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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-10395
Pioneer Series Trust VII
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 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 Global High
Yield Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2015
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Ticker Symbols:
Class A PGHYX
Class C PGYCX
Class Y GHYYX
[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 14
Schedule of Investments 16
Financial Statements 44
Notes to Financial Statements 51
Report of Independent Registered Public Accounting Firm 65
Approval of Investment Advisory Agreement 67
Trustees, Officers and Service Providers 72
Pioneer Global High Yield Fund | Annual Report | 10/31/15 1
President's Letter
Dear Shareholder,
Through the first three quarters of 2015, global markets experienced pockets of
higher-than-average volatility due to significant cross-currents from different
geographic regions. All year, investors focused on the Federal Reserve System's
(the Fed's) deliberations over when to begin normalizing interest rates.
However, while there were signs of gradual economic improvement in the U.S.,
economies abroad increasingly diverged. In June, for example, investors grew
concerned about the debt crisis in Greece. That news, in turn, was followed by
evidence of an economic slowdown in China, which only served to exacerbate
existing worries about growth trends in the emerging markets, a segment of the
global economy already being negatively impacted by slumping commodity prices,
including the price of crude oil, which has been in near-steady decline for
almost a year. Through September 30, 2015, the pockets of heightened market
volatility alluded to above had resulted in the Standard & Poor's 500 Index
turning in a negative (-5.27%) return over the first nine months of the year.
However, the S&P 500 recovered nicely in October, returning 8.43% for the month,
which boosted the index's year-to-date return into positive territory, at 2.71%.
Despite the headwinds still vexing the global economy, our longer-term view of
the U.S. economy has remained positive. Economic conditions in the U.S. have
generally been constructive, based largely on improvements in employment
statistics and an uptick in the housing sector, which has aided the consumer
side of the economy, where household spending has been rising modestly. U.S.
consumers also stand to benefit, potentially, from lower energy prices as the
winter weather approaches. We continue to believe the U.S. economy remains on
a slow, steady growth trend, and that it is unlikely to be disrupted by a slow
pace of interest-rate normalization by the Fed.
Pioneer Investments believes that investors in today's environment can
potentially benefit from the consistent and disciplined investment approach we
have used since our founding in 1928. We focus on identifying value across
global markets using proprietary research, careful risk management, and a
long-term perspective. Our ongoing goal is to produce compelling returns
consistent with the stated objectives of our investment products, and with our
shareowners' expectations. We believe our shareowners can benefit from the
experience and tenure of our investment teams as well as the insights generated
from our extensive research process.
2 Pioneer Global High Yield Fund | Annual Report | 10/31/15
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
November 2, 2015
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 3
Portfolio Management Discussion | 10/31/15
Credit-sensitive securities, including high-yield corporate bonds and emerging
markets debt, struggled over most of the 12-month period ended October 31, 2015,
as investors' concerns about the declining prices of oil and other commodities,
and mounting fears of global economic weakening, negatively affected the
markets. In the following interview, Andrew Feltus and Tracy Wright discuss the
market environment and the performance of Pioneer Global High Yield Fund during
the 12-month period. Mr. Feltus, Director of High Yield and Bank Loans, a senior
vice president and a portfolio manager at Pioneer, is lead manager of the Fund,
and Ms. Wright, a senior vice president and portfolio manager at Pioneer, is the
co-manager of the Fund. Together, they are responsible for the day-to-day
management of the Fund.
Q How did the Fund perform during the 12-month period ended October 31, 2015?
A Pioneer Global High Yield Fund's Class A shares returned -6.36% at net
asset value during the 12-month period ended October 31, 2015, while the
Fund's benchmarks, the Barclays Global High Yield Index (the Barclays
Index) and the Bank of America Merrill Lynch (BofA ML) High Yield Master II
Index, each returned -2.05%. During the same period, the average return of
the 656 mutual funds in Lipper's High Yield Funds category was -2.24%, and
the average return of the 773 mutual funds in Morningstar's High Yield Bond
Funds category was -2.09%.
Q How would you describe the investment environment in the global high-yield
markets during the 12-month period ended October 31, 2015?
A Declining commodity prices - especially of crude oil - and concerns about
global economic growth trends dragged down the high-yield bond market over
the 12-month period. The domestic high-yield corporate bond market, with
its large exposures to debt issued by energy firms as well as by metals and
mining companies, was hit particularly hard. Emerging markets securities
also sold off significantly, as many emerging economies are heavily
dependent on exports of oil and other commodities. European high-yield
bonds, however, were less exposed to commodity prices and tended to hold up
somewhat better (in local currency values), especially in light of the
European Central Bank's (ECB's) easing of monetary policy during the
period; however, the weakness of the euro in world currency markets had a
negative impact on European high-yield's performance on an unhedged basis.
At the start of the 12-month period, during the fourth quarter of 2014,
declining oil prices tended to pull down both the emerging and domestic
high-yield markets, as both had relatively large exposures to oil-related
4 Pioneer Global High Yield Fund | Annual Report | 10/31/15
industries. In fact, bonds issued by energy companies accounted for between
roughly 12% to 16% of domestic high-yield corporate bonds, and as much as
40% of emerging markets corporate debt. Early in 2015, energy-related
bonds tended to show some improvement as oil prices firmed, but oil began
declining again at mid-year and the price of crude continued to drop all
the way through the end of the period. This, once again, had a negative
effect on both domestic high-yield bonds and emerging markets debt. At the
same time, evidence of slowing economic growth trends in China raised still
more concerns, this time about possible contagion effects a slowdown in
China may have on many emerging markets economies, and on the global
economic growth outlook in general. Adding to the negative factors
affecting the high-yield markets were growing expectations that the U.S.
Federal Reserve System (the Fed), sooner rather than later, would begin
raising short-term interest rates for the first time in nearly a decade.
While emerging markets bonds struggled overall during the 12-month period,
a credit-rating downgrade on Russian debt resulted in the addition of those
securities to emerging markets benchmarks, which turned out to be a
positive development. After the downgrade, Russian debt instruments - both
sovereigns and corporates - rallied and lent support to some market
indices.
In the final month of the period, the domestic high-yield market did stage
a rally, with one of the Fund's benchmarks, the BofA ML High Yield Master
II Index, rising by 2.73% for the month after the Fed announced in
September that it would again delay any move to increase short-term
interest rates.
Q Which factors had the biggest effects on the Fund's performance relative to
the high-yield benchmarks during the 12-month period ended October 31,
2015?
A The Fund's benchmark-relative underperformance during the period was due
primarily to overall security selection results. In particular, security
selection results in the energy sector and among the portfolio's emerging
markets debt holdings acted as major drags on relative returns. The
negative effects of adverse security selection offset the positive impact
of our heavy emphasis on the U.S. dollar in the portfolio, as the dollar
appreciated in value versus most foreign currencies during the period. In
addition, the Fund's non-benchmark exposures to floating-rate bank loans
and insurance-linked securities contributed to benchmark-relative results.
With regard to individual positions, several of the Fund's investments in
emerging markets debt detracted significantly from relative performance.
Notably, a position in OAS, a Brazilian construction company that filed for
bankruptcy protection in January 2015, hurt relative returns. The effects
of the OAS bankruptcy filing spread and undermined the performance of bonds
of other construction companies located in the emerging markets,
Pioneer Global High Yield Fund | Annual Report | 10/31/15 5
including ICA, a Mexican company whose bonds the portfolio also owned. In
addition, the Fund's investment in the debt of Pacific Rubicales Energy, a
Colombia-based corporation, was a detractor from relative performance as
the bonds sold off after shareholders blocked the planned sale of the
corporation to a Mexican firm.
On the positive side, the portfolio did have several positions in the
domestic high-yield market that supported the Fund's benchmark-relative
results during the period, including the bonds of Lantheus Medical, a
corporation which provides diagnostic medical imaging services that was
able to refinance its debt after an initial public stock offering. In the
emerging markets, a number of the Fund's Argentina-based holdings performed
well on investors' expectations of government reforms in the country. Some
of the stronger performers in the Fund's portfolio during the period were
securities issued by IRSA, an Argentinian real estate company, and Banco
Galicia, a financial services company.
Q Did the Fund invest in any derivative securities during the 12-month period
ended October 31, 2015? If so, what impact did those investments have on
benchmark-relative results?
A Yes, we did invest the Fund in some forward currency contracts as part of
our strategy to overweight the portfolio to the U.S. dollar. The use of
these contracts had a positive effect on the Fund's results as the dollar
strengthened against most foreign currencies.
Q What factors affected the Fund's dividend* during the 12-month period ended
October 31, 2015?
A The Fund's dividend was reduced in late 2014, but it has remained stable
during the first 10 months of 2015. During the full 12-month period, yield
spreads (or yield differences) between higher-rated and lower-rated bonds
have widened, and high-yield bonds have underperformed. We think this
development may afford us the potential to reinvest the Fund's assets in
securities with higher coupon rates in the future, even though we are still
in a low-interest-rate environment.
* Dividends are not guaranteed.
6 Pioneer Global High Yield Fund | Annual Report | 10/31/15
Q What is your investment outlook?
A As the Fund enters a new fiscal year, a major factor influencing the
prospects for high-yield securities is how soon the Fed tightens monetary
policy by raising short-term interest rates. The Fed's decision in 2014 to
end its monthly quantitative easing bond purchases contributed to the
volatility in the high-yield bond market, and we believe raising short-term
rates may have a similar effect.
Overall, we have a positive outlook for high-yield securities. At current
prices, we think domestic high-yield bonds offer real value, especially
after the volatility of the past year, which has increased the relative
attractiveness of the asset class. Yield spreads have widened substantially
and are more than compensating investors for default risk, which remains
well below the historic 4% long-term average for the high-yield market; we
think even spread levels on energy-related corporate bonds more than
compensate investors for current risk factors.
Corporate issuers, meanwhile, have generally maintained solid profit
margins and healthy balance sheets, and continue to have good access to
capital. Additionally, the high levels of leveraged buyout activity seen in
the recent past have receded, which should be a positive factor for the
bond market going forward. Finally, we think the prospects for emerging
markets debt, and for domestic energy as well as mining and metals bond
issuers can only improve if there is strengthening in the prices of oil and
other commodities.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 7
Please refer to the Schedule of Investments on pages 16-43 for a full listing of
Fund securities.
Investments in high-yield or lower-rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, and economic and political
conditions.
Prepayment risk is the chance that an issuer may exercise its right to repay its
security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The Fund may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
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 Global High Yield Fund | Annual Report | 10/31/15
Portfolio Summary | 10/31/15
Portfolio Diversification*
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Corporate Bonds 44.6%
International Corporate Bonds 35.2%
Senior Secured Loans 5.5%
Foreign Government Bonds 4.0%
Convertible Corporate Bonds 3.8%
Collateralized Mortgage Obligations 2.3%
U.S. Preferred Stocks 1.6%
International Common Stocks 0.8%
Asset Backed Securities 0.7%
Municipal Bonds 0.7%
U.S. Common Stocks 0.7%
International Preferred Stocks 0.1%
Depositary Receipts for International Stocks 0.0%+
Warrants 0.0%+
+ Amount rounds to less than 0.1%.
* Includes investments in insurance linked securities totaling 5.5% of total
investment portfolio
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings based on country of domicile)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
United States 53.7%
Luxembourg 6.5%
Bermuda 5.0%
Netherlands 3.8%
United Kingdom 3.7%
Mexico 3.4%
Ireland 3.2%
Argentina 2.7%
Cayman Islands 2.6%
Canada 2.2%
Australia 1.5%
Supranational 1.3%
Other (individually less than 1%) 10.4%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)**
1. Scientific Games International, Inc., 10.0%, 12/1/22 1.37%
------------------------------------------------------------------------------------------------
2. Marfrig Overseas, Ltd., 9.5%, 5/4/20 (144A) 1.29
------------------------------------------------------------------------------------------------
3. Minerva Luxembourg SA, 7.75%, 1/31/23 (144A) 1.20
------------------------------------------------------------------------------------------------
4. Mexican Udibonos, 2.0%, 6/9/22 1.16
------------------------------------------------------------------------------------------------
5. Frontier Communications Corp., 8.75%, 4/15/22 1.05
------------------------------------------------------------------------------------------------
6. GMAC Capital Trust I, Floating Rate Note, 2/15/40 0.97
------------------------------------------------------------------------------------------------
7. Lantheus Medical Imaging, Inc., Initial Term Loan, 6/25/22 0.95
------------------------------------------------------------------------------------------------
8. Sprint Corp., 7.25%, 9/15/21 0.94
------------------------------------------------------------------------------------------------
9. Rain CII Carbon LLC, 8.0%, 12/1/18 (144A) 0.90
------------------------------------------------------------------------------------------------
10. Vimpel Communications Via VIP Finance Ireland, Ltd., OJSC, 7.748%, 2/2/21 (144A) 0.87
------------------------------------------------------------------------------------------------
** The list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 9
Prices and Distributions | 10/31/15
Net Asset Value per Share
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--------------------------------------------------------------------------------
Class 10/31/15 10/31/14
--------------------------------------------------------------------------------
A $8.64 $9.79
--------------------------------------------------------------------------------
C $8.62 $9.76
--------------------------------------------------------------------------------
Y $8.49 $9.62
--------------------------------------------------------------------------------
Distributions per Share: 11/1/14-10/31/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term Tax Return
Class Dividends Capital Gains Capital Gains of Capital
--------------------------------------------------------------------------------
A $0.4605 $ -- $ -- $0.0805
--------------------------------------------------------------------------------
C $0.5945 $ -- $ -- $0.0805
--------------------------------------------------------------------------------
Y $0.4790 $ -- $ -- $0.0805
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Barclays Global High Yield Index is an unmanaged index that provides a
broad-based measure of the global high-yield fixed-income markets. The index
represents the union of the Barclays U.S. High-Yield, Barclays Pan-European
High-Yield, Barclays U.S. Emerging Markets High-Yield, and Barclays Pan-
European Emerging Markets High-Yield Indices. The BofA ML High Yield Master II
Index is an unmanaged, commonly accepted measure of the performance of
high-yield securities. Index returns are calculated monthly, assume reinvestment
of dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. It is not possible to invest directly in an index.
The indices defined here pertain to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 11-13.
10 Pioneer Global High Yield Fund | Annual Report | 10/31/15
Performance Update | 10/31/15 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Global High Yield Fund at public
offering price during the periods shown, compared to that of the Bank of America
(BofA) Merrill Lynch (ML) High Yield Master II Index and the Barclays Global
High Yield Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
BofA
Barclays ML
Net Public Global High
Asset Offering High Yield
Value Price Yield Master
Period (NAV) (POP) Index II Index
--------------------------------------------------------------------------------
10 Years 5.34% 4.85% 7.88% 7.48%
5 Years 3.04 2.09 5.82 6.01
1 Year -6.36 -10.57 -2.05 -2.05
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.13%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global BofA ML High Barclays Global
High Yield Fund Yield Master II Index High Yield Index
10/05 $ 9,550 $ 10,000 $ 10,000
10/06 $ 10,707 $ 11,034 $ 11,214
10/07 $ 11,596 $ 11,789 $ 12,120
10/08 $ 7,948 $ 8,663 $ 8,681
10/09 $ 11,411 $ 12,890 $ 13,474
10/10 $ 13,826 $ 15,368 $ 16,095
10/11 $ 13,894 $ 16,112 $ 16,657
10/12 $ 15,546 $ 18,236 $ 19,052
10/13 $ 16,628 $ 19,846 $ 20,852
10/14 $ 17,153 $ 21,007 $ 21,802
10/15 $ 16,062 $ 20,576 $ 21,354
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had charges been reflected. POP returns reflect deduction
of maximum 4.50% sales charge. All results are historical and assume the
reinvestment of dividends and capital gains. Other share classes are available
for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Global High Yield Fund | 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 Global High Yield Fund during the
periods shown, compared to that of the Bank of America (BofA) Merrill Lynch (ML)
High Yield Master II Index and the Barclays Global High Yield Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
BofA
Barclays ML
Global High
High Yield
If If Yield Master
Period Held Redeemed Index II Index
--------------------------------------------------------------------------------
10 Years 4.60% 4.60% 7.88% 7.48%
5 Years 2.37 2.37 5.82 6.01
1 Year -6.96 -6.96 -2.05 -2.05
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.83%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global BofA ML High Barclays Global
High Yield Fund Yield Master II Index High Yield Index
10/05 $ 10,000 $ 10,000 $ 10,000
10/06 $ 11,130 $ 11,034 $ 11,214
10/07 $ 11,962 $ 11,789 $ 12,120
10/08 $ 8,125 $ 8,663 $ 8,681
10/09 $ 11,582 $ 12,890 $ 13,474
10/10 $ 13,949 $ 15,368 $ 16,095
10/11 $ 13,931 $ 16,112 $ 16,657
10/12 $ 15,487 $ 18,236 $ 19,052
10/13 $ 16,452 $ 19,846 $ 20,852
10/14 $ 16,852 $ 21,007 $ 21,802
10/15 $ 15,680 $ 20,576 $ 21,354
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Global High Yield 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 Global High Yield Fund during the
periods shown, compared to that of the Bank of America (BofA) Merrill Lynch (ML)
High Yield Master II Index and the Barclays Global High Yield Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
BofA
Barclays ML
Net Global High
Asset High Yield
Value Yield Master
Period (NAV) Index II Index
--------------------------------------------------------------------------------
10 Years 5.48% 7.88% 7.48%
5 Years 3.37 5.82 6.01
1 Year -6.08 -2.05 -2.05
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.84%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global BofA ML High Barclays Global
High Yield Fund Yield Master II Index High Yield Index
10/05 $ 5,000,000 $ 5,000,000 $ 5,000,000
10/06 $ 5,546,640 $ 5,516,951 $ 5,606,969
10/07 $ 5,997,228 $ 5,894,681 $ 6,059,795
10/08 $ 4,140,212 $ 4,331,582 $ 4,340,461
10/09 $ 5,952,632 $ 6,444,824 $ 6,736,857
10/10 $ 7,223,286 $ 7,683,840 $ 8,047,617
10/11 $ 7,284,346 $ 8,056,199 $ 8,328,381
10/12 $ 8,183,959 $ 9,118,038 $ 9,525,885
10/13 $ 8,779,222 $ 9,922,881 $ 10,426,092
10/14 $ 9,077,820 $ 10,503,401 $ 10,900,797
10/15 $ 8,526,243 $ 10,287,908 $ 10,676,958
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for Class Y shares for periods prior to the inception of Class
Y shares on December 28, 2005, is the net asset value performance of the Fund's
Class A shares. The performance does not reflect differences in expenses,
including the Rule 12b-1 fees applicable to Class A shares. Since fees for Class
A shares are generally higher than those of Class Y shares, the performance for
Class Y shares prior to their inception on December 28, 2005, would have been
higher than the performance shown. For the period beginning December 28, 2005,
the actual performance of Class Y shares is reflected. Class Y shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Global High Yield 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 Global High Yield Fund
Based on actual returns from May 1, 2015, through October 31, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 5/1/15
--------------------------------------------------------------------------------
Ending Account $ 949.21 $ 945.53 $ 950.32
Value (after expenses)
on 10/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 5.75 $ 9.17 $ 4.28
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.17%,
1.87%, and 0.87% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
14 Pioneer Global High Yield 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 Global High Yield Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2015, through October 31, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 5/1/15
--------------------------------------------------------------------------------
Ending Account $1,019.31 $1,015.78 $1,020.82
Value (after expenses)
on 10/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 5.96 $ 9.50 $ 4.43
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.17%,
1.87%, and 0.87% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
Pioneer Global High Yield Fund | Annual Report | 10/31/15 15
Schedule of Investments | 10/31/15
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 4.0%
ENERGY -- 0.9%
Integrated Oil & Gas -- 0.0%+
2,818,475 American Energy -- Utica LLC, 3.5% (3.50%
Cash, 0.00% PIK), 3/1/21 (144A) (PIK) $ 174,393
-------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.6%
4,155,000 Cobalt International Energy, Inc.,
2.625%, 12/1/19 $ 2,991,600
2,585,000 Whiting Petroleum Corp., 1.25%, 4/1/20 (144A) 2,276,416
---------------
$ 5,268,016
-------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.3%
2,800,000 Golar LNG, Ltd., 3.75%, 3/7/17 $ 2,855,440
---------------
Total Energy $ 8,297,849
-------------------------------------------------------------------------------------------------
MATERIALS -- 0.7%
Construction Materials -- 0.5%
5,625,000 Cemex SAB de CV, 3.72%, 3/15/20 $ 5,013,281
-------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.2%
3,714,211 Mirabela Nickel, Ltd., 9.5%, (144A)
(0.0% cash, 9.5% PIK), 6/24/19 (PIK) $ 1,857,106
-------------------------------------------------------------------------------------------------
Steel -- 0.0%+
EURO 237,096 New World Resources NV, 4.0% (144A)
(4.0% cash, 8.0% PIK), 10/7/20 (PIK) (e) $ 39,144
---------------
Total Materials $ 6,909,531
-------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.1%
Electrical Components & Equipment -- 0.1%
1,250,000 General Cable Corp., 4.5%, 11/15/29 (Step) $ 853,906
---------------
Total Capital Goods $ 853,906
-------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.4%
Homebuilding -- 0.4%
4,640,000 KB Home, 1.375%, 2/1/19 $ 4,265,900
---------------
Total Consumer Durables & Apparel $ 4,265,900
-------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.1%
Distillers & Vintners -- 0.1%
2,507,279 CEDC Finance Corp International, Inc., 10.0%
(10.0% cash, 0.0% PIK), 4/30/18 (PIK) $ 1,266,176
---------------
Total Food, Beverage & Tobacco $ 1,266,176
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Global High Yield Fund | Annual Report | 10/31/15
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.4%
Pharmaceuticals -- 0.4%
3,890,000 Impax Laboratories, Inc., 2.0%, 6/15/22 (144A) $ 3,578,800
---------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 3,578,800
-------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.9%
Internet Software & Services -- 0.7%
3,750,000 WebMD Health Corp., 1.5%, 12/1/20 $ 3,883,594
3,135,000 WebMD Health Corp., 2.5%, 1/31/18 3,144,797
---------------
$ 7,028,391
-------------------------------------------------------------------------------------------------
Application Software -- 0.2%
1,025,000 Mentor Graphics Corp., 4.0%, 4/1/31 $ 1,406,172
---------------
Total Software & Services $ 8,434,563
-------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.1%
Electronic Components -- 0.1%
1,605,000 Vishay Intertechnology, Inc., 2.25%,
5/15/41 (144A) $ 1,125,506
---------------
Total Technology Hardware & Equipment $ 1,125,506
-------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.4%
Semiconductor Equipment -- 0.2%
2,140,000 SunEdison, Inc., 2.625%, 6/1/23 (144A) $ 996,438
1,970,000 SunEdison, Inc., 3.375%, 6/1/25 (144A) 913,588
---------------
$ 1,910,026
-------------------------------------------------------------------------------------------------
Semiconductors -- 0.2%
2,290,000 SunPower Corp., 0.875%, 6/1/21 $ 2,093,919
535,000 Suntech Power Holdings Co., Ltd., 3.0%,
3/15/13 (d) 1,872
---------------
$ 2,095,791
---------------
Total Semiconductors & Semiconductor
Equipment $ 4,005,817
-------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $50,923,326) $ 38,738,048
-------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 1.7%
TRANSPORTATION -- 0.1%
Air Freight & Logistics -- 0.1%
3,428 CEVA Group Plc* $ 1,542,676
---------------
Total Transportation $ 1,542,676
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 17
Schedule of Investments | 10/31/15 (continued)
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
BANKS -- 0.4%
Diversified Banks -- 0.4%
140,119 7.12 Citigroup, Inc., Floating Rate Note (Perpetual) $ 3,863,081
---------------
Total Banks $ 3,863,081
-------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.1%
Consumer Finance -- 1.1%
1,550 Ally Financial, Inc., 7.0% (Perpetual) (144A) $ 1,587,442
355,600 8.12 GMAC Capital Trust I, Floating Rate
Note, 2/15/40 9,185,148
---------------
$ 10,772,590
---------------
Total Diversified Financials $ 10,772,590
-------------------------------------------------------------------------------------------------
INSURANCE -- 0.0%+
Reinsurance -- 0.0%+
33,500 Lorenz Re, Ltd., Variable Rate Notes,
(Perpetual) (f) $ 83,750
---------------
Total Insurance $ 83,750
-------------------------------------------------------------------------------------------------
UTILITIES -- 0.1%
Electric Utilities -- 0.1%
34,632 PPL Capital Funding, Inc., 5.9%, 4/30/73 $ 877,575
---------------
Total Utilities $ 877,575
-------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $18,024,175) $ 17,139,672
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
Shares
-------------------------------------------------------------------------------------------------
COMMON STOCKS -- 1.5%
ENERGY -- 0.1%
Oil & Gas Exploration & Production -- 0.1%
1,663,186 Halcon Resources Corp.* $ 1,166,060
---------------
Total Energy $ 1,166,060
-------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.0%+
Industrial Machinery -- 0.0%+
156,027 Liberty Tire Recycling LLC (e) $ 1,560
---------------
Total Capital Goods $ 1,560
-------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.0%+
Diversified Support Services -- 0.0%+
63 IAP Worldwide Services, Inc. $ 88,095
---------------
Total Commercial Services & Supplies $ 88,095
-------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.1%
Air Freight & Logistics -- 0.1%
1,584 CEVA Group Plc* $ 712,642
---------------
Total Transportation $ 712,642
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global High Yield Fund | Annual Report | 10/31/15
-------------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.5%
Automobile Manufacturers -- 0.5%
321,346 Ford Motor Co. $ 4,759,134
---------------
Total Automobiles & Components $ 4,759,134
-------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.0%+
Education Services -- 0.0%+
11,492 Cengage Learning Holdings II, Inc. $ 278,681
---------------
Total Consumer Services $ 278,681
-------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Specialized Finance -- 0.1%
894 Panolam Holdings Co.* (e) $ 742,020
---------------
Total Diversified Financials $ 742,020
-------------------------------------------------------------------------------------------------
INSURANCE -- 0.7%
Life & Health Insurance -- 0.7%
4,840 A Preference Tig Finco (e) $ 1,195
4,613,242 B Preference Tig Finco (e) 6,975,190
132,750 TopCo. Ltd. (e) 32,770
---------------
$ 7,009,155
---------------
Total Insurance $ 7,009,155
-------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.0%+
Semiconductors -- 0.0%+
158,800 LDK Solar Co., Ltd. (A.D.R.)* $ 10,100
---------------
Total Semiconductors & Semiconductor
Equipment $ 10,100
-------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $14,833,990) $ 14,767,447
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited)
-------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 0.9%
TRANSPORTATION -- 0.1%
Airlines -- 0.1%
1,213,302 Continental Airlines 1998-1 Class B Pass
Through Trust, 6.748%, 9/15/18 $ 1,259,529
---------------
Total Transportation $ 1,259,529
-------------------------------------------------------------------------------------------------
BANKS -- 0.2%
Thrifts & Mortgage Finance -- 0.2%
1,241,210 1.17 Countrywide Asset-Backed Certificates, Floating
Rate Note, 11/25/34 $ 1,175,534
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 19
Schedule of Investments | 10/31/15 (continued)
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance (continued)
508,991 Westgate Resorts 2014-A LLC, 6.25%,
10/20/26 (144A) $ 507,718
---------------
$ 1,683,252
---------------
Total Banks $ 1,683,252
-------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.6%
Other Diversified Financial Services -- 0.2%
5,983,548 0.68 Aircraft Finance Trust, Floating Rate
Note, 5/15/24 $ 1,600,599
-------------------------------------------------------------------------------------------------
Specialized Finance -- 0.4%
699,367 0.63 Lease Investment Flight Trust, Floating Rate
Note, 7/15/31 $ 384,652
8,029,398 0.59 Lease Investment Flight Trust, Floating Rate
Note, 7/15/31 3,854,111
---------------
$ 4,238,763
---------------
Total Diversified Financials $ 5,839,362
-------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $11,970,031) $ 8,782,143
-------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 2.3%
MATERIALS -- 0.4%
Forest Products -- 0.4%
4,315,000 TimberStar Trust I, 7.5296%, 10/15/36 (144A) $ 4,402,077
---------------
Total Materials $ 4,402,077
-------------------------------------------------------------------------------------------------
BANKS -- 1.9%
Thrifts & Mortgage Finance -- 1.9%
1,500,000 3.21 Citigroup Commercial Mortgage Trust 2014-GC23
REMICS, Floating Rate Note, 7/12/47 (144A) $ 977,881
1,480,000 5.96 COBALT CMBS Commercial Mortgage Trust
2007-C3, Floating Rate Note, 5/15/46 1,404,018
455,000 5.96 COBALT CMBS Commercial Mortgage Trust
2007-C3, Floating Rate Note, 5/15/46 411,888
9,000,000 7.08 Credit Suisse First Boston Mortgage Securities
Corp., Floating Rate Note, 12/15/35 (144A) 6,953,310
1,175,000 3.64 EQTY 2014-INNS Mortgage Trust, Floating
Rate Note, 5/8/31 (144A) 1,163,209
777,948 4.94 EQTY 2014-MZ Mezzanine Trust, Floating
Rate Note, 5/8/31 (144A) 770,464
1,500,000 4.94 GS Mortgage Securities Corp., II Series 2005-GG4,
Floating Rate Note, 7/10/39 1,469,449
717,279 Homeowner Assistance Program Reverse
Mortgage Loan Trust 2013-RM1, 4.0%,
5/26/53 (144A) 705,838
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global High Yield Fund | Annual Report | 10/31/15
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance (continued)
2,100,000 6.01 JP Morgan Chase Commercial Mortgage
Securities Trust 2007-LDP12, Floating Rate
Note, 2/15/51 $ 2,124,473
1,908,531 2.64 JP Morgan Mortgage Trust 2005-A1, Floating
Rate Note, 2/25/35 1,783,244
775,000 6.14 Wachovia Bank Commercial Mortgage Trust
Series 2007-C34, Floating Rate Note, 5/15/46 800,021
---------------
$ 18,563,795
---------------
Total Banks $ 18,563,795
-------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $24,560,883) $ 22,965,872
-------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 78.1%
ENERGY -- 9.1%
Oil & Gas Drilling -- 0.3%
3,765,000 Unit Corp., 6.625%, 5/15/21 $ 3,012,000
-------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.0%+
MXN 8,650,000 Petroleos Mexicanos, 7.19%, 9/12/24 (144A) 92 $ 491,892
-------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 6.8%
1,750,000 Antero Resources Corp., 5.625%, 6/1/23 (144A) $ 1,610,000
2,165,000 Bonanza Creek Energy, Inc., 5.75%, 2/1/23 1,450,550
770,000 Bonanza Creek Energy, Inc., 6.75%, 4/15/21 554,400
2,830,000 BreitBurn Energy Partners LP, 7.875%, 4/15/22 1,061,250
3,225,000 Carrizo Oil & Gas, Inc., 6.25%, 4/15/23 3,067,781
2,341,000 Chaparral Energy, Inc., 7.625%, 11/15/22 772,530
4,240,000 Comstock Resources, Inc., 7.75%, 4/1/19 890,400
374,000 Comstock Resources, Inc., 9.5%, 6/15/20 82,280
3,695,000 Denbury Resources, Inc., 5.5%, 5/1/22 2,586,500
5,605,000 EP Energy LLC, 9.375%, 5/1/20 4,876,350
4,980,000 EPL Oil & Gas, Inc., 8.25%, 2/15/18 1,568,700
3,260,000 GeoPark Latin America, Ltd., Agencia en Chile,
7.5%, 2/11/20 (144A) 2,241,250
4,990,000 Gulfport Energy Corp., 7.75%, 11/1/20 4,940,100
4,190,000 Halcon Resources Corp., 8.875%, 5/15/21 1,406,269
3,790,000 Hilcorp Energy I LP, 5.0%, 12/1/24 (144A) 3,429,950
1,000,000 KazMunayGas National Co., JSC, 4.4%,
4/30/23 (144A) 880,000
155,000 Linn Energy LLC, 7.75%, 2/1/21 35,650
1,719,000 Memorial Production Partners LP, 6.875%, 8/1/22 1,082,970
3,000,000 Memorial Production Partners LP, 7.625%, 5/1/21 2,010,000
1,525,000 Memorial Resource Development Corp.,
5.875%, 7/1/22 1,437,312
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 21
Schedule of Investments | 10/31/15 (continued)
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production (continued)
2,300,000 Midstates Petroleum Co., Inc., 9.25%, 6/1/21 $ 414,000
3,995,000 Noble Energy, Inc., 5.875%, 6/1/22 4,024,072
1,935,000 Noble Energy, Inc., 5.875%, 6/1/24 1,943,017
2,350,000 Novatek OAO via Novatek Finance, Ltd.,
4.422%, 12/13/22 (144A) 2,103,720
7,570,000 Pacific Exploration and Production Corp.,
5.375%, 1/26/19 (144A) 3,292,950
3,250,000 PDC Energy, Inc., 7.75%, 10/15/22 3,266,250
2,250,000 Penn Virginia Corp., 8.5%, 5/1/20 652,500
3,265,000 Sanchez Energy Corp., 6.125%, 1/15/23 2,367,125
1,500,000 Sanchez Energy Corp., 7.75%, 6/15/21 1,192,500
455,000 SM Energy Co., 5.0%, 1/15/24 408,362
2,410,000 Swift Energy Co., 8.875%, 1/15/20 578,400
5,215,000 Whiting Canadian Holding Co., ULC,
8.125%, 12/1/19 5,254,112
1,525,000 WPX Energy, Inc., 7.5%, 8/1/20 1,425,875
3,375,000 WPX Energy, Inc., 8.25%, 8/1/23 3,172,500
---------------
$ 66,079,625
-------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.6%
4,025,000 Calumet Specialty Products Partners LP,
6.5%, 4/15/21 $ 3,743,250
2,113,684 5.96 EP PetroEcuador via Noble Sovereign Funding I,
Ltd., Floating Rate Note, 9/24/19 1,680,379
---------------
$ 5,423,629
-------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.4%
2,645,000 Global Partners LP, 7.0%, 6/15/23 $ 2,486,300
NOK 13,000,000 6.46 Golar LNG Partners LP, Floating Rate
Note, 10/12/17 1,538,860
2,385,000 ONEOK, Inc., 7.5%, 9/1/23 2,355,188
4,000,000 Sabine Pass Liquefaction LLC, 5.625%, 2/1/21 3,970,000
4,350,000 Targa Resources Partners LP, 4.25%, 11/15/23 3,806,250
---------------
$ 14,156,598
-------------------------------------------------------------------------------------------------
Coal & Consumable Fuels -- 0.0%+
315,000 Alpha Natural Resources, Inc., 6.0%, 6/1/19 (d) $ 10,238
4,435,000 James River Coal Co., 7.875%, 4/1/19 (d) 2,306
---------------
$ 12,544
---------------
Total Energy $ 89,176,288
-------------------------------------------------------------------------------------------------
MATERIALS -- 9.2%
Commodity Chemicals -- 1.2%
9,820,000 Rain CII Carbon LLC, 8.0%, 12/1/18 (144A) $ 8,549,488
4,635,000 Tronox Finance LLC, 7.5%, 3/15/22 (144A) 3,279,262
---------------
$ 11,828,750
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global High Yield Fund | Annual Report | 10/31/15
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.9%
460,000 Blue Cube Spinco, Inc., 10.0%, 10/15/25 (144A) $ 499,100
460,000 Blue Cube Spinco, Inc., 9.75%, 10/15/23 (144A) 495,650
EURO 7,225,000 Ineos Finance Plc, 4.0%, 5/1/23 7,634,108
---------------
$ 8,628,858
-------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.5%
EURO 4,325,000 INEOS Group Holdings SA, 5.75%,
2/15/19 (144A) $ 4,746,030
-------------------------------------------------------------------------------------------------
Construction Materials -- 0.1%
820,000 Union Andina de Cementos SAA, 5.875%,
10/30/21 (144A) $ 821,025
-------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 2.4%
EURO 434,492 Ardagh Finance Holdings SA, 8.375% (0.00%
cash, 8.375% PIK), 6/15/19 (144A) (PIK) $ 497,353
3,223,023 Ardagh Finance Holdings SA, 8.625% (0.00%
Cash, 8.625% PIK), 6/15/19 (144A) (PIK) 3,376,117
423,529 Ardagh Packaging Finance Plc, 7.0%,
11/15/20 (144A) 424,588
EURO 2,100,000 Ardagh Packaging Finance Plc, 9.25%,
10/15/20 (144A) 2,426,355
2,775,000 Ball Corp., 5.25%, 7/1/25 2,820,094
EURO 725,000 Horizon Holdings I SASU, 7.25%, 8/1/23 (144A) 829,922
EURO 950,000 Horizon Holdings III SASU, 5.125%,
8/1/22 (144A) 1,087,442
7,490,000 Reynolds Group Issuer, Inc., 8.5%, 5/15/18 7,555,538
3,785,000 Reynolds Group Issuer, Inc., 9.875%, 8/15/19 3,983,712
---------------
$ 23,001,121
-------------------------------------------------------------------------------------------------
Paper Packaging -- 0.3%
3,355,000 AEP Industries, Inc., 8.25%, 4/15/19 $ 3,455,650
-------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.0%
6,210,000 Ausdrill Finance Pty, Ltd., 6.875%,
11/1/19 (144A) $ 4,486,725
5,450,000 FMG Resources August 2006 Pty, Ltd., 9.75%,
3/1/22 (144A) 5,422,750
4,000,000 MMC Norilsk Nickel OJSC via MMC Finance,
Ltd., 5.55%, 10/28/20 (144A) 4,017,088
700,000 MMC Norilsk Nickel OJSC via MMC Finance,
Ltd., 6.625%, 10/14/22 (144A) 717,500
1,560,000 Prince Mineral Holding Corp., 11.5%,
12/15/19 (144A) 1,310,400
5,145,000 Vedanta Resources Plc, 8.25%, 6/7/21 (144A) 4,116,000
---------------
$ 20,070,463
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 23
Schedule of Investments | 10/31/15 (continued)
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Precious Metals & Minerals -- 0.2%
1,825,000 Fresnillo Plc, 5.5%, 11/13/23 (144A) $ 1,916,250
-------------------------------------------------------------------------------------------------
Steel -- 1.1%
2,800,000 Cliffs Natural Resources, Inc., 8.25%,
3/31/20 (144A) $ 2,506,000
2,300,000 EVRAZ Plc, 7.50%, 11/15/19 2,190,750
4,340,000 JMC Steel Group, Inc., 8.25%, 3/15/18 (144A) 2,951,200
2,950,000 Metalloinvest Finance, Ltd., 5.625%,
4/17/20 (144A) 2,809,875
EURO 135,483 0.00 New World Resources NV, Floating Rate
Note, 10/7/20 (e) 31,315
EURO 101,612 0.00 New World Resources NV, Floating Rate
Note, 10/7/20 (e) 14,539
---------------
$ 10,503,679
-------------------------------------------------------------------------------------------------
Paper Products -- 0.5%
2,025,000 Mercer International, Inc., 7.0%, 12/1/19 $ 2,065,500
3,735,000 Resolute Forest Products, Inc., 5.875%, 5/15/23 2,782,575
---------------
$ 4,848,075
---------------
Total Materials $ 89,819,901
-------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 3.6%
Aerospace & Defense -- 0.5%
1,335,000 DigitalGlobe, Inc., 5.25%, 2/1/21 (144A) $ 1,200,939
2,433,000 DynCorp International, Inc., 10.375%, 7/1/17 1,922,070
EURO 2,240,000 TA MFG., Ltd., 3.625%, 4/15/23 2,345,829
---------------
$ 5,468,838
-------------------------------------------------------------------------------------------------
Building Products -- 0.7%
6,750,000 Griffon Corp., 5.25%, 3/1/22 $ 6,631,875
-------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.6%
EURO 640,000 Abengoa Finance SAU, 6.0%, 3/31/21 (144A) $ 299,729
6,900,000 Abengoa Finance SAU, 8.875%, 11/1/17 (144A) 3,519,000
6,450,000 Empresas ICA SAB de CV, 8.9%, 2/4/21 (144A) 1,789,875
---------------
$ 5,608,604
-------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.3%
3,250,000 General Cable Corp., 5.75%, 10/1/22 $ 2,803,125
-------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.5%
2,980,000 JB Poindexter & Co., Inc., 9.0%, 4/1/22 (144A) $ 3,151,350
2,800,000 Magnesita Finance, Ltd., 8.625% (Perpetual)
(144A) 1,722,000
---------------
$ 4,873,350
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global High Yield Fund | Annual Report | 10/31/15
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.6%
4,440,000 Apex Tool Group LLC, 7.0%, 2/1/21 (144A) $ 3,574,200
3,280,924 Liberty Tire Recycling LLC, 11.0% (0.0% cash,
11.0% PIK), 3/31/21 (144A) (PIK) (e) 2,099,791
---------------
$ 5,673,991
-------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.4%
4,365,000 WESCO Distribution, Inc., 5.375%, 12/15/21 $ 4,223,138
---------------
Total Capital Goods $ 35,282,921
-------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.1%
Diversified Support Services -- 0.1%
1,475,000 NANA Development Corp., 9.5%, 3/15/19 (144A) $ 1,357,000
---------------
Total Commercial Services & Supplies $ 1,357,000
-------------------------------------------------------------------------------------------------
TRANSPORTATION -- 3.0%
Airlines -- 0.7%
3,525,000 Gol LuxCo SA, 8.875%, 1/24/22 (144A) $ 1,775,719
2,050,000 Guanay Finance, Ltd., 6.0%, 12/15/20 (144A) 2,070,500
3,250,000 TAM Capital 3, Inc., 8.375%, 6/3/21 (144A) 2,616,250
---------------
$ 6,462,469
-------------------------------------------------------------------------------------------------
Marine -- 0.5%
2,700,000 Far East Capital, Ltd. SA, 8.0%, 5/2/18 $ 1,655,046
3,650,000 Navios South American Logistics, Inc., 7.25%,
5/1/22 (144A) 3,070,562
---------------
$ 4,725,608
-------------------------------------------------------------------------------------------------
Railroads -- 0.5%
3,370,000 Florida East Coast Holdings Corp., 6.75%,
5/1/19 (144A) $ 3,394,432
EURO 1,325,000 Russian Railways via RZD Capital Plc, 3.3744%,
5/20/21 1,345,192
---------------
$ 4,739,624
-------------------------------------------------------------------------------------------------
Trucking -- 0.1%
5,950,479 Inversiones Alsacia SA, 8.0%, 12/31/18 (144A) $ 1,487,620
-------------------------------------------------------------------------------------------------
Airport Services -- 0.9%
2,774,625 Aeropuertos Argentina 2000 SA, 10.75%,
12/1/20 (144A) $ 2,864,523
6,100,000 Aguila 3 SA, 7.875%, 1/31/18 (144A) 6,237,250
---------------
$ 9,101,773
-------------------------------------------------------------------------------------------------
Highways & Railtracks -- 0.3%
MXN 47,000,000 Red de Carreteras de Occidente SAPIB de CV,
9.0%, 6/10/28 (144A) $ 2,782,868
---------------
Total Transportation $ 29,299,962
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 25
Schedule of Investments | 10/31/15 (continued)
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.6%
Auto Parts & Equipment -- 0.2%
1,462,000 Nexteer Automotive Group, Ltd., 5.875%,
11/15/21 (144A) $ 1,476,620
-------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.4%
2,475,000 Omega US Sub LLC, 8.75%, 7/15/23 (144A) $ 2,329,594
1,670,000 ZF North America Capital, Inc., 4.75%,
4/29/25 (144A) 1,638,688
---------------
$ 3,968,282
---------------
Total Automobiles & Components $ 5,444,902
-------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 2.1%
Homebuilding -- 1.6%
1,695,000 Brookfield Residential Properties, Inc., 6.5%,
12/15/20 (144A) $ 1,699,238
3,540,000 CalAtlantic Group, Inc., 6.25%, 12/15/21 3,832,050
9,802,000 Desarrolladora Homex SAB de CV, 0.0%,
12/11/19 (144A) (d) 196,040
4,450,000 Lennar Corp., 4.75%, 11/15/22 4,450,000
2,200,000 Rialto Holdings LLC, 7.0%, 12/1/18 (144A) 2,255,000
2,625,000 Taylor Morrison Communities, Inc., 5.875%,
4/15/23 2,657,812
---------------
$ 15,090,140
-------------------------------------------------------------------------------------------------
Leisure Products -- 0.5%
5,000,000 Icon Health & Fitness, Inc., 11.875%,
10/15/16 (144A) $ 4,968,750
---------------
Total Consumer Durables & Apparel $ 20,058,890
-------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 3.0%
Casinos & Gaming -- 1.9%
EURO 4,921,360 Cirsa Funding Luxembourg SA, 8.75%,
5/15/18 (144A) $ 5,484,403
80,890 Mashantucket Western Pequot Tribe, 6.5%
(1.0% cash, 5.50% PIK), 7/1/36 (PIK) (d)* 404
14,700,000 Scientific Games International, Inc.,
10.0%, 12/1/22 13,009,499
625,000 Scientific Games International, Inc.,
6.25%, 9/1/20 434,375
---------------
$ 18,928,681
-------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.6%
2,540,000 Sabre GLBL, Inc., 5.375%, 4/15/23 (144A) $ 2,578,100
2,860,000 Viking Cruises, Ltd., 8.5%, 10/15/22 (144A) 3,110,250
---------------
$ 5,688,350
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global High Yield Fund | Annual Report | 10/31/15
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Restaurants -- 0.1%
BRL 4,250,000 Arcos Dorados Holdings, Inc., 10.25%,
7/13/16 (144A) $ 935,128
-------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.4%
EURO 3,285,000 Boing Group Financing Plc, 6.625%,
7/15/19 (144A) $ 3,398,697
---------------
Total Consumer Services $ 28,950,856
-------------------------------------------------------------------------------------------------
MEDIA -- 1.1%
Broadcasting -- 0.6%
EURO 5,000,000 United Group BV, 7.875%, 11/15/20 (144A) $ 5,880,222
-------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.2%
2,500,000 Intelsat Luxembourg SA, 7.75%, 6/1/21 $ 1,475,000
1,075,000 Ziggo Bond Finance BV, 5.875%, 1/15/25 (144A) 1,023,938
---------------
$ 2,498,938
-------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.1%
1,000,000 WMG Acquisition Corp., 6.75%, 4/15/22 (144A) $ 925,630
-------------------------------------------------------------------------------------------------
Publishing -- 0.2%
1,675,000 MPL 2 Acquisition Canco, Inc., 9.875%,
8/15/18 (144A) $ 1,758,750
---------------
Total Media $ 11,063,540
-------------------------------------------------------------------------------------------------
RETAILING -- 1.3%
Distributors -- 0.1%
1,250,000 LKQ Corp., 4.75%, 5/15/23 $ 1,228,125
-------------------------------------------------------------------------------------------------
Department Stores -- 0.5%
2,285,000 Argos Merger Sub, Inc., 7.125%, 3/15/23 (144A) $ 2,404,962
2,950,000 Grupo Famsa SAB de CV, 7.25%, 6/1/20 (144A) 2,677,125
---------------
$ 5,082,087
-------------------------------------------------------------------------------------------------
Computer & Electronics Retail -- 0.3%
3,010,000 Rent-A-Center, Inc., 4.75%, 5/1/21 $ 2,468,200
-------------------------------------------------------------------------------------------------
Specialty Stores -- 0.4%
4,365,000 Outerwall, Inc., 5.875%, 6/15/21 $ 4,026,712
---------------
Total Retailing $ 12,805,124
-------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.2%
Food Retail -- 0.2%
2,535,000 C&S Group Enterprises LLC, 5.375%,
7/15/22 (144A) $ 2,319,525
---------------
Total Food & Staples Retailing $ 2,319,525
-------------------------------------------------------------------------------------------------
Food, Beverage & Tobacco -- 9.4%
Distillers & Vintners -- 0.5%
4,829,992 CEDC Finance Corp., International, Inc., 10.0%,
4/30/18 (Step) $ 4,383,218
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 27
Schedule of Investments | 10/31/15 (continued)
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Agricultural Products -- 0.1%
1,625,000 Tonon Luxembourg SA, 10.5%, 5/14/24 (144A) $ 1,072,500
-------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 8.2%
1,960,000 Agrokor dd, 8.875%, 2/1/20 (144A) $ 2,096,416
EURO 3,200,000 Agrokor dd, 9.875%, 5/1/19 (144A) 3,776,304
4,450,000 CFG Investment SAC, 9.75%, 7/30/19 (144A) 2,540,950
1,246,000 Chiquita Brands International, Inc., 7.875%,
2/1/21 1,322,318
EURO 6,945,000 Darling Global Finance BV, 4.75%, 5/30/22
(144A) 7,134,082
6,800,000 FAGE Dairy Industry SA, 9.875%, 2/1/20 (144A) 7,089,000
800,000 JB y Co SA de CV, 3.75%, 5/13/25 (144A) 779,880
2,020,000 JBS Investments GmbH, 7.75%, 10/28/20 (144A) 2,152,310
3,135,000 JBS USA LLC, 5.75%, 6/15/25 (144A) 3,033,112
3,615,000 Marfrig Holdings Europe BV, 6.875%, 6/24/19
(144A) 3,298,688
12,248,000 Marfrig Overseas, Ltd., 9.5%, 5/4/20 (144A) 2,248,000
6,300,000 MHP SA, 8.25%, 4/2/20 (144A) 5,435,640
3,755,000 Minerva Luxembourg SA, 12.25%, 2/10/22
(144A) 4,055,400
11,550,000 Minerva Luxembourg SA, 7.75%, 1/31/23 (144A) 1,405,625
6,500,000 Pesquera Exalmar SAA, 7.375%, 1/31/20 (144A) 4,745,000
5,340,000 Post Holdings, Inc., 6.0%, 12/15/22 (144A) 5,366,700
1,375,000 Post Holdings, Inc., 6.75%, 12/1/21 (144A) 1,423,125
1,675,000 Post Holdings, Inc., 7.375%, 2/15/22 1,764,780
800,000 Post Holdings, Inc., 7.75%, 3/15/24 (144A) 852,000
---------------
$ 80,519,330
-------------------------------------------------------------------------------------------------
Tobacco -- 0.6%
7,165,000 Alliance One International, Inc., 9.875%, 7/15/21 $ 6,170,856
---------------
Total Food, Beverage & Tobacco $ 92,145,904
-------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 2.3%
Health Care Supplies -- 1.0%
5,750,000 ConvaTec Healthcare E SA, 10.5%,
12/15/18 (144A) $ 5,944,062
3,200,000 Immucor, Inc., 11.125%, 8/15/19 3,280,000
---------------
$ 9,224,062
-------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.8%
2,555,000 Amsurg Corp., 5.625%, 7/15/22 $ 2,510,288
1,915,000 CHS, 6.875%, 2/1/22 1,929,362
1,320,000 Kindred Healthcare Inc., 8.0%, 1/15/20 1,320,000
2,400,000 Kindred Healthcare Inc., 6.375%, 4/15/22 2,268,000
---------------
$ 8,027,650
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global High Yield Fund | Annual Report | 10/31/15
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Managed Health Care -- 0.5%
4,930,000 WellCare Health Plans, Inc., 5.75%, 11/15/20 $ 5,151,850
---------------
Total Health Care Equipment & Services $ 22,403,562
-------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 1.8%
Pharmaceuticals -- 1.8%
4,980,000 DPx Holdings BV, 7.5%, 2/1/22 (144A) $ 5,079,600
6,165,000 Endo Finance LLC, 5.375%, 1/15/23 (144A) 6,046,016
EURO 2,675,000 Valeant Pharmaceuticals International, Inc.,
4.5%, 5/15/23 2,380,417
5,305,000 Valeant Pharmaceuticals International, Inc.,
5.875%, 5/15/23 (144A) 4,466,147
---------------
$ 17,972,180
---------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 17,972,180
-------------------------------------------------------------------------------------------------
BANKS -- 4.9%
Diversified Banks -- 4.2%
3,485,000 9.25 Access Bank Plc, Floating Rate Note,
6/24/21 (144A) $ 3,014,525
820,000 9.75 Banco Macro SA, Floating Rate Note, 12/18/36 815,900
2,000,000 Banco Nacional de Costa Rica, 6.25%,
11/1/23 (144A) 1,960,000
2,400,000 6.38 Banco Santander SA, Floating Rate Note
(Perpetual) 2,346,000
2,525,000 6.50 Bank of America Corp., Floating Rate
Note, 10/23/49 2,638,650
3,425,000 6.25 Bank of America Corp., Floating Rate
Note, 9/29/49 3,473,121
1,250,000 BBVA Bancomer SA Texas, 6.75%, 9/30/22
(144A) 1,402,500
2,150,000 5.90 Citigroup, Inc., Floating Rate Note (Perpetual) 2,139,250
1,200,000 5.88 Citigroup, Inc., Floating Rate Note (Perpetual) 1,187,712
1,500,000 6.62 Credit Agricole SA, Floating Rate Note
(Perpetual) (144A) 1,477,500
3,525,000 6.50 ING Groep NV, Floating Rate Note, 12/29/49 3,390,609
INR 42,350,000 Inter-American Development Bank, 6.0%, 9/5/17 639,703
4,825,000 7.70 Intesa Sanpaolo S.p.A., Floating Rate Note,
12/29/49 (144A) 4,879,281
2,475,000 Macquarie Bank, Ltd., 4.875%, 6/10/25 (144A) 2,460,734
1,020,000 7.50 Royal Bank of Scotland Group Plc, Floating Rate
Note (Perpetual) 1,055,700
750,000 Sberbank of Russia Via SB Capital SA, 5.25%,
5/23/23 (144A) 660,938
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 29
Schedule of Investments | 10/31/15 (continued)
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Diversified Banks (continued)
1,355,000 Trade & Development Bank of Mongolia LLC,
9.375%, 5/19/20 (144A) $ 1,351,904
2,725,000 Vnesheconombank Via VEB Finance Plc, 6.902%,
7/9/20 (144A) 2,780,372
775,000 VTB Bank OJSC Via VTB Capital SA, 6.95%,
10/17/22 (144A) 741,226
2,375,000 5.88 Wells Fargo & Co., Floating Rate Note
(Perpetual) 2,512,038
---------------
$ 40,927,663
-------------------------------------------------------------------------------------------------
Regional Banks -- 0.3%
2,555,000 6.75 The PNC Financial Services Group, Inc., Floating
Rate Note (Perpetual) $ 2,753,549
-------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.4%
4,000,000 Alfa Bank AO Via Alfa Bond Issuance Plc, 7.5%,
9/26/19 (144A) $ 4,033,240
---------------
Total Banks $ 47,714,452
-------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.0%
Other Diversified Financial Services -- 0.3%
INR 178,400,000 European Bank for Reconstruction &
Development, 6.0%, 3/3/16 $ 2,715,767
-------------------------------------------------------------------------------------------------
Specialized Finance -- 1.5%
3,045,000 Cantor Fitzgerald LP, 7.875%, 10/15/19 (144A) $ 3,329,878
EURO 3,695,000 EC Finance Plc, 5.125%, 7/15/21 (144A) 4,229,578
4,870,000 Nationstar Mortgage LLC, 6.5%, 6/1/22 4,383,000
3,000,000 Nationstar Mortgage LLC, 6.5%, 7/1/21 2,745,000
---------------
$ 14,687,456
-------------------------------------------------------------------------------------------------
Consumer Finance -- 1.8%
1,200,000 Ally Financial, Inc., 4.125%, 3/30/20 $ 1,239,000
150,000 Ally Financial, Inc., 4.625%, 5/19/22 156,000
INR 241,840,000 International Finance Corp., 7.75%, 12/3/16 3,729,833
INR 240,670,000 International Finance Corp., 8.25%, 6/10/21 3,884,240
4,263,547 Tarjeta Naranja SA, 9.0%, 1/28/17 (144A) 4,231,570
4,000,000 Unifin Financiera SAPI de CV SOFOM ENR,
6.25%, 7/22/19 (144A) 3,860,000
---------------
$ 17,100,643
-------------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.4%
3,800,000 JBS Investment Management, Ltd., 7.25%,
4/3/24 $ 3,904,500
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global High Yield Fund | Annual Report | 10/31/15
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 1.0%
3,550,000 5.55 Morgan Stanley, Floating Rate Note (Perpetual) $ 3,545,562
5,650,000 UBS AG, 7.625%, 8/17/22 6,534,677
---------------
$ 10,080,239
---------------
Total Diversified Financials $ 48,488,605
-------------------------------------------------------------------------------------------------
INSURANCE -- 5.5%
Life & Health Insurance -- 0.2%
GBP 954,047 TIG FINCO Plc, 8.75%, 4/2/20 $ 1,360,230
GBP 168,361 8.50 TIG FINCO Plc, Floating Rate Note,
3/2/20 (144A) 271,730
---------------
$ 1,631,960
-------------------------------------------------------------------------------------------------
Reinsurance -- 5.3%
450,000 5.95 Alamo Re, Ltd., Floating Rate Note, 6/7/18
(Cat Bond) (144A) $ 467,190
3,314,020 Altair Re, Variable Rate Notes, 6/30/16 (f) 234,301
2,400,000 Altair Re, Variable Rate Notes, 6/30/17 (f) 2,523,120
1,300,000 Arlington Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 8/31/16 (f) 1,344,200
1,000,000 Berwick Segregated Account (Kane SAC Ltd.),
Variable Rate Note, 1/22/16 (f) 1,125,700
475,000 4.37 Blue Danube II, Ltd., Floating Rate Note,
5/23/16 (Cat Bond) (144A) 472,578
3,900,000 Carnoustie Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 2/19/16 (f) 4,275,570
1,400,000 Clarendon Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 6/15/16 (f) 1,388,100
550,000 0.00 Compass Re II, Ltd., Floating Rate Note,
6/8/16 (Cat Bond) 547,910
2,375,100 Exeter Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 1/7/16 (f) 2,583,634
1,300,000 Fairfield Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 2/2/16 (f) 1,280,890
5,400,000 Gullane Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 1/22/17 (f) 5,965,920
1,093,300 Hereford Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 1/7/16 (f) 1,291,953
1,000,000 3.76 Kilimanjaro Re, Ltd., Floating Rate Note,
11/25/19 (Cat Bond) (144A) 991,100
500,000 Lahinch Re, Variable Rate Notes, 6/15/16 (f) 501,450
2,400,000 Lorenz Re, Ltd., Variable Rate Notes, 3/31/18 (f) 2,565,360
1,067,200 Muirfield Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 1/12/16 (f) 1,194,837
3,900,000 Pangaea Re, Series 2015-1, Principal at Risk
Notes, 2/1/19 (f) 4,447,950
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 31
Schedule of Investments | 10/31/15 (continued)
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Reinsurance (continued)
4,500,000 Pangaea Re, Series 2015-2, Principal at Risk
Notes, 11/30/19 (f) $ 4,668,300
4,070,000 Pangaea Re, Variable Rate Notes, 7/1/18 (f) 73,260
1,300,000 Prestwick Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 7/1/16 (f) 1,373,970
13,467 Sector Re V, Ltd., Variable Rate Notes, 12/1/17
(144A) (f) 57,800
950,000 Sector Re V, Ltd., Variable Rate Notes, 12/1/19
(144A) (f) 1,079,960
1,721 Sector Re V, Ltd., Variable Rate Notes, 3/30/19
(144A) (f) 40,471
2,000,000 Silverton Re, Ltd., Variable Rate Notes, 9/16/16
(144A) (f) 40,000
1,350,000 Silverton Re, Ltd., Variable Rate Notes, 9/18/17
(144A) (f) 1,565,190
2,600,000 St. Andrews Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 1/22/16 (f) 2,788,760
JPY 98,019,476 Tralee Segregated Account (Kane SAC Ltd.),
Variable Rate Note, 7/15/17 (f) 811,394
1,101,200 Troon Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 1/12/16 (f) 1,196,123
506,000 Turnberry Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 1/15/16 (f) 513,843
3,800,000 Versutus Ltd., Series 2015-A, Variable Rate
Notes, 12/31/17 (f) 4,407,240
---------------
$ 51,818,074
---------------
Total Insurance $ 53,450,034
-------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.9%
Specialized REIT -- 0.6%
2,608,675 AAF Holdings LLC, 12.0% (144A)
(12.0% cash, 0.0% PIK), 7/1/19 (PIK) $ 2,732,587
1,600,000 Equinix, Inc., 5.375%, 1/1/22 1,671,520
1,455,000 Equinix, Inc., 5.375%, 4/1/23 1,513,200
---------------
$ 5,917,307
-------------------------------------------------------------------------------------------------
Diversified Real Estate Activities -- 0.1%
995,000 Alam Synergy Pte, Ltd., 9.0%, 1/29/19 (144A) $ 955,200
-------------------------------------------------------------------------------------------------
Real Estate Operating Companies -- 1.2%
6,405,000 IRSA Inversiones y Representaciones SA, 8.5%,
2/2/17 (144A) $ 6,405,000
5,750,000 IRSA Propiedades Comerciales SA, 7.875%,
5/11/17 (144A) 5,521,150
---------------
$ 11,926,150
---------------
Total Real Estate $ 18,798,657
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global High Yield Fund | Annual Report | 10/31/15
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.4%
Internet Software & Services -- 0.5%
3,650,000 Cimpress NV, 7.0%, 4/1/22 (144A) $ 3,677,375
700,000 IAC, 4.875%, 11/30/18 719,250
---------------
$ 4,396,625
-------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.7%
2,100,000 Audatex North America, Inc., 6.0%,
6/15/21 (144A) $ 2,114,721
3,100,000 Cardtronics, Inc., 5.125%, 8/1/22 3,007,000
1,700,000 NeuStar, Inc., 4.5%, 1/15/23 1,462,000
---------------
$ 6,583,721
-------------------------------------------------------------------------------------------------
Application Software -- 0.2%
1,945,000 Citrix Systems, Inc., 0.5%, 4/15/19 $ 2,212,438
---------------
Total Software & Services $ 13,192,784
-------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.2%
Communications Equipment -- 0.5%
1,560,000 CommScope Technologies Finance LLC, 6.0%,
6/15/25 (144A) $ 1,583,400
1,475,000 CommScope, Inc., 5.0%, 6/15/21 (144A) 1,484,219
1,315,000 Plantronics, Inc., 5.5%, 5/31/23 (144A) 1,338,012
---------------
$ 4,405,631
-------------------------------------------------------------------------------------------------
Computer Hardware Storage &
Peripherals -- 0.4%
4,121,000 Seagate HDD Cayman, 4.75%, 6/1/23 $ 3,823,748
-------------------------------------------------------------------------------------------------
Electronic Components -- 0.3%
1,000,000 Belden, Inc., 5.25%, 7/15/24 (144A) $ 935,000
EURO 1,800,000 Belden, Inc., 5.5%, 4/15/23 1,983,547
---------------
$ 2,918,547
---------------
Total Technology Hardware & Equipment $ 11,147,926
-------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.3%
Semiconductor Equipment -- 0.2%
1,930,000 Entegris, Inc., 6.0%, 4/1/22 (144A) $ 1,987,900
-------------------------------------------------------------------------------------------------
Semiconductors -- 0.1%
955,000 Advanced Micro Devices, Inc., 6.75%, 3/1/19 $ 735,350
2,329,430 LDK Solar Co., Ltd., 5.535% (cash or PIK),
12/31/18 (PIK) 349,414
---------------
$ 1,084,764
---------------
Total Semiconductors & Semiconductor
Equipment $ 3,072,664
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 33
Schedule of Investments | 10/31/15 (continued)
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 7.3%
Integrated Telecommunication Services -- 3.7%
2,260,000 CenturyLink, Inc., 5.625%, 4/1/25 $ 2,028,350
2,790,000 Cincinnati Bell, Inc., 8.375%, 10/15/20 2,908,575
COP 1,626,000,000 Empresa de Telecomunicaciones de Bogota,
7.0%, 1/17/23 (144A) 493,918
250,000 Frontier Communications Corp., 7.125%, 1/15/23 223,125
2,690,000 Frontier Communications Corp., 8.5%, 4/15/20 2,770,700
10,345,000 Frontier Communications Corp., 8.75%, 4/15/22 9,957,062
500,000 GCI, Inc., 6.75%, 6/1/21 517,500
4,275,000 GCI, Inc., 6.875%, 4/15/25 4,403,250
EURO 1,600,000 Telenet Finance V Luxembourg SCA, 6.25%,
8/15/22 (144A) 1,895,319
6,285,000 Windstream Corp., 7.5%, 6/1/22 5,224,406
6,765,000 Windstream Services LLC, 7.75%, 10/15/20 6,088,500
---------------
$ 36,510,705
-------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 3.6%
2,800,000 Altice Financing SA, 6.5%, 1/15/22 (144A) $ 2,835,000
320,000 Altice Financing SA, 6.625%, 2/15/23 (144A) 320,800
600,000 Altice Finco SA, 8.125%, 1/15/24 (144A) 597,000
3,320,000 Digicel, Ltd., 6.0%, 4/15/21 (144A) 2,988,000
1,500,000 Mobile Telesystems OJSC via MTS International
Funding, Ltd., 5.0%, 5/30/23 (144A) 1,385,625
9,770,000 Sprint Corp., 7.25%, 9/15/21 8,976,188
2,750,000 Unison Ground Lease Funding LLC, 5.78%,
3/16/43 (144A) 2,718,980
7,800,000 Vimpel Communications Via VIP Finance Ireland,
Ltd. OJSC, 7.748%, 2/2/21 (144A) 8,293,132
4,875,000 VimpelCom Holdings BV, 7.5043%, 3/1/22 (144A) 5,130,938
RUB 124,400,000 VimpelCom Holdings BV, 9.0%, 2/13/18 (144A) 1,833,762
---------------
$ 35,079,425
---------------
Total Telecommunication Services $ 71,590,130
-------------------------------------------------------------------------------------------------
UTILITIES -- 3.8%
Electric Utilities -- 2.3%
1,610,000 ContourGlobal Power Holdings SA, 7.125%,
6/1/19 (144A) $ 1,605,975
3,725,000 5.25 Electricite de France SA, Floating Rate Note
(Perpetual) (144A) 3,706,375
711,000 Empresa Distribuidora Y Comercializadora
Norte, 9.75%, 10/25/22 (144A) 642,033
1,830,000 Empresa Electrica Angamos SA, 4.875%,
5/25/29 (144A) 1,717,450
2,995,000 8.13 Enel S.p.A., Floating Rate Note, 9/24/73 (144A) 3,451,738
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global High Yield Fund | Annual Report | 10/31/15
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Electric Utilities (continued)
64,324 FPL Energy National Wind Portfolio LLC, 6.125%,
3/25/19 (144A) $ 64,324
164,149 FPL Energy Wind Funding LLC, 6.876%,
6/27/17 (144A) 160,866
3,760,000 Talen Energy Supply LLC, 4.625%, 7/15/19
(144A) 3,439,648
3,225,000 Talen Energy Supply LLC, 6.5%, 6/1/25 (144A) 2,862,188
5,395,000 TerraForm Power, 9.75%, 8/15/22 (144A) 4,828,525
---------------
$ 22,479,122
-------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.5%
4,582,675 Ormat Funding Corp., 8.25%, 12/30/20 $ 4,582,675
-------------------------------------------------------------------------------------------------
Independent Power Producers & Energy
Traders -- 1.0%
3,000,000 AES Corp., 5.5%, 4/15/25 $ 2,790,000
940,000 Instituto Costarricense de Electricidad, 6.95%,
11/10/21 (144A) 958,800
6,000,000 NRG Energy, Inc., 6.25%, 5/1/24 5,370,000
500,000 Star Energy Geothermal Wayang Windu, Ltd.,
6.125%, 3/27/20 (144A) 486,250
590,000 TerraForm Power Operating LLC, 5.875%,
2/1/23 (144A) 544,275
---------------
$ 10,149,325
---------------
Total Utilities $ 37,211,122
-------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $851,613,886) $ 762,766,929
-------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 4.1%
1,845,000 Africa Finance Corp., 4.375%, 4/29/20 (144A) $ 1,870,830
2,655,000 Banque Cent de Tunisie, 5.75%, 1/30/25 (144A) 2,489,487
1,220,000 Ecuador Government International Bond, 10.5%,
3/24/20 (144A) 1,012,600
2,175,000 Kenya Government International Bond, 5.875%,
6/24/19 (144A) 2,105,182
2,530,000 Kenya Government International Bond, 6.875%,
6/24/24 (144A) 2,345,942
MXN 187,342,112 Mexican Udibonos, 2.0%, 6/9/22 10,995,651
MXN 9,170,369 Mexican Udibonos, 3.5%, 12/14/17 589,785
EURO 2,175,000 Mexico Government International Bond, 4.0%,
3/15/15 2,154,762
1,415,000 Namibia International Bonds, 5.25%,
10/29/25 (144A) 1,400,850
2,753,280 Province of Salta Argentina, 9.5%, 3/16/22
(144A) 2,698,214
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 35
Schedule of Investments | 10/31/15 (continued)
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS (continued)
1,025,000 Provincia de Buenos Aires Argentina, 10.875%,
1/26/21 (144A) $ 1,086,500
1,260,000 Provincia de Buenos Aires Argentina, 9.95%,
6/9/21 (144A) 1,297,800
RON 12,380,000 Romania Government Bond, 5.85%, 4/26/23 3,617,924
RON 610,000 Romania Government Bond, 5.95%, 6/11/21 176,615
RUB 49,399,000 Russian Federal Bond -- OFZ, 7.0%, 8/16/23 656,250
2,000,000 Rwanda International Government Bond, 6.625%,
5/2/23 (144A) 1,929,408
1,360,000 Sri Lanka Government International Bond, 6.85%,
11/3/25 (144A) 1,351,500
3,700,000 Zambia Government International Bond, 5.375%,
9/20/22 (144A) 2,738,000
---------------
$ 40,517,300
-------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $46,811,367) $ 40,517,300
-------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 4.6%**
ENERGY -- 0.2%
Coal & Consumable Fuels -- 0.2%
4,700,000 18.15 Bumi Resources Tbk PT, Term Loan, 8/15/13 $ 1,527,500
1,034,769 8.15 Long Haul Holdings, Ltd., Facility B Loan,
11/17/13 (d)* 336,300
---------------
$ 1,863,800
---------------
Total Energy $ 1,863,800
-------------------------------------------------------------------------------------------------
MATERIALS -- 0.0%+
Diversified Metals & Mining -- 0.0%+
436,387 3.75 Fortescue Metals Group, Ltd., Bank Loan, 6/30/19 $ 370,820
---------------
Total Materials $ 370,820
-------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.1%
Metal & Glass Containers -- 0.1%
535,722 4.75 Pro Mach Group, Inc., Dollar Term Loan, 10/22/21 $ 536,057
---------------
Total Capital Goods $ 536,057
-------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.2%
Diversified Support Services -- 0.1%
497,110 5.37 IAP Worldwide Services, Inc., Term Loan, 7/18/19 $ 499,595
-------------------------------------------------------------------------------------------------
Security & Alarm Services -- 0.1%
1,012,104 4.25 Monitronics International, Inc., Term B Loan,
3/23/18 $ 1,007,549
---------------
Total Commercial Services & Supplies $ 1,507,144
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global High Yield Fund | Annual Report | 10/31/15
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.1%
Air Freight & Logistics -- 0.1%
987,275 6.75 Ozburn-Hessey Holding Co., LLC, 5/23/19 $ 982,956
---------------
Total Transportation $ 982,956
-------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.2%
Auto Parts & Equipment -- 0.2%
3,158 3.50 Allison Transmission, Inc.,
Term B-3 Loan, 8/23/19 $ 3,165
2,000,198 4.50 TI Group Automotive Systems LLC, Initial US
Term Loan, 6/25/22 1,987,697
---------------
$ 1,990,862
---------------
Total Automobiles & Components $ 1,990,862
-------------------------------------------------------------------------------------------------
MEDIA -- 0.3%
Advertising -- 0.2%
2,160,095 6.75 Affinion Group, Inc., Tranche B Term Loan,
4/30/18 $ 2,079,992
-------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.1%
1,230,307 4.50 WideOpenWest Finance LLC, Replacement
Term B Loan, 4/1/19 $ 1,214,800
---------------
Total Media $ 3,294,792
-------------------------------------------------------------------------------------------------
RETAILING -- 0.6%
Automotive Retail -- 0.6%
5,718,750 5.25 CWGS Group LLC, Term Loan, 2/20/20 $ 5,722,324
---------------
Total Retailing $ 5,722,324
-------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.1%
Food Distributors -- 0.1%
1,021,864 5.75 AdvancePierre Foods, Inc., Term Loan (First
Lien), 7/10/17 $ 1,024,035
---------------
Total Food & Staples Retailing $ 1,024,035
-------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.7%
Health Care Services -- 0.6%
1,014,830 4.25 Alliance HealthCare Services, Inc., Initial Term
Loan, 6/3/19 $ 1,010,707
474,656 6.50 Ardent Legacy Acquisitions, Inc. (Ardent
Mergeco, LLC), Term Loan, 7/31/21 475,249
696,116 6.50 BioScrip, Inc., Initial Term B Loan, 7/31/20 640,427
417,670 6.50 BioScrip, Inc., Term Loan, 7/31/20 384,256
2,511,750 4.25 National Mentor Holdings, Inc., Tranche B Term
Loan, 1/31/21 2,474,074
1,330,000 4.50 National Surgical Hospitals, Inc.
(a.k.a. National Specialty Hospitals, Inc.),
Term Loan (First Lien), 5/15/22 1,306,725
---------------
$ 6,291,438
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 37
Schedule of Investments | 10/31/15 (continued)
-------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Managed Health Care -- 0.1%
756,082 9.75 MMM Holdings, Inc., Term Loan, 10/9/17 (d)* $ 559,501
549,668 9.75 MSO of Puerto Rico, Inc., MSO Term Loan,
12/12/17 (d)* 406,754
---------------
$ 966,255
---------------
Total Health Care Equipment & Services $ 7,257,693
-------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.9%
Biotechnology -- 0.9%
9,630,863 7.00 Lantheus Medical Imaging, Inc., Initial Term
Loan, 6/25/22 $ 9,004,856
---------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 9,004,856
-------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.3%
Investment Banking & Brokerage -- 0.3%
2,790,000 8.33 MJ Acquisition Corp., 2nd Lien Term Loan, 4/8/23 $ 2,803,950
---------------
Total Diversified Financials $ 2,803,950
-------------------------------------------------------------------------------------------------
INSURANCE -- 0.1%
Multi-line Insurance -- 0.1%
550,972 4.50 Alliant Holdings I LLC,
Initial Term Loan, 7/28/22 $ 545,979
---------------
Total Insurance $ 545,979
-------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.8%
Application Software -- 0.8%
4,373,318 8.50 Expert Global Solutions, Inc., Term B Advance
(First Lien), 4/3/18 $ 4,343,252
3,500,000 9.75 Vertafore, Inc., Term Loan (Second Lien),
10/29/17 3,512,250
---------------
$ 7,855,502
---------------
Total Software & Services $ 7,855,502
-------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTERESTS
(Cost $49,200,741) $ 44,760,770
-------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT
OBLIGATION -- 0.1%
Municipal General -- 0.1%
8,875,000 0.00 Non-Profit Preferred Funding Trust I, Floating
Rate Note, 9/15/37 (144A) $ 561,610
-------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED
DEBT OBLIGATION
(Cost $8,859,299) $ 561,610
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global High Yield Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------
RIGHTS / WARRANTS -- 0.1%
FOOD, BEVERAGE & TOBACCO -- 0.1%
Distillers & Vintners -- 0.1%
5,578,091 Marie Brizard Wine & Spirits SA, 12/23/16 $ 613,953
---------------
Total Food, Beverage & Tobacco $ 613,953
-------------------------------------------------------------------------------------------------
TOTAL RIGHTS / WARRANTS
(Cost $303,271) $ 613,953
-------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 97.4%
(Cost $1,077,100,969) (a) (g) $ 951,613,744
-------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 2.6% $ 24,948,644
-------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 976,562,388
=================================================================================================
* Non-income producing security.
+ Amount rounds to less than 0.1%.
(PIK) Represents a Pay-in kind security.
REMICS Real Estate Mortgage Investment Conduits.
REIT Real Estate Investment Trust.
(A.D.R.) American Depositary Receipts.
(Perpetual) Security with no stated maturity date.
(Cat Bond) Catastrophe or event linked bond. At October 31, 2015 the value of
these securities amounted to $2,478,778 or 0.3% of total net assets.
See Notes to Financial Statements -- 1H.
(Step) Bond issued with an initial coupon rate which converts to a higher
rate at a later 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.
(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 $441,462,710 or 45.2% of total net assets.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 39
Schedule of Investments | 10/31/15 (continued)
(a) At October 31, 2015, the net unrealized depreciation on investments
based on cost for federal income tax purposes of $1,081,246,084 was
as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 20,444,929
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (150,077,269)
---------------
Net unrealized depreciation $ (129,632,340)
===============
(b) Debt obligation with a variable interest rate. Rate shown is rate at
end of period.
(c) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(d) Security is in default.
(e) Security is valued using fair value methods (other than prices
supplied by independent pricing services or broker dealers). See
Notes To Financial Statements -- Note 1A.
(f) Structured reinsurance investment. At October 31, 2015, the value of
these securities amounted to $49,423,046 or 5.1% of total net
assets. See Notes To Financial Statements -- Note 1H.
(g) Distributions of investments by country of domicile (excluding
temporary cash investments) as a percentage of total investment in
securities, is as follows:
United States 53.7%
Luxembourg 6.5%
Bermuda 5.0%
Netherlands 3.8%
United Kingdom 3.7%
Mexico 3.4%
Ireland 3.2%
Argentina 2.7%
Cayman Islands 2.6%
Canada 2.2%
Australia 1.5%
Supranational 1.3%
Other (individually less than 1.0%) 10.4%
------
100.0%
======
NOTE: Principal amounts are denominated in U.S. Dollars unless
otherwise noted:
BRL Brazilian Real
COP Colombian Peso
EURO Euro
GBP British Pound Sterling
INR Indian Rupee
JPY Japanese Yen
MXN Mexican Peso
NOK Norwegian Krone
RON Romanian Leu
RUB Russian Ruble
Purchases and Sales of securities (excluding temporary cash investments) for the
year ended October 31, 2015 were as follows:
--------------------------------------------------------------------------------
Purchases Shares
--------------------------------------------------------------------------------
Long-Term U.S. Government Securities $ -- $ 13,600,547
Other Long-Term Securities $367,411,542 $503,048,504
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global High Yield Fund | Annual Report | 10/31/15
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
-----------------------------------------------------------------------------------------
Convertible Corporate Bonds
Materials
Steel $ -- $ -- $ 39,144 $ 39,144
All Other Corporate Bonds -- 38,698,904 -- 38,698,904
Preferred Stocks
Transportation
Air Freight & Logistics -- 1,542,676 -- 1,542,676
Diversified Financials
Consumer Finance 9,185,148 1,587,442 -- 10,772,590
Insurance
Reinsurance -- -- 83,750 83,750
All Other Preferred Stocks 4,740,656 -- -- 4,740,656
Common Stock
Capital Goods
Industrial Machinery -- -- 1,560 1,560
Commercial Services & Supplies
Diversified Support Services -- 88,095 -- 88,095
Transportation
Air Freight & Logistics -- 712,642 -- 712,642
Consumer Services
Education Services -- 278,681 -- 278,681
Diversified Financials
Specialized Finance -- -- 742,020 742,020
Insurance
Life & Health Insurance -- -- 7,009,155 7,009,155
All Other Common Stocks 5,935,294 -- -- 5,935,294
Asset Backed Securities -- 8,782,143 -- 8,782,143
Collateralized Mortgage Obligations -- 22,965,872 -- 22,965,872
Corporate Bonds
Materials
Steel -- 10,457,825 45,854 10,503,679
Capital Goods
Industrial Machinery -- 3,574,200 2,099,791 5,673,991
Insurance
Reinsurance -- 2,478,778 49,339,296 51,818,074
All Other Corporate Bonds -- 694,771,185 -- 694,771,185
Foreign Government Bonds -- 40,517,300 -- 40,517,300
Senior Floating Rate Loan Interests -- 44,760,770 -- 44,760,770
Municipal Collateralized
Debt Obligation -- 561,610 -- 561,610
Rights/Warrants 613,953 -- -- 613,953
-----------------------------------------------------------------------------------------
Total $20,475,051 $871,778,123 $59,360,570 $951,613,744
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 41
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------
Other Financial Instruments
Unrealized appreciation
on forward foreign
currency contracts $ -- $ 436,049 $ -- $ 436,049
Unrealized depreciation
on forward foreign
currency contracts -- (179,385) -- (179,385)
------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ -- $ 256,664 $ -- $ 256,664
==========================================================================================
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 $ -- $ 10,537,677 $ -- $ 10,537,677
-----------------------------------------------------------------------------------------
Total: $ -- $ 10,537,677 $ -- $ 10,537,677
=========================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global High Yield Fund | Annual Report | 10/31/15
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
------------------------------------------------------------------------------------------------------
Convertible
Common Corporate Preferred Corporate
Stocks Bonds Stocks Bonds Total
------------------------------------------------------------------------------------------------------
Balance as of 10/31/14 $ 700,002 $ 3,047,736 $ 4,260,476 $ 28,067,018 $ 36,075,232
Realized gain (loss)(1) -- -- -- (1,969,390) (1,969,390)
Change in unrealized
appreciation (depreciation)(2) 167,817 (97,492) (3,629,725) (5,736,151) (9,295,551)
Purchases 6,884,916 -- -- 49,507,611 56,392,527
Sales -- -- -- (18,931,148) (18,931,148)
Transfers in to Level 3* -- -- -- -- --
Transfers out of Level 3* -- -- -- -- --
Transfers in and out of
Level 3 categories -- (2,911,100) (547,001) 547,001 (2,911,100)
------------------------------------------------------------------------------------------------------
Balance as of 10/31/15 $7,752,735 $ 39,144 $ 83,750 $ 51,484,941 $ 59,360,570
======================================================================================================
(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 $(10,877,612)
-------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 43
Statement of Assets and Liabilities | 10/31/15
ASSETS:
Investment in securities (cost $1,077,100,969) $ 951,613,744
Foreign currencies, at value (cost $10,764,739) 10,537,677
Receivables --
Investment securities sold 21,752,115
Fund shares sold 1,395,881
Dividends 48,202
Interest 18,712,687
Unrealized appreciation on forward foreign currency contracts 436,049
Other assets 115,565
---------------------------------------------------------------------------------------------
Total assets $ 1,004,611,920
---------------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 15,054,226
Fund shares repurchased 4,119,931
Distributions 668,299
Trustee fees 5,196
Unrealized depreciation on forward foreign currency contracts 179,385
Due to affiliates 373,979
Due to custodian 7,499,585
Accrued expenses 148,931
---------------------------------------------------------------------------------------------
Total liabilities $ 28,049,532
---------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 1,505,079,342
Distributions in excess of net investment income (5,057,703)
Accumulated net realized loss on investments, written options
and foreign currency transactions (397,925,339)
Net unrealized depreciation on investments (125,487,225)
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (46,687)
---------------------------------------------------------------------------------------------
Total net assets $ 976,562,388
---------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $254,056,196/29,421,679 shares)* $ 8.64
Class C (based on $237,162,548/27,529,024 shares) $ 8.62
Class Y (based on $485,343,644/57,172,368 shares) $ 8.49
MAXIMUM OFFERING PRICE:
Class A ($8.64 (divided by) 95.5%) $ 9.05
=============================================================================================
* Net asset value per share does not recalculate due to the rounding of net
assets and/or shares outstanding.
The accompanying notes are an integral part of these financial statements.
44 Pioneer Global High Yield Fund | Annual Report | 10/31/15
Statement of Operations
For the Year Ended 10/31/15
INVESTMENT INCOME:
Interest (net of foreign taxes withheld of $59,996) $ 86,076,113
Dividends 2,210,222
---------------------------------------------------------------------------------------------
Total investment income $ 88,286,335
---------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 7,834,144
Transfer agent fees
Class A 177,519
Class B* 465
Class C 65,943
Class Y 14,739
Class Z** 2,334
Distribution fees
Class A 793,963
Class B* 4,672
Class C 2,892,124
Shareholder communication expense 1,453,665
Administrative expense 348,824
Custodian fees 62,292
Registration fees 135,916
Professional fees 115,056
Printing expense 56,560
Fees and expenses of nonaffiliated Trustees 52,278
Miscellaneous 117,427
---------------------------------------------------------------------------------------------
Total expenses $ 14,127,921
---------------------------------------------------------------------------------------------
Net investment income $ 74,158,414
---------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
WRITTEN OPTIONS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (96,592,604)
Written options 81,114
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (3,169,346) $ (99,680,836)
---------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ (56,263,053)
Written options (81,027)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (571,521) $ (56,915,601)
---------------------------------------------------------------------------------------------
Net realized and unrealized loss on investments,
written options and foreign currency transactions $ (156,596,437)
---------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (82,438,023)
---------------------------------------------------------------------------------------------
* Class B shares converted to Class A shares on November 10, 2014.
** Class Z shares converted to Class Y shares on August 7, 2015.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 45
Statements of Changes in Net Assets
---------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/15 10/31/14
---------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 74,158,414 $ 106,077,996
Net realized loss on investments, written options and
foreign currency transactions (99,680,836) (47,411,485)
Change in net unrealized appreciation (depreciation)
on investments, written options and foreign
currency transactions (56,915,601) (5,339,705)
---------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (82,438,023) $ 53,326,806
---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.46 and $0.63 per share, respectively) $ (16,116,373) $ (29,832,295)
Class B* ($0.02 and $0.54 per share, respectively) (27,063) (1,182,126)
Class C ($0.40 and $0.56 per share, respectively) (12,638,032) (21,500,514)
Class Y ($0.48 and $0.65 per share, respectively) (30,502,564) (47,729,543)
Class Z** ($0.39 and $0.67 per share, respectively) (230,464) (543,124)
Tax return of capital:
Class A ($0.08 and $0.03 per share, respectively) (2,723,523) (1,332,258)
Class B* ($0.00 and $0.03 per share, respectively) -- (59,960)
Class C ($0.08 and $0.03 per share, respectively) (2,484,930) (1,097,458)
Class Y ($0.08 and $0.03 per share, respectively) (4,980,188) (2,094,367)
Class Z** ($0.08 and $0.03 per share, respectively) (33,644) (23,348)
---------------------------------------------------------------------------------------------
Total distributions to shareowners $ (69,736,781) $ (105,394,993)
---------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 225,138,161 $ 354,742,504
Reinvestment of distributions 60,938,540 90,790,119
Cost of shares repurchased (591,554,304) (727,085,172)
---------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ (305,477,603) $ (281,552,549)
---------------------------------------------------------------------------------------------
Net decrease in net assets $ (457,652,407) $ (333,620,736)
NET ASSETS:
Beginning of year 1,434,214,795 1,767,835,531
---------------------------------------------------------------------------------------------
End of year $ 976,562,388 $1,434,214,795
---------------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (5,057,703) $ (5,794,105)
=============================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
** Class Z shares converted to Class Y shares on August 7, 2015.
The accompanying notes are an integral part of these financial statements.
46 Pioneer Global High Yield Fund | Annual Report | 10/31/15
---------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/15 10/31/15 10/31/14 10/31/14
Shares Amount Shares Amount
---------------------------------------------------------------------------------------------
Class A
Shares sold 5,705,189 $ 53,564,125 8,067,204 $ 81,377,053
Reinvestment of
distributions 1,834,846 16,763,907 2,764,874 27,820,854
Less shares repurchased (16,272,631) (149,194,095) (25,172,337) (253,478,131)
---------------------------------------------------------------------------------------------
Net decrease (8,732,596) $ (78,866,063) (14,340,259) $ (144,280,224)
=============================================================================================
Class B*
Shares sold or exchanged -- $ -- 14,948 $ 150,417
Reinvestment of
distributions -- -- 102,969 1,036,710
Less shares repurchased (1,751,406) (17,041,325) (915,740) (9,227,142)
---------------------------------------------------------------------------------------------
Net decrease (1,751,406) $ (17,041,325) (797,823) $ (8,040,015)
=============================================================================================
Class C
Shares sold 1,679,200 $ 15,503,386 2,475,431 $ 24,886,168
Reinvestment of
distributions 1,313,253 11,966,321 1,754,663 17,594,670
Less shares
repurchased (11,734,031) (107,116,018) (9,625,103) (96,598,207)
---------------------------------------------------------------------------------------------
Net decrease (8,741,578) $ (79,646,311) (5,395,009) $ (54,117,369)
=============================================================================================
Class Y
Shares sold 17,127,325 $ 154,449,905 24,549,196 $ 242,996,219
Reinvestment of
distributions 3,568,721 32,030,832 4,439,341 43,873,059
Less shares repurchased (34,480,930) (310,458,535) (36,416,108) (360,141,371)
---------------------------------------------------------------------------------------------
Net decrease (13,784,884) $ (123,977,798) (7,427,571) $ (73,272,093)
=============================================================================================
Class Z**
Shares sold 169,502 $ 1,620,745 509,128 $ 5,332,647
Reinvestment of
distributions 18,590 177,480 44,874 464,826
Less shares repurchased (826,914) (7,744,331) (737,520) (7,640,321)
---------------------------------------------------------------------------------------------
Net decrease (638,822) $ (5,946,106) (183,518) $ (1,842,848)
=============================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
** Class Z shares converted to Class Y shares on August 7, 2015.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 47
Financial Highlights
-----------------------------------------------------------------------------------------------------------------------------------
Year Year Ended Year Ended Year Ended
Ended Year Ended 10/31/13 10/31/12 10/31/11
10/31/15 10/31/14 (Consolidated) (Consolidated) (Consolidated)
-----------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.79 $ 10.13 $ 10.13 $ 9.83 $ 10.53
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.58(a) $ 0.66 $ 0.71 $ 0.76 $ 0.77
Net realized and unrealized gain (loss) on investments (1.19) (0.34) (0.02) 0.35 (0.70)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.61) $ 0.32 $ 0.69 $ 1.11 $ 0.07
-----------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.46) $ (0.63) $ (0.69) $ (0.81) $ (0.77)
Tax return of capital (0.08) (0.03) -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.54) $ (0.66) $ (0.69) $ (0.81) $ (0.77)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.15) $ (0.34) $ -- $ 0.30 $ (0.70)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.64 $ 9.79 $ 10.13 $ 10.13 $ 9.83
===================================================================================================================================
Total return* (6.36)% 3.16% 6.96% 11.89% 0.49%
Ratio of net expenses to average net assets 1.17% 1.13% 1.10% 1.10% 1.09%
Ratio of net investment income (loss) to average net assets 6.31% 6.62% 6.97% 7.74% 7.37%
Portfolio turnover rate 32% 32% 33% 33% 52%
Net assets, end of period (in thousands) $254,056 $373,543 $ 531,829 $602,568 $648,746
===================================================================================================================================
* 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 Global High Yield Fund | Annual Report | 10/31/15
-----------------------------------------------------------------------------------------------------------------------------------
Year Year Ended Year Ended Year Ended
Ended Year Ended 10/31/13 10/31/12 10/31/11
10/31/15 10/31/14 (Consolidated) (Consolidated) (Consolidated)
-----------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.76 $ 10.10 $ 10.10 $ 9.80 $ 10.49
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.51(a) $ 0.59 $ 0.63 $ 0.69 $ 0.70
Net realized and unrealized gain (loss) on investments (1.17) (0.34) (0.01) 0.35 (0.69)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.66) $ 0.25 $ 0.62 $ 1.04 $ 0.01
-----------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.40) $ (0.56) $ (0.62) $ (0.74) $ (0.70)
Tax return of capital (0.08) (0.03) -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.48) $ (0.59) $ (0.62) $ (0.74) $ (0.70)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.14) $ (0.34) $ -- $ 0.30 $ (0.69)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.62 $ 9.76 $ 10.10 $ 10.10 $ 9.80
===================================================================================================================================
Total return* (6.96)% 2.43% 6.23% 11.17% (0.13)%
Ratio of net expenses to average net assets 1.87% 1.83% 1.81% 1.78% 1.78%
Ratio of net investment income (loss) to average net assets 5.61% 5.91% 6.26% 7.08% 6.72%
Portfolio turnover rate 32% 32% 33% 33% 52%
Net assets, end of period (in thousands) $237,163 $354,162 $ 420,932 $468,920 $460,476
===================================================================================================================================
* 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 Global High Yield Fund | Annual Report | 10/31/15 49
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------------
Year Year Ended Year Ended Year Ended
Ended Year Ended 10/31/13 10/31/12 10/31/11
10/31/15 10/31/14 (Consolidated) (Consolidated) (Consolidated)
-----------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.62 $ 9.96 $ 9.96 $ 9.66 $ 10.35
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.60(a) $ 0.67 $ 0.72 $ 0.76 $ 0.81
Net realized and unrealized gain (loss) on investments (1.17) (0.33) (0.01) 0.37 (0.70)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.57) $ 0.34 $ 0.71 $ 1.13 $ 0.11
-----------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.48) $ (0.65) $ (0.71) $ (0.83) $ (0.80)
Tax return of capital (0.08) (0.03) -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.56) $ (0.68) $ (0.71) $ (0.83) $ (0.80)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.13) $ (0.34) $ -- $ 0.30 $ (0.69)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.49 $ 9.62 $ 9.96 $ 9.96 $ 9.66
===================================================================================================================================
Total return* (6.08)% 3.40% 7.27% 12.35% 0.85%
Ratio of net expenses to average net assets 0.87% 0.84% 0.82% 0.80% 0.74%
Ratio of net investment income (loss) to average net assets 6.60% 6.88% 7.24% 8.03% 7.72%
Portfolio turnover rate 32% 32% 33% 33% 52%
Net assets, end of period (in thousands) $485,344 $682,911 $ 780,656 $945,946 $1,364,543
===================================================================================================================================
* 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.
50 Pioneer Global High Yield Fund | Annual Report | 10/31/15
Notes to Financial Statements | 10/31/15
1. Organization and Significant Accounting Policies
Pioneer Global High Yield Fund (the Fund) is one of three portfolios comprising
Pioneer Series Trust VII (the Trust), a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is to
maximize total return through a combination of income and capital appreciation.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Class B shares were converted to Class A shares as of the close of
business on November 10, 2014. Class Z shares converted to Class Y shares as of
the close of business on August 7, 2015. Each class of shares represents an
interest in the same portfolio of investments of the Fund and has identical
rights (based on relative net asset values) to assets and liquidation proceeds.
Share classes can bear different rates of class-specific fees and expenses such
as transfer agent and distribution fees. Differences in class-specific fees and
expenses will result in differences in net investment income and, therefore, the
payment of different dividends from net investment income earned by each class.
The Amended and Restated Declaration of Trust of the Fund gives the Board the
flexibility to specify either per share voting or dollar-weighted voting when
submitting matters for shareholder approval. Under per share voting, each share
of a class of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting year.
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:
Pioneer Global High Yield Fund | Annual Report | 10/31/15 51
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Fixed
income securities are valued at prices supplied by independent pricing
services, which consider such factors as market prices, market events,
quotations from one or more brokers, Treasury spreads, yields, maturities
and ratings. Valuations may be supplemented by dealers and other sources,
as required. Senior floating rate loan interests (senior loans) are valued
in accordance with guidelines established by the Board of Trustees at the
mean between the last available bid and asked prices from one or more
brokers or dealers as obtained from Loan Pricing Corporation, an
independent pricing service. If price information is not available from
Loan Pricing Corporation, or if the price 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
other available market data. Equity securities that have traded on an
exchange are valued at the last sale price on the principal exchange where
they are traded. Equity securities that have not traded on the date of
valuation, or securities for which sale prices are not available, generally
are valued using the mean between the last bid and asked prices. Shares of
money market mutual funds are valued at such funds' net asset value. Cash
may include overnight time deposits at approved financial institutions.
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 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 value valuation team is responsible for
52 Pioneer Global High Yield Fund | Annual Report | 10/31/15
monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Trust may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Trust's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Trust's securities may differ significantly from exchange prices and
such differences could be material.
At October 31, 2015, ten securities were valued using fair value methods
(in addition to securities valued using prices supplied by independent
pricing services, broker-dealers or through a third party using an
insurance industry valuation model) representing 1.0% of net assets.
B. Investment Income and Transactions
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis,
net of unrecoverable foreign taxes withheld at the applicable country
rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
C. 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.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 53
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. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
is recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a hedge is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(See Note 8).
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no provision for federal income taxes 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 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.
54 Pioneer Global High Yield Fund | Annual Report | 10/31/15
At October 31, 2015, the Fund reclassified $13,907,516 to increase
distributed in excess of net investment income and $13,907,516 to
decrease accumulated net realized loss on investments, written options
and foreign currency transactions 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
$14,957,489 of short-term losses and $147,107,113 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 $235,848,362 of which the following amounts will
expire between 2016 and 2018 if not utilized: $4,718,467 in 2016,
$204,858,985 in 2017 and $26,270,910 in 2018.
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 $59,414,496 $100,787,602
Return of capital 10,222,285 4,607,391
---------------------------------------------------------------------------
Total $69,736,781 $105,394,993
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Capital loss carryforward $(397,912,964)
Current year dividend payable (668,299)
Net unrealized depreciation (129,935,691)
---------------------------------------------------------------------------
Total $(528,516,954)
===========================================================================
The difference between book basis and tax basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales, the
mark-to-market of foreign currency contracts, adjustments relating to
catastrophe bonds, partnerships, interest on defaulted bonds, and interest
accruals on preferred stock.
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned $28,208 in underwriting commissions on the sale of
Class A shares during the year ended October 31, 2015.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 55
G. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the Fund's transfer agent for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
H. 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.
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
56 Pioneer Global High Yield Fund | Annual Report | 10/31/15
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.
I. Risks
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's investments in
foreign markets and countries with limited developing markets may subject
the Fund to a greater degree of risk than in a developed market. These
risks include disruptive political or economic conditions and the
imposition of adverse governmental laws or currency exchange restrictions.
The Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
The Fund invests in below investment grade (high yield) debt securities and
preferred stocks. Some of these high yield securities may be convertible
into equity securities of the issuer. Debt securities rated below
investment grade are commonly referred to as "junk bonds" and are
considered speculative. These securities involve greater risk of loss, are
subject to greater price volatility, and are less liquid, especially during
periods of economic uncertainty or change, than higher rated debt
securities.
J. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price,
upon the exercise of the option. When the Fund writes an option, an amount
equal to the premium received by the Fund is recorded as a liability and is
subsequently adjusted to the current value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized
Pioneer Global High Yield Fund | Annual Report | 10/31/15 57
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 $(7). There were no written options outstanding at 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 (4,923,449) $ (81,114)
Options opened -- --
Options exercised -- --
Options closed -- --
Options expired 4,923,449 81,114
---------------------------------------------------------------------------
Options open at end of period -- $ --
===========================================================================
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, the Fund's investment
adviser, manages the Fund's portfolio. Management fees are calculated daily at
the annual rate of 0.70% of the Fund's average daily net assets up to $500
million; 0.65% of the next $500 million; 0.60% of the next $500 million; 0.55%
of the next $500 million; and 0.45% on assets over $2 billion. For the year
ended October 31, 2015, the effective management fee (excluding waivers and/or
assumption of expenses) was equivalent to 0.66% of the Fund's average daily net
assets.
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
$54,155 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.
58 Pioneer Global High Yield Fund | Annual Report | 10/31/15
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 $ 409,000
Class B 649
Class C 321,300
Class Y 713,581
Class Z 9,135
--------------------------------------------------------------------------------
Total $1,453,665
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $295,105 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 $24,719 in distribution fees payable to
PFD at October 31, 2015.
In addition, redemptions of each class of shares (except Class Y and Class Z
shares) may be subject to a contingent deferred sales charge (CDSC). A CDSC of
1.00% may be imposed on redemptions of certain net asset value purchases of
Class A shares within 12 months of purchase. Redemptions of Class C shares
within 12 months of purchase are subject to a CDSC of 1.00% based on the lower
of cost or market value of shares being redeemed. Shares purchased as part of an
exchange remain subject to any CDSC that applied to the original purchase of
those shares. There is no CDSC for Class Y or Class Z shares. Proceeds from the
CDSCs are paid to PFD. For the year ended October 31, 2015, CDSCs in the amount
of $11,423 were paid to PFD.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 59
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in 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.
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.
7. Bridge Loan Commitments
Bridge loans are designed to provide temporary or "bridge" financing to a
borrower pending the sale of identified assets or the arrangement of longer term
loans or the issuance or sale of debt obligations.
As of October 31, 2015, the Fund had one bridge loan commitment of $5,007,826,
which could be extended at the option of the borrower, pursuant to the following
loan agreement:
--------------------------------------------------------------------------------
Unrealized
Appreciation/
Loan Shares Cost Value Depreciation
--------------------------------------------------------------------------------
Charter Communications
Operating Co., Bridge Loan 5,007,826 $5,007,826 $5,007,826 $ --
--------------------------------------------------------------------------------
Total 5,007,826 $5,007,826 $5,007,826 $ --
================================================================================
8. 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
60 Pioneer Global High Yield Fund | Annual Report | 10/31/15
settlement date of a forward foreign currency contract, the Fund may close out
such contract by entering into an offsetting contract. The average value of
contracts open during the year ended October 31, 2015 was $(13,016,519).
Open forward foreign currency contracts at October 31, 2015 were as follows:
--------------------------------------------------------------------------------------------------------
Currency Currency In Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
--------------------------------------------------------------------------------------------------------
EUR (Euro) (7,397,123) USD 8,321,280 JP Morgan
Chase Bank 12/4/15 $ 176,400
EUR (Euro) (5,234,016) USD 5,941,196 Societe Generale 12/4/15 178,086
JPY (Yen Japan) (667,733,813) USD 5,570,483 Brown Brothers
Harriman And Co. 11/25/15 37,011
EUR (Euro) (1,045,826) USD 1,196,098 Citibank N.A. 12/4/15 44,552
--------------------------------------------------------------------------------------------------------
Total $ 436,049
========================================================================================================
--------------------------------------------------------------------------------------------------------
Currency Currency In Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
--------------------------------------------------------------------------------------------------------
GBP (British
Pound
Sterling) (2,928,331) USD 4,483,554 Citibank N.A. 11/3/15 $ (34,423)
MXN
(Mexican Brown Brothers
Peso) (113,070,000) USD 6,737,335 Harriman And Co. 11/23/15 (103,626)
RUB
(Russian JP Morgan
Ruble) (74,085,000) USD 1,136,151 Chase Bank 11/6/15 (23,045)
USD (1,738,596) EUR (Euro) 1,565,000 UBS AG 12/4/15 (15,394)
GBP (British
Pound Brown Brothers
Sterling) (2,920,647) USD 4,502,265 Harriman And Co. 12/29/15 (2,897)
--------------------------------------------------------------------------------------------------------
Total $ (179,385)
========================================================================================================
9. 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
Pioneer Global High Yield Fund | Annual Report | 10/31/15 61
Fund's right to setoff may be restricted or prohibited by the bankruptcy or
insolvency laws of the particular jurisdiction to which a specific ISDA
counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collateral pledged for the benefit of the Fund and/or
counterparty is held in segregated accounts by the Fund's custodian and cannot
be sold, re-pledged, assigned or otherwise used while pledged. Cash that has
been segregated to cover the Fund's collateral obligations, if any, will be
reported separately in the Statement of Assets and Liabilities as "Futures
collateral", "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 Net Amount
Subject to Master Available for Collateral Collateral of Derivative
Counterparty Netting Agreement Offset Received (a) Received (a) Assets (b)
--------------------------------------------------------------------------------------------------------
JP Morgan
Chase Bank $176,400 $ (23,045) $-- $-- $153,355
Societe
Generale SA 178,086 -- -- -- 178,086
Citibank N.A. 44,552 (34,423) -- -- 10,129
Brown Brothers
Harriman
and Co. 37,011 (37,011) -- -- --
UBS AG -- -- -- -- --
--------------------------------------------------------------------------------------------------------
Total $436,049 $ (94,479) $-- $-- $341,570
========================================================================================================
--------------------------------------------------------------------------------------------------------
Derivative Liabilities Derivatives Non-Cash Cash Net Amount
Subject to Master Available for Collateral Collateral of Derivative
Counterparty Netting Agreement Offset Pledged (a) Pledged (a) Liabilities (c)
--------------------------------------------------------------------------------------------------------
JP Morgan
Chase Bank $ 23,045 $ (23,045) $-- $-- $ --
Societe
Generale SA -- -- -- -- --
Citibank N.A. 34,423 (34,423) -- -- --
Brown Brothers
Harriman
and Co. 106,523 (37,011) -- -- 69,512
UBS AG 15,394 -- -- -- 15,394
--------------------------------------------------------------------------------------------------------
Total $179,385 $ (94,479) $-- $-- $ 84,906
========================================================================================================
62 Pioneer Global High Yield Fund | Annual Report | 10/31/15
(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.
10. 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:
--------------------------------------------------------------------------------
Foreign
Statement of Assets Interest Credit Exchange Equity Commodity
and Liabilities Rate Risk Risk Rate Risk Risk Risk
--------------------------------------------------------------------------------
Assets
Unrealized appreciation
of forward foreign
currency contracts $-- $-- $ 436,049 $-- $--
--------------------------------------------------------------------------------
Total Value $-- $-- $ 436,049 $-- $--
================================================================================
Liabilities
Unrealized depreciation
of forward foreign currency
contracts $-- $-- $(179,385) $-- $--
--------------------------------------------------------------------------------
Total Value $-- $-- $(179,385) $-- $--
================================================================================
Pioneer Global High Yield Fund | Annual Report | 10/31/15 63
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:
--------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Operations Rate Risk Risk Rate Risk Risk Risk
--------------------------------------------------------------------------------
Net realized gain (loss) on
Written options $-- $-- $ 81,114 $ -- $--
Forward foreign currency
contracts -- -- (748,804) -- --
--------------------------------------------------------------------------------
Total Value $-- $-- $ (667,690) $ -- $--
================================================================================
Change in net
unrealized appreciation
(depreciation) on
Written options $-- $-- $ (81,027) $ -- $--
Forward foreign currency
contracts -- -- (511,304) -- --
--------------------------------------------------------------------------------
Total Value $-- $-- $ (592,331) $ -- $--
================================================================================
11. Conversion of Class B and Class Z shares
As of the close of business on November 10, 2014, all outstanding Class B shares
of the Pioneer funds were converted to Class A shares.
As of the close of business on August 7, 2015, all outstanding Class Z shares of
the Pioneer funds were converted to Class Y shares.
64 Pioneer Global High Yield Fund | Annual Report | 10/31/15
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VII and Shareowners of Pioneer
Global High Yield Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Global High Yield Fund (one of the
portfolios constituting Pioneer Series Trust VII), 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
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 financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Pioneer Global High Yield Fund as of October 31, 2015, the results
of its operations for the year then ended, and the changes in its net assets and
the financial highlights for each of the two years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
December 23, 2015
Pioneer Global High Yield Fund | Annual Report | 10/31/15 65
Additional Information (unaudited)
Pioneer Investment Management, Inc. (the "Adviser"), each fund's investment
adviser, is currently an indirect, wholly owned subsidiary of UniCredit S.p.A.
("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 each fund's current investment advisory agreement with PIM to terminate.
Accordingly, each fund's Board of Trustees will be asked to approve a new
investment advisory agreement. If approved by the Board, each fund's new
investment advisory agreement will be submitted to the shareholders of the fund
for their approval.
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 65.9%.
Subsequent Events (unaudited)
Effective November 2, 2015, Boston Financial Data Service became the transfer
agent to the Fund at negotiated rates.
66 Pioneer Global High Yield Fund | Annual Report | 10/31/15
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Global High Yield Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in 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.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 67
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 discussed the Fund's performance with PIM on a
more frequent basis in light of the Fund's unfavorable performance compared to
its benchmark index and peers over certain periods. The Trustees noted PIM's
explanation for the Fund's relative performance and the steps taken by PIM to
address the Fund's performance, including enhancing the investment process used
for the Fund and reducing the Fund's emerging markets exposure. The Trustees'
reviews and discussions, including the steps taken by PIM to address the Fund's
performance, were factored into the Trustees' deliberations concerning the
renewal of the advisory agreement.
68 Pioneer Global High Yield Fund | Annual Report | 10/31/15
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party. In all
quintile rankings referred to below, first quintile is most favorable to the
Fund's shareowners.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the third quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoints in the management fee schedule and the
reduced fee rates above certain asset levels. The Trustees considered that the
expense ratio of the Fund's Class A shares for the most recent fiscal year was
in the fourth quintile relative to its Morningstar peer group and in the fourth
quintile relative its Strategic Insight peer group, in each case for the
comparable period. The Trustees considered that the expense ratio of the Fund's
Class Y shares for the most recent fiscal year was in the fourth quintile
relative to its Morningstar peer group and in the fourth quintile relative its
Strategic Insight peer group, in each case for the comparable period. The
Trustees considered the impact of transfer agency, sub-transfer agency and other
non-management fee expenses on the expense ratios of the Fund, and noted the
impact of expenses relating to small accounts and omnibus accounts on transfer
and sub-transfer agency expenses generally. The Trustees noted that they
separately review the Fund's transfer agency, sub-transfer agency and
intermediary arrangements.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the Fund that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Fund's other service providers and
Pioneer Global High Yield Fund | Annual Report | 10/31/15 69
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 breakpoints in the management fee schedule. The Trustees recognize
that economies of scale are difficult to identify and quantify, and that, among
other factors that may be relevant, are the following: fee levels, expense
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Fund. The Trustees noted that
profitability also may be an indicator of the availability of any economies of
scale, although profitability may vary for other reasons including due to
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
70 Pioneer Global High Yield Fund | Annual Report | 10/31/15
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.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 71
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations during at least the past five years. Trustees who are interested
persons of the Fund within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the Fund are
referred to as Independent Trustees. Each of the Trustees serves as a trustee of
each of the 50 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
72 Pioneer Global High Yield Fund | Annual Report | 10/31/15
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (65) Trustee since 2006. Private investor (2004 - 2008 and 2013 - Director, Broadridge
Chairman of the Board Serves until a present); Chairman (2008 - 2013) and Chief Financial Solutions, Inc.
and Trustee successor trustee Executive Officer (2008 - 2012), Quadriserv, Inc. (investor communications and
is elected or (technology products for securities lending securities processing
earlier retirement industry); and Senior Executive Vice President, provider for financial
or removal. The Bank of New York (financial and securities services industry) (2009 -
services) (1986 - 2004) present); Director,
Quadriserv, Inc. (2005 -
2013); and Commissioner, New
Jersey State Civil Service
Commission (2011 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (71) Trustee since 2005. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - Trust (publicly-traded
successor trustee 2004 and 2008 - present); Interim Chief Executive mortgage REIT) (2004 - 2009,
is elected or Officer, Oxford Analytica, Inc. (privately-held 2012 - present); Director of
earlier retirement research and consulting company) (2010); The Swiss Helvetia Fund, Inc.
or removal. Executive Vice President and Chief Financial (closed-end fund) (2010 -
Officer, I-trax, Inc. (publicly traded health care present); Director of Oxford
services company) (2004 - 2007); and Executive Analytica, Inc. (2008 -
Vice President and Chief Financial Officer, present); and Director of
Pedestal Inc. (internet-based mortgage trading Enterprise Community
company) (2000 - 2002); Private consultant Investment, Inc.
(1995-1997), Managing Director, Lehman Brothers (privately-held affordable
(investment banking firm) (1992-1995); and housing finance company)
Executive, The World Bank (1979-1992) (1985 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (71) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and
successor trustee Mellon Institutional Funds
is elected or Master Portfolio (oversaw 17
earlier retirement portfolios in fund complex)
or removal. (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/15 73
Independent Trustees (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (68) Trustee since 2001. 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 2001. President and Chief Executive Officer, Newbury, Director of New America High
Trustee Serves until a Piret & Company, Inc. (investment banking firm) Income Fund, Inc. (closed-end
successor trustee (1981 - present) investment company) (2004 -
is elected or present); and Member, Board
earlier retirement of Governors, Investment
or removal. Company Institute (2000 -
2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (68) Trustee since 2014. Consultant (investment company services) (2012 - None
Trustee Serves until a present); Executive Vice President, BNY Mellon
successor trustee (financial and investment company services) (1969
is elected or - 2012); Director, BNY International Financing
earlier retirement Corp. (financial services) (2002 - 2012); and
or removal. Director, Mellon Overseas Investment Corp.
(financial services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
74 Pioneer Global High Yield Fund | Annual Report | 10/31/15
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (57)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer, U.S. (since
successor trustee 2010) of PIM-USA; Executive Vice President of
is elected or Pioneer (since 2008); Executive Vice President of
earlier retirement Pioneer Institutional Asset Management, Inc.
or removal. (since 2009); and Portfolio Manager of Pioneer
(since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer of the Fund's
investment adviser and certain of its affiliates.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 75
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (59)** Advisory Trustee Chief Investment Officer, 1199 SEIU Funds Trustee of Pioneer
Advisory Trustee since 2014. (healthcare workers union pension funds) (2001 - closed-end investment
present); Vice President - International companies (5 portfolios)
Investments Group, American International Group, (Sept. 2015 - present)
Inc. (insurance company) (1993 - 2001); Vice
President Corporate Finance and Treasury Group,
Citibank, N.A.(1980 - 1986 and 1990 - 1993); Vice
President - Asset/Liability Management Group,
Federal Farm Funding Corporation
(government-sponsored issuer of debt securities)
(1988 - 1990); Mortgage Strategies Group,
Shearson Lehman Hutton, Inc. (investment bank)
(1987 - 1988); and Mortgage Strategies Group,
Drexel Burnham Lambert, Ltd. (investment bank)
(1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
** Ms. Monchak is a non-voting advisory trustee.
76 Pioneer Global High Yield Fund | Annual Report | 10/31/15
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (53) Since 2014. Serves Chair, Director, CEO and President of Pioneer Trustee of Pioneer
President and Chief at the discretion Investment Management-USA (since September 2014); closed-end investment
Executive Officer of the Board. Chair, Director, CEO and President of Pioneer companies (5 portfolios)
Investment Management, Inc. (since September (Sept. 2015 - present)
2014); Chair, Director, CEO and President of
Pioneer Funds Distributor, Inc. (since September
2014); Chair, Director, CEO and President of
Pioneer Institutional Asset Management, Inc.
(since September 2014); and Chair, Director, and
CEO of Pioneer Investment Management Shareholder
Services, Inc. (since September 2014); Managing
Director, Morgan Stanley Investment Management
(2010 - 2013); and Director of Institutional
Business, CEO of International, Eaton Vance
Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (50) Since 2003. Serves Vice President and Associate General Counsel of None
Secretary and Chief at the discretion Pioneer since January 2008; Secretary and Chief
Legal Officer of the Board. Legal Officer of all of the Pioneer Funds since
June 2010; Assistant Secretary of all of the
Pioneer Funds from September 2003 to May 2010;
and Vice President and Senior Counsel of Pioneer
from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (54) Since 2010. Serves Fund Governance Director of Pioneer since None
Assistant Secretary at the discretion December 2006 and Assistant Secretary of all the
of the Board. Pioneer Funds since June 2010; Manager - Fund
Governance of Pioneer from December 2003 to
November 2006; and Senior Paralegal of Pioneer
from January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (52) Since 2010. Serves Senior Counsel of Pioneer since May 2013 and None
Assistant Secretary at the discretion Assistant Secretary of all the Pioneer Funds
of the Board. since June 2010; and Counsel of Pioneer from June
2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2008. Serves Vice President - Fund Treasury of Pioneer; None
Treasurer and Chief at the discretion Treasurer of all of the Pioneer Funds since March
Financial and of the Board. 2008; Deputy Treasurer of Pioneer from March 2004
Accounting Officer to February 2008; and Assistant Treasurer of all
of the Pioneer Funds from March 2004 to February
2008
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/15 77
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (50) Since 2001. Serves Director - Fund Treasury of Pioneer; and None
Assistant Treasurer at the discretion Assistant Treasurer of all of the Pioneer Funds
of the Board.
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (57) Since 2002. Serves Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer at the discretion Pioneer; and Assistant Treasurer of all of the
of the Board. Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (35) Since 2009. Serves Fund Administration Manager - Fund Treasury of None
Assistant Treasurer at the discretion Pioneer since November 2008; Assistant Treasurer
of the Board. of all of the Pioneer Funds since January 2009;
and Client Service Manager - Institutional
Investor Services at State Street Bank from March
2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (63) Since 2010. Serves Chief Compliance Officer of Pioneer and of all the None
Chief Compliance Officer at the discretion Pioneer Funds since March 2010; Chief Compliance
of the Board. Officer of Pioneer Institutional Asset Management,
Inc. since January 2012; Chief Compliance Officer
of Vanderbilt Capital Advisors, LLC since July
2012: Director of Adviser and Portfolio
Compliance at Pioneer since October 2005; and
Senior Compliance Officer for Columbia Management
Advisers, Inc. from October 2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (44) Since 2006. Serves Director - Transfer Agency Compliance of Pioneer None
Anti-Money Laundering Officer at the discretion and Anti-Money Laundering Officer of all the
of the Board. Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
78 Pioneer Global High Yield Fund | Annual Report | 10/31/15
This page for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 79
This page for your notes.
80 Pioneer Global High Yield Fund | Annual Report | 10/31/15
This page for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 81
This page for your notes.
82 Pioneer Global High Yield Fund | Annual Report | 10/31/15
This page for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/15 83
This page for your notes.
84 Pioneer Global High Yield Fund | Annual Report | 10/31/15
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Pioneer Funds
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2015 Pioneer Investments 19440-09-1215
Pioneer Global Multisector
Income Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PGABX
Class C PGCBX
Class Y PGYBX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 37
Notes to Financial Statements 44
Report of Independent Registered Public Accounting Firm 61
Approval of Investment Advisory Agreement 63
Trustees, Officers and Service Providers 68
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 1
President's Letter
Dear Shareholder,
Through the first three quarters of 2015, global markets experienced pockets of
higher-than-average volatility due to significant cross-currents from different
geographic regions. All year, investors focused on the Federal Reserve System's
(the Fed's) deliberations over when to begin normalizing interest rates.
However, while there were signs of gradual economic improvement in the U.S.,
economies abroad increasingly diverged. In June, for example, investors grew
concerned about the debt crisis in Greece. That news, in turn, was followed by
evidence of an economic slowdown in China, which only served to exacerbate
existing worries about growth trends in the emerging markets, a segment of the
global economy already being negatively impacted by slumping commodity prices,
including the price of crude oil, which has been in near-steady decline for
almost a year. Through September 30, 2015, the pockets of heightened market
volatility alluded to above had resulted in the Standard & Poor's 500 Index
turning in a negative (-5.27%) return over the first nine months of the year.
However, the S&P 500 recovered nicely in October, returning 8.43% for the month,
which boosted the index's year-to-date return into positive territory, at 2.71%.
Despite the headwinds still vexing the global economy, our longer-term view of
the U.S. economy has remained positive. Economic conditions in the U.S. have
generally been constructive, based largely on improvements in employment
statistics and an uptick in the housing sector, which has aided the consumer
side of the economy, where household spending has been rising modestly. U.S.
consumers also stand to benefit, potentially, from lower energy prices as the
winter weather approaches. We continue to believe the U.S. economy remains on
a slow, steady growth trend, and that it is unlikely to be disrupted by a slow
pace of interest-rate normalization by the Fed.
Pioneer Investments believes that investors in today's environment can
potentially benefit from the consistent and disciplined investment approach we
have used since our founding in 1928. We focus on identifying value across
global markets using proprietary research, careful risk management, and a
long-term perspective. Our ongoing goal is to produce compelling returns
consistent with the stated objectives of our investment products, and with our
shareowners' expectations. We believe our shareowners can benefit from the
experience and tenure of our investment teams as well as the insights generated
from our extensive research process.
2 Pioneer Global Multisector Income 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 Global Multisector Income Fund | Annual Report | 10/31/15 3
Portfolio Management Discussion | 10/31/15
The U.S. dollar acted as a bulwark among world currencies during the 12-month
period ended October 31, 2015, a period marked by shifting investor sentiments
and growing uncertainties in the fixed-income markets. In the following
interview, Charles Melchreit and Paresh Upadhyaya discuss the factors that
affected the performance of Pioneer Global Multisector Income Fund during the
12-month period. Mr. Melchreit, Director of Investment-Grade Management, a
senior vice president and a portfolio manager at Pioneer, and Mr. Upadhyaya, a
senior vice president and portfolio manager at Pioneer, are responsible for the
day-to-day management of the Fund, along with Kenneth J. Taubes, Executive Vice
President, Chief Investment Officer, U.S., and a portfolio manager at Pioneer,
and Andrew Feltus, Director of High Yield and Bank Loans, a senior vice
president and a portfolio manager at Pioneer.
Q How did the Fund perform during the 12 months ended October 31, 2015?
A Pioneer Global Multisector Income Fund's Class A shares returned -1.00% at
net asset value during the 12-month period ended October 31, 2015, while
the Fund's benchmark, the Barclays Global Aggregate Bond Index (the
Barclays Index), returned -3.07%. During the same period, the average
return of the 207 mutual funds in Lipper's Global Income Funds category was
-2.89%, and the average return of the 368 mutual funds in Morningstar's
World Bond Funds category was -3.85%.
Q How would you describe the investment environment during the 12-month
period ended October 31, 2015?
A Currencies proved to be the dominant factor influencing both risk and
opportunity in the global fixed-income markets during the period, as a
series of events and emerging trends created uncertainties in the minds of
market participants and encouraged investments in the perceived, relative
safety of the U.S. dollar.
Among the developments that caused investors to re-evaluate their tactics
and strategies were: an apparent weakening of economic growth trends across
much of the globe, signaled by falling commodity prices in general, and oil
prices in particular; the devaluation of the Chinese currency (the yuan),
which marked the first devaluation of that currency in its trading band in
more than two decades; the re-emergence of the debt crisis in Greece during
July 2015, which raised speculation about the future of the European Union;
and anticipation that the U.S. Federal Reserve System (the Fed) - which had
ended its quantitative easing purchases in late 2014 - would begin to
further tighten monetary policy by raising short-term interest rates, even
as other large central banks were loosening their policies.
4 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
Concerns about global economy growth escalated in the second quarter of
2015, as manufacturing activity in China - one of the key economies driving
global trends - contracted, and there was notable weakness in fixed-
investment growth. Driven by government policy, the Chinese economy during
the period continued to undergo a transformation aimed at moving it from a
production-based to consumption, or consumer-based economy. The contraction
of manufacturing output raised concerns that the country's economy was
weaker than had been reported. In response, the Chinese stock market
plummeted in value from its peak in mid-June, declining by 32% in just one
month. The sell-off raised concerns that China's economy was becoming
disorderly, and large divergences developed between the onshore and
offshore exchange rates for the yuan, which led to the Chinese government's
August decision to devalue the currency.
As market worries about China escalated, the prices of oil and other
commodities started moving lower for the second time in less than a year,
based on fears that a general economic slowdown would not only affect
commodity-producing emerging markets economies, but could also hurt
developed ones, including the U.S. economy.
Meanwhile, as these trends were developing, the government of Greece
announced that it would be unable to make its first scheduled repayment of
an earlier bailout loan from the International Monetary Fund (IMF). In
addition, a referendum vote by the Greek electorate gave overwhelming
support to the notion that the Greek government should take a hard line in
any discussions with the IMF, the European Central Bank (ECB), and the
European commission -- collectively known as "the Troika." However, the
Troika signaled that its members might not provide any further assistance
to Greece without concessions. In the end, as stocks declined in value and
Greek banks were forced to close their doors, the Greek government
retreated from its hard-line stance and accepted the Troika's terms. The
entire crisis, however, increased turmoil in world currency markets,
leading to further weakening of the euro and euro-linked currencies, and
further strengthening of the U.S. dollar.
In the United States, the Fed indicated throughout the period that it could
begin to hike the influential Federal funds rate, as evidence appeared that
the domestic economy was strengthening and that the nation's unemployment
rate was approaching the Fed's target for a non-accelerating inflation rate
of unemployment (NAIRU) of 4.9% -- a level that generally leads to higher
wage-inflation rates. (The Fed has kept the Federal funds rate at near zero
- between 0.00% and 0.25% - since 2009.) However, the rate hike did not
happen before the end of the 12-month period, as the Fed maintained a
cautious policy stance, citing global economic instability,
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 5
among other reasons, for delaying a rate increase. Towards the end of the
period, however, the Fed did send out new signals that a gradual series of
interest-rate hikes could begin in the near future.
Q In that environment, how did the Fund's positioning affect performance
relative to the Barclays Index during the 12-month period ended October 31,
2015?
A In a challenging period for investing in global fixed-income markets, the
Fund's Class A shares generated slightly negative results. Nevertheless,
the Fund solidly outperformed its benchmark, the Barclays Index, and its
peer groups during the period. Driving the Fund's benchmark-relative
outperformance during the period was our overweighting of the U.S. dollar,
an underweight in major foreign currencies, and short portfolio positions
held in those same foreign currencies -- notably, the euro and the Japanese
yen. Less consequential, but also a factor contributing to the Fund's
relative outperformance, was short positioning in some emerging markets
currencies.
The positive effects of the Fund's emphasis on the U.S. dollar more than
offset some factors that detracted, somewhat, from relative returns,
including the portfolio's short-duration stance in Europe, where interest
rates declined. (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). In addition, the Fund's
overweighting of the sovereign debt of some emerging markets nations and
underweight positions in both U.S. Treasuries and European sovereign bonds
detracted from benchmark-relative performance, but not enough to offset the
positive effects of the portfolio's overall currency positioning.
We maintained a short-duration stance in the Fund's portfolio throughout
the 12-month period, but the potentially negative effects of that
positioning were more than compensated for by the positive benefits of the
aforementioned currency positioning.
Q What were the principal factors affecting the Fund's yield during the
12-month period ended October 31, 2015?
A Interest rates throughout the globe tended to decline during the 12 months.
Consequently, the Fund's dividend* yield also declined as new investments -
with lower coupon rates - provided less current income than older portfolio
investments that had either reached maturity, or were sold.
* Dividends are not guaranteed.
6 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
Q Did the Fund invest in any derivative securities during the 12-month period
ended October 31, 2015? If so, did those investments affect the Fund's
performance?
A Yes, we did invest the Fund in forward currency transactions as part of our
strategy to emphasize the U.S. dollar relative to other world currencies.
The strategy, which included the use of the derivative securities, provided
significant help and contributed to the Fund's outperformance of its
benchmark. Conversely, a short portfolio position in U.S. Treasury futures
had a slight negative influence on the Fund's performance. In addition, the
Fund had a small position in credit default swaps early in the period,
which we employed in an attempt to hedge the portfolio's exposure to
high-yield securities. The credit default swaps had no material effect on
the Fund's results.
Q What is your investment outlook?
A We remain bullish on the U.S. dollar, especially if the monetary policies
of the world's central banks start diverging even further, with the Fed
perhaps moving to tighten policy and raise rates at the same time other
banks, such as the ECB, continue to ease their policies to facilitate
economic growth and reduce deflationary risks in their respective countries
or regions. In the absence of any unanticipated increase in inflation or
decline in economic growth rates, we expect that the Fed will begin a
gradual tightening process by raising interest over a series of steps.
With regard to the Fund, we expect to maintain our current strategy that
emphasizes the U.S. dollar in the portfolio's currency positioning. At the
same time, we anticipate keeping a short-duration stance in the portfolio,
given our previously stated belief that the Fed will soon begin to raise
short-term interest rates.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 7
Please refer to the Schedule of Investments on pages 17-36 for a full listing of
Fund securities.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, and economic and political
conditions.
When interest rates rise, the prices of fixed income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investments in high-yield or lower rated securities are subject to
greater-than-average price volatility, illiquidity and possibility of default.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The Fund may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
The securities issued by U.S. Government-sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
Floating rate loans and similar instruments may be illiquid or less liquid than
other instruments, and the value of any collateral can decline or be
insufficient to meet the issuer's obligations.
The value of municipal securities can be adversely affected by changes in
financial condition of municipal issuers, lower revenues, and regulatory and
political developments.
The Fund is subject to currency risk, meaning that the Fund could experience
losses based on changes in the exchange rate between non-U.S. currencies and the
U.S. dollar.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
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.
8 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
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 Global Multisector Income Fund | Annual Report | 10/31/15 9
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]
Foreign Government Bonds 37.8%
U.S. Corporate Bonds 19.3%
International Corporate Bonds 14.6%
U.S. Government Securities 14.2%
Collateralized Mortgage Obligations 7.7%
Municipal Bonds 2.7%
Asset Backed Securities 1.6%
Convertible Corporate Bonds 0.8%
U.S. Preferred Stocks 0.7%
Senior Secured Loans 0.3%
Convertible Preferred Stocks 0.3%
* Includes investment in Insurance Linked Securities totaling 0.3% of total
investment portfolio.
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings based on country of domicile)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United States 43.2%
New Zealand 6.1%
Canada 5.7%
Mexico 5.2%
United Kingdom 4.8%
Australia 4.2%
Supranational 3.4%
Norway 2.1%
Cayman Islands 1.9%
Italy 1.8%
Germany 1.7%
Netherlands 1.4%
Ivory Coast 1.3%
Japan 1.3%
Sweden 1.2%
Luxembourg 1.1%
Zambia 1.1%
Poland 1.0%
Romania 1.0%
Other (individually less than 1%) 10.5%
10 Largest Holdings
(As a percentage of total long-term holdings)**
1. New Zealand Government Bond, 5.5%, 4/15/23 3.61%
--------------------------------------------------------------------------------
2. United Kingdom Gilt, 1.75%, 7/22/19 2.89
--------------------------------------------------------------------------------
3. Australia Government Bond, 3.25%, 4/21/25 2.88
--------------------------------------------------------------------------------
4. New Zealand Government Bond, 4.5%, 4/15/27 2.49
--------------------------------------------------------------------------------
5. Canadian Government Bond, 2.25%, 6/1/25 2.23
--------------------------------------------------------------------------------
6. Canadian Government Bond, 1.75%, 9/1/19 2.03
--------------------------------------------------------------------------------
7. Bundesrepublik Deutschland, 1.0%, 8/15/25 1.70
--------------------------------------------------------------------------------
8. U.S. Treasury Inflation Indexed Bonds, 0.125%, 7/15/24 1.67
--------------------------------------------------------------------------------
9. Federal Home Loan Mortgage Corp., 4.0%, 5/1/44 1.36
--------------------------------------------------------------------------------
10. U.S. Treasury Inflation Indexed Bonds, 0.75%, 2/15/45 1.35
--------------------------------------------------------------------------------
** This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
10 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
Prices and Distributions | 10/31/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/15 10/31/14
--------------------------------------------------------------------------------
A $10.40 $10.91
--------------------------------------------------------------------------------
C $10.43 $10.94
--------------------------------------------------------------------------------
Y $10.50 $11.00
--------------------------------------------------------------------------------
Distributions per Share: 11/1/14-10/31/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.3080 $ 0.0047 $ 0.0916
--------------------------------------------------------------------------------
C $0.2128 $ 0.0047 $ 0.0916
--------------------------------------------------------------------------------
Y $0.3380 $ 0.0047 $ 0.0916
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Barclays Global Aggregate Bond Index is an unmanaged index that provides a
broad-based measure of the global investment-grade fixed-income markets. Index
returns are calculated monthly, assume reinvestment of dividends and, unlike
Fund returns, do not reflect any fees, expenses or sales charges. It is not
possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 12-14.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 11
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 Global Multisector Income Fund at
public offering price during the periods shown, compared to that of the Barclays
Global Aggregate Bond Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Barclays
Net Public Global
Asset Offering Aggregate
Value Price Bond
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
Life-of-Class
(12/27/07) 4.14% 3.53% 3.03%
5 Years 2.15 1.21 0.61
1 Year -1.00 -5.42 -3.07
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.52% 1.00%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Multisector Barclays Global Aggregate
Income Fund Bond Index
12/07 $ 9,550 $10,000
10/08 $ 9,100 $ 9,589
10/09 $11,064 $11,354
10/10 $11,861 $12,136
10/11 $12,243 $12,631
10/12 $12,975 $13,078
10/13 $12,918 $12,876
10/14 $13,326 $12,905
10/15 $13,193 $12,508
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 and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Global Multisector Income Fund | 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 Global Multisector Income Fund
during the periods shown, compared to that of the Barclays Global Aggregate Bond
Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Barclays
Global
Aggregate
If If Bond
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life-of-Class
(12/27/07) 3.27% 3.27% 3.03%
5 Years 1.29 1.29 0.61
1 Year -1.87 -1.87 -3.07
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.71% 1.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Multisector Barclays Global Aggregate
Income Fund Bond Index
12/07 $10,000 $10,000
10/08 $ 9,452 $ 9,589
10/09 $11,395 $11,354
10/10 $12,130 $12,136
10/11 $12,420 $12,631
10/12 $13,053 $13,078
10/13 $12,891 $12,876
10/14 $13,179 $12,905
10/15 $12,932 $12,508
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2016, for Class C shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Global Multisector Income Fund | 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 Global Multisector Income Fund
during the periods shown, compared to that of the Barclays Global Aggregate Bond
Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Barclays
Net Global
Asset Aggregate
Value Bond
Period (NAV) Index
--------------------------------------------------------------------------------
Life-of-Class
(12/27/07) 4.39% 3.03%
5 Years 2.46 0.61
1 Year -0.62 -3.07
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.50% 0.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global Multisector Barclays Global Aggregate
Income Fund Bond Index
12/07 $5,000,000 $5,000,000
10/08 $4,767,893 $4,794,284
10/09 $5,801,982 $5,677,007
10/10 $6,235,980 $6,068,024
10/11 $6,464,208 $6,315,276
10/12 $6,867,704 $6,538,894
10/13 $6,850,412 $6,438,203
10/14 $7,084,387 $6,452,328
10/15 $7,040,336 $6,254,023
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.
14 Pioneer Global Multisector Income 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 Global Multisector Income Fund
Based on actual returns from May 1, 2015, through October 31, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 5/1/15 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 10/31/15 $ 983.02 $ 978.66 $ 984.55
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.00 $ 9.48 $ 3.75
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, 1.90%,
and 0.75% for Class A, Class C and Class Y shares, respectively, multiplied
by the average account value over the period, multiplied by 184/365 (to
reflect the one-half year period).
Pioneer Global Multisector Income 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 Global Multisector Income 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 Y
--------------------------------------------------------------------------------
Beginning Account Value on 5/1/15 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 10/31/15 $1,020.16 $1,015.63 $1,021.42
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.09 $ 9.65 $ 3.82
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, 1.90%,
and 0.75% for Class A, Class C and Class Y shares, respectively, multiplied
by the average account value over the period, multiplied by 184/365 (to
reflect the one-half year period).
16 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
Schedule of Investments | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 0.3%
CAPITAL GOODS -- 0.1%
Electrical Components & Equipment -- 0.1%
56,000 General Cable Corp., 4.5%, 11/15/29 (Step) $ 38,255
--------------
Total Capital Goods $ 38,255
------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.2%
Homebuilding -- 0.2%
50,000 KB Home, 1.375%, 2/1/19 $ 45,969
--------------
Total Consumer Durables & Apparel $ 45,969
------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $105,600) $ 84,224
------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 0.7%
BANKS -- 0.3%
Diversified Banks -- 0.3%
724 7.88 Citigroup Capital XIII, Floating Rate Note, 10/30/40 $ 18,390
2,610 7.12 Citigroup, Inc., Floating Rate Note (Perpetual) 71,958
242 6.00 US Bancorp, Floating Rate Note (Perpetual) 6,486
--------------
$ 96,834
--------------
Total Banks $ 96,834
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.3%
Consumer Finance -- 0.2%
25 Ally Financial, Inc., 7.0% (Perpetual) (144A) $ 25,604
850 8.12 GMAC Capital Trust I, Floating Rate Note, 2/15/40 21,956
--------------
$ 47,560
------------------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.1%
1,000 5.90 State Street Corp., Floating Rate Note, 12/31/73 $ 26,620
--------------
Total Diversified Financials $ 74,180
------------------------------------------------------------------------------------------------------
INSURANCE -- 0.1%
Property & Casualty Insurance -- 0.1%
1,545 5.10 The Allstate Corp., Floating Rate Note, 1/15/53 $ 39,753
--------------
Total Insurance $ 39,753
------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $194,916) $ 210,767
------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 0.3%
BANKS -- 0.3%
Diversified Banks -- 0.3%
80 Wells Fargo & Co., 7.5% (Perpetual) $ 94,800
--------------
Total Banks $ 94,800
------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $83,502) $ 94,800
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 17
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 1.6%
FOOD & STAPLES RETAILING -- 0.2%
Food Retail -- 0.2%
48,125 CKE Restaurant Holdings, Inc., 4.474%,
3/20/43 (144A) $ 49,388
--------------
Total Food & Staples Retailing $ 49,388
------------------------------------------------------------------------------------------------------
BANKS -- 0.9%
Thrifts & Mortgage Finance -- 0.9%
56,835 Bear Stearns Asset Backed Securities Trust,
8.41%, 10/25/29 (Step) $ 57,210
24,280 5.07 Countrywide Asset-Backed Certificates, Floating
Rate Note, 12/25/35 24,876
3,667 Irwin Home Equity Loan Trust 2005-1, 5.82%,
6/25/35 (Step) 3,633
50,000 5.50 Mastr Specialized Loan Trust, Floating Rate
Note, 10/25/34 52,195
9,559 0.90 New Century Home Equity Loan Trust 2005-1,
Floating Rate Note, 3/25/35 9,481
10,566 5.91 Origen Manufactured Housing Contract Trust
2004-A, Floating Rate Note, 1/15/35 11,038
30,000 0.62 SMART ABS Series 2015-1US Trust, Floating Rate
Note, 8/14/17 30,004
29,948 Springleaf Funding Trust 2013-A, 2.58%,
9/15/21 (144A) 29,996
1,337 Structured Asset Securities Corp., 4.77%,
10/25/34 (Step) 1,385
51,989 Terwin Mortgage Trust Series TMTS 2005-16HE,
4.344999%, 9/25/36 (Step) 53,488
--------------
$ 273,306
--------------
Total Banks $ 273,306
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.5%
Other Diversified Financial Services -- 0.2%
50,000 Capital Auto Receivables Asset Trust 2013-1,
1.74%, 10/22/18 $ 50,094
------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.2%
61,125 Domino's Pizza Master Issuer LLC, 5.216%,
1/27/42 (144A) $ 63,601
------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.1%
25,000 First Investors Auto Owner Trust 2013-1,
2.02%, 1/15/19 (144A) $ 24,927
4,031 Santander Drive Auto Receivables Trust 2012-1,
3.78%, 11/15/17 4,040
--------------
$ 28,967
--------------
Total Diversified Financials $ 142,662
------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $454,453) $ 465,356
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 7.3%
BANKS -- 5.1%
Thrifts & Mortgage Finance -- 5.1%
90,698 3.50 Agate Bay Mortgage Trust 2015-1, Floating Rate
Note, 1/25/45 (144A) $ 91,385
5,031 0.65 Alternative Loan Trust 2003-14T1, Floating Rate
Note, 8/25/18 4,355
945 Alternative Loan Trust 2004-4CB, 4.25%, 4/25/34 946
37,827 1.72 Arran Residential Mortgages Funding 2010-1 Plc,
Floating Rate Note, 5/16/47 (144A) 37,842
2,563 0.65 Banc of America Alternative Loan Trust 2003-10,
Floating Rate Note, 12/25/33 2,553
14,761 Banc of America Alternative Loan Trust 2003-2,
5.75%, 4/25/33 15,290
9,355 Banc of America Alternative Loan Trust 2004-6,
5.0%, 7/25/19 9,592
8,340 Banc of America Mortgage Trust 2004-11,
5.75%, 1/25/35 8,524
8,747 Banc of America Mortgage Trust 2004-9,
5.5%, 11/25/34 8,899
94,561 Bayview Commercial Asset Trust 2007-2, 0.0%,
7/27/37 (Step) (144A) (c) (d) -
7,141 2.69 CHL Mortgage Pass-Through Trust 2003-56,
Floating Rate Note, 12/25/33 7,195
19,971 Citigroup Mortgage Loan Trust, Inc., 6.75%, 9/25/34 21,926
100,000 4.65 City Center Trust 2011-CCHP, Floating Rate Note,
7/17/28 (144A) 100,739
100,000 COMM 2012-LC4 Mortgage Trust, 4.063%, 12/12/44 106,661
50,000 COMM 2013-LC6 Mortgage Trust, 2.941%, 1/12/46 50,452
50,000 4.55 COMM 2015-CCRE25 Mortgage Trust, Floating Rate
Note, 8/12/48 51,545
33,655 Credit Suisse Commercial Mortgage Trust Series
2007-C1, 5.361%, 2/15/40 34,831
100,000 5.58 DBUBS 2011-LC3 Mortgage Trust, Floating Rate
Note, 8/12/44 (144A) 113,133
50,000 GS Mortgage Securities Corp. II, 3.377%, 5/10/45 52,192
25,000 GS Mortgage Securities Corp. II, 3.682%,
2/10/46 (144A) 25,094
42,561 GS Mortgage Securities Corp. II, 5.56%, 11/10/39 43,129
75,000 JP Morgan Chase Commercial Mortgage Securities
Corp., 2.84%, 12/17/47 75,161
41,833 0.56 JP Morgan Chase Commercial Mortgage Securities
Trust 2006-FL2, Floating Rate Note, 11/15/18 (144A) 40,034
35,000 JP Morgan Chase Commercial Mortgage Securities
Trust 2011-C5, 4.1712%, 8/17/46 37,931
6,634 2.49 JP Morgan Mortgage Trust 2004-A1, Floating Rate
Note, 2/25/34 6,737
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 19
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
10,575 JP Morgan Mortgage Trust 2004-S1, 5.0%, 9/25/34 $ 10,924
13,020 JP Morgan Mortgage Trust 2004-S1, 6.0%, 9/25/34 13,694
100,000 5.78 Merrill Lynch Mortgage Trust 2006-C2, Floating
Rate Note, 8/12/43 102,492
75,000 5.48 ML-CFC Commercial Mortgage Trust 2006-3,
Floating Rate Note, 7/12/46 75,574
43,989 3.25 NRP Mortgage Trust 2013-1, Floating Rate Note,
7/25/43 (144A) 43,548
GBP 59,747 0.99 Paragon Secured Finance No 1 Plc, Floating Rate
Note, 11/15/35 88,057
29,023 RAAC Series 2004-SP2 Trust, 6.0%, 1/25/32 29,530
6,497 0.74 RALI Series 2002-QS16 Trust, Floating Rate
Note, 10/25/17 6,305
32,505 2.50 Sequoia Mortgage Trust 2013-4, Floating Rate
Note, 4/27/43 31,284
24,006 2.56 Structured Asset Securities Corp. Mortgage
Certificates Series 2003-31A, Floating Rate
Note, 10/25/33 23,825
50,000 TimberStar Trust I REMICS, 5.668%,
10/15/36 (144A) 51,683
50,000 UBS Commercial Mortgage Trust 2012-C1,
3.4%, 5/12/45 51,917
--------------
$ 1,474,979
--------------
Total Banks $ 1,474,979
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.0%
Other Diversified Financial Services -- 0.8%
67,997 0.38 Crusade Global Trust No 1 of 2007, Floating Rate
Note, 4/19/38 $ 67,125
58,999 0.38 Crusade Global Trust No.2 of 2006, Floating Rate
Note, 11/15/37 58,743
92,336 Morgan Stanley Capital I Trust 2007-HQ13,
5.569%, 12/15/44 97,072
--------------
$ 222,940
------------------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.2%
59,249 3.50 Agate Bay Mortgage Trust 2015-5, Floating Rate
Note, 7/25/45 (144A) $ 60,147
--------------
Total Diversified Financials $ 283,087
------------------------------------------------------------------------------------------------------
GOVERNMENT -- 1.2%
Government -- 1.2%
100,000 4.30 Federal Home Loan Mortgage Corp., Floating Rate
Note, 9/26/44 (144A) $ 103,750
11,637 Federal National Mortgage Association REMICS,
4.5%, 6/25/29 12,469
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Government -- (continued)
45,000 5.20 FREMF Mortgage Trust 2010-K9 REMICS, Floating
Rate Note, 9/25/45 (144A) $ 49,681
25,000 4.49 FREMF Mortgage Trust 2011-K12, Floating Rate
Note, 1/25/46 (144A) 26,937
50,000 4.93 FREMF Mortgage Trust 2011-K702, Floating Rate
Note, 4/25/44 (144A) 53,019
50,000 5.05 FREMF Mortgage Trust 2011-K703, Floating Rate
Note, 7/25/44 (144A) 52,930
41,305 Government National Mortgage Association,
4.5%, 9/20/39 44,450
17,033 Government National Mortgage Association,
5.25%, 8/16/35 18,942
--------------
$ 362,178
--------------
Total Government $ 362,178
------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $2,070,308) $ 2,120,244
------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 30.8%
ENERGY -- 4.7%
Oil & Gas Drilling -- 0.4%
25,000 Pride International, Inc., 6.875%, 8/15/20 $ 24,623
100,000 Rowan Companies, Inc., 4.75%, 1/15/24 78,029
--------------
$ 102,652
------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.1%
25,000 Weatherford International, Ltd. Bermuda,
5.95%, 4/15/42 $ 16,938
25,000 Weatherford International, Ltd. Bermuda,
9.625%, 3/1/19 26,000
--------------
$ 42,938
------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.7%
60,000 Antero Resources Corp., 5.375%, 11/1/21 $ 55,200
15,000 Carrizo Oil & Gas, Inc., 7.5%, 9/15/20 14,962
50,000 EP Energy LLC, 9.375%, 5/1/20 43,500
45,000 Freeport-McMoran Oil & Gas LLC, 6.75%, 2/1/22 39,656
90,000 Linn Energy LLC, 6.25%, 11/1/19 21,150
23,000 Marathon Oil Corp., 5.9%, 3/15/18 24,985
25,000 Newfield Exploration Co., 5.375%, 1/1/26 23,750
100,000 Range Resources Corp., 5.0%, 3/15/23 88,750
75,000 SM Energy Co., 6.5%, 1/1/23 73,905
100,000 WPX Energy, Inc., 7.5%, 8/1/20 93,500
--------------
$ 479,358
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 21
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.8%
53,000 EnLink Midstream Partners LP, 4.4%, 4/1/24 $ 49,894
210,526 5.96 EP PetroEcuador via Noble Sovereign Funding I,
Ltd., Floating Rate Note, 9/24/19 167,368
21,000 Valero Energy Corp., 9.375%, 3/15/19 25,465
--------------
$ 242,727
------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.7%
25,000 Buckeye Partners LP, 6.05%, 1/15/18 $ 26,376
50,000 Crestwood Midstream Partners LP, 6.25%,
4/1/23 (144A) 42,500
25,000 DCP Midstream LLC, 9.75%, 3/15/19 (144A) 27,106
50,000 5.85 DCP Midstream LLC, Floating Rate Note,
5/21/43 (144A) 39,875
100,000 Kinder Morgan, Inc. Delaware, 5.55%, 6/1/45 84,185
25,000 Plains All American Pipeline LP, 4.65%, 10/15/25 24,949
25,000 Plains All American Pipeline LP, 6.125%, 1/15/17 26,155
10,000 Questar Pipeline Co., 5.83%, 2/1/18 10,858
25,000 Spectra Energy Capital LLC, 6.2%, 4/15/18 26,822
10,000 Spectra Energy Capital LLC, 6.75%, 7/15/18 10,914
60,000 Sunoco Logistics Partners Operations LP,
6.1%, 2/15/42 52,338
13,000 The Williams Companies, Inc., 7.75%, 6/15/31 12,163
100,000 TransCanada PipeLines, Ltd., 1.875%, 1/12/18 100,304
--------------
$ 484,545
--------------
Total Energy $ 1,352,220
------------------------------------------------------------------------------------------------------
MATERIALS -- 2.5%
Commodity Chemicals -- 0.1%
25,000 Methanex Corp., 4.25%, 12/1/24 $ 23,730
------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.4%
20,000 Eastman Chemical Co., 4.8%, 9/1/42 $ 19,278
EURO 100,000 Ineos Finance Plc, 4.0%, 5/1/23 105,662
--------------
$ 124,940
------------------------------------------------------------------------------------------------------
Construction Materials -- 1.2%
150,000 Cemex SAB de CV, 5.875%, 3/25/19 (144A) $ 151,650
30,000 Holcim US Finance Sarl & Cie SCS, 6.0%,
12/30/19 (144A) 33,665
150,000 Union Andina de Cementos SAA, 5.875%,
10/30/21 (144A) 150,188
--------------
$ 335,503
------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.4%
EURO 100,000 SIG Combibloc Holdings SCA, 7.75%,
2/15/23 (144A) $ 116,174
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.2%
35,000 Freeport-McMoRan, Inc., 3.875%, 3/15/23 $ 27,370
50,000 Volcan Cia Minera SAA, 5.375%, 2/2/22 (144A) 44,875
--------------
$ 72,245
------------------------------------------------------------------------------------------------------
Steel -- 0.2%
50,000 EVRAZ plc, 7.50%, 11/15/19 $ 47,625
25,000 Glencore Funding LLC, 4.125%, 5/30/23 (144A) 20,188
--------------
$ 67,813
--------------
Total Materials $ 740,405
------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 1.2%
Building Products -- 0.7%
30,000 Building Materials Corp of America, 5.375%,
11/15/24 (144A) $ 30,862
25,000 Masco Corp., 5.95%, 3/15/22 27,688
85,000 Masco Corp., 7.125%, 3/15/20 98,812
50,000 5.75 Stanley Black & Decker, Inc., Floating Rate Note,
12/15/53 52,875
--------------
$ 210,237
------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.1%
25,000 WireCo WorldGroup, Inc., 9.5%, 5/15/17 $ 22,750
------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy
Trucks -- 0.2%
60,000 Cummins, Inc., 5.65%, 3/1/98 $ 62,780
4,000 Cummins, Inc., 6.75%, 2/15/27 5,052
--------------
$ 67,832
------------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.0%+
7,000 Valmont Industries, Inc., 6.625%, 4/20/20 $ 7,973
------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.2%
40,000 GATX Corp., 6.0%, 2/15/18 $ 43,251
--------------
Total Capital Goods $ 352,043
------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 2.2%
Airlines -- 0.9%
92,846 Air Canada 2013-1 Class A Pass Through
Trust, 4.125%, 11/15/26 (144A) $ 94,239
9,460 Delta Air Lines 2010-2 Class A Pass Through
Trust, 4.95%, 5/23/19 9,909
68,223 United Airlines 2013-1 Class B Pass Through
Trust, 5.375%, 8/15/21 70,525
93,705 US Airways 2013-1 Class A Pass Through
Trust, 3.95%, 5/15/27 95,111
--------------
$ 269,784
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 23
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Marine -- 0.7%
200,000 Pelabuhan Indonesia II PT, 4.25%, 5/5/25 (144A) $ 183,500
------------------------------------------------------------------------------------------------------
Railroads -- 0.1%
25,000 Burlington Northern Santa Fe LLC, 5.75%, 3/15/18 $ 27,398
------------------------------------------------------------------------------------------------------
Airport Services -- 0.5%
150,000 Aguila 3 SA, 7.875%, 1/31/18 (144A) $ 153,375
--------------
Total Transportation $ 634,057
------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.1%
Home Furnishings -- 0.1%
25,000 Mohawk Industries, Inc., 3.85%, 2/1/23 $ 25,215
--------------
Total Consumer Durables & Apparel $ 25,215
------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.0%
Casinos & Gaming -- 0.7%
25,000 International Game Technology, 7.5%, 6/15/19 $ 26,812
200,000 Wynn Macau Ltd., 5.25%, 10/15/21 (144A) 183,000
--------------
$ 209,812
------------------------------------------------------------------------------------------------------
Education Services -- 0.3%
75,000 Tufts University, 5.017%, 4/15/12 $ 77,804
--------------
Total Consumer Services $ 287,616
------------------------------------------------------------------------------------------------------
MEDIA -- 0.7%
Cable & Satellite -- 0.7%
25,000 Sky Plc, 6.1%, 2/15/18 (144A) $ 27,205
200,000 Ziggo Bond Finance BV, 5.875%, 1/15/25 (144A) 190,500
--------------
$ 217,705
--------------
Total Media $ 217,705
------------------------------------------------------------------------------------------------------
RETAILING -- 0.2%
Internet Retail -- 0.2%
50,000 Expedia, Inc., 5.95%, 8/15/20 $ 55,416
--------------
Total Retailing $ 55,416
------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.0%+
Drug Retail -- 0.0%+
13,149 CVS Pass-Through Trust, 5.773%, 1/10/33 (144A) $ 14,446
--------------
Total Food & Staples Retailing $ 14,446
------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.5%
Brewers -- 0.1%
20,000 Anheuser-Busch InBev Worldwide, Inc.,
7.75%, 1/15/19 $ 23,358
------------------------------------------------------------------------------------------------------
Agricultural Products -- 0.1%
50,000 Viterra, Inc., 5.95%, 8/1/20 (144A) $ 45,000
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 1.2%
EURO 100,000 Darling Global Finance BV, 4.75%, 5/30/22 (144A) $ 102,723
70,000 Kraft Foods Group, Inc., 3.5%, 6/6/22 71,386
150,000 Post Holdings, Inc., 7.375%, 2/15/22 158,040
15,000 Post Holdings, Inc., 8.0%, 7/15/25 (144A) 16,275
--------------
$ 348,424
------------------------------------------------------------------------------------------------------
Tobacco -- 0.1%
20,000 Reynolds American, Inc., 3.75%, 5/20/23 (144A) $ 20,175
--------------
Total Food, Beverage & Tobacco $ 436,957
------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.3%
Health Care Technology -- 0.3%
75,000 MedAssets, Inc., 8.0%, 11/15/18 $ 76,406
--------------
Total Health Care Equipment & Services $ 76,406
------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.4%
Pharmaceuticals -- 0.4%
21,000 DPx Holdings BV, 7.5%, 2/1/22 (144A) $ 21,420
EURO 100,000 Valeant Pharmaceuticals International, Inc.,
4.5%, 5/15/23 88,988
--------------
$ 110,408
--------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 110,408
------------------------------------------------------------------------------------------------------
BANKS -- 3.6%
Diversified Banks -- 3.5%
200,000 9.25 Access Bank Plc, Floating Rate Note,
6/24/21 (144A) $ 173,000
EURO 50,000 AXA Bank Europe SCF, 3.5%, 11/5/20 63,907
125,000 6.50 Bank of America Corp., Floating Rate Note, 10/23/49 130,626
15,000 5.95 Citigroup, Inc., Floating Rate Note (Perpetual) 14,888
75,000 5.90 Citigroup, Inc., Floating Rate Note (Perpetual) 74,625
75,000 Cooperatieve Centrale Raiffeisen-Boerenleenbank
BA Netherlands, 3.875%, 2/8/22 79,390
INR 700,000 Inter-American Development Bank, 6.0%, 9/5/17 10,574
NZD 45,000 International Bank for Reconstruction &
Development, 4.625%, 10/6/21 32,321
AUD 185,000 International Bank for Reconstruction &
Development, 5.75%, 10/21/19 148,598
100,000 Intesa Sanpaolo S.p.A., 6.5%, 2/24/21 (144A) 115,188
100,000 Macquarie Bank, Ltd., 6.625%, 4/7/21 (144A) 112,918
50,000 4.50 Scotiabank Peru SAA, Floating Rate Note,
12/13/27 (144A) 48,438
--------------
$ 1,004,473
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 25
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Regional Banks -- 0.1%
35,000 6.75 The PNC Financial Services Group, Inc., Floating
Rate Note (Perpetual) $ 37,720
--------------
Total Banks $ 1,042,193
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.2%
Other Diversified Financial Services -- 0.9%
25,000 Carlyle Holdings II Finance LLC, 5.625%,
3/30/43 (144A) $ 26,577
INR 5,100,000 European Bank for Reconstruction &
Development, 6.0%, 3/3/16 77,637
NZD 100,000 JPMorgan Chase & Co., 4.25%, 11/2/18 68,862
90,000 6.75 JPMorgan Chase & Co., Floating Rate Note,
1/29/49 97,650
--------------
$ 270,726
------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.8%
55,000 Aviation Capital Group Corp., 6.75%,
4/6/21 (144A) $ 62,288
100,000 BM&FBovespa SA -- Bolsa de Valores
Mercadorias e Futuros, 5.5%, 7/16/20 (144A) 102,000
56,000 Cantor Fitzgerald LP, 7.875%, 10/15/19 (144A) 61,239
--------------
$ 225,527
------------------------------------------------------------------------------------------------------
Consumer Finance -- 1.6%
INR 17,800,000 International Finance Corp., 6.3%, 11/25/24 $ 256,037
INR 3,790,000 International Finance Corp., 7.75%, 12/3/16 58,452
INR 9,500,000 International Finance Corp., 8.25%, 6/10/21 153,323
--------------
$ 467,812
------------------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.3%
100,000 KKR Group Finance Co. II LLC, 5.5%, 2/1/43 (144A) $ 103,508
------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.6%
10,000 Macquarie Group, Ltd., 6.0%, 1/14/20 (144A) $ 11,093
75,000 Morgan Stanley, 4.1%, 5/22/23 76,208
50,000 Morgan Stanley, 4.875%, 11/1/22 53,917
25,000 Raymond James Financial, Inc., 4.25%, 4/15/16 25,338
--------------
$ 166,556
--------------
Total Diversified Financials $ 1,234,129
------------------------------------------------------------------------------------------------------
INSURANCE -- 1.8%
Life & Health Insurance -- 0.5%
45,000 Protective Life Corp., 7.375%, 10/15/19 $ 52,912
100,000 5.88 Prudential Financial, Inc., Floating Rate
Note, 9/15/42 106,000
--------------
$ 158,912
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Multi-line Insurance -- 0.3%
60,000 AXA SA, 8.6%, 12/15/30 $ 82,163
------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.6%
35,000 Delphi Financial Group, Inc., 7.875%, 1/31/20 $ 41,253
15,000 OneBeacon US Holdings, Inc., 4.6%, 11/9/22 15,178
110,000 6.50 The Allstate Corp., Floating Rate Note, 5/15/57 121,550
--------------
$ 177,981
------------------------------------------------------------------------------------------------------
Reinsurance -- 0.4%
31,264 Altair Re, Variable Rate Notes, 6/30/16 (e) $ 2,210
30,000 Lorenz Re, Ltd., Variable Rate Notes, 3/31/18 (e) 32,067
30,000 Pangaea Re, Series 2015-2, Notes, 11/30/19 (e) 31,122
30,000 Pangaea Re., Variable Rate Notes, 7/1/18 (c) (e) 540
JPY 2,513,319 3.20 Tralee Segregated Account (KANE SAC Ltd.),
Floating Rate Note 7/15/17 (e) 20,805
25,000 5.88 Wilton Re Finance LLC, Floating Rate Note,
3/30/33 (144A) 26,318
--------------
$ 113,062
--------------
Total Insurance $ 532,118
------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.6%
Office REIT -- 0.4%
40,000 Alexandria Real Estate Equities, Inc., 4.6%, 4/1/22 $ 41,789
35,000 Highwoods Realty LP, 3.625%, 1/15/23 34,936
50,000 Piedmont Operating Partnership LP, 3.4%, 6/1/23 46,965
--------------
$ 123,690
------------------------------------------------------------------------------------------------------
Specialized REIT -- 0.2%
50,000 DuPont Fabros Technology LP, 5.875%, 9/15/21 $ 52,500
--------------
Total Real Estate $ 176,190
------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.5%
Internet Software & Services -- 0.3%
100,000 Bankrate, Inc., 6.125%, 8/15/18 (144A) $ 100,375
------------------------------------------------------------------------------------------------------
Home Entertainment Software -- 0.2%
50,000 Activision Blizzard, Inc., 6.125%, 9/15/23 (144A) $ 54,438
--------------
Total Software & Services $ 154,813
------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.4%
Electronic Manufacturing Services -- 0.4%
100,000 Flextronics International, Ltd., 4.625%, 2/15/20 $ 103,750
--------------
Total Technology Hardware & Equipment $ 103,750
------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.3%
Semiconductor Equipment -- 0.1%
25,000 Entegris, Inc., 6.0%, 4/1/22 (144A) $ 25,750
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 27
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Semiconductors -- 0.2%
55,000 Micron Technology, Inc., 5.25%, 8/1/23 (144A) $ 53,734
--------------
Total Semiconductors & Semiconductor Equipment $ 79,484
------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 1.5%
Integrated Telecommunication Services -- 1.1%
COP 124,000,000 Empresa de Telecomunicaciones de Bogota,
7.0%, 1/17/23 (144A) $ 37,667
11,000 Frontier Communications Corp., 7.125%, 1/15/23 9,818
19,000 Frontier Communications Corp., 8.5%, 4/15/20 19,570
50,000 GCI, Inc., 6.75%, 6/1/21 51,750
EURO 50,000 Telefonica Emisiones SAU, 5.496%, 4/1/16 56,228
25,000 Unison Ground Lease Funding LLC, 2.981%,
3/16/43 (144A) 25,061
38,000 Verizon Communications, Inc., 5.012%, 8/21/54 35,127
65,000 Verizon Communications, Inc., 6.55%, 9/15/43 77,807
--------------
$ 313,028
------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.4%
30,000 Crown Castle Towers LLC, 4.883%, 8/15/20 (144A) $ 32,398
75,000 T-Mobile USA, Inc., 6.625%, 11/15/20 77,250
--------------
$ 109,648
--------------
Total Telecommunication Services $ 422,676
------------------------------------------------------------------------------------------------------
UTILITIES -- 3.1%
Electric Utilities -- 1.9%
100,000 Electricite de France SA, 6.0%, 1/22/14 (144A) $ 101,234
200,000 8.13 Enel S.p.A., Floating Rate Note, 9/24/73 (144A) 230,500
70,000 Public Service Co. of New Mexico, 7.95%, 5/15/18 79,225
50,000 6.25 Southern California Edison Co., Floating Rate
Note (Perpetual) 55,625
95,000 Talen Energy Supply LLC, 6.5%, 6/1/25 (144A) 84,312
10,000 West Penn Power Co., 5.95%, 12/15/17 (144A) 10,848
--------------
$ 561,744
------------------------------------------------------------------------------------------------------
Gas Utilities -- 0.4%
88,907 Nakilat, Inc., 6.267%, 12/31/33 (144A) $ 102,442
------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy
Traders -- 0.8%
200,000 Colbun SA, 4.5%, 7/10/24 (144A) $ 201,154
33,127 Panoche Energy Center LLC, 6.885%,
7/31/29 (144A) 38,537
--------------
$ 239,691
--------------
Total Utilities $ 903,877
------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $9,081,126) $ 8,952,124
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 13.4%
60,000 Fannie Mae, 3.0%, 11/17/15 (TBA) $ 62,411
200,000 Fannie Mae, 3.5%, 12/10/15 (TBA) 207,677
52,313 Fannie Mae, 3.5%, 2/1/29 55,262
96,704 Fannie Mae, 3.5%, 4/1/45 100,729
235,305 Fannie Mae, 3.5%, 5/1/44 245,579
178,626 Fannie Mae, 3.5%, 9/1/42 186,498
184,771 Fannie Mae, 4.0%, 11/1/44 196,796
177,919 Fannie Mae, 4.5%, 11/1/44 192,933
27,255 Fannie Mae, 4.5%, 4/1/41 29,616
26,884 Fannie Mae, 5.0%, 6/1/40 29,684
181,534 Federal Home Loan Mortgage Corp., 3.5%, 12/1/44 188,641
195,373 Federal Home Loan Mortgage Corp., 4.0%, 1/1/44 207,652
22,251 Federal Home Loan Mortgage Corp., 4.0%, 12/1/44 23,714
348,995 Federal Home Loan Mortgage Corp., 4.0%, 5/1/44 370,928
69,893 Federal Home Loan Mortgage Corp., 4.5%, 6/1/41 75,811
49,019 Federal Home Loan Mortgage Corp., 5.0%, 10/1/38 53,646
42,231 Federal Home Loan Mortgage Corp., 5.0%, 9/1/38 46,221
35,701 Federal Home Loan Mortgage Corp., 6.0%, 8/1/37 40,590
22,273 Federal Home Loan Mortgage Corp., 6.5%, 1/1/38 25,454
70,029 Federal Home Loan Mortgage Corp., 6.5%, 4/1/38 84,267
181,705 Government National Mortgage Association I,
3.5%, 1/15/45 190,346
47,337 Government National Mortgage Association I,
4.5%, 1/15/40 51,943
37,196 Government National Mortgage Association I,
4.5%, 7/15/41 40,279
42,240 Government National Mortgage Association I,
4.5%, 9/15/40 46,006
58,560 Government National Mortgage Association II,
4.5%, 9/20/41 63,898
60,000 U.S. Treasury Bonds, 4.5%, 2/15/36 77,993
60,000 U.S. Treasury Bonds, 4.5%, 8/15/39 77,874
476,739 U.S. Treasury Inflation Indexed Bonds,
0.125%, 7/15/24 456,403
100,617 U.S. Treasury Inflation Indexed Bonds, 0.25%, 1/15/25 96,674
414,936 U.S. Treasury Inflation Indexed Bonds, 0.75%, 2/15/45 368,024
------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(Cost $3,816,701) $ 3,893,549
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 29
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 37.0%
200,000 Africa Finance Corp., 4.375%, 4/29/20 (144A) $ 202,800
AUD 1,050,000 Australia Government Bond, 3.25%, 4/21/25 788,408
EURO 50,000 Austria Government Bond, 4.15%, 3/15/37
(144A) 82,855
200,000 Banque Cent de Tunisie, 5.75%, 1/30/25 (144A) 187,532
200,000 Brazil Minas SPE via State of Minas Gerais,
5.333%, 2/15/28 (144A) 162,750
EURO 405,000 Bundesrepublik Deutschland, 1.0%, 8/15/25 465,674
CAD 700,000 Canadian Government Bond, 1.75%, 9/1/19 555,719
CAD 750,000 Canadian Government Bond, 2.25%, 6/1/25 608,646
CNY 500,000 China Government Bond, 3.0%, 11/21/19 78,297
CNY 500,000 China Government Bond, 3.38%, 11/21/24 78,668
200,000 Croatia Government International Bond, 5.5%,
4/4/23 (144A) 206,000
EURO 100,000 Italy Buoni Poliennali Del Tesoro, 4.75%,
8/1/23 (144A) 138,613
200,000 Ivory Coast Government International Bond,
5.375%, 7/23/24 (144A) 179,000
200,000 Ivory Coast Government International Bond,
6.375%, 3/3/28 (144A) 184,250
JPY 20,000,000 Japan Government Ten Year Bond, 1.0%, 12/20/21 175,189
JPY 20,000,000 Japan Government Twenty Year Bond, 1.5%, 3/20/19 173,992
MXN 3,830,000 Mexican Bonos, 4.75%, 6/14/18 233,877
MXN 2,400,000 Mexican Bonos, 6.5%, 6/9/22 152,142
MXN 300,000 Mexican Bonos, 7.5%, 6/3/27 20,029
MXN 3,615,898 Mexican Udibonos, 2.0%, 6/9/22 212,228
MXN 4,798,449 Mexican Udibonos, 3.5%, 12/14/17 308,608
MXN 3,862,751 Mexican Udibonos, 5.0%, 6/16/16 241,185
EURO 100,000 Mexico Government International Bond,
4.0%, 3/15/15 99,070
200,000 Namibia International Bonds, 5.25%,
10/29/25 (144A) 198,000
NZD 905,000 New Zealand Government Bond, 4.5%, 4/15/27 681,603
NZD 1,250,000 New Zealand Government Bond, 5.5%, 4/15/23 985,716
NOK 1,800,000 Norway Government Bond, 2.0%, 5/24/23 221,047
NOK 2,700,000 Norway Government Bond, 4.5%, 5/22/19 359,298
PLN 1,000,000 Poland Government Bond, 5.25%, 10/25/17 277,470
150,000 Provincia de Buenos Aires Argentina, 9.95%,
6/9/21 (144A) 154,500
AUD 100,000 Queensland Treasury Corp., 5.75%, 7/22/24 85,928
RON 380,000 Romania Government Bond, 5.85%, 4/26/23 111,051
RON 570,000 Romania Government Bond, 5.95%, 6/11/21 165,034
RUB 5,545,000 Russian Federal Bond -- Federal Loan Obligations,
7.0%, 8/16/23 73,664
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- (continued)
200,000 Sri Lanka Government International Bond,
6.85%, 11/3/25 (144A) $ 198,750
SEK 2,300,000 Sweden Government Bond, 2.5%, 5/12/25 315,943
GBP 500,000 United Kingdom Gilt, 1.75%, 7/22/19 790,471
GBP 70,000 United Kingdom Gilt, 4.25%, 9/7/39 139,938
GBP 75,000 United Kingdom Gilt, 8.75%, 8/25/17 132,988
400,000 Zambia Government International Bond,
5.375%, 9/20/22 (144A) 296,000
------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $11,853,178) $ 10,722,933
------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 2.6% (f)
Municipal Airport -- 0.1%
20,000 Indianapolis Airport Authority, 5.1%, 1/15/17 $ 21,022
------------------------------------------------------------------------------------------------------
Municipal Development -- 0.2%
50,000 California Statewide Communities Development
Authority, 6.0%, 8/15/42 $ 58,993
------------------------------------------------------------------------------------------------------
Municipal General -- 0.6%
70,000 JobsOhio Beverage System, 3.985%, 1/1/29 $ 73,153
20,000 JobsOhio Beverage System, 4.532%, 1/1/35 21,249
30,000 Virginia Commonwealth Transportation Board,
4.0%, 5/15/31 32,036
30,000 Virginia Commonwealth Transportation Board,
4.0%, 5/15/32 31,873
--------------
$ 158,311
------------------------------------------------------------------------------------------------------
Higher Municipal Education -- 0.9%
25,000 Baylor University, 4.313%, 3/1/42 $ 25,507
25,000 Massachusetts Health & Educational Facilities
Authority, Massachusetts Institute of Technology -
Series K, 5.5%, 7/1/32 33,721
25,000 Massachusetts Institute of Technology,
5.6%, 7/1/11 30,799
50,000 New Jersey Educational Facilities Authority,
Princeton University Series D, 4.0%, 7/1/45 52,326
20,000 Permanent University Fund, 5.0%, 7/1/30 23,853
50,000 University of California, 3.38%, 5/15/28 49,954
50,000 University of Virginia, Green Bond Series A,
5.0%, 4/1/45 57,885
--------------
$ 274,045
------------------------------------------------------------------------------------------------------
Municipal Medical -- 0.1%
25,000 Massachusetts Development Finance Agency,
5.25%, 4/1/37 $ 28,722
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 31
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Municipal School District -- 0.2%
25,000 Frisco Independent School District, 4.0%,
8/15/40 (g) $ 26,084
25,000 Frisco Independent School District, 4.0%,
8/15/45 (g) 25,923
--------------
$ 52,007
------------------------------------------------------------------------------------------------------
Municipal Obligation -- 0.5%
50,000 State of Texas, 4.0%, 10/1/44 (g) $ 51,978
50,000 State of Washington, 5.0%, 7/1/30 (g) 58,796
20,000 Washington Suburban Sanitary Commission,
4.0%, 6/1/43 (g) 20,841
20,000 Washington Suburban Sanitary Commission,
4.0%, 6/1/44 (g) 20,826
--------------
$ 152,441
------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $705,287) $ 745,541
------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 0.2%**
TELECOMMUNICATION SERVICES -- 0.2%
Integrated Telecommunication Services -- 0.2%
42,977 3.25 West Corp., B-10 Term Loan (First Lien), 6/30/18 $ 42,661
--------------
Total Telecommunication Services $ 42,661
------------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTERESTS
(Cost $43,461) $ 42,661
------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 94.2%
(Cost $28,408,532) (a)(h) $ 27,332,199
------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 5.8% $ 1,695,943
------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 29,028,142
======================================================================================================
+ Amount rounds to less than 0.1%.
(Perpetual) Security with no stated maturity date.
(Step) Step up bond issued with an initial coupon rate which converts to a
higher rate at a later date.
REIT Real Estate Investment Trust.
REMICS Real Estate Mortgage Investment Conduits.
(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 $6,884,446, or 23.7% of total net assets.
(TBA) "To Be Announced" Securities.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
** Senior floating rate loan interests in which the Fund invests
generally pay interest at rates that are periodically redetermined
by reference to a base lending rate plus a premium. These base
lending rates are generally (i) the lending rate offered by one or
more major European banks, such as LIBOR (London InterBank Offered
Rate), (ii) the prime rate offered by one or more major United
States banks, (iii) the certificate of deposit rate 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
$28,413,594 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 624,893
Aggregate gross unrealized depreciation for all investments in which
in which there is an excess of tax cost over value (1,706,288)
-----------
Net unrealized depreciation $(1,081,395)
===========
(b) Debt obligation with a variable interest rate. Rate shown is rate
at end of period.
(c) Security issued with a zero coupon. Income is earned through
accretion of discount.
(d) Security represents the interest only portion payments on a pool of
underlying mortgages or mortgage-backed securities.
(e) Structured reinsurance investment. At October 31, 2015, the value
of these securities amounted to $86,744 or 0.3% of total net
assets. See Notes to Financial Statements -- Note 1I.
(f) Consists of Revenue Bonds unless otherwise indicated.
(g) Represents a General Obligation Bond.
(h) Distributions of investments by country of domicile (excluding
temporary cash investments) as a percentage of total investment in
securities, is as follows:
United States 43.2%
New Zealand 6.1
Canada 5.7
Mexico 5.2
United Kingdom 4.8
Australia 4.2
Supranational 3.4
Norway 2.1
Cayman Islands 1.9
Italy 1.8
Germany 1.7
Netherlands 1.4
Ivory Coast 1.3
Japan 1.3
Sweden 1.2
Luxembourg 1.1
Zambia 1.1
Poland 1.0
Romania 1.0
Other (individually less than 1.0%) 10.5
-----
100.0%
=====
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 33
Schedule of Investments | 10/31/15 (continued)
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
AUD Australian Dollar
CAD Canadian Dollar
CNY Chinese Yuan
COP Colombian Peso
EURO Euro
GBP British Pound Sterling
INR Indian Rupee
JPY Japanese Yen
MXN Mexican Peso
NOK Norwegian Krone
NZD New Zealand Dollar
PLN New Polish Zloty
RON Romanian New Leu
RUB Russian Ruble
SEK Swedish Krona
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 $ 3,003,909 $3,997,551
Other Long-Term Securities $12,348,753 $5,336,553
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
---------------------------------------------------------------------------------------------------------
Notional Obligation Credit Expiration Premiums Unrealized
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date Received Appreciation
---------------------------------------------------------------------------------------------------------
Markit CDX
J.P. Morgan North America
Chase High Yield
343,332 Bank Index 5.00% B+ 12/20/19 $18,632 $8,406
---------------------------------------------------------------------------------------------------------
CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
---------------------------------------------------------------------------------------------------------
Notional Obligation Credit Expiration Premiums Unrealized
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date Paid Depreciation
---------------------------------------------------------------------------------------------------------
Morgan
Stanley Diamond
Capital Offshore
50,000 Services LLC Drill Inc. 1.00% BBB+ 12/20/19 $(1,873) $(3,859)
---------------------------------------------------------------------------------------------------------
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Based on Standard & Poor's rating of the issuer or the weighted average of
all the underlying securities in the index.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes to
Financial Statements -- Note 1A.
The following is a summary of the inputs used as of October 31, 2015, in valuing
the Fund's assets:
------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 84,224 $ -- $ 84,224
Preferred Stocks
Diversified Financials
Consumer Finance 21,956 25,604 -- 47,560
All Other Preferred Stocks 163,207 -- -- 163,207
Convertible Preferred Stock 94,800 -- -- 94,800
Asset Backed Securities -- 465,356 -- 465,356
Collateralized Mortgage Obligations -- 2,120,244 -- 2,120,244
Corporate Bonds
Insurance
Reinsurance -- 26,318 86,744 113,062
All Other Corporate Bonds -- 8,839,062 -- 8,839,062
U.S. Government Agency Obligations -- 3,893,549 -- 3,893,549
Foreign Government Bonds -- 10,722,933 -- 10,722,933
Municipal Bonds -- 745,541 -- 745,541
Senior Floating Rate Loan Interest -- 42,661 -- 42,661
------------------------------------------------------------------------------------------
Total $279,963 $26,965,492 $86,744 $27,332,199
==========================================================================================
Other Financial Instruments
Unrealized appreciation on
futures contracts $ 12,456 $ -- $ -- $ 12,456
Unrealized appreciation on
forward foreign currency contracts -- 28,268 -- 28,268
Unrealized depreciation on
forward foreign currency contracts -- (220,639) -- (220,639)
Net unrealized appreciation on
swap contracts -- 4,547 -- 4,547
------------------------------------------------------------------------------------------
Total Other Financial Instruments $ 12,456 $ (187,824) $ -- $ (175,368)
==========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 35
Schedule of Investments | 10/31/15 (continued)
The following is a summary of the fair valuation of certain Fund's assets and
liabilities as of October 31, 2015:
----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------
Assets:
Futures collateral $ -- $ 71,550 $ -- $ 71,550
Centrally cleared swap collateral -- 25,000 -- 25,000
Variation margin for centrally
cleared swap contracts -- 326 -- 326
Foreign currencies, at value -- 1,213,556 -- 1,213,556
Liabilities:
Variation margin for futures contracts (1,574) -- -- (1,574)
----------------------------------------------------------------------------------------
Total: $(1,574) $1,310,432 $ -- $1,308,858
========================================================================================
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
-----------------------------------------------------------------------------------------
Preferred Corporate
Stocks Bonds Total
-----------------------------------------------------------------------------------------
Balance as of 10/31/14 $ 31,404 $ 53,730 $ 85,134
Realized gain (loss)(1) -- 66 66
Change in unrealized appreciation (depreciation)(2) -- (60,001) (60,001)
Purchases -- 80,281 80,281
Sales -- (18,736) (18,736)
Transfers in and out of Level 3 categories* (31,404) 31,404 --
Transfers in and out of Level 3* -- -- --
-----------------------------------------------------------------------------------------
Balance as of 10/31/15 $ -- $ 86,744 $ 86,744
=========================================================================================
(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 $(60,001)
========
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
Statement of Assets and Liabilities | 10/31/15
ASSETS:
Investment in securities, at value (cost $28,408,532) $ 27,332,199
Cash 1,088,834
Futures collateral 71,550
Centrally cleared swap collateral 25,000
Foreign currencies, at value (cost $1,229,431) 1,213,556
Receivables --
Investment securities sold 236,622
Fund shares sold 24,437
Interest 273,079
Variation margin for centrally cleared swap contracts 326
Swap contracts, premium paid 16,759
Unrealized appreciation on futures contracts 12,456
Net unrealized appreciation on swap contracts 4,547
Unrealized appreciation on forward foreign currency contracts 28,268
Due from Pioneer Investment Management, Inc. 21,486
Prepaid expenses 33,479
--------------------------------------------------------------------------------------
Total assets $30,382,598
======================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 934,163
Fund shares repurchased 3,099
Distributions 42,347
Trustee fees 630
Variation margin for futures contracts 1,574
Unrealized depreciation on forward foreign currency contracts 220,639
Cash held at broker 14,006
Due to affiliates 52,722
Accrued expenses 85,276
--------------------------------------------------------------------------------------
Total liabilities $ 1,354,456
======================================================================================
NET ASSETS:
Paid-in capital $30,033,009
Undistributed net investment income 344,017
Accumulated net realized loss on investments, futures contracts,
swap contracts, written options, and foreign currency transactions (76,974)
Net unrealized depreciation on investments (1,076,333)
Net unrealized appreciation on futures contracts 12,456
Net unrealized appreciation on swap contracts 4,547
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (212,580)
--------------------------------------------------------------------------------------
Total net assets $ 29,028,142
======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $12,736,873/1,224,468 shares) $ 10.40
Class C (based on $4,113,355/394,224 shares) $ 10.43
Class Y (based on $12,177,914/1,160,004 shares) $ 10.50
MAXIMUM OFFERING PRICE:
Class A ($10.40 (divided by) 95.5%) $ 10.89
======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 37
Statement of Operations
For the Year Ended 10/31/15
INVESTMENT INCOME:
Interest (net of foreign taxes withheld of $2,429) $ 1,107,411
Dividends 30,956
----------------------------------------------------------------------------------------------
Total investment income $ 1,138,367
----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 147,223
Transfer agent fees
Class A 10,902
Class C 5,663
Class Y 759
Distribution fees
Class A 31,237
Class C 45,470
Shareholder communications expense 123,015
Administrative expense 25,167
Custodian fees 37,204
Registration fees 46,412
Professional fees 70,640
Printing expense 35,582
Pricing expense 25,551
Fees and expenses of non-affiliated Trustees 7,178
Miscellaneous 10,392
----------------------------------------------------------------------------------------------
Total expenses $ 622,395
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (318,032)
----------------------------------------------------------------------------------------------
Net expenses $ 304,363
----------------------------------------------------------------------------------------------
Net investment income $ 834,004
----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS, SWAP CONTRACTS, WRITTEN OPTIONS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (790,287)
Futures contracts (67,585)
Written options 1,387
Swap contracts (14)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 1,213,420 $ 356,921
----------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $(1,208,276)
Futures contracts 30,465
Written options (1,386)
Swap contracts 4,599
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (295,702) $(1,470,300)
----------------------------------------------------------------------------------------------
Net realized and unrealized loss on investments, futures
contracts, swap contracts, written options and forward
foreign currency contracts and other assets and liabilities
denominated in foreign currencies $(1,113,379)
----------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (279,375)
==============================================================================================
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
Statements of Changes in Net Assets
---------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/15 10/31/14
---------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 834,004 $ 930,817
Net realized gain on investments, futures contracts,
written options, swap contracts and forward foreign
currency contracts and other assets and liabilities
denominated in foreign currencies 356,921 89,341
Change in net unrealized depreciation on investments,
futures contracts, written options, swap contracts
and forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (1,470,300) (186,594)
---------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (279,375) $ 833,564
---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.31 and $0.35 per share, respectively) $ (362,600) $ (215,775)
Class C ($0.21 and $0.25 per share, respectively) (90,523) (89,290)
Class Y ($0.34 and $0.38 per share, respectively) (391,265) (530,301)
Net realized gain:
Class A ($0.10 and $0.06 per share, respectively) (103,854) (39,795)
Class C ($0.10 and $0.06 per share, respectively) (36,964) (21,563)
Class Y ($0.10 and $0.06 per share, respectively) (110,052) (98,561)
---------------------------------------------------------------------------------------------
Total distributions to shareowners $ (1,095,258) $ (995,285)
---------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS (a)(b):
Net proceeds from sale of shares $ 5,423,057 $ 10,994,366
Reinvestment of distributions 502,776 266,757
Cost of shares repurchased (3,804,827) (10,990,573)
---------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 2,121,006 $ 270,550
---------------------------------------------------------------------------------------------
Net increase in net assets $ 746,373 $ 108,829
NET ASSETS:
Beginning of year 28,281,769 28,172,940
---------------------------------------------------------------------------------------------
End of year $ 29,028,142 $ 28,281,769
---------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net investment income $ 344,017 $ (90,373)
=============================================================================================
(a) At October 31, 2015, Pioneer Solutions-Growth Fund owned 15.0% of the
value of outstanding shares of Pioneer Global Multisector Income Fund.
(b) At October 31, 2015, Pioneer Solutions-Balanced Fund owned 14.0% of the
value of outstanding shares of Pioneer Global Multisector Income Fund.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 39
Statements of Changes in Net Assets (continued)
-----------------------------------------------------------------------------------------
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 326,667 $ 3,484,765 636,610 $ 6,945,753
Reinvestment of distributions 37,797 402,829 18,155 197,869
Less shares repurchased (203,771) (2,170,537) (218,557) (2,379,129)
-----------------------------------------------------------------------------------------
Net increase 160,693 $ 1,717,057 436,208 $ 4,764,493
=========================================================================================
Class C
Shares sold 128,101 $ 1,375,286 81,364 $ 893,280
Reinvestment of distributions 6,729 72,072 5,807 63,487
Less shares repurchased (120,509) (1,279,738) (56,519) (620,157)
-----------------------------------------------------------------------------------------
Net increase 14,321 $ 167,620 30,652 $ 336,610
=========================================================================================
Class Y
Shares sold 52,402 $ 563,006 288,193 $ 3,155,333
Reinvestment of distributions 2,593 27,875 490 5,401
Less shares repurchased (33,109) (354,552) (725,553) (7,991,287)
-----------------------------------------------------------------------------------------
Net increase (decrease) 21,886 $ 236,329 (436,870) $ (4,830,553)
=========================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
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 $ 10.91 $ 10.98 $ 11.49 $ 11.22 $ 11.19
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.31(b) $ 0.38 $ 0.30 $ 0.36 $ 0.34
Net realized and unrealized gain (loss) on investments (0.41) (0.04) (0.35) 0.29 0.01
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.10) $ 0.34 $ (0.05) $ 0.65 $ 0.35
--------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.31) $ (0.35) $ (0.29) $ (0.36) $ (0.32)
Net realized gain (0.10) (0.06) (0.17) (0.02) --
--------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.41) $ (0.41) $ (0.46) $ (0.38) $ (0.32)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.51) $ (0.07) $ (0.51) $ 0.27 $ 0.03
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.40 $ 10.91 $ 10.98 $ 11.49 $ 11.22
==========================================================================================================================
Total return* (1.00)% 3.16% (0.45)% 5.98% 3.22%
Ratio of net expenses to average net assets (a) 1.00% 1.01% 1.00% 1.00% 1.00%
Ratio of net investment income (loss) to average net assets 2.87% 3.57% 3.36% 3.26% 2.94%
Portfolio turnover rate 34% 51% 33% 29% 34%
Net assets, end of period (in thousands) $12,737 $11,601 $ 6,888 $ 9,128 $14,830
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expense to average net assets (a) 2.67% 2.52% 2.05% 1.65% 2.07%
Net investment income (loss) to average net assets 1.20% 2.06% 2.31% 2.60% 1.86%
==========================================================================================================================
* 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%, 0.01%, 0.00%, 0.00% and 0.00%,
respectively.
(b) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 41
Financial Highlights (continued)
--------------------------------------------------------------------------------------------------------------------------
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 $ 10.94 $ 11.01 $ 11.51 $ 11.23 $ 11.19
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.21(b) $ 0.29 $ 0.20 $ 0.26 $ 0.24
Net realized and unrealized gain (loss) on investments (0.41) (0.05) (0.34) 0.30 0.02
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.20) $ 0.24 $ (0.14) $ 0.56 $ 0.26
--------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.21) $ (0.25) $ (0.19) $ (0.26) $ (0.22)
Net realized gain (0.10) (0.06) (0.17) (0.02) --
--------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.31) $ (0.31) $ (0.36) $ (0.28) $ (0.22)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.51) $ (0.07) $ (0.50) $ 0.28 $ 0.04
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.43 $ 10.94 $ 11.01 $ 11.51 $ 11.23
==========================================================================================================================
Total return* (1.87)% 2.24% (1.24)% 5.09% 2.39%
Ratio of net expenses to average net assets (a) 1.90% 1.91% 1.90% 1.90% 1.90%
Ratio of net investment income (loss) to average net assets 1.96% 2.67% 2.46% 2.33% 2.15%
Portfolio turnover rate 34% 51% 33% 29% 34%
Net assets, end of period (in thousands) $ 4,113 $ 4,156 $ 3,847 $ 4,414 $ 3,555
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) 2.56% 2.71% 2.75% 2.39% 2.94%
Net investment income (loss) to average net assets 1.30% 1.87% 1.61% 1.84% 1.11%
==========================================================================================================================
* 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%, 0.01%, 0.00%, 0.00% and 0.00%,
respectively.
(b) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global Multisector Income 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 $ 11.00 $ 11.07 $ 11.59 $ 11.30 $ 11.22
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.33(b) $ 0.42 $ 0.33 $ 0.39 $ 0.35
Net realized and unrealized gain (loss) on investments (0.39) (0.05) (0.36) 0.30 0.05
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.06) $ 0.37 $ (0.03) $ 0.69 $ 0.40
--------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.34) $ (0.38) $ (0.32) $ (0.38) $ (0.32)
Net realized gain (0.10) (0.06) (0.17) (0.02) --
--------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.44) $ (0.44) $ (0.49) $ (0.40) $ (0.32)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.50) $ (0.07) $ (0.52) $ 0.29 $ 0.08
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.50 $ 11.00 $ 11.07 $ 11.59 $ 11.30
==========================================================================================================================
Total return* (0.62)% 3.42% (0.25)% 6.24% 3.66%
Ratio of net expenses to average net assets (a) 0.75% 0.76% 0.75% 0.79% 0.82%
Ratio of net investment income (loss) to average net assets 3.12% 3.81% 3.58% 3.42% 3.01%
Portfolio turnover rate 34% 51% 33% 29% 34%
Net assets, end of period (in thousands) $12,178 $12,525 $17,438 $15,297 $11,160
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) 1.39% 1.50% 1.57% 1.18% 1.55%
Net investment income to average net assets 2.48% 3.07% 2.76% 3.04% 2.28%
==========================================================================================================================
* 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%, 0.01%, 0.00%, 0.00% and 0.00%,
respectively.
(b) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 43
Notes to Financial Statements | 10/31/15
1. Organization and Significant Accounting Policies
Pioneer Global Multisector Income Fund (the Fund) is a series of Pioneer Series
Trust VII, a Delaware statutory trust. The Fund is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The investment objective of the Fund is to provide a high level of
current income.
The Fund offers three classes of shares designated as Class A, Class C, and
Class Y shares. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has identical rights (based on relative
net asset values) to assets and liquidation proceeds. Share classes can bear
different rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board of Trustees the
flexibility to specify either per-share voting or dollar-weighted voting when
submitting matters for shareholder approval. Under per-share voting, each share
of a class of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Fixed
income securities are valued at prices supplied by independent pricing
services, which consider such factors as market prices, market events,
quotations from
44 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
one or more brokers, Treasury spreads, yields, maturities and ratings.
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.
Valuations may be supplemented by dealers and other sources, as required.
Equity securities that have traded on an exchange are valued at the last
sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices. 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 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 Global Multisector Income Fund | Annual Report | 10/31/15 45
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. 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.
46 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
D. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
is recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 6).
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no provision for federal income taxes 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 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 $444,774 to increase undistributed
net investment income and $444,774 to increase accumulated net realized
loss on investments futures contracts, swap contracts, written options, and
foreign currency transactions 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
$64,518 of long-term losses under the Regulated Investment Company
Modernization Act of 2010 without limitation.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 47
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 $ 856,632 $835,366
Long-term capital gain 238,626 159,919
---------------------------------------------------------------------------
Total $1,095,258 $995,285
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 199,660
Capital loss carryforward (64,518)
Current year dividend payable (42,347)
Unrealized depreciation (1,097,662)
---------------------------------------------------------------------------
Total $(1,004,867)
===========================================================================
The difference between book-basis and tax-basis net unrealized depreciation
is attributable to the tax deferral of losses on wash sales, adjustments
related to sidecars, the mark-to-market of forward and futures contracts,
and interest accruals on preferred stock.
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly-owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned $1,700 in underwriting commissions on the sale of Class
A shares during the year ended October 31, 2015.
G. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the 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).
48 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
H. Risks
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's investments in
foreign markets and countries with limited developing markets may subject
the Fund to a greater degree of risk than investments in a developed
market. These risks include disruptive political or economic conditions and
the imposition of adverse governmental laws or currency exchange
restrictions. The Fund's prospectus contains unaudited information
regarding the Fund's principal risks. Please refer to that document when
considering the Fund's principal risks.
The Fund invests in below investment grade (high yield) debt securities and
preferred stocks. Some of these high yield securities may be convertible
into equity securities of the issuer. Debt securities rated below
investment grade are commonly referred to as "junk bonds" and are
considered speculative. These securities involve greater risk of loss, are
subject to greater price volatility, and are less liquid, especially during
periods of economic uncertainty or change, than higher rated debt
securities.
I. 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
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 49
specified trigger events, event-linked bonds may expose the Fund to other
risks, including but not limited to issuer (credit) default, adverse
regulatory or jurisdictional interpretations and adverse tax consequences.
The Fund's investments in ILS may include special purpose vehicles ("SPVs")
or similar instruments structured to comprise a portion of a reinsurer's
catastrophe-oriented business, known as quota share instruments (sometimes
referred to as reinsurance sidecars), or to provide reinsurance relating to
specific risks to insurance or reinsurance companies through a
collateralized instrument, known as collateralized reinsurance. Structured
reinsurance investments, which also may include industry loss warranties
("ILWs"), are subject to the same risks as event-linked bonds. In addition,
because quota share instruments represent an interest in a basket of
underlying reinsurance contracts, the Fund has limited transparency into
the individual underlying contracts and therefore must rely upon the risk
assessment and sound underwriting practices of the issuer. Accordingly, it
may be more difficult for PIM to fully evaluate the underlying risk profile
of the Fund's investment in quota share instruments and therefore place the
Fund's assets at greater risk of loss than if PIM had more complete
information.
Quota share instruments and other structured reinsurance instruments
generally will be considered illiquid securities by the Fund. These
securities may be difficult to purchase, sell or unwind. Illiquid
securities also may be difficult to value. If the Fund is forced to sell an
illiquid asset, the Fund may be forced to sell at a loss.
J. 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 $71,550. Subsequent payments for futures contracts
("variation margin") are paid or received by the Fund, depending on the
daily fluctuation in the value of the contracts, and are recorded by the
Fund as unrealized gains or losses. When the contract is closed, the Fund
realizes a gain or loss equal to the difference between the opening and
closing value of the contract as well as any fluctuation in foreign
currency exchange rates where applicable. Futures contracts are subject to
market risk, interest rate risk and currency exchange rate risk. Changes in
value of the contracts may not directly correlate to the changes in value
of the underlying securities. With futures, there is minimal counterparty
credit risk to the Fund since futures are exchange-traded and
50 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
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 $(3,154,682).
At October 31, 2015, open futures contracts were as follows:
-----------------------------------------------------------------------------------------
Net
Number of Unrealized
Contracts Settlement Appreciation
Type Counterparty Long/(Short) Month Value (Depreciation)
-----------------------------------------------------------------------------------------
Euro Bond Citibank N.A. 5 12/15 $ 865,166 $ 6,263
US 5 Yr
Note (CBT) Citibank N.A. (11) 12/15 (1,317,508) 2,746
US 10 Yr
Note (CBT) Citibank N.A. (29) 12/15 (3,702,938) 3,447
-----------------------------------------------------------------------------------------
Total (35) $(4,155,280) $12,456
=========================================================================================
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 open 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
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 51
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 written options contracts open during the year ended
October 31, 2015, was $0.
There were no written options outstanding as of October 31, 2015.
---------------------------------------------------------------------------
Number of Premium
Contracts Paid
---------------------------------------------------------------------------
Options open at beginning of period 84,202 $ (1,387)
Options opened -- --
Options exercised -- --
Options closed -- --
Options expired (84,202) 1,387
---------------------------------------------------------------------------
Options open at end of period -- $ --
===========================================================================
M. 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
52 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
made by the Fund, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made as a result of a credit
event or upon termination of the contract are recognized, net of the
appropriate amount of the upfront payment, as realized gains or losses in
the Statement of Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as variation margin on
centrally cleared swaps on the Statement of Assets and Liabilities.
Open credit default swap contracts at October 31, 2015, are listed in the
Schedule of Investments. The average value of swap contracts open during
the year ended October 31, 2015 was $14,698.
2. Management Agreement
PIM, a wholly-owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.50% of
the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund to
the extent required to reduce Fund expenses to 1.00%, 1.90% and 0.75% of the
average daily net assets attributable to Class A, Class C and Class Y shares,
respectively. Fees waived and expenses reimbursed during the year ended October
31, 2015, are reflected on the Statement of Operations. These expense
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 53
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.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due from affiliates" reflected on the Statement of Assets and Liabilities is
$13,184 in management fees, administrative costs and certain other
reimbursements due 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 $118,880
Class C 2,840
Class Y 1,295
--------------------------------------------------------------------------------
Total $123,015
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $38,940 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
54 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
distribution services with regard to Class C shares. Included in "Due to
affiliates" reflected on the Statement of Assets and Liabilities is $598 in
distribution fees payable to PFD at October 31, 2015.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to PFD. For the
year ended October 31, 2015, CDSCs in the amount of $784 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. The average value of forward foreign
currency contracts open during the year ended October 31, 2015, was
$(6,657,098).
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 55
Open forward foreign currency contracts at October 31, 2015, were as follows:
------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased For Counterparty Date Appreciation
------------------------------------------------------------------------------------------------
USD (1,291,743) CAD 1,700,232 Citibank NA 11/2/15 $ 7,980
ZAR (1,555,000) USD 114,980 Citibank NA 11/16/15 2,805
CZK (13,500,000) USD 549,068 Citibank NA 11/5/15 607
SEK (2,751,185) USD 330,467 JP Morgan 11/27/15 7,803
Chase Bank
HUF (66,994,656) USD 242,441 JP Morgan 12/16/15 5,216
Chase Bank
CLP (91,560,000) USD 134,009 JP Morgan 12/16/15 2,041
Chase Bank
SGD (144,956) USD 104,949 JP Morgan 11/5/15 1,425
Chase Bank
CAD (122,754) MXN 1,557,353 JP Morgan 11/24/15 391
Chase Bank
------------------------------------------------------------------------------------------------
Total $28,268
================================================================================================
------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased For Counterparty Date Depreciation
------------------------------------------------------------------------------------------------
GBP (595,330) USD 917,719 Brown Brothers 12/29/15 $ (591)
Harriman and Co.
MXN (5,415,000) USD 322,656 Brown Brothers 11/23/15 (4,963)
Harriman and Co.
GBP (596,817) USD 913,784 Citibank NA 11/3/15 (7,016)
CAD (1,700,232) USD 1,291,309 Citibank NA 12/29/15 (8,005)
RUB (4,565,000) USD 70,008 JP Morgan 11/6/15 (1,420)
Chase Bank
CNY (1,000,000) USD 156,556 JP Morgan 11/9/15 (1,667)
Chase Bank
USD (585,030) JPY 70,065,158 JP Morgan 12/22/15 (3,989)
Chase Bank
NZD (2,676,544) USD 1,675,151 JP Morgan 11/9/15 (137,549)
Chase Bank
MXN (3,432,786) USD 206,691 Societe Generale 11/23/15 (1,000)
CAD (1,700,232) USD 1,290,105 Societe Generale 12/29/15 (9,617)
AUD (1,884,360) USD 1,298,974 Societe Generale 11/9/15 (44,822)
------------------------------------------------------------------------------------------------
Total $ (220,639)
================================================================================================
7. 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
56 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
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.
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
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
--------------------------------------------------------------------------------------------
J.P. Morgan
Chase Bank $16,876 $(16,876) $ -- $ -- $ --
Morgan Stanley
Capital
Services LLC -- -- -- -- --
Citibank N.A. 11,392 (11,392) -- -- --
Brown Brothers
Harriman
and Co. -- -- -- -- --
Societe Generale -- -- -- -- --
--------------------------------------------------------------------------------------------
Total $28,268 $(28,268) $ -- $ -- $ --
============================================================================================
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 57
-----------------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Liabilities (c)
-----------------------------------------------------------------------------------------------------
J.P. Morgan
Chase Bank $144,625 $(16,876) $ -- $ -- $127,749
Morgan Stanley
Capital
Services LLC 3,859 -- -- -- 3,859
Citibank N.A. 15,021 (11,392) -- -- 3,629
Brown Brothers
Harriman and Co. 5,554 -- -- -- 5,554
Societe Generale 55,439 -- -- -- 55,439
-----------------------------------------------------------------------------------------------------
Total $224,498 $(28,268) $ -- $ -- $196,230
=====================================================================================================
(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.
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.
58 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
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:
---------------------------------------------------------------------------------------------
Foreign
Statement of Assets Interest Credit Exchange Equity Commodity
and Liabilities Rate Risk Risk Rate Risk Risk Risk
---------------------------------------------------------------------------------------------
Assets
Unrealized appreciation on
futures contracts $12,456 $ -- $ -- $ -- $ --
Net unrealized appreciation on
swap contracts -- 4,547 -- -- --
Unrealized appreciation of forward
foreign currency contracts -- -- 28,268 -- --
---------------------------------------------------------------------------------------------
Total Value $12,456 $ 4,547 $ 28,268 $ -- $ --
---------------------------------------------------------------------------------------------
Liabilities
Unrealized depreciation of forward
foreign currency contracts $ -- $ -- $(220,639) $ -- $ --
---------------------------------------------------------------------------------------------
Total Value $ -- $ -- $(220,639) $ -- $ --
---------------------------------------------------------------------------------------------
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:
----------------------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Operations Rate Risk Risk Rate Risk Risk Risk
----------------------------------------------------------------------------------------------
Net realized gain (loss) on
Swap contracts $ -- $ (14) $ -- $ -- $ --
Futures contracts (67,585) -- -- -- --
Written options -- -- 1,387 -- --
Forward foreign currency contracts -- -- 1,268,305 -- --
----------------------------------------------------------------------------------------------
Total Value $(67,585) $ (14) $1,269,692 $ -- $ --
----------------------------------------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) on
Swap contracts $ -- $4,599 $ -- $ -- $ --
Futures contracts 30,465 -- -- -- --
Written options -- -- (1,386) -- --
Forward foreign currency contracts -- -- (288,758) -- --
----------------------------------------------------------------------------------------------
Total Value $ 30,465 $4,599 $ (290,144) $ -- $ --
----------------------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 59
9. Bridge Loan Commitments
Bridge loans are designed to provide temporary or "bridge" financing to a
borrower pending the sale of identified assets or the arrangement of longer-
term loans or the issuance and sale of debt obligations.
As of October 31, 2015, the Fund had one bridge loan commitment of $33,913,
which could be extended at the option of the borrower, pursuant to the following
loan agreements:
--------------------------------------------------------------------------------
Unrealized
Appreciation/
Loan Shares Cost Value Depreciation
--------------------------------------------------------------------------------
Charter Communications
Operating LLC, Bridge Loan 33,913 $33,913 $33,913 $--
--------------------------------------------------------------------------------
Total 33,913 $33,913 $33,913 $--
--------------------------------------------------------------------------------
10. 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 Fund had no borrowings under
the credit facility.
60 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VII and the Shareowners of
Pioneer Global Multisector Income Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Global Multisector Income Fund (one of
the funds constituting Pioneer Series Trust VII), 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
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 financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Global Multisector Income Fund as of October 31, 2015, and the results
of its operations for the year then ended, and the changes in its net assets and
the financial highlights for each of the two years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
December 23, 2015
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 61
Additional Information
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 41.27%.
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 Financials Data Service became the transfer
agent to the Fund at negotiated rates.
62 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Global Multisector Income Fund (the Fund) pursuant to an investment
advisory agreement between PIM and the Fund. In order for PIM to remain the
investment adviser of the Fund, the Trustees of the Fund must determine annually
whether to renew the investment advisory agreement for the Fund.
The contract review process began in January 2015 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2015 and July
2015. Supplemental contract review materials were provided to the Trustees in
September 2015. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings in connection with the review of the Fund's
investment advisory agreement.
In March 2015, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In July 2015,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in September
2015.
At a meeting held on September 15, 2015, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In approving the
renewal of the investment advisory agreement, the Trustees
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 63
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed PIM's investment approach
for the Fund and its research process. The Trustees considered the resources of
PIM and the personnel of PIM who provide investment management services to the
Fund. They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. The Trustees considered the non-investment resources and
personnel of PIM involved in PIM's services to the Fund, including PIM's
compliance and legal resources and personnel. The Trustees noted the substantial
attention and high priority given by PIM's senior management to the Pioneer fund
complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the advisory
agreement.
64 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party. In all
quintile rankings referred to below, first quintile is most favorable to the
Fund's shareowners.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the third quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees considered that the expense ratio of the Fund's Class A shares for the
most recent fiscal year was in the third 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 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 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.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 65
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 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
66 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
and indirect access to the resources of a large global asset manager. The
Trustees concluded that any such benefits received by Pioneer as a result of its
relationship with the Funds were reasonable and their consideration of the
advisory agreement between the Fund and PIM and the fees thereunder were
unaffected by Pioneer's possible receipt of any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 67
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.
68 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (65) Trustee since 2007. Private investor (2004 - 2008 and 2013 - Director, Broadridge
Chairman of the Board Serves until a present); Chairman (2008 - 2013) and Chief Financial Solutions, Inc.
and Trustee successor trustee Executive Officer (2008 - 2012), Quadriserv, Inc. (investor communications and
is elected or (technology products for securities lending securities processing
earlier retirement industry); and Senior Executive Vice President, provider for financial
or removal. The Bank of New York (financial and securities services industry) (2009 -
services) (1986 - 2004) present); Director,
Quadriserv, Inc. (2005 -
2013); and Commissioner, New
Jersey State Civil Service
Commission (2011 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (71) Trustee since 2007. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - Trust (publicly-traded
successor trustee 2004 and 2008 - present); Interim Chief Executive mortgage REIT) (2004 - 2009,
is elected or Officer, Oxford Analytica, Inc. (privately-held 2012 - present); Director of
earlier retirement research and consulting company) (2010); The Swiss Helvetia Fund, Inc.
or removal. Executive Vice President and Chief Financial (closed-end fund) (2010 -
Officer, I-trax, Inc. (publicly traded health care present); Director of Oxford
services company) (2004 - 2007); and Executive Analytica, Inc. (2008 -
Vice President and Chief Financial Officer, present); and Director of
Pedestal Inc. (internet-based mortgage trading Enterprise Community
company) (2000 - 2002); Private consultant Investment, Inc.
(1995-1997), Managing Director, Lehman Brothers (privately-held affordable
(investment banking firm) (1992-1995); and housing finance company)
Executive, The World Bank (1979-1992) (1985 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (71) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and
successor trustee Mellon Institutional Funds
is elected or Master Portfolio (oversaw 17
earlier retirement portfolios in fund complex)
or removal. (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 69
Independent Trustees (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (68) Trustee since 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)
------------------------------------------------------------------------------------------------------------------------------------
70 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (57)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer, U.S. (since
successor trustee 2010) of PIM-USA; Executive Vice President of
is elected or Pioneer (since 2008); Executive Vice President of
earlier retirement Pioneer Institutional Asset Management, Inc.
or removal. (since 2009); and Portfolio Manager of Pioneer
(since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer of the Fund's
investment adviser and certain of its affiliates.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 71
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.
72 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (53) Since 2014. Serves Chair, Director, CEO and President of Pioneer Trustee of Pioneer
President and Chief at the discretion Investment Management-USA (since September 2014); closed-end investment
Executive Officer of the Board. Chair, Director, CEO and President of Pioneer companies (5 portfolios)
Investment Management, Inc. (since September (Sept. 2015 - present)
2014); Chair, Director, CEO and President of
Pioneer Funds Distributor, Inc. (since September
2014); Chair, Director, CEO and President of
Pioneer Institutional Asset Management, Inc.
(since September 2014); and Chair, Director, and
CEO of Pioneer Investment Management Shareholder
Services, Inc. (since September 2014); Managing
Director, Morgan Stanley Investment Management
(2010 - 2013); and Director of Institutional
Business, CEO of International, Eaton Vance
Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (50) Since 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
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 73
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (50) Since 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 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 2007. Serves Director - Transfer Agency Compliance of Pioneer None
Anti-Money Laundering Officer at the discretion and Anti-Money Laundering Officer of all the
of the Board. Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
74 Pioneer Global Multisector Income Fund | Annual Report | 10/31/15
This page for your notes.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/15 75
This page for your notes.
76 Pioneer Global Multisector Income 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 22520-07-1215
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 $101,607
payable to Deloitte & Touche LLP for the year ended
October 31, 2015 and $150,024for 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 $26,250 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 $26,250 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 Trust's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust VII
By (Signature and Title)* /s/ 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.