are not intended to
represent high-risk investments in certain market segments. Instead, we use
derivatives to maintain balance in the portfolio and as an attempt to
"hedge" (or mitigate) the risks of certain other positions.
Q Do you have any closing thoughts for investors?
A We continue to employ a flexible, go-anywhere investment approach that we
believe enables the Fund to adapt to changing market conditions by
investing in any asset class or region. Rather than being constrained by a
"style box" or an index-tracking strategy, we have the ability to actively
seek investment opportunities while attempting to manage the Fund's risk in
response to the constantly evolving market environment. Our goal in
employing this approach is to seek to help the Fund's shareholders to
maintain their purchasing power over time.
6 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
Please refer to the Schedule of Investments on pages 17-33 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
The Fund has the ability to invest in a wide variety of securities and asset
classes.
In addition, the Fund is non-diversified, which means it can invest a higher
percentage of its assets in the securities of any one or more issuers. This will
increase the Fund's potential risk exposure.
The Fund may invest in underlying funds (including ETFs). In addition to the
Fund's operating expenses, you will indirectly bear the operating expenses of
investments in any underlying funds.
The Fund and some of the underlying funds employ leverage through the use of
derivatives, which increases the volatility of investment returns and subjects
the Fund to magnified losses if the Fund or an underlying fund's investments
decline in value.
The Fund and some of the underlying funds may use derivatives, such as options
and futures, which can be illiquid, may disproportionately increase losses, and
have a potentially large impact on Fund performance.
The Fund and some of the underlying funds may employ short selling, a
speculative strategy. Unlike the possible loss on a security that is purchased,
there is no limit to the amount of loss on an appreciating security that is sold
short.
The Fund may invest in inflation-linked securities. As inflationary expectations
increase, inflation-linked securities may become more attractive, because they
protect future interest payments against inflation. Conversely, as inflationary
concerns decrease, inflation-linked securities will become less attractive and
less valuable.
The Fund may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Fund may invest in subordinated securities which may be disproportionately
adversely affected by a default or even a perceived decline in creditworthiness
of the issuer.
The Fund may invest in floating rate loans. The value of collateral, if any,
securing a floating rate loan can decline or may be insufficient to meet the
issuer's obligations or may be difficult to liquidate.
The Fund may invest in event-linked bonds. The return of principal and the
payment of interest on event-linked bonds are contingent on the non-occurrence
of a pre-defined "trigger" event, such as a hurricane or an earthquake of a
specific magnitude.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 7
The Fund may invest in commodity-linked derivatives. The value of
commodity-linked derivatives may be affected by changes in overall market
movements, commodity index volatility, changes in interest rates, factors
affecting a particular industry or commodity, international economic, political
and regulatory developments, supply and demand, and governmental regulatory
policies.
Investments in equity securities are subject to price fluctuation.
Small-and mid-cap stocks involve greater risks and volatility than large-cap
stocks.
International investments are subject to special risks, including currency
fluctuations, and social, economic and political uncertainties, which could
increase volatility. These risks are magnified in emerging markets.
Investments in fixed-income securities involve interest rate, credit, inflation,
and reinvestment risks. As interest rates rise, the value of fixed-income
securities will generally fall.
Prepayment risk is the chance that an issuer may exercise its right to repay its
security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The Fund may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-
income securities. Mortgage-Backed securities are also subject to prepayments.
High-yield bonds possess greater price volatility, illiquidity, and possibility
of default.
These risks may increase share price volatility.
There is no assurance that these and other strategies used by the Fund or
underlying funds will be successful.
Please see the prospectus for a more complete discussion of the Fund's risks.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
8 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
Portfolio Summary | 10/31/15
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 29.7%
Industrials 18.8%
Health Care 13.3%
Consumer Discretionary 7.6%
Materials 7.0%
Information Technology 5.9%
Consumer Staples 4.6%
Exchange Traded Funds 4.4%
Energy 3.9%
Government 2.0%
Utilities 1.9%
Telecommunications Services 0.9%
Portfolio Diversification*
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
International Common Stocks 39.6%
U.S. Common Stocks 30.8%
International Corporate Bonds 9.6%
Foreign Government Bonds 7.2%
U.S. Corporate Bonds 4.4%
Exchange Traded Funds 4.5%
Depositary Receipts for International Stocks 3.0%
Senior Secured Loans 0.6%
Collateralized Mortgage Obligations 0.3%
U.S. Preferred Stocks 0.0%+
+ Amount rounds to less than 0.1%.
* Includes investments in insurance linked securities totaling 0.1% of total
investment portfolio.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)**
1. Russian Foreign Bond - Eurobond, 3.5%, 1/16/19 (144A) 2.79%
--------------------------------------------------------------------------------
2. Gold Fields Orogen Holdings BVI, Ltd., 4.875%, 10/7/20 (144A) 2.21
--------------------------------------------------------------------------------
3. Indonesia Government International Bond, 5.875%, 1/15/24 (144A) 2.01
--------------------------------------------------------------------------------
4. Mexican Bonos, 10.0%, 12/5/24 1.51
--------------------------------------------------------------------------------
5. Raytheon Co. 1.17
--------------------------------------------------------------------------------
6. ProShares S&P 500 Dividend Aristocrats ETF 1.16
--------------------------------------------------------------------------------
7. ACE, Ltd. 1.10
--------------------------------------------------------------------------------
8. Abbott Laboratories 1.09
--------------------------------------------------------------------------------
9. American International Group, Inc. 1.08
--------------------------------------------------------------------------------
10. Honeywell International, Inc. 1.07
--------------------------------------------------------------------------------
** 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 Flexible Opportunities 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 $12.68 $12.94
--------------------------------------------------------------------------------
C $12.56 $12.78
--------------------------------------------------------------------------------
R $12.69 $12.92
--------------------------------------------------------------------------------
Y $12.72 $12.97
--------------------------------------------------------------------------------
Distributions per Share: 11/1/14 - 10/31/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2973 $ -- $0.3264
--------------------------------------------------------------------------------
C $0.1604 $ -- $0.3264
--------------------------------------------------------------------------------
R $0.1464 $ -- $0.3264
--------------------------------------------------------------------------------
Y $0.3325 $ -- $0.3264
--------------------------------------------------------------------------------
The Barclays U.S. Treasury TIPS 1-10 Year Index is an unmanaged index comprised
of U.S. Treasury Inflation Protected Securities (TIPS) having a maturity of at
least 1 year and less than 10 years. Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. It is not possible to invest directly in an
index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 11-14.
10 Pioneer Flexible Opportunities 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 Flexible Opportunities Fund at
public offering price during the periods shown, compared to that of the Barclays
U.S. Treasury TIPS 1-10 Year Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Barclays
Net Public U.S. Treasury
Asset Offering TIPS
Value Price 1-10 Year
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
Life-of-Class
(5/3/10) 7.20% 6.30% 2.19%
5 Years 6.63 5.65 1.47
1 Year 2.85 -1.78 -1.24
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.27% 1.24%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Flexible Barclays U.S. Treasury
Opportunties Fund TIPS 1-10 Year Index
5/10 $ 9,550 $10,000
10/10 $10,351 $10,481
10/11 $11,034 $11,217
10/12 $11,918 $11,797
10/13 $13,672 $11,351
10/14 $13,870 $11,419
10/15 $14,265 $11,277
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2016, for Class A shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus 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 Flexible Opportunities 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 Flexible Opportunities Fund during
the periods shown, compared to that of the Barclays U.S. Treasury TIPS 1-10 Year
Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Barclays
U.S. Treasury
TIPS
If If 1-10 Year
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life-of-Class
(5/3/10) 6.39% 6.39% 2.19%
5 Years 5.80 5.80 1.47
1 Year 2.12 2.12 -1.24
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.01%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Flexible Barclays U.S. Treasury
Opportunties Fund TIPS 1-10 Year Index
5/10 $10,000 $10,000
10/10 $10,816 $10,481
10/11 $11,431 $11,217
10/12 $12,252 $11,797
10/13 $13,959 $11,351
10/14 $14,043 $11,419
10/15 $14,340 $11,277
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 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 Flexible Opportunities 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 Flexible Opportunities Fund during
the periods shown, compared to that of the Barclays U.S. Treasury TIPS 1-10 Year
Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Barclays
Net U.S. Treasury
Asset TIPS
Value 1-10 Year
Period (NAV) Index
--------------------------------------------------------------------------------
Life-of-Fund
(5/3/10) 6.96% 2.19%
5 Years 6.37 1.47
1 Year 1.90 -1.24
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.59%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Flexible Barclays U.S. Treasury
Opportunties Fund TIPS 1-10 Year Index
5/10 $10,000 $10,000
10/10 $10,836 $10,481
10/11 $11,551 $11,217
10/12 $12,477 $11,797
10/13 $14,309 $11,351
10/14 $14,479 $11,419
10/15 $14,754 $11,277
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class R shares for the period prior to the
commencement of operations of Class R shares on September 13, 2013, is based on
the performance of Class A shares, reduced to reflect the higher distribution
and service fees of Class R shares. For the period beginning September 13, 2013,
the actual performance of Class R shares is reflected. Class R shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The 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 Flexible Opportunities 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 Flexible Opportunities Fund during
the periods shown, compared to that of the Barclays U.S. Treasury TIPS 1-10 Year
Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Barclays
Net U.S. Treasury
Asset TIPS
Value 1-10 Year
Period (NAV) Index
--------------------------------------------------------------------------------
Life-of-Class
(5/3/10) 7.51% 2.19%
5 years 6.93 1.47
1 Year 3.20 -1.24
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.04% 0.94%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Flexible Barclays U.S. Treasury
Opportunties Fund TIPS 1-10 Year Index
5/10 $5,000,000 $5,000,000
10/10 $5,428,135 $5,240,513
10/11 $5,801,896 $5,608,553
10/12 $6,284,926 $5,898,408
10/13 $7,231,801 $5,675,535
10/14 $7,354,846 $5,709,383
10/15 $7,590,039 $5,638,349
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2016, for Class Y shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus 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 Flexible Opportunities 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 Flexible Opportunities 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 $ 926.24 $ 922.83 $ 922.01 $ 927.89
Value (after expenses)
on 10/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 5.97 $ 9.89 $ 9.88 $ 4.52
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio plus the
expense ratio of the underlying funds. These combined totals were 1.23%,
2.04%, 2.04% and 0.93% for Class A, Class C, Class R and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period, and then multiplied by 184/365 (to reflect the
one-half year period).
Pioneer Flexible Opportunities 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 Flexible Opportunities 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 $1,019.00 $1,014.92 $1,014.92 $1,020.52
Value (after expenses)
On 10/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 6.26 $ 10.36 $ 10.36 $ 4.74
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio plus the
expense ratio of the underlying funds. These combined totals were 1.23%,
2.04%, 2.04% and 0.93% for Class A, Class C, Class R and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period, and then multiplied by 184/365 (to reflect the
one-half year period).
16 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
Schedule of Investments | 10/31/15
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
PREFERRED STOCK -- 0.0%+
REAL ESTATE -- 0.0%+
Retail REIT -- 0.0%+
204 Wheeler Real Estate Investment Trust, Inc., 9.0% $ 199,920
--------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $195,245) $ 199,920
--------------------------------------------------------------------------------
COMMON STOCKS -- 66.9%
MATERIALS -- 0.7%
Commodity Chemicals -- 0.2%
17,941 LyondellBasell Industries NV $ 1,666,898
--------------------------------------------------------------------------------
Construction Materials -- 0.2%
97,096 Summit Materials, Inc. $ 2,044,842
--------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.3%
91,684 MMC Norilsk Nickel PJSC $ 1,361,507
50,935 MMC Norilsk Nickel PJSC (A.D.R.) 758,932
-------------
$ 2,120,439
-------------
Total Materials $ 5,832,179
--------------------------------------------------------------------------------
CAPITAL GOODS -- 12.1%
Aerospace & Defense -- 6.8%
12,160 Airbus Group SE $ 848,004
372,217 CAE, Inc. 4,199,765
678 Dassault Aviation SA 785,791
80,405 Honeywell International, Inc. 8,304,228
24,802 Huntington Ingalls Industries, Inc. 2,974,752
70,100 Magellan Aerospace Corp. 930,273
42,155 Northrop Grumman Corp. 7,914,601
77,282 Raytheon Co. 9,072,907
70,559 Safran SA 5,367,135
82,186 Thales SA 5,963,897
83,081 United Technologies Corp. 8,176,001
-------------
$ 54,537,354
--------------------------------------------------------------------------------
Construction & Engineering -- 2.0%
3,226,000 China Communications Construction Co., Ltd. $ 4,462,056
2,815,500 China Railway Construction Corp., Ltd. 4,235,747
3,642,000 China Railway Group, Ltd. 3,467,945
1,310,000 China State Construction International
Holdings, Ltd. 1,994,478
182,000 Shimizu Corp. 1,602,933
-------------
$ 15,763,159
--------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.1%
668,000 Boer Power Holdings, Ltd. $ 1,092,878
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 17
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Heavy Electrical Equipment -- 1.0%
5,712,000 China High Speed Transmission Equipment
Group Co., Ltd. $ 5,144,220
1,599,800 Xinjiang Goldwind Science & Technology Co., Ltd. 3,017,790
-------------
$ 8,162,010
--------------------------------------------------------------------------------
Industrial Conglomerates -- 0.5%
17,864 Danaher Corp. $ 1,666,890
1,038,880 JG Summit Holdings, Inc. 1,585,873
41,740 SM Investments Corp. 780,846
-------------
$ 4,033,609
--------------------------------------------------------------------------------
Construction & Farm Machinery
& Heavy Trucks -- 0.1%
71,117 Meritor, Inc.* $ 773,042
--------------------------------------------------------------------------------
Agricultural & Farm Machinery -- 0.7%
75,763 The Toro Co. $ 5,702,681
--------------------------------------------------------------------------------
Industrial Machinery -- 0.9%
396,000 Kawasaki Heavy Industries, Ltd. $ 1,604,408
56,816 Stanley Black & Decker, Inc. 6,021,360
-------------
$ 7,625,768
-------------
Total Capital Goods $ 97,690,501
--------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 2.0%
Environmental & Facilities Services -- 1.3%
2,531,000 China Everbright International, Ltd. $ 4,095,110
2,578,400 Dongjiang Environmental Co., Ltd. (c) 3,981,510
3,456,000 Tianjin Capital Environmental Protection
Group Co., Ltd. 2,613,047
-------------
$ 10,689,667
--------------------------------------------------------------------------------
Security & Alarm Services -- 0.5%
61,800 Secom Co., Ltd. $ 4,156,184
--------------------------------------------------------------------------------
Research & Consulting Services -- 0.2%
15,681 Teleperformance $ 1,233,694
-------------
Total Commercial Services & Supplies $ 16,079,545
--------------------------------------------------------------------------------
TRANSPORTATION -- 3.1%
Airlines -- 0.8%
532,000 ANA Holdings, Inc. $ 1,596,948
1,904,000 China Eastern Airlines Corp, Ltd.* 1,230,780
1,552,000 China Southern Airlines Co., Ltd. 1,319,633
69,700 Japan Airlines Co., Ltd. 2,644,898
-------------
$ 6,792,259
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Railroads -- 1.6%
23,100 Central Japan Railway Co. $ 4,248,892
53,200 East Japan Railway Co. 5,099,830
308,000 Keisei Electric Railway Co., Ltd. 3,825,279
-------------
$ 13,174,001
--------------------------------------------------------------------------------
Highways & Railtracks -- 0.7%
3,874,000 Shenzhen Expressway Co., Ltd. $ 2,994,073
1,232,000 Yuexiu Transport Infrastructure, Ltd. 842,486
1,774,000 Zhejiang Expressway Co., Ltd. 2,192,780
-------------
$ 6,029,339
-------------
Total Transportation $ 25,995,599
--------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 1.4%
Auto Parts & Equipment -- 0.9%
27,371 BorgWarner, Inc. $ 1,172,026
74,360 Brembo S.p.A. 3,281,139
9,420 Delphi Automotive Plc 783,650
53,653 Faurecia 2,127,686
-------------
$ 7,364,501
--------------------------------------------------------------------------------
Automobile Manufacturers -- 0.5%
66,800 Fuji Heavy Industries, Ltd. $ 2,616,765
1,277,000 Great Wall Motor Co., Ltd. 1,561,979
-------------
$ 4,178,744
-------------
Total Automobiles & Components $ 11,543,245
--------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.7%
Home Furnishings -- 0.6%
2,496 Forbo Holding AG $ 2,842,537
1,742,000 Man Wah Holdings, Ltd. 1,995,892
-------------
$ 4,838,429
--------------------------------------------------------------------------------
Apparel, Accessories & Luxury Goods -- 0.1%
53,950 Moncler S.p.A.* $ 869,918
-------------
Total Consumer Durables & Apparel $ 5,708,347
--------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.1%
Hotels, Resorts & Cruise Lines -- 0.3%
453,648 Aitken Spence Hotel Holdings Plc $ 217,332
10,637 Marriott International, Inc. 816,709
121,901 Melia Hotels International SA 1,765,682
-------------
$ 2,799,723
--------------------------------------------------------------------------------
Education Services -- 0.8%
8,175,168 China Maple Leaf Educational Systems, Ltd. $ 2,710,851
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 19
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Education Services -- (continued)
100,618 New Oriental Education & Technology
Group, Inc. (A.D.R.) $ 2,768,001
20,838 TAL Education Group (A.D.R.)* 801,221
-------------
$ 6,280,073
-------------
Total Consumer Services $ 9,079,796
--------------------------------------------------------------------------------
MEDIA -- 0.5%
Broadcasting -- 0.2%
205,405 Sun TV Network, Ltd. $ 1,243,959
--------------------------------------------------------------------------------
Cable & Satellite -- 0.3%
38,385 Comcast Corp. $ 2,403,669
-------------
Total Media $ 3,647,628
--------------------------------------------------------------------------------
RETAILING -- 2.6%
Internet Retail -- 1.7%
47,718 Ctrip.com International, Ltd. (A.D.R.)* $ 4,436,342
73,663 JD.com, Inc. (A.D.R.)* 2,034,572
361,863 Vipshop Holdings, Ltd. (A.D.R.)* 7,425,429
-------------
$ 13,896,343
--------------------------------------------------------------------------------
General Merchandise Stores -- 0.5%
51,938 Target Corp. $ 4,008,575
--------------------------------------------------------------------------------
Home Improvement Retail -- 0.4%
23,671 The Home Depot, Inc. $ 2,926,682
-------------
Total Retailing $ 20,831,600
--------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 1.5%
Drug Retail -- 1.5%
61,453 CVS Health Corp. $ 6,070,327
59,600 Sundrug Co., Ltd. 3,170,239
34,000 Tsuruha Holdings, Inc. 2,709,971
-------------
$ 11,950,537
-------------
Total Food & Staples Retailing $ 11,950,537
--------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 2.6%
Distillers & Vintners -- 0.4%
24,847 Pernod Ricard SA $ 2,931,689
--------------------------------------------------------------------------------
Packaged Foods & Meats -- 1.3%
113,490 Danone SA $ 7,920,718
544,670 Universal Robina Corp. 2,335,980
-------------
$ 10,256,698
--------------------------------------------------------------------------------
Tobacco -- 0.9%
60,264 Altria Group, Inc. $ 3,644,164
13,900 Philip Morris International, Inc. 1,228,760
The accompanying notes are an integral part of these financial statements.
20 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Tobacco -- (continued)
54,924 Reynolds American, Inc. $ 2,653,928
-------------
$ 7,526,852
-------------
Total Food, Beverage & Tobacco $ 20,715,239
--------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 8.2%
Health Care Equipment -- 4.7%
188,098 Abbott Laboratories $ 8,426,790
260,197 Boston Scientific Corp.* 4,756,401
22,421 CR Bard, Inc. 4,178,153
35,440 Edwards Lifesciences Corp.* 5,569,396
82,323 Hill-Rom Holdings, Inc. 4,337,599
103,650 Hologic, Inc.* 4,027,839
24,066 NuVasive, Inc.* 1,134,953
5,669 Straumann Holding AG 1,606,843
19,889 Stryker Corp. 1,901,786
67,714 Zeltiq Aesthetics, Inc.* 2,284,670
-------------
$ 38,224,430
--------------------------------------------------------------------------------
Health Care Distributors -- 0.5%
49,302 Cardinal Health, Inc. $ 4,052,624
--------------------------------------------------------------------------------
Health Care Services -- 0.5%
34,679 Adeptus Health, Inc. $ 2,250,320
13,210 Laboratory Corp of America Holdings* 1,621,395
-------------
$ 3,871,715
--------------------------------------------------------------------------------
Health Care Facilities -- 1.1%
57,530 Orpea $ 4,622,389
74,735 VCA, Inc.* 4,093,236
-------------
$ 8,715,625
--------------------------------------------------------------------------------
Managed Health Care -- 1.2%
37,397 Aetna, Inc. $ 4,292,428
44,540 UnitedHealth Group, Inc. 5,245,921
-------------
$ 9,538,349
--------------------------------------------------------------------------------
Health Care Technology -- 0.2%
25,412 Cerner Corp.* $ 1,684,561
-------------
Total Health Care Equipment & Services $ 66,087,304
--------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY
& LIFE SCIENCES -- 4.5%
Biotechnology -- 1.2%
357,500 3SBio, Inc. $ 405,453
32,139 Actelion, Ltd. 4,470,212
44,016 Gilead Sciences, Inc.* 4,759,450
-------------
$ 9,635,115
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 21
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Pharmaceuticals -- 2.2%
35,794 Bristol-Myers Squibb Co. $ 2,360,614
2,174,000 CSPC Pharmaceutical Group, Ltd. 2,030,832
19,002 Dr Reddy's Laboratories, Ltd. 1,245,231
157,924 Pfizer, Inc. 5,340,990
78,400 Shionogi & Co., Ltd. 3,242,010
15,405 Yuhan Corp. 3,819,048
-------------
$ 18,038,725
--------------------------------------------------------------------------------
Life Sciences Tools & Services --1.1%
108,672 INC Research Holdings, Inc. $ 4,532,709
11,949 Lonza Group AG 1,756,334
19,073 Thermo Fisher Scientific, Inc. 2,494,367
-------------
$ 8,783,410
-------------
Total Pharmaceuticals, Biotechnology
& Life Sciences $ 36,457,250
--------------------------------------------------------------------------------
BANKS -- 3.2%
Diversified Banks -- 2.0%
703,250 BDO Unibank, Inc. $ 1,529,099
1,116,324 Hatton National Bank Plc 1,724,663
37,621 JPMorgan Chase & Co. 2,417,149
1,565,700 Krung Thai Bank PCL 751,853
2,454,721 Liberbank SA 1,523,809
1,786,400 Mizuho Financial Group, Inc. 3,704,676
622,417 National Development Bank Plc 988,069
68,451 Wells Fargo & Co. 3,705,937
-------------
$ 16,345,255
--------------------------------------------------------------------------------
Regional Banks -- 1.2%
93,596 First Republic Bank $ 6,112,755
375,000 The Chiba Bank, Ltd. 2,759,021
8,875 The PNC Financial Services Group, Inc. 801,058
-------------
$ 9,672,834
-------------
Total Banks $ 26,018,089
--------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.3%
Multi-Sector Holdings -- 0.8%
191,820 Ayala Corp. $ 3,198,845
85,735 GT Capital Holdings, Inc. 2,408,565
-------------
$ 5,607,410
--------------------------------------------------------------------------------
Consumer Finance -- 0.4%
95,300 Hitachi Capital Corp. $ 2,759,630
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Asset Management & Custody Banks -- 1.3%
17,256 Julius Baer Group, Ltd.* $ 858,040
136,216 KKR & Co., LP 2,336,104
10,919 Leonteq AG 2,105,653
43,183 Noah Holdings, Ltd. (A.D.R.) 1,209,988
115,195 The Blackstone Group LP 3,808,347
-------------
$ 10,318,132
--------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.8%
124,149 Morgan Stanley Co. $ 4,093,193
12,829 The Goldman Sachs Group, Inc. 2,405,438
-------------
$ 6,498,631
--------------------------------------------------------------------------------
Diversified Capital Markets -- 0.2%
68,199 Rothschild & Co. $ 1,959,901
-------------
Total Diversified Financials $ 27,143,704
--------------------------------------------------------------------------------
INSURANCE -- 5.8%
Life & Health Insurance -- 1.5%
430,640 Poste Italiane S.p.A. $ 3,080,895
22,171 Swiss Life Holding AG 5,298,955
189,300 The Dai-ichi Life Insurance Co., Ltd. 3,317,200
-------------
$ 11,697,050
--------------------------------------------------------------------------------
Multi-line Insurance -- 1.9%
31,195 Allianz SE* $ 5,471,246
132,136 American International Group, Inc. 8,332,496
33,110 The Hartford Financial Services Group, Inc. 1,531,669
-------------
$ 15,335,411
--------------------------------------------------------------------------------
Property & Casualty Insurance -- 2.4%
75,241 ACE, Ltd. $ 8,542,863
70,800 Sompo Japan Nipponkoa Holdings, Inc. 2,245,515
59,385 The Allstate Corp. 3,674,744
45,046 The Travelers Companies, Inc. 5,085,243
-------------
$ 19,548,365
-------------
Total Insurance $ 46,580,826
--------------------------------------------------------------------------------
REAL ESTATE -- 6.1%
Diversified REIT -- 0.7%
296,988 Hibernia Real Estate Investment Trust Plc $ 442,922
4,096,200 Mapletree Greater China Commercial Trust 2,911,020
182,998 Merlin Properties Socimi SA 2,348,519
-------------
$ 5,702,461
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 23
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Mortgage REIT -- 0.3%
124,311 Starwood Property Trust, Inc. $ 2,497,408
--------------------------------------------------------------------------------
Hotel & Resort REIT -- 0.7%
316 Hoshino Resorts Real Estate Investment
Trust, Inc. $ 3,395,766
3,576 Japan Hotel Real Estate Investment Trust
Investment Corp. 2,491,749
-------------
$ 5,887,515
--------------------------------------------------------------------------------
Healthcare REIT -- 0.2%
1,383,000 First Real Estate Investment Trust $ 1,224,855
--------------------------------------------------------------------------------
Residential REIT -- 0.1%
30,288 Starwood Waypoint Residential Trust $ 745,085
--------------------------------------------------------------------------------
Retail REIT -- 0.3%
9,137 Simon Property Group, Inc. $ 1,840,740
74,022 Wheeler Real Estate Investment Trust, Inc. 144,343
-------------
$ 1,985,083
--------------------------------------------------------------------------------
Diversified Real Estate Activities -- 0.6%
97,600 Daiwa House Industry Co., Ltd. $ 2,584,445
81,408 DIC Asset AG 802,115
49,000 Sumitomo Realty & Development Co., Ltd. 1,625,552
-------------
$ 5,012,112
--------------------------------------------------------------------------------
Real Estate Operating Companies -- 1.1%
1,751,200 Ascendas India Trust $ 1,094,422
33,068 Deutsche EuroShop AG 1,596,705
100,941 Deutsche Wohnen AG 2,850,289
55,608 Hispania Activos Inmobiliarios SA 838,508
5,759,000 SM Prime Holdings, Inc. 2,659,534
-------------
$ 9,039,458
--------------------------------------------------------------------------------
Real Estate Development -- 1.7%
876,000 China Resources Land, Ltd. $ 2,288,785
3,304,400 Guangzhou R&F Properties Co., Ltd. 3,291,439
4,515,500 KWG Property Holding, Ltd. 3,274,297
1,624,000 Longfor Properties Co., Ltd. 2,183,382
3,226,000 Shui On Land, Ltd. 890,746
122,361 TAG Immobilien AG 1,585,817
-------------
$ 13,514,466
--------------------------------------------------------------------------------
Real Estate Services -- 0.4%
21,030 Jones Lang LaSalle, Inc. $ 3,505,911
-------------
Total Real Estate $ 49,114,354
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 2.4%
Internet Software & Services -- 1.7%
50,163 Alibaba Group Holding, Ltd. (A.D.R.) $ 4,205,164
58,300 COOKPAD, Inc. 1,120,643
546,871 Just Eat Plc 3,594,332
253,700 Tencent Holdings, Ltd. 4,798,774
-------------
$ 13,718,913
--------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.7%
21,549 MasterCard, Inc. $ 2,133,136
39,322 Visa, Inc. 3,050,601
-------------
$ 5,183,737
-------------
Total Software & Services $ 18,902,650
--------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 2.6%
Communications Equipment -- 1.0%
104,048 Harris Corp. $ 8,233,318
--------------------------------------------------------------------------------
Electronic Equipment Manufacturers -- 1.2%
937,000 China Railway Signal & Communication
Corp, Ltd. $ 743,516
226,000 Shimadzu Corp. 3,548,366
4,874,000 Wasion Group Holdings, Ltd. 5,433,443
-------------
$ 9,725,325
--------------------------------------------------------------------------------
Electronic Components -- 0.4%
37,400 Alps Electric Co., Ltd. $ 1,174,415
124,700 Taiyo Yuden Co., Ltd. 1,771,909
-------------
$ 2,946,324
-------------
Total Technology Hardware & Equipment $ 20,904,967
--------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.7%
Semiconductor Equipment -- 0.7%
13,402,000 Xinyi Solar Holdings, Ltd. $ 5,360,523
-------------
Total Semiconductors & Semiconductor
Equipment $ 5,360,523
--------------------------------------------------------------------------------
UTILITIES -- 1.8%
Electric Utilities -- 0.6%
119,389 Endesa SA $ 2,660,961
22,782 Red Electrica Corp., SA 2,011,016
-------------
$ 4,671,977
--------------------------------------------------------------------------------
Gas Utilities -- 0.1%
26,273 Enagas SA $ 796,818
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 25
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------
Water Utilities -- 1.0%
5,176,000 Beijing Enterprises Water Group, Ltd. $ 4,133,908
11,066,000 CT Environmental Group, Ltd.* 3,940,720
-------------
$ 8,074,628
--------------------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 0.1%
2,310,000 Beijing Jingneng Clean Energy Co., Ltd.* $ 804,733
-------------
Total Utilities $ 14,348,156
--------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $518,381,258) $ 539,992,039
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited)
--------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 1.0%
BANKS -- 1.0%
Thrifts & Mortgage Finance -- 1.0%
3,000,000 COMM 2006-C8 Mortgage Trust, 5.377%,
12/10/46 $ 2,979,620
2,384,000 5.91 JP Morgan Chase Commercial Mortgage
Securities Trust 2006-LDP7 REMICS, Floating
Rate Note, 4/15/45 2,276,800
3,000,000 5.57 Morgan Stanley Capital I Trust 2007-TOP25,
Floating Rate Note, 11/12/49 3,021,656
-------------
$ 8,278,076
-------------
Total Banks $ 8,278,076
--------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $8,247,759) $ 8,278,076
--------------------------------------------------------------------------------------------
CORPORATE BONDS -- 15.2%
ENERGY -- 3.4%
Oil & Gas Drilling -- 0.2%
1,500,000 Transocean, Inc., 5.55%, 12/15/16 $ 1,492,035
--------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 1.9%
4,677,000 Lukoil International Finance BV, 4.563%,
4/24/23 (144A) $ 4,337,356
5,682,000 Lukoil International Finance BV, 6.125%,
11/9/20 (144A) 5,866,665
4,500,000 Lukoil International Finance BV, 7.25%,
11/5/19 (144A) 4,860,900
-------------
$ 15,064,921
--------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.3%
6,687,000 Gazprom OAO Via Gaz Capital SA, 3.85%,
2/6/20 (144A) $ 6,319,215
4,000,000 Gazprom OAO Via Gaz Capital SA, 6.51%,
3/7/22 (144A) 4,160,800
-------------
$ 10,480,015
-------------
Total Energy $ 27,036,971
--------------------------------------------------------------------------------------------
MATERIALS -- 7.2%
Construction Materials -- 0.4%
3,000,000 Vulcan Materials Co., 7.5%, 6/15/21 $ 3,555,000
--------------------------------------------------------------------------------------------
Metal & Glass Containers -- 0.2%
1,586,000 Ball Corp., 4.0%, 11/15/23 $ 1,546,350
--------------------------------------------------------------------------------------------
Paper Packaging -- 0.4%
3,000,000 Sealed Air Corp., 5.125%, 12/1/24 (144A) $ 3,082,500
--------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.1%
21,086,000 Gold Fields Orogen Holdings BVI, Ltd., 4.875%,
10/7/20 (144A) $ 17,079,660
--------------------------------------------------------------------------------------------
Gold -- 4.1%
7,500,000 AngloGold Ashanti Holdings Plc,
5.125%, 8/1/22 $ 6,839,062
5,500,000 AngloGold Ashanti Holdings Plc,
8.5%, 7/30/20 5,928,890
3,000,000 AngloGold Ashanti Holdings Plc, 8.5%, 7/30/20 3,233,940
7,200,000 Kinross Gold Corp., 5.125%, 9/1/21 6,476,083
7,300,000 Kinross Gold Corp., 5.125%, 9/1/21 6,566,029
4,350,000 Kinross Gold Corp., 5.95%, 3/15/24 3,572,124
-------------
$ 32,616,128
-------------
Total Materials $ 57,879,638
--------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.4%
Building Products -- 0.4%
3,000,000 USG Corp., 9.75%, 1/15/18 $ 3,367,500
-------------
Total Capital Goods $ 3,367,500
--------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.2%
Apparel, Accessories & Luxury Goods -- 0.2%
1,943,000 Hanesbrands, Inc., 6.375%, 12/15/20 $ 2,013,434
-------------
Total Consumer Durables & Apparel $ 2,013,434
--------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.7%
Casinos & Gaming -- 0.7%
5,523,000 MGM Resorts International, 6.625%, 12/15/21 $ 5,895,802
-------------
Total Consumer Services $ 5,895,802
--------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 27
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.4%
Packaged Foods & Meats -- 0.4%
1,500,000 Smithfield Foods, Inc., 5.875%, 8/1/21 (144A) $ 1,575,000
1,500,000 Smithfield Foods, Inc., 6.625%, 8/15/22 1,605,000
-------------
$ 3,180,000
-------------
Total Food, Beverage & Tobacco $ 3,180,000
--------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.5%
Consumer Finance -- 0.4%
3,000,000 First Cash Financial Services, Inc.,
6.75%, 4/1/21 $ 2,992,500
--------------------------------------------------------------------------------------------
Asset Management &
Custody Banks -- 1.1%
3,091,000 Apollo Management Holdings LP, 4.0%,
5/30/24 (144A) $ 3,107,212
2,000,000 Fifth Street Finance Corp., 4.875%, 3/1/19 2,027,084
3,800,000 Prospect Capital Corp., 5.875%, 3/15/23 3,799,020
-------------
$ 8,933,316
-------------
Total Diversified Financials $ 11,925,816
--------------------------------------------------------------------------------------------
INSURANCE -- 0.1%
Reinsurance -- 0.1%
1,000,000 7.27 Northshore Re, Ltd., Floating Rate Note,
7/5/16 (Cat Bond) (144A) $ 1,024,300
-------------
Total Insurance $ 1,024,300
--------------------------------------------------------------------------------------------
REAL ESTATE -- 0.9%
Diversified Real Estate Activities -- 0.4%
3,600,000 Alam Synergy Pte, Ltd., 9.0%, 1/29/19 (144A) $ 3,456,000
--------------------------------------------------------------------------------------------
Real Estate Development -- 0.5%
2,000,000 KWG Property Holding, Ltd., 8.25%, 8/5/19 $ 2,072,500
1,400,000 Sunac China Holdings, Ltd., 9.375%, 4/5/18 1,484,000
-------------
$ 3,556,500
-------------
Total Real Estate $ 7,012,500
--------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.2%
Wireless Telecommunication Services -- 0.2%
1,500,000 Sprint Communications, Inc., 6.0%, 12/1/16 $ 1,516,875
-------------
Total Telecommunication Services $ 1,516,875
--------------------------------------------------------------------------------------------
UTILITIES -- 0.2%
Independent Power Producers &
Energy Traders -- 0.2%
700,000 Star Energy Geothermal Wayang Windu, Ltd.,
6.125%, 3/27/20 (144A) $ 680,750
The accompanying notes are an integral part of these financial statements.
28 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- (continued)
1,000,000 Star Energy Geothermal Wayang Windu, Ltd.,
6.125%, 3/27/20 (144A) $ 972,500
-------------
$ 1,653,250
-------------
Total Utilities $ 1,653,250
--------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $125,505,125) $ 122,506,086
--------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 6.8%
14,051,000 Indonesia Government International Bond,
5.875%, 1/15/24 (144A) $ 15,513,892
2,242,000 Indonesia Government International Bond,
6.75%, 1/15/44 (144A) 2,537,244
MXN 150,895,500 Mexican Bonos, 10.0%, 12/5/24 11,703,922
3,722,000 Mexico Government International Bond,
4.0%, 10/2/23 3,841,104
21,400,000 Russian Foreign Bond -- Eurobond, 3.5%,
1/16/19 (144A) 21,587,248
-------------
$ 55,183,410
--------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $54,919,648) $ 55,183,410
--------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTEREST -- 0.0%+**
TECHNOLOGY HARDWARE &
EQUIPMENT -- 0.0%+
Communications Equipment -- 0.0%+
125,790 3.25 Commscope, Inc., Tranche 4 Term Loan,
1/14/18 $ 125,298
--------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTEREST
(Cost $125,790) $ 125,298
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------------------
CLOSED-END FUNDS -- 0.2%
62,300 Blackrock Munivest Fund, Inc. $ 624,246
44,100 Blackrock Muniyield Fund, Inc. 641,655
-------------
$ 1,265,901
--------------------------------------------------------------------------------------------
TOTAL CLOSED-END FUNDS
(Cost $1,140,036) $ 1,265,901
--------------------------------------------------------------------------------------------
EXCHANGE TRADED FUNDS -- 4.0%
9,600 CSOP China 5-Year Treasury Bond ETF $ 164,616
9,600 E Fund Citi Chinese Government Bond 5-10
Years Index ETF 169,942
41,792 Guggenheim S&P Global Water Index ETF 1,183,549
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 29
Schedule of Investments | 10/31/15 (continued)
--------------------------------------------------------------------------------------------
Floating
Rate (b)
Shares (unaudited) Value
--------------------------------------------------------------------------------------------
EXCHANGE TRADED FUNDS -- (continued)
209,556 Market Vectors Vietnam ETF $ 3,554,070
34,505 PowerShares Buyback Achievers Portfolio 1,628,981
62,296 PowerShares International BuyBack
Achievers Portfolio 1,679,500
179,425 ProShares S&P 500 Dividend Aristocrats ETF 8,955,102
186,015 SPDR S&P Euro Dividend Aristocrats UCITS ETF 4,279,012
102,786 SPDR S&P Global Dividend Aristocrats ETF 3,146,184
219,314 SPDR S&P UK Dividend Aristocrats UCITS ETF 4,133,172
86,547 SPDR S&P US Dividend Aristocrats UCITS ETF 3,473,997
-------------
$ 32,368,125
--------------------------------------------------------------------------------------------
TOTAL EXCHANGE TRADED FUNDS
(Cost $33,724,710) $ 32,368,125
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
Principal Strike Expiration
Amount ($) Description Counterparty Price Date Value
--------------------------------------------------------------------------------------------------
PUT OPTIONS PURCHASED -- 0.3%
9,000 100 Shares American
Airlines Group, Inc. Citibank NA 43.00 12/18/15 $ 963,000
1,100 100 Shares U.S. Bond
Future Option Citibank NA 155.00 11/20/15 1,031,250
--------------------------------------------------------------------------------------------------
TOTAL PUT OPTIONS PURCHASED $ 1,994,250
-------------
(Premiums paid $2,049,140) $ 1,994,250
--------------------------------------------------------------------------------------------------
CALL OPTIONS PURCHASED -- 1.5%
HKD 950 Hong Kong Stock
Exchange Barclays Plc 10,600.00 12/30/15 $ 2,200,209
HKD 600 Hong Kong Stock
Exchange Barclays Plc 9,800.00 12/30/15 3,348,214
JPY 300 Nikkei 225 Barclays Plc 18,625.00 11/13/15 1,541,075
HKD 1,000 Hong Kong
Stock Exchange Barclays Plc 10,800.00 12/30/15 1,606,369
EUR 2,000 Euro Stoxx 50 Barclays Plc 3,500.00 12/18/15 1,152,380
2,000 100 Shares S&P500
Emini Future Citibank NA 21,120.00 12/18/15 1,820,000
--------------------------------------------------------------------------------------------------
TOTAL CALL OPTIONS PURCHASED $ 11,668,247
-------------
(Premiums paid $10,952,307) $ 11,668,247
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 95.9%
(Cost $755,241,018) (a) $773,581,352
--------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 4.1% $ 33,030,664
--------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $806,612,016
==================================================================================================
* Non-income producing security.
+ Amount rounds to less than 0.1%.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
(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 $96,161,242 or 11.9% of total net assets.
(A.D.R.) American Depositary Receipts.
REMICS Real Estate Mortgage Investment Conduits.
REIT Real Estate Investment Trust.
(Cat Bond) Catastrophe or event linked bond. At October 31, 2015 the value of
these securities amounted to $1,024,300 or 0.1% of total net assets.
See Notes to Financial Statements -- 1I.
** 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 on investments
based on cost for federal income tax purposes of $762,048,493 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 37,088,501
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (25,555,642)
------------
Net unrealized appreciation $ 11,532,859
============
(b) Debt obligation with a variable interest rate. Rate shown is rate at
end of period.
(c) Security is valued using fair valued methods (other than prices
supplied by independent pricing services). See Notes to Financial
Statements -- Note 1A.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EUR Euro
HKD Hong Kong Dollar
JPY Japanese Yen
MXN Mexican Peso
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2015 aggregated $2,252,868,756 and $2,324,215,876,
respectively.
TOTAL RETURN SWAP AGREEMENTS
----------------------------------------------------------------------------------------------------
Net
Unrealized
Notional Pay/ Obligation Expiration Appreciation
Principal Counterparty Receive Entity/Index Coupon Date (Depreciation)
----------------------------------------------------------------------------------------------------
EUR 1,253 Societe Pay Pioneer Custom LIBOR USD 10/17/16 $329,953
Generale SA Basket 3 Month
JPY 184,624 Societe Pay JPY Custom JPY 3 Month 6/14/16 26,971
Generale SA Basket + 70 bps
EUR 1,172 Societe Pay EUR Custom EURIBOR 6/13/16 139,067
Generale SA Basket 3 Month
+25 bps
155,416 Citibank NA Pay HACK LIBOR USD 6/10/16 (13,337)
Purefunds 3 Month
ISE Cyber + 40bps
----------------------------------------------------------------------------------------------------
$482,654
====================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 31
Schedule of Investments | 10/31/15 (continued)
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EUR Euro
JPY Japanese Yen
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 investments:
-----------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------------------
Preferred Stock $ -- $ 199,920 $ -- $ 199,920
Common Stocks
Commercial Services & Supplies
Environmental & Facilities Services -- -- 3,981,510 3,981,510
All other common stocks 536,010,529 -- -- 536,010,529
Collateralized Mortgage Obligations -- 8,278,076 -- 8,278,076
Corporate Bonds -- 122,506,086 -- 122,506,086
Foreign Government Bonds -- 55,183,410 -- 55,183,410
Senior Floating Rate Loan Interest -- 125,298 -- 125,298
Closed-End Funds 1,265,901 -- -- 1,265,901
Exchange Traded Funds 32,368,125 -- -- 32,368,125
Put Options Purchased 1,994,250 -- -- 1,994,250
Call Options Purchased 11,668,247 -- -- 11,668,247
-----------------------------------------------------------------------------------------------------
Total $583,307,052 $ 186,292,790 $ 3,981,510 $773,581,352
=====================================================================================================
Other Financial Instruments
Net unrealized depreciation on
futures contracts $ (1,170,655) $ -- $ -- $ (1,170,655)
Net unrealized appreciation on
total return swap contracts -- 482,654 -- 482,654
-----------------------------------------------------------------------------------------------------
Total Other Financial Instruments $ (1,170,655) $ 482,654 $ -- $ (688,001)
=====================================================================================================
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
--------------------------------------------------------------------------------
Common
Stocks
--------------------------------------------------------------------------------
Balance as of 10/31/14 $ --
Realized gain (loss)1 (87,545)
Change in unrealized appreciation (depreciation)2 16,438
Purchases 5,987,955
Sales (1,935,338)
Transfers in to Level 3* --
Transfers out of Level 3* --
Transfers in and out of Level 3 activity --
--------------------------------------------------------------------------------
Balance as of 10/31/15 $ 3,981,510
================================================================================
(1) Realized gain (loss) on these securities is included in the net realized
gain (loss) from investments in the Statement of Operations.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
(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 $16,438
-------
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:
Foreign currencies, at value $ -- $ 7,685,128 $ -- $ 7,685,128
Futures collateral -- 9,228,493 -- 9,228,493
Swap collateral -- 2,582 -- 2,582
Cash at broker -- 10,413,642 -- 10,413,642
Variation margin for futures contracts 371,443 -- -- 371,443
-----------------------------------------------------------------------------------------
Total: $371,443 $ 27,329,845 $ -- $ 27,701,288
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 33
Statement of Assets and Liabilities | 10/31/15 (Consolidated)
ASSETS:
Investment in securities, at value (cost $755,241,018) $ 773,581,352
Cash 18,769,868
Foreign currencies, at value (cost $6,454,530) 7,685,128
Futures collateral 9,228,493
Swap collateral 2,582
Cash at broker 10,413,642
Receivables --
Investment securities sold 27,610,232
Fund shares sold 2,504,780
Dividends 751,144
Interest 3,159,661
Due from Pioneer Investment Management, Inc. 37,200
Variation margin on futures contracts 371,443
Net unrealized appreciation on swap contracts 482,654
Other assets 71,870
---------------------------------------------------------------------------------------
Total assets $ 854,670,049
=======================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 45,160,006
Fund shares repurchased 1,292,777
Trustee fees 1,763
Distributions 654
Futures payable 4,965
Net unrealized depreciation on futures contracts 1,170,655
Due to affiliates 245,450
Accrued expenses 181,763
---------------------------------------------------------------------------------------
Total liabilities $ 48,058,033
=======================================================================================
NET ASSETS:
Paid-in capital $ 756,143,933
Undistributed net investment income 1,213,219
Accumulated net realized gain on investments, futures contracts, swap
contracts, written options and foreign currency transactions 32,133,846
Net unrealized appreciation on investments 18,340,334
Net unrealized depreciation on futures contracts (1,170,655)
Net unrealized appreciation on swap contracts 482,654
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (531,315)
---------------------------------------------------------------------------------------
Total net assets $ 806,612,016
=======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $209,000,649/16,479,747 shares) $ 12.68
Class C (based on $218,596,598/17,408,667 shares) $ 12.56
Class R (based on $120,105/9,467 shares) $ 12.69
Class Y (based on $378,894,664/29,783,052 shares) $ 12.72
MAXIMUM OFFERING PRICE:
Class A ($12.68 / 95.5%) $ 13.28
=======================================================================================
The accompanying notes are an integral part of these financial statements.
34 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
Statement of Operations (Consolidated)
For the Year Ended 10/31/15
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $547,822) $ 11,818,025
Interest 8,368,034
--------------------------------------------------------------------------------------------------
Total investment income $ 20,186,059
--------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 5,574,383
Transfer agent fees
Class A 61,105
Class C 34,657
Class R 159
Class Y 7,647
Class Z* 420
Distribution fees
Class A 524,881
Class C 2,197,889
Class R 280
Shareholder communications expense 825,633
Administrative expense 250,564
Custodian fees 438,349
Registration fees 147,508
Professional fees 128,808
Printing expense 59,293
Fees and expenses of nonaffiliated Trustees 32,215
Pricing expense 14,931
Miscellaneous 520,930
--------------------------------------------------------------------------------------------------
Total expenses $ 10,819,652
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (562,828)
--------------------------------------------------------------------------------------------------
Net expenses $ 10,256,824
--------------------------------------------------------------------------------------------------
Net investment income $ 9,929,235
--------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS, WRITTEN OPTIONS, SWAP CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments (net of foreign capital gains taxes of $538,418) $ 16,927,364
Futures contracts (279,065)
Written options 21,144,547
Swap contracts (4,193,541)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (639,962) $ 32,959,343
--------------------------------------------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) on:
Investments $(26,462,791)
Futures contracts (2,743,022)
Written options (1,621,508)
Swap contracts 482,654
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (181,839) $(30,526,506)
--------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments, futures
contracts, written options, swap contracts and foreign
currency transactions $ 2,432,837
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 12,362,072
==================================================================================================
* Class Z shares converted to Class Y shares on August 7, 2015.
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 35
Statements of Changes in Net Assets (Consolidated)
-------------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/15 10/31/14
-------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 9,929,235 $ 16,604,753
Net realized gain on investments, futures
contracts, written options, swap contracts and
foreign currency transactions 32,959,343 21,318,392
Change in net unrealized appreciation (depreciation)
on investments, futures contracts, written options, swap
contracts and foreign currency transactions (30,526,506) (29,331,719)
-------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 12,362,072 $ 8,591,426
-------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.30 and $0.08 per share, respectively) $ (4,787,767) $ (2,126,642)
Class C ($0.16 and $0.02 per share, respectively) (2,796,710) (327,921)
Class R ($0.15 and $0.06 per share, respectively) (557) (163)
Class Y ($0.33 and $0.13 per share, respectively) (9,305,033) (4,649,796)
Class Z* ($0.19 and $0.06 per share, respectively) (2,220) (405)
Net realized gain:
Class A ($0.33 and $0.49 per share, respectively) (5,521,118) (12,531,021)
Class C ($0.33 and $0.49 per share, respectively) (5,791,481) (9,636,077)
Class R ($0.33 and $0.49 per share, respectively) (1,460) (388)
Class Y ($0.33 and $0.49 per share, respectively) (9,576,515) (16,044,747)
Class Z* ($0.33 and $0.49 per share, respectively) (3,857) (773)
-------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (37,786,718) $ (45,317,933)
-------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 300,297,276 $ 488,676,358
Reinvestment of distributions 31,631,974 38,216,433
Cost of shares repurchased (366,871,843) (637,695,484)
-------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ (34,942,593) $ (110,802,693)
-------------------------------------------------------------------------------------------------
Net decrease in net assets $ (60,367,239) $ (147,529,200)
NET ASSETS:
Beginning of year $ 866,979,255 $1,014,508,455
-------------------------------------------------------------------------------------------------
End of year $ 806,612,016 $ 866,979,255
-------------------------------------------------------------------------------------------------
Undistributed net investment income $ 1,213,219 $ 9,789,825
=================================================================================================
* Class Z shares converted to Class Y shares on August 7, 2015.
The accompanying notes are an integral part of these financial statements.
36 Pioneer Flexible Opportunities 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 5,975,840 $ 79,431,258 9,236,884 $ 120,512,989
Reinvestment of
distributions 702,485 8,981,329 1,069,509 13,818,762
Less shares repurchased (7,754,295) (99,574,530) (17,916,637) (231,568,945)
-----------------------------------------------------------------------------------------------
Net decrease (1,075,970) $ (11,161,943) (7,610,244) $ (97,237,194)
===============================================================================================
Class C
Shares sold 3,551,007 $ 46,008,975 6,190,418 $ 79,783,701
Reinvestment of
distributions 541,062 6,808,756 633,418 8,101,903
Less shares repurchased (5,311,858) (67,275,117) (7,270,620) (92,694,313)
-----------------------------------------------------------------------------------------------
Net decrease (1,219,789) $ (14,457,386) (446,784) $ (4,808,709)
===============================================================================================
Class R
Shares sold 6,047 $ 74,816 4,941 $ 64,016
Reinvestment of
distributions 139 1,773 9 115
Less shares repurchased (2,453) (31,093) -- --
-----------------------------------------------------------------------------------------------
Net increase 3,733 $ 45,496 4,950 $ 64,131
===============================================================================================
Class Y
Shares sold 13,280,661 $ 174,740,739 22,033,294 $ 288,180,334
Reinvestment of
distributions 1,234,446 15,834,274 1,257,557 16,294,893
Less shares repurchased (15,663,576) (199,789,697) (24,310,961) (313,430,251)
-----------------------------------------------------------------------------------------------
Net decrease (1,148,469) $ (9,214,684) (1,020,110) $ (8,955,024)
===============================================================================================
Class Z*
Shares sold 3,096 $ 41,488 10,419 $ 135,318
Reinvestment of
distributions 461 5,842 59 760
Less shares repurchased (15,449) (201,406) (150) (1,975)
-----------------------------------------------------------------------------------------------
Net increase
(decrease) (11,892) $ (154,076) 10,328 $ 134,103
===============================================================================================
* Class Z shares converted to Class Y shares on August 7, 2015.
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 37
Financial Highlights (Consolidated)
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/15 10/31/14 10/31/13 10/31/12 10/31/11
---------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 12.94 $ 13.33 $ 11.76 $ 11.25 $ 10.63
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.17(b) $ 0.27 $ 0.21 $ 0.20 $ 0.19
Net realized and unrealized gain (loss) on investments 0.20 (0.09) 1.51 0.67 0.51
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.37 $ 0.18 $ 1.72 $ 0.87 $ 0.70
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.30) $ (0.08) $ (0.15) $ (0.36) $ (0.08)
Net realized gain (0.33) (0.49) -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.63) $ (0.57) $ (0.15) $ (0.36) $ (0.08)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.26) $ (0.39) $ 1.57 $ 0.51 $ 0.62
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.68 $ 12.94 $ 13.33 $ 11.76 $ 11.25
===========================================================================================================================
Total return* 2.85% 1.45% 14.72% 8.01% 6.60%
Ratio of net expenses to average net assets (a) 1.20% 1.23% 1.20% 1.20% 1.20%
Ratio of net investment income (loss) to average net assets 1.33% 1.60% 1.82% 2.19% 2.05%
Portfolio turnover rate 295% 383% 288% 175% 191%
Net assets, end of period (in thousands) $209,001 $227,251 $335,398 $147,163 $87,316
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets (a) 1.26% 1.23% 1.23% 1.22% 1.24%
Net investment income (loss) to average net assets 1.27% 1.60% 1.79% 2.17% 2.01%
===========================================================================================================================
* 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) Includes interest expense of 0.00%, 0.05%, 0.00%, 0.00% and 0.00%.
(b) The per share data above is based on the average shares outstanding for the
period presented.
The accompanying notes are an integral part of these financial statements.
38 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/15 10/31/14 10/31/13 10/31/12 10/31/11
---------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 12.78 $ 13.21 $ 11.66 $ 11.15 $ 10.60
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.07(b) $ 0.13 $ 0.12 $ 0.11 $ 0.08
Net realized and unrealized gain (loss) on investments 0.20 (0.05) 1.50 0.67 0.52
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.27 $ 0.08 $ 1.62 $ 0.78 $ 0.60
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.16) $ (0.02) $ (0.07) $ (0.27) $ (0.05)
Net realized gain (0.33) (0.49) -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.49) $ (0.51) $ (0.07) $ (0.27) $ (0.05)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.22) $ (0.43) $ 1.55 $ 0.51 $ 0.55
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.56 $ 12.78 $ 13.21 $ 11.66 $ 11.15
===========================================================================================================================
Total return* 2.12% 0.60% 13.93% 7.18% 5.69%
Ratio of net expenses to average net assets (a) 2.01% 1.97% 1.98% 1.95% 2.00%
Ratio of net investment income (loss) to average net assets 0.52% 0.89% 1.05% 1.43% 1.25%
Portfolio turnover rate 295% 383% 288% 175% 191%
Net assets, end of period (in thousands) $218,597 $238,164 $251,889 $104,709 $58,471
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets (a) 2.01% 1.97% 1.98% 1.95% 2.00%
Net investment income (loss) to average net assets 0.52% 0.89% 1.05% 1.43% 1.25%
===========================================================================================================================
* 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) Includes interest expense of 0.00%, 0.05%, 0.00%, 0.00% and 0.00%.
(b) The per share data above is based on the average shares outstanding for the
period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 39
Financial Highlights (Consolidated) (continued)
------------------------------------------------------------------------------------------
Year Year
Ended Ended 9/13/13 to
10/31/15 10/31/14 10/31/13
------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 12.92 $ 13.32 $ 12.87(a)
------------------------------------------------------------------------------------------
Increase (decrease) from
investment operations:
Net investment income (loss) $ 0.06(d) $ 0.15 $ 0.05
Net realized and unrealized gain
(loss) on investments 0.19 0.00(b) 0.44
------------------------------------------------------------------------------------------
Net increase (decrease) from
investment operations $ 0.25 $ 0.15 $ 0.49
------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.15) $ (0.06) $ (0.04)
Net realized gain (0.33) (0.49) --
------------------------------------------------------------------------------------------
Total distributions $ (0.48) $ (0.55) $ (0.04)
------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.23) $ (0.40) $ 0.45
------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.69 $ 12.92 $ 13.32
==========================================================================================
Total return* 1.90% 1.19% 4.76%***
Ratio of net expenses to average net assets (c) 2.01% 1.55% 1.36%**
Ratio of net investment income (loss) to
average net assets 0.47% 1.40% 2.96%**
Portfolio turnover rate 295% 383% 288%***
Net assets, end of period (in thousands) $ 120 $ 74 $ 10
Ratios with no waiver of fees and assumption
of expenses by the Adviser and no
reduction for fees paid indirectly:
Total expenses to average net assets (c) 2.01% 1.55% 1.36%**
Net investment income (loss) to average
net assets 0.47% 1.40% 2.96%**
==========================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not annualized.
(a) Class R shares beginning capital was recorded on inception date at $10.00
per share.
(b) Amount rounds to less than $0.01 or $(0.01) per share.
(c) Includes interest expense of 0.00%, 0.05% and 0.00%.
(d) The per share data above is based on the average shares outstanding for the
period presented.
The accompanying notes are an integral part of these financial statements.
40 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/15 10/31/14 10/31/13 10/31/12 10/31/11
---------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 12.97 $ 13.37 $ 11.79 $ 11.29 $ 10.65
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.21(b) $ 0.27 $ 0.25 $ 0.24 $ 0.15
Net realized and unrealized gain (loss) on investments 0.20 (0.05) 1.52 0.66 0.58
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.41 $ 0.22 $ 1.77 $ 0.90 $ 0.73
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.33) $ (0.13) $ (0.19) $ (0.40) $ (0.09)
Net realized gain (0.33) (0.49) -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.66) $ (0.62) $ (0.19) $ (0.40) $ (0.09)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.25) $ (0.40) $ 1.58 $ 0.50 $ 0.64
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.72 $ 12.97 $ 13.37 $ 11.79 $ 11.29
===========================================================================================================================
Total return* 3.20% 1.70% 15.07% 8.33% 6.89%
Ratio of net expenses to average net assets (a) 0.90% 0.95% 0.90% 0.90% 0.90%
Ratio of net investment income (loss) to average net assets 1.63% 1.92% 2.11% 2.49% 2.35%
Portfolio turnover rate 295% 383% 288% 175% 191%
Net assets, end of period (in thousands) $378,895 $401,336 $427,190 $185,648 $119,744
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets (a) 1.02% 1.00% 0.98% 0.91% 0.98%
Net investment income (loss) to average net assets 1.52% 1.92% 2.03% 2.48% 2.67%
===========================================================================================================================
* 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.
(a) Includes interest expense of 0.00%, 0.05%, 0.00%, 0.00% and 0.00%.
(b) The per share data above is based on the average shares outstanding for the
period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 41
Notes to Financial Statements | 10/31/15 (Consolidated)
1. Organization and Significant Accounting Policies
Pioneer Flexible Opportunities Fund, (formerly Pioneer Multi Asset Real Return
Fund) (the Fund), is one of two portfolios comprising Pioneer Series Trust VI, a
Delaware statutory trust. The Fund is registered under the Investment Company
Act of 1940 as a non-diversified, open-end management investment company. The
Fund's investment objective is to seek total return.
The Fund offers four classes of shares designated as Class A, Class C, Class R
and Class Y shares. Class A, Class C and Class Y shares commenced operations on
May 3, 2010. Class R shares commenced operations on September 13, 2013. 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 consolidated financial statements of the Fund include the accounts of the
Subsidiary. All intercompany accounts and transactions have been eliminated. The
Subsidiary, a Cayman Islands exempted company, was incorporated on February 10,
2010 and is wholly-owned and controlled by the Fund. The Fund is the sole
shareholder of the Subsidiary. It is intended that the Fund will remain the sole
shareholder and will continue to control the Subsidiary. The Fund and the
Subsidiary are both managed by PIM. The Subsidiary acts as an investment vehicle
for the Fund in order to effect certain investments on behalf of the Fund. As of
October 31, 2015, the Subsidiary represented $24,244,633 or approximately 3.01%
of the net assets of the Fund.
42 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. 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. 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 is deemed to be
unreliable, price information will be obtained from an alternate loan
interest pricing service. If no reliable price quotes are available from
either the primary or alternative pricing service, broker quotes will be
solicited. 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
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 43
other available market data. Shares of money market mutual funds are valued
at such funds' net asset value. Cash may include overnight time deposits at
approved financial institutions.
Trading in foreign securities is substantially completed each day at
various times prior to the close of the NYSE. The values of such securities
used in computing the net asset value of the Fund's shares are determined
as of such times.
Securities or 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.
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 Valuation Committee is
comprised of certain members of the Board of Trustees. 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, one security was valued using a fair value method (in
addition to the securities valued using prices supplied by independent
pricing services or broker-dealers) representing approximately 0.5% 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 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.
44 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income is recorded
on the accrual basis. All discounts/premiums on purchase prices of debt
securities are accreted/amortized into interest income for financial
reporting purposes.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the statement of operations from
the effects of changes in the market prices of those securities but are
included with the net realized and unrealized gain or loss on investments.
D. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on a
futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at
October 31, 2015 was $9,228,493. 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,
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 45
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
$16,611,072.
At October 31, 2015, open futures contracts were as follows:
----------------------------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation/
Type Counterparty Long/(Short) Month Value (Depreciation)
----------------------------------------------------------------------------------------------
U.S. Treasury Long
Bond Futures Citibank N.A. 350 12/15 $ 54,753,125 $ (282,824)
H-Shares
Index Futures Citibank N.A. (464) 11/15 (31,212,118) 560,111
JPY FX Futures Citibank N.A. (328) 12/15 (33,980,800) 65,600
CHF FX Futures Citibank N.A. (124) 12/15 (15,703,050) 264,275
EUR FX Futures Citibank N.A. (107) 12/15 (14,724,538) 274,188
S&P E-Mini
Futures Citibank N.A. (400) 12/15 (41,474,000) (3,171,300)
BP Currency
Future Citibank N.A. (32) 12/15 (3,084,400) (13,000)
Palladium Futures Citibank N.A. 210 12/15 14,222,250 1,310,895
Copper Futures Citibank N.A. 101 12/15 5,851,688 (178,600)
----------------------------------------------------------------------------------------------
Total $(65,351,843) $ (1,170,655)
==============================================================================================
E. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
is recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 6).
F. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its 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 unrecognized tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years remain subject to examination by
federal and state tax authorities.
46 Pioneer Flexible Opportunities 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 $1,613,554 to decrease
undistributed net investment income, $5,187,741 to increase accumulated net
realized gain on investments, futures contracts, swap contracts, written
options and foreign currency transactions and $3,574,187 to decrease
paid-in capital to reflect permanent book/tax differences. These
adjustments have no impact on net assets or the results of operations.
The tax character of distributions during the year ended October 31, 2015
and October 31, 2014 were as follows:
---------------------------------------------------------------------------
2015 2014
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $16,892,287 $ 7,104,927
Long-term capital gain 20,894,431 38,213,006
---------------------------------------------------------------------------
Total $37,786,718 $45,317,933
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 2,662,581
Undistributed long-term capital gain 35,258,195
Net unrealized appreciation 12,547,307
---------------------------------------------------------------------------
Total $50,468,083
===========================================================================
The difference between book-basis and tax-basis net unrealized appreciation is
attributable to the tax deferral of losses on wash-sales, the tax treatment on
passive foreign investment company (PFIC) holdings, adjustments relating to
catastrophe bonds, tax basis adjustments on partnerships and the mark-to-market
of forward foreign currency contracts, future contracts and options and the tax
basis adjustments on partnerships.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 47
G. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned $57,224 in underwriting commissions on the sale of
Class A shares during the year ended October 31, 2015.
H. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C 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).
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.
I. Insurance Linked Securities (ILS)
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.
48 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
The Fund's investments in ILS may include special purpose vehicles ("SPVs")
or similar instruments structured to comprise a portion of a reinsurer's
catastrophe-oriented business, known as quota share instruments (sometimes
referred to as reinsurance sidecars), or to provide reinsurance relating to
specific risks to insurance or reinsurance companies through a
collateralized instrument, known as collateralized reinsurance. Structured
reinsurance investments also may include industry loss warranties ("ILWs"),
are subject to the same risks as event-linked bonds. In addition, because
quota share instruments represent an interest in a basket of underlying
reinsurance contracts, the Fund has limited transparency into the
individual underlying contracts and therefore must rely upon the risk
assessment and sound underwriting practices of the issuer. Accordingly, it
may be more difficult for PIM to fully evaluate the underlying risk profile
of the Fund's investment in quota share instruments and therefore place the
Fund's assets at greater risk of loss than if PIM had more complete
information.
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.
J. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making the Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
The Fund may gain exposure to commodities (such as oil and precious metals)
through investment in commodity-related investments, including
commodity-linked derivatives, ETFs and leveraged or unleveraged
commodity-linked notes (derivative debt instruments with principal and/or
coupon payments linked to the performance of commodity indices). The Fund
also may invest in equity securities of issuers in commodity-related
industries. The Fund's investments in commodity-related investments may
subject the Fund to greater market price volatility than investments in
traditional securities. The value of commodity-related investments may be
affected by changes in overall market movements, commodity index
volatility, changes in interest rates, or factors affecting particular
industries or commodities, such as weather, disease, embargoes, acts of war
or terrorism, or political and regulatory developments. Commodity-related
investments
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 49
may be more volatile than the underlying commodities. In addition,
commodity-linked investments are subject to counterparty risk due to there
being a relatively small number of issuers. The Fund gains exposure to
commodity-related investments by investing in the Pioneer Cayman
Commodity Fund, Ltd. (the Subsidiary), a foreign entity that is treated as
a controlled foreign corporation for U.S. federal income tax purposes. The
Fund may invest up to 25% of its total assets in the Subsidiary. The Fund's
ability to invest in commodity-related investments, and the means through
which any such investments may be made, is limited by tax considerations.
The Fund may invest in REIT securities, the value of which can fall for a
variety of reasons, such as declines in rental income, fluctuating interest
rates, poor property management, environmental liabilities, uninsured
damage, increased competition, or changes in real estate tax laws.
K. Repurchase Agreements
Repurchase agreements are arrangements under which the Fund purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Fund at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Fund. The securities purchased serve as
the Fund's collateral for the obligation of the counterparty to repurchase
the securities. The value of the collateral, including accrued interest, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian or a subcustodian of the
Fund. The Fund's investment adviser, PIM is responsible for determining
that the value of the collateral remains at least equal to the repurchase
price. In the event of a default by the counterparty, the Fund is entitled
to sell the securities, but the Fund may not be able to sell them for the
price at which they were purchased, thus causing a loss to the Fund.
Additionally, if the counterparty becomes insolvent, there is some risk
that the Fund will not have a right to the securities, or the immediate
right to sell the securities. As of the year ended October 31, 2015 the
fund had no outstanding repurchase agreements.
L. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price,
upon the exercise of the option. When the Fund writes an option, an amount
equal to the premium received by the Fund is recorded as a liability and is
subsequently adjusted to the current value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments. The
difference
50 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
between the premium and the amount paid on effecting a closing purchase
transaction, including brokerage commissions, is also treated as a realized
gain, or, if the premium is less than the amount paid for the closing
purchase transaction, as a realized loss. If a call option is exercised,
the premium is added to the proceeds from the sale of the underlying
security in determining whether the Fund has realized a gain or loss. The
Fund as writer of an option bears the market risk of an unfavorable change
in the price of the security underlying the written option.
The average value of contracts open during the year ended October 31, 2015
was $(4,591,466). There were no written option contracts outstanding as of
October 31, 2015.
Transactions in written options for the year ended October 31, 2015 are
summarized as follows:
------------------------------------------------------------------------------
Number of Contracts Premium Received
------------------------------------------------------------------------------
Options open at beginning of period (20,750) $ (5,731,258)
Options opened (117,100) (84,046,342)
Options exercised 109,260 66,787,880
Options closed -- --
Options expired 28,590 22,989,720
------------------------------------------------------------------------------
Options open at end of period (--) $ (--)
==============================================================================
M. Purchased Options
The Fund may purchase put and call options to seek to increase total
return. Purchased call and put options entitle the Fund to buy and sell a
specified number of shares or units of a particular security, currency or
index at a specified price at a specific date or within a specific period
of time. Upon the purchase of a call or put option, the premium paid by the
Fund is included in the Statement of Assets and Liabilities as an
investment. All premiums are marked-to-market daily, and any unrealized
appreciation or depreciation are recorded in the Fund's financial
statements. As the purchaser of an index option, the Fund has the right to
receive a cash payment equal to any depreciation in the value of the index
below the strike price of the option (in the case of a put) or equal to any
appreciation in the value of the index over the strike price of the option
(in the case of a call) as of the valuation date of the option. Premiums
paid for purchased calls and put options which have expired are treated as
realized losses on investments in the Statement of Operations. Upon the
exercise or closing of a purchased put option, the premium is offset
against the proceeds on the sale of the underlying security or financial
instrument in order to determine the realized gain or loss on investments.
Upon the exercise or closing of a purchased call option, the premium is
added to the cost of the security or financial instrument. The risk
associated with purchasing options is limited to the premium originally
paid.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 51
The average value of contracts open during the year ended October 31, 2015
was $17,323,126. Purchased options open at period end are listed in the
Fund's Schedule of Investments.
N. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may sell
or buy credit default swap contracts to seek to increase the Fund's income,
or to attempt to hedge the risk of default on portfolio securities. A
credit default swap index is used to hedge risk or take a position on a
basket of credit entities or indices. As a seller of protection, the Fund
would be required to pay the notional (or other agreed-upon) value of the
referenced debt obligation to the counterparty in the event of a default by
a U.S. or foreign corporate issuer of a debt obligation, which would likely
result in a loss to the Fund. In return, the Fund would receive from the
counterparty a periodic stream of payments during the term of the contract
provided that no event of default occurred. The maximum exposure of loss to
the seller would be the notional value of the credit default swaps
outstanding. If no default occurs, the Fund would keep the stream of
payments and would have no payment obligation. The Fund may also buy credit
default swap contracts in order to hedge against the risk of default of
debt securities, in which case the Fund would function as the counterparty
referenced above.
When the Fund enters into a credit default swap contract, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the right to receive a contingent payment. An upfront payment
made by the Fund, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made as a result of a credit
event or upon termination of the contract are recognized, net of the
appropriate amount of the upfront payment, as realized gains or losses in
the Statement of Operations.
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
52 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
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.
There were no open credit default swap contracts at October 31, 2015. The
average value of swap contracts open during the year ended October 31, 2015
was $(281,712).
O. Total Return Swap Agreements
The Fund may enter into a total return swap to attempt to manage and/or
gain exposure to a security or market. Pursuant to a total return swap
agreement, the Fund negotiates with a counterparty to exchange a periodic
stream of payments. One party makes payments based on the total return of a
reference asset (such as a security or a basket of securities or securities
index), and in return receives fixed or floating rate interest payments.
The total return of the reference asset typically includes appreciation or
depreciation on the reference asset, plus any interest or dividend
payments. To the extent that the total return of the reference asset
exceeds or falls short of the offsetting interest rate obligation, the Fund
will receive a payment from or make a payment to the counterparty.
Total return swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made are recorded as realized
gains or losses in the Statement of Operations. Total return swap contracts
are subject to counterparty risk and unanticipated movements in value of
exchange rates, interest rates, securities or the index.
Open total return swap contracts at October 31, 2015 are listed at the end
of the Schedule of Investments. The average value of swap contracts open
during the year ended October 31, 2015 was $(509,176).
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at an annual rate of 0.70% of
the average daily net assets of the Fund, excluding assets invested in the
Subsidiary and on which the Subsidiary pays a management fee.
The Subsidiary has entered into a separate management contract with PIM,
pursuant to which PIM manages the assets of the Subsidiary. As compensation for
its management services to the Subsidiary and expenses incurred with respect to
the Subsidiary, the Subsidiary pays PIM a fee at the annual rate of 0.70% of the
Subsidiary's average daily net assets.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 53
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.20% and 0.90% of the average daily net
assets attributable to Class A and Class Y shares, respectively. These expense
limitations are in effect through March 1, 2017. Fees waived and expenses
reimbursed during the year ended October 31, 2015 are reflected on the Statement
of Operations. Fees and expenses of other investment companies in which the Fund
may invest are not included in the expense limitations noted above. There can be
no assurance that PIM will extend the expense limitation agreement for a class
of shares beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$61,588 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 $178,762
Class C 215,339
Class R 185
Class Y 431,116
Class Z 231
--------------------------------------------------------------------------------
Total $825,633
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $161,520 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at October 31, 2015.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class C and Class R
shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with
54 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
regard to Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of
the average daily net assets attributable to Class C shares. The fee for Class C
shares consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class C shares. Included in "Due to
affiliates" reflected on the Statement of Assets and Liabilities is $22,342 in
distribution fees payable to PFD at 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 $45,729 were paid to PFD.
5. Forward Foreign Currency Contracts
At October 31, 2015, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of forward foreign
currency contracts open during the year ended October 31, 2015 was $(5,480,226).
There were no open forward foreign currency contracts as of October 31, 2015.
6. Expense Offset Arrangements
The Fund 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.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 55
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until June 9, 2015 is in the amount of $215 million.
As of June 9, 2015, the facility was 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 the credit facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the year ended October 31, 2015, the Fund had no borrowings under
the credit facility.
8. Assets and Liabilities Offsetting
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Fund and a counterparty that governs the trading
of certain OTC derivatives and typically contains, among other things, close-out
and set-off provisions which apply upon the occurrence of event of a default
and/or termination event as defined under the relevant ISDA Master Agreement.
The ISDA Master Agreement may also give a party the right to terminate all
transactions traded under such agreement if, among other things, there is
deterioration in the credit quality of the other party. Upon an event of default
or a termination of the ISDA Master Agreement, the non-defaulting party has the
right to close out all transactions under such agreement and to net amounts owed
under each transaction to determine one net amount payable by one party to the
other. The right to close out and net payments across all transactions under the
ISDA Master Agreement could result in a reduction of the Fund's credit risk to
its counterparty equal to any amounts payable by the Fund under the applicable
transactions, if any. However, the Fund's right to setoff may be restricted or
prohibited by the bankruptcy or insolvency laws of the particular jurisdiction
to which a specific ISDA counterparty is subject.
56 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collateral pledged for the benefit of the Fund and/or
counterparty is held in segregated accounts by the Fund's custodian and cannot
be sold, re-pledged, assigned or otherwise used while pledged. Cash that has
been segregated to cover the Fund's collateral obligations, if any, will be
reported separately in the Statement of Assets and Liabilities as "Futures
collateral", "Swap Collateral " or "Deposit with broker." Securities pledged by
the Fund as collateral, if any, are identified as such in the Schedule of
Investments.
Financial instruments subject to an enforceable master netting agreement such as
an ISDA Master Agreement have been offset on the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Fund
as of October 31, 2015.
----------------------------------------------------------------------------------------------------------
Derivative Assets Derivatives Non-Cash Cash Amount
Subject to Master Available for Collateral Collateral Derivative
Counterparty Netting Agreement Offset Received(a) Received(a) Assets(b)
----------------------------------------------------------------------------------------------------------
Societe Generale SA $495,991 $ -- $ -- $ -- $495,991
Citibank N.A. -- -- -- -- --
----------------------------------------------------------------------------------------------------------
Total $495,991 $ -- $ -- $ -- $495,991
==========================================================================================================
----------------------------------------------------------------------------------------------------------
Derivative Liabilities Derivatives Non-Cash Cash Amount
Subject to Master Available for Collateral Collateral Derivative
Counterparty Netting Agreement Offset Pledged(a) Pledged(a) Liabilities(c)
----------------------------------------------------------------------------------------------------------
Societe Generale SA $ -- $ -- $ -- $ -- $ --
Citibank N.A. 13,337 -- -- (2,582) 10,755
----------------------------------------------------------------------------------------------------------
Total $ 13,337 $ -- $ -- $ (2,582) $ 10,755
==========================================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 57
9. 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.
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
Interest Credit Foreign Equity Commodity
Assets Rate Risk Risk Exchange Rate Risk Risk
-------------------------------------------------------------------------------------------
Net unrealized
appreciation on
swap contracts $ -- $ -- $ -- $ 482,654 $ --
-------------------------------------------------------------------------------------------
Total Value $ -- $ -- $ -- $ 482,654 $ --
===========================================================================================
Liabilities
Net unrealized
depreciation on
futures contracts $(282,824) $-- $591,063 $(2,611,189) $1,132,295
-------------------------------------------------------------------------------------------
Total Value $(282,824) $-- $591,063 $(2,611,189) $1,132,295
===========================================================================================
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:
58 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
--------------------------------------------------------------------------------------------
Statement of Operations
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Rate Risk Risk Risk
--------------------------------------------------------------------------------------------
Net realized gain
(loss) on
Swap contracts $ -- $ -- $ -- $ (4,193,541) $ --
Futures contracts 5,235,386 -- 9,655,658 (11,395,272) (3,774,837)
Written options 1,763,120 -- (1,565,517) 23,468,368 (2,521,424)
Forward foreign
currency contracts -- -- (603,660) -- --
--------------------------------------------------------------------------------------------
Total Value $6,998,506 $ -- $ 7,486,481 $ 7,879,555 $(6,296,261)
============================================================================================
--------------------------------------------------------------------------------------------
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Rate Risk Risk Risk
--------------------------------------------------------------------------------------------
Change in net
unrealized
appreciation
(depreciation) on
Swap contracts $ -- $ -- $ -- $ 482,654 $ --
Futures contracts (1,306,699) -- (551,258) (2,143,760) 1,258,695
Written options -- -- -- (1,621,508) --
Forward foreign
currency contracts -- -- 132,430 -- --
--------------------------------------------------------------------------------------------
Total Value $(1,306,699) $ -- $(418,828) $(3,282,614) $ 1,258,695
============================================================================================
11. Conversion of Class Z 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.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 59
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VI and the Shareowners of
Pioneer Flexible Opportunities Fund (formerly, Pioneer Multi-Asset Real Return
Fund):
--------------------------------------------------------------------------------
We have audited the accompanying consolidated statement of assets and
liabilities, including the consolidated schedule of investments, of Pioneer
Flexible Opportunities Fund (formerly, Pioneer Multi-Asset Real Return Fund)
(one of the portfolio's constituting Pioneer Series Trust VI), as of October 31,
2015, and the related consolidated statement of operations for the year then
ended and the consolidated statements of changes in net assets and the
consolidated 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 consolidated 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 consolidated financial statements and consolidated
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
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the consolidated financial statements and consolidated financial
highlights referred to above present fairly, in all material respects, the
financial position of Pioneer Flexible Opportunities Fund (formerly, Pioneer
Multi-Asset Real Return 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
60 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
ADDITIONAL INFORMATION (unaudited)
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 PIM. 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.
For the year ended October 31, 2015, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax
Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate up to
the maximum amount of such dividends allowable under the Act, as taxed at a
maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2014 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 31.12%.
The percentages of the Fund's ordinary income distributions that are exempt from
nonresident alien (NRA) tax withholding resulting from qualified interest income
was 6.51%.
SUBSEQUENT EVENT (unaudited)
Effective November 2, 2015, Boston Financial Data Service became the transfer
agent to the Fund at negotiated rates.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 61
Approval of Investment Advisory Agreement and Subsidiary Management Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Flexible Opportunities 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 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.
62 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
PIM also serves as the investment adviser to Pioneer Cayman Commodity Fund, Ltd.
(the Subsidiary), a wholly-owned subsidiary of the Fund organized under the laws
of the Cayman Islands. The Trustees, including the independent Trustees voting
separately, unanimously approved the renewal of the investment advisory
agreement for the Subsidiary (the Subsidiary Management Agreement) for another
year. The factors considered by the Trustees in approving the renewal of the
Subsidiary Management Agreement were substantially the same as the factors
described below with respect to the investment advisory agreement for the Fund.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by 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
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 63
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.
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 first quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees noted that although assets invested by the Fund in the Subsidiary are
excluded from the calculation of the Fund's management fee, the Fund indirectly
pays a management fee with respect to assets invested in the Subsidiary because
the Subsidiary pays a management fee pursuant to the Subsidiary Management
Agreement. The Trustees noted that the Subsidiary pays PIM a management fee at
the same rate that the Fund pays PIM.
The Trustees considered that the expense ratio of the Fund's Class A shares for
the most recent fiscal year was in the second quintile relative to its
Morningstar peer group and in the second quintile relative its Strategic Insight
peer group, in each case for the comparable period. The Trustees considered that
the expense ratio of the Fund's Class Y shares for the most recent fiscal year
was in the first quintile relative to its Morningstar peer group and in the
second quintile relative its Strategic Insight peer group, in each case for the
comparable period. The Trustees noted that PIM was waiving fees and/or
reimbursing expenses in order to limit the ordinary operating expenses of the
Fund. The Trustees considered the impact of transfer agency, sub-transfer
agency, and other non-management fee expenses on the expense ratios of the Fund.
The Trustees noted that they separately review the Fund's transfer agency,
sub-transfer agency and intermediary arrangements.
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
64 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
considered the differences in management fees and profit margins for Fund and
non-Fund services. In evaluating the fees associated with Pioneer's client
accounts, the Trustees took into account the respective demands, resources and
complexity associated with the Fund and client accounts. The Trustees noted
that, in some instances, the fee rates for those clients were lower than the
management fee for the Fund and considered that, under the investment advisory
agreement with the Fund, PIM performs additional services for the Fund that it
does not provide to those other clients or services that are broader in scope,
including oversight of the Fund's other service providers and activities related
to compliance and the extensive regulatory and tax regimes to which the Fund is
subject. The Trustees also considered the different entrepreneurial risks
associated with PIM's management of the Fund and Pioneer's management of the
other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
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
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
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 65
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. 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 each of the
investment advisory agreement between PIM and the Fund and the Subsidiary
Management Agreement, including, in each case, the fees payable thereunder, was
fair and reasonable and voted to approve the proposed renewal of each of the
investment advisory agreement for the Fund and the Subsidiary Management
Agreement.
66 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
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.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 67
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 2010. Private investor (2004 - 2008 and 2013 - present); Director, Broadridge
Chairman of the Board Serves until a Chairman (2008 - 2013) and Chief Executive Officer Financial Solutions, Inc.
and Trustee successor trustee (2008 - 2012), Quadriserv, Inc. (technology (investor communications and
is elected or products for securities lending industry); and securities processing
earlier retirement Senior Executive Vice President, The Bank of New provider for financial
or removal. York (financial and securities services) (1986 - services industry) (2009 -
2004) present); Director,
Quadriserv, Inc. (2005 -
2013); and Commissioner, New
Jersey State Civil Service
Commission (2011 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (71) Trustee since 2010. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - 2004 Trust (publicly-traded
successor trustee 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); Executive The Swiss Helvetia Fund, Inc.
or removal. Vice President and Chief Financial Officer, (closed-end fund) (2010 -
I-trax, Inc. (publicly traded health care services present); Director of Oxford
company) (2004 - 2007); and Executive Vice Analytica, Inc. (2008 -
President and Chief Financial Officer, Pedestal present); and Director of
Inc. (internet-based mortgage trading company) Enterprise Community
(2000 - 2002); Private consultant (1995-1997), Investment, Inc.
Managing Director, Lehman Brothers (investment (privately-held affordable
banking firm) (1992-1995); and Executive, The housing finance company)
World Bank (1979-1992) (1985 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (71) Trustee since 2010. 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)
------------------------------------------------------------------------------------------------------------------------------------
68 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (68) Trustee since 2010. 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 2010. 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)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 69
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 2008) None
Trustee Serves until a and Chief Investment Officer, U.S. (since 2010) of
successor trustee PIM-USA; Executive Vice President of Pioneer
is elected or (since 2008); Executive Vice President of Pioneer
earlier retirement Institutional Asset Management, Inc. (since 2009);
or removal. 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.
70 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine 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.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 71
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 of Investment Management-USA (since September 2014); closed-end investment
Executive Officer 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 2010. Serves Vice President and Associate General Counsel of None
Secretary and Chief at the discretion of Pioneer since January 2008; Secretary and Chief
Legal Officer 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 December None
Assistant Secretary at the discretion of 2006 and Assistant Secretary of all the Pioneer
the Board. 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 of Assistant Secretary of all the Pioneer Funds since
the Board. June 2010; and Counsel of Pioneer from June 2007
to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2010. Serves Vice President - Fund Treasury of Pioneer; None
Treasurer and Chief at the discretion of Treasurer of all of the Pioneer Funds since March
Financial and 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
------------------------------------------------------------------------------------------------------------------------------------
72 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (50) Since 2010. Serves Director - Fund Treasury of Pioneer; and Assistant None
Assistant Treasurer at the discretion Treasurer of all of the Pioneer Funds
of the Board.
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (57) Since 2010. 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 2010. 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 2010. Serves Director - Transfer Agency Compliance of Pioneer None
Anti-Money Laundering at the discretion and Anti-Money Laundering Officer of all the
Officer of the Board. Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 73
This page for your notes.
74 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15
This page for your notes.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/15 75
This page for your notes.
76 Pioneer Flexible Opportunities 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 24440-05-1215
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 Trust were $116,877
payable to Deloitte & Touche LLP for the year ended
October 31, 2015 and $106,469 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 Trust were $17,500
payable to Deloitte & Touche LLP for the year ended
October 31, 2015 and $17,500 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 Trust's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Trust. For the
years ended October 31, 2015 and 2014, there were no
services provided to an affiliate that required the
Trust's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Trust were $17,500
payable to Deloitte & Touche LLP for the year ended
October 31, 2015 and $17,500 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 Series Trust VI
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.