OMB APPROVAL
OMB Number: 3235-0570
Expires: January 31, 2014
Estimated average burden
hours per response.....20.6
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 811-21043
Pioneer High Income Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: March 31
Date of reporting period: April 1, 2013 through September 30, 2013
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer High
Income Trust
--------------------------------------------------------------------------------
Semiannual Report | September 30, 2013
--------------------------------------------------------------------------------
Ticker Symbol: PHT
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Schedule of Investments 13
Financial Statements 40
Notes to Financial Statements 45
Trustees, Officers and Service Providers 58
Pioneer High Income Trust | Semiannual Report | 9/30/13 1
President's Letter
Dear Shareowner,
When we look at the U.S. economy heading into the final quarter of 2013, we
continue to see slow, but steady, growth. Employment has also been rising
steadily, but only modestly. Consumer incomes, savings, wealth, and
debt-servicing capacity have been solid buttresses for the recovering housing
and auto industries. Industrial activity is growing only modestly, but current
corporate profits are generally solid and balance sheets appear able to support
needed capital spending and dividend* payouts. The scaled-back "fiscal cliff"
tax increases and spending cuts have meaningfully cut the budget deficit without
driving the economy into recession. In addition, we feel that continuing slack
in labor markets and capacity utilization offers the potential for continuing
growth without bottlenecks and rising inflation.
After observing the strengthening economic trends, the Federal Reserve (the Fed)
hinted that it might begin scaling back its "QE" quantitative easing program
later in 2013 and could terminate its bond purchases altogether sometime in
2014. In September, however, the Fed surprised many market participants by
deciding not to start scaling back QE yet. The Fed has also said that short-term
interest rates are likely to remain near zero for some time to come, given that
inflation remains subdued and unemployment remains too high.
As September ended, Congress had not yet passed a continuing resolution to
prevent a government shutdown, nor had it raised the debt ceiling, and a quick
resolution to the impasse appeared unlikely. The U.S. government's partial
shutdown in October rattled the markets to a degree, but did not immediately
have a significant negative impact on the economy or capital markets.
There are certainly risks and uncertainties that continue to plague the global
economy as we head into the final months of the year. The European economy
remains weak, though it is beginning to show signs of stabilization, and a
number of countries in the emerging markets have experienced difficulties.
Still, a potential ending of the European recession, continuing economic
improvement in Japan in response to the new government's easing policies, and a
"soft landing" of 7% growth in China could very well result in an improving
global outlook over the remainder of 2013 and in 2014.
There are also geopolitical worries abroad and the aforementioned political
fights at home, and while most of the widely recognized risks we've outlined may
already be "priced into" the market, we believe investors should continue to
expect market volatility.
* Dividends are not guaranteed.
2 Pioneer High Income Trust | Semiannual Report | 9/30/13
The Fed's aggressive monetary policies and fears about economic growth had
helped drive long-term Treasury yields to unsustainably low levels; the return
to more normal levels has resulted in disappointing returns for bond investors
during the first nine months of 2013, but the stock market has delivered
double-digit returns to equity investors who were willing to brave the "wall of
worry".
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification alone does not assure a
profit or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. Our advice, as
always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs, keeping in mind that there is no single best strategy that
works for every investor.
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in global equity and bond markets, using in-depth research to identify
undervalued individual securities, and using thoughtful risk management to
construct portfolios which balance potential risks and reward in an
ever-changing world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer High Income Trust | Semiannual Report | 9/30/13 3
Portfolio Management Discussion | 9/30/13
The environment for investing in fixed-income securities generally became more
unsettled during the six-month period ended September 30, 2013, but high-yield
corporate bonds and other credit-sensitive securities held up much better than
Treasuries, and higher-rated securities that were more sensitive to changes in
interest rates. In the following interview, Andrew Feltus discusses the factors
that affected the performance of Pioneer High Income Trust during the six-month
period. Mr. Feltus, a senior vice president and a portfolio manager at Pioneer,
is responsible for day-to-day management of the Trust.
Q How did the Trust perform during the six-month period ended September 30,
2013?
A Pioneer High Income Trust returned 2.66% at net asset value and 5.19% at
market price during the six-month period ended September 30, 2013. During
the same six-month period, the Trust's benchmark, the Bank of America
Merrill Lynch (BofA ML) High Yield Master II Index, returned 0.87%. The BofA
ML High Yield Master II Index is an unmanaged, commonly accepted measure of
the performance of high-yield securities. Unlike the Trust, the BofA ML High
Yield Master II Index does not use leverage. While the use of leverage
increases investment opportunity, it also increases investment risk. During
the same six-month period, the average return (at market price) of the 42
closed-end funds in Lipper's High Current Yield Closed End Funds category
(which may or may not be leveraged) was 1.80%.
The shares of the Trust were selling at a 22.2% premium to net asset value
at the end of the six-month period on September 30, 2013.
On September 30, 2013, the Trust's standard 30-day SEC yield was 13.67*.
Q How would you describe the investment environment for fixed-income investors
during the six-month period ended September 30, 2013?
A Market conditions became more challenging during the period, amid
uncertainty over how long the pro-growth policies of the U.S. Federal
Reserve System (the Fed) would continue, and whether political bickering in
Washington might undermine the economic recovery.
U.S. Treasuries performed particularly poorly during the six-month period,
but credit-sensitive securities also were affected by the market
environment. Investment-grade corporate bonds posted negative returns during
the six-month period, although U.S. high-yield corporate bonds were able to
* 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 High Income Trust | Semiannual Report | 9/30/13
deliver modestly positive returns. Elsewhere, emerging markets investments
and currencies were especially affected by market conditions, as investors
saw those securities as particularly vulnerable to rising interest rates.
Near the end of the six-month period, a series of perceived positive
developments affected sentiment in the bond market, and Treasuries even
staged a modest improvement in performance during September, the final month
of the period. The first development was the growing expectation that Fed
Vice Chairman Janet Yellen would be nominated to succeed Mr. Bernanke as
chairman. Ms. Yellen is not viewed by most as someone who would move
aggressively to end the Fed's accommodative policies. Second, the Fed met in
mid-September and announced that it would not yet begin tapering QE--to the
relief of the bond market. Finally, the debates in Washington over U.S.
fiscal policy and raising the government's debt ceiling rattled the capital
markets in general, but also led to a brief comeback in the values of
Treasury securities, which were seen as the safest asset class during a time
of uncertainty.
Despite the volatility in the fixed-income market, the economic fundamentals
in the United States continued to strengthen, with non-farm payrolls adding
an average of 160,000 new jobs per month over the six-month period.
Corporate profits remained strong, while companies continued to generate new
cash flows. In fact, stock prices maintained their upward climb, with the
Standard & Poor's 500 Index returning 8.31% during the six-month period.
Q How did you manage the Trust's portfolio in that environment during the
six-month period ended September 30, 2013?
A During the period, the Trust's portfolio was well positioned for a
challenging investment environment, which helped the Trust to outperform the
benchmark BofA ML High Yield Master II Index, while continuing to deliver a
healthy dividend**. We kept the portfolio's overall duration low during the
six-month period, and this helped to buffer the effects of rising interest
rates, which tended to undermine bond prices. At the end of the period, on
September 30, 2013, the portfolio's effective duration was just 2.98 years.
In addition, we built up a good cash position, representing about 3% of the
Trust's total investment portfolio. The cash position helped us take to
advantage of a market decline late in the period and buy more attractively
priced securities that offered good investment value and generous yields.
Throughout the six-month period, the Trust's portfolio had large weightings
in the more credit-sensitive sectors of the bond market, particularly
domestic high-yield corporate bonds, which accounted for more than 57%
** Dividends are not guaranteed.
Pioneer High Income Trust | Semiannual Report | 9/30/13 5
of the Trust's total investment portfolio as of September 30, 2013. In
addition, international high-yield investments accounted for 9% of the
Trust's total investment portfolio, while convertible bonds and
event-linked, floating-rate bonds (also known as catastrophe bonds) each
represented roughly 4%. U.S. investment-grade corporate bonds accounted for
more than 3% of the Trust's total investment portfolio as of period end,
while emerging markets investments represented nearly 6%. Weaker-performing
government securities represented less than 1% of the Trust's total
investment portfolio.
Q What individual investments had the greatest effects on the Trust's
performance during the six-month period ended September 30, 2013?
A The Trust's holdings of two auto industry-related securities performed very
well during the period, helped by strong company fundamentals and a general
rebound in the automotive sector of the economy. Convertible securities
issued by Meritor, a global automotive components distributor, gained during
the period as the company's stock price rallied on good earnings results.
In addition, the portfolio's position in a derivative security - a credit
default swap - referencing Goodyear Tire & Rubber increased in value as
the company fared well during the period.
Among the portfolio's high-yield bond holdings, two mining-related companies
were solid performers. The first was Quicksilver Resources, an energy and
exploration corporation, whose debt gained in value as the company
restructured its operations and sold off some assets. Those moves resulted
in an improvement in the credit quality of Quicksilver's bonds. The second
was Midwest Vanadium, an Australian miner of vanadium, which is a substance
used in the production process to help harden steel. The bonds rose in value
after the company resolved some problems that had previously hampered its
operations.
The rising interest-rate environment during the six-month period undermined
the value of some portfolio holdings of longer-maturity debt issued by
financial companies. Two portfolio holdings that particularly detracted from
the Trust's results during the period were bonds issued by Goldman Sachs,
and by Bank of America. Another portfolio investment that underperformed
were securities issued by Mirabela Nickel, an Australian miner that took a
hit when the price of nickel declined. The general decline in the emerging
markets also undermined the performance of two other portfolio holdings:
IMPSA, an Argentine renewable energy company; and Minerva, a Brazilian beef
corporation.
6 Pioneer High Income Trust | Semiannual Report | 9/30/13
Q How did the level of leverage in the Trust change during the six-month
period ended September 30, 2013?
A At the end of the six-month period, 27.6% of the Trust's total managed
assets were financed by leverage, compared with 27.2% of the Trust's total
managed assets financed by leverage at the start of the period on April 1,
2013. The increase was due to a decrease in the value of securities in which
the Trust had invested.
Q What is your investment outlook?
A We remain positive about the growth outlooks for both United States economy
and the global economy in general. The political stalemates in the U.S. over
fiscal policy and the national debt ceiling ended, at least temporarily,
several days into the Trust's new fiscal period, and it appears that the
temporary, partial government shutdown in October had only a negligible
effect on the economic recovery. It is true, however, that the political
stalemate in early October appears to have harmed public confidence in the
ability of the U.S. government in general, and a divided Congress, in
particular, to resolve problems. The outlook for 2014 appears to pose fewer
problems, however, although it remains to be seen how Congress will deal
with unresolved fiscal policy and debt-ceiling disagreements, and when the
Fed might begin tapering its accommodative monetary policies.
The U.S. economy showed its resilience in 2013, continuing to strengthen
despite several tax hikes as well as increases in market interest rates. In
this durable economic recovery, American corporations have been able to
continue to grow their profits and clean up their financial balance sheets.
We believe those conditions should be supportive for the credit sectors of
the fixed-income market, the prices of high yield securities are not at
extreme levels, and investors need to be selective, keeping a close eye on
fundamentals when purchasing individual securities.
Pioneer High Income Trust | Semiannual Report | 9/30/13 7
Please refer to the Schedule of Investments on pages 13-39 for a full listing of
Trust securities.
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, economic, and political conditions.
When interest rates rise, the prices of fixed-income securities in the Trust
will generally fall. Conversely, when interest rates fall the prices of
fixed-income securities in the Trust will generally rise.
Investments in the Trust are subject to possible loss due to the financial
failure of the issuers of the underlying securities and their inability to meet
their debt obligations.
The Trust may invest up to 50% of its total assets in illiquid securities.
Illiquid securities may be difficult to dispose of at a fair price at the times
when the Trust believes it is desirable to do so, and their market price is
generally more volatile than that of more liquid securities. Illiquid securities
are also more difficult to value and investment of the Trust's assets in
illiquid securities may restrict the Trust's ability to take advantage of market
opportunities.
The Trust currently uses leverage through the issuance of preferred shares.
Leverage creates significant risks, including the risk that the Trust's income
or capital appreciation will not be sufficient to cover the cost of leverage,
which may adversely affect the return for the holders of common shares. Since
February of 2008, regularly scheduled auctions for the Trust's preferred shares
have failed and preferred shareowners have not been able to sell their shares at
auction. The Board of Trustees of the Trust has considered, and continues to
consider, this issue.
The Trust is required to maintain certain regulatory and rating agency asset
coverage requirements in connection with its outstanding preferred shares. In
order to maintain required asset coverage levels, the Trust may be required to
alter the composition of its investment portfolio or take other actions, such as
redeeming preferred shares with the proceeds from portfolio transactions, at
what might be inopportune times in the market. Such actions could reduce the net
earnings or returns to holders of the Trust's common shares over time.
Risks of investing in the Trust are discussed in greater detail in the Trust's
original offering documents relating to its common shares and shareowner reports
issued from time to time.
These risks may increase share price volatility.
8 Pioneer High Income Trust | Semiannual Report | 9/30/13
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report.
These statements should not be relied upon for any other purposes.
Pioneer High Income Trust | Semiannual Report | 9/30/13 9
Portfolio Summary | 9/30/13
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Corporate Bonds & Notes 80.8%
Convertible Bonds & Notes 4.3%
Senior Secured Floating Rate Loan Interests 3.3%
Tax Exempt Obligations 3.2%
Temporary Cash Investments 3.0%
Common Stocks 1.5%
Asset Backed Securities 1.0%
Preferred Stocks 0.9%
Sovereign Debt Obligations 0.6%
Collateralized Mortgage Obligations 0.5%
Convertible Preferred Stock 0.5%
Municipal Collateralized Debt Obligation 0.4%
Rights/Warrants 0.0%*
* Rounds to less than 0.1%
Portfolio Maturity
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
0-2 year 7.4%
2-5 years 35.9%
5-7 years 29.3%
7-10 years 12.2%
10-20 years 9.3%
20+ years 5.9%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)**
1. Chrysler Group LLC/CG Co-Issuer, Inc., 8.0%, 6/15/19 1.28%
--------------------------------------------------------------------------------
2. Hanover Insurance Corp., 7.625%, 10/15/25 1.23
--------------------------------------------------------------------------------
3. Charlotte Special Facilities Revenue, 5.6%, 7/1/27 1.16
--------------------------------------------------------------------------------
4. Samson Investment Co., 10.25%, 2/15/20 (144A) 1.12
--------------------------------------------------------------------------------
5. HUB International, Ltd., 8.125%, 10/15/18 (144A) 1.05
--------------------------------------------------------------------------------
6. Mueller Water Products, Inc., 7.375%, 6/1/17 1.02
--------------------------------------------------------------------------------
7. Pegasus Solutions, Inc., 13.0%, 4/15/14 (144A) 0.93
--------------------------------------------------------------------------------
8. Xerium Technologies, Inc., 8.875%, 6/15/18 0.89
--------------------------------------------------------------------------------
9. Stanadyne Holdings, Inc., 10.0%, 8/15/14 0.88
--------------------------------------------------------------------------------
10. Liberty Mutual Group, Inc., 10.75%, 6/15/58 (144A) 0.87
--------------------------------------------------------------------------------
** This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
10 Pioneer High Income Trust | Semiannual Report | 9/30/13
Prices and Distributions | 9/30/13
Market Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9/30/13 3/31/13
--------------------------------------------------------------------------------
$16.96 $16.97
--------------------------------------------------------------------------------
Premium 22.2% 19.3%
--------------------------------------------------------------------------------
Net Asset Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9/30/13 3/31/13
--------------------------------------------------------------------------------
$13.88 $14.23
--------------------------------------------------------------------------------
Distributions per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
4/1/13 - 9/30/13 $0.83 $-- $--
--------------------------------------------------------------------------------
Pioneer High Income Trust | Semiannual Report | 9/30/13 11
Performance Update | 9/30/13
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in market value, plus
reinvested dividends and distributions, of a $10,000 investment made in common
shares of Pioneer High Income Trust during the periods shown, compared to that
of the Bank of America Merrill Lynch High Yield Master II Index.
Average Annual Total Returns
(As of September 30, 2013)
--------------------------------------------------------------------------------
Net Asset Market
Period Value (NAV) Price
--------------------------------------------------------------------------------
10 Years 11.67% 13.79%
5 Years 16.27 24.69
1 Year 12.88 0.75
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Market Value of $10,000 Investment
Pioneer High Bank of America Merrill Lynch
Income Trust High Yield Master II Index
9/30/2003 $ 10000 $ 10,000
9/30/2004 $ 9965 $ 11,235
9/30/2005 $ 11335 $ 11,988
9/30/2006 $ 12310 $ 12,939
9/30/2007 $ 13392 $ 13,939
9/30/2008 $ 9595 $ 12,317
9/30/2009 $ 12443 $ 15,070
9/30/2010 $ 15558 $ 17,860
9/30/2011 $ 16720 $ 18,096
9/30/2012 $ 21180 $ 21,524
9/30/2013 $ 19274 $ 23,050
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV, due to such factors as interest rate
changes and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Closed-end funds, unlike open-end funds, are not continuously offered. There is
a one-time public offering and, once issued, shares of closed-end funds are sold
in the open market through a stock exchange and frequently trade at prices lower
than their NAV. NAV per common share is total assets less total liabilities,
which includes preferred shares, divided by the number of common shares
outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends are
assumed to be reinvested at prices obtained under the Trust's dividend
reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the sale of Trust shares.
The Bank of America Merrill Lynch High Yield Master II Index is an unmanaged,
commonly accepted measure of the performance of high yield securities. Index
returns are calculated monthly, assume reinvestment of dividends and, unlike
Trust returns, do not reflect any fees, expenses or sales charges. The Index
does not employ leverage. It is not possible to invest directly in the Index.
12 Pioneer High Income Trust | Semiannual Report | 9/30/13
Schedule of Investments | 9/30/13 (unaudited)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 1.4% of
Net Assets
BANKS -- 0.2%
Thrifts & Mortgage Finance -- 0.2%
102,910(a) CCC/Caa3 Amortizing Residential Collateral Trust,
Series 2002-BC1, Class M1, 1.454%,
1/25/32 $ 64,853
125,000 BB/NR CarNow Auto Receivables Trust, Series
2012-1A, Class D, 6.9%, 11/15/16 (144A) 128,635
412,000(b) CCC/C Citicorp Residential Mortgage Trust, Series
2006-2, Class M1, 5.918%, 9/25/36 367,746
250,000(c) B-/B3 Security National Mortgage Loan Trust,
Series 2007-1A, Class 1A3, 6.55%,
4/25/37 (144A) 244,773
-----------------
Total Banks $ 806,007
----------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.6%
Hotels, Resorts, Cruise Lines -- 0.6%
328,319 BB/NR Westgate Resorts LLC, Series 2012-2A,
Class C, 9.0%, 1/20/25 (144A) $ 331,500
1,950,198 NR/NR Westgate Resorts LLC, Series 2012-BA,
Class A, 9.5%, 2/20/25 (144A) 1,945,322
214,968 NR/NR Westgate Resorts LLC, Series 2013-1A,
Class B, 3.75%, 8/20/25 (144A) 211,542
-----------------
Total Consumer Services $ 2,488,364
----------------------------------------------------------------------------------------------------------
MATERIALS -- 0.1%
Steel -- 0.1%
332,678(b) B+/B3 Accredited Mortgage Loan Trust, Series
2003-3, Class A1, 5.21%, 1/25/34 $ 314,711
-----------------
Total Materials $ 314,711
----------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.5%
Airlines -- 0.5%
1,370,299(a) CCC/Caa3 Aircraft Finance Trust, Series 1999-1A,
Class A1, 0.662%, 5/15/24 (144A) $ 589,229
28(a) B-/Ba3 Aircraft Finance Trust, Series 1999-1A,
Class A2, 0.682%, 5/15/24 (144A) 24
657,644(a) CCC+/Caa2 Aviation Capital Group Trust, Series 2000- 1A,
Class A1, 0.662%, 11/15/25 (144A) 335,398
1,466,524(a) CCC/Caa2 Lease Investment Flight Trust, Series 1,
Class A1, 0.572%, 7/15/31 1,026,567
-----------------
Total Transportation $ 1,951,218
----------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $5,574,022) $ 5,560,300
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 13
Schedule of Investments | 9/30/13 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 0.8% of Net Assets
BANKS -- 0.8%
Thrifts & Mortgage Finance -- 0.8%
1,462,520(a) CCC/Caa2 Carrington Mortgage Loan Trust, Series
2007-FRE1, Class A2, 0.379%, 2/25/37 $ 1,298,221
400,000 NR/NR Extended Stay America Trust, Series
2013- ESHM, Class M, 7.625%,
12/5/19 (144A) 415,072
300,000(c) BB+/Ba2 GS Mortgage Securities Corp. II Commercial
Mortgage Pass Through Certificates, Series
2004-GG2, Class E, 5.938%, 8/10/38 297,290
339,056 NR/NR Homeowner Assistance Program Reverse
Mortgage Loan Trust, Series 2013-RM1,
Class A, 4.0%, 5/26/53 (144A) 328,996
250,000(c) BB/NR Springleaf Mortgage Loan Trust, Series
2013-1A, Class B1, 5.58%, 6/25/58 (144A) 249,682
498,000(c) BB-/Ba3 Wachovia Bank Commercial Mortgage Trust,
Series 2006-C24, Class AJ, 5.658%,
3/15/45 492,174
-----------------
Total Banks $ 3,081,435
----------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.0%+
Investment Banking & Brokerage -- 0.0%+
201,274(c) BBB-/NR Bear Stearns Commercial Mortgage Securities,
Series 2001-TOP2, Class D, 6.94%,
2/15/35 (144A) $ 200,905
-----------------
Total Diversified Financials $ 200,905
----------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $3,259,424) $ 3,282,340
----------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE
LOAN INTERESTS -- 4.1% of Net Assets*
COMMERCIAL & PROFESSIONAL
SERVICES -- 0.3%
Research & Consulting Services -- 0.3%
1,000,000 CCC+/Caa1 Sourcehov LLC, Second Lien Term Loan,
8.75%, 4/30/19 $ 1,012,917
-----------------
Total Commercial & Professional Services $ 1,012,917
----------------------------------------------------------------------------------------------------------
ENERGY -- 0.2%
Coal & Consumable Fuels -- 0.2%
750,000 NR/NR PT Bumi Resources Tbk, Term Loan,
18.182%, 11/7/14 $ 750,000
-----------------
Total Energy $ 750,000
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer High Income Trust | Semiannual Report | 9/30/13
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.8%
Agricultural Products -- 0.2%
1,046,525 CCC+/Caa1 Arysta LifeScience SPC LLC, Initial Second
Lien Term Loan, 8.25%, 11/30/20 $ 1,047,179
----------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 0.6%
2,180,000 B-/NR New HB Acquisition LLC, Term B Loan,
6.75%, 4/9/20 $ 2,250,850
-----------------
Total Food, Beverage & Tobacco $ 3,298,029
----------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.5%
Health Care Services -- 0.2%
503,454 NR/NR Rural / Metro Corp., Delayed Draw Term
Loan, 11.0%, 3/1/14 $ 506,885
----------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.3%
1,224,201 CCC/Caa3 Medical Card System, Inc., Term Loan,
12.0%, 9/17/15 $ 1,169,112
-----------------
Total Health Care Equipment & Services $ 1,675,997
----------------------------------------------------------------------------------------------------------
INSURANCE -- 0.4%
Property & Casualty Insurance -- 0.4%
1,385,452 CCC/Caa2 Confie Seguros Holding II Co., Second Lien
Term Loan, 10.25%, 5/8/19 $ 1,395,265
-----------------
Total Insurance $ 1,395,265
----------------------------------------------------------------------------------------------------------
MATERIALS -- 0.3%
Diversified Metals & Mining -- 0.0%+
126,444(d) NR/NR Long Haul Holdings, Ltd., Facility Term Loan A,
0.0%, 1/12/13 $ 51,842
100,918(d) NR/NR PT Bakrie & Brothers Tbk, Facility Term Loan B,
0.0%, 1/20/13 41,376
-----------------
$ 93,218
----------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.1%
425,383 B-/Caa1 Macdermid, Inc., Second Lien Term Loan,
7.75%, 12/7/20 $ 431,763
----------------------------------------------------------------------------------------------------------
Steel -- 0.2%
792,000 B/B1 Essar Steel Algoma, Inc., Term Loan,
8.75%, 9/19/14 $ 802,890
-----------------
Total Materials $ 1,327,871
----------------------------------------------------------------------------------------------------------
RETAILING -- 0.3%
Computer & Electronics Retail -- 0.3%
1,412,723 B/B2 Targus Group International, Inc., Term Loan,
12.0%, 5/24/16 $ 1,271,451
-----------------
Total Retailing $ 1,271,451
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 15
Schedule of Investments | 9/30/13 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.1%
Application Software -- 1.1%
1,700,000 NR/NR Applied Systems, Inc., Second Lien Term
Loan, 8.25%, 6/8/17 $ 1,718,595
2,500,000 CCC+/Caa1 Vertafore, Inc., Second Lien Term Loan,
9.75%, 10/29/17 2,553,750
-----------------
Total Software & Services $ 4,272,345
----------------------------------------------------------------------------------------------------------
UTILITIES -- 0.2%
Electric Utilities -- 0.2%
1,316,443 CCC/Caa3 Texas Competitive Electric Holdings Co., LLC,
2017 Term Loan, 4.766%, 10/10/17 $ 888,599
-----------------
Total Utilities $ 888,599
----------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE
LOAN INTERESTS
(Cost $16,147,152) $ 15,892,474
----------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES --
108.2% of Net Assets
AUTOMOBILES & COMPONENTS -- 2.7%
Auto Parts & Equipment -- 0.9%
2,000,000(e) B/Caa1 Cooper-Standard Holding, Inc., 7.375%,
4/1/18 (144A) $ 2,010,000
1,140,000 B/Caa1 International Automotive Components
Group SA, 9.125%, 6/1/18 (144A) 1,174,200
229,000 BB-/B1 Tomkins LLC/Tomkins, Inc., 9.0%, 10/1/18 249,610
-----------------
$ 3,433,810
----------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 1.8%
6,000,000 B/B1 Chrysler Group LLC/CG Co-Issuer, Inc.,
8.0%, 6/15/19 $ 6,630,000
500,000 B/B1 Chrysler Group LLC/CG Co-Issuer, Inc.,
8.25%, 6/15/21 560,000
-----------------
$ 7,190,000
-----------------
Total Automobiles & Components $ 10,623,810
----------------------------------------------------------------------------------------------------------
BANKS -- 1.1%
Regional Banks -- 0.3%
1,225,000(c)(f) BBB/Baa3 PNC Financial Services Group, Inc.,
4.483%, 5/29/49 $ 1,218,875
----------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.8%
2,925,000 B+/Ba3 Provident Funding Associates LP / PFG
Finance Corp., 6.75%, 6/15/21 (144A) $ 2,939,625
-----------------
Total Banks $ 4,158,500
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Trust | Semiannual Report | 9/30/13
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 10.4%
Aerospace & Defense -- 1.8%
3,300,000 B-/Caa1 ADS Tactical, Inc., 11.0%, 4/1/18 (144A) $ 2,986,500
3,889,000 B-/B2 DynCorp International, Inc., 10.375%, 7/1/17 4,005,670
-----------------
$ 6,992,170
----------------------------------------------------------------------------------------------------------
Building Products -- 0.3%
2,375,000 CC/Caa3 New Enterprise Stone & Lime Co., Inc.,
11.0%, 9/1/18 $ 1,413,125
----------------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.4%
1,500,000 B/B2 Abengoa Finance SAU, 8.875%,
11/1/17 (144A) $ 1,485,000
----------------------------------------------------------------------------------------------------------
Construction & Farm Machinery &
Heavy Trucks -- 2.2%
774,000 B+/B3 Manitowoc Co., Inc., 9.5%, 2/15/18 $ 830,115
2,000,000 CCC/B3 Navistar International Corp., 8.25%, 11/1/21 2,025,000
4,760,000 CCC-/Caa2 Stanadyne Holdings, Inc., 10.0%, 8/15/14 4,545,800
2,500,000(b) CC/Ca Stanadyne Holdings, Inc., 12.0%, 2/15/15 1,400,000
-----------------
$ 8,800,915
----------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.5%
2,000,000 B-/B3 WireCo WorldGroup, Inc., 9.5%, 5/15/17 $ 2,070,000
----------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.7%
1,710,000 B/B3 Boart Longyear Management Pty, Ltd.,
7.0%, 4/1/21 (144A) $ 1,265,400
770,000 BB-/B1 Boart Longyear Management Pty, Ltd.,
10.0%, 10/1/18 (144A) 777,700
605,000 B+/B2 JB Poindexter & Co., Inc., 9.0%, 4/1/22
(144A) 635,250
-----------------
$ 2,678,350
----------------------------------------------------------------------------------------------------------
Industrial Machinery -- 3.4%
1,040,000 B/B2 Cleaver-Brooks, Inc., 8.75%, 12/15/19 (144A) $ 1,123,200
3,180,000(d) NR/WR Indalex Holding Corp., 11.5%, 2/1/14 23,850
1,080,000 B-/Caa2 Liberty Tire Recycling, 11.0%, 10/1/16 (144A) 1,098,900
5,170,000 B/Caa1 Mueller Water Products, Inc., 7.375%, 6/1/17 5,299,250
2,440,000 B-/NR WPE International Cooperatief UA, 10.375%,
9/30/20 (144A) 1,305,400
4,500,000 B/B3 Xerium Technologies, Inc., 8.875%, 6/15/18 4,612,500
-----------------
$ 13,463,100
----------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 1.1%
1,727,000 CCC/Caa1 INTCOMEX, Inc., 13.25%, 12/15/14 $ 1,675,190
2,510,000 B-/B3 TRAC Intermodal LLC / TRAC Intermodal
Corp., 11.0%, 8/15/19 2,811,200
-----------------
$ 4,486,390
-----------------
Total Capital Goods $ 41,389,050
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 17
Schedule of Investments | 9/30/13 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL
SERVICES -- 1.3%
Commercial Printing -- 0.2%
700,000 CCC+/Caa1 Mustang Merger Corp., 8.5%, 8/15/21 (144A) $ 693,000
----------------------------------------------------------------------------------------------------------
Diversified Support Services -- 0.9%
3,400,000 B+/B3 NANA Development Corp., 9.5%,
3/15/19 (144A) $ 3,417,000
----------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 0.2%
892,000 CCC+/B3 Brickman Group Holdings, Inc., 9.125%,
11/1/18 (144A) $ 954,440
2,180,000(d) NR/WR Old AII, Inc., 10.0%, 12/15/16 218
-----------------
$ 954,658
-----------------
Total Commercial & Professional Services $ 5,064,658
----------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 5.3%
Home Furnishings -- 0.2%
850,000 B/B2 SIWF Merger Sub, Inc., 6.25%, 6/1/21 (144A) $ 833,000
----------------------------------------------------------------------------------------------------------
Homebuilding -- 1.0%
3,115,000 CCC/Caa2 Beazer Homes USA, Inc., 9.125%, 6/15/18 $ 3,270,750
750,000 CCC/Caa2 Beazer Homes USA, Inc., 9.125%, 5/15/19 791,250
400,000(d) NR/Ca Urbi Desarrollos Urbanos SAB de CV, 9.75%,
2/3/22 (144A) 68,000
-----------------
$ 4,130,000
----------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 2.7%
1,435,000 BB-/B1 Jarden Corp., 7.5%, 5/1/17 $ 1,635,900
3,000,000 CCC+/Caa2 Reynolds Group Issuer, Inc., 9.0%, 4/15/19 3,150,000
1,430,000 CCC+/Caa2 Reynolds Group Issuer, Inc., 9.875%, 8/15/19 1,551,550
2,905,000 CCC+/B3 Yankee Candle Co., Inc., 9.75%, 2/15/17 2,999,412
1,425,000(e) CCC+/Caa1 YCC Holdings LLC / Yankee Finance, Inc.,
10.25%, 2/15/16 1,458,844
-----------------
$ 10,795,706
----------------------------------------------------------------------------------------------------------
Leisure Products -- 1.4%
EUR 800,000 CCC+/Caa2 Heckler & Koch GmbH, 9.5%, 5/15/18
(144A) $ 1,045,560
4,000,000 CCC+/Caa1 Icon Health & Fitness, Inc., 11.875%,
10/15/16 (144A) 3,400,000
880,000(e) CCC+/Caa2 PC Nextco Holdings LLC / PC Nextco
Finance, Inc., 8.75%, 8/15/19 (144A) 880,000
-----------------
$ 5,325,560
-----------------
Total Consumer Durables & Apparel $ 21,084,266
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Trust | Semiannual Report | 9/30/13
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 4.2%
Business Services -- 0.7%
1,750,000 B/B2 Sitel LLC / Sitel Finance Corp., 11.0%,
8/1/17 (144A) $ 1,868,125
1,000,000 B-/Caa2 Sitel LLC / Sitel Finance Corp., 11.5%,
4/1/18 860,000
-----------------
$ 2,728,125
----------------------------------------------------------------------------------------------------------
Casinos & Gaming -- 0.5%
1,650,000(d) NR/WR Buffalo Thunder Development Authority,
9.375%, 12/15/14 (144A) $ 585,750
1,475,000 NR/NR Little Traverse Bay Bands of Odawa
Indians, 9.0%, 8/31/20 (144A) 1,445,500
606,780 NR/NR Mashantucket Western Pequot Tribe,
6.5%, 7/1/36 87,983
-----------------
$ 2,119,233
----------------------------------------------------------------------------------------------------------
Education Services -- 0.1%
555,000 CCC/Caa1 Cambium Learning Group, Inc., 9.75%,
2/15/17 $ 527,250
----------------------------------------------------------------------------------------------------------
Hotels, Resorts, Cruise Lines -- 0.8%
1,680,000(e) B-/B3 MISA Investments, Ltd., 8.625%, 8/15/18
(144A) $ 1,692,600
1,500,000 CCC+/B2 Seven Seas Cruises S de RL LLC, 9.125%,
5/15/19 1,635,000
-----------------
$ 3,327,600
----------------------------------------------------------------------------------------------------------
Restaurants -- 1.9%
4,055,000(b) B-/Caa1 Burger King Capital Holdings LLC, 0.0%,
4/15/19 (144A) $ 3,568,400
1,400,000 B/B3 Burger King Corp., 9.875%, 10/15/18 1,571,500
2,000,000 CCC/Caa1 Wok Acquisition Corp., 10.25%, 6/30/20
(144A) 2,175,000
-----------------
$ 7,314,900
----------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.2%
740,000 B-/B3 StoneMor Partners LP / Cornerstone Family
Services of WV, 7.875%, 6/1/21 (144A) $ 760,350
-----------------
Total Consumer Services $ 16,777,458
----------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.3%
Asset Management & Custody Banks -- 0.3%
975,000 BBB-/Baa3 Janus Capital Group, Inc., 6.7%, 6/15/17 $ 1,089,526
----------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.5%
1,030,000 B+/B1 Jefferies Finance LLC / JFIN Co-Issuer Corp.,
7.375%, 4/1/20 (144A) $ 1,019,700
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 19
Schedule of Investments | 9/30/13 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
Consumer Finance (continued)
1,035,000 B+/B3 TMX Finance LLC / TitleMax Finance Corp.,
8.5%, 9/15/18 (144A) $ 1,081,575
-----------------
$ 2,101,275
----------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.4%
2,325,000(a)(f) BB+/Ba2 Goldman Sachs Capital II, 4.0% $ 1,697,250
----------------------------------------------------------------------------------------------------------
Multi-Sector Holdings -- 0.5%
2,200,000 B/B3 Constellation Enterprises LLC, 10.625%,
2/1/16 (144A) $ 1,859,000
----------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.4%
3,000,000(b)(g) BBB/NR Fixed Income Trust Series 2013-A, 0.0%,
10/15/97 (144A) $ 1,666,992
----------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.2%
695,000 B+/B2 National Money Mart Co., 10.375%, 12/15/16 $ 728,013
-----------------
Total Diversified Financials $ 9,142,056
----------------------------------------------------------------------------------------------------------
ENERGY -- 20.8%
Coal & Consumable Fuels -- 1.6%
1,350,000 CCC/Caa1 Bumi Capital Pte, Ltd., 12.0%, 11/10/16
(144A) $ 870,750
2,125,000 CCC/Caa2 James River Coal Co., 7.875%, 4/1/19 669,375
800,000 B-/Caa1 Murray Energy Corp., 8.625%, 6/15/21
(144A) 802,000
2,485,000 B-/Caa1 Penn Virginia Corp., 8.5%, 5/1/20 2,522,275
1,550,000 B-/B2 Penn Virginia Resource Partners LP / Penn
Virginia Resource Finance Corp. II, 8.375%,
6/1/20 1,612,000
-----------------
$ 6,476,400
----------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 2.2%
1,500,000 B/B3 Hercules Offshore, Inc., 8.75%, 7/15/21
(144A) $ 1,590,000
500,000 B/B3 Hercules Offshore, Inc., 10.5%, 10/15/17
(144A) 529,375
1,700,000 CCC+/Caa3 Ocean Rig UDW, Inc., 9.5%, 4/27/16 (144A) 1,802,000
1,025,000 B-/B3 Offshore Group Investments, Ltd., 7.125%,
4/1/23 999,375
1,900,000 B+/B2 Pioneer Energy Services Corp., 9.875%,
3/15/18 2,052,000
1,800,000 B+/B1 Shelf Drill Holdings, Ltd., 8.625%, 11/1/18
(144A) 1,912,500
-----------------
$ 8,885,250
----------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 1.9%
408,000(h) NR/NR DP Producer AS, 0.0%, 12/31/49 (144A) $ 8,160
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Trust | Semiannual Report | 9/30/13
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services (continued)
1,847,000 B/B1 Expro Finance Luxembourg SCA, 8.5%,
12/15/16 (144A) $ 1,937,041
3,100,000 B/Caa1 Forbes Energy Services, Ltd., 9.0%,
6/15/19 3,115,500
666,000(i) CC/C Green Field Energy Services, Inc., 13.0%,
11/15/16 (144A) 599,400
2,000,000 B/B3e Seitel, Inc., 9.5%, 4/15/19 2,010,000
-----------------
$ 7,670,101
----------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 13.2%
1,200,000 CCC+/Caa1 Athlon Holdings LP / Athlon Finance Corp.,
7.375%, 4/15/21 (144A) $ 1,224,000
775,000 BB-/B1 Berry Petroleum Co., 10.25%, 6/1/14 817,625
500,000 B-/B3 Comstock Resources, Inc., 7.75%, 4/1/19 517,500
1,830,000 B-/B3 Comstock Resources, Inc., 9.5%, 6/15/20 1,994,700
3,450,000 B/B2 EP Energy LLC / EP Energy Finance, Inc.,
9.375%, 5/1/20 3,881,250
1,407,909(e) B/B3 EPE Holdings LLC / EP Energy Bond Co.,
Inc., 8.125%, 12/15/17 (144A) 1,469,505
1,295,000 B-/Caa1 EPL Oil & Gas, Inc., 8.25%, 2/15/18 1,366,225
3,000,000 CCC/Caa1 Goodrich Petroleum Corp., 8.875%, 3/15/19 3,120,000
785,000 CCC+/Caa1 Halcon Resources Corp., 8.875%, 5/15/21 804,625
1,205,000 CCC+/Caa1 Halcon Resources Corp., 9.25%, 2/15/22
(144A) 1,253,200
2,035,000 CCC+/Caa1 Halcon Resources Corp., 9.75%, 7/15/20 2,152,012
900,000 B-/Caa1 Legacy Reserves LP / Legacy Reserves Finance
Corp., 6.625%, 12/1/21 (144A) 841,500
2,000,000 CCC+/Caa1 Lightstream Resources, Ltd., 8.625%, 2/1/20
(144A) 1,940,000
950,000 B-/Caa1 Memorial Production Partners LP / Memorial
Production Finance Corp., 7.625%, 5/1/21 919,125
2,000,000 B-/Caa1 Midstates Petroleum Co., Inc., 9.25%, 6/1/21
(144A) 1,975,000
1,050,000 B-/Caa1 Midstates Petroleum Co., Inc., 10.75%,
10/1/20 (144A) 1,102,500
2,400,000 B+/NR MIE Holdings Corp., 9.75%, 5/12/16 (144A) 2,460,000
2,750,000 NR/Caa1 PetroQuest Energy, Inc., 10.0%, 9/1/17 (144A) 2,805,000
1,110,000 B-/Caa1 QR Energy LP / QRE Finance Corp., 9.25%,
8/1/20 1,137,750
3,380,000 CCC-/Caa3 Quicksilver Resources, Inc., 7.125%, 4/1/16 3,211,000
2,200,000 B-/B3 Resolute Energy Corp., 8.5%, 5/1/20 2,266,000
2,035,000 B-/B3 RKI Exploration & Production LLC / RKI Finance
Corp., 8.5%, 8/1/21 (144A) 2,045,175
1,497,000 B+/B2 Rosetta Resources, Inc., 9.5%, 4/15/18 1,613,018
5,500,000 CCC+/B3 Samson Investment Co., 10.25%, 2/15/20
(144A) 5,830,000
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 21
Schedule of Investments | 9/30/13 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
Oil & Gas Exploration &
Production (continued)
2,735,000 CCC+/Caa1 Sanchez Energy Corp., 7.75%, 6/15/21
(144A) $ 2,666,625
2,770,000 CCC+/Caa1 Talos Production LLC / Talos Production Finance,
Inc., 9.75%, 2/15/18 (144A) 2,783,850
-----------------
$ 52,197,185
----------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 1.4%
3,000,000 CCC/B3 Seven Generations Energy, Ltd., 8.25%,
5/15/20 (144A) $ 3,097,500
2,215,000 BB+/Ba2 Tesoro Corp., 9.75%, 6/1/19 2,419,888
-----------------
$ 5,517,388
----------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.5%
1,524,000(a) BB/Ba1 Energy Transfer Partners LP, 3.283%, 11/1/66
(144A) $ 1,369,695
350,000(c) BBB-/Baa2 Enterprise Products Operating LLC, 8.375%,
8/1/66 386,312
-----------------
$ 1,756,007
-----------------
Total Energy $ 82,502,331
----------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 6.2%
Agricultural Products -- 1.1%
2,100,000 CCC+/Caa1 Pinnacle Operating Corp., 9.0%, 11/15/20
(144A) $ 2,149,875
1,215,000 B/B2 Southern States Cooperative, Inc., 10.0%,
8/15/21 (144A) 1,178,550
1,100,000 B/NR Tonon Bioenergia SA, 9.25%, 1/24/20 (144A) 969,650
-----------------
$ 4,298,075
----------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 4.2%
775,000 BB/Ba3 Bertin SA / Bertin Finance, Ltd., 10.25%,
10/5/16 (144A) $ 839,906
1,250,000 B+/B1 CFG Investment SAC, 9.75%, 7/30/19 (144A) 1,143,750
705,000 B/B1 Chiquita Brands International, Inc. / Chiquita
Brands LLC, 7.875%, 2/1/21 (144A) 749,063
3,500,000 B/B3 FAGE Dairy Industry SA/FAGE USA Dairy
Industry, Inc., 9.875%, 2/1/20 (144A) 3,780,000
1,000,000 B/B2 Marfrig Holding Europe BV, 8.375%,
5/9/18 (144A) 910,000
1,200,000 B/B2 Marfrig Holding Europe BV, 11.25%,
9/20/21 (144A) 1,182,000
3,400,000 BB-/B1 Minerva Luxembourg SA, 7.75%, 1/31/23
(144A) 3,204,500
400,000 BB-/B1 Minerva Luxembourg SA, 12.25%,
2/10/22 (144A) 450,000
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Trust | Semiannual Report | 9/30/13
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
Packaged Foods & Meats (continued)
4,000,000 BB-/Caa1 Pilgrim's Pride Corp., 7.875%, 12/15/18 $ 4,350,000
-----------------
$ 16,609,219
----------------------------------------------------------------------------------------------------------
Tobacco -- 0.9%
3,835,000 B-/Caa1 Alliance One International, Inc., 9.875%,
7/15/21 (144A) $ 3,604,900
-----------------
Total Food, Beverage & Tobacco $ 24,512,194
----------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT &
SERVICES -- 6.6%
Health Care Equipment & Services -- 2.0%
4,000,000 CCC+/Caa2 Accellent, Inc., 10.0%, 11/1/17 $ 3,680,000
3,799,000 B+/B2 Physio-Control International, Inc., 9.875%,
1/15/19 (144A) 4,254,880
-----------------
$ 7,934,880
----------------------------------------------------------------------------------------------------------
Health Care Facilities -- 1.1%
3,475,000 B-/B3 Kindred Healthcare, Inc., 8.25%, 6/1/19 $ 3,700,875
600,000 CCC+/Caa1 United Surgical Partners International,
9.0%, 4/1/20 658,500
-----------------
$ 4,359,375
----------------------------------------------------------------------------------------------------------
Health Care Services -- 1.6%
2,527,000 CCC+/Caa2 Gentiva Health Services, Inc., 11.5%, 9/1/18 $ 2,621,762
3,725,000 CCC+/Caa1 Surgical Care Affiliates, Inc., 10.0%,
7/15/17 (144A) 3,855,375
-----------------
$ 6,477,137
----------------------------------------------------------------------------------------------------------
Health Care Supplies -- 1.0%
608,000 NR/Caa1 Bausch & Lomb, Inc., 9.875%, 11/1/15 $ 611,800
3,000,000 B-/Caa2 Immucor, Inc., 11.125%, 8/15/19 3,300,000
-----------------
$ 3,911,800
----------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.3%
900,000 CCC+/Caa1 Emdeon, Inc., 11.0%, 12/31/19 $ 1,024,875
----------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.6%
2,380,000 CCC+/Caa1 Truven Health Analytics, Inc., 10.625%, 6/1/20 $ 2,594,200
-----------------
Total Health Care Equipment & Services $ 26,302,267
----------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 1.1%
Personal Products -- 1.1%
1,745,000 B+/B2 Albea Beauty Holdings SA, 8.375%,
11/1/19 (144A) $ 1,814,800
700,000 CCC+/Caa1 Monitronics International, Inc., 9.125%,
4/1/20 733,250
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 23
Schedule of Investments | 9/30/13 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
Personal Products (continued)
1,615,000 NR/Caa1 Monitronics International, Inc., 9.125%,
4/1/20 (144A) $ 1,691,712
-----------------
Total Household & Personal Products $ 4,239,762
----------------------------------------------------------------------------------------------------------
INSURANCE -- 10.0%
Insurance Brokers -- 2.3%
4,900,000 CCC+/Caa2 HUB International, Ltd., 8.125%,
10/15/18 (144A) $ 5,469,625
1,000,000 CCC/Caa2 Onex USI Acquisition Corp., 7.75%,
1/15/21 (144A) 1,000,000
GBP 1,625,000 NR/Caa2 Towergate Finance Plc, 10.5%, 2/15/19
(144A) 2,742,536
-----------------
$ 9,212,161
----------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 1.6%
3,075,000(c) BB/Baa3 Liberty Mutual Group, Inc., 10.75%,
6/15/58 (144A) $ 4,535,625
1,100,000 BBB/Baa2 MetLife, Inc., 10.75%, 8/1/39 1,617,000
-----------------
$ 6,152,625
----------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 1.8%
500,000(a) BB+/NR Blue Danube II, Ltd., 4.368%, 5/23/16 (144A) $ 502,650
5,300,000 BBB-/Baa3 Hanover Insurance Corp., 7.625%, 10/15/25 6,376,822
265,000(c)(f) BB+/Ba2 White Mountains Insurance Group, Ltd.,
7.506% (144A) 272,390
-----------------
$ 7,151,862
----------------------------------------------------------------------------------------------------------
Reinsurance -- 4.3%
250,000(a) BB-/NR Atlas Reinsurance VII, Ltd., 8.118%,
1/7/16 (144A) $ 256,050
400,000(a) NR/NR Caelus Re 2013, Ltd., 6.855%, 4/7/17
(144A) 408,480
500,000(a) BB-/NR Caelus Re, Ltd., 5.255%, 3/7/16 (144A) 505,050
250,000(a) NR/Ba2 Combine Re, Ltd., 10.005%, 1/7/15(144A) 270,250
1,000,000(a) NR/NR Combine Re, Ltd., 17.755%, 1/7/15 (144A) 1,127,000
250,000(a) BB-/NR Compass Re, Ltd., 10.255%, 1/8/15 (144A) 262,625
250,000(a) B+/NR Compass Re, Ltd., 11.255%, 1/8/15 (144A) 264,250
250,000(a) BB/NR East Lane Re V, Ltd., 9.005%, 3/16/16 (144A) 273,325
400,000(a) BB/NR East Lane Re, Ltd., 6.655%, 3/13/15 (144A) 418,680
350,000(c) BB-/NR Embarcadero Re, Ltd., 6.639%, 8/4/14 (144A) 357,875
250,000(c) BB-/NR Embarcadero Re, Ltd., 7.353%, 2/13/15 (144A) 260,050
350,000(a) BB+/NR Foundation Re III, Ltd., 5.01%, 2/25/15 360,220
250,000(a) BB-/NR Ibis Re II, Ltd., 8.355%, 2/5/15 (144A) 262,600
400,000(a) B-/NR Ibis Re II, Ltd., 13.505%, 2/5/15 (144A) 428,440
800,000(a) BB/NR Lodestone Re, Ltd., 7.255%, 1/8/14 (144A) 805,920
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Trust | Semiannual Report | 9/30/13
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
Reinsurance (continued)
400,000(a) BB/NR Longpoint Re, Ltd., III, 4.005%, 5/18/16
(144A) $ 407,000
500,000(a) B/NR Mystic Re, Ltd., 12.005%, 3/12/15 (144A) 538,750
250,000(a) B+/NR Mythen Re, Ltd., Series 2012-2 Class A,
8.613%, 1/5/17 (144A) 259,400
250,000(a) NR/NR Mythen Re, Ltd., Series 2013-1 Class B,
8.005%, 7/9/15 (144A) 256,975
600,000(a) NR/B2 Mythen, Ltd., 11.105%, 5/7/15 (144A) 647,700
500,000(a) BB-/NR Queen Street II Capital, Ltd., 7.505%,
4/9/14 (144A) 507,700
250,000(a) BB-/NR Queen Street V Re, Ltd., 8.505%, 4/9/15 (144A) 261,000
250,000(a) B/NR Queen Street VI Re, Ltd., 10.355%, 4/9/15
(144A) 261,825
250,000(a) B/NR Queen Street VII Capital, Ltd., 8.605%,
4/8/16 (144A) 257,475
725,000(a) B+/NR Residential Reinsurance 2011, Ltd.,
8.755%, 6/6/15 (144A) 774,735
250,000(a) NR/NR Residential Reinsurance 2011, Ltd.,
8.905%, 12/6/15 (144A) 260,575
250,000(a) BB-/NR Residential Reinsurance 2011, Ltd.,
9.005%, 6/6/15 (144A) 265,825
450,000(a) B-/NR Residential Reinsurance 2011, Ltd.,
12.005%, 6/6/15 (144A) 486,135
250,000(a) NR/NR Residential Reinsurance 2011, Ltd.,
13.255%, 12/6/15 (144A) 270,025
250,000(a) BB/NR Residential Reinsurance 2012, Ltd.,
5.755%, 12/6/16 (144A) 261,750
250,000(a) BB/NR Residential Reinsurance 2012, Ltd.,
8.005%, 6/6/16 (144A) 276,250
250,000(a) BB-/NR Residential Reinsurance 2012, Ltd.,
10.005%, 6/6/16 (144A) 276,250
400,000(a) NR/NR Residential Reinsurance 2012, Ltd.,
12.755%, 12/6/16 (144A) 438,520
250,000(a) NR/NR Residential Reinsurance 2012, Ltd.,
19.005%, 12/6/16 (144A) 274,975
400,000(a) NR/NR Residential Reinsurance 2012, Ltd., 22.005%,
6/6/16 (144A) 453,480
250,000(a) B-/NR Residential Reinsurance 2013, Ltd., 9.255%,
6/6/17 (144A) 257,875
500,000(a) BB/NR Sanders Re, Ltd., 4.01%, 5/5/17 (144A) 498,750
600,000(j) NR/NR Sector Re V, Ltd., 0.0%, 12/1/17 (144A) 729,300
850,000(j) NR/NR Sector Re V, Ltd., 0.0%, 3/1/18 (144A) 939,335
500,000(a) NR/NR Successor X, Ltd., 13.005%, 2/25/14 (144A) 515,450
250,000(a) NR/NR Successor X, Ltd., 16.505%, 1/27/15 (144A) 260,775
300,000(a) B+/NR Tar Heel Re, Ltd., 8.505%, 5/9/16 (144A) 311,970
-----------------
$ 17,210,615
-----------------
Total Insurance $ 39,727,263
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 25
Schedule of Investments | 9/30/13 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
MATERIALS -- 18.1%
Commodity Chemicals -- 1.3%
3,250,000 BBB-/WR Basell Finance Co., BV, 8.1%, 3/15/27 (144A) $ 4,103,782
1,100,000 BB-/B1 Rain CII Carbon LLC / CII Carbon Corp.,
8.25%, 1/15/21 (144A) 1,105,500
-----------------
$ 5,209,282
----------------------------------------------------------------------------------------------------------
Construction Materials -- 0.8%
3,000,000 B-/Caa2 Texas Industries, Inc., 9.25%, 8/15/20 $ 3,300,000
----------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.8%
EUR 370,511 B-/Caa1 INEOS Group Holdings SA, 7.875%,
2/15/16 (144A) $ 506,034
1,597,000 B/B2 Kinove German Bondco GmbH, 9.625%,
6/15/18 (144A) 1,764,685
EUR 950,000 NR/Caa1 Momentive Performance Materials, Inc.,
9.5%, 1/15/21 1,053,403
-----------------
$ 3,324,122
----------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.0%
2,000,000 B/B3 Global Brass and Copper, Inc., 9.5%,
6/1/19 (144A) $ 2,200,000
3,000,000 CCC/Caa2 Midwest Vanadium Pty., Ltd., 11.5%,
2/15/18 (144A) 2,475,000
2,775,000 B-/Caa1 Mirabela Nickel, Ltd., 8.75%, 4/15/18 (144A) 1,082,250
1,200,000 CCC+/B3 Molycorp, Inc., 10.0%, 6/1/20 1,197,000
900,000 B-/Caa1 Mongolian Mining Corp., 8.875%, 3/29/17
(144A) 681,750
410,000 B/Caa1 Prince Mineral Holding Corp., 11.5%,
12/15/19 (144A) 436,650
-----------------
$ 8,072,650
----------------------------------------------------------------------------------------------------------
Forest Products -- 1.0%
4,000,000 B-/B3 Millar Western Forest Products, Ltd., 8.5%,
4/1/21 $ 4,040,000
----------------------------------------------------------------------------------------------------------
Gold -- 0.7%
3,055,000 BB-/B1 IAMGOLD Corp., 6.75%, 10/1/20 (144A) $ 2,665,488
----------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 1.7%
1,869,730(e) CCC+/Caa1 Ardagh Finance SA, 11.125%, 6/1/18 (144A) $ 1,981,914
EUR 2,250,000 CCC+/B3 Ardagh Glass Finance Plc, 8.75%, 2/1/20
(144A) 3,088,748
1,450,000 CCC+/Caa1 BWAY Holdings Co., 10.0%, 6/15/18 1,580,500
-----------------
$ 6,651,162
----------------------------------------------------------------------------------------------------------
Paper Packaging -- 1.9%
2,000,000 CCC+/Caa1 Berry Plastics Corp., 9.5%, 5/15/18 $ 2,165,000
2,150,057(b) NR/NR Bio Pappel SAB de CV, 10.0%, 8/27/16 2,144,682
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Trust | Semiannual Report | 9/30/13
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
Paper Packaging (continued)
2,500,000 B-/Caa1 Pretium Packaging LLC / Pretium Finance,
Inc., 11.5%, 4/1/16 $ 2,681,250
500,000 BB-/B1 Sealed Air Corp., 8.125%, 9/15/19 (144A) 557,500
-----------------
$ 7,548,432
----------------------------------------------------------------------------------------------------------
Paper Products -- 1.1%
600,000 CCC+/B3 Appvion, Inc., 11.25%, 12/15/15 $ 676,500
2,220,000 CCC+/Caa2 Exopack Holdings Corp., 10.0%, 6/1/18 2,342,100
776,000 B/B3 Mercer International, Inc., 9.5%, 12/1/17 828,380
595,000 B-/Caa1 Unifrax I LLC / Unifrax Holding Co., 7.5%,
2/15/19 (144A) 595,000
-----------------
$ 4,441,980
----------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.7%
2,600,000 CCC+/NR Hexion US Finance Corp., 9.0%, 11/15/20 $ 2,541,500
----------------------------------------------------------------------------------------------------------
Steel -- 6.1%
2,450,000 B/B3 AM Castle & Co., 12.75%, 12/15/16 $ 2,811,375
1,200,000 B+/B3 APERAM, 7.375%, 4/1/16 (144A) 1,200,000
1,960,000 B/Caa1 Atkore International, Inc., 9.875%, 1/1/18 2,116,800
2,400,000 BBB-/Ba1 CSN Islands VIII Corp., 9.75%, 12/16/13
(144A) 2,428,800
3,550,000 CCC/Caa2 Essar Steel Algoma, Inc., 9.875%,
6/15/15 (144A) 2,786,750
700,000 B/Caa1 Ferrexpo Finance Plc, 7.875%, 4/7/16 (144A) 633,500
1,900,000 NR/Caa1 Metinvest BV, 8.75%, 2/14/18 (144A) 1,643,500
2,915,000 B/B2 Optima Specialty Steel, Inc., 12.5%,
12/15/16 (144A) 3,155,487
2,000,000 B-/B3 Permian Holdings, Inc., 10.5%, 1/15/18
(144A) 1,950,000
3,750,000 CCC+/NR Ryerson, Inc., 9.0%, 10/15/17 3,881,250
1,250,000 B/B3 Severstal Columbus LLC, 10.25%, 2/15/18 1,328,125
-----------------
$ 23,935,587
-----------------
Total Materials $ 71,730,203
----------------------------------------------------------------------------------------------------------
MEDIA -- 5.0%
Advertising -- 0.8%
2,900,000 B-/B3 Good Sam Enterprises LLC, 11.5%, 12/1/16 $ 3,117,500
----------------------------------------------------------------------------------------------------------
Broadcasting -- 1.3%
1,000,000 CCC+/Caa2 Intelsat Luxembourg SA, 7.75%, 6/1/21
(144A) $ 1,035,000
3,805,000 B/B3 Townsquare Radio LLC / Townsquare Radio,
Inc., 9.0%, 4/1/19 (144A) 4,042,812
-----------------
$ 5,077,812
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 27
Schedule of Investments | 9/30/13 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
Cable -- 0.9%
EUR 1,200,000 B+/B1 Nara Cable Funding, Ltd., 8.875%,
12/1/18 (144A) $ 1,728,176
1,500,000 B-/Caa1 Ono Finance II Plc, 10.875%, 7/15/19
(144A) 1,597,500
EUR 350,000 B-/Caa1 Ono Finance II Plc, 11.125%, 7/15/19
(144A) 508,784
-----------------
$ 3,834,460
----------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 1.3%
2,765,000 CCC+/Caa1 AMC Entertainment, Inc., 9.75%, 12/1/20 $ 3,152,100
1,400,000 B/B2 Gibson Brands, Inc., 8.875%, 8/1/18 (144A) 1,421,000
600,000 CCC+/Caa1 Production Resource Group, Inc., 8.875%,
5/1/19 456,000
-----------------
$ 5,029,100
----------------------------------------------------------------------------------------------------------
Publishing -- 0.7%
400,000 B-/B3 Interactive Data Corp., 10.25%, 8/1/18 $ 443,000
2,200,000(g) B-/B3 MPL 2 Acquisition Canco, Inc., 9.875%,
8/15/18 (144A) 2,255,000
-----------------
$ 2,698,000
-----------------
Total Media $ 19,756,872
----------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 1.3%
Biotechnology -- 1.3%
1,400,000 B/B3 ConvaTec Healthcare E SA, 10.5%,
12/15/18 (144A) $ 1,582,000
4,104,000 B/Caa2 Lantheus Medical Imaging, Inc., 9.75%,
5/15/17 3,673,080
-----------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 5,255,080
----------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.4%
Diversified REIT -- 0.4%
1,500,000 B/Ba3 CNL Lifestyle Properties, Inc., 7.25%, 4/15/19 $ 1,537,500
-----------------
Total Real Estate $ 1,537,500
----------------------------------------------------------------------------------------------------------
RETAILING -- 0.2%
Specialty Stores -- 0.2%
685,000 B/B3 Radio Systems Corp., 8.375%, 11/1/19
(144A) $ 741,513
-----------------
Total Retailing $ 741,513
----------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.8%
Semiconductors -- 0.8%
3,250,000 B/B2 Advanced Micro Devices, Inc., 7.5%, 8/15/22 $ 3,111,875
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Trust | Semiannual Report | 9/30/13
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
Semiconductors (continued)
CNH 1,000,000(d) NR/NR LDK Solar Co., Ltd., 10.0%, 2/28/14 $ 48,233
-----------------
Total Semiconductors &
Semiconductor Equipment $ 3,160,108
----------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 3.0%
Application Software -- 0.2%
955,000 B-/B3 Interface Security Systems Holdings, Inc. /
Interface Security Systems LLC, 9.25%,
1/15/18 (144A) $ 986,038
----------------------------------------------------------------------------------------------------------
Data Processing & Outsourced
Services -- 1.6%
1,783,000 B-/Caa1 First Data Corp., 8.25%, 1/15/21 (144A) $ 1,840,947
650,000 B-/Caa1 First Data Corp., 10.625%, 6/15/21 (144A) 659,750
1,783,000 B-/Caa1 First Data Corp., 12.625%, 1/15/21 1,961,300
1,650,000(e) CCC+/Caa1 Igloo Holdings Corp., 8.25%, 12/15/17 (144A) 1,695,375
-----------------
$ 6,157,372
----------------------------------------------------------------------------------------------------------
Systems Software -- 1.2%
5,173,143(e)(g) NR/NR Pegasus Solutions, Inc., 13.0%, 4/15/14
(144A) $ 4,811,023
-----------------
Total Software & Services $ 11,954,433
----------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE &
EQUIPMENT -- 0.8%
Communications Equipment -- 0.7%
1,350,000(e) B-/Caa1 CommScope Holding Co., Inc., 6.625%,
6/1/20 (144A) $ 1,343,250
1,500,000 CCC+/B3 CPI International, Inc., 8.0%, 2/15/18 1,545,000
-----------------
$ 2,888,250
----------------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.1%
350,000 BB-/B1 Viasystems, Inc., 7.875%, 5/1/19 (144A) $ 371,875
-----------------
Total Technology Hardware & Equipment $ 3,260,125
----------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 1.8%
Alternative Carriers -- 0.2%
600,000 NR/WR PAETEC Holding Corp., 9.875%, 12/1/18 $ 667,500
----------------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- 1.3%
3,539,000 CCC+/Caa1 Cincinnati Bell, Inc., 8.75%, 3/15/18 $ 3,738,069
1,400,000 BB-/Ba2 Frontier Communications Corp., 7.625%,
4/15/24 1,400,000
-----------------
$ 5,138,069
----------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.3%
400,000 NR/NR Unison Ground Lease Funding LLC, 5.78%,
3/15/20 (144A) $ 384,711
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 29
Schedule of Investments | 9/30/13 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
Wireless Telecommunication
Services (continued)
725,000 BB/Ba3 Vimpel Communications Via VIP Finance
Ireland, Ltd. OJSC, 9.125%, 4/30/18 (144A) $ 839,187
-----------------
$ 1,223,898
-----------------
Total Telecommunication Services $ 7,029,467
----------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 3.2%
Air Freight & Logistics -- 0.2%
720,000 CCC-/Caa2 CEVA Group Plc, 11.625%, 10/1/16 (144A) $ 741,600
----------------------------------------------------------------------------------------------------------
Airlines -- 0.3%
500,000 B-/NR Gol Finance, 9.25%, 7/20/20 (144A) $ 417,500
600,000 B/B2 United Continental Holdings, Inc., 6.375%,
6/1/18 610,500
-----------------
$ 1,028,000
----------------------------------------------------------------------------------------------------------
Marine -- 0.1%
295,000 B+/B3 Navios South American Logistics, Inc. / Navios
Logistics Finance US, Inc., 9.25%, 4/15/19 $ 317,125
----------------------------------------------------------------------------------------------------------
Railroads -- 0.3%
1,116,919(e) CCC/Caa3 Florida East Coast Holdings Corp., 10.5%,
8/1/17 $ 1,161,596
----------------------------------------------------------------------------------------------------------
Trucking -- 2.3%
575,000 BB-/Ba3 Aeropuertos Dominicanos Siglo XXI SA,
9.25%, 11/13/19 (144A) $ 589,375
3,500,000 B-/B2 Jack Cooper Holdings Corp., 9.25%,
6/1/20 (144A) 3,745,000
1,375,000 B+/B3 Swift Services Holdings, Inc., 10.0%, 11/15/18 1,526,250
3,130,000 B/B3 Syncreon Global Ireland, Ltd., 9.5%,
5/1/18 (144A) 3,396,050
-----------------
$ 9,256,675
-----------------
Total Transportation $ 12,504,996
----------------------------------------------------------------------------------------------------------
UTILITIES -- 1.6%
Electric Utilities -- 0.9%
310,000 NR/Caa3 Empresa Distrbuidora Y Comercializadora
Norte, 9.75%, 10/25/22 (144A) $ 158,100
1,010,000(c) NR/Ba1 Enel S.p.A, 8.75%, 9/24/73 (144A) 1,028,061
885,000 B-/B3 Energy Future Intermediate Holding Co.,
LLC/EFIH Finance, Inc., 10.0%, 12/1/20 (144A) 929,250
1,000,000 BBB-/Ba1 PNM Resources, Inc., 9.25%, 5/15/15 1,121,250
350,000 CCC/Caa3 Texas Competitive Electric Holdings Co., LLC /
TCEH Finance, Inc., 11.5%, 10/1/20 (144A) 241,938
-----------------
$ 3,478,599
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer High Income Trust | Semiannual Report | 9/30/13
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.7%
2,864,313 NR/NR Ormat Funding Corp., 8.25%, 12/30/20 $ 2,692,454
-----------------
Total Utilities $ 6,171,053
----------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES
(Cost $415,099,983) $ 428,624,965
----------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS & NOTES --
4.9% of Net Assets
CAPITAL GOODS -- 0.8%
Construction & Farm Machinery &
Heavy Trucks -- 0.8%
2,625,000 B-/NR Meritor, Inc., 7.875%, 3/1/26 (144A) $ 3,292,734
-----------------
Total Capital Goods $ 3,292,734
----------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Asset Management & Custody Banks -- 0.1%
400,000 BBB/NR Apollo Investment Corp., 5.75%, 1/15/16 $ 422,000
-----------------
Total Diversified Financials $ 422,000
----------------------------------------------------------------------------------------------------------
ENERGY -- 1.3%
Coal & Consumable Fuels -- 0.4%
1,905,000 B/NR Massey Energy Co., 3.25%, 8/1/15 $ 1,781,175
----------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.6%
2,265,000(b) NR/NR Hercules Offshore, Inc., 0.0%, 6/1/38 $ 2,243,766
----------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.3%
1,340,000 BB-/Ba3 Chesapeake Energy Corp., 2.5%, 5/15/37 $ 1,316,550
-----------------
Total Energy $ 5,341,491
----------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT &
SERVICES -- 1.1%
Health Care Equipment & Services -- 0.8%
2,837,000(b) B+/NR Hologic, Inc., 2.0%, 12/15/37 $ 3,191,625
----------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.2%
780,000 B/NR LifePoint Hospitals, Inc., 3.5%, 5/15/14 $ 820,950
----------------------------------------------------------------------------------------------------------
Health Care Services -- 0.1%
361,000 B+/B2 Omnicare, Inc., 3.25%, 12/15/35 $ 383,563
-----------------
Total Health Care Equipment & Services $ 4,396,138
----------------------------------------------------------------------------------------------------------
MATERIALS -- 0.9%
Diversified Chemicals -- 0.9%
4,000,000(i) B+/NR Hercules, Inc., 6.5%, 6/30/29 $ 3,560,000
-----------------
Total Materials $ 3,560,000
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 31
Schedule of Investments | 9/30/13 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
MEDIA -- 0.5%
Movies & Entertainment -- 0.5%
1,832,000 B/NR Live Nation Entertainment, Inc., 2.875%,
7/15/27 $ 1,869,785
-----------------
Total Media $ 1,869,785
----------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.2%
Semiconductors -- 0.2%
750,000 NR/NR ReneSola, Ltd., 4.125%, 3/15/18 (144A) $ 597,656
42,000(d) NR/NR Suntech Power Holdings Co., Ltd., 3.0%,
3/15/13 10,836
-----------------
Total Semiconductors &
Semiconductor Equipment $ 608,492
----------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS & NOTES
(Cost $15,539,500) $ 19,490,640
----------------------------------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATIONS --
0.8% of Net Assets
Argentina -- 0.3%
1,200,000 CCC+/Caa1 City of Buenos Aires, 12.5%, 4/6/15 (144A) $ 1,248,000
----------------------------------------------------------------------------------------------------------
Russia -- 0.5%
1,658,800(b) BBB/Baa1 Russian Government International Bond,
7.5%, 3/31/30 $ 1,954,863
----------------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATIONS
(Cost $2,380,755) $ 3,202,863
----------------------------------------------------------------------------------------------------------
TAX EXEMPT OBLIGATIONS -- 4.4% of
Net Assets
Indiana -- 0.4%
1,650,000 NR/Baa3 East Chicago Indiana Exempt Facilities
Revenue, 7.0%, 1/1/14 $ 1,647,442
----------------------------------------------------------------------------------------------------------
New Jersey -- 1.2%
4,525,000(c) B/B2 New Jersey Economic Development
Authority Revenue, 7.0%, 11/15/30 $ 4,524,593
----------------------------------------------------------------------------------------------------------
New York -- 0.9%
3,475,000 BB/B2 New York City Industrial Development
Agency Revenue, 7.625%, 12/1/32 $ 3,502,105
----------------------------------------------------------------------------------------------------------
North Carolina -- 1.9%
1,670,000 NR/NR Charlotte North Carolina Special Facilities
Revenue, 7.75%, 2/1/28 $ 1,671,303
6,300,000 NR/NR Charlotte Special Facilities Revenue, 5.6%,
7/1/27 6,020,217
-----------------
$ 7,691,520
----------------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT OBLIGATIONS
(Cost $13,059,731) $ 17,365,660
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer High Income Trust | Semiannual Report | 9/30/13
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT
OBLIGATION -- 0.4% of Net Assets
3,300,000(c)(g) NR/NR Non-Profit Preferred Funding Trust I, 0.0%,
9/15/37 (144A) $ 1,792,230
----------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED
DEBT OBLIGATION
(Cost $3,293,581) $ 1,792,230
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
Shares
----------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 2.7% of Net Assets
CAPITAL GOODS -- 0.2%
Building Products -- 0.2%
894(g)(k)(l) Panolam Holdings Co. $ 715,200
-----------------
Total Capital Goods $ 715,200
----------------------------------------------------------------------------------------------------------
ENERGY -- 0.1%
Oil & Gas Drilling -- 0.1%
13,045(k) Rowan Companies, Plc $ 479,012
----------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.0%+
NOK 1(k) Norse Energy Corp., ASA $ --
-----------------
Total Energy $ 479,012
----------------------------------------------------------------------------------------------------------
MATERIALS -- 0.6%
Diversified Metals & Mining -- 0.6%
3,402 Freeport-McMoRan Copper & Gold, Inc.,
Class B $ 112,538
30,084 Lyondell Basell Industries NV 2,203,052
-----------------
$ 2,315,590
-----------------
Total Materials $ 2,315,590
----------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.2%
Pharmaceuticals -- 0.2%
17,818 Teva Pharmaceutical Industries, Ltd. (A.D.R.) $ 673,164
-----------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 673,164
----------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.0%+
Systems Software -- 0.0%+
10,942(g)(k) Perseus Holding Corp. (144A) $ 27,355
-----------------
Total Software & Services $ 27,355
----------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 1.6%
Air Freight & Logistics -- 0.7%
3,266(k) CEVA Holdings LLC $ 2,775,879
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 33
Schedule of Investments | 9/30/13 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------------------
Airlines -- 0.6%
97,564 Delta Air Lines, Inc. $ 2,301,535
----------------------------------------------------------------------------------------------------------
Marine -- 0.3%
877,784(g)(k) Horizon Lines, Inc. $ 1,176,230
-----------------
Total Transportation $ 6,253,644
----------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $9,502,147) $ 10,463,965
----------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK --
0.5% of Net Assets
DIVERSIFIED FINANCIALS -- 0.5%
Other Diversified Financial Services -- 0.5%
1,880(f) Bank of America Corp., 7.25% $ 2,030,400
-----------------
Total Diversified Financials $ 2,030,400
----------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $1,383,242) $ 2,030,400
----------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 2.8% of
Net Assets
BANKS -- 0.8%
Diversified Banks -- 0.8%
3,000(c)(f) AgStar Financial Services ACA, 6.75% (144A) $ 3,039,187
-----------------
Total Banks $ 3,039,187
----------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.9%
Other Diversified Financial Services -- 0.9%
132,750(c) GMAC Capital Trust I, 8.125% $ 3,551,063
-----------------
Total Diversified Financials $ 3,551,063
----------------------------------------------------------------------------------------------------------
ENERGY -- 0.2%
Oil & Gas Storage & Transportation -- 0.2%
33,350(c) NuStar Logistics LP, 7.625% $ 841,754
-----------------
Total Energy $ 841,754
----------------------------------------------------------------------------------------------------------
INSURANCE -- 0.8%
Reinsurance -- 0.8%
1,200,000(k) Altair Re $ 1,246,680
8,500(k) Lorenz Re, Ltd. 915,195
950,000(k) Pangaea Re 995,287
-----------------
$ 3,157,162
-----------------
Total Insurance $ 3,157,162
----------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.1%
Systems Software -- 0.1%
5,745(g)(k) Perseus Holding Corp., 14.0% $ 473,962
-----------------
Total Software & Services $ 473,962
----------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $10,156,174) $ 11,063,128
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer High Income Trust | Semiannual Report | 9/30/13
----------------------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.0%+ of
Net Assets
AUTOMOBILES & COMPONENTS -- 0.0%+
Auto Parts & Equipment -- 0.0%+
344(k) Lear Corp., Expires 11/9/14 $ 49,529
-----------------
Total Automobiles & Components $ 49,529
----------------------------------------------------------------------------------------------------------
ENERGY -- 0.0%+
650(g)(k) Oil & Gas Equipment & Services -- 0.0%+
Green Field Energy Services, Inc., Expires
11/15/21 (144A) $ 22,750
----------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.0%+
NOK 131,055(k) Norse Energy Corp., ASA, Expires 6/16/15 $ 435
-----------------
Total Energy $ 23,185
----------------------------------------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $42,352) $ 72,714
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
Principal
Amount
----------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENT --
3.0% -- of Net Assets
REPURCHASE AGREEMENT: 3.0%
$ 12,055,000 Bank of Nova Scotia, 0.12%, dated
10/1/13, repurchase price of
$12,055,000 plus accrued interest on
10/1/13 collateralized by the following:
$1,283,965 U.S. Treasury Notes, 0.25%,
10/15/15, $1,241,987 Federal National
Mortgage Association, 3.00-4.00%,
9/1/28-10/1/43 and $9,770,190 Freddie
Mac Giant, 3.00%, 7/1/43. $ 12,055,000
----------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $12,055,000) $ 12,055,000
----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 134.0%
(Cost -- $507,493,063) (m)(n) $ 530,896,679
----------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 4.1% $ 16,424,622
----------------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION
VALUE, INCLUDING DIVIDENDS
PAYABLE -- (38.1)% $ (151,000,383)
----------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS -- 100.0% $ 396,320,918
==========================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 35
Schedule of Investments | 9/30/13 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Notional Unrealized
Principal CREDIT DEFAULT SWAP AGREEMENT Appreciation
----------------------------------------------------------------------------------------------------------
$ 2,000,000 JPMorgan Chase & Co., Goodyear Tire &
Rubber Co., 5.0%, 12/20/17 $ 284,849
----------------------------------------------------------------------------------------------------------
TOTAL CREDIT DEFAULT SWAP AGREEMENT
(Cost $(65,000)) $ 284,849
==========================================================================================================
REIT Real Estate Investment Trust.
NR Security not rated by S&P or Moody's.
WR Rating withdrawn by either S&P or Moody's.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
September 30, 2013, the value of these securities amounted to
$243,462,875, or 61.4% of total net assets applicable to common
shareowners.
+ Amount rounds to less than 0.1%.
* Senior secured floating rate loan interests in which the Trust invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending plus a premium. These base lending rates are
generally(i) the lending rate offered by one or more major European
banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime
rate offered by one or more major United States banks, (iii) the
certificate of deposit or (iv) other base lending rates used by
commercial lenders. The interest rate shown is the rate accruing at
September 30, 2013.
(a) Floating rate note. The rate shown is the coupon rate at September 30,
2013.
(b) Debt obligation initially issued at one coupon which converts to a
higher coupon rate at a specific date. The rate shown is the rate at
September 30, 2013.
(c) The interest rate is subject to change periodically. The interest is
shown is the rate at September 30, 2013.
(d) Security is in default and is non income producing.
(e) Payment in Kind (PIK) security which may pay interest in the form of
additional principal amount.
(f) Security is perpetual in nature and has no stated maturity date.
(g) Indicates a security that has been deemed illiquid. As of September 30,
2013 the aggregate cost of illiquid securities in the Trust's portfolio
was $15,693,621. As of that date, the aggregate value of illiquid
securities in the Trust's portfolio of $12,940,742 represented 3.3% of
total net assets applicable to common shareowners.
(h) The company is scheduled for approval of a reorganization plan.
(i) Security is priced as a unit.
(j) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(k) Non-income producing.
(l) Security is valued using fair value methods (other than prices supplied
by independent pricing services). See Notes to Financial Statements --
Note 1A.
(m) At September 30, 2013, the net unrealized appreciation on investments
based on cost for federal tax purposes of $509,825,930 was as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 46,906,020
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value $(25,835,271)
-------------
Net unrealized appreciation $ 21,070,749
=============
The accompanying notes are an integral part of these financial statements.
36 Pioneer High Income Trust | Semiannual Report | 9/30/13
For financial reporting purposes net unrealized appreciation on investments was
$23,403,616 and cost of investments aggregated $507,493,063.
(n) At September 30, 2013, distributions of Investments by country of issue, as
a percentage of total investments in securities, were as follows:
United States 78.2%
Canada 3.5
Cayman Islands 2.6
Luxembourg 2.5
Ireland 2.2
Netherlands 1.7
United Kingdom 1.3
Australia 1.1
Other (individually less than 1%) 6.9
------
100.0%
======
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended September 30, 2013 aggregated $86,324,085 and $90,847,294,
respectively.
Glossary of Terms:
(A.D.R.) American Depositary Receipt
Principal amounts are denominated in U.S. dollars unless otherwise noted.
EUR -- Euro
CNH -- New Chinese Yuan
GBP -- Great British Pound
NOK -- Norwegian Krone
Various inputs are used in determining the value of the Trust's investments.
These inputs are summarized in the three broad levels below.
Level 1 -- quoted prices in active markets for identical securities.
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 -- significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans are categorized as Level 2, and securities valued using fair
value methods (other than prices supplied by independent pricing services) are
categorized as Level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 37
Schedule of Investments | 9/30/13 (unaudited) (continued)
The following is a summary of the inputs used as of September 30, 2013, in
valuing the Trust's investments.
---------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------
Asset Backed Securities $ -- $ 5,560,300 $ -- $ 5,560,300
Collateralized Mortgage
Obligations -- 3,282,340 -- 3,282,340
Senior Secured Floating Rate
Loan Interests -- 15,892,474 -- 15,892,474
Tax Exempt Obligations -- 17,365,660 -- 17,365,660
Corporate Bonds & Notes
Other Diversified
Financial Services -- -- 1,666,992 1,666,992
Reinsurance -- 15,541,980 1,668,635 17,210,615
All Other -- 409,747,358 -- 409,747,358
Convertible Bonds & Notes -- 19,490,640 -- 19,490,640
Municipal Collateralized Debt
Obligation -- 1,792,230 -- 1,792,230
Sovereign Debt Obligations -- 3,202,863 -- 3,202,863
Common Stocks
Air Freight & Logistics -- 2,775,879 -- 2,775,879
Building Products -- -- 715,200 715,200
Systems Software -- 27,355 -- 27,355
All Other 6,945,531 -- -- 6,945,531
Convertible Preferred Stock: 2,030,400 -- -- 2,030,400
Preferred Stocks
Reinsurance -- -- 3,157,162 3,157,162
Systems Software -- 473,962 -- 473,962
All Other 7,432,004 -- -- 7,432,004
Rights/Warrants: 72,714 -- -- 72,714
Temporary Cash Investment
Repurchase Agreement -- 12,055,000 -- 12,055,000
---------------------------------------------------------------------------------------------
Total Investments in Securities $ 16,480,649 $507,208,041 $ 7,207,989 $530,896,679
=============================================================================================
Other Financial Instruments
Forward Foreign
Currency Contracts $ -- $ (312,881) $ -- $ (312,881)
Credit Default Swap Agreement -- 284,849 -- 284,849
---------------------------------------------------------------------------------------------
Total Other Financial Instruments $ -- $ (28,032) $ -- $ (28,032)
=============================================================================================
The accompanying notes are an integral part of these financial statements.
38 Pioneer High Income Trust | Semiannual Report | 9/30/13
The following is a reconciliation of assets valued using significant
unobservable inputs (level 3):
------------------------------------------------------------------------------------------------------------------------------------
Change in
Balance Realized Unrealized Accrued Transfers Transfers Balance
as of gain appreciation discounts/ in to out of as of
3/31/13 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* Level 3* 9/30/13
------------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS
& NOTES
Other
Diversified
Financial
Services $1,772,245 $-- $(105,715) $ -- $ -- $ 462 $ -- $ -- $1,666,992
Reinsurance -- -- -- -- -- -- 1,668,635 -- 1,668,635
COMMON STOCKS
Building
Products 522,096 -- 193,104 -- -- -- -- -- 715,200
PREFERRED STOCKS
Reinsurance -- -- 157,162 3,000,000 -- -- -- -- 3,157,162
------------------------------------------------------------------------------------------------------------------------------------
Total $ 2,294,341 $ -- $ 244,551 $ 3,000,000 $ -- $ 462 $1,668,635 $ -- $7,207,989
====================================================================================================================================
* Transfers are calculated on the beginning of period values.
(1) Realized gain (loss) on these securities is included in the realized gain
(loss) from investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) from investments in the
Statement of Operations.
Net change in unrealized appreciation of Level 3 investments still held and
considered Level 3 at 9/30/13: $427,366.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 39
Statement of Assets and Liabilities | 9/30/13 (unaudited)
ASSETS:
Investments in securities, at value (cost $507,493,063) $530,896,679
Foreign currencies, at value (cost $4,854,889) 4,717,573
Receivables --
Investment securities sold 1,487,657
Interest receivable 11,677,420
Dividends receivable 63,647
Net unrealized appreciation on credit default swaps 284,849
Reinvestment of distributions 325,539
---------------------------------------------------------------------------------------
Total assets $549,453,364
---------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 137,158
Due to affiliates 251,707
Administration fee payable 367
Net unrealized depreciation on forward foreign currency contracts 312,881
Credit default swaps, premiums received 65,000
Due to broker 200,000
Due to custodian 1,032,203
Accrued expenses 132,040
Other liabilities 707
---------------------------------------------------------------------------------------
Total liabilities $ 2,132,063
---------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 6,040
shares, including dividends payable of $383 $151,000,383
---------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $406,778,847
Undistributed net investment income 13,662,304
Accumulated net realized loss on investments, credit default swaps
and foreign currency transactions (47,362,993)
Net unrealized appreciation on investments 23,403,616
Net unrealized appreciation on credit default swaps 284,849
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (445,705)
---------------------------------------------------------------------------------------
Net assets applicable to common shareowners $396,320,918
=======================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $396,320,918 / 28,552,227 common shares $ 13.88
=======================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer High Income Trust | Semiannual Report | 9/30/13
Statement of Operations (unaudited)
For the Six Months Ended 9/30/13
INVESTMENT INCOME:
Interest $ 23,102,746
Dividends (net of foreign taxes withheld $6,914) 337,838
Facility and other fees 213,550
-----------------------------------------------------------------------------------------
Total Investment income $ 23,654,134
-----------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,657,350
Administrative reimbursements 58,007
Transfer agent fees and expenses 28,263
Shareowner communications expense 5,723
Auction agent fees 195,945
Custodian fees 14,149
Registration fees 1,094
Professional fees 39,863
Printing expenses 10,187
Trustees' fees 9,052
Pricing fees 9,510
Miscellaneous 29,968
-----------------------------------------------------------------------------------------
Total expenses $ 2,059,111
-----------------------------------------------------------------------------------------
Net investment income $ 21,595,023
-----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (2,344,920)
Credit default swaps 500,273
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (57,127) $ (1,901,774)
-----------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ (5,814,797)
Credit default swaps (54,170)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (397,418) $ (6,266,385)
-----------------------------------------------------------------------------------------
Net loss on investments $ (8,168,159)
-----------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM NET
INVESTMENT INCOME: $ (82,228)
-----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 13,344,636
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 41
Statement of Changes in Net Assets
---------------------------------------------------------------------------------------------
Six Months
Ended Year
9/30/13 Ended
(unaudited) 3/31/13
---------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 21,595,023 $ 50,114,370
Net realized gain (loss) on investments, credit default swaps
and foreign currency transactions (1,901,774) 3,889,471
Change in unrealized appreciation (depreciation) on
investments, credit default swaps and foreign
currency transactions (6,266,385) 14,394,668
Distributions to preferred shareowners from net
investment income (82,228) (238,251)
---------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 13,344,636 $ 68,160,258
---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income ($0.83 and $1.65 per
share, respectively) $ (23,496,089) $ (46,710,842)
---------------------------------------------------------------------------------------------
Total distributions to common shareowners $ (23,496,089) $ (46,710,842)
---------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 1,974,099 $ 3,531,089
---------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners from Trust share transactions $ 1,974,099 $ 3,531,089
---------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners $ (8,177,354) $ 24,980,505
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period 404,498,272 379,517,767
---------------------------------------------------------------------------------------------
End of period $ 396,320,918 $ 404,498,272
---------------------------------------------------------------------------------------------
Undistributed net investment income $ 13,662,304 $ 15,645,598
=============================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer High Income Trust | Semiannual Report | 9/30/13
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Year
Ended Year Ended Ended Year Year
9/30/13 Ended 3/31/12 3/31/11 Ended Ended
(unaudited) 3/31/13 (Consolidated) (Consolidated) 3/31/10 3/31/09
------------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 14.23 $ 13.45 $ 14.33 $ 13.23 $ 7.07 $ 13.41
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 0.76 $ 1.74 $ 1.70 $ 1.68 $ 1.65 $ 1.82
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (0.28) 0.70 (0.92) 1.09 6.17 (6.38)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareowners from:
Net investment income (0.00)(b) (0.01) (0.01) (0.02) (0.01) (0.13)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.48 $ 2.43 $ 0.77 $ 2.75 $ 7.81 $ (4.69)
Distributions to common shareowners from:
Net investment income (0.83) (1.65) (1.65) (1.65) (1.65) (1.65)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.35) $ 0.78 $ (0.88) $ 1.10 $ 6.16 $ (6.34)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period(c) $ 13.88 $ 14.23 $ 13.45 $ 14.33 $ 13.23 $ 7.07
------------------------------------------------------------------------------------------------------------------------------------
Market value, end of period(c) $ 16.96 $ 16.97 $ 16.66 $ 16.55 $ 15.38 $ 8.03
====================================================================================================================================
Total return at market value(d) 5.19% 12.65% 11.53% 20.12% 119.69% (27.74)%
Ratios to average net assets of common shareowners:
Net expenses(e) 1.03%(f) 1.08% 1.05% 1.11% 1.23% 1.25%
Net investment income before preferred share
distributions 10.77%(f) 13.03% 12.66% 12.43% 14.92% 17.03%
Preferred share distributions 0.04%(f) 0.06% 0.05% 0.12% 0.13% 1.22%
Net investment income available to common shareowners 10.73%(f) 12.97% 12.61% 12.31% 14.79% 15.81%
Portfolio turnover 16% 27% 24% 10% 15% 19%
Net assets of common shareowners, end of period
(in thousands) $396,320 $404,498 $379,518 $401,348 $367,087 $194,057
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/13 43
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Year
Ended Year Ended Ended Year Year
9/30/13 Ended 3/31/12 3/31/11 Ended Ended
(unaudited) 3/31/13 (Consolidated) (Consolidated) 3/31/10 3/31/09
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) $151,000 $151,000 $151,000 $151,000 $151,000 $151,000
Asset coverage per preferred share, end of period $ 90,616 $ 91,971 $ 87,835 $ 91,450 $ 85,777 $ 57,131
Average market value per preferred share(g) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per
preferred share $ 25,001 $ 25,001 $ 25,001 $ 25,001 $ 25,001 $ 25,002
Ratios to average net assets of common shareowners before
waivers and reimbursement of expenses
Net expenses 1.03%(f) 1.08% 1.05% 1.11% 1.23% 1.25%
Net investment income before preferred share
distributions 10.77%(f) 13.03% 12.66% 12.43% 14.92% 17.03%
Preferred share distributions 0.04%(f) 0.06% 0.05% 0.12% 0.13% 1.22%
Net investment income available to common shareowners 10.73%(f) 12.97% 12.61% 12.31% 14.79% 15.81%
====================================================================================================================================
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Amount is less than $0.01 per common share.
(c) Net asset value and market value are published in Barron's on Saturday, The
Wall Street Journal on Monday and The New York Times on Monday and Saturday.
(d) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
market value on the last day of the periods reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Past
performance is not a guarantee of future results.
(e) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(f) Annualized.
(g) Market value is redemption value without an active market.
The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for the Trust's common shares.
The accompanying notes are an integral part of these financial statements.
44 Pioneer High Income Trust | Semiannual Report | 9/30/13
Notes to Financial Statements | 9/30/13 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer High Income Trust (the Trust) was organized as a Delaware statutory
trust on January 30, 2002. Prior to commencing operations on April 26, 2002, the
Trust had no operations other than matters relating to its organization and
registration as a diversified, closed-end management investment company under
the Investment Company Act of 1940, as amended. The investment objective of the
Trust is to seek a high level of current income and the Trust may, as a
secondary objective, also seek capital appreciation to the extent that it is
consistent with its investment objective.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the reporting
year. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Investments in 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.
Loan interests for which no reliable price quotes are available will be
valued by Loan Pricing Corporation through the use of pricing matrices to
determine valuations. Fixed-income securities with remaining maturity of
more than sixty days are valued at prices supplied by independent pricing
services, which consider such factors as market prices, market events,
quotations from one or more brokers, Treasury spreads, yields, maturities
and ratings. Valuations may be supplemented by dealers and other sources, as
required. Equity securities that have traded on an exchange are valued at
the last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices. Short-term fixed income securities
with remaining maturities of sixty days or less generally are valued at
amortized cost. Shares of money market mutual funds are valued at such
funds' net asset value.
Pioneer High Income Trust | Semiannual Report | 9/30/13 45
Trading in foreign 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.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by or at the
direction or with the approval of the Valuation Committee using fair value
methods pursuant to procedures adopted by the Board of Trustees. The
Valuation Committee is comprised of certain members of the Board of
Trustees. The Trust may use fair value methods if it is determined that a
significant event has occurred after the close of the exchange or market on
which the security trades and prior to the determination of the Trust's net
asset value. Examples of a significant event might include political or
economic news, corporate restructurings, natural disasters, terrorist
activity or trading halts. Thus, the valuation of the Trust's securities may
differ significantly from exchange prices and such differences could be
material. Pioneer Investment Management, Inc. (PIM), the Trust's investment
adviser, 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.
At September 30, 2013, one security was valued using fair value methods (in
addition to securities valued using prices supplied by independent
pricing services) representing 0.2% of net assets applicable to common
shareowners. 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.
Discounts and premiums on debt securities are accreted or amortized,
respectively, daily, into interest income on an effective yield to maturity
basis with a corresponding increase or decrease in the cost basis of the
security. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
Interest income, including interest on income bearing cash accounts, is
recorded on an accrual basis, net of unrecoverable foreign taxes withheld at
the applicable country rates.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Trust becomes aware of the ex-dividend data in
the exercise of reasonable diligence.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
46 Pioneer High Income Trust | Semiannual Report | 9/30/13
B. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the Statement of Operations from the
effects of changes in market prices of those securities but are included
with the net realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Trust may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized gains or losses are recorded in
the Trust's financial statements. The Trust records realized gains and
losses at the time a portfolio hedge is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contracts and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 6).
D. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
September 30, 2013, the Trust did not have any interest and penalties
related to uncertain tax positions, which, if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax years for the
prior three fiscal years remain subject to examination by federal and state
tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for
Pioneer High Income Trust | Semiannual Report | 9/30/13 47
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.
The tax character of current year distributions payable to common and
preferred shareowners will be determined at the end of the current taxable
year. The tax character of distributions paid during the year ended March
31, 2013 was as follows:
----------------------------------------------------------------------------
2013
----------------------------------------------------------------------------
Distribution paid from:
Ordinary income $46,949,093
----------------------------------------------------------------------------
Total $46,949,093
============================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at March 31, 2013:
----------------------------------------------------------------------------
2013
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 19,426,936
Capital loss carryforward (44,553,197)
Post-October loss deferred (1,012,389)
Dividends payable (7,996)
Unrealized appreciation 28,840,170
----------------------------------------------------------------------------
Total $ (306,476)
============================================================================
The difference between book-basis and tax-basis unrealized appreciation is
primarily attributable to the tax deferral of losses on wash sales, the
realization for tax purposes of unrealized gains on certain foreign currency
contracts, the difference between book and tax amortization methods for
premiums and discounts on fixed income securities, the accrual of income on
securities in default, and other book/tax temporary differences.
E. Risks
Information regarding the Trust's principal risks is contained in the
Trust's original offering prospectus, with additional information included
in the Trust's shareowner reports issued from time to time. Please refer to
those documents when considering the Trust's principal risks. At times, the
Trust's investments may represent industries or industry sectors that are
interrelated or have common risks, making the Trust more susceptible to any
economic, political, or regulatory developments or other risks affecting
those industries and sectors.
Under normal market conditions, the Trust invests at least 80% of its assets
in below investment grade (high-yield) debt securities, loans and preferred
stocks. Because the Trust's investments are concentrated in high-yield
securities, the Trust is subject to risks of such securities. Below
investment
48 Pioneer High Income Trust | Semiannual Report | 9/30/13
grade securities are commonly referred to as "junk bonds" and are considered
speculative with respect to the issuer's capacity to pay interest and repay
principal. 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.
F. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value
of the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Trust's custodian or a subcustodian of the Trust. PIM is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
G. Automatic Dividend Reinvestment Plan
All common shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional common shares
of the Trust in lieu of cash. Shareowners may elect not to participate in
the Plan. Shareowners not participating in the Plan receive all dividends
and capital gain distributions in cash. Participation in the Plan is
completely voluntary and may be terminated or resumed at any time without
penalty by notifying American Stock Transfer & Trust Company, the agent for
shareowners in administering the Plan (the Plan Agent), in writing prior to
any dividend record date; otherwise such termination or resumption will be
effective with respect to any subsequently declared dividend or other
distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate in
the Plan on the shareowner's behalf. If the firm or nominee does not offer
the Plan, dividends will be paid in cash to the shareowner of record. A firm
or nominee may reinvest a shareowner's cash dividends in common shares of
the Trust on terms that differ from the terms of the Plan.
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional unissued
but authorized common shares from the Trust or (ii) by purchase of
outstanding common shares on the New York Stock Exchange or elsewhere. If,
on the payment date for any dividend, the net asset value per common share
is equal to or less than the market price per share plus estimated
Pioneer High Income Trust | Semiannual Report | 9/30/13 49
brokerage trading fees (market premium), the Plan Agent will invest the
dividend amount in newly issued common shares. The number of newly issued
common shares to be credited to each account will be determined by dividing
the dollar amount of the dividend by the net asset value per common share on
the date the shares are issued, provided that the maximum discount from the
then current market price per share on the date of issuance does not exceed
5%. If, on the payment date for any dividend, the net asset value per common
share is greater than the market value (market discount), the Plan Agent
will invest the dividend amount in common shares acquired in open-market
purchases. There are no brokerage charges with respect to newly issued
common shares. However, each participant will pay a pro rata share of
brokerage trading fees incurred with respect to the Plan Agent's open-market
purchases. Participating in the Plan does not relieve shareowners from any
federal, state or local taxes which may be due on dividends paid in any
taxable year. Shareowners holding Plan shares in a brokerage account may not
be able to transfer the shares to another broker and continue to participate
in the Plan.
H. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Trust may buy
or sell credit default swap contracts to increase the Trust's income, to add
leverage to the portfolio or to hedge the risk of default on portfolio
securities. As a seller of protection, the Trust would be required to pay
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 risk of default of debt securities, in which case the
Trust would function as the counterparty reference above.
When the Trust enters into a credit default swap contract, one party, the
protection buyer, makes an upfront or periodic payment to the protection
seller in exchange for the right to receive a contingent payment. An upfront
payment received by the Trust, as the protection seller, is recorded as a
liability in the Trust's records. An upfront payment made by the Trust, as
the protection buyer, is recorded as an asset in the Trust's records.
Periodic payments received or paid by the Trust are recorded as realized
gains or losses.
50 Pioneer High Income Trust | Semiannual Report | 9/30/13
The credit default swap contracts are market-to-market daily using
valuations supplied by independent sources and the change in value, if any,
is recorded as unrealized gain or loss. 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.
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.
During the six months that ended September 30, 2013, the Trust opened one
credit default swap, with a notional principal of $2,000,000, which was
still open at period end. Credit default swap contracts outstanding at
period end are listed at the end of the Trust's schedule of investments.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit), manages
the Trust's portfolio. Management fees payable under the Trust's Advisory
Agreement with PIM are calculated daily at the annual rate of 0.60% 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 of the issuance of debt securities), (ii)
the issuance of preferred stock or other similar preference securities, and/or
(iii) any other means. For the period ended September 30, 2013, the net
management fee was 0.60% of the Trust's average daily managed assets, which was
equivalent to 0.83% of the Trust's average daily net assets attributable to the
common shareowners.
In addition, under PIM's management and administration agreements, certain other
services and costs are paid by PIM and reimbursed by the Trust. At September 30,
2013, $252,074 was payable to PIM related to management costs, administrative
costs and certain other reimbursements and is included in "Due to affiliates"
and "Administration fee" on the Statement of Assets and Liabilities.
Pioneer High Income Trust | Semiannual Report | 9/30/13 51
3. Transfer Agents
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly owned
indirect subsidiary of UniCredit, through a sub-transfer agency agreement with
American Stock Transfer & Trust Company, provides substantially all transfer
agent and shareowner services related to the Trust's common shares at negotiated
rates. Deutsche Bank Trust Company Americas (Deutsche Bank) is the transfer
agent, registrar, dividend paying agent and auction agent with respect to the
Trust's Auction Market Preferred Shares (AMPS). The Trust pays Deutsche Bank an
annual fee, as is agreed to from time to time by the Trust and Deutsche Bank,
for providing such services.
In addition, the Trust reimburses PIMSS for out -of-pocket expenses incurred by
PIMSS related to shareowner communications activities such as proxy and
statement mailings and outgoing phone calls.
4. Expense Offset Arrangement
The Trust has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Trust's custodian expenses. For the six months ended September 30, 2013, the
Trust expenses were not reduced under such arrangement.
5. Forward Foreign Currency Contracts
During the six months ended September 30, 2013, the Trust entered into various
forward foreign currency contracts that obligate the Trust to deliver or take
delivery of currencies at specified future maturity dates. Alternatively, prior
to the settlement date of a forward foreign currency contract, the Trust may
close out such contract by entering into an offsetting contract. The average
value of contracts open during the six months ended September 30, 2013 was
$3,689,276.
Open forward foreign currency contracts at September 30, 2013, were as follows:
----------------------------------------------------------------------------------------------
Net
Contracts In Net
to Receive/ Exchange Settlement Unrealized
Currency (Deliver) for US$ Date US$ Value Depreciation
----------------------------------------------------------------------------------------------
EUR (European Dollar) (1,500,000) $(1,991,658) 4/24/14 $(2,029,627) $ (37,969)
EUR (European Dollar) (3,694,000) (4,814,068) 4/24/14 (4,998,295) (184,227)
GBP (Pound Sterling) (886,000) (1,341,582) 3/28/14 (1,432,267) (90,685)
----------------------------------------------------------------------------------------------
Total $(312,881)
==============================================================================================
52 Pioneer High Income Trust | Semiannual Report | 9/30/13
6. Assets and Liabilities Offsetting
Financial instruments subject to an enforceable master netting agreement have
been offset on the Statements of Assets and Liabilities. The following charts
show gross assets and liabilities as of September 30, 2013.
-------------------------------------------------------------------------------------------------------
Assets:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Assets Assets and Liabilities
Gross Statement Presented ----------------------------
Amounts of of Assets In the Cash
Recognized and Assets and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
-------------------------------------------------------------------------------------------------------
Credit default
swaps $ 284,849 $ -- $ 284,849 $ -- $ -- $ 284,849
Forward
Foreign
Currency
Contracts $ -- $ -- $ -- $ -- $ -- $ --
----------------------------------------------------------------------------------------------------------
Repurchase
agreements $ 12,055,000 $ -- $ 12,055,000 $ (12,055,000)* $ -- $12,055,000
----------------------------------------------------------------------------------------------------------
$ 12,339,849 $ -- $ 12,339,849 $ (12,055,000) $ -- $12,339,849
==========================================================================================================
-------------------------------------------------------------------------------------------------------
Liabilities:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Assets Assets and Liabilities
Gross Statement Presented ----------------------------
Amounts of of Assets In the Cash
Recognized and Assets and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
-------------------------------------------------------------------------------------------------------
Credit default
swaps $ -- $ -- $ -- $ -- $ 200,000 $200,000
-------------------------------------------------------------------------------------------------------
Forward
Foreign
Currency
Contracts $ 312,881 $ -- $ 312,881 $ -- $ -- $312,881
-------------------------------------------------------------------------------------------------------
Repurchase
agreements $ -- $ -- $ -- $ -- $ -- $ --
-------------------------------------------------------------------------------------------------------
$ 312,881 $ -- $ 312,881 $ -- $ 200,000 $512,881
=======================================================================================================
Pioneer High Income Trust | Semiannual Report | 9/30/13 53
7. Unfunded Loan Commitments
As of September 30, 2013, the Trust had no unfunded loan commitments. The Trust
had the following bridge loan and partially funded loan commitments outstanding
at September 30, 2013.
--------------------------------------------------------------------------------------------
Unrealized
Appreciation
Borrower Par Cost Value (Depreciation)
--------------------------------------------------------------------------------------------
TMS International Corp. $1,400,000 $1,400,000 $1,400,000 $ --
Rural / Metro Corp. $ 503,454 $ 502,899 $ 506,885 $3,986
--------------------------------------------------------------------------------------------
8. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the periods ended
September 30, 2013 and March 31, 2013 were as follows:
--------------------------------------------------------------------------------
9/30/13 3/31/13
--------------------------------------------------------------------------------
Shares outstanding at beginning of period 28,429,194 28,213,163
Reinvestment of distributions 123,033 216,031
--------------------------------------------------------------------------------
Shares outstanding at end of period 28,552,227 28,429,194
================================================================================
The Trust may classify or reclassify any unissued shares of beneficial interest
into one or more series of preferred shares of beneficial interest. As of
September 30, 2013, there were 6,040 AMPS as follows: Series M7-2,020, Series
W28-2,020 and Series TH7-2,000.
Dividends on Series M7 and Series TH7 are cumulative at a rate which is to be
reset every seven days based on the results of an auction. Dividends on Series
W28 are also cumulative at a rate to be reset every 28 days based on the results
of an auction. An auction fails if there are more AMPS offered for sale than
there are buyers. When an auction fails, the dividend rate for the period will
be the maximum rate on the auction dates described in the prospectus for the
AMPS. Preferred shareowners are not able to sell their AMPS at an auction if the
auction fails. Since February 2008, the Trust's auctions related to the AMPS
have failed. The maximum rate for each 7-day series is 150% of the 7 day
commercial paper rate. The maximum rate for the 28-day series is 150% of the 30
day commercial paper rate. Dividend rates on AMPS ranged from 0.07% to 0.18%
during the six months ended September 30, 2013.
The Trust may not declare dividends or make other distributions on its common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, the Trust does not comply with the asset coverage
ratios described in the prospectus for the AMPS.
54 Pioneer High Income Trust | Semiannual Report | 9/30/13
The AMPS are redeemable at the option of the Trust, in whole or in part, on any
dividend payment date at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared. The AMPS are also subject to mandatory
redemption at $25,000 per share plus any accumulated or unpaid dividends,
whether or not declared, if certain requirements relating to the composition of
the assets and liabilities of the Trust as set forth in the Statement of
Preferences are not satisfied.
The holders of AMPS have voting rights equal to the holders of the Trust's
common shares (one vote per share) and will vote together with holders of the
common shares as a single class. Holders of AMPS are also entitled to elect two
of the Trust's Trustees. In addition, the Investment Company Act of 1940, as
amended, requires that along with approval by shareowners that might otherwise
be required, the approval of the holders of a majority of any outstanding
preferred shares, voting separately as a class, would be required to (a) adopt
any plan of reorganization that would adversely affect the preferred shares and
(b) take any action requiring a vote of security holders, including, among other
things, changes in the Trust's subclassification as a closed-end management
investment company or changes in its fundamental investment restrictions.
9. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of September 30, 2013 were as follows:
-----------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives 2013 Liabilities Derivatives 2013
Hedging Instruments -------------------------------------------------------------------
Under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
-----------------------------------------------------------------------------------------------
Forward foreign currency Net unrealized $ -- Net unrealized $312,881
contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts currency contracts
Credit default swaps Net unrealized $284,849 Net unrealized $ --
appreciation on depreciation on
credit default credit default
swaps swaps
-----------------------------------------------------------------------------------------------
Total $284,849 $312,881
===============================================================================================
Pioneer High Income Trust | Semiannual Report | 9/30/13 55
The effect of derivative instruments on the Statement of Operations for the six
months ended September 30, 2013 was as follows:
---------------------------------------------------------------------------------------------------
Change in
Derivatives Not Realized Unrealized
Accounted for as Gain or Appreciation or
Hedging Instruments (Loss) on (Depreciation)
Under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
---------------------------------------------------------------------------------------------------
Forward foreign currency Net realized gain (loss) on forward
portfolio hedge foreign currency contracts and $ --
contracts other assets and liabilities
denominated in foreign currencies
Forward foreign currency Change in net unrealized $(309,997)
contracts appreciation (depreciation) on
forward foreign currency contracts
and other assets and liabilities
denominated in foreign currencies
Credit Default Swaps Net realized gain (loss) on credit
default swaps $ 500,273
Credit Default Swaps Change in unrealized appreciation $ (54,170)
(depreciation) on credit default swaps
11. Subsequent Events
The Board of Trustees of the Trust declared on October 3, 2013 a dividend from
undistributed net investment income of $0.1375 per common share payable October
31, 2013, to common shareowners of record on October 17, 2013.
Subsequent to September 30, 2013, dividends declared and paid on preferred
shares totaled $18,306 in aggregate for the three outstanding preferred share
series through November 13, 2013.
12. REDEMPTION OF AMPS
The Trust intends to redeem all of its outstanding auction market preferred
shares ("AMPS") at the liquidation preference per share (sometimes referred to
as "at par"), together with accrued and unpaid dividends, if any, as of the
redemption date.
The Board of Trustees has authorized a third-party debt facility and the
redemption of the Trust's outstanding AMPS. The redemption of the Trust's
AMPS is subject to the successful negotiation of the new financing and the
satisfaction of certain notice and regulatory requirements and the closing
conditions of the new financing. Pioneer expects the redemption to be
completed in early 2014.
After the refinancing is completed, the Trust will continue to employ financial
leverage for investment purposes. At this time, the refinancing is not expected
to affect the Trust's monthly distribution rate per common share.
56 Pioneer High Income Trust | Semiannual Report | 9/30/13
ADDITIONAL INFORMATION (unaudited)
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.
Results of Shareholder Meeting (unaudited)
At the annual meeting of shareowners held on September 24, 2013, shareowners of
Pioneer High Income Trust were asked to consider the proposals described below.
A report of the total votes cast by the Trust's shareholders follows:
Proposal 1 -- To elect Class I Trustee.
--------------------------------------------------------------------------------
Nominee For Withheld
--------------------------------------------------------------------------------
Daniel K. Kingsbury 24,267,592.000 728,137.000
David R. Bock* 2,143.000 493.000
* Elected by preferred shares only.
Pioneer High Income Trust | Semiannual Report | 9/30/13 57
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman John F. Cogan, Jr., President*
David R. Bock Daniel K. Kingsbury, Executive
Benjamin M. Friedman Vice President
Margaret B.W. Graham Mark E. Bradley, Treasurer**
Daniel K. Kingsbury Christopher J. Kelley, Secretary
Marguerite A. Piret
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Legal Counsel
Bingham McCutchen LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Shareowner Services and Transfer Agent
American Stock Transfer & Trust Company
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at http://www.sec.gov.
* Chief Executive Officer of the Trust
** Chief Financial and Accounting Officer of the Trust
58 Pioneer High Income Trust | Semiannual Report | 9/30/13
This page for your notes.
Pioneer High Income Trust | Semiannual Report | 9/30/13 59
This page for your notes.
60 Pioneer High Income Trust | Semiannual Report | 9/30/13
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
web site us.pioneerinvestments.com.
The Trust files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2013 Pioneer Investments 19432-07-1113
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(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.
N/A
(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.
N/A
(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.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(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.
N/A
(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 Funds audit committee of the Board of Trustees has considered whether
the provision of non-audit services that were rendered to the Affiliates
(as defined) that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Information not required in semi annual reports on form NCSR.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
During the period covered by this report, there were no purchases
made by or on behalf of the registrant or any affiliated purchaser
as defined in Rule 10b-18(a)(3) under the Securities Exchange Act
of 1934 (the Exchange Act), of shares of the registrants equity
securities that are registered by the registrant pursuant to
Section 12 of the Exchange Act.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer High Income Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date November 29, 2013
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/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date November 29, 2013
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date November 29, 2013
* Print the name and title of each signing officer under his or her signature.