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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
PPioneer 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, 2015 through October 31, 2016
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 Multisector
Income Fund
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Annual Report | October 31, 2016
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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 36
Notes to Financial Statements 43
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 | 10/31/16 1
President's Letter
Dear Shareowner,
While investors were greeted with a challenging market environment for the first
several weeks of the new year, the U.S. market generated modest single-digit
returns for both stocks and bonds through September 30th (the Bloomberg Barclays
Aggregate Bond Index was up by 5.8% through September 30, 2016, and the Standard
& Poor's 500 Index was up by 7.8%). Yet, it is becoming increasingly clear that
the investment landscape is undergoing significant change. For the past eight
years, global central banks have been the dominant force in the markets by
maintaining government bond yields at close to zero in an effort to stimulate
economic growth. With little room to lower rates further, however, central banks
may be losing their effectiveness. Many economies around the world are
experiencing slow growth as they face a variety of challenges, including the
shifting geopolitics driving "Brexit" - the United Kingdom's pending exit from
the European Union - as well as related movements in Europe, limited
productivity gains, aging populations, and transitioning economic models in
China and other emerging markets. In the United States, gross domestic product
(GDP) grew at a rate of approximately 1.2% in the first half of 2016, but GDP
growth registered a strong uptick in the third quarter of the year, driven
primarily by U.S. consumers.
Investors currently face a difficult environment. Government bond yields, as
noted earlier, had been near zero for most of the year and offered minimal
opportunity to produce income. However, recent developments such as the Federal
Reserve's decision to increase the Federal funds rate before the end of 2016
have driven yields slightly higher. The central bank-driven bull market in
riskier assets has pushed up valuations towards historic highs in the equity and
investment-grade and high-yield corporate bond markets. Central banks have
pledged to move gradually to normalize interest-rate policies as the global
economy recovers, but it will take many years for this historic credit cycle to
unwind. Politics may also influence markets or investor sentiment given the
current global political landscape. Donald Trump's surprising victory in the
November U.S. presidential election seems to have sparked a late-year market
rally, given the pro-growth proposals he promoted on the campaign trail, but it
is unclear just how many of his policy initiatives will be implemented. In
addition, continued challenges with Brexit and other geopolitical issues have
the potential to increase market volatility going forward. Against this
backdrop, investors are likely to face ongoing challenges when it comes to
finding opportunities for both income and capital appreciation, and while much
has been made of passive investing, we believe all investment decisions are
active choices.
2 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
Throughout Pioneer's history, we have believed in the importance of active
management. During challenging market conditions, we view the value of active
management as even more compelling. Our experienced and tenured investment teams
focus on identifying value across global markets using proprietary research,
careful risk management, and a long-term perspective. 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.
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 the trust you have placed in us 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.
December 19, 2016
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. Past performance is no
guarantee of future results.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 3
Portfolio Management Discussion | 10/31/16
Credit-sensitive securities, including domestic high-yield bonds and emerging
markets debt, recovered in value over the latter months of the 12-month period
ended October 31, 2016, after underperforming U.S. Treasuries and other higher-
quality securities earlier in the period. 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, Mr. Upadhyaya, a senior vice president and
portfolio manager at Pioneer, 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, 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, 2016?
A Pioneer Global Multisector Income Fund's Class A shares returned 5.59% at
net asset value during the 12-month period ended October 31, 2016, while
the Fund's benchmark, the Bloomberg Barclays Global Aggregate Bond Index
(the Bloomberg Barclays Index), returned an identical 5.59%. During the
same period, the average return of the 207 mutual funds in Lipper's Global
Income Funds category was 4.71%, and the average return of the 370 mutual
funds in Morningstar's World Bond Funds category was 5.00%.
Q How would you describe the market environment for global fixed-income
investors during the 12-month period ended October 31, 2016?
A The early part of the 12-month period was characterized by investors'
doubts about the health of the global economy and worries about declining
commodity prices. In addition, the market's expectation at the time was
that the U.S. Federal Reserve (the Fed), which raised interest rates by
0.25% in December 2015, would likely move to an even more aggressive
position with regard to tightening monetary policy by increasing short-term
interest rates several more times in 2016. Those concerns combined to spark
a flight to quality in the markets and led to the underperformance of
so-called "risk" assets such as high-yield corporates.
In February 2016, however, oil and other commodity prices started to
recover, the global economic outlook appeared to brighten, and the Fed
began to soften its stance on future interest-rate hikes. Those factors
combined to drive a strong market rally that lasted - with a brief
interruption here or there, especially after the "Brexit" vote in the
United
4 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
Kingdom in June - for the balance of the 12-month period. The big winners
during the rally were emerging markets debt and domestic high-yield
corporate bonds.
Q What elements of the Fund's positioning had the biggest effects on
benchmark-relative returns during the 12-month period ended October 31,
2016, both positively and negatively?
A The Fund's performance actually matched that of the benchmark over the full
12-month period, with the Fund underperforming the Bloomberg Barclays Index
in the early part of the fiscal year, and outperforming the index over the
final months.
Our emphasis on credit-sensitive sectors and high-yield corporate bonds in
the portfolio held back benchmark-relative returns in November and December
2015, and January 2016, when the market was slumping and investors were
seeking out so-called "safe haven" investments, while avoiding riskier
assets. The Fund's short-duration positioning also detracted from
benchmark-relative results in the early weeks of the period as market
interest rates declined, which led to strong performance by longer-maturity
U.S. Treasuries, which we had significantly underweighted in the portfolio.
(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.)
Benchmark-relative returns began improving substantially in mid-February
2016 when the market began its nearly eight-month rally through period end.
The rally helped drive the positive performance of the Fund's exposures to
both emerging markets securities and domestic high-yield corporate bonds.
In addition, the Fund's shorter-duration positioning, in a reversal of
fortune from the earlier part of the period, ended up aiding benchmark-
relative results over the final eight months as market interest rates
started rising and longer-maturity U.S. Treasuries as well as other
higher-quality debt began to underperform credit-sensitive issues.
Very early in the Fund's fiscal year, in late 2015, we had de-emphasized
emerging markets investments in the portfolio because they had been
performing very poorly in an environment of declining commodity prices,
rising investor concerns about the health of the Chinese economy, and an
unclear global economic outlook. We began 2016 with only about 7% of the
Fund's invested assets dedicated to emerging markets securities, but we
then started increasing the portfolio's exposure because of the attractive
prices available. Another reason for our boosting the Fund's emerging
markets exposure at that time was the Fed's signaling that it was backing
off its earlier hints of several rate hikes in 2016, and indicating that
perhaps only one rate increase was on the agenda for this year. Not long
after we started to increase the Fund's emerging markets exposure, the
prices of oil and
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 5
commodities finally bottomed and then strengthened, lifting the prospects
for emerging markets in general, especially of those countries that were
exporters of oil and basic materials. As emerging markets debt rallied, we
continued to expand the Fund's holdings through the spring, and that
increased exposure boosted benchmark-relative returns. Finally, after the
strong recovery, we became a little concerned about valuations, and so we
took profits and reduced the portfolio's emerging markets allocation, a
drawdown that began in the summer and continued into the early fall. As of
October 31, 2016, however, the Fund still had a healthy exposure to
emerging markets debt.
With regard to sector allocations, as noted previously, throughout the
12-month period we had overweighted the portfolio in both domestic and
international high-yield bonds, with significant holdings in industrial
bonds, including bonds issued by energy companies. Earlier in the period,
those investments had held back the Fund's benchmark-relative performance
as high-yield energy and other industrial bonds fared poorly in the
"risk-off" market environment. As the period progressed, however, that
element of the Fund's positioning aided benchmark-relative results when
credit-sensitive debt, especially high-yield energy/industrial bonds,
performed very well during the market rally that began in mid-February.
Good security selection, particularly among the Fund's industrial bond
holdings, added to the effects of good sector allocation results and
benefited benchmark-relative performance.
Similar to other allocations in the portfolio, the Fund's currency
positioning tended to detract from benchmark-relative results early in the
12-month period, but helped relative performance in the latter months.
Throughout the period, we had overweighted the portfolio in the U.S. dollar
relative to the Bloomberg Barclays Index, as we had been anticipating that
the Fed would tighten monetary policy and interest rates in the U.S. would
rise. When the Fed instead chose to keep monetary policy unchanged after
its initial rate hike last December, interest rates actually fell. The U.S.
dollar started to rally in the summer of 2016, however, as the Fed
governors seemed to become more hawkish about adopting a tighter monetary
policy, and the financial markets once again began to expect an increase in
the Federal funds rate as early as September. While a September rate hike
did not occur, the Fed quickly followed up by sending out increasingly
stronger signals that an increase was more likely to happen in December,
and the U.S. dollar, in turn, kept rising in value, a development that
rewarded the Fund's overweight position in the currency. As of October 31,
2016, more than 75% of the Fund's invested assets were denominated in the
U.S. dollar, compared with a 44.5% U.S. dollar weighting in the Bloomberg
Barclays Index.
6 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
Q What shifts did you make in the Fund's positioning during the 12-month
period ended October 31, 2016?
A While we had positioned the portfolio more aggressively in early 2016, we
began to reduce risk exposure in the summer as we thought valuations in the
more credit-sensitive sectors appeared stretched in relation to other asset
classes. Accordingly, we trimmed the Fund's exposures to both domestic and
international high-yield bonds as well as investment-grade corporates,
while increasing the portfolio's cash position and its allocation to U.S.
government-agency mortgages. As noted previously, we also began to bring
down the Fund's allocation to the emerging markets over the final few
months of the period, due to valuation concerns.
Q Did the Fund invest in any derivative securities during the 12-month period
ended October 31, 2016? If so, did the investments affect the Fund's
relative performance?
A We did invest in some currency forward contracts to reduce the Fund's
non-U.S. dollar exposure. The forwards had a negative effect on
benchmark-relative performance over the full 12 months, even though the
portfolio's overweighting of the U.S. dollar helped the Fund's
benchmark-relative returns over the second half of the period. We also
invested in some futures and swaps during the period, but they had no
effect on the Fund's performance.
Q What factors affected the Fund's yield, or distributions to shareholders,
during the 12-month period ended October 31, 2016?
A The Fund's distributions to shareholders were two-tenths of a cent lower at
the end of the fiscal year than at the start on November 1, 2015, even
though distributions did increase in the second half of the period as
market yields moved higher. We lowered the Fund's dividend* early in the
fiscal year when market interest rates were in decline. Interest rates rose
later in the period, though, allowing for an increase in the distributions
to shareholders, although not enough to bring them back to the level at the
beginning of the fiscal year.
Q What is your investment outlook?
A Going forward, we think the market will be less reliant on the direction of
monetary policy and more attentive to fiscal policy; that is, taxes and
spending rather than money supply and interest rates. That could lead to a
steepening of the yield curve, with greater space between the yields of
longer-maturity and shorter-maturity securities. We have already begun to
see evidence of that, in fact, as longer-maturity yields have risen in
recent
* Dividends are not guaranteed.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 7
weeks. In response, we have maintained a short-duration stance to protect
the portfolio against a back-up in interest rates, which would undermine
the principal of longer-maturity debt.
The election of Donald Trump as the next U.S. President several days after
the conclusion of the Fund's fiscal year surprised the financial markets.
Prior to the presidential election, however, we had positioned the Fund in
anticipation of increased fiscal stimulus by the U.S. government, even
though most expect the Fed to tighten monetary policy by raising the
Federal funds rate before the end of 2016. As a candidate, Mr. Trump had
called for more infrastructure spending, which would likely create more
jobs as well as possibly stimulate additional economic activity. At the
same time, we expect that we may see more volatility in the financial
markets resulting from policy uncertainties not only in the United States,
but also from worries about the potential effects of global geopolitical
issues, including upcoming elections and referenda in Europe.
Please refer to the Schedule of Investments on pages 17-35 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
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.
8 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
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.
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 | 10/31/16 9
Portfolio Summary | 10/31/16
Portfolio Diversification*
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Foreign Government Bonds 33.2%
U.S. Government Securities 29.5%
U.S. Corporate Bonds 15.2%
International Corporate Bonds 11.4%
Collateralized Mortgage Obligations 4.5%
Municipal Bonds 2.2%
Mutual Funds 1.7%
Asset Backed Securities 0.8%
U.S. Preferred Stocks 0.6%
Convertible Preferred Stocks 0.4%
Senior Secured Loans 0.3%
Convertible Corporate Bonds 0.2%
* Includes investments in insurance linked securities totaling 0.4% of total
investment portfolio.
Geographical Distribution
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(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 54.8%
New Zealand 6.0%
Canada 4.5%
United Kingdom 4.3%
Argentina 3.9%
Mexico 3.5%
Japan 3.2%
Germany 2.2%
Norway 1.9%
Cote D'Ivoire 1.3%
Nigeria 1.3%
Australia 1.1%
Cayman Islands 1.1%
Other (individually less than 1%) 10.9%
10 Largest Holdings
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(As a percentage of total long-term holdings)**
1. U.S. Treasury Bill, 11/10/16 6.60%
--------------------------------------------------------------------------------
2. U.S. Treasury Bill, 11/17/16 5.80
--------------------------------------------------------------------------------
3. New Zealand Government Bond, 5.5%, 4/15/23 3.54
--------------------------------------------------------------------------------
4. Fannie Mae, 3.5%, 11/14/16 3.46
--------------------------------------------------------------------------------
5. New Zealand Government Bond, 4.5%, 4/15/27 2.51
--------------------------------------------------------------------------------
6. Bundesrepublik Deutschland, 1.0%, 8/15/25 2.15
--------------------------------------------------------------------------------
7. United Kingdom Gilt, 1.75%, 7/22/19 2.13
--------------------------------------------------------------------------------
8. Canadian Government Bond, 2.25%, 6/1/25 2.04
--------------------------------------------------------------------------------
9. Japan Government Ten Year Bond, 1.0%, 9/20/26 1.94
--------------------------------------------------------------------------------
10. Canadian Government Bond, 1.75%, 9/1/19 1.80
--------------------------------------------------------------------------------
** This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
10 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
Prices and Distributions | 10/31/16
Net Asset Value per Share
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--------------------------------------------------------------------------------
Class 10/31/16 10/31/15
--------------------------------------------------------------------------------
A $10.60 $10.40
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C $10.63 $10.43
--------------------------------------------------------------------------------
Y $10.69 $10.50
--------------------------------------------------------------------------------
Distributions per Share: 11/1/15-10/31/16
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--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term Tax Return
Class Income Capital Gains Capital Gains of Capital
--------------------------------------------------------------------------------
A $0.2849 $ -- $ -- $0.0832
--------------------------------------------------------------------------------
C $0.1944 $ -- $ -- $0.0832
--------------------------------------------------------------------------------
Y $0.3139 $ -- $ -- $0.0832
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Index Definitions
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The Bloomberg 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 | 10/31/16 11
Performance Update | 10/31/16 Class A Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Global Multisector Income Fund at
public offering price during the periods shown, compared to that of the
Bloomberg Barclays Global Aggregate Bond Index.
Average Annual Total Returns
(As of October 31, 2016)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net Public Global
Asset Offering Aggregate
Value Price Bond
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
Life of Class
(12/27/2007) 4.30% 3.76% 3.20%
5 years 2.62 1.67 0.90
1 year 5.59 0.84 5.59
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.67% 1.00%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Bloomberg Barclays Global
Multisector Income Fund Aggregate 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
10/16 $13,931 $13,207
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, 2017, 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.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
Performance Update | 10/31/16 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 Bloomberg Barclays Global
Aggregate Bond Index.
Average Annual Total Returns
(As of October 31, 2016)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Global
Aggregate
If If Bond
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life of Class
(12/27/2007) 3.42% 3.42% 3.20%
--------------------------------------------------------------------------------
5 years 1.74 1.74 0.90
--------------------------------------------------------------------------------
1 year 4.67 4.67 5.59
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.56% 1.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Bloomberg Barclays Global
Multisector Income Fund Aggregate 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
10/16 $13,536 $13,207
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, 2017, 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.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 13
Performance Update | 10/31/16 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 Bloomberg Barclays Global
Aggregate Bond Index.
Average Annual Total Returns
(As of October 31, 2016)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net Global
Asset Aggregate
Value Bond
Period (NAV) Index
--------------------------------------------------------------------------------
Life of Class
(12/27/2007) 4.54% 3.20%
5 years 2.86 0.90
1 year 5.73 5.59
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.39% 0.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global Bloomberg Barclays Global
Multisector Income Fund Aggregate 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
10/16 $7,444,084 $6,603,645
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, 2017, 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.
Please refer to the financial highlights for a more current expense ratio.
14 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
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, 2016, through October 31, 2016.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 5/1/16 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 10/31/16 $1,027.54 $1,023.17 $1,027.80
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.10 $ 9.66 $ 3.82
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.00%,
1.90%, and 0.75% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/366 (to reflect the one-half year period).
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 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, 2016, through October 31, 2016.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 5/1/16 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 10/31/16 $1,020.11 $1,015.58 $1,021.37
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.08 $ 9.63 $ 3.81
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.00%,
1.90%, and 0.75% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/366 (to reflect the one-half year period).
16 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
Schedule of Investments | 10/31/16
---------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
---------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 0.3%
ENERGY -- 0.2%
Oil & Gas Exploration & Production -- 0.2%
53,755 Whiting Petroleum Corp., 6.25%, 4/1/23 $ 52,680
------------
Total Energy $ 52,680
---------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.1%
Electrical Components & Equipment -- 0.1%
56,000 General Cable Corp., 4.5%, 11/15/29 (Step) $ 36,085
------------
Total Capital Goods $ 36,085
---------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $88,828) $ 88,765
---------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 0.0%+
DIVERSIFIED FINANCIALS -- 0.0%+
Consumer Finance -- 0.0%+
231 6.41 GMAC Capital Trust I, Floating Rate Note, 2/15/40 $ 5,897
---------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $4,505) $ 5,897
---------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 0.5%
BANKS -- 0.5%
Diversified Banks -- 0.5%
30 Bank of America Corp., 7.25% (Perpetual) $ 36,930
80 Wells Fargo & Co., 7.5% (Perpetual) 104,400
------------
$ 141,330
------------
Total Banks $ 141,330
---------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $119,802) $ 141,330
---------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 0.9%
FOOD & STAPLES RETAILING -- 0.2%
Food Retail -- 0.2%
47,375 CKE Restaurant Holdings, Inc., 4.474%,
3/20/43 (144A) $ 47,385
------------
Total Food & Staples Retailing $ 47,385
---------------------------------------------------------------------------------------------------
BANKS -- 0.5%
Thrifts & Mortgage Finance -- 0.5%
49,064 Bear Stearns Asset Backed Securities Trust,
8.41%, 10/25/29 (Step) $ 49,553
5,682 4.77 Countrywide Asset-Backed Certificates, Floating
Rate Note, 12/25/35 5,694
35,969 5.50 Mastr Specialized Loan Trust, Floating
Rate Note, 10/25/34 38,089
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 17
Schedule of Investments | 10/31/16 (continued)
---------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
---------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
9,559 1.23 New Century Home Equity Loan Trust 2005-1,
Floating Rate Note, 3/25/35 $ 9,509
749 Structured Asset Securities Corp., 5.27%,
10/25/34 (Step) 770
36,175 Terwin Mortgage Trust Series TMTS 2005-16HE,
4.26315%, 9/25/36 (Step) 36,787
------------
$ 140,402
------------
Total Banks $ 140,402
---------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.2%
Specialized Finance -- 0.2%
58,200 Domino's Pizza Master Issuer LLC, 5.216%,
1/27/42 (144A) $ 59,688
------------
Total Diversified Financials $ 59,688
---------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $241,766) $ 247,475
---------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 4.7%
BANKS -- 3.7%
Thrifts & Mortgage Finance -- 3.7%
64,522 3.50 Agate Bay Mortgage Trust 2015-1, Floating
Rate Note, 1/25/45 (144A) $ 65,924
48,812 3.50 Agate Bay Mortgage Trust 2015-5, Floating
Rate Note, 7/25/45 (144A) 50,268
3,048 0.98 Alternative Loan Trust 2003-14T1, Floating
Rate Note, 8/25/18 2,766
6,131 Banc of America Alternative Loan Trust 2004-6,
5.0%, 7/25/19 6,185
6,722 Banc of America Mortgage Trust 2004-11,
5.75%, 1/25/35 6,818
6,498 Banc of America Mortgage Trust 2004-9,
5.5%, 11/25/34 6,911
5,292 3.08 CHL Mortgage Pass-Through Trust 2003-56,
Floating Rate Note, 12/25/33 5,331
100,000 COMM 2012-LC4 Mortgage Trust, 4.063%, 12/12/44 107,745
50,000 COMM 2013-LC6 Mortgage Trust, 2.941%, 1/10/46 51,899
25,000 4.55 COMM 2015-CCRE25 Mortgage Trust, Floating
Rate Note, 8/12/48 26,806
16,031 Credit Suisse Commercial Mortgage Trust
Series 2007-C1, 5.361%, 2/15/40 16,060
50,000 4.54 CSAIL 2016-C5 Commercial Mortgage Trust REMICS,
Floating Rate Note, 11/15/48 52,347
43,998 3.50 CSMC Trust 2014-WIN2, Floating Rate Note,
10/25/44 (144A) 44,905
50,000 GS Mortgage Securities Corp. II, 3.377%, 5/10/45 53,244
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
---------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
---------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
25,000 GS Mortgage Securities Corp. II, 3.682%,
2/10/46 (144A) $ 26,283
75,000 JP Morgan Chase Commercial Mortgage
Securities Corp., 2.84%, 12/15/47 77,513
30,987 JP Morgan Chase Commercial Mortgage
Securities Trust 2011-C5, 4.1712%, 8/15/46 33,723
100,000 1.45 JP Morgan Chase Commercial Mortgage
Securities Trust 2014-INN, Floating Rate Note,
6/15/29 (144A) 99,782
7,079 JP Morgan Mortgage Trust 2004-S1, 5.0%, 9/25/34 7,264
50,000 JPMBB Commercial Mortgage Securities
Trust 2014-C22 REMICS, 3.8012%, 9/15/47 54,121
88,696 Morgan Stanley Capital I Trust 2007-HQ13,
5.569%, 12/15/44 90,561
40,446 3.25 NRP Mortgage Trust 2013-1, Floating
Rate Note, 7/25/43 (144A) 40,410
50,739 0.79 Paragon Secured Finance No. 1 Plc, Floating
Rate Note, 11/15/35 59,546
GBP 25,531 RAAC Series 2004-SP2 Trust, 6.0%, 1/25/32 25,577
2,361 1.08 RALI Series 2002-QS16 Trust, Floating
Rate Note, 10/25/17 2,344
27,061 2.50 Sequoia Mortgage Trust 2013-4, Floating
Rate Note, 4/27/43 26,766
35,178 Sequoia Mortgage Trust Series 2012-4 Cl A1,
Floating Rate Note, 9/25/42 36,034
------------
$ 1,077,133
------------
Total Banks $ 1,077,133
---------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.2%
Other Diversified Financial Services -- 0.2%
54,869 0.94 Crusade Global Trust No. 1 of 2007, Floating
Rate Note, 4/19/38 $ 54,410
------------
Total Diversified Financials $ 54,410
---------------------------------------------------------------------------------------------------
GOVERNMENT -- 0.8%
8,421 Federal National Mortgage Association REMICS,
4.5%, 6/25/29 $ 9,110
45,000 5.20 FREMF Mortgage Trust 2010-K9 REMICS,
Floating Rate Note, 9/25/45 (144A) 49,489
50,000 4.77 FREMF Mortgage Trust 2011-K702, Floating
Rate Note, 4/25/44 (144A) 51,821
50,000 4.88 FREMF Mortgage Trust 2011-K703, Floating
Rate Note, 7/25/44 (144A) 52,148
31,025 Government National Mortgage Association,
4.5%, 9/20/39 33,725
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 19
Schedule of Investments | 10/31/16 (continued)
---------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
---------------------------------------------------------------------------------------------------
GOVERNMENT -- (continued)
17,949 Government National Mortgage Association,
5.25%, 8/16/35 $ 19,807
------------
$ 216,100
------------
Total Government $ 216,100
---------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $1,351,781) $ 1,347,643
---------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 26.4%
ENERGY -- 5.4%
Oil & Gas Drilling -- 0.3%
100,000 Rowan Companies, Inc., 4.75%, 1/15/24 $ 84,000
---------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 1.1%
120,000 Petrobras Global Finance BV, 5.375%, 1/27/21 $ 118,824
155,000 Petroleos Mexicanos, 3.5%, 1/30/23 146,398
55,000 YPF SA, 8.5%, 3/23/21 (144A) 60,484
------------
$ 325,706
---------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.0%
15,000 Carrizo Oil & Gas, Inc., 7.5%, 9/15/20 $ 15,581
35,000 Freeport-McMoran Oil & Gas LLC, 6.75%, 2/1/22 35,788
25,000 Newfield Exploration Co., 5.375%, 1/1/26 25,688
100,000 Range Resources Corp., 5.0%, 3/15/23 (144A) 96,750
100,000 WPX Energy, Inc., 7.5%, 8/1/20 105,375
------------
$ 279,182
---------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.8%
53,000 EnLink Midstream Partners LP, 4.4%, 4/1/24 $ 52,727
157,895 6.49 EP PetroEcuador via Noble Sovereign Funding I,
Ltd., Floating Rate Note, 9/24/19 155,921
21,000 Valero Energy Corp., 9.375%, 3/15/19 24,570
------------
$ 233,218
---------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 2.2%
25,000 Buckeye Partners LP, 5.85%, 11/15/43 $ 26,437
50,000 Crestwood Midstream Partners LP, 6.25%, 4/1/23 50,625
25,000 DCP Midstream LLC, 9.75%, 3/15/19 (144A) 28,125
20,000 5.85 DCP Midstream LLC, Floating Rate Note,
5/21/43 (144A) 17,000
100,000 Kinder Morgan, Inc. Delaware, 5.55%, 6/1/45 103,797
25,000 Plains All American Pipeline LP, 4.65%, 10/15/25 26,501
25,000 Plains All American Pipeline LP, 6.125%, 1/15/17 25,217
45,000 Sabine Pass Liquefaction LLC, 5.0%, 3/15/27 (144A) 45,788
25,000 Spectra Energy Capital LLC, 6.2%, 4/15/18 26,370
10,000 Spectra Energy Capital LLC, 6.75%, 7/15/18 10,650
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
---------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
---------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- (continued)
60,000 Sunoco Logistics Partners Operations LP, 6.1%,
2/15/42 $ 65,424
75,000 The Williams Companies, Inc., 5.75%, 6/24/44 76,641
13,000 The Williams Companies, Inc., 7.75%, 6/15/31 14,950
100,000 TransCanada PipeLines, Ltd., 1.875%, 1/12/18 100,412
------------
$ 617,937
------------
Total Energy $ 1,540,043
---------------------------------------------------------------------------------------------------
MATERIALS -- 0.5%
Commodity Chemicals -- 0.1%
25,000 Methanex Corp., 4.25%, 12/1/24 $ 24,166
---------------------------------------------------------------------------------------------------
Paper Packaging -- 0.4%
EUR 100,000 SIG Combibloc Holdings SCA, 7.75%,
2/15/23 (144A) $ 115,828
------------
Total Materials $ 139,994
---------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.9%
Aerospace & Defense -- 0.4%
EUR 100,000 TA MFG., Ltd., 3.625%, 4/15/23 $ 107,963
---------------------------------------------------------------------------------------------------
Building Products -- 0.4%
55,000 Masco Corp., 4.375%, 4/1/26 $ 57,200
25,000 Masco Corp., 5.95%, 3/15/22 28,453
30,000 Standard Industries, Inc., 5.375%, 11/15/24 (144A) 31,012
------------
$ 116,665
---------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.1%
40,000 GATX Corp., 6.0%, 2/15/18 $ 42,024
------------
Total Capital Goods $ 266,652
---------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.8%
Airlines -- 0.0%+
7,997 Delta Air Lines 2010-2 Class A Pass Through
Trust, 4.95%, 5/23/19 $ 8,417
---------------------------------------------------------------------------------------------------
Marine -- 0.7%
200,000 Pelabuhan Indonesia II PT, 4.25%, 5/5/25 (144A) $ 200,750
---------------------------------------------------------------------------------------------------
Railroads -- 0.1%
25,000 Burlington Northern Santa Fe LLC, 5.75%, 3/15/18 $ 26,551
------------
Total Transportation $ 235,718
---------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.4%
Casinos & Gaming -- 0.1%
25,000 International Game Technology, 7.5%, 6/15/19 $ 27,750
---------------------------------------------------------------------------------------------------
Education Services -- 0.3%
75,000 Tufts University, 5.017%, 4/15/2112 $ 83,701
------------
Total Consumer Services $ 111,451
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 21
Schedule of Investments | 10/31/16 (continued)
---------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
---------------------------------------------------------------------------------------------------
MEDIA -- 0.5%
Cable & Satellite -- 0.1%
25,000 Sky Plc, 6.1%, 2/15/18 (144A) $ 26,281
---------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.4%
EUR 100,000 WMG Acquisition Corp., 4.125%, 11/1/24 (144A) $ 113,038
------------
Total Media $ 139,319
---------------------------------------------------------------------------------------------------
RETAILING -- 0.2%
Internet Retail -- 0.2%
50,000 Expedia, Inc., 5.95%, 8/15/20 $ 56,066
------------
Total Retailing $ 56,066
---------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.1%
Drug Retail -- 0.1%
12,671 CVS Pass-Through Trust, 5.773%, 1/10/33 (144A) $ 14,714
------------
Total Food & Staples Retailing $ 14,714
---------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.1%
Brewers -- 0.1%
20,000 Anheuser-Busch InBev Worldwide, Inc.,
7.75%, 1/15/19 $ 22,610
---------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 1.0%
GBP 100,000 Boparan Finance Plc, 5.5%, 7/15/21 (144A) $ 111,699
70,000 Kraft Heinz Foods Co., 3.5%, 6/6/22 73,916
90,000 Post Holdings, Inc., 5.0%, 8/15/26 (144A) 87,300
15,000 Post Holdings, Inc., 8.0%, 7/15/25 (144A) 17,100
------------
$ 290,015
------------
Total Food, Beverage & Tobacco $ 312,625
---------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.2%
Managed Health Care -- 0.2%
30,000 Centene Corp., 5.625%, 2/15/21 $ 31,470
25,000 Centene Corp., 6.125%, 2/15/24 26,625
------------
$ 58,095
------------
Total Health Care Equipment & Services $ 58,095
---------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.3%
Pharmaceuticals -- 0.3%
EUR 100,000 Valeant Pharmaceuticals International, Inc.,
4.5%, 5/15/23 $ 83,671
------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 83,671
---------------------------------------------------------------------------------------------------
BANKS -- 4.7%
Diversified Banks -- 4.1%
200,000 Access Bank Plc, 10.5%, 10/19/21 $ 202,500
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
---------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
---------------------------------------------------------------------------------------------------
Diversified Banks -- (continued)
INR 2,100,000 Asian Development Bank, 6.2%, 10/6/26 $ 32,108
INR 1,740,000 Asian Development Bank, 6.45%, 8/8/21 26,462
9,000 5.95 Citigroup, Inc., Floating Rate Note (Perpetual) 9,338
6,000 6.25 Citigroup, Inc., Floating Rate Note (Perpetual) 6,460
75,000 5.90 Citigroup, Inc., Floating Rate Note (Perpetual) 78,112
75,000 Cooperatieve Rabobank UA, 3.875%, 2/8/22 81,344
INR 700,000 Inter-American Development Bank, 6.0%, 9/5/17 10,438
NZD 505,000 International Bank for Reconstruction &
Development, 3.5%, 1/22/21 370,816
NZD 45,000 International Bank for Reconstruction &
Development, 4.625%, 10/6/21 34,647
AUD 185,000 International Bank for Reconstruction &
Development, 5.75%, 10/21/19 155,363
INR 1,350,000 International Bank For Reconstruction &
Development, 5.75%, 10/28/19 20,214
100,000 Macquarie Bank, Ltd., 6.625%, 4/7/21 (144A) 115,324
50,000 4.50 Scotiabank Peru SAA, Floating Rate Note,
12/13/27 (144A) 51,135
------------
$ 1,194,261
---------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.6%
150,000 Argentine Republic Government International
Bond, 7.5%, 4/22/26 (144A) $ 163,875
------------
Total Banks $ 1,358,136
---------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.6%
Other Diversified Financial Services -- 1.4%
25,000 Carlyle Holdings II Finance LLC, 5.625%,
3/30/43 (144A) $ 26,285
IDR 1,790,000,000 European Bank for Reconstruction &
Development, 7.375%, 4/15/19 138,800
IDR 1,460,000,000 European Investment Bank, 7.2%, 7/9/19 (144A) 112,549
NZD 100,000 JPMorgan Chase & Co., 4.25%, 11/2/18 72,817
40,000 6.75 JPMorgan Chase & Co., Floating Rate Note
(Perpetual) 44,400
------------
$ 394,851
---------------------------------------------------------------------------------------------------
Specialized Finance -- 0.6%
100,000 BM&FBovespa SA -- Bolsa de Valores
Mercadorias e Futuros, 5.5%, 7/16/20 (144A) $ 104,500
56,000 Cantor Fitzgerald LP, 7.875%, 10/15/19 (144A) 62,424
------------
$ 166,924
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 23
Schedule of Investments | 10/31/16 (continued)
---------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
---------------------------------------------------------------------------------------------------
Consumer Finance -- 1.8%
34,000 Ally Financial, Inc., 5.75%, 11/20/25 $ 34,808
INR 17,800,000 International Finance Corp., 6.3%, 11/25/24 275,524
INR 3,790,000 International Finance Corp., 7.75%, 12/3/16 56,865
INR 9,500,000 International Finance Corp., 8.25%, 6/10/21 154,582
------------
$ 521,779
---------------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.3%
100,000 KKR Group Finance Co., II LLC, 5.5%, 2/1/43 (144A) $ 104,679
---------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.5%
10,000 Macquarie Group, Ltd., 6.0%, 1/14/20 (144A) $ 11,045
75,000 Morgan Stanley, 4.1%, 5/22/23 79,022
50,000 Morgan Stanley, 4.875%, 11/1/22 54,918
------------
$ 144,985
------------
Total Diversified Financials $ 1,333,218
---------------------------------------------------------------------------------------------------
INSURANCE -- 2.0%
Life & Health Insurance -- 0.6%
45,000 Protective Life Corp., 7.375%, 10/15/19 $ 51,631
100,000 5.88 Prudential Financial, Inc., Floating Rate Note,
9/15/42 109,500
------------
$ 161,131
---------------------------------------------------------------------------------------------------
Multi-line Insurance -- 0.3%
60,000 AXA SA, 8.6%, 12/15/30 $ 84,300
---------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.6%
35,000 Delphi Financial Group, Inc., 7.875%, 1/31/20 $ 40,207
110,000 6.50 The Allstate Corp., Floating Rate Note, 5/15/57 129,250
------------
$ 169,457
---------------------------------------------------------------------------------------------------
Reinsurance -- 0.5%
30,000 Gullane Segregated Account (Artex SAC Ltd.),
Variable Rate Note 11/30/20 (d)(e) $ 32,553
30,000 Lorenz Re, Ltd., Variable Rate Notes, 3/31/18 (d)(e) 2,100
30,000 Lorenz Re, Ltd., Variable Rate Notes, 3/31/19 (d)(e) 31,230
30,000 Pangaea Re, Series 2015-2, Principal at Risk
Notes, 11/30/19 (d)(e) 3,132
30,000 Pangaea Re, Variable Rate Notes, 2/1/20 (d)(e) 33,360
30,000 Pangaea Re, Variable Rate Notes, 7/1/18 (d)(e) 540
JPY 2,513,320 Tralee Segregated Account (Artex SAC Ltd.), Variable
Rate Note 7/15/17 (d)(e) 23,875
25,000 5.88 Wilton Re Finance LLC, Floating Rate Note,
3/30/33 (144A) 25,688
------------
$ 152,478
------------
Total Insurance $ 567,366
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
---------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
---------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.3%
Office REIT -- 0.3%
40,000 Alexandria Real Estate Equities, Inc., 4.6%, 4/1/22 $ 43,386
35,000 Highwoods Realty LP, 3.625%, 1/15/23 35,655
------------
$ 79,041
------------
Total Real Estate $ 79,041
---------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.2%
Home Entertainment Software -- 0.2%
50,000 Activision Blizzard, Inc., 6.125%, 9/15/23 (144A) $ 55,062
------------
Total Software & Services $ 55,062
---------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.6%
Computer Hardware Storage & Peripherals -- 0.3%
75,000 NCR Corp., 6.375%, 12/15/23 $ 79,312
---------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.3%
100,000 Flex, Ltd., 4.625%, 2/15/20 $ 107,077
------------
Total Technology Hardware & Equipment $ 186,389
---------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.3%
Semiconductor Equipment -- 0.1%
25,000 Entegris, Inc., 6.0%, 4/1/22 (144A) $ 25,875
---------------------------------------------------------------------------------------------------
Semiconductors -- 0.2%
55,000 Micron Technology, Inc., 5.25%, 8/1/23 (144A) $ 53,900
------------
Total Semiconductors & Semiconductor Equipment $ 79,775
---------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 1.0%
Integrated Telecommunication Services -- 0.7%
40,000 Frontier Communications Corp., 7.125%, 1/15/23 $ 35,975
19,000 Frontier Communications Corp., 8.5%, 4/15/20 20,282
50,000 GCI, Inc., 6.75%, 6/1/21 51,625
25,000 Unison Ground Lease Funding LLC, 2.981%,
3/16/43 (144A) 24,641
65,000 Verizon Communications, Inc., 6.55%, 9/15/43 85,169
------------
$ 217,692
---------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.3%
30,000 Crown Castle Towers LLC, 4.883%, 8/15/20 (144A) $ 32,605
50,000 SBA Tower Trust, 2.877%, 7/15/21 (144A) 50,633
------------
$ 83,238
------------
Total Telecommunication Services $ 300,930
---------------------------------------------------------------------------------------------------
UTILITIES -- 2.3%
Electric Utilities -- 1.9%
100,000 Electricite de France SA, 6.0%, 1/22/14 (144A) $ 104,682
200,000 8.13 Enel S.p.A., Floating Rate Note, 9/24/73 (144A) 233,400
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 25
Schedule of Investments | 10/31/16 (continued)
---------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
---------------------------------------------------------------------------------------------------
Electric Utilities -- (continued)
70,000 Public Service Co. of New Mexico, 7.95%, 5/15/18 $ 76,439
50,000 6.25 Southern California Edison Co., Floating Rate
Note (Perpetual) 55,938
90,000 Talen Energy Supply LLC, 6.5%, 6/1/25 75,150
10,000 West Penn Power Co., 5.95%, 12/15/17 (144A) 10,424
------------
$ 556,033
---------------------------------------------------------------------------------------------------
Gas Utilities -- 0.4%
86,248 Nakilat, Inc., 6.267%, 12/31/33 (144A) $ 102,410
------------
Total Utilities $ 658,443
---------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $7,270,149) $ 7,576,708
---------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 30.8%
50,000 Fannie Mae, 3.0%, 10/1/46 $ 51,521
70,000 Fannie Mae, 3.0%, 11/1/46 72,144
70,000 Fannie Mae, 3.0%, 11/14/16 (TBA) 72,067
60,000 Fannie Mae, 3.0%, 11/17/16 (TBA) 62,789
28,993 Fannie Mae, 3.0%, 5/1/31 30,567
39,052 Fannie Mae, 3.0%, 5/1/43 40,285
24,753 Fannie Mae, 3.0%, 9/1/46 25,505
27,714 Fannie Mae, 3.5%, 1/1/46 29,094
119,935 Fannie Mae, 3.5%, 10/1/45 126,602
985,000 Fannie Mae, 3.5%, 11/14/16 (TBA) 1,034,096
41,255 Fannie Mae, 3.5%, 2/1/29 43,460
81,718 Fannie Mae, 3.5%, 4/1/45 85,770
181,999 Fannie Mae, 3.5%, 5/1/44 192,686
53,591 Fannie Mae, 3.5%, 8/1/45 56,280
34,747 Fannie Mae, 3.5%, 8/1/46 36,541
163,676 Fannie Mae, 3.5%, 9/1/42 173,123
39,864 Fannie Mae, 3.5%, 9/1/46 41,922
133,341 Fannie Mae, 4.0%, 11/1/44 142,709
24,393 Fannie Mae, 4.0%, 5/1/46 26,133
24,866 Fannie Mae, 4.0%, 8/1/46 26,646
135,000 Fannie Mae, 4.5%, 11/14/16 (TBA) 147,551
20,065 Fannie Mae, 4.5%, 4/1/41 21,943
20,879 Fannie Mae, 5.0%, 6/1/40 23,129
215,000 Federal Home Loan Mortgage Corp., 3.0%,
11/14/16 (TBA) 221,336
19,980 Federal Home Loan Mortgage Corp., 3.0%, 5/1/43 20,715
24,962 Federal Home Loan Mortgage Corp., 3.0%, 9/1/46 25,720
133,010 Federal Home Loan Mortgage Corp., 3.5%, 11/1/45 140,464
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
---------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
---------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
50,000 Federal Home Loan Mortgage Corp., 3.5%,
11/14/16 (TBA) $ 52,475
143,249 Federal Home Loan Mortgage Corp., 3.5%, 12/1/44 150,309
22,978 Federal Home Loan Mortgage Corp., 3.5%, 3/1/46 24,125
39,459 Federal Home Loan Mortgage Corp., 3.5%, 8/1/46 41,774
148,606 Federal Home Loan Mortgage Corp., 4.0%, 1/1/44 158,906
16,935 Federal Home Loan Mortgage Corp., 4.0%, 12/1/44 18,107
28,256 Federal Home Loan Mortgage Corp., 4.0%, 3/1/46 30,247
257,831 Federal Home Loan Mortgage Corp., 4.0%, 5/1/44 275,628
24,932 Federal Home Loan Mortgage Corp., 4.0%, 6/1/46 26,700
52,244 Federal Home Loan Mortgage Corp., 4.5%, 6/1/41 57,182
36,838 Federal Home Loan Mortgage Corp., 5.0%, 10/1/38 40,710
31,609 Federal Home Loan Mortgage Corp., 5.0%, 9/1/38 34,939
26,159 Federal Home Loan Mortgage Corp., 6.0%, 8/1/37 30,443
18,743 Federal Home Loan Mortgage Corp., 6.5%, 1/1/38 22,112
51,182 Federal Home Loan Mortgage Corp., 6.5%, 4/1/38 58,636
29,466 Federal National Mortgage Association, 3.5%, 7/1/46 30,942
137,798 Government National Mortgage Association I,
3.5%, 1/15/45 146,090
37,996 Government National Mortgage Association I,
4.5%, 1/15/40 42,375
29,679 Government National Mortgage Association I,
4.5%, 7/15/41 32,789
32,174 Government National Mortgage Association I,
4.5%, 9/15/40 35,651
39,913 Government National Mortgage Association II,
3.0%, 9/20/46 41,631
44,920 Government National Mortgage Association II,
4.5%, 9/20/41 49,371
1,975,000 U.S. Treasury Bill, 11/10/16 (c) 1,974,942
1,735,000 U.S. Treasury Bill, 11/17/16 (c) 1,734,863
25,000 U.S. Treasury Bonds, 2.25%, 8/15/46 23,251
419,344 U.S. Treasury Inflation Indexed Bonds,
0.75%, 2/15/45 421,288
228,708 U.S. Treasury Inflation Indexed Bonds, 1.0%, 2/15/46 246,386
75,000 U.S. Treasury Notes, 1.125%, 7/31/21 74,326
------------
$ 8,846,996
---------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $8,720,800) $ 8,846,996
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 27
Schedule of Investments | 10/31/16 (continued)
---------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
---------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 36.1%
200,000 Africa Finance Corp., 4.375%, 4/29/20 (144A) $ 208,408
EUR 50,000 Austria Government Bond, 4.15%, 3/15/37
(144A) (144A) 89,011
200,000 Brazil Minas SPE via State of Minas Gerais,
5.333%, 2/15/28 (144A) 196,000
BRL 250,000 Brazilian Government International Bond,
10.25%, 1/10/28 80,368
EUR 540,000 Bundesrepublik Deutschland, 1.0%, 8/15/25 644,043
CAD 700,000 Canadian Government Bond, 1.75%, 9/1/19 538,742
CAD 750,000 Canadian Government Bond, 2.25%, 6/1/25 610,606
250,000 City of Buenos Aires Argentina, 7.5%, 6/1/27 (144A) 269,375
200,000 Gabon Government International Bond, 6.375%,
12/12/24 (144A) 183,356
GHS 370,000 Ghana Government Bond, 24.5%, 4/22/19 98,147
GHS 140,000 Ghana Government Bond, 24.75%, 7/19/21 40,828
200,000 Ivory Coast Government International Bond,
5.375%, 7/23/24 (144A) 201,704
200,000 Ivory Coast Government International Bond,
6.375%, 3/3/28 (144A) 208,646
JPY 60,000,000 Japan Government Ten Year Bond, 1.0%, 9/20/26 580,501
JPY 20,000,000 Japan Government Ten Year Bond, 1.0%, 12/20/21 202,353
JPY 20,000,000 Japan Government Twenty Year Bond, 1.5%, 3/20/19 198,635
200,000 Kenya Government International Bond, 6.875%,
6/24/24 (144A) 199,500
MXN 3,830,000 Mexican Bonos, 4.75%, 6/14/18 200,531
MXN 2,400,000 Mexican Bonos, 6.5%, 6/9/22 129,947
MXN 300,000 Mexican Bonos, 7.5%, 6/3/27 17,240
MXN 3,726,953 Mexican Udibonos, 2.0%, 6/9/22 190,465
MXN 4,945,824 Mexican Udibonos, 3.5%, 12/14/17 267,859
EUR 100,000 Mexico Government International Bond, 4.0%, 3/15/15 99,023
200,000 Namibia International Bonds, 5.25%,
10/29/25 (144A) 207,762
NZD 905,000 New Zealand Government Bond, 4.5%, 4/15/27 750,699
NZD 1,250,000 New Zealand Government Bond, 5.5%, 4/15/23 1,057,809
NOK 1,800,000 Norway Government Bond, 2.0%, 5/24/23 229,305
NOK 2,700,000 Norway Government Bond, 4.5%, 5/22/19 357,394
150,000 Provincia de Buenos Aires Argentina, 9.125%,
3/16/24 (144A) 166,125
150,000 Provincia de Buenos Aires Argentina, 9.95%,
6/9/21 (144A) 171,000
150,000 Provincia de Cordoba, 7.125%, 6/10/21 (144A) 155,250
AUD 90,000 Queensland Treasury Corp., 5.5%, 6/21/21 78,721
AUD 100,000 Queensland Treasury Corp., 5.75%, 7/22/24 93,357
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
---------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
---------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- (continued)
200,000 Republic of Argentina Government Bond,
6.625%, 7/6/28 $ 205,700
RON 380,000 Romania Government Bond, 5.85%, 4/26/23 109,082
RON 570,000 Romania Government Bond, 5.95%, 6/11/21 160,977
SEK 2,300,000 Sweden Government Bond, 2.5%, 5/12/25 307,973
GBP 500,000 United Kingdom Gilt, 1.75%, 7/22/19 635,886
GBP 70,000 United Kingdom Gilt, 4.25%, 9/7/39 124,030
GBP 75,000 United Kingdom Gilt, 8.75%, 8/25/17 98,227
------------
$ 10,364,585
---------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $11,075,777) $ 10,364,585
---------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 2.4% (f)
Municipal General -- 0.6%
70,000 JobsOhio Beverage System, 3.985%, 1/1/29 $ 77,430
20,000 JobsOhio Beverage System, 4.532%, 1/1/35 22,652
30,000 Virginia Commonwealth Transportation Board,
4.0%, 5/15/31 32,988
30,000 Virginia Commonwealth Transportation Board,
4.0%, 5/15/32 32,772
------------
$ 165,842
---------------------------------------------------------------------------------------------------
Higher Municipal Education -- 0.7%
25,000 Baylor University, 4.313%, 3/1/42 $ 27,084
25,000 California Educational Facilities Authority
Revenue, 5.0%, 6/1/46 35,005
15,000 0.40 Massachusetts Health & Educational Facilities
Authority, Floating Rate Note, 11/1/49 15,000
25,000 Massachusetts Institute of Technology, 5.6%, 7/1/11 32,964
15,000 Massachusetts State Development Finance
Agency Revenue, 5.0%, 7/15/40 20,688
50,000 University of Virginia, Green Bond Series A,
5.0%, 4/1/45 59,267
------------
$ 190,008
---------------------------------------------------------------------------------------------------
Municipal Medical -- 0.5%
160,000 0.54 Harris County Health Facilities Development Corp.,
Floating Rate Note, 12/1/41 $ 160,000
---------------------------------------------------------------------------------------------------
Municipal School District -- 0.2%
25,000 Frisco Independent School District, 4.0%, 8/15/40 $ 27,012
25,000 Frisco Independent School District, 4.0%, 8/15/45 26,917
------------
$ 53,929
---------------------------------------------------------------------------------------------------
Municipal Obligation -- 0.4%
50,000 State of Texas, 4.0%, 10/1/44 $ 53,718
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 29
Schedule of Investments | 10/31/16 (continued)
---------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
---------------------------------------------------------------------------------------------------
Municipal Obligation -- (continued)
50,000 State of Washington, 5.0%, 7/1/30 $ 59,956
------------
$ 113,674
---------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $650,381) $ 683,453
---------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 0.3%**
AUTOMOBILES & COMPONENTS -- 0.2%
Auto Parts & Equipment -- 0.2%
49,607 3.75 MPG Holdco I, Inc., Tranche B-1 Term Loan
(2015), 10/20/21 $ 49,868
------------
Total Automobiles & Components $ 49,868
---------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.1%
Health Care Facilities -- 0.1%
49,620 4.25 Kindred Healthcare, Inc., Tranche B Loan (First
Lien), 4/10/21 $ 49,722
------------
Total Health Care Equipment & Services $ 49,722
---------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTERESTS
(Cost $94,571) $ 99,590
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Shares
---------------------------------------------------------------------------------------------------
MUTUAL FUND -- 1.8%
DIVERSIFIED FINANCIALS -- 1.8%
Asset Management & Custody Banks -- 1.8%
46,226 Pioneer ILS Interval Fund (g) $ 511,726
---------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUND
(Cost $490,000) $ 511,726
---------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 104.2%
(Cost $30,108,360) (a) (h) $ 29,914,168
---------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- (4.2)% $ (1,197,813)
---------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 28,716,355
===================================================================================================
+ Amount rounds to less than 0.1%.
(TBA) To Be Announced securities.
(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.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
(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, 2016, the value of these securities
amounted to $5,483,745 or 19.1% of net assets.
** Senior floating rate loan interests in which the Fund invests
generally pay interest at rates that are periodically redetermined
by reference to a base lending rate plus a premium. These base
lending rates are generally (i) the lending rate offered by one or
more major European banks, such as LIBOR (London InterBank Offered
Rate), (ii) the prime rate offered by one or more major United
States banks, (iii) the certificate of deposit 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, 2016, the net unrealized depreciation on investments
based on cost for federal income tax purposes of $30,122,324 was as
follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 1,283,202
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (1,491,358)
------------
Net unrealized depreciation $ (208,156)
============
(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) Structured reinsurance investment. At October 31, 2016, the value of
these securities amounted to $126,790 or 0.4% of net assets. See
Notes to Financial Statements -- Note 1I.
(e) Rate to be determined.
(f) Consists of Revenue Bonds unless otherwise indicated.
(g) Affiliated fund managed by Pioneer Investment Management, Inc.
(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 54.8%
New Zealand 6.0
Canada 4.5
United Kingdom 4.3
Argentina 3.9
Mexico 3.5
Japan 3.2
Germany 2.2
Norway 1.9
Cote D'Ivoire 1.3
Nigeria 1.3
Australia 1.1
Cayman Islands 1.1
Other (individually less than 1%) 10.9
------
100.0%
======
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 31
Schedule of Investments | 10/31/16 (continued)
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
AUD Australian Dollar
BRL Brazilian Real
CAD Canadian Dollar
EUR Euro
GBP British Pound Sterling
GHS Ghanian Cedis
INR Indian Rupee
IDR Indonesian Rupiah
JPY Japanese Yen
MXN Mexican Peso
NOK Norwegian Krone
NZD New Zealand Dollar
RON Romanian New Leu
SEK Swedish Krona
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2016 were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government Securities $1,028,973 $ 1,975,870
Other Long-Term Securities $8,801,286 $10,332,167
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Pioneer Investment
Management, Inc. serves as the Fund's investment adviser, as set forth in Rule
17a-7 under the Investment Company Act of 1940, pursuant to procedures adopted
by the Board of Trustees. Under these procedures, cross trades are effected at
current market prices. During the year ended October 31, 2016, the Fund engaged
in purchases and sales pursuant to these procedures amounting to $231,370 and
$126,659, respectively, which resulted in a net realized gain of $24,171.
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENT -- SELL PROTECTION
---------------------------------------------------------------------------------------------------------
Notional Obligation Credit Expiration Premiums Unrealized
Principal ($)(1) Exchange Entity/Index Coupon Rating(2) Date Paid Appreciation
---------------------------------------------------------------------------------------------------------
343,332 Chicago Markit CDX 5.00% BBB+ 12/20/19 $18,632 $4,492
Mercantile North America
Exchange High Yield
Index
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
CREDIT DEFAULT SWAP AGREEMENT -- SELL PROTECTION
--------------------------------------------------------------------------------------------------------------
Notional Obligation Credit Expiration Premiums Unrealized
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Received) (Depreciation)
--------------------------------------------------------------------------------------------------------------
50,000 Morgan Diamond 1.00% BBB+ 12/20/19 $(1,873) $(622)
Stanley Offshore
Capital Drill Inc.
Services LLC
--------------------------------------------------------------------------------------------------------------
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Based on Standard & Poor's rating of the issuer or the weighted average of
all the underlying securities in the index.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 33
Schedule of Investments | 10/31/16 (continued)
The following is a summary of the inputs used as of October 31, 2016, in valuing
the Fund's assets:
-------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 88,765 $ -- $ 88,765
Preferred Stocks 5,897 -- -- 5,897
Convertible Preferred Stock 141,330 -- -- 141,330
Asset Backed Securities -- 247,475 -- 247,475
Collateralized Mortgage Obligations -- 1,347,643 -- 1,347,643
Corporate Bonds
Insurance
Reinsurance -- 25,688 126,790 152,478
All Other Corporate Bonds -- 7,424,230 -- 7,424,230
U.S. Government Agency Obligations -- 8,846,996 -- 8,846,996
Foreign Government Bonds -- 10,364,585 -- 10,364,585
Municipal Bonds -- 683,453 -- 683,453
Senior Floating Rate Loan Interests -- 99,590 -- 99,590
Mutual Fund -- 511,726 -- 511,726
-------------------------------------------------------------------------------------------------
Total $ 147,227 $ 29,640,151 $ 126,790 $ 29,914,168
=================================================================================================
Other Financial Instruments
Unrealized appreciation on
futures contracts $ 52,051 $ -- $ -- $ 52,051
Unrealized depreciation on
futures contracts (24,563) -- -- (24,563)
Unrealized appreciation on forward
foreign currency contracts -- 129,365 -- 129,365
Unrealized depreciation on forward
foreign currency contracts -- (37,433) -- (37,433)
Unrealized appreciation on centrally
cleared swap contract -- 4,492 -- 4,492
Unrealized depreciation on swap contract -- (622) -- (622)
-------------------------------------------------------------------------------------------------
Total Other Financial Instruments $ 27,488 $ 95,802 $ -- $ 123,290
=================================================================================================
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
------------------------------------------------------------------
Corporate
Bonds
------------------------------------------------------------------
Balance as of 10/31/15 $ 86,744
Realized gain (loss)(1) 110
Change in unrealized appreciation (depreciation)(2) 11,647
Purchases 90,000
Sales (61,711)
Changes between Level 3* --
------------------------------------------------------------------
Balance as of 10/31/16 $126,790
==================================================================
(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, 2016, there were no transfers between Levels 1, 2 and 3.
Net change in unrealized appreciation (depreciation) of investments
still held as of 10/31/16 $12,256
-------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 35
Statement of Assets and Liabilities | 10/31/16
ASSETS:
Investment in securities of unaffiliated issuers, at value (cost $29,618,360) $29,402,442
Investment in securities of affiliated issuers, at value (cost $490,000) 511,726
--------------------------------------------------------------------------------------------------
Total investment in securities, at value (cost $30,108,360) $29,914,168
Cash 245,213
Foreign currencies, at value (cost $185,992) 183,687
Restricted cash* 92,851
Receivables --
Investment securities sold 395,906
Fund shares sold 6,230
Interest 230,903
Unrealized appreciation on forward foreign currency contracts 129,365
Due from Pioneer Investment Management, Inc. 2,060
Other assets 38,057
--------------------------------------------------------------------------------------------------
Total assets $31,238,440
==================================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 2,307,734
Fund shares repurchased 8,759
Distributions 31,114
Trustee fees 596
Variation margin for centrally cleared swap contracts 196
Variation margin for futures contracts 1,887
Unrealized depreciation on forward foreign currency contracts 37,433
Due to affiliates 13,783
Accrued expenses 120,583
--------------------------------------------------------------------------------------------------
Total liabilities $ 2,522,085
==================================================================================================
NET ASSETS:
Paid-in capital $28,980,843
Distributions in excess of net investment income (136,437)
Accumulated net realized loss on investments, futures contracts,
swap contracts and foreign currency transactions (53,074)
Net unrealized depreciation on investments (194,192)
Net unrealized appreciation on futures contracts 27,488
Net unrealized appreciation on swap contracts 3,870
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 87,857
--------------------------------------------------------------------------------------------------
Net assets $28,716,355
==================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $13,579,351/1,281,491 shares) $ 10.60
Class C (based on $4,370,070/411,219 shares) $ 10.63
Class Y (based on $10,766,934/1,007,155 shares) $ 10.69
MAXIMUM OFFERING PRICE:
Class A ($10.60 (divided by) 95.5%) $ 11.10
==================================================================================================
* Represents restricted cash deposited at the counterparty for derivative
contracts
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
Statement of Operations
For the Year Ended 10/31/16
INVESTMENT INCOME:
Interest (net of foreign taxes withheld of $3,768) $1,133,544
Dividends (net of foreign taxes withheld of $266) 10,732
----------------------------------------------------------------------------------------------------
Total investment income $1,144,276
----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 139,555
Transfer agent fees
Class A 4,241
Class C 2,582
Class Y 463
Distribution fees
Class A 32,610
Class C 43,100
Shareholder communications expense 133,345
Administrative expense 31,093
Custodian fees 35,386
Registration fees 45,315
Professional fees 64,789
Printing expense 34,131
Pricing expense 27,039
Fees and expenses of non-affiliated Trustees 7,062
Miscellaneous 15,634
----------------------------------------------------------------------------------------------------
Total expenses $ 616,345
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (319,208)
----------------------------------------------------------------------------------------------------
Net expenses $ 297,137
----------------------------------------------------------------------------------------------------
Net investment income $ 847,139
----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS, SWAP CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (75,770)
Futures contracts (104,623)
Swap contracts 17,875
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (364,009) $ (526,527)
----------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments (including from affiliated issuer of $21,726) $ 882,141
Futures contracts 15,032
Swap contracts (677)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 300,437 $1,196,933
----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments,
futures contracts, swap contracts and foreign
currency transactions $ 670,406
----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $1,517,545
====================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 37
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/16 10/31/15
--------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 847,139 $ 834,004
Net realized gain (loss) on investments, futures contracts,
swap contracts, written options and forward foreign
currency contracts and other assets and liabilities
denominated in foreign currencies (526,527) 356,921
Change in net unrealized appreciation (depreciation)
on investments, futures contracts, swap contracts,
written options and foreign currency transactions 1,196,933 (1,470,300)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 1,517,545 $ (279,375)
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.28 and $0.31 per share, respectively) $ (353,498) $ (362,600)
Class C ($0.19 and $0.21 per share, respectively) (80,543) (90,523)
Class Y ($0.31 and $0.34 per share, respectively) (343,125) (391,265)
--------------------------------------------------------------------------------------------------
Net realized gain:
Class A ($0.00 and $0.10 per share, respectively) -- (103,854)
Class C ($0.00 and $0.10 per share, respectively) -- (36,964)
Class Y ($0.00 and $0.10 per share, respectively) -- (110,052)
--------------------------------------------------------------------------------------------------
Tax return of capital:
Class A ($0.08 and $0.00, respectively) (104,457) --
Class C ($0.08 and $0.00, respectively) (34,504) --
Class Y ($0.08 and $0.00, respectively) (88,241) --
--------------------------------------------------------------------------------------------------
Total distributions to shareowners $(1,004,368) $(1,095,258)
--------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS (a)(b):
Net proceeds from sale of shares $ 4,445,955 $ 5,423,057
Reinvestment of distributions 501,412 502,776
Cost of shares repurchased (5,772,331) (3,804,827)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ (824,964) $ 2,121,006
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (311,787) $ 746,373
NET ASSETS:
Beginning of year $29,028,142 $28,281,769
--------------------------------------------------------------------------------------------------
End of year $28,716,355 $29,028,142
--------------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net investment income $ (136,437) $ 344,017
==================================================================================================
(a) At October 31, 2016, Pioneer Solutions-Growth Fund owned 11.5% of the value
of outstanding shares of Pioneer Global Multisector Income Fund.
(b) At October 31, 2016, Pioneer Solutions-Balanced Fund owned 12.6% of the
value of outstanding shares of Pioneer Global Multisector Income Fund.
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
---------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/16 10/31/16 10/31/15 10/31/15
Shares Amount Shares Amount
---------------------------------------------------------------------------------------------
Class A
Shares sold 252,692 $ 2,632,483 326,667 $ 3,484,765
Reinvestment of distributions 38,692 401,821 37,797 402,829
Less shares repurchased (234,361) (2,430,066) (203,771) (2,170,537)
---------------------------------------------------------------------------------------------
Net increase 57,023 $ 604,238 160,693 $ 1,717,057
=============================================================================================
Class C
Shares sold 112,725 $ 1,164,736 128,101 $ 1,375,286
Reinvestment of distributions 6,441 67,019 6,729 72,072
Less shares repurchased (102,171) (1,056,421) (120,509) (1,279,738)
---------------------------------------------------------------------------------------------
Net increase 16,995 $ 175,334 14,321 $ 167,620
=============================================================================================
Class Y
Shares sold 62,209 $ 648,736 52,402 $ 563,006
Reinvestment of distributions 3,104 32,572 2,593 27,875
Less shares repurchased (218,162) (2,285,844) (33,109) (354,552)
---------------------------------------------------------------------------------------------
Net increase
(decrease) (152,849) $(1,604,536) 21,886 $ 236,329
=============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 39
Financial Highlights
-------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/16 10/31/15 10/31/14 10/31/13 10/31/12
-------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.40 $ 10.91 $ 10.98 $ 11.49 $ 11.22
-------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.31(b) $ 0.31(b) $ 0.38 $ 0.30 $ 0.36
Net realized and unrealized gain (loss) on investments 0.25 (0.41) (0.04) (0.35) 0.29
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.56 $ (0.10) $ 0.34 $ (0.05) $ 0.65
-------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.28) $ (0.31) $ (0.35) $ (0.29) $ (0.36)
Net realized gain -- (0.10) (0.06) (0.17) (0.02)
Tax return of capital (0.08) -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.36) $ (0.41) $ (0.41) $ (0.46) $ (0.38)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.20 $ (0.51) $ (0.07) $ (0.51) $ 0.27
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.60 $ 10.40 $ 10.91 $ 10.98 $ 11.49
===============================================================================================================================
Total return* 5.59% (1.00)% 3.16% (0.45)% 5.98%
Ratio of net expenses to average net assets (a) 1.00% 1.00% 1.01% 1.00% 1.00%
Ratio of net investment income (loss) to average net assets 2.99% 2.87% 3.57% 3.36% 3.26%
Portfolio turnover rate 37% 34% 51% 33% 29%
Net assets, end of period (in thousands) $13,579 $12,737 $11,601 $ 6,888 $ 9,128
Ratios with no waiver of fees and assumption of expenses by
Pioneer Investment Management, Inc. and no reduction for
fees paid indirectly:
Total expenses to average net assets (a) 2.67% 2.67% 2.52% 2.05% 1.65%
Net investment income (loss) to average net assets 1.32% 1.20% 2.06% 2.31% 2.60%
===============================================================================================================================
* 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%, 0.00%, 0.00%, 0.01% 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.
40 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/16 10/31/15 10/31/14 10/31/13 10/31/12
---------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.43 $ 10.94 $ 11.01 $ 11.51 $ 11.23
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.22(b) $ 0.21(b) $ 0.29 $ 0.20 $ 0.26
Net realized and unrealized gain (loss) on investments 0.25 (0.41) (0.05) (0.34) 0.30
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.47 $ (0.20) $ 0.24 $ (0.14) $ 0.56
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.19) $ (0.21) $ (0.25) $ (0.19) $ (0.26)
Net realized gain -- (0.10) (0.06) (0.17) (0.02)
Tax return of capital (0.08) -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.27) $ (0.31) $ (0.31) $ (0.36) $ (0.28)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.20 $ (0.51) $ (0.07) $ (0.50) $ 0.28
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.63 $ 10.43 $ 10.94 $ 11.01 $ 11.51
===========================================================================================================================
Total return* 4.67% (1.87)% 2.24% (1.24)% 5.09%
Ratio of net expenses to average net assets (a) 1.90% 1.90% 1.91% 1.90% 1.90%
Ratio of net investment income (loss) to average net assets 2.10% 1.96% 2.67% 2.46% 2.33%
Portfolio turnover rate 37% 34% 51% 33% 29%
Net assets, end of period (in thousands) $ 4,370 $ 4,113 $ 4,156 $ 3,847 $ 4,414
Ratios with no waiver of fees and assumption of expenses by
Pioneer Investment Management, Inc. and no reduction for
fees paid indirectly:
Total expenses to average net assets (a) 2.53% 2.56% 2.71% 2.75% 2.39%
Net investment income (loss) to average net assets 1.46% 1.30% 1.87% 1.61% 1.84%
===========================================================================================================================
* 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%, 0.00%, 0.00%, 0.01% 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 | 10/31/16 41
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/16 10/31/15 10/31/14 10/31/13 10/31/12
---------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.50 $ 11.00 $ 11.07 $ 11.59 $ 11.30
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.34(b) $ 0.33(b) $ 0.42 $ 0.33 $ 0.39
Net realized and unrealized gain (loss) on investments 0.24 (0.39) (0.05) (0.36) 0.30
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.58 $ (0.06) $ 0.37 $ (0.03) $ 0.69
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.31) $ (0.34) $ (0.38) $ (0.32) $ (0.38)
Net realized gain -- (0.10) (0.06) (0.17) (0.02)
Tax return of capital (0.08) -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.39) $ (0.44) $ (0.44) $ (0.49) $ (0.40)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.19 $ (0.50) $ (0.07) $ (0.52) $ 0.29
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.69 $ 10.50 $ 11.00 $ 11.07 $ 11.59
===========================================================================================================================
Total return* 5.73% (0.62)% 3.42% (0.25)% 6.24%
Ratio of net expenses to average net assets (a) 0.75% 0.75% 0.76% 0.75% 0.79%
Ratio of net investment income (loss) to average net assets 3.24% 3.12% 3.81% 3.58% 3.42%
Portfolio turnover rate 37% 34% 51% 33% 29%
Net assets, end of period (in thousands) $10,767 $12,178 $12,525 $17,438 $15,297
Ratios with no waiver of fees and assumption of expenses by
Pioneer Investment Management, Inc. and no reduction for
fees paid indirectly:
Total expenses to average net assets (a) 1.41% 1.39% 1.50% 1.57% 1.18%
Net investment income (loss) to average net assets 2.59% 2.48% 3.07% 2.76% 3.04%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
(a) Includes interest expense of 0.00%, 0.00%, 0.00%, 0.01% 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 | 10/31/16
Notes to Financial Statements | 10/31/16
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 (U.S. GAAP) that require the management
of the Fund to 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 Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements:
A. Security Valuation
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.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 43
Fixed income securities are valued by using 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, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
The value of foreign securities is translated into U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party pricing
source. Trading in non-U.S. equity 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. The fund may use a fair value model
developed by an independent pricing service to value non-U.S. equity
securities.
Loan interests 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 third party 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 or catastrophe bonds are valued at the bid price
obtained from an independent third party pricing service. Other insurance
linked securities (including sidecars, collateralized reinsurance and
industry loss warranties) 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.
Equity securities that have traded on an exchange are valued by using 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 or, if both last bid and asked prices
are not available, at
44 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
the last quoted bid price. Last sale and bid and asked prices are provided
by independent third party pricing services. In the case of equity
securities not traded on an exchange, prices are typically determined by
independent third party pricing services using a variety of techniques and
methods.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealers Association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Futures contracts are generally valued at the closing settlement price
established by the exchange on which they are traded.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate and the forward points on a daily basis, in each case
provided by a third party pricing service. Contracts whose forward
settlement date falls between two quoted days are valued by interpolation.
Securities or loan interests for which independent pricing services or
broker dealers are unable to supply prices or for which market prices
and/or quotations are not readily available or are considered to be
unreliable are valued by a fair valuation team comprised of certain
personnel of Pioneer Investment Management, Inc. (PIM), the Fund's
investment adviser and a wholly owned indirect subsidiary of UniCredit
S.p.A. (UniCredit), pursuant to procedures adopted by the Fund's Board of
Trustees. PIM's fair valuation team uses fair value methods approved by the
Valuation Committee of the Board of Trustees. PIM's fair valuation team is
responsible for monitoring developments that may impact fair valued
securities and for discussing and assessing fair values on an ongoing
basis, and at least quarterly, with the Valuation Committee of the Board of
Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
At October 31, 2016, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services, broker-dealers or using a third party insurance industry pricing
model).
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 45
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.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the statement of operations from
the effects of changes in the market prices of those securities but are
included with the net realized and unrealized gain or loss on investments.
D. 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
46 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
these contracts from the potential inability of counterparties to meet the
terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (see Note 5).
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, 2016, 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. GAAP. 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, 2016, the Fund
reclassified $323,225 to decrease undistributed net investment income,
$550,427 to decrease accumulated net realized loss on investments futures
contracts, swap contracts and foreign currency transactions and $227,202 to
decrease paid-in capital to reflect permanent book/tax differences. These
adjustments have no impact on net assets or the results of operations.
At October 31, 2016, the Fund was permitted to carry forward indefinitely
$25,586 of long-term losses under the Regulated Investment Company
Modernization Act of 2010 without limitation.
During the year ended October 31, 2016, a capital loss carryforward of
$38,932 was utilized to offset net realized gains by the fund.
The tax character of distributions paid during the years ended October 31,
2016 and October 31, 2015, were as follows:
---------------------------------------------------------------------------
2016 2015
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 777,166 $ 856,632
Long-term capital gain -- 238,626
Return of capital 227,202 --
---------------------------------------------------------------------------
Total $1,004,368 $1,095,258
===========================================================================
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 47
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2016:
---------------------------------------------------------------------------
2016
---------------------------------------------------------------------------
Distributable earnings:
Capital loss carryforward $ (25,586)
Current year dividend payable (31,114)
Unrealized depreciation (207,788)
---------------------------------------------------------------------------
Total $(264,488)
===========================================================================
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, swaps 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, earned $1,634 in
underwriting commissions on the sale of Class A shares during the year
ended October 31, 2016.
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.
48 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
H. Risks
The value of securities held by the fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
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.
Interest rates in the U.S. recently have been historically low, so the Fund
faces a heightened risk that interest rates may rise. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions from
the Fund.
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
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 49
principal invested in such event-linked bond. The Fund is entitled to
receive principal and interest payments so long as no trigger event occurs
of the description and magnitude specified by the instrument. In addition
to the specified trigger events, event-linked bonds may expose the Fund to
other risks, including but not limited to issuer (credit) default, adverse
regulatory or jurisdictional interpretations and adverse tax consequences.
The Fund's investments in ILS may include special purpose vehicles ("SPVs")
or similar instruments structured to comprise a portion of a reinsurer's
catastrophe-oriented business, known as quota share instruments (sometimes
referred to as reinsurance sidecars), or to provide reinsurance relating to
specific risks to insurance or reinsurance companies through a
collateralized instrument, known as collateralized reinsurance. Structured
reinsurance investments, which also may include industry loss warranties
("ILWs"). A traditional ILW takes the form of a bilateral reinsurance
contract, but there are also products that take the form of derivatives,
collateralized structures, or exchange traded instruments.
Structured reinsurance investments, including quota share instruments,
collateralized reinsurance investments and ILWs, are generally subject to
the same risks as event-linked bonds. In addition, where the instruments
are based on the performance 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 structured
reinsurance investments and therefore the Fund's assets are placed at
greater risk of loss than if PIM had more complete information.
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, 2016 was $86,550 and is recorded within "Restricted cash" on
the Statement of Assets and Liabilities. Subsequent payments for futures
contracts ("variation
50 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
margin") are paid or received by the Fund, depending on the daily
fluctuation in the value of the contracts, and are recorded by the Fund as
unrealized gains or losses. When the contract is closed, the Fund realizes
a gain or loss equal to the difference between the opening and closing
value of the contract as well as any fluctuation in foreign currency
exchange rates where applicable. Futures contracts are subject to market
risk, interest rate risk and currency exchange rate risk. Changes in value
of the contracts may not directly correlate to the changes in value of the
underlying securities. With futures, there is minimal counterparty credit
risk to the Fund since futures are exchange-traded and the exchange's
clearinghouse, as counterparty to all exchange-traded futures, guarantees
the futures against default. The average value of contracts open during the
year ended October 31, 2016, was $(3,977,701).
At October 31, 2016, open futures contracts were as follows:
----------------------------------------------------------------------------------------------
Net
Number of Unrealized
Contracts Settlement Appreciation
Type Counterparty Long/(Short) Month Value (Depreciation)
----------------------------------------------------------------------------------------------
Euro Bund Citibank NA 10 12/16 $ 1,778,356 $(24,563)
US 10 Yr Note (CBT) Citibank NA (28) 12/16 (3,629,500) 45,687
US 5 Yr Note (CBT) Citibank NA (11) 12/16 (1,328,765) 6,364
----------------------------------------------------------------------------------------------
Total $(3,179,909) $ 27,488
==============================================================================================
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. 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 and for the year ended October 31, 2016, the Fund had no
open repurchase agreements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 51
L. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may sell
or buy credit default swap contracts to seek to increase the Fund's income,
or to attempt to hedge the risk of default on portfolio securities. A
credit default swap index is used to hedge risk or take a position on a
basket of credit entities or indices. As a seller of protection, the Fund
would be required to pay the notional (or other agreed-upon) value of the
referenced debt obligation to the counterparty in the event of a default by
a U.S. or foreign corporate issuer of a debt obligation, which would likely
result in a loss to the Fund. In return, the Fund would receive from the
counterparty a periodic stream of payments during the term of the contract
provided that no event of default occurred. The maximum exposure of loss to
the seller would be the notional value of the credit default swaps
outstanding. If no default occurs, the Fund would keep the stream of
payments and would have no payment obligation. The Fund may also buy credit
default swap contracts in order to hedge against the risk of default of
debt securities, in which case the Fund would function as the counterparty
referenced above.
When the Fund enters into a credit default swap contract, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the right to receive a contingent payment. An upfront payment
made by the Fund, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made as a result of a credit
event or upon termination of the contract are recognized, net of the
appropriate amount of the upfront payment, as realized gains or losses in
the Statement of Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt 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.
52 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
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.
The amount of cash deposited with a broker as collateral at October 31,
2016 was $25,000 and is recorded within "Restricted Cash" on the Statement
of Assets and Liabilities.
Open credit default swap contracts at October 31, 2016, are listed in the
Schedule of Investments. The average value of swap contracts open during
the year ended October 31, 2016 was $16,146.
2. Management Agreement
PIM 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, 2016, are reflected on the Statement of Operations. These expense
limitations are in effect through March 1, 2018. 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
$12,860 in management fees, administrative costs and certain other
reimbursements due to PIM at October 31, 2016.
3. Transfer Agent
Boston Financial Data Services serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 53
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings, outgoing phone calls and omnibus
relationship contracts. For the year ended October 31, 2016, such out-of-pocket
expenses by class of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $128,575
Class C 3,300
Class Y 1,470
--------------------------------------------------------------------------------
Total $133,345
================================================================================
4. Distribution Plan
The Fund has adopted a distribution plan (the 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 $923 in
distribution fees payable to PFD at October 31, 2016.
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, 2016, no CDSCs were paid to PFD.
5. Forward Foreign Currency Contracts
During the year ended October 31, 2016, 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
54 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
out such contract by entering into an offsetting contract. The average value of
forward foreign currency contracts open during the year ended October 31, 2016,
was $(4,869,365).
Open forward foreign currency contracts at October 31, 2016, were as follows:
-------------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased For Counterparty Date Appreciation
-------------------------------------------------------------------------------------------------------
CAD (936,492) USD 714,710 Goldman Sachs 11/4/16 $ 16,946
International
GBP (312,841) USD 420,757 Brown Brothers 11/8/16 37,767
Harriman & Co.
NZD (195,737) AUD 189,804 JP Morgan 12/13/16 4,486
Chase Bank NA
HUF (66,994,656) USD 243,174 Citibank NA 12/16/16 5,097
New York NY
NZD (3,559,854) USD 2,586,634 JP Morgan 11/21/16 44,034
Chase Bank NA
GBP (343,228) USD 438,100 Brown Brothers 12/29/16 17,339
Harriman & Co.
JPY (64,172,475) USD 615,767 Citibank NA 12/8/16 3,203
New York NY
USD (500,789) IDR 6,617,921,613 Goldman Sachs 1/17/17 493
International
-------------------------------------------------------------------------------------------------------
Total $129,365
=======================================================================================================
-------------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased For Counterparty Date Depreciation
-------------------------------------------------------------------------------------------------------
USD (746,542) JPY 75,918,298 JP Morgan 12/8/16 $(21,857)
Chase Bank NA
AUD (265,102) USD 198,143 JP Morgan 11/16/16 (3,364)
Chase Bank NA
ZAR (1,555,001) USD 111,696 Citibank NA 11/3/16 (3,595)
New York NY
USD (12,141) NOK 97,500 JP Morgan 1/3/17 (351)
Chase Bank NA
USD (111,117) EUR 98,400 Citibank NA 1/4/17 (2,877)
New York NY
MXN (1,441,213) USD 74,270 Societe Generale 11/3/16 (1,986)
USD (618,900) EUR 560,000 Brown Brothers 1/4/17 (2,905)
Harriman & Co.
EUR (96,762) USD 105,939 Goldman Sachs 1/4/17 (498)
International
-------------------------------------------------------------------------------------------------------
Total $(37,433)
=======================================================================================================
AUD Australian Dollar
CAD Canadian Dollar
EUR Euro
GBP British Pound Sterling
HUF Hungarian Forint
IDR Indonesian Rupiah
JPY Japanese Yen
MXN Mexican Peso
NOK Norwegian Krone
NZD New Zealand Dollar
ZAR South African Rand
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 55
6. Assets and Liabilities Offsetting
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Fund and a counterparty that governs the trading
of certain OTC derivatives and typically contains, among other things, close-out
and set-off provisions which apply upon the occurrence of event of a default
and/or termination event as defined under the relevant ISDA Master Agreement.
The ISDA Master Agreement may also give a party the right to terminate all
transactions traded under such agreement if, among other things, there is
deterioration in the credit quality of the other party. Upon an event of default
or a termination of the ISDA Master Agreement, the non-defaulting party has the
right to close out all transactions under such agreement and to net amounts owed
under each transaction to determine one net amount payable by one party to the
other. The right to close out and net payments across all transactions under the
ISDA Master Agreement could result in a reduction of the Fund's credit risk to
its counterparty equal to any amounts payable by the Fund under the applicable
transactions, if any. However, the Fund's right to setoff may be restricted or
prohibited by the bankruptcy or insolvency laws of the particular jurisdiction
to which each specific ISDA of each 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 "Restricted
cash." 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 not been offset on the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Fund
as of October, 31 2016.
56 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
------------------------------------------------------------------------------------------------------
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)
------------------------------------------------------------------------------------------------------
Societe Generale $ -- $ -- $ -- $ -- $ --
Morgan Stanley
Capital
Services LLC -- -- -- -- --
Goldman Sachs
International 17,439 (498) -- -- 16,941
Citibank NA
New York NY 8,300 (6,472) -- -- 1,828
Brown Brothers
Harriman & Co. 55,106 (2,905) -- -- 52,201
JPMorgan Chase
Bank NA 48,520 (25,572) -- -- 22,948
------------------------------------------------------------------------------------------------------
Total $129,365 $(35,447) $ -- $ -- $93,918
======================================================================================================
------------------------------------------------------------------------------------------------------
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 (b)
------------------------------------------------------------------------------------------------------
Societe Generale $ 1,986 $ -- $ -- $ -- $ 1,986
Morgan Stanley
Capital
Services LLC 622 -- -- (622) --
Goldman Sachs
International 498 (498) -- -- --
Citibank NA
New York NY 6,472 (6,472) -- -- --
Brown Brothers
Harriman & Co. 2,905 (2,905) -- -- --
JPMorgan
Chase Bank NA 25,572 (25,572) -- -- --
------------------------------------------------------------------------------------------------------
Total $38,055 $(35,447) $ -- $(622) $ 1,986
======================================================================================================
(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.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 57
7. 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,
2016 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
forward foreign
currency contracts $ -- $ -- $129,365 $ -- $ --
Unrealized appreciation on
futures contracts* 52,051 -- -- -- --
Unrealized appreciation on
centrally cleared
swap contracts -- 4,492 -- -- --
------------------------------------------------------------------------------------
Total Value $52,051 $4,492 $129,365 $ -- $ --
====================================================================================
* Reflects unrealized appreciation/depreciation of futures contracts (see
Note 1J). The current day's variation margin is disclosed on the Statement
of Assets and Liabilities.
58 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
------------------------------------------------------------------------------------
Foreign
Statement of Assets Interest Credit Exchange Equity Commodity
and Liabilities Rate Risk Risk Rate Risk Risk Risk
------------------------------------------------------------------------------------
Liabilities
Unrealized depreciation
on forward foreign
currency contracts $ -- $ -- $37,433 $ -- $ --
Unrealized depreciation
on futures contracts* 24,563 -- -- -- --
Unrealized depreciation on
swap contracts -- 622 -- -- --
------------------------------------------------------------------------------------
Total Value $24,563 $622 $37,433 $ -- $ --
====================================================================================
* Reflects unrealized appreciation/depreciation of futures contracts (see
Note 1J). The current day's variation margin is disclosed on the Statement
of Assets and Liabilities.
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, 2016 was as follows:
-----------------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Operations Rate Risk Risk Rate Risk Risk Risk
-----------------------------------------------------------------------------------------
Net realized gain (loss) on
Futures contracts $(104,623) $ -- $ -- $ -- $ --
Swap contracts -- 17,875 -- -- --
Forward foreign
currency contracts** -- -- (373,418) -- --
-----------------------------------------------------------------------------------------
Total Value $(104,623) $17,875 $(373,418) $ -- $ --
=========================================================================================
Change in net unrealized
appreciation (depreciation) on
Futures contracts $ 15,032 $ -- $ -- $ -- $ --
Swap contracts -- (677) -- -- --
Forward foreign
currency contracts** -- -- 284,303 -- --
-----------------------------------------------------------------------------------------
Total Value $ 15,032 $ (677) $ 284,303 $ -- $ --
=========================================================================================
** Included in the amount shown on the Statement of Operations as foward
foreign currency contracts and other assets and liabilities denominated in
foreign currencies.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 59
8. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until February 9, 2016, was in the amount of $240
million. As of February 10, 2016, the facility is in the amount of $220 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, 2016, the Fund had no borrowings under
the credit facility.
60 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
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 (the
"Fund") (one of the funds constituting Pioneer Series Trust VII), as of October
31, 2016, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the three 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 and 2012
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, 2016, by correspondence with the
custodian, brokers and agent banks; where replies were not received from brokers
or agent banks, we performed other auditing procedures. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Global Multisector Income Fund as of October 31, 2016, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for each
of the three 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, 2016
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 61
Additional Information (unaudited)
The percentages of the Fund's ordinary income distributions that are exempt from
nonresident alien (NRA) tax withholding resulting from qualified interest income
was 53.98%.
Pioneer Investment Management, Inc. (the "Adviser"), the Fund's investment
adviser, is currently an indirect, wholly owned subsidiary of UniCredit S.p.A.
("UniCredit"). On December 12, 2016, UniCredit announced that it has entered
into a binding agreement for the sale of its Pioneer Investments business, which
includes the Adviser, to Amundi (the "Transaction"). Amundi is headquartered in
Paris, France, and, as of September 30, 2016, had more than $1.1 trillion in
assets under management worldwide. The closing of the Transaction is expected to
happen in 2017, subject to certain regulatory and antitrust approvals, and other
conditions.
Under the Investment Company Act of 1940, the closing of the Transaction will
cause the Fund's current investment advisory agreement with the Adviser to
terminate. Accordingly, the Fund's Board of Trustees will be asked to approve a
new investment advisory agreement for the Fund. If approved by the Board, the
Fund's new investment advisory agreement will be submitted to the shareholders
of the Fund for their approval.
62 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
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 2016 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 2016 and May
2016. 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 2016, 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 May 2016,
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 July and
September 2016.
At a meeting held on September 13, 2016, 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 | 10/31/16 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 | 10/31/16
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 second quintile relative to its Morningstar
peer group and in the second quintile relative its Strategic Insight peer group,
in each case for the comparable period. The Trustees 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 and that the results
of the most recent such review were considered in the consideration of the
Fund's expense ratio.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the Fund that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Fund's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 65
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, including the profit margins, 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
66 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
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 Multisector Income Fund | Annual Report | 10/31/16 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 45 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 | 10/31/16
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 (66) 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, (investor communications
is elected or Inc. (technology products for securities and securities processing
earlier retirement lending industry); and Senior Executive provider for financial
or removal. Vice President, The Bank of New York services industry) (2009 -
(financial and securities services) (1986 - present); Director,
2004) Quadriserv, Inc. (2005 -
2013); and Commissioner,
New Jersey State Civil
Service Commission (2011 -
present)
--------------------------------------------------------------------------------------------------------------------------------
David R. Bock (72) Trustee since 2007. Managing Partner, Federal City Capital Director of New York
Trustee Serves until a Advisors (corporate advisory services Mortgage Trust
successor trustee company) (1997 - 2004 and 2008 - present); (publicly-traded mortgage
is elected or Interim Chief Executive Officer, Oxford REIT) (2004 - 2009, 2012 -
earlier retirement Analytica, Inc. (privately-held research present); Director of The
or removal. and consulting company) (2010); Executive Swiss Helvetia Fund, Inc.
Vice President and Chief Financial Officer, (closed-end fund) (2010 -
I-trax, Inc. (publicly traded health care present); Director of
services company) (2004 - 2007); and Oxford Analytica, Inc.
Executive Vice President and Chief (2008 - present); and
Financial Officer, Pedestal Inc. Director of Enterprise
(internet-based mortgage trading company) Community Investment, Inc.
(2000 - 2002); Private consultant (privately-held affordable
(1995-1997), Managing Director, Lehman housing finance company)
Brothers (investment banking firm) (1985 - 2010)
(1992-1995); and Executive, The World Bank
(1979-1992)
--------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (72) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon
Trustee Serves until a Economy, Harvard University (1972 - Institutional Funds
successor trustee present) Investment Trust and
is elected or Mellon Institutional Funds
earlier retirement Master Portfolio (oversaw
or removal. 17 portfolios in fund
complex) (1989-2008)
--------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 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 (69) Trustee since 2007. Founding Director, Vice President and None
Trustee Serves until a Corporate Secretary, The Winthrop Group,
successor trustee Inc. (consulting firm) (1982 - present);
is elected or Desautels Faculty of Management, McGill
earlier retirement University (1999 - present); and Manager of
or removal. Research Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
--------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (68) Trustee since 2007. President and Chief Executive Officer, Director of New America High
Trustee Serves until a Newbury Piret Company (investment banking Income Fund, Inc.
successor trustee firm) (1981 - present) (closed-end investment
is elected or company) (2004 - present);
earlier retirement and Member, Board of
or removal. Governors, Investment
Company Institute (2000 -
2006)
--------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (69) Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a (2012 - present); Executive Vice President,
successor trustee BNY Mellon (financial and investment company
is elected or services) (1969 - 2012); Director, BNY
earlier retirement International Financing Corp. (financial
or removal. services) (2002 - 2012); and Director,
Mellon Overseas Investment Corp. (financial
services) (2009 - 2012)
--------------------------------------------------------------------------------------------------------------------------------
70 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
Interested Trustee
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Principal Occupation Other Directorships
Position Held With the Fund Length of Service Held by Trustee
---------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (58)* Trustee since 2014. Director and Executive Vice President None
Trustee Serves until a (since 2008) and Chief Investment Officer,
successor trustee U.S. (since 2010) of PIM-USA; Executive
is elected or Vice President of Pioneer (since 2008);
earlier retirement Executive Vice President of Pioneer
or removal. Institutional Asset Management, Inc.
(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 | 10/31/16 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 Monchak (60)** Advisory Trustee Chief Investment Officer, 1199 SEIU Funds Trustee of Pioneer
Advisory Trustee since 2014. (healthcare workers union pension funds) closed-end investment
(2001 - present); Vice President - companies (5 portfolios)
International Investments Group, American (Sept. 2015 - present)
International Group, 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 | 10/31/16
Fund Officers
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
---------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (54) Since 2014. Chair, Director, CEO and President of Trustee of Pioneer
President and Serves at the Pioneer Investment Management-USA (since closed-end investment
Chief Executive Officer discretion of the September 2014); Chair, Director, CEO and companies (5 portfolios)
Board. President of Pioneer Investment Management, (Sept. 2015 - present)
Inc. (since September 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 (51) Since 2007. Vice President and Associate General None
Secretary and Chief Legal Serves at the Counsel of Pioneer since January 2008;
Officer discretion of the Secretary and Chief Legal Officer of all of
Board. 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 (55) Since 2010. Serves Fund Governance Director of Pioneer since None
Assistant Secretary at the discretion December 2006 and Assistant Secretary of
of the Board. all the 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 (53) Since 2010. Senior Counsel of Pioneer since May 2013 None
Assistant Secretary Serves at the and Assistant Secretary of all the Pioneer
discretion of the Funds since June 2010; and Counsel of
Board. Pioneer from June 2007 to May 2013
---------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (56) Since 2008. Vice President - Fund Treasury of Pioneer; None
Treasurer and Serves at the Treasurer of all of the Pioneer Funds since
Chief Financial and discretion of the March 2008; Deputy Treasurer of Pioneer
Accounting Officer Board. from March 2004 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 | 10/31/16 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 Officer
---------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (51) Since 2007. Director - Fund Treasury of Pioneer; and None
Assistant Treasurer Serves at the Assistant Treasurer of all of the Pioneer
discretion of the Funds
Board.
---------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (58) Since 2007. Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer Serves at the Pioneer; and Assistant Treasurer of all of
discretion of the the Pioneer Funds
Board.
---------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (36) Since 2009. Fund Administration Manager - Fund Treasury None
Assistant Treasurer Serves at the of Pioneer since November 2008; Assistant
discretion of the Treasurer of all of the Pioneer Funds since
Board. January 2009; and Client Service Manager -
Institutional Investor Services at State
Street Bank from March 2003 to March 2007
---------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (64) Since 2010. Chief Compliance Officer of Pioneer and of None
Chief Compliance Officer Serves at the all the Pioneer Funds since March 2010;
discretion of the Chief Compliance Officer of Pioneer
Board. 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 (45) Since 2007. Director - Transfer Agency Compliance of None
Anti-Money Laundering Serves at the Pioneer and Anti-Money Laundering
Officer discretion of Officer of all the Pioneer Funds since 2006
the Board.
---------------------------------------------------------------------------------------------------------------------------------
74 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
This page for your notes.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/16 75
This page for your notes.
76 Pioneer Global Multisector Income Fund | Annual Report | 10/31/16
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) 2016 Pioneer Investments 22520-08-1216
Pioneer Global High
Yield Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2016
--------------------------------------------------------------------------------
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 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 45
Notes to Financial Statements 52
Report of Independent Registered Public Accounting Firm 68
Approval of Investment Advisory Agreement 70
Trustees, Officers and Service Providers 75
Pioneer Global High Yield Fund | Annual Report | 10/31/16 1
President's Letter
Dear Shareowner,
While investors were greeted with a challenging market environment for the first
several weeks of the new year, the U.S. market generated modest single-digit
returns for both stocks and bonds through September 30th (the Bloomberg Barclays
Aggregate Bond Index was up by 5.8% through September 30, 2016, and the Standard
& Poor's 500 Index was up by 7.8%). Yet, it is becoming increasingly clear that
the investment landscape is undergoing significant change. For the past eight
years, global central banks have been the dominant force in the markets by
maintaining government bond yields at close to zero in an effort to stimulate
economic growth. With little room to lower rates further, however, central banks
may be losing their effectiveness. Many economies around the world are
experiencing slow growth as they face a variety of challenges, including the
shifting geopolitics driving "Brexit" - the United Kingdom's pending exit from
the European Union - as well as related movements in Europe, limited
productivity gains, aging populations, and transitioning economic models in
China and other emerging markets. In the United States, gross domestic product
(GDP) grew at a rate of approximately 1.2% in the first half of 2016, but GDP
growth registered a strong uptick in the third quarter of the year, driven
primarily by U.S. consumers.
Investors currently face a difficult environment. Government bond yields, as
noted earlier, had been near zero for most of the year and offered minimal
opportunity to produce income. However, recent developments such as the Federal
Reserve's decision to increase the Federal funds rate before the end of 2016
have driven yields slightly higher. The central bank-driven bull market in
riskier assets has pushed up valuations towards historic highs in the equity and
investment-grade and high-yield corporate bond markets. Central banks have
pledged to move gradually to normalize interest-rate policies as the global
economy recovers, but it will take many years for this historic credit cycle to
unwind. Politics may also influence markets or investor sentiment given the
current global political landscape. Donald Trump's surprising victory in the
November U.S. presidential election seems to have sparked a late-year market
rally, given the pro-growth proposals he promoted on the campaign trail, but it
is unclear just how many of his policy initiatives will be implemented. In
addition, continued challenges with Brexit and other geopolitical issues have
the potential to increase market volatility going forward. Against this
backdrop, investors are likely to face ongoing challenges when it comes to
finding opportunities for both income and capital appreciation, and while much
has been made of passive investing, we believe all investment decisions are
active choices.
2 Pioneer Global High Yield Fund | Annual Report | 10/31/16
Throughout Pioneer's history, we have believed in the importance of active
management. During challenging market conditions, we view the value of active
management as even more compelling. Our experienced and tenured investment teams
focus on identifying value across global markets using proprietary research,
careful risk management, and a long-term perspective. 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.
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 the trust you have placed in us 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.
December 19, 2016
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. Past performance is no
guarantee of future results.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 3
Portfolio Management Discussion | 10/31/16
High-yield debt rallied over the final eight months of the 12-month period ended
October 31, 2016, after producing weak returns for the first four months. In the
following interview, Andrew Feltus discusses 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, co-manages the Fund with Tracy Wright, a senior
vice president and portfolio manager at Pioneer.
Q How did the Fund perform during the 12-month period ended October 31, 2016?
A Pioneer Global High Yield Fund's Class A shares returned 7.14% at net asset
value during the 12-month period ended October 31, 2016, while the Fund's
benchmarks, the Bloomberg Barclays Global High Yield Index (the Bloomberg
Barclays Index) and the Bank of America Merrill Lynch (BofA ML) U.S. High
Yield Index, returned 9.83% and 10.16%, respectively. During the same
period, the average return of the 660 mutual funds in Lipper's High Yield
Funds category was 7.01%, and the average return of the 772 mutual funds in
Morningstar's High Yield Bond Funds category was 6.95%.
Q How would you describe the investment environment in the global fixed-
income markets during the 12-month period ended October 31, 2016?
A Two very different investment climates influenced the performance of
cyclically sensitive, higher-yielding investments over the 12 months. Early
in the period, which began on November 1, 2015, high-yield investments
remained mired in a slump caused by the confluence of several factors.
First, growth in the domestic economy continued to disappoint investors
awaiting signs of a more vigorous economic expansion. At the same time,
investors anticipated that the U.S. Federal Reserve ("the Fed") would begin
tightening monetary policy (and thus removing some economic stimulus) by
raising short-term interest rates at the end of 2015, and then several more
times in 2016. Meanwhile, the global economy remained even weaker, as signs
of economic slowing in China and falling prices for oil and other natural
resources raised worries about a worldwide decline in demand. During the
first four months of the period, bonds of energy and metals & mining
issuers performed particularly poorly, as did securities in some of the
more commodity-sensitive emerging markets.
4 Pioneer Global High Yield Fund | Annual Report | 10/31/16
The slump abruptly ended in early February 2016, however, with the
investment climate changing for the better. Global energy and commodity
prices bottomed, and then moved higher, helping spearhead a recovery that
continued through the end of the period. The bounce-back in commodity
prices set off a rally in high-yield, credit-linked securities that
received further support when the Fed signaled that it was backing off its
earlier, more aggressive stance on interest rates and would likely raise
short-term rates only once in 2016.
The rally in high-yield took a brief hiatus in the latter part of June when
voters in the United Kingdom (U.K.) surprisingly gave the "Leave" side a
victory in a referendum on the country's future membership in the European
Union ("Brexit"). The fallout from the Brexit vote spurred a two-day
sell-off in the markets, but high-yield bonds and other asset classes
quickly recovered their losses.
Bonds issued by energy and metals & mining firms had been the worst
performers within high yield during the market slump of late 2015 and early
2016, with many companies defaulting on their debt. Things turned around
dramatically in the subsequent market rally, however, as oil industry debt
was the top performer, based on improving prospects in general and the fact
that many companies had restructured debt and strengthened their balance
sheets. In fact, over the six months ended September 30, 2016,
energy-related bonds generated an average total return of 27.63%,
dramatically outperforming the BofA ML U.S. High Yield Index, which
returned 11.69% over that same six months. Metals & mining-related debt,
which had underperformed during the market's decline, also outpaced the
high-yield benchmark during that six-month timeframe. Elsewhere within high
yield, bonds in the cable/telecommunications services and consumer-related
sectors, which had been among the more consistent performers during last
winter's market downturn, performed more in-line with the overall
high-yield group over the final eight months of the 12-month period.
Commodity-sensitive emerging markets debt - both corporate and government
(sovereigns) - also staged a big comeback, with corporates outperforming as
the cyclical rally persisted through the end of the period.
The situation was somewhat different for European high-yield investments,
though. While corporate high-yield bonds performed relatively well in local
currencies, performance was not strong when adjusted for currency effects.
The British pound and the euro declined in relative value over the latter
months of the period as the U.S. dollar rallied and markets worried about
uncertainties created by the Brexit vote in the U.K.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 5
Q What were the main factors in the Fund's benchmark-relative performance
during the 12-month period ended October 31, 2016?
A While the Fund posted a solid absolute return during the 12-month period,
benchmark-relative returns were held back, especially in the first half of
the fiscal year, by the portfolio's relatively short duration as market
interest rates in the U.S. declined and longer-duration portfolios
outperformed. (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.) The Fund's
shorter-duration position compared with the benchmark tended to help
relative performance later in the period, however, when market interest
rates in the U.S. moved higher. At the end of the Fund's fiscal year on
October 31, 2016, the average effective duration of the portfolio's
investments was 3.85 years.
Early in the period, security selection within the Fund's domestic
high-yield allocation - particularly energy industry bonds - also acted as
a drag on benchmark-relative performance, even though the portfolio's
overweighting of domestic high-yield bonds and improved security selection
results proved advantageous in the latter months. The Fund also experienced
two defaults among its emerging markets corporate bond positions during the
early weeks of the period, which further hampered benchmark-relative
returns.
On the positive side, in addition to the overweighting of domestic high-
yield bonds, benchmark-relative performance received a boost from the
Fund's underweighted positions in both European high-yield bonds and in the
euro. The Fund's exposure to emerging markets debt tended to be a neutral
factor for benchmark-relative performance over the full 12-month period.
Q What were some of the holdings in the Fund's portfolio that either
contributed to or detracted from benchmark-relative performance during the
12-month period ended October 31, 2016?
A The Fund experienced successful security selection results in the United
States, the emerging markets, and in Europe during the 12-month period,
particularly over the latter months. Positive individual performers in the
portfolio included securities issued by Terraform Global, a clean-energy
utility that spun off from solar equipment company SunEdison, a producer of
solar energy equipment that went bankrupt subsequent to the spinoff. In
addition, securities of Vedanta, an India-based company involved in both
oil drilling and metals mining operations, Sprint Communications, the
wireless telecommunications corporation based in the United States,
6 Pioneer Global High Yield Fund | Annual Report | 10/31/16
Denbury Resources, an energy exploration-and-production company, and
energy pipeline firm Williams Companies all contributed positively to the
Fund's benchmark-relative returns.
Detractors from the Fund's benchmark-relative performance included the
two defaulted emerging markets corporate bonds we referred to earlier:
Rubiales, a Canada-based energy company with operations in Colombia, and
Icasa, a Mexican construction firm. Other poor-performing holdings in the
portfolio during the period included the debt of Abengoa, a Spain-based
construction company, and EP Energy, a U.S.-based
exploration-and-production company.
Q Did the Fund invest in any derivative securities during the 12-month period
ended October 31, 2016? If so, did the investments have a material impact on
benchmark-relative results?
A The Fund did have some investments in credit default swaps to give it
greater exposure to the high-yield sector. The positions had a positive
impact on benchmark-relative results. The Fund also invested in currency
forward transactions, both to hedge some currency positions and to give the
portfolio greater exposure to other currencies. The use of those
transactions had a slight positive impact on benchmark-relative performance.
Q Were there any changes in the Fund's yield, or distributions to
shareholders, during the 12-month period ended October 31, 2016?
A The Fund's yield and distributions remained relatively stable over the
12-month period. Investors should be aware, though, that the recent rally in
high-yield corporate bonds could eventually result in a loss of current
income as older debt securities are either called back by issuers or reach
maturity, thus forcing us to reinvest those Fund assets in lower-yielding
securities with higher prices.
Q What is your investment outlook?
A We are encouraged by recent developments in the global economy, where
fundamentals have improved. We expect solid growth trends to persist, which
should be favorable for high-yield bonds and credit-sensitive debt in
general. Elsewhere, conditions in the emerging markets are again improving,
and the Chinese government has initiated more pro-growth measures.
We think it may be time to become more cautious, however, given that the
recent strong performance of high-yield corporates has led to higher
valuations. At the same time, the economy has moved into the later stages
Pioneer Global High Yield Fund | Annual Report | 10/31/16 7
of the current growth cycle. In addition, we expect that we may see
more volatility in the financial markets resulting from uncertainties not
only in the United States but also from worries about the potential effects
of global geopolitical issues, including upcoming elections and referenda
in Europe.
While we have kept our principal investment focus for the Fund on
traditional domestic, international, and emerging markets high-yield bonds,
we have diversified* into other asset classes such as floating-rate bank
loans, insurance-linked debt, and convertible securities, the performance
of which are less highly correlated to the performance of high-yield bonds.
We also have kept the portfolio's overall duration relatively short in
order to maintain the Fund's defensive positioning as the likelihood
increases that the Fed will tighten monetary policy and further increase
the Federal funds rate.
* Diversification does not assure a profit nor protect against loss.
8 Pioneer Global High Yield Fund | Annual Report | 10/31/16
Please refer to the Schedule of Investments on pages 17-44 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
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.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 9
Portfolio Summary | 10/31/16
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 45.2%
International Corporate Bonds 36.2%
Foreign Government Bonds 6.0%
Convertible Corporate Bonds 3.5%
Senior Secured Loans 3.3%
Collateralized Mortgage Obligations 1.3%
Temporary Cash Investment 1.0%
International Common Stocks 0.9%
Municipal Bonds 0.9%
Warrants 0.6%
U.S. Preferred Stocks 0.3%
Convertible Preferred Stocks 0.3%
U.S. Common Stocks 0.3%
International Preferred Stocks 0.1%
Asset Backed Securities 0.1%
* Includes investments in insurance linked securities totaling 4.3% 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 PIE CHART IN THE PRINTED MATERIAL]
United States 54.9%
Luxembourg 6.6%
United Kingdom 5.2%
Netherlands 3.9%
Argentina 3.2%
Mexico 3.0%
France 2.1%
Ireland 2.0%
Bermuda 1.9%
Canada 1.8%
Peru 1.1%
Other (individually less than 1%) 14.3%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)**
1. Frontier Communications Corp., 8.75%, 4/15/22 1.09%
--------------------------------------------------------------------------------
2. Minerva Luxembourg SA, 7.75%, 1/31/23 (144A) 1.06
--------------------------------------------------------------------------------
3. Scientific Games International, Inc., 10.0%, 12/1/22 1.04
--------------------------------------------------------------------------------
4. Darling Global Finance BV, 4.75%, 5/30/22 0.99
--------------------------------------------------------------------------------
5. Sprint Corp., 7.25%, 9/15/21 0.94
--------------------------------------------------------------------------------
6. Mexican Udibonos, 2.0%, 6/9/22 0.84
--------------------------------------------------------------------------------
7. Cemex SAB de CV, 3.72%, 3/15/20 0.82
--------------------------------------------------------------------------------
8. MTN Mauritius Investments, 5.373%, 2/13/22 (144A) 0.81
--------------------------------------------------------------------------------
9. Ally Financial, Inc., 5.75%, 11/20/25 0.79
--------------------------------------------------------------------------------
10. Petrobras Global Finance BV, 5.375%, 1/27/21 0.79
--------------------------------------------------------------------------------
** 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 High Yield Fund | Annual Report | 10/31/16
Prices and Distributions |10/31/16
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/16 10/31/15
--------------------------------------------------------------------------------
A $8.71 $8.64
--------------------------------------------------------------------------------
C $8.69 $8.62
--------------------------------------------------------------------------------
Y $8.55 $8.49
--------------------------------------------------------------------------------
Distributions per Share: 11/1/15-10/31/16
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term Tax Return
Class Dividends Capital Gains Capital Gains of Capital
--------------------------------------------------------------------------------
A $ 0.4678 $ -- $ -- $ 0.0442
--------------------------------------------------------------------------------
C $ 0.4081 $ -- $ -- $ 0.0442
--------------------------------------------------------------------------------
Y $ 0.4828 $ -- $ -- $ 0.0442
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Bloomberg 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 U.S. High Yield
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 12-14.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 11
Performance Update | 10/31/16 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) U.S. High Yield Index and the Bloomberg Barclays
Global High Yield Index.
Average Annual Total Returns
(As of October 31, 2016)
--------------------------------------------------------------------------------
Bloomberg
Barclays BofA
Net Public Global ML U.S.
Asset Offering High High
Value Price Yield Yield
Period (NAV) (POP) Index Index
--------------------------------------------------------------------------------
10 years 4.86% 4.38% 7.66% 7.46%
5 years 4.37 3.42 7.08 7.07
1 year 7.14 2.28 9.83 10.16
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.17%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global High BofA ML U.S. High Bloomberg Barclays
Yield Fund Yield Index Global High Yield
10/06 $ 9,550 $ 10,000 $ 10,000
10/07 $ 10,343 $ 10,685 $ 10,808
10/08 $ 7,090 $ 7,851 $ 7,741
10/09 $ 10,179 $ 11,682 $ 12,015
10/10 $ 12,333 $ 13,928 $ 14,353
10/11 $ 12,394 $ 14,603 $ 14,854
10/12 $ 13,867 $ 16,527 $ 16,989
10/13 $ 14,832 $ 17,986 $ 18,595
10/14 $ 15,301 $ 19,038 $ 19,442
10/15 $ 14,327 $ 18,648 $ 19,042
10/16 $ 15,350 $ 20,543 $ 20,914
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.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer Global High Yield Fund | Annual Report | 10/31/16
Performance Update | 10/31/16 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)
U.S. High Yield Index and the Bloomberg Barclays Global High Yield Index.
Average Annual Total Returns
(As of October 31, 2016)
-------------------------------------------------------------------------------
Bloomberg
Barclays BofA
Global ML U.S.
High High
If If Yield Yield
Period Held Redeemed Index Index
-------------------------------------------------------------------------------
10 years 4.13% 4.13% 7.66% 7.46%
5 years 3.67 3.67 7.08 7.07
1 year 6.40 6.40 9.83 10.16
-------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.87%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global High BofA ML U..S.High Bloomberg Barclays
Yield Fund Yield Index Global High Yield
10/06 $ 10,000 $ 10,000 $ 10,000
10/07 $ 10,748 $ 10,685 $ 10,808
10/08 $ 7,300 $ 7,851 $ 7,741
10/09 $ 10,407 $ 11,682 $ 12,015
10/10 $ 12,533 $ 13,928 $ 14,353
10/11 $ 12,517 $ 14,603 $ 14,854
10/12 $ 13,915 $ 16,527 $ 16,989
10/13 $ 14,782 $ 17,986 $ 18,595
10/14 $ 15,142 $ 19,038 $ 19,442
10/15 $ 14,088 $ 18,648 $ 19,042
10/16 $ 14,990 $ 20,543 $ 20,914
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.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 13
Performance Update | 10/31/16 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)
U.S. High Yield Index and the Bloomberg Barclays Global High Yield Index.
Average Annual Total Returns
(As of October 31, 2016)
--------------------------------------------------------------------------------
Bloomberg
Barclays BofA
Net Global ML U.S.
Asset High High
Value Yield Yield
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 5.14% 7.66% 7.46%
5 years 4.67 7.08 7.07
1 year 7.34 9.83 10.16
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.87%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global High BofA ML U..S.High Bloomberg Barclays
Yield Fund Yield Index Global High Yield
10/06 $ 5,000,000 $ 5,000,000 $ 5,000,000
10/07 $ 5,406,180 $ 5,342,337 $ 5,403,807
10/08 $ 3,732,180 $ 3,925,705 $ 3,870,595
10/09 $ 5,365,979 $ 5,840,931 $ 6,007,575
10/10 $ 6,511,406 $ 6,963,849 $ 7,176,443
10/11 $ 6,566,449 $ 7,301,316 $ 7,426,814
10/12 $ 7,377,402 $ 8,263,659 $ 8,494,686
10/13 $ 7,914,000 $ 8,993,087 $ 9,297,443
10/14 $ 8,183,170 $ 9,519,210 $ 9,720,762
10/15 $ 7,685,953 $ 9,323,910 $ 9,521,155
10/16 $ 8,250,120 $ 10,271,647 $ 10,457,045
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.
Please refer to the financial highlights for a more current expense ratio.
14 Pioneer Global High Yield Fund | Annual Report | 10/31/16
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, 2016, through October 31, 2016.
-----------------------------------------------------------------------------------------------------
Share Class A C Y
-----------------------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 5/1/16
-----------------------------------------------------------------------------------------------------
Ending Account Value (after expenses) $ 1,063.21 $ 1,060.82 $ 1,065.20
on 10/31/16
-----------------------------------------------------------------------------------------------------
Expenses Paid During Period* $ 6.17 $ 9.84 $ 4.67
-----------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.19%,
1.90%, and 0.90% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/366 (to reflect the one-half year period).
Pioneer Global High Yield Fund | Annual Report | 10/31/16 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, 2016, through October 31, 2016.
-----------------------------------------------------------------------------------------------------
Share Class A C Y
-----------------------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 5/1/16
-----------------------------------------------------------------------------------------------------
Ending Account Value (after expenses) $ 1,019.15 $ 1,015.58 $ 1,020.61
on 10/31/16
-----------------------------------------------------------------------------------------------------
Expenses Paid During Period* $ 6.04 $ 9.63 $ 4.57
-----------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.19%,
1.90%, and 0.90% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/366 (to reflect the one-half year period).
16 Pioneer Global High Yield Fund | Annual Report | 10/31/16
Schedule of Investments | 10/31/16
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 3.5%
ENERGY -- 1.1%
Oil & Gas Exploration & Production -- 0.7%
820,000 Chesapeake Energy Corp., 5.5%, 10/5/26 (144A) $ 769,775
3,080,000 Cobalt International Energy, Inc., 2.625%,
12/1/19 1,416,800
2,585,000 Whiting Petroleum Corp., 1.25%, 4/1/20 2,168,169
70,369 Whiting Petroleum Corp., 6.25%, 4/1/23 68,962
---------------
$ 4,423,706
-------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.4%
2,800,000 Golar LNG, Ltd., 3.75%, 3/7/17 $ 2,765,000
---------------
Total Energy $ 7,188,706
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.8%
Construction Materials -- 0.8%
4,875,000 Cemex SAB de CV, 3.72%, 3/15/20 $ 5,301,562
-------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.0%+
4,075,441 Mirabela Nickel, Ltd., 9.5%, 6/24/19 (144A)
(0.0% cash, 9.5% PIK) (PIK) (d) (e) $ 346,412
-------------------------------------------------------------------------------------------------------------
Steel -- 0.0%+
EUR 256,063 New World Resources NV, 4.0%, 10/7/20 (144A)
(4.0% cash, 8.0% PIK) (PIK) $ 702
---------------
Total Materials $ 5,648,676
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.1%
Electrical Components & Equipment -- 0.1%
1,250,000 General Cable Corp., 4.5%, 11/15/29 (Step) $ 805,469
---------------
Total Capital Goods $ 805,469
-------------------------------------------------------------------------------------------------------------
MEDIA -- 0.3%
Cable & Satellite -- 0.3%
1,750,000 DISH Network Corp., 3.375%, 8/15/26 (144A) $ 2,004,844
---------------
Total Media $ 2,004,844
-------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.1%
Pharmaceuticals -- 0.1%
400,000 Jazz Investments I, Ltd., 1.875%, 8/15/21 $ 396,500
---------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 396,500
-------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.7%
Internet Software & Services -- 0.3%
1,765,000 WebMD Health Corp., 1.5%, 12/1/20 $ 2,017,616
390,000 WebMD Health Corp., 2.625%, 6/15/23 (144A) 376,350
---------------
$ 2,393,966
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 17
Schedule of Investments | 10/31/16 (continued)
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
Application Software -- 0.4%
1,515,000 Citrix Systems, Inc., 0.5%, 4/15/19 $ 1,699,641
490,000 Mentor Graphics Corp., 4.0%, 4/1/31 714,175
---------------
$ 2,413,816
---------------
Total Software & Services $ 4,807,782
-------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.1%
Electronic Components -- 0.1%
831,000 Vishay Intertechnology, Inc., 2.25%, 5/15/41 $ 719,854
---------------
Total Technology Hardware & Equipment $ 719,854
-------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.3%
Semiconductors -- 0.3%
2,393,896 LDK Solar Co, Ltd., 5.535%, 12/31/18,
(5.535% cash or 5.535% PIK) (PIK) (d) $ 167,573
2,290,000 SunPower Corp., 0.875%, 6/1/21 1,706,050
535,000 Suntech Power Holdings Co., Ltd., 3.0%,
12/31/16 (d) 27
---------------
$ 1,873,650
---------------
Total Semiconductors & Semiconductor
Equipment $ 1,873,650
-------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $30,846,441) $ 23,445,481
-------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 0.5%
TRANSPORTATION -- 0.1%
Air Freight & Logistics -- 0.1%
3,428 CEVA Group Plc* (c) $ 685,634
---------------
Total Transportation $ 685,634
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.4%
Consumer Finance -- 0.4%
96,924 6.41 GMAC Capital Trust I, Floating Rate Note,
2/15/40 $ 2,474,470
---------------
Total Diversified Financials $ 2,474,470
-------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $5,735,375) $ 3,160,104
-------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK -- 0.4%
BANKS -- 0.4%
Diversified Banks -- 0.4%
1,900 Bank of America Corp., 7.25%, 12/31/49
(Perpetual) $ 2,338,900
-------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $2,313,834) $ 2,338,900
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global High Yield Fund | Annual Report | 10/31/16
-------------------------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 1.2%
ENERGY -- 0.0%+
Oil & Gas Exploration & Production -- 0.0%+
4,507,871 Ascent CNR Corp. (Class A) $ 306,535
---------------
Total Energy $ 306,535
-------------------------------------------------------------------------------------------------------------
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. $ 84,949
---------------
Total Commercial Services & Supplies $ 84,949
-------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.1%
Air Freight & Logistics -- 0.1%
1,584 CEVA Group Plc* $ 316,730
---------------
Total Transportation $ 316,730
-------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.2%
Automobile Manufacturers -- 0.2%
119,615 Ford Motor Co. $ 1,404,280
---------------
Total Automobiles & Components $ 1,404,280
-------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.0%+
Homebuilding -- 0.0%+
1,443,476 Desarrolladora Homex SAB de CV* $ 145,131
---------------
Total Consumer Durables & Apparel $ 145,131
-------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.0%+
Education Services -- 0.0%+
11,492 Cengage Learning Holdings II, Inc. $ 235,586
---------------
Total Consumer Services $ 235,586
-------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.2%
Distillers & Vintners -- 0.2%
87,811 Marie Brizard Wine & Spirits SA* $ 1,491,587
---------------
Total Food, Beverage & Tobacco $ 1,491,587
-------------------------------------------------------------------------------------------------------------
INSURANCE -- 0.7%
Life & Health Insurance -- 0.7%
4,613,242 TIG TopCo., Ltd. (e) $ 4,178,831
4,840 TIG TopCo., Ltd. (Class A) (e) 59
132,750 TopCo. Ltd. (e) 120,249
---------------
$ 4,299,139
---------------
Total Insurance $ 4,299,139
-------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $12,583,819) $ 8,285,497
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 19
Schedule of Investments | 10/31/16 (continued)
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 0.4%
TRANSPORTATION -- 0.2%
Airlines -- 0.2%
1,197,936 Continental Airlines 1998-1 Class B Pass
Through Trust, 6.748%, 3/15/17 $ 1,216,623
---------------
Total Transportation $ 1,216,623
-------------------------------------------------------------------------------------------------------------
BANKS -- 0.2%
Thrifts & Mortgage Finance -- 0.2%
608,967 1.51 Countrywide Asset-Backed Certificates, Floating
Rate Note, 11/25/34 $ 598,407
450,000 Insite Issuer LLC Series 2016-1A Class C,
7.5%, 11/15/46 (144A) 450,000
180,538 Westgate Resorts 2014-A LLC, 6.25%,
10/20/26 (144A) 180,177
---------------
$ 1,228,584
---------------
Total Banks $ 1,228,584
-------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $2,163,814) $ 2,445,207
-------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 1.4%
BANKS -- 1.4%
Thrifts & Mortgage Finance -- 1.4%
1,500,000 3.21 Citigroup Commercial Mortgage Trust 2014-GC23
REMICS, Floating Rate Note, 7/12/47 (144A) $ 923,060
1,480,000 5.76 COBALT CMBS Commercial Mortgage Trust
2007-C3, Floating Rate Note, 5/15/46 1,418,565
455,000 5.76 COBALT CMBS Commercial Mortgage Trust
2007-C3, Floating Rate Note, 5/15/46 385,101
600,000 5.81 COMM 2007-C9 Mortgage Trust, Floating Rate
Note, 12/10/49 (144A) 558,203
1,175,000 3.98 EQTY 2014-INNS Mortgage Trust, Floating Rate
Note, 5/8/31 (144A) 1,145,628
926,128 5.28 EQTY 2014-MZ Mezzanine Trust, Floating Rate
Note, 5/10/19 (144A) 875,130
540,024 Homeowner Assistance Program Reverse Mortgage
Loan Trust 2013-RM1, 4.0%, 5/26/53 (144A) 537,324
2,100,000 6.04 JP Morgan Chase Commercial Mortgage
Securities Trust 2007-LDP12, Floating Rate
Note, 2/15/51 1,944,279
1,429,017 3.08 JP Morgan Mortgage Trust 2005-A1, Floating
Rate Note, 2/25/35 1,339,587
---------------
$ 9,126,877
---------------
Total Banks $ 9,126,877
-------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $9,254,675) $ 9,126,877
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global High Yield Fund | Annual Report | 10/31/16
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 79.7%
ENERGY -- 11.6%
Oil & Gas Drilling -- 0.3%
2,306,000 Rowan Companies, Inc., 5.4%, 12/1/42 $ 1,556,550
417,000 Rowan Companies, Inc., 5.85%, 1/15/44 293,985
---------------
$ 1,850,535
-------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.2%
400,000 Archrock Partners LP, 6.0%, 10/1/22 $ 377,000
1,062,000 Archrock Partners LP, 6.0%, 4/1/21 1,011,555
---------------
$ 1,388,555
-------------------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 1.2%
5,165,000 Petrobras Global Finance BV, 5.375%, 1/27/21 $ 5,114,383
1,256,000 Petrobras Global Finance BV, 6.25%, 3/17/24 1,241,556
MXN 8,650,000 Petroleos Mexicanos, 7.19%, 9/12/24 (144A) 418,514
1,435,000 YPF SA, 8.5%, 3/23/21 (144A) 1,578,070
---------------
$ 8,352,523
-------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 5.5%
225,000 California Resources Corp., 8.0%,
12/15/22 (144A) $ 151,875
2,345,000 Carrizo Oil & Gas, Inc., 6.25%, 4/15/23 2,409,488
2,385,000 Continental Resources, Inc., 3.8%, 6/1/24 2,194,200
2,480,000 Denbury Resources, Inc., 5.5%, 5/1/22 1,959,200
4,980,000 EPL Oil & Gas, Inc., 8.25%, 2/15/18 (d) 634,950
880,000 Extraction Oil & Gas Holdings LLC, 7.875%,
7/15/21 (144A) 930,600
2,095,000 GeoPark Latin America, Ltd., Agencia en Chile,
7.5%, 2/11/20 (144A) 1,946,360
1,380,000 Great Western Petroleum LLC, 9.0%,
9/30/21 (144A) 1,435,200
1,950,000 Gulfport Energy Corp., 6.0%, 10/15/24 (144A) 1,986,562
1,634,000 Halcon Resources Corp., 12.0%, 2/15/22 (144A) 1,748,380
3,790,000 Hilcorp Energy I LP, 5.0%, 12/1/24 (144A) 3,695,250
1,000,000 KazMunayGas National Co., JSC, 4.4%,
4/30/23 (144A) 1,010,500
2,300,000 Midstates Petroleum Co., Inc., 9.25%, 6/1/21 (d) 23,000
880,000 Newfield Exploration Co., 5.375%, 1/1/26 904,200
425,000 Newfield Exploration Co., 5.625%, 7/1/24 442,000
1,955,000 Novatek OAO via Novatek Finance DAC,
4.422%, 12/13/22 (144A) 1,930,562
3,240,000 Oasis Petroleum, Inc., 6.875%, 3/15/22 3,207,600
7,570,000 Pacific Exploration and Production Corp.,
5.375%, 1/26/19 (144A) (d) 1,514,000
250,000 Parsley Energy LLC, 6.25%, 6/1/24 (144A) 262,500
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 21
Schedule of Investments | 10/31/16 (continued)
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production (continued)
1,520,000 PDC Energy, Inc., 7.75%, 10/15/22 $ 1,615,000
340,000 QEP Resources, Inc., 5.25%, 5/1/23 334,050
1,250,000 Rice Energy Inc., 6.25%, 5/1/22 1,271,875
975,000 Rice Energy, Inc., 7.25%, 5/1/23 1,033,500
2,000,000 Sanchez Energy Corp., 6.125%, 1/15/23 1,710,000
200,000 SM Energy Co., Series, 6.125%, 11/15/22 201,000
575,000 Whiting Petroleum Corp., 5.0%, 3/15/19 546,250
1,500,000 WPX Energy, Inc., 6.0%, 1/15/22 1,496,250
---------------
$ 36,594,352
-------------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.7%
1,790,000 Calumet Specialty Products Partners LP,
6.5%, 4/15/21 $ 1,423,050
448,000 EnLink Midstream Partners LP, 5.05%, 4/1/45 399,309
1,299,000 EnLink Midstream Partners LP, 5.6%, 4/1/44 1,241,818
1,585,263 6.49 EP PetroEcuador via Noble Sovereign Funding I,
Ltd., Floating Rate Note, 9/24/19 1,565,447
---------------
$ 4,629,624
-------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 3.7%
885,000 Energy Transfer Equity LP, 5.875%, 1/15/24 $ 899,492
1,090,000 Genesis Energy LP, 5.75%, 2/15/21 1,087,275
725,000 Genesis Energy LP, 6.75%, 8/1/22 744,938
2,645,000 Global Partners LP, 7.0%, 6/15/23 2,525,975
NOK 13,000,000 6.18 Golar LNG Partners LP, Floating Rate
Note, 10/12/17 1,571,852
985,000 Holly Energy Partners LP, 6.0%, 8/1/24 (144A) 1,024,400
1,480,000 MPLX LP, 4.875%, 6/1/25 1,543,862
2,625,000 ONEOK, Inc., 7.5%, 9/1/23 3,005,625
500,000 Sabine Pass Liquefaction LLC, 5.0%,
3/15/27 (144A) 508,750
4,000,000 Sabine Pass Liquefaction LLC, 5.625%, 2/1/21 4,210,000
710,000 Sabine Pass Liquefaction LLC, 5.875%,
6/30/26 (144A) 765,167
2,150,000 Targa Resources Partners LP, 4.25%, 11/15/23 2,021,000
545,000 Targa Resources Partners LP, 5.375%,
2/1/27 (144A) 545,000
1,375,000 The Williams Companies, Inc., 4.55%, 6/24/24 1,399,062
2,635,000 The Williams Companies, Inc., 5.75%, 6/24/44 2,692,641
---------------
$ 24,545,039
-------------------------------------------------------------------------------------------------------------
Coal & Consumable Fuels -- 0.0%+
315,000 Alpha Natural Resources, Inc., 6.0%, 6/1/19 (d) $ 7,875
---------------
Total Energy $ 77,368,503
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global High Yield Fund | Annual Report | 10/31/16
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 6.5%
Commodity Chemicals -- 0.5%
1,975,000 Rain CII Carbon LLC, 8.0%, 12/1/18 (144A) $ 1,950,312
1,455,000 Tronox Finance LLC, 7.5%, 3/15/22 (144A) 1,302,225
---------------
$ 3,252,537
-------------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 1.2%
EUR 2,015,000 Axalta Coating Systems LLC, 4.25%,
8/15/24 (144A) $ 2,287,530
460,000 Blue Cube Spinco, Inc., Series, 9.75%, 10/15/23 540,500
725,000 CVR Partners LP, 9.25%, 6/15/23 (144A) 710,935
EUR 2,263,000 Ineos Finance Plc, 4.0%, 5/1/23 (144A) 2,529,203
EUR 1,380,000 Inovyn Finance Plc, 6.25%, 5/15/21 (144A) 1,584,070
---------------
$ 7,652,238
-------------------------------------------------------------------------------------------------------------
Construction Materials -- 0.2%
EUR 1,200,000 Cemex SAB DE CV, 4.75%, 1/11/22 (144A) $ 1,365,399
-------------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 1.4%
EUR 700,000 ARD Finance SA, 6.625%, 9/15/23 (144A) (PIK) $ 748,646
700,000 ARD Finance SA, 7.125%, 9/15/23 (144A) (PIK) 693,000
475,000 Ardagh Group, 3.876%, 5/15/21 484,500
590,000 Ardagh Packaging Finance Plc, 4.625%,
5/15/23 (144A) 595,900
EUR 410,000 Ardagh Packaging Finance Plc, 6.75%,
5/15/24 (144A) 478,830
423,529 Ardagh Packaging Finance Plc, 7.0%,
11/15/20 (144A) 436,235
630,000 Ardagh Packaging Finance Plc, 7.25%,
5/15/24 (144A) 664,650
EUR 725,000 Horizon Holdings I SAS, 7.25%, 8/1/23 (144A) 838,762
3,350,000 Reynolds Group Issuer, Inc., 9.875%, 8/15/19 3,433,750
EUR 950,000 Verallia Packaging SASU, 5.125%, 8/1/22 (144A) 1,092,817
---------------
$ 9,467,090
-------------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.1%
815,000 AEP Industries, Inc., 8.25%, 4/15/19 $ 837,412
-------------------------------------------------------------------------------------------------------------
Aluminum -- 0.1%
680,000 Constellium NV, 7.875%, 4/1/21 (144A) $ 724,200
-------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.6%
810,000 Ausdrill Finance Pty, Ltd., 6.875%,
11/1/19 (144A) $ 820,125
1,150,000 Freeport-McMoRan, Inc., 3.55%, 3/1/22 1,055,125
800,000 FMG Resources August 2006 Pty, Ltd., 9.75%,
3/1/22 (144A) 928,000
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 23
Schedule of Investments | 10/31/16 (continued)
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining (continued)
2,000,000 MMC Norilsk Nickel OJSC via MMC Finance,
Ltd., 5.55%, 10/28/20 (144A) $ 2,118,380
860,000 Prince Mineral Holding Corp., 11.5%,
12/15/19 (144A) 808,400
255,000 Teck Resources, Ltd., 8.0%, 6/1/21 (144A) 278,588
255,000 Teck Resources, Ltd., 8.5%, 6/1/24 (144A) 295,162
560,000 Vale Overseas, Ltd., 6.25%, 8/10/26 600,600
3,645,000 Vedanta Resources Plc, 8.25%, 6/7/21 (144A) 3,731,751
---------------
$ 10,636,131
-------------------------------------------------------------------------------------------------------------
Steel -- 0.8%
715,000 ArcelorMittal, 6.125%, 6/1/25 $ 782,925
2,915,000 BlueScope Steel Finance, Ltd., 6.5%,
5/15/21 (144A) 3,075,616
EUR 135,483 0.00 New World Resources NV, Floating Rate
Note, 10/7/20 (e) --
EUR 101,612 0.00 New World Resources NV, Floating Rate
Note, 10/7/20 (e) --
1,960,000 Samarco Mineracao SA, 4.125%, 11/1/22 (144A) 784,000
910,000 Samarco Mineracao SA, 5.75%, 10/24/23 (144A) 364,000
---------------
$ 5,006,541
-------------------------------------------------------------------------------------------------------------
Forest Products -- 0.3%
2,855,000 Eldorado Intl. Finance GmbH, 8.625%,
6/16/21 (144A) $ 2,326,825
-------------------------------------------------------------------------------------------------------------
Paper Products -- 0.3%
2,385,000 Resolute Forest Products, Inc., 5.875%, 5/15/23 $ 2,021,288
---------------
Total Materials $ 43,289,661
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 2.8%
Aerospace & Defense -- 1.1%
1,335,000 DigitalGlobe, Inc., 5.25%, 2/1/21 (144A) $ 1,345,012
2,185,884 DynCorp International, Inc., 11.875%,
11/30/20 (PIK) 1,786,960
EUR 3,615,000 TA MFG., Ltd., 3.625%, 4/15/23 3,902,863
---------------
$ 7,034,835
-------------------------------------------------------------------------------------------------------------
Building Products -- 0.1%
730,000 Griffon Corp., 5.25%, 3/1/22 $ 739,125
-------------------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.0%+
6,900,000 Abengoa Finance SA, 8.875%, 11/1/17
(144A) (d) $ 310,500
-------------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.3%
2,500,000 General Cable Corp., 5.75%, 10/1/22 $ 2,362,500
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global High Yield Fund | Annual Report | 10/31/16
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.5%
2,980,000 JB Poindexter & Co., Inc., 9.0%, 4/1/22 (144A) $ 3,130,490
-------------------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.5%
3,880,000 Apex Tool Group LLC, 7.0%, 2/1/21 (144A) $ 3,540,500
-------------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.3%
1,690,000 WESCO Distribution, Inc., 5.375%, 12/15/21 $ 1,725,912
---------------
Total Capital Goods $ 18,843,862
-------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.4%
Environmental & Facilities Services -- 0.1%
745,000 Clean Harbors, Inc., 5.125%, 6/1/21 $ 762,694
-------------------------------------------------------------------------------------------------------------
Diversified Support Services -- 0.3%
400,000 Broadspectrum, Ltd., 8.375%, 5/15/20 (144A) $ 425,500
1,475,000 NANA Development Corp., 9.5%, 3/15/19 (144A) 1,320,125
---------------
$ 1,745,625
---------------
Total Commercial Services & Supplies $ 2,508,319
-------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 2.4%
Airlines -- 0.5%
1,784,585 Guanay Finance, Ltd., 6.0%, 12/15/20 (144A) $ 1,822,507
1,350,000 TAM Capital 3, Inc., 8.375%, 6/3/21 (144A) 1,379,025
---------------
$ 3,201,532
-------------------------------------------------------------------------------------------------------------
Marine -- 0.6%
2,100,000 Far East Capital, Ltd., SA, 8.0%, 5/2/18 (d) $ 1,128,750
3,650,000 Navios South American Logistics, Inc., 7.25%,
5/1/22 (144A) 2,883,500
---------------
$ 4,012,250
-------------------------------------------------------------------------------------------------------------
Railroads -- 0.8%
3,370,000 Florida East Coast Holdings Corp., 6.75%,
5/1/19 (144A) $ 3,386,850
EUR 1,325,000 Russian Railways via RZD Capital Plc, 3.3744%,
5/20/21 1,506,029
---------------
$ 4,892,879
-------------------------------------------------------------------------------------------------------------
Trucking -- 0.0%+
5,920,860 Inversiones Alsacia SA, 8.0%, 12/31/18
(144A) (d) $ 236,834
-------------------------------------------------------------------------------------------------------------
Highways & Railtracks -- 0.5%
EUR 1,315,000 Hertz Holdings Netherlands, 4.125%,
10/15/21 (144A) $ 1,499,710
MXN 37,000,000 Red de Carreteras de Occidente SAPIB de CV,
9.0%, 6/10/28 (144A) 1,943,554
---------------
$ 3,443,264
---------------
Total Transportation $ 15,786,759
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 25
Schedule of Investments | 10/31/16 (continued)
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 1.3%
Auto Parts & Equipment -- 0.6%
EUR 580,000 IHO Verwaltungs GmbH, 3.25%, 9/15/23
(144A) (PIK) $ 645,646
EUR 1,350,000 IHO Verwaltungs GmbH, 3.75%, 9/15/26
(144A) (PIK) 1,462,025
1,462,000 Nexteer Automotive Group, Ltd., 5.875%,
11/15/21 (144A) 1,546,065
---------------
$ 3,653,736
-------------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.7%
2,035,000 Dana Financing Luxembourg S.a.r.l., 6.5%,
6/1/26 (144A) $ 2,164,731
2,475,000 TI Group Automotive Systems LLC, 8.75%,
7/15/23 (144A) 2,629,688
---------------
$ 4,794,419
---------------
Total Automobiles & Components $ 8,448,155
-------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.2%
Homebuilding -- 1.2%
460,000 Beazer Homes USA, Inc., 8.75%, 3/15/22 (144A) $ 488,750
1,345,000 KB Home, 7.0%, 12/15/21 1,442,512
2,079,000 Lennar Corp., 4.75%, 11/15/22 2,162,160
2,200,000 Rialto Holdings LLC, 7.0%, 12/1/18 (144A) 2,227,500
1,625,000 Taylor Morrison Communities, Inc., 5.875%,
4/15/23 (144A) 1,714,375
---------------
$ 8,035,297
---------------
Total Consumer Durables & Apparel $ 8,035,297
-------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 3.3%
Casinos & Gaming -- 1.5%
EUR 2,525,000 Intralot Capital Luxembourg SA, 6.75%,
9/15/21 (144A) $ 2,796,604
85,799 Mashantucket Western Pequot Tribe, 6.5%,
7/1/36 (1.0% cash, 5.50% PIK) (PIK) (d) 429
7,306,000 Scientific Games International, Inc., 10.0%,
12/1/22 6,758,050
625,000 Scientific Games International, Inc., 6.25%,
9/1/20 524,219
---------------
$ 10,079,302
-------------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.7%
1,540,000 Sabre GLBL, Inc., 5.375%, 4/15/23 (144A) $ 1,580,425
2,860,000 Viking Cruises, Ltd., 8.5%, 10/15/22 (144A) 2,888,600
---------------
$ 4,469,025
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global High Yield Fund | Annual Report | 10/31/16
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
Restaurants -- 0.4%
1,460,000 KFC Holding Co., 5.0%, 6/1/24 (144A) $ 1,518,400
1,460,000 KFC Holding Co., 5.25%, 6/1/26 (144A) 1,522,050
---------------
$ 3,040,450
-------------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.7%
EUR 3,285,000 Boing Group Financing Plc, 6.625%,
7/15/19 (144A) $ 3,476,249
1,140,000 Constellis Holdings LLC, 9.75%, 5/15/20 (144A) 1,157,100
---------------
$ 4,633,349
---------------
Total Consumer Services $ 22,222,126
-------------------------------------------------------------------------------------------------------------
MEDIA -- 2.3%
Advertising -- 0.0%+
450,000 MDC Partners, Inc., 6.5%, 5/1/24 (144A) $ 383,625
-------------------------------------------------------------------------------------------------------------
Broadcasting -- 1.2%
1,615,000 CCO Holdings LLC, 5.75%, 2/15/26 (144A) $ 1,682,628
1,075,000 CSC Holdings LLC, 5.5%, 4/15/27 (144A) 1,090,453
1,650,000 Gray Television, Inc., 5.125%, 10/15/24 (144A) 1,600,500
1,970,000 Gray Television, Inc., 5.875%, 7/15/26 (144A) 1,960,150
EUR 1,240,000 United Group BV, 7.875%, 11/15/20 (144A) 1,417,575
---------------
$ 7,751,306
-------------------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.9%
2,140,000 DISH DBS Corp., 5.875%, 7/15/22 $ 2,209,550
725,000 Intelsat Luxembourg SA, 7.75%, 6/1/21 235,625
765,000 Sirius XM Radio, Inc., 5.375%, 7/15/26 (144A) 776,957
EUR 2,700,000 Ziggo Secured Finance BV, 4.25%,
1/15/27 (144A) 2,946,016
---------------
$ 6,168,148
-------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.2%
EUR 1,125,000 WMG Acquisition Corp., 4.125%, 11/1/24 (144A) $ 1,271,672
---------------
Total Media $ 15,574,751
-------------------------------------------------------------------------------------------------------------
RETAILING -- 1.3%
Distributors -- 0.2%
1,250,000 LKQ Corp., 4.75%, 5/15/23 $ 1,282,812
-------------------------------------------------------------------------------------------------------------
Internet Retail -- 0.5%
3,525,000 Netflix, Inc., 4.375%, 11/15/26 (144A) $ 3,467,719
-------------------------------------------------------------------------------------------------------------
Department Stores -- 0.4%
2,285,000 PetSmart, Inc., 7.125%, 3/15/23 (144A) $ 2,390,681
-------------------------------------------------------------------------------------------------------------
Automotive Retail -- 0.2%
1,485,000 Cooper Standard Automotive, Inc., 5.625%,
11/15/26 $ 1,492,425
---------------
Total Retailing $ 8,633,637
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 27
Schedule of Investments | 10/31/16 (continued)
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.2%
Food Retail -- 0.2%
1,535,000 C&S Group Enterprises LLC, 5.375%,
7/15/22 (144A) $ 1,488,950
---------------
Total Food & Staples Retailing $ 1,488,950
-------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 8.1%
Agricultural Products -- 0.1%
1,625,000 Tonon Luxembourg SA, 10.5%, 5/14/24
(144A) (d) $ 666,250
-------------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 7.5%
EUR 2,825,000 Agrokor dd, 9.875%, 5/1/19 (144A) $ 3,198,577
GBP 1,170,000 Boparan Finance Plc, 5.5%, 7/15/21 (144A) 1,306,880
4,450,000 CFG Investment SAC, 9.75%, 7/30/19 (144A) (d) 2,536,500
EUR 5,595,000 Darling Global Finance BV, 4.75%, 5/30/22 6,426,912
775,000 FAGE International SA, 5.625%, 8/15/26 (144A) 800,188
3,135,000 JBS USA LUX SA, 5.75%, 6/15/25 (144A) 3,072,300
3,615,000 Marfrig Holdings Europe BV, 6.875%,
6/24/19 (144A) 3,732,488
4,173,000 Marfrig Holdings Europe BV, 8.0%, 6/8/23 (144A) 4,308,622
2,400,000 MHP SA, 8.25%, 4/2/20 (144A) 2,349,552
2,555,000 Minerva Luxembourg SA, 12.25%, 2/10/22
(144A) 2,759,400
2,460,000 Minerva Luxembourg SA, 6.5%, 9/20/26 (144A) 2,409,324
6,530,000 Minerva Luxembourg SA, 7.75%, 1/31/23 (144A) 6,864,662
6,500,000 Pesquera Exalmar SAA, 7.375%, 1/31/20 (144A) 5,102,500
2,630,000 Post Holdings, Inc., 6.0%, 12/15/22 (144A) 2,774,650
1,375,000 Post Holdings, Inc., 6.75%, 12/1/21 (144A) 1,471,250
410,000 Post Holdings, Inc., 7.75%, 3/15/24 (144A) 453,132
---------------
$ 49,566,937
-------------------------------------------------------------------------------------------------------------
Tobacco -- 0.5%
535,000 Alliance One International, Inc.,8.5%,
4/15/21 (144A) $ 535,000
3,415,000 Alliance One International, Inc., 9.875%, 7/15/21 2,851,525
---------------
$ 3,386,525
---------------
Total Food, Beverage & Tobacco $ 53,619,712
-------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 2.8%
Health Care Supplies -- 0.5%
3,270,000 ConvaTec Healthcare E SA, 10.5%,
12/15/18 (144A) $ 3,306,788
-------------------------------------------------------------------------------------------------------------
Health Care Services -- 0.2%
1,175,000 RegionalCare Hospital Partners Holdings, Inc.,
8.25%, 5/1/23 (144A) $ 1,191,156
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global High Yield Fund | Annual Report | 10/31/16
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
Health Care Facilities -- 1.1%
3,915,000 CHS, 6.875%, 2/1/22 $ 2,985,188
2,400,000 Kindred Healthcare Inc., 6.375%, 4/15/22 2,221,512
1,320,000 Kindred Healthcare, Inc., 8.0%, 1/15/20 1,306,800
820,000 Universal Hospital Services, Inc., 7.625%,
8/15/20 787,200
---------------
$ 7,300,700
-------------------------------------------------------------------------------------------------------------
Managed Health Care -- 1.0%
245,000 Centene Corp., 4.75%, 1/15/25 $ 243,928
1,840,000 Centene Corp., 4.75%, 5/15/22 1,867,600
1,550,000 Centene Corp., 5.625%, 2/15/21 1,625,966
3,130,000 WellCare Health Plans, Inc., 5.75%, 11/15/20 3,223,900
---------------
$ 6,961,394
---------------
Total Health Care Equipment & Services $ 18,760,038
-------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 1.9%
Pharmaceuticals -- 1.9%
225,000 Horizon Pharmaceuticals, Inc., 8.75%,
11/1/24 (144A) $ 228,375
1,405,000 DPx Holdings BV, 7.5%, 2/1/22 (144A) 1,478,762
5,310,000 Endo Finance LLC, 5.375%, 1/15/23 (144A) 4,513,500
EUR 3,475,000 Valeant Pharmaceuticals International, Inc.,
4.5%, 5/15/23 2,907,553
4,180,000 Valeant Pharmaceuticals International, Inc.,
5.875%, 5/15/23 (144A) 3,291,750
---------------
$ 12,419,940
---------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 12,419,940
-------------------------------------------------------------------------------------------------------------
BANKS -- 7.9%
Diversified Banks -- 6.7%
800,000 Access Bank Plc, 10.5%, 10/19/21 (144A) $ 810,000
2,085,000 9.25 Access Bank Plc, Floating Rate Note,
6/24/21 (144A) 1,902,771
INR 134,290,000 Asian Development Bank, 6.2%, 10/6/26 2,053,237
INR 108,160,000 Asian Development Bank, 6.45%, 8/8/21 1,644,912
1,050,000 8.25 Banco de Galicia y Buenos Aires SA, Floating
Rate Note, 7/19/26 (144A) 1,131,375
925,000 9.00 Banco do Brasil SA, Floating Rate Note,
12/31/49 (Perpetual) 856,550
820,000 9.75 Banco Macro SA, Floating Rate Note, 12/18/36 824,100
295,000 3.80 Banco Nacional de Comercio Exterior SNC
Cayman Islands, Floating Rate Note,
8/11/26 (144A) 292,050
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 29
Schedule of Investments | 10/31/16 (continued)
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
Diversified Banks (continued)
2,000,000 Banco Nacional de Costa Rica, 6.25%,
11/1/23 (144A) $ 2,079,280
825,000 6.25 Bank of America Corp., Floating Rate Note,
9/29/49 864,188
2,680,000 Banque Ouest Africaine de Developpement,
5.5%, 5/6/21 (144A) 2,839,192
1,400,000 BBVA Bancomer SA Texas, 6.75%, 9/30/22
(144A) 1,574,370
3,625,000 7.62 BNP Paribas SA, Floating Rate Note, 12/31/49
(Perpetual) (144A) 3,788,125
498,000 5.95 Citigroup, Inc., Floating Rate Note (Perpetual) 516,675
346,000 5.88 Citigroup, Inc., Floating Rate Note, 12/31/49
(Perpetual) 351,363
356,000 6.25 Citigroup, Inc., Floating Rate Note, 12/31/49
(Perpetual) 383,287
1,900,000 5.90 Citigroup, Inc., Floating Rate Note, 12/31/49
(Perpetual) 1,978,850
2,525,000 8.12 Credit Agricole SA, Floating Rate Note, 12/31/49
(Perpetual) (144A) 2,711,446
660,000 7.88 Credit Agricole SA, Floating Rate Note, 12/31/49
(Perpetual) (144A) 668,765
1,685,000 6.50 ING Groep NV, Floating Rate Note, 12/29/49 1,663,938
INR 42,350,000 Inter-American Development Bank, 6.0%, 9/5/17 631,488
INR 31,450,000 International Bank For Reconstruction &
Development, 5.75%, 10/28/19 470,922
4,000,000 7.70 Intesa Sanpaolo S.p.A., Floating Rate Note,
12/29/49 (Perpetual) (144A) 3,655,000
EUR 970,000 6.38 Lloyds Banking Group Plc, Floating Rate Note,
12/31/49 (Perpetual) 1,068,755
550,000 8.62 Royal Bank of Scotland Group Plc, Floating Rate
Note, 12/31/49 (Perpetual) 547,250
1,020,000 7.50 Royal Bank of Scotland Group Plc, Floating Rate
Note, 12/31/49 (Perpetual) 935,850
1,773,000 8.00 Royal Bank of Scotland Group Plc, Floating Rate
Note, 12/31/49 (Perpetual) 1,684,350
750,000 Sberbank of Russia Via SB Capital SA, 5.25%,
5/23/23 (144A) 735,000
700,000 5.50 Sberbank of Russia Via SB Capital SA, Floating
Rate Note, 2/26/24 693,000
790,000 7.38 Societe Generale SA, Floating Rate Note,
12/31/49 (Perpetual) (144A) 783,285
1,500,000 Turkiye Is Bankasi A.S., 5.5%, 4/21/22 (144A) 1,495,149
2,490,000 Turkiye Is Bankasi, 5.375%, 10/6/21 (144A) 2,485,667
775,000 VTB Bank OJSC Via VTB Capital SA, 6.95%,
10/17/22 (144A) 809,230
---------------
$ 44,929,420
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global High Yield Fund | Annual Report | 10/31/16
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.2%
2,700,000 Alfa Bank AO Via Alfa Bond Issuance Plc, 7.5%,
9/26/19 (144A) $ 2,924,100
1,850,000 Argentine Republic Government International
Bond, 7.5%, 4/22/26 (144A) 2,021,125
2,725,000 Vnesheconombank Via VEB Finance Plc,
6.902%, 7/9/20 (144A) 2,936,188
---------------
$ 7,881,413
---------------
Total Banks $ 52,810,833
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.8%
Other Diversified Financial Services -- 0.4%
IDR 35,810,000,000 European Investment Bank, 7.2%, 7/9/19 (144A) $ 2,760,537
-------------------------------------------------------------------------------------------------------------
Specialized Finance -- 1.4%
EUR 145,000 4.75 Arrow Global Finance Plc, Floating Rate Note,
5/1/23 (144A) $ 161,392
3,045,000 Cantor Fitzgerald LP, 7.875%, 10/15/19 (144A) 3,394,316
4,870,000 Nationstar Mortgage LLC, 6.5%, 6/1/22 4,736,075
1,185,000 Nationstar Mortgage LLC, 6.5%, 7/1/21 1,176,112
---------------
$ 9,467,895
-------------------------------------------------------------------------------------------------------------
Consumer Finance -- 2.6%
150,000 Ally Financial, Inc., 4.625%, 5/19/22 $ 153,375
5,003,000 Ally Financial, Inc., 5.75%, 11/20/25 5,121,821
2,650,000 Credito Real SAB de CV SOFOM ER, 7.25%,
7/20/23 (144A) 2,740,630
INR 241,840,000 International Finance Corp., 7.75%, 12/3/16 3,628,531
INR 240,670,000 International Finance Corp., 8.25%, 6/10/21 3,916,143
1,898,713 Tarjeta Naranja SA, 9.0%, 1/28/17 (144A) 1,904,409
---------------
$ 17,464,909
-------------------------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.6%
3,800,000 JBS Investment Management, Ltd., 7.25%, 4/3/24 $ 3,838,000
-------------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.8%
1,550,000 5.55 Morgan Stanley, Floating Rate Note, 12/31/49
(Perpetual) $ 1,586,812
3,028,000 UBS AG, 7.625%, 8/17/22 3,508,695
---------------
$ 5,095,507
---------------
Total Diversified Financials $ 38,626,848
-------------------------------------------------------------------------------------------------------------
INSURANCE -- 4.4%
Life & Health Insurance -- 0.2%
GBP 954,047 TIG FINCO Plc, 8.75%, 4/2/20 $ 1,059,823
GBP 168,361 8.50 TIG FINCO Plc, Floating Rate Note, 3/2/20 (144A) 210,625
---------------
$ 1,270,448
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 31
Schedule of Investments | 10/31/16 (continued)
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
Reinsurance -- 4.2%
450,000 5.78 Alamo Re, Ltd., Floating Rate Note, 6/7/18
(Cat Bond) (144A) $ 467,505
1,300,000 Arlington Segregated Account (Artex SAC Ltd.),
Variable Rate Notes, 8/31/16 (f)(g) 63,180
800,000 Berwick 2016-1 Segregated Account (Artex SAC
Ltd.), Variable Rate Notes, 2/1/18 (f)(g) 836,960
1,000,000 Berwick Segregated Account (Artex SAC Ltd),
Variable Rate Note, 1/22/16 (f)(g) 30,000
2,600,000 Carnosutie 2016-N,Segregated Account (Artex
SAC Ltd.), Variable Rate Notes, 11/30/20 (f)(g) 2,829,840
3,900,000 Carnoustie Segregated Account (Artex SAC Ltd),
Variable Rate Notes, 2/19/16 (f)(g) 79,560
EUR 1,300,000 Dundonald Segregated Account (Artex SAC Ltd),
Variable Rate Notes, 1/17/17 (f)(g) 1,380,674
800,000 Eden Re II, Ltd., Variable Rate Notes 4/23/19
(144A) (f)(g) 891,200
1,600,000 Gleneagles Segregated Account (Artex SAC Ltd),
Variable Rate Notes, 11/30/20 (f)(g) 1,831,840
3,500,000 Gullane Segregated Account (Artex SAC Ltd.),
Variable Rate Note 11/30/20 (f)(g) 3,797,850
350,000 Kingsbarns Segregated Account (Artex SAC Ltd.),
Variable Rate Notes, 5/15/17 (f)(g) 336,140
2,400,000 Lorenz Re, Ltd., Variable Rate Notes, 3/31/18 (f)(g) 168,000
1,100,000 Lorenz Re, Ltd., Variable Rate Notes, 3/31/19 (f)(g) 1,145,100
490,000 Madison Re. Variable Rate Notes, 3/31/19 (f)(g) 509,012
3,900,000 Pangaea Re, Series 2015-1, Principal at Risk
Notes, 2/1/19 (f)(g) 152,880
1,000,000 Pangaea Re, Series 2016-2, Principal at Risk
Notes, 11/30/20 (f)(g) 1,060,300
3,500,000 Pangaea Re., Variable Rate Notes, 2/1/20 (f)(g) 3,892,000
4,070,000 Pangaea Re., Variable Rate Notes, 7/1/18 (f)(g) 73,260
1,300,000 Prestwick Segregated Account (Artex SAC Ltd),
Variable Rate Notes, 7/1/16 (f)(g) 97,370
900,000 4.50 Resilience Re, Ltd., Floating Rate Note, 1/9/17
(Cat Bond) 900,000
7,176 Sector Re V, Ltd., Variable Rate Notes, 12/1/19
(144A) (f)(g) 9,035
1,150,000 Sector Re V, Ltd., Variable Rate Notes, 12/1/20
(144A) (f)(g) 1,282,595
2,600,000 St. Andrews Segregated Account (Artex SAC
Ltd), Variable Rate Notes, 1/22/16 (f)(g) 51,220
1,750,000 St. Andrews Segregated Account (Artex SAC
Ltd), Variance Rate Notes, 2/1/18 (f)(g) 1,884,575
JPY 98,019,477 Tralee Segregated Account (Artex SAC Ltd),
Variable Rate Note 7/15/17 (f)(g) 931,138
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global High Yield Fund | Annual Report | 10/31/16
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
Reinsurance (continued)
3,000,000 Versutus 2016, Class A-1, Variable Rate Notes,
11/30/20 (f)(g) $ 3,279,000
3,800,000 Versutus Ltd., Series 2015-A, Variable Rate
Notes, 12/31/17 (f)(g) 85,880
---------------
$ 28,066,114
---------------
Total Insurance $ 29,336,562
-------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.0%
Specialized REIT -- 0.4%
2,777,627 AAF Holdings LLC, 12.0%, 7/1/19 (144A)
(12.0% cash, 0.0% PIK) (PIK) $ 2,847,068
-------------------------------------------------------------------------------------------------------------
Specialized REIT -- 0.6%
2,620,000 Communications Sales & Leasing, Inc., 6.0%,
4/15/23 (144A) $ 2,718,250
955,000 Equinix, Inc., 5.375%, 4/1/23 996,781
---------------
$ 3,715,031
---------------
Total Real Estate $ 6,562,099
-------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.9%
Internet Software & Services -- 0.4%
1,780,000 Cimpress NV, 7.0%, 4/1/22 (144A) $ 1,842,300
588,000 IAC, 4.875%, 11/30/18 593,880
---------------
$ 2,436,180
-------------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.4%
735,000 Diamond 1 Finance Corp., 5.875%,
6/15/21 (144A) $ 774,659
1,455,000 Inception/Rackspace, 8.625%, 11/15/24 (144A) 1,455,000
---------------
$ 2,229,659
-------------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.9%
880,000 Alliance Data Systems, Co., 5.875%,
11/1/21 (144A) $ 886,600
3,100,000 Cardtronics, Inc., 5.125%, 8/1/22 3,169,750
1,260,000 First Data Corp., 7.0%, 12/1/23 (144A) 1,319,850
820,000 NeuStar, Inc., 4.5%, 1/15/23 761,575
---------------
$ 6,137,775
-------------------------------------------------------------------------------------------------------------
Application Software -- 0.2%
1,430,000 Open Text Corp., 5.875%, 6/1/26 (144A) $ 1,522,950
---------------
Total Software & Services $ 12,326,564
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 33
Schedule of Investments | 10/31/16 (continued)
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.7%
Communications Equipment -- 0.3%
560,000 CommScope Technologies Finance LLC, 6.0%,
6/15/25 (144A) $ 588,000
1,475,000 CommScope, Inc., 5.0%, 6/15/21 (144A) 1,508,188
---------------
$ 2,096,188
-------------------------------------------------------------------------------------------------------------
Electronic Components -- 0.4%
1,000,000 Belden, Inc., 5.25%, 7/15/24 (144A) $ 1,007,500
EUR 1,095,000 Belden, Inc., 5.5%, 4/15/23 1,272,824
---------------
$ 2,280,324
---------------
Total Technology Hardware & Equipment $ 4,376,512
-------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.7%
Semiconductors -- 0.7%
670,000 Micron Technology, Inc., 5.25%, 8/1/23 (144A) $ 656,600
3,225,000 Micron Technology, Inc., 5.5%, 2/1/25 3,161,500
520,000 Micron Technology, Inc., 5.625%, 1/15/26 (144A) 504,400
---------------
$ 4,322,500
---------------
Total Semiconductors & Semiconductor
Equipment $ 4,322,500
-------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 6.7%
Integrated Telecommunication Services -- 2.4%
2,260,000 CenturyLink, Inc., 5.625%, 4/1/25 $ 2,118,750
7,175,000 Frontier Communications Corp., 8.75%, 4/15/22 7,085,316
500,000 GCI, Inc., 6.75%, 6/1/21 516,250
1,665,000 GCI, Inc., 6.875%, 4/15/25 1,689,975
4,765,000 Windstream Services LLC, 7.75%, 10/15/20 4,848,388
---------------
$ 16,258,679
-------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 4.3%
2,800,000 Altice Financing SA, 6.5%, 1/15/22 (144A) $ 2,926,700
320,000 Altice Financing SA, 6.625%, 2/15/23 (144A) 329,600
600,000 Altice Finco SA, 8.125%, 1/15/24 (144A) 615,000
3,320,000 Digicel, Ltd., 6.0%, 4/15/21 (144A) 2,970,404
1,500,000 Mobile Telesystems OJSC via MTS International
Funding, Ltd., 5.0%, 5/30/23 (144A) 1,550,700
5,225,000 MTN Mauritius Investments, 5.373%,
2/13/22 (144A) 5,262,401
5,965,000 Sprint Corp., 7.25%, 9/15/21 6,106,669
1,155,000 T-Mobile USA, Inc., 6.0%, 4/15/24 1,228,631
2,750,000 Unison Ground Lease Funding LLC, 5.78%,
3/16/43 (144A) 2,700,692
2,720,000 VimpelCom Holdings BV, 7.5043%, 3/1/22 (144A) 3,002,907
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global High Yield Fund | Annual Report | 10/31/16
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services (continued)
RUB 124,400,000 VimpelCom Holdings BV, 9.0%, 2/13/18 (144A) $ 1,936,518
---------------
$ 28,630,222
---------------
Total Telecommunication Services $ 44,888,901
-------------------------------------------------------------------------------------------------------------
UTILITIES -- 4.5%
Electric Utilities -- 2.4%
2,125,000 Centrais Eletricas Brasileiras SA, 5.75%,
10/27/21 $ 2,122,344
EUR 1,475,000 ContourGlobal Power Holdings SA, 5.125%,
6/15/21 (144A) 1,693,507
1,325,000 5.25 Electricite de France SA, Floating Rate Note
(Perpetual) (144A) 1,311,750
2,395,000 8.13 Enel S.p.A., Floating Rate Note, 9/24/73 (144A) 2,794,965
47,408 FPL Energy National Wind Portfolio LLC, 6.125%,
3/25/19 (144A) 47,408
1,425,000 Talen Energy Supply LLC, 4.625%, 7/15/19
(144A) 1,353,750
4,660,000 Talen Energy Supply LLC, 6.5%, 6/1/25 3,891,100
2,715,000 TerraForm Power, 9.75%, 8/15/22 (144A) 2,823,600
---------------
$ 16,038,424
-------------------------------------------------------------------------------------------------------------
Gas Utilities -- 0.6%
2,133,000 DCP Midstream Operating LP, 5.6%, 4/1/44 $ 1,999,688
1,850,000 Ferrellgas LP, 6.75%, 6/15/23 1,725,125
---------------
$ 3,724,813
-------------------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.5%
3,644,902 Ormat Funding Corp., 8.25%, 12/30/20 $ 3,608,453
-------------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy
Traders -- 1.0%
1,195,000 Calpine Corp., 5.25%, 6/1/26 (144A) $ 1,212,925
725,000 Calpine Corp., 5.75%, 1/15/25 705,062
940,000 Instituto Costarricense de Electricidad, 6.95%,
11/10/21 (144A) 1,002,510
1,705,000 NRG Energy, Inc., 6.625%, 1/15/27 (144A) 1,596,835
1,370,000 NRG Energy, Inc., 7.25%, 5/15/26 (144A) 1,347,957
500,000 Star Energy Geothermal Wayang Windu, Ltd.,
6.125%, 3/27/20 (144A) 518,750
205,000 TerraForm Power Operating LLC, 5.875%,
2/1/23 (Step) (144A) 205,512
---------------
$ 6,589,551
---------------
Total Utilities $ 29,961,241
-------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $553,506,021) $ 530,211,770
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 35
Schedule of Investments | 10/31/16 (continued)
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 6.2%
1,845,000 Africa Finance Corp., 4.375%, 4/29/20 (144A) $ 1,922,564
BRL 5,975,000 Brazilian Government International Bond,
10.25%, 1/10/28 1,920,800
2,650,000 City of Buenos Aires Argentina, 7.5%,
6/1/27 (144A) 2,855,375
1,210,000 Ecuador Government International Bond,
10.5%, 3/24/20 (144A) 1,276,550
690,000 Gabon Government International Bond,
6.375%, 12/12/24 (144A) 632,578
GHS 9,405,000 Ghana Government Bond, 24.5%, 4/22/19 2,494,791
GHS 4,085,000 Ghana Government Bond, 24.75%, 7/19/21 1,191,305
2,175,000 Kenya Government International Bond, 5.875%,
6/24/19 (144A) 2,249,950
3,130,000 Kenya Government International Bond, 6.875%,
6/24/24 (144A) 3,122,175
900,000 Kingdom of Jordan, 5.75% 1/31/27 (144A) 895,590
MXN 106,818,808 Mexican Udibonos, 2.0%, 6/9/22 5,458,937
MXN 9,452,019 Mexican Udibonos, 3.5%, 12/14/17 511,908
EUR 1,915,000 Mexico Government International Bond, 4.0%,
3/15/15 1,896,290
1,415,000 Namibia International Bonds, 5.25%,
10/29/25 (144A) 1,469,916
1,469,144 Province of Salta Argentina, 9.5%, 3/16/22
(144A) 1,571,984
1,380,000 Provincia de Buenos Aires Argentina, 9.125%,
3/16/24 (144A) 1,528,350
830,000 Provincia de Cordoba, 7.125%, 6/10/21 (144A) 859,050
4,015,000 Provincia del Chubut Argentina, 7.75%,
7/26/26 (144A) 4,055,150
3,125,000 Republic of Argentina Government Bond,
6.625%, 7/6/28 3,214,062
RON 8,220,000 Romania Government Bond, 5.85%, 4/26/23 2,359,608
---------------
$ 41,486,933
-------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $43,673,831) $ 41,486,933
-------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 0.9%(l)
Municipal Development -- 0.1%
665,000 0.49 Lower Neches Valley Authority Industrial
Development Corp., Floating Rate Note, 11/1/38 $ 665,000
-------------------------------------------------------------------------------------------------------------
Municipal General -- 0.1%
8,875,000 0.00 Non-Profit Preferred Funding Trust I, Floating Rate
Note, 9/15/37 (144A) $ 680,091
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global High Yield Fund | Annual Report | 10/31/16
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
Higher Municipal Education -- 0.1%
260,000 0.39 Connecticut State Health & Educational Facility
Authority, Floating Rate Note, 7/1/36 $ 260,000
365,000 0.40 Massachusetts Health & Educational Facilities
Authority, Floating Rate Note, 11/1/49 365,000
---------------
$ 625,000
-------------------------------------------------------------------------------------------------------------
Municipal Medical -- 0.6%
330,000 0.54 Harris County Health Facilities Development
Corp., Floating Rate Note, 12/1/41 $ 330,000
3,760,000 0.54 Harris County Health Facilities Development
Corp., Floating Rate Note, 12/1/41 3,760,000
150,000 0.51 Massachusetts Health & Educational Facilities
Authority, Floating Rate Note, 10/1/49 150,000
---------------
$ 4,240,000
-------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $14,390,011) $ 6,210,091
-------------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 3.3%**
ENERGY -- 0.4%
Oil & Gas Exploration & Production -- 0.4%
785,457 15.00 Ascent Resources -- Utica LLC (fka American
Energy -- Utica, LLC) Term Loan (Second Lien),
7/1/19 $ 333,819
2,013,697 9.75 EP Energy LLC, Loan, 6/30/21 2,064,039
---------------
$ 2,397,858
-------------------------------------------------------------------------------------------------------------
Coal & Consumable Fuels -- 0.0%+
1,034,769 8.15 Long Haul Holdings, Ltd., Facility B Loan,
11/17/18 $ 165,563
---------------
Total Energy $ 2,563,421
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.4%
Diversified Metals & Mining -- 0.1%
197,834 3.75 Fortescue Metals Group Ltd., Bank Loan, 6/30/19 $ 197,927
-------------------------------------------------------------------------------------------------------------
Steel -- 0.3%
1,995,000 6.00 Zekelman Industries, Inc., Term Loan, 6/8/21 $ 2,017,444
---------------
Total Materials $ 2,215,371
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.3%
Aerospace & Defense -- 0.3%
2,100,000 4.84 DynCorp International, Inc., Term Loan B2, 7/7/20 $ 2,103,938
---------------
Total Capital Goods $ 2,103,938
-------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.1%
Diversified Support Services -- 0.1%
492,076 4.84 IAP Worldwide Services, Inc., Term Loan, 7/18/19 $ 457,630
---------------
Total Commercial Services & Supplies $ 457,630
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 37
Schedule of Investments | 10/31/16 (continued)
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.0%+
Auto Parts & Equipment -- 0.0%+
1,782 3.25 Allison Transmission, Inc., Term B-3 Loan, 8/23/19 $ 1,798
---------------
Total Automobiles & Components $ 1,798
-------------------------------------------------------------------------------------------------------------
MEDIA -- 0.6%
Advertising -- 0.3%
2,138,165 6.75 Affinion Group, Inc., Tranche B Term Loan,
4/30/18 $ 2,083,819
-------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.3%
1,775,000 8.50 Redbox Automated Retail LLC, Term B Loan
(First Lien), 9/28/21 $ 1,731,365
---------------
Total Media $ 3,815,184
-------------------------------------------------------------------------------------------------------------
RETAILING -- 0.2%
Automotive Retail -- 0.2%
1,536,201 5.75 CWGS Group LLC, Term Loan, 2/20/20 $ 1,542,922
---------------
Total Retailing $ 1,542,922
-------------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.1%
Personal Products -- 0.1%
800,000 4.25 Revlon Consumer Products Corp., Initial Term B
Loan, 7/22/23 $ 802,875
---------------
Total Household & Personal Products $ 802,875
-------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.7%
Health Care Services -- 0.5%
1,004,363 4.25 Alliance HealthCare Services, Inc., Initial Term
Loan, 6/3/19 $ 967,536
666,703 6.50 BioScrip, Inc., Initial Term B Loan, 7/31/20 656,980
400,022 6.50 BioScrip, Inc., Term Loan, 7/31/20 394,188
1,316,666 4.50 National Surgical Hospitals, Inc., Term Loan
(First Lien), 5/15/22 1,302,249
---------------
$ 3,320,953
-------------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.1%
730,604 9.75 MMM Holdings, Inc., Term Loan, 10/9/17 (d) $ 692,247
-------------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.1%
531,145 9.75 MSO of Puerto Rico, Inc., MSO Term Loan,
12/12/17 (d) $ 503,260
---------------
Total Health Care Equipment & Services $ 4,516,460
-------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.4%
Biotechnology -- 0.4%
2,777,604 7.00 Lantheus Medical Imaging, Inc., Initial Term
Loan, 6/25/22 $ 2,733,626
---------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 2,733,626
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global High Yield Fund | Annual Report | 10/31/16
-------------------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
-------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.1%
Electric Utilities -- 0.1%
162,500 5.00 TEX Operations Co., LLC, Term C Loan, 7/27/23 $ 163,772
712,500 5.00 TEX Operations Co., LLC, Term Loan, 7/27/23 718,067
---------------
$ 881,839
---------------
Total Utilities $ 881,839
-------------------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTERESTS
(Cost $22,100,319) $ 21,635,064
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Shares
-------------------------------------------------------------------------------------------------------------
RIGHTS / WARRANTS -- 0.0%+
FOOD, BEVERAGE & TOBACCO -- 0.0%+
Distillers & Vintners -- 0.0%+
29 Marie Brizard Wine & Spirits SA, 12/23/16 $ --
---------------
Total Food, Beverage & Tobacco $ --
-------------------------------------------------------------------------------------------------------------
INSURANCE -- 0.0%+
Life & Health Insurance -- 0.0%+
1,390 TIG TopCo., Ltd. (e) $ --
---------------
Total Insurance $ --
-------------------------------------------------------------------------------------------------------------
TOTAL RIGHTS / WARRANTS
(Cost $2) $ --
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Principal
Amount ($)
-------------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 1.0%
Commercial Paper -- 0.8%
1,675,000 BNP Paribas SA, Commercial Paper, 11/1/16 (c) $ 1,674,980
1,675,000 Prudential Funding Corp., Commercial Paper,
11/1/16 (c) 1,674,983
1,675,000 Societe Generale SA, Commercial Paper,
11/1/16 (c) 1,674,986
---------------
$ 5,024,949
-------------------------------------------------------------------------------------------------------------
Certificate of Deposit -- 0.2%
1,695,000 Sumitomo Mitsui Trust, Certificate of Deposit,
1.26%, 4/3/17 $ 1,697,377
-------------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $6,720,000) $ 6,722,326
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 39
Schedule of Investments | 10/31/16 (continued)
-----------------------------------------------------------------------------------------------------------------
Number Strike Expiration
of Contracts Description Counterparty Price Date Value
-----------------------------------------------------------------------------------------------------------------
CALL OPTIONS PURCHASED -- 0.0%+
MXN 297,012(i) Desarrolladora Homex Bank of New York
SAB de CV Mellon Corp $ --(k) 10/23/22 $ --
MXN 297,012(j) Desarrolladora Homex Bank of New York --(k) 10/23/22 --
SAB de CV Mellon Corp
--------------
$ --
-----------------------------------------------------------------------------------------------------------------
TOTAL CALL OPTIONS PURCHASED
(Premiums paid $--) $ --
-----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 98.5%
(Cost $703,288,142) (a) (h) $ 655,068,250
-----------------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 1.5% $ 10,095,255
-----------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 665,163,505
=================================================================================================================
* Non-income producing security.
+ Amount rounds to less than 0.1%.
REIT Real Estate Investment Trust.
(Perpetual) Security with no stated maturity date.
(PIK) Represents a pay-in-kind security.
(Cat Bond) Catastrophe or event linked bond. At October 31, 2016 the value of
these securities amounted to $1,367,505 or 0.2% of net assets.
See Notes to Financial Statements -- 1H.
REMICS Real Estate Mortgage Investment Conduits.
(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, 2016, the value of these securities
amounted to $319,993,144 or 48.1% of net assets.
(a) At October 31, 2016, the net unrealized depreciation on
investments based on cost for federal income tax purposes of
$705,006,479 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 26,956,171
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (76,894,400)
--------------
Net unrealized depreciation $ (49,938,229)
==============
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global High Yield Fund | Annual Report | 10/31/16
(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, 2016, the value of
these securities amounted to $26,698,609 or 4.0% of net assets. See
Notes to Financial Statements -- Note 1H.
(g) Rate to be determined.
(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 54.9%
Luxembourg 6.6%
United Kingdom 5.2%
Netherlands 3.9%
Argentina 3.2%
Mexico 3.0%
France 2.1%
Ireland 2.0%
Bermuda 1.9%
Canada 1.8%
Peru 1.1%
Other (individually less than 1%) 14.3%
------
100.0%
======
(i) Option does not become effective until underlying company's
outstanding common shares reach a market capitalization of MXN
12.5 Billion.
(j) Option does not become effective until underlying company's
outstanding common shares reach a market capitalization of
MXN 15.5 Billion.
(k) Strike price is 1 Mexican Peso (MXN).
(l) Consists of revenue bonds unless otherwise indicated.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
BRL Brazilian Real
EUR Euro
GBP British Pound Sterling
GHS Ghanian Cedis
IDR Indonesian Rupiah
INR Indian Rupee
JPY Japanese Yen
MXN Mexican Peso
NOK Norwegian Krone
RON Romanian Leu
RUB Russian Ruble
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 41
Schedule of Investments | 10/31/16 (continued)
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2016 were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government Securities $ 3,542,583 3,543,075
Other Long-Term Securities $ 294,485,327 556,894,419
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Pioneer Investment
Management, Inc. serves as the Fund's investment adviser, as set forth in Rule
17a-7 under the Investment Company Act of 1940, pursuant to procedures adopted
by the Board of Trustees. Under these procedures, cross trades are effected at
current market prices. During the year ended October 31, 2016, the Fund engaged
in purchases and sales pursuant to these procedures amounting to $16,880,345 and
$84,418,622, respectively, resulting in a net realized loss of $3,125,512.
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
----------------------------------------------------------------------------------------------------------------
Premiums
Notional Obligation Credit Expiration Paid Unrealized
Principal ($)(1) Exchange Entity/Index Coupon Rating(2) Date (Received) Appreciation
----------------------------------------------------------------------------------------------------------------
4,370,850 Chicago Markit CDX
Mercentile North America
Exchange High Yield
Index 5.00% BBB+ 12/20/20 $ (33,704) $ 272,540
3,310,000 Chicago Markit CDX
Mercentile North America
Exchange High Yield
Index 5.00% BBB+ 6/20/21 142,463 19,840
----------------------------------------------------------------------------------------------------------------
$ 108,759 $ 292,380
================================================================================================================
(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 weighted average of all
the underlying securities of the index.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global High Yield Fund | Annual Report | 10/31/16
The following is a summary of the inputs used as of October 31, 2016, in valuing
the Fund's investments:
-----------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------------------
Convertible Corporate Bonds
Materials
Diversified Metals
& Mining $ -- $ -- $ 346,412 $ 346,412
All Other Convertible
Corporate Bonds -- 23,099,069 -- 23,099,069
Preferred Stocks
Transportation
Air Freight & Logistics -- 685,634 -- 685,634
Diversified Financials
Consumer Finance 2,474,470 -- -- 2,474,470
Convertible Preferred Stocks 2,338,900 -- -- 2,338,900
Common Stocks
Capital Goods
Industrial Machinery -- -- 1,560 1,560
Automobiles & Components
Automobile
Manufacturers 1,404,280 -- -- 1,404,280
Consumer Durables
& Apparel
Homebuilding 145,131 -- -- 145,131
Food, Beverage & Tobacco
Distillers & Vintners 1,491,587 -- -- 1,491,587
Insurance
Life & Health Insurance -- -- 4,299,139 4,299,139
All Other Common Stocks -- 943,800 -- 943,800
Asset Backed Securities -- 2,445,207 -- 2,445,207
Collateralized Mortgage
Obligations -- 9,126,877 -- 9,126,877
Corporate Bonds
Insurance
Reinsurance -- 467,505 27,598,609 28,066,114
All Other Corporate Bonds -- 502,145,656 -- 502,145,656
Foreign Government Bonds -- 41,486,933 -- 41,486,933
Municipal Bonds -- 6,210,091 -- 6,210,091
Senior Floating Rate
Loan Interests -- 21,635,064 -- 21,635,064
Rights/Warrants -- -- -- --
Commercial Paper -- 5,024,949 -- 5,024,949
Certificate of Deposit -- 1,697,377 -- 1,697,377
Call Option Purchased --* -- -- --
-----------------------------------------------------------------------------------------------------
Total $ 7,854,368 $ 614,968,162 $ 32,245,720 $ 655,068,250
=====================================================================================================
* Securities valued at $0.0.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 43
Schedule of Investments | 10/31/16 (continued)
-----------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------
Other Financial Instruments
Unrealized appreciation on
forward foreign
currency contracts $ -- $ 342,571 $ -- $ 342,571
Unrealized depreciation on
forward foreign
currency contracts -- (38,506) -- (38,506)
Unrealized appreciation on
centrally cleared
swap contracts -- 292,380 -- 292,380
-----------------------------------------------------------------------------
Total Other
Financial Instruments $ -- $ 596,445 $ -- $ 596,445
=============================================================================
The following is a reconciliation of assets valued using significant observable
inputs (Level 3):
--------------------------------------------------------------------------------------------------------
Convertible
Common Corporate Preferred Corporate
Stocks Bonds Stocks Bonds Total
--------------------------------------------------------------------------------------------------------
Balance as of 10/31/15 $ 7,752,735 $ 39,144 $ 83,750 $ 51,484,941 $ 59,360,570
Realized gain (loss)(1) 199,673 -- -- (804,415) (604,742)
Change in unrealized
appreciation
(depreciation)(2) (3,013,976) (1,871,924) (83,750) 3,757,177 (1,212,473)
Purchases -- 361,230 -- 24,132,848 24,494,078
Sales (637,733) -- -- (50,971,942) (51,609,675)
Transfers in to Level 3* -- 1,857,106 -- -- 1,857,106
Transfers out of Level 3* -- (39,144) -- -- (39,144)
Transfers in and out of
Level 3 categories* -- -- -- -- --
--------------------------------------------------------------------------------------------------------
Balance as of 10/31/16 $ 4,300,699 $ 346,412 $ -- $ 27,598,609 $ 32,245,720
========================================================================================================
(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, 2016, a security valued at $39,144 transferred from level
3 to level 2 as there were observable inputs available to determine its
value. In addition, a security valued at $1,857,106 transferred from level
2 to level 3 as there were no longer observable inputs to determine its
value.
Net change in unrealized appreciation (depreciation) of investments
still held as of 10/31/16 $ (3,941,748)
-------------
The accompanying notes are an integral part of these financial statements.
44 Pioneer Global High Yield Fund | Annual Report | 10/31/16
Statement of Assets and Liabilities | 10/31/16
ASSETS:
Investment in securities (cost $703,288,142) $ 655,068,250
Cash 3,471,180
Foreign currencies, at value (cost $3,086,519) 3,115,789
Restricted cash* 464,940
Receivables --
Investment securities sold 5,532,319
Fund shares sold 833,363
Dividends 17,942
Interest 9,616,443
Unrealized appreciation on forward foreign currency contracts 342,571
Other assets 133,268
------------------------------------------------------------------------------------------------------
Total assets $ 678,596,065
------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 9,838,487
Fund shares repurchased 2,800,188
Distributions 360,623
Trustee fees 3,469
Reserve for repatriation tax 5,126
Variation margin on centrally cleared swap contracts 6,225
Unrealized depreciation on forward foreign currency contracts 38,506
Due to affiliates 77,448
Accrued expenses 302,488
------------------------------------------------------------------------------------------------------
Total liabilities $ 13,432,560
------------------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 1,197,414,195
Distributions in excess of net investment income (2,669,468)
Accumulated net realized loss on investments, swap contracts
and foreign currency transactions (481,967,950)
Net unrealized depreciation on investments (Net of foreign capital gains
tax of $5,126) (48,225,018)
Unrealized appreciation on swap contracts 292,380
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 319,366
------------------------------------------------------------------------------------------------------
Net assets $ 665,163,505
------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $201,359,572/23,129,263 shares) $ 8.71
Class C (based on $183,542,360/21,128,348 shares) $ 8.69
Class Y (based on $280,261,573/32,778,316 shares) $ 8.55
MAXIMUM OFFERING PRICE:
Class A ($8.71 (divided by) 95.5%) $ 9.12
======================================================================================================
* Represents restricted cash deposited at the counterparty for derivative
contracts
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 45
Statement of Operations
For the Year Ended 10/31/16
INVESTMENT INCOME:
Interest (net of foreign taxes withheld of $107,742) $ 57,796,800
Dividends 802,095
----------------------------------------------------------------------------------------------------
Total investment income $ 58,598,895
----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 5,160,290
Transfer agent fees
Class A 37,473
Class C 8,283
Class Y 4,476
Distribution fees
Class A 539,126
Class C 2,001,018
Shareholder communication expense 903,471
Administrative expense 271,324
Custodian fees 60,111
Registration fees 95,405
Professional fees 137,190
Printing expense 56,129
Fees and expenses of nonaffiliated Trustees 32,208
Interest expense 1,763
Miscellaneous 125,887
----------------------------------------------------------------------------------------------------
Total expenses $ 9,434,154
----------------------------------------------------------------------------------------------------
Net investment income $ 49,164,741
----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
CLASS ACTIONS, SWAP CONTRACTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (94,412,572)
Class actions 229,105
Swap contracts 120,207
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 771,468 $ (93,291,792)
----------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments (Net of foreign capital gain tax of $5,126) $ 77,262,207
Swap contracts 292,380
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 366,053 $ 77,920,640
----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments,
class actions swap contracts and foreign
currency transactions $ (15,371,152)
----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 33,793,589
====================================================================================================
The accompanying notes are an integral part of these financial statements.
46 Pioneer Global High Yield Fund | Annual Report | 10/31/16
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/16 10/31/15
-------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 49,164,741 $ 74,158,414
Net realized gain (loss) on investments, class actions,
swap contracts, written options and foreign
currency transactions (93,291,792) (99,680,836)
Change in net unrealized appreciation (depreciation)
on investments, swap contracts, written options
and foreign currency transactions 77,920,640 (56,915,601)
-------------------------------------------------------------------------------------------------
Net decrease in net assets resulting
from operations $ 33,793,589 $ (82,438,023)
-------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.47 and $0.46 per share, respectively) $ (12,102,966) $ (16,116,373)
Class B* ($0.00 and $0.02 per share, respectively) -- (27,063)
Class C ($0.41 and $0.40 per share, respectively) (9,849,973) (12,638,032)
Class Y ($0.48 and $0.48 per share, respectively) (20,292,853) (30,502,564)
Class Z** ($0.00 and $0.39 per share, respectively) -- (230,464)
Tax return of capital:
Class A ($0.04 and $0.08 per share, respectively) (1,039,895) (2,723,523)
Class C ($0.04 and $0.08 per share, respectively) (957,019) (2,484,930)
Class Y ($0.04 and $0.08 per share, respectively) (1,462,389) (4,980,188)
Class Z** ($0.00 and $0.08 per share, respectively) -- (33,644)
-------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (45,705,095) $ (69,736,781)
-------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 107,183,404 $ 225,138,161
Reinvestment of distributions 40,330,239 60,938,540
Cost of shares repurchased (447,001,020) (591,554,304)
-------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ (299,487,377) $ (305,477,603)
-------------------------------------------------------------------------------------------------
Net decrease in net assets $ (311,398,883) $ (457,652,407)
NET ASSETS:
Beginning of year $ 976,562,388 $ 1,434,214,795
-------------------------------------------------------------------------------------------------
End of year $ 665,163,505 $ 976,562,388
-------------------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (2,669,468) $ (5,057,703)
=================================================================================================
* 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 | 10/31/16 47
Statements of Changes in Net Assets (continued)
---------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/16 10/31/16 10/31/15 10/31/15
Shares Amount Shares Amount
---------------------------------------------------------------------------------------------
Class A
Shares sold 1,502,404 $ 12,563,258 5,705,189 $ 53,564,125
Reinvestment of
distributions 1,415,368 11,855,334 1,834,846 16,763,907
Less shares repurchased (9,210,188) (76,947,782) (16,272,631) (149,194,095)
---------------------------------------------------------------------------------------------
Net decrease (6,292,416) $ (52,529,190) (8,732,596) $ (78,866,063)
=============================================================================================
Class B*
Shares sold or exchanged -- $ -- -- $ --
Reinvestment of
distributions -- -- -- --
Less shares repurchased -- -- (1,751,406) (17,041,325)
---------------------------------------------------------------------------------------------
Net decrease -- $ -- (1,751,406) $ (17,041,325)
=============================================================================================
Class C
Shares sold 755,257 $ 6,249,038 1,679,200 $ 15,503,386
Reinvestment of
distributions 1,047,555 8,752,547 1,313,253 11,966,321
Less shares repurchased (8,203,488) (68,568,704) (11,734,031) (107,116,018)
---------------------------------------------------------------------------------------------
Net decrease (6,400,676) $ (53,567,119) (8,741,578) $ (79,646,311)
=============================================================================================
Class Y
Shares sold 10,732,152 $ 88,371,108 17,127,325 $ 154,449,905
Reinvestment of
distributions 2,404,961 19,722,358 3,568,721 32,030,832
Less shares repurchased (37,531,165) (301,484,534) (34,480,930) (310,458,535)
---------------------------------------------------------------------------------------------
Net decrease (24,394,052) $(193,391,068) (13,784,884) $ (123,977,798)
=============================================================================================
Class Z**
Shares sold -- $ -- 169,502 $ 1,620,745
Reinvestment of
distributions -- -- 18,590 177,480
Less shares repurchased -- -- (826,914) (7,744,331)
---------------------------------------------------------------------------------------------
Net decrease -- $ -- (638,822) $ (5,946,106)
=============================================================================================
* 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.
48 Pioneer Global High Yield Fund | Annual Report | 10/31/16
Financial Highlights
----------------------------------------------------------------------------------------------------------------------------------
Year Year
Year Year Year Ended Ended
Ended Ended Ended 10/31/13 10/31/12
10/31/16 10/31/15 10/31/14 (Consolidated) (Consolidated)
----------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 8.64 $ 9.79 $ 10.13 $ 10.13 $ 9.83
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.54(a) $ 0.58(a) $ 0.66 $ 0.71 $ 0.76
Net realized and unrealized gain (loss) on investments 0.04(b) (1.19) (0.34) (0.02) 0.35
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.58 $ (0.61) $ 0.32 $ 0.69 $ 1.11
----------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.47) $ (0.46) $ (0.63) $ (0.69) $ (0.81)
Tax return of capital (0.04) (0.08) (0.03) -- --
----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.51) $ (0.54) $ (0.66) $ (0.69) $ (0.81)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.07 $ (1.15) $ (0.34) $ -- $ 0.30
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.71 $ 8.64 $ 9.79 $ 10.13 $ 10.13
==================================================================================================================================
Total return* 7.14%(c) (6.36)% 3.16% 6.96% 11.89%
Ratio of net expenses to average net assets 1.19% 1.17% 1.13% 1.10% 1.10%
Ratio of net investment income (loss) to average net assets 6.50% 6.31% 6.62% 6.97% 7.74%
Portfolio turnover rate 40% 32% 32% 33% 33%
Net assets, end of period (in thousands) $201,360 $254,056 $373,543 $ 531,829 $602,568
==================================================================================================================================
* 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.
(b) The amount shown for a share outstanding does not correspond with the
aggregate loss on investments for the period due to the timing of sales and
repurchases of shares in relation to fluctuating market values of the
investments of the Fund.
(c) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended October 31, 2016, the total return would
have been 7.01%.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 49
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------------
Year Year
Year Year Year Ended Ended
Ended Ended Ended 10/31/13 10/31/12
10/31/16 10/31/15 10/31/14 (Consolidated) (Consolidated)
---------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 8.62 $ 9.76 $ 10.10 $ 10.10 $ 9.80
---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.48(a) $ 0.51(a) $ 0.59 $ 0.63 $ 0.69
Net realized and unrealized gain (loss) on investments 0.04(b) (1.17) (0.34) (0.01) 0.35
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.52 $ (0.66) $ 0.25 $ 0.62 $ 1.04
---------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.41) $ (0.40) $ (0.56) $ (0.62) $ (0.74)
Tax return of capital (0.04) (0.08) (0.03) -- --
---------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.45) $ (0.48) $ (0.59) $ (0.62) $ (0.74)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.07 $ (1.14) $ (0.34) $ -- $ 0.30
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.69 $ 8.62 $ 9.76 $ 10.10 $ 10.10
=================================================================================================================================
Total return* 6.40%(c) (6.96)% 2.43% 6.23% 11.17%
Ratio of net expenses to average net assets 1.90% 1.87% 1.83% 1.81% 1.78%
Ratio of net investment income (loss) to average net assets 5.79% 5.61% 5.91% 6.26% 7.08%
Portfolio turnover rate 40% 32% 32% 33% 33%
Net assets, end of period (in thousands) $183,542 $237,163 $354,162 $ 420,932 $468,920
=================================================================================================================================
* 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.
(b) The amount shown for a share outstanding does not correspond with the
aggregate loss on investments for the period due to the timing of sales and
repurchases of shares in relation to fluctuating market values of the
investments of the Fund.
(c) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended October 31, 2016, the total return would
have been 6.28%.
The accompanying notes are an integral part of these financial statements.
50 Pioneer Global High Yield Fund | Annual Report | 10/31/16
---------------------------------------------------------------------------------------------------------------------------------
Year Year
Year Year Year Ended Ended
Ended Ended Ended 10/31/13 10/31/12
10/31/16 10/31/15 10/31/14 (Consolidated) (Consolidated)
---------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 8.49 $ 9.62 $ 9.96 $ 9.96 $ 9.66
---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.57(a) $ 0.60(a) $ 0.67 $ 0.72 $ 0.76
Net realized and unrealized gain (loss) on investments 0.01(b) (1.17) (0.33) (0.01) 0.37
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.58 $ (0.57) $ 0.34 $ 0.71 $ 1.13
---------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.48) $ (0.48) $ (0.65) $ (0.71) $ (0.83)
Tax return of capital (0.04) (0.08) (0.03) -- --
---------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.52) $ (0.56) $ (0.68) $ (0.71) $ (0.83)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.06 $ (1.13) $ (0.34) $ -- $ 0.30
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.55 $ 8.49 $ 9.62 $ 9.96 $ 9.96
=================================================================================================================================
Total return* 7.34% (6.08)% 3.40% 7.27% 12.35%
Ratio of net expenses to average net assets 0.90% 0.87% 0.84% 0.82% 0.80%
Ratio of net investment income (loss) to average net assets 6.93% 6.60% 6.88% 7.24% 8.03%
Portfolio turnover rate 40% 32% 32% 33% 33%
Net assets, end of period (in thousands) $280,262 $485,344 $682,911 $ 780,656 $945,946
=================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) The amount shown for a share outstanding does not correspond with the
aggregate loss on investments for the period due to the timing of sales and
repurchases of shares in relation to fluctuating market values of the
investments of the Fund.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 51
Notes to Financial Statements | 10/31/16
1. Organization and Significant Accounting Policies
Pioneer Global High Yield Fund (the Fund) is one of two 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 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 (U.S. GAAP) that require the management
of the Fund to 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 Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements:
52 Pioneer Global High Yield Fund | Annual Report | 10/31/16
A. Security Valuation
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 by using 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, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Loan interests 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 third party 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 or catastrophe bonds are valued at the bid price
obtained from an independent third party pricing service. Other insurance
linked securities (including sidecars, collateralized reinsurance and
industry loss warranties) 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.
The value of foreign securities is translated into U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party pricing
source. Trading in non-U.S. equity 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. The Fund may use a fair value model
developed by an independent pricing service to value non-U.S. equity
securities.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 53
Equity securities that have traded on an exchange are valued by using 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 or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealers association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate and the forward points on a daily basis, in each case
provided by a third party pricing service. Contracts whose forward
settlement date falls between two quoted days are valued by interpolation.
Securities or loan interests for which independent pricing services or
broker dealers are unable to supply prices or for which market prices
and/or quotations are not readily available or are considered to be
unreliable are valued by a fair valuation team comprised of certain
personnel of Pioneer Investment Management, Inc. (PIM), the Fund's
investment adviser and a wholly owned indirect subsidiary of UniCredit
S.p.A. (UniCredit), pursuant to procedures adopted by the Fund's Board of
Trustees. PIM's fair valuation team uses fair value methods approved by the
Valuation Committee of the Board of Trustees. PIM's fair valuation team is
responsible for monitoring developments that may impact fair valued
securities and for discussing and assessing fair values on an ongoing
basis, and at least quarterly, with the Valuation Committee of the Board of
Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
54 Pioneer Global High Yield Fund | Annual Report | 10/31/16
At October 31, 2016, eight securities were valued using fair value methods
(in addition to securities valued using prices supplied by independent
pricing services, broker-dealers or using a third party insurance industry
pricing model) representing 0.7% 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.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the statement of operations from
the effects of changes in the market prices of those securities but are
included with the net realized and unrealized gain or loss on investments.
D. 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
Pioneer Global High Yield Fund | Annual Report | 10/31/16 55
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 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, 2016, 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. GAAP. 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, 2016, the Fund
reclassified $4,530,714 to increase distributions in excess of net
investment income, $9,249,181 to decrease accumulated net realized loss on
investments, swap contracts and foreign currency transactions and
$4,718,467 to decrease paid-in capital to reflect permanent book/tax
differences. These adjustments have no impact on net assets or the results
of operations.
At October 31, 2016, the Fund was permitted to carry forward indefinitely
$25,403,601 of short-term losses and $225,432,872 of long-term losses under
the Regulated Investment Company Modernization Act of 2010 without
limitation. Additionally, at October 31, 2016, the Fund had a net capital
loss carryforward of $231,129,895 of which the following amounts will
expire between 2017 and 2018 if not utilized: $204,858,985 in 2017 and
$26,270,910 in 2018.
56 Pioneer Global High Yield Fund | Annual Report | 10/31/16
The tax character of distributions paid during the years ended October 31,
2016 and October 31, 2015, were as follows:
---------------------------------------------------------------------
2016 2015
---------------------------------------------------------------------
Distributions paid from:
Ordinary income $42,245,792 $59,514,496
Tax return of capital 3,459,303 10,222,285
---------------------------------------------------------------------
Total $45,705,095 $69,736,781
=====================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2016:
---------------------------------------------------------------------
2016
---------------------------------------------------------------------
Distributable earnings:
Capital loss carryforward $(481,966,368)
Current year dividend payable (360,623)
Net unrealized depreciation (49,923,699)
---------------------------------------------------------------------
Total $(532,250,690)
=====================================================================
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 and swaps, adjustments
relating to catastrophe bonds, swaps, 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, earned $22,408 in
underwriting commissions on the sale of Class A shares during the year
ended October 31, 2016.
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).
Pioneer Global High Yield Fund | Annual Report | 10/31/16 57
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)
The Fund invests in event-linked bonds. Event-linked bonds are floating
rate debt obligations for which the return of principal and the payment of
interest are contingent on the non-occurrence of a pre-defined "trigger"
event, such as a hurricane or an earthquake of a specific magnitude. The
trigger event's magnitude may be based on losses to a company or industry,
industry indexes or readings of scientific instruments, or may be based on
specified actual losses. If a trigger event, as defined within the terms of
an event-linked bond occurs, the Fund may lose a portion or all of its
accrued interest and/or principal invested in such event-linked bond. The
Fund is entitled to receive principal and interest payments so long as no
trigger event occurs of the description and magnitude specified by the
instrument. In addition to the specified trigger events, event-linked bonds
may expose the Fund to other risks, including but not limited to issuer
(credit) default, adverse regulatory or jurisdictional interpretations and
adverse tax consequences.
The Fund's investments in ILS may include special purpose vehicles ("SPVs")
or similar instruments structured to comprise a portion of a reinsurer's
catastrophe-oriented business, known as quota share instruments (sometimes
referred to as reinsurance sidecars), or to provide reinsurance relating to
specific risks to insurance or reinsurance companies through a
collateralized instrument, known as collateralized reinsurance. Structured
reinsurance investments also may include industry loss warranties ("ILWs").
A traditional ILW takes the form of a bilateral reinsurance contract, but
there are also products that take the form of derivatives, collateralized
structures, or exchange traded instruments.
Structured reinsurance investments, including quota share instruments,
collateralized reinsurance investments and ILWs, are subject to the same
risks as event-linked bonds. In addition, where the instruments are based
on the performance 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
58 Pioneer Global High Yield Fund | Annual Report | 10/31/16
risk profile of the Fund's structured reinsurance investments and therefore
the Fund's assets are placed at greater risk of loss than if PIM had more
complete information.
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
The value of securities held by the Fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
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.
Interest rates in the U.S. recently have been historically low, so the Fund
faces a heightened risk that interest rates may rise. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions from
the Fund.
Certain securities in which the Fund invests, including floating rate
loans, once sold, may not settle for an extended period (for example,
several weeks or even longer). The Fund will not receive its sale proceeds
until that time, which may constrain the Fund's ability to meet its
obligations (including obligations to redeeming shareholders).
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.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 59
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. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may sell
or buy credit default swap contracts to seek to increase the Fund's income,
or to attempt to hedge the risk of default on portfolio securities. A
credit default swap index is used to hedge risk or take a position on a
basket of credit entities or indices. As a seller of protection, the Fund
would be required to pay the notional (or other agreed-upon) value of the
referenced debt obligation to the counterparty in the event of a default by
a U.S. or foreign corporate issuer of a debt obligation, which would likely
result in a loss to the Fund. In return, the Fund would receive from the
counterparty a periodic stream of payments during the term of the contract
provided that no event of default occurred. The maximum exposure of loss to
the seller would be the notional value of the credit default swaps
outstanding. If no default occurs, the Fund would keep the stream of
payments and would have no payment obligation. The Fund may also buy credit
default swap contracts in order to hedge against the risk of default of
debt securities, in which case the Fund would function as the counterparty
referenced above.
When the Fund enters into a credit default swap contract, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the right to receive a contingent payment. An upfront payment
made by the Fund, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made as a result of a credit
event or upon termination of the contract are recognized, net of the
appropriate amount of the upfront payment, as realized gains or losses in
the Statement of Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt
60 Pioneer Global High Yield Fund | Annual Report | 10/31/16
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.
The amount of cash deposited with a broker as collateral at October 31,
2016 was $465,000 and is recorded within "Restricted Cash" on the Statement
of Assets and Liabilities.
Open credit default swap contracts at October 31, 2016, are listed in the
Schedule of Investments. The average value of swap contracts open during
the year ended October 31, 2016 was $134,130.
2. Management Agreement
PIM 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, 2016, the effective management fee (excluding waivers and/or
assumption of expenses) was equivalent to 0.68% 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
$51,814 in management fees, administrative costs and certain other
reimbursements payable to PIM at October 31, 2016.
3. Transfer Agent
Boston Financial Data Services serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 61
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings, outgoing phone calls and omnibus
relationship contracts. For the year ended October 31, 2016, such out-of-pocket
expenses by class of shares were as follows:
--------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------
Class A $296,000
Class C 212,301
Class Y 395,170
--------------------------------------------------------------------------
Total $903,471
==========================================================================
4. Distribution Plan
The Fund has adopted a distribution plan (the 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 $25,634 in
distribution fees payable to PFD at October 31, 2016.
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, 2016, CDSCs in the amount
of $5,353 were paid to PFD.
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 February 9, 2016, was in the amount of $240
million. As of February 10, 2016, the facility is in the amount of $220 million.
Under such
62 Pioneer Global High Yield Fund | Annual Report | 10/31/16
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, 2016, the average daily amount of
borrowings outstanding during the period was $2,666,667. The related weighted
average annualized interest rate for the period was 1.23%, and the total
interest expense on such borrowings was $1,763, which is included in interest
expense, located on the Statement of Operations. As of October 31, 2016, there
were no borrowings outstanding.
6. Forward Foreign Currency Contracts
During the year ended October 31, 2016, the Fund had entered into various
forward foreign currency contracts that obligate the Fund to deliver or take
delivery of currencies at specified future maturity dates. Alternatively, prior
to the settlement date of a forward foreign currency contract, the Fund may
close out such contract by entering into an offsetting contract. The average
value of contracts open during the year ended October 31, 2016 was
$(13,786,089).
Open forward foreign currency contracts at October 31, 2016 were as follows:
-----------------------------------------------------------------------------------------------------------
Currency Currency In Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
-----------------------------------------------------------------------------------------------------------
JPY (99,185,105) USD 975,051 Goldman Sachs 12/8/16 $ 28,271
International
EUR (2,783,127) USD 3,135,173 Citibank NA 11/30/16 79,780
New York NY
GBP (4,645,000) USD 5,923,834 Brown Brothers 12/29/16 229,568
Harriman & Co.
USD (5,029,292) IDR 66,462,093,912 Goldman Sachs 1/17/17 4,952
International
-----------------------------------------------------------------------------------------------------------
Total $ 342,571
===========================================================================================================
-----------------------------------------------------------------------------------------------------------
Currency Currency In Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
-----------------------------------------------------------------------------------------------------------
EUR (988,803) USD 1,084,522 State Street Bank 1/4/17 $ (3,151)
& Trust Co.
EUR (4,338,482) USD 4,735,453 Brown Brothers 12/29/16 (35,355)
Harriman & Co.
-----------------------------------------------------------------------------------------------------------
Total $ (38,506)
===========================================================================================================
GBP British Pounds
EUR Euro
IDR Indonesian Rupiah
JPY Japanese Yen
Pioneer Global High Yield Fund | Annual Report | 10/31/16 63
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 Over the Counter (OTC) derivatives and typically contains, among
other things, close-out and set-off provisions which apply upon the occurrence
of event of a default and/or termination event as defined under the relevant
ISDA Master Agreement. The ISDA Master Agreement may also give a party the right
to terminate all transactions traded under such agreement if, among other
things, there is deterioration in the credit quality of the other party. Upon an
event of default or a termination of the ISDA Master Agreement, the
non-defaulting party has the right to close out all transactions under such
agreement and to net amounts owed under each transaction to determine one net
amount payable by one party to the other. The right to close out and net
payments across all transactions under the ISDA Master Agreement could result in
a reduction of the Fund's credit risk to its counterparty equal to any amounts
payable by the Fund under the applicable transactions, if any. However, the
Fund's right to setoff may be restricted or prohibited by the bankruptcy or
insolvency laws of the particular jurisdiction to which each specific ISDA of
each 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 "Restricted
cash." 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 not been offset on the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Fund
as of October, 31 2016.
64 Pioneer Global High Yield Fund | Annual Report | 10/31/16
------------------------------------------------------------------------------------------------------
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)
------------------------------------------------------------------------------------------------------
State Street $ -- $ -- $ -- $ -- $ --
Bank &
Trust Co.
Goldman 33,223 -- -- -- 33,223
Sachs
International
Citibank NA 79,780 -- -- -- 79,780
New York NY
Brown Brothers 229,568 (35,355) -- -- 194,213
Harriman & Co.
------------------------------------------------------------------------------------------------------
Total $ 342,571 $ (35,355) $ -- $ -- $ 307,216
======================================================================================================
------------------------------------------------------------------------------------------------------
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)
------------------------------------------------------------------------------------------------------
State Street $ 3,151 $ -- $ $ $ 3,151
Bank &
Trust Co.
Goldman -- -- -- -- --
Sachs
International
Citibank NA -- -- -- -- --
New York NY
Brown Brothers
Harriman & Co. 35,355 (35,355) -- -- --
------------------------------------------------------------------------------------------------------
Total $ 38,506 $ (35,355) $ -- $ -- $ 3,151
======================================================================================================
(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.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 65
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,
2016 was as follows:
-------------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Assets and Liabilities Rate Risk Risk Rate Risk Risk Risk
-------------------------------------------------------------------------------------
Assets
Unrealized appreciation
of forward foreign
currency contracts $ -- $ -- $ 342,571 $ -- $ --
Unrealized appreciation of
centrally cleared
swap contracts -- 292,380 -- -- --
-------------------------------------------------------------------------------------
Total Value $ -- $ 292,380 $ 342,571 $ -- $ --
=====================================================================================
Liabilities
Unrealized depreciation
of forward foreign
currency contracts $ -- $ -- $ 38,506 $ -- $ --
-------------------------------------------------------------------------------------
Total Value $ -- $ -- $ 38,506 $ -- $ --
=====================================================================================
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, 2016 was as follows:
66 Pioneer Global High Yield Fund | Annual Report | 10/31/16
---------------------------------------------------------------------------------------------
Foreign
Statement Interest Credit Exchange Equity Commodity
of Operations Rate Risk Risk Rate Risk Risk Risk
---------------------------------------------------------------------------------------------
Net realized gain (loss) on
Swap contracts $ -- $ 120,207 $ -- $ -- $ --
Forward foreign
currency contracts* -- -- 1,372,142 -- --
--------------------------------------------------------------------------------------------
Total Value $ -- $ 120,207 $ 1,372,142 $ -- $ --
============================================================================================
Change in net unrealized
appreciation
(depreciation) on
Swap contracts $ -- $ 292,380 $ -- $ -- $ --
Forward foreign
currency contracts* -- -- 47,401 -- --
-------------------------------------------------------------------------------------------
Total Value $ -- $ 292,380 $ 47,401 $ -- $ --
============================================================================================
* Included in the amount shown on the Statement of Operations as foward
foreign currency contracts and other assets and liabilities denominated in
foreign currencies.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 67
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VII and the 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 (the "Fund") (one
of the funds constituting Pioneer Series Trust VII), as of October 31, 2016 and
the related statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the three 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, and 2012 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, 2016, by correspondence with the
custodian, brokers and agent banks; where replies were not received from brokers
or agent banks, we performed other auditing procedures. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Global High Yield Fund as of October 31, 2016, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the three 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, 2016
68 Pioneer Global High Yield Fund | Annual Report | 10/31/16
Additional Information (unaudited)
The percentages of the Fund's ordinary income distributions that are exempt from
nonresident alien (NRA) tax withholding resulting from qualified interest income
was 61.63%.
Pioneer Investment Management, Inc. (the "Adviser"), the Fund's investment
adviser, is currently an indirect, wholly owned subsidiary of UniCredit S.p.A.
("UniCredit"). On December 12, 2016, UniCredit announced that it has entered
into a binding agreement for the sale of its Pioneer Investments business, which
includes the Adviser, to Amundi (the "Transaction"). Amundi is headquartered in
Paris, France, and, as of September 30, 2016, had more than $1.1 trillion in
assets under management worldwide. The closing of the Transaction is expected to
happen in 2017, subject to certain regulatory and antitrust approvals, and other
conditions.
Under the Investment Company Act of 1940, the closing of the Transaction will
cause the Fund's current investment advisory agreement with the Adviser to
terminate. Accordingly, the Fund's Board of Trustees will be asked to approve a
new investment advisory agreement for the Fund. If approved by the Board, the
Fund's new investment advisory agreement will be submitted to the shareholders
of the Fund for their approval.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 69
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 2016 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 2016 and May
2016. 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 2016, 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 May 2016,
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 July and
September 2016.
At a meeting held on September 13, 2016, 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.
70 Pioneer Global High Yield Fund | Annual Report | 10/31/16
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, including the extent to which
its peer group of funds are invested in U.S. high yield securities. The Trustees
also noted the steps taken by PIM to address the Fund's performance, including
enhancing the investment process used for the Fund. 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.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 71
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 fourth quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees considered that the Fund's management fee was approximately four basis
points higher than the median management fee paid by other funds in its
Morningstar peer group, and less than two basis points higher than the
management fee at the bottom of the third quintile. 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 fifth quintile
relative to its Morningstar peer group and in the fifth 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 fifth quintile relative to its Morningstar
peer group and in the fifth 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 and that the results
of the most recent such review were considered in the consideration of the
Fund's expense ratio.
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
72 Pioneer Global High Yield Fund | Annual Report | 10/31/16
noted that, in some instances, the fee rates for those clients were lower than
the management fee for the Fund and considered that, under the investment
advisory agreement with the Fund, PIM performs additional services for the Fund
that it does not provide to those other clients or services that are broader in
scope, including oversight of the Fund's other service providers and activities
related to compliance and the extensive regulatory and tax regimes to which the
Fund is subject. The Trustees also considered the different entrepreneurial
risks associated with PIM's management of the Fund and Pioneer's management of
the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results, including the profit margins, 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.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 73
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
74 Pioneer Global High Yield Fund | Annual Report | 10/31/16
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 45 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 75
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 (66) 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, (investor communications
is elected or Inc. (technology products for securities and securities processing
earlier retirement lending industry); and Senior Executive provider for financial
or removal. Vice President, The Bank of New York services industry) (2009 -
(financial and securities services) (1986 - present); Director,
2004) Quadriserv, Inc. (2005 -
2013); and Commissioner,
New Jersey State Civil
Service Commission (2011 -
present)
--------------------------------------------------------------------------------------------------------------------------------
David R. Bock (72) Trustee since 2005. Managing Partner, Federal City Capital Director of New York
Trustee Serves until a Advisors (corporate advisory services Mortgage Trust
successor trustee company) (1997 - 2004 and 2008 - present); (publicly-traded mortgage
is elected or Interim Chief Executive Officer, Oxford REIT) (2004 - 2009, 2012 -
earlier retirement Analytica, Inc. (privately-held research present); Director of The
or removal. and consulting company) (2010); Executive Swiss Helvetia Fund, Inc.
Vice President and Chief Financial Officer, (closed-end fund) (2010 -
I-trax, Inc. (publicly traded health care present); Director of
services company) (2004 - 2007); and Oxford Analytica, Inc.
Executive Vice President and Chief (2008 - present); and
Financial Officer, Pedestal Inc. Director of Enterprise
(internet-based mortgage trading company) Community Investment, Inc.
(2000 - 2002); Private consultant (privately-held affordable
(1995-1997), Managing Director, Lehman housing finance company)
Brothers (investment banking firm) (1985 - 2010)
(1992-1995); and Executive, The World Bank
(1979-1992)
--------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (72) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon
Trustee Serves until a Economy, Harvard University (1972 - Institutional Funds
successor trustee present) Investment Trust and
is elected or Mellon Institutional Funds
earlier retirement Master Portfolio (oversaw
or removal. 17 portfolios in fund
complex) (1989-2008)
--------------------------------------------------------------------------------------------------------------------------------
76 Pioneer Global High Yield Fund | Annual Report | 10/31/16
--------------------------------------------------------------------------------------------------------------------------------
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 (69) Trustee since 2001. Founding Director, Vice President and None
Trustee Serves until a Corporate Secretary, The Winthrop Group,
successor trustee Inc. (consulting firm) (1982 - present);
is elected or Desautels Faculty of Management, McGill
earlier retirement University (1999 - present); and Manager of
or removal. Research Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
--------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (68) Trustee since 2001. President and Chief Executive Officer, Director of New America High
Trustee Serves until a Newbury Piret Company (investment banking Income Fund, Inc.
successor trustee firm) (1981 - present) (closed-end investment
is elected or company) (2004 - present);
earlier retirement and Member, Board of
or removal. Governors, Investment
Company Institute (2000 -
2006)
--------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (69) Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a (2012 - present); Executive Vice President,
successor trustee BNY Mellon (financial and investment company
is elected or services) (1969 - 2012); Director, BNY
earlier retirement International Financing Corp. (financial
or removal. services) (2002 - 2012); and Director,
Mellon Overseas Investment Corp. (financial
services) (2009 - 2012)
--------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/16 77
Interested Trustee
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Principal Occupation Other Directorships
Position Held With the Fund Length of Service Held by Trustee
---------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (58)* Trustee since 2014. Director and Executive Vice President None
Trustee Serves until a (since 2008) and Chief Investment Officer,
successor trustee U.S. (since 2010) of PIM-USA; Executive
is elected or Vice President of Pioneer (since 2008);
earlier retirement Executive Vice President of Pioneer
or removal. Institutional Asset Management, Inc.
(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.
78 Pioneer Global High Yield Fund | Annual Report | 10/31/16
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 Monchak (60)** Advisory Trustee Chief Investment Officer, 1199 SEIU Funds Trustee of Pioneer
Advisory Trustee since 2014. (healthcare workers union pension funds) closed-end investment
(2001 - present); Vice President - companies (5 portfolios)
International Investments Group, American (Sept. 2015 - present)
International Group, Inc. (insurance
company) (1993 - 2001); Vice President
Corporate Finance and Treasury Group,
Citibank, N.A.(1980 - 1986 and 1990 -
1993); Vice President - Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer of
debt securities) (1988 - 1990); Mortgage
Strategies Group, Shearson Lehman Hutton,
Inc. (investment bank) (1987 - 1988); and
Mortgage Strategies Group, Drexel Burnham
Lambert, Ltd. (investment bank) (1986 -
1987)
---------------------------------------------------------------------------------------------------------------------------------
** Ms. Monchak is a non-voting advisory trustee.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 79
Fund Officers
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
---------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (54) Since 2014. Chair, Director, CEO and President of Trustee of Pioneer
President and Serves at the Pioneer Investment Management-USA (since closed-end investment
Chief Executive Officer discretion of the September 2014); Chair, Director, CEO and companies (5 portfolios)
Board. President of Pioneer Investment Management, (Sept. 2015 - present)
Inc. (since September 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 (51) Since 2003. Vice President and Associate General None
Secretary and Chief Legal Serves at the Counsel of Pioneer since January 2008;
Officer discretion of the Secretary and Chief Legal Officer of all of
Board. 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 (55) Since 2010. Serves Fund Governance Director of Pioneer since None
Assistant Secretary at the discretion December 2006 and Assistant Secretary of
of the Board. all the 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 (53) Since 2010. Senior Counsel of Pioneer since May 2013 None
Assistant Secretary Serves at the and Assistant Secretary of all the Pioneer
discretion of the Funds since June 2010; and Counsel of
Board. Pioneer from June 2007 to May 2013
---------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (56) Since 2008. Vice President - Fund Treasury of Pioneer; None
Treasurer and Serves at the Treasurer of all of the Pioneer Funds since
Chief Financial and discretion of the March 2008; Deputy Treasurer of Pioneer
Accounting Officer Board. from March 2004 to February 2008; and
Assistant Treasurer of all of the Pioneer
Funds from March 2004 to February 2008
---------------------------------------------------------------------------------------------------------------------------------
80 Pioneer Global High Yield Fund | Annual Report | 10/31/16
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
---------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (51) Since 2001. Director - Fund Treasury of Pioneer; and None
Assistant Treasurer Serves at the Assistant Treasurer of all of the Pioneer
discretion of the Funds
Board.
---------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (58) Since 2002. Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer Serves at the Pioneer; and Assistant Treasurer of all of
discretion of the the Pioneer Funds
Board.
---------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (36) Since 2009. Fund Administration Manager - Fund Treasury None
Assistant Treasurer Serves at the of Pioneer since November 2008; Assistant
discretion of the Treasurer of all of the Pioneer Funds since
Board. January 2009; and Client Service Manager -
Institutional Investor Services at State
Street Bank from March 2003 to March 2007
---------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (64) Since 2010. Chief Compliance Officer of Pioneer and of None
Chief Compliance Officer Serves at the all the Pioneer Funds since March 2010;
discretion of the Chief Compliance Officer of Pioneer
Board. 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 (45) Since 2006. Director - Transfer Agency Compliance of None
Anti-Money Laundering Serves at the Pioneer and Anti-Money Laundering
Officer discretion of Officer of all the Pioneer Funds since 2006
the Board.
---------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/16 81
This page for your notes.
82 Pioneer Global High Yield Fund | Annual Report | 10/31/16
This page for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/16 83
This page for your notes.
84 Pioneer Global High Yield Fund | Annual Report | 10/31/16
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) 2016 Pioneer Investments 19440-10-1216
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 $107,389
payable to Deloitte & Touche LLP for the year ended
October 31, 2016 and $101,607 for the year ended October 31, 2015.
(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 2016 or 2015.
(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 $17,556
payable to Deloitte & Touche LLP for the year ended
October 31, 2016 and $17,500 for the year ended October 31, 2015.
(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 2016 or 2015.
(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 2016 and 2015, 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 $17,556
payable to Deloitte & Touche LLP for the year ended
October 31, 2016 and $17,500 for the year ended October 31, 2015.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust VII
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 29, 2016
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 29, 2016
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 29, 2016
* Print the name and title of each signing officer under his or her signature.