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, Amundi Pioneer Asset 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 30,2019
Date of reporting period: December 1, 2018 through November 30, 2019
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
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Annual Report | November 30, 2019
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Ticker Symbol: PHD
Beginning in February 2021, as permitted by regulations adopted by the
Securities and Exchange Commission, paper copies of the Trust's shareholder
reports like this one will no longer be sent by mail, unless you specifically
request paper copies of the reports from the Trust or from your financial
intermediary, such as a broker-dealer, bank or insurance company. Instead, the
reports will be made available on the Trust's website, and you will be notified
by mail each time a report is posted and provided with a website link to access
the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. You may elect
to receive shareholder reports and other communications electronically by
contacting your financial intermediary or, if you invest directly with the
Trust, by calling 1-800-710-0935.
You may elect to receive all future reports in paper free of charge. If you
invest directly with the Trust, you can inform the Trust that you wish to
continue receiving paper copies of your shareholder reports by calling
1-800-710-0935. If you invest through a financial intermediary, you can contact
your financial intermediary to request that you continue to receive paper
copies of your shareholder reports. Your election to receive reports in paper
will apply to all funds held in your account if you invest through your
financial intermediary or all funds held within the Pioneer Fund complex if you
invest directly.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.com/us
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Schedule of Investments 13
Financial Statements 40
Financial Highlights 44
Notes to Financial Statements 46
Report of Independent Registered Public Accounting Firm 61
Additional Information 63
Approval of Investment Management Agreement 64
Trustees, Officers and Service Providers 69
Pioneer Floating Rate Trust | Annual Report | 11/30/19 1
President's Letter
Dear Shareholders,
As we enter 2020 and welcome a new decade, history has taught us the importance
of taking a long-term horizon when investing, which has typically proven to be
a prudent approach to generating solid returns over time. Since 1928, our
investment process has been built on a foundation of fundamental research and
active management, principles which have guided our investment decisions for
more than 90 years. We believe active management -- that is, making active
investment decisions -- can help mitigate the potential risks during periods of
market volatility. In today's global economy, investment risk can materialize
from a number of factors, including a slowing economy, changing U.S. Federal
Reserve interest-rate policy, oil price shocks, and political and geopolitical
factors.
At Amundi Pioneer, active management begins with our own fundamental, bottom-up
research process. Our team of dedicated research analysts and portfolio
managers analyze each security under consideration, communicating directly with
the management teams of the companies issuing the securities and working
together to identify those securities that best meet our investment criteria
for our family of funds. Our risk management approach begins with each and
every security, as we strive to carefully understand the potential opportunity,
while considering any and all risk factors.
Today, as investors, we have many options. It is our view that active
management can serve shareholders well, not only when markets are thriving, but
also during periods of market stress. As you consider your long-term investment
goals, we encourage you to work with your financial advisor to develop an
investment plan that paves the way for you to pursue both your short and long
term goals.
2 Pioneer Floating Rate Trust | Annual Report | 11/30/19
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
November 30, 2019
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. Past performance is no
guarantee of future results.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 3
Portfolio Management Discussion | 11/30/19
In the following interview, Jonathan Sharkey discusses the factors that
influenced the performance of Pioneer Floating Rate Trust during the 12-month
period ended November 30, 2019. Mr. Sharkey, a senior vice president and a
portfolio manager at Amundi Pioneer Asset Management, Inc., 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,
2019?
A Pioneer Floating Rate Trust returned 5.38% at net asset value (NAV) and
8.59% at market price during the 12-month period ended November 30, 2019,
while the Trust's benchmark, the Standard & Poor's/Loan Syndications &
Trading Association Leveraged Loan Index (the S&P/LSTA Index), returned
4.21% at NAV. Unlike the Trust, the S&P/LSTA 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 NAV of the 31
closed end funds in Morningstar's Bank Loan Closed End Funds category
(which may or may not be leveraged), was 2.75%, and the average return at
market price of the 31 closed end funds in the same Morningstar category
was 7.06%.
The shares of the Trust were selling at a 10.99% discount to NAV on
November 30, 2019. Comparatively, the shares of the Trust were selling at
a 13.62% discount to NAV on November 30, 2018.
The Trust's standardized, 30-day SEC yield was 5.25% on November 30,
2019*.
Q How would you describe the environment for investing in bank loans during
the 12-month period ended November 30, 2019?
A In late 2018, the loan market felt the effects of massive outflows from
retail mutual fund investors, which suppressed loan valuations and helped
drive a -2.54% return for the asset class in December, the first month of
the 12-month reporting period. The outflows from bank-loan funds were
largely due to comments made by U.S. Federal Reserve System (Fed) Chair
Powell, who indicated that future interest-rate increases were likely to
be curtailed. The Fed had raised rates four times during 2018, but
Powell's comments suggesting a pause on rate hikes diminished the
attractiveness of bank loans to investors, as the floating interest rates
on loans are a more desirable feature in a rising-rate environment. The
fund outflows were secondarily fueled by
* 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 | 11/30/19
heightened media coverage speculating about the end of the credit cycle
for loans. Furthermore, the effects of the fund outflows were exacerbated
by low year-end 2018 liquidity, given a pause in collateralized loan
obligation (CLO) formation after a record calendar year in terms of
volume.
Despite those problems, patient loan investors were rewarded as the bulk
of the losses incurred in late 2018 were recouped in a credit-market rally
early in 2019. Risk-oriented assets rebounded sharply in January of 2019,
mainly due to the Fed's softening tone on monetary policy, which included
putting rate increases on pause and announcing an early end to its
balance-sheet reduction program. Moreover, weak economic data out of the
euro zone and China led to renewed monetary policy accommodation from the
European Central Bank and the People's Bank of China. Modest progress on
trade matters, a firming in oil prices, and positive corporate earnings
reports also helped boost investor sentiment about the credit markets, and
for bank loans. While there was some interim market volatility,
credit-sensitive assets generally maintained a firm tone before wavering
in May on President Trump's announcement of plans to institute a 25%
tariff on some $200 billion worth of Chinese goods.
As the 12-month period progressed, loan prices eventually softened as the
Fed shifted from a pause on rate increases to actual rate reductions
against a backdrop of slowing economic growth and low inflation. The Fed
lowered short-term interest rates by a quarter point on July 31, September
19, and October 30, bringing the benchmark federal funds target rate down
to a range of 1.50% to 1.75% before the end of the 12-month period.
Q What factors had the biggest effects on the Trust's performance relative
to the benchmark during the 12-month period ended November 30, 2019?
A During a 12-month period that saw the Trust generate positive
benchmark-relative performance, the portfolio's allocations across
industries within its core loan positions had a modest effect on
benchmark-relative results, on a net basis. With regard to sectors, the
Trust's largest allocation was in health care, representing a slight
overweight versus the S&P/LSTA Index. The overweight to health care was
the leading positive contributor to the Trust's benchmark-relative returns
during the 12-month period, while a modest overweight to media issues was
also beneficial.
Other positive contributors to the Trust's benchmark-relative results
during the 12-month period included an out-of-benchmark allocation to
high-yield corporate bonds, which had a modest, positive impact on
performance. Exposure to collateralized mortgage obligations (CMOs) also
had a slightly positive effect on the Trust's relative performance.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 5
An underweight to technology had a modest negative effect on the Trust's
benchmark-relative results during the 12-month period, while the
portfolio's oil and gas holdings were among the leading detractors from
absolute returns, given the weakness in oil prices seen for most of the
period. Also detracting from the Trust's relative returns were allocations
to brokered-insurance and insurance-linked securities (ILS), as the
Trust's ILS investments were exposed to both the costly California
wildfires and the destructive Typhoon Jebi, which made landfall in Japan.
At the individual security level, positive contributions to the Trust's
benchmark-relative performance over the 12-month period were led by a
position in the loans of PetSmart, which announced an initial public
offering of its online retailer "Chewy," which is expected to improve the
pet supply retailer's working capital. Other positions that contributed
positively to the Trust's benchmark-relative results during the 12-month
period included loans of gaming machine manufacturer Scientific Games
International, and Chobani, a yogurt company that has begun to realize the
benefits from its operational initiatives and new product launches. Within
the Trust's corporate bonds allocation, positive performance contributions
were led by the portfolio's exposure to Hard Rock Cafe.
On the negative side, the Trust's position in loans for Constellis lagged
and detracted from benchmark-relative performance during the 12-month
period, as results for the security services firm have softened due to
lower levels of government spending on overseas contingency operations.
Another position that detracted from the Trust's benchmark-relative
returns during the 12-month period was Encino, as the loans for the energy
exploration-and-production (E&P) company declined on gas price volatility
and overcapacity issues in the regions in which Encino operates. In a
similar vein, oil-price volatility and potential drilling moratoriums in
the State of California had a negative effect on the loans for E&P company
California Resources, another holding in the Trust's portfolio that
detracted from benchmark-relative results.
Q How did the level of leverage in the Trust change over the 12-month period
ended November 30, 2019?
A The Trust employs leverage through a credit agreement.
As of November 30, 2019, 32.3% of the Trust's total managed assets were
financed by leverage compared with 32.5% of the Trust's total managed
assets financed by leverage at the start of the period on November 30,
2018. During the period, the Trust reduced the absolute amount of funds
borrowed by a total of $4 million to $139 million as of November 30, 2019.
The percentage of the Trust's managed assets financed by leverage
decreased during the period due to the reduction of the amount of funds
borrowed by the Trust.
6 Pioneer Floating Rate Trust | Annual Report | 11/30/19
Q Did the Trust have any investments in derivative securities during the
12-month period ended November 30, 2019? If so, did the derivatives have
any material effect on results?
A We invested the Trust's portfolio in high-yield bond, index-based
credit-default-swap contracts during the 12-month period as a way to
offset cash holdings while we waited to deploy cash into other
investments. The derivatives had a slightly positive effect on the Trust's
performance.
Q Did the Trust's distributions** to shareholders change during the 12-month
period ended November 30, 2019?
A Yes, the Trust's distributions to shareholders increased over the full
12-month period, given that interest rates were rising for a time before
moving down again. Nevertheless, the Trust has drawn on accumulated net
investment income in paying the Trust's distributions in recent periods,
but these reserves may be depleted over time.
Q What is your investment outlook?
A The default rate on loans for the 12-month period ended November 30, 2019,
was 1.48% by loan volume, below the historical average of slightly more
than 3%. The loan default rate by number of issuers was 1.63%, also below
the long-term average. The default rate on loans held in the Trust's
portfolio has remained well below that of the market, based on suspension
of interest payments.
In general, we view loan fundamentals as positive and expect defaults to
remain manageable. The primary risks to our outlook include an unexpected
decline in corporate earnings resulting from some combination of higher
tariffs, rising wage growth, and slowing global economic growth.
That said, the loan market has recently seen an uptick in the amount of
leverage utilized in buyout activity, and so we have refrained from having
the portfolio participate in a number of the more levered deals. We tend
to avoid those types of deals, as they typically have been associated with
greater future default risk as well as lower recovery rates. We are
emphasizing holding loans of borrowers with strong cash flows, which could
potentially help ensure that those borrowers can pay their obligations
should interest rates rise meaningfully in the future, or if there is a
downturn in economic conditions.
The quality of the Trust's portfolio has remained fairly consistent, with
a slight increase in holdings of B-rated loans that was largely driven by
the composition of the new-issue market over the 12-month period. In terms
of
** Distributions are not guaranteed.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 7
industries, we marginally increased the Trust's exposures to consumer
cyclical and health care during the 12-month period, while marginally
decreasing exposures to communications, finance, and insurance.
We have also maintained the portfolio's out-of-benchmark allocations to
high-yield corporates, index-based credit-default-swap contracts, and ILS.
A significant move higher in interest rates appears to have become less of
a near-term risk to the high-yield asset class, and we view maintaining a
modest position in ILS as helping to improve the Trust's long-term
risk/reward profile, based on the higher potential yields offered by ILS
and the potential diversification*** effects they provide.
The recent rate cuts by the Fed have put downward pressure on the London
Interbank Offered reference rate (LIBOR) as well as the Trust's income
generation. However, prior to the Fed's policy reversal in 2019, bank
loans had demonstrated their value in the rising-rate environment we
experienced during 2018, substantially outperforming both high-yield and
investment-grade corporate bonds.
With the current U.S. economic recovery in its 10th year, we view a lower
federal funds rate as likely to support loan-market sentiment by helping
to extend the credit cycle. A longer-term pause in Fed rate cuts coupled
with a manageable default environment would likely mean that the coupon
element of return will drive performance for the loan asset class, though
we do believe there is potential for capital appreciation if the U.S.
economic growth outlook improves on any resolution to trade disputes or
better global growth prospects.
Please refer to the Schedule of Investments on pages 13-39 for a full listing
of Trust securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity, and heightened
uncertainty. These conditions may continue, recur, worsen, or spread.
The Trust may invest in derivative securities, which may include futures and
options, for a variety of purposes, including: in an attempt to hedge against
adverse changes in the marketplace of securities, interest rates or currency
exchange rates; as a substitute for purchasing or selling securities; to
attempt to increase the Trust's return as a non-hedging strategy that may be
considered speculative; and to manage portfolio characteristics. Using
derivatives can
*** Diversification does not assure a profit nor protect against loss.
8 Pioneer Floating Rate Trust | Annual Report | 11/30/19
increase fund losses and reduce opportunities for gains when the market prices,
interest rates or the derivative instruments themselves behave in a way not
anticipated by the Trust. These types of instruments can increase price
fluctuation.
The Trust is not limited in the percentage of its assets that may be invested
in illiquid securities. Illiquid securities may be difficult to sell at a price
reflective of their value at times when the Trust believes it is desirable to
do so and the market price of illiquid securities is generally more volatile
than that of more liquid securities. Illiquid securities may be difficult to
value, and investment of the Trust's assets in illiquid securities may restrict
the Trust's ability to take advantage of market opportunities.
The Trust employs leverage through a revolving credit facility. Leverage
creates significant risks, including the risk that the Trust's income or
capital appreciation from investments purchased with the proceeds of leverage
will not be sufficient to cover the cost of leverage, which may adversely
affect the return for shareowners.
The Trust is required to maintain certain regulatory and other asset coverage
requirements in connection with the Trust's use of leverage. In order to
maintain required asset coverage levels, the Trust may be required to reduce
the amount of leverage employed by the Trust, alter the composition of the
Trust's investment portfolio or take other actions at what might be inopportune
times in the market. Such actions could reduce the net earnings or returns to
shareowners over time, which is likely to result in a decrease in the market
value of the Trust's shares.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. The Trust may invest in securities of issuers that
are in default or that are in bankruptcy.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates and economic and political
conditions.
The Trust may invest in insurance-linked securities (ILS). The return of
principal and the payment of interest on ILS are contingent on the
non-occurrence of a pre-defined "trigger" event, such as a hurricane or an
earthquake of a specific magnitude.
These risks may increase share price volatility.
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. Past performance is no
guarantee of future results.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 9
Portfolio Summary | 11/30/19
Portfolio Diversification
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(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Senior Secured Floating Rate Loan Interests 84.0%
Corporate Bonds 6.5%
U.S. Government and Agency Obligations 5.3%
Collateralized Mortgage Obligations 1.5%
Insurance-Linked Securities 1.4%
Investment Companies 1.1%
Asset Backed Securities 0.1%
Common Stocks 0.1%
10 Largest Holdings
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(As a percentage of total investments)*
1. U.S. Treasury Bills, 12/17/19 4.56%
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2. Connecticut Avenue Securities Trust, Series 2019-HRP1, Class B1, 10.958%
(1 Month USD LIBOR + 925 bps), 11/25/39 (144A) 0.96
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3. Sprint Communications, Inc., Initial Term Loan, 4.25% (LIBOR + 250 bps), 2/2/24 0.79
---------------------------------------------------------------------------------------------------------
4. Chobani LLC (Chobani Idaho LLC), First Lien New Term Loan, 5.202%
(LIBOR + 350 bps), 10/10/23 0.79
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5. Prime Security Services Borrower LLC (aka Protection 1 Security Solutions),
First Lien 2019 Refinancing Term B-1 Loan, 5.035% (LIBOR + 325 bps), 9/23/26 0.74
---------------------------------------------------------------------------------------------------------
6. U.S. Treasury Bills, 12/24/19 0.68
---------------------------------------------------------------------------------------------------------
7. American Airlines, Inc., 2018 Replacement Term Loan, 3.45%
(LIBOR + 175 bps), 6/27/25 0.65
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8. Scientific Games International, Inc., Initial Term B-5 Loan, 4.452%
(LIBOR + 275 bps), 8/14/24 0.64
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9. Garda World Security Corpo., Initial Term Loan, 6.66% (LIBOR + 475 bps), 10/30/26 0.62
---------------------------------------------------------------------------------------------------------
10. GHX Ultimate Parent Corp., First Lien Initial Term Loan, 5.354%
(LIBOR + 325 bps), 6/28/24 0.59
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* Excludes temporary cash investments and all derivative contracts except
for options purchased. The Trust is actively managed, and current holdings
may be different. The holdings listed should not be considered
recommendations to buy or sell any securities.
10 Pioneer Floating Rate Trust | Annual Report | 11/30/19
Prices and Distributions | 11/30/19
Market Value per Share^
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11/30/19 11/30/18
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Market Value $10.53 $10.40
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Premium/(Discount) (10.99)% (13.62)%
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Net Asset Value per Share^
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--------------------------------------------------------------------------------
11/30/19 11/30/18
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Net Asset Value $11.83 $12.04
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Distributions per Share*
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Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
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12/1/18-11/30/19 $0.7350 $ -- $ --
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Yields
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--------------------------------------------------------------------------------
11/30/19 11/30/18
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30-day SEC Yield 5.25% 6.18%
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The data shown above represents past performance, which is no guarantee of
future results.
^ Net asset value and market value are published in Barron's on Saturday,
The Wall Street Journal on Monday and The New York Times on Monday and
Saturday. Net asset value and market value are published daily on the
Trust's website at www.amundipioneer.com/us.
* The amount of distributions made to shareowners during the period was in
excess of the net investment income earned by the Trust during the period.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 11
Performance Update | 11/30/19
Investment Returns
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The mountain chart on the right shows the change in market value, including
reinvestment of dividends and distributions, of a $10,000 investment made in
shares of Pioneer Floating Rate Trust during the periods shown, compared with
the value of the S&P/LSTA Leveraged Loan Index, which provides broad and
comprehensive total return metrics of the U.S. universe of syndicated term
loans.
Average Annual Total Returns
(As of November 30, 2019)
-----------------------------------------------
Net
Asset S&P/LSTA
Value Market Leveraged
Period (NAV) Price Loan Index
-----------------------------------------------
10 Years 7.41% 6.04% 5.15%
5 Years 4.88 4.98 3.85
1 Year 5.38 8.59 4.21
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Floating S&P/LSTA Leveraged
Rate Trust Loan Index
11/09 $10,000 $10,000
11/10 $11,810 $11,198
11/11 $12,584 $11,451
11/12 $14,379 $12,522
11/13 $15,372 $13,227
11/14 $16,102 $13,672
11/15 $16,417 $13,550
11/16 $17,780 $14,600
11/17 $18,767 $15,317
11/18 $19,394 $15,849
11/19 $20,437 $16,517
Call 1-800-710-0935 or visit www.amundipioneer.com/us for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV, due to such factors as interest rate
changes, and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for shares of the Trust.
Shares of closed-end funds, unlike open-end funds, are not continuously
offered. There is a one-time public offering and, once issued, shares of
closed-end funds are bought and sold in the open market through a stock
exchange and frequently trade at prices lower than their NAV. NAV per share is
total assets less total liabilities, which include preferred shares, or
borrowings, as applicable, divided by the number of shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends
are assumed to be reinvested at prices obtained through open-market purchases
under the Trust's dividend reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the sale of Trust shares.
Had these fees and taxes been reflected, performance would have been lower.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Trust returns, do not reflect any fees, expenses or sales charges. The
index does not use leverage. You cannot invest directly in an index.
12 Pioneer Floating Rate Trust | Annual Report | 11/30/19
Schedule of Investments | 11/30/19
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 153.2%
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 125.6% of Net Assets*(a)
Aerospace & Defense -- 6.1%
621,600 Air Canada, 2019 Replacement Term Loan, 3.483%
(LIBOR + 175 bps), 10/6/23 $ 625,469
2,037,000 American Airlines, Inc., 2017 Class B Term Loan, 3.702%
(LIBOR + 200 bps), 4/28/23 2,039,779
1,229,839 American Airlines, Inc., 2017 Class B Term Loan, 3.765%
(LIBOR + 200 bps), 12/14/23 1,231,516
2,852,369 American Airlines, Inc., 2018 Replacement Term Loan,
3.45% (LIBOR + 175 bps), 6/27/25 2,830,800
650,350 Dynasty Acquisition Co., Inc., Initial Term B-1 Loan, 6.104%
(LIBOR + 400 bps), 4/6/26 653,737
349,650 Dynasty Acquisition Co., Inc., Initial Term B-2 Loan, 6.104%
(LIBOR + 400 bps), 4/6/26 351,471
2,500,000 Jazz Acquisition, Inc., First Lien Initial Term Loan, 6.35%
(LIBOR + 425 bps), 6/19/26 2,412,500
1,939,089 MACOM Technology Solutions Holdings, Inc. (fka M/A-COM
Technology Solutions Holdings, Inc.), Initial
Term Loan, 3.952% (LIBOR + 225 bps), 5/17/24 1,767,803
1,496,250 MRO Holdings, Inc., Initial Term Loan, 7.104% (LIBOR +
500 bps), 6/4/26 1,481,287
1,964,974 Peraton Corp. (fka MHVC Acquisition Corp.), First Lien
Initial Term Loan, 6.96% (LIBOR +
525 bps), 4/29/24 1,960,062
234,609 United AirLines, Inc., Refinanced Term Loan, 3.452%
(LIBOR + 175 bps), 4/1/24 235,780
1,000,000(b) WestJet Airlines, Ltd., Term Loan B, 8/7/26 1,006,786
1,539,737 WP CPP Holdings LLC, First Lien Initial Term Loan, 5.679%
(LIBOR + 375 bps), 4/30/25 1,528,189
-------------
Total Aerospace & Defense $ 18,125,179
--------------------------------------------------------------------------------------------------------------
Automobile -- 5.4%
1,240,569 American Axle & Manufacturing, Inc., Tranche B Term Loan,
4.006% (LIBOR + 225 bps), 4/6/24 $ 1,221,444
1,592,519 Commercial Vehicle Group, Inc., Initial Term Loan, 7.702%
(LIBOR + 600 bps), 4/12/23 1,596,500
1,530,004 Cooper-Standard Automotive, Inc., Additional Term B-1
Loan, 3.702% (LIBOR + 200 bps), 11/2/23 1,420,356
999,174 CWGS Group LLC (aka Camping World, Inc.), Term Loan,
4.534% (LIBOR + 275 bps), 11/8/23 899,257
2,000,000 Drive Chassis Holdco LLC, Second Lien Term B Loan,
10.588% (LIBOR + 825 bps), 4/10/26 1,820,000
691,667 Goodyear Tire & Rubber Co., Second Lien Term Loan,
3.97% (LIBOR + 200 bps), 3/3/25 688,208
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 13
Schedule of Investments | 11/30/19 (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Automobile -- (continued)
272,968 KAR Auction Services, Inc., Tranche B-6 Term Loan, 4.0%
(LIBOR + 225 bps), 9/19/26 $ 274,845
1,884,607 Navistar, Inc., Tranche B Term Loan, 5.27% (LIBOR +
350 bps), 11/6/24 1,878,128
880,341 Superior Industries International, Inc., Replacement Term
Loan, 5.702% (LIBOR + 400 bps), 5/22/24 828,621
1,799,204 Thor Industries, Inc., Initial USD Term Loan, 5.563%
(LIBOR + 375 bps), 2/1/26 1,791,311
1,012,827 TI Group Automotive Systems LLC, Initial US Term Loan,
4.202% (LIBOR + 250 bps), 6/30/22 1,009,345
2,170,324 Trico Group LLC, First Lien Tranche B-2 Term Loan, 9.104%
(LIBOR + 700 bps), 2/2/24 2,126,917
466,667 Visteon Corp., New Term Loan, 3.481% (LIBOR +
175 bps), 3/25/24 467,250
-------------
Total Automobile $ 16,022,182
--------------------------------------------------------------------------------------------------------------
Banking -- 0.7%
1,500,000 Azalea TopCo, Inc., First Lien Initial Term Loan, 5.202%
(LIBOR + 350 bps), 7/24/26 $ 1,495,312
551,504 EWT Holdings III Corp. (fka WTG Holdings III Corp.),
Refinancing 2017-2 First Lien Term Loan, 4.702%
(LIBOR + 300 bps), 12/20/24 553,917
-------------
Total Banking $ 2,049,229
--------------------------------------------------------------------------------------------------------------
Beverage, Food & Tobacco -- 2.6%
1,406,049 Albertson's LLC, 2019 Term B-8 Loan, 4.452% (LIBOR +
275 bps), 8/17/26 $ 1,417,097
600,000 B&G Foods, Inc., Tranche B-4 Term Loan, 4.202%
(LIBOR + 250 bps), 10/10/26 603,125
3,504,880 Chobani LLC (Chobani Idaho LLC), First Lien New Term
Loan, 5.202% (LIBOR + 350 bps), 10/10/23 3,467,641
2,002,092 JBS USA Lux SA (fka JBS USA LLC), New Term Loan,
4.202% (LIBOR + 250 bps), 5/1/26 2,012,519
-------------
Total Beverage, Food & Tobacco $ 7,500,382
--------------------------------------------------------------------------------------------------------------
Broadcasting & Entertainment -- 2.8%
1,923,821 Charter Communications Operating LLC (aka CCO
Safari LLC) Term B-2 Loan, 3.45% (LIBOR +
175 bps), 2/1/27 $ 1,935,245
1,500,000(b) Creative Artists Agency LLC Closing Date Term
Loan, 11/27/26 1,500,000
728,809 Gray Television, Inc., Term B-2 Loan, 4.031% (LIBOR +
225 bps), 2/7/24 730,722
506,589 Gray Television, Inc., Term C Loan, 4.281% (LIBOR +
250 bps), 1/2/26 509,167
The accompanying notes are an integral part of these financial statements.
14 Pioneer Floating Rate Trust | Annual Report | 11/30/19
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Broadcasting & Entertainment -- (continued)
2,031,421 Sinclair Television Group, Inc., Tranche B Term Loan,
3.96% (LIBOR + 225 bps), 1/3/24 $ 2,035,852
1,500,000 Sinclair Television Group, Inc., Tranche B-2b Term Loan,
4.27% (LIBOR + 250 bps), 9/30/26 1,508,419
-------------
Total Broadcasting & Entertainment $ 8,219,405
--------------------------------------------------------------------------------------------------------------
Building Materials -- 1.2%
832,930 Circor International, Inc., Initial Term Loan, 5.258%
(LIBOR + 350 bps), 12/11/24 $ 831,368
995,564 Summit Materials LLC, New Term Loan, 3.702% (LIBOR +
200 bps), 11/21/24 999,920
1,466,250 WKI Holding Co., Inc. (aka World Kitchen), Initial Term
Loan, 6.099% (LIBOR + 400 bps), 5/1/24 1,466,250
-------------
Total Building Materials $ 3,297,538
--------------------------------------------------------------------------------------------------------------
Buildings & Real Estate -- 3.6%
2,240,602 Beacon Roofing Supply, Inc., Initial Term Loan, 3.952%
(LIBOR + 225 bps), 1/2/25 $ 2,227,617
246,990 Builders FirstSource, Inc., Refinancing Term Loan,
4.702% (LIBOR + 300 bps), 2/29/24 247,966
1,188,000 DTZ US Borrower LLC (aka Cushman & Wakefield),
Closing Date Term Loan, 4.952% (LIBOR +
325 bps), 8/21/25 1,193,748
774,955 Penn Engineering & Manufacturing Corp., Tranche B
Term Loan, 4.452% (LIBOR + 275 bps), 6/27/24 773,987
691,250 Southwire Co. LLC (fka Southwire Co.), Initial Term Loan,
3.452% (LIBOR + 175 bps), 5/19/25 690,559
1,473,156 Uniti Group, Inc., Shortfall Term Loan, 6.702% (LIBOR +
500 bps), 10/24/22 1,426,752
1,977,273 VICI Properties 1 LLC, Term B Loan, 3.716% (LIBOR +
200 bps), 12/20/24 1,986,953
1,888,684 WireCo WorldGroup, Inc. (WireCo WorldGroup Finance LP),
First Lien Initial Term Loan, 6.702% (LIBOR +
500 bps), 9/29/23 1,798,184
-------------
Total Buildings & Real Estate $ 10,345,766
--------------------------------------------------------------------------------------------------------------
Chemicals -- 0.6%
997,500 Momentive Performance Materials, Inc., First Lien Initial
Dollar Term Loan, 4.96% (LIBOR + 325 bps), 5/15/24 $ 986,589
1,000,000 Tank Holding Corp., First Lien Initial Term Loan, 6.465%
(LIBOR + 400 bps), 3/26/26 1,004,375
-------------
Total Chemicals $ 1,990,964
--------------------------------------------------------------------------------------------------------------
Chemicals, Plastics & Rubber -- 6.4%
1,219,189 Axalta Coating Systems Dutch Holding B BV (Axalta
Coating Systems US Holdings, Inc.), Term B-3 Dollar Loan,
3.854% (LIBOR + 175 bps), 6/1/24 $ 1,221,366
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 15
Schedule of Investments | 11/30/19 (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Chemicals, Plastics & Rubber -- (continued)
943,270 Berry Global, Inc. (fka Berry Plastics Corporation) Term W
Loan, 3.758% (LIBOR + 200 bps), 10/1/22 $ 947,397
1,582,405 Chemours Co., Tranche B-2 USD Term Loan, 3.46%
(LIBOR + 175 bps), 4/3/25 1,500,318
1,967,462 Core & Main LP, Initial Term Loan, 4.671% (LIBOR +
275 bps), 8/1/24 1,947,787
409,139(b) Element Solutions, Inc. (Macdermid, Inc.), Initial Term
Loan, 3.702% (LIBOR + 200 bps), 1/31/26 410,674
1,995,000 Hexion, Inc., USD Term Loan, 5.6% (LIBOR +
350 bps), 7/1/26 2,002,431
500,000 LTI Holdings, Inc., Second Lien Initial Term Loan, 8.549%
(LIBOR + 675 bps), 9/6/26 361,250
1,365,143 Omnova Solutions, Inc., Term B-2 Loan, 4.952% (LIBOR +
325 bps), 8/25/23 1,364,296
551,612 Orion Engineered Carbons GmbH, Initial Dollar Term Loan,
4.104% (LIBOR + 200 bps), 7/25/24 552,991
1,043,091 PQ Corp., Third Amendment Tranche B-1 Term Loan,
4.427% (LIBOR + 250 bps), 2/8/25 1,046,611
1,989,561 Reynolds Group Holdings, Inc., Incremental US Term Loan,
4.452% (LIBOR + 275 bps), 2/5/23 1,995,986
1,361,963 Tata Chemicals North America, Term Loan, 4.875%
(LIBOR + 275 bps), 8/7/20 1,361,963
1,704,316 Tronox Finance LLC, First Lien Initial Dollar Term Loan,
4.609% (LIBOR + 275 bps), 9/23/24 1,701,475
1,323,594 Twist Beauty International Holdings SA, Facility B2,
4.835% (LIBOR + 300 bps), 4/22/24 1,272,305
1,132,557 Univar USA Inc., Term B-3 Loan, 3.952% (LIBOR +
225 bps), 7/1/24 1,136,501
-------------
Total Chemicals, Plastics & Rubber $ 18,823,351
--------------------------------------------------------------------------------------------------------------
Computers & Electronics -- 4.4%
1,284,000 Applied Systems, Inc., First Lien Closing Date Term
Loan, 5.354% (LIBOR + 325 bps), 9/19/24 $ 1,280,331
750,000 Applied Systems, Inc., Second Lien Initial Term Loan,
9.104% (LIBOR + 700 bps), 9/19/25 763,750
1,231,250 Chloe OX Parent LLC, Initial Term Loan, 6.604% (LIBOR +
450 bps), 12/23/24 1,229,711
2,000,000(b) Edgewell Personal Care Co., Term B Loan, 9/18/26 2,007,500
979,592 Energizer Holdings, Inc., Term B Loan, 4.063% (LIBOR +
225 bps), 12/17/25 983,870
1,773,608 Energy Acquisition LP (aka Electrical Components
International), First Lien Initial Term Loan,
6.354% (LIBOR + 425 bps), 6/26/25 1,547,473
497,475 Iron Mountain Information Management LLC, Incremental
Term B Loan, 3.452% (LIBOR + 175 bps), 1/2/26 492,914
The accompanying notes are an integral part of these financial statements.
16 Pioneer Floating Rate Trust | Annual Report | 11/30/19
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Computers & Electronics -- (continued)
718,615 Microchip Technology, Inc., Initial Term Loan, 3.71%
(LIBOR + 200 bps), 5/29/25 $ 720,591
1,000,000 NCR Corp., Initial Term Loan, 4.21% (LIBOR +
250 bps), 8/28/26 1,007,494
893,237 ON Semiconductor Corp., 2019 New Replacement
Term B-4 Loan, 3.702% (LIBOR + 200 bps), 9/19/26 898,445
2,033,036 Ultra Clean Holdings, Inc., Term Loan B, 6.202% (LIBOR +
450 bps), 8/27/25 2,033,036
-------------
Total Computers & Electronics $ 12,965,115
--------------------------------------------------------------------------------------------------------------
Construction & Building -- 0.4%
1,265,326 Quikrete Holdings, Inc., First Lien Initial Term Loan,
4.452% (LIBOR + 275 bps), 11/15/23 $ 1,266,380
-------------
Total Construction & Building $ 1,266,380
--------------------------------------------------------------------------------------------------------------
Consumer Nondurables -- 0.5%
1,500,000 Sunshine Luxembourg VII S.a.r.l, Term Loan, 6.349%
(LIBOR + 425 bps), 10/1/26 $ 1,507,312
-------------
Total Consumer Nondurables $ 1,507,312
--------------------------------------------------------------------------------------------------------------
Consumer Services -- 1.1%
3,276,675 Prime Security Services Borrower LLC (aka Protection 1
Security Solutions), First Lien 2019 Refinancing Term B-1
Loan, 5.035% (LIBOR + 325 bps), 9/23/26 $ 3,244,318
-------------
Total Consumer Services $ 3,244,318
--------------------------------------------------------------------------------------------------------------
Containers, Packaging & Glass -- 0.9%
1,301,717 Plastipak Holdings, Inc., Tranche B Term Loan, 4.2%
(LIBOR + 250 bps), 10/14/24 $ 1,290,598
1,500,000 Pregis TopCo LLC, First Lien Initial Term Loan, 5.702%
(LIBOR + 400 bps), 7/31/26 1,471,875
-------------
Total Containers, Packaging & Glass $ 2,762,473
--------------------------------------------------------------------------------------------------------------
Diversified & Conglomerate Manufacturing -- 2.6%
270,311 Delos Finance S.a r.l., New Term Loan, 3.854% (LIBOR +
175 bps), 10/6/23 $ 271,628
873,090 ExamWorks Group, Inc. (fka Gold Merger Co., Inc.),
Term B-1 Loan, 4.952% (LIBOR + 325 bps), 7/27/23 877,728
2,698,568 Garda World Security Corpo., Initial Term Loan, 6.66%
(LIBOR + 475 bps), 10/30/26 2,696,296
2,308,606 Pelican Products, Inc., First Lien Term Loan, 5.265%
(LIBOR + 350 bps), 5/1/25 2,118,145
1,714,134 STG-Fairway Acquisitions, Inc. (aka First Advantage), First
Lien Term Loan, 6.952% (LIBOR + 525 bps), 6/30/22 1,716,277
-------------
Total Diversified & Conglomerate Manufacturing $ 7,680,074
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 17
Schedule of Investments | 11/30/19 (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Diversified & Conglomerate Service -- 11.5%
1,975,784 Albany Molecular Research, Inc., First Lien Initial Term
Loan, 4.952% (LIBOR + 325 bps), 8/30/24 $ 1,956,643
1,000,000 Albany Molecular Research, Inc., Second Lien Initial Term
Loan, 8.702% (LIBOR + 700 bps), 8/30/25 997,188
1,647,190 Alion Science and Technology Corp., First Lien Term Loan,
6.202% (LIBOR + 450 bps), 8/19/21 1,650,794
2,515,000 Allied Universal Holdco LLC (f/k/a USAGM Holdco LLC),
Initial Term Loan, 6.507% (LIBOR +
425 bps), 7/10/26 2,510,807
119,416 ASGN, Inc. (fka On Assignment, Inc.), Initial Term B-3
Loan, 3.452% (LIBOR + 175 bps), 4/2/25 119,939
1,000,000 AVSC Holding Corp. (aka PSAV, Inc.) 2019 First Lien
Incremental Term Loan, 6.486% (LIBOR +
450 bps), 10/15/26 983,113
344,536 AVSC Holding Corp. (aka PSAV, Inc.), First Lien Initial Term
Loan, 5.139% (LIBOR + 325 bps), 3/3/25 335,483
1,711,106 Bright Horizons Family Solutions LLC (fka Bright Horizons
Family Solutions, Inc.), Term B Loan, 3.452%
(LIBOR + 175 bps), 11/7/23 1,716,443
2,148,766 CB Poly Investments LLC, First Lien Closing Date Term
Loan, 6.286% (LIBOR + 450 bps), 8/16/23 2,138,022
1,218,620 Change Healthcare Holdings, Inc. (fka Emdeon, Inc.),
Closing Date Term Loan, 4.202% (LIBOR +
250 bps), 3/1/24 1,220,035
1,010,046 DG Investment Intermediate Holdings 2, Inc. (aka
Convergint Technologies Holdings LLC), First Lien Initial
Term Loan, 4.702% (LIBOR + 300 bps), 2/3/25 996,999
1,195,094 DTI Holdco, Inc., Replacement B-1 Term Loan, 6.677%
(LIBOR + 475 bps), 9/29/23 1,105,462
1,150,000 DynCorp International, Inc., Term Loan, 7.765% (LIBOR +
600 bps), 8/18/25 1,128,438
997,500 Emerald 2, Ltd., First Lien Initial Term B-1 Loan, 5.854%
(LIBOR + 375 bps), 7/10/26 1,001,615
790,957 Filtration Group Corp., Initial Dollar Term Loan, 4.702%
(LIBOR + 300 bps), 3/29/25 794,170
641,430 Gates Global LLC, Initial B-2 Dollar Term Loan, 4.452%
(LIBOR + 275 bps), 4/1/24 640,628
2,589,754 GHX Ultimate Parent Corp., First Lien Initial Term Loan,
5.354% (LIBOR + 325 bps), 6/28/24 2,567,093
493,750 Iqvia, Inc. (Quintiles IMS), Term B-3 Dollar Loan, 3.854%
(LIBOR + 175 bps), 6/11/25 495,499
1,582,187 Jaguar Holding Co. I LLC (fka Jaguar Holding Co. I) (aka
Pharmaceutical Product Development LLC), 2018
Term Loan, 4.202% (LIBOR + 250 bps), 8/18/22 1,585,978
989,950 Mitchell International, Inc., First Lien Initial Term Loan,
4.952% (LIBOR + 325 bps), 11/29/24 952,827
The accompanying notes are an integral part of these financial statements.
18 Pioneer Floating Rate Trust | Annual Report | 11/30/19
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Diversified & Conglomerate Service -- (continued)
201 National Mentor Holdings, Inc. (aka Civitas Solutions,
Inc.), First Lien Initial Term C Loan, 5.96%
(LIBOR + 425 bps), 3/9/26 $ 202
432,548 National Mentor Holdings, Inc. (aka Civitas Solutions,
Inc.), First Lien Initial Term Loan, 5.96% (LIBOR
+ 425 bps), 3/9/26 433,900
2,163,856 NVA Holdings, Inc., First Lien Term B-3 Loan, 6.5%
(PRIME + 175 bps), 2/2/25 2,163,856
316,596 Outfront Media Capital LLC (Outfront Media Capital
Corporation) Extended Term Loan, 3.513% (LIBOR +
175 bps), 11/18/26 317,783
1,044,991 Sound Inpatient Physicians, Inc., First Lien Initial Term
Loan, 4.452% (LIBOR + 275 bps), 6/27/25 1,044,991
487,500 Team Health Holdings, Inc., Initial Term Loan, 4.452%
(LIBOR + 275 bps), 2/6/24 347,344
1,320,237 Tempo Acquisition LLC, Initial Term Loan, 4.702% (LIBOR +
300 bps), 5/1/24 1,321,723
1,337,784 West Corp., Incremental Term B-1 Loan, 5.427% (LIBOR +
350 bps), 10/10/24 1,058,856
1,413,562 West Corp., Initial Term B Loan, 5.927% (LIBOR +
400 bps), 10/10/24 1,156,764
725,728 WEX, Inc., Term B-3 Loan, 3.952% (LIBOR +
225 bps), 5/15/26 729,244
-------------
Total Diversified & Conglomerate Service $ 33,471,839
--------------------------------------------------------------------------------------------------------------
Electric & Electrical -- 1.1%
1,079,300 Dell International LLC (EMC Corp.), Refinancing Term B-1
Loan, 3.71% (LIBOR + 200 bps), 9/19/25 $ 1,086,517
2,080,250 Rackspace Hosting, Inc., First Lien Term B Loan, 4.902%
(LIBOR + 300 bps), 11/3/23 1,958,360
-------------
Total Electric & Electrical $ 3,044,877
--------------------------------------------------------------------------------------------------------------
Electronics -- 3.4%
262,265 Avast Software BV, 2018 Refinancing Dollar Term Loan,
4.354% (LIBOR + 225 bps), 9/29/23 $ 264,396
1,094,500 Mirion Technologies (Finance) LLC (Mirion Technologies,
Inc.), Initial Dollar Term Loan, 6.104% (LIBOR +
400 bps), 3/6/26 1,099,972
2,293,500 Natel Engineering Co., Inc., Initial Term Loan, 6.781%
(LIBOR + 500 bps), 4/30/26 2,213,227
1,282,424 nThrive, Inc. (fka Precyse Acquisition Corp.), Additional
Term B-2 Loan, 6.202% (LIBOR + 450 bps), 10/20/22 1,057,999
2,791,307 Scientific Games International, Inc., Initial Term B-5 Loan,
4.452% (LIBOR + 275 bps), 8/14/24 2,784,328
1,301,602 Verint Systems, Inc., Refinancing Term Loan, 3.843%
(LIBOR + 200 bps), 6/28/24 1,310,550
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 19
Schedule of Investments | 11/30/19 (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Electronics -- (continued)
1,240,616 Western Digital Corp., US Term B-4 Loan, 3.452%
(LIBOR + 175 bps), 4/29/23 $ 1,241,391
-------------
Total Electronics $ 9,971,863
--------------------------------------------------------------------------------------------------------------
Entertainment & Leisure -- 1.2%
828,750 Cedar Fair LP, US Term B Loan, 3.452% (LIBOR +
175 bps), 4/13/24 $ 831,987
1,740,716(b) Motion Acquisition, Ltd., Term Loan B (USD), 10/16/26 1,756,628
1,117,636 Sabre GLBL, Inc. (fka Sabre, Inc.), 2018 Other Term B
Loan, 3.702% (LIBOR + 200 bps), 2/22/24 1,122,726
-------------
Total Entertainment & Leisure $ 3,711,341
--------------------------------------------------------------------------------------------------------------
Environmental Services -- 1.0%
831,797 Advanced Disposal Services, Inc. (fka ADS Waste Holdings,
Inc.), Additional Term Loan, 3.848% (LIBOR +
225 bps), 11/10/23 $ 834,512
2,038,043 GFL Environmental, Inc., Effective Date Incremental Term
Loan, 4.702% (LIBOR + 300 bps), 5/30/25 2,019,191
835,000 Terra Bidco B.C. Ltd., Term Loan, 11/25/26 836,044
-------------
Total Environmental Services $ 3,689,747
--------------------------------------------------------------------------------------------------------------
Farming & Agriculture -- 0.4%
1,166,995 Dole Food Co., Inc., Tranche B Term Loan, 4.461%
(LIBOR + 275 bps), 4/6/24 $ 1,156,492
-------------
Total Farming & Agriculture $ 1,156,492
--------------------------------------------------------------------------------------------------------------
Financial Services -- 1.4%
1,449,799 Baring Private Equity Asia VI Holding (2), Ltd., First Lien
Initial Dollar Term Loan, 4.702% (LIBOR +
300 bps), 10/26/22 $ 1,415,366
888,750 Blackhawk Network Holdings, Inc., First Lien Term Loan,
4.702% (LIBOR + 300 bps), 6/15/25 887,639
962,522 Everi Payments, Inc., Term B loan, 4.702% (LIBOR +
300 bps), 5/9/24 964,563
870,165 Trans Union LLC, 2019 Replacement Term B-5 Loan,
3.452% (LIBOR + 175 bps), 11/16/26 872,232
-------------
Total Financial Services $ 4,139,800
--------------------------------------------------------------------------------------------------------------
Forest Products -- 0.4%
1,324,433 ProAmpac PG Borrower LLC, First Lien Initial Term Loan,
5.389% (LIBOR + 350 bps/PRIME +
250 bps), 11/20/23 $ 1,277,526
-------------
Total Forest Products $ 1,277,526
--------------------------------------------------------------------------------------------------------------
Gaming and Hotels -- 0.2%
452,596 PCI Gaming Authority, Term B Facility Loan, 4.702%
(LIBOR + 300 bps), 5/29/26 $ 455,661
-------------
Total Gaming and Hotels $ 455,661
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Floating Rate Trust | Annual Report | 11/30/19
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Grocery -- 0.2%
794,616 Diplomat Pharmacy, Inc., Initial Term B Loan, 6.409%
(LIBOR + 450 bps), 12/20/24 $ 713,168
-------------
Total Grocery $ 713,168
--------------------------------------------------------------------------------------------------------------
Healthcare -- 1.1%
1,750,000 Option Care Health, Inc., Term B Loan, 6.202% (LIBOR +
450 bps), 8/6/26 $ 1,723,204
1,396,500 Phoenix Guarantor, Inc. (aka Brightspring), First Lien
Initial Term Loan, 6.27% (LIBOR +
450 bps), 3/5/26 $ 1,405,664
-------------
Total Healthcare $ 3,128,868
--------------------------------------------------------------------------------------------------------------
Healthcare & Pharmaceuticals -- 9.6%
1,428,825 Acadia Healthcare Co., Inc., Tranche B-4 Term Loan,
4.202% (LIBOR + 250 bps), 2/16/23 $ 1,433,141
631,825 Agiliti Health, Inc., Initial Term Loan, 4.813% (LIBOR +
300 bps), 1/4/26 631,825
1,052,666 Alkermes, Inc., 2023 Term Loan, 4.02% (LIBOR +
225 bps), 3/27/23 1,049,376
1,240,000 Alphabet Holding Co., Inc. (aka Nature's Bounty), First Lien
Initial Term Loan, 5.202% (LIBOR + 350 bps), 9/26/24 1,161,725
1,500,000 Alphabet Holding Co., Inc. (aka Nature's Bounty),
Second Lien Initial Term Loan, 9.452% (LIBOR +
775 bps), 9/26/25 1,290,000
905,450 Auris Luxembourg III S.a r.l., Facility B2, 5.441% (LIBOR +
375 bps), 2/27/26 901,677
1,500,000(b) CLP Healthcare Services, Inc., Term Loan B, 11/4/26 1,486,875
1,176,811 Concentra, Inc., First Lien Tranche B-1 Term Loan, 4.54%
(LIBOR + 250 bps), 6/1/22 1,179,252
2,000,000 Curium BidCo S.a r.l., Facility B, 6.1% (LIBOR +
400 bps), 7/9/26 2,013,750
1,500,000 DaVita, Inc. (fka DaVita HealthCare Partners, Inc.), Tranche
B Term Loan, 3.952% (LIBOR + 225 bps), 8/12/26 1,510,313
1,573,775 Endo Luxembourg Finance Company I S.a.r.l., Initial Term
Loan, 6.0% (LIBOR + 425 bps), 4/29/24 1,444,922
1,376,975 Explorer Holdings, Inc., Initial Term Loan, 5.854%
(LIBOR + 375 bps), 5/2/23 1,376,114
1,503,399 Gentiva Health Services, Inc., First Lien Closing Date
Initial Term Loan, 5.5% (LIBOR + 375 bps), 7/2/25 1,511,386
741,889 Greatbatch, Ltd., New Term B Loan, 4.77% (LIBOR +
300 bps), 10/27/22 745,413
1,983,728 Kindred Healthcare LLC, Closing Date Term Loan, 6.75%
(LIBOR + 500 bps), 7/2/25 1,996,126
1,316,965 NMN Holdings III Corp., First Lien Closing Date Term Loan,
5.452% (LIBOR + 375 bps), 11/13/25 1,267,579
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 21
Schedule of Investments | 11/30/19 (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Healthcare & Pharmaceuticals -- (continued)
916,288 Prestige Brands, Inc., Term B-4 Loan, 3.702% (LIBOR +
200 bps), 1/26/24 $ 921,294
2,245,000(b) Sotera Health Holdings LLC, Incremental Term
Loan, 11/20/26 2,245,000
498,750 Sotera Health Holdings LLC, Incremental Term Loan,
5.427% (LIBOR + 350 bps), 5/15/22 498,542
1,771,940 Sterigenics-Nordion Holdings LLC, Incremental Term Loan,
4.927% (LIBOR + 300 bps), 5/15/22 1,767,067
2,000,000 Upstream Newco, Inc., First Lien Initial Term Loan,
6.202% (LIBOR + 450 bps), 11/20/26 2,010,000
-------------
Total Healthcare & Pharmaceuticals $ 28,441,377
--------------------------------------------------------------------------------------------------------------
Healthcare, Education & Childcare -- 5.6%
1,500,000 Alliance HealthCare Services, Inc., Second Lien Initial Term
Loan, 11.702% (LIBOR + 1,000 bps), 4/24/24 $ 1,488,750
1,409,598 ATI Holdings Acquisition, Inc., First Lien Initial Term
Loan, 5.202% (LIBOR + 350 bps), 5/10/23 1,387,867
218,750 Bausch Health Co., Inc. (fka Valeant Pharmaceuticals
International, Inc.), First Incremental Term
Loan, 4.515% (LIBOR + 275 bps), 11/27/25 219,805
2,246,980 Bausch Health Co., Inc. (fka Valeant Pharmaceuticals
International, Inc.), Initial Term Loan, 4.765%
(LIBOR + 300 bps), 6/2/25 2,259,775
1,978,073 KUEHG Corp. (fka KC MergerSub, Inc.) (aka KinderCare),
Term B-3 Loan, 5.854% (LIBOR + 375 bps), 2/21/25 1,965,216
836,662 Life Time Fitness, Inc., 2017 Refinancing Term Loan,
4.658% (LIBOR + 275 bps), 6/10/22 838,100
1,460,942 Quorum Health Corp., Term Loan, 8.677% (LIBOR +
675 bps), 4/29/22 1,386,069
1,598,617 Regionalcare Hospital Partners Holdings, Inc., First Lien
Term B Loan, 6.202% (LIBOR +
450 bps), 11/16/25 1,608,442
1,863,894 Select Medical Corp., Tranche B Term Loan, 4.58%
(LIBOR + 250 bps), 3/6/25 1,860,772
2,000,000 U.S. Renal Care, Inc., Initial Term Loan, 6.75% (LIBOR +
500 bps), 6/26/26 1,907,500
746,250 Vizient, Inc., Term B-5 Loan, 4.452% (LIBOR +
275 bps), 5/6/26 748,862
-------------
Total Healthcare, Education & Childcare $ 15,671,158
--------------------------------------------------------------------------------------------------------------
Hotel, Gaming & Leisure -- 3.7%
1,240,431 1011778 B.C. Unlimited Liability Co. (New Red
Finance, Inc.) (aka Burger King/Tim Hortons) Term B-4
Loan, 3.452% (LIBOR + 175 bps), 11/19/26 $ 1,241,361
1,900,920 Boyd Gaming Corp., Refinancing Term B Loan, 3.848%
(LIBOR + 225 bps), 9/15/23 1,909,739
The accompanying notes are an integral part of these financial statements.
22 Pioneer Floating Rate Trust | Annual Report | 11/30/19
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Hotel, Gaming & Leisure -- (continued)
2,241,764 Caesars Resort Collection LLC (fka Caesars Growth
Properties Holdings LLC), Term B Loan, 4.452% (LIBOR +
275 bps), 12/23/24 $ 2,229,154
928,393 Eldorado Resorts, Inc., Term Loan, 4.007% (LIBOR +
225 bps), 4/17/24 928,538
1,000,000 Hanjin International Corp. (aka Wilshire Grand Center),
Initial Term Loan, 4.202% (LIBOR +
250 bps), 10/19/20 992,500
426,292 Hilton Worldwide Finance LLC, Refinanced Series B-2 Term
Loan, 3.458% (LIBOR + 175 bps), 6/22/26 428,877
595,500 Marriott Ownership Resorts, Inc., Initial Term Loan,
3.952% (LIBOR + 225 bps), 8/29/25 597,726
966,014 MGM Growth Properties Operating Partnership LP, Term B
Loan, 3.702% (LIBOR + 200 bps), 3/21/25 970,240
446,625 Penn National Gaming, Inc., Term B-1 Facility Loan,
3.952% (LIBOR + 225 bps), 10/15/25 449,164
452,354 Stars Group Holdings BV, USD Term Loan, 5.604%
(LIBOR + 350 bps), 7/10/25 455,058
473,334 Station Casinos LLC, Term B Facility Loan, 4.21% (LIBOR +
250 bps), 6/8/23 475,109
-------------
Total Hotel, Gaming & Leisure $ 10,677,466
--------------------------------------------------------------------------------------------------------------
Insurance -- 4.3%
889,553 Alliant Holdings Intermediate LLC, Initial Term Loan,
4.702% (LIBOR + 300 bps), 5/9/25 $ 882,437
2,049,324 Asurion LLC (fka Asurion Corp.), New B-7 Term Loan,
4.702% (LIBOR + 300 bps), 11/3/24 2,053,593
284,592 Asurion LLC (fka Asurion Corp.), Replacement B-6 Term
Loan, 4.702% (LIBOR + 300 bps), 11/3/23 285,126
675,000 Asurion LLC (fka Asurion Corp.), Second Lien Replacement
B-2 Term Loan, 8.202% (LIBOR + 650 bps), 8/4/25 681,541
2,299,881 Confie Seguros Holding II Co., Term B Loan, 6.659%
(LIBOR + 475 bps), 4/19/22 2,176,262
1,832,886 Integro Parent, Inc., First Lien Initial Term Loan, 7.474%
(LIBOR + 575 bps), 10/31/22 1,787,064
1,385,220 MPH Acquisition Holdings LLC, Initial Term Loan, 4.854%
(LIBOR + 275 bps), 6/7/23 1,326,781
1,745,625 Sedgwick Claims Management Services, Inc., Term Loan B,
5.702% (LIBOR + 400 bps), 9/3/26 1,746,716
1,636,600 USI, Inc. (fka Compass Investors, Inc.), 2017 New Term
Loan, 5.104% (LIBOR + 300 bps), 5/16/24 1,617,779
-------------
Total Insurance $ 12,557,299
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 23
Schedule of Investments | 11/30/19 (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Leasing -- 1.0%
649,967 Fly Funding II S.a r.l., Term Loan, 3.9% (LIBOR +
200 bps), 2/9/23 $ 650,780
994,751 Hertz Corp., Tranche Term B-1 Loan, 4.46% (LIBOR +
275 bps), 6/30/23 999,724
1,477,500 IBC Capital I, Ltd. (aka Goodpack, Ltd.), First Lien Tranche
B-1 Term Loan, 5.895% (LIBOR + 375 bps), 9/11/23 1,469,189
-------------
Total Leasing $ 3,119,693
--------------------------------------------------------------------------------------------------------------
Leisure & Entertainment -- 2.3%
987,500 24 Hour Fitness Worldwide, Inc., Term Loan, 5.202%
(LIBOR + 350 bps), 5/30/25 $ 739,637
1,111,795 AMC Entertainment Holdings, Inc. (fka AMC Entertainment,
Inc.),Term B-1 Loan, 5.23% (LIBOR + 300 bps), 4/22/26 1,117,771
293,250 CityCenter Holdings LLC, Term B Loan, 3.952% (LIBOR +
225 bps), 4/18/24 294,140
1,539,012 Fitness International LLC, Term B Loan, 4.952% (LIBOR +
325 bps), 4/18/25 1,531,317
1,801,632 MCC Iowa LLC, Tranche M Term Loan, 3.59% (LIBOR +
200 bps), 1/15/25 1,813,627
1,247,825 Six Flags Theme Parks, Inc., Tranche B Term Loan, 3.46%
(LIBOR + 175 bps), 4/17/26 1,252,617
-------------
Total Leisure & Entertainment $ 6,749,109
--------------------------------------------------------------------------------------------------------------
Machinery -- 3.3%
626,786 Advanced Drainage Systems, Inc., Initial Term Loan, 4.0%
(LIBOR + 225 bps), 7/31/26 $ 629,136
430,590 Blount International, Inc., New Refinancing Term Loan,
5.946% (LIBOR + 375 bps), 4/12/23 431,218
428,412 Clark Equipment Co. (aka Doosan Bobcat, Inc.), Repriced
Term Loan, 4.104% (LIBOR + 200 bps), 5/18/24 428,992
851,429 CTC AcquiCo GmbH, Facility B2, 4.664% (LIBOR +
275 bps), 3/7/25 830,143
834,754 Gardner Denver, Inc., Tranche B-1 Dollar Term Loan,
4.452% (LIBOR + 275 bps), 7/30/24 838,926
1,250,000 MHI Holdings LLC, Initial Term Loan, 6.702% (LIBOR +
500 bps), 9/21/26 1,252,344
1,074,729 NN, Inc., Tranche B Term Loan, 5.452% (LIBOR +
375 bps), 10/19/22 1,045,174
2,232,063 Shape Technologies Group, Inc., Initial Term Loan, 4.934%
(LIBOR + 300 bps), 4/21/25 2,008,857
815,759 Terex Corp., Incremental US Term Loan, 3.843% (LIBOR +
200 bps), 1/31/24 817,798
1,035,865 Welbilt, Inc. (fka Manitowoc Foodservice, Inc.), Term B
Loan, 4.202% (LIBOR + 250 bps), 10/23/25 1,039,724
-------------
Total Machinery $ 9,322,312
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Floating Rate Trust | Annual Report | 11/30/19
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Media -- 2.1%
498,750 CSC Holdings LLC (fka CSC Holdings, Inc. (Cablevision))
September 2019 Initial Term Loan, 4.327% (LIBOR +
250 bps), 4/15/27 $ 500,408
487,500 CSC Holdings LLC (fka CSC Holdings, Inc. (Cablevision)),
March 2017 Refinancing Term Loan, 4.015% (LIBOR +
225 bps), 7/17/25 487,378
312,189 CSC Holdings LLC (fka CSC Holdings, Inc. (Cablevision)),
October 2018 Incremental Term Loan, 4.015%
(LIBOR + 225 bps), 1/15/26 311,955
2,000,000 Diamond Sports Group LLC, Term Loan, 4.96% (LIBOR +
325 bps), 8/24/26 1,998,334
1,999,758 Quincy Media, Inc. (fka Quincy Newspapers, Inc.), Term
Loan B, 4.804% (LIBOR + 300 bps/PRIME +
200 bps), 11/2/22 1,994,759
500,000 Ziggo Secured Finance Partnership, Term Loan E Facility,
4.265% (LIBOR + 250 bps), 4/15/25 499,842
-------------
Total Media $ 5,792,676
--------------------------------------------------------------------------------------------------------------
Metals & Mining -- 4.0%
1,580,000 Aleris International, Inc., Initial Term Loan, 6.452%
(LIBOR + 475 bps), 2/27/23 $ 1,583,950
1,815,745 Atkore International, Inc., First Lien Initial Incremental
Term Loan, 4.86% (LIBOR + 275 bps), 12/22/23 1,819,721
1,560,557 Big River Steel LLC, Closing Date Term Loan, 7.104%
(LIBOR + 500 bps), 8/23/23 1,548,853
1,932,339 BWay Holding Co., Initial Term Loan, 5.234% (LIBOR +
325 bps), 4/3/24 1,897,014
912,500 Oxbow Carbon LLC, First Lien Tranche B Term Loan,
5.452% (LIBOR + 375 bps), 1/4/23 912,120
912,233 Phoenix Services International LLC, Term B Loan, 5.513%
(LIBOR + 375 bps), 3/1/25 839,254
762,172 TMS International Corp. (aka Tube City IMS Corp.),
Term B-2 Loan, 4.584% (LIBOR + 275 bps), 8/14/24 729,779
2,375,003 Zekelman Industries, Inc. (fka JMC Steel Group, Inc.),
Term Loan, 3.966% (LIBOR + 225 bps), 6/14/21 2,376,487
-------------
Total Metals & Mining $ 11,707,178
--------------------------------------------------------------------------------------------------------------
Oil & Gas -- 4.3%
2,543,625 BCP Raptor II LLC, Initial Term Loan, 6.452% (LIBOR +
475 bps), 11/3/25 $ 2,155,722
1,333,000 California Resources Corp., Term Loan, 12.077%
(LIBOR + 1,038 bps), 12/31/21 797,300
545,875 Centurion Pipeline Co. LLC (fka Lotus Midstream LLC),
Initial Term Loan, 4.952% (LIBOR + 325 bps), 9/29/25 543,146
1,379,019 Delek US Holdings, Inc., Initial Term Loan, 3.952%
(LIBOR + 225 bps), 3/31/25 1,363,791
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 25
Schedule of Investments | 11/30/19 (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Oil & Gas -- (continued)
894,111 Encino Acquisition Partners Holdings LLC, Second Lien
Initial Term Loan, 8.452% (LIBOR + 675 bps), 10/29/25 $ 634,819
1,000,252 Gulf Finance LLC, Tranche B Term Loan, 7.16% (LIBOR +
525 bps), 8/25/23 760,192
618,750 NorthRiver Midstream Finance LP, Initial Term B Loan,
5.349% (LIBOR + 325 bps), 10/1/25 612,047
1,257,750 Prairie ECI Acquiror LP, Initial Term Loan, 6.854% (LIBOR +
475 bps), 3/11/26 1,221,065
1,662,421 St. Joseph Energy Center LLC, Term B Loan Advance,
5.21% (LIBOR + 350 bps), 4/10/25 1,647,874
1,682,321 Summit Midstream Partners Holdings LLC, Term Loan
Credit Facility, 7.702% (LIBOR + 600 bps), 5/13/22 1,629,749
1,485,000 Traverse Midstream Partners LLC, Advance Term Loan,
5.71% (LIBOR + 400 bps), 9/27/24 1,291,950
-------------
Total Oil & Gas $ 12,657,655
--------------------------------------------------------------------------------------------------------------
Personal, Food & Miscellaneous Services -- 3.4%
750,548 CSM Bakery Solutions, Ltd. (fka CSM Bakery Supplies,
Ltd.), First Lien Term Loan, 6.03% (LIBOR +
400 bps), 7/3/20 $ 723,027
1,585,662 Diamond (BC) BV (aka Diversey), Initial USD Term Loan,
4.927% (LIBOR + 300 bps), 9/6/24 1,511,136
1,531,700 IRB Holding Corp. (aka Arby's/Buffalo Wild Wings), Term B
Loan, 5.216% (LIBOR + 325 bps), 2/5/25 1,534,412
2,012,306 Knowlton Development Corp., Inc., Initial Term Loan,
5.952% (LIBOR + 425 bps), 12/22/25 2,015,661
908,093 Match Group, Inc. (fka The Match Group, Inc.), Additional
Term B-1 Loan, 4.436% (LIBOR +
250 bps), 11/16/22 909,796
1,510,526 Parfums Holding Co., Inc., First Lien Initial Term Loan,
6.159% (LIBOR + 425 bps), 6/30/24 1,495,043
1,000,000 Parfums Holding Co., Inc., Second Lien Initial Term Loan,
10.86% (LIBOR + 875 bps), 6/30/25 995,000
962,783 Revlon Consumer Products Corp., Initial Term Loan B,
5.409% (LIBOR + 350 bps), 9/7/23 710,052
-------------
Total Personal, Food & Miscellaneous Services $ 9,894,127
--------------------------------------------------------------------------------------------------------------
Printing & Publishing -- 1.0%
2,316,887 Red Ventures LLC (New Imagitas, Inc.), First Lien Term B-1
Loan, 4.702% (LIBOR + 300 bps), 11/8/24 $ 2,318,914
549,911 Trader Corp., First Lien 2017 Refinancing Term Loan,
4.702% (LIBOR + 300 bps), 9/28/23 547,835
-------------
Total Printing & Publishing $ 2,866,749
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Floating Rate Trust | Annual Report | 11/30/19
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Professional & Business Services -- 5.1%
2,500,000 APi Group DE, Inc., Initial Term Loan, 4.202% (LIBOR +
250 bps), 10/1/26 $ 2,516,798
1,492,500 athenahealth, Inc., First Lien Term B Loan, 6.401%
(LIBOR + 450 bps), 2/11/26 1,493,731
997,500 Blackstone CQP Holdco LP, Initial Term Loan, 5.656%
(LIBOR + 350 bps), 9/30/24 998,123
1,000,000 Clear Channel Outdoor Holdings, Inc., Term B Loan,
5.202% (LIBOR + 350 bps), 8/21/26 1,004,219
1,500,000 Ensemble RCM LLC, Closing Date Term Loan, 5.659%
(LIBOR + 375 bps), 8/3/26 1,502,813
442,616 Horizon Pharma US.A., Inc., Sixth Amendment Refinancing
Term Loan, 4.313% (LIBOR + 250 bps), 5/22/26 445,036
1,496,250 MYOB US Borrower LLC, First Lien Initial US Term Loan,
5.702% (LIBOR + 400 bps), 5/6/26 1,503,731
2,019,692 Pre-Paid Legal Services, Inc. (aka LegalShield), First Lien
Initial Term Loan, 4.952% (LIBOR + 325 bps), 5/1/25 2,011,698
1,475,106 SIWF Holdings, Inc. (aka Spring Window Fashions), First
Lien Initial Term Loan, 5.952% (LIBOR +
425 bps), 6/15/25 1,467,731
1,188,000 Verscend Holding Corp., Term B Loan, 6.202% (LIBOR +
450 bps), 8/27/25 1,191,705
883,636 Victory Capital Holdings, Inc., Initial Term Loan, 5.349%
(LIBOR + 325 bps), 7/1/26 889,528
-------------
Total Professional & Business Services $ 15,025,113
--------------------------------------------------------------------------------------------------------------
Retail -- 3.3%
1,980,000 Bass Pro Group LLC, Initial Term Loan, 6.702% (LIBOR +
500 bps), 9/25/24 $ 1,950,918
1,017,191 CDW LLC (aka AP Exhaust Acq) (fka CDW Corp.), Term
Loan, 3.46% (LIBOR + 175 bps), 10/13/26 1,027,363
1,427,430 Global Appliance, Inc. (aka SharkNinja Operating LLC),
Tranche B Term Loan, 5.71% (LIBOR +
400 bps), 9/29/24 1,397,097
297,000 HD Supply, Inc., Term B-5 Loan, 3.452% (LIBOR +
175 bps), 10/17/23 298,781
1,107,531 Men's Wearhouse, Inc., Tranche B-2 Term Loan, 5.031%
(LIBOR + 325 bps), 4/9/25 761,428
1,227,841 Michaels Stores, Inc., 2018 New Replacement Term B Loan,
4.203% (LIBOR + 250 bps), 1/30/23 1,166,756
1,265,452 PetSmart, Inc., Amended Term Loan, 5.77% (LIBOR +
400 bps), 3/11/22 1,234,873
920,375 Staples, Inc., 2019 Refinancing New Term B-2 Loan,
6.281% (LIBOR + 450 bps), 9/12/24 910,021
812,625 United Natural Foods, Inc., Initial Term Loan, 5.952%
(LIBOR + 425 bps), 10/22/25 670,669
-------------
Total Retail $ 9,417,906
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 27
Schedule of Investments | 11/30/19 (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Securities & Trusts -- 1.7%
1,990,000 KSBR Holding Corp., Initial Term Loan, 5.972% (LIBOR +
425 bps), 4/15/26 $ 1,998,706
400,000 LCPR Loan Financing LLC, Initial Term Loan, 6.765%
(LIBOR + 500 bps), 10/15/26 404,583
932,432(b) Spectacle Gary Holdings LLC, Term Loan B, 11/6/25 918,446
1,635,000(b) Stonepeak Lonestar Holdings LLC, Initial Term
Loan, 10/19/26 1,613,541
-------------
Total Securities & Trusts $ 4,935,276
--------------------------------------------------------------------------------------------------------------
Telecommunications -- 5.4%
2,495,033 CenturyLink, Inc., Initial Term B Loan, 4.452% (LIBOR +
275 bps), 1/31/25 $ 2,497,373
1,036,000 Commscope, Inc., Initial Term Loan, 4.952% (LIBOR +
325 bps), 4/6/26 1,030,820
1,575,124 Frontier Communications Corp., Term B-1 Loan, 5.46%
(LIBOR + 375 bps), 6/15/24 1,572,873
811,007 Go Daddy Operating Co. LLC (GD Finance Co., Inc.), Tranche
B-1 Term Loan, 3.452% (LIBOR + 175 bps), 2/15/24 815,569
1,513,527(b) Level 3 Financing, Inc., Tranche B Term Loan, 3.952%
(LIBOR + 175 bps), 3/1/27 1,515,182
1,011,893 Plantronics, Inc., Initial Term B Loan, 4.202% (LIBOR +
250 bps), 7/2/25 958,558
347,375 Sprint Communications, Inc., 2019 Incremental Term
Loan, 4.75% (LIBOR + 300 bps), 2/2/24 347,013
3,512,992 Sprint Communications, Inc., Initial Term Loan, 4.25%
(LIBOR + 250 bps), 2/2/24 3,477,862
1,117,713 Virgin Media Bristol LLC N Facility, 4.265% (LIBOR +
250 bps), 1/31/28 1,119,033
2,040,217 Windstream Services LLC (fka Windstream Corp.),
Tranche B-6 Term Loan, 9.75% (PRIME +
500 bps), 3/29/21 1,935,655
750,000 Windstream Services LLC (fka Windstream Corp.),
Tranche B-7 Term Loan, 9.0% (PRIME +
425 bps), 2/17/24 704,062
-------------
Total Telecommunications $ 15,974,000
--------------------------------------------------------------------------------------------------------------
Textile & Apparel -- 0.5%
1,496,250 Adient US LLC, Initial Term Loan, 6.114% (LIBOR +
425 bps), 5/6/24 $ 1,503,731
-------------
Total Textile & Apparel $ 1,503,731
--------------------------------------------------------------------------------------------------------------
Transportation -- 1.0%
719,563 Envision Healthcare Corp., Initial Term Loan, 5.452%
(LIBOR + 375 bps), 10/10/25 $ 574,571
249,844 Syncreon Group BV, Second Out Term Loan, 7.702%
(LIBOR + 600 bps), 4/1/25 217,364
2,300,000 Travelport Finance (Luxembourg) S.a.r.l., First Lien Initial
Term Loan, 7.104% (LIBOR + 500 bps), 5/29/26 2,108,525
-------------
Total Transportation $ 2,900,460
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Floating Rate Trust | Annual Report | 11/30/19
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Utilities -- 2.8%
968,140 APLP Holdings LP, Term Loan, 4.452% (LIBOR +
275 bps), 4/13/23 $ 971,364
1,424,625 Calpine Construction Finance Co. LP, Term B Loan, 4.202%
(LIBOR + 250 bps), 1/15/25 1,429,745
698,318 Compass Power Generation LLC, Tranche B-1 Term Loan,
5.202% (LIBOR + 350 bps), 12/20/24 698,973
2,159,596 Eastern Power LLC (Eastern Covert Midco LLC) (aka TPF II
LC LLC), Term Loan, 5.452% (LIBOR + 375 bps), 10/2/23 2,163,872
997,487 Edgewater Generation LLC, Term Loan, 5.452% (LIBOR +
375 bps), 12/13/25 948,860
2,250,000 Talen Energy Supply LLC, Initial Term Loan 2019, 5.452%
(LIBOR + 375 bps), 7/8/26 2,238,750
125,498 Vistra Operations Co. LLC (fka Tex Operations Co. LLC)
2018, Incremental Term Loan, 3.464% (LIBOR +
175 bps), 12/31/25 125,937
-------------
Total Utilities $ 8,577,501
--------------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE LOAN INTERESTS
(Cost $373,328,459) $ 368,351,636
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.1% of Net Assets
Biotechnology -- 0.0%+
3,271(c) Progenics Pharmaceuticals, Inc. $ 17,075
-------------
Total Biotechnology $ 17,075
--------------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.0%+
209,625+^(c) Medical Card System, Inc. $ 2,096
-------------
Total Health Care Technology $ 2,096
--------------------------------------------------------------------------------------------------------------
Interactive Media & Services -- 0.0%+
1,242(c) Solocal Group $ 789
-------------
Total Interactive Media & Services $ 789
--------------------------------------------------------------------------------------------------------------
Specialty Retail -- 0.0%+
91,346+^(c) Targus Cayman SubCo., Ltd. $ 108,702
-------------
Total Specialty Retail $ 108,702
--------------------------------------------------------------------------------------------------------------
Transportation Infrastructure -- 0.1%
9,505(c) Syncreon Group $ 128,911
-------------
Total Transportation Infrastructure $ 128,911
--------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $384,027) $ 257,573
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 29
Schedule of Investments | 11/30/19 (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITY -- 0.2% of Net Assets
500,000(a) Hertz Fleet Lease Funding LP, Series 2016-1,
Class E, 5.259% (1 Month USD LIBOR + 350 bps),
4/10/30 (144A) $ 501,824
--------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITY
(Cost $503,250) $ 501,824
--------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS --
2.2% of Net Assets
4,100,000(a) Connecticut Avenue Securities Trust, Series 2019-HRP1,
Class B1, 10.958% (1 Month USD LIBOR +
925 bps), 11/25/39 (144A) $ 4,188,150
760,000(a) Freddie Mac Stacr Trust, Series 2019-HQA1, Class B2,
13.958% (1 Month USD LIBOR + 1,225 bps),
2/25/49 (144A) 1,039,233
625,000(a) Morgan Stanley Capital I Trust, Series 2019-BPR,
Class D, 5.765% (1 Month USD LIBOR +
400 bps), 5/15/36 (144A) 624,984
1,000,000 Wells Fargo Commercial Mortgage Trust, Series 2015-C28,
Class E, 3.0%, 5/15/48 (144A) 722,471
--------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $6,237,864) $ 6,574,838
--------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 9.7% of Net Assets
Aerospace/Defense -- 0.3%
1,000,000 Bombardier, Inc., 6.0%, 10/15/22 (144A) $ 1,002,500
-------------
Total Aerospace/Defense $ 1,002,500
--------------------------------------------------------------------------------------------------------------
Airlines -- 0.1%
365,000 Air Canada 2015-1 Class C Pass Through Trust, 5.0%,
3/15/20 (144A) $ 366,250
-------------
Total Airlines $ 366,250
--------------------------------------------------------------------------------------------------------------
Banks -- 0.2%
690,000(d)(e) BNP Paribas SA, 7.625% (5 Year USD Swap Rate +
631 bps) (144A) $ 727,950
-------------
Total Banks $ 727,950
--------------------------------------------------------------------------------------------------------------
Chemicals -- 0.7%
1,000,000 OCI NV, 6.625%, 4/15/23 (144A) $ 1,042,500
758,000 Rain CII Carbon LLC/CII Carbon Corp., 7.25%,
4/1/25 (144A) 733,365
-------------
Total Chemicals $ 1,775,865
--------------------------------------------------------------------------------------------------------------
Coal -- 0.3%
1,000,000 SunCoke Energy Partners LP/SunCoke Energy Partners
Finance Corp., 7.5%, 6/15/25 (144A) $ 905,000
-------------
Total Coal $ 905,000
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Floating Rate Trust | Annual Report | 11/30/19
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Distribution/Wholesale -- 0.3%
845,000 Wolverine Escrow LLC, 8.5%, 11/15/24 (144A) $ 851,659
-------------
Total Distribution/Wholesale $ 851,659
--------------------------------------------------------------------------------------------------------------
Diversified Financial Services -- 1.0%
1,700,000 Avation Capital SA, 6.5%, 5/15/21 (144A) $ 1,763,750
1,000,000 Nationstar Mortgage Holdings, Inc., 9.125%,
7/15/26 (144A) 1,105,000
-------------
Total Diversified Financial Services $ 2,868,750
--------------------------------------------------------------------------------------------------------------
Entertainment -- 0.6%
1,500,000 Enterprise Development Authority, 12.0%,
7/15/24 (144A) $ 1,702,500
-------------
Total Entertainment $ 1,702,500
--------------------------------------------------------------------------------------------------------------
Environmental Control -- 0.3%
1,000,000 Tervita Corp., 7.625%, 12/1/21 (144A) $ 999,890
-------------
Total Environmental Control $ 999,890
--------------------------------------------------------------------------------------------------------------
Forest Products & Paper -- 0.5%
1,515,000 Schweitzer-Mauduit International, Inc., 6.875%,
10/1/26 (144A) $ 1,628,625
-------------
Total Forest Products & Paper $ 1,628,625
--------------------------------------------------------------------------------------------------------------
Healthcare-Services -- 0.2%
500,000 CHS/Community Health Systems, Inc., 6.25%, 3/31/23 $ 493,750
-------------
Total Healthcare-Services $ 493,750
--------------------------------------------------------------------------------------------------------------
Holding Companies-Diversified -- 0.5%
1,520,000 VistaJet Malta Finance plc/XO Management Holding, Inc.,
10.5%, 6/1/24 (144A) $ 1,466,800
-------------
Total Holding Companies-Diversified $ 1,466,800
--------------------------------------------------------------------------------------------------------------
Home Builders -- 0.4%
1,000,000 Taylor Morrison Communities, Inc./Taylor Morrison
Holdings II, Inc., 5.875%, 4/15/23 (144A) $ 1,072,500
-------------
Total Home Builders $ 1,072,500
--------------------------------------------------------------------------------------------------------------
Media -- 0.5%
300,000 CSC Holdings LLC, 5.5%, 4/15/27 (144A) $ 319,125
1,000,000 Sirius XM Radio, Inc., 3.875%, 8/1/22 (144A) 1,020,000
-------------
Total Media $ 1,339,125
--------------------------------------------------------------------------------------------------------------
Mining -- 0.3%
1,000,000 Hudbay Minerals, Inc., 7.625%, 1/15/25 (144A) $ 1,002,500
-------------
Total Mining $ 1,002,500
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 31
Schedule of Investments | 11/30/19 (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Miscellaneous Manufacturers -- 0.4%
1,000,000 EnPro Industries, Inc., 5.75%, 10/15/26 $ 1,060,000
-------------
Total Miscellaneous Manufacturers $ 1,060,000
--------------------------------------------------------------------------------------------------------------
Oil & Gas -- 0.1%
245,000 Gulfport Energy Corp., 6.625%, 5/1/23 $ 184,362
-------------
Total Oil & Gas $ 184,362
--------------------------------------------------------------------------------------------------------------
Oil & Gas Services -- 0.5%
1,000,000 Archrock Partners LP/Archrock Partners Finance Corp.,
6.0%, 10/1/22 $ 1,002,500
1,000,000 FTS International, Inc., 6.25%, 5/1/22 562,500
-------------
Total Oil & Gas Services $ 1,565,000
--------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.3%
1,000,000 Bausch Health Cos., Inc., 5.5%, 11/1/25 (144A) $ 1,045,000
-------------
Total Pharmaceuticals $ 1,045,000
--------------------------------------------------------------------------------------------------------------
Retail -- 0.1%
208,000 Penske Automotive Group, Inc., 3.75%, 8/15/20 $ 208,780
-------------
Total Retail $ 208,780
--------------------------------------------------------------------------------------------------------------
Telecommunications -- 1.5%
1,000,000 Frontier Communications Corp., 8.5%, 4/1/26 (144A) $ 987,500
1,000,000 Frontier Communications Corp., 11.0%, 9/15/25 460,000
1,000,000 Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/
Sprint Spectrum Co. III LLC, 4.738%, 3/20/25 (144A) 1,060,000
2,000,000 Windstream Services LLC/Windstream Finance Corp.,
8.625%, 10/31/25 (144A) 1,890,000
-------------
Total Telecommunications $ 4,397,500
--------------------------------------------------------------------------------------------------------------
Transportation -- 0.6%
1,000,000(a) Golar LNG Partners LP, 6.299% (3 Month USD LIBOR +
440 bps), 5/22/20 $ 985,000
800,000(a) Golar LNG Partners LP, 8.16% (3 Month USD LIBOR +
625 bps), 5/18/21 (144A) 788,013
-------------
Total Transportation $ 1,773,013
--------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $28,747,114) $ 28,437,319
--------------------------------------------------------------------------------------------------------------
INSURANCE-LINKED SECURITIES -- 2.1%
of Net Assets(f)
Event-linked Bonds -- 0.6%
Earthquakes -- California -- 0.1%
250,000(a) Ursa Re, 5.072% (3 Month U.S. Treasury Bill +
350 bps), 5/27/20 (144A) $ 246,600
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Floating Rate Trust | Annual Report | 11/30/19
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Earthquakes -- California -- 0.1%
250,000(a) Ursa Re, Ltd., 7.322% (3 Month U.S. Treasury Bill +
575 bps), 12/10/22 (144A) $ 249,975
--------------------------------------------------------------------------------------------------------------
Multiperil -- U.S. -- 0.4%
400,000(a) Kilimanjaro II Re, 8.063% (6 Month USD LIBOR +
630 bps), 4/20/21 (144A) $ 393,000
250,000(a) Kilimanjaro Re, 8.322% (3 Month U.S. Treasury Bill +
675 bps), 12/6/19 (144A) 249,500
250,000(a) Kilimanjaro Re, 10.822% (3 Month U.S. Treasury Bill +
925 bps), 12/6/19 (144A) 249,975
-------------
$ 892,475
-------------
Total Event-linked Bonds $ 1,389,050
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Face
Amount
USD ($)
--------------------------------------------------------------------------------------------------------------
Collateralized Reinsurance -- 0.2%
Multiperil -- U.S. Regional -- 0.1%
250,000+(c)(g) Ocean View Re 2019, 6/30/20 $ 248,379
--------------------------------------------------------------------------------------------------------------
Multiperil -- Worldwide -- 0.1%
307,363+(g) Kilarney Re 2018, 4/15/20 $ 155,157
242,000+(c)(g) Limestone Re 2019-2, 3/1/23 (144A) 242,024
300,000+(c)(g) Resilience Re, 4/6/20 30
-------------
$ 397,211
--------------------------------------------------------------------------------------------------------------
Windstorm -- Florida -- 0.0%+
250,000+(c)(g) Formby Re 2018, 2/28/20 $ 79,216
86,906+(c)(g) Formby Re 2018-2, 3/31/20 713
-------------
$ 79,929
-------------
Total Collateralized Reinsurance $ 725,519
--------------------------------------------------------------------------------------------------------------
Reinsurance Sidecars -- 1.3%
Multiperil -- U.S. -- 0.1%
250,000+(c)(g) Carnoustie Re 2016, 11/30/20 $ 6,750
250,000+(c)(g) Carnoustie Re 2017, 11/30/21 63,550
250,000+(c)(h) Harambee Re 2018, 12/31/21 38,775
250,000+(c)(h) Harambee Re 2019, 12/31/22 277,375
-------------
$ 386,450
--------------------------------------------------------------------------------------------------------------
Multiperil -- Worldwide -- 1.2%
250,000+(c)(g) Alturas Re, 3/10/22 $ 271,900
250,000+(c)(g) Bantry Re 2016, 3/30/20 20,150
1,270,809+(c)(g) Berwick Re 2018-1, 12/31/21 202,948
907,913+(c)(g) Berwick Re 2019-1, 12/31/22 976,639
20,000+(g) Eden Re II, 3/22/22 (144A) 26,128
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 33
Schedule of Investments | 11/30/19 (continued)
--------------------------------------------------------------------------------------------------------------
Face
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Multiperil -- Worldwide -- (continued)
380,000+(c)(g) Eden Re II, 3/22/23 (144A) $ 391,476
250,000+(g) Gleneagles Re 2016, 11/30/20 7,800
8,000+(g) Limestone Re 2018, 3/1/22 27,406
300,000+(c)(h) Lorenz Re 2018, 7/1/21 64,710
199,590+(c)(h) Lorenz Re 2019, 6/30/22 171,607
300,000+(c)(g) Merion Re 2018-2, 12/31/21 299,400
400,000+(g) Pangaea Re 2016-1, 11/30/20 1,097
400,000+(c)(g) Pangaea Re 2017-1, 11/30/21 6,440
400,000+(c)(g) Pangaea Re 2018-1, 12/31/21 23,520
400,000+(c)(g) Pangaea Re 2018-3, 7/1/22 8,280
327,699+(c)(g) Pangaea Re 2019-1, 2/1/23 325,995
294,125+(c)(g) Pangaea Re 2019-3, 7/1/23 286,096
250,000+(c)(g) Sector Re V, Series 8, Class C, 12/1/23 (144A) 197,910
400,000+(c)(g) St. Andrews Re 2017-1, 2/1/20 27,120
347,597+(c)(g) St. Andrews Re 2017-4, 6/1/20 34,203
253,645+(c)(g) Woburn Re 2018, 12/31/21 73,532
244,914+(c)(g) Woburn Re 2019, 12/31/22 266,254
-------------
$ 3,710,611
-------------
Total Reinsurance Sidecars $ 4,097,061
--------------------------------------------------------------------------------------------------------------
TOTAL INSURANCE-LINKED SECURITIES
(Cost $6,577,044) $ 6,211,630
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($)
--------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS --
7.8% of Net Assets
20,000,000(i) U.S. Treasury Bills, 12/17/19 $ 19,986,790
3,000,000(i) U.S. Treasury Bills, 12/24/19 2,997,095
--------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $22,983,243) $ 22,983,885
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANIES -- 1.7% of Net Assets
40,000 BlackRock Floating Rate Income Strategies Fund, Inc. $ 516,800
30,000 Eaton Vance Floating-Rate, Income Trust 398,400
50,000 First Trust Senior Floating Rate, Income Fund II 608,000
50,000 Invesco Senior, Income Trust 209,500
42,000 Invesco Senior Loan ETF (formerly, PowerShares Senior
Loan Portfolio) 943,320
27,000 iShares iBoxx High Yield Corporate Bond ETF 2,347,380
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT COMPANIES
(Cost $5,127,287) $ 5,023,400
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Floating Rate Trust | Annual Report | 11/30/19
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 3.8%
of Net Assets
REPURCHASE AGREEMENTS -- 3.8%
2,640,000 $2,640,000 ScotiaBank, 1.63%, dated 11/30/19 plus
accrued interest on 12/1/19 collateralized by the following:
$2,101,567 Federal National Mortgage Association,
2.5% -- 4%, 2/01/32 -- 1/1/48
$591,612, U.S.Treasury Notes, 2.0%, 5/31/24 $ 2,640,000
2,480,000 $2,480,000 RBC Capital Market LLC 1.63%, dated
11/30/19 plus accrued interest on 12/1/19
collateralized by following:
$573,806 Federal National Mortgage Association,
3.0%, 11/1/34
$1,914,008 Federal National Mortgage Association,
3.0% -- 4.0%, 11/1/32 -- 3/1/49
$42,130 Government National Mortgage Association,
5.0%, 11/20/48 2,480,000
3,290,000 $3,290,000 TD Securities USA LLC, 1.62%, dated
11/30/19 plus accrued interest on 12/1/19
collateralized by: $3,355,820 U.S. Treasury Notes,
1.84%, 10/31/21 3,290,000
2,610,000 $2,610,000 TD Securities USA LLC, 1.64%, dated
11/30/19 plus accrued interest on 12/1/19
collateralized by: $2,662,200 Federal National Mortgage
Association, 3.50%, 1/1/48 2,610,000
--------------
$ 11,020,000
---------------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $11,020,000) $ 11,020,000
---------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED
ISSUERS -- 153.2%
(Cost $454,908,288) $ 449,362,105
---------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (53.2)% $(156,631,821)
---------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 292,730,284
===============================================================================================================
bps Basis Points.
LIBOR London Interbank Offered Rate.
PRIME U.S. Federal Funds Rate.
(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, 2019, the value of these securities amounted to
$32,803,658, or 11.2% of net assets.
+ Amount rounds to less than 0.1%.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 35
Schedule of Investments | 11/30/19 (continued)
* Senior secured floating rate loan interests in which the Trust invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending rate plus a premium. These base lending
rates are generally (i) the lending rate offered by one or more major
European banks, such as LIBOR, (ii) the prime rate offered by one or
more major United States banks, (iii) the rate of a certificate of
deposit or (iv) other base lending rates used by commercial lenders.
The interest rate shown is the rate accruing at November 30, 2019.
+ Security that used significant unobservable inputs to determine its
value.
^ Security is valued using fair value methods (other than supplied by
independent pricing services).
(a) Floating rate note. Coupon rate, reference index and spread shown at
November 30, 2019.
(b) This term loan will settle after November 30, 2019, at which time the
interest rate will be determined.
(c) Non-income producing security.
(d) The interest rate is subject to change periodically. The interest rate
and/or reference index and spread shown at November 30, 2019.
(e) Security is perpetual in nature and has no stated maturity date.
(f) Securities are restricted as to resale.
(g) Issued as participation notes.
(h) Issued as preference shares.
(i) Security issued with a zero coupon. Income is recognized through
accretion of discount.
SWAP CONTRACTS
CENTRALLY CLEARED CREDIT DEFAULT SWAP CONTRACTS -- SELL PROTECTION
----------------------------------------------------------------------------------------------------------------------
Reference Annual Unrealized
Notional Obligation/ Pay/ Fixed Expiration Premiums Appreciation Market
Amount ($)(1) Index Receive(2) Rate Date Paid (Depreciation) Value
----------------------------------------------------------------------------------------------------------------------
2,030,000 Markit CDX North Receive 5.00% 12/20/24 $139,968 $ 36,646 $ 176,614
America High
Yield Index
1,012,000 Markit CDX North Receive 5.00% 6/20/20 54,046 (40,300) 13,746
America High Yield
Index Series 24
1,036,950 Markit CDX North Receive 5.00% 12/20/20 57,505 (26,258) 31,247
America High Yield
Index Series 25
10,177,200 Markit CDX North Receive 5.00% 6/20/24 625,715 291,272 916,987
America High Yield
Index Series 32
----------------------------------------------------------------------------------------------------------------------
TOTAL CENTRALLY CLEARED CREDIT DEFAULT
SWAP CONTRACTS -- SELL PROTECTION $877,234 $261,360 $1,138,594
======================================================================================================================
TOTAL SWAP CONTRACTS $877,234 $261,360 $1,138,594
======================================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Pays quarterly
The accompanying notes are an integral part of these financial statements.
36 Pioneer Floating Rate Trust | Annual Report | 11/30/19
Principal amounts are denominated in U.S. dollars ("USD") unless otherwise
noted.
At November 30, 2019, the net unrealized depreciation on investments based on
cost for federal tax purposes of $456,251,476 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 3,984,664
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (9,735,441)
-----------
Net unrealized depreciation $(5,750,777)
===========
Purchases and sales of securities (excluding temporary cash investments) for
the year ended November 30, 2019, aggregated $200,972,302 and $212,580,429,
respectively.
The Trust is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Amundi Pioneer Asset
Management, Inc. (the "Adviser") serves as the Trust's investment adviser, as
set forth in Rule 17a-7 under the Investment Company Act of 1940, pursuant to
procedures adopted by the Board of Trustees. Under these procedures, cross
trades are effected at current market prices. During the year ended November
30, 2019, the Trust did not engage in any cross trade activity.
Various inputs are used in determining the value of the Trust's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risks,
etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments). See Notes to
Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 37
Schedule of Investments | 11/30/19 (continued)
The following is a summary of the inputs used as of November 30, 2019, in
valuing the Trust's investments:
--------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------------------
Senior Secured Floating Rate
Loan Interests $ -- $368,351,636 $ -- $368,351,636
Common Stocks
Health Care Technology -- -- 2,096 2,096
Specialty Retail -- -- 108,702 108,702
Transportation Infrastructure -- 128,911 -- 128,911
All Other Common Stocks 17,864 -- -- 17,864
Asset Backed Security -- 501,824 -- 501,824
Collateralized Mortgage Obligations -- 6,574,838 -- 6,574,838
Corporate Bonds -- 28,437,319 -- 28,437,319
Insurance-Linked Securities
Collateralized Reinsurance
Multiperil - U.S. Regional -- -- 248,379 248,379
Multiperil - Worldwide -- -- 397,211 397,211
Windstorm - Florida -- -- 79,929 79,929
Reinsurance Sidecars
Multiperil - U.S. -- -- 386,450 386,450
Multiperil - Worldwide -- -- 3,710,611 3,710,611
All Other Insurance-Linked
Securities -- 1,389,050 -- 1,389,050
U.S. Government and
Agency Obligations -- 22,983,885 -- 22,983,885
Investment Companies 5,023,400 -- -- 5,023,400
Repurchase Agreements -- 11,020,000 -- 11,020,000
--------------------------------------------------------------------------------------------------------
Total Investments in Securities $5,041,264 $439,387,463 $4,933,378 $449,362,105
========================================================================================================
Other Financial Instruments
Swap contracts, at value $ -- $ 1,138,594 $ -- $ 1,138,594
--------------------------------------------------------------------------------------------------------
Total Other Financial Instruments $ -- $ 1,138,594 $ -- $ 1,138,594
========================================================================================================
The accompanying notes are an integral part of these financial statements.
38 Pioneer Floating Rate Trust | Annual Report | 11/30/19
----------------------------------------------------------------------------------------------------------------------------
Change in
Balance Realized unrealized Accrued Balance
as of gain appreciation discounts/ as of
11/30/18 (loss)(1) (depreciation)(2) Purchases Sales premiums 11/30/19
----------------------------------------------------------------------------------------------------------------------------
Senior Secured
Floating Rate
Loan Interests
Insurance $ 692,754 $(1,201) $ 352,517 $ -- $(1,065,775) $21,705 $ --
Common Stocks
Health Care
Technology 2,096 -- -- -- -- -- 2,096
Specialty Retail 190,000 -- 6,209 -- (87,507) -- 108,702
Insurance-Linked
Securities
Collateralized
Reinsurance
Earthquakes -
California 550,000 -- (24,048) -- (525,952) -- --
Multiperil -
U.S. Regional -- -- 11,494 236,885 -- -- 248,379
Multiperil -
Worldwide 544,491 -- (85,147) 277,632 (339,765) -- 397,211
Windstorms -
Florida 337,986 -- 8,048 86,906 (353,011) -- 79,929
Windstorm -
U.S. Regional 248,750 -- (14,272) -- (234,478) -- --
Industry Loss
Warranties
Multiperil - U.S. 400,469 (1,836) (24,731) 27,574 (401,476) -- --
Reinsurance Sidecars
Multiperil - U.S. 295,675 -- 28,901 250,000 (188,126) -- 386,450
Multiperil -
Worldwide 3,493,097 20,150 (135,959) 2,964,849 (2,631,526) -- 3,710,611
----------------------------------------------------------------------------------------------------------------------------
Total $6,755,318 $17,113 $ 123,012 $3,843,846 $(5,827,616) $21,705 $4,933,378
============================================================================================================================
(1) Realized gain (loss) on these securities is included in the realized gain
(loss) from investments on the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) from investments on
the Statement of Operations.
* Transfers are calculated on the beginning of period value. For the year
ended November 30, 2019, there were no transfers between Levels 1, 2 and
3.
Net change in unrealized appreciation (depreciation) of Level 3 investments
still held and considered Level 3 at November 30, 2019: $(124,205)
---------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 39
Statement of Assets and Liabilities | 11/30/19
ASSETS:
Investments in unaffiliated issuers, at value (cost $454,908,288) $449,362,105
Cash 4,920,837
Foreign currencies, at value (cost $34,135) 31,145
Swaps collateral 747,907
Swap contracts, at value (net premiums paid $877,234) 1,138,594
Receivables --
Investment securities sold 4,148,135
Dividends 33,525
Interest 1,332,789
Other assets 33
-----------------------------------------------------------------------------------------------
Total assets $461,715,070
-----------------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Credit agreement $139,450,000
Investment securities purchased 27,991,066
Trustees' fees 6,800
Interest expense 114,613
Due to broker for swaps 1,133,779
Variation margin for centrally cleared swap contracts 1,464
Unrealized depreciation on unfunded loan commitments 4,403
Due to affiliates 58,027
Accrued expenses 224,634
-----------------------------------------------------------------------------------------------
Total liabilities $168,984,786
-----------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $344,939,989
Distributable earnings (loss) (52,209,705)
-----------------------------------------------------------------------------------------------
Net assets $292,730,284
-----------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
No par value
based on $292,730,284/24,738,174 shares $ 11.83
===============================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer Floating Rate Trust | Annual Report | 11/30/19
Statement of Operations
FOR THE YEAR ENDED 11/30/19
INVESTMENT INCOME:
Interest from unaffiliated issuers $ 26,111,572
Dividends from unaffiliated issuers 466,380
--------------------------------------------------------------------------------------------------
Total investment income $26,577,952
--------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 3,050,189
Administrative expense 202,494
Transfer agent fees 14,582
Shareowner communications expense 35,600
Custodian fees 77,066
Professional fees 111,758
Printing expense 40,270
Pricing fees 56,305
Trustees' fees 19,427
Insurance expense 5,412
Interest expense 4,749,000
Miscellaneous 221,374
--------------------------------------------------------------------------------------------------
Total expenses $ 8,583,477
--------------------------------------------------------------------------------------------------
Net investment income $17,994,475
--------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $(10,073,586)
Swap contracts 187,247 $(9,886,339)
--------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers $ 4,650,081
Swap contracts 256,916
Unfunded loan commitments (4,585)
Other assets and liabilities denominated
in foreign currencies (824) $ 4,901,588
--------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $(4,984,751)
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $13,009,724
==================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 41
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------------------
Year Year
Ended Ended
11/30/19 11/30/18
------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 17,994,475 $ 18,289,892
Net realized gain (loss) on investments (9,886,339) (3,932,753)
Change in net unrealized appreciation (depreciation)
on investments 4,901,588 (5,837,701)
------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 13,009,724 $ 8,519,438
------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
($0.74 and $0.72 per share, respectively) $(18,182,558) $(17,811,485)
------------------------------------------------------------------------------------------------------
Total distributions to shareowners $(18,182,558) $(17,811,485)
------------------------------------------------------------------------------------------------------
Net decrease in net assets $ (5,172,834) $ (9,292,047)
NET ASSETS:
Beginning of year $297,903,118 $307,195,165
------------------------------------------------------------------------------------------------------
End of year $292,730,284 $297,903,118
======================================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer Floating Rate Trust | Annual Report | 11/30/19
Statement of Cash Flows
FOR THE YEAR ENDED 11/30/19
Cash Flows From Operating Activities:
Net increase in net assets resulting from operations $ 13,009,724
----------------------------------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets resulting from operations
to net cash, restricted cash and foreign currencies from operating activities:
Purchases of investment securities $(496,387,130)
Proceeds from disposition and maturity of investment securities 512,643,941
Net sales of temporary cash investments (6,400,000)
Net accretion and amortization of discount/premium on investment securities (1,021,748)
Change in unrealized depreciation on investments in unaffiliated issuers (4,650,081)
Change in unrealized depreciation on unfunded loan commitments 4,585
Change in unrealized appreciation on swap contracts (256,916)
Change in unrealized depreciation on other assets and liabilities denominated
in foreign currencies 824
Net realized loss on investments in unaffiliated issuers 10,073,586
Net premiums paid on swap contracts (762,066)
Increase in interest receivable (12,966)
Decrease in other assets 1
Increase in cash due to broker for swaps 1,015,805
Increase in due to affiliates 41,592
Increase in trustees' fees payable 2,651
Increase in accrued expenses payable 91,039
Decrease in interest expenses payable (156,887)
Decrease in variation margin for swap contracts 1,700
----------------------------------------------------------------------------------------------------------
Net cash, restricted cash and foreign currencies from operating activities $ 27,237,654
----------------------------------------------------------------------------------------------------------
Cash Flows from Financing Activities:
Distributions to shareowners $ (19,666,848)
Payments on borrowings (4,000,000)
----------------------------------------------------------------------------------------------------------
Net cash, restricted cash and foreign currencies used in financing activities $ (23,666,848)
----------------------------------------------------------------------------------------------------------
Effect of Foreign Exchange Fluctuations on Cash:
Effect of foreign exchange fluctuations on cash $ (824)
----------------------------------------------------------------------------------------------------------
Cash, Restricted Cash and Foreign Currencies:
Beginning of period* $ 2,129,907
----------------------------------------------------------------------------------------------------------
End of period * $ 5,699,889
----------------------------------------------------------------------------------------------------------
Cash Flow Information:
Cash paid for interest $ 4,905,887
==========================================================================================================
* The following table provides a reconciliation of cash, restricted cash and
foreign currencies reported within Statement of Assets and Liabilities
that sum to the total of the same such amounts shown in the Statement of
Cash Flows:
---------------------------------------------------------------------------------------------
Year Ended Year Ended
11/30/19 11/30/18
---------------------------------------------------------------------------------------------
Cash $4,920,837 $1,894,760
Foreign currencies, at value 31,145 31,969
Swaps collateral 747,907 203,178
---------------------------------------------------------------------------------------------
Total cash, restricted cash and foreign currencies
shown in the Statement of Cash Flows $5,699,889 $2,129,907
=============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 43
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/19 11/30/18 11/30/17 11/30/16* 11/30/15*
------------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 12.04 $ 12.42 $ 12.50 $ 12.30 $ 12.82
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 0.73 $ 0.74 $ 0.71 $ 0.77 $ 0.76
Net realized and unrealized gain (loss) on investments (0.20) (0.40) (0.06) 0.15 (0.58)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareowners from:
Net investment income $ -- $ -- $ -- $ -- $ --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.53 $ 0.34 $ 0.65 $ 0.92 $ 0.18
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners from:
Net investment income and previously undistributed net investment income $ (0.74)(b) $ (0.72) $ (0.73)(b) $ (0.72) $ (0.70)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.21) $ (0.38) $ (0.08) $ 0.20 $ (0.52)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.83 $ 12.04 $ 12.42 $ 12.50 $ 12.30
------------------------------------------------------------------------------------------------------------------------------------
Market value, end of period $ 10.53 $ 10.40 $ 11.47 $ 11.78 $ 10.83
====================================================================================================================================
Total return at net asset value (c) 5.38% 3.34% 5.55% 8.31% 1.96%
Total return at market value (c) 8.59% (3.34)% 3.43% 15.92% 1.31%
Ratios to average net assets of shareowners:
Total expenses plus interest expense (d)(e) 2.90% 2.56% 2.21% 1.96% 1.81%
Net investment income before preferred share distributions 6.08% 5.98% 5.62% 6.32% 6.00%
Net investment income available to shareowners 6.08% 5.98% 5.62% 6.32% 6.00%
Portfolio turnover rate 48% 34% 75% 52% 38%
Net assets, end of period (in thousands) $292,730 $297,903 $307,195 $309,308 $304,357
The accompanying notes are an integral part of these financial statements.
44 Pioneer Floating Rate Trust | Annual Report | 11/30/19
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/19 11/30/18 11/30/17 11/30/16* 11/30/15*
------------------------------------------------------------------------------------------------------------------------------------
Total amount of debt outstanding (in thousands) $139,450 $143,450 $143,450 $143,450 $143,450
Asset coverage per $1,000 of indebtedness $ 3,099 $ 3,077 $ 3,141 $ 3,156 $ 3,023
====================================================================================================================================
* The Trust was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) The amount of distributions made to shareowners during the period was in
excess of the net investment income earned by the Trust during the period.
The Trust has accumulated undistributed net investment income which is the
part of the Trust's net asset value ("NAV"). A portion of this accumulated
net investment income was distributed to shareowners during the period.
(c) Total investment return is calculated assuming a purchase of common shares
at the current net asset value or market value on the first day and a sale
at the current net asset value or market value on the last day of the
periods reported. Dividends and distributions, if any, are assumed for
purposes of this calculation to be reinvested at prices obtained under the
Trust's dividend reinvestment plan. Total investment return does not
reflect brokerage commissions. Past performance is not a guarantee of
future results.
(d) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(e) Includes interest expense of 1.60%, 1.35%, 0.95%, 0.63% and 0.51%,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 45
Notes to Financial Statements | 11/30/19
1. Organization and Significant Accounting Policies
Pioneer Floating Rate Trust (the "Trust") was organized as a Delaware statutory
trust on October 6, 2004. Prior to commencing operations on December 28, 2004,
the Trust had no operations other than matters relating to its organization and
registration as a closed-end management investment company under the Investment
Company Act of 1940, as amended. The Trust is a diversified fund. The
investment objective of the Trust is to provide a high level of current income
and the Trust may, as a secondary objective, also seek preservation of capital
to the extent consistent with its investment objective of high current income.
Amundi Pioneer Asset Management, Inc., an indirect, wholly owned subsidiary of
Amundi and Amundi's wholly owned subsidiary, Amundi USA, Inc., serves as the
Trust's investment adviser (the "Adviser"). Amundi Pioneer Distributor, Inc.,
an affiliate of Amundi Pioneer Asset Management, Inc., serves as the Trust's
distributor (the "Distributor").
In November 2016, the Financial Account Standard Board (FASB) issued Accounting
Standards Update 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash
("ASU 2016-18"), which is effective for fiscal years beginning after December
15, 2017 and interim periods within those fiscal years. The fund adopted ASU
2016-18 effective with the beginning of the current reporting period, which
resulted in changes to the presentation of restricted cash in the Trust's
Statement of Cash Flows and additional disclosures regarding the nature of the
restrictions on cash and restricted cash.
In August 2018, the Securities and Exchange Commission ("SEC") released a
Disclosure Update and Simplification Final Rule. The Final Rule amends
Regulation S-X disclosures requirements to conform them to U.S. Generally
Accepted Accounting Principles ("U.S. GAAP") for investment companies. The
Trust's financial statements were prepared in compliance with the new
amendments to Regulation S-X.
The Trust is an investment company and follows investment company accounting
and reporting guidance under U.S. GAAP. U.S. GAAP requires the management of
the Trust to make estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of income,
expenses and gain or loss on investments during the reporting period. Actual
results could differ from those estimates.
46 Pioneer Floating Rate Trust | Annual Report | 11/30/19
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements:
A. Security Valuation
The net asset value of the Trust is computed once daily, on each day the
New York Stock Exchange ("NYSE") is open, as of the close of regular
trading on the NYSE.
Loan interests are valued in accordance with guidelines established by the
Board of Trustees at the mean between the last available bid and asked
prices from one or more brokers or dealers as obtained from Loan Pricing
Corporation, an independent third party pricing service. If price
information is not available from Loan Pricing Corporation, or if the
price information is deemed to be unreliable, price information will be
obtained from an alternative loan interest pricing service. If no reliable
price quotes are available from either the primary or alternative pricing
service, broker quotes will be solicited.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to
supply prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Event-linked bonds are valued at the bid price obtained from an
independent third party pricing service. Other insurance-linked securities
(including reinsurance sidecars, collateralized reinsurance and industry
loss warranties) may be valued at the bid price obtained from an
independent pricing service, or through a third party using a pricing
matrix, insurance industry valuation models, or other fair value methods
or techniques to provide an estimated value of the instrument.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities
for which sale prices are not available, generally are valued using the
mean between the last
Pioneer Floating Rate Trust | Annual Report | 11/30/19 47
bid and asked prices or, if both last bid and asked prices are not
available, at the last quoted bid price. Last sale and bid and asked
prices are provided by independent third party pricing services. In the
case of equity securities not traded on an exchange, prices are typically
determined by independent third party pricing services using a variety of
techniques and methods.
The value of foreign securities is translated into U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party
pricing source. Trading in non-U.S. equity securities is substantially
completed each day at various times prior to the close of the NYSE. The
values of such securities used in computing the net asset value of the
Trust's shares are determined as of such times. The Trust may use a fair
value model developed by an independent pricing service to value non-U.S.
equity securities.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts), are valued at the dealer quotations
obtained from reputable International Swap Dealers Association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such funds' net asset value. Shares of
exchange-listed closed-end funds are valued by using the last sale price
on the principal exchange where they are traded.
Repurchase agreements are valued at par. Cash may include overnight time
deposits at approved financial institutions.
Securities or loan interests for which independent pricing services or
broker-dealers are unable to supply prices or for which market prices
and/or quotations are not readily available or are considered to be
unreliable are valued by a fair valuation team comprised of certain
personnel of the Adviser pursuant to procedures adopted by the Trust's
Board of Trustees. The Adviser's fair valuation team uses fair value
methods approved by the Valuation Committee of the Board of Trustees. The
Adviser's fair valuation team is responsible for monitoring developments
that may impact fair valued securities and for discussing and assessing
fair values on an ongoing basis, and at least quarterly, with the
Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Trust may use fair value
methods if it is determined that a significant event has occurred after
the close of the exchange or market on which the security trades and prior
to the determination of the Trust's net asset value. Examples of a
significant event might include political or economic news, corporate
restructurings, natural
48 Pioneer Floating Rate Trust | Annual Report | 11/30/19
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, 2019, two securities were valued using fair value methods
(in addition to securities valued using prices supplied by independent
pricing services, broker-dealers or using a third party insurance pricing
model) representing 0.04% of net assets. The value of these fair valued
securities were $110,798.
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Trust becomes aware of the ex-dividend
data in the exercise of reasonable diligence.
Interest income, including interest on income-bearing cash accounts, is
recorded on the accrual basis. Dividend and interest income are reported
net of unrecoverable foreign taxes withheld at the applicable country
rates and net of income accrued on defaulted securities.
Interest and dividend income payable by delivery of additional shares is
reclassified as PIK (payment-in-kind) income upon receipt and is included
in interest and dividend income, respectively.
All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on
foreign currency exchange 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 on 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.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 49
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 net taxable income and net realized capital gains,
if any, to its shareowners. Therefore, no provision for federal income
taxes is required. As of November 30, 2019, the Trust did not accrue any
interest or penalties with respect to uncertain tax positions, which, if
applicable, would be recorded as an income tax expense on the Statement of
Operations. Tax returns filed within the prior three years remain subject
to examination by federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary over distributions 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, 2019, the Trust reclassified $18,749,171 to increase
distributable earnings and $18,749,171 to decrease paid-in capital to
reflect permanent book/tax differences. These adjustments have no impact
on net assets or the results of operations.
The amount of capital loss carryforward that expired unused in 2019 was
$18,747,865.
The tax character of distributions paid during the years ended November
30, 2019 and November 30, 2018, were as follows:
--------------------------------------------------------------------------
2019 2018
--------------------------------------------------------------------------
Distributions paid from:
Ordinary income $18,182,558 $17,811,485
--------------------------------------------------------------------------
Total $18,182,558 $17,811,485
==========================================================================
50 Pioneer Floating Rate Trust | Annual Report | 11/30/19
The following shows the components of distributable earnings (losses) on a
federal income tax basis at November 30, 2019:
--------------------------------------------------------------------------
2019
--------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 693,150
Capital loss carryforward (47,144,686)
Other book/tax temporary differences --
Unrealized depreciation (5,758,169)
--------------------------------------------------------------------------
Total $(52,209,705)
==========================================================================
The difference between book basis and tax basis unrealized depreciation is
attributable to the tax treatment of premium and amortization, adjustments
relating to insurance linked securities, the tax adjustments relating to
credit default swaps and partnerships.
E. 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's
investments in foreign markets and countries with limited developing
markets may subject the Trust to a greater degree of risk than investments
in a developed market. These risks include disruptive political or
economic conditions and the imposition of adverse governmental laws or
currency exchange restrictions.
The value of securities held by the Trust may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real
or perceived adverse economic, political or regulatory conditions,
inflation, changes in interest rates, lack of liquidity in the bond
markets or adverse investor sentiment. In the past several years,
financial markets have experienced increased volatility, depressed
valuations, decreased liquidity and heightened uncertainty. These
conditions may continue, recur, worsen or spread. A general rise in
interest rates could adversely affect the price and liquidity of
fixed-income securities and could also result in increased redemptions
from the Trust.
The Trust invests in below-investment-grade (high-yield) debt securities
and preferred stocks. Some of these high-yield securities may be
convertible into equity securities of the issuer. Debt securities rated
below-investment-grade are commonly referred to as "junk bonds" and are
considered speculative. These securities involve greater risk of loss, are
subject to greater price volatility, and are less liquid, especially
during periods of economic uncertainty or change, than higher rated debt
securities.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 51
Certain instruments held by the Trust pay an interest rate based on the
London Interbank Offered Rate ("LIBOR"), which is the average offered rate
for various maturities of short-term loans between certain major
international banks. LIBOR is expected to be phased out by the end of
2021. While the effect of the phase out cannot yet be determined, it may
result in, among other things, increased volatility or illiquidity in
markets for instruments based on LIBOR and changes in the value of such
instruments.
Certain securities in which the Trust invests, including floating rate
loans, once sold, may not settle for an extended period (for example,
several weeks or even longer). The Trust will not receive its sale
proceeds until that time, which may constrain the Trust's ability to meet
its obligations. The Trust may invest in securities of issuers that are in
default or that are in bankruptcy. The value of collateral, if any,
securing a floating rate loan can decline or may be insufficient to meet
the issuer's obligations or may be difficult to liquidate. No active
trading market may exist for many floating rate loans, and many loans are
subject to restrictions on resale. Any secondary market may be subject to
irregular trading activity and extended settlement periods. There is less
readily available, reliable information about most floating rate loans
than is the case for many other types of securities. Normally, the Adviser
will seek to avoid receiving material, non-public information about the
issuer of a loan either held by, or considered for investment by, the
Trust, and this decision could adversely affect the Trust's investment
performance. Loans may not be considered "securities," and purchasers,
such as the Trust, therefore may not be entitled to rely on the anti-fraud
protections afforded by federal securities laws. 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 illiquid securities. Illiquid securities are securities that
the Trust reasonably expects cannot be sold or disposed of in current
market conditions in seven calendar days or less without the sale or
disposition significantly changing the market value of the securities.
With the increased use of technologies such as the Internet to conduct
business, the Trust is susceptible to operational, information security
and related risks. While the Trust's Adviser has established business
continuity plans in the event of, and risk management systems to prevent,
limit or mitigate, such cyber-attacks, there are inherent limitations in
such plans and systems, including the possibility that certain risks have
not been identified. Furthermore, the Trust cannot control the
cybersecurity plans and systems put in place by service providers to the
Trust such as Brown Brothers
52 Pioneer Floating Rate Trust | Annual Report | 11/30/19
Harriman & Co., the Trust's custodian and accounting agent, and American
Stock & Trust Company ("AST"), the Trust's transfer agent. In addition,
many beneficial owners of Trust shares hold them through accounts at
broker-dealers, retirement platforms and other financial market
participants over which neither the Trust nor Amundi Pioneer exercises
control. Each of these may in turn rely on service providers to them,
which are also subject to the risk of cyber-attacks. Cybersecurity
failures or breaches at Amundi Pioneer or the Trust's service providers or
intermediaries have the ability to cause disruptions and impact business
operations, potentially resulting in financial losses, interference with
the Trust's ability to calculate its net asset value, impediments to
trading, the inability of Trust shareowners to effect share purchases or
redemptions or receive distributions, loss of or unauthorized access to
private shareowner information and violations of applicable privacy and
other laws, regulatory fines, penalties, reputational damage, or
additional compliance costs. Such costs and losses may not be covered
under any insurance. In addition, maintaining vigilance against
cyber-attacks may involve substantial costs over time, and system
enhancements may themselves be subject to cyber-attacks.
F. Insurance-Linked Securities ("ILS")
The Trust invests in ILS. The Trust could lose a portion or all of the
principal it has invested in an ILS, and the right to additional interest
or dividend payments with respect to the security, upon the occurrence of
one or more trigger events, as defined within the terms of an
insurance-linked security. Trigger events, generally, are hurricanes,
earthquakes, or other natural events of a specific size or magnitude that
occur in a designated geographic region during a specified time period,
and/or that involve losses or other metrics that exceed a specific amount.
There is no way to accurately predict whether a trigger event will occur,
and accordingly, ILS carry significant risk. The Trust is entitled to
receive principal, and interest and/or dividend payments so long as no
trigger event occurs of the description and magnitude specified by the
instrument. In addition to the specified trigger events, ILS may expose
the Trust to other risks, including but not limited to issuer (credit)
default, adverse regulatory or jurisdictional interpretations and adverse
tax consequences.
The Trust's investments in ILS may include event-linked bonds. ILS also
may include special purpose vehicles ("SPVs") or similar instruments
structured to comprise a portion of a reinsurer's catastrophe-oriented
business, known as quota share instruments (sometimes referred to as
reinsurance sidecars), or to provide reinsurance relating to specific
risks to insurance or reinsurance companies through a collateralized
instrument, known as collateralized reinsurance. Structured reinsurance
investments also may include industry
Pioneer Floating Rate Trust | Annual Report | 11/30/19 53
loss warranties ("ILWs"). A traditional ILW takes the form of a bilateral
reinsurance contract, but there are also products that take the form of
derivatives, collateralized structures, or exchange-traded instruments.
Where the ILS are based on the performance of underlying reinsurance
contracts, the Trust has limited transparency into the individual
underlying contracts, and therefore must rely upon the risk assessment and
sound underwriting practices of the issuer. Accordingly, it may be more
difficult for the Adviser to fully evaluate the underlying risk profile of
the Trust's structured reinsurance investments, and therefore the Trust's
assets are placed at greater risk of loss than if the Adviser had more
complete information. Structured reinsurance instruments generally will be
considered illiquid securities by the Trust. These securities may be
difficult to purchase, sell or unwind. Illiquid securities also may be
difficult to value. If the Trust is forced to sell an illiquid asset, the
Trust may be forced to sell at a loss.
G. Repurchase Agreements
Repurchase agreements are arrangements under which the Trust purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Trust at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Trust. The securities purchased serve
as the Trust's collateral for the obligation of the counterparty to
repurchase the securities. The value of the collateral, including accrued
interest, is required to be equal to or in excess of the repurchase price.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Trust's custodian or a sub-custodian of the
Trust. The Adviser is responsible for determining that the value of the
collateral remains at least equal to the repurchase price. In the event of
a default by the counterparty, the Trust is entitled to sell the
securities, but the Trust may not be able to sell them for the price at
which they were purchased, thus causing a loss to the Trust. Additionally,
if the counterparty becomes insolvent, there is some risk that the Trust
will not have a right to the securities, or the immediate right to sell
the securities.
Open repurchase agreements at November 30, 2019, are disclosed in the
Schedule of Investments.
H. Credit Default Swap Contracts
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event or an underlying
reference obligation, which may be a single security or a basket or index
of securities. The Trust may buy or sell credit default swap contracts to
seek to increase the Trust's income, or to attempt to hedge the risk of
default on portfolio securities. A credit default swap index is used to
hedge risk or take a position on a basket of credit entities or indices.
54 Pioneer Floating Rate Trust | Annual Report | 11/30/19
As a seller of protection, the Trust would be required to pay the notional
(or other agreed-upon) value of the referenced debt obligation to the
counterparty in the event of a default by a U.S. or foreign corporate
issuer of a debt obligation, which would likely result in a loss to the
Trust. In return, the Trust would receive from the counterparty a periodic
stream of payments during the term of the contract, provided that no event
of default occurred. The maximum exposure of loss to the seller would be
the notional value of the credit default swaps outstanding. If no default
occurs, the Trust would keep the stream of payments and would have no
payment obligation. The Trust may also buy credit default swap contracts
in order to hedge against the risk of default of debt securities, in which
case the Trust would function as the counterparty referenced above.
As a buyer of protection, the Trust makes an upfront or periodic payment
to the protection seller in exchange for the right to receive a contingent
payment. An upfront payment made by the Trust, as the protection buyer, is
recorded within the "Swap contracts, at value" line item on the Statement
of Assets and Liabilities. Periodic payments received or paid by the Trust
are recorded as realized gains or losses on the Statement of Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources, and the change in value, if any, is
recorded within the "Swap contracts, at value" line item on the Statement
of Assets and Liabilities. Payments received or made as a result of a
credit event or upon termination of the contract are recognized, net of
the appropriate amount of the upfront payment, as realized gains or losses
on the Statement of Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Trust had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the
Trust is a protection buyer and no credit event occurs, it will lose its
investment. If the Trust is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Trust,
together with the periodic payments received, may be less than the amount
the Trust pays to the protection buyer, resulting in a loss to the Trust.
In addition, obligations under sell protection credit default swaps may be
partially offset by net amounts received from settlement of buy protection
credit default swaps entered into by the Trust for the same reference
obligation with the same counterparty.
Certain swap contracts that are cleared through a central clearinghouse
are referred to as centrally cleared swaps. All payments made or received
by the Trust are pursuant to a centrally cleared swap contract with the
central clearing party rather than the original counterparty. Upon
entering into a centrally cleared swap contract, the Trust is required to
make an initial
Pioneer Floating Rate Trust | Annual Report | 11/30/19 55
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as "Variation margin for
centrally cleared swaps" on the Statement of Assets and Liabilities. Cash
received from or paid to the broker related to previous margin movement is
held in a segregated account at the broker and is recorded as either "Due
from broker for swaps" or "Due to broker for swaps" on the Statement of
Assets and Liabilities. The amount of cash deposited with a broker as
collateral at November 30, 2019, is recorded as "Swaps collateral" on the
Statement of Assets and Liabilities.
The average market value of credit default swap contracts open during the
year ended November 30, 2019, was $490,036. Open credit default swap
contracts at November 30, 2019, are listed in the Schedule of Investments.
I. Automatic Dividend Reinvestment Plan
All shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
"Plan"), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional shares of
the Trust in lieu of cash. Shareowners may elect not to participate in the
Plan. Shareowners not participating in the Plan receive all dividends and
capital gain distributions in cash. Participation in the Plan is
completely voluntary and may be terminated or resumed at any time without
penalty by notifying American Stock Transfer & Trust Company, the agent
for shareowners in administering the Plan (the "Plan Agent"), in writing
prior to any dividend record date; otherwise such termination or
resumption will be effective with respect to any subsequently declared
dividend or other distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate
in the Plan on the shareowner's behalf. If the firm or nominee does not
offer the Plan, dividends will be paid in cash to the shareowner of
record. A firm or nominee may reinvest a shareowner's cash dividends in
shares of the Trust on terms that differ from the terms of the Plan.
Whenever the Trust declares a dividend on shares payable in cash,
participants in the Plan will receive the equivalent in shares acquired by
the Plan Agent either (i) through receipt of additional unissued but
authorized shares from the Trust or (ii) by purchase of outstanding shares
on the NYSE or elsewhere. If, on the payment date for any dividend, the
net asset value per share is equal to or less than the market price per
share plus estimated brokerage trading fees (market premium), the Plan
Agent will invest the dividend amount in newly issued shares. The number
of newly issued shares to be credited to each account will be determined
by dividing the dollar amount of the dividend by the net asset value per
share on the date the shares are issued, provided that
56 Pioneer Floating Rate Trust | Annual Report | 11/30/19
the maximum discount from the then current market price per share on the
date of issuance does not exceed 5%. If, on the payment date for any
dividend, the net asset value per share is greater than the market value
(market discount), the Plan Agent will invest the dividend amount in
shares acquired in open-market purchases. There are no brokerage charges
with respect to newly issued shares. However, each participant will pay a
pro rata share of brokerage trading fees incurred with respect to the Plan
Agent's open-market purchases. Participating in the Plan does not relieve
shareowners from any federal, state or local taxes which may be due on
dividends paid in any taxable year. Shareowners holding Plan shares in a
brokerage account may be able to transfer the shares to another broker and
continue to participate in the Plan.
J. Statement of Cash Flows
Information on financial transactions which have been settled through the
receipt or disbursement of cash or restricted cash is presented in the
Statement of Cash Flows. Cash as presented in the Trust's Statement of
Assets and Liabilities includes cash on hand at the Trust's custodian bank
and does not include any short-term investments. As of and for the year
ended November 30, 2019, the Trust had no restricted cash presented on the
Statement of Assets and Liabilities.
2. Management Agreement
The Adviser manages the Trust's portfolio. Management fees payable under the
Trust's Advisory Agreement with the Adviser 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, 2019, the net management fee was 0.70% of the Trust's average
daily managed assets, which was equivalent to 1.03% of the Trust's average
daily net assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Trust as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$58,027 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at November 30, 2019.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 57
3. Transfer Agent
AST serves as the transfer agent with respect to the Trust's common shares. The
Trust pays AST an annual fee, as is agreed to from time to time by the Trust
and AST, for providing such services.
In addition, the Trust reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings and outgoing phone calls.
4. Additional Disclosures about Derivative Instruments and Hedging Activities
The Trust's use of derivatives may enhance or mitigate the Trust's exposure to
the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Trust.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments
as a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange rate risk), whether caused by factors specific to
an individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at November
30, 2019, was as follows:
--------------------------------------------------------------------------------
Statement of Assets and Liabilities
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Rate Risk Risk Risk
--------------------------------------------------------------------------------
Assets:
Swap contracts,
at value $ -- $1,138,594 $ -- $ -- $ --
--------------------------------------------------------------------------------
Total Value $ -- $1,138,594 $ -- $ -- $ --
================================================================================
58 Pioneer Floating Rate Trust | Annual Report | 11/30/19
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at November 30, 2019 was as follows:
--------------------------------------------------------------------------------
Statement of Operations
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Rate Risk Risk Risk
--------------------------------------------------------------------------------
Net realized
gain (loss) on:
Swap contracts $ -- $187,247 $ -- $ -- $ --
--------------------------------------------------------------------------------
Total Value $ -- $187,247 $ -- $ -- $ --
================================================================================
Change in net
unrealized
appreciation
(depreciation) on:
Swap contracts $ -- $256,916 $ -- $ -- $ --
--------------------------------------------------------------------------------
Total Value $ -- $256,916 $ -- $ -- $ --
================================================================================
5. Unfunded Loan Commitments
The Trust may enter into unfunded loan commitments. Unfunded loan commitments
may be partially or wholly unfunded. During the contractual period, the Trust
is obliged to provide funding to the borrower upon demand. A fee is earned by
the Trust on the unfunded commitment and is recorded as interest income on the
Statement of Operations.
As of November 30, 2019, the Trust had the following unfunded loan commitments
outstanding:
--------------------------------------------------------------------------------
Unrealized
Appreciation
Loan Principal Cost Value (Depreciation)
--------------------------------------------------------------------------------
Allied Universal Holdco LLC $150,000 $150,000 $149,750 $ (250)
Merlin Entertainments 259,284 259,284 261,661 2,377
Spectacle Gary Holdings LLC 67,568 66,892 66,554 (338)
NMN Holdings III Corp. 175,000 174,630 168,438 (6,192)
--------------------------------------------------------------------------------
Total Value $651,850 $650,806 $646,403 $(4,403)
================================================================================
6. Trust Shares
There are an unlimited number of shares of beneficial interest authorized.
Transactions in shares of beneficial interest for the year ended November 30,
2019 and the year ended November 30, 2018, were as follows:
--------------------------------------------------------------------------------
11/30/19 11/30/18
--------------------------------------------------------------------------------
Shares outstanding at beginning of period 24,738,174 24,738,174
--------------------------------------------------------------------------------
Shares outstanding at end of period 24,738,174 24,738,174
================================================================================
Pioneer Floating Rate Trust | Annual Report | 11/30/19 59
7. Credit Agreement
Effective November 26, 2013, the Trust entered into a Revolving Credit Facility
(the "Credit Agreement") with the Bank of Nova Scotia in the amount of
$160,000,000. The Credit Agreement was established in conjunction with the
redemption of all the Trust's auction market preferred shares. Effective
November 22, 2019, the amount of the credit agreement was reduced to
$150,000,000 and was also amended to make it an "evergreen" facility. More
specifically the credit agreement renews on a daily basis in perpetuity. Either
party may elect to terminate its commitment under the credit agreement upon
179-days written notice.
At November 30, 2019, the Trust had a borrowing outstanding under the Credit
Agreement totaling $139,450,000. The interest rate charged at November 30, 2019
was 3.01%. During the year ended November 30, 2019, the average daily balance
was $139,723,458 at an average interest rate of 3.33%. Interest expense of
$4,749,000 in connection with the Credit Agreement is included on the Statement
of Operations.
The Trust is required to maintain 300% asset coverage with respect to amounts
outstanding under the Credit Agreement. Asset coverage is calculated by
subtracting the Trust's total liabilities not including any bank loans and
senior securities, from the Trust's total assets and dividing such amount by
the principal amount of the borrowing outstanding.
8. Subsequent Events
A monthly dividend was declared on December 27, 2019 from undistributed and
accumulated net investment income of $0.0625 per share payable January 6, 2020,
to shareowners of record on December 30, 2019.
Results of Shareholder Meeting
At an annual meeting held on September 18, 2019, shareholders of the Trust were
asked to consider the proposal described below,
A report of the total votes cast by the Trust's shareholders follows:
---------------------------------------------------------------------------------------
For Withhold
---------------------------------------------------------------------------------------
Proposal 1 - to elect three Class I Trustees
---------------------------------------------------------------------------------------
John E. Baumgardner, Jr. 19,346,606 3,507,964
---------------------------------------------------------------------------------------
Lisa M. Jones 19,356,448 3,498,122
---------------------------------------------------------------------------------------
Lorraine H. Monchak 19,066,980 3,787,590
---------------------------------------------------------------------------------------
60 Pioneer Floating Rate Trust | Annual Report | 11/30/19
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareholders of
Pioneer Floating Rate Trust:
--------------------------------------------------------------------------------
Opinion on the Financial Statements
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, 2019, and the related statements of operations and cash flows for
the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, the financial highlights for each of the
three years in the period then ended and the related notes (collectively
referred to as the "financial statements"). The financial highlights for the
periods ended November 30, 2015 and November 30, 2016 were audited by another
independent registered public accounting firm whose report, dated January 25,
2017, expressed an unqualified opinion on those financial highlights. In our
opinion, the financial statements present fairly, in all material respects, the
financial position of the Trust at November 30, 2019, the results of its
operations and its cash flows for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and its financial
highlights for each of the three years in the period then ended, in conformity
with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust's management.
Our responsibility is to express an opinion on the Trust's financial statements
based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required
to be independent with respect to the Trust in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Trust is not required to have,
nor were we engaged to perform, an audit of the Trust's internal control over
financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting, 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.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 61
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of November 30, 2019, by correspondence with the custodian and
brokers. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.
/s/ Ernst & Young LLP
We have served as the Trust's auditor since 2017.
Boston, Massachusetts
January 29, 2020
62 Pioneer Floating Rate Trust | Annual Report | 11/30/19
ADDITIONAL INFORMATION
During the period, there have been no material changes in the Trust's
investment objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust which has not been
approved by the shareowners. During the period, there have been no changes in
the principal risk factors associated with investment in the Trust. There were
no changes in the persons who are primarily responsible for the day-to-day
management of the Trust's portfolio.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its common
shares in the open market.
The percentages of the Fund's ordinary income distributions that are exempt
from nonresident alien (NRA) tax withholding resulting from qualified interest
income was 96.32%.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 63
Approval of Investment Management Agreement
Amundi Pioneer Asset Management, Inc. ("APAM") serves as the investment adviser
to Pioneer Floating Rate Trust (the "Trust") pursuant to an investment
management agreement between APAM and the Trust. In order for APAM to remain
the investment adviser of the Trust, the Trustees of the Trust must determine
annually whether to renew the investment management agreement for the Trust.
The contract review process began in January 2019 as the Trustees of the Trust
agreed on, among other things, an overall approach and timeline for the
process. Contract review materials were provided to the Trustees in March 2019,
July 2019 and September 2019. In addition, the Trustees reviewed and discussed
the Trust's performance at regularly scheduled meetings throughout the year,
and took into account other information related to the Trust provided to the
Trustees at regularly scheduled meetings, in connection with the review of the
Trust's investment management agreement.
In March 2019, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment management agreement, and reviewed and
discussed the qualifications of the investment management teams for the Trust,
as well as the level of investment by the Trust's portfolio managers in the
Trust. In July 2019, the Trustees, among other things, reviewed the Trust's
management fees and total expense ratios, the financial statements of APAM and
its parent companies, profitability analyses provided by APAM, and analyses
from APAM as to possible economies of scale. The Trustees also reviewed the
profitability of the institutional business of APAM and APAM's affiliate,
Amundi Pioneer Institutional Asset Management, Inc. ("APIAM" and, together with
APAM, "Amundi Pioneer"), as compared to that of APAM's fund management
business, and considered the differences between the fees and expenses of the
Trust and the fees and expenses of APAM's and APIAM's institutional accounts,
as well as the different services provided by APAM to the Trust and by APAM and
APIAM to the institutional accounts. The Trustees further considered contract
review materials, including additional materials received in response to the
Trustees' request, in September 2019.
At a meeting held on September 17, 2019, based on their evaluation of the
information provided by APAM and third parties, the Trustees of the Trust,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment management agreement for another year. In
64 Pioneer Floating Rate Trust | Annual Report | 11/30/19
approving the renewal of the investment management agreement, the Trustees
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by APAM to the Trust, taking into account the investment
objective and strategy of the Trust. The Trustees also reviewed APAM's
investment approach for the Trust and its research process. The Trustees
considered the resources of APAM and the personnel of APAM who provide
investment management services to the Trust. They also reviewed the amount of
non-Trust assets managed by the portfolio managers of the Trust. They
considered the non-investment resources and personnel of APAM that are involved
in APAM's services to the Trust, including APAM's compliance, risk management,
and legal resources and personnel. The Trustees noted the substantial attention
and high priority given by APAM's senior management to the Pioneer Fund
complex.
The Trustees considered that APAM 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,
APAM is responsible for the administration of the Trust's business and other
affairs. The Trustees considered the fees paid to APAM 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 APAM to the Trust were
satisfactory and consistent with the terms of the investment management
agreement.
Performance of the Trust
In considering the Trust's performance, the Trustees regularly review and
discuss throughout the year data prepared by APAM and information comparing the
Trust's performance with the performance of its peer group of funds, as
classified by Morningstar, Inc. (Morningstar), and the performance of the
Trust's benchmark index. They also discuss the Trust's performance with APAM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the investment
management agreement.
Pioneer Floating Rate Trust | Annual Report | 11/30/19 65
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Trust
in comparison to the management fees and 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 peer
group comparisons referred to below are organized in quintiles. Each quintile
represents one-fifth of the peer group. In all peer group comparisons referred
to below, first quintile is most favorable to the Trust's shareowners.
The Trustees considered that the Trust's management fee (based on managed
assets) for the most recent fiscal year was in the first quintile relative to
the management fees paid by other funds in its Strategic Insight peer group for
the comparable period. The Trustees considered that the expense ratio (based on
managed assets) of the Trust's common shares for the most recent fiscal year
was in the first quintile relative to its Strategic Insight peer group for the
comparable period.
The Trustees reviewed management fees charged by APAM and APIAM to
institutional and other clients, including publicly offered European funds
sponsored by APAM's affiliates, unaffiliated U.S. registered investment
companies (in a sub-advisory capacity), and unaffiliated foreign and domestic
separate accounts. The Trustees also considered APAM's costs in providing
services to the Trust and APAM's and APIAM's costs in providing services to the
other clients and considered the differences in management fees and profit
margins for fund and non-fund services. In evaluating the fees associated with
APAM's and APIAM's client accounts, the Trustees took into account the
respective demands, resources and complexity associated with the Trust and
other 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 management agreement with the Trust, APAM
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 entrepreneurial risks associated with APAM's
management of the Trust.
The Trustees concluded that the management fee payable by the Trust to APAM was
reasonable in relation to the nature and quality of the services provided by
APAM.
66 Pioneer Floating Rate Trust | Annual Report | 11/30/19
Profitability
The Trustees considered information provided by APAM regarding the
profitability of APAM with respect to the advisory services provided by APAM to
the Trust, including the methodology used by APAM in allocating certain of its
costs to the management of the Trust. The Trustees also considered APAM's
profit margin in connection with the overall operation of the Trust. They
further reviewed the financial results, including the profit margins, realized
by APAM and APIAM from non-fund businesses. The Trustees considered APAM's
profit margins 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 APAM's profitability with respect to the management of
the Trust was not unreasonable.
Economies of Scale
The Trustees considered the extent to which APAM 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 that APAM enjoys from its
relationship with the Trust. The Trustees considered the character and amount
of fees paid or to be paid by the Trust, other than under the investment
management agreement, for services provided by APAM and its affiliates. The
Trustees further considered the revenues and profitability of APAM's businesses
other than the Fund business. To the extent applicable, the Trustees also
considered the benefits to the Trust and to APAM and its affiliates from the
use of "soft" commission dollars generated by the Trust to pay for research and
brokerage services.
The Trustees considered that Amundi Pioneer is the principal U.S. asset
management business of Amundi, which is one of the largest asset managers
globally. Amundi's worldwide asset management business manages over $1.6
trillion in assets (including the Pioneer Funds). The Trustees considered
that APAM's relationship with Amundi creates potential opportunities for APAM,
APIAM and Amundi that derive from APAM's relationships with the Trust,
including Amundi's ability to market the services of APAM globally. The
Trustees noted that APAM has access to additional research and portfolio
management capabilities as a result of its relationship with Amundi and
Pioneer Floating Rate Trust | Annual Report | 11/30/19 67
Amundi's enhanced global presence that may contribute to an increase in the
resources available to APAM. The Trustees considered that APAM and the Trust
receive reciprocal intangible benefits from the relationship, including mutual
brand recognition and, for the Trust, direct and indirect access to the
resources of a large global asset manager. The Trustees concluded that any such
benefits received by APAM as a result of its relationship with the Trust were
reasonable.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including the Independent Trustees, concluded that the investment
management agreement for the Trust, including the fees payable thereunder, was
fair and reasonable and voted to approve the proposed renewal of the investment
management agreement.
68 Pioneer Floating Rate Trust | Annual Report | 11/30/19
Trustees, Officers and Service Providers
Investment Adviser and Administrator
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Legal Counsel
Morgan, Lewis, Bockius LLP
Transfer Agent
American Stock Transfer & Trust Company
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Trust voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.amundipioneer.com/us. This information is also available on
the Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Trust's Trustees and officers are listed below, together with their
principal occupations and other directorships they have held during at least
the past five years. Trustees who are interested persons of the Trust within
the meaning of the 1940 Act are referred to as Interested Trustees. Trustees
who are not interested persons of the Trust are referred to as Independent
Trustees. Each of the Trustees serves as a Trustee of each of the 45 U.S.
registered investment portfolios for which Amundi 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 Trust 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 | 11/30/19 69
Independent Trustees
Name, Age and Position Term of Office and Other Directorships
Held With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (68) Class III Trustee Private investor (2004 - 2008 and Director, Broadridge Financial
Chairman of the Board since 2006. 2013 - present); Chairman (2008 - 2013) Solutions, Inc. (investor
and Trustee Term expires in 2021. and Chief Executive Officer (2008 - communications and securities
2012), Quadriserv, Inc. (technology processing provider for financial
products for securities lending services industry) (2009 - present);
industry); and Senior Executive Vice Director, Quadriserv, Inc. (2005 -
President, The Bank of New York 2013); and Commissioner, New Jersey
(financial and securities services) State Civil Service Commission
(1986 - 2004) (2011 - 2015)
------------------------------------------------------------------------------------------------------------------------------------
John E. Baumgardner, Class I Trustee Of Counsel (2019 - present), Partner Chairman, The Lakeville Journal
Jr. (68) since 2019. (1983-2018), Sullivan & Cromwell LLP Company, LLC, (privately-held
Trustee Term expires in 2021. (law firm). community newspaper group)
(2015-present)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (75) Class II Trustee William Joseph Maier Professor of Trustee, Mellon Institutional Funds
Trustee since 2008. Political Economy, Harvard University Investment Trust and Mellon
Term expires in 2020. (1972 - present) Institutional Funds Master Portfolio
(oversaw 17 portfolios in fund
complex) (1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
70 Pioneer Floating Rate Trust | Annual Report | 11/30/19
Name, Age and Position Term of Office and Other Directorships
Held With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (62) Class I Trustee since Chief Investment Officer, 1199 SEIU None
Trustee 2015 (Advisory Trustee Funds (healthcare workers union pension
from 2014 - 2015). funds) (2001 - present); Vice
Term expires in 2022. President - International Investments
Group, American International Group,
Inc. (insurance company) (1993 - 2001);
Vice President - Corporate Finance and
Treasury Group, Citibank, N.A. (1980 -
1986 and 1990 - 1993); Vice President -
Asset/Liability Management Group,
Federal Farm Funding Corporation
(government-sponsored issuer of debt
securities) (1988 - 1990); Mortgage
Strategies Group, Shearson Lehman
Hutton, Inc. (investment bank) (1987 -
1988); and Mortgage Strategies Group,
Drexel Burnham Lambert, Ltd.
(investment bank) (1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (71) Class III Trustee President and Chief Executive Officer, Director of New America High Income
Trustee since 2003. Metric Financial Inc. (formerly known Fund, Inc. (closed-end investment
Term expires in 2021. as Newbury Piret Company) (investment company) (2004 - present); and
banking firm) (1981 - present) Member, Board of Governors,
Investment Company Institute
(2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (72) Class III Trustee Consultant (investment company None
Trustee since 2014. services) (2012 - present); Executive
Term expires in 2021. Vice President, BNY Mellon (financial
and investment company services)
(1969 - 2012); Director, BNY
International Financing Corp.
(financial services) (2002 - 2012);
Director, Mellon Overseas Investment
Corp. (financial services) (2009 -
2012); Director, Financial Models
(technology) (2005-2007); Director,
BNY Hamilton Funds, Ireland (offshore
investment companies) (2004-2007);
Chairman/Director, AIB/BNY Securities
Services, Ltd., Ireland (financial
services) (1999-2006); and Chairman,
BNY Alternative Investment Services,
Inc. (financial services) (2005-2007)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Floating Rate Trust | Annual Report | 11/30/19 71
Interested Trustees
Name, Age and Position Term of Office and Other Directorships
Held With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (57)* Class I Trustee Director, CEO and President of Amundi None
Trustee, President and since 2014. Pioneer Asset Management USA, Inc.
Chief Executive Officer Term expires in 2022. (since September 2014); Director, CEO
and President of Amundi Pioneer Asset
Management, Inc. (since September
2014); Director, CEO and President of
Amundi Pioneer Distributor, Inc. (since
September 2014); Director, CEO and
President of Amundi Pioneer
Institutional Asset Management, Inc.
(since September 2014); Chair, Amundi
Pioneer Asset Management USA, Inc.,
Amundi Pioneer Distributor, Inc. and
Amundi Pioneer Institutional Asset
Management, Inc. (September 2014 -
2018); Managing Director, Morgan
Stanley Investment Management (2010 -
2013); Director of Institutional
Business, CEO of International, Eaton
Vance Management (2005 - 2010); and
Director of Amundi USA, Inc.
(since 2017)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (61)* Class II Trustee Director and Executive Vice President None
Trustee since 2014. (since 2008) and Chief Investment
Term expires in 2020. Officer, U.S. (since 2010) of Amundi
Pioneer Asset Management USA, Inc.;
Director and Executive Vice President
and Chief Investment Officer, U.S. of
Amundi Pioneer (since 2008); Executive
Vice President and Chief Investment
Officer, U.S. of Amundi Pioneer
Institutional Asset Management, Inc.
(since 2009); Portfolio Manager of
Amundi Pioneer (since 1999); and
Director of Amundi USA, Inc.
(since 2017)
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers or directors of the Trust's investment adviser and
certain of its affiliates.
72 Pioneer Floating Rate Trust | Annual Report | 11/30/19
Advisory Trustee
Name, Age and Position Term of Office and Other Directorships
Held With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Diane Durnin (62) Class II Trustee Managing Director - Head of Product None
Trustee since 2020. Strategy and Development, BNY Mellon
Term expires in 2020. Investment Management (2012-2018); Vice
Chairman - The Dreyfus Corporation
(2005 - 2018): Executive Vice President
Head of Product, BNY Mellon Investment
Management (2007-2012); Executive
Director- Product Strategy, Mellon
Asset Management (2005-2007); Executive
Vice President Head of Products,
Marketing and Client Service, Dreyfus
Corporation (2000-2005); and Senior
Vice President Strategic Product and
Business Development, Dreyfus
Corporation (1994-2000)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Floating Rate Trust | Annual Report | 11/30/19 73
Trust Officers
Name, Age and Position Term of Office and Other Directorships
Held With the Trust Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (54) Since 2004. Serves at Vice President and Associate General None
Secretary and Chief the discretion Counsel of Amundi Pioneer since January
Legal Officer of the Board 2008; Secretary and Chief Legal Officer
of all of the Pioneer Funds since June
2010; Assistant Secretary of all of the
Pioneer Funds from September 2003 to
May 2010; and Vice President and Senior
Counsel of Amundi Pioneer from July
2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (58) Since 2010. Serves at Fund Governance Director of Amundi None
Assistant Secretary the discretion Pioneer since December 2006 and
of the Board Assistant Secretary of all the Pioneer
Funds since June 2010; Manager - Fund
Governance of Amundi Pioneer from
December 2003 to November 2006; and
Senior Paralegal of Amundi Pioneer from
January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (57) Since 2010. Serves at Senior Counsel of Amundi Pioneer since None
Assistant Secretary the discretion May 2013 and Assistant Secretary of all
of the Board the Pioneer Funds since June 2010; and
Counsel of Amundi Pioneer from June
2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (60) Since 2008. Serves at Vice President - Fund Treasury of None
Treasurer and the discretion Amundi Pioneer; Treasurer of all of the
Chief Financial of the Board Pioneer Funds since March 2008; Deputy
and Accounting Officer Treasurer of Amundi Pioneer from March
2004 to February 2008; and Assistant
Treasurer of all of the Pioneer Funds
from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (54) Since 2004. Serves at Director - Fund Treasury of Amundi None
Assistant Treasurer the discretion Pioneer; and Assistant Treasurer of all
of the Board of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (61) Since 2004. Serves at Senior Manager - Fund Treasury of None
Assistant Treasurer the discretion Amundi Pioneer; and Assistant Treasurer
of the Board of all of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
74 Pioneer Floating Rate Trust | Annual Report | 11/30/19
Name, Age and Position Term of Office and Other Directorships
Held With the Trust Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
John Malone (48) Since 2018. Serves at Managing Director, Chief Compliance None
Chief Compliance Officer the discretion Officer of Amundi Pioneer Asset
of the Board Management; Amundi Pioneer
Institutional Asset Management, Inc.;
and the Pioneer Funds since September
2018; and Chief Compliance Officer of
Amundi Pioneer Distributor, Inc. since
January 2014.
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (48) Since 2006. Serves at Vice President - Amundi Pioneer Asset None
Anti-Money the discretion Management; and Anti-Money Laundering
Laundering Officer of the Board Officer of all the Pioneer Funds
since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Floating Rate Trust | Annual Report | 11/30/19 75
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76 Pioneer Floating Rate Trust | Annual Report | 11/30/19
How to Contact Amundi 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 www.amundipioneer.com/us.
The Trust files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year as
an exhibit to its reports on Form N-PORT. Shareowners may view the filed Form
N-PORT by visiting the Commission's web site at https://www.sec.gov.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com/us
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
[C] 2020 Amundi Pioneer Asset Management 19447-13-0120
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)).
Mr. David R. Bock, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
The audit fees for the Trust were $55,000
payable to Ernst & Young LLP for the year ended
November 30, 2019 and $55,000
for the year ended November 30, 2018.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no audit-related services in 2019 or 2018.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
The tax fees for the Trust were $10,115
payable to Ernst & Young LLP for the year ended
November 30, 2019 and $10,115
for the year ended November 30, 2019.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
There were no other fees in 2019 or 2018.
(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 Amudi Pioneer Asset Management, Inc, the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Trust's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Trust. For the
years ended November 30, 2019 and 2018, there were no
services provided to an affiliate that required the
Trust's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Trust were $10,115
payable to Ernst & Young LLP for the year ended
November 30, 2019 and $10,115 for the year
ended November 30, 2018.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Proxy Voting Policies and Procedures of
Pioneer Investment Management, Inc.
VERSION DATED July, 2004
Overview
Pioneer Investment Management, Inc. ("Pioneer") is a fiduciary that owes
each of its client's duties of care and loyalty with respect to all
services undertaken on the client's behalf, including proxy voting. When
Pioneer has been delegated proxy-voting authority for a client, the duty of
care requires Pioneer to monitor corporate events and to vote the proxies.
To satisfy its duty of loyalty, Pioneer must place its client's interests
ahead of its own and must cast proxy votes in a manner consistent with the
best interest of its clients. Pioneer will vote all proxies presented in a
timely manner.
The Proxy Voting Policies and Procedures are designed to complement
Pioneer's investment policies and procedures regarding its general
responsibility to monitor the performance and/or corporate events of
companies that are issuers of securities held in accounts managed by
Pioneer. Pioneer's Proxy Voting Policies summarize Pioneer's position on a
number of issues solicited by companies held by Pioneer's clients. The
policies are guidelines that provide a general indication on how Pioneer
would vote but do not include all potential voting scenarios.
Pioneer's Proxy Voting Procedures detail monitoring of voting, exception
votes, and review of conflicts of interest and ensure that case-by-case
votes are handled within the context of the overall guidelines (i.e. best
interest of client). The overriding goal is that all proxies for US and
non-US companies that are received promptly will be voted in accordance
with Pioneer's policies or specific client instructions. All shares in a
company held by Pioneer-managed accounts will be voted alike, unless a
client has given us specific voting instructions on an issue or has not
delegated authority to us or the Proxy Voting Oversight Group determines
that the circumstances justify a different approach.
Pioneer does not delegate the authority to vote proxies relating to its
clients to any of its affiliates, which include other subsidiaries of
UniCredito.
Any questions about these policies and procedures should be directed to the
Proxy Coordinator.
1
Proxy Voting Procedures
Proxy Voting Service
Pioneer has engaged an independent proxy voting service to assist in the
voting of proxies. The proxy voting service works with custodians to ensure
that all proxy materials are received by the custodians and are processed
in a timely fashion. To the extent applicable, the proxy voting service
votes all proxies in accordance with the proxy voting policies established
by Pioneer. The proxy voting service will refer proxy questions to the
Proxy Coordinator (described below) for instructions under circumstances
where: (1) the application of the proxy voting guidelines is unclear; (2) a
particular proxy question is not covered by the guidelines; or (3) the
guidelines call for specific instructions on a case-by-case basis. The
proxy voting service is also requested to call to the Proxy Coordinator's
attention specific proxy questions that, while governed by a guideline,
appear to involve unusual or controversial issues. Pioneer reserves the
right to attend a meeting in person and may do so when it determines that
the company or the matters to be voted on at the meeting are strategically
important to its clients.
Proxy Coordinator
Pioneer's Director of Investment Operations (the "Proxy Coordinator")
coordinates the voting, procedures and reporting of proxies on behalf of
Pioneer's clients. The Proxy Coordinator will deal directly with the proxy
voting service and, in the case of proxy questions referred by the proxy
voting service, will solicit voting recommendations and instructions from
the Director of Portfolio Management US or, to the extent applicable,
investment sub-advisers. The Proxy Coordinator is responsible for ensuring
that these questions and referrals are responded to in a timely fashion and
for transmitting appropriate voting instructions to the proxy voting
service. The Proxy Coordinator is responsible for verifying with the
Compliance Department whether Pioneer's voting power is subject to any
limitations or guidelines issued by the client (or in the case of an
employee benefit plan, the plan's trustee or other fiduciaries).
Referral Items
From time to time, the proxy voting service will refer proxy questions to
the Proxy Coordinator that are described by Pioneer's policy as to be voted
on a case-by-case basis, that are not covered by Pioneer's guidelines or
where Pioneer's guidelines may be unclear with respect to the matter to be
voted on. Under such certain circumstances, the Proxy Coordinator will seek
a written voting recommendation from the Director of Portfolio Management
US. Any such recommendation will include: (i) the manner in which the
proxies should be voted; (ii) the rationale underlying any such decision;
and (iii) the disclosure of any contacts or communications made between
Pioneer and any outside parties concerning the proxy proposal prior to the
time that the voting instructions are provided. In addition, the Proxy
Coordinator will ask the Compliance Department to review the question for
any actual or apparent conflicts of interest as described below under
"Conflicts of
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Interest." The Compliance Department will provide a "Conflicts of Interest
Report," applying the criteria set forth below under "Conflicts of
Interest," to the Proxy Coordinator summarizing the results of its review.
In the absence of a conflict of interest, the Proxy Coordinator will vote
in accordance with the recommendation of the Director of Portfolio
Management US.
If the matter presents a conflict of interest for Pioneer, then the Proxy
Coordinator will refer the matter to the Proxy Voting Oversight Group for a
decision. In general, when a conflict of interest is present, Pioneer will
vote according to the recommendation of the Director of Portfolio
Management US where such recommendation would go against Pioneer's interest
or where the conflict is deemed to be immaterial. Pioneer will vote
according to the recommendation of its proxy voting service when the
conflict is deemed to be material and the Pioneer's internal vote
recommendation would favor Pioneer's interest, unless a client specifically
requests Pioneer to do otherwise. When making the final determination as to
how to vote a proxy, the Proxy Voting Oversight Group will review the
report from the Director of Portfolio Management US and the Conflicts of
Interest Report issued by the Compliance Department.
Conflicts of Interest
A conflict of interest occurs when Pioneer's interests interfere, or appear
to interfere with the interests of Pioneer's clients. Occasionally, Pioneer
may have a conflict that can affect how its votes proxies. The conflict may
be actual or perceived and may exist when the matter to be voted on
concerns:
o An affiliate of Pioneer, such as another company belonging to
the UniCredito Italiano S.p.A. banking group (a "UniCredito
Affiliate");
o An issuer of a security for which Pioneer acts as a sponsor,
advisor, manager, custodian, distributor, underwriter, broker, or
other similar capacity (including those securities specifically
declared by PGAM to present a conflict of interest for Pioneer);
o An issuer of a security for which UniCredito has informed Pioneer
that a UniCredito Affiliate acts as a sponsor, advisor, manager,
custodian, distributor, underwriter, broker, or other similar
capacity; or
o A person with whom Pioneer (or any of its affiliates) has an
existing, material contract or business relationship that was not
entered into in the ordinary course of Pioneer's business.
o Pioneer will abstain from voting with respect to companies
directly or indirectly owned by UniCredito Italiano Group, unless
otherwise directed by a client. In addition, Pioneer will inform
PGAM Global Compliance and the PGAM Independent Directors before
exercising such rights.
Any associate involved in the proxy voting process with knowledge of any
apparent or actual conflict of interest must disclose such conflict to the
Proxy Coordinator and the Compliance Department. The Compliance Department
will review each item referred to Pioneer to determine whether an actual or
potential conflict of interest with Pioneer exists in connection with the
proposal(s) to be voted upon. The review will be conducted by comparing the
apparent parties affected by the proxy proposal being
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voted upon against the Compliance Department's internal list of interested
persons and, for any matches found, evaluating the anticipated magnitude
and possible probability of any conflict of interest being present. For
each referral item, the determination regarding the presence or absence of
any actual or potential conflict of interest will be documented in a
Conflicts of Interest Report to the Proxy Coordinator.
Securities Lending
In conjunction with industry standards Proxies are not available to be
voted when the shares are out on loan through either Pioneer's lending
program or a client's managed security lending program. However, Pioneer
will reserve the right to recall lent securities so that they may be voted
according to the Pioneer's instructions. If a portfolio manager would like
to vote a block of previously lent shares, the Proxy Coordinator will work
with the portfolio manager and Investment Operations to recall the
security, to the extent possible, to facilitate the vote on the entire
block of shares.
Share-Blocking
"Share-blocking" is a market practice whereby shares are sent to a
custodian (which may be different than the account custodian) for record
keeping and voting at the general meeting. The shares are unavailable for
sale or delivery until the end of the blocking period (typically the day
after general meeting date).
Pioneer will vote in those countries with "share-blocking." In the event a
manager would like to sell a security with "share-blocking", the Proxy
Coordinator will work with the Portfolio Manager and Investment Operations
Department to recall the shares (as allowable within the market time-frame
and practices) and/or communicate with executing brokerage firm. A list of
countries with "share-blocking" is available from the Investment Operations
Department upon request.
Record Keeping
The Proxy Coordinator shall ensure that Pioneer's proxy voting service:
o Retains a copy of the proxy statement received (unless the proxy
statement is available from the SEC's Electronic Data Gathering,
Analysis, and Retrieval (EDGAR) system);
o Retains a record of the vote cast;
o Prepares Form N-PX for filing on behalf of each client that is a
registered investment company; and
o Is able to promptly provide Pioneer with a copy of the voting
record upon its request.
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The Proxy Coordinator shall ensure that for those votes that may require
additional documentation (i.e. conflicts of interest, exception votes and
case-by-case votes) the following records are maintained:
o A record memorializing the basis for each referral vote cast;
o A copy of any document created by Pioneer that was material in
making the decision on how to vote the subject proxy; and
o A copy of any conflict notice, conflict consent or any other
written communication (including emails or other electronic
communications) to or from the client (or in the case of an
employee benefit plan, the plan's trustee or other fiduciaries)
regarding the subject proxy vote cast by, or the vote
recommendation of, Pioneer.
o Pioneer shall maintain the above records in the client's file for a
period not less than ten (10) years.
Disclosure
Pioneer shall take reasonable measures to inform its clients of the process
or procedures clients must follow to obtain information regarding how
Pioneer voted with respect to assets held in their accounts. In addition,
Pioneer shall describe to clients its proxy voting policies and procedures
and will furnish a copy of its proxy voting policies and procedures upon
request. This information may be provided to clients through Pioneer's Form
ADV (Part II) disclosure, by separate notice to the client, or through
Pioneer's website.
Proxy Voting Oversight Group
The members of the Proxy Voting Oversight Group are Pioneer's: Director of
Portfolio Management US, Head of Investment Operations, and Director of
Compliance. Other members of Pioneer will be invited to attend meetings and
otherwise participate as necessary. The Head of Investment Operations will
chair the Proxy Voting Oversight Group.
The Proxy Voting Oversight Group is responsible for developing, evaluating,
and changing (when necessary) Pioneer's Proxy Voting Policies and
Procedures. The group meets at least annually to evaluate and review these
policies and procedures and the services of its third-party proxy voting
service. In addition, the Proxy Voting Oversight Group will meet as
necessary to vote on referral items and address other business as
necessary.
Amendments
Pioneer may not amend its Proxy Voting Policies And Procedures without the
prior approval of the Proxy Voting Oversight Group and its corporate
parent, Pioneer Global Asset Management S.p.A
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Proxy Voting Policies
Pioneer's sole concern in voting proxies is the economic effect of the
proposal on the value of portfolio holdings, considering both the short-
and long-term impact. In many instances, Pioneer believes that supporting
the company's strategy and voting "for" management's proposals builds
portfolio value. In other cases, however, proposals set forth by management
may have a negative effect on that value, while some shareholder proposals
may hold the best prospects for enhancing it. Pioneer monitors developments
in the proxy-voting arena and will revise this policy as needed.
All proxies that are received promptly will be voted in accordance with the
specific policies listed below. All shares in a company held by
Pioneer-managed accounts will be voted alike, unless a client has given us
specific voting instructions on an issue or has not delegated authority to
us. Proxy voting issues will be reviewed by Pioneer's Proxy Voting
Oversight Group, which consists of the Director of Portfolio Management US,
the Director of Investment Operations (the Proxy Coordinator), and the
Director of Compliance.
Pioneer has established Proxy Voting Procedures for identifying and
reviewing conflicts of interest that may arise in the voting of proxies.
Clients may request, at any time, a report on proxy votes for securities
held in their portfolios and Pioneer is happy to discuss our proxy votes
with company management. Pioneer retains a proxy voting service to provide
research on proxy issues and to process proxy votes.
Administrative
While administrative items appear infrequently in U.S. issuer proxies, they
are quite common in non-U.S. proxies.
We will generally support these and similar management proposals:
o Corporate name change.
o A change of corporate headquarters.
o Stock exchange listing.
o Establishment of time and place of annual meeting.
o Adjournment or postponement of annual meeting.
o Acceptance/approval of financial statements.
o Approval of dividend payments, dividend reinvestment plans and other
dividend-related proposals.
o Approval of minutes and other formalities.
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o Authorization of the transferring of reserves and allocation of
income.
o Amendments to authorized signatories.
o Approval of accounting method changes or change in fiscal year-end.
o Acceptance of labor agreements.
o Appointment of internal auditors.
Pioneer will vote on a case-by-case basis on other routine business;
however, Pioneer will oppose any routine business proposal if insufficient
information is presented in advance to allow Pioneer to judge the merit of
the proposal. Pioneer has also instructed its proxy voting service to
inform Pioneer of its analysis of any administrative items inconsistent, in
its view, with supporting the value of Pioneer portfolio holdings so that
Pioneer may consider and vote on those items on a case-by-case basis.
Auditors
We normally vote for proposals to:
o Ratify the auditors. We will consider a vote against if we are
concerned about the auditors' independence or their past work for
the company. Specifically, we will oppose the ratification of
auditors and withhold votes from audit committee members if
non-audit fees paid by the company to the auditing firm exceed the
sum of audit fees plus audit-related fees plus permissible tax
fees according to the disclosure categories proposed by the
Securities and Exchange Commission.
o Restore shareholder rights to ratify the auditors.
We will normally oppose proposals that require companies to:
o Seek bids from other auditors.
o Rotate auditing firms, except where the rotation is statutorily
required or where rotation would demonstrably strengthen financial
disclosure.
o Indemnify auditors.
o Prohibit auditors from engaging in non-audit services for the
company.
Board of Directors
On issues related to the board of directors, Pioneer normally supports
management. We will, however, consider a vote against management in
instances where corporate performance has been very poor or where the board
appears to lack independence.
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General Board Issues
Pioneer will vote for:
o Audit, compensation and nominating committees composed of
independent directors exclusively.
o Indemnification for directors for actions taken in good faith in
accordance with the business judgment rule. We will vote against
proposals for broader indemnification.
o Changes in board size that appear to have a legitimate business
purpose and are not primarily for anti-takeover reasons.
o Election of an honorary director.
We will vote against:
o Minimum stock ownership by directors.
o Term limits for directors. Companies benefit from experienced
directors, and shareholder control is better achieved through
annual votes.
o Requirements for union or special interest representation on the
board.
o Requirements to provide two candidates for each board seat.
We will vote on a case-by case basis on these issues:
o Separate chairman and CEO positions. We will consider voting with
shareholders on these issues in cases of poor corporate
performance.
Elections of Directors
In uncontested elections of directors we will vote against:
o Individual directors with absenteeism above 25% without valid
reason. We support proposals that require disclosure of director
attendance.
o Insider directors and affiliated outsiders who sit on the audit,
compensation, stock option or nominating committees. For the
purposes of our policy, we accept the definition of affiliated
directors provided by our proxy voting service.
We will also vote against:
o Directors who have failed to act on a takeover offer where the
majority of shareholders have tendered their shares.
o Directors who appear to lack independence or are associated with
very poor corporate performance.
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We will vote on a case-by case basis on these issues:
o Re-election of directors who have implemented or renewed a
dead-hand or modified dead-hand poison pill (a "dead-hand poison
pill" is a shareholder rights plan that may be altered only by
incumbent or "dead " directors. These plans prevent a potential
acquirer from disabling a poison pill by obtaining control of the
board through a proxy vote).
o Contested election of directors.
o Prior to phase-in required by SEC, we would consider supporting
election of a majority of independent directors in cases of poor
performance.
o Mandatory retirement policies.
o Directors who have ignored a shareholder proposal that has been
approved by shareholders for two consecutive years.
Takeover-Related Measures
Pioneer is generally opposed to proposals that may discourage takeover
attempts. We believe that the potential for a takeover helps ensure that
corporate performance remains high.
Pioneer will vote for:
o Cumulative voting.
o Increase ability for shareholders to call special meetings.
o Increase ability for shareholders to act by written consent.
o Restrictions on the ability to make greenmail payments.
o Submitting rights plans to shareholder vote.
o Rescinding shareholder rights plans ("poison pills").
o Opting out of the following state takeover statutes:
o Control share acquisition statutes, which deny large holders voting
rights on holdings over a specified threshold.
o Control share cash-out provisions, which require large holders to
acquire shares from other holders.
o Freeze-out provisions, which impose a waiting period on large
holders before they can attempt to gain control.
o Stakeholder laws, which permit directors to consider interests of
non-shareholder constituencies.
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o Disgorgement provisions, which require acquirers to disgorge profits
on purchases made before gaining control.
o Fair price provisions.
o Authorization of shareholder rights plans.
o Labor protection provisions.
o Mandatory classified boards.
We will vote on a case-by-case basis on the following issues:
o Fair price provisions. We will vote against provisions requiring
supermajority votes to approve takeovers. We will also consider
voting against proposals that require a supermajority vote to
repeal or amend the provision. Finally, we will consider the
mechanism used to determine the fair price; we are generally
opposed to complicated formulas or requirements to pay a premium.
o Opting out of state takeover statutes regarding fair price
provisions. We will use the criteria used for fair price
provisions in general to determine our vote on this issue.
o Proposals that allow shareholders to nominate directors.
We will vote against:
o Classified boards, except in the case of closed-end mutual funds.
o Limiting shareholder ability to remove or appoint directors. We
will support proposals to restore shareholder authority in this
area. We will review on a case-by-case basis proposals that
authorize the board to make interim appointments.
o Classes of shares with unequal voting rights.
o Supermajority vote requirements.
o Severance packages ("golden" and "tin" parachutes). We will support
proposals to put these packages to shareholder vote.
o Reimbursement of dissident proxy solicitation expenses. While we
ordinarily support measures that encourage takeover bids, we
believe that management should have full control over corporate
funds.
o Extension of advance notice requirements for shareholder proposals.
o Granting board authority normally retained by shareholders (e.g.,
amend charter, set board size).
o Shareholder rights plans ("poison pills"). These plans generally
allow shareholders to buy additional shares at a below-market
price in the event of a change in control and may deter some bids.
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Capital Structure
Managements need considerable flexibility in determining the company's
financial structure, and Pioneer normally supports managements' proposals
in this area. We will, however, reject proposals that impose high barriers
to potential takeovers.
Pioneer will vote for:
o Changes in par value.
o Reverse splits, if accompanied by a reduction in number of shares.
o Share repurchase programs, if all shareholders may participate on
equal terms.
o Bond issuance.
o Increases in "ordinary" preferred stock.
o Proposals to have blank-check common stock placements (other than
shares issued in the normal course of business) submitted for
shareholder approval.
o Cancellation of company treasury shares.
We will vote on a case-by-case basis on the following issues:
o Reverse splits not accompanied by a reduction in number of shares,
considering the risk of delisting.
o Increase in authorized common stock. We will make a determination
considering, among other factors:
o Number of shares currently available for issuance;
o Size of requested increase (we would normally approve increases of up to
100% of current authorization);
o Proposed use of the additional shares; and
o Potential consequences of a failure to increase the number of shares
outstanding (e.g., delisting or bankruptcy).
o Blank-check preferred. We will normally oppose issuance of a new
class of blank-check preferred, but may approve an increase in a
class already outstanding if the company has demonstrated that it
uses this flexibility appropriately.
o Proposals to submit private placements to shareholder vote.
o Other financing plans.
We will vote against preemptive rights that we believe limit a company's
financing flexibility.
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Compensation
Pioneer supports compensation plans that link pay to shareholder returns
and believes that management has the best understanding of the level of
compensation needed to attract and retain qualified people. At the same
time, stock-related compensation plans have a significant economic impact
and a direct effect on the balance sheet. Therefore, while we do not want
to micromanage a company's compensation programs, we will place limits on
the potential dilution these plans may impose.
Pioneer will vote for:
o 401(k) benefit plans.
o Employee stock ownership plans (ESOPs), as long as shares
allocated to ESOPs are less than 5% of outstanding shares. Larger
blocks of stock in ESOPs can serve as a takeover defense. We will
support proposals to submit ESOPs to shareholder vote.
o Various issues related to the Omnibus Budget and Reconciliation Act
of 1993 (OBRA), including:
o Amendments to performance plans to conform with OBRA;
o Caps on annual grants or amendments of administrative features;
o Adding performance goals; and
o Cash or cash-and-stock bonus plans.
o Establish a process to link pay, including stock-option grants, to
performance, leaving specifics of implementation to the company.
o Require that option repricings be submitted to shareholders.
o Require the expensing of stock-option awards.
o Require reporting of executive retirement benefits (deferred
compensation, split-dollar life insurance, SERPs, and pension
benefits).
o Employee stock purchase plans where the purchase price is equal to
at least 85% of the market price, where the offering period is no
greater than 27 months and where potential dilution (as defined
below) is no greater than 10%.
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We will vote on a case-by-case basis on the following issues:
o Executive and director stock-related compensation plans. We will
consider the following factors when reviewing these plans:
o The program must be of a reasonable size. We will approve plans
where the combined employee and director plans together would
generate less than 15% dilution. We will reject plans with 15% or
more potential dilution.
Dilution = (A + B + C) / (A + B + C + D), where
A = Shares reserved for plan/amendment,
B = Shares available under continuing plans,
C = Shares granted but unexercised and
D = Shares outstanding.
o The plan must not:
o Explicitly permit unlimited option repricing authority or that
have repriced in the past without shareholder approval.
o Be a self-replenishing "evergreen" plan, plans that grant
discount options and tax offset payments.
o We are generally in favor of proposals that increase participation beyond
executives.
o We generally support proposals asking companies to adopt rigorous
vesting provisions for stock option plans such as those that vest
incrementally over, at least, a three- or four-year period with a pro
rata portion of the shares becoming exercisable on an annual basis
following grant date.
o We generally support proposals asking companies to disclose their
window period policies for stock transactions. Window period policies
ensure that employees do not exercise options based on insider
information contemporaneous with quarterly earnings releases and other
material corporate announcements.
o We generally support proposals asking companies to adopt stock holding
periods for their executives.
o All other employee stock purchase plans.
o All other compensation-related proposals, including deferred
compensation plans, employment agreements, loan guarantee programs
and retirement plans.
o All other proposals regarding stock compensation plans, including
extending the life of a plan, changing vesting restrictions,
repricing options, lengthening exercise periods or accelerating
distribution of awards and pyramiding and cashless exercise
programs.
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We will vote against:
o Pensions for non-employee directors. We believe these retirement
plans reduce director objectivity.
o Elimination of stock option plans.
We will vote on a case-by case basis on these issues:
o Limits on executive and director pay.
o Stock in lieu of cash compensation for directors.
Corporate Governance
Pioneer will vote for:
o Confidential Voting.
o Equal access provisions, which allow shareholders to contribute
their opinion to proxy materials.
o Proposals requiring directors to disclose their ownership of shares
in the company.
We will vote on a case-by-case basis on the following issues:
o Change in the state of incorporation. We will support
reincorporations supported by valid business reasons. We will
oppose those that appear to be solely for the purpose of
strengthening takeover defenses.
o Bundled proposals. We will evaluate the overall impact of the
proposal.
o Adopting or amending the charter, bylaws or articles of association.
o Shareholder appraisal rights, which allow shareholders to demand
judicial review of an acquisition price.
We will vote against:
o Shareholder advisory committees. While management should solicit
shareholder input, we prefer to leave the method of doing so to
management's discretion.
o Limitations on stock ownership or voting rights.
o Reduction in share ownership disclosure guidelines.
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Mergers and Restructurings
Pioneer will vote on the following and similar issues on a case-by-case
basis:
o Mergers and acquisitions.
o Corporate restructurings, including spin-offs, liquidations, asset
sales, joint ventures, conversions to holding company and
conversions to self-managed REIT structure.
o Debt restructurings.
o Conversion of securities.
o Issuance of shares to facilitate a merger.
o Private placements, warrants, convertible debentures.
o Proposals requiring management to inform shareholders of merger
opportunities.
We will normally vote against shareholder proposals requiring that the
company be put up for sale.
Mutual Funds
Many of our portfolios may invest in shares of closed-end mutual funds or
exchange-traded funds. The non-corporate structure of these investments
raises several unique proxy voting issues.
Pioneer will vote for:
o Establishment of new classes or series of shares.
o Establishment of a master-feeder structure.
Pioneer will vote on a case-by-case on:
o Changes in investment policy. We will normally support changes
that do not affect the investment objective or overall risk level
of the fund. We will examine more fundamental changes on a
case-by-case basis.
o Approval of new or amended advisory contracts.
o Changes from closed-end to open-end format.
o Authorization for, or increase in, preferred shares.
o Disposition of assets, termination, liquidation, or mergers.
o Classified boards of closed-end mutual funds, but will typically
support such proposals.
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Social Issues
Pioneer will abstain on stockholder proposals calling for greater
disclosure of corporate activities with regard to social issues. "Social
Issues" may generally be described as shareholder proposals for a company
to:
o Conduct studies regarding certain issues of public concern and
interest;
o Study the feasibility of the company taking certain actions with
regard to such issues; or
o Take specific action, including ceasing certain behavior and
adopting company standards and principles, in relation to issues
of public concern and interest.
We believe these issues are important and should receive management
attention.
Pioneer will vote against proposals calling for substantial changes in the
company's business or activities. We will also normally vote against
proposals with regard to contributions, believing that management should
control the routine disbursement of funds.
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.
PORTFOLIO MANAGEMENT
ADDITIONAL INFORMATION ABOUT THE PORTFOLIO MANAGER
OTHER ACCOUNTS MANAGED BY THE PORTFOLIO MANAGER
The table below indicates, for the portfolio manager of the fund, information
about the accounts other than the fund over which the portfolio manager has
day-to-day investment responsibility. All information on the number of accounts
and total assets in the table is as of November 30, 2019. For purposes of the
table, "Other Pooled Investment Vehicles" may include investment partnerships,
undertakings for collective investments in transferable securities ("UCITS")
and other non-U.S. investment funds and group trusts, and "Other Accounts" may
include separate accounts for institutions or individuals, insurance company
general or separate accounts, pension funds and other similar institutional
accounts but generally do not include the portfolio manager's personal
investment accounts or those which the manager may be deemed to own
beneficially under the code of ethics. Certain funds and other accounts managed
by the portfolio manager may have substantially similar investment strategies.
NUMBER OF ASSETS
ACCOUNTS MANAGED
MANAGED FOR FOR WHICH
WHICH ADVISORY ADVISORY
NUMBER OF FEE IS FEE IS
NAME OF ACCOUNTS TOTAL ASSETS PERFORMANCE- PERFORMANCE-
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED MANAGED (000'S) BASED BASED (000'S)
------------------- ---------------------------------- ----------- ----------------- ---------------- --------------
Jonathan Sharkey Other Registered Investment
Companies 3 $7,145,418 N/A N/A
Other Pooled Investment Vehicles 1 $ 371,473 N/A N/A
Other Accounts 1 $ 359,305 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, Amundi 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 Amundi 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. Amundi Pioneer has
structured its compensation arrangements in a manner that is intended to limit
such potential for conflicts of interest. See "Compensation of Portfolio
Managers" below.
o A portfolio manager could favor one account over another in allocating new
investment opportunities that have limited supply, such as initial public
offerings and private placements. If, for example, an initial public
offering that was expected to appreciate in value significantly shortly
after the offering was allocated to a single account, that account may be
expected to have better investment performance than other accounts that did
not receive an allocation of the initial public offering. Generally,
investments for which there is limited availability are allocated based upon
a range of factors including available cash and consistency with the
accounts' investment objectives and policies. This allocation methodology
necessarily involves some subjective elements but is intended over time to
treat each client in an equitable and fair manner. Generally, the investment
opportunity is allocated among participating accounts on a pro rata
0
basis. Although Amundi 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,
Amundi 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 Amundi 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, Amundi Pioneer seeks to avoid such potentially
conflicting situations. However, where a portfolio manager is responsible
for accounts with differing investment objectives and policies, it is
possible that the portfolio manager will conclude that it is in the best
interest of one account to sell a portfolio security while another account
continues to hold or increase the holding in such security.
COMPENSATION OF PORTFOLIO MANAGER
Amundi 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 Amundi Pioneer. The
compensation program for all Amundi 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. Amundi 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
1
with the financial performance of Amundi 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 AMUNDI PIONEER RESULTS AND BUSINESS LINE RESULTS. Amundi Pioneer's financial
performance, as well as the investment performance of its investment
management group, affect a portfolio manager's actual bonus by a leverage
factor of plus or minus (+/-) a predetermined percentage.
The quantitative and qualitative performance components comprise 80% and 20%,
respectively, of the overall bonus calculation (on a pre-adjustment basis). A
portion of the annual bonus is deferred for a specified period and may be
invested in one or more Pioneer funds.
Certain portfolio managers participate in other programs designed to reward and
retain key contributors. Portfolio managers also may participate in a deferred
compensation program, whereby deferred amounts are invested in one or more
Pioneer funds or collective investment trusts or other unregistered funds with
similar investment objectives, strategies and policies.
SHARE OWNERSHIP BY PORTFOLIO MANAGER
The following table indicates as of November 30, 2019 the value, within the
indicated range, of shares beneficially owned by the portfolio manager of the
fund.
BENEFICIAL OWNERSHIP
NAME OF PORTFOLIO MANAGER OF THE FUND*
--------------------------- ---------------------
Jonathan Sharkey A
--------------------------- ---------------------
* Key to Dollar Ranges
A. None
B. $1 - $10,000
C. $10,001 - $50,000
D. $50,001 - $100,000
E. $100,001 - $500,000
F. $500,001 - $1,000,000
G. Over $1,000,000
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
During the period covered by this report, there were no purchases
made by or on behalf of the registrant or any affiliated purchaser
as defined in Rule 10b-18(a)(3) under the Securities Exchange Act
of 1934 (the Exchange Act), of shares of the registrants equity
securities that are registered by the registrant pursuant to
Section 12 of the Exchange Act
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies.
(a) If the registrant is a closed-end management investment company,
provide the following dollar amounts of income and compensation related
to the securities lending activities of the registrant during its most
recent fiscal year:
N/A
(1) Gross income from securities lending activities;
N/A
(2) All fees and/or compensation for each of the following securities
lending activities and related services: any share of revenue generated
by the securities lending program paid to the securities lending agent(s)
(revenue split); fees paid for cash collateral management services
(including fees deducted from a pooled cash collateral reinvestment
vehicle) that are not included in the revenue split; administrative
fees that are not included in the revenue split; fees for
indemnification that are not included in the revenue split; rebates
paid to borrowers; and any other fees relating to the securities lending
program that are not included in the revenue split, including a description
of those other fees;
N/A
(3) The aggregate fees/compensation disclosed pursuant to paragraph (2); and
N/A
(4) Net income from securities lending activities (i.e., the dollar amount in
paragraph (1) minus the dollar amount in paragraph (3)).
If a fee for a service is included in the revenue split, state that the fee
is included in the revenue split.
N/A
(b) If the registrant is a closed-end management investment company, describe
the services provided to the registrant by the securities lending agent in
the registrants most recent fiscal year.
N/A
ITEM 13. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Floating Rate Trust
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date January 31, 2020
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date January 31, 2020
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date January 31, 2020
* Print the name and title of each signing officer under his or her signature.