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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, 2012 through November 30, 2013
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, 2013
--------------------------------------------------------------------------------
Ticker Symbol: PHD
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 11
Performance Update 12
Schedule of Investments 13
Financial Statements 41
Financial Highlights 44
Notes to Financial Statements 46
Report of Independent Registered Public Accounting Firm 57
Approval of Investment Advisory Agreement 59
Trustees, Officers and Service Providers 63
Pioneer Floating Rate Trust | Annual Report | 11/30/13 1
President's Letter
Dear Shareowner,
When we look at the U.S. economy heading into 2014, we continue to see slow, but
steady, growth. Employment has also been rising steadily, but only modestly.
Consumer incomes, savings, wealth, and debt-servicing capacity have been solid
buttresses for the recovering housing and auto industries. Industrial activity
is growing only modestly, but current corporate profits are generally solid and
balance sheets appear able to support needed capital spending and dividend*
payouts. The scaled-back "fiscal cliff" tax increases and spending cuts have
meaningfully cut the budget deficit without driving the economy into recession.
In addition, we feel that continuing slack in labor markets and capacity
utilization offers the potential for continuing growth without bottlenecks and
rising inflation.
After observing the strengthening economic trends, the Federal Reserve (the Fed)
hinted that it might begin scaling back its "QE" quantitative easing program
later in 2013 and could terminate its bond purchases altogether sometime in
2014. In September, however, the Fed surprised many market participants by
deciding not to start scaling back QE yet, but announced later in the year that
it would, in fact, begin tapering QE. The Fed has also said that short-term
interest rates are likely to remain near zero for some time to come, given that
inflation remains subdued and unemployment remains too high.
The U.S. government's partial shutdown in October rattled the markets to a
degree, but did not immediately have a significant negative impact on the
economy or capital markets. As the year drew to a close, leaders in Washington
reached a bipartisan budget agreement that establishes top-line government
spending levels for the next two fiscal years, a move which should help to
diffuse the threat of another shutdown. That certainly was welcome news for
investors who had grown weary of the uncertainty caused by the constant,
politically motived bickering over the nation's fiscal policies.
There are certainly risks and uncertainties that continue to plague the global
economy as we head into the new year. The European economy remains weak, though
it is beginning to show signs of stabilization, and a number of countries in the
emerging markets have experienced difficulties. Still, a potential ending of the
European recession, continuing economic improvement in Japan in response to the
new government's easing policies, and a "soft landing" of 7% growth in China
could very well result in an improving global outlook in 2014.
* Dividends are not guaranteed.
2 Pioneer Floating Rate Trust | Annual Report | 11/30/13
There are also geopolitical worries abroad and the aforementioned political
fights at home, and while most of the widely recognized risks we've outlined may
already be "priced into" the market, we believe investors should continue to
expect market volatility.
The Fed's aggressive monetary policies and fears about economic growth had
helped drive long-term Treasury yields to unsustainably low levels; the return
to more normal levels has resulted in disappointing returns for bond investors
during much of 2013, but the stock market has delivered double-digit returns to
equity investors who were willing to brave the "wall of worry".
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. Our advice, as
always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs, keeping in mind that there is no single best strategy that
works for every investor.
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in global equity and bond markets, using in-depth research in an effort to
identify undervalued individual securities, and using thoughtful risk management
to construct portfolios which seek to balance potential risks and reward in an
ever-changing world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
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 | 11/30/13 3
Portfolio Management Discussion | 11/30/13
Investments in bank loans generated healthy returns during the 12-month period
ended November 30, 2013. The floating-interest-rate feature of bank loans
enabled the asset class to hold up relatively well as market interest rates rose
and bond prices tended to decline during the second half of the period,
undermining the performance of higher-rated, fixed-rate bond investments. In the
following interview, Jonathan Sharkey discusses the factors that affected the
performance of Pioneer Floating Rate Trust during the 12 months. Mr. Sharkey, a
senior vice president and 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,
2013?
A Pioneer Floating Rate Trust returned 7.15% at net asset value and -0.84%
at market price during the 12-month period ended November 30, 2013.
During the same 12-month period, the Trust's benchmark, the Barclays U.S.
High Yield Loans Index (the Barclays Index), returned 5.66%. 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 20
closed-end funds in Lipper's Loan Participation Funds category (which may
or may not be leveraged) was 1.87%.
The shares of the Trust were selling at a 5.2% discount to net asset value
on November 30, 2013.
On November 30, 2013, the Trust's standard 30-day SEC yield was 6.69%*.
Q How would you describe the investment environment for floating-rate
loans during the 12-month period ended November 30, 2013?
A The environment for investing in floating-rate bank loans remained generally
healthy throughout the Trust's fiscal year, as new money flowed into the
market and new loan deals became available for investment. In fact, at the
end of the fiscal year on November 30, 2013, the market for bank loans had
enjoyed 72 consecutive weeks of net investment inflows, demonstrating the
ongoing demand for these types of investments. The demand for loans was
supported by the recognition that the floating-rate feature of loans tends
to make them less vulnerable than bonds to price losses whenever interest
rates begin to rise.
* 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 | 11/30/13
Among the significant investors in loans during the period were pooled
investment vehicles known as collateralized loan obligations (CLOs)
structured and created by financial institutions. These CLOs invested in
bank loans and once again became an important part of the market, with new
CLO issuance almost equaling pre-financial crisis levels. Many high-yield
portfolio managers also saw opportunity in bank loans. The appeal of
floating-rate bank loans became even stronger when the backdrop for all
fixed-income-related investments changed in May 2013, when Federal Reserve
System (Fed) Chairman Ben Bernanke hinted that, given signs of moderate, but
steady improvement in the U.S. economy, the Fed might soon consider
"tapering" the pace of its quantitative easing (QE) bond-purchasing program.
Mr. Bernanke's comments set off speculation that market interest rates would
soon begin to rise, and longer-term rates, such as those for 10-year
Treasuries, did increase during the summer, even though the Fed's QE policy
remained unaltered throughout the remainder of the Trust's fiscal year ended
November 30. The Fed confirmed after the period ended that it was ready to
begin a mild drawdown of QE (subtracting $10 billion worth of bond purchases
per month from the long-standing level of $85 billion).
U.S. Treasuries, in particular, performed poorly after the rise in
interest rates, but the performance of credit-sensitive securities with
fixed interest rates also was affected. Bank loans, however, attracted more
investors and tended to outperform many fixed-income alternatives for much
of the 12-month period.
Even with the strong relative returns of bank loans, there were some
factors that held back the performance of the asset class during the
period. In June 2013, for example, the high-yield market experienced
significant outflows; as a result, high-yield bond investors sold some of
their bank loan investments because such investments were liquid and
their prices had held value more than other fixed-rate instruments, and
thus were easily tradable. Moreover, near the end of the 12-month period,
many outstanding bank loans were called back by their issuing institutions
and replaced by new loans at lower credit spreads. During the 12-month
period, in fact, 42% of the loans in the market were affected by repricing
of loan obligations, which resulted in a fairly large supply of new loans
paying lower yields. The rate of refinancing during the period was higher
than what we had observed during the previous two years.
Q What was your overall investment strategy for the Trust during the 12-month
period ended November 30, 2013?
A As always, we emphasized investments in higher-quality bank loans throughout
the Trust's fiscal year, although we did maintain exposure in the Trust's
portfolio to opportunities throughout the bank loan market.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 5
This "up-in-quality" investment focus did, at times, hold back the Trust's
benchmark-relative performance during the period, as lower-rated loans
(rated CCC) often outperformed higher-rated loans (rated BB and B).
Nevertheless, the Trust did perform well during the full 12-month period,
outpacing the return of the Trust's benchmark, the Barclays Index.
During the Trust's fiscal year, exposure to loans to the health care sector
fell from 14% to 10% of the Trust's total investment portfolio, primarily
due to our concerns about how the U.S. government's sequestration spending
cuts would affect health care institutions. The level of exposure to health
care in the Trust's portfolio also was affected by several write-downs in
the values of some pharmaceutical industry loans. Exposure to technology
company loans also declined during the period, from 12.5% to 10% of the
Trust's total investment portfolio. At the same time, we increased exposure
to investments in loans to basic materials companies during the period,
from 9.1% to 11.1% of the Trust's total investment portfolio, while
exposures to the transportation and consumer industries in the Trust's
portfolio also were increased.
As of November 30, 2013, investments in BB-rated and B-rated loans combined
to account for more than 85% of the Trust's total investment portfolio.
Loans rated BBB accounted for roughly 5% of the Trust's total investment
portfolio, while loans rated CCC and lower represented slightly less than 3%
of the Trust's total investment portfolio.
Q What types of loan investments had the largest impact on the Trust's
performance during the 12-month period ended November 30, 2013?
A Investments in CLO securities (about 2% of the Trust's total investment
portfolio) performed particularly well with the resurgence of both new CLOs
and secondary demand for old issuances, as CLO tranches were at discounts
and have floating rates. In addition, the Trust's portfolio benefited from
the appreciation in the values of some common stocks that had been obtained
through the financial restructurings of several companies. Examples of
common stocks that aided the Trust's performance during the period included
shares of New Young Broadcasting, Delta Airlines and Delphi Automotive.
Other individual investments that performed well for the Trust during the
period included loans to Medical Card Systems, a health care management
services company in Puerto Rico; FTS International, an energy field services
company specializing in drilling operations; and Affinion, a marketing and
communications company whose operations include marketing programs to
affinity groups.
6 Pioneer Floating Rate Trust | Annual Report | 11/30/13
Some of our investments did underperform for the Trust during the period,
however, including loans to Azithromycin, a pharmaceutical company; Accent
Care, a home-health services company; Preferred Proppants, a distributor of
materials used in natural gas drilling operations; and Virtual Radiologic,
an operator of medical imaging offices throughout the U.S.
Q How did the level of leverage in the Trust change during the 12-month period
ended November 30, 2013?
A At the end of the 12-month period, 36.1% of the Trust's total managed assets
were financed by leverage, which remained constant, compared with 36.1% of
assets at the start of the fiscal period on December 1, 2012.
During the fiscal period, the Trust employed leverage through the assurance
of auction market preferred shares ("AMPS"). Following the end of the fiscal
period, the Trust redeemed all of its outstanding AMPS. The Trust continues
to employ leverage through a revolving credit facility. As of December 6,
2013, 48.7% of the Trust's total managed assets were financed by leverage
through the credit facility.
Q What is your investment outlook?
A We think the fixed-income markets in general, including the market for bank
loan-based securities, should stabilize in the coming months. The two-year
U.S. budget compromise struck by Democrats and Republicans near the end of
2013 has raised market expectations that the worst of the major political
fights over economic policy might be over, at least for the time being.
This belief had helped to calm the capital markets as the end of the
calendar year approached.
In the current environment, we believe that U.S. economic growth should
continue to strengthen at a moderate pace, with interest rates remaining
low. We believe loan deals should increase as the pace of corporate
activities such as leveraged buyouts and mergers and acquisitions picks up.
Meanwhile, we think default rates for bank loans should remain well below
historical averages in the coming months, a reflection of the overall good
quality of outstanding loan debt. We believe those factors have the
potential to encourage further investment inflows to the bank loan market.
During the second half of the 12-month period, the Trust had a positive
total return. This positive total return was the product of interest income
rather than from capital appreciation. We think that this trend should
continue given that the Barclays Index is nearly at par.
We believe that the main advantage to investing in bank loans, which is
their floating-rate feature, should prove especially compelling as the
likelihood grows that market interest rates will again, at some point,
begin to increase. The advantage of bank loans, in our view, should become
even more obvious to investors once the effects of the Fed's QE tapering
begin to be felt in 2014.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 7
Please refer to the Schedule of Investments on pages 13-40 for a full listing of
Trust securities.
The Trust may invest in derivative securities, which may include futures and
options. 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 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 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.
During the fiscal year ended November 30, 2013, the Trust employed leverage
through the issuance of preferred shares. Following the end of the fiscal
period, the Trust 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 will not be sufficient to cover the cost of leverage, which may
adversely affect the return for the holders of common shares.
Investments in high-yield or lower-rated securities are subject to greater-than-
average risk. The Trust may invest in securities of issuers that are in default
or that are in bankruptcy.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates and economic and political
conditions.
The Trust is required to maintain certain regulatory and rating agency asset
coverage requirements in connection with its outstanding preferred shares. In
order to maintain required asset coverage levels, the Trust may be required to
alter the composition of its investment portfolio or take other actions, such as
redeeming preferred shares with the proceeds from portfolio transactions, at
what might be inopportune times in the market. Such actions could reduce the net
earnings or returns to holders of the Trust's common shares over time.
These risks may increase share price volatility.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
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.
8 Pioneer Floating Rate Trust | Annual Report | 11/30/13
Portfolio Summary | 11/30/13
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Senior Secured Floating Rate Loan Interests 90.9%
Common Stocks 3.2%
Corporate Bonds & Notes 2.6%
Collateralized Loan Obligations 1.8%
Right/Warrant 1.5%
Asset Backed Security 0.0%*
Liquidating Trusts 0.0%*
Claims 0.0%*
* Amount is less than 0.1%.
Quality Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on Standard & Poor's (S&P)
ratings.)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
BBB 5.3%
BB 34.2%
B 51.1%
CCC 2.3%
D 0.6%
Not Rated 6.5%
Bond ratings are ordered highest to lowest in portfolio. Based on Standard &
Poor's measures, AAA (highest possible rating) through BBB are considered
investment grade; BB or lower ratings are considered non-investment grade. Cash
equivalents and some bonds may not be rated.
The portfolio is actively managed and current holdings may be different.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 9
Portfolio Summary | 11/30/13 (continued)
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Delphi Automotive Plc 2.46%
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2. Univision Communications, Inc., Converted Extended First-Lien Term Loan, 4.5%, 3/1/20 1.66
------------------------------------------------------------------------------------------------------
3. Cequel Communications LLC, Term Loan, 3.5%, 2/14/19 1.49
------------------------------------------------------------------------------------------------------
4. New Young Broadcasting Holding Co., Inc., expires 12/24/24 1.47
------------------------------------------------------------------------------------------------------
5. Dunkin' Brands, Inc., Term B-3 Loan, 3.75%, 2/14/20 0.77
------------------------------------------------------------------------------------------------------
6. Bright Horizons Family Solutions LLC, Term B Loan, 5.25%, 1/30/20 0.75
------------------------------------------------------------------------------------------------------
7. Appvion, Inc., Term Commitment, 6.75%, 6/28/19 0.75
------------------------------------------------------------------------------------------------------
8. HCA, Inc., Tranche B-5 Term Loan, 2.998%, 3/31/17 0.74
------------------------------------------------------------------------------------------------------
9. Telesat Canada, U.S. Term B-2 Loan, 3.5%, 3/28/19 0.74
------------------------------------------------------------------------------------------------------
10. Expert Global Solutions, Inc., Advance First Lien Term Loan B, 8.5%, 4/3/18 0.72
------------------------------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
10 Pioneer Floating Rate Trust | Annual Report | 11/30/13
Prices and Distributions | 11/30/13
Market Value per Common Share
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--------------------------------------------------------------------------------
11/30/13 11/30/12
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Market Value $12.41 $13.41
--------------------------------------------------------------------------------
Premium (Discount) (5.2)% 2.7%
--------------------------------------------------------------------------------
Net Asset Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
11/30/13 11/30/12
--------------------------------------------------------------------------------
$13.06 $13.06
--------------------------------------------------------------------------------
Distributions per Common Share: 12/1/12- 11/30/13
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
$0.90 $ -- $ --
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Yields
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
11/30/13 11/30/12
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30-day SEC Yield 6.69% 6.38%
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The data shown above represents past performance, which is no guarantee of
future results.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 11
Performance Update | 11/30/13
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in market value, including
reinvestment of dividends and distributions, of a $10,000 investment made in
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, 2013)
--------------------------------------------------------------------------------
Net Asset Market
Period Value (NAV) Price
--------------------------------------------------------------------------------
Life-of-Trust
(12/28/04) 5.07% 3.93%
5 Years 18.34 22.47
1 Year 7.15 -0.84
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Market Value of $10,000 Investment
Pioneer Floating Barclays U.S. CS Leveraged
Rate Trust High Yield Loans Index* Loan Index**
12/23/2004 $ 10,000 $ 10,000
11/30/2005 $ 9,167 $ 10,462
11/30/2006 $ 10,871 $ 10,913 $ 11,199
11/30/2007 $ 11,201 $ 10,254 $ 11,463
11/30/2008 $ 6,825 $ 7,476 $ 8,514
11/30/2009 $ 9,273 $ 10,826 $ 11,557
11/30/2010 $ 11,321 $ 12,068 $ 12,879
11/30/2011 $ 12,518 $ 12,316 $ 13,221
11/30/2012 $ 14,050 $ 13,539 $ 14,436
11/30/2013 $ 14,118 $ 14,305 $ 15,354
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
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.
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 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, 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.
* 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 $10,913, which is equal to the Trust's
value at 11/30/2006.
** 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 2006, two years after the inception of the Trust in 2004, the Trust will
continue to provide "Market Value of $10,000 Investment" comparisons for both
the CS Index and the Barclays Index.
Returns of both indices are calculated monthly, assume reinvestment of dividends
and, unlike Trust returns, do not reflect any fees, expenses or sales charges.
The indices do not use leverage. You cannot invest directly in an index.
12 Pioneer Floating Rate Trust | Annual Report | 11/30/13
Schedule of Investments | 11/30/13
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITY -- 0.1% of
Net Assets
CONSUMER SERVICES -- 0.1%
Hotels, Resorts, Cruise Lines -- 0.1%
148,788 BB/NR Westgate Resorts LLC, Series 2012-2A,
Class C, 9.0%, 1/20/25 (144A) $ 152,508
---------------
Total Consumer Services $ 152,508
------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITY
(Cost $148,788) $ 152,508
------------------------------------------------------------------------------------------------------
COLLATERALIZED LOAN
OBLIGATIONS -- 2.6% of Net Assets
BANKS -- 2.6%
Diversified Banks -- 0.9%
1,000,000(a)(b)(c) BB+/Ba2 Primus, Ltd., Series 2007-2A, Class D,
2.644%, 7/15/21 (144A) $ 915,540
1,000,000(b)(c) B+/Ba2 Rampart, Ltd., Series 2006-1A, Class D,
3.796%, 4/18/21 (144A) 948,510
951,289(b)(c) CCC+/Ba3 Stanfield McLaren, Ltd., Series 2007-1A,
Class B2L, 4.736%, 2/27/21 (144A) 863,504
---------------
$ 2,727,554
------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.7%
1,000,000(b)(c) BB+/Ba2 ACA, Ltd., Series 2007-1A, Class D,
2.594%, 6/15/22 (144A) $ 920,600
1,000,000(b)(c) BBB/Ba1 Goldman Sachs Asset Management Plc,
Series 2007-1A, Class D, 2.992%,
8/1/22 (144A) 973,780
1,000,000(b)(c) BBB/Baa2 Gulf Stream - Sextant, Ltd., Series 2007-
1A, Class D, 2.654%, 6/17/21 (144A) 966,200
1,000,000(b)(c) BB/Ba3 Landmark CDO, Ltd., Series 2007-9A,
Class E, 3.744%, 4/15/21 (144A) 943,820
2,000,000(b)(c) BBB/Baa3 Stone Tower, Ltd., Series 2007-6A, Class C,
1.594%, 4/17/21 (144A) 1,821,480
---------------
$ 5,625,880
---------------
Total Banks $ 8,353,434
------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED LOAN OBLIGATIONS
(Cost $7,267,667) $ 8,353,434
------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE
LOAN INTERESTS -- 131.9% of Net Assets*(c)
AUTOMOBILES & COMPONENTS -- 7.3%
Auto Parts & Equipment -- 5.4%
363,283 BB-/Ba3 Allison Transmission, Inc., New Term B-2
Loan, 3.17%, 8/7/17 $ 365,099
2,662,532 B+/Ba3 Allison Transmission, Inc., Term Loan B-3,
3.75%, 8/23/19 2,676,260
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 13
Schedule of Investments | 11/30/13 (continued)
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Auto Parts & Equipment -- (continued)
2,152,500 B+/B1 ARC Automotive Group, Inc., Term Loan,
6.25%, 11/15/18 $ 2,160,572
1,725,269 B+/B3 ASP HHI Acquisition Co., Inc., Additional
Term Loan, 5.0%, 10/5/18 1,742,953
714,792 B/B1 Federal-Mogul Corp., Tranche B Term
Loan, 2.108%, 12/29/14 707,823
421,769 B/B1 Federal-Mogul Corp., Tranche C Term
Loan, 2.108%, 12/28/15 417,657
3,319,263 B+/B1 Metaldyne LLC, USD Term Loan, 5.0%, 12/18/18 3,348,306
1,219,609 B+/B1 TI Group Automotive Systems LLC,
Additional Term Loan, 5.5%, 3/28/19 1,231,805
971,353 BB/Ba2 Tomkins LLC, Term Loan B-2, 3.75%, 9/29/16 976,574
2,537,266 B+/B1 Tower Automotive Holdings USA, LLC, Refinancing
First Lien Term Loan, 4.75%, 4/23/20 2,562,608
1,094,063 B/Ba2 UCI International, Inc., (United Components),
Term Loan, 5.5%, 7/26/17 1,096,114
---------------
$ 17,285,771
------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 1.0%
3,294,565 BB/Ba1 Chrysler Group LLC, Term Loan B, 4.25%, 5/24/17 $ 3,325,185
------------------------------------------------------------------------------------------------------
Tires & Rubber -- 0.9%
3,000,000 BB/Ba1 Goodyear Tire & Rubber Co., Second
Lien Term Loan, 4.75%, 4/30/19 $ 3,034,689
---------------
Total Automobiles & Components $ 23,645,645
------------------------------------------------------------------------------------------------------
BANKS -- 0.4%
Thrifts & Mortgage Finance -- 0.4%
1,295,246 B/B1 Ocwen Loan Servicing, Initial Term
Loan, 5.0%, 2/15/18 $ 1,312,570
---------------
Total Banks $ 1,312,570
------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 9.1%
Aerospace & Defense -- 4.3%
1,191,498 B+/B1 Accudyne Industries Borrower
S.C.A./Accudyne Industries LLC, Refinancing
Term Loan, 4.0%, 12/13/19 $ 1,193,639
617,374 B-/B2 Cadence Aerospace Finance, Inc., Term
Loan, 6.5%, 5/9/18 620,075
1,041,990 B-/B2 DAE Aviation Holdings, Inc., Tranche B-1
Loan, 6.25%, 11/2/18 1,050,456
1,659,660 BBB-/Ba2 Digitalglobe, Inc., Term Loan, 3.75%, 1/31/20 1,673,483
662,999 BB-/NR DynCorp International, Inc., Term Loan,
6.25%, 7/7/16 669,837
1,290,537 B/B3 Hunter Defense Technologies, Inc.,
Term Loan, 3.49%, 8/22/14 1,242,141
1,608,244 CCC+/Caa1 IAP Worldwide Services, Inc., First Lien
Term Loan, 10.0%, 12/31/15 522,679
The accompanying notes are an integral part of these financial statements.
14 Pioneer Floating Rate Trust | Annual Report | 11/30/13
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Aerospace & Defense -- (continued)
1,563,188 B/B1 Sequa Corp., Initial Term Loan,
5.25%, 6/19/17 $ 1,546,904
1,752,169 B+/B1 SI Organization, Inc., New Tranche B
Term Loan, 5.5%, 11/22/16 1,747,788
472,370 B/B2 Standard Aero, Ltd., Tranche B-2 Loan,
6.25%, 11/2/18 476,208
1,721,952 BB-/B1 TASC, Inc., New Tranche B Term Loan,
4.5%, 12/18/15 1,643,029
992,500 B/B1 WP CPP Holdings LLC, First Lien Term
Loan, 4.75%, 12/28/19 996,636
680,000 NR/NR WP CPP Holdings LLC, Second Lien
Term Loan B-1, 8.75%, 4/30/21 694,450
---------------
$ 14,077,325
------------------------------------------------------------------------------------------------------
Building Products -- 1.2%
1,328,325 BB-/B1 Armstrong World Industries, Inc., Term
Loan B, 3.5%, 3/15/20 $ 1,332,269
1,728,191 B+/B1 Summit Materials LLC, Term B Loan,
5.0%, 1/30/19 1,737,373
818,813 B+/B1 Unifrax Holding Co., New Term B Dollar
Loan, 4.25%, 11/28/18 822,902
---------------
$ 3,892,544
------------------------------------------------------------------------------------------------------
Construction & Farm Machinery &
Heavy Trucks -- 0.7%
480,666 BB/Ba2 Manitowoc Co., Inc., Term Loan B,
4.25%, 11/13/17 $ 482,164
870,000 BB-/Ba3 Navistar, Inc., Tranche B, Term Loan,
5.75%, 8/17/17 886,585
836,624 B+/B2 Waupaca Foundry, Inc., Term Loan, 4.5%, 6/29/17 $ 839,239
---------------
$ 2,207,988
------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 1.1%
2,207,063 B+/B1 Pelican Products, Inc., First Lien Term
Loan, 7.0%, 7/11/18 $ 2,215,339
1,212,750 BB-/Ba2 WireCo WorldGroup, Inc., Term Loan,
6.0%, 2/15/17 1,226,393
---------------
$ 3,441,732
------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.7%
2,235,729 B+/B2 Pro Mach, Inc., Term Loan, 4.5%, 7/6/17 $ 2,248,305
------------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.9%
2,103,660 B+/Ba3 Ina Beteiligungsgesellschaft Mit
Beschrankter Haftung, Facility C (USD),
4.25%, 1/27/17 $ 2,121,804
706,450 BB-/Ba3 Xerium Technologies, Inc., New Term
Loan, 5.75%, 5/17/19 710,277
---------------
$ 2,832,081
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 15
Schedule of Investments | 11/30/13 (continued)
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.2%
711,169 B+/Ba3 WESCO Distribution, Inc., Tranche B-1
Loan, 5.75%, 12/12/19 $ 713,835
---------------
Total Capital Goods $ 29,413,810
------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL
SERVICES -- 6.1%
Commercial Printing -- 0.3%
789,367 NR/NR Cenveo Corp., Term Loan B, 6.25%, 2/13/17 $ 794,794
------------------------------------------------------------------------------------------------------
Diversified Support Services -- 1.3%
1,067,925 B-/B2 InfoGroup, Inc., Term Loan B, 8.0%, 5/26/18 $ 882,819
1,124,602 BB-/Ba3 KAR Auction Services, Inc., Term Loan,
3.75%, 5/19/17 1,131,856
2,222,743 B-/B1 Language Line LLC, Tranche B Term
Loan, 6.25%, 6/20/16 2,216,492
---------------
$ 4,231,167
------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 1.3%
1,083,500 BB+/Baa3 Convata Energy Corp., Term Loan, 3.5%, 3/28/19 $ 1,090,723
297,750 BBB-/Ba1 Progressive Waste Solutions Ltd., Term B Loan,
3.0%, 10/24/19 298,122
496,250 B-/B2 Tervita Corp., (fka CCS Corp.), Term Loan,
6.25%, 5/15/18 497,336
996,210 B+/B1 Waste Industries USA, Inc., Term Loan B,
4.0%, 3/17/17 999,635
1,412,981 B+/B1 WCA Waste Corp. (WCA Waste Systems, Inc.),
Term Loan, 4.0%, 3/23/18 1,416,514
---------------
$ 4,302,330
------------------------------------------------------------------------------------------------------
Human Resource & Employment
Services -- 0.4%
1,385,739 BB-/Ba2 On Assignment, Inc., Initial Term B Loan,
3.5%, 5/15/20 $ 1,385,161
------------------------------------------------------------------------------------------------------
Research & Consulting Services -- 1.1%
1,449,283 B+/Ba2 Crown Castle Operating Co., New
Tranche B Term Loan, 3.25%, 1/31/19 $ 1,450,023
2,254,192 BB-/Ba3 Wyle Services Corp., First Lien Term
Loan, 5.0%, 3/26/17 2,249,026
---------------
$ 3,699,049
------------------------------------------------------------------------------------------------------
Security & Alarm Services -- 1.7%
1,018,906 B+/Ba3 Allied Security Holdings LLC, First Lien
Term Loan, 5.25%, 2/4/17 $ 1,026,122
497,500 BB/B1 GEO Group, Inc., Term Loan, 3.25%, 4/3/20 496,878
2,383,804 B/Ba3 Monitronics International, Inc., 2013
Term Loan B, 4.25%, 3/23/18 2,405,656
The accompanying notes are an integral part of these financial statements.
16 Pioneer Floating Rate Trust | Annual Report | 11/30/13
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Security & Alarm Services -- (continued)
1,499,504 B+/B1 Protection One, Inc., 2012 Term Loan,
4.25%, 3/21/19 $ 1,505,127
---------------
5,433,783
---------------
Total Commercial & Professional Services $ 19,846,284
------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 1.4%
Automobiles & Components -- 0.3%
1,000,000 B+/NR CWGS Group LLC, Term Loan, 4.75%, 2/20/20 $ 1,001,255
------------------------------------------------------------------------------------------------------
Broadcasting -- 0.1%
350,000 CCC+/Caa2 Learfield Communications, Inc., Initial Second
Lien Term Loan, 8.75%, 10/8/21 $ 358,750
------------------------------------------------------------------------------------------------------
Education Services -- 0.5%
1,492,396 B/B1 Laureate Education, Inc., Series 2018
Extended Term Loan, 5.0%, 6/15/18 $ 1,504,832
------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.3%
986,842 BB/Ba3 Hilton Worldwide Finance LLC, Initial
Term Loan, 3.75%, 10/26/20 $ 991,406
------------------------------------------------------------------------------------------------------
Retailing -- 0.2%
750,000 B/B2 Spin Holdco, Inc., Incremental Term
Loan B, 3.25%, 11/14/19 $ 750,469
---------------
Total Consumer Discretionary $ 4,606,712
------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 4.2%
Apparel, Accessories & Luxury Goods -- 0.3%
982,243 BBB-/Ba1 PVH Corp., Tranche B Term Loan,
3.25%, 2/13/20 $ 985,719
------------------------------------------------------------------------------------------------------
Home Furnishings -- 1.0%
1,682,604 B+/B1 Serta Simmons Holdings LLC, Term
Loan, 4.25%, 10/1/19 $ 1,690,228
1,465,478 BB/Ba3 Tempur Pedic International, Inc., Term
Loan B, 3.5%, 3/18/20 1,466,853
---------------
$ 3,157,081
------------------------------------------------------------------------------------------------------
Homebuilding -- 0.1%
1,000,000(a)(b)(d) BBB-/Ba2 WAICCS Las Vegas 3 LLC, First Lien
Term Loan, 7.75%, 7/30/09 $ 355,000
4,500,000(a)(b)(d) BBB-/Ba2 WAICCS Las Vegas 3 LLC, Second Lien
Term Loan, 13.25%, 7/30/09 --
---------------
$ 355,000
------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 2.2%
1,473,552 BB+/NR Jarden Corp., New Tranche B Term
Loan, 2.664%, 3/31/18 $ 1,477,465
1,681,656 BB-/Ba3 Prestige Brands, Inc., Term B-1 Loan,
5.0%, 1/31/19 1,693,218
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 17
Schedule of Investments | 11/30/13 (continued)
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Housewares & Specialties -- (continued)
2,300,067 B+/B1 Reynolds Group Holdings, Inc., Incremental
U.S. Term Loan, 4.0%, 12/1/18 $ 2,319,836
1,591,501 B+/B1 World Kitchen LLC, U.S. Term Loan, 5.5%, 3/4/19 1,611,395
---------------
$ 7,101,914
------------------------------------------------------------------------------------------------------
Textiles -- 0.6%
2,017,726 NR/Ba3 Klockner Pentaplast of America, Inc., Term Loan
B-1, 5.75%, 12/21/16 $ 2,041,687
---------------
Total Consumer Durables & Apparel $ 13,641,401
------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 8.3%
Casinos & Gaming -- 1.0%
28,112 BBB-/Ba2 Las Vegas Sands LLC, Delayed Draw I
Term Loan, 2.67%, 11/23/16 $ 28,142
139,872 BBB-/Ba2 Las Vegas Sands LLC, Tranche B Term
Loan, 2.67%, 11/23/16 140,018
1,488,750 BB/Ba2 MGM Resorts International (MGM Grand
Detroit LLC), Term B Loan, 3.5%, 12/20/19 1,491,541
1,447,500 BBB-/Baa3 Seminole Tribe of Florida, Initial Term
Loan, 3.0%, 4/29/20 1,449,599
---------------
$ 3,109,300
------------------------------------------------------------------------------------------------------
Education Services -- 1.6%
3,502,278 B+/B1 Bright Horizons Family Solutions LLC,
Term B Loan, 5.25%, 1/30/20 $ 3,528,107
1,741,250 NR/B2 McGraw-Hill Global Education Holdings
LLC, Term B Loan, 9.0%, 3/22/19 1,776,075
---------------
$ 5,304,182
------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.6%
1,728,125 BB-/Ba2 Seven Sea Cruises S. DE R.L., Term B-1
Loan, 4.75%, 12/21/18 $ 1,747,566
------------------------------------------------------------------------------------------------------
Internet Software & Services -- 0.3%
990,019 B/B1 Sabre, Inc., Term B Loan, 5.25%, 2/19/19 $ 998,770
------------------------------------------------------------------------------------------------------
Leisure Facilities -- 0.8%
864,425 BB+/Ba1 Cedar Fair, LP, U.S. Term Facility, 3.25%,
3/6/20 $ 868,473
249,375 BB-/Ba3 Sea World Parks & Entertainment, Inc.,
Term B-2 Loan, 3.0%, 5/14/20 247,059
1,518,290 BB+/Ba2 Six Flags Theme Parks, Inc., Tranche B
Term Loan, 4.0%, 12/20/18 1,529,129
---------------
$ 2,644,661
------------------------------------------------------------------------------------------------------
Restaurants -- 3.5%
1,110,780 BB/Ba3 Burger King Corp.,2012 Tranche B Term
Loan, 3.75%, 9/28/19 $ 1,116,329
206,525 BB-/Ba2 DineEquity, Inc., Term B-2 Loan,
3.75%, 10/19/17 207,871
The accompanying notes are an integral part of these financial statements.
18 Pioneer Floating Rate Trust | Annual Report | 11/30/13
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Restaurants -- (continued)
3,614,755 B+/B2 Dunkin' Brands, Inc., Term B-3 Loan,
3.75%, 2/14/20 $ 3,629,062
2,928,463 B+/B1 Landry's, Inc., (fka Landry's Restaurants,
Inc.), Term Loan B, 4.0%, 4/24/18 2,949,818
1,791,542 B/Ba3 NPC International, Inc., Term Loan,
4.5%, 12/28/18 1,807,218
1,516,737 BB-/B1 Wendy's International, Inc., Term B
Loan, 3.25%, 5/15/19 1,520,257
---------------
$ 11,230,555
------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.5%
1,990,000 BB/Baa1 Weight Watchers International, Inc., Initial
Tranche B-2 Term Loan, 3.75%, 4/2/20 $ 1,728,813
---------------
Total Consumer Services $ 26,763,847
------------------------------------------------------------------------------------------------------
CONSUMER STAPLES -- 0.3%
Packaged Foods & Meats -- 0.3%
1,045,068 B+/B1 Acosta, Inc., 2013 Term Loan B, 5.5%, 3/3/18 $ 1,053,559
---------------
Total Consumer Staples $ 1,053,559
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.4%
Investment Banking & Brokerage -- 0.8%
1,219,450 B/B1 Duff & Phelps Corp., Initial Term Loan,
4.5%, 4/23/20 $ 1,220,974
750,000 NR/NR Guggenheim Partners Investment
Management Holdings LLC, Initial Term
Loan, 4.25%, 7/22/20 756,938
541,778 BB-/Ba2 LPL Holdings, Inc., 2013 Incremental
Tranche B Term Loan, 3.25%, 3/29/19 $ 541,777
---------------
$ 2,519,689
------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 2.1%
1,708,408 BBB/Ba2 AWAS Finance Luxembourg 2012 SA,
Term Loan, 3.5%, 7/16/18 $ 1,718,018
902,372 BBB-/B1 Fly Funding II S.a.r.l., Term Loan, 4.5%, 8/9/19 910,268
1,000,000 NR/Baa2 Kasima LLC, Term Loan, 3.25%, 5/17/21 1,000,000
2,044,875 B/B1 Livingston International, Inc., First Lien
Initial Term B-1 Loan, 5.0%, 4/18/19 2,049,987
989,394 BB/Ba3 Ship Luxco 3 S.a.r.l. (RBS Worldpay),
Facility B2A, 5.25%, 11/29/19 999,288
---------------
$ 6,677,561
------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.5%
1,756,725 B/B1 Mirror Bidco Corp., Term Loan, 5.25%, 12/28/19 $ 1,769,900
---------------
Total Diversified Financials $ 10,967,150
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 19
Schedule of Investments | 11/30/13 (continued)
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
ENERGY -- 5.2%
Coal & Consumable Fuels -- 1.0%
900,000 B+/Ba3 Foresight Energy LLC, Term Loan, 5.5%, 8/21/20 $ 904,500
1,496,250 BB-/Ba3 Murray Energy Corp., Term Loan, 4.75%, 5/24/19 1,498,121
883,333 NR/NR PT Bumi Resources Tbk, Term Loan,
18.169%, 11/7/14 883,333
---------------
$ 3,285,954
------------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.2%
694,264 BBB/Baa2 Glenn Pool Oil & Gas Trust 1, Term Loan,
4.5%, 5/2/16 $ 697,736
------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.8%
995,000 B-/B3 Offshore Group Investment, Ltd.,
(Vantage Delaware Holdings LLC), Second
Lien Term Loan, 5.75%, 3/28/19 $ 1,007,853
1,097,250 B+/B1 Pacific Drilling SA, Term Loan, 4.5%, 6/3/18 1,109,594
496,250 B+/Ba1 Shelf Drilling Holdings, Ltd., Term Loan,
6.25%, 5/31/18 498,731
---------------
$ 2,616,178
------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 1.1%
1,688,995 CCC+/B3 Frac Tech Services International, Inc.,
Term Loan, 8.5%, 5/6/16 $ 1,683,717
2,462,500(a) B+/Caa1 Preferred Proppants LLC, Term Loan B,
11.75%, 12/15/16 1,686,812
---------------
$ 3,370,529
------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.6%
1,600,000 BB-/Ba3 Chesapeake Energy Corp., Term Loan,
5.75%, 12/2/17 $ 1,635,889
1,516,667 B+/Ba3 EP Energy LLC, Tranche B-3 Term Loan,
3.5%, 5/24/18 1,522,354
350,000 BB-/Ba2 Fieldwood Energy LLC, Closing Date
Term Loan, 3.875%, 9/28/18 353,305
1,600,000 B/B1 Samson Investment Co., Second Initial
Term Loan, 6.0%, 9/25/18 1,614,000
---------------
$ 5,125,548
------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.5%
1,693,224 BB/Ba2 Pilot Travel Centers LLC, Refinancing
Tranche B Term Loan, 3.75%, 3/30/18 $ 1,696,917
---------------
Total Energy $ 16,792,862
------------------------------------------------------------------------------------------------------
FINANCIALS -- 0.9%
Diversified Real Estate Activities -- 0.4%
1,150,000 B+/B3 CityCenter Holdings LLC, Term B loan,
5.0%, 10/16/20 $ 1,166,052
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Floating Rate Trust | Annual Report | 11/30/13
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.2%
750,000 B/B2 Springleaf Financial Funding Co., 2019
Term Loan, 4.75%, 9/30/19 $ 759,375
------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.3%
1,000,000 B/B1 Hyperion Finance S.a.r.l., Term Loan,
5.75%, 10/17/19 $ 995,000
---------------
Total Financials $ 2,920,427
------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 1.0%
Food Distributors -- 0.8%
2,493,750 B/B1 Mill US Acquisition First Lien Term Loan,
4.75%, 7/3/20 $ 2,506,219
------------------------------------------------------------------------------------------------------
Food Retail -- 0.2%
615,445 B+/B1 Roundy's Supermarkets, Inc., Tranche B
Term Loan, 5.75%, 2/13/19 $ 605,773
---------------
Total Food & Staples Retailing $ 3,111,992
------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.7%
Agricultural Products -- 0.6%
997,500 B/Ba3 Arysta LifeScience SPC LLC, Initial First
Lien Term Loan, 4.5%, 5/29/20 $ 1,006,228
953,475 CCC+/Caa1 Arysta LifeScience SPC LLC, Initial Second
Lien Term Loan, 8.25%, 11/30/20 966,275
---------------
$ 1,972,503
------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 4.1%
585,575 B/B1 AdvancePierre Foods, Inc., First Lien
Term Loan, 5.75%, 7/10/17 $ 584,111
950,000 BB-/B1 Aramark Canada Ltd., Extended
Canadian Term Loan B, 3.748%, 7/26/16 954,489
2,159,346 B/B1 Del Monte Foods Co., Initial Term Loan,
4.0%, 3/8/18 2,166,086
1,645,875 BB/Ba2 H.J. Heinz Co., Term B-2 Loan, 3.5%, 6/5/20 1,659,330
1,209,714 NR/B2 Heartshide Food Solutions LLC, Term
Loan A, 6.5%, 6/7/18 1,217,274
1,409,811 B+/Ba3 Michael Foods Group, Inc., Facility Term
Loan B, 4.25%, 2/25/18 1,420,604
2,000,000 B-/NR New HB Acquisition LLC, Term B Loan,
6.75%, 4/9/20 2,065,000
2,238,750 BB/Ba3 Pinnacle Foods Finance LLC, New Term
Loan G, 3.25%, 4/29/20 2,238,983
889,000 BB-/B1 Windsor Quality Food Co., Ltd., Tranche
B Term Loan, 5.0%, 2/16/17 887,678
---------------
$ 13,193,555
---------------
Total Food, Beverage & Tobacco $ 15,166,058
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 21
Schedule of Investments | 11/30/13 (continued)
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
HEALTH CARE -- 2.0%
Biotechnology -- 0.9%
2,750,804 B+/B2 Aptalis Pharma, Inc., Term Loan B,
6.0%, 10/5/20 $ 2,781,750
------------------------------------------------------------------------------------------------------
Health Care Services -- 0.6%
1,875,000 B/B2 Gentiva Health Services, Inc., Initial
Term Loan B, 6.5%, 10/18/19 $ 1,852,734
------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.5%
987,500 BB/Ba1 Valeant Pharmaceuticals International, Inc.,
Series C-2 Tranche B Term Loan,
3.75%, 12/11/19 $ 996,578
740,625 BB/NR Valeant Pharmaceuticals International, Inc.,
Series D-2 Term Loan B, 3.75%, 2/13/19 747,434
---------------
$ 1,744,012
---------------
Total Health Care $ 6,378,496
------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 12.0%
Health Care Equipment & Services -- 0.6%
1,604,798 BB/NR Hologic, Inc., Refinancing Tranche B
Term Loan, 3.75%, 8/1/19 $ 1,615,204
481,465 BB-/Ba2 Kinetic Concepts, Inc., Dollar D-1 Term
Loan, 4.5%, 5/4/18 487,257
---------------
$ 2,102,461
------------------------------------------------------------------------------------------------------
Health Care Facilities -- 4.1%
1,116,865 BB/Ba2 CHS/Community Health Systems, Inc.,
Extended Term Loan, 3.748%, 1/25/17 $ 1,124,233
2,448,472 BB/Ba3 HCA, Inc., Tranche B-4 Term Loan,
2.914%, 5/1/18 2,452,769
3,471,473 BB/NR HCA, Inc., Tranche B-5 Term Loan,
2.998%, 3/31/17 3,477,701
1,608,967 B/Ba3 Iasis Healthcare LLC, Term B-2 Loan,
4.5%, 5/3/18 1,622,032
1,093,740 B+/Ba3 Kindred Healthcare, Inc., Term B-1 Loan,
4.25%, 6/1/18 1,097,841
1,488,769 B/B2 RCHP, Inc., 2013 First Lien Term Loan,
7.0%, 11/4/18 1,458,993
939,141 B+/Ba2 Select Medical Corp., Tranche B Term
Loan, 4.0%, 6/1/18 944,416
497,500 B/B1 United Surgical Partners International, Inc.,
New Tranche B Term Loan, 4.75%, 4/3/19 500,995
474,375 BB+/B2 Universal Health Services, Inc., Tranche
B-1 Term Loan, 2.418%, 11/15/16 477,043
---------------
$ 13,156,023
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Floating Rate Trust | Annual Report | 11/30/13
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Health Care Services -- 5.4%
626,996 B+/B2 AccentCare, Inc., Term Loan, 6.5%, 12/22/16 $ 288,418
548,625 B+/Ba3 Alliance Healthcare Services, Inc., Initial
Term Loan, 4.25%, 6/3/19 544,053
789,038 B+/B1 Ardent Medical Services, Inc., First Lien
Term Loan, 6.75%, 7/2/18 791,996
875,000 NR/NR BSN Medical Luxembourg Holding,
S.a.r.l. (P & F Capital), Facility Term Loan
B-1A, 4.0%, 8/28/19 881,563
2,181,891 B-/B3 CCS Medical, Inc., First Lien Loan,
8.25%, 3/31/15 2,147,799
974,303(f) CCC/Caa2 CCS Medical, Inc., Second Lien Term
Loan, 3.25%, 3/31/16 884,180
1,389,500 BB-/Ba2 Davita HealthCare Partners, Inc., Term
Loan B2, 4.0%, 11/1/19 1,400,269
1,191,363 B+/B1 Emergency Medical Services Corp.,
Initial Term Loan, 4.0%, 5/25/18 1,196,447
770,005 B/B2 Inventiv Health, Inc., Consolidated Term
Loan, 7.5%, 8/4/16 764,230
2,481,393 B+/B1 National Mentor Holdings, Inc., Tranche
B-1 Term Loan, 6.5%, 2/9/17 2,504,656
400,000 B/B2 National Surgical Hospitals, Inc., Term
Loan, 5.75%, 8/1/19 401,000
2,107,000 D/NR Rural/Metro Operating Co., LLC, First
Lien Term Loan, 5.75%, 6/30/18 2,002,967
1,246,875 B/B2 Steward Health Care System LLC, Term
Loan, 6.75%, 4/10/20 1,249,992
559,350 B/B2 Surgery Center Holdings, Inc., First Lien
Term Loan, 6.0%, 4/11/19 559,686
606,912 B/B2 Valitas Health Services, Inc., Term Loan B,
5.75%, 6/2/17 586,428
2,188,125 B+/B1 Virtual Radiologic Corp., Term Loan A,
7.25%, 12/22/16 1,176,117
---------------
$ 17,379,801
------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.2%
711,830 B+/NR Alere, Inc., Term Loan B, 5.5%, 6/30/17 $ 717,169
------------------------------------------------------------------------------------------------------
Health Care Technology -- 1.3%
727,198 B+/Ba3 ConvaTec, Inc., Dollar Term Loan,
4.0%, 12/22/16 $ 732,948
2,108,007 BB-/Ba3 Emdeon, Inc., Term B-2 Loan, 3.75%, 11/2/18 2,118,986
562,521 BB-/Ba3 MedAssets, Inc., Term B Loan, 4.0%, 12/13/19 563,836
1,049,315 CCC/Caa3 Medical Card System, Inc., Term Loan,
12.0%, 9/17/15 1,002,096
---------------
$ 4,417,866
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 23
Schedule of Investments | 11/30/13 (continued)
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.4%
692,554 B+/B2 MMM Holdings, Inc., MMM Term Loan,
9.75%, 12/12/17 $ 697,315
503,674 B+/B2 MSO of Puerto Rico, Inc., Term Loan,
9.75%, 12/12/17 507,452
---------------
$ 1,204,767
---------------
Total Health Care Equipment & Services $ 38,978,087
------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 3.0%
Household Products -- 1.7%
200,000 B+/B1 Berlin Packaging LLC, 2013 First Lien
Term Loan, 4.75%, 4/2/19 $ 201,625
1,130,000 BB/Ba3 Spectrum Brands, Inc., Tranche C Term
Loan, 3.5%, 9/4/19 1,134,116
872,631 B/Ba3 Spectrum Brands, Inc., Term Loan,
5.5%, 12/17/19 877,081
985,792 BB-/B1 SRAM LLC, First Lien Term Loan, 5.25%, 4/10/20 984,560
264,369 B/B1 Waddington North America, Inc., Term
Loan 2013, 4.5%, 6/7/20 266,186
1,886,216 B-/B2 Wash MultiFamily Laundry Systems LLC,
U.S. Term Loan, 6.25%, 2/21/19 1,893,289
143,608 B/B1 WNA Holdings, Inc., Term Loan, 4.5%, 6/7/20 144,595
---------------
$ 5,501,452
------------------------------------------------------------------------------------------------------
Personal Products -- 1.3%
2,094,571 BB-/NR NBTY, Inc., B-2 Term Loan, 3.5%, 10/1/17 $ 2,110,717
2,088,281 B+/Ba2 Revlon Consumer Products Corp.,
Replacement Term Loan, 4.0%, 11/20/17 2,106,228
---------------
$ 4,216,945
---------------
Total Household & Personal Products $ 9,718,397
------------------------------------------------------------------------------------------------------
INDUSTRIALS -- 1.1%
Building Products -- 0.3%
1,000,000 B-/B3 Quikrete Holdings, Inc., Initial Second
Lien Loan, 7.0%, 3/26/21 $ 1,025,313
------------------------------------------------------------------------------------------------------
Construction & Farm Machinery
& Heavy Trucks -- 0.3%
862,403 BB+/Ba1 Terex Corp., 2013 New U.S. Term Loan,
3.5%, 4/28/17 $ 869,953
------------------------------------------------------------------------------------------------------
Diversified Support Services -- 0.1%
300,000 B-/B3 TMS International Corp., Term B Loan,
4.5%, 10/16/20 $ 301,250
------------------------------------------------------------------------------------------------------
Security & Alarm Services -- 0.1%
394,167 B+/Ba3 Garda Security, Term B Loan, 4.0%, 10/8/20 $ 397,041
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Floating Rate Trust | Annual Report | 11/30/13
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Trucking -- 0.3%
800,000 B/Ba3 Syncreon Global Finance, Inc., Term
Loan, 5.25%, 10/28/20 $ 796,000
---------------
Total Industrials $ 3,389,557
------------------------------------------------------------------------------------------------------
INSURANCE -- 2.1%
Insurance Brokers -- 0.3%
992,500 B/B1 AmWins Group LLC, Term Loan, 5.0%, 9/6/19 $ 997,959
------------------------------------------------------------------------------------------------------
Life & Health Insurance -- 0.3%
927,198 BB/Ba3 CNO Financial Group, Inc., Tranche B-2
Term Loan, 3.75%, 9/28/18 $ 931,255
------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.1%
496,250 B-/B1 Alliant Holdings I LLC, Initial Term Loan,
5.0%, 12/20/19 $ 499,119
------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 1.4%
2,455,331 B-/B2 Confie Seguros Holding II Co., First Lien
Term Loan B, 6.5%, 11/9/18 $ 2,466,073
1,960,188 B/B1 USI, Inc., Initial Term Loan, 5.0%, 12/27/19 1,972,438
---------------
$ 4,438,511
---------------
Total Insurance $ 6,866,844
------------------------------------------------------------------------------------------------------
MATERIALS -- 11.3%
Aluminum -- 1.7%
1,364,225 B/B1 Noranda Aluminum Acquisition Corp.,
Term Loan B, 5.75%, 2/28/19 $ 1,278,961
2,188,159 BB-/Ba2 Novelis, Inc., Initial Term Loan, 3.75%, 3/10/17 2,203,888
1,900,000 NR/B2 Turbocombustor Technology, Inc., Initial
Term Loan, 4.5%, 12/2/20 1,895,250
---------------
$ 5,378,099
------------------------------------------------------------------------------------------------------
Commodity Chemicals -- 0.6%
1,182,068 BB-/B1 Taminco Global Chemical Corp., Tranche
B-2 Dollar Term Loan, 4.25%, 2/15/19 $ 1,190,933
823,365 BBB-/Ba2 Tronox Pigments (Netherlands) B.V.,
Closing Date Term Loan, 4.5%, 3/19/20 834,944
---------------
$ 2,025,877
------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 2.6%
2,501,864 B+/B1 Axalta Coating Systems Dutch Holding B
B.V. & Axalta Coating Systems U.S.
Holdings, Inc., Initial Term B Loan,
4.75%, 2/1/20 $ 2,527,508
645,450 BBB-/Ba1 Eagle Spinco, Inc., Term Loan, 3.5%, 1/28/17 650,022
962,073 B/B1 General Chemical Corp., New Tranche B
Term Loan, 5.75%, 10/6/15 971,694
1,225,449 BB-/B1 Ineos U.S. Finance LLC, Cash Dollar
Term Loan, 4.0%, 5/4/18 1,229,619
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 25
Schedule of Investments | 11/30/13 (continued)
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Diversified Chemicals -- (continued)
1,852,500 B/B2 Nexeo Solutions LLC, Initial Term Loan,
5.0%, 9/8/17 $ 1,835,133
1,342,931 B+/B2 Univar, Inc., Term Loan B, 5.0%, 6/30/17 1,324,945
---------------
$ 8,538,921
------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.5%
2,971,241 BBB-/Baa3 FMG Resources (August 2006) Pty, Ltd.
(FMG America Finance, Inc.), Term Loan,
4.25%, 6/28/19 $ 3,004,667
121,336 BB+/Ba1 SunCoke Energy, Inc., Tranche B Term
Loan, 4.0%, 7/26/18 121,105
1,026,428 BB-/B1 U.S. Silica Co., Term Loan, 4.0%, 7/23/20 1,032,843
877,527 B/B3 Walter Energy, Inc., Term Loan B, 6.75%, 4/1/18 862,329
---------------
$ 5,020,944
------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 1.2%
2,200,481 B/B1 BWAY Holding Co., Initial Term Loan,
4.5%, 8/6/17 $ 2,219,735
1,591,859 B/B1 Tank Holding Corp., Initial Term Loan,
5.5%, 7/9/19 1,585,890
---------------
$ 3,805,625
------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.4%
1,175,407 BB/Ba1 Sealed Air Corp., Replacement Term
Loan, 3.0%, 10/3/18 $ 1,180,549
------------------------------------------------------------------------------------------------------
Paper Products -- 1.4%
3,491,250 B+/Ba3 Appvion, Inc., Term Commitment,
6.75%, 6/28/19 $ 3,515,252
605,000 B/B1 Exopack Holdings SA, USD Term Loan,
5.25%, 5/8/19 615,210
291,628 BB-/Ba3 Ranpak Corp., USD First Lien Term Loan,
4.5%, 4/23/19 293,816
---------------
$ 4,424,278
------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 1.5%
2,776,724 BB+/Ba1 Chemtura Corp., New Term Loan, 3.5%, 8/29/16 $ 2,792,343
153,156 BB+/Ba2 Huntsman International LLC, Extended
Term B Loan, 2.708%, 4/19/17 153,456
1,985,000 B+/B2 PQ Corp. Term Loan, 4.5%, 8/7/17 2,006,446
---------------
$ 4,952,245
------------------------------------------------------------------------------------------------------
Steel -- 0.4%
495,000 B/B1 Essar Steel Algoma, Inc., Term Loan,
9.75%, 9/19/14 $ 502,301
885,146 BB-/B2 JMC Steel Group, Inc., Term Loan, 4.75%, 4/1/17 888,731
---------------
$ 1,391,032
---------------
Total Materials $ 36,717,570
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Floating Rate Trust | Annual Report | 11/30/13
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
MEDIA -- 16.8%
Advertising -- 2.3%
1,802,382 B+/Ba3 Advantage Sales & Marketing, Inc., First
Lien Term Loan, 4.25%, 12/17/17 $ 1,814,211
3,128,306 B-/B2 Affinion Group, Inc., Tranche B Term
Loan, 6.5%, 10/9/16 3,105,823
2,034,625 B/B1 Crossmark Holdings, Inc., First Lien Term
Loan, 4.5%, 12/20/19 2,030,810
402,269 B/B1 Getty Images, Inc., New Initial Term
Loan, 4.75%, 10/18/19 373,570
77,091 BB+/Baa3 Lamar Media Corp., Term Loan B,
4.0%, 12/30/16 77,355
---------------
$ 7,401,769
------------------------------------------------------------------------------------------------------
Broadcasting -- 5.5%
346,467 BB-/Ba3 Entercom Radio LLC, Term B-1 Loan,
6.0%, 11/23/18 $ 348,488
1,838,348 B/B2 FoxCo Acquisition Sub LLC, Initial Term
Loan, 5.5%, 7/14/17 1,847,525
198,748 B+/NR Hubbard Radio LLC, First Lien Term
Loan, 4.5%, 4/29/19 200,239
1,915,200 BB-/Ba3 MCC Iowa LLC, Tranche H Term Loan,
3.25%, 1/29/21 1,897,197
1,414,313 B/B1 NEP/NCP Holdco, Inc., Refinanced First
Lien New Term Loan, 4.75%, 1/22/20 1,422,798
924,667 B/B2 Salem Communications Corp., Term
Loan, 4.5%, 3/16/20 930,446
1,036,386 BB+/Ba1 Sinclair Television Group, Inc., Tranche B
Term Loan, 3.0%, 4/9/20 1,025,797
740,653 NR/Ba3 Truven Health Analytics, Inc., Tranche B
Term Loan, 4.5%, 6/6/19 740,875
1,762,544 B+/Ba3 TWCC Holding Corp., Term Loan, 3.5%, 2/13/17 1,770,983
7,729,448 B+/B2 Univision Communications, Inc., Converted
Extended First-Lien Term Loan, 4.5%, 3/1/20 7,770,515
---------------
$ 17,954,863
------------------------------------------------------------------------------------------------------
Cable & Satellite -- 6.0%
6,988,513 BB-/Ba2 Cequel Communications LLC, Term
Loan, 3.5%, 2/14/19 $ 7,011,225
2,039,888 BB+/Baa3 Charter Communications Operating LLC,
Term F Loan, 3.0%, 1/3/21 2,017,704
1,732,500 BB-/Ba3 MCC Iowa LLC, Tranche G Term Loan,
4.0%, 1/20/20 1,734,290
3,458,830 BB-/Ba3 Telesat Canada, U.S. Term B-2 Loan,
3.5%, 3/28/19 3,473,962
GBP 400,000 BB-/Ba3 Virgin Media Investment Holdings, Ltd.,
GBP Term Loan C, 4.5%, 6/8/20 663,151
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 27
Schedule of Investments | 11/30/13 (continued)
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Cable & Satellite -- (continued)
1,660,000 BB-/Ba3 Virgin Media Investment Holdings, Ltd.,
New Term Loan B, 3.5%, 6/7/20 $ 1,663,010
2,778,931 B/B1 WideOpenWest Finance LLC, Term Loan B,
4.75%, 4/1/19 2,802,140
---------------
$ 19,365,482
------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 2.1%
1,181,660 BB-/Ba2 AMC Entertainment, Inc., Initial Term
Loan, 3.5%, 4/30/20 $ 1,183,665
1,246,875 B+/B1 Aufinco Pty, Ltd. / U.S. Finco LLC (Hoyts
Group), Term Loan B, 4.0%, 5/30/20 1,246,875
844,610 NR/Baa3 Cinedigm Digital Funding I LLC, Term
Loan, 3.75%, 2/28/18 846,194
651,865 NR/NR Lodgenet Interactive Corp., Term Loan,
6.75%, 3/28/18 304,747
1,097,250 BB+/Ba1 Seminole Hard Rock Entertainment, Inc.,
Term Loan B, 3.5%, 5/14/20 1,099,307
2,062,500 BB-/Ba3 WMG Acquisitions Corp., Tranche B
Refinancing Term Loan, 3.75%, 7/1/20 2,065,724
---------------
$ 6,746,512
------------------------------------------------------------------------------------------------------
Publishing -- 0.9%
966,667(a) D/NR Cengage Learning Acquisitions, Inc.,
Term Loan, 4.75%, 7/3/14 $ 732,250
1,608,777 B+/Ba3 Interactive Data Corp., Refinanced Term
Loan, 3.75%, 2/11/18 1,610,537
495,008 BB-/Ba3 MTL Publishing LLC, Term Loan B,
4.25%, 6/29/18 498,412
---------------
$ 2,841,199
---------------
Total Media $ 54,309,825
------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY
& LIFE SCIENCES -- 1.7%
Biotechnology -- 0.9%
933,144 BB+/Ba3 Alkermes, Inc., 2019 Term Loan,
3.5%, 9/25/19 $ 935,476
1,808,770 BB+/Ba1 Grifols, Inc., New U.S. Tranche B Term
Loan, 4.25%, 6/1/17 1,822,450
---------------
$ 2,757,926
------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.8%
3,065,081(f) CCC+/NR Graceway Pharmaceuticals LLC,
Mezzanine Term Loan, 0.0%, 12/31/13 $ 8,622
498,750 B+/B1 Harvard Drug Group, LLC Term Loan,
5.0%, 8/16/20 502,491
672,579 B+/B2 Medpace Intermediateco, Inc., Term
Loan B, 6.25%, 6/19/17 672,578
The accompanying notes are an integral part of these financial statements.
28 Pioneer Floating Rate Trust | Annual Report | 11/30/13
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Pharmaceuticals -- (continued)
1,485,028 B+/B1 Par Pharmaceutical Co., Inc., Term B-1
Loan, 4.25%, 9/30/19 $ 1,495,052
---------------
$ 2,678,743
---------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 5,436,669
------------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.2%
Diversified Real Estate Activities -- 0.2%
497,500 BB/Ba1 CBRE Services, Inc., Tranche B Term Loan,
2.918%, 3/28/21 $ 499,910
------------------------------------------------------------------------------------------------------
Real Estate Services -- 1.0%
1,638,247 B+/B1 Altisource Solutions, S.a.r.l, Term Loan
B, 5.75%, 11/27/19 $ 1,644,390
1,444,615 B/B1 GCA Services Group, Inc., First Lien
Initial Term Loan, 5.25%, 11/1/19 1,451,839
---------------
$ 3,096,229
---------------
Total Real Estate $ 3,596,139
------------------------------------------------------------------------------------------------------
RETAILING -- 3.0%
Apparel Retail -- 0.9%
2,344,824 B-/B2 Gymboree Corp., Term Loan, 5.0%, 2/23/18 $ 2,280,097
492,679 NR/NR Johnny Appleseed's, Inc., First Lien
Second Out Term Loan, 6.5%, 4/25/16 470,508
149,628 NR/NR Johnny Appleseed's, Inc., Junior Term
Loan, 8.0%, 4/25/17 142,895
---------------
$ 2,893,500
------------------------------------------------------------------------------------------------------
Automotive Retail -- 0.6%
720,002 BB/Ba1 Avis Budget Car Rental LLC, Tranche B
Term Loan, 3.0%, 3/15/19 $ 720,542
992,500 BB/Ba1 Hertz Corp., Tranche B-1 Term Loan,
3.75%, 3/11/18 997,374
---------------
$ 1,717,916
------------------------------------------------------------------------------------------------------
Computer & Electronics Retail -- 0.5%
1,808,136 B/B2 Targus Group International, Inc., Term
Loan, 12.0%, 5/24/16 $ 1,627,322
------------------------------------------------------------------------------------------------------
Distributors -- 0.2%
685,000 B+/B2 Spin Holdco, Inc., Initial First Lien Term
Loan, 5.5%, 11/14/19 $ 688,340
------------------------------------------------------------------------------------------------------
Home Improvement Retail -- 0.8%
746,250 B/B1 Apex Tool Group LLC, Term Loan, 4.5%, 1/31/20 $ 751,241
1,862,063 B/Ba3 Hillman Group, Inc., Term Loan, 4.25%, 5/28/17 1,876,028
---------------
$ 2,627,269
---------------
Total Retailing $ 9,554,347
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 29
Schedule of Investments | 11/30/13 (continued)
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 1.3%
Semiconductor Equipment -- 0.7%
1,831,196 BB-/B1 Aeroflex, Inc., Tranche B-1 Term Loan,
4.5%, 11/9/19 $ 1,846,639
511,705 BBB-/Baa3 Sensata Technology BV/Sensata Technology
Finance Co., LLC, Term Loan, 3.5%, 5/12/19 517,551
---------------
$ 2,364,190
------------------------------------------------------------------------------------------------------
Semiconductors -- 0.6%
1,943,844 BB/Ba2 Microsemi Corp., Term Loan B,
3.5%, 2/19/20 $ 1,955,690
---------------
Total Semiconductors &
Semiconductor Equipment $ 4,319,880
------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 9.9%
Application Software -- 5.7%
1,387,966 BB-/NR Applied Systems, Inc., First Lien Term
Loan, 4.25%, 12/8/16 $ 1,395,340
2,300,000 NR/NR Applied Systems, Inc., Second Lien Term
Loan, 8.25%, 6/8/17 2,327,791
1,000,000 BB-/B1 Epiq Systems, Inc., Term Loan, 4.75%, 8/27/20 1,000,000
3,321,304 B-/Ba3 Expert Global Solutions, Inc., Advance
First Lien Term Loan B, 8.5%, 4/3/18 3,354,517
950,525 NR/B2 Houghton Mifflin Holdings., Term Loan,
5.25%, 5/22/18 958,248
1,084,739 B+/Ba3 Infor (U.S.), Inc., Tranche B-2 Term Loan,
5.25%, 4/5/18 1,092,988
1,542,152 BB+/NR Nuance Communications, Inc., Term
Loan C, 2.92%, 8/7/19 1,537,009
1,509,527 B+/B1 Serena Software, Inc., Extended 2016
Term Loan, 4.167%, 3/10/16 1,498,205
2,385,600 BB-/B1 Verint Systems, Inc., Term Loan, 4.0%, 9/6/19 2,398,647
1,000,000 CCC+/Caa1 Vertafore, Inc., Second Lien Term Loan,
9.75%, 10/27/17 1,020,250
1,898,073 B+/B1 Vertafore, Inc., Term Loan, 4.25%, 10/3/19 1,911,516
---------------
$ 18,494,511
------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 1.2%
60,879 B+/B1 First Data Corp., 2017 Dollar Term Loan,
4.166%, 3/24/17 $ 61,120
1,000,000 B+/NR First Data Corp., 2018 B Term Loan,
4.166%, 9/24/18 1,003,828
802,493 B+/B1 First Data Corp., 2018 Dollar Term Loan,
4.166%, 3/24/18 805,723
1,860,961 BB+/Ba2 Genpact, Ltd., Term Loan, 3.5%, 8/30/19 1,865,613
---------------
$ 3,736,284
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Floating Rate Trust | Annual Report | 11/30/13
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Internet Software & Services -- 0.1%
390,000 BB+/Ba3 Autotrader.com, Inc., Tranche B-1 Term
Loan, 4.0%, 12/15/16 $ 392,925
------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 1.8%
1,980,000 BBB-/Baa3 Booz Allen Hamilton, Inc., Initial Tranche
B Term Loan, 3.75%, 7/31/19 $ 1,984,455
1,440,122 B/B1 Deltek, Inc., First Lien Term Loan,
5.0%, 10/10/18 1,447,998
496,250 B/B1 Kronos, Inc., First Lien Incremental Term
Loan, 4.5%, 10/30/19 500,592
1,800,140 BB/Ba3 SunGuard Data Systems, Inc., Tranche C
Term Loan, 3.919%, 2/28/17 1,810,255
---------------
$ 5,743,300
------------------------------------------------------------------------------------------------------
Systems Software -- 1.1%
868,306 BBB-/Ba2 Dealer Computer Services, Inc., Tranche
B Term Loan, 2.164%, 4/21/16 $ 871,422
1,980,693 BB/Ba2 Rovi Solutions Corp., Tranche B-3 Term
Loan, 3.5%, 3/29/19 1,967,670
823,077 B+/B1 Stoneriver Group, LP, Initial First Lien
Term Loan, 4.5%, 11/30/19 823,591
---------------
$ 3,662,683
---------------
Total Software & Services $ 32,029,703
------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE &
EQUIPMENT -- 3.6%
Communications Equipment -- 1.8%
1,485,000 B+/B1 Audio Visual Services Group, Inc., First
Lien Term Loan, 6.75%, 11/9/18 $ 1,496,137
944,504 B/B1 Avaya, Inc., Term B-5 Loan, 8.0%, 3/31/18 942,059
972,544 BB/Ba3 CommScope, Inc., Tranche 2 Term Loan,
3.75%, 1/14/18 974,064
2,305,366 BBB-/Ba3 Riverbed Technology, Inc., Term Loan,
4.0%, 12/18/19 2,321,503
---------------
$ 5,733,763
------------------------------------------------------------------------------------------------------
Electronic Components -- 1.3%
1,306,725 B+/B2 Generac Power Systems, Inc., Term
Loan, 3.5%, 5/31/20 $ 1,309,992
1,578,455 B/B2 Scitor Corp., Term Loan, 5.0%, 2/15/17 1,575,824
1,375,000 B/B2 Securus Technologies Holdings, Inc.,
Initial First Lien Term Loan, 4.75%, 4/30/20 1,362,969
---------------
$ 4,248,785
------------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.3%
984,849 B+/Ba3 Sensus USA, Inc., Term Loan, 4.75%, 5/9/17 $ 987,926
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 31
Schedule of Investments | 11/30/13 (continued)
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.2%
579,024 B+/B2 Clover Technologies Group LLC, (Clover
Holdings, Inc.), Term Loan, 7.75%, 5/7/18 $ 579,386
---------------
Total Technology Hardware & Equipment $ 11,549,860
------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.1%
Integrated Telecommunication Services -- 1.5%
867,825 BB+/Baa3 TW Telecom Holdings, Inc., (fka Time
Warner Telecom Holdings, Inc.), Term
Loan B Loan, 2.67%, 4/17/20 $ 868,910
1,108,083 B+/Ba3 West Corp., Term B-7 Loan, 3.25%, 7/15/16 1,115,301
1,600,092 BB/Ba3 West Corp., Term B-8 Loan, 3.75%, 6/30/18 1,608,988
1,240,625 BB+/Baa3 Windstream Corp., Tranche B-4 Term
Loan, 3.5%, 1/23/20 1,244,890
---------------
$ 4,838,089
------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.6%
1,895,657 BB-/B1 Syniverse Holdings, Inc., Initial Term
Loan, 4.0%, 4/23/19 $ 1,904,898
---------------
Total Telecommunication Services $ 6,742,987
------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 5.2%
Air Freight & Logistics -- 0.9%
496,250 B/B2 Air Medical Group Holdings, Inc., Term
Loan B-1, 6.5%, 6/30/18 $ 504,314
300,000 B/B1 Ceva Group Plc, Dollar Tranche B Pre-Funded
L/C, 0.148%, 8/31/16 292,500
1,200,000 CCC+/B1 Ceva Group Plc, Tranche B Term Loan,
5.237%, 8/31/16 1,176,300
1,062,338 B-/B2 Ozburn-Hessey Holding Co., LLC, Term
Loan, 7.75%, 5/23/19 1,067,649
---------------
$ 3,040,763
------------------------------------------------------------------------------------------------------
Airlines -- 3.2%
828,750 BB-/Ba3 Allegiant Travel Co., Term Loan, 5.75%, 3/10/17 $ 834,966
2,992,500 NR/NR American Airlines, Inc., Class B Term
Loan, 4.75%, 6/27/19 3,019,220
248,750 BB-/Ba2 Continental Airlines, Inc., (United Air
Lines, Inc.), Class B Term Loan, 4.0%, 4/1/19 250,087
1,488,750 B+/Ba2 Delta Air Lines, Inc., Term B-1 Loan,
4.0%, 10/18/18 1,497,818
1,319,625 BB/Ba1 Delta Air Lines, Inc., Term Loan, 3.5%, 4/20/17 1,323,743
1,293,750 B+/B2 U.S. Airways, Inc., B1 Term Loan, 4.25%, 5/23/19 1,300,219
2,156,250 B+/B2 U.S. Airways, Inc., B2 Term Loan, 3.5%, 11/23/16 2,167,480
---------------
$ 10,393,533
------------------------------------------------------------------------------------------------------
Marine -- 0.3%
995,000 CCC/B3 Commercial Barge Line Co., Initial First
Lien Term Loan, 7.5%, 9/22/19 $ 987,537
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Floating Rate Trust | Annual Report | 11/30/13
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Marine Ports & Services -- 0.4%
1,147,125 B/B3 Lineage Logistics LLC, Term Loan, 4.5%, 4/26/19 $ 1,148,798
------------------------------------------------------------------------------------------------------
Trucking -- 0.4%
1,216,617 NR/Ba2 Swift Transportation Co., LLC, Tranche B-2
Term Loan, 4.0%, 12/21/17 $ 1,226,958
---------------
Total Transportation $ 16,797,589
------------------------------------------------------------------------------------------------------
UTILITIES -- 3.3%
Electric Utilities -- 1.1%
2,244,375 BB/Ba3 Calpine Construction Finance Company,
LP, Term B-1 Loan, 3.0%, 5/3/20 $ 2,226,339
1,192,753 BB-/Ba3 Star West Generation LLC, Term B
Advance, 4.25%, 3/13/20 1,202,444
---------------
$ 3,428,783
------------------------------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 2.2%
1,246,610 BB+/Ba1 AES Corp., Initial Term Loan, 3.75%, 6/1/18 $ 1,256,739
1,681,875 BB-/B1 Calpine Corp., Term Loan, 4.0%, 4/1/18 1,696,591
495,000 BB-/B1 Calpine Corp., Term Loan, 4.0%, 10/9/19 499,146
1,074,231 BB-/B2 Dynegy, Inc., Tranche B-2 Term Loan,
4.0%, 4/23/20 1,078,259
1,238,725 BB-/Baa3 NRG Energy, Inc., 2013 Term Loan,
2.75%, 7/1/18 1,239,268
1,500,000 B+/B3 Synagro Technologies, Term Loan,
6.25%, 8/22/20 1,479,375
---------------
$ 7,249,378
---------------
Total Utilities $ 10,678,161
------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING
RATE LOAN INTERESTS
(Cost $436,754,768) $ 426,306,428
------------------------------------------------------------------------------------------------------
CLAIMS -- 0.0% of Net Assets
TRANSPORTATION -- 0.0%
Airlines -- 0.0%
1,200,000(e)(g) NR/NR Northwest Airlines, Inc., ALPA Claim-Escrow,
0.0% $ --
2,500,000(e)(g) NR/NR Northwest Airlines, Inc., Bell Atlantic
Claim-Escrow, 0.0% --
2,500,000(e)(g) NR/NR Northwest Airlines, Inc., EDC Claim-Escrow, 0.0% --
2,130,600(e)(g) NR/NR Northwest Airlines, Inc., Flight Attendant
Claim-Escrow, 0.0% --
1,500,000(e)(g) NR/NR Northwest Airlines, Inc., GE Claim-Escrow, 0.0% --
1,264,500(e)(g) NR/NR Northwest Airlines, Inc., IAM Claim-Escrow, 0.0% --
1,404,900(e)(g) NR/NR Northwest Airlines, Inc., Retiree Claim-Escrow,
0.0% --
---------------
Total Transportation $ --
------------------------------------------------------------------------------------------------------
TOTAL CLAIMS
(Cost $0) $ --
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 33
Schedule of Investments | 11/30/13 (continued)
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES -- 3.8%
of Net Assets
BANKS -- 0.3%
Diversified Banks -- 0.3%
1,000,000(c) BBB/Baa2 Intesa Sanpaolo S.p.A., 2.638%,
2/24/14 (144A) $ 1,004,606
---------------
Total Banks $ 1,004,606
------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.9%
Aerospace & Defense -- 0.6%
1,850,000 BB-/Ba3 Spirit Aerosystems, Inc., 7.5%, 10/1/17 $ 1,924,000
------------------------------------------------------------------------------------------------------
Construction & Farm Machinery
& Heavy Trucks -- 0.3%
1,000,000 B+/B2 Manitowoc Co., Inc., 9.5%, 2/15/18 $ 1,061,250
---------------
Total Capital Goods $ 2,985,250
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.3%
Consumer Finance -- 0.1%
200,000 BBB/Baa1 Capital One Financial Corp., 7.375%, 5/23/14 $ 206,364
------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.2%
500,000(c) BBB-/NR Vita Capital V, Ltd., 2.804%, 1/15/17 (144A) $ 509,300
---------------
Total Diversified Financials $ 715,664
------------------------------------------------------------------------------------------------------
ENERGY -- 1.0%
Oil & Gas Drilling -- 0.1%
250,000 B-/B3 Offshore Group Investment, Ltd.,
7.5%, 11/1/19 $ 271,250
------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.9%
2,490,000 BB/B1 Denbury Resources, Inc., 8.25%, 2/15/20 $ 2,748,337
---------------
Total Energy $ 3,019,587
------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.3%
Health Care Equipment & Services -- 0.3%
903,000 B+/B2 Physio-Control International, Inc.,
9.875%, 1/15/19 (144A) $ 1,011,360
------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.0%+
6,487,382(b) NR/NR Azithromycin Royalty Sub LLC, 16.0%, 5/15/19 $ 8,109
---------------
Total Health Care Equipment & Services $ 1,019,469
------------------------------------------------------------------------------------------------------
INSURANCE -- 0.7%
Reinsurance -- 0.7%
250,000(c) BB-/NR Atlas Reinsurance VII, Ltd., 8.118%,
1/7/16 (144A) $ 258,425
500,000(c) NR/Baa1 Combine Re, Ltd., 4.556%, 1/7/15 (144A) 512,350
250,000(c) BB/NR East Lane Re V, Ltd., 9.056%, 3/16/16 (144A) 272,650
500,000(c) BB/NR Lodestone Re, Ltd., 6.056%, 1/8/14 (144A) 501,900
The accompanying notes are an integral part of these financial statements.
34 Pioneer Floating Rate Trust | Annual Report | 11/30/13
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
250,000(c) BB/NR Mystic Re, Ltd., 9.056%, 3/12/15 (144A) $ 263,000
250,000(c) B+/NR Mythen Re, Ltd. Series 2012-2 Class A,
8.613%, 1/5/17 (144A) 260,425
250,000(c) B/NR Queen Street VII Re, Ltd., 8.656%,
4/8/16 (144A) 259,325
---------------
Total Insurance $ 2,328,075
------------------------------------------------------------------------------------------------------
MATERIALS -- 0.3%
Diversified Metals & Mining -- 0.3%
1,050,000 CCC+/B3 Molycorp, Inc., 10.0%, 6/1/20 $ 1,031,625
---------------
Total Materials $ 1,031,625
------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.0%+
Integrated Telecommunication
Services -- 0.0%+
6,000 BB-/Ba2 Frontier Communications Corp., 8.25%, 5/1/14 $ 6,165
---------------
Total Telecommunication Services $ 6,165
------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES
(Cost $17,918,956) $ 12,110,441
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
Shares
------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 4.7% of Net Assets
AUTOMOBILES & COMPONENTS -- 3.6%
Auto Parts & Equipment -- 3.6%
197,208 Delphi Automotive Plc $ 11,546,528
---------------
Total Automobiles & Components $ 11,546,528
------------------------------------------------------------------------------------------------------
MEDIA -- 0.9%
Broadcasting -- 0.8%
245(h) New Young Broadcasting Holding Co., Inc. $ 2,538,812
------------------------------------------------------------------------------------------------------
Publishing -- 0.1%
266,510(h) Solocal Group $ 423,572
---------------
Total Media $ 2,962,384
------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.0%+
Biotechnology -- 0.0%+
2,454(h) Progenics Pharmaceuticals, Inc. $ 12,565
---------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 12,565
------------------------------------------------------------------------------------------------------
RETAILING -- 0.0%
Apparel Retail -- 0.0%
569(e)(h) Johnny Appleseed's, Inc. $ --
---------------
Total Retailing $ --
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 35
Schedule of Investments | 11/30/13 (continued)
------------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.2%
Air Freight & Logistics -- 0.2%
710(h) CEVA Holdings LLC $ 679,907
------------------------------------------------------------------------------------------------------
Airlines -- 0.0%+
960 Delta Air Lines, Inc. $ 27,821
---------------
Total Transportation $ 707,728
------------------------------------------------------------------------------------------------------
UTILITIES -- 0.0%+
Independent Power Producers &
Energy Traders -- 0.0%+
775 NRG Energy, Inc. $ 20,507
---------------
Total Utilities $ 20,507
------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $6,165,877) $ 15,249,712
------------------------------------------------------------------------------------------------------
LIQUIDATING TRUSTS -- 0.0%
of Net Assets
CONSUMER SERVICES -- 0.0%
Hotels, Resorts & Cruise Lines -- 0.0%
3,377,886(e)(h)(i) Yellowstone Mountain Club LLC,
Liquidating Trust $ --
---------------
Total Consumer Services $ --
------------------------------------------------------------------------------------------------------
ENERGY -- 0.0%
Oil & Gas Exploration & Production -- 0.0%
4,995,000(e)(h)(i) Crusader Energy Group, Inc., Liquidating Trust $ --
---------------
Total Energy $ --
------------------------------------------------------------------------------------------------------
TOTAL LIQUIDATING TRUSTS
(Cost $0) $ --
------------------------------------------------------------------------------------------------------
RIGHT/WARRANT -- 2.1% of Net Assets
MEDIA -- 2.1%
Broadcasting -- 2.1%
665(h) New Young Broadcasting Holding Co., Inc.,
Expires 12/24/24 $ 6,891,063
---------------
Total Media $ 6,891,063
------------------------------------------------------------------------------------------------------
TOTAL RIGHT/WARRANT
(Cost $1,307,997) $ 6,891,063
------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 145.2%
(Cost -- $469,564,053) (j) $ 469,063,586
------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 11.3% $ 36,538,619
------------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION
VALUE, INCLUDING DIVIDENDS
PAYABLE -- (56.5)% $ (182,474,775)
------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHAREOWNERS -- 100.0% $ 323,127,430
======================================================================================================
The accompanying notes are an integral part of these financial statements.
36 Pioneer Floating Rate Trust | Annual Report | 11/30/13
+ Amount rounds to less than 0.1%.
NR Security not rated by S&P or Moody's.
(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, 2013, the value of these securities amounted to
$13,359,283, or 4.1% 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, 2013.
(a) Security is in default and is non income producing.
(b) Indicates a security that has been deemed illiquid. As of November 30,
2013 the aggregate cost of illiquid securities in the Trust's portfolio
was $19,226,681. As of that date, the aggregate value of illiquid
securities in the Trust's portfolio of $8,716,543 represented 2.7% of
total net assets applicable to common shareowners.
(c) Floating rate note. The rate shown is the coupon rate at November 30,
2013.
(d) The company and agent bank are in the process of negotiating
forbearance.
(e) Security is valued using fair value methods (other than prices supplied
by independent pricing services). See Notes to Financial Statements --
Note 1A.
(f) Payment in Kind (PIK) security which may pay interest in the form of
additional principal amount.
(g) Security represents a claim which is subject to bankruptcy court
findings which may result in an exchange of money, assets or equity.
(h) Non-income producing.
(i) Security represents a liquidating trust which is a vehicle which through
future settlements of bankruptcy claims are dispersed to creditors.
(j) At November 30, 2013, the net unrealized appreciation on investments
based on cost for federal tax purposes of $469,894,762 was as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 21,397,521
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (22,228,697)
------------
Net unrealized depreciation $ (831,176)
============
For financial reporting purposes net unrealized depreciation on investments was
$500,467 and cost of investments aggregated $469,564,053.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended November 30, 2013 aggregated $308,993,120 and $321,972,298,
respectively.
Principal amounts are denominated in U.S. dollars unless otherwise noted.
GBP -- Great British Pound
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 37
Schedule of Investments | 11/30/13 (continued)
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) as
level 3. See Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of November 30, 2013, in
valuing the Trust's investments.
---------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------
Asset Backed Security $ -- $ 152,508 $ -- $ 152,508
Collateralized Loan Obligations
Diversified Banks -- -- 2,727,554 2,727,554
Thrifts & Mortgage Finance -- -- 5,625,880 5,625,880
Senior Secured Floating Rate
Loan Interests -- 426,306,428 -- 426,306,428
Claims
Airlines -- -- --* --*
Corporate Bonds & Notes
Health Care Supplies -- -- 8,109 8,109
All Other -- 12,102,332 -- 12,102,332
Common Stocks
Air Freight & Logistics -- 679,907 -- 679,907
Broadcasting -- 2,538,812 -- 2,538,812
Apparel Retail -- --* -- --*
All Other 12,030,993 -- -- 12,030,993
Liquidating Trusts
Oil & Gas Exploration
& Production -- -- --* --*
Hotels, Resorts & Cruise Lines -- -- --* --*
Right/Warrant
Broadcasting -- 6,891,063 -- 6,891,063
---------------------------------------------------------------------------------------------
Total Investments in Securities $ 12,030,993 $448,671,050 $ 8,361,543 $469,063,586
=============================================================================================
Other Financial Instruments
Forward Foreign
Currency Contracts $ -- $ (11,532) $ -- $ (11,532)
---------------------------------------------------------------------------------------------
Total Other Financial Instruments $ -- $ (11,532) $ -- $ (11,532)
=============================================================================================
* Securities in this category are valued at $0.
During the year ended November 30, 2013, there were no transfers between 1, 2
and 3.
The accompanying notes are an integral part of these financial statements.
38 Pioneer Floating Rate Trust | Annual Report | 11/30/13
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
11/30/12 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* Level 3* 11/30/13
------------------------------------------------------------------------------------------------------------------------------------
Collateralized Loan
Obligations
Diversified Banks $ 2,375,695 $ -- $ 210,402 $ -- $ -- $ 141,457 $ -- $ -- $2,727,554
Thrifts & Mortgage
Finance 4,984,230 -- 405,671 -- -- 235,979 -- -- 5,625,880
Claims
Airlines --** -- -- -- -- -- -- -- --
Corporate Bonds
& Notes
Health Care
Supplies 5,707,340 8,102 (4,050,196) -- (1,665,960) 8,823 -- -- 8,109
Liquidating Trusts
Oil & Gas
Exploration
& Production --** -- -- -- -- -- -- -- --
Hotels, Resorts
& Cruise Lines --** -- -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total $13,067,265 $ 8,102 $ (3,434,123) $ -- $(1,665,960) $ 386,259 $ -- $ -- $8,361,543
====================================================================================================================================
* Transfers are calculated on the beginning of period values.
** Includes securities that are fair valued at $0.
(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 gain (loss) from investments in the Statement of
Operations.
Net change in unrealized appreciation of Level 3 investments still held and
considered Level 3 at 11/30/13: $(3,434,123).
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 39
Schedule of Investments | 11/30/13 (continued)
The following table presents additional information about valuation techniques
and inputs used for investments that were measured at fair value and
categorized as Level 3 at November 30, 2013:
--------------------------------------------------------------------------------------------------------
Fair Value Valuation Unobservable Value/Range
11/30/13 Technique(s) Input (Weighted Average)
--------------------------------------------------------------------------------------------------------
Collateralized Loan Proprietary $90.77-$97.38
Obligations $8,353,434 Broker Quote Broker Model per bond
Corporate Bonds Proprietary $0.125
& Notes $ 8,109 Broker Quote Broker Model per bond
Liquidating Trusts (1) Discounted
-- Cash Flow Residual Value 0
Discounted
Claims (2) -- Cash Flow Residual Value 0
========================================================================================================
(1) The significant unobservable input used in the fair value measurement of
liquidating trusts is the projected cash flow. Significant increases
(decreases) in this input would result in a significantly higher (lower)
fair value measurement.
(2) The significant unobservable input used in the fair value measurement of
claims is the projected cash flow. Significant increases (decreases) in this
input would result in a significantly higher (lower) fair value measurement.
The accompanying notes are an integral part of these financial statements.
40 Pioneer Floating Rate Trust | Annual Report | 11/30/13
Statement of Assets and Liabilities | 11/30/13
ASSETS:
Investments in securities, at value (cost $469,564,053) $ 469,063,586
Cash 35,560,790
Foreign currencies, at value(cost $1,876) 1,906
Receivables --
Investment securities sold 2,822,154
Interest receivable 2,615,654
Dividends receivable 67,051
Prepaid expenses 7,654
----------------------------------------------------------------------------------------
Total assets $ 510,138,795
----------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 3,942,087
Due to affiliates 281,320
Administration fee payable 79,355
Net unrealized depreciation on forward foreign currency contracts 11,532
Accrued expenses 219,680
Other liabilities 2,616
----------------------------------------------------------------------------------------
Total liabilities $ 4,536,590
----------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 7,298
shares, including dividends payable of $24,775 $ 182,474,775
----------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $ 465,543,677
Undistributed net investment income 2,153,800
Accumulated net realized loss on investment and foreign
currency transactions (144,061,522)
Net unrealized depreciation on investments (500,467)
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (8,058)
----------------------------------------------------------------------------------------
Net assets applicable to common shareowners $ 323,127,430
----------------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $323,127,430/24,738,174 common shares $ 13.06
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 41
Statement of Operations
For the Year Ended 11/30/13
INVESTMENT INCOME:
Interest $ 28,581,043
Dividends 134,565
Facility and other fees 1,160,595
-----------------------------------------------------------------------------------------
Total Investment income $ 29,876,203
-----------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 3,556,664
Administrative reimbursements 239,851
Transfer agent fees and expenses 37,772
Shareholder communications expense 11,192
Auction agent fees 462,535
Custodian fees 63,384
Registration fees 82
Professional fees 127,294
Printing expenses 19,148
Trustees' fees 14,279
Pricing fees 10,005
Miscellaneous 249,074
-----------------------------------------------------------------------------------------
Total expenses $ 4,791,280
-----------------------------------------------------------------------------------------
Net investment income $ 25,084,923
-----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
UNFUNDED LOAN COMMITMENT, AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized loss on:
Investments $ (6,744,655)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (37,153) $ (6,781,808)
-----------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 7,016,535
Unfunded loan commitments (6,431)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (8,920) $ 7,001,184
-----------------------------------------------------------------------------------------
Net gain on investments $ 219,376
-----------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM
NET INVESTMENT INCOME: $ (3,072,469)
-----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 22,231,830
=========================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer Floating Rate Trust | Annual Report | 11/30/13
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------
Year Ended Year Ended
11/30/13 11/30/12
-------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 25,084,923 $ 29,253,889
Net realized loss on investments and foreign
currency transactions (6,781,808) (21,587,943)
Change in unrealized appreciation (depreciation) on
investments and foreign currency transactions 7,001,184 35,297,779
Distributions to preferred shareowners from net
investment income (3,072,469) (2,841,944)
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 22,231,830 $ 40,121,781
-------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income
($0.90 and $1.01 per share, respectively) $ (22,254,278) $ (25,046,607)
-------------------------------------------------------------------------------------------
Total distributions to common shareowners $ (22,254,278) $ (25,046,607)
-------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 435,737 $ 816,896
-------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners from Trust share transactions $ 435,737 $ 816,896
-------------------------------------------------------------------------------------------
Net increase in net assets applicable to
common shareowners $ 413,289 $ 413,289
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of year 322,714,141 306,822,071
-------------------------------------------------------------------------------------------
End of year $ 323,127,430 $ 322,714,141
-------------------------------------------------------------------------------------------
Undistributed net investment income $ 2,153,800 $ 5,462,051
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 43
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/13 11/30/12 11/30/11 11/30/10 11/30/09
--------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 13.06 $ 12.45 $ 12.52 $ 11.40 $ 8.62
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 1.01 $ 1.19 $ 1.28 $ 1.17 $ 1.13
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 0.01 0.55 (0.30) 0.94 2.94
Distributions to preferred shareowners from:
Net investment income (0.12) (0.12) (0.11) (0.11) (0.12)
--------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.90 $ 1.62 $ 0.87 $ 2.00 $ 3.95
--------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income (0.90) (1.01) (0.94) (0.88) (1.12)
Tax return of capital -- -- -- -- (0.05)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.00 $ 0.61 $ (0.07) $ 1.12 $ 2.78
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period(b) $ 13.06 $ 13.06 $ 12.45 $ 12.52 $ 11.40
--------------------------------------------------------------------------------------------------------------------------
Market value, end of period(b) $ 12.41 $ 13.41 $ 12.55 $ 13.16 $ 11.54
==========================================================================================================================
Total return at market value(c) (0.84)% 15.66% 2.60% 22.63% 91.01%
Ratios to average net assets of common shareowners:
Net expenses(d) 1.47% 1.58% 1.67% 1.74% 2.03%
Net investment income before preferred share distributions 7.70% 9.24% 9.96% 9.66% 11.79%
Preferred share distributions 0.94% 0.90% 0.85% 0.94% 1.26%
Net investment income available to common shareowners 6.76% 8.34% 9.11% 8.72% 10.53%
Portfolio turnover 63% 63% 42% 40% 32%
Net assets of common shareowners, end of period (in thousands) $323,127 $322,714 $306,822 $307,137 $278,565
The accompanying notes are an integral part of these financial statements.
44 Pioneer Floating Rate Trust | Annual Report | 11/30/13
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/13 11/30/12 11/30/11 11/30/10 11/30/09
---------------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) $182,450 $182,450 $182,450 $182,450 $182,450
Asset coverage per preferred share, end of period $ 69,280 $ 69,222 $ 67,047 $ 69,090 $ 63,175
Average market value per preferred share(e) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per preferred share $ 25,003 $ 25,003 $ 25,005 $ 25,005 $ 25,005
Ratios to average net assets of common shareowners before
waivers and reimbursement of expenses
Net expenses(d) 1.47% 1.58% 1.67% 1.74% 2.03%
Net investment income before preferred share distributions 7.70% 9.24% 9.96% 9.66% 11.79%
Preferred share distributions 0.94% 0.90% 0.85% 0.94% 1.26%
Net investment income available to common shareowners 6.76% 8.32% 9.11% 8.72% 10.53%
===========================================================================================================================
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) 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.
(c) 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.
(d) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(e) Market value is redemption value without an active market.
The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for the Trust's common shares.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 45
Notes to Financial Statements | 11/30/13
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 non-diversified, 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
year. 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 with remaining
maturities of more than sixty days 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 which sale prices are not available, generally
are valued using the mean between the last bid and
46 Pioneer Floating Rate Trust | Annual Report | 11/30/13
asked prices. Short-term fixed income securities with remaining maturities
of sixty days or less generally are valued at amortized cost. 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 loan 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 Fund's investment adviser, pursuant to
procedures adopted by the Fund's Board of Trustees. PIM's fair valuation
team uses fair value methods approved by the Valuation Committee of the
Board of Trustees. PIM's 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, 2013, 10 securities were valued using fair value
methods (other than securities valued using prices supplied by independent
pricing services) representing 0.0% of net assets applicable to common
shareowners. The value of these fair valued securities is $0.
Discounts and premiums on 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.
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.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 47
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.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. 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 prices of those securities but are
included with the net realized and unrealized gain or loss on investments.
C. 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 gains or losses 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).
D. 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, 2013, the Trust did not accrue any interest and penalties with
respect to uncertain tax positions, which if applicable, would be recorded
as 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.
48 Pioneer Floating Rate Trust | Annual Report | 11/30/13
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences. At
November 30, 2013, the Fund reclassified $3,066,427 to decrease
undistributed net investment income, $3,066,427 to decrease net realized
loss on investments to reflect permanent book/tax differences. These
adjustments have no impact on the net assets or results of operations.
At November 30, 2013, the Trust was permitted to carry forward $6,824 of
short term and $23,452,319 of long term capital losses without limitation.
Additionally, at November 30, 2013, the Trust had a net capital 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, 2013 and November 30, 2012 was as follows:
----------------------------------------------------------------------------
2013 2012
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $25,326,747 $27,888,551
----------------------------------------------------------------------------
Total $25,326,747 $27,888,551
============================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at November 30, 2013:
----------------------------------------------------------------------------
2013
----------------------------------------------------------------------------
Distributable Earnings:
Undistributed ordinary income $ 2,497,752
Capital loss carryforward (144,061,522)
Other book/tax temporary differences (343,952)
Unrealized depreciation (508,525)
----------------------------------------------------------------------------
Total $(142,416,247)
============================================================================
The difference between book-basis and tax-basis unrealized depreciation is
primarily attributable to the realization for tax purposes of unrealized
gains on investments in passive foreign investment companies, the book/tax
differences in the accrual of income on securities in default, the
difference between book and tax amortization methods for premiums and
discounts on fixed income securities and other temporary book/tax
differences.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 49
E. 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 non-occurrence 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.
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
50 Pioneer Floating Rate Trust | Annual Report | 11/30/13
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.
F. 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.
G. 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.
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
Pioneer Floating Rate Trust | Annual Report | 11/30/13 51
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, 2013, the net management
fee was 0.70% of the Trust's average daily managed assets, which was equivalent
to 1.09% of the Trust's average daily net assets.
In addition, under PIM's management and administration agreements, certain other
services and costs are paid by PIM and reimbursed by the Trust. At November 30,
2013, $360,675 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.
52 Pioneer Floating Rate Trust | Annual Report | 11/30/13
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 phone 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, 2013, the Trust
expenses were not reduced under such arrangement.
5. Forward Foreign Currency Contracts
At November 30, 2013, 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, 2013 was $191,977.
As of November 30, 2013, outstanding forward foreign currency contracts were as
follows:
-----------------------------------------------------------------------------------------
Contracts In Net
to Receive/ Exchange Settlement Unrealized
Currency (Deliver) for US$ Date Value Depreciation
-----------------------------------------------------------------------------------------
GBP
(Pound Sterling) (395,876) $(635,961) 2/6/14 $(647,493) $(11,532)
=========================================================================================
6. Unfunded Loan Commitments
As of November 30, 2013, the Trust had no unfunded or bridge loan commitments.
7. 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, 2013 and November 30, 2012 were as follows:
------------------------------------------------------------------------------
11/30/13 11/30/12
------------------------------------------------------------------------------
Shares outstanding at beginning of year 24,705,145 24,640,650
Reinvestment of distributions 33,029 64,495
------------------------------------------------------------------------------
Shares outstanding at end of year 24,738,174 24,705,145
==============================================================================
The Trust may classify or reclassify any unissued common shares of beneficial
interest into one or more series of preferred shares of beneficial interest. As
of November 30, 2013, there were 7,298 AMPS as follows: Series M7-2,434, Series
W7,-2,432 and Series TH7-2,432.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 53
The Trust redeemed all outstanding Series M7 AMPS on December 3, 2013, all
outstanding Series W7 AMPS on December 5, 2013 and all outstanding Series TH7
AMPS on December 6, 2013. See Note 9 for additional information.
As of November 30, 2013, 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 125% of the one week LIBOR rate or the LIBOR rate plus
a spread of 1.25%. Dividend rates on AMPS ranged from 1.627% to 1.700% during
the year ended November 30, 2013.
The AMPS were redeemable at the option of the Trust, in whole or in part, on any
dividend payment date at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared. The AMPS were also subject to mandatory
redemption at $25,000 per share plus any accumulated or unpaid dividends,
whether or not declared, if certain requirements relating to the composition of
the assets and liabilities of the Trust as set forth in the Statement of
Preferences were not satisfied.
The holders of AMPS had voting rights equal to the holders of the Trust's
common shares (one vote per share) and voted together with holders of the
common shares as a single class. Holders of AMPS were also entitled to elect two
of the Trust's Trustees. In addition, the Investment Company Act of 1940, as
amended, required that along with approval by shareowners that might otherwise
be required, the approval of the holders of a majority of any outstanding
preferred shares, voting separately as a class, were required to (a) adopt
any plan of reorganization that would adversely affect the preferred shares and
(b) take any action requiring a vote of security holders, including, among other
things, changes in the Trust's subclassification as a closed-end management
investment company or changes in its fundamental investment restrictions.
54 Pioneer Floating Rate Trust | Annual Report | 11/30/13
8. Additional Disclosures about Derivative Instruments and Hedging Activities
Values of derivative instruments as of November 30, 2013 were as follows:
----------------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives 2013 Liabilities Derivatives 2013
Hedging Instruments -------------------------------------------------------------------------
Under Accounting Statement of Statement of
Standards Codification Assets and Liabilities Assets and Liabilities
(ASC) 815 Location Value Location Value
----------------------------------------------------------------------------------------------------
Forward foreign Net unrealized Net unrealized
currency contracts appreciation on depreciation on forward
forward foreign foreign currency contracts
currency contracts $ -- $(11,532)
----------------------------------------------------------------------------------------------------
Total $(11,532)
====================================================================================================
The effect of derivative instruments on the Statement of Operations for the year
ended November 30, 2013 was as follows:
-----------------------------------------------------------------------------------------------------
Change in
Unrealized
Derivatives Not Appreciation
Accounted for as Realized or
Hedging Instruments Gain or (Loss) (Depreciation)
Under Accounting on Derivatives on Derivatives
Codification Location of Gain or (Loss) on Recognized Recognized
(ASC) 815 Derivatives Recognized in Income in Income in Income
-----------------------------------------------------------------------------------------------------
Forward foreign Net realized gain (loss) on forward $(16,000)
currency contracts foreign currency contracts and other
assets and liabilities denominated
in foreign currencies
Forward foreign Change in net unrealized appreciation $(11,532)
currency contracts (depreciation) on forward foreign
currency contracts and other assets
and liabilities denominated in
foreign currencies
9. Subsequent Events
The Trust redeemed all of its outstanding auction market preferred shares
("AMPS") at the liquidation preference per share (sometimes referred to as "at
par"), together with accrued and unpaid dividends, if any, as of the redemption
date, as follows:
-----------------------------------------------------------------------------------
Liquidation Accrual and 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 $ --
Pioneer Floating Rate Trust | Annual Report | 11/30/13 55
The Trust continues to employ financial leverage for investment purposes through
a new Revolving Credit Facility with the Bank of Nova Scotia in the amount of
$160,000,000. As of December 6, 2013, 48.7% of the Trust's total managed assets
were financed by leverage through the Revolving Credit Facility compared with
36.1% of assets as of November 30, 2013. At this time, the refinancing is not
expected to affect the Trust's monthly distribution rate per common share.
The Board of Trustees of the Trust declared on December, 3, 2013 a dividend from
undistributed net investment income of $0.075 per common share payable December
19, 2013, to shareowners of record on December 3, 2013.
Additionally on December 3, 2013, the Board of Trustees of the Trust declared a
dividend from an undistributed net investment income of $0.023 per common share
payable December 30, 2013 to shareowners of record on December 18, 2013.
Subsequent to November 30, 2013, dividends declared and paid on preferred shares
totaled $30,301 in aggregate for the outstanding preferred share series through
January 14, 2013.
56 Pioneer Floating Rate Trust | Annual Report | 11/30/13
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 of Pioneer
Floating Rate Trust (the "Trust"), including the schedule of investments, as of
November 30, 2013, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Trust's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Trust's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of November 30, 2013, by correspondence with the custodian,
brokers, and agent banks or by other appropriate auditing procedures where
replies from brokers and agent banks were not received. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Floating Rate Trust at November 30, 2013, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the five
years in the period then ended, in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
January 24, 2014
Pioneer Floating Rate Trust | Annual Report | 11/30/13 57
ADDITIONAL INFORMATION (unaudited)
During the year, 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 year, 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.
Results of Shareholder Meeting (unaudited)
At the annual meeting of shareowners held on September 24, 2013, shareowners of
Pioneer Municipal High Income Trust were asked to consider the proposal
described below. A report of the total votes cast by the Trust's shareholders
follows:
Proposal 1 -- To elect Class I Trustees.
--------------------------------------------------------------------------------
Nominee For Withheld
--------------------------------------------------------------------------------
Daniel K. Kingsbury 22,026,035.000 747,686.000
David R. Bock* 5,404.000 341.000
* Elected by preferred shares only.
58 Pioneer Floating Rate Trust | Annual Report | 11/30/13
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 March 2013 as the Trustees of the Trust
agreed on, among other things, an overall approach and timeline for the process.
In July 2013, the Trustees approved the format of the contract review materials
and submitted their formal request to PIM to furnish information necessary to
evaluate the terms of the investment advisory agreement. The contract review
materials were provided to the Trustees in July 2013 and September 2013. After
reviewing and discussing the materials, the Trustees submitted a request for
additional information to PIM, and materials were provided in response to this
request. Meetings of the Independent Trustees of the Trust were held in July,
September, and November, 2013 to review and discuss the contract review
materials. In addition, the Trustees took into account the information related
to the Trust provided to the Trustees at each regularly scheduled meeting.
At a meeting held on November 12, 2013, 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
disclosure, first quintile is most favorable to the Trust's shareowners. Thus,
highest relative performance would be first quintile and lowest relative
expenses would also be first quintile. 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
Pioneer Floating Rate Trust | Annual Report | 11/30/13 59
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
The Trustees review the Trust's performance on a regular basis, based on
analysis and data prepared by PIM for this purpose and discuss performance
issues with PIM on an ongoing basis. For purposes of their contract renewal
deliberations, the Trustees considered the performance results of the Trust over
various time periods. They reviewed information comparing the Trust's
performance with the performance of its peer group of funds as classified by
Morningstar, Inc. (Morningstar), an independent provider of investment company
data, and with the performance of the Trust's benchmark index. The Trustees
considered that the Trust's annualized total return was in the second quintile
of its Morningstar category for the one year period ended June 30, 2013, in the
first quintile of its Morningstar category for the three year period ended June
30, 2013, and in the fourth quintile of its Morningstar category for the five
year period ended June 30, 2013. The Trustees also considered that the Trust's
yield (for the twelve months ended June 30, 2013) exceeded the yield of the
Trust's benchmark index for the same period. The Trustees also reviewed data
provided by PIM showing how leverage had benefited the Trust's common
shareholders. The Trustees noted the discussions held throughout the year
regarding the Trust's performance and confirmed that those discussions were
factored into the Trustees' deliberations concerning the renewal of the advisory
agreement. The Trustees indicated that they were satisfied with the discussions
with PIM with respect to the Trust's performance.
60 Pioneer Floating Rate Trust | Annual Report | 11/30/13
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, 2013 was in the second quintile
relative to the management fees paid by other funds in its Strategic Insight
peer group for the comparable period. The Trustees also considered that the
Trust's expense ratio (based on managed assets) for the twelve months ended June
30, 2013 was in the first quintile relative to its Strategic Insight peer group
for the comparable period.
The Trustees reviewed management fees charged by PIM and PIM's affiliate,
Pioneer Institutional Asset Management, Inc. (together with PIM, "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.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 61
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. The Trustees
considered the intangible benefits to PIM by virtue of its relationship with the
Trust and the other Pioneer funds. The Trustees concluded that the receipt of
these benefits was reasonable in the context of the overall relationship between
PIM and the Trust.
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.
62 Pioneer Floating Rate Trust | Annual Report | 11/30/13
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy voting policies and procedures of the Funds are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Funds voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to share-
owners 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 on the following pages, 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 54 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 | 11/30/13 63
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 (63) Class III Trustee Chairman (2008 - present) and Chief Executive Director, Broadridge
Chairman of the Board and since 2006. Term Officer (2008 - 2012), Quadriserv, Inc. Financial Solutions, Inc.
Trustee expires in 2015. (technology products for securities lending (investor communications and
industry) (2008 - present); private investor securities processing
(2004 - 2008); and Senior Executive Vice provider for financial
President, The Bank of New York (financial and services industry) (2009 -
securities services) (1986 - 2004) present); Director,
Quadriserv, Inc. (2005 -
present); and Commissioner,
New Jersey State Civil
Service Commission (2011 -
present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (69) Class I Trustee Managing Partner, Federal City Capital Advisors Director of Enterprise
Trustee since 2005. Term (corporate advisory services company) (1997 - Community Investment, Inc.
expires 2016. 2004 and 2008 - present); Interim Chief (privately-held affordable
Executive Officer, Oxford Analytica, Inc. housing finance company) (1985
(privately held research and consulting company) - 2010); Director of Oxford
(2010); Executive Vice President and Chief Analytica, Inc. (2008 -
Financial Officer, I-trax, Inc. (publicly traded present); Director of The
health care services company) (2004 - 2007); and Swiss Helvetia Fund, Inc.
Executive Vice President and Chief Financial (closed-end fund) (2010 -
Officer, Pedestal Inc. (internet-based mortgage present); and Director of New
trading company) (2000 - 2002) York Mortgage Trust (publicly
traded mortgage REIT) (2004 -
2009, 2012 - present)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (69) Class II Trustee William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee since 2008. Term Economy, Harvard University (1972 - present) Funds Investment Trust and
expires in 2014. Mellon Institutional Funds
Master Portfolio (oversaw 17
portfolios in fund complex)
(1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
64 Pioneer Floating Rate Trust | Annual Report | 11/30/13
------------------------------------------------------------------------------------------------------------------------------------
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 (66) Class II Trustee Founding Director, Vice President and Corporate None
Trustee since 2003. Term Secretary, The Winthrop Group, Inc. (consulting
expires in 2014. 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)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (65) Class III Trustee President and Chief Executive Officer, Newbury, Director of New America High
Trustee since 2003. Term Piret & Company, Inc. (investment banking firm) Income Fund, Inc. (closed-end
expires in 2015. (1981 - present) investment company) (2004 -
present); and member, Board
of Governors, Investment
Company Institute (2000 -
2006)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Floating Rate Trust | Annual Report | 11/30/13 65
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (55)*,+ Class II Trustee Director, CEO and President of PIM-USA (since None
Trustee and Executive from 2007-2013. February 2007); Director and President of Pioneer
Vice President Class III Trustee and Pioneer Institutional Asset Management, Inc.
since 2013. Term (since February 2007); Executive Vice President of
expires in 2016. all of the Pioneer Funds (since March 2007);
Director of PGAM (2007 - 2010); Head of New Europe
Division, PGAM (2000 - 2005); Head of New Markets
Division, PGAM (2005 - 2007)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Kingsbury is an Interested Trustee because he is an officer or director
of the Trust's investment adviser and certain of its affiliates.
+ Mr. Kingsbury became President and Chief Executive Officer of the Trust
effective January 1, 2014.
66 Pioneer Floating Rate Trust | Annual Report | 11/30/13
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Trust Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (87)++ Since 2003. Serves President of all the Pioneer Funds; Non-Executive None
President and Chief at the discretion of Chairman and a director of Pioneer Investment
Executive Officer of the the Board. Management USA Inc. ("PIM-USA") (until November
Trust*** 2013); Chairman and a director of Pioneer; Chairman
and Director of Pioneer Institutional Asset
Management, Inc. (until November 2013); Director of
Pioneer Alternative Investment Management Limited
(Dublin) (until October 2011); President and a
director of Pioneer Alternative Investment
Management (Bermuda) Limited and affiliated funds
(until November 2013); Deputy Chairman and a
director of Pioneer Global Asset Management S.p.A.
("PGAM") (until April 2010); Director of Nano-C,
Inc. (since 2003); Director of Cole Management Inc.
(2004 - 2011); Director of Fiduciary Counseling,
Inc. (until December 2011); Trustee of all of the
Pioneer Funds (until November 2013); and Retired
Partner, Wilmer Cutler Pickering Hale and Dorr LLP
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (48) Since 2003. Serves Vice President and Associate General Counsel of None
Secretary at the discretion of Pioneer since January 2008 and Secretary of all of
the Board. the Pioneer Funds since June 2010; Assistant
Secretary 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 (52) Since 2010. Serves Fund Governance Director of Pioneer since December None
Assistant Secretary at the discretion of 2006 and Assistant Secretary of all the Pioneer
the Board. Funds since June 2010; Manager - Fund Governance of
Pioneer from December 2003 to November 2006; and
Senior Paralegal of Pioneer from January 2000 to
November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (50) Since 2010. Serves Counsel of Pioneer since June 2007 and Assistant None
Assistant Secretary at the discretion of Secretary of all the Pioneer Funds since June 2010;
the Board. and Vice President and Counsel at State Street Bank
from October 2004 to June 2007
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (53) Since 2008. Serves Vice President - Fund Treasury of Pioneer; None
Treasurer and Chief at the discretion of Treasurer of all of the Pioneer Funds since March
Financial and Accounting the Board. 2008; Deputy Treasurer of Pioneer from March 2004
Officer of the Trust to February 2008; and Assistant Treasurer of all of
the Pioneer Funds from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
++ Mr. Cogan resigned as a Trustee of the Trust effective September 24, 2013.
*** Mr. Cogan resigned as President and Chief Executive Officer of the Trust
effective January 1, 2014.
Pioneer Floating Rate Trust | Annual Report | 11/30/13 67
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Trust Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (48) Since 2003. Serves Assistant Vice President - Fund Treasury of None
Assistant Treasurer at the discretion of Pioneer; and Assistant Treasurer of all of the
the Board. Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (55) Since 2003. Serves Fund Accounting Manager - Fund Treasury of Pioneer; None
Assistant Treasurer at the discretion of and Assistant Treasurer of all of the Pioneer Funds
the Board.
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (33) Since 2009. Serves Fund Administration Manager - Fund Treasury of None
Assistant Treasurer at the discretion of Pioneer since November 2008; Assistant Treasurer of
the Board. 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 (61) Since 2010. Serves Chief Compliance Officer of Pioneer and of all the None
Chief Compliance Officer at the discretion of Pioneer Funds since March 2010; Director of Adviser
the Board. 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 (42) Since 2006. Serves Director--Transfer Agency Compliance of Pioneer and None
Anti-Money Laundering at the discretion of Anti-Money Laundering Officer of all the Pioneer
Officer the Board. Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
68 Pioneer Floating Rate Trust | Annual Report | 11/30/13
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) 2014 Pioneer Investments 19447-07-0114
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.
Pioneer Floating Rate Trust:
Fees for audit services provided to the Fund, including
fees associated with the filings of its Form N-1A,
totaled approximately $59,120 in 2013 and
approximately $64,476 in 2012.
(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.
Pioneer Floating Rate Trust:
Audit-Related Fees
Audit related fees for the Fund's audit related
services totaled approximately $9,650 and $9,652
in 2013 and 2012, respectively.
(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.
Pioneer Floating Rate Trust:
Fees for tax compliance services, primarily for tax
returns, totaled $8,131 in 2013 and $8,290 in 2012.
(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.
Pioneer Floating Rate Trust:
Other Fees
Audit related fees for the Fund's audit related
services totaled approximately $9,650 and $9,652
in 2013 and 2012, respectively.
(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 Fund'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 Fund. For the
years ended November 30, 2013 and 2012, there were
no services provided to an affiliate that required the
Fund'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 Fund and
affiliates, as previously defined, totaled approximately
$17,781 in 2013 and $17,942 in 2012.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Proxy Voting Policies and Procedures of
Pioneer Investment Management, Inc.
VERSION DATED July, 2004
Overview
Pioneer Investment Management, Inc. ("Pioneer") is a fiduciary that owes
each of its client's duties of care and loyalty with respect to all
services undertaken on the client's behalf, including proxy voting. When
Pioneer has been delegated proxy-voting authority for a client, the duty of
care requires Pioneer to monitor corporate events and to vote the proxies.
To satisfy its duty of loyalty, Pioneer must place its client's interests
ahead of its own and must cast proxy votes in a manner consistent with the
best interest of its clients. Pioneer will vote all proxies presented in a
timely manner.
The Proxy Voting Policies and Procedures are designed to complement
Pioneer's investment policies and procedures regarding its general
responsibility to monitor the performance and/or corporate events of
companies that are issuers of securities held in accounts managed by
Pioneer. Pioneer's Proxy Voting Policies summarize Pioneer's position on a
number of issues solicited by companies held by Pioneer's clients. The
policies are guidelines that provide a general indication on how Pioneer
would vote but do not include all potential voting scenarios.
Pioneer's Proxy Voting Procedures detail monitoring of voting, exception
votes, and review of conflicts of interest and ensure that case-by-case
votes are handled within the context of the overall guidelines (i.e. best
interest of client). The overriding goal is that all proxies for US and
non-US companies that are received promptly will be voted in accordance
with Pioneer's policies or specific client instructions. All shares in a
company held by Pioneer-managed accounts will be voted alike, unless a
client has given us specific voting instructions on an issue or has not
delegated authority to us or the Proxy Voting Oversight Group determines
that the circumstances justify a different approach.
Pioneer does not delegate the authority to vote proxies relating to its
clients to any of its affiliates, which include other subsidiaries of
UniCredito.
Any questions about these policies and procedures should be directed to the
Proxy Coordinator.
1
Proxy Voting Procedures
Proxy Voting Service
Pioneer has engaged an independent proxy voting service to assist in the
voting of proxies. The proxy voting service works with custodians to ensure
that all proxy materials are received by the custodians and are processed
in a timely fashion. To the extent applicable, the proxy voting service
votes all proxies in accordance with the proxy voting policies established
by Pioneer. The proxy voting service will refer proxy questions to the
Proxy Coordinator (described below) for instructions under circumstances
where: (1) the application of the proxy voting guidelines is unclear; (2) a
particular proxy question is not covered by the guidelines; or (3) the
guidelines call for specific instructions on a case-by-case basis. The
proxy voting service is also requested to call to the Proxy Coordinator's
attention specific proxy questions that, while governed by a guideline,
appear to involve unusual or controversial issues. Pioneer reserves the
right to attend a meeting in person and may do so when it determines that
the company or the matters to be voted on at the meeting are strategically
important to its clients.
Proxy Coordinator
Pioneer's Director of Investment Operations (the "Proxy Coordinator")
coordinates the voting, procedures and reporting of proxies on behalf of
Pioneer's clients. The Proxy Coordinator will deal directly with the proxy
voting service and, in the case of proxy questions referred by the proxy
voting service, will solicit voting recommendations and instructions from
the Director of Portfolio Management US or, to the extent applicable,
investment sub-advisers. The Proxy Coordinator is responsible for ensuring
that these questions and referrals are responded to in a timely fashion and
for transmitting appropriate voting instructions to the proxy voting
service. The Proxy Coordinator is responsible for verifying with the
Compliance Department whether Pioneer's voting power is subject to any
limitations or guidelines issued by the client (or in the case of an
employee benefit plan, the plan's trustee or other fiduciaries).
Referral Items
From time to time, the proxy voting service will refer proxy questions to
the Proxy Coordinator that are described by Pioneer's policy as to be voted
on a case-by-case basis, that are not covered by Pioneer's guidelines or
where Pioneer's guidelines may be unclear with respect to the matter to be
voted on. Under such certain circumstances, the Proxy Coordinator will seek
a written voting recommendation from the Director of Portfolio Management
US. Any such recommendation will include: (i) the manner in which the
proxies should be voted; (ii) the rationale underlying any such decision;
and (iii) the disclosure of any contacts or communications made between
Pioneer and any outside parties concerning the proxy proposal prior to the
time that the voting instructions are provided. In addition, the Proxy
Coordinator will ask the Compliance Department to review the question for
any actual or apparent conflicts of interest as described below under
"Conflicts of
2
Interest." The Compliance Department will provide a "Conflicts of Interest
Report," applying the criteria set forth below under "Conflicts of
Interest," to the Proxy Coordinator summarizing the results of its review.
In the absence of a conflict of interest, the Proxy Coordinator will vote
in accordance with the recommendation of the Director of Portfolio
Management US.
If the matter presents a conflict of interest for Pioneer, then the Proxy
Coordinator will refer the matter to the Proxy Voting Oversight Group for a
decision. In general, when a conflict of interest is present, Pioneer will
vote according to the recommendation of the Director of Portfolio
Management US where such recommendation would go against Pioneer's interest
or where the conflict is deemed to be immaterial. Pioneer will vote
according to the recommendation of its proxy voting service when the
conflict is deemed to be material and the Pioneer's internal vote
recommendation would favor Pioneer's interest, unless a client specifically
requests Pioneer to do otherwise. When making the final determination as to
how to vote a proxy, the Proxy Voting Oversight Group will review the
report from the Director of Portfolio Management US and the Conflicts of
Interest Report issued by the Compliance Department.
Conflicts of Interest
A conflict of interest occurs when Pioneer's interests interfere, or appear
to interfere with the interests of Pioneer's clients. Occasionally, Pioneer
may have a conflict that can affect how its votes proxies. The conflict may
be actual or perceived and may exist when the matter to be voted on
concerns:
o An affiliate of Pioneer, such as another company belonging to
the UniCredito Italiano S.p.A. banking group (a "UniCredito
Affiliate");
o An issuer of a security for which Pioneer acts as a sponsor,
advisor, manager, custodian, distributor, underwriter, broker, or
other similar capacity (including those securities specifically
declared by PGAM to present a conflict of interest for Pioneer);
o An issuer of a security for which UniCredito has informed Pioneer
that a UniCredito Affiliate acts as a sponsor, advisor, manager,
custodian, distributor, underwriter, broker, or other similar
capacity; or
o A person with whom Pioneer (or any of its affiliates) has an
existing, material contract or business relationship that was not
entered into in the ordinary course of Pioneer's business.
o Pioneer will abstain from voting with respect to companies
directly or indirectly owned by UniCredito Italiano Group, unless
otherwise directed by a client. In addition, Pioneer will inform
PGAM Global Compliance and the PGAM Independent Directors before
exercising such rights.
Any associate involved in the proxy voting process with knowledge of any
apparent or actual conflict of interest must disclose such conflict to the
Proxy Coordinator and the Compliance Department. The Compliance Department
will review each item referred to Pioneer to determine whether an actual or
potential conflict of interest with Pioneer exists in connection with the
proposal(s) to be voted upon. The review will be conducted by comparing the
apparent parties affected by the proxy proposal being
3
voted upon against the Compliance Department's internal list of interested
persons and, for any matches found, evaluating the anticipated magnitude
and possible probability of any conflict of interest being present. For
each referral item, the determination regarding the presence or absence of
any actual or potential conflict of interest will be documented in a
Conflicts of Interest Report to the Proxy Coordinator.
Securities Lending
In conjunction with industry standards Proxies are not available to be
voted when the shares are out on loan through either Pioneer's lending
program or a client's managed security lending program. However, Pioneer
will reserve the right to recall lent securities so that they may be voted
according to the Pioneer's instructions. If a portfolio manager would like
to vote a block of previously lent shares, the Proxy Coordinator will work
with the portfolio manager and Investment Operations to recall the
security, to the extent possible, to facilitate the vote on the entire
block of shares.
Share-Blocking
"Share-blocking" is a market practice whereby shares are sent to a
custodian (which may be different than the account custodian) for record
keeping and voting at the general meeting. The shares are unavailable for
sale or delivery until the end of the blocking period (typically the day
after general meeting date).
Pioneer will vote in those countries with "share-blocking." In the event a
manager would like to sell a security with "share-blocking", the Proxy
Coordinator will work with the Portfolio Manager and Investment Operations
Department to recall the shares (as allowable within the market time-frame
and practices) and/or communicate with executing brokerage firm. A list of
countries with "share-blocking" is available from the Investment Operations
Department upon request.
Record Keeping
The Proxy Coordinator shall ensure that Pioneer's proxy voting service:
o Retains a copy of the proxy statement received (unless the proxy
statement is available from the SEC's Electronic Data Gathering,
Analysis, and Retrieval (EDGAR) system);
o Retains a record of the vote cast;
o Prepares Form N-PX for filing on behalf of each client that is a
registered investment company; and
o Is able to promptly provide Pioneer with a copy of the voting
record upon its request.
4
The Proxy Coordinator shall ensure that for those votes that may require
additional documentation (i.e. conflicts of interest, exception votes and
case-by-case votes) the following records are maintained:
o A record memorializing the basis for each referral vote cast;
o A copy of any document created by Pioneer that was material in
making the decision on how to vote the subject proxy; and
o A copy of any conflict notice, conflict consent or any other
written communication (including emails or other electronic
communications) to or from the client (or in the case of an
employee benefit plan, the plan's trustee or other fiduciaries)
regarding the subject proxy vote cast by, or the vote
recommendation of, Pioneer.
o Pioneer shall maintain the above records in the client's file for a
period not less than ten (10) years.
Disclosure
Pioneer shall take reasonable measures to inform its clients of the process
or procedures clients must follow to obtain information regarding how
Pioneer voted with respect to assets held in their accounts. In addition,
Pioneer shall describe to clients its proxy voting policies and procedures
and will furnish a copy of its proxy voting policies and procedures upon
request. This information may be provided to clients through Pioneer's Form
ADV (Part II) disclosure, by separate notice to the client, or through
Pioneer's website.
Proxy Voting Oversight Group
The members of the Proxy Voting Oversight Group are Pioneer's: Director of
Portfolio Management US, Head of Investment Operations, and Director of
Compliance. Other members of Pioneer will be invited to attend meetings and
otherwise participate as necessary. The Head of Investment Operations will
chair the Proxy Voting Oversight Group.
The Proxy Voting Oversight Group is responsible for developing, evaluating,
and changing (when necessary) Pioneer's Proxy Voting Policies and
Procedures. The group meets at least annually to evaluate and review these
policies and procedures and the services of its third-party proxy voting
service. In addition, the Proxy Voting Oversight Group will meet as
necessary to vote on referral items and address other business as
necessary.
Amendments
Pioneer may not amend its Proxy Voting Policies And Procedures without the
prior approval of the Proxy Voting Oversight Group and its corporate
parent, Pioneer Global Asset Management S.p.A
5
Proxy Voting Policies
Pioneer's sole concern in voting proxies is the economic effect of the
proposal on the value of portfolio holdings, considering both the short-
and long-term impact. In many instances, Pioneer believes that supporting
the company's strategy and voting "for" management's proposals builds
portfolio value. In other cases, however, proposals set forth by management
may have a negative effect on that value, while some shareholder proposals
may hold the best prospects for enhancing it. Pioneer monitors developments
in the proxy-voting arena and will revise this policy as needed.
All proxies that are received promptly will be voted in accordance with the
specific policies listed below. All shares in a company held by
Pioneer-managed accounts will be voted alike, unless a client has given us
specific voting instructions on an issue or has not delegated authority to
us. Proxy voting issues will be reviewed by Pioneer's Proxy Voting
Oversight Group, which consists of the Director of Portfolio Management US,
the Director of Investment Operations (the Proxy Coordinator), and the
Director of Compliance.
Pioneer has established Proxy Voting Procedures for identifying and
reviewing conflicts of interest that may arise in the voting of proxies.
Clients may request, at any time, a report on proxy votes for securities
held in their portfolios and Pioneer is happy to discuss our proxy votes
with company management. Pioneer retains a proxy voting service to provide
research on proxy issues and to process proxy votes.
Administrative
While administrative items appear infrequently in U.S. issuer proxies, they
are quite common in non-U.S. proxies.
We will generally support these and similar management proposals:
o Corporate name change.
o A change of corporate headquarters.
o Stock exchange listing.
o Establishment of time and place of annual meeting.
o Adjournment or postponement of annual meeting.
o Acceptance/approval of financial statements.
o Approval of dividend payments, dividend reinvestment plans and other
dividend-related proposals.
o Approval of minutes and other formalities.
6
o Authorization of the transferring of reserves and allocation of
income.
o Amendments to authorized signatories.
o Approval of accounting method changes or change in fiscal year-end.
o Acceptance of labor agreements.
o Appointment of internal auditors.
Pioneer will vote on a case-by-case basis on other routine business;
however, Pioneer will oppose any routine business proposal if insufficient
information is presented in advance to allow Pioneer to judge the merit of
the proposal. Pioneer has also instructed its proxy voting service to
inform Pioneer of its analysis of any administrative items inconsistent, in
its view, with supporting the value of Pioneer portfolio holdings so that
Pioneer may consider and vote on those items on a case-by-case basis.
Auditors
We normally vote for proposals to:
o Ratify the auditors. We will consider a vote against if we are
concerned about the auditors' independence or their past work for
the company. Specifically, we will oppose the ratification of
auditors and withhold votes from audit committee members if
non-audit fees paid by the company to the auditing firm exceed the
sum of audit fees plus audit-related fees plus permissible tax
fees according to the disclosure categories proposed by the
Securities and Exchange Commission.
o Restore shareholder rights to ratify the auditors.
We will normally oppose proposals that require companies to:
o Seek bids from other auditors.
o Rotate auditing firms, except where the rotation is statutorily
required or where rotation would demonstrably strengthen financial
disclosure.
o Indemnify auditors.
o Prohibit auditors from engaging in non-audit services for the
company.
Board of Directors
On issues related to the board of directors, Pioneer normally supports
management. We will, however, consider a vote against management in
instances where corporate performance has been very poor or where the board
appears to lack independence.
7
General Board Issues
Pioneer will vote for:
o Audit, compensation and nominating committees composed of
independent directors exclusively.
o Indemnification for directors for actions taken in good faith in
accordance with the business judgment rule. We will vote against
proposals for broader indemnification.
o Changes in board size that appear to have a legitimate business
purpose and are not primarily for anti-takeover reasons.
o Election of an honorary director.
We will vote against:
o Minimum stock ownership by directors.
o Term limits for directors. Companies benefit from experienced
directors, and shareholder control is better achieved through
annual votes.
o Requirements for union or special interest representation on the
board.
o Requirements to provide two candidates for each board seat.
We will vote on a case-by case basis on these issues:
o Separate chairman and CEO positions. We will consider voting with
shareholders on these issues in cases of poor corporate
performance.
Elections of Directors
In uncontested elections of directors we will vote against:
o Individual directors with absenteeism above 25% without valid
reason. We support proposals that require disclosure of director
attendance.
o Insider directors and affiliated outsiders who sit on the audit,
compensation, stock option or nominating committees. For the
purposes of our policy, we accept the definition of affiliated
directors provided by our proxy voting service.
We will also vote against:
o Directors who have failed to act on a takeover offer where the
majority of shareholders have tendered their shares.
o Directors who appear to lack independence or are associated with
very poor corporate performance.
8
We will vote on a case-by case basis on these issues:
o Re-election of directors who have implemented or renewed a
dead-hand or modified dead-hand poison pill (a "dead-hand poison
pill" is a shareholder rights plan that may be altered only by
incumbent or "dead " directors. These plans prevent a potential
acquirer from disabling a poison pill by obtaining control of the
board through a proxy vote).
o Contested election of directors.
o Prior to phase-in required by SEC, we would consider supporting
election of a majority of independent directors in cases of poor
performance.
o Mandatory retirement policies.
o Directors who have ignored a shareholder proposal that has been
approved by shareholders for two consecutive years.
Takeover-Related Measures
Pioneer is generally opposed to proposals that may discourage takeover
attempts. We believe that the potential for a takeover helps ensure that
corporate performance remains high.
Pioneer will vote for:
o Cumulative voting.
o Increase ability for shareholders to call special meetings.
o Increase ability for shareholders to act by written consent.
o Restrictions on the ability to make greenmail payments.
o Submitting rights plans to shareholder vote.
o Rescinding shareholder rights plans ("poison pills").
o Opting out of the following state takeover statutes:
o Control share acquisition statutes, which deny large holders voting
rights on holdings over a specified threshold.
o Control share cash-out provisions, which require large holders to
acquire shares from other holders.
o Freeze-out provisions, which impose a waiting period on large
holders before they can attempt to gain control.
o Stakeholder laws, which permit directors to consider interests of
non-shareholder constituencies.
9
o Disgorgement provisions, which require acquirers to disgorge profits
on purchases made before gaining control.
o Fair price provisions.
o Authorization of shareholder rights plans.
o Labor protection provisions.
o Mandatory classified boards.
We will vote on a case-by-case basis on the following issues:
o Fair price provisions. We will vote against provisions requiring
supermajority votes to approve takeovers. We will also consider
voting against proposals that require a supermajority vote to
repeal or amend the provision. Finally, we will consider the
mechanism used to determine the fair price; we are generally
opposed to complicated formulas or requirements to pay a premium.
o Opting out of state takeover statutes regarding fair price
provisions. We will use the criteria used for fair price
provisions in general to determine our vote on this issue.
o Proposals that allow shareholders to nominate directors.
We will vote against:
o Classified boards, except in the case of closed-end mutual funds.
o Limiting shareholder ability to remove or appoint directors. We
will support proposals to restore shareholder authority in this
area. We will review on a case-by-case basis proposals that
authorize the board to make interim appointments.
o Classes of shares with unequal voting rights.
o Supermajority vote requirements.
o Severance packages ("golden" and "tin" parachutes). We will support
proposals to put these packages to shareholder vote.
o Reimbursement of dissident proxy solicitation expenses. While we
ordinarily support measures that encourage takeover bids, we
believe that management should have full control over corporate
funds.
o Extension of advance notice requirements for shareholder proposals.
o Granting board authority normally retained by shareholders (e.g.,
amend charter, set board size).
o Shareholder rights plans ("poison pills"). These plans generally
allow shareholders to buy additional shares at a below-market
price in the event of a change in control and may deter some bids.
10
Capital Structure
Managements need considerable flexibility in determining the company's
financial structure, and Pioneer normally supports managements' proposals
in this area. We will, however, reject proposals that impose high barriers
to potential takeovers.
Pioneer will vote for:
o Changes in par value.
o Reverse splits, if accompanied by a reduction in number of shares.
o Share repurchase programs, if all shareholders may participate on
equal terms.
o Bond issuance.
o Increases in "ordinary" preferred stock.
o Proposals to have blank-check common stock placements (other than
shares issued in the normal course of business) submitted for
shareholder approval.
o Cancellation of company treasury shares.
We will vote on a case-by-case basis on the following issues:
o Reverse splits not accompanied by a reduction in number of shares,
considering the risk of delisting.
o Increase in authorized common stock. We will make a determination
considering, among other factors:
o Number of shares currently available for issuance;
o Size of requested increase (we would normally approve increases of up to
100% of current authorization);
o Proposed use of the additional shares; and
o Potential consequences of a failure to increase the number of shares
outstanding (e.g., delisting or bankruptcy).
o Blank-check preferred. We will normally oppose issuance of a new
class of blank-check preferred, but may approve an increase in a
class already outstanding if the company has demonstrated that it
uses this flexibility appropriately.
o Proposals to submit private placements to shareholder vote.
o Other financing plans.
We will vote against preemptive rights that we believe limit a company's
financing flexibility.
11
Compensation
Pioneer supports compensation plans that link pay to shareholder returns
and believes that management has the best understanding of the level of
compensation needed to attract and retain qualified people. At the same
time, stock-related compensation plans have a significant economic impact
and a direct effect on the balance sheet. Therefore, while we do not want
to micromanage a company's compensation programs, we will place limits on
the potential dilution these plans may impose.
Pioneer will vote for:
o 401(k) benefit plans.
o Employee stock ownership plans (ESOPs), as long as shares
allocated to ESOPs are less than 5% of outstanding shares. Larger
blocks of stock in ESOPs can serve as a takeover defense. We will
support proposals to submit ESOPs to shareholder vote.
o Various issues related to the Omnibus Budget and Reconciliation Act
of 1993 (OBRA), including:
o Amendments to performance plans to conform with OBRA;
o Caps on annual grants or amendments of administrative features;
o Adding performance goals; and
o Cash or cash-and-stock bonus plans.
o Establish a process to link pay, including stock-option grants, to
performance, leaving specifics of implementation to the company.
o Require that option repricings be submitted to shareholders.
o Require the expensing of stock-option awards.
o Require reporting of executive retirement benefits (deferred
compensation, split-dollar life insurance, SERPs, and pension
benefits).
o Employee stock purchase plans where the purchase price is equal to
at least 85% of the market price, where the offering period is no
greater than 27 months and where potential dilution (as defined
below) is no greater than 10%.
12
We will vote on a case-by-case basis on the following issues:
o Executive and director stock-related compensation plans. We will
consider the following factors when reviewing these plans:
o The program must be of a reasonable size. We will approve plans
where the combined employee and director plans together would
generate less than 15% dilution. We will reject plans with 15% or
more potential dilution.
Dilution = (A + B + C) / (A + B + C + D), where
A = Shares reserved for plan/amendment,
B = Shares available under continuing plans,
C = Shares granted but unexercised and
D = Shares outstanding.
o The plan must not:
o Explicitly permit unlimited option repricing authority or that
have repriced in the past without shareholder approval.
o Be a self-replenishing "evergreen" plan, plans that grant
discount options and tax offset payments.
o We are generally in favor of proposals that increase participation beyond
executives.
o We generally support proposals asking companies to adopt rigorous
vesting provisions for stock option plans such as those that vest
incrementally over, at least, a three- or four-year period with a pro
rata portion of the shares becoming exercisable on an annual basis
following grant date.
o We generally support proposals asking companies to disclose their
window period policies for stock transactions. Window period policies
ensure that employees do not exercise options based on insider
information contemporaneous with quarterly earnings releases and other
material corporate announcements.
o We generally support proposals asking companies to adopt stock holding
periods for their executives.
o All other employee stock purchase plans.
o All other compensation-related proposals, including deferred
compensation plans, employment agreements, loan guarantee programs
and retirement plans.
o All other proposals regarding stock compensation plans, including
extending the life of a plan, changing vesting restrictions,
repricing options, lengthening exercise periods or accelerating
distribution of awards and pyramiding and cashless exercise
programs.
13
We will vote against:
o Pensions for non-employee directors. We believe these retirement
plans reduce director objectivity.
o Elimination of stock option plans.
We will vote on a case-by case basis on these issues:
o Limits on executive and director pay.
o Stock in lieu of cash compensation for directors.
Corporate Governance
Pioneer will vote for:
o Confidential Voting.
o Equal access provisions, which allow shareholders to contribute
their opinion to proxy materials.
o Proposals requiring directors to disclose their ownership of shares
in the company.
We will vote on a case-by-case basis on the following issues:
o Change in the state of incorporation. We will support
reincorporations supported by valid business reasons. We will
oppose those that appear to be solely for the purpose of
strengthening takeover defenses.
o Bundled proposals. We will evaluate the overall impact of the
proposal.
o Adopting or amending the charter, bylaws or articles of association.
o Shareholder appraisal rights, which allow shareholders to demand
judicial review of an acquisition price.
We will vote against:
o Shareholder advisory committees. While management should solicit
shareholder input, we prefer to leave the method of doing so to
management's discretion.
o Limitations on stock ownership or voting rights.
o Reduction in share ownership disclosure guidelines.
14
Mergers and Restructurings
Pioneer will vote on the following and similar issues on a case-by-case
basis:
o Mergers and acquisitions.
o Corporate restructurings, including spin-offs, liquidations, asset
sales, joint ventures, conversions to holding company and
conversions to self-managed REIT structure.
o Debt restructurings.
o Conversion of securities.
o Issuance of shares to facilitate a merger.
o Private placements, warrants, convertible debentures.
o Proposals requiring management to inform shareholders of merger
opportunities.
We will normally vote against shareholder proposals requiring that the
company be put up for sale.
Mutual Funds
Many of our portfolios may invest in shares of closed-end mutual funds or
exchange-traded funds. The non-corporate structure of these investments
raises several unique proxy voting issues.
Pioneer will vote for:
o Establishment of new classes or series of shares.
o Establishment of a master-feeder structure.
Pioneer will vote on a case-by-case on:
o Changes in investment policy. We will normally support changes
that do not affect the investment objective or overall risk level
of the fund. We will examine more fundamental changes on a
case-by-case basis.
o Approval of new or amended advisory contracts.
o Changes from closed-end to open-end format.
o Authorization for, or increase in, preferred shares.
o Disposition of assets, termination, liquidation, or mergers.
o Classified boards of closed-end mutual funds, but will typically
support such proposals.
15
Social Issues
Pioneer will abstain on stockholder proposals calling for greater
disclosure of corporate activities with regard to social issues. "Social
Issues" may generally be described as shareholder proposals for a company
to:
o Conduct studies regarding certain issues of public concern and
interest;
o Study the feasibility of the company taking certain actions with
regard to such issues; or
o Take specific action, including ceasing certain behavior and
adopting company standards and principles, in relation to issues
of public concern and interest.
We believe these issues are important and should receive management
attention.
Pioneer will vote against proposals calling for substantial changes in the
company's business or activities. We will also normally vote against
proposals with regard to contributions, believing that management should
control the routine disbursement of funds.
16
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.
Other Accounts Managed by the Portfolio Managers. The table below indicates, for
each 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, 2013. 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.
--------------------- -------------------- ----------------- ------------------- ------------------ -------------------
Name of Portfolio Type of Account Number of Total Assets Number of Assets Managed
Manager Accounts Managed Managed Accounts Managed for which
for which Advisory Fee is
Advisory Fee is Performance-Based
Performance-Based
--------------------- -------------------- ----------------- ------------------- ------------------ -------------------
--------------------- -------------------- ----------------- ------------------- ------------------ -------------------
Jonathan Sharkey Other Registered 3 $3,356,667,635 N/A N/A
Investment
Companies
-------------------- ----------------- ------------------- ------------------ -------------------
-------------------- ----------------- ------------------- ------------------ -------------------
Other Pooled 0 0 N/A N/A
Investment Vehicles
-------------------- ----------------- ------------------- ------------------ -------------------
-------------------- ----------------- ------------------- ------------------ -------------------
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 Managers. 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 may participate in other programs designed to reward
and retain key contributors. Senior executives or other key employees may be
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, 2013 the value, within the indicated range, of shares beneficially
owned by the portfolio manager of the fund.
---------------------------------------- -------------------------------------------------------------------
Name of Portfolio Manager Beneficial Ownership 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) PPioneer Floating Rate Trust
By (Signature and Title)* /s/ Daniel K. Kingsbury
Daniel K. Kingsbury, President
Date January 29, 2014
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/ Daniel K. Kingsbury
Daniel K. Kingsbury, President
Date January 29, 2014
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date January 29, 2014
* Print the name and title of each signing officer under his or her signature.