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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, 2013 through November 30, 2014
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, 2014
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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 11
Prices and Distributions 12
Performance Update 13
Schedule of Investments 14
Financial Statements 41
Financial Highlights 45
Notes to Financial Statements 47
Report of Independent Registered Public Accounting Firm 58
Approval of Investment Advisory Agreement 62
Trustees, Officers and Service Providers 67
Pioneer Floating Rate Trust | Annual Report | 11/30/14 1
President's Letter
Dear Shareowner,
Today's market environment presents numerous opportunities as well as challenges
for investors. A disparate global economic landscape has formed, with the U.S.
facing prospects for continued growth, while questions abound regarding the
outlook for other regions. Employment, household income, and corporate profits
have been rising in the U.S. and inflation pressures remain low. However, many
countries across Europe as well as Japan face muted growth. In addition, a
variety of factors have clouded the outlook for countries such as Russia and
Brazil and China's investment-driven economy continues to slow.
Monetary policies of major central banks are diverging, reflecting different
economic conditions. With the U.S. economy no longer in need of extraordinary
stimulus, the Federal Reserve Board may be closer to raising short-term interest
rates. Conversely, the European Central Bank and the Bank of Japan are likely to
be adding, not removing, stimulus.
While we anticipate continued growth for the U.S., the outlook is far from
certain, nor is the outlook for other regions necessarily dire. It remains to
be seen how weakness outside the U.S. will affect global growth and whether
easing monetary policies in other regions will spur an economic recovery.
While these economic conditions may lead to increasing volatility in 2015, we
believe the opportunity for investors to earn attractive returns will persist.
However, in an environment where interest rates remain low and equity valuations
have been buoyed by an extended bull market, we believe it is imperative
investors adhere to a disciplined investment approach that is consistent with
one's goals and objectives, being mindful of the tradeoff between risk and
return.
Since 1928 Pioneer's investment professionals have been focused on identifying
and capitalizing on investment opportunities that present themselves in a
variety of ever changing market conditions, including those we face today. We
seek returns consistent with our strategies' stated style and
2 Pioneer Floating Rate Trust | Annual Report | 11/30/14
objectives and consistent with our shareholders' expectations,
regardless of market conditions. We believe our shareowners benefit from the
experience and tenure of our investment teams, the insights generated from
extensive research resources and a commitment to prudent risk management
designed to mitigate downside and preserve returns over time.
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, as we do when deploying
strategies on behalf of our shareowners.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner 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. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 3
Portfolio Management Discussion | 11/30/14
Floating-rate bank loans generated solid returns over the 12-month period ended
November 30, 2014, despite some market volatility over the final six months,
driven primarily by speculation over the timing of possible interest-rate hikes
and growing geopolitical risks. 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,
2014?
A Pioneer Floating Rate Trust returned 4.74% at net asset value and -2.32% at
market price during the 12-month period ended November 30, 2014. During the
same 12-month period, the Trust's benchmark, the Barclays U.S. High Yield
Loans Index (the Barclays Index), returned 3.35% at net asset value. Unlike
the Trust, the Barclays Index 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 -0.23%.
The shares of the Trust were selling at an 11.4% discount to net asset value
on November 30, 2014.
On November 30, 2014, the Trust's standard 30-day SEC yield was 5.17%*.
Q How would you describe the investment environment for bank loans during the
12-month period ended November 30, 2014?
A While the investment environment changed within the period, bank-loan
investments generated solid returns over the full 12 months. A supportive
market backdrop stimulated investments in bank loans early in the period,
but speculation about the timing of potential interest-rate increases as
well as other factors resulted in a more unsettled market environment as the
period progressed. However, the bank-loan market once again turned positive
as the 12-month period drew to a close.
* 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 | 11/30/14
During the first few months of the Trust's fiscal year, capital flowed into
the bank-loan market as investors gained confidence in a growing domestic
economy. The historically low default rates of bank loans and their
potential to produce increased income in the event of rising interest rates
also drove money into the market. In that environment, lower-rated bank
loans tended to outperform higher-rated loans.
The most positive news during the period came from the United States, where
the domestic economy demonstrated resilience after contracting in the first
quarter of 2014. In the U.S., gross domestic product (GDP) bounced back to
grow at an annual rate of 4.6% in the second quarter and moved even higher
(after a couple of revisions) in the third quarter. While growth in China
continued to decelerate, the Chinese economy nevertheless grew at an annual
pace of 7.5%. Meanwhile, world prices for petroleum took an unexpected dip
late in the 12-month period, having both positive and negative effects on
the global economy. Declining energy prices provided consumers with more
resources to use for discretionary spending, but investments in some energy
industry-related securities were negatively affected by the price decline.
Market sentiment changed during the second half of the Trust's fiscal year
amid a number of factors that appeared to threaten the health of the global
economy. In part, investors were monitoring the potential economic effects
of the U.S. Federal Reserve System's (the Fed's) decision to scale back and
end its quantitative easing bond-purchasing program. In addition,
geopolitical risks to the global economy increased as the period progressed.
For instance, the economic sanctions imposed against Russia by the United
States and several European countries due to Russia's aggression in the
Ukraine began affecting not only the Russian economy, but also many European
economies. Meanwhile, in the Middle East, increased violence and the rising
influence of militant Islamist groups such as ISIS resulted in an escalation
of U.S. military action, which created further uncertainty in the market.
As those many developments occurred, global fixed-income markets became
increasingly volatile. U.S. Treasuries, which still were perceived by many
as the safest and most liquid asset class, rallied during the period. Prices
rose as the 10-year Treasury yield declined during the 12-month period;
however, bank loans and other credit-sensitive securities experienced some
difficulties. Money started flowing out of the bank-loan market beginning in
April 2014, when the Fed warned banks against
Pioneer Floating Rate Trust | Annual Report | 11/30/14 5
making riskier loans and investors began to anticipate that any
interest-rate increases by the Fed might occur later than originally
anticipated. The outflows continued for much of the final six months of the
period, but were partially mitigated by new issuance of collateralized loan
obligations, or CLOs. (CLOs are investment pools that invest in
floating-rate loans.) By the end of the period, CLOs were projected to
experience a record year for issuance in 2014, and that news provided
further support for the loan asset class, even in the face of continued
outflows from open-end investment companies. Over much of the second half
of the Trust's fiscal year, the performance of higher-rated bank loans began
improving relative to lower-rated loans, particularly loans rated CCC.
Q How did you manage the Trust's portfolio during the 12-month period ended
November 30, 2014, and how did your investment strategies, as well as
individual investments, affect the Trust's performance?
A In managing the Trust's portfolio during the fiscal year, we continued to
overweight higher-quality bank loans as compared with the Barclays Index.
While the emphasis on higher-rated loans held back the Trust's benchmark-
relative performance early in the 12-month period, it proved to be
advantageous for performance over most of the second half of the period as
market volatility increased. As of November 30, 2014, the Trust was
underweight in CCC-rated loans as compared with the benchmark (CCC-rated
loans represented less than 4% of the Trust's total investment portfolio,
compared to the benchmark weighting of 6.8%).
The overwhelming majority of the Trust's total investment portfolio was made
up of bank loans, but we also invested in CLOs, event-linked bonds issued by
property and casualty insurers, and corporate bonds. Investments in each of
those asset classes had positive effects on the Trust's relative results
during the period.
Overall, however, security selection had the greatest influence on the
Trust's benchmark-relative returns. We maintained a focus on credit research
and fundamental analysis when selecting loans for the portfolio.
The better-performing individual positions in the Trust's portfolio during
period included the debt of Allison Transmission, a manufacturer of
automotive transmission systems, and loans to three health care industry
companies: AccentCare, a home health care and hospice services provider;
Gentiva, a home health care provider; and Virtual Radiologic, which operates
a network of radiologist practices.
6 Pioneer Floating Rate Trust | Annual Report | 11/30/14
Among the positions in the Trust's portfolio that underperformed during the
period were loans to Media General, a broadcasting company; Community Health
Systems, which operates a chain of rural hospitals; and CCS Medical, a
medical device manufacturer. The portfolio also held positions in loans to
several companies related to the oil industry, and those loans
underperformed late in the period as global oil prices declined
significantly; however, the negative influence of falling oil prices had
less of an effect on the bank-loan market than on the high-yield bond
market.
During the period, the default rate of the Trust's investments remained
significantly lower than that of the overall bank-loan market.
Q Could you address the performance of the Trust with regard to its level of
income-generation during the 12-month period ended November 30, 2014?
A The Trust needed to lower its monthly (per share) distribution twice during
the 12-month period, once in April and again in July. The reason for these
reductions was that over the course of 2013, strong demand for the types of
loans in which the Trust invests resulted in nearly 60% of these loans being
refinanced at lower interest rates. Rates dropped significantly during this
period. On average, rates dropped 70 basis points (bps), or 0.70%. In the
early part of 2013, the Trust had built up income reserves which were able
to compensate for the lower rates without requiring a reduction in the
distribution. However, these reserves were exhausted by year-end 2013.
Starting in early 2014, the effects of the re-financings on the Trust's
income became apparent and the Trust was forced to cut its distribution in
April. The re-financing trend continued into the first half of 2014, with
rates falling again by another 28 bps, or 0.28%. These even lower rates,
coupled with the Trust having a slightly higher-quality bias compared with
the Barclays Index, resulted in a second reduction of the Trust's dividend
in July.
During the period ended November 30, 2014, the market saw an increase in the
issuance of significantly higher-yielding second-lien loans, which are
generally lower-rated (CCC/B-) loans. These types of loans outperformed the
market on both an income and return basis during the 12-month period. The
Trust was underweight in these types of loans, which also had a negative
effect on investment income. It should be noted that in August the Trust's
investment policies were altered to more closely align with the Barclays
Index and the peer group. The new policies allow for more portfolio
investments in second liens and non-U.S. securities. With the changes to
the investment policies now in place, and given that U.S. GDP growth should
provide a strong fundamental footing, there may be
Pioneer Floating Rate Trust | Annual Report | 11/30/14 7
opportunities to increase the Trust's future investment income by adding
more risk exposure to the portfolio through investments in more single-B
loans, second liens and international (non-U.S.) securities.
Q How did the means of implementing leverage and the level of leverage in the
Trust change during the 12-month period ended November 30, 2014?
A The Trust historically employed leverage through the issuance of auction
market preferred shares (AMPS). Between December 3, 2013 and December 6,
2013, the Trust redeemed all of its outstanding AMPS. The Trust now employs
leverage via a revolving credit facility (see Note 7 to the financial
statements).
The dollar amount of leverage employed by the Trust was reduced from $182.5
million (on December 1, 2013) to $155.4 million in order to meet asset
coverage requirements related to the revolving credit facility (see Note 7).
At the end of the 12-month period on November 30, 2014, 32.9% of the Trust's
total managed assets were financed by leverage obtained through the
revolving credit facility, compared with 36.1% of the Trust's total managed
assets financed by leverage at the start of the period on December 1, 2013.
Q Did the Trust have any exposure to derivative securities during the 12-month
period ended November 30, 2014?
A Yes, the Trust did invest in currency forward contracts during the period as
part of our effort to reduce the risks associated with having exposure to
non-U.S. securities. The positions in currency forward contracts had no
notable impact on the Trust's results, and at the end of the period on
November 30, 2014, the Trust's portfolio had no exposure to any derivative
securities.
Q What is your investment outlook?
A We have a generally positive outlook for investing in floating-rate bank
loans. We believe that the domestic economy will continue to expand and that
corporate profits are likely to maintain their solid growth levels. That, in
turn, should provide a favorable backdrop for investments in corporate debt,
including bank loans.
Notwithstanding the favorable outlook, we do recognize the potential for
continued market volatility, primarily from factors outside the U.S., such
as a weakening of growth trends in China and Europe and the rise of
geopolitical risks (noted earlier) in Eastern Europe and the Middle East. In
addition, the recent, rapid decline in world oil prices could continue to
have both positive and negative effects on the bank-loan market.
8 Pioneer Floating Rate Trust | Annual Report | 11/30/14
Currently, the market for bank loans is widely discounted, and that should
give loans the potential for price appreciation. The discounted prices
should be especially appealing in light of the fact that current default
rates on bank loans are significantly lower than long-term historical
averages. Finally, we believe bank loans could become even more attractive
to investors if and when the Fed, eventually, begins to raise interest rates
and loan yields start increasing as the floating-rate features of loans are
activated.
Of course, it is possible that interest rates may not rise, loan yields may
not increase as anticipated, or, with continued strong U.S. economic
growth, loan spreads (interest rates) could compress even further prior to
any action by the Fed on interest rates. All of these scenarios could reduce
the Trust's net earnings or returns to shareholders (dividend).
Please refer to the Schedule of Investments on pages 14-40 for a full listing of
Trust securities.
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 for purchasing or selling
securities; to attempt to increase the fund'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 deemed to be 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.
Historically, the Trust employed leverage through the issuance of preferred
shares. The Trust has redeemed all of its outstanding preferred shares. The
Trust continues to employ 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.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 9
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.
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.
These risks may increase share price volatility.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
10 Pioneer Floating Rate Trust | Annual Report | 11/30/14
Portfolio Summary | 11/30/14
Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Senior Secured Floating Rate Loan Interests 94.7%
U.S. Government and Agency Obligations 1.6%
Collateralized Loan Obligations 1.6%
Corporate Bonds & Notes 0.7%
Exchange-Traded Funds 0.5%
Commercial Paper 0.3%
Common Stocks 0.2%
Asset Backed Securities 0.2%
Temporary Cash Investments 0.2%
10 Largest Holdings
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(As a percentage of long-term holdings)*
1. Cequel Communications LLC, Term Loan, 3.5%, 2/14/19 1.23%
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2. Wausau Paper Corp., Term Loan, 6.5%, 7/30/20 0.76
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3. Evergreen Skills Lux S.a r.l., First Lien Initial Term Loan, 5.75%, 4/28/21 0.75
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4. Bright Horizons Family Solutions LLC, Term B Loan, 5.0%, 1/30/20 0.75
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5. Appvion, Inc., Term Commitment, 5.75%, 6/28/19 0.75
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6. Telesat Canada, U.S. Term B-2 Loan, 3.5%, 3/28/19 0.74
------------------------------------------------------------------------------------------
7. Chrysler Group LLC, Term Loan B, 3.5%, 5/24/17 0.71
------------------------------------------------------------------------------------------
8. Goodyear Tire & Rubber Co., Second Lien Term Loan, 4.75%, 4/30/19 0.65
------------------------------------------------------------------------------------------
9. Affinion Group, Inc., Tranche B Term Loan, 6.75%, 4/30/18 0.65
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10. American Airlines, Inc., Class B Term Loan, 3.75%, 6/27/19 0.64
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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.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 11
Prices and Distributions | 11/30/14
Market Value per Common Share
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11/30/14 11/30/13
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Market Value $11.36 $12.41
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Discount (11.4)% (5.2)%
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Net Asset Value per Common Share
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--------------------------------------------------------------------------------
11/30/14 11/30/13
--------------------------------------------------------------------------------
$12.82 $13.06
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Distributions per Common Share*: 12/1/13-11/30/14
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--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
$0.80 $ -- $ --
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Yields
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
11/30/14 11/30/13
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30-day SEC Yield 5.17% 6.69%
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The data shown above represents past performance, which is no guarantee of
future results.
* The amount of distributions made to shareowners during the period was in
excess of the net investment income earned by the Trust during the period.
The Trust has accumulated undistributed net investment income which is part
of the Trust's NAV. A portion of this 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.
12 Pioneer Floating Rate Trust | Annual Report | 11/30/14
Performance Update | 11/30/14
Investment Returns
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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
common shares of Pioneer Floating Rate Trust during the periods shown, compared
with the values of the Barclays U.S. High Yield Loans Index, an unmanaged index
which measures the performance of high-yield loans, and the Credit Suisse (CS)
Leveraged Loan Index, an unmanaged index of senior, secured U.S.
dollar-denominated loans.
Average Annual Total Returns
(As of November 30, 2014)
--------------------------------------------------------------------------------
Barclays
Net CS U.S. High
Asset Leveraged Yield
Value Market Loan Loans
Period (NAV) Price Index Index
--------------------------------------------------------------------------------
Life-of-Trust
(12/28/04) 5.03% 3.28% 4.86%+ 5.00%+
5 Years 9.99 7.10 6.63 6.32
1 Year 4.74 -2.32 3.75 3.35
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Floating Barclays U.S. High CS Leveraged
Rate Trust Yield Loans Index* Loan Index**
12/28/2004 $10,000 $10,000
11/30/2005 $ 9,023 $10,065 $10,564
11/30/2006 $10,913 $10,628 $11,308
11/30/2007 $10,693 $10,898 $11,575
11/30/2008 $ 5,122 $ 7,946 $ 8,597
11/30/2009 $ 9,783 $11,505 $11,670
11/30/2010 $11,997 $12,825 $13,005
11/30/2011 $12,310 $13,089 $13,350
11/30/2012 $14,237 $14,389 $14,577
11/30/2013 $14,118 $15,203 $15,504
11/30/2014 $13,790 $15,719 $16,085
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 common 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 common share is total assets less
total liabilities, which include preferred shares, or borrowings, as applicable,
divided by the number of common 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 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.
* The Barclays U.S. High Yield Loans Index measures the performance of
high-yield loans. Since comparisons for the Barclays Index begin in 2006, the
chart assumes an initial investment of $10,065, which is equal to the Trust's
value at 12/30/2005.
** The CS Leveraged Loan Index (the CS Index) is a representative index of
tradeable, senior, secured U.S. dollar-denominated loans. The CS Index began in
January 1992. Comparisons to the Trust for the CS Index begin in 2004. The CS
Index was the Trust's benchmark through March 1, 2011, and was at that time
replaced by the Barclays Capital U.S. High Yield Loans Index (the Barclays
Index). Because the historical performance of the Barclays Index dates back only
to 2005, after the inception of the Trust in 2004, the Trust will
continue to provide "Market Value of $10,000 Investment" comparisons for both
the CS Index and the Barclays Index.
Returns of both indices are calculated monthly, assume reinvestment of dividends
and, unlike Trust returns, do not reflect any fees, expenses or sales charges.
The indices do not use leverage. You cannot invest directly in an index.
+ Return for the CS Leveraged Loan Index covers the entire performance history
of Pioneer Floating Rate Trust (December 28, 2004 through November 30,
2014). Return for the Barclays U.S. High Yield Loans Index covers the
maximum period for which that index's performance is available (December 30,
2005 through November 30, 2014).
Pioneer Floating Rate Trust | Annual Report | 11/30/14 13
Schedule of Investments | 11/30/14
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE
LOAN INTERESTS -- 138.1% of Net Assets*(a)
AUTOMOBILES & COMPONENTS -- 9.2%
Auto Parts & Equipment -- 6.7%
2,888,233 Allison Transmission, Inc., Term Loan B-3,
3.75%, 8/23/19 $ 2,884,172
2,000,000 BBB Industries US Holdings, Inc., First Lien Initial Term
Loan, 6.0%, 11/3/21 1,990,000
1,181,594 Cooper Standard Intermediate Holdco 2 LLC, Term Loan,
4.0%, 4/4/21 1,175,871
1,375,000 Crowne Group, LLC, First Lien Initial Term Loan,
6.0%, 9/30/20 1,361,250
783,038 Electrical Components International, Inc., Term Loan B,
5.75%, 5/28/21 786,626
1,630,238 Federal-Mogul Corp., Tranche C Term Loan (2014),
4.75%, 4/15/21 1,628,492
1,995,000 Henniges Automotive Holdings, Inc., Term Loan,
5.5%, 6/12/21 2,012,456
1,200,000 Jason, Inc., Term Loan, 5.5%, 6/30/21 1,198,500
1,700,000 Key Safety Systems, Inc., Initial Term Loan,
4.75%, 8/29/21 1,702,125
1,650,000 MPG Holdco I, Inc. Initial Term Loan, 3.5%, 10/20/21 1,658,767
1,207,390 TI Group Automotive Systems LLC, Additional Term Loan,
4.25%, 7/2/21 1,204,371
2,511,925 Tower Automotive Holdings USA LLC, Refinancing Term
Loan, 4.0%, 4/23/20 2,505,645
1,082,813 UCI International, Inc., (United Components), Term Loan,
5.5%, 7/26/17 1,083,715
--------------
$ 21,191,990
---------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 1.3%
3,260,861 Chrysler Group LLC, Term Loan B, 3.5%, 5/24/17 $ 3,250,671
798,000 Visteon Corp., Initial Term Loan, 3.5%, 4/9/21 792,015
--------------
$ 4,042,686
---------------------------------------------------------------------------------------------------------
Tires & Rubber -- 1.2%
995,475 American Tire Distributors, Inc., New 2014 Initial Term
Loan, 5.75%, 6/1/18 $ 999,208
3,000,000 Goodyear Tire & Rubber Co., Second Lien Term Loan,
4.75%, 4/30/19 3,010,125
--------------
$ 4,009,333
--------------
Total Automobiles & Components $ 29,244,009
---------------------------------------------------------------------------------------------------------
BANKS -- 0.4%
Thrifts & Mortgage Finance -- 0.4%
1,282,228 Ocwen Loan Servicing, Initial Term Loan,
5.0%, 2/15/18 $ 1,234,145
--------------
Total Banks $ 1,234,145
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Floating Rate Trust | Annual Report | 11/30/14
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 12.2%
AEROSPACE & DEFENSE -- 3.8%
1,131,741 Accudyne Industries Borrower S.C.A./Accudyne
Industries LLC, Refinancing Term Loan, 4.0%, 12/13/19 $ 1,108,871
1,500,000 BE Aerospace, Inc, Term Loan, 3.25%, 11/19/21 1,504,687
603,930 Cadence Aerospace Finance, Inc., Term Loan,
6.5%, 5/9/18 599,904
734,061 CPI International, Inc., Term B Loan, 4.25%, 11/17/17 728,250
409,432 DAE Aviation Holdings, Inc., Tranche B-1 Loan,
5.0%, 11/2/18 412,504
169,605 DAE Aviation Holdings, Inc., Tranche B-2 Loan,
5.0%, 11/2/18 171,301
1,642,980 Digitalglobe, Inc., Term Loan, 3.75%, 1/31/20 1,641,132
754,625 DynCorp International, Inc., Term Loan, 6.25%, 7/7/16 754,436
251,308 IAP Worldwide Services, Inc., First Lien Term Loan,
8.0%, 7/18/19 221,151
1,519,564 SI Organization, Inc., The First Lien Initial Term Loan,
5.75%, 11/23/19 1,524,629
496,183 Spirit Aerosystems, Inc., (fka Mid-Western Aircraft, Inc. and
Onex Wind Finance LP), Term Loan B, 3.25%, 9/15/20 492,338
712,670 TASC, Inc., First Lien Term Loan, 6.5%, 5/22/20 700,377
100,752 Vencore, Inc., Delayed Draw Term Loan, 5.75%, 11/23/19 101,088
1,478,712 WP Consolidated Precision Products Holdings LLC, First Lien
Term Loan, 4.75%, 12/28/19 1,477,788
680,000 WP Consolidated Precision Products Holdings LLC, Second
Lien Term Loan B-1, 8.75%, 4/30/21 678,725
--------------
$ 12,117,181
---------------------------------------------------------------------------------------------------------
Building Products -- 2.7%
1,314,975 Armstrong World Industries, Inc., Term Loan B,
3.5%, 3/15/20 $ 1,310,044
1,334,295 Interline Brands, Inc., First Lien Term Loan, 4.0%, 3/17/21 1,312,056
924,683 Nortek, Inc., Loan, 3.75%, 10/30/20 913,268
475,925 Quikrete Holdings, Inc., Initial First Lien Loan,
4.0%, 9/28/20 473,248
1,000,000 Quikrete Holdings, Inc., Initial Second Lien Loan,
7.0%, 3/26/21 1,010,000
1,710,822 Summit Materials LLC, Term B Loan, 5.0%, 1/30/19 1,719,109
1,805,259 Unifrax Holding Co., New Term B Dollar Loan,
4.25%, 11/28/18 1,793,223
--------------
$ 8,530,948
---------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.9%
477,600 Manitowoc Co., Inc., Term Loan B, 3.25%, 1/3/21 $ 472,824
1,370,000 Navistar, Inc., Tranche B, Term Loan, 5.75%, 8/17/17 1,386,698
855,935 Terex Corp., U.S. Term Loan, 3.5%, 8/13/21 852,725
--------------
$ 2,712,247
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 15
Schedule of Investments | 11/30/14 (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.7%
1,023,795 Pelican Products, Inc., First lien Tem Loan,
5.25%, 4/10/20 $ 1,019,316
1,189,134 WireCo WorldGroup, Inc., Term Loan, 6.0%, 2/15/17 1,193,222
--------------
$ 2,212,538
---------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.8%
1,500,000 Filtration Group Corp., Second Lien Initial Term Loan,
8.25%, 11/22/21 $ 1,504,219
425,000 Gates Global LLC, Initial Dollar Term Loan, 4.25%, 7/5/21 421,433
682,211 Milacron LLC, Term Loan, 4.0%, 3/28/20 675,389
--------------
$ 2,601,041
---------------------------------------------------------------------------------------------------------
Industrial Machinery -- 3.1%
1,488,722 Gardner Denver, Inc., Initial Dollar Term Loan,
4.25%, 7/30/20 $ 1,454,605
1,019,875 Hampton Rubber Co., First Lien Term Loan,
5.0%, 3/27/21 1,000,752
2,000,000 Mueller Water Products, Inc., Initial Term Loan,
3.25%, 11/25/21 2,008,750
1,675,000 NN, Inc., Loan, 6.0%, 8/27/21 1,673,953
2,103,660 Schaeffler AG, Facility B-USD, 4.25%, 5/15/20 2,110,086
498,737 Wastequip LLC, Term Loan, 5.5%, 8/9/19 500,608
1,098,342 Xerium Technologies, Inc., New Term Loan,
6.75%, 5/17/19 1,099,029
--------------
$ 9,847,783
---------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.2%
711,169 WESCO Distribution, Inc., Tranche B-1 Loan,
3.75%, 12/12/19 $ 710,427
--------------
Total Capital Goods $ 38,732,165
---------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 6.5%
Diversified Support Services -- 1.2%
1,067,925 InfoGroup, Inc., Term Loan B, 7.5%, 5/26/18 $ 991,390
712,672 KAR Auction Services, Inc., Tranche B-2 Term Loan,
3.5%, 3/11/21 709,777
1,500,000 Language Line LLC, Second Lien Loan, 10.5%, 12/20/16 1,495,001
653,186 Language Line LLC, Tranche B Term Loan, 6.25%, 6/20/16 652,777
--------------
$ 3,848,945
---------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 2.3%
593,955 ADS Waste Holdings, Inc., Initial Tranche B-2 Term Loan,
3.75%, 10/9/19 $ 584,118
727,833 Convata Energy Corp., Term Loan, 3.25%, 3/28/19 728,441
478,927 Granite Acquisition, Inc., First Lien Term B Loan,
4.0%, 10/15/21 483,567
The accompanying notes are an integral part of these financial statements.
16 Pioneer Floating Rate Trust | Annual Report | 11/30/14
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- (continued)
21,073 Granite Acquisition, Inc., First Lien Term C Loan,
4.0%, 10/15/21 $ 21,277
1,500,000 Granite Acquisition, Inc., Second Lien Term B Loan,
7.25%, 10/14/22 1,522,500
294,750 Progressive Waste Solutions Ltd., Term B Loan,
3.0%, 10/24/19 296,347
1,246,875 U.S. Ecology, Inc., Term Loan, 3.75%, 6/17/21 1,245,316
986,173 Waste Industries USA, Inc., Term Loan B, 4.0%, 3/17/17 982,886
1,398,636 WCA Waste Corp. (WCA Waste Systems, Inc.), Term Loan,
4.0%, 3/23/18 1,386,616
--------------
$ 7,251,068
---------------------------------------------------------------------------------------------------------
Human Resource & Employment Services -- 0.3%
950,739 On Assignment, Inc., Initial Term B Loan, 3.5%, 5/15/20 $ 946,382
---------------------------------------------------------------------------------------------------------
Research & Consulting Services -- 0.3%
887,855 Wyle Services Corp., Term Loan, 5.0%, 5/23/21 $ 887,293
---------------------------------------------------------------------------------------------------------
Security & Alarm Services -- 2.4%
1,011,465 Allied Security Holdings LLC, First Lien Closing Date Term
Loan, 4.25%, 2/12/21 $ 1,006,408
1,089,041 Allied Security Holdings LLC, Second Lien Closing Date
Term Loan, 8.0%, 8/13/21 1,085,864
99,825 Garda World Security Corp., Term B Delayed Draw Loan,
4.0%, 11/6/20 98,660
390,225 Garda World Security Corp., Term B Loan, 4.0%, 11/6/20 385,672
1,175,575 GEO Group, Inc., Term Loan, 3.25%, 4/3/20 1,168,228
2,359,785 Monitronics International, Inc., 2013 Term Loan B,
4.25%, 3/23/18 2,358,311
1,484,321 Protection One, Inc., 2012 Term Loan, 4.25%, 3/21/19 1,480,919
--------------
$ 7,584,062
--------------
Total Commercial & Professional Services $ 20,517,750
---------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 3.7%
Apparel, Accessories & Luxury Goods -- 0.6%
783,038 Nine West Holdings, Inc., Initial Term Loan,
4.75%, 10/8/19 $ 755,631
1,203,057 Renfro Corp., Tranche B Term Loan, 5.75%, 1/30/19 1,148,920
--------------
$ 1,904,551
---------------------------------------------------------------------------------------------------------
Home Furnishings -- 1.0%
1,963,981 Serta Simmons Holdings LLC, Term Loan,
4.25%, 10/1/19 $ 1,963,629
1,177,685 Tempur Pedic International, Inc., Term Loan B,
3.5%, 3/18/20 1,166,644
--------------
$ 3,130,273
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 17
Schedule of Investments | 11/30/14 (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Homebuilding -- 0.1%
1,000,000(b)(c)(d) WAICCS Las Vegas 3 LLC, First Lien Term Loan,
7.75%, 8/1/10 $ 400,000
4,500,000(b)(c)(d) WAICCS Las Vegas 3 LLC, Second Lien Term Loan,
13.25%, 7/30/09 22,504
--------------
$ 422,504
---------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 1.2%
2,282,816 Reynolds Group Holdings, Inc., Incremental U.S.
Term Loan, 4.0%, 12/1/18 $ 2,279,536
1,574,867 World Kitchen LLC, U.S. Term Loan, 5.5%, 3/4/19 1,576,835
--------------
$ 3,856,371
---------------------------------------------------------------------------------------------------------
Leisure Products -- 0.2%
569,121 Bauer Performance Sports, Ltd., Initial Term Loan,
4.0%, 4/15/21 $ 565,327
---------------------------------------------------------------------------------------------------------
Textiles -- 0.6%
1,720,988 Klockner Pentaplast of America, Inc., Term Loan B-1,
4.75%, 12/21/16 $ 1,724,215
--------------
Total Consumer Durables & Apparel $ 11,603,241
---------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 11.1%
Casinos & Gaming -- 1.9%
1,045,654 CityCenter Holdings LLC, Term B loan, 4.25%, 10/16/20 $ 1,046,047
166,725 Las Vegas Sands LLC, Term B Loan, 3.25%, 12/19/20 166,605
1,473,750 MGM Resorts International (MGM Grand Detroit LLC),
Term B Loan, 3.5%, 12/20/19 1,456,402
1,950,000 Scientific Games International, Inc., Initial Term B-2
Loan, 6.0%, 10/1/21 1,923,492
1,342,500 Seminole Tribe of Florida, Initial Term Loan,
3.0%, 4/29/20 1,341,661
--------------
$ 5,934,207
---------------------------------------------------------------------------------------------------------
Education Services -- 2.9%
3,466,991 Bright Horizons Family Solutions LLC, Term B Loan,
5.0%, 1/30/20 $ 3,444,455
940,875 Houghton Mifflin Holdings, Inc., Term Loan,
4.25%, 5/22/18 940,287
1,477,220 Laureate Education, Inc., Series 2018 Extended Term
Loan, 5.0%, 6/15/18 1,434,749
1,475,111 McGraw-Hill Global Education Holdings LLC, Term B
Loan Refinancing, 5.75%, 3/22/19 1,481,258
1,860,938 McGraw-Hill School Education Holdings LLC, Term B
Loan, 6.25%, 12/18/19 1,867,140
--------------
$ 9,167,889
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Floating Rate Trust | Annual Report | 11/30/14
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.4%
671,053 Hilton Worldwide Finance LLC, Initial Term Loan,
3.5%, 10/26/20 $ 665,600
525,000 NCL Corp., Ltd., Term B Loan, 3.25%, 11/19/21 527,707
--------------
$ 1,193,307
---------------------------------------------------------------------------------------------------------
Internet Software & Services -- 0.3%
980,044 Sabre, Inc., Term B Loan, 4.0%, 2/19/19 $ 974,776
---------------------------------------------------------------------------------------------------------
Leisure Facilities -- 1.4%
864,425 Cedar Fair LP, U.S. Term Facility, 3.25%, 3/6/20 $ 863,157
2,244,375 Fitness International LLC, Term B Loan, 5.5%, 7/1/20 2,221,931
1,502,992 Six Flags Theme Parks, Inc., Tranche B Term Loan,
3.5%, 12/20/18 1,500,487
--------------
$ 4,585,575
---------------------------------------------------------------------------------------------------------
Restaurants -- 3.0%
1,099,560 Burger King Corp., 2012 Tranche B Term Loan,
3.75%, 9/28/19 $ 1,099,388
1,000,000 Burger King Corp., Term B Loan, 4.5%, 10/27/21 1,003,836
2,381,626 Landry's, Inc., (fka Landry's Restaurants, Inc.), Term
Loan B, 4.0%, 4/24/18 2,381,874
1,779,375 NPC International, Inc., 2013 Term Loan, 4.0%, 12/28/18 1,717,097
2,000,000 Red Lobster Management LLC, First Lien Initial Term
Loan, 6.25%, 7/28/21 2,005,834
1,501,531 Wendy's International, Inc., Term B Loan, 3.25%, 5/15/19 1,496,169
--------------
$ 9,704,198
---------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 1.2%
1,496,250 Genex Holdings, Inc., First Lien Term B Loan,
5.25%, 5/28/21 $ 1,501,861
709,661 Learning Care Group (US) No. 2, Inc., Term Loan,
5.5%, 5/5/21 712,323
1,970,000 Weight Watchers International, Inc., Initial Tranche B-2
Term Loan, 4.0%, 4/2/20 1,530,034
--------------
$ 3,744,218
--------------
Total Consumer Services $ 35,304,170
---------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.7%
Consumer Finance -- 0.4%
1,393,000 Trans Union LLC, First Lien Term Loan B, 4.0%, 4/9/21 $ 1,383,133
---------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.7%
1,207,233 Duff & Phelps Corp., Initial Term Loan, 4.5%, 4/23/20 $ 1,204,970
742,500 Guggenheim Partners Investment Management
Holdings LLC, Initial Term Loan, 4.25%, 7/22/20 742,314
105,576 LPL Holdings, Inc., 2013 Incremental Tranche B
Term Loan, 3.25%, 3/29/19 104,784
--------------
$ 2,052,068
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 19
Schedule of Investments | 11/30/14 (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 2.3%
1,435,629 AWAS Finance Luxembourg 2012 SA, Term Loan,
3.5%, 7/16/18 $ 1,427,852
325,000 Delos Finance, S.a r.l., Term Loan, 3.5%, 3/6/21 325,203
857,253 Fly Funding II S.a.r.l., Term Loan, 4.5%, 8/9/19 858,325
1,481,132 Harland Clarke Holdings Corp. (fka Clarke American Corp.),
Tranche B-4 Term Loan, 6.0%, 8/4/19 1,489,927
2,024,375 Livingston International, Inc., First Lien Initial Term B-1
Loan, 5.0%, 4/18/19 1,964,909
349,123 Nord Anglia Education Finance LLC, Initial Term Loan,
4.5%, 3/31/21 349,996
989,394 Ship Luxco 3 S.a.r.l. (RBS Worldpay), Facility B2A,
5.25%, 11/29/19 993,104
--------------
$ 7,409,316
---------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.3%
975,000 Expro Finservices S.a r.l., Initial Term Loan,
5.75%, 9/2/21 $ 936,000
--------------
Total Diversified Financials $ 11,780,517
---------------------------------------------------------------------------------------------------------
ENERGY -- 5.7%
Coal & Consumable Fuels -- 0.2%
222,015 Foresight Energy LLC, Term Loan, 5.5%, 8/21/20 $ 223,402
783,333 PT Bumi Resources Tbk, Term Loan, 18.0%, 11/7/14 329,000
--------------
$ 552,402
---------------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.8%
1,450,000 Chief Exploration & Development LLC, Second Lien
Term Loan, 7.5%, 5/16/21 $ 1,392,000
844,687 ExGen Renewables LLC, Term Loan, 5.25%, 2/6/21 856,038
405,740 Glenn Pool Oil & Gas Trust 1, Term Loan, 4.5%, 5/2/16 406,755
--------------
$ 2,654,793
---------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 1.1%
2,500,000 Jonah Energy LLC, Second Lien Initial Loan,
7.5%, 5/12/21 $ 2,387,500
604,487 Offshore Group Investment, Ltd., (Vantage Delaware
Holdings LLC), Second Lien Term Loan, 5.75%, 3/28/19 504,747
751,376 Pacific Drilling SA, Term Loan, 4.5%, 6/3/18 699,405
--------------
$ 3,591,652
---------------------------------------------------------------------------------------------------------
Oil & Gas Equipment -- 0.3%
923,025 FR Dixie Acquisition Corp., Term Loan, 5.75%, 12/18/20 $ 904,565
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Floating Rate Trust | Annual Report | 11/30/14
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.5%
133,636 FTS International, Inc. (fka Frac Tech International LLC)
Initial Term Loan, 5.75%, 4/16/21 $ 127,734
1,500,000 Templar Energy LLC, Second Lien New Term Loan,
8.5%, 11/25/20 1,327,500
--------------
$ 1,455,234
---------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.3%
1,516,667 EP Energy LLC, Tranche B-3 Term Loan, 3.5%, 5/24/18 $ 1,493,158
164,204 Fieldwood Energy LLC, Closing Date Second Lien Term
Loan, 8.375%, 9/30/20 148,707
892,368 Fieldwood Energy LLC, Closing Date Term Loan,
3.875%, 9/28/18 856,674
1,600,000 Samson Investment Co., Tranche 1 Second Lien Term
Loan, 5.0%, 9/25/18 1,462,333
--------------
$ 3,960,872
---------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 1.3%
1,000,000 CITGO Petroleum Corp., Term B Loan, 4.5%, 7/29/21 $ 1,001,875
1,571,808 Green Plains Processing LLC, Loan, 6.5%, 6/30/20 1,563,949
1,284,552 Pilot Travel Centers LLC, Initial Tranche B Term Loan,
4.25%, 10/1/21 1,290,975
398,995 Western Refining, Inc., Term Loan 2013,
4.25%, 11/12/20 398,247
--------------
$ 4,255,046
---------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.2%
698,250 Southcross Energy Partners LP, Initial Term Loan,
5.25%, 8/4/21 $ 699,996
--------------
Total Energy $ 18,074,560
---------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.5%
Drug Retail -- 0.9%
1,740,638 Hearthside Group Holdings LLC, Term Loan, 4.5%, 6/2/21 $ 1,747,165
1,243,750 Rite Aid Corp., Tranche 7 Term Loan, 3.5%, 2/21/20 1,237,402
--------------
$ 2,984,567
---------------------------------------------------------------------------------------------------------
Food Distributors -- 0.8%
2,468,762 Mill US Acquisition, First Lien Term Loan, 5.0%, 7/3/20 $ 2,434,816
---------------------------------------------------------------------------------------------------------
Food Retail -- 0.8%
1,989,987 Albertson's LLC, Term B-2 Loan, 4.75%, 3/21/19 $ 1,990,485
500,000 Packers Holdings LLC, Term Loan, 4.0%, 11/25/21 502,500
--------------
$ 2,492,985
--------------
Total Food & Staples Retailing $ 7,912,368
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 21
Schedule of Investments | 11/30/14 (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.4%
Agricultural Products -- 0.6%
987,499 Arysta LifeScience SPC LLC, Initial First Lien Term Loan,
4.5%, 5/29/20 $ 986,721
953,475 Arysta LifeScience SPC LLC, Initial Second Lien Term
Loan, 8.25%, 11/30/20 965,096
--------------
$ 1,951,817
---------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 3.8%
445,359 AdvancePierre Foods, Inc., First Lien Term Loan,
5.75%, 7/10/17 $ 446,082
1,000,000 Boulder Brands, Inc. (fka Smart Balance, Inc.),
Term Loan, 4.5%, 7/9/20 994,375
1,422,243 Del Monte Corp., Initial Term Loan, 3.5%, 3/9/20 1,376,191
1,000,000 Del Monte Foods, Inc., Second Lien Initial Loan,
8.25%, 8/18/21 872,500
1,629,375 H.J. Heinz Co., Term B-2 Loan, 3.5%, 6/5/20 1,630,903
1,990,000 New Hostess Brands Acquisition LLC, Term B Loan,
6.75%, 4/9/20 2,038,506
1,945,801 Pinnacle Foods Finance LLC, New Term Loan G,
3.0%, 4/29/20 1,922,695
1,246,875 Post Holdings, Inc., Series A Incremental Term Loan,
3.75%, 6/2/21 1,246,875
1,500,000 Shearer's Foods LLC, First Lien Term Loan,
4.5%, 6/30/21 1,499,063
--------------
$ 12,027,190
--------------
Total Food, Beverage & Tobacco $ 13,979,007
---------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 11.4%
Health Care Equipment -- 0.5%
1,759,000 Accellent, Inc. (Medical Device/UTI), Second Lien Term
Loan, 7.5%, 3/11/22 $ 1,711,727
---------------------------------------------------------------------------------------------------------
Health Care Equipment & Services -- 0.3%
875,649 Kinetic Concepts, Inc., Dollar E-1 Term Loan,
4.0%, 5/4/18 $ 872,981
---------------------------------------------------------------------------------------------------------
Health Care Facilities -- 2.2%
698,250 AmSurg Corp., Initial Term Loan, 3.75%, 7/16/21 $ 697,450
806,059 CHS/Community Health Systems, Inc., 2021 Term D
Loan, 4.25%, 1/27/21 808,956
302,429 CHS/Community Health Systems, Inc., Extended
Term Loan, 3.486%, 1/25/17 302,405
1,592,755 Iasis Healthcare LLC, Term B-2 Loan, 4.5%, 5/3/18 1,597,733
1,085,537 Kindred Healthcare, Inc., New Term Loan, 4.0%, 4/9/21 1,079,656
1,565,947 Regionalcare Hospital Partners, Inc., First Lien Term
Loan, 6.0%, 4/23/19 1,563,990
The accompanying notes are an integral part of these financial statements.
22 Pioneer Floating Rate Trust | Annual Report | 11/30/14
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Health Care Facilities -- (continued)
439,005 Select Medical Corp., Series Tranche B Term Loan,
5.0%, 6/1/18 $ 437,359
492,500 United Surgical Partners International, Inc., New Tranche
B Term Loan, 4.75%, 4/3/19 493,731
--------------
$ 6,981,280
---------------------------------------------------------------------------------------------------------
Health Care Services -- 5.9%
617,774 AccentCare, Inc., Term Loan, 7.25%, 12/22/16 $ 549,819
543,127 Alliance Healthcare Services, Inc., Initial Term Loan,
4.25%, 6/3/19 538,827
726,260 Ardent Medical Services, Inc., First Lien Term Loan,
6.75%, 7/2/18 728,983
625,000 Bioscrip, Inc., Initial Term B Loan, 5.25%, 7/31/20 628,125
865,683 BSN Medical Luxembourg Holding, S.a.r.l. (P & F Capital),
Facility Term Loan B-1A, 4.0%, 8/28/19 865,683
1,044,315(e) CCS Medical, Inc., Second Lien Term Loan, 12.25%
(7.0% PIK 3.25% cash), 3/31/16 208,863
886,762 DaVita HealthCare Partners, Inc., Term Loan B2,
3.5%, 6/24/21 883,357
1,179,169 Emergency Medical Services Corp., Initial Term Loan,
4.0%, 5/25/18 1,175,631
2,567,876 Gentiva Health Services, Inc., Initial Term Loan B,
6.5%, 10/18/19 2,577,105
1,266,138 National Mentor Holdings, Inc., Tranche B Term Loan,
4.75%, 1/31/21 1,264,160
396,008 National Surgical Hospitals, Inc., Term Loan,
5.25%, 8/1/19 395,512
700,000 NVA Holdings, Inc., First Lien Term Loan, 4.75%, 8/14/21 700,875
1,849,964(e) Rural/Metro Operating Co., LLC, First Lien Term Loan, 9.0%
(1.0% PIK 8.0% cash), 6/30/18 1,752,840
1,000,000 Sterigenics Holding Corp., Initial Term Loan, 4.5%, 8/6/21 999,583
1,234,375 Steward Health Care System LLC, Term Loan,
6.75%, 4/10/20 1,227,432
1,000,000 Surgery Center Holdings, Inc., Initial Term Loan,
5.25%, 11/3/20 1,001,458
1,434,135 U.S. Renal Care, Inc., Tranche First Lien B-2 Term Loan,
4.25%, 7/3/19 1,433,239
606,912 Valitas Health Services, Inc., Term Loan B, 6.0%, 6/2/17 581,118
1,633,964(c) Virtual Radiologic Corp., Term Loan A, 7.25%, 12/22/16 1,274,492
--------------
$ 18,787,102
---------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.6%
704,571 Alere, Inc., Term Loan B, 5.5%, 6/30/17 $ 704,277
548,530 Biomet, Inc., Dollar Term B Loan, 3.156%, 3/25/15 548,187
500,000 Halyard Health, Inc., Term Loan, 4.0%, 11/1/21 502,372
--------------
$ 1,754,836
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 23
Schedule of Investments | 11/30/14 (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Health Care Technology -- 1.6%
888,536 ConvaTec, Inc., Dollar Term Loan, 4.0%, 12/22/16 $ 891,024
2,071,689 Emdeon, Inc., Term B-2 Loan, 3.75%, 11/2/18 2,064,569
464,354 MedAssets, Inc., Term B Loan, 4.0%, 12/13/19 462,033
997,801 Medical Card System, Inc., Term Loan, 12.0%, 9/17/15 957,889
733,209 Truven Health Analytics, Inc., Tranche B Term Loan,
4.5%, 6/6/19 721,295
--------------
$ 5,096,810
---------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.3%
489,957 MMM Holdings, Inc., MMM Term Loan, 9.75%, 12/12/17 $ 475,258
356,209 MSO of Puerto Rico, Inc., Term Loan, 9.75%, 12/12/17 352,647
--------------
$ 827,905
--------------
Total Health Care Equipment & Services $ 36,032,641
---------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 3.0%
Household Products -- 1.7%
215,086 Polarpak, Inc., Term Loan, 4.5%, 6/7/20 $ 214,817
1,480,545 Spectrum Brands, Inc., Tranche C Term Loan, 3.5%, 9/4/19 1,474,438
1,354,362 SRAM LLC, First Lien Term Loan, 5.25%, 4/10/20 1,334,047
413,578 Waddington North America, Inc., Term Loan 2013,
4.5%, 6/7/20 413,061
1,867,259 Wash MultiFamily Laundry Systems LLC, U.S. Term Loan,
5.75%, 2/21/19 1,847,419
--------------
$ 5,283,782
---------------------------------------------------------------------------------------------------------
Personal Products -- 1.3%
2,094,571 NBTY, Inc., B-2 Term Loan, 3.5%, 10/1/17 $ 2,063,901
741,398 Party City Holdings, Inc., 2014 Replacement Term Loan,
4.0%, 7/27/19 735,489
1,024,915 Prestige Brands, Inc., Term B-1 Loan, 4.125%, 1/31/19 1,026,624
468,403 Prestige Brands, Inc., Term B-2 Loan, 4.5%, 9/3/21 470,842
--------------
$ 4,296,856
--------------
Total Household & Personal Products $ 9,580,638
---------------------------------------------------------------------------------------------------------
INSURANCE -- 2.7%
Insurance Brokers -- 0.3%
982,515 AmWins Group LLC, Term Loan, 5.0%, 9/6/19 $ 985,893
---------------------------------------------------------------------------------------------------------
Life & Health Insurance -- 0.3%
922,198 CNO Financial Group, Inc., Tranche B-2 Term Loan,
3.75%, 9/28/18 $ 919,317
---------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.7%
1,222,088 Alliant Holdings I LLC, Initial Term Loan,
4.25%, 12/20/19 $ 1,208,339
992,500 Hyperion Finance S.a.r.l., Term Loan, 5.75%, 10/17/19 991,259
--------------
$ 2,199,598
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Floating Rate Trust | Annual Report | 11/30/14
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 1.4%
2,430,405 Confie Seguros Holding II Co., First Lien Term Loan B,
5.75%, 11/9/18 $ 2,431,166
1,940,586 USI, Inc., 2013 Initial Term Loan, 4.25%, 12/27/19 1,921,180
--------------
$ 4,352,346
--------------
Total Insurance $ 8,457,154
---------------------------------------------------------------------------------------------------------
MATERIALS -- 14.8%
Aluminum -- 1.7%
1,350,375 Noranda Aluminum Acquisition Corp., Term Loan B,
5.75%, 2/28/19 $ 1,318,304
2,165,699 Novelis, Inc., Initial Term Loan, 3.75%, 3/10/17 2,164,345
1,885,750 Turbocombustor Technology, Inc., Initial Term Loan,
5.5%, 12/2/20 1,888,107
--------------
$ 5,370,756
---------------------------------------------------------------------------------------------------------
Commodity Chemicals -- 2.0%
1,915,069 AZ Chem US, Inc., First Lien Initial Term Loan,
5.75%, 6/11/21 $ 1,917,462
1,000,000 Citadel Plastics Holdings, Inc., Second Lien Term Loan,
8.0%, 11/5/21 1,005,000
214,000 Citadel Plastics Holdings, Inc., Term Loan B,
4.25%, 11/5/20 214,535
1,250,000 Eco Services Operations LLC, First Lien Term Loan,
3.75%, 12/1/21 1,253,125
1,170,247 Taminco Global Chemical Corp., Initial Tranche B-3 Dollar
Term Loan, 4.75%, 2/15/19 1,168,784
813,742 Tronox Pigments (Netherlands) B.V., Closing Date Term
Loan, 4.0%, 3/19/20 809,674
--------------
$ 6,368,580
---------------------------------------------------------------------------------------------------------
Construction Materials -- 0.2%
600,000 Penn Engineering & Manufacturing Corp., Tranche B Term
Loan, 4.5%, 8/30/21 $ 599,500
---------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 2.1%
1,783,966 Axalta Coating Systems Dutch Holding B B.V. & Axalta
Coating Systems U.S. Holdings, Inc., Refinanced Term B
Loan, 3.75%, 2/1/20 $ 1,764,852
636,351 Eagle Spinco, Inc., Term Loan, 3.5%, 1/28/17 637,147
1,833,500 Nexeo Solutions LLC, Initial Term Loan, 5.0%, 9/8/17 1,822,805
700,000 Orion Engineered Carbons GmbH (OEC Finance US LLC),
Initial Dollar Term Loan, 5.0%, 7/25/21 702,625
310,535 Royal Adhesives and Sealants LLC, First Lien Term B Loan,
5.5%, 7/31/18 312,087
1,329,146 Univar, Inc., Term Loan B, 5.0%, 6/30/17 1,324,682
--------------
$ 6,564,198
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 25
Schedule of Investments | 11/30/14 (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.5%
2,941,528 FMG Resources (August 2006) Pty Ltd. (FMG America
Finance, Inc.), Term Loan, 3.75%, 6/30/19 $ 2,765,037
995,000 Hi-Crush Partners LP, Advance, 4.75%, 4/28/21 973,856
1,016,138 U.S. Silica Co., Term Loan, 4.0%, 7/23/20 1,011,057
--------------
$ 4,749,950
---------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 1.2%
1,162,088 BWay Intermediate Co., Inc., Initial Term Loan,
5.5%, 8/14/20 $ 1,167,172
1,400,000 Crown Americas LLC, Term Loan B Facility,
3.25%, 10/22/21 1,408,120
1,358,620 Tank Holding Corp., Initial Term Loan, 5.5%, 7/9/19 1,345,033
--------------
$ 3,920,325
---------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.3%
163,715 Caraustar Industries, Inc., Term Loan, 7.5%, 5/1/19 $ 165,066
824,918 Pro Mach Group, Inc., First Lien Dollar Term Loan,
5.5%, 10/22/21 829,302
--------------
$ 994,368
---------------------------------------------------------------------------------------------------------
Paper Products -- 2.6%
3,456,250 Appvion, Inc., Term Commitment, 5.75%, 6/28/19 $ 3,437,528
600,463 Exopack Holdings SA, USD Term Loan, 5.25%, 5/8/19 604,215
215,000 Ranpak Corp., First Lien USD Term Loan, 4.75%, 10/1/21 214,820
500,000 Ranpak Corp., Second Lien Initial Term Loan,
8.25%, 10/3/22 501,668
3,491,250 Wausau Paper Corp., Term Loan, 6.5%, 7/30/20 3,473,794
--------------
$ 8,232,025
---------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 1.8%
716,448 Chemtura Corp., New Term Loan, 5.0%, 8/29/16 $ 717,492
1,800,000 Ferro Corp., Term Loan, 4.0%, 7/30/21 1,788,750
151,603 Huntsman International LLC, Extended Term B Loan,
2.706%, 4/19/17 149,708
1,000,000 Macdermid, Inc., First Lien Tranche B Term Loan,
4.0%, 6/7/20 989,750
1,965,000 PQ Corp., 2014 Term Loan, 4.0%, 8/7/17 1,954,474
--------------
$ 5,600,174
---------------------------------------------------------------------------------------------------------
Steel -- 1.4%
2,020,750 Atkore International, Inc., First Lien Initial Term Loan,
4.5%, 4/9/21 $ 2,013,172
1,375,000 Essar Steel Algoma, Inc., Initial Term Loan,
6.5%, 8/16/19 1,376,719
The accompanying notes are an integral part of these financial statements.
26 Pioneer Floating Rate Trust | Annual Report | 11/30/14
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Steel -- (continued)
876,081 JMC Steel Group, Inc., Term Loan, 4.75%, 4/1/17 $ 874,417
297,750 TMS International Corp., Term B Loan, 4.5%, 10/16/20 297,253
--------------
$ 4,561,561
--------------
Total Materials $ 46,961,437
---------------------------------------------------------------------------------------------------------
MEDIA -- 14.8%
Advertising -- 2.1%
40,159 Advantage Sales & Marketing, Inc., Delayed Draw Term
Loan, 4.25%, 7/23/21 $ 39,933
1,204,780 Advantage Sales & Marketing, Inc., First Lien Initial Term
Loan, 4.25%, 7/23/21 1,198,003
3,096,565 Affinion Group, Inc., Tranche B Term Loan,
6.75%, 4/30/18 2,981,992
2,014,125 Crossmark Holdings, Inc., First Lien Term Loan,
4.5%, 12/20/19 1,974,682
398,216 Getty Images, Inc., New Initial Term Loan,
4.75%, 10/18/19 377,641
--------------
$ 6,572,251
---------------------------------------------------------------------------------------------------------
Broadcasting -- 3.9%
414,700 CBS Outdoor Americas Capital LLC (CBS Outdoor
Americas Capital Corp.), Term Loan, 3.0%, 1/31/21 $ 407,665
638,400 Checkout Holding Corp., First Lien Term B Loan,
4.5%, 4/9/21 623,770
1,000,000 Checkout Holding Corp., Second Lien Initial Loan,
7.75%, 4/11/22 951,250
302,581 Entercom Radio LLC, Term B-2 Loan, 4.0%, 11/23/18 302,770
596,900 Gray Television, Inc., Initial Term Loan, 3.75%, 6/13/21 592,920
577,863 Hubbard Radio LLC, First Lien Term Loan, 4.5%, 4/29/19 574,251
1,896,000 MCC Iowa LLC, Tranche H Term Loan, 3.25%, 1/29/21 1,867,560
2,125,085 NEP/NCP Holdco, Inc., Incremental First Lien Term Loan,
4.25%, 1/22/20 2,102,063
886,667 Salem Communications Corp., Term Loan, 4.5%, 3/13/20 877,246
1,000,000 Sinclair Television Group, Inc., Incremental Tranche B-1
Term Loan, 3.5%, 7/30/21 993,125
1,025,990 Sinclair Television Group, Inc., Tranche B Term Loan,
3.0%, 4/9/20 1,007,394
2,173,521 Univision Communications, Inc., First-Lien Term Loan,
4.0%, 3/1/20 2,155,353
--------------
$ 12,455,367
---------------------------------------------------------------------------------------------------------
Cable & Satellite -- 6.2%
5,712,507 Cequel Communications LLC, Term Loan, 3.5%, 2/14/19 $ 5,669,664
2,019,438 Charter Communications Operating LLC, Term F Loan,
3.0%, 1/3/21 1,995,095
2,000,000 Endemol, Term Loan, 6.75%, 8/13/21 1,965,000
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 27
Schedule of Investments | 11/30/14 (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Cable & Satellite -- (continued)
249,375 Learfield Communications, Inc., First Lien 2014
Replacement Term Loan, 4.5%, 10/9/20 $ 249,687
685,000 Learfield Communications, Inc., Initial Second Lien Term
Loan, 8.75%, 10/8/21 683,287
1,715,000 MCC Iowa LLC, Tranche G Term Loan, 4.0%, 1/20/20 1,694,634
3,424,068 Telesat Canada, U.S. Term B-2 Loan, 3.5%, 3/28/19 3,397,675
1,660,000 Virgin Media Investment Holdings, Ltd., New Term Loan B,
3.5%, 6/7/20 1,646,340
2,213,729 WideOpenWest Finance LLC, Term Loan B, 4.75%, 4/1/19 2,213,499
--------------
$ 19,514,881
---------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 2.0%
1,169,784 AMC Entertainment, Inc., Initial Term Loan,
3.5%, 4/30/20 $ 1,161,450
603,433 Cinedigm Digital Funding I LLC, Term Loan,
3.75%, 2/28/18 603,433
970,588 Kasima LLC, Term Loan, 3.25%, 5/17/21 962,702
700,000 MediArena Acquisition B.V., USD Term Loan,
5.75%, 8/13/21 687,750
1,086,250 Seminole Hard Rock Entertainment, Inc., Term Loan B,
3.5%, 5/14/20 1,077,650
2,041,875 WMG Acquisitions Corp., Tranche B Refinancing Term
Loan, 3.75%, 7/1/20 2,001,548
--------------
$ 6,494,533
---------------------------------------------------------------------------------------------------------
Publishing -- 0.6%
495,885 Cengage Learning Acquisitions, Inc. (fka TL Acquisitions,
Inc.), Term Loan, 7.0%, 3/31/20 $ 497,435
535,942 Interactive Data Corp., Term Loan, 4.75%, 5/2/21 539,124
335,160 Lee Enterprises, Inc., First Lien Term Loan, 7.25%, 3/31/19 335,361
447,903 MTL Publishing LLC, Term Loan B, 3.75%, 6/29/18 445,184
--------------
$ 1,817,104
--------------
Total Media $ 46,854,136
---------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 2.5%
Biotechnology -- 0.3%
923,718 Alkermes, Inc., 2019 Term Loan, 3.5%, 9/25/19 $ 917,367
---------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 2.2%
3,517,251(e) Graceway Pharmaceuticals LLC, Mezzanine Term Loan,
14.00% (14.0% PIK 0.00% cash), 2/31/19 $ 9,894
1,231,844 Harvard Drug Group LLC, Term Loan, 5.0%, 8/16/20 1,233,383
1,464,298 Par Pharmaceutical, Inc., Term B-2 Loan, 4.0%, 9/30/19 1,443,860
1,072,313 Patheon, Inc., Term Loan, 4.25%, 3/11/21 1,050,598
997,429 Pharmedium Healthcare Corp., First Lien Initial Term Loan,
4.25%, 1/28/21 984,962
The accompanying notes are an integral part of these financial statements.
28 Pioneer Floating Rate Trust | Annual Report | 11/30/14
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Pharmaceuticals -- (continued)
962,500 Salix Pharmaceuticals, Ltd., Term Loan, 4.25%, 1/2/20 $ 952,407
852,793 Valeant Pharmaceuticals International, Inc., Series C-2
Tranche B Term Loan, 3.5%, 12/11/19 848,301
639,595 Valeant Pharmaceuticals International, Inc., Series D-2
Term Loan B, 3.5%, 2/13/19 636,397
--------------
$ 7,159,802
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 8,077,169
---------------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.6%
Diversified Real Estate Activities -- 0.1%
492,500 CBRE Services, Inc., Tranche B Term Loan,
2.907%, 3/28/21 $ 490,961
---------------------------------------------------------------------------------------------------------
Real Estate Services -- 1.0%
2,020,895 Altisource Solutions, S.a.r.l, Term Loan B, 4.5%, 12/9/20 $ 1,778,387
1,471,746 GCA Services Group, Inc., First Lien Term Loan,
4.25%, 11/1/19 1,464,388
--------------
$ 3,242,775
---------------------------------------------------------------------------------------------------------
Retail REITs -- 0.5%
486,394 DTZ U.S. Borrower LLC Delayed Draw Term Loan,
4.5%, 11/4/21 $ 489,434
1,000,000 DTZ U.S. Borrower LLC, Second Lien Initial Term Loan,
9.25%, 11/4/22 1,006,250
--------------
$ 1,495,684
--------------
Total Real Estate $ 5,229,420
---------------------------------------------------------------------------------------------------------
RETAILING -- 1.9%
Apparel Retail -- 0.4%
1,246,875 Men's Wearhouse, Inc., Term Loan B, 4.5%, 6/18/21 $ 1,249,603
---------------------------------------------------------------------------------------------------------
Automotive Retail -- 0.8%
1,581,250 Camping World Group LLC, Term Loan, 5.75%, 2/20/20 $ 1,582,239
982,500 Hertz Corp., Tranche B-1 Term Loan, 3.75%, 3/11/18 973,391
--------------
$ 2,555,630
---------------------------------------------------------------------------------------------------------
Computer & Electronics Retail -- 0.5%
199,000 Rent-A-Center, Inc., 2014 Term Loan, 3.75%, 3/19/21 $ 195,020
1,734,293 Targus Group International, Inc., Term Loan,
12.0%, 5/24/16 1,417,785
--------------
$ 1,612,805
---------------------------------------------------------------------------------------------------------
Home Improvement Retail -- 0.2%
738,750 Apex Tool Group LLC, Term Loan, 4.5%, 1/31/20 $ 724,590
--------------
$ 724,590
--------------
Total Retailing $ 6,142,628
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 29
Schedule of Investments | 11/30/14 (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 1.1%
Semiconductor Equipment -- 0.3%
839,405 Entegris, Inc., Tranche B Term Loan, 3.5%, 4/30/21 $ 833,110
---------------------------------------------------------------------------------------------------------
Semiconductors -- 0.8%
1,773,724 M/A-COM Technology Solutions Holdings, Inc., Initial Term
Loan, 4.5%, 5/7/21 $ 1,773,723
929,329 Microsemi Corp., Term Loan, 3.25%, 2/19/20 922,359
--------------
$ 2,696,082
--------------
Total Semiconductors & Semiconductor Equipment $ 3,529,192
---------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 9.1%
Application Software -- 3.3%
1,030,246 Applied Systems, Inc., First Lien Term Loan,
4.25%, 1/25/21 $ 1,026,254
990,000 Epiq Systems, Inc., Term Loan, 4.25%, 8/27/20 985,050
1,125,183 Expert Global Solutions, Inc., Advance First Lien Term
Loan B, 8.5%, 4/3/18 1,124,058
1,055,821 Infor (U.S.), Inc., Tranche B-5 Term Loan, 3.75%, 6/3/20 1,043,943
1,526,692 Nuance Communications, Inc., Term Loan C,
2.91%, 8/7/19 1,503,028
975,000 Serena Software, Inc., Term Loan, 7.5%, 4/14/20 978,656
1,036,935 Verint Systems, Inc., Tranche B Incremental Term Loan,
3.5%, 9/6/19 1,037,064
1,000,000 Vertafore, Inc., Second Lien Term Loan, 9.75%, 10/27/17 1,011,875
1,845,991 Vertafore, Inc., Term Loan, 4.25%, 10/3/19 1,844,068
--------------
$ 10,553,996
---------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.6%
1,000,000 First Data Corp., 2018 B Second New Term Loan,
3.655%, 9/24/18 $ 988,250
802,493 First Data Corp., 2018 Dollar Term Loan,
3.655%, 3/23/18 793,047
--------------
$ 1,781,297
---------------------------------------------------------------------------------------------------------
Home Entertainment Software -- 0.4%
1,435,000 MA Financeco LLC, Initial Tranche B Term Loan,
4.25%, 11/19/21 $ 1,405,852
---------------------------------------------------------------------------------------------------------
Internet Software & Services -- 0.6%
238,505 DealerTrack Technologies, Inc., Term Loan, 3.5%, 2/28/21 $ 236,369
1,248,221 Vocus Valor Companies, Inc., First Lien Initial Term Loan,
6.0%, 5/30/21 1,224,817
497,458 Zayo Group LLC (Zayo Capital, Inc.) Term Loan,
4.0%, 7/2/19 497,406
--------------
$ 1,958,592
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Floating Rate Trust | Annual Report | 11/30/14
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 3.0%
1,641,341 Booz Allen Hamilton, Inc., Initial Tranche B Term Loan,
3.75%, 7/31/19 $ 1,644,419
1,425,612 Deltek, Inc., First Lien Term Loan, 4.5%, 10/10/18 1,421,870
3,491,250 Evergreen Skills Lux S.a r.l., First Lien Initial Term Loan,
5.75%, 4/28/21 3,462,570
490,681 Kronos, Inc., First Lien Incremental Term Loan,
4.5%, 10/30/19 492,153
743,265 Safenet, Inc., First Lien Term Loan, 6.75%, 3/5/20 742,336
1,687,991 SunGuard Data Systems, Inc., Tranche C Term Loan,
3.906%, 2/28/17 1,685,163
--------------
$ 9,448,511
---------------------------------------------------------------------------------------------------------
Systems Software -- 1.2%
1,250,000 AVG Technologies N.V. (AVG Corporate Services B.V.),
Term Loan, 5.75%, 10/15/20 $ 1,246,875
1,271,813 MSC.Software Corp., Term Loan, 5.0%, 5/29/20 1,271,812
1,267,289 Rovi Solutions Corp., Term B Loan, 3.75%, 7/2/21 1,250,856
--------------
$ 3,769,543
--------------
Total Software & Services $ 28,917,791
---------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 2.0%
Communications Equipment -- 0.2%
691,525 Audio Visual Services Group, Inc., First Lien Term Loan,
4.5%, 1/25/21 $ 693,038
---------------------------------------------------------------------------------------------------------
Electronic Components -- 0.9%
1,232,492 Generac Power Systems, Inc., Term Loan,
3.25%, 5/31/20 $ 1,206,301
1,578,455 Scitor Corp., Term Loan, 5.0%, 2/15/17 1,563,618
--------------
$ 2,769,919
---------------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.3%
974,775 Sensus USA, Inc., Term Loan, 4.5%, 5/9/17 $ 957,716
---------------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.6%
1,940,000 4L Technologies, Inc. (fka Clover Holdings, Inc.), Term
Loan, 6.75%, 5/8/20 $ 1,935,150
--------------
Total Technology Hardware & Equipment $ 6,355,823
---------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.8%
Integrated Telecommunication Services -- 1.7%
1,000,000 Level 3 Financing, Inc., Tranche B 2022 Term Loan,
4.5%, 10/31/22 $ 1,005,357
1,857,492 Securus Technologies Holdings, Inc., Initial First Lien
Term Loan, 4.75%, 4/30/20 1,842,982
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 31
Schedule of Investments | 11/30/14 (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- (continued)
1,406,212 West Corp., Term B-10 Loan, 3.25%, 6/30/18 $ 1,393,469
1,228,125 Windstream Corp., Tranche B-4 Term Loan,
3.5%, 1/23/20 1,222,592
--------------
$ 5,464,400
---------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.1%
1,434,802 Crown Castle Operating Co., Extended Incremental
Tranche B-2 Term Loan, 3.0%, 1/31/21 $ 1,431,574
1,895,657 Syniverse Holdings, Inc., Initial Term Loan,
4.0%, 4/23/19 1,866,431
--------------
$ 3,298,005
--------------
Total Telecommunication Services $ 8,762,405
---------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 5.7%
Air Freight & Logistics -- 1.4%
1,485,886 Air Medical Group Holdings, Inc., Term Loan B-1,
5.0%, 6/30/18 $ 1,494,245
1,739,158 Dematic Corp., New Incremental Term Loan,
4.25%, 12/28/19 1,728,288
1,051,688 Ozburn-Hessey Holding Co., LLC, Term Loan,
6.75%, 5/23/19 1,049,058
--------------
$ 4,271,591
---------------------------------------------------------------------------------------------------------
Airlines -- 2.9%
2,962,500 American Airlines, Inc., Class B Term Loan,
3.75%, 6/27/19 $ 2,939,665
246,250 Continental Airlines, Inc., (United Air Lines, Inc.), Class B
Term Loan, 3.5%, 4/1/19 243,711
1,473,750 Delta Air Lines, Inc., 2014 Term B-1 Loan,
3.25%, 10/18/18 1,457,960
1,306,125 Delta Air Lines, Inc., Term Loan, 3.25%, 4/20/17 1,299,141
1,280,813 U.S. Airways, Inc., Tranche B-1 Term Loan, 3.5%, 5/23/19 1,262,241
2,134,688 U.S. Airways, Inc., Tranche B-2 Term Loan,
3.0%, 11/23/16 2,121,568
--------------
$ 9,324,286
---------------------------------------------------------------------------------------------------------
Leisure Products -- 0.1%
423,313 Marine Acquisition Corp., Term Loan, 5.25%, 1/30/21 $ 424,371
---------------------------------------------------------------------------------------------------------
Marine -- 0.3%
985,000 Commercial Barge Line Co., Initial First Lien Term Loan,
7.5%, 9/22/19 $ 989,925
---------------------------------------------------------------------------------------------------------
Trucking -- 1.0%
997,500 Aegis Toxicology Sciences Corp., Initial First Lien Term
Loan, 5.5%, 2/24/21 $ 1,001,241
805,391 Swift Transportation Co., LLC, Tranche B-2 Term Loan,
3.75%, 6/9/21 803,377
The accompanying notes are an integral part of these financial statements.
32 Pioneer Floating Rate Trust | Annual Report | 11/30/14
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Trucking -- (continued)
794,000 Syncreon Global Finance, Inc., Term Loan,
5.25%, 10/28/20 $ 784,075
645,125 YRC Worldwide, Inc., Initial Term Loan, 8.25%, 2/13/19 641,899
--------------
$ 3,230,592
--------------
Total Transportation $ 18,240,765
---------------------------------------------------------------------------------------------------------
UTILITIES -- 5.3%
Electric Utilities -- 2.6%
995,811 Atlantic Power Limited Partnership, Term Loan,
4.75%, 2/24/21 $ 1,004,524
687,640 Bayonne Energy Center LLC, (Bayonne Energy Center
Urban Renewal LLC) Term B Advance, 5.0%, 8/19/21 693,084
2,221,875 Calpine Construction Finance Co., LP, Term B-1
Loan, 3.0%, 5/3/20 2,179,288
1,000,000 Southeast PowerGen LLC, Term Loan B, 3.5%, 12/2/21 1,005,000
1,155,792 Star West Generation LLC, Term B Advance,
4.25%, 3/13/20 1,151,458
2,000,000 Terra-Gen Finance Co., LLC, Term Loan B,
4.25%, 11/26/21 2,010,000
--------------
$ 8,043,354
---------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy Traders -- 2.0%
1,664,625 Calpine Corp., Term Loan, 4.0%, 4/1/18 $ 1,665,978
490,000 Calpine Corp., Term Loan, 4.0%, 10/9/19 488,545
1,063,462 Dynegy, Inc., Tranche B-2 Term Loan, 4.0%, 4/23/20 1,062,465
1,226,276 NRG Energy, Inc., 2013 Term Loan, 2.75%, 7/1/18 1,214,609
1,995,000 TerraForm Power Operating LLC, Closing Date Term Loan,
4.75%, 7/23/19 1,999,988
--------------
$ 6,431,585
---------------------------------------------------------------------------------------------------------
Water Utilities -- 0.7%
1,485,000 Synagro Technologies, Term Loan, 6.25%, 8/22/20 $ 1,460,869
860,167 WTG Holdings III Corp., First Lien Term Loan,
4.75%, 1/15/21 856,941
--------------
$ 2,317,810
--------------
Total Utilities $ 16,792,749
---------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE
LOAN INTERESTS
(Cost $450,426,520) $ 438,315,880
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 33
Schedule of Investments | 11/30/14 (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
COLLATERALIZED LOAN OBLIGATIONS -- 2.7%
of Net Assets
BANKS -- 2.7%
Diversified Banks -- 0.9%
1,000,000(a)(c) Primus, Ltd., Series 2007-2A, Class D,
2.631%, 7/15/21 (144A) $ 939,617
1,000,000(a)(c) Rampart, Ltd., Series 2006-1A, Class D,
3.781%, 4/18/21 (144A) 980,424
951,289(a)(c) Stanfield McLaren, Ltd., Series 2007-1A, Class B2L,
4.736%, 2/27/21 (144A) 912,977
--------------
$ 2,833,018
---------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.8%
1,000,000(a)(c) ACA, Ltd., Series 2007-1A, Class D, 2.581%,
6/15/22 (144A) $ 936,014
1,000,000(a)(c) Goldman Sachs Asset Management Plc,
Series 2007-1A, Class D, 2.982%, 8/1/22 (144A) 979,724
1,000,000(a)(c) Gulf Stream -- Sextant, Ltd., Series 2007-1A, Class D,
2.635%, 6/17/21 (144A) 957,580
1,000,000(a)(c) Landmark CDO, Ltd., Series 2007-9A, Class E, 3.731%,
4/15/21 (144A) 939,630
2,000,000(a)(c) Stone Tower, Ltd., Series 2007-6A, Class C, 1.578%,
4/17/21 (144A) 1,871,206
--------------
$ 5,684,154
--------------
Total Banks $ 8,517,172
---------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED LOAN
OBLIGATIONS
(Cost $6,788,604) $ 8,517,172
---------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 2.3% of Net Assets
2,405,000(a) U.S. Treasury Notes, 0.09%, 7/31/16 $ 2,405,101
2,405,000(a) U.S. Treasury Notes, 0.07%, 1/31/16 2,404,678
2,405,000(a) U.S. Treasury Notes, 0.09%, 4/30/16 2,405,223
--------------
$ 7,215,002
---------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $7,217,323) $ 7,215,002
---------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES -- 1.1%
of Net Assets
DIVERSIFIED FINANCIALS -- 0.2%
Other Diversified Financial Services -- 0.2%
500,000(a) Vita Capital V, Ltd., 2.726% , 1/15/17 (144A) $ 507,000
--------------
Total Diversified Financials $ 507,000
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Floating Rate Trust | Annual Report | 11/30/14
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
ENERGY -- 0.0%+
Oil & Gas Drilling -- 0.0%+
250,000 Offshore Group Investment, Ltd., 7.5%, 11/1/19 $ 187,500
--------------
Total Energy $ 187,500
---------------------------------------------------------------------------------------------------------
INSURANCE -- 0.6%
Reinsurance -- 0.6%
250,000(a) Atlas Reinsurance VII, Ltd., 8.105%, 1/7/16 (144A)
(Cat Bond) $ 257,425
500,000(a) Combine Re, Ltd., 4.51%, 1/7/15 (144A) (Cat Bond) 500,850
250,000(a) East Lane Re V, Ltd., 9.01%, 3/16/16 (144A) (Cat Bond) 267,000
250,000(a) Mystic Re, Ltd., 9.01%, 3/12/15 (144A) (Cat Bond) 253,950
250,000(a) Mythen Re, Ltd., Series 2012-2 Class A, 8.526%, 1/5/17
(144A) (Cat Bond) 267,000
250,000(a) Queen Street VII Re, Ltd., 8.61%, 4/8/16 (144A)
(Cat Bond) 259,375
--------------
Total Insurance $ 1,805,600
---------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.3%
Health Care Equipment & Services -- 0.3%
903,000 Physio-Control International, Inc., 9.875%,
1/15/19 (144A) $ 968,468
--------------
Total Health Care Equipment & Services $ 968,468
---------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES
(Cost $3,403,000) $ 3,468,568
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Shares
---------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.4% of Net Assets
INDUSTRIALS -- 0.0%+
Diversified Support Services -- 0.0%+
31(f) IAP Worldwide Services, Inc. $ 26,768
--------------
Total Industrials $ 26,768
---------------------------------------------------------------------------------------------------------
MEDIA -- 0.2%
Publishing -- 0.2%
14,548(f) Cengage Learning Acquisitions, Inc $ 385,886
--------------
Total Media $ 385,886
---------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 0.0%+
Biotechnology -- 0.0%+
2,454(f) Progenics Pharmaceuticals, Inc. $ 17,080
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 17,080
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 35
Schedule of Investments | 11/30/14 (continued)
---------------------------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.2%
Air Freight & Logistics -- 0.2%
710(c)(f) CEVA Holdings LLC $ 638,811
--------------
Total Transportation $ 638,811
---------------------------------------------------------------------------------------------------------
UTILITIES -- 0.0%+
Independent Power Producers & Energy Traders -- 0.0%+
775 NRG Energy, Inc. $ 24,227
--------------
Total Utilities $ 24,227
---------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,298,131) $ 1,092,772
---------------------------------------------------------------------------------------------------------
EXCHANGE-TRADED FUND -- 0.3% of Net Assets
DIVERSIFIED FINANCIALS -- 0.3%
Other Diversified Financial Services -- 0.3%
42,000 PowerShares Senior Loan Portfolio $ 1,022,700
--------------
Total Diversified Financials $ 1,022,700
---------------------------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED FUND
(Cost $1,009,260) $ 1,022,700
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITY -- 0.0%+ of Net Assets
CONSUMER SERVICES -- 0.0%+
Hotels, Resorts & Cruise Lines -- 0.0%+
82,648 Westgate Resorts LLC, Series 2012-2A, Class C, 9.0%,
1/20/25 (144A) $ 84,643
--------------
Total Consumer Services $ 84,643
---------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITY
(Cost $917,309) $ 84,643
---------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 1.0% -- of
Net Assets
Certificate of Deposit -- 0.4%
1,190,000 Bank of Tokyo-Mitsubishi UFJ, Ltd., 0.1%, 12/1/14 $ 1,189,993
---------------------------------------------------------------------------------------------------------
Commercial Paper -- 0.4%
1,190,000 Prudential Funding LLC, 0.07%, 12/1/14 $ 1,189,994
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Floating Rate Trust | Annual Report | 11/30/14
---------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------
Repurchase Agreement -- 0.2%
760,000 Bank of Nova Scotia, 0.09%, repurchase price of
$760,000 plus accrued interest on 12/1/14
collateralized by $777,105 Freddie Mac Giant,
3.5% - 4.0%, 9/1/42 -- 11/1/44 $ 760,000
---------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $3,140,000) $ 3,139,987
---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 145.9%
(Cost $474,200,147) (g) $ 462,856,724
---------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (45.9)% $ (145,620,779)
---------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHAREOWNERS -- 100.0% $ 317,235,945
=========================================================================================================
+ Amount rounds to less than 0.1%.
(Cat Bond) Catastrophe bond is a high yield debt instrument that is usually
insurance linked and meant to raise money in case of catastrophe.
(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, 2014, the value of these securities
amounted to $11,882,883, or 3.7% of total net assets applicable to
common shareowners.
* 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 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, 2014.
(a) Floating rate note. The rate shown is the coupon rate at November
30, 2014.
(b) Security is in default and is non-income producing.
(c) Indicates a security that has been deemed illiquid. As of
November 30, 2014 the aggregate cost of illiquid securities in the
Trust's portfolio was $15,435,826. As of that date, the aggregate
value of illiquid securities in the Trust's portfolio of
$10,852,979 represented 3.4% of total net assets applicable to
common shareowners.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 37
Schedule of Investments | 11/30/14 (continued)
(d) The company and agent bank are in the process of negotiating
forbearance.
(e) Payment in Kind (PIK) security which may pay interest in the form
of additional principal amount.
(f) Non-income producing.
(g) At November 30, 2014, the net unrealized depreciation on
investments based on cost for federal tax purposes of $474,131,772
was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 3,848,387
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (15,123,435)
------------
Net unrealized depreciation $(11,275,048)
============
For financial reporting purposes net unrealized depreciation on investments was
$11,343,423 and cost of investments aggregated $474,200,147.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended November 30, 2014 aggregated $287,378,030 and $292,424,606,
respectively.
Principal amounts are denominated in U.S. dollars unless otherwise noted.
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.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans are categorized as Level 2, and securities valued using fair
value methods (other than prices supplied by independent pricing services or
broker-dealers) as Level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
38 Pioneer Floating Rate Trust | Annual Report | 11/30/14
The following is a summary of the inputs used as of November 30, 2014, in
valuing the Trust's investments.
---------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------
Senior Secured Floating Rate
Loan Interests $ -- $438,315,880 $ -- $438,315,880
Collateralized Loan Obligations -- 8,517,172 -- 8,517,172
U.S. Government and Agency
Obligations -- 7,215,002 -- 7,215,002
Corporate Bonds & Notes -- 3,468,568 -- 3,468,568
Common Stocks
Industrials
Diversified Support Services -- 26,768 -- 26,768
Media
Publishing -- 385,886 -- 385,886
Transportation
Air Freight & Logistics -- 638,811 -- 638,811
All Other Common Stocks 41,307 -- -- 41,307
Asset Backed Security -- 84,643 -- 84,643
Exchange-Traded Fund 1,022,700 -- -- 1,022,700
Certificate of Deposit -- 1,189,993 -- 1,189,993
Commercial Paper -- 1,189,994 -- 1,189,994
Repurchase Agreement -- 760,000 -- 760,000
---------------------------------------------------------------------------------------------
Total Investments in Securities $ 1,064,007 $461,792,717 $ -- $462,856,724
=============================================================================================
* Securities in this category are valued at $0.
The following is a summary of the fair valuation of certain of the Fund's assets
and liabilities as of November 30, 2014:
-----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------
Assets:
Foreign currencies, at value $ -- $ 75,842 $ -- $ 75,842
Liabilities:
Outstanding borrowings -- (155,450,000) -- (155,450,000)
------------------------------------------------------------------------------------------
Total $ -- $(155,374,158) $ -- $(155,374,158)
==========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 39
Schedule of Investments | 11/30/14 (continued)
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
------------------------------------------------------------------------------------------------------------------------------------
Change in
Balance Realized Unrealized Accrued Transfers Transfers Balance
as of gain appreciation discounts/ in to out of as of
11/30/13 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* Level 3* 11/30/14
------------------------------------------------------------------------------------------------------------------------------------
Collateralized Loan
Obligations
Banks
Diversified Banks $2,727,554 $ -- $ -- $ -- $ -- $ -- $ -- $(2,727,554) $ --
Thrifts &
Mortgage
Finance 5,625,880 -- -- -- -- -- -- (5,625,880) --
Corporate Bonds
& Notes
Health Care
Equipment &
Services
Health Care
Supplies 8,109 (5,520,701) 6,450,905 -- (942,902) 4,589 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total $8,361,543 $(5,520,701) $6,450,905 $ -- $(942,902) $ 4,589 $ -- $(8,353,434) $ --
====================================================================================================================================
* Transfers are calculated on the beginning of period values. For the year
ended 11/30/14, there were no transfers between levels 1 and Level 2. For
the year ended November 30, 2014, securities with an aggregate market value
of $8,353,434 transferred from Level 3 to Level 2 due to the availability of
observable inputs used to determine their value.
(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.
Net change in unrealized appreciation (depreciation) of Level 3 investments
at 11/30/14: $--.
The accompanying notes are an integral part of these financial statements.
40 Pioneer Floating Rate Trust | Annual Report | 11/30/14
Statement of Assets and Liabilities | 11/30/14
ASSETS:
Investments in securities, at value (cost $474,200,147) $ 462,856,724
Cash 21,164,712
Foreign currencies, at value (cost $82,689) 75,842
Receivables --
Investment securities sold 7,376,910
Interest receivable 2,497,049
Dividends receivable 33,525
Prepaid expenses 32
---------------------------------------------------------------------------------
Total assets $ 494,004,794
---------------------------------------------------------------------------------
LIABILITIES:
Payables --
Outstanding borrowings under revolving credit facility $ 155,450,000
Investment securities purchased 20,677,606
Trustees' fees 1,966
Due to affiliates 262,555
Administration fee payable 73,522
Interest expense payable 82,644
Accrued expenses 220,556
---------------------------------------------------------------------------------
Total liabilities $ 176,768,849
---------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $ 465,543,677
Undistributed net investment income 404,153
Accumulated net realized loss on investments and foreign
currency transactions (137,366,761)
Net unrealized depreciation on investments (11,343,423)
Net unrealized appreciation on unfunded loan commitments 6,153
Net unrealized depreciation on other assets and liabilities
denominated in foreign currencies (7,854)
---------------------------------------------------------------------------------
Net assets applicable to common shareowners $ 317,235,945
---------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $317,235,945 / 24,738,174 common shares $ 12.82
=================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 41
Statement of Operations
For the Year Ended 11/30/14
INVESTMENT INCOME:
Interest $ 23,687,156
Dividends 90,208
Loan facility and other income 476,784
------------------------------------------------------------------------------------------------
Total investment income $ 24,254,148
------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 3,355,876
Administrative reimbursements 250,718
Transfer agent fees and expenses 47,152
Shareholder communications expense 11,191
Auction agent fees 6,287
Custodian fees 77,735
Professional fees 183,987
Printing expenses 14,098
Trustees' fees 13,879
Pricing fees 31,951
Loan servicing expenses 145,875
Interest expense 1,589,732
Miscellaneous 74,878
------------------------------------------------------------------------------------------------
Net operating expenses $ 5,803,359
------------------------------------------------------------------------------------------------
Net investment income $ 18,450,789
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
UNFUNDED LOAN COMMITMENTS, AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 6,407,178
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (17,798) $ 6,389,380
------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $(10,842,956)
Unfunded loan commitments 6,153
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 204 $(10,836,599)
------------------------------------------------------------------------------------------------
Net loss on investments, unfunded loan commitments,
and foreign currency transactions $ (4,447,219)
------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM
NET INVESTMENT INCOME: $ (30,301)
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 13,973,269
================================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer Floating Rate Trust | Annual Report | 11/30/14
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------
Year Ended Year Ended
11/30/14 11/30/13
-------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 18,450,789 $ 25,084,923
Net realized gain (loss) on investments and foreign
currency transactions 6,389,380 (6,781,808)
Change in net unrealized appreciation (depreciation) on
investments, unfunded loan commitments, and foreign
currency transactions (10,836,599) 7,001,184
Distributions to preferred shareowners from net
investment income (30,301) (3,072,469)
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 13,973,269 $ 22,231,830
-------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income and previously undistributed net
investment income ($0.80 and $0.90 per share,
respectively) $(19,864,754) $(22,254,278)
-------------------------------------------------------------------------------------------
Total distributions to common shareowners $(19,864,754) $(22,254,278)
-------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ -- $ 435,737
-------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners from Trust share transactions $ -- $ 435,737
-------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners $ (5,891,485) $ 413,289
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of year 323,127,430 322,714,141
-------------------------------------------------------------------------------------------
End of year $317,235,945 $323,127,430
-------------------------------------------------------------------------------------------
Undistributed net investment income $ 404,153 $ 2,153,800
===========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 43
Statement of Cash Flows
For the Year Ended 11/30/14
Cash Flows Used in Operating Activities
Net increase in net assets resulting from operations (excluding
preferred distributions) $ 14,003,570
-------------------------------------------------------------------------------------------------
Adjustments to reconcile net Increase in net assets resulting from operations to
net cash and foreign currency used in operating activities
Purchases of investment securities $(270,866,179)
Proceeds from disposition and maturity of investment securities 289,097,155
Net purchases of temporary cash investments (3,140,000)
Net accretion and amortization of discount/premium on investment securities (1,132,976)
Decrease in interest receivable 118,605
Decrease in dividends receivable 33,526
Decrease in prepaid expenses 7,622
Decrease in affiliated expenses payable (18,765)
Increase in trustees' fees payable 1,966
Decrease in administration fees payable (5,833)
Increase in accrued expenses payable 876
Increase in interest expense payable 82,644
Decrease in other liabilities (2,616)
Change in unrealized depreciation on investments 10,842,956
Change in unrealized appreciation on forward foreign currency contracts
and foreign currency (4,715)
Change in unrealized appreciation on unfunded loan commitments (6,153)
Net realized gain on investments (6,407,178)
-------------------------------------------------------------------------------------------------
Net cash and foreign currencies used in operating activities $ 32,604,505
-------------------------------------------------------------------------------------------------
Cash Flows Used in Financing Activities:
Redemption of preferred shares, including unpaid dividends $(182,474,775)
Proceeds from borrowings 157,450,000
Payments on borrowings (2,000,000)
Distributions to common shareowners (19,864,754)
Distributions to preferred shareowners (30,301)
-------------------------------------------------------------------------------------------------
Net cash and foreign currencies used in financing activities $ (46,919,830)
-------------------------------------------------------------------------------------------------
Effect of Foreign Exchange Fluctuations on Cash:
Effect of foreign exchange fluctuations on cash $ (6,817)
-------------------------------------------------------------------------------------------------
Cash and Foreign Currency
Beginning of the year $ 35,562,696
-------------------------------------------------------------------------------------------------
End of the year $ 21,240,554
-------------------------------------------------------------------------------------------------
Cash Flow Information
Cash paid for interest $ 1,507,088
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
44 Pioneer Floating Rate Trust | Annual Report | 11/30/14
Financial Highlights
---------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/14 11/30/13 11/30/12 11/30/11 11/30/10
---------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of year $ 13.06 $ 13.06 $ 12.45 $ 12.52 $ 11.40
---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 0.75 $ 1.01 $ 1.19 $ 1.28 $ 1.17
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (0.19) 0.01 0.55 (0.30) 0.94
Distributions to preferred shareowners from:
Net investment income (0.00)(b) (0.12) (0.12) (0.11) (0.11)
---------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.56 $ 0.90 $ 1.62 $ 0.87 $ 2.00
---------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income and previously undistributed net
investment income $ (0.80)* $ (0.90) $ (1.01) $ (0.94) $ (0.88)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.24) $ -- $ 0.61 $ (0.07) $ 1.12
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year (c) $ 12.82 $ 13.06 $ 13.06 $ 12.45 $ 12.52
---------------------------------------------------------------------------------------------------------------------------------
Market value, end of year (c) $ 11.36 $ 12.41 $ 13.41 $ 12.55 $ 13.16
=================================================================================================================================
Total return at market value (d) (2.32)% (0.84)% 15.66% 2.60% 22.63%
Ratios to average net assets of common shareowners:
Total expenses plus interest expense (e)(f) 1.80% 1.47% 1.58% 1.67% 1.74%
Net investment income before preferred share distributions 5.73% 7.70% 9.24% 9.96% 9.66%
Preferred share distributions 0.01% 0.94% 0.90% 0.85% 0.94%
Net investment income available to common shareowners 5.72% 6.76% 8.34% 9.11% 8.72%
Portfolio turnover 61% 63% 63% 42% 40%
Net assets of common shareowners, end of year (in thousands) $ 317,236 $ 323,127 $ 322,714 $ 306,822 $ 307,137
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 45
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/14 11/30/13 11/30/12 11/30/11 11/30/10
---------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) $ --(h) $182,450 $182,450 $182,450 $182,450
Asset coverage per preferred share, end of year $ --(h) $ 69,280 $ 69,222 $ 67,047 $ 69,090
Average market value per preferred share (g) $ --(h) $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per
preferred share $ --(h) $ 25,003 $ 25,003 $ 25,005 $ 25,005
Total amount of debt outstanding (in thousands) $155,450 $ -- $ -- $ -- $ --
Asset coverage per indebtedness (in thousands) $ 3,041 $ -- $ -- $ -- $ --
=====================================================================================================================
* The amount of distributions made to shareowners during the period were in
excess of the net investment income earned by the Trust during the period.
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) 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.
(d) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
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.
(e) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(f) Includes interest expense of 0.49%, 0.0%, 0.0%, 0.0% and 0.0%, respectively.
(g) Market value is redemption value without an active market.
(h) Preferred shares were redeemed during the period (see Note 10).
The accompanying notes are an integral part of these financial statements.
46 Pioneer Floating Rate Trust | Annual Report | 11/30/14
Notes to Financial Statements | 11/30/14
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. The Trust
will, as a secondary objective, also seek preservation of capital to the extent
consistent with its primary objective of high current income.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Senior floating rate
loan interests (senior loans) are valued in accordance with guidelines
established by the Board of Trustees at the mean between the last available
bid and asked prices from one or more brokers or dealers as obtained from
Loan Pricing Corporation, an independent pricing service. If price
information is not available from Loan Pricing Corporation or if the price
information is deemed to be unreliable, price information will be obtained
from an alternative loan interest pricing service. If no reliable price
quotes are available from either the primary or alternative pricing service
broker quotes will be solicited. Fixed-income securities are valued at
prices supplied by independent pricing services, which consider such factors
as market prices, market events, quotations from one or more brokers,
Treasury spreads, yields, maturities and ratings. Valuations may be
supplemented by dealers and other sources, as required. Equity securities
that have traded on an exchange are valued at the last sale price on the
principal exchange where they are traded. Equity securities that have not
traded on the date of valuation or securities for
Pioneer Floating Rate Trust | Annual Report | 11/30/14 47
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices. Shares of money market mutual funds
are valued at such funds' net asset value.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the New York Stock Exchange (NYSE). The values
of such securities used in computing the net asset value of the Trust's
shares are determined as of such times.
Securities and loans interests for which independent pricing services are
unable to supply prices or for which market prices and/or quotations are not
readily available or are considered to be unreliable are valued by a fair
valuation team comprised of certain personnel of Pioneer Investment
Management, Inc. (PIM), the Trust's investment adviser, 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 valuation team is responsible for monitoring
developments that may impact fair valued securities and for discussing and
assessing fair value 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, 2014, there were no securities valued using fair value
methods (other than securities valued using prices supplied by independent
pricing services or broker-dealers).
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, net of unrecoverable foreign taxes withheld at
the applicable country rates.
48 Pioneer Floating Rate Trust | Annual Report | 11/30/14
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.
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
(see Note 5).
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 taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
November 30, 2014, the Trust did not accrue any interest or penalties with
respect to uncertain tax positions, which if applicable, would be recorded
as
Pioneer Floating Rate Trust | Annual Report | 11/30/14 49
an income tax expense in the Statement of Operations. Tax returns filed
within the prior three years remain subject to examination by federal and
state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement 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, 2014, the Fund reclassified $305,381
to decrease undistributed net investment income and $305,381 to decrease
accumulated net realized loss on investments and foreign currency
transactions to reflect permanent book/tax differences. These adjustments
have no impact on the net assets or results of operations.
At November 30, 2014, the Trust was permitted to carry forward $435,908 of
short term and $16,327,086 of long term capital losses without limitation.
Additionally, at November 30, 2014, the Trust had a net capital gain/(loss)
carryforward of $120,602,379 of which the following amounts will expire
between 2016 and 2019 if not utilized: $27,976,876 in 2016, $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 carryforwards that are subject to
expiration may be more likely to expire unused.
The tax character of distributions paid to shareowners during the years
ended November 30, 2014 and November 30, 2014 were as follows:
----------------------------------------------------------------------------
2014 2013
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $19,895,055 $25,326,747
----------------------------------------------------------------------------
Total $19,895,055 $25,326,747
============================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at November 30, 2014:
----------------------------------------------------------------------------
2014
----------------------------------------------------------------------------
Distributable Earnings:
Undistributed ordinary income $ 334,390
Capital loss carryforward (137,365,373)
Other book/tax temporary differences 68,375
Unrealized depreciation (11,345,124)
----------------------------------------------------------------------------
Total $(148,307,732)
============================================================================
50 Pioneer Floating Rate Trust | Annual Report | 11/30/14
The difference between book-basis and tax-basis unrealized depreciation is
primarily attributable to the tax deferral of losses on wash sales, 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 for premiums and discounts on fixed income securities
and other book/tax temporary differences.
F. 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 Trust invests primarily in senior loans. The Trust may also invest in
other floating and variable rate instruments, including second lien loans,
investment grade fixed-income debt securities and high yield, high risk
corporate bonds. The Trust may also invest in below investment grade
securities. 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. 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 decline or may be
insufficient to meet the issuer's obligations or may be difficult to
liquidate. No active trading market may exist for 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.
Additionally, the Trust may invest in "event-linked" bonds, which sometimes
are referred to as "insurance-linked" or "catastrophe" bonds. The return of
principal and the payment of interest on event-linked bonds are contingent
on the nonoccurrence of a pre-defined "trigger" event, such as a hurricane
or an earthquake of a specific magnitude. 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.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 51
The Trust's investments in 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.
The Trust is not limited in the percentage of its assets that may be
invested in senior loans and other securities deemed to be illiquid.
Illiquid securities may be difficult to sell at a fair price at times when
the Trust believes it is desirable to do so and their market price is
generally more volatile than that of more liquid securities. Illiquid
securities are also more 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.
G. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value
of the underlying securities (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 sub-custodian of the Trust. PIM is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
H. Automatic Dividend Reinvestment Plan
All common 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 common 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.
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 common shares of
the Trust on terms that differ from the terms of the Plan.
52 Pioneer Floating Rate Trust | Annual Report | 11/30/14
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional unissued
but authorized common shares from the Trust or (ii) by purchase of
outstanding common shares on the New York Stock Exchange or elsewhere. If,
on the payment date for any dividend, the net asset value per common 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 common shares. The number of newly issued common
shares to be credited to each account will be determined by dividing the
dollar amount of the dividend by the net asset value per common 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 common
share is greater than the market value (market discount), the Plan Agent
will invest the dividend amount in common shares acquired in open-market
purchases. There are no brokerage charges with respect to newly issued
common 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 not
be able to transfer the shares to another broker and continue to participate
in the Plan.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit), 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, 2014, the net management
fee was 0.70% of the Trust's average daily managed assets, which was equivalent
to 1.04% of the Trust's average daily net assets.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 53
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,
2014, $336,077 was payable to PIM related to management costs, administrative
costs and certain other services is included in "Due to affiliates" and
"Administration fee payable" on the Statement of Assets and Liabilities.
3. Transfer Agents
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly owned
indirect subsidiary of UniCredit, through a sub-transfer agency agreement with
American Stock Transfer & Trust Company, provides substantially all transfer
agent and shareowner services related to the Trust's common shares at negotiated
rates.
In addition, the Trust reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareowner communications activities such as proxy and
statement mailings and outgoing calls.
4. Expense Offset Arrangement
The Trust has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Trust's custodian expenses. For the year ended November 30, 2014, the Trust
expenses were not reduced under such arrangement.
5. Forward Foreign Currency Contracts
At November 30, 2014, the Trust had entered into various forward foreign
currency contracts that obligate the Trust to deliver or take delivery of
currencies at specified future maturity dates. Alternatively, prior to the
settlement date of a forward foreign currency contract, the Trust may close out
such contract by entering into an offsetting contract. The average value of
contracts open during the year ended November 30, 2014 was $497,211. There were
no outstanding forward foreign currency contracts at November 30, 2014.
6. Unfunded and Bridge Loan Commitments
As of November 30, 2014, the Trust had no bridge loan commitments.
As of November 30, 2014, the Trust had unfunded loan commitments amounting to
$664,767 (excluding unrealized appreciation on the commitments of $6,153 as of
November 30, 2014) which could be extended at the option of the borrower,
pursuant to the following loan agreements:
54 Pioneer Floating Rate Trust | Annual Report | 11/30/14
--------------------------------------------------------------------------------
Unrealized
Borrower Par Cost Value Appreciation
--------------------------------------------------------------------------------
Bioscrip, Inc.,
Delayed Term Loan $375,000 $376,875 $376,875 $ --
DTZ U.S. Borrower LLC,
Delayed Draw Term Loan $289,767 $285,425 $291,578 $6,153
--------------------------------------------------------------------------------
Total $6,153
================================================================================
7. Loan Agreement
Effective November 26, 2014, 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 of the Trust's auction market preferred shares (see Note 10).
Effective November 29, 2014, the Trust extended the maturity of the credit
Agreement for a 12 month period.
At November 30, 2014, the Trust had a borrowing outstanding under the Credit
Agreement totaling $155,450,000. The interest rate charged at November 30, 2014
was 1.01%. During the year ended November 30, 2014, the average daily balance
was $156,392,149 at a weighted average interest rate of 1.02%. During the year
ended November 30, 2014, the maximum borrowing amount was $157,400,000. With
respect to the loan, interest expense of $1,589,732 is included in the Statement
of Operations.
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 borrowings outstanding.
8. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the year ended November
30, 2014 and the year ended November 30, 2013 were as follows:
--------------------------------------------------------------------------------
11/30/14 11/30/13
--------------------------------------------------------------------------------
Shares outstanding at beginning of year 24,738,174 24,705,145
Reinvestment of distributions -- 33,029
--------------------------------------------------------------------------------
Shares outstanding at end of year 24,738,174 24,738,174
================================================================================
Pioneer Floating Rate Trust | Annual Report | 11/30/14 55
9. Additional Disclosures about Derivative Instruments and Hedging Activities:
The effect of derivative instruments on the Statement of Operations for the
year ended November 30, 2014 was as follows:
----------------------------------------------------------------------------------------
Change in
Derivatives Not Realized Unrealized
Accounted for as Gain or Appreciation or
Hedging Instruments (Loss) on (Depreciation)
Under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
----------------------------------------------------------------------------------------
Forward foreign Net realized gain (loss) on
currency contracts forward foreign currency
contracts $(11,200)
Forward foreign Change in net unrealized
currency contracts appreciation (depreciation)
on forward foreign currency
contracts $11,532
10. Redemption of AMPS
The Trust redeemed all outstanding Series M7 Auction Market Preferred Shares
("AMPS") on December 3, 2013, all Series W7 AMPS on December 5, 2013 and all TH7
AMPS on December 6, 2013.
The Trust redeemed all of its outstanding AMPS at the liquidation preference per
share (sometimes referred to as "at part"), together with accrued and unpaid
dividends, in any, as of the redemption date, as follows:
--------------------------------------------------------------------------------
Accrued and
Liquidation Unpaid
Shares Redemption Preference Dividends
Series Outstanding Date Per Share Paid Per Share
--------------------------------------------------------------------------------
M7 2,434 December 3, 2013 $25,000 $--
W7 2,432 December 5, 2013 $25,000 $--
TH7 2,432 December 6, 2013 $25,000 $--
--------------------------------------------------------------------------------
11. Dividends to Preferred Shareholders
Prior to the redemption of the Trust's AMPS (See Note 10), dividends on Series
M7, Series W7 and Series TH7 were cumulative at a rate which was to be reset
every seven days based on the results of an auction. Since February 2008, the
Trust's auctions related to the AMPS failed. Accordingly, the Trust paid the
maximum dividend rate for each series, which was the greater of
56 Pioneer Floating Rate Trust | Annual Report | 11/30/14
125% of the one week LIBOR rate or the LIBOR rate plus a spread of 1.25%. There
were no dividends payable on AMPS during the period from December 1, 2013 to the
redemption of Series M7 AMPS on December 3, 2013, Series W7 AMPS on December 5,
2013 and Series TH7 AMPS on December 6, 2013.
12. Subsequent Event
A monthly dividend was declared on December 2, 2014 from undistributed and
accumulated net investment income of $0.0550 per common share payable
December 18, 2014, to common shareowners of record on December 12, 2014.
13. Change in Independent Registered Public Accounting Firm
The Board of Trustees of the Trust, with the approval and recommendation of the
Audit Committee, appointed Deloitte & Touche LLP to serve as the Trust's
independent registered public accounting firm for the fiscal year ending
November 30, 2014. Deloitte & Touche LLP replaces Ernst & Young LLP, which
resigned as the Trust's independent registered public accounting firm effective
upon completion of the audit of the Trust's financial statements for the fiscal
year ended November 30, 2013.
During the periods that Ernst & Young LLP served as the Trust's independent
registered public accounting firm, including the Trust's fiscal years ending
November 30, 2013 and November 30, 2012, Ernst & Young LLP's reports on the
financial statements of the Trust have not contained an adverse opinion or
disclaimer of opinion and have not been qualified or modified as to uncertainty,
audit scope or accounting principles. Further, there have been no disagreements
with Ernst & Young LLP on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure, which, if not
resolved to the satisfaction of Ernst & Young LLP would have caused Ernst &
Young LLP to make reference to the subject matter of the disagreement in
connection with its report on the financial statements. In addition, there have
been no reportable events of the kind described in Item 304(a)(1)(v) of
Regulation S-K under the Securities Exchange Act of 1934.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 57
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, 2014, and the related statements of operations, changes in net
assets and cash flows and the financial highlights for year 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 audit. The statement
of changes in net assets of the Trust for the year ended November 30, 2013, and
the financial highlights for the years ended November 30, 2013, 2012, 2011, and
2010 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 audit 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 audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of November 30, 2014, 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
audit provides 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, 2014, and the results of its
operations, the changes in its net assets, its cash flows and the financial
highlights for the year then ended, in conformity with accounting principles
generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 26, 2015
58 Pioneer Floating Rate Trust | Annual Report | 11/30/14
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 common
shares in the open market.
Changes to non-fundamental investment policies
Investments in floating rate loans. Effective August 1, 2014, the following
non-fundamental investment policy has been modified by removing references to
"senior" loans from the policy. The revised policy is as follows:
Under normal market conditions, the Trust seeks to achieve its investment
objectives by investing at least 80% of its assets (net assets plus
borrowings for investment purposes) in floating rate loans.
Investments in non-U.S. securities. Effective August 1, 2014, the following
non-fundamental investment policy has been modified to increase the limit on
investments in non-U.S. securities from 10% to 35% of the Trust's assets. The
revised policy is as follows:
The Fund may invest up to 35% of its assets (net assets plus borrowings
for investment purposes) in floating rate loans and other securities of
non-U.S. issuers, including emerging markets securities.
Risks of investing in floating rate loans. Floating rate loans typically are
rated below investment grade (debt securities rated below investment grade are
commonly referred to as "junk bonds"). The fund's investments in floating rate
loans may include unsecured or subordinated loans. Floating rate loans and
similar investments may be illiquid or less liquid than other investments. No
active trading market may exist for many floating rate loans, and many loans are
subject to restrictions on resale. Market quotations for these securities may be
volatile and/or subject to large spreads between bid and ask prices. Any
secondary market may be subject to irregular trading activity and extended trade
settlement periods. An economic downturn generally leads to a higher non-payment
rate, and a loan may lose significant value before a default occurs. There is
less readily available, reliable information about loans than is the case for
other types of securities. Although the features of loans, including
Pioneer Floating Rate Trust | Annual Report | 11/30/14 59
typically being secured by collateral and having priority over other obligations
of the issuer, reduce some of the risks of investment in below investment grade
securities, the loans are subject to significant risks. Certain floating rate
loans and other corporate debt securities involve refinancings,
recapitalizations, mergers and acquisitions, and other financings for general
corporate purposes. Other loans are incurred in restructuring or "work-out"
scenarios, including debtor-in-possession facilities in bankruptcy. Loans to
highly leveraged companies are especially vulnerable to adverse economic or
market conditions and the risk of default.
Risks of second lien and other subordinated securities. Second lien loans
generally are subject to similar risks as those associated with senior (first
lien) loans. Because second lien loans are subordinated and thus lower in
priority on payment to senior loans, they are subject to the additional risk
that the cash flow of the borrower and property securing the loan or debt, if
any, may be insufficient to meet scheduled payments after giving effect to the
senior secured obligations of the borrower. This risk is generally higher for
subordinated unsecured loans or debt, which are not backed by a security
interest in any specific collateral. Second lien loans generally have greater
price volatility than senior loans and may be less liquid. Second lien loans and
other subordinated securities are more likely to suffer a credit loss than
non-subordinated securities of the same issuer, any loss incurred by the
subordinated securities is likely to be proportionately greater, and any
recovery of interest or principal may take more time. As a result, even a
perceived decline in creditworthiness of the issuer is likely to have a greater
impact on them.
Risks of non-U.S. investments. Investing in non-U.S. issuers, or in U.S. issuers
that have significant exposure to foreign markets, may involve unique risks
compared to investing in securities of U.S. issuers. These risks are more
pronounced for issuers in emerging markets or to the extent that the fund
invests significantly in one region or country. These risks may include
different financial reporting practices and regulatory standards, less liquid
trading markets, extreme price volatility, currency risks, changes in economic,
political, regulatory and social conditions, sustained economic downturns,
financial instability, tax burdens, and investment and repatriation
restrictions. Lack of information and less market regulation also may affect the
value of these securities. Withholding and other non-U.S. taxes may decrease the
fund's return. Non-U.S. issuers may be located in parts of the world that have
historically been prone to natural disasters. Investing in depositary receipts
is subject to many of the same risks as investing directly in non-U.S. issuers.
Depository receipts may involve higher expenses and may trade at a discount (or
premium) to the underlying security.
60 Pioneer Floating Rate Trust | Annual Report | 11/30/14
Results of Shareholder Meeting
At the annual meeting of shareowners held on September 23, 2014, 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 Class II Trustees.
--------------------------------------------------------------------------------
Nominee For Withheld
--------------------------------------------------------------------------------
Benjamin M. Friedman 21,314,216 669,558
Margaret B.W. Graham 21,327,326 656,448
Kenneth J. Taubes 21,456,132 527,642
Pioneer Floating Rate Trust | Annual Report | 11/30/14 61
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 2014 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 2014 and July
2014. Supplemental contract review materials were provided to the Trustees in
September 2014. 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 2014, 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 July 2014,
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 September
2014.
At a meeting held on September 16, 2014, 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 considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. In all quintile rankings referred to throughout this
62 Pioneer Floating Rate Trust | Annual Report | 11/30/14
disclosure, first quintile is most favorable to the Trust's shareowners. The
Trustees did not identify any single factor as the controlling factor in
determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Trust, taking into account the investment objective
and strategy of the Trust. The Trustees reviewed the terms of the investment
advisory agreement. 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 analysis and 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 discussed the Trust's performance with
PIM on a regular basis. The Trustees confirmed that these regular reviews and
discussions were factored into the Trustees' deliberations concerning the
renewal of the advisory agreement. For purposes of their contract renewal
deliberations, the Trustees considered the discussions held throughout the year
regarding the Trust's performance and the performance results of the Trust over
various time periods, including the Trust's
Pioneer Floating Rate Trust | Annual Report | 11/30/14 63
performance results for periods ended June 30, 2014. The Trustee's noted during
the course of their review that the Trust had underperformed its benchmark index
for certain periods. The Trustees indicated that they were satisfied with PIM's
investment discipline and approach in the prevailing market conditions, together
with changes made during the period in certain non-fundamental policies,
notwithstanding relatively poor peer comparisons of total return at market value
over the 1- and 3-year periods.
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.
The Trustees considered that the Trust's management fee (based on managed
assets) for the twelve months ended June 30, 2014 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 twelve
months ended June 30, 2014 was in the first quintile relative its Strategic
Insight peer group, in each case 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.
64 Pioneer Floating Rate Trust | Annual Report | 11/30/14
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 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 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.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 65
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.
66 Pioneer Floating Rate Trust | Annual Report | 11/30/14
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
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The 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 53 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 | 11/30/14 67
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (64) Class III Trustee since Private investor (2004-2008 and Director, Broadridge
Chairman of the Board 2006. Term expires in 2015. 2013-present); Chairman (2008 - 2013) and Financial Solutions, Inc.
and Trustee Chief Executive Officer (2008 - 2012), (investor communications and
Quadriserv, Inc. (technology products for securities processing
securities lending industry); and Senior provider for financial
Executive Vice President, The Bank of New services industry) (2009 -
(financial and securities services) (1986 present); Director,
- 2004) Quadriserv, Inc. (2005 -
2013); and Commissioner, New
Jersey State Civil Service
Commission (2011 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (70) Class I Trustee since 2005. Managing Partner, Federal City Capital Director of Enterprise
Trustee Term expires in 2016. Advisors (corporate advisory services Community Investment, Inc.
company) (1997 - 2004 and 2008 - present); (privately-held affordable
Interim Chief Executive Officer, Oxford housing finance company)
Analytica, Inc. (privately-held research (1985 - 2010); Director of
and consulting company) (2010); Executive Oxford Analytica, Inc. (2008
Vice President and Chief Financial - present); Director of The
Officer, I-trax, Inc. (publicly traded Swiss Helvetia Fund, Inc.
health care services company) (2004 - (closed-end fund) (2010 -
2007); and Executive Vice President and present); and Director of
Chief Financial Officer, Pedestal Inc. New York Mortgage Trust
(internet-based mortgage trading company) (publicly traded mortgage
(2000 - 2002) REIT) (2004 - 2009, 2012 -
present)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (70) Class II Trustee since 2008. William Joseph Maier Professor of Trustee, Mellon
Trustee Term expires in 2017. Political Economy, Harvard University Institutional Funds
(1972 - present) Investment Trust and Mellon
Institutional Funds Master
Portfolio (oversaw 17
portfolios in fund complex)
(1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
68 Pioneer Floating Rate Trust | Annual Report | 11/30/14
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (67) Class II Trustee since 2003. Founding Director, Vice President and None
Trustee 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)
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (52)* Class I Trustee since 2014. Chair, Director, CEO and President of None
Trustee, President and Term expires in 2016. 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)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (66) Class III Trustee since 2003. President and Chief Executive Officer, Director of New America High
Trustee Term expires in 2015. Newbury, Piret & Company, Inc. (investment Income Fund, Inc.
banking firm) (1981 - present) (closed-end investment
company) (2004 - present);
and member, Board of
Governors, Investment
Company Institute (2000 -
2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (67)** Class III Trustee since 2014. Consultant (investment company services) None
Trustee Term expires in 2015. (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 | 11/30/14 69
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (56)* Class II Trustee since 2014. Director and Executive Vice President None
Trustee Term expires in 2017. (since 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); Portfolio Manager of
Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers
or directors of the Trust's investment adviser and certain of its
affiliates.
70 Pioneer Floating Rate Trust | Annual Report | 11/30/14
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (58)** Advisory Trustee since 2014. Chief Investment Officer, 1199 SEIU None
Funds (health care 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
Corp. (government-sponsored Issuer of
debt securities) (1988 - 1990); Mortgage
Strategies Group, Shearson Lehman Hutton,
Inc. (investment bank) (1987 - 1988); and
Mortgage Securities Group, Drexel Burnham
Lambert, Ltd. (investment bank) (1986 -
1987)
------------------------------------------------------------------------------------------------------------------------------------
** Mr. Ricciardi became a Trustee and Ms. Monchak became a non-voting Advisory
Trustee on November 11, 2014.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 71
Trust Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (49) Since 2003. Serves at the Vice President and Associate General None
Secretary and Chief discretion of the Board. Counsel of Pioneer since January 2008;
Legal Officer Secretary and 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 (53) Since 2010. Serves at the Fund Governance Director of Pioneer since None
Assistant Secretary discretion of the Board. December 2006 and Assistant Secretary of
all the Pioneer Funds since June 2010;
Manager - Fund Governance of Pioneer from
December 2003 to November 2006; and
Senior Paralegal of Pioneer from January
2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (52) Since 2010. Serves at the Senior Counsel of Pioneer since May 2013 None
Assistant Secretary discretion of the Board. and Assistant Secretary of all the
Pioneer Funds since June 2010; Counsel of
Pioneer from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2008. Serves at the Vice President - Fund Treasury of None
Treasurer and Chief discretion of the Board. Pioneer; Treasurer of all of the Pioneer
Financial Funds since March 2008; Deputy Treasurer
and Accounting Officer of Pioneer from March 2004 to February
of the Trust 2008; and Assistant Treasurer of all of
the Pioneer Funds from March 2004 to
February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (49) Since 2003. Serves at the Director - Fund Treasury of Pioneer; and None
Assistant Treasurer discretion of the Board. Assistant Treasurer of all of the Pioneer
Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (56) Since 2003. Serves at the Fund Accounting Manager - Fund Treasury None
Assistant Treasurer discretion of the Board. of Pioneer; and Assistant Treasurer of
all of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (35) Since 2009. Serves at the Fund Administration Manager - Fund None
Assistant Treasurer discretion of the Board. Treasury 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 (62) Since 2010. Serves at the Chief Compliance Officer of Pioneer and None
Chief Compliance Officer discretion of the Board. of all the Pioneer Funds since March
2010; 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 (43) Since 2006. Serves at the Director - Transfer Agency Compliance of None
Anti-Money Laundering discretion of the Board. Pioneer and Anti-Money Laundering Officer
Officer of all the Pioneer funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
72 Pioneer Floating Rate Trust | Annual Report | 11/30/14
This page for your notes.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 73
This page for your notes.
74 Pioneer Floating Rate Trust | Annual Report | 11/30/14
This page for your notes.
Pioneer Floating Rate Trust | Annual Report | 11/30/14 75
This page for your notes.
76 Pioneer Floating Rate Trust | Annual Report | 11/30/14
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) 2015 Pioneer Investments 19447-08-0115
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.
Audit Fees
The audit services provided to the Trust were totaled
approximately $72,213 payable to Deloitte & Touche
LLP for the year ended November 30, 2014 and $59,120
were paid to the former auditor, Ernst & Young LLP
for the year ended November 30, 2013.
(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.
Audit-Related Fees and Other Fees
There were no audit related fees and other fees for
the Trust payable to Deloitte & Touche LLP for
the year ended November 30, 2014 and $9,650 were paid to the former auditor,
Ernst & Young LLP for the year ended November 30, 2013.
(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.
Tax Fees
Fees for tax compliance services, primarily for tax
returns, totaled approximately $9,876 payable to
Deloitte & Touche LLP for the year ended November 30,
2014 and $8,131 were paid to the former auditor,
Ernst & Young LLP for the year ended November 30, 2013.
(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.
Audit-Related Fees and Other Fees
There were no audit related fees and other fees for
the Trust payable to Deloitte & Touche LLP for
the year ended November 30, 2014 and $9,650 were paid to the former auditor,
Ernst & Young LLP for the year ended November 30, 2013.
(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 November 30, 2014
and 2013, 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 $9,876
payable to Deloitte & Touche LLP for the year ended
November 30, 2014 and $17,781 were paid to the former
auditor, Ernst & Young LLP for the year ended November 30,
2013.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Trust's audit committee of the Board of Fundees has
considered whether the provision of non-audit services
that were rendered to the Affiliates (as defined) that were
not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining
the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
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, 2014. 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 $3,356,667,635
Companies 4 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 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 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, 2014 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
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 29, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date January 29, 2015
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date January 29, 2015
* Print the name and title of each signing officer under his or her signature.