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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 811-21654
Pioneer Floating Rate Trust
(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: November 30
Date of reporting period: December 1, 2015 through November 30, 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 Floating
Rate Trust
--------------------------------------------------------------------------------
Annual Report | November 30, 2016
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Ticker Symbol: PHD
[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
Schedule of Investments 13
Financial Statements 43
Financial Highlights 47
Notes to Financial Statements 49
Report of Independent Registered Public Accounting Firm 63
Approval of Investment Advisory Agreement 65
Trustees, Officers and Service Providers 69
Pioneer Floating Rate Trust | Annual Report | 11/30/16 1
President's Letter
Dear Shareowner,
While investors were greeted with a challenging market environment for the first
several weeks of 2016, the U.S. market generated modest single-digit returns for
both stocks and bonds through September 30, 2016 (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 may 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 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 Floating Rate Trust | Annual Report | 11/30/16
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 Floating Rate Trust | Annual Report | 11/30/16 3
Portfolio Management Discussion | 11/30/16
Floating-rate bank loans staged a brisk rally over the final nine months of the
12-month period ended November 30, 2016, as investors grew more confident in the
U.S. economic outlook. In the following interview, Jonathan Sharkey discusses
the factors that affected the performance of Pioneer Floating Rate Trust during
the 12-month period. Mr. Sharkey, a senior vice president and a portfolio
manager at Pioneer, is responsible for the day-to-day management of the Trust.
Q How did the Trust perform during the 12-month period ended November 30,
2016?
A Pioneer Floating Rate Trust returned 8.31% at net asset value and 15.92% at
market price during the 12-month period ended November 30, 2016, while the
Trust's linked benchmark returned 8.36%*. The Trust's linked benchmark
combines returns of the Trust's current benchmark, the Standard &
Poor's/Loan Syndications & Trading Association Leveraged Loan Index, and
the Trust's former benchmark, the Bloomberg Barclays U.S. High Yield Loans
Index. Unlike the Trust, the linked benchmark does not use leverage. While
the use of leverage increases investment opportunity, it also increases
investment risk. During the same 12-month period, the average return (at
market price) of the 22 closed end funds in Lipper's Loan Participation
Funds category (which may or may not be leveraged), was 18.97%, and the
average return (at market price) of the 27 closed end funds in
Morningstar's Bank Loan Funds category (which may or may not be leveraged),
was 19.20%.
The shares of the Trust were selling at a 5.76% discount to net asset value
on November 30, 2016.
The Trust's standard, 30-day SEC yield was 4.12% on November 30, 2016**.
Q How would you describe the investment environment for bank loans during the
12-month period ended November 30, 2016?
A In the early part of the 12-month period, market sentiment was relatively
pessimistic with regard to the health of both the domestic and global
economies. As the period progressed, however, investors grew increasingly
optimistic that the economic outlook was improving. As the economic
* The Bloomberg Barclays U.S. High Yield Loans Index (the Bloomberg Barclays
Index) was the Trust's benchmark from inception through 9/30/16, when the
Bloomberg Barclays Index ceased. As of 10/1/16, the Trust's benchmark is
the S&P/LSTA Leveraged Loan Index (the S&P/LSTA Index). Both the Bloomberg
Barclays Index and the S&P/LSTA Index provide broad and comprehensive total
return metrics of the U.S. universe of syndicated term loans.
** The 30-day SEC yield is a standardized formula that is based on the
hypothetical annualized earning power (investment income only) of the
Trust's portfolio securities during the period indicated.
4 Pioneer Floating Rate Trust | Annual Report | 11/30/16
outlook brightened, floating-rate bank loans and other credit-sensitive
investments rallied, overcoming generally negative returns in the early
weeks of the period to deliver healthy performance over the full 12 months.
During the rally, bank loans with lower credit quality ratings and higher
yields generally outperformed higher-quality instruments, a scenario
consistent with results of other sectors of the fixed-income market.
During the early weeks of the period, which began on December 1, 2015, bank
loans and other credit-sensitive fixed-income sectors produced negative
results as investors worried about weakening oil and commodity prices, data
pointing to stubbornly sluggish economic growth in the United States, and
evidence of softening economic activity overseas. That all changed in early
February 2016, however, when the prices for oil and other commodities
bottomed and then began strengthening, the value of the U.S. dollar peaked,
and new evidence emerged of gathering economic strength in the United
States. The resulting rally in higher-yielding, more credit-sensitive
investments, including bank loans, continued nearly unabated for the next
eight months. A two-day sell-off in late June caused by the unexpected news
that British citizens had voted to exit ("Brexit") the European Union
briefly interrupted the hot streak, but the market quickly regained its
footing even before the end of the second calendar quarter on June 30.
The rally in credit-sensitive securities did finally begin to lose some
momentum in November 2016, the final month of the period, as the market
began to assess the possible economic fallout from the U.S. presidential
election, which, like Brexit five months earlier, produced a surprising
result with Donald Trump's victory. Bank loans still produced positive
performance for the month of November, however, and generated a 7.76%
return over the full 12-month period. Meanwhile, investor confidence
received a boost from the U.S. gross domestic product (GDP) report for the
third quarter, which showed a significant upturn from the second quarter's
GDP data. In the third quarter, U.S. GDP grew at a rate exceeding 3%, more
than double the 1.4% rate in the second quarter. This announcement,
combined with evidence of continued gains in domestic employment and
improvements in wage growth, encouraged market confidence that the U.S.
Federal Reserve System (the Fed) - in line with earlier expectations -
would raise short-term interest rates in December 2016, approximately one
year after beginning its tightening cycle with a small hike in the Federal
funds rate in December 2015.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 5
Q Which of your investment decisions had the biggest effects on the Trust's
benchmark-relative performance during the 12-month period ended November
30, 2016?
A The Trust participated in the rally that began in February 2016, although
benchmark-relative performance was negatively affected by the generally
higher-quality composition of the holdings in the Trust's portfolio as
compared with the components of the S&P/LSTA Index, as lower-quality loans
outperformed higher-quality loans during the period. However,
benchmark-relative performance, inclusive of leverage, was solid during the
period. The use of leverage, or borrowed funds, through a credit facility
increases risk and has the effect of amplifying the size of market swings
on the portfolio. Just as the use of leverage can exaggerate negative
results during market downturns - as was the case during the first three
months of the Trust's fiscal year when prices of higher-yielding securities
declined - leverage can also enhance gains when prices of high-yield
securities rise, as they did over the final nine months of the period.
In addition, positive security selection results and the portfolio's
moderate underweight in business equipment and services loans helped the
Trust's benchmark-relative performance during the period, as did a moderate
underweighting of loans to retailers. However, the portfolio's moderate
underweight in loans to the oil and gas industry, during a period that saw
the group outperform due to rallying oil prices, detracted from the Trust's
benchmark-relative results.
Security selection results within the portfolio's holdings of oil and gas
industry loans also detracted from the Trust's benchmark-relative
performance, as did a moderate underweight to loans in the information
technology (IT) sector, though security selection within IT made a positive
contribution to the Trust's benchmark-relative returns.
With regard to individual investments, portfolio holdings that contributed
positively to the Trust's benchmark-relative performance during the period
included loans to Jonah Energy, an independent natural gas producer,
Skillsoft, a software company specializing in programs for corporate human
resources and training applications, and Fortesque, a mining company. In
addition, holdings of loans to Affinion, a marketing services firm
specializing in programs targeted to members of specific affinity groups,
and to Scientific Games International, a producer of gambling and lottery
equipment, aided the Trust's benchmark-relative returns during the period.
Individual portfolio holdings that detracted from the Trust's benchmark-
relative results during the period included loans to Dixie Electric, Targus
Group, Medical Card Systems, CSM Bakery, and Community Health. Dixie
provides electrical services to oil field operators. Targus is a producer
of
6 Pioneer Floating Rate Trust | Annual Report | 11/30/16
protective cases and other accessories for electronic devices. Medical Card
Systems is a health insurance company operating in Puerto Rico. CSM
produces ingredients for the baking industry, and Community Health is a
hospital-operating firm.
Q How did the level of leverage in the Trust change over the 12-month period
ended November 30, 2016?
A The Trust employs leverage through a credit agreement. (See Note 7 to the
financial statements).
At the end of the 12-month period on November 30, 2016, 31.7% of the
Trust's total managed assets were financed by leverage (or borrowed funds),
compared with 33.1% of the Trust's total managed assets financed by
leverage at the start of the period on December 1, 2015. During the
12-month period, the Trust reduced borrowing from the credit facility by a
total of $7 million, to $143 million as of November 30, 2016. Due to a
decline in prices of bank loans in the first three months of the period, a
reduction in the overall borrowing on the credit line was necessary in
order to maintain the asset coverage requirements specified by the credit
agreement. The percentage of the Trust's managed assets financed by
leverage decreased during the period due to the reduction of borrowings.
Q Did the Trust invest in any derivative securities during the 12-month
period ended November 30, 2016? If so, did the investments have an effect
on performance?
A The Trust had a small exposure to Markit CDX (a high-yield, index-based
credit-default swap) during the 12-month period, as a means to give the
portfolio greater access to the high-yield market, while maintaining
liquidity. The investment did not have a material impact on the Trust's
performance.
Q What factors affected the Trust's distributions to shareholders during the
12-month period ended November 30, 2016?
A The Trust's distributions were stable during the period. Shareholders
should be aware, however, that several factors could affect future
distributions. As older loans with higher yields are called back to be
refinanced at lower rates, newer loans in the Trust's portfolio may pay
less current income to the Trust.
Potentially offsetting these influences is the prospect that short-term
interest rates will begin increasing due to tightening of monetary policy
by the Fed. If there are multiple rate increases by the Fed over the next
several
Pioneer Floating Rate Trust | Annual Report | 11/30/16 7
months, the income paid by floating-rate loans may also start increasing,
which could result in greater current income for the Trust, as rates could
exceed the LIBOR (London Interbank Offered Rate) floors in the portfolio.
Q What is your investment outlook?
A We think the prospects for investments in floating-rate bank loans are
good, especially in an expanding domestic economy, and with loan default
rates at well below long-term averages.
The recent announcement by the U.S. Labor Department that GDP growth
accelerated to greater than 3% in the third quarter of 2016 points to a
strengthening economy. Moreover, President-Elect Trump's policy proposals
during the campaign included his expressed desire to boost government
spending on infrastructure. If such spending occurs, that could stimulate
further economic growth and improve the prospects for credit-linked debt,
including bank loans.
In December 2016, right after the end of the 12-month period, the Fed
increased the Federal funds rate for the first time in a year and for just
the second time in eight years. Strong economic data reports lend support
to the likelihood that the Fed will follow-up its December 2016 rate hike
with further increases. We expect the Fed to enact possibly two more
interest-rate increases during 2017. Such a development could lead to
rising LIBOR rates, and that, in turn, could result in higher dividends*
paid by floating-rate loans.
Investors should be aware, however, that while the yield potential for bank
loans may improve, the potential for significant capital appreciation of
bank-loan investments appears limited, given that more than half the
floating-rate loans in the S&P/LSTA Index currently trade at prices above
par (face) value.
Please refer to the Schedule of Investments on pages 13-42 for a full listing of
Trust 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.
* Dividends are not guaranteed.
8 Pioneer Floating Rate Trust | Annual Report | 11/30/16
The Trust may invest in derivative securities, which may include futures and
options, for a variety of purposes, including: in an attempt to hedge against
adverse changes in the marketplace of securities, interest rates or currency
exchange rates; as a substitute for purchasing or selling securities; to attempt
to increase the Trust's return as a non-hedging strategy that may be considered
speculative; and to manage portfolio characteristics. Using derivatives can
increase fund losses and reduce opportunities for gains when the market prices,
interest rates or the derivative instruments themselves behave in a way not
anticipated by the Trust. These types of instruments can increase price
fluctuation.
The Trust is not limited in the percentage of its assets that may be invested in
floating-rate senior loans and other securities which may be less liquid or
illiquid. Illiquid securities may be difficult to sell at a price reflective of
their value at times when the Trust believes it is desirable to do so and the
market price of illiquid securities is generally more volatile than that of more
liquid securities. Illiquid securities may be difficult to value, and investment
of the Trust's assets in illiquid securities may restrict the Trust's ability to
take advantage of market opportunities.
The Trust employs leverage through a revolving credit facility. Leverage creates
significant risks, including the risk that the Trust's income or capital
appreciation from investments purchased with the proceeds of leverage will not
be sufficient to cover the cost of leverage, which may adversely affect the
return for shareowners.
The Trust is required to maintain certain regulatory and other asset coverage
requirements in connection with its use of leverage. In order to maintain
required asset coverage levels, the Trust may be required to reduce the amount
of leverage employed by the Trust, alter the composition of its investment
portfolio or take other actions at what might be inopportune times in the
market. Such actions could reduce the net earnings or returns to shareowners
over time, which is likely to result in a decrease in the market value of the
Trust's shares.
Investments in high-yield or lower-rated securities are subject to greater-than-
average risk. The Trust may invest in securities of issuers that are in default
or that are in bankruptcy.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates and economic and political
conditions.
These risks may increase share price volatility.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 9
Portfolio Summary | 11/30/16
Portfolio Diversification*
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Senior Secured Floating Rate Loan Interests 86.2%
Treasury Bills 4.3%
Corporate Bonds & Notes 3.6%
U.S. Government and Agency Obligations 3.3%
Collateralized Loan Obligations 1.2%
Exchange-Traded Funds 0.7%
Repurchase Agreement 0.3%
Certificate of Deposit 0.2%
Common Stocks 0.2%
* Includes investments in Insurance Linked Securities totaling 1.0% of total
investment portfolio.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)**
1. U.S. Treasury Notes, 0.681%, 4/30/18 1.99%
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2. Affinion Group, Inc., Tranche B Term Loan, 6.75%, 4/30/18 0.76
----------------------------------------------------------------------------------------------
3. Bright Horizons Family Solutions LLC, Incremental Effective Date Term
Loan, 3.5%, 11/7/23 0.75
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4. U.S. Treasury Notes, 0.763%, 1/31/18 0.75
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5. U.S. Treasury Notes, 0.659%, 10/31/17 0.72
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6. Scientific Games International, Inc., Initial Term B-2 Loan, 6.0%, 10/1/21 0.72
----------------------------------------------------------------------------------------------
7. Evergreen Skills Lux S.a.r.l., First Lien Initial Term Loan, 5.837%, 4/28/21 0.70
----------------------------------------------------------------------------------------------
8. McGraw-Hill Global Education Holdings LLC, First Lien Term B Loan, 5.0%, 5/4/22 0.66
----------------------------------------------------------------------------------------------
9. American Airlines, Inc., 2015 New Term Loan, 3.25%, 6/27/20 0.65
----------------------------------------------------------------------------------------------
10. Altice US Finance I Corp., 2016 Refinancing Term Loan, 3.882%, 1/15/25 0.56
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** 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 Floating Rate Trust | Annual Report | 11/30/16
Prices and Distributions | 11/30/16
Market Value per Share^
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--------------------------------------------------------------------------------
11/30/16 11/30/15
--------------------------------------------------------------------------------
Market Value $11.78 $ 10.83
--------------------------------------------------------------------------------
(Discount) (5.76)% (11.95)%
--------------------------------------------------------------------------------
Net Asset Value per Share^
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
11/30/16 11/30/15
--------------------------------------------------------------------------------
Net Asset Value $12.50 $12.30
--------------------------------------------------------------------------------
Distributions per Share: 12/1/15-11/30/16
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
$0.72 $ -- $ --
--------------------------------------------------------------------------------
Yields
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
11/30/16 11/30/15
--------------------------------------------------------------------------------
30-day SEC Yield 4.12% 5.39%
--------------------------------------------------------------------------------
The data shown above represents past performance, which is no guarantee of
future results.
^ Net asset value and market value are published in Barron's on Saturday, The
Wall Street Journal on Monday and The New York Times on Monday and
Saturday. Net asset value and market value are published daily on the
Trust's website at us.pioneerinvestments.com.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 11
Performance Update | 11/30/16
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in market value, including
reinvestment of dividends and distributions, of a $10,000 investment made in
shares of Pioneer Floating Rate Trust during the periods shown, compared with
the value of the Bloomberg Barclays U.S. High Yield Loans Index, an unmanaged
index which measures the performance of high-yield loans, and the S&P/LSTA
Leveraged Loan Index. The Bloomberg Barclays U.S. High Yield Loans Index was the
Fund's benchmark through September 30, 2016, when that index ceased to exist.
The S&P/LSTA Leveraged Loan Index, which provides broad and comprehensive total
return metrics of the U.S. universe of syndicated term loans, became the Trust's
benchmark on October 1, 2016.
Average Annual Total Returns
(As of November 30, 2016)
--------------------------------------------------------------------------------
Net Pioneer Floating
Asset Rate Trust
Value Market Linked
Period (NAV) Price Benchmark***
--------------------------------------------------------------------------------
10 Years 4.26% 4.03% 4.72%
5 Years 7.16 5.64 5.19
1 Year 8.31 15.92 8.36
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Floating Bloomberg Barclays U.S. S&P/LSTA Leveraged
Rate Trust High Yield Loans Index Loan Index
11/06 $10,000 $10,000 $10,000
11/07 $ 9,798 $10,308 $10,297
11/08 $ 4,693 $ 7,516 $7,546
11/09 $ 8,965 $10,883 $10,787
11/10 $10,993 $12,131 $12,079
11/11 $11,280 $12,381 $12,352
11/12 $13,046 $13,611 $13,508
11/13 $12,936 $14,380 $14,267
11/14 $12,636 $14,868 $14,748
11/15 $12,801 $14,711 $14,616
9/16 $15,771
11/16 $14,839 $15,771 $15,749
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.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV, due to such factors as interest rate
changes, and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for shares of the Trust.
Shares of closed-end funds, unlike open-end funds, are not continuously offered.
There is a one-time public offering and, once issued, shares of closed-end funds
are bought and sold in the open market through a stock exchange and frequently
trade at prices lower than their NAV. NAV per share is total assets less total
liabilities, which include preferred shares, or borrowings, as applicable,
divided by the number of shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends are
assumed to be reinvested at prices obtained through open-market purchases under
the Trust's dividend reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the sale of Trust shares.
Had these fees and taxes been reflected, performance would have been lower.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Trust returns, do not reflect any fees, expenses or sales charges. The
indices do not use leverage. You cannot invest directly in an index.
*** The Bloomberg Barclays U.S. High Yield Loans Index (the Bloomberg Barclays
Index) was the Trust's benchmark from inception through 9/30/16, when the
Bloomberg Barclays Index ceased. As of 10/1/16, the Trust's benchmark is
the S&P/LSTA Leveraged Loan Index (the S&P/LSTA Index). Both the Bloomberg
Barclays Index and the S&P/LSTA Index provide broad and comprehensive total
return metrics of the U.S. universe of syndicated term loans.
12 Pioneer Floating Rate Trust | Annual Report | 11/30/16
Schedule of Investments | 11/30/16
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 132.4% of Net Assets*(a)
AUTOMOBILES & COMPONENTS -- 6.5%
Auto Parts & Equipment -- 4.8%
1,613,236 Allison Transmission, Inc., Term Loan B-3,
3.25%, 9/23/22 $ 1,628,216
2,364,000 BBB Industries US Holdings, Inc., First Lien Initial
Term Loan, 6.0%, 11/3/21 2,366,187
1,103,568 Cooper-Standard Automotive, Inc., Additional Term B-1
Loan, 3.588%, 11/2/23 1,113,914
1,009,167 Electrical Components International, Inc., Term Loan,
5.75%, 5/28/21 1,011,690
1,676,342 Federal-Mogul Corp., Tranche C Term Loan,
4.75%, 4/15/21 1,632,338
907,895 Gates Global LLC, Initial Dollar Term Loan,
4.25%, 7/6/21 903,040
500,000(l) Innovative Xcessories & Services LLC, Term
Loan B, 11/23/22 502,500
748,599 Key Safety Systems, Inc., Initial Term Loan,
5.5%, 8/29/21 752,343
1,633,591 MPG Holdco I, Inc., Initial Term Loan,
3.75%, 10/20/21 1,639,717
1,341,926 TI Group Automotive Systems LLC, Initial US Term
Loan, 4.5%, 6/30/22 1,351,152
2,039,489 Tower Automotive Holdings USA LLC, Refinancing Term
Loan, 4.0%, 4/23/20 2,040,764
----------------
$ 14,941,861
--------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 1.2%
1,885,645 Chrysler Group LLC, Term Loan B, 3.5%, 5/24/17 $ 1,889,771
355,893 Inteva Products LLC, Term B Loan, 9.75%, 9/8/21 357,895
850,000 Octavius Corp. (Winnebago Industries), Tranche B Term
Loan, 5.5%, 11/8/23 850,000
466,667 Visteon Corp., Initial Term Loan, 3.5%, 4/9/21 468,708
----------------
$ 3,566,374
--------------------------------------------------------------------------------------------------------
Tires & Rubber -- 0.5%
1,500,000 Goodyear Tire & Rubber Co., Second Lien Term Loan,
3.86%, 4/30/19 $ 1,511,919
----------------
Total Automobiles & Components $ 20,020,154
--------------------------------------------------------------------------------------------------------
BANKS -- 0.3%
Thrifts & Mortgage Finance -- 0.3%
894,845 Ocwen Loan Servicing, Initial Term Loan, 5.5%, 2/15/18 $ 897,641
----------------
Total Banks $ 897,641
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 13
Schedule of Investments | 11/30/16 (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 13.7%
Aerospace & Defense -- 4.9%
1,823,822 Accudyne Industries Borrower SCA/Accudyne Industries
LLC, Refinancing Term Loan, 4.0%, 12/13/19 $ 1,633,839
1,234,375 Allion Science and Technology Corp., First Lien Term
Loan, 5.5%, 8/19/21 1,211,230
1,571,455 BE Aerospace, Inc., Term Loan, 3.75%, 12/16/21 1,577,348
1,346,406 DAE Aviation Holdings, Inc., Initial Term Loan,
5.25%, 7/7/22 1,351,735
1,977,006 Digitalglobe, Inc., Term Loan, 4.75%, 1/31/20 1,993,053
1,500,000 DynCorp International, Inc., Term Loan B2,
7.75%, 7/7/20 1,502,031
246,269 IAP Worldwide Services, Inc., First Lien Term Loan,
8.0%, 7/18/19 231,493
500,000 Transdigm, Inc., Tranche F Term Loan, 3.75%, 6/9/23 501,758
1,847,750 Turbocombustor Technology, Inc., Initial Term Loan,
5.5%, 12/2/20 1,644,498
1,482,884 Vencore, Inc. (fka SI Organization, Inc.), First Lien Initial
Term Loan, 5.75%, 11/23/19 1,495,241
1,792,361 WP CPP Holdings LLC, First Lien Term B-3 Loan,
4.5%, 12/28/19 1,763,235
334,900 WP CPP Holdings LLC, Second Lien Term B-1 Loan,
8.75%, 4/30/21 324,016
----------------
$ 15,229,477
--------------------------------------------------------------------------------------------------------
Building Products -- 2.4%
1,159,175 Armstrong World Industries, Inc., Term Loan B,
4.0%, 3/31/23 $ 1,160,262
1,717,904 Builders FirstSource, Inc., Initial Term Loan,
4.75%, 7/31/22 1,729,070
328,264 NCI Building Systems, Inc., Tranche B Term Loan,
4.25%, 6/24/19 328,961
1,065,939(l) Quikrete Holdings, Inc., First Lien Initial
Loan, 11/15/23 1,071,802
1,688,625 Summit Materials LLC, Restatement Effective Date Term
Loan, 4.0%, 7/18/22 1,701,818
1,442,189 Unifrax Holding Co., New Term B Dollar Loan,
4.25%, 11/28/18 1,434,753
----------------
$ 7,426,666
--------------------------------------------------------------------------------------------------------
Construction Machinery & Heavy Trucks -- 1.3%
568,184 Engility Corp. (fka TASC, Inc.), Term B2 Loan,
5.75%, 8/14/23 $ 575,553
1,003,846 Manitowoc Co., Inc., Term Loan, 5.75%, 3/3/23 1,020,568
1,603,800 Navistar, Inc., Tranche B Term Loan, 6.5%, 8/7/20 1,619,086
838,816 Terex Corp., US Term Loan, 3.588%, 8/13/21 839,865
----------------
$ 4,055,072
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Floating Rate Trust | Annual Report | 11/30/16
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 1.3%
1,961,122 Pelican Products, Inc., First Lien Term Loan,
5.25%, 4/10/20 $ 1,951,317
835,841 Southwire Company LLC, Initial Term Loan, 3.25%,
2/10/21 837,930
1,290,128 WireCo WorldGroup, Inc., First Lien Initial Term Loan B,
6.5%, 9/29/23 1,303,836
----------------
$ 4,093,083
--------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 1.7%
375,000(l) Culligan International Co., Term Loan, 11/17/23 $ 376,524
398,303 Doosan Infracore International, Inc. (Doosan Holdings
Europe, Ltd.), Tranche B Term Loan, 4.5%, 5/28/21 400,125
1,125,000 DTI Holdco, Inc., Initial Term Loan, 6.25%, 10/2/23 1,113,047
990,356 Filtration Group Corp., First Lien Term Loan,
4.25%, 11/23/20 993,038
167,071 Kleopatra Holdings 2 SCA, Initial German Borrower
Dollar Term Loan, 4.25%, 4/28/20 168,533
390,946 Kleopatra Holdings 2 SCA, Initial US Dollar Term Loan,
4.25%, 4/28/20 394,366
927,161 Milacron LLC, Term Loan, 4.25%, 9/28/20 932,353
700,000 ProAmpac PG Borrower LLC, First Lien Initial Term Loan,
5.0%, 11/20/23 704,813
----------------
$ 5,082,799
--------------------------------------------------------------------------------------------------------
Industrial Machinery -- 1.5%
189,525 Blount International, Inc., Initial Term Loan,
7.25%, 4/12/23 $ 192,368
868,296 Gardner Denver, Inc., Initial Dollar Term Loan,
4.25%, 7/30/20 844,553
1,965,000 Mueller Water Products, Inc., Initial Term Loan,
4.0%, 11/24/21 1,985,878
1,732,500 NN, Inc., Tranche B Term Loan, 5.0%, 10/19/22 1,735,748
----------------
$ 4,758,547
--------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.6%
1,132,534 AWAS Finance Luxembourg 2012 SA, Term Loan,
3.63%, 7/16/18 $ 1,139,613
589,080 WESCO Distribution, Inc., Tranche B-1 Loan,
3.75%, 12/12/19 590,736
----------------
$ 1,730,349
----------------
Total Capital Goods $ 42,375,993
--------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 5.3%
Diversified Support Services -- 1.1%
771,425 DH Publishing LP, Term B-4 Loan, 3.282%, 8/22/22 $ 773,474
1,056,743 InfoGroup, Inc., Term Loan B, 7.0%, 5/28/18 1,044,690
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 15
Schedule of Investments | 11/30/16 (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Diversified Support Services -- (continued)
696,121 KAR Auction Services, Inc., Tranche B-2 Term Loan,
4.063%, 3/11/21 $ 700,907
937,500 Ryan LLC, Tranche B Term Loan, 6.75%, 8/7/20 933,398
----------------
$ 3,452,469
--------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 2.8%
906,591 Advanced Disposal Services, Inc. (fka ADS Waste
Holdings, Inc.), Additional Term Loan, 3.5%, 11/10/23 $ 908,575
470,546 Granite Acquisition, Inc., First Lien Term B Loan,
5.0%, 12/17/21 467,605
21,073 Granite Acquisition, Inc., First Lien Term C Loan,
5.0%, 12/17/21 20,941
1,500,000 Granite Acquisition, Inc., Second Lien Term B Loan,
8.25%, 12/19/22 1,421,875
500,000 Infiltrator Systems Integrated LLC, Second Lien Term
Loan, 9.75%, 5/26/23 502,500
975,000 Safway Group Holding LLC, Initial Term Loan,
5.75%, 8/21/23 983,125
854,715 US Ecology, Inc., Term Loan, 3.75%, 6/17/21 860,324
1,083,825 Waste Industries USA, Inc., Term B Loan, 3.5%, 2/27/20 1,087,551
606,848 Wastequip LLC, Term Loan, 5.5%, 8/9/19 609,124
1,741,802 WCA Waste Systems, Inc., Initial Term Loan,
4.0%, 8/11/23 1,742,891
----------------
$ 8,604,511
--------------------------------------------------------------------------------------------------------
Human Resource & Employment Services -- 0.2%
565,069 On Assignment, Inc., Tranche B-1 Term Loan,
3.5%, 6/3/22 $ 571,426
--------------------------------------------------------------------------------------------------------
Office Services & Supplies -- 0.2%
648,375 West Corp., Term B-12 Loan, 3.75%, 6/17/23 $ 652,670
--------------------------------------------------------------------------------------------------------
Security & Alarm Services -- 1.0%
176,513 Garda Security, Term B Delayed Draw Loan,
5.5%, 11/6/20 $ 174,527
1,395,470 Garda Security, Term B Loan, 5.5%, 11/6/20 1,379,771
1,111,664 Protection One, Inc., First Lien Term B Loan,
4.75%, 7/1/21 1,120,497
498,750 Protection One, Inc., First Lien Term B-1 Loan,
4.75%, 5/2/22 503,426
----------------
$ 3,178,221
----------------
Total Commercial & Professional Services $ 16,459,297
--------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 3.1%
Consumer Electronics -- 0.4%
1,200,000(l) Redbox Automated Retail LLC, First Lien Term B
Loan, 9/27/21 $ 1,167,750
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Floating Rate Trust | Annual Report | 11/30/16
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Homefurnishing Retail -- 0.7%
1,883,493(l) Serta Simmons Holdings LLC, Initial Term
Loan, 11/8/23 $ 1,879,121
350,000(l) Serta Simmons Holdings LLC, Second Lien Term
Loan, 10/21/24 351,167
----------------
$ 2,230,288
--------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 1.4%
787,302 Prestige Brands, Inc., Term B-3 Loan, 3.5%, 9/3/21 $ 792,162
2,050,949 Reynolds Group Holdings, Inc., US Term Loan,
4.25%, 2/5/23 2,060,621
1,486,545 World Kitchen LLC, US Term Loan, 5.5%, 3/4/19 1,471,680
----------------
$ 4,324,463
--------------------------------------------------------------------------------------------------------
Leisure Products -- 0.6%
1,000,000(l) Bass Pro Group LLC, Term Loan B, 11/4/23 $ 993,571
329,028 Bombardier Recreational Products, Inc., Term B Loan,
3.75%, 6/30/23 330,330
400,563 Marine Acquisition Corp., Term Loan, 5.25%, 1/30/21 400,062
----------------
$ 1,723,963
----------------
Total Consumer Durables & Apparel $ 9,446,464
--------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 10.3%
Casinos & Gaming -- 1.6%
840,007 CityCenter Holdings LLC, Term B Loan, 4.25%,
10/16/20 $ 847,620
790,746 Eldorado Resorts, Inc., Initial Term Loan, 4.25%,
7/25/22 796,176
3,210,559 Scientific Games International, Inc., Initial Term B-2
Loan, 6.0%, 10/1/21 3,241,409
----------------
$ 4,885,205
--------------------------------------------------------------------------------------------------------
Education Services -- 2.9%
3,396,416 Bright Horizons Family Solutions LLC, Incremental
Effective Date Term Loan, 3.5%, 11/7/23 $ 3,411,275
1,836,412 Cengage Learning Acquisitions, Inc., 2016 Refinancing
Term Loan, 5.25%, 6/7/23 1,770,498
1,461,652 Laureate Education, Inc., Series 2021 Extended Term
Loan, 8.868%, 3/17/21 1,449,776
2,505,795 Nord Anglia Education Finance LLC, Initial Term Loan,
5.0%, 3/31/21 2,505,795
----------------
$ 9,137,344
--------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.5%
49,422 Hilton Worldwide Finance LLC, Series B-1 Term Loan,
3.5%, 10/26/20 $ 49,696
505,232 Hilton Worldwide Finance LLC, Series B-2 Term Loan,
3.08%, 10/25/23 509,293
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 17
Schedule of Investments | 11/30/16 (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- (continued)
798,503 Sabre, Inc., Term B Loan, 4.0%, 2/19/19 $ 804,575
150,000(l) Sabre, Inc., Term C Loan, 2/19/18 150,188
----------------
$ 1,513,752
--------------------------------------------------------------------------------------------------------
Leisure Facilities -- 1.7%
842,076 Cedar Fair LP, US Term Facility, 3.25%, 3/6/20 $ 845,887
2,169,050 Fitness International LLC, Term B Loan, 6.0%, 7/1/20 2,172,575
862,371 Life Time Fitness, Inc., Closing Date Term Loan,
4.25%, 6/10/22 863,853
1,286,450 Six Flags Theme Parks, Inc., Tranche B Term Loan,
3.25%, 6/30/22 1,295,562
----------------
$ 5,177,877
--------------------------------------------------------------------------------------------------------
Restaurants -- 1.9%
749,423 1011778 BC Unlimited Liability Co. (New Red Finance,
Inc.) (aka Burger King/Tim Hortons), Term B-2 Loan,
3.75%, 12/10/21 $ 754,885
1,339,417 Landry's, Inc. (fka Landry's Restaurants, Inc.), Term
Loan B, 4.0%, 10/4/23 1,349,882
1,742,136 NPC International, Inc., Term Loan, 4.75%, 12/28/18 1,749,758
1,960,000 Red Lobster Management LLC, First Lien Initial Term
Loan, 6.25%, 7/28/21 1,964,492
----------------
$ 5,819,017
--------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 1.7%
834,437 Allied Universal Holdco LLC (fka USAGM Holdco LLC),
Incremental Term Loan, 5.5%, 7/28/22 $ 836,523
2,456,406 Creative Artists Agency LLC, Initial Term Loan,
5.0%, 12/17/21 2,481,739
1,732,500 KC MergerSub, Inc., Term B-1 Loan, 5.25%, 8/12/22 1,746,937
379,874 Weight Watchers International, Inc., Initial Tranche B-2
Term Loan, 4.0%, 4/2/20 290,604
----------------
$ 5,355,803
----------------
Total Consumer Services $ 31,888,998
--------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.1%
Asset Management & Custody Banks -- 0.5%
1,494,986 Vistra Group, Ltd., USD Term Loan, 4.75%, 10/26/22 $ 1,499,658
--------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.4%
1,365,010 Trans Union LLC, Term B-2 Loan, 3.5%, 4/9/21 $ 1,373,054
--------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.9%
1,182,800 Duff & Phelps Corp., Initial Term Loan, 4.75%, 4/23/20 $ 1,185,388
636,891 Guggenheim Partners Investment Management
Holdings LLC, Term B Loan, 3.5%, 7/21/23 640,739
The accompanying notes are an integral part of these financial statements.
18 Pioneer Floating Rate Trust | Annual Report | 11/30/16
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- (continued)
103,720 LPL Holdings, Inc., 2021 Tranche B Term Loan,
4.25%, 3/29/21 $ 104,498
740,625 MJ Acquisition Corp., Term Loan, 4.0%, 6/1/22 740,625
----------------
$ 2,671,250
--------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 1.0%
325,000 Delos Finance S.a.r.l., Term Loan, 3.588%, 3/6/21 $ 327,559
767,016 Fly Funding II S.a.r.l., Term Loan, 3.64%, 2/9/22 771,331
1,983,375 Livingston International, Inc., First Lien Initial Term B-1
Loan, 5.5%, 4/18/19 1,899,082
----------------
$ 2,997,972
--------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.3%
1,233,087 DBRS, Ltd., Initial Term Loan, 6.25%, 3/4/22 $ 1,115,944
----------------
Total Diversified Financials $ 9,657,878
--------------------------------------------------------------------------------------------------------
ENERGY -- 4.2%
Integrated Oil & Gas -- 0.5%
1,384,652 TerraForm AP Acquisition Holdings LLC, Term Loan,
6.0%, 6/27/22 $ 1,384,652
--------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.8%
2,600,000 Jonah Energy LLC, Second Lien Initial Term Loan,
7.5%, 5/12/21 $ 2,459,166
1,048 Pacific Drilling SA, Term Loan, 4.5%, 6/3/18 331
----------------
$ 2,459,497
--------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.2%
1,643,033 FR Dixie Acquisition Corp., Term Loan,
5.75%, 12/18/20 $ 743,472
--------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.9%
1,000,000 California Resources Corp., Term Loan, 11.375%,
12/31/21 $ 1,065,000
1,000,000 Chesapeake Energy Corp., Term Loan Class A,
8.5%, 8/23/21 1,063,500
1,378,942 EP Energy LLC (fka Everest Acquisition LLC), Term
Loan, 9.75%, 6/30/21 1,406,090
2,330,000 Gulf Finance LLC, Tranche B Term Loan,
6.25%, 8/25/23 2,297,963
----------------
$ 5,832,553
--------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.5%
896,252 Pilot Travel Centers LLC, 2016 Refinancing Tranche B
Term Loan, 3.356%, 5/25/23 $ 904,561
565,799 Western Refining, Inc., Term Loan 2013, 5.25%,
11/12/20 567,921
----------------
$ 1,472,482
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 19
Schedule of Investments | 11/30/16 (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.3%
1,000,000 Energy Transfer Equity LP, 2013 Term Loan,
3.387%, 12/2/19 $ 996,458
----------------
Total Energy $ 12,889,114
--------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.3%
Drug Retail -- 0.5%
1,705,738 Hearthside Group Holdings LLC, Term Loan,
4.5%, 6/2/21 $ 1,709,405
--------------------------------------------------------------------------------------------------------
Food Distributors -- 1.2%
694,505 CTI Foods Holding Co., LLC, First Lien Term Loan,
4.5%, 6/29/20 $ 677,143
1,000,000 CTI Foods Holding Co., LLC, Second Lien Term Loan,
8.25%, 6/28/21 900,000
2,418,854 Mill US Acquisition, First Lien Term Loan, 5.0%, 7/3/20 2,070,539
----------------
$ 3,647,682
--------------------------------------------------------------------------------------------------------
Food Retail -- 0.6%
1,389,375 Albertson's LLC, Term B-6 Loan, 4.75%, 6/22/23 $ 1,396,931
491,250 Packers Holdings LLC, Term Loan, 4.75%, 12/2/21 495,548
----------------
$ 1,892,479
----------------
Total Food & Staples Retailing $ 7,249,566
--------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 3.6%
Packaged Foods & Meats -- 3.6%
388,734 AdvancePierre Foods, Inc., Term Loan, 4.5%, 6/2/23 $ 391,468
1,650,000 Amplify Snack Brands, Inc., Term Loan, 6.5%, 9/2/23 1,621,125
1,000,000 Del Monte Foods, Inc., Second Lien Initial Term
Loan, 8.45%, 8/18/21 795,000
1,239,913 Dole Food Co., Inc., Tranche B Term Loan, 4.56%,
11/1/18 1,246,629
1,500,000 Give and Go Prepared Foods Corp., First Lien Term
Loan, 6.5%, 7/29/23 1,502,500
992,500 JBS USA LLC, Incremental Term Loan, 4.0%, 10/30/22 993,319
1,212,450 Maple Holdings Acquisition Corp. (aka Keuring Green
Mountain, Inc.), Term Loan B, 5.25%, 3/3/23 1,228,354
1,945,801 Pinnacle Foods Finance LLC, New Term Loan G,
3.387%, 4/29/20 1,957,095
1,470,000 Shearer's Foods LLC, First Lien Term Loan,
4.938%, 6/30/21 1,476,431
----------------
Total Food, Beverage & Tobacco $ 11,211,921
--------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 14.4%
Health Care Equipment -- 0.4%
1,250,000(l) Cidron Healthcare, Ltd. (aka ConvaTec, Inc.), Term B
Loan, 10/25/23 $ 1,254,688
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Floating Rate Trust | Annual Report | 11/30/16
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Health Care Facilities -- 3.9%
421,813 Acadia Healthcare Co., Inc., Tranche B-2 Term Loan,
3.75%, 2/16/23 $ 423,131
684,250 AmSurg Corp., Initial Term Loan, 5.25%, 7/16/21 685,405
798,000 ATI Holdings Acquisition, Inc., First Lien Initial Term
Loan, 5.5%, 5/10/23 803,652
264,935 CHS/Community Health Systems, Inc., Incremental
2018 Term F Loan, 4.083%, 12/31/18 256,747
278,867 CHS/Community Health Systems, Inc., Incremental
2019 Term G Loan, 3.75%, 12/31/19 265,098
513,107 CHS/Community Health Systems, Inc., Incremental
2021 Term H Loan, 4.0%, 1/27/21 485,161
1,560,333 Iasis Healthcare LLC, Term B-2 Loan, 4.5%, 5/3/18 1,542,779
1,983,129 Kindred Healthcare, Inc., Incremental Term Loan,
4.25%, 4/9/21 1,963,297
1,995,000 Prospect Medical Holdings, Inc., Term Loan,
7.0%, 6/30/22 1,970,063
1,069,625 Quorum Health Corp., Term Loan, 6.75%, 4/29/22 1,032,634
418,152 Select Medical Corp., Series E, Tranche B Term Loan,
6.0%, 6/1/18 418,937
995,000 Select Medical Corp., Series F, Tranche B Term Loan,
6.0%, 3/3/21 1,004,950
1,319,779 Vizient, Inc., Term B-2 Loan, 5.0%, 2/13/23 1,329,472
----------------
$ 12,181,326
--------------------------------------------------------------------------------------------------------
Health Care Services -- 6.8%
977,500 Aegis Toxicology Sciences Corp., First Lien Initial Term
Loan, 5.5%, 2/24/21 $ 906,631
1,107,226 Alliance Healthcare Services, Inc., Initial Term Loan,
4.25%, 6/3/19 1,085,082
264,949 Ardent Legacy Acquisitions, Inc. (Ardent Mergeco LLC),
Term Loan, 6.5%, 8/4/21 265,280
598,592 Bioscrip, Inc., Initial Term B Loan, 6.5%, 7/31/20 550,704
359,155 Bioscrip, Inc., Term Loan, 6.5%, 7/31/20 330,423
865,683 BSN Medical Luxembourg Holding S.a.r.l. (P & F
Capital), Facility Term Loan B-1B, 4.0%, 8/28/19 866,765
1,365,220(b) CCS Medical, Inc., Second Lien Term Loan, 12.5%
(12.5% PIK 0% Cash), 5/1/18 20,478
868,982 DaVita HealthCare Partners, Inc., Term Loan B2,
3.5%, 6/24/21 871,290
1,154,780 Envision Healthcare Corp. (fka Emergency Medical
Services Corp.), Initial Term Loan, 6.0%, 5/25/18 1,157,306
1,626,217(l) Envision Healthcare Corp. (fka Emergency Medical
Services Corp.), Term Loan B, 11/17/23 1,631,299
471,438 Envision Healthcare Corp. (fka Emergency Medical
Services Corp.), Tranche B-2 Term Loan, 6.25%,
10/28/22 $ 472,976
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 21
Schedule of Investments | 11/30/16 (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Health Care Services -- (continued)
1,466,250 Genex Holdings, Inc., First Lien Term B Loan, 5.25%,
5/28/21 $ 1,453,420
1,300,000 Genoa Healthcare Co., LLC, First Lien Initial Term Loan,
4.75%, 10/30/23 1,297,292
100,000 Genoa Healthcare Co., LLC, Second Lien Initial Term
Loan, 9.0%, 10/28/24 99,937
742,523 Global Healthcare Exchange LLC, Initial Term Loan,
5.25%, 8/15/22 748,325
900,000 Gold Merger Co., Inc. (aka ExamWorks Group, Inc.),
Initial Term Loan, 4.75%, 7/27/23 905,485
987,500 HC Group Holdings III, Inc., Initial Term Loan,
6.0%, 4/7/22 977,008
900,000(l) Inventiv Group Holdings, Inc., Initial Term Loan, 11/9/23 898,664
1,240,688 National Mentor Holdings, Inc., Tranche B Term Loan,
4.25%, 1/31/21 1,242,045
351,111 National Surgical Hospitals, Inc., Term Loan,
4.5%, 6/1/22 344,633
1,221,938 nThrive, Inc. (fka Precyse Acquisition Corp.), First Lien
Initial Term Loan, 6.5%, 10/20/22 1,233,393
935,392 NVA Holdings, Inc., First Lien Term Loan, 4.75%, 8/14/21 938,120
1,116,094 Pharmaceutical Product Development, First Lien Term B
Loan, 4.25%, 8/18/22 1,119,814
1,783,408 US Renal Care, Inc., First Lien Initial Term Loan,
5.25%, 12/30/22 1,676,403
----------------
$ 21,092,773
--------------------------------------------------------------------------------------------------------
Health Care Supplies -- 1.9%
1,141,290 Alere, Inc., Term Loan B, 4.25%, 6/20/22 $ 1,127,381
1,339,875 Greatbatch, Ltd., Term B Loan, 5.25%, 10/27/22 1,335,520
559,300 Halyard Health, Inc., Term Loan, 4.0%, 11/1/21 562,561
858,103 Kinetic Concepts, Inc., Dollar Term F Loan,
5.0%, 11/4/20 844,374
1,826,600 Sterigenics-Nordion Holdings LLC, Initial Term Loan,
4.25%, 5/16/22 1,824,271
----------------
$ 5,694,107
--------------------------------------------------------------------------------------------------------
Health Care Technology -- 1.2%
2,029,625 Change Healthcare Holdings, Inc. (fka Emdeon, Inc.),
Term B-2 Loan, 3.75%, 11/2/18 $ 2,033,938
196,000 Change Healthcare Holdings, Inc. (fka Emdeon, Inc.),
Term B-3 Loan, 3.75%, 11/2/18 196,245
1,125,775(c) Medical Card System, Inc., Term Loan, 1.5%, 5/31/19 731,754
650,000 Press Ganey Holdings, Inc., Initial Term Loan,
4.25%, 10/23/23 651,625
----------------
$ 3,613,562
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Floating Rate Trust | Annual Report | 11/30/16
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.2%
381,008(d) MMM Holdings, Inc., MMM Term Loan, 9.75%, 12/12/17 $ 375,293
276,991(d) MSO of Puerto Rico, Inc., Term Loan, 9.75%, 12/12/17 272,837
----------------
$ 648,130
----------------
Total Health Care Equipment & Services $ 44,484,586
--------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 1.3%
Household Products -- 0.4%
669,190 Spectrum Brands Canada, Inc., 2016 Replacement
USD Term Loan, 3.288%, 6/23/22 $ 675,743
73,583 Wash Multifamily Parent, Inc., First Lien Initial Canadian
Term Loan, 4.25%, 5/16/22 72,664
420,166 Wash Multifamily Parent, Inc., First Lien Initial US Term
Loan, 4.25%, 5/16/22 414,913
----------------
$ 1,163,320
--------------------------------------------------------------------------------------------------------
Personal Products -- 0.9%
1,240,529 NBTY, Inc., Dollar Term Loan B, 5.0%, 5/5/23 $ 1,243,243
732,258 Party City Holdings, Inc., 2016 Replacement Term
Loan, 3.75%, 8/19/22 735,396
800,000 Revlon Consumer Products Corp., Initial Term Loan B,
4.25%, 9/7/23 802,223
----------------
$ 2,780,862
----------------
Total Household & Personal Products $ 3,944,182
--------------------------------------------------------------------------------------------------------
INSURANCE -- 2.7%
Insurance Brokers -- 0.3%
980,011 National Financial Partners Corp., 2014 Specified
Refinancing Term Loan, 4.5%, 7/1/20 $ 983,686
--------------------------------------------------------------------------------------------------------
Life & Health Insurance -- 0.5%
1,638,095 Integro, Ltd., Initial Term Loan, 6.75%, 10/31/22 $ 1,613,524
--------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.1%
360,075 Alliant Holdings I LLC, Term Loan B, 4.753%, 8/12/22 $ 360,600
--------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 1.8%
850,000(l) Acrisure LLC, First Lien Term B Loan, 11/22/23 $ 850,000
500,000 Confie Seguros Holding II Co., Second Lien Term
Loan, 10.25%, 5/8/19 491,667
2,403,380 Confie Seguros Holding II Co., Term B Loan,
5.75%, 4/19/22 2,382,350
1,629,176 USI, Inc., Initial Term Loan, 4.25%, 12/27/19 1,631,212
----------------
$ 5,355,229
----------------
Total Insurance $ 8,313,039
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 23
Schedule of Investments | 11/30/16 (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
MATERIALS -- 15.1%
Commodity Chemicals -- 0.3%
1,045,976 Tronox Pigments (Netherlands) BV, Closing Date Term
Loan, 4.5%, 3/19/20 $ 1,045,976
--------------------------------------------------------------------------------------------------------
Construction Materials -- 1.3%
1,010,000(l) 84 Lumber Co., Initial Term Loan, 10/25/23 $ 999,900
750,000 American Bath Group LLC, First Lien Term Loan,
6.75%, 9/30/23 753,750
244,385 Faenza Acquisition GmbH (CeramTec Acquisition Corp.),
Dollar Term B-3 Loan, 4.25%, 8/30/20 245,836
807,573 Faenza Acquisition GmbH (CeramTec Acquisition Corp.),
Initial Dollar Term B-1 Loan, 4.25%, 8/30/20 812,368
91,483 Faenza Acquisition GmbH (CeramTec Acquisition Corp.),
Initial Dollar Term B-2 Loan, 4.25%, 8/30/20 92,027
598,485 Headwaters, Inc., Term B-1 Loan, 4.0%, 3/24/22 601,477
588,000 Penn Engineering & Manufacturing Corp., Incremental
Tranche B Term Loan, 4.0%, 8/27/21 589,470
----------------
$ 4,094,828
--------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 3.0%
299,420(l) Allnex (Luxembourg) & Cy SCA (fka AI Chem & Cy SCA),
Tranche B-2 Term Loan, 9/13/23 $ 302,508
225,579(l) Allnex (Luxembourg) & Cy SCA (fka AI Chem & Cy SCA),
Tranche B-3 Term Loan, 9/13/23 227,906
1,458,600 Axalta Coating Systems Dutch Holding B BV & Axalta
Coating Systems US Holdings, Inc., Refinanced Term B
Loan, 3.75%, 2/1/20 1,466,805
1,226,981 Azelis Finance SA (Azelis US Holdings, Inc.), First Lien
Dollar Term Loan, 5.25%, 12/16/22 1,234,650
1,695,750 Nexeo Solutions LLC, Initial Term Loan, 5.25%, 6/9/23 1,712,707
590,207 Orion Engineered Carbons GmbH (OEC Finance US LLC),
Initial Dollar Term Loan, 3.838%, 7/25/21 593,711
620,314 Plaskolite LLC, First Lien Term Loan, 5.75%, 11/3/22 620,702
325,000 Royal Holdings, Inc., Second Lien Initial Term Loan,
8.5%, 6/19/23 323,375
835,698 Tata Chemicals North America, Term Loan, 3.75%, 8/7/20 835,698
1,816,650 Univar USA, Inc., Initial Dollar Term Loan, 4.25%, 7/1/22 1,823,840
----------------
$ 9,141,902
--------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.4%
1,517,289 FMG Resources (August 2006) Pty, Ltd. (FMG America
Finance, Inc.), Term Loan, 3.75%, 6/30/19 $ 1,520,134
1,750,000 Global Brass and Copper, Inc., Initial Term Loan,
5.25%, 7/18/23 1,759,800
975,000 Hi-Crush Partners LP, Advance, 4.75%, 4/28/21 928,688
2,147,813 Novelis, Inc., Initial Term Loan, 4.0%, 6/2/22 2,154,971
The accompanying notes are an integral part of these financial statements.
24 Pioneer Floating Rate Trust | Annual Report | 11/30/16
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- (continued)
995,558 US Silica Co., Term Loan, 4.0%, 7/23/20 $ 984,357
----------------
$ 7,347,950
--------------------------------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 0.6%
1,728,125 Methanol Holdings (Trinidad), Ltd. (Methanol Holdings
(Delaware) LLC), Initial Term Loan, 4.25%, 6/30/22 $ 1,697,883
--------------------------------------------------------------------------------------------------------
Forest Products -- 0.3%
1,025,000(l) Expera Specialty Solutions LLC, Term Loan B, 11/3/23 $ 1,030,125
--------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 1.9%
1,156,991 Berry Plastics Corp., Term H Loan, 3.75%, 10/1/22 $ 1,164,150
1,430,927 BWay Intermediate Co., Inc., Initial Term Loan,
5.5%, 8/14/20 1,437,485
1,431,059 Tank Holding Corp., Initial Term Loan, 5.25%, 3/16/22 1,398,860
1,925,625 Tekni-Plex, Inc., USD Term Loan, 4.5%, 6/1/22 1,925,866
----------------
$ 5,926,361
--------------------------------------------------------------------------------------------------------
Paper Packaging -- 1.0%
1,545,893 Caraustar Industries, Inc., Incremental Term Loan,
8.0%, 5/1/19 $ 1,570,692
156,282 Caraustar Industries, Inc., Term Loan, 8.0%, 5/1/19 158,789
1,206,625 Onex Wizard Acquisition Co. I S.a.r.l. (aka SIG
Combibloc Group), Term Loan, 4.0%, 3/11/22 1,211,318
----------------
$ 2,940,799
--------------------------------------------------------------------------------------------------------
Paper Products -- 1.0%
1,653,881 Appvion, Inc., Term Commitment, 6.25%, 6/28/19 $ 1,595,995
948,896 Exopack Holdings SA, USD Term Loan, 4.5%, 5/8/19 946,919
500,000 Ranpak Corp., Second Lien Initial Term Loan,
8.25%, 10/3/22 480,000
200,222 Ranpak Corp., Tranche B-1 USD Term Loan,
4.25%, 10/1/21 199,221
----------------
$ 3,222,135
--------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 1.9%
1,464,000 Ferro Corp., Term Loan, 4.088%, 7/30/21 $ 1,474,980
109,750 Huntsman International LLC, 2015 Extended Term B
Dollar Loan, 3.603%, 4/19/19 110,391
1,408,785 MacDermid, Inc., Tranche B-4 Term Loan, 5.0%, 6/7/23 1,420,720
1,596,000 Omnova Solutions, Inc., Term B-2 Loan, 5.25%, 8/25/23 1,609,965
1,362,166 PQ Corp., First Amendment Tranche B-1 Term Loan,
5.25%, 11/4/22 1,372,241
----------------
$ 5,988,297
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 25
Schedule of Investments | 11/30/16 (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Steel -- 1.4%
500,000(l) American Builders & Contractors Supply Co., Inc.,
Restatement Effective Date Term Loan, 10/31/23 $ 502,672
1,980,234 Atkore International, Inc., First Lien Initial Term Loan,
4.5%, 4/9/21 1,989,723
648,819 TMS International Corp., Term B Loan, 4.5%, 10/16/20 644,763
1,271,813 Zekelman Industries, Inc. (fka JMC Steel Group, Inc.),
Term Loan, 6.0%, 6/14/21 1,278,172
----------------
$ 4,415,330
----------------
Total Materials $ 46,851,586
--------------------------------------------------------------------------------------------------------
MEDIA -- 12.6%
Advertising -- 2.1%
3,533,043 Affinion Group, Inc., Tranche B Term Loan,
6.75%, 4/30/18 $ 3,448,031
1,200,000 CB Poly Investments LLC, First Lien Closing Date
Term Loan, 6.25%, 8/16/23 1,212,000
625,600 Checkout Holding Corp., First Lien Term B Loan,
4.5%, 4/9/21 536,843
1,973,125 Crossmark Holdings, Inc., First Lien Term Loan,
4.5%, 12/20/19 1,420,650
----------------
$ 6,617,524
--------------------------------------------------------------------------------------------------------
Broadcasting -- 4.1%
766,021(l) A-L Parent LLC, First Lien Initial Term Loan, 12/1/23 $ 770,330
1,250,000 Beasley Mezzanine Holdings LLC, Initial Term Loan,
7.0%, 11/1/23 1,244,271
347,311 CBS Outdoor Americas Capital LLC (CBS Outdoor
Americas Capital Corp.), Term Loan, 3.0%, 2/1/21 347,746
196,097(l) Entercom Radio LLC, Term B Loan, 11/1/23 197,568
532,752 Gray Television, Inc., Initial Term Loan, 3.938%, 6/13/21 536,581
786,250 Hubbard Radio LLC, Term Loan, 4.25%, 5/27/22 777,405
1,857,600 MCC Iowa LLC, Tranche H Term Loan, 3.25%, 1/29/21 1,868,920
2,646,000 MediArena Acquisition BV (fka AP NMT Acquisition BV),
First Lien Dollar Term B Loan, 6.75%, 8/13/21 2,427,705
987,500 Sinclair Television Group, Inc., Incremental Tranche B-1
Term Loan, 3.5%, 7/30/21 990,895
1,005,198 Sinclair Television Group, Inc., Tranche B Term Loan,
3.0%, 4/9/20 1,009,470
500,000 Townsquare Media, Inc., Initial Term Loan, 4.25%, 4/1/22 499,479
2,128,082 Univision Communications, Inc., Replacement First
Lien Term Loan, 4.0%, 3/1/20 2,130,889
----------------
$ 12,801,259
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Floating Rate Trust | Annual Report | 11/30/16
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Cable & Satellite -- 2.0%
1,978,538 Charter Communications Operating LLC, Term F Loan,
3.0%, 1/3/21 $ 1,984,857
889,176 Learfield Communications, Inc., First Lien 2014
Replacement Term Loan, 6.25%, 10/9/20 893,066
425,000(l) Telenet Financing USD LLC, Term Loan AF Facility, 1/31/25 424,734
1,075,000 UPC Financing Partnership, Facility AN, 4.08%, 8/31/24 1,081,316
1,117,713 Virgin Media Investment Holdings, Ltd., Facility F,
3.5%, 6/30/23 1,124,000
725,000 WideOpenWest Finance LLC, New Term B Loan,
4.5%, 8/18/23 726,158
----------------
$ 6,234,131
--------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 2.2%
1,146,329 AMC Entertainment, Inc., Initial Term Loan,
0.0%, 12/15/22 $ 1,153,494
1,239,361 CDS US Intermediate Holdings, Inc. (Cirque Du Soleil
Canada, Inc.), First Lien Initial Term Loan, 5.0%, 7/8/22 1,247,882
1,000,000 CDS US Intermediate Holdings, Inc. (Cirque Du Soleil
Canada, Inc.), Second Lien Initial Term Loan,
9.25%, 7/10/23 973,750
514,706 Kasima LLC, Term Loan, 3.25%, 5/17/21 516,636
479,214 Live Nation Entertainment, Inc., Term B-2 Loan,
3.34%, 10/31/23 481,760
1,064,250 Seminole Hard Rock Entertainment, Inc., Term Loan,
3.588%, 5/14/20 1,069,571
1,275,132 WMG Acquisition Corp., Tranche C Term Loan,
3.75%, 11/1/23 1,273,538
----------------
$ 6,716,631
--------------------------------------------------------------------------------------------------------
Publishing -- 2.2%
865,808 Houghton Mifflin Holdings, Inc., Term Loan,
4.0%, 5/28/21 $ 816,024
144,376 Lee Enterprises, Inc., First Lien Term Loan,
7.25%, 3/31/19 145,098
2,992,500 McGraw-Hill Global Education Holdings LLC, First Lien
Term B Loan, 5.0%, 5/4/22 2,968,186
775,948 Quincy Newspapers, Inc., Term Loan B, 7.0%, 11/2/22 779,827
1,379,000 Springer SBM Two GmbH, Initial Term B9 Loan,
4.75%, 8/14/20 1,360,039
600,000 Trader Corp., Term Loan, 5.0%, 9/28/23 600,750
----------------
$ 6,669,924
----------------
Total Media $ 39,039,469
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 27
Schedule of Investments | 11/30/16 (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 3.5%
Biotechnology -- 0.5%
904,867 Alkermes, Inc., 2021 Term Loan, 3.59%, 9/25/21 $ 905,998
701,138 Lantheus Medical Imaging, Inc., Term Loan,
7.0%, 6/30/22 691,790
----------------
$ 1,597,788
--------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.8%
1,980,000 Albany Molecular Research, Inc., Term Loan B,
6.006%, 7/16/21 $ 1,992,375
500,000 Catalent Pharma Solutions, Inc. (fka Cardinal
Health 409, Inc.), Dollar Term Loan, 4.25%, 5/20/21 502,639
----------------
$ 2,495,014
--------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 2.2%
1,688,247 Concordia Healthcare Corp., Initial Dollar Term Loan,
5.25%, 10/21/21 $ 1,423,253
1,642,522 Endo Luxembourg Finance Company I S.a.r.l., Term
Loan B, 3.75%, 9/26/22 1,636,107
400,000(l) Horizon Pharma, Inc., Incremental Term B-1 Loan, 5/7/21 400,750
650,000 Mallinckrodt International Finance SA, Initial Term B
Loan, 3.338%, 3/19/21 648,317
1,050,813 Patheon, Inc., Term Loan, 4.25%, 3/11/21 1,050,419
827,042 Valeant Pharmaceuticals International, Inc., Series C-2
Tranche B Term Loan, 5.25%, 12/11/19 821,011
620,282 Valeant Pharmaceuticals International, Inc., Series D-2
Tranche B Term Loan, 5.0%, 2/13/19 615,758
----------------
$ 6,595,615
----------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 10,688,417
--------------------------------------------------------------------------------------------------------
REAL ESTATE -- 2.8%
Diversified REIT -- 0.2%
450,000 ESH Hospitality, Inc., Initial Term Loan, 3.75%, 8/30/23 $ 453,891
--------------------------------------------------------------------------------------------------------
Hotel & Resort REIT -- 0.4%
1,358,175 MGM Growth Properties Operating Partnership LP,
Term B Loan, 3.5%, 4/25/23 $ 1,364,542
--------------------------------------------------------------------------------------------------------
Real Estate Services -- 0.9%
1,473,597 Altisource Solutions S.a.r.l, Term Loan B, 4.5%, 12/9/20 $ 1,433,073
1,194,000 GCA Services Group, Inc., Term Loan, 5.75%, 3/1/23 1,191,015
----------------
$ 2,624,088
--------------------------------------------------------------------------------------------------------
Retail REITs -- 0.7%
2,002,598 DTZ US Borrower LLC, First Lien Initial Term Loan,
4.25%, 11/4/21 $ 1,999,470
The accompanying notes are an integral part of these financial statements.
28 Pioneer Floating Rate Trust | Annual Report | 11/30/16
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Retail REITs -- (continued)
85,106 DTZ US Borrower LLC, Second Lien Initial Term Loan,
9.25%, 11/4/22 $ 85,426
----------------
$ 2,084,896
--------------------------------------------------------------------------------------------------------
Specialized REIT -- 0.6%
1,975,000 Communications Sales & Leasing, Inc. (CSL Capital
LLC), Term Loan, 4.5%, 10/24/22 $ 1,988,084
----------------
Total Real Estate $ 8,515,501
--------------------------------------------------------------------------------------------------------
RETAILING -- 2.9%
Apparel Retail -- 0.6%
518,433 Hudson's Bay Co., Term Loan B, 4.25%, 9/30/22 $ 521,673
1,232,308 Men's Wearhouse, Inc., Term Loan B, 4.5%, 6/18/21 1,219,975
----------------
$ 1,741,648
--------------------------------------------------------------------------------------------------------
Automotive Retail -- 0.5%
1,106,331(l) CWGS Group LLC, Term Loan, 11/8/23 $ 1,113,418
564,542 Hertz Corp., Tranche Term B-1 Loan, 3.5%, 6/30/23 564,331
----------------
$ 1,677,749
--------------------------------------------------------------------------------------------------------
Computer & Electronics Retail -- 0.1%
101,551(b) Targus Group International, Inc., Tranche A-2 Term Loan,
15.0% (15.0% PIK 0.0% cash), 12/31/19 $ 100,536
304,656(b) Targus Group International, Inc., Tranche B Term Loan,
15.0% (15.0% PIK 0.0% cash), 12/31/19 240,678
----------------
$ 341,214
--------------------------------------------------------------------------------------------------------
Home Improvement Retail -- 0.5%
1,431,152 Apex Tool Group LLC, Term Loan, 4.5%, 1/31/20 $ 1,412,666
--------------------------------------------------------------------------------------------------------
Specialty Stores -- 1.2%
404,040 Dollar Tree, Inc., Term B-3 Loan, 3.063%, 7/6/22 $ 408,586
1,488,750 PetCo Animal Supplies, Inc., Tranche B-1 Term Loan,
5.0%, 1/26/23 1,501,776
1,970,000 PetSmart, Inc., Tranche B-2 Loan, 4.0%, 3/11/22 1,977,947
----------------
$ 3,888,309
----------------
Total Retailing $ 9,061,586
--------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 1.4%
Semiconductor Equipment -- 0.1%
500,818 Entegris, Inc., Tranche B Term Loan, 3.5%, 4/30/21 $ 504,053
--------------------------------------------------------------------------------------------------------
Semiconductors -- 1.3%
1,012,079 Avago Technologies Cayman Holdings, Ltd., Term B-3
Loan, 3.538%, 2/1/23 $ 1,022,436
1,738,160 M/A-COM Technology Solutions Holdings, Inc., Initial
Term Loan, 4.628%, 5/7/21 1,757,715
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 29
Schedule of Investments | 11/30/16 (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Semiconductors -- (continued)
326,980 Microsemi Corp., Term B Loan, 3.75%, 1/15/23 $ 329,670
850,000 ON Semiconductor Corp., 2016 New Replacement
Term Loan, 3.783%, 3/31/23 855,667
----------------
$ 3,965,488
----------------
Total Semiconductors & Semiconductor Equipment $ 4,469,541
--------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 9.3%
Application Software -- 2.6%
943,107 Applied Systems, Inc., First Lien Term Loan,
4.0%, 1/25/21 $ 947,331
977,215 Applied Systems, Inc., Second Lien Term Loan,
7.5%, 1/24/22 986,579
1,016,482 Infor (US), Inc., Tranche B-5 Term Loan, 3.75%, 6/3/20 1,016,084
525,000 Quest Software US Holdings, Inc., Initial Term Loan,
7.0%, 10/31/22 525,328
1,714,134 STG-Fairway Acquisitions, Inc., First Lien Term Loan,
6.25%, 6/30/22 1,681,994
1,404,713 Verint Systems, Inc., Tranche B Incremental Term Loan,
3.507%, 9/6/19 1,415,072
1,372,205 VF Holding Corp., First Lien Initial Term Loan,
4.75%, 6/30/23 1,378,423
----------------
$ 7,950,811
--------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 1.1%
987,308 First Data Corp., 2021C New Dollar Term Loan,
3.584%, 3/24/21 $ 996,976
1,632,668 First Data Corp., 2022B New Dollar Term Loan,
4.334%, 7/8/22 1,641,740
748,125 WEX, Inc., Term B Loan, 4.25%, 6/30/23 756,619
----------------
$ 3,395,335
--------------------------------------------------------------------------------------------------------
Home Entertainment Software -- 0.6%
600,000(l) Greeneden US Holdings II LLC (Genesys
Telecommunications Laboratories, Inc.), Term
Loan B, 11/17/23 $ 603,125
1,244,651 MA Financeco LLC, Initial Tranche B-2 Term Loan,
4.5%, 11/19/21 1,256,320
----------------
$ 1,859,445
--------------------------------------------------------------------------------------------------------
Internet Software & Services -- 1.3%
978,581 Avast Software BV, Initial Dollar Term Loan,
5.0%, 9/30/22 $ 988,245
1,011,875 Match Group, Inc., Term B-1 Loan, 7.0%, 11/16/22 1,021,994
1,650,000 Rackspace Hosting, Inc., First Lien Term B Loan,
5.0%, 11/3/23 1,664,584
The accompanying notes are an integral part of these financial statements.
30 Pioneer Floating Rate Trust | Annual Report | 11/30/16
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Internet Software & Services -- (continued)
442,739 Zayo Group LLC (Zayo Capital, Inc.), Term Loan,
3.75%, 5/6/21 $ 444,768
----------------
$ 4,119,591
--------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 2.8%
780,488 Booz Allen Hamilton, Inc., New Refinancing Tranche B
Term Loan, 3.312%, 6/30/21 $ 788,780
3,421,250 Evergreen Skills Lux S.a.r.l., First Lien Initial Term Loan,
5.837%, 4/28/21 3,172,354
1,000,000 Evergreen Skills Lux S.a.r.l., Second Lien Initial Term
Loan, 9.337%, 4/28/22 749,583
475,000(l) Kronos, Inc., First Lien Initial Term Loan, 11/1/23 476,396
700,000 Rocket Software, Inc., Second Lien Term Loan,
10.5%, 10/14/24 704,813
492,006 Science Applications International Corp., Incremental
Tranche B Loan, 3.438%, 5/4/22 496,311
1,361,250 Sitel Worldwide Corp., First Lien Term B-1 Loan,
6.5%, 9/18/21 1,354,019
843,750 TaxACT, Inc. (H.D. Vest, Inc.), Initial Term Loan,
7.0%, 1/3/23 850,078
----------------
$ 8,592,334
--------------------------------------------------------------------------------------------------------
Systems Software -- 0.9%
399,000 EZE Software Group LLC, First Lien 2016 Incremental
Term Loan, 4.5%, 4/4/20 $ 399,748
1,246,313 MSC.Software Corp., Term Loan, 5.0%, 5/29/20 1,247,870
1,241,880 Rovi Solutions Corp., Term B Loan, 3.75%, 7/2/21 1,248,089
----------------
$ 2,895,707
----------------
Total Software & Services $ 28,813,223
--------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 3.6%
Communications Equipment -- 0.5%
902,050 Audio Visual Services Group, Inc., First Lien Term
Loan, 4.5%, 1/25/21 $ 905,432
495,000 Commscope, Inc., Tranche 5 Term Loan, 3.25%,
12/29/22 498,397
----------------
$ 1,403,829
--------------------------------------------------------------------------------------------------------
Electronic Components -- 0.6%
653,600 Generac Power Systems, Inc., 2016 New Term Loan,
3.596%, 5/31/23 $ 655,643
1,206,625 Mirion Technologies (Finance) LLC (Mirion Technologies,
Inc.), First Lien Initial Term Loan, 5.75%, 3/31/22 1,195,313
----------------
$ 1,850,956
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 31
Schedule of Investments | 11/30/16 (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.6%
1,889,744 4L Technologies, Inc. (fka Clover Holdings, Inc.), Term
Loan, 7.0%, 5/8/20 $ 1,790,532
--------------------------------------------------------------------------------------------------------
Technology Distributors -- 1.1%
794,915 CDW LLC (fka CDW Corp.), Term Loan, 3.0%, 8/17/23 $ 799,386
1,378,867 Deltek, Inc., First Lien Term Loan, 5.0%, 6/25/22 1,387,313
117,067 SS&C European Holdings S.a.r.l., Term B-2 Loan,
4.0%, 7/8/22 118,123
1,014,583 SS&C Technologies, Inc., Term B-1 Loan, 4.0%, 7/8/22 1,023,732
----------------
$ 3,328,554
--------------------------------------------------------------------------------------------------------
Technology Hardware, Storage & Peripherals -- 0.8%
1,250,000 Dell International LLC, Term Loan B, 4.0%, 9/7/23 $ 1,262,305
560,000 Diebold, Inc., Dollar Term B Loan, 5.25%, 11/6/23 567,175
798,000 Western Digital Corp., US Term B-1 Loan, 4.5%, 4/29/23 808,331
----------------
$ 2,637,811
----------------
Total Technology Hardware & Equipment $ 11,011,682
--------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.1%
Integrated Telecommunication Services -- 1.1%
1,231,250 GCI Holdings, Inc., Term Loan, 3.75%, 2/2/22 $ 1,233,559
1,000,000 Level 3 Financing, Inc., Tranche B 2022 Term Loan,
3.5%, 5/31/22 1,006,146
411,213 Securus Technologies Holdings, Inc., First Lien Initial
Term Loan, 4.75%, 4/30/20 406,973
616,900 Windstream Services LLC (fka Windstream Corp.),
2016 Tranche B-6 Term Loan, 4.75%, 3/29/21 620,177
----------------
$ 3,266,855
--------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.0%
2,526,479 Altice US Finance I Corp., 2016 Refinancing Term
Loan, 3.882%, 1/15/25 $ 2,539,112
720,343 Intelsat Jackson Holdings SA, Tranche B-2 Term
Loan, 3.75%, 6/30/19 695,645
----------------
$ 3,234,757
----------------
Total Telecommunication Services $ 6,501,612
--------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 4.3%
Airlines -- 2.7%
490,000 Air Canada, Term Loan, 3.614%, 10/6/23 $ 492,756
2,910,656 American Airlines, Inc., 2015 New Term Loan,
3.25%, 6/27/20 2,923,617
2,100,000 American Airlines, Inc., Replacement Class B Term
Loan, 3.25%, 4/28/23 2,107,220
1,443,750 Delta Air Lines, Inc., 2014 Term B-1 Loan,
3.25%, 10/18/18 1,457,466
The accompanying notes are an integral part of these financial statements.
32 Pioneer Floating Rate Trust | Annual Report | 11/30/16
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Airlines -- (continued)
241,250 United Air Lines, Inc. (fka Continental Airlines, Inc.),
Class B Term Loan, 3.25%, 4/1/19 $ 242,381
1,254,938 US Airways, Inc., Tranche B-1 Term Loan, 3.5%, 5/23/19 1,258,299
----------------
$ 8,481,739
--------------------------------------------------------------------------------------------------------
Marine -- 0.7%
1,678,764 Commercial Barge Line Co., Initial Term Loan,
9.75%, 11/12/20 $ 1,586,433
566,748 Navios Maritime Partners LP, Term Loan, 5.25%, 6/27/18 532,743
----------------
$ 2,119,176
--------------------------------------------------------------------------------------------------------
Trucking -- 0.9%
403,844 PODS LLC, First Lien Initial Term Loan, 4.5%, 2/2/22 $ 405,275
778,000 Syncreon Global Finance, Inc., Term Loan, 5.25%,
10/28/20 703,442
1,616,935 YRC Worldwide, Inc., Initial Term Loan, 8.0%, 2/13/19 1,544,173
----------------
$ 2,652,890
----------------
Total Transportation $ 13,253,805
--------------------------------------------------------------------------------------------------------
UTILITIES -- 4.0%
Electric Utilities -- 2.3%
1,380,400 APLH Holdings, Ltd., Partnership, Term Loan,
6.0%, 4/13/23 $ 1,388,165
2,176,875 Calpine Construction Finance Co., LP, Term B-1 Loan,
3.09%, 5/3/20 2,160,004
919,823 ExGen Renewables LLC, Term Loan, 5.25%, 2/8/21 925,285
1,725,000(l) Talen Energy Supply LLC, Term Loan B, 10/18/23 1,736,140
473,873 TPF II Power LLC (TPF II Covert Midco LLC), Term
Loan, 5.0%, 10/2/21 475,653
102,143 Vistra Operations Co., LLC (fka Tex Operations Co.,
LLC), Initial Term C Loan, 5.0%, 8/4/23 103,005
447,857 Vistra Operations Co., LLC (fka Tex Operations Co.,
LLC), Initial Term Loan, 5.0%, 8/4/23 451,636
----------------
$ 7,239,888
--------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy Traders -- 1.3%
1,639,250 Calpine Corp., Term Loan B, 3.59%, 5/27/22 $ 1,645,141
1,041,923 Dynegy, Inc., Tranche B-2 Term Loan, 4.0%, 4/23/20 1,043,334
1,204,582 NRG Energy, Inc., Term Loan, 3.5%, 6/30/23 1,209,727
----------------
$ 3,898,202
--------------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.1%
436,582 EFS Cogen Holdings I LLC, Term B Advance,
5.25%, 6/28/23 $ 441,949
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 33
Schedule of Investments | 11/30/16 (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Water Utilities -- 0.3%
842,834 WTG Holdings III Corp., First Lien Term Loan,
4.75%, 1/15/21 $ 844,414
----------------
Total Utilities $ 12,424,453
--------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE
LOAN INTERESTS
(Cost $412,858,246) $ 409,469,708
--------------------------------------------------------------------------------------------------------
COLLATERALIZED LOAN OBLIGATIONS -- 1.8%
of Net Assets
BANKS -- 1.8%
Diversified Banks -- 0.6%
1,000,000(a) Primus, Ltd., Series 2007-2A, Class D, 3.28%,
7/15/21 (144A) $ 971,059
951,289(a) Stanfield McLaren, Ltd., Series 2007-1A, Class B2L,
5.437%, 2/27/21 (144A) 936,096
----------------
$ 1,907,155
--------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.2%
1,000,000(a) ACA, Ltd., Series 2007-1A, Class D, 3.23%,
6/15/22 (144A) $ 985,904
700,000(a) NCF Dealer Floorplan Master Trust, Series 2016-1A,
Class C, 9.062%, 3/21/22 (144A) 703,902
2,000,000(a) Stone Tower, Ltd., Series 2007-6A, Class C, 2.23%,
4/17/21 (144A) 1,956,815
----------------
$ 3,646,621
----------------
Total Banks $ 5,553,776
--------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED LOAN OBLIGATIONS
(Cost $5,236,417) $ 5,553,776
--------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES -- 5.5%
of Net Assets
AUTOMOBILES & COMPONENTS -- 0.3%
Auto Parts & Equipment -- 0.3%
1,000,000 International Automotive Components Group SA,
9.125%, 6/1/18 (144A) $ 902,500
----------------
Total Automobiles & Components $ 902,500
--------------------------------------------------------------------------------------------------------
BANKS -- 0.4%
Diversified Banks -- 0.4%
1,100,000(e)(f) BNP Paribas SA, 7.625% (144A) $ 1,137,125
----------------
Total Banks $ 1,137,125
--------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.3%
Trading Companies & Distributors -- 0.3%
900,000 United Rentals North America, Inc., 4.625%, 7/15/23 $ 927,000
----------------
Total Capital Goods $ 927,000
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Floating Rate Trust | Annual Report | 11/30/16
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
ENERGY -- 0.4%
Oil & Gas Exploration & Production -- 0.4%
500,000 Gulfport Energy Corp., 6.625%, 5/1/23 $ 522,500
625,000 WPX Energy, Inc., 7.5%, 8/1/20 659,375
----------------
Total Energy $ 1,181,875
--------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.3%
Health Care Facilities -- 0.3%
201,000 CHS/Community Health Systems, Inc., 5.125%, 8/15/18 $ 195,975
1,000,000 CHS/Community Health Systems, Inc., 6.875%, 2/1/22 666,875
----------------
Total Health Care Equipment & Services $ 862,850
--------------------------------------------------------------------------------------------------------
INSURANCE -- 1.5%
Reinsurance -- 1.5%
500,000(a) Alamo Re, Ltd., 6.257%, 6/7/18 (144A) (Cat Bond) $ 518,550
300,000(g)(h) Artex Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 6/15/17 296,322
400,000(g)(h) Berwick Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 2/1/18 448,606
250,000(g)(h) Carnoustie Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 11/30/20 278,901
250,000(g)(h) Gleneagles Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 11/30/20 288,500
400,000(g)(h) Gullane Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 11/30/20 429,720
250,000(a) Kilimanjaro Re, Ltd., Series 2015-1, Class D, 9.727%,
12/6/19 (144A) (Cat Bond) 262,325
250,000(a) Kilimanjaro Re, Ltd., Series 2015-1, Class E, 7.227%,
12/6/19 (144A) (Cat Bond) 260,425
250,000(g)(h) Madison Re, Variable Rate Notes, 3/31/19 260,800
250,000(a) Mythen Re, Ltd., Series 2012-2, Class A, 9.098%,
1/5/17 (144A) (Cat Bond) 251,425
400,000(g)(h) Pangaea Re Segregated Account (Artex SAC, Ltd.),
Series 2016-1, Variable Rate Notes, 2/1/20 448,210
350,000(i) Resilience Re, Ltd., 4/7/17 (Cat Bond) 347,060
400,000(g)(h) St. Andrews Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 2/1/18 457,060
----------------
Total Insurance $ 4,547,904
--------------------------------------------------------------------------------------------------------
MATERIALS -- 0.7%
Commodity Chemicals -- 0.4%
1,230,000 Rain CII Carbon LLC / CII Carbon Corp., 8.0%,
12/1/18 (144A) $ 1,217,700
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 35
Schedule of Investments | 11/30/16 (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 0.3%
1,000,000(a) Ardagh Packaging Finance Plc / Ardagh Holdings
USA, Inc., 4.156%, 5/15/21 (144A) $ 1,020,000
----------------
Total Materials $ 2,237,700
--------------------------------------------------------------------------------------------------------
MEDIA -- 0.1%
Broadcasting -- 0.1%
300,000 CSC Holdings LLC, 5.5%, 4/15/27 (144A) $ 296,062
----------------
Total Media $ 296,062
--------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.2%
Semiconductors -- 0.2%
750,000 Micron Technology, Inc., 5.25%, 8/1/23 (144A) $ 740,625
----------------
Total Semiconductors & Semiconductor Equipment $ 740,625
--------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.3%
Internet Software & Services -- 0.3%
920,000 j2 Cloud Services, Inc., 8.0%, 8/1/20 $ 954,500
----------------
Total Software & Services $ 954,500
--------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.7%
Integrated Telecommunication Services -- 0.7%
1,000,000 CenturyLink, Inc., 6.45%, 6/15/21 $ 1,031,875
1,000,000 Frontier Communications Corp., 10.5%, 9/15/22 1,032,500
----------------
Total Telecommunication Services $ 2,064,375
--------------------------------------------------------------------------------------------------------
UTILITIES -- 0.3%
Independent Power Producers & Energy Traders -- 0.3%
1,125,000 NRG Energy, Inc., 6.25%, 7/15/22 $ 1,127,813
----------------
Total Utilities $ 1,127,813
--------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES
(Cost $16,533,399) $ 16,980,329
--------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS --
5.0% of Net Assets
3,270,000(a) U.S. Treasury Notes, 0.659%, 10/31/17 $ 3,274,771
8,980,000(a) U.S. Treasury Notes, 0.681%, 4/30/18 8,992,985
3,365,000(a) U.S. Treasury Notes, 0.763%, 1/31/18 3,374,186
----------------
$ 15,641,942
--------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $15,625,894) $ 15,641,942
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Floating Rate Trust | Annual Report | 11/30/16
--------------------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------------------
EXCHANGE-TRADED FUNDS -- 1.1% of Net Assets
DIVERSIFIED FINANCIALS -- 1.1%
Other Diversified Financial Services -- 1.1%
27,000 iShares iBoxx $ High Yield Corporate Bond ETF $ 2,312,550
42,000 PowerShares Senior Loan Portfolio 971,880
----------------
Total Diversified Financials $ 3,284,430
--------------------------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED FUNDS
(Cost $3,179,147) $ 3,284,430
--------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.3% of Net Assets
CONSUMER DURABLES & APPAREL -- 0.1%
Homebuilding -- 0.1%
31,348(j) WAICCS Las Vegas 3 LLC $ 374,922
----------------
Total Consumer Durables & Apparel $ 374,922
--------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.1%
Education Services -- 0.1%
14,548(j) Cengage Learning Acquisitions, Inc. $ 283,686
----------------
Total Consumer Services $ 283,686
--------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.0%+
Health Care Technology -- 0.0%+
209,625(c)(j) Medical Card System, Inc. $ 2,096
----------------
Total Health Care Equipment & Services $ 2,096
--------------------------------------------------------------------------------------------------------
INDUSTRIALS -- 0.0%+
Diversified Support Services -- 0.0%+
31(j) IAP Worldwide Services, Inc. $ 42,515
----------------
Total Industrials $ 42,515
--------------------------------------------------------------------------------------------------------
MEDIA -- 0.0%+
Publishing -- 0.0%+
497(j) Solocal Group SA $ 1,633
----------------
Total Media $ 1,633
--------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 0.0%+
Biotechnology -- 0.0%+
2,454(j) Progenics Pharmaceuticals, Inc. $ 21,963
----------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 21,963
--------------------------------------------------------------------------------------------------------
RETAILING -- 0.0%+
Computer & Electronics Retail -- 0.0%+
91,346(c)(j) Targus Cayman SubCo., Ltd. $ 88,606
----------------
Total Retailing $ 88,606
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 37
Schedule of Investments | 11/30/16 (continued)
--------------------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.1%
Air Freight & Logistics -- 0.1%
710(j) CEVA Holdings LLC $ 137,275
----------------
Total Transportation $ 137,275
--------------------------------------------------------------------------------------------------------
UTILITIES -- 0.0%+
Independent Power Producers & Energy
Traders -- 0.0%+
775 NRG Energy, Inc. $ 8,789
----------------
Total Utilities $ 8,789
--------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $2,069,782) $ 961,485
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($)
--------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 7.5% of
Net Assets
CERTIFICATE OF DEPOSIT -- 0.4%
1,145,000 Sumitomo Mitsui Bank, 1.26%, 4/3/17 $ 1,146,101
--------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.5%
1,525,000 $1,525,000 ScotiaBank, 0.28%, dated 11/30/16,
plus accrued interest on 12/1/16 collateralized
by the following:
$2,439 Freddie Mac Giant, 4.0%, 5/1/42, $345,622
Federal National Mortgage Association, 3.5-4.0%,
11/1/41-4/1/43, $1,207,451 Government National
Mortgage Association, 4.0%, 6/20/46. $ 1,525,000
--------------------------------------------------------------------------------------------------------
TREASURY BILLS -- 6.6%
5,665,000(i) U.S. Treasury Bill, 12/1/16 $ 5,665,000
3,410,000(i) U.S. Treasury Bill, 1/5/17 3,408,963
7,000,000(i) U.S. Treasury Bill, 1/12/17 6,997,445
4,560,000(i) U.S. Treasury Bill, 1/19/17 4,557,912
----------------
$ 20,629,320
--------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $23,299,220) $ 23,300,421
--------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 153.6%
(Cost -- $478,802,105) (k) $ 475,192,091
--------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (53.6)% $ (165,883,604)
--------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 309,308,487
========================================================================================================
The accompanying notes are an integral part of these financial statements.
38 Pioneer Floating Rate Trust | Annual Report | 11/30/16
REIT Real Estate Investment Trust.
(144A) Security is exempt from registration under Rule 144A of the
Securities Act of 1933. Such securities may be resold normally to
qualified institutional buyers in a transaction exempt from
registration. At November 30, 2016, the value of these securities
amounted to $12,160,513, or 3.9% of net assets.
(Cat Bond) Catastrophe or event-linked bond. At November 30, 2016, the value of
these securities amounted to $1,639,785 or 0.5% of net assets. See
Notes to Financial Statements -- Note 1F.
+ Amount rounds to less than 0.1%.
* Senior secured floating rate loan interests in which the Trust
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
interest rate shown is the rate accruing at November 30, 2016.
(a) Floating rate note. The rate shown is the coupon rate at November
30, 2016.
(b) Payment in Kind (PIK) security which may pay interest in the form of
additional principal amount.
(c) Security is valued using fair value methods (other than prices
supplied by independent pricing services). See Notes to Financial
Statements -- Note 1A.
(d) Security is in default.
(e) The interest rate is subject to change periodically. The interest
rate shown is the rate at November 30, 2016.
(f) Security is perpetual in nature and has no stated maturity date.
(g) Structured reinsurance investment. At November 30, 2016, the value
of these securities amounted to $2,908,119, or 0.9% of net assets.
See Notes to Financial Statements -- Note 1F.
(h) Rate to be determined.
(i) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(j) Non-income producing.
(k) At November 30, 2016, the net unrealized depreciation on investments
based on cost for federal tax purposes of $479,005,659 was as
follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 5,146,099
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (8,959,667)
------------
Net unrealized depreciation $ (3,813,568)
============
(l) This term loan will settle after November 30, 2016, at which time
the interest rate will be determined.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 39
Schedule of Investments | 11/30/16 (continued)
Purchases and sales of securities (excluding temporary cash investments) for the
year ended November 30, 2016 were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government $ 20,901,783 $ 8,087,148
Other Long-Term Securities $ 217,820,969 $ 221,229,769
The Trust is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Pioneer Investment
Management, Inc. (PIM) serves as the 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 November 30, 2016, the
Trust engaged in purchases and sales pursuant to these procedures amounting to
$2,829,706 and $0, respectively resulting in a gain of $0.
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
------------------------------------------------------------------------------------------------------------------
Premiums
Notional Obligation Credit Expiration Paid/ Unrealized
Principal ($)(1) Exchange Entity/Index Coupon Rating(2) Date (Received) Appreciation
------------------------------------------------------------------------------------------------------------------
1,078,000 Chicago Markit CDX North 5.00% B+ 6/20/20 $ 64,893 $ 25,954
Mercantile America High Yield
Exchange Index Series 24
1,103,850 Chicago Markit CDX North 5.00% B+ 12/20/20 (10,498) 88,078
Mercantile America High Yield
Exchange Index Series 25
------------------------------------------------------------------------------------------------------------------
$ 54,395 $ 114,032
==================================================================================================================
(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 Trust's investments.
These inputs are summarized in the three broad levels 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 risks, etc.). See Notes to Financial Statements -- Note
1A.
Level 3 -- significant unobservable inputs (including the Trust'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.
40 Pioneer Floating Rate Trust | Annual Report | 11/30/16
The following is a summary of the inputs used as of November 30, 2016, in
valuing the Trust's investments.
--------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------
Senior Secured Floating
Rate Loan Interests
Health Care Equipment
& Services
Health Care Technology $ -- $ 2,881,808 $ 731,754 $ 3,613,562
All Other Senior Secured Floating
Rate Loan Interests -- 405,856,146 -- 405,856,146
Collateralized Loan Obligations -- 5,553,776 -- 5,553,776
Corporate Bonds & Notes
Insurance
Reinsurance -- 1,292,725 3,255,179 4,547,904
All Other Corporate Bonds
& Notes -- 12,432,425 -- 12,432,425
U.S. Government and
Agency Obligations -- 15,641,942 -- 15,641,942
Exchange-Traded Funds 3,284,430 -- -- 3,284,430
Common Stocks
Consumer Durables
& Apparel
Homebuilding -- 374,922 -- 374,922
Consumer Services
Education Services -- 283,686 -- 283,686
Health Care Equipment
& Services
Health Care Technology -- -- 2,096 2,096
Industrials
Diversified Support
Services -- 42,515 -- 42,515
Retailing
Computer & Electronics
Retail -- -- 88,606 88,606
Transportation
Air Freight & Logistics -- 137,275 -- 137,275
All Other Common Stocks 32,385 -- -- 32,385
Certificate of Deposit -- 1,146,101 -- 1,146,101
Repurchase Agreement -- 1,525,000 -- 1,525,000
Treasury Bills -- 20,629,320 -- 20,629,320
--------------------------------------------------------------------------------------------
Total Investments in
Securities $ 3,316,815 $467,797,641 $ 4,077,635 $475,192,091
============================================================================================
Other Financial Instruments
Unrealized appreciation
on centrally cleared
credit default swaps $ -- $ 114,032 $ -- $ 114,032
--------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ -- $ 114,032 $ -- $ 114,032
--------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 41
Schedule of Investments | 11/30/16 (continued)
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
---------------------------------------------------------------------------------------------------------------------------------
Change in
Balance Realized unrealized Accrued Changes Balance
as of gain appreciation discounts/ Between as of
11/30/15 (loss)(1) (depreciation)(2) Purchases Sales(3) premiums Level 3* 11/30/16
---------------------------------------------------------------------------------------------------------------------------------
Senior Secured
Floating Rate
Loan Interests
Health Care
Equipment &
Services
Health Care
Technology $ -- $ -- $ (285,012) $ 976,680 $ -- $ 40,086 $ -- $ 731,754
Corporate Bonds
& Notes
Insurance
Reinsurance 1,197,861 -- 174,396 2,939,588 (1,090,200) 33,534 -- 3,255,179
Common Stocks
Health Care
Equipment &
Services
Health Care
Technology -- -- -- 2,096 -- -- -- 2,096
Retailing
Computer &
Electronics
Retail -- -- (231,105) 319,711 -- -- -- 88,606
---------------------------------------------------------------------------------------------------------------------------------
Total $ 1,197,861 $ -- $ (341,721) $4,238,075 $ (1,090,200) $ 73,620 $ -- $ 4,077,635
=================================================================================================================================
(1) Realized gain (loss) on these securities is included in the 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) from investments in
the Statement of Operations.
(3) Amount represents return of capital on Insurance-Linked Securities.
* Transfers are calculated on the beginning of period value. For the year
ended November 30, 2016, there were no transfers between Levels 1, 2 and 3.
Net change in unrealized depreciation of Level 3 investments still held and
considered Level 3 at November 30, 2016: $(234,061).
The accompanying notes are an integral part of these financial statements.
42 Pioneer Floating Rate Trust | Annual Report | 11/30/16
Statement of Assets and Liabilities | 11/30/16
ASSETS:
Investments in securities, at value (cost $478,802,105) $ 475,192,091
Cash 1,046,690
Foreign currencies, at value (cost $75,046) 60,150
Restricted cash* 198,060
Receivables --
Investment securities sold 2,469,145
Interest 2,306,733
Dividends 33,525
Variation margin for centrally cleared swap contracts 3,957
Unrealized appreciation on unfunded loan commitments 2,741
------------------------------------------------------------------------------------
Total assets $ 481,313,092
------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Credit Agreement $ 143,450,000
Investment securities purchased 27,982,861
Trustees' fees 2,976
Administration fee 128,307
Interest expense 1,336
Due to affiliates 250,824
Accrued expenses 188,301
------------------------------------------------------------------------------------
Total liabilities $ 172,004,605
------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 437,566,800
Undistributed net investment income 1,539,947
Accumulated net realized loss on investments, swap contracts, and
foreign currency transactions (126,281,626)
Net unrealized depreciation on investments (3,610,014)
Unrealized appreciation on swap contracts 114,032
Unrealized appreciation on unfunded loan commitments 2,741
Net unrealized depreciation on other assets and liabilities
denominated in foreign currencies (23,393)
------------------------------------------------------------------------------------
Net assets $ 309,308,487
------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Based on $309,308,487 / 24,738,174 shares $ 12.50
====================================================================================
* Represents restricted cash deposited at the custodian and/or counterparty
for derivative contracts.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 43
Statement of Operations
For the Year Ended 11/30/16
INVESTMENT INCOME:
Interest $ 24,859,569
Dividends 170,931
Loan facility and other income 69,943
---------------------------------------------------------------------------------------------------
Total investment income $ 25,100,443
---------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 3,132,041
Administrative expense 248,306
Transfer agent fees 7,010
Shareholder communications expense 21,976
Custodian fees 77,700
Professional fees 118,236
Printing expense 9,347
Trustees' fees 17,051
Pricing fees 49,080
Interest expense 1,924,262
Miscellaneous 341,058
---------------------------------------------------------------------------------------------------
Total expenses $ 5,946,067
---------------------------------------------------------------------------------------------------
Net investment income $ 19,154,376
===================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAP CONTRACTS, UNFUNDED LOAN COMMITMENTS, AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (10,374,171)
Swap contracts 71,161
Other assets and liabilities denominated
in foreign currencies (494) $(10,303,504)
---------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 13,798,591
Swap contracts 119,885
Unfunded loan commitments (6,130)
Other assets and liabilities denominated
in foreign currencies 251 $ 13,912,597
---------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments,
swap contracts, unfunded loan commitments, and
foreign currency transactions $ 3,609,093
---------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 22,763,469
===================================================================================================
The accompanying notes are an integral part of these financial statements.
44 Pioneer Floating Rate Trust | Annual Report | 11/30/16
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------------
Year Year
Ended Ended
11/30/16 11/30/15
--------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 19,154,376 $ 18,826,722
Net realized gain (loss) on investments, swap contracts,
and foreign currency transactions (10,303,504) (8,429,026)
Change in net unrealized appreciation (depreciation) on
investments, swap contracts, unfunded loan commitments,
and foreign currency transactions 13,912,597 (6,084,107)
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 22,763,469 $ 4,313,589
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income ($0.72 and $0.70 per share, respectively) $ (17,811,485) $ (17,193,031)
--------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (17,811,485) $ (17,193,031)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 4,951,984 $ (12,879,442)
NET ASSETS:
Beginning of year 304,356,503 317,235,945
--------------------------------------------------------------------------------------------------
End of year $ 309,308,487 $ 304,356,503
--------------------------------------------------------------------------------------------------
Undistributed net investment income $ 1,539,947 $ 1,382,691
==================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 45
Statement of Cash Flows
For the Year Ended 11/30/16
Cash Flows From Operating Activities:
Net increase in net assets resulting from operations $ 22,763,469
-------------------------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets resulting from operations to
net cash and foreign currencies from operating activities:
Purchases of investment securities $ (226,356,853)
Proceeds from disposition and maturity of investment securities 236,126,029
Net purchases of temporary cash investments (15,209,220)
Net accretion and amortization of discount/premium on investment securities (1,288,922)
Change in unrealized appreciation on investments (13,798,591)
Change in unrealized appreciation on unfunded loan commitments 6,130
Change in unrealized depreciation on centrally cleared credit default
swap contracts (5,853)
Change in unrealized appreciation on foreign currency (127)
Net realized loss on investments 10,374,171
Net premiums received on swap contracts 65,554
Increase in restricted cash (198,060)
Decrease in swap collateral 75,000
Decrease in interest receivable 254,344
Decreased in due to affiliates (12,813)
Increase in trustees' fee payable 282
Increase in administration fees payable 26,078
Decrease in cash due to broker (58,228)
Decrease in accrued expenses payable (28,618)
Decrease in interest expense payable (24,003)
Increase in variation margin for centrally cleared swap contracts (2,501)
-------------------------------------------------------------------------------------------------
Net cash and foreign currencies from operating activities $ 12,707,268
-------------------------------------------------------------------------------------------------
Cash Flows Used in Financing Activities:
Payments on borrowings $ (7,000,000)
Distributions to shareowners (17,811,485)
-------------------------------------------------------------------------------------------------
Net cash and foreign currencies used in financing activities $ (24,811,485)
-------------------------------------------------------------------------------------------------
Effect of Foreign Exchange Fluctuations on Cash:
Effect of foreign exchange fluctuations on cash $ 127
-------------------------------------------------------------------------------------------------
Cash and Foreign Currencies:
Beginning of the year $ 13,210,930
-------------------------------------------------------------------------------------------------
End of the year $ 1,106,840
-------------------------------------------------------------------------------------------------
Cash Flow Information:
Cash paid for interest $ 1,948,265
=================================================================================================
The accompanying notes are an integral part of these financial statements.
46 Pioneer Floating Rate Trust | Annual Report | 11/30/16
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/16 11/30/15 11/30/14 11/30/13 11/30/12
------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 12.30 $ 12.82 $ 13.06 $ 13.06 $ 12.45
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 0.77 $ 0.76 $ 0.75 $ 1.01 $ 1.19
Net realized and unrealized gain (loss) on investments,
swap contracts, unfunded loan commitments, and
foreign currency transactions 0.15 (0.58) (0.19) 0.01 0.55
------------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareowners from:
Net investment income $ -- $ -- $ (0.00)(b) $ (0.12) $ (0.12)
------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.92 $ 0.18 $ 0.56 $ 0.90 $ 1.62
------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income and previously undistributed net
investment income $ (0.72) $ (0.70) $ (0.80)* $ (0.90) $ (1.01)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.20 $ (0.52) $ (0.24) $ -- $ 0.61
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.50 $ 12.30 $ 12.82 $ 13.06 $ 13.06
------------------------------------------------------------------------------------------------------------------------------
Market value, end of period $ 11.78 $ 10.83 $ 11.36 $ 12.41 $ 13.41
==============================================================================================================================
Total return at net asset value (c) 8.31% 1.96% 4.74% 7.07% 14.26%
Total return at market value (c) 15.92% 1.31% (2.32)% (0.84)% 15.66%
Ratios to average net assets of shareowners:
Total expenses plus interest expense (d)(e) 1.96% 1.81% 1.80% 1.47% 1.58%
Net investment income before preferred share distributions 6.32% 6.00% 5.73% 7.70% 9.24%
Preferred share distributions --% --% 0.01% 0.94% 0.90%
Net investment income available to shareowners 6.32% 6.00% 5.72% 6.76% 8.34%
Portfolio turnover 52% 38% 61% 63% 63%
Net assets, end of period (in thousands) $ 309,308 $ 304,357 $317,236 $ 323,127 $322,714
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 47
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/16 11/30/15 11/30/14 11/30/13 11/30/12
------------------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) $ -- $ -- $ --(f) $ 182,450 $182,450
Asset coverage per preferred share, end of period $ -- $ -- $ --(f) $ 69,280 $ 69,222
Average market value per preferred share (g) $ -- $ -- $ --(f) $ 25,000 $ 25,000
Liquidation value, including dividends payable, per preferred
share $ -- $ -- $ --(f) $ 25,003 $ 25,003
Total amount of debt outstanding (in thousands) $ 143,450 $ 150,450 $155,450 $ -- $ --
Asset coverage per indebtedness (in thousands) $ 3,156 $ 3,023 $ 3,041 $ -- $ --
==============================================================================================================================
* The amount of distributions made to shareowners during the year were in
excess of the net investment income earned by the Trust during the year.
The Trust has accumulated undistributed net investment income which is part
of the Trust's NAV. A portion of the accumulated net investment income was
distributed to shareowners during the period. A decrease in distributions
may have a negative effect on the market value of the Trust's shares.
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Amount rounds to less than $(0.005) per share.
(c) Total investment return is calculated assuming a purchase of common shares
at the current net asset value or market value on the first day and a sale
at the current net asset value or market value on the last day of the
periods reported. Dividends and distributions, if any, are assumed for
purposes of this calculation to be reinvested at prices obtained under the
Trust's dividend reinvestment plan. Total investment return does not
reflect brokerage commissions. Past performance is not a guarantee of
future results.
(d) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(e) Includes interest expense of 0.63%, 0.51%, 0.49%, 0.00%, and 0.00%,
respectively.
(f) Preferred shares were redeemed during the period.
(g) Market value is redemption value without an active market.
The accompanying notes are an integral part of these financial statements.
48 Pioneer Floating Rate Trust | Annual Report | 11/30/16
Notes to Financial Statements | 11/30/16
1. Organization and Significant Accounting Policies
Pioneer Floating Rate Trust (the Trust) was organized as a Delaware statutory
trust on October 6, 2004. Prior to commencing operations on December 28, 2004,
the Trust had no operations other than matters relating to its organization and
registration as a closed-end management investment company under the Investment
Company Act of 1940, as amended. The Trust is a diversified fund. The investment
objective of the Trust is to provide a high level of current income and the
Trust may, as a secondary objective, also seek preservation of capital to the
extent consistent with its investment objective of high current income.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles (U.S. GAAP) that require the management
of the Trust 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 Trust 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 Trust in the preparation of its financial
statements:
A. Security Valuation
The net asset value of the Trust 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 third party pricing services are unable to supply
prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 49
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 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.
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 Trust's shares
are determined as of such times. The Trust may use a fair value model
developed by an independent pricing service to value non-U.S. equity
securities.
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.
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such funds' net asset value. Repurchase
agreements are valued at par. Cash may include overnight time deposits at
approved financial institutions.
50 Pioneer Floating Rate Trust | Annual Report | 11/30/16
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 Trust's
investment adviser and wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), pursuant to procedures adopted by the Trust'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 Trust may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Trust's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Trust's securities may differ significantly from exchange prices and
such differences could be material.
At November 30, 2016, three 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 pricing
model) representing 0.27% of net assets. The value of these fair valued
securities are $822,456.
B. Investment Income and Transactions
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 Trust 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 an accrual basis.
Dividend and interest income are reported net of unrecoverable foreign
taxes withheld at the applicable country rates.
Discounts and premiums on purchase prices of debt securities are accreted
or amortized, respectively, daily, into interest income on an effective
yield to maturity basis with a corresponding increase or decrease in the
cost basis of the security. Premiums and discounts related to certain
mortgage-backed securities are amortized or accreted in proportion to the
monthly paydowns.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 51
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 Trust 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 price of those securities but are
included with the net realized and unrealized gain or loss on investments.
D. Forward Foreign Currency Contracts
The Trust 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
are recorded in the Trust's financial statements. The Trust records
realized gains and losses at the time a contract is offset by entry into a
closing transaction or extinguished by delivery of the currency. Risks may
arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contracts and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar.
During the year ended November 30, 2016, the Trust did not enter into any
forward foreign currency contracts.
E. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no federal income tax provision is required. As
of November 30, 2016, the Trust 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.
52 Pioneer Floating Rate Trust | Annual Report | 11/30/16
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 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 November 30, 2016, The Trust reclassified $27,976,877 to decrease
paid-in capital, $1,185,635 to decrease undistributed net investment income
and $29,162,512 to decrease accumulated net realized loss on investments to
reflect permanent book/tax differences. These adjustments have no impact on
the net assets or results of operations.
At November 30, 2016, the Trust was permitted to carry forward $1,309,699
of short-term capital losses and $30,753,104 of long-term capital losses
without limitation. Additionally, at November 30, 2016, the Trust had a net
capital loss carry forward of $92,625,503 of which the following amounts
will expire between 2016 and 2019 if not utilized: $62,461,978 in 2017,
$11,415,660 in 2018, and $18,747,865 in 2019. Since unlimited losses are
required to be used first, loss carry forwards that are subject to
expiration may be more likely to expire unused.
The Trust has elected to defer $1,562,106 of long-term capital losses
recognized between June 1, 2016 and November 30, 2016 to its fiscal year
ending November 30, 2017.
The tax character of distributions paid to shareowners during the years
ended November 30, 2016 and November 30, 2015 were as follows:
--------------------------------------------------------------------------------
2016 2015
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $17,811,485 $17,193,031
--------------------------------------------------------------------------------
Total $17,811,485 $17,193,031
================================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at November 30, 2016:
--------------------------------------------------------------------------------
2016
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,826,319
Capital loss carryforward (124,688,306)
Late year loss deferrals (1,562,106)
Other book/tax temporary differences (317,586)
Unrealized depreciation (3,516,634)
--------------------------------------------------------------------------------
Total $(128,258,313)
================================================================================
Pioneer Floating Rate Trust | Annual Report | 11/30/16 53
The difference between book-basis and tax-basis unrealized depreciation is
primarily attributable to the realization for tax purposes of unrealized
gains on investments in passive foreign investment companies, the book/tax
differences in the accrual of income on securities in default, the
difference between book and tax amortization methods and discounts on fixed
income securities.
F. Insurance-Linked Securities (ILS)
The Trust 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 occurs, as defined within the
terms of an event-linked bond, the Trust may lose a portion or all of its
accrued interest and/or principal invested in such event-linked bond. The
Trust 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 Trust to other risks, including but not limited to issuer
(credit) default, adverse regulatory or jurisdictional interpretations and
adverse tax consequences.
The Trust'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 generally 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 Trust
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 Trust's structured
reinsurance investments and therefore the Trust'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 Trust. These securities may be
54 Pioneer Floating Rate Trust | Annual Report | 11/30/16
difficult to purchase, sell or unwind. Illiquid securities also may be
difficult to value. If the Trust is forced to sell an illiquid asset, the
Trust may be forced to sell at a loss.
G. Risks
Information regarding the Trust's principal risks is contained in the
Trust's original offering prospectus, with additional information included
in the Trust's shareowner reports issued from time to time. Please refer to
those documents when considering the Trust's principal risks. At times, the
Trust's investments may represent industries or industry sectors that are
interrelated or have common risks, making the Trust more susceptible to any
economic, political, or regulatory developments or other risks affecting
those industries and sectors.
The value of securities held by the Trust 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.
The Trust invests in below investment grade (high yield) debt securities,
floating rate loans and event-linked bonds sometimes referred to as
"catastrophe" bonds or "insurance-linked" bonds. The Trust may invest in
securities and other obligations of any credit quality, including those
that are rated below investment grade, or are unrated but are determined by
the investment adviser to be of equivalent credit quality. Below investment
grade securities are commonly referred to as "junk bonds" and are
considered speculative with respect to the issuer's capacity to pay
interest and repay principal. Below investment grade securities, including
floating rate loans, involve greater risk of loss, are subject to greater
price volatility, and are less liquid and more difficult to value,
especially during periods of economic uncertainty or change, than higher
rated debt securities. Certain securities in which the Trust invests,
including floating rate loans, once sold, may not settle for an extended
period (for example, several weeks or even longer). The Trust will not
receive its sale proceeds until that time, which may constrain the Trust's
ability to meet its obligations. The Trust may invest in securities of
issuers that are in default or that are in bankruptcy. The value of
collateral, if any, securing a floating rate loan can decline or may be
insufficient to meet the issuer's obligations or may be difficult to
liquidate. No active trading market may exist for many floating rate loans,
and many loans are subject to restrictions on resale. Any secondary market
may be subject to irregular trading activity and extended settlement
periods. The Trust's investments in
Pioneer Floating Rate Trust | Annual Report | 11/30/16 55
certain foreign markets or countries with limited developing markets may
subject the Trust to a greater degree of risk than in a developed market.
These risks include disruptive political or economic conditions and the
possible imposition of adverse governmental laws or currency exchange
restrictions.
Interest rates in the U.S. recently have been historically low, so the
Trust 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.
H. Repurchase Agreements
Repurchase agreements are arrangements under which the Trust purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Trust at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Trust. The securities purchased serve
as the Trust'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 Trust's custodian or a subcustodian of the
Trust. 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 Trust is entitled to sell the securities, but the
Trust may not be able to sell them for the price at which they were
purchased, thus causing a loss to the Trust. Additionally, if the
counterparty becomes insolvent, there is some risk that the Trust will not
have a right to the securities, or the immediate right to sell the
securities. Open repurchase agreements as of November 30, 2016 are
disclosed in the Trust's Schedule of Investments.
I. Automatic Dividend Reinvestment Plan
All shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional shares of
the Trust in lieu of cash. Shareowners may elect not to participate in the
Plan. Shareowners not participating in the Plan receive all dividends and
capital gain distributions in cash. Participation in the Plan is completely
voluntary and may be terminated or resumed at any time without penalty by
notifying American Stock Transfer & Trust Company, the agent for
shareowners in administering the Plan (the Plan Agent), in writing prior to
any dividend record date; otherwise such termination or resumption will be
effective with respect to any subsequently declared dividend or other
distribution.
56 Pioneer Floating Rate Trust | Annual Report | 11/30/16
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate in
the Plan on the shareowner's behalf. If the firm or nominee does not offer
the Plan, dividends will be paid in cash to the shareowner of record. A
firm or nominee may reinvest a shareowner's cash dividends in shares of the
Trust on terms that differ from the terms of the Plan.
Whenever the Trust declares a dividend on shares payable in cash,
participants in the Plan will receive the equivalent in shares acquired by
the Plan Agent either (i) through receipt of additional unissued but
authorized shares from the Trust or (ii) by purchase of outstanding shares
on the New York Stock Exchange or elsewhere. If, on the payment date for
any dividend, the net asset value per share is equal to or less than the
market price per share plus estimated brokerage trading fees (market
premium), the Plan Agent will invest the dividend amount in newly issued
shares. The number of newly issued shares to be credited to each account
will be determined by dividing the dollar amount of the dividend by the net
asset value per share on the date the shares are issued, provided that the
maximum discount from the then current market price per share on the date
of issuance does not exceed 5%. If, on the payment date for any dividend,
the net asset value per share is greater than the market value (market
discount), the Plan Agent will invest the dividend amount in shares
acquired in open-market purchases. There are no brokerage charges with
respect to newly issued shares. However, each participant will pay a pro
rata share of brokerage trading fees incurred with respect to the Plan
Agent's open-market purchases. Participating in the Plan does not relieve
shareowners from any federal, state or local taxes which may be due on
dividends paid in any taxable year. Shareowners holding Plan shares in a
brokerage account may be able to transfer the shares to another broker and
continue to participate in the Plan.
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 on an underlying
reference obligation, which may be a single security or a basket or index
of securities. The Trust may buy or sell credit default swap contracts to
seek to increase the Trust'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 Trust 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
Trust. In return, the Trust would receive from the counterparty a periodic
stream of payments during the term of the contract
Pioneer Floating Rate Trust | Annual Report | 11/30/16 57
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 Trust would keep the stream of
payments and would have no payment obligation. The Trust may also buy
credit default swap contracts in order to hedge against the risk of default
of debt securities, in which case the Trust would function as the
counterparty referenced above.
When the Trust 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 Trust, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Trust 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 Trust 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
Trust is a protection buyer and no credit event occurs, it will lose its
investment. If the Trust is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Trust, together
with the periodic payments received, may be less than the amount the Trust
pays to the protection buyer, resulting in a loss to the Trust.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Trust 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 Trust 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 the broker as collateral at November 30,
2016, and is included in "Restricted cash" in the Statement of Assets and
Liabilities, was $200,000.
58 Pioneer Floating Rate Trust | Annual Report | 11/30/16
Open credit default swap contracts at November 30, 2016 are listed in the
Schedule of Investments. The average market value of swap contracts open
during the year ended November 30, 2016 was $89,423.
2. Management Agreement
PIM manages the Trust's portfolio. Management fees payable under the Trust's
Advisory Agreement with PIM are calculated daily at the annual rate of 0.70% of
the Trust's average daily managed assets. "Managed assets" means (a) the total
assets of the Trust, including any form of investment leverage, minus (b) all
accrued liabilities incurred in the normal course of operations, which shall not
include any liabilities or obligations attributable to investment leverage
obtained through (i) indebtedness of any type (including, without limitation,
borrowing through a credit facility or the issuance of debt securities), (ii)
the issuance of preferred stock or other similar preference securities, and/or
(iii) any other means. For the year ended November 30, 2016, the net management
fee was 0.70% of the Trust's average daily managed assets, which was equivalent
to 1.03% of the Trust's average daily net assets.
In addition, under PIM's management and administration agreements, certain other
services and costs are paid by PIM and reimbursed by the Trust. At November 30,
2016, $379,131 was payable to PIM related to management costs, administrative
costs and certain other services is included in "Due to affiliates" and
"Administration fee" on the Statement of Assets and Liabilities.
3. Transfer Agent
American Stock Transfer & Trust Company (AST) serves as the transfer agent with
respect to the Trust's shares. The Trust pays AST an annual fee, as is agreed to
from time to time by the Trust and AST, for providing such services.
In addition, the Trust reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings and outgoing calls.
4. Additional Disclosures about Derivative Instruments and Hedging Activities
The Trust'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 Trust.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 59
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 November 30,
2016 was as follows:
------------------------------------------------------------------------------------
Statement of Assets and Liabilities
Interest Credit Foreign Equity Commodity
Rate Risk Risk Exchange Risk Risk Risk
------------------------------------------------------------------------------------
Assets:
Unrealized
appreciation on
centrally cleared
credit default
swaps $-- $114,032 $-- $-- $--
------------------------------------------------------------------------------------
Total Value $-- $114,032 $-- $-- $--
====================================================================================
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at November 30, 2016 was as follows:
------------------------------------------------------------------------------------
Statement of Operations
Interest Credit Foreign Equity Commodity
Rate Risk Risk Exchange Risk Risk Risk
------------------------------------------------------------------------------------
Net realized
gain (loss):
Swap contracts $-- $71,161 $-- $-- $--
------------------------------------------------------------------------------------
Total Value $-- $71,161 $-- $-- $--
====================================================================================
Change in net
unrealized
appreciation
(depreciation) on:
Swap contracts $-- $119,885 $-- $-- $--
------------------------------------------------------------------------------------
Total Value $-- $119,885 $-- $-- $--
====================================================================================
60 Pioneer Floating Rate Trust | Annual Report | 11/30/16
5. Unfunded Loan Commitments
The Trust may enter into unfunded loan commitments. Unfunded loan commitments
may be partially or wholly unfunded. During the contractual period, the Trust is
obligated to provide funding to the borrower upon demand. A fee is earned by the
Trust on the unfunded commitment and is recorded as interest income in the
Statement of Operations.
As of November 30, 2016, the Trust had the following unfunded loan commitments
outstanding:
----------------------------------------------------------------------------------------------
Unrealized
Loan Principal Cost Value Appreciation
----------------------------------------------------------------------------------------------
Allied Universal
Holdco LLC
(fka USAGM
Holdco LLC) $165,563 $164,022 $166,763 $2,741
----------------------------------------------------------------------------------------------
Total $165,563 $164,022 $166,763 $2,741
==============================================================================================
6. Trust Shares
Transactions in shares of beneficial interest for the year ended November 30,
2016 and the year ended November 30, 2015 were as follows:
----------------------------------------------------------------------------------------------
11/30/16 11/30/15
----------------------------------------------------------------------------------------------
Shares outstanding at beginning of year 24,738,174 24,738,174
----------------------------------------------------------------------------------------------
Shares outstanding at end of year 24,738,174 24,738,174
==============================================================================================
7. Credit Agreement
Effective November 26, 2013, the Trust entered into a Revolving Credit Facility
(the Credit Agreement) with the Bank of Nova Scotia in the amount of
$160,000,000. The Credit Agreement was established in conjunction with the
redemption of all the Trust's auction market preferred shares. Effective
November 23, 2016, the Trust extended the maturity of the Credit Agreement for a
364 day period.
At November 30, 2016, the Trust had borrowings outstanding under the Credit
Agreement totaling $143,450,000. The interest rate charged at November 30, 2016
was 1.38%. During the year ended November 30, 2016, the average daily balance
was $144,279,268 at an average interest rate of 1.33%. Interest expense of
$1,924,262 in connection with the Credit Agreement is included in the Statement
of Operations. The fair value of the outstanding balance of the Credit Agreement
at November 30, 2016 approximates its carrying value.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 61
The Trust is required to maintain 300% asset coverage with respect to amounts
outstanding under the Credit Agreement. Asset coverage is calculated by
subtracting the Trust's total liabilities not including any bank loans and
senior securities, from the Trust's total assets and dividing such amount by the
principal amount of the borrowing outstanding.
8. Subsequent Event
A monthly dividend was declared on December 2, 2016 from undistributed and
accumulated net investment income of $0.0600 per share payable December 19,
2016, to shareowners of record on December 14, 2016.
62 Pioneer Floating Rate Trust | Annual Report | 11/30/16
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of
Pioneer Floating Rate Trust:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Floating Rate Trust (the "Trust"), as of
November 30, 2016, and the related statements of operations and cash flows 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 Trust'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 November 30,
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 January 24, 2014.
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 Trust
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 Trust'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 November 30, 2016, by correspondence with the
custodian, brokers and agent banks; where replies were not received from brokers
and agent banks, we performed other auditing procedures. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Floating Rate Trust as of November 30, 2016, the results of its
operations and its cash flows 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
January 25, 2017
Pioneer Floating Rate Trust | Annual Report | 11/30/16 63
ADDITIONAL INFORMATION
During the period, there have been no material changes in the Trust's investment
objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust which has not been
approved by the shareowners. During the period, there have been no changes in
the principal risk factors associated with investment in the Trust. There were
no changes in the persons who are primarily responsible for the day-to-day
management of the Trust's portfolio.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its shares
in the open market.
Pioneer Investment Management, Inc. (the "Adviser"), the Trust's investment
adviser, is currently an indirect, wholly owned subsidiary of 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 Trust's current investment advisory agreement with the Adviser to
terminate. Accordingly, the Trust's Board of Trustees will be asked to approve a
new investment advisory agreement for the Trust. If approved by the Board, the
Trust's new investment advisory agreement will be submitted to the shareholders
of the Trust for their approval.
Results of Shareholder Meeting (unaudited)
At the annual meeting of shareowners held on September 20, 2016, shareowners of
Pioneer Floating Rate Trust were asked to consider the proposals described
below. A report of the total votes cast by the Trust's shareholders follows:
Proposal 1 - To elect three Class I Trustees.
----------------------------------------------------------------------------
Nominee For Withheld
----------------------------------------------------------------------------
Class I
David R. Bock 21,739,460.845 494,248.579
Lisa M. Jones 21,729,166.725 504,542.699
Lorraine H. Monchak 21,736,216.486 497,492.938
64 Pioneer Floating Rate Trust | Annual Report | 11/30/16
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Floating Rate Trust (the Trust) pursuant to an investment advisory
agreement between PIM and the Trust. In order for PIM to remain the investment
adviser of the Trust, the Trustees of the Trust must determine annually whether
to renew the investment advisory agreement for the Trust.
The contract review process began in January 2016 as the Trustees of the Trust
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 Trust's performance
at regularly scheduled meetings throughout the year and took into account other
information related to the Trust provided to the Trustees at regularly scheduled
meetings in connection with the review of the Trust's investment advisory
agreement.
In March 2016, the Trustees, among other things, discussed the memorandum
provided by Trust 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 Trust's portfolio manager in the Trust. In May 2016,
the Trustees, among other things, reviewed the Trust'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 Trust and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Trust 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 Trust,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In approving the
renewal of the investment advisory agreement, the Trustees considered various
factors that they determined were relevant, including the factors described
below. The Trustees did not identify any single factor as the controlling factor
in determining to approve the renewal of the agreement.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 65
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 Trust, taking into account the investment objective
and strategy of the Trust. The Trustees also reviewed PIM's investment approach
for the Trust and its research process. The Trustees considered the resources of
PIM and the personnel of PIM who provide investment management services to the
Trust. They also reviewed the amount of non-Trust assets managed by the
portfolio manager of the Trust. The Trustees considered the non-investment
resources and personnel of PIM involved in PIM's services to the Trust,
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
Trust's service providers and provides the Trust with personnel (including Trust
officers) and other resources that are necessary for the Trust's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Trust'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 Trust were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Trust
In considering the Trust's performance, the Trustees regularly review and
discuss throughout the year data prepared by PIM and information comparing the
Trust'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 Trust's benchmark index. They also discuss the Trust'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.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Trust
in comparison to the management fees and 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
Trust's shareowners.
66 Pioneer Floating Rate Trust | Annual Report | 11/30/16
The Trustees considered that the Trust's management fee (based on managed
assets) for the most recent fiscal year was in the first quintile relative to
the management fees paid by other funds in its Strategic Insight peer group for
the comparable period. The Trustees considered that the expense ratio (based on
managed assets) of the Trust's common shares for the most recent fiscal year was
in the first quintile relative to its Strategic Insight peer group for the
comparable period.
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 Trust and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Trust and non-Trust 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 Trust and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Trust and
considered that, under the investment advisory agreement with the Trust, PIM
performs additional services for the Trust that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Trust's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Trust is subject. The Trustees
also considered the different entrepreneurial risks associated with PIM's
management of the Trust and Pioneer's management of the other client accounts.
The Trustees concluded that the management fee payable by the Trust to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Trust.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Trust,
including the methodology used by PIM in allocating certain of its costs to the
management of the Trust. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Trust. 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 Trust in comparison to the limited industry data
available and noted that the profitability of any adviser was affected by
Pioneer Floating Rate Trust | Annual Report | 11/30/16 67
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 Trust was not unreasonable.
Economies of Scale
The Trustees considered the extent to which PIM may realize economies of scale
or other efficiencies in managing and supporting the Trust. Since the Trust is a
closed-end fund that has not raised additional capital, the Trustees concluded
that economies of scale were not a relevant consideration in the renewal of the
investment advisory agreement.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Trust. The Trustees considered the character and amount of fees paid by the
Trust, 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 Trust
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 Trust, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Trust.
68 Pioneer Floating Rate Trust | Annual Report | 11/30/16
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
American Stock Transfer & Trust Company
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 Trust'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 Trust within the meaning of the 1940 Act are referred
to as Interested Trustees. Trustees who are not interested persons of the Trust
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 Trust is 60 State Street, Boston, Massachusetts
02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 69
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) Class III Trustee Private investor (2004 - 2008 and 2013 - Director, Broadridge
Chairman of the Board since 2006.Term expires present); Chairman (2008 - 2013) and Chief Financial Solutions, Inc.
and Trustee in 2018. Executive Officer (2008 - 2012), Quadriserv, (investor communications
Inc. (technology products for securities and securities processing
lending industry); and Senior Executive Vice provider for financial
President,The Bank of New York (financial services industry) (2009
and securities services) (1986 - 2004) - present);Director,
Quadriserv, Inc. (2005 -
2013);and Commissioner,
New Jersey State
Civil Service Commission
(2011 - 2015)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (72) Class I Trustee since Managing Partner, Federal City Capital Director of New York
Trustee 2005. Term expires in 2019. Advisors (corporate advisory services Mortgage Trust
company) (1997 - 2004 and 2008 - present); (publicly-traded mortgage
Interim Chief Executive Officer, Oxford REIT) (2004 - 2009, 2012
Analytica, Inc. (privately-held research and - present); Director of
consulting company) (2010); Executive Vice The Swiss Helvetia Fund,
President and Chief Financial Officer, Inc. (closed-end fund)
I-trax, Inc. (publicly traded health care (2010 - present);
services company) (2004 - 2007); and Director of Oxford
Executive Vice President and Chief Analytica, Inc. 2008 -
Financial Officer, Pedestal Inc. present); and Director of
(internet-based mortgage trading company) (Enterprise Community
(2000 - 2002); Private consultant Investment, Inc.
(1995-1997), Managing Director, Lehman (privately-held
Brothers (investment banking firm) affordable housing
(1992-1995); and Executive, The World Bank finance company) (1985 -
(1979-1992) 2010)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (72) Class II Trustee since William Joseph Maier Professor of Political Trustee, Mellon
Trustee 2008. Term expires in 2017. Economy, Harvard University (1972 - present) Institutional Funds
Investment Trust and
Mellon Institutional
Funds Master Portfolio
(oversaw 17 portfolios in
fund complex) (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
70 Pioneer Floating Rate Trust | Annual Report | 11/30/16
------------------------------------------------------------------------------------------------------------------------------------
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) Class II Trustee since Founding Director,Vice President and None
Trustee 2003. Term expires in 2017. Corporate Secretary,The Winthrop Group, Inc.
(consulting firm) (1982 - present);
Desautels Faculty of Management, McGill
University (1999 - present); and Manager of
Research Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (60) Class I Trustee since Chief Investment Officer, 1199 SEIU Funds None
Trustee 2015. Term expires in 2019. (healthcare workers union pension funds)
(2001 - present); Vice President -
International Investments Group, American
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)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (68) Class III Trustee since President and Chief Executive Officer, Director of New America
Trustee 2003. Term expires in 2018. Newbury Piret Company (investment banking High Income Fund, Inc.
firm) (1981 - present) (closed-end investment
company) (2004 -
present); and Member,
Board of Governors,
Investment Company
Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (69) Class III Trustee since Consultant (investment company services) None
Trustee 2014. Term expires in 2018. (2012 - present); Executive Vice President,
BNY Mellon (financial and investment company
services) (1969 - 2012); Director, BNY
International Financing Corp. (financial
services) (2002 - 2012); and Director,
Mellon Overseas Investment Corp. (financial
services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Floating Rate Trust | Annual Report | 11/30/16 71
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Term of Office and Other Directorships
Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (54)* Class I Trustee since Chair, Director, CEO and President of None
Trustee, President and 2014. Term expires in 2019. Pioneer Investment Management-USA (since
Chief Executive Officer September 2014); Chair, Director, CEO and
President of Pioneer Investment Management,
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)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J.Taubes (58)* Class II Trustee since Director and Executive Vice President (since None
Trustee 2014. Term expires in 2017. 2008) and Chief Investment Officer, U.S.
(since 2010) of PIM-USA; Executive Vice
President of Pioneer (since 2008);
Executive Vice President of Pioneer
Institutional Asset Management, Inc. (since
2009); and Portfolio Manager of Pioneer
(since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustee because they are officers
or directors of the Trust's investment adviser and certain of its
affiliates.
72 Pioneer Floating Rate Trust | Annual Report | 11/30/16
Trust Officers
------------------------------------------------------------------------------------------------------------------------------------
Name,Age and Term of Office and Other Directorships
Position Held With the Trust Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (51) Since 2003. Serves at Vice President and Associate General Counsel None
Secretary and Chief the discretion of the of Pioneer since January 2008; Secretary and
Legal Officer Board. Chief Legal Officer of all of the Pioneer
Funds since June 2010; Assistant Secretary
of all of the Pioneer Funds from September
2003 to May 2010; and Vice President and
Senior Counsel of Pioneer from July 2002 to
December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (55) Since 2010. Serves at Fund Governance Director of Pioneer since None
Assistant Secretary the discretion of the December 2006 and Assistant Secretary of all
Board. 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 (54) Since 2010. Serves at Senior Counsel of Pioneer since May 2013 and None
Assistant Secretary the discretion of the Assistant Secretary of all the Pioneer Funds
Board. since June 2010; and Counsel of Pioneer from
June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (57) Since 2008. Serves at Vice President - Fund Treasury of Pioneer; None
Treasurer and Chief Financial the discretion of the Treasurer of all of the Pioneer Funds since
and Accounting Officer Board. March 2008; Deputy Treasurer of Pioneer from
March 2004 to February 2008; and Assistant
Treasurer of all of the Pioneer Funds from
March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (51) Since 2003. Serves at Director - Fund Treasury of Pioneer; and None
Assistant Treasurer the discretion of the Assistant Treasurer of all of the Pioneer
Board. Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (58) Since 2003. Serves at Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Pioneer; and Assistant Treasurer of all of
Board. the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Floating Rate Trust | Annual Report | 11/30/16 73
Trust Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name,Age and Term of Office and Other Directorships
Position Held With the Trust Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (37) Since 2009. Serves at the Fund Administration Manager - Fund Treasury None
Assistant Treasurer discretion of the Board. of Pioneer since November 2008; Assistant
Treasurer of all of the Pioneer Funds since
January 2009; and Client Service Manager -
Institutional Investor Services at State
Street Bank from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (64) Since 2010. Serves at the Chief Compliance Officer of Pioneer and of None
Chief Compliance Officer discretion of the Board. all the Pioneer Funds since March 2010;
Chief Compliance Officer of Pioneer
Institutional Asset Management, Inc. since
January 2012; Chief Compliance Officer of
Vanderbilt Capital Advisors, LLC since July
2012: Director of Adviser and Portfolio
Compliance at Pioneer since October 2005;
and Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003
to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (45) Since 2006. Serves at the Director - Transfer Agency Compliance of None
Anti-Money Laundering Officer discretion of the Board. Pioneer and Anti-Money Laundering Officer of
all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
74 Pioneer Floating Rate Trust | Annual Report | 11/30/16
This page for your notes.
Pioneer Floating Rate Trust | Annual Report | 11/30/16 75
This page for your notes.
76 Pioneer Floating Rate Trust | Annual Report | 11/30/16
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
web site us.pioneerinvestments.com.
The Trust 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. Shareowners 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) 2017 Pioneer Investments 19447-10-0117
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 $76,738
payable to Deloitte & Touche LLP for the year ended
November 30, 2016 and $76,700 for the year ended November 30, 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 $9,904
payable to Deloitte & Touche LLP for the year ended
November 30, 2016 and $9,876 for the year ended November 30, 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 Novemnber 30 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 $9,904
payable to Deloitte & Touche LLP for the year ended
November 30, 2016 and $9,876 for the year ended November 30, 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.
Proxy Voting Policies and Procedures of
Pioneer Investment Management, Inc.
VERSION DATED July, 2004
Overview
Pioneer Investment Management, Inc. ("Pioneer") is a fiduciary that owes
each of its client's duties of care and loyalty with respect to all
services undertaken on the client's behalf, including proxy voting. When
Pioneer has been delegated proxy-voting authority for a client, the duty of
care requires Pioneer to monitor corporate events and to vote the proxies.
To satisfy its duty of loyalty, Pioneer must place its client's interests
ahead of its own and must cast proxy votes in a manner consistent with the
best interest of its clients. Pioneer will vote all proxies presented in a
timely manner.
The Proxy Voting Policies and Procedures are designed to complement
Pioneer's investment policies and procedures regarding its general
responsibility to monitor the performance and/or corporate events of
companies that are issuers of securities held in accounts managed by
Pioneer. Pioneer's Proxy Voting Policies summarize Pioneer's position on a
number of issues solicited by companies held by Pioneer's clients. The
policies are guidelines that provide a general indication on how Pioneer
would vote but do not include all potential voting scenarios.
Pioneer's Proxy Voting Procedures detail monitoring of voting, exception
votes, and review of conflicts of interest and ensure that case-by-case
votes are handled within the context of the overall guidelines (i.e. best
interest of client). The overriding goal is that all proxies for US and
non-US companies that are received promptly will be voted in accordance
with Pioneer's policies or specific client instructions. All shares in a
company held by Pioneer-managed accounts will be voted alike, unless a
client has given us specific voting instructions on an issue or has not
delegated authority to us or the Proxy Voting Oversight Group determines
that the circumstances justify a different approach.
Pioneer does not delegate the authority to vote proxies relating to its
clients to any of its affiliates, which include other subsidiaries of
UniCredito.
Any questions about these policies and procedures should be directed to the
Proxy Coordinator.
1
Proxy Voting Procedures
Proxy Voting Service
Pioneer has engaged an independent proxy voting service to assist in the
voting of proxies. The proxy voting service works with custodians to ensure
that all proxy materials are received by the custodians and are processed
in a timely fashion. To the extent applicable, the proxy voting service
votes all proxies in accordance with the proxy voting policies established
by Pioneer. The proxy voting service will refer proxy questions to the
Proxy Coordinator (described below) for instructions under circumstances
where: (1) the application of the proxy voting guidelines is unclear; (2) a
particular proxy question is not covered by the guidelines; or (3) the
guidelines call for specific instructions on a case-by-case basis. The
proxy voting service is also requested to call to the Proxy Coordinator's
attention specific proxy questions that, while governed by a guideline,
appear to involve unusual or controversial issues. Pioneer reserves the
right to attend a meeting in person and may do so when it determines that
the company or the matters to be voted on at the meeting are strategically
important to its clients.
Proxy Coordinator
Pioneer's Director of Investment Operations (the "Proxy Coordinator")
coordinates the voting, procedures and reporting of proxies on behalf of
Pioneer's clients. The Proxy Coordinator will deal directly with the proxy
voting service and, in the case of proxy questions referred by the proxy
voting service, will solicit voting recommendations and instructions from
the Director of Portfolio Management US or, to the extent applicable,
investment sub-advisers. The Proxy Coordinator is responsible for ensuring
that these questions and referrals are responded to in a timely fashion and
for transmitting appropriate voting instructions to the proxy voting
service. The Proxy Coordinator is responsible for verifying with the
Compliance Department whether Pioneer's voting power is subject to any
limitations or guidelines issued by the client (or in the case of an
employee benefit plan, the plan's trustee or other fiduciaries).
Referral Items
From time to time, the proxy voting service will refer proxy questions to
the Proxy Coordinator that are described by Pioneer's policy as to be voted
on a case-by-case basis, that are not covered by Pioneer's guidelines or
where Pioneer's guidelines may be unclear with respect to the matter to be
voted on. Under such certain circumstances, the Proxy Coordinator will seek
a written voting recommendation from the Director of Portfolio Management
US. Any such recommendation will include: (i) the manner in which the
proxies should be voted; (ii) the rationale underlying any such decision;
and (iii) the disclosure of any contacts or communications made between
Pioneer and any outside parties concerning the proxy proposal prior to the
time that the voting instructions are provided. In addition, the Proxy
Coordinator will ask the Compliance Department to review the question for
any actual or apparent conflicts of interest as described below under
"Conflicts of
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Interest." The Compliance Department will provide a "Conflicts of Interest
Report," applying the criteria set forth below under "Conflicts of
Interest," to the Proxy Coordinator summarizing the results of its review.
In the absence of a conflict of interest, the Proxy Coordinator will vote
in accordance with the recommendation of the Director of Portfolio
Management US.
If the matter presents a conflict of interest for Pioneer, then the Proxy
Coordinator will refer the matter to the Proxy Voting Oversight Group for a
decision. In general, when a conflict of interest is present, Pioneer will
vote according to the recommendation of the Director of Portfolio
Management US where such recommendation would go against Pioneer's interest
or where the conflict is deemed to be immaterial. Pioneer will vote
according to the recommendation of its proxy voting service when the
conflict is deemed to be material and the Pioneer's internal vote
recommendation would favor Pioneer's interest, unless a client specifically
requests Pioneer to do otherwise. When making the final determination as to
how to vote a proxy, the Proxy Voting Oversight Group will review the
report from the Director of Portfolio Management US and the Conflicts of
Interest Report issued by the Compliance Department.
Conflicts of Interest
A conflict of interest occurs when Pioneer's interests interfere, or appear
to interfere with the interests of Pioneer's clients. Occasionally, Pioneer
may have a conflict that can affect how its votes proxies. The conflict may
be actual or perceived and may exist when the matter to be voted on
concerns:
o An affiliate of Pioneer, such as another company belonging to
the UniCredito Italiano S.p.A. banking group (a "UniCredito
Affiliate");
o An issuer of a security for which Pioneer acts as a sponsor,
advisor, manager, custodian, distributor, underwriter, broker, or
other similar capacity (including those securities specifically
declared by PGAM to present a conflict of interest for Pioneer);
o An issuer of a security for which UniCredito has informed Pioneer
that a UniCredito Affiliate acts as a sponsor, advisor, manager,
custodian, distributor, underwriter, broker, or other similar
capacity; or
o A person with whom Pioneer (or any of its affiliates) has an
existing, material contract or business relationship that was not
entered into in the ordinary course of Pioneer's business.
o Pioneer will abstain from voting with respect to companies
directly or indirectly owned by UniCredito Italiano Group, unless
otherwise directed by a client. In addition, Pioneer will inform
PGAM Global Compliance and the PGAM Independent Directors before
exercising such rights.
Any associate involved in the proxy voting process with knowledge of any
apparent or actual conflict of interest must disclose such conflict to the
Proxy Coordinator and the Compliance Department. The Compliance Department
will review each item referred to Pioneer to determine whether an actual or
potential conflict of interest with Pioneer exists in connection with the
proposal(s) to be voted upon. The review will be conducted by comparing the
apparent parties affected by the proxy proposal being
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voted upon against the Compliance Department's internal list of interested
persons and, for any matches found, evaluating the anticipated magnitude
and possible probability of any conflict of interest being present. For
each referral item, the determination regarding the presence or absence of
any actual or potential conflict of interest will be documented in a
Conflicts of Interest Report to the Proxy Coordinator.
Securities Lending
In conjunction with industry standards Proxies are not available to be
voted when the shares are out on loan through either Pioneer's lending
program or a client's managed security lending program. However, Pioneer
will reserve the right to recall lent securities so that they may be voted
according to the Pioneer's instructions. If a portfolio manager would like
to vote a block of previously lent shares, the Proxy Coordinator will work
with the portfolio manager and Investment Operations to recall the
security, to the extent possible, to facilitate the vote on the entire
block of shares.
Share-Blocking
"Share-blocking" is a market practice whereby shares are sent to a
custodian (which may be different than the account custodian) for record
keeping and voting at the general meeting. The shares are unavailable for
sale or delivery until the end of the blocking period (typically the day
after general meeting date).
Pioneer will vote in those countries with "share-blocking." In the event a
manager would like to sell a security with "share-blocking", the Proxy
Coordinator will work with the Portfolio Manager and Investment Operations
Department to recall the shares (as allowable within the market time-frame
and practices) and/or communicate with executing brokerage firm. A list of
countries with "share-blocking" is available from the Investment Operations
Department upon request.
Record Keeping
The Proxy Coordinator shall ensure that Pioneer's proxy voting service:
o Retains a copy of the proxy statement received (unless the proxy
statement is available from the SEC's Electronic Data Gathering,
Analysis, and Retrieval (EDGAR) system);
o Retains a record of the vote cast;
o Prepares Form N-PX for filing on behalf of each client that is a
registered investment company; and
o Is able to promptly provide Pioneer with a copy of the voting
record upon its request.
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The Proxy Coordinator shall ensure that for those votes that may require
additional documentation (i.e. conflicts of interest, exception votes and
case-by-case votes) the following records are maintained:
o A record memorializing the basis for each referral vote cast;
o A copy of any document created by Pioneer that was material in
making the decision on how to vote the subject proxy; and
o A copy of any conflict notice, conflict consent or any other
written communication (including emails or other electronic
communications) to or from the client (or in the case of an
employee benefit plan, the plan's trustee or other fiduciaries)
regarding the subject proxy vote cast by, or the vote
recommendation of, Pioneer.
o Pioneer shall maintain the above records in the client's file for a
period not less than ten (10) years.
Disclosure
Pioneer shall take reasonable measures to inform its clients of the process
or procedures clients must follow to obtain information regarding how
Pioneer voted with respect to assets held in their accounts. In addition,
Pioneer shall describe to clients its proxy voting policies and procedures
and will furnish a copy of its proxy voting policies and procedures upon
request. This information may be provided to clients through Pioneer's Form
ADV (Part II) disclosure, by separate notice to the client, or through
Pioneer's website.
Proxy Voting Oversight Group
The members of the Proxy Voting Oversight Group are Pioneer's: Director of
Portfolio Management US, Head of Investment Operations, and Director of
Compliance. Other members of Pioneer will be invited to attend meetings and
otherwise participate as necessary. The Head of Investment Operations will
chair the Proxy Voting Oversight Group.
The Proxy Voting Oversight Group is responsible for developing, evaluating,
and changing (when necessary) Pioneer's Proxy Voting Policies and
Procedures. The group meets at least annually to evaluate and review these
policies and procedures and the services of its third-party proxy voting
service. In addition, the Proxy Voting Oversight Group will meet as
necessary to vote on referral items and address other business as
necessary.
Amendments
Pioneer may not amend its Proxy Voting Policies And Procedures without the
prior approval of the Proxy Voting Oversight Group and its corporate
parent, Pioneer Global Asset Management S.p.A
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Proxy Voting Policies
Pioneer's sole concern in voting proxies is the economic effect of the
proposal on the value of portfolio holdings, considering both the short-
and long-term impact. In many instances, Pioneer believes that supporting
the company's strategy and voting "for" management's proposals builds
portfolio value. In other cases, however, proposals set forth by management
may have a negative effect on that value, while some shareholder proposals
may hold the best prospects for enhancing it. Pioneer monitors developments
in the proxy-voting arena and will revise this policy as needed.
All proxies that are received promptly will be voted in accordance with the
specific policies listed below. All shares in a company held by
Pioneer-managed accounts will be voted alike, unless a client has given us
specific voting instructions on an issue or has not delegated authority to
us. Proxy voting issues will be reviewed by Pioneer's Proxy Voting
Oversight Group, which consists of the Director of Portfolio Management US,
the Director of Investment Operations (the Proxy Coordinator), and the
Director of Compliance.
Pioneer has established Proxy Voting Procedures for identifying and
reviewing conflicts of interest that may arise in the voting of proxies.
Clients may request, at any time, a report on proxy votes for securities
held in their portfolios and Pioneer is happy to discuss our proxy votes
with company management. Pioneer retains a proxy voting service to provide
research on proxy issues and to process proxy votes.
Administrative
While administrative items appear infrequently in U.S. issuer proxies, they
are quite common in non-U.S. proxies.
We will generally support these and similar management proposals:
o Corporate name change.
o A change of corporate headquarters.
o Stock exchange listing.
o Establishment of time and place of annual meeting.
o Adjournment or postponement of annual meeting.
o Acceptance/approval of financial statements.
o Approval of dividend payments, dividend reinvestment plans and other
dividend-related proposals.
o Approval of minutes and other formalities.
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o Authorization of the transferring of reserves and allocation of
income.
o Amendments to authorized signatories.
o Approval of accounting method changes or change in fiscal year-end.
o Acceptance of labor agreements.
o Appointment of internal auditors.
Pioneer will vote on a case-by-case basis on other routine business;
however, Pioneer will oppose any routine business proposal if insufficient
information is presented in advance to allow Pioneer to judge the merit of
the proposal. Pioneer has also instructed its proxy voting service to
inform Pioneer of its analysis of any administrative items inconsistent, in
its view, with supporting the value of Pioneer portfolio holdings so that
Pioneer may consider and vote on those items on a case-by-case basis.
Auditors
We normally vote for proposals to:
o Ratify the auditors. We will consider a vote against if we are
concerned about the auditors' independence or their past work for
the company. Specifically, we will oppose the ratification of
auditors and withhold votes from audit committee members if
non-audit fees paid by the company to the auditing firm exceed the
sum of audit fees plus audit-related fees plus permissible tax
fees according to the disclosure categories proposed by the
Securities and Exchange Commission.
o Restore shareholder rights to ratify the auditors.
We will normally oppose proposals that require companies to:
o Seek bids from other auditors.
o Rotate auditing firms, except where the rotation is statutorily
required or where rotation would demonstrably strengthen financial
disclosure.
o Indemnify auditors.
o Prohibit auditors from engaging in non-audit services for the
company.
Board of Directors
On issues related to the board of directors, Pioneer normally supports
management. We will, however, consider a vote against management in
instances where corporate performance has been very poor or where the board
appears to lack independence.
7
General Board Issues
Pioneer will vote for:
o Audit, compensation and nominating committees composed of
independent directors exclusively.
o Indemnification for directors for actions taken in good faith in
accordance with the business judgment rule. We will vote against
proposals for broader indemnification.
o Changes in board size that appear to have a legitimate business
purpose and are not primarily for anti-takeover reasons.
o Election of an honorary director.
We will vote against:
o Minimum stock ownership by directors.
o Term limits for directors. Companies benefit from experienced
directors, and shareholder control is better achieved through
annual votes.
o Requirements for union or special interest representation on the
board.
o Requirements to provide two candidates for each board seat.
We will vote on a case-by case basis on these issues:
o Separate chairman and CEO positions. We will consider voting with
shareholders on these issues in cases of poor corporate
performance.
Elections of Directors
In uncontested elections of directors we will vote against:
o Individual directors with absenteeism above 25% without valid
reason. We support proposals that require disclosure of director
attendance.
o Insider directors and affiliated outsiders who sit on the audit,
compensation, stock option or nominating committees. For the
purposes of our policy, we accept the definition of affiliated
directors provided by our proxy voting service.
We will also vote against:
o Directors who have failed to act on a takeover offer where the
majority of shareholders have tendered their shares.
o Directors who appear to lack independence or are associated with
very poor corporate performance.
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We will vote on a case-by case basis on these issues:
o Re-election of directors who have implemented or renewed a
dead-hand or modified dead-hand poison pill (a "dead-hand poison
pill" is a shareholder rights plan that may be altered only by
incumbent or "dead " directors. These plans prevent a potential
acquirer from disabling a poison pill by obtaining control of the
board through a proxy vote).
o Contested election of directors.
o Prior to phase-in required by SEC, we would consider supporting
election of a majority of independent directors in cases of poor
performance.
o Mandatory retirement policies.
o Directors who have ignored a shareholder proposal that has been
approved by shareholders for two consecutive years.
Takeover-Related Measures
Pioneer is generally opposed to proposals that may discourage takeover
attempts. We believe that the potential for a takeover helps ensure that
corporate performance remains high.
Pioneer will vote for:
o Cumulative voting.
o Increase ability for shareholders to call special meetings.
o Increase ability for shareholders to act by written consent.
o Restrictions on the ability to make greenmail payments.
o Submitting rights plans to shareholder vote.
o Rescinding shareholder rights plans ("poison pills").
o Opting out of the following state takeover statutes:
o Control share acquisition statutes, which deny large holders voting
rights on holdings over a specified threshold.
o Control share cash-out provisions, which require large holders to
acquire shares from other holders.
o Freeze-out provisions, which impose a waiting period on large
holders before they can attempt to gain control.
o Stakeholder laws, which permit directors to consider interests of
non-shareholder constituencies.
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o Disgorgement provisions, which require acquirers to disgorge profits
on purchases made before gaining control.
o Fair price provisions.
o Authorization of shareholder rights plans.
o Labor protection provisions.
o Mandatory classified boards.
We will vote on a case-by-case basis on the following issues:
o Fair price provisions. We will vote against provisions requiring
supermajority votes to approve takeovers. We will also consider
voting against proposals that require a supermajority vote to
repeal or amend the provision. Finally, we will consider the
mechanism used to determine the fair price; we are generally
opposed to complicated formulas or requirements to pay a premium.
o Opting out of state takeover statutes regarding fair price
provisions. We will use the criteria used for fair price
provisions in general to determine our vote on this issue.
o Proposals that allow shareholders to nominate directors.
We will vote against:
o Classified boards, except in the case of closed-end mutual funds.
o Limiting shareholder ability to remove or appoint directors. We
will support proposals to restore shareholder authority in this
area. We will review on a case-by-case basis proposals that
authorize the board to make interim appointments.
o Classes of shares with unequal voting rights.
o Supermajority vote requirements.
o Severance packages ("golden" and "tin" parachutes). We will support
proposals to put these packages to shareholder vote.
o Reimbursement of dissident proxy solicitation expenses. While we
ordinarily support measures that encourage takeover bids, we
believe that management should have full control over corporate
funds.
o Extension of advance notice requirements for shareholder proposals.
o Granting board authority normally retained by shareholders (e.g.,
amend charter, set board size).
o Shareholder rights plans ("poison pills"). These plans generally
allow shareholders to buy additional shares at a below-market
price in the event of a change in control and may deter some bids.
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Capital Structure
Managements need considerable flexibility in determining the company's
financial structure, and Pioneer normally supports managements' proposals
in this area. We will, however, reject proposals that impose high barriers
to potential takeovers.
Pioneer will vote for:
o Changes in par value.
o Reverse splits, if accompanied by a reduction in number of shares.
o Share repurchase programs, if all shareholders may participate on
equal terms.
o Bond issuance.
o Increases in "ordinary" preferred stock.
o Proposals to have blank-check common stock placements (other than
shares issued in the normal course of business) submitted for
shareholder approval.
o Cancellation of company treasury shares.
We will vote on a case-by-case basis on the following issues:
o Reverse splits not accompanied by a reduction in number of shares,
considering the risk of delisting.
o Increase in authorized common stock. We will make a determination
considering, among other factors:
o Number of shares currently available for issuance;
o Size of requested increase (we would normally approve increases of up to
100% of current authorization);
o Proposed use of the additional shares; and
o Potential consequences of a failure to increase the number of shares
outstanding (e.g., delisting or bankruptcy).
o Blank-check preferred. We will normally oppose issuance of a new
class of blank-check preferred, but may approve an increase in a
class already outstanding if the company has demonstrated that it
uses this flexibility appropriately.
o Proposals to submit private placements to shareholder vote.
o Other financing plans.
We will vote against preemptive rights that we believe limit a company's
financing flexibility.
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Compensation
Pioneer supports compensation plans that link pay to shareholder returns
and believes that management has the best understanding of the level of
compensation needed to attract and retain qualified people. At the same
time, stock-related compensation plans have a significant economic impact
and a direct effect on the balance sheet. Therefore, while we do not want
to micromanage a company's compensation programs, we will place limits on
the potential dilution these plans may impose.
Pioneer will vote for:
o 401(k) benefit plans.
o Employee stock ownership plans (ESOPs), as long as shares
allocated to ESOPs are less than 5% of outstanding shares. Larger
blocks of stock in ESOPs can serve as a takeover defense. We will
support proposals to submit ESOPs to shareholder vote.
o Various issues related to the Omnibus Budget and Reconciliation Act
of 1993 (OBRA), including:
o Amendments to performance plans to conform with OBRA;
o Caps on annual grants or amendments of administrative features;
o Adding performance goals; and
o Cash or cash-and-stock bonus plans.
o Establish a process to link pay, including stock-option grants, to
performance, leaving specifics of implementation to the company.
o Require that option repricings be submitted to shareholders.
o Require the expensing of stock-option awards.
o Require reporting of executive retirement benefits (deferred
compensation, split-dollar life insurance, SERPs, and pension
benefits).
o Employee stock purchase plans where the purchase price is equal to
at least 85% of the market price, where the offering period is no
greater than 27 months and where potential dilution (as defined
below) is no greater than 10%.
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We will vote on a case-by-case basis on the following issues:
o Executive and director stock-related compensation plans. We will
consider the following factors when reviewing these plans:
o The program must be of a reasonable size. We will approve plans
where the combined employee and director plans together would
generate less than 15% dilution. We will reject plans with 15% or
more potential dilution.
Dilution = (A + B + C) / (A + B + C + D), where
A = Shares reserved for plan/amendment,
B = Shares available under continuing plans,
C = Shares granted but unexercised and
D = Shares outstanding.
o The plan must not:
o Explicitly permit unlimited option repricing authority or that
have repriced in the past without shareholder approval.
o Be a self-replenishing "evergreen" plan, plans that grant
discount options and tax offset payments.
o We are generally in favor of proposals that increase participation beyond
executives.
o We generally support proposals asking companies to adopt rigorous
vesting provisions for stock option plans such as those that vest
incrementally over, at least, a three- or four-year period with a pro
rata portion of the shares becoming exercisable on an annual basis
following grant date.
o We generally support proposals asking companies to disclose their
window period policies for stock transactions. Window period policies
ensure that employees do not exercise options based on insider
information contemporaneous with quarterly earnings releases and other
material corporate announcements.
o We generally support proposals asking companies to adopt stock holding
periods for their executives.
o All other employee stock purchase plans.
o All other compensation-related proposals, including deferred
compensation plans, employment agreements, loan guarantee programs
and retirement plans.
o All other proposals regarding stock compensation plans, including
extending the life of a plan, changing vesting restrictions,
repricing options, lengthening exercise periods or accelerating
distribution of awards and pyramiding and cashless exercise
programs.
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We will vote against:
o Pensions for non-employee directors. We believe these retirement
plans reduce director objectivity.
o Elimination of stock option plans.
We will vote on a case-by case basis on these issues:
o Limits on executive and director pay.
o Stock in lieu of cash compensation for directors.
Corporate Governance
Pioneer will vote for:
o Confidential Voting.
o Equal access provisions, which allow shareholders to contribute
their opinion to proxy materials.
o Proposals requiring directors to disclose their ownership of shares
in the company.
We will vote on a case-by-case basis on the following issues:
o Change in the state of incorporation. We will support
reincorporations supported by valid business reasons. We will
oppose those that appear to be solely for the purpose of
strengthening takeover defenses.
o Bundled proposals. We will evaluate the overall impact of the
proposal.
o Adopting or amending the charter, bylaws or articles of association.
o Shareholder appraisal rights, which allow shareholders to demand
judicial review of an acquisition price.
We will vote against:
o Shareholder advisory committees. While management should solicit
shareholder input, we prefer to leave the method of doing so to
management's discretion.
o Limitations on stock ownership or voting rights.
o Reduction in share ownership disclosure guidelines.
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Mergers and Restructurings
Pioneer will vote on the following and similar issues on a case-by-case
basis:
o Mergers and acquisitions.
o Corporate restructurings, including spin-offs, liquidations, asset
sales, joint ventures, conversions to holding company and
conversions to self-managed REIT structure.
o Debt restructurings.
o Conversion of securities.
o Issuance of shares to facilitate a merger.
o Private placements, warrants, convertible debentures.
o Proposals requiring management to inform shareholders of merger
opportunities.
We will normally vote against shareholder proposals requiring that the
company be put up for sale.
Mutual Funds
Many of our portfolios may invest in shares of closed-end mutual funds or
exchange-traded funds. The non-corporate structure of these investments
raises several unique proxy voting issues.
Pioneer will vote for:
o Establishment of new classes or series of shares.
o Establishment of a master-feeder structure.
Pioneer will vote on a case-by-case on:
o Changes in investment policy. We will normally support changes
that do not affect the investment objective or overall risk level
of the fund. We will examine more fundamental changes on a
case-by-case basis.
o Approval of new or amended advisory contracts.
o Changes from closed-end to open-end format.
o Authorization for, or increase in, preferred shares.
o Disposition of assets, termination, liquidation, or mergers.
o Classified boards of closed-end mutual funds, but will typically
support such proposals.
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Social Issues
Pioneer will abstain on stockholder proposals calling for greater
disclosure of corporate activities with regard to social issues. "Social
Issues" may generally be described as shareholder proposals for a company
to:
o Conduct studies regarding certain issues of public concern and
interest;
o Study the feasibility of the company taking certain actions with
regard to such issues; or
o Take specific action, including ceasing certain behavior and
adopting company standards and principles, in relation to issues
of public concern and interest.
We believe these issues are important and should receive management
attention.
Pioneer will vote against proposals calling for substantial changes in the
company's business or activities. We will also normally vote against
proposals with regard to contributions, believing that management should
control the routine disbursement of funds.
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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.
ADDITIONAL INFORMATION ABOUT THE PORTFOLIO MANAGER
OTHER ACCOUNTS MANAGED BY THE PORTFOLIO MANAGER
The table below indicates, for the portfolio manager of the fund, information
about the accounts other than the fund over which the portfolio manager has
day-to-day investment responsibility. All information on the number of accounts
and total assets in the table is as of November 30, 2016. For purposes of the
table, "Other Pooled Investment Vehicles" may include investment partnerships,
undertakings for collective investments in transferable securities ("UCITS")
and other non-U.S. investment funds and group trusts, and "Other Accounts" may
include separate accounts for institutions or individuals, insurance company
general or separate accounts, pension funds and other similar institutional
accounts but generally do not include the portfolio manager's personal
investment accounts or those which the manager may be deemed to own
beneficially under the code of ethics. Certain funds and other accounts managed
by the portfolio manager may have substantially similar investment strategies.
NUMBER OF ASSETS
ACCOUNTS MANAGED
MANAGED FOR FOR WHICH
WHICH ADVISORY ADVISORY
NUMBER OF FEE IS FEE IS
NAME OF ACCOUNTS TOTAL ASSETS PERFORMANCE- PERFORMANCE-
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED MANAGED (000'S) BASED BASED (000'S)
------------------- ---------------------------------- ----------- ----------------- ---------------- --------------
Jonathan Sharkey Other Registered Investment
Companies 3 $3,446,951 N/A N/A
Other Pooled Investment Vehicles 0 $ 0 N/A N/A
Other Accounts 0 $ 0 N/A N/A
------------------- ---------------------------------- ----------- ---------- ---------------- --------------
POTENTIAL CONFLICTS OF INTEREST
When a portfolio manager is responsible for the management of more than one
account, the potential arises for the portfolio manager to favor one account
over another. The principal types of potential conflicts of interest that may
arise are discussed below. For the reasons outlined below, Pioneer does not
believe that any material conflicts are likely to arise out of a portfolio
manager's responsibility for the management of the fund as well as one or more
other accounts. Although Pioneer has adopted procedures that it believes are
reasonably designed to detect and prevent violations of the federal securities
laws and to mitigate the potential for conflicts of interest to affect its
portfolio management decisions, there can be no assurance that all conflicts
will be identified or that all procedures will be effective in mitigating the
potential for such risks. Generally, the risks of such conflicts of interest
are increased to the extent that a portfolio manager has a financial incentive
to favor one account over another. Pioneer has structured its compensation
arrangements in a manner that is intended to limit such potential for conflicts
of interest. See "Compensation of Portfolio Managers" below.
o A portfolio manager could favor one account over another in allocating new
investment opportunities that have limited supply, such as initial public
offerings and private placements. If, for example, an initial public
offering that was expected to appreciate in value significantly shortly
after the offering was allocated to a single account, that account may be
expected to have better investment performance than other accounts that did
not receive an allocation of the initial public offering. Generally,
investments for which there is limited availability are allocated based upon
a range of factors including available cash and consistency with the
accounts' investment objectives and policies. This allocation methodology
necessarily involves some subjective elements but is intended over time to
treat each client in an equitable and fair manner. Generally, the investment
opportunity is allocated among participating accounts on a pro rata
0
basis. Although Pioneer believes that its practices are reasonably designed to
treat each client in an equitable and fair manner, there may be instances
where a fund may not participate, or may participate to a lesser degree than
other clients, in the allocation of an investment opportunity.
o A portfolio manager could favor one account over another in the order in
which trades for the accounts are placed. If a portfolio manager determines
to purchase a security for more than one account in an aggregate amount that
may influence the market price of the security, accounts that purchased or
sold the security first may receive a more favorable price than accounts
that made subsequent transactions. The less liquid the market for the
security or the greater the percentage that the proposed aggregate purchases
or sales represent of average daily trading volume, the greater the
potential for accounts that make subsequent purchases or sales to receive a
less favorable price. When a portfolio manager intends to trade the same
security on the same day for more than one account, the trades typically are
"bunched," which means that the trades for the individual accounts are
aggregated and each account receives the same price. There are some types of
accounts as to which bunching may not be possible for contractual reasons
(such as directed brokerage arrangements). Circumstances may also arise
where the trader believes that bunching the orders may not result in the
best possible price. Where those accounts or circumstances are involved,
Pioneer will place the order in a manner intended to result in as favorable
a price as possible for such client.
o A portfolio manager could favor an account if the portfolio manager's
compensation is tied to the performance of that account to a greater degree
than other accounts managed by the portfolio manager. If, for example, the
portfolio manager receives a bonus based upon the performance of certain
accounts relative to a benchmark while other accounts are disregarded for
this purpose, the portfolio manager will have a financial incentive to seek
to have the accounts that determine the portfolio manager's bonus achieve
the best possible performance to the possible detriment of other accounts.
Similarly, if Pioneer receives a performance-based advisory fee, the
portfolio manager may favor that account, whether or not the performance of
that account directly determines the portfolio manager's compensation.
o A portfolio manager could favor an account if the portfolio manager has a
beneficial interest in the account, in order to benefit a large client or to
compensate a client that had poor returns. For example, if the portfolio
manager held an interest in an investment partnership that was one of the
accounts managed by the portfolio manager, the portfolio manager would have
an economic incentive to favor the account in which the portfolio manager
held an interest.
o If the different accounts have materially and potentially conflicting
investment objectives or strategies, a conflict of interest could arise. For
example, if a portfolio manager purchases a security for one account and
sells the same security for another account, such trading pattern may
disadvantage either the account that is long or short. In making portfolio
manager assignments, Pioneer seeks to avoid such potentially conflicting
situations. However, where a portfolio manager is responsible for accounts
with differing investment objectives and policies, it is possible that the
portfolio manager will conclude that it is in the best interest of one
account to sell a portfolio security while another account continues to hold
or increase the holding in such security.
COMPENSATION OF PORTFOLIO MANAGER
Pioneer has adopted a system of compensation for portfolio managers that seeks
to align the financial interests of the portfolio managers with those of
shareholders of the accounts (including Pioneer funds) the portfolio managers
manage, as well as with the financial performance of Pioneer. The compensation
program for all Pioneer portfolio managers includes a base salary (determined
by the rank and tenure of the employee) and an annual bonus program, as well as
customary benefits that are offered generally to all full-time employees. Base
compensation is fixed and normally reevaluated on an annual basis. Pioneer
seeks to set base compensation at market rates, taking into account the
experience and responsibilities of the portfolio manager. The bonus plan is
intended to provide a competitive level of annual bonus compensation that is
tied to the portfolio manager achieving superior investment performance and
align the interests of
1
the investment professional with those of shareholders, as well as with the
financial performance of Pioneer. Any bonus under the plan is completely
discretionary, with a maximum annual bonus that may be in excess of base
salary. The annual bonus is based upon a combination of the following factors:
o QUANTITATIVE INVESTMENT PERFORMANCE. The quantitative investment performance
calculation is based on pre-tax investment performance of all of the
accounts managed by the portfolio manager (which includes the fund and any
other accounts managed by the portfolio manager) over a one-year period (20%
weighting) and four-year period (80% weighting), measured for periods ending
on December 31. The accounts, which include the fund, are ranked against a
group of mutual funds with similar investment objectives and investment
focus (60%) and a broad-based securities market index measuring the
performance of the same type of securities in which the accounts invest
(40%), which, in the case of the fund, is the Bank of America Merrill Lynch
High Yield Master II Index. As a result of these two benchmarks, the
performance of the portfolio manager for compensation purposes is measured
against the criteria that are relevant to the portfolio manager's
competitive universe.
o QUALITATIVE PERFORMANCE. The qualitative performance component with respect
to all of the accounts managed by the portfolio manager includes objectives,
such as effectiveness in the areas of teamwork, leadership, communications
and marketing, that are mutually established and evaluated by each portfolio
manager and management.
o PIONEER RESULTS AND BUSINESS LINE RESULTS. Pioneer's financial performance,
as well as the investment performance of its investment management group,
affect a portfolio manager's actual bonus by a leverage factor of plus or
minus (+/-) a predetermined percentage.
The quantitative and qualitative performance components comprise 80% and 20%,
respectively, of the overall bonus calculation (on a pre-adjustment basis). A
portion of the annual bonus is deferred for a specified period and may be
invested in one or more Pioneer funds.
Certain portfolio managers participate in other programs designed to reward and
retain key contributors. Senior executives or other key employees are granted
performance units based on the stock price performance of UniCredit and the
financial performance of Pioneer Global Asset Management S.p.A., which are
affiliates of Pioneer. Portfolio managers also may participate in a deferred
compensation program, whereby deferred amounts are invested in one or more
Pioneer funds.
SHARE OWNERSHIP BY PORTFOLIO MANAGER
The following table indicates as of November 30, 2016 the value, within the
indicated range, of shares beneficially owned by the portfolio manager of the
fund.
BENEFICIAL OWNERSHIP
NAME OF PORTFOLIO MANAGER OF THE FUND*
--------------------------- ---------------------
Jonathan Sharkey A
--------------------------- ---------------------
* Key to Dollar Ranges
A. None
B. $1 - $10,000
C. $10,001 - $50,000
D. $50,001 - $100,000
E. $100,001 - $500,000
F. $500,001 - $1,000,000
G. Over $1,000,000
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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).
During the period covered by this report, there were no purchases
made by or on behalf of the registrant or any affiliated purchaser
as defined in Rule 10b-18(a)(3) under the Securities Exchange Act
of 1934 (the Exchange Act), of shares of the registrants equity
securities that are registered by the registrant pursuant to
Section 12 of the Exchange Act.
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 Floating Rate Trust
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date January 31, 2017
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 January 31, 2017
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date January 31, 2017
* Print the name and title of each signing officer under his or her signature.