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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21654
Pioneer Floating Rate Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: November 30
Date of reporting period: December 1, 2011 through May 31, 2012
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 SHAREOWNERS.
[GRAPHIC MAP]
Pioneer Floating
Rate Trust
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Semiannual Report | May 31, 2012
--------------------------------------------------------------------------------
Ticker Symbol: PHD
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 11
Performance Update 12
Schedule of Investments 13
Financial Statements 41
Financial Highlights 44
Notes to Financial Statements 46
Trustees, Officers and Service Providers 57
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 1
President's Letter
Dear Shareowner,
The U.S. economy continued its recovery through the first quarter of 2012, even
as broader global concerns weighed on investors. The U.S. unemployment rate
fell to 8.1% in April, and some indicators suggest that it may continue to
trend down. The housing market continued to improve, fueled in part by
record-low mortgage rates. The risk of rising oil prices appeared to recede.
The improved outlook helped U.S. equity markets to perform well in the first
quarter, with the Standard & Poor's 500 Index rising by 12%. For bond
investors, the riskier sectors of the bond market fared the best. The broad
bond market, as measured by the Barclays Capital Aggregate Bond Index, rose by
just 0.3%, while the high-yield bond market, as measured by the Bank of America
Merrill Lynch High Yield Master II Index, rose by 5.15%.
We are cautiously optimistic that the U.S. economy will continue to improve.
But we are also closely monitoring macroeconomic concerns that could change the
market's direction, such as the lingering debt woes in Europe, the state of the
Chinese economy, and the U.S. government's fiscal situation. Clouds have
continued to hover over Europe, as the exit of Greece from the Euro-zone
remains a possibility. Meanwhile, China continues to face a potential slowdown
in economic growth. In the U.S., tax increases and spending cuts scheduled to
take effect at year-end should, unless fiscal policy changes, sharply reduce
the budget deficit -- which would be very good for the country in the longer
run -- but also could potentially stall U.S. economic growth in 2013. All of
these considerations may lead to further market volatility.
At Pioneer, we have long advocated the benefits of staying diversified* and
investing for the long term. The strategy has generally performed well for many
investors. 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. There is no single best strategy
that works for every investor.
Pioneer's investment professionals focus on finding good opportunities to
invest in both equity and bond markets using the same disciplined investment
approach we have used since 1928. Our strategy is to identify undervalued
individual securities with the greatest potential for success, carefully
weighing
* Diversification does not assure a profit or protect against loss in a
declining market.
2 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
risk against reward. Our teams of investment professionals continually monitor
and analyze the relative valuations of different sectors and securities
globally to help build portfolios that we believe can help you achieve your
investment goals.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. These statements should
not be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 3
Portfolio Management Discussion | 5/31/12
Floating-rate bank loans generated healthy returns during most of the six-month
period ended May 31, 2012, as credit-sensitive securities flourished against a
backdrop of growing investor confidence. However, the market sagged somewhat in
May 2012 amid new concerns about sovereign-debt problems in Europe and evidence
of slowing economic growth in the United States. In the following interview,
Jonathan Sharkey discusses the factors that affected the performance of Pioneer
Floating Rate Trust over the six-month period ended May 31, 2012. Mr. Sharkey,
vice president and portfolio manager at Pioneer, is responsible for the
day-to-day management of the Trust.
Q How did the Trust perform during the six-month period ended May 31, 2012?
A Pioneer Floating Rate Trust returned 7.52% at net asset value and 6.65% at
market price during the six months ended May 31, 2012, while the Trust's
benchmark, the Barclays Capital U.S. High Yield Loans Index (the Barclays
Index), returned 4.51%. During the same six-month period, the average
return (at market price) of the 22 closed end funds in Lipper's Closed End
Loan Participation Funds Category (which may or may not be leveraged) was
7.02%.
The shares of the Trust were selling at a 0.4% premium to net asset value
at the end of the six-month period on May 31, 2012.
Unlike the Trust, the benchmark does not use leverage. While the use of
leverage can increase investment opportunity, it also can increase
investment risk.
On May 31, 2012, the Trust's standard 30-day SEC yield was 7.96%.
Q How would you describe the market environment for floating-rate loans
during the six-month period ended May 31, 2012?
A Early in the six-month period, evidence of continuing economic growth
encouraged investors to seek out credit-sensitive, fixed-income investments
in general, including floating-rate bank loans. Even though the pace of
economic growth remained relatively slow, the credit-worthiness of most
floating-rate loans became increasingly evident, encouraging a "risk-on"
mentality among investors. High-yield fund managers and other types of
institutional investors became attracted to the discounted prices at which
many floating-rate loans were selling. In that environment, the Trust
performed very well, both from its emphasis on floating-rate loans in the
4 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
portfolio and from its use of leverage, which served to boost results in a
rising market.
While concerns about European sovereign-debt problems had caused a pullback
in the market in the weeks before the start of the six-month period,
December 2011, the first month of the period, saw the market regain
positive momentum. Bank loans produced positive returns in 2011, marking
the 13th year in the last 14 that the asset class showed positive results.
Although growth of loan mutual funds was anemic throughout the first
quarter of 2012, loan returns were strong overall, as demand for loans
outside of retail mutual funds grew in the face of stability in the
fixed-income markets, healthy repayment activity for loans and the entry
into the loan market of more investors, such as high-yield funds, pension
funds and institutions. Collateralized loan obligations (CLOs), which in
the aggregate account for 50% of the investor base purchasing bank loans,
saw new demand which actually outpaced demand for all of 2011. The trend
continued into April 2012. However, in May, the final month of the
six-month period, the market for credit-sensitive securities, including
floating-rate securities, declined as new worries surfaced about
sovereign-credit problems in Europe, especially in Greece. Investors also
grew apprehensive that any significant deterioration in the European
economy could have a contagious effect on the U.S. economy. Nevertheless,
the results for investments in floating-rate loans were strong over the
full six-month period.
Q What types of investments most influenced the Trust's performance during
the six-month period ended May 31, 2012?
A Although the Trust's portfolio of investments is overwhelmingly composed of
floating-rate loans, exposures to two equity positions proved to be the
most powerful influences on performance during the six-month period. Due to
the financial reorganization of both Delphi Automotive and MGM, the Trust
received equity shares (permissible holdings) in exchange for its bank loan
positions. As the result of the financial reorganizations as well as
improving business prospects for both corporations, the shares appreciated
in value, providing significant boosts to the Trust's performance. Delphi
Automotive is a producer of automotive components, while MGM is a producer
of movies.
Apart from the equity positions, the Trust's performance during the
six-month period received the strongest support from investments in loans
to health care institutions, which we have overweighted in the portfolio
because of that sector's ability to produce consistent earnings, even in a
sluggish economy. Loans to health care institutions had performed poorly in
late 2011 due to uncertainty about how the Federal government's decisions
about deficit reduction could affect the group. However, as prospects
increased that health care would be less affected by the deficit-reduction
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 5
talks, the values of the loans partially recovered later in the six-month
period, and the Trust's investments gained in value. Individual holdings
that contributed to the Trust's performance included: National Mentor,
which provides home health care for people with disabilities; Carestream, a
medical-technology corporation; Sun Health Care, which operates long-term
facilities; and CCS Medical, a medical-device distributor. The Trust's
investments in loans to Chrysler also helped performance, as the auto maker
continued to strengthen its finances.
The Trust did have some holdings that disappointed during the six-month
period. Noteworthy underperformers in the Trust's portfolio included
investments in loans to Azithromycin and Celtic Pharmaceutical, two smaller
drug manufacturers; Broadstripe, a small regional cable telecom services
provider; and Texas utility TXU.
During the quarter, we lowered the Trust's dividend, primarily as the
result of two corporate restructurings and, secondarily, because of some
higher-coupon loans being refinanced at lower interest rates. In fact,
nearly 15% of the Barclays Index was refinanced during the six-month
period.
Q How did the level of leverage employed by the Trust change over the
six-month period ended May 31, 2012?
A As of May 31, 2012, 36.7% of the Trust's total managed assets were financed
by leverage, compared with 37.3% of the Trust's total managed assets
financed by leverage at the start of the period on December 1, 2011. The
change was due to fluctuations in the values of securities in which the
Trust had invested, as the absolute amount of funds obtained through
leverage had not changed.
Q What is your investment outlook?
A In the short term, we expect that the markets will continue to fluctuate in
reaction to news about the economic situation in Europe and the political
battles in the United States over spending, taxes and deficit reduction.
Volatility could increase in the near future.
We think the Trust is well positioned, however, even if volatility should
increase. The overall credit quality of the Trust's holdings has improved
somewhat in recent months, in part because we have invested in higher-
quality loans as other loans have been retired by their corporate issuers.
While our outlook has grown somewhat more cautious in recent weeks, we
continue to believe that the domestic economy will grow modestly in 2012,
with gross domestic product (GDP) potentially exceeding 2%. Most economic
benchmarks remain positive, although improvement rates are far from robust.
American corporations generally appear to be in sound financial health,
having strengthened their balance sheets, and appear capable of
6 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
meeting all their loan obligations. Nevertheless, floating-rate bank loans
still are selling at discounts to their par (face) values, despite their
attractive prices and yields relative to other fixed-income investments,
notably investment-grade corporate bonds. While the default rate for bank
loans recently ticked up a bit, the rate remains below long-term averages
and loans continue to be selling at prices that imply much higher default
rates. That scenario potentially presents a solid investment opportunity.
One of the benefits of floating-rate loans, as opposed to other income-
oriented investments, is their potential to increase their yields as
interest rates rise. While the U.S. Federal Reserve System has signaled its
intention to keep short-term interest rates low, perhaps into 2014, we
think investors in floating-rate loans still are being compensated while
they wait for yield increases. Current yields offered by floating-rate
loans remain attractive relative to other fixed-income investments, and
loans continue to trade at discounts to their par values, thus leaving open
the possibility for potential capital appreciation.
Please refer to the Schedule of Investments on pages 13-40 for a full listing
of Trust securities.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 7
The Trust may invest in derivative securities, which may include futures and
options. These types of instruments can increase price fluctuation.
The Trust is not limited in the percentage of its assets that may be invested
in floating-rate senior loans and other securities deemed to be illiquid.
Illiquid securities may be difficult to sell at a fair price at times when the
Trust believes it is desirable to do so and their market price is generally
more volatile than that of more liquid securities. Illiquid securities may be
difficult to value, and investment of the Trust's assets in illiquid securities
may restrict the Trust's ability to take advantage of market opportunities.
The Trust currently uses leverage through the issuance of preferred shares. The
Trust also is authorized to borrow from banks and to issue debt securities,
which are other forms of leverage. 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.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. The Trust may invest in securities of issuers that
are in default or that are in bankruptcy.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates and economic and political
conditions.
The Trust is required to maintain certain regulatory and rating agency asset
coverage requirements in connection with its outstanding preferred shares. In
order to maintain required asset coverage levels, the Trust may be required to
alter the composition of its investment portfolio or take other actions, such
as redeeming preferred shares with the proceeds from portfolio transactions, at
what might be inopportune times in the market. Such actions could reduce the
net earnings or returns to holders of the Trust's common shares over time.
These risks may increase share price volatility.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. These statements should
not be relied upon for any other purposes.
8 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
Portfolio Summary | 5/31/12
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[The data is a representation of a pie chart in the printed material]
Senior Floating Rate Loan Interests 85.5%
Corporate Bonds & Notes 6.4%
Common Stocks 3.8%
Temporary Cash Investments 2.4%
Collateralized Loan Obligations 1.2%
Rights/Warrants 0.4%
Preferred Stocks 0.3%
Claims* 0.0%
Liquidating Trusts* 0.0%
Asset Backed Securities* 0.0%
* Amount is less than 0.1%
Quality Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on Standard & Poor's
ratings (S&P).)
[The data is a representation of a pie chart in the printed material]
B 42.6%
BB 39.6%
BBB 4.3%
CC* 0.0%
CCC 2.9%
Not Rated** 10.6%
Ratings are ordered highest to lowest in portfolio. Based on S&P's measures,
AAA (highest possible rating) through BBB are considered investment grade; BB
or lower ratings are considered non-investment grade. Some bonds and loans may
not be rated.
* Amount rounds to less than 0.1%
** These securities are judged to be similar but slightly lower in quality
than the average of the total investment portfolio.
The Trust is actively managed and current holdings may be different.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 9
Portfolio Summary | 5/31/12 (continued)
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Delphi Automotive Plc 2.97%
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2. Univision Communications, Inc., Extended First Lien Term Loan, 4.489%, 3/31/17 1.78
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3. Broadstripe LLC, First Lien Term Loan, 11.25%, 6/30/11 1.56
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4. Cequel Communications LLC, Term Loan, 4%, 2/14/19 1.46
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5. Azithromycin Royalty Sub LLC, 16%, 5/15/19 1.29
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6. Celtic Pharma Phinco B.V., 17%, 6/15/12 1.15
---------------------------------------------------------------------------------------------
7. MetroPCS Wireless, Inc., Tranche B-2 Term Loan, 4.071%, 11/3/16 1.09
---------------------------------------------------------------------------------------------
8. Pinnacle Foods Finance LLC, Term Loan, 2.968%, 4/2/14 0.95
---------------------------------------------------------------------------------------------
9. WideOpenWest Finance LLC, First Lien Term Loan, 4.75%, 6/30/14 0.94
---------------------------------------------------------------------------------------------
10. Dollar General Corp., Tranche B-2 Term Loan, 2.989%, 7/7/14 0.85
---------------------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
10 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
Prices and Distributions | 5/31/12
Market Value per Common Share
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--------------------------------------------------------------------------------
5/31/12 11/30/11
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$12.80 $12.55
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Premium 0.39% 0.80%
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Net Asset Value per Common Share
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--------------------------------------------------------------------------------
5/31/12 11/30/11
--------------------------------------------------------------------------------
$12.75 $12.45
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Distributions per Common Share: 12/1/11-5/31/12
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--------------------------------------------------------------------------------
Net
Investment Short-Term Long Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
$0.5700 $ -- $ --
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Yields
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
5/31/12 11/30/11
--------------------------------------------------------------------------------
Distribution Yield at Market Price 7.03% 7.49%
--------------------------------------------------------------------------------
Distribution Yield at Net Asset Value 7.06% 7.55%
--------------------------------------------------------------------------------
30-day SEC Yield 7.96% 10.17%
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Past performance data quoted represents past performance, which is no guarantee
of future results.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 11
Performance Update | 5/31/12
Investment Returns
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The mountain chart on the right shows the change in market value, including
reinvestment of dividends and distributions, of a $10,000 investment made in
common shares of Pioneer Floating Rate Trust, compared to that of the Barclays
Capital U.S. High Yield Loans Index, which measures the performance of
high-yield loans.
Average Annual Total Returns
(As of May 31, 2012)
---------------------------------------------------------------
Net Asset Market
Value (NAV) Value
---------------------------------------------------------------
Life-of-Trust
(12/28/04) 4.32% 3.73%
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5 Years 1.63 1.26
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1 Year 3.69 -1.92
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[The data is a representation of a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer Floating Barclays Capital U.S.
Rate Trust High Yield Loans Index
12/04 $10,000 $10,000
8,945 10,000
5/06 10,167 10,913
12,330 10,416
5/08 10,156 10,206
6,852 9,338
5/10 10,691 11,518
13,386 12,610
5/12 13,129 12,871
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.
The Barclays Capital U.S. High Yield Loans Index measures the performance of
high-yield loans. Since comparisons for the Barclays Index begin in 2006, the
chart assumes an initial investment of $10,913, which is equal to the Trust's
value at 11/30/2006. Index returns are calculated monthly, assume reinvestment
of dividends and, unlike Trust returns, do not reflect any fees, expenses or
sales charges. The indices do not employ leverage. You cannot invest directly
in an index.
12 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
Schedule of Investments | 5/31/12 (unaudited)
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Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-----------------------------------------------------------------------------------------------
ASSET BACKED SECURITY --
0.0% (a) of Net Assets
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES --0.0%(a)
Pharmaceuticals -- 0.0%(a)
100,234(b) NR/NR Pharma VI, 5.25%, 10/15/14 $ 90,211
-------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 90,211
-------------
TOTAL ASSET BACKED SECURITY
(Cost $100,235) $ 90,211
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COLLATERALIZED LOAN
OBLIGATIONS -- 2.0% of Net Assets
BANKS -- 2.0%
Diversified Banks -- 0.6%
1,000,000(b)(c)(d) BB+/Ba2 Primus, Ltd., Series 2007-2A, Class D,
2.867%, 7/15/21 (144A) $ 663,270
1,000,000(b)(d) B+/Ba2 Rampart, Ltd., Series 2006-1A, Class D,
4.016%, 4/18/21 696,130
951,289(b)(d) CCC-/Ba3 Stanfield McLaren, Ltd., Series 2007-1A,
Class B2L, 4.967%, 2/27/21 (144A) 657,702
-------------
$ 2,017,102
-----------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.4%
1,000,000(b)(d) BB+/Ba2 ACA, Ltd., Series 2007-1A, Class D,
2.817%, 6/15/22 (144A) $ 717,700
1,000,000(b)(d) BBB-/Ba1 Goldman Sachs Asset Management Plc, Series
2007-1A, Class D, 3.216%, 8/1/22 (144A) 761,850
1,000,000(b)(d) BBB/Baa3 Gulf Stream Sextant, Ltd., Series 2007-1A,
Class D, 2.874%, 6/17/21 (144A) 747,340
1,000,000(b)(d) BB/Ba3 Landmark CDO, Ltd., Series 2007-9A, Class E,
3.967%, 4/15/21 (144A) 817,990
2,000,000(b)(d) BB+/Baa3 Stone Tower, Ltd., Series 2007-6A, Class C,
1.816%, 4/17/21 (144A) 1,332,320
-------------
$ 4,377,200
-------------
Total Banks $ 6,394,302
-----------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED LOAN OBLIGATIONS
(Cost $6,696,776) $ 6,394,302
-----------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 138.8% of Net Assets*
AUTOMOBILES & COMPONENTS -- 6.3%
Auto Parts & Equipment -- 4.1%
2,754,304 BB-/Ba3 Allison Transmission, Inc., Term Loan B-1,
2.74%, 8/7/14 $ 2,721,787
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 13
Schedule of Investments | 5/31/12 (unaudited) (continued)
-----------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-----------------------------------------------------------------------------------------------
Auto Parts & Equipment -- (continued)
839,824 B+/Ba3 Federal-Mogul Corp., Tranche B Term Loan,
2.178%, 12/29/14 $ 797,623
428,482 B+/Ba3 Federal-Mogul Corp., Tranche C Term Loan,
2.178%, 12/28/15 406,950
2,324,059 B+/B2 HHI Holdings LLC, Term Loan, 7.75%, 3/21/17 2,326,964
2,199,878 B+/B1 Metaldyne LLC, Term Loan, 5.25%, 5/18/17 2,198,532
1,144,250 BB-/B1 Stackpole Powertrain International ULC, Term
Loan, 7.5%, 8/2/17 1,138,529
1,235,000 NR/NR TI Group Automotive Systems LLC, Term Loan,
6.75%, 3/14/18 1,218,019
1,015,305 BB/Ba2 Tomkins LLC, Term Loan B-1, 4.25%, 9/29/16 1,013,190
1,110,938 B+/Ba2 UCI International, Inc., Term Loan, 5.5%, 7/6/17 1,116,492
-------------
$ 12,938,086
-----------------------------------------------------------------------------------------------
Automobile Manufacturers -- 1.2%
3,598,310 BB/Ba2 Chrysler Group LLC, Tranche B Term Loan,
6.0%, 5/24/17 $ 3,596,061
-----------------------------------------------------------------------------------------------
Tires & Rubber --1.0%
3,250,000 BB/Ba1 Goodyear Tire & Rubber Co., Extended Second
Lien Term Loan, 4.75%, 4/30/19 $ 3,166,719
-------------
Total Automobiles & Components $ 19,700,866
-----------------------------------------------------------------------------------------------
BANKS -- 0.4%
Thrifts & Mortgage Finance -- 0.4%
1,271,267 B/B1 Ocwen Financial Corp., Initial Term Loan,
7.0%, 9/1/16 $ 1,276,035
-------------
Total Banks $ 1,276,035
-----------------------------------------------------------------------------------------------
CAPITAL GOODS -- 10.1%
Aerospace & Defense -- 5.2%
2,870,349 B+/B3 API Technologies Corp., Term Loan,
8.75%, 6/27/16 $ 2,870,349
757,268 B/B2 DAE Aviation Holdings, Inc., Tranche B-1 Term
Loan, 5.47%, 7/31/14 749,696
250,000 BBB-/Ba3 Delos Aircraft, Inc., Term Loan, 4.75%, 4/12/16 249,375
2,079,788 BB+/Ba3 Digitalglobe, Inc., Term Loan, 5.75%, 10/12/18 2,060,289
885,930 BB-/Ba2 DynCorp International, Inc., Term Loan,
6.25%, 7/7/16 885,937
1,602,420 BB-/B1 Hunter Defense Technologies, Inc., Term Loan,
3.49%, 8/22/14 1,426,154
1,731,428 CCC/NR IAP Worldwide Services, Inc., First Lien Term Loan,
9.25%, 12/30/12 1,540,971
625,000 NR/NR PRV Aerospace LLC, Term Loan, 6.5%, 5/9/18 625,000
1,500,000 B-/B1 Sequa Corp., Term Loan, 3.72%, 12/3/14 1,478,125
1,778,989 B+/Ba3 SI Organization, Inc., New Tranche B Term Loan,
4.5%, 11/22/16 1,743,409
The accompanying notes are an integral part of these financial statements.
14 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
-----------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-----------------------------------------------------------------------------------------------
Aerospace & Defense -- (continued)
992,500 B/B3 Sotera Defense Solutions, Inc., Term Loan B,
7.0%, 4/21/17 $ 982,575
721,943 B/B2 Standard Aero, Ltd., Tranche B-2 Term Loan,
5.35%, 7/31/14 714,723
990,742 BB-/B1 TASC, Inc., New Tranche B Term Loan,
4.5%, 12/18/15 975,063
-------------
$ 16,301,666
-----------------------------------------------------------------------------------------------
Building Products -- 1.8%
1,907,758 BB-/B1 Armstrong World Industries, Inc., Term Loan B-1,
4.0%, 3/10/18 $ 1,891,781
864,407 B+/B1 Custom Building Products, Inc., Term Loan,
5.75%, 3/19/15 856,303
1,075,113 B+/B1 Goodman Global, Inc., First Lien Initial Term Loan,
5.75%, 10/28/16 1,077,032
1,750,000 BB-/B1 Summit Materials LLC, Term Loan, 6.0%,
1/30/19 1,758,204
-------------
$ 5,583,320
-----------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 1.0%
2,115,450 BB/Ba2 Manitowoc Co., Inc., Term Loan B,
4.25%, 11/13/17 $ 2,120,728
950,225 BB/Ba2 Terex Corp., U.S. Term Loan, 5.5%, 4/28/17 956,610
-------------
$ 3,077,338
-----------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.9%
1,826,350 B+/B1 Pelican Products, Inc., Term Loan, 5.0%, 3/7/17 $ 1,821,784
1,161,837 B+/B1 Scotsman Industries, Inc., Term Loan,
5.75%, 4/30/16 1,158,933
-------------
$ 2,980,717
-----------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.4%
1,242,158 B+/B2 Pro Mach, Inc., Term Loan, 6.25%, 7/6/17 $ 1,223,526
-----------------------------------------------------------------------------------------------
Industrial Machinery -- 0.8%
2,200,000 B/B1 Schaeffler AG, USD Facility Term Loan C-2,
6.0%, 1/27/17 $ 2,197,939
485,139 BB+/Ba1 TriMas Co., LLC, Tranche B Term Loan,
4.25%, 6/21/17 488,777
-------------
$ 2,686,716
-------------
Total Capital Goods $ 31,853,283
-----------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL
SERVICES -- 6.3%
Commercial Printing -- 0.4%
1,228,438 BB-/Ba3 Cenveo Corp., Facility Term Loan B,
6.25%, 12/21/16 $ 1,223,319
-----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 15
Schedule of Investments | 5/31/12 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Diversified Commercial & Professional Services -- 0.8%
2,426,690 B/B2 Cydcor, Inc., First Lien Tranche B Term Loan,
9.0%, 2/5/13 $ 2,426,690
--------------------------------------------------------------------------------------------------------------
Diversified Support Services -- 1.7%
1,034,550 B+/Ba3 Allied Security Holdings LLC, First Lien Term Loan,
5.25%, 2/3/17 $ 1,028,084
1,502,949 B/B1 InfoGroup, Inc., Term Loan B, 5.75%, 5/26/18 1,307,566
1,166,188 BB-/Ba3 KAR Auction Services, Inc., Term Loan,
5.0%, 5/19/17 1,167,281
1,877,983 B/Ba3 Language Line LLC, Tranche B Term Loan,
6.25%, 6/20/16 1,868,593
-------------
$ 5,371,524
--------------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 1.6%
1,434,784 NR/NR Aquilex Holdings LLC, Term Loan, 8.75%, 4/1/16 $ 1,424,023
1,100,000 BB+/Ba1 Convata Energy Corp., Term Loan, 4.0%, 3/28/19 1,100,000
498,611 BB-/B1 Safety-Kleen Systems, Inc., Term Loan B,
5.0%, 2/21/17 500,481
1,303,580 B+/B1 Waste Industries USA, Inc., Term Loan B,
4.75%, 3/17/17 1,290,544
635,000 B+/B1 WCA Waste Corp., Term Loan, 5.5%, 3/23/18 634,206
-------------
$ 4,949,254
--------------------------------------------------------------------------------------------------------------
Human Resource & Employment Services -- 0.6%
1,800,000 NR/Ba3 On Assignment, Inc., Initial Term Loan B,
3.75%, 5/15/19 $ 1,784,250
--------------------------------------------------------------------------------------------------------------
Office Services & Supplies -- 0.2%
522,375 BB+/Ba1 ACCO Brands Corp., Term Loan B,
4.25%, 5/1/19 $ 523,028
--------------------------------------------------------------------------------------------------------------
Research & Consulting Services -- 0.8%
2,644,110 BB/B1 Wyle Services Corp., First Lien Term Loan,
5.0%, 3/26/17 $ 2,617,669
--------------------------------------------------------------------------------------------------------------
Security & Alarm Services --0.2%
833,724 B+/B1 Protection One, Inc., Term Loan, 6.75%, 3/21/19 $ 833,724
-------------
Total Commercial & Professional Services $ 19,729,458
--------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 2.4%
Homebuilding -- 0.1%
1,000,000(b)(c)(e) BB-/B1 WAICCS Las Vegas 3 LLC, First Lien Term Loan,
7.75%, 7/30/09 $ 330,000
4,500,000(b)(c)(e) BB-/Caa2 WAICCS Las Vegas 3 LLC, Second Lien Term
Loan, 13.25%, 7/30/09 22,500
-------------
$ 352,500
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
-----------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-----------------------------------------------------------------------------------------------
Housewares & Specialties -- 2.3%
1,496,222 BB+/Ba1 Jarden Corp., Tranche B Term Loan,
3.239%, 3/31/18 $ 1,498,248
1,519,697 BB-/Ba3 Prestige Brands, Inc., Term B Loan,
6.25%, 1/31/19 1,525,554
1,567,160 BB/Ba3 Reynolds Group Holdings, Inc., Tranche B Term
Loan, 6.5%, 2/9/18 1,574,342
984,295 BB-/Ba3 Reynolds Group Holdings, Inc., Tranche C Term
Loan, 6.5%, 8/9/18 988,806
1,670,000 B+/B1 Yankee Candle Co., Inc., Initial Term Loan,
5.25%, 4/2/19 1,663,216
-------------
$ 7,250,166
-------------
Total Consumer Durables & Apparel $ 7,602,666
-----------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 10.6%
Casinos & Gaming -- 1.7%
147,804 BB+/Ba2 Ameristar Casinos, Inc., Term Loan B,
4%, 4/16/18 $ 147,767
1,678,750 BB-/Ba3 Boyd Gaming Corp., Increased Term Loan,
6.0%, 12/17/15 1,693,138
1,173,000 B/B2 Caesars Entertainment Operating Co., Inc., Term
Loan B-4, 9.5%, 10/31/16 1,192,550
1,200,000 B/B2 Caesars Entertainment Operating Co., Inc., Term
Loan B-6, 5.489%, 1/28/18 1,063,500
33,217 BBB-/Ba2 Las Vegas Sands LLC, Delayed Draw I Term Loan,
2.85%, 11/23/16 32,345
165,268 BBB-/Ba2 Las Vegas Sands LLC, Tranche B Term Loan,
2.85%, 11/23/16 161,395
1,095,000 BB+/Ba1 Pinnacle Entertainment, Inc., Series A Incremental
Term Loan, 4.0%, 3/19/19 1,091,350
-------------
$ 5,382,045
-----------------------------------------------------------------------------------------------
Education Services -- 1.8%
2,073,764 B/NR Ascend Learning LLC, First Lien Term Loan,
6.75%, 5/23/17 $ 2,063,395
3,780,010 BB-/Ba2 Bright Horizons Family Solutions, Inc., Tranche B
Term Loan, 6.25%, 5/28/15 3,713,860
-------------
$ 5,777,255
-----------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.3%
1,071,400 B/B3 Yellowstone Mountain Club LLC, Senior First Lien
Term Loan, 6.0%, 7/16/14 $ 1,009,795
-----------------------------------------------------------------------------------------------
Leisure Facilities -- 0.9%
1,690,826 BB/Ba2 Cedar Fair LP, U.S. Term Loan-1, 4.0%, 12/15/17 $ 1,688,882
1,150,000 BB+/B1 Six Flags Theme Parks, Inc., Tranche B Term Loan,
4.25%, 12/20/18 1,143,416
-------------
$ 2,832,298
-----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 17
Schedule of Investments | 5/31/12 (unaudited) (continued)
-----------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-----------------------------------------------------------------------------------------------
Restaurants -- 3.9%
1,777,910 BB-/Ba3 Burger King Corp., Tranche B Term Loan,
4.5%, 10/19/16 $ 1,764,945
270,534 BB-/Ba2 DineEquity, Inc., Term Loan B-1,
4.25%, 10/19/17 269,209
3,973,886 B+/B2 Dunkin Brands, Inc., Term Loan B-2,
4.0%, 11/23/17 3,941,941
3,250,000 B+/B1 Landry's Inc., Term Loan B, 6.5%, 4/24/18 3,243,906
1,825,000 NR/NR NPC International, Inc., 2012 Term Loan,
5.25%, 12/28/18 1,825,000
1,218,018 BB-/B1 Wendy's/Arby's Restaurants LLC, Term Loan B,
4.75%, 5/15/19 1,206,599
-------------
$ 12,251,600
-----------------------------------------------------------------------------------------------
Specialized Consumer Services -- 2.0%
2,420,000 B/Ba3 Monitronics International, Inc., Term Loan,
5.5%, 3/23/18 $ 2,398,825
3,820,932 B+/B1 Wash MultiFamily Laundry Systems LLC, Term
Loan, 7.0%, 8/28/14 3,801,827
-------------
$ 6,200,652
-------------
Total Consumer Services $ 33,453,645
-----------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.4%
Asset Management & Custody Banks -- 0.2%
625,000 B+/B2 Clover Technologies Group LLC (Clover Holdings,
Inc.), Term Loan, 6.75%, 5/7/18 $ 615,625
-----------------------------------------------------------------------------------------------
Consumer Finance -- 0.7%
2,550,000 CCC+/B2 Springleaf Financial Funding Co., Initial Term
Loan, 5.5%, 5/10/17 $ 2,351,845
-----------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.2%
550,000 NR/Ba2 LPL Holdings, Inc., Initial Tranche B Term Loan,
4%, 3/29/19 $ 541,062
-----------------------------------------------------------------------------------------------
Other Diversified Financial Services --1.3%
369,473 B-/B2 BNY ConvergEX Group LLC, Second Lien (EZE)
Term Loan, 8.75%, 12/18/17 $ 359,082
880,527 B-/B2 BNY ConvergEX Group LLC, Second Lien (TOP)
Term Loan, 8.75%, 12/18/17 855,762
1,881,000 B/B1 Nexeo Solutions LLC, Initial Term Loan,
5.0%, 9/8/17 1,833,975
1,000,000 BB/Ba2 Ship Luxco 3 S.a.r.l. (RBS Worldpay), Facility
Term Loan B2A, 5.25%, 11/30/17 1,000,250
-------------
$ 4,049,069
-------------
Total Diversified Financials $ 7,557,601
-----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
ENERGY -- 5.0%
Coal & Consumable Fuels -- 0.4%
1,000,000 NR/NR PT Bumi Resources Tbk, Term Loan,
11.239%, 8/7/13 $ 1,000,000
----------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.4%
1,195,485 BBB/Baa2 Glenn Pool Oil & Gas Trust 1, Term Loan,
4.5%, 5/2/16 $ 1,222,383
----------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.1%
418,244(b)(f)(k) B+/B1 TARH E&P Holdings L.P., Second Lien Term Loan,
0.36%, 6/29/12 $ 384,784
----------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 2.3%
703,911 B/NR Fenwal, Inc., Delayed Draw First Lien Term Loan,
2.717%, 2/28/14 $ 686,313
4,104,641 B/NR Fenwal, Inc., Initial First Lien Term Loan,
2.717%, 2/28/14 4,002,025
2,723,297 B+/B2 Frac Tech Services, Term Loan, 6.25%, 5/6/16 2,443,187
-------------
$ 7,131,525
----------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.2%
1,460,000 BB-/NR Chesapeake Energy Corp., Term Loan,
8.5%, 12/2/17 $ 1,426,055
2,500,000 NR/Ba3 EP Energy LLC, Term Loan, 5.25%, 4/24/18 2,507,812
-------------
$ 3,933,867
----------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.5%
1,563,904 BBB-/Ba2 Pilot Travel Centers LLC, Initial Tranche B Term
Loan, 4.25%, 3/30/18 $ 1,566,511
----------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.2%
500,000 BB-/Ba3 Gibson Energy ULC, Tranche B Term Loan,
3.75%, 6/15/18 $ 504,375
-------------
Total Energy $ 15,743,445
----------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.5%
Drug Retail -- 0.5%
1,589,840 B+/B2 Rite Aid Corp., Tranche 5 Term Loan,
4.5%, 3/3/18 $ 1,578,314
----------------------------------------------------------------------------------------------------
Food Distributors -- 0.3%
957,000 BB-/B1 Windsor Quality Food Co., Ltd., Tranche B Term
Loan, 5.0%, 2/16/17 $ 928,290
----------------------------------------------------------------------------------------------------
Food Retail -- 1.7%
4,759,605 B+/Ba3 Pinnacle Foods Finance LLC, Term Loan,
2.968%, 4/2/14 $ 4,738,782
625,000 BB-/B1 Roundy's Supermarkets, Inc., Tranche B Term
Loan, 5.75%, 2/13/19 625,781
-------------
$ 5,364,563
-------------
Total Food & Staples Retailing $ 7,871,167
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 19
Schedule of Investments | 5/31/12 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.1%
Agricultural Products -- 0.4%
1,288,815 B+/B1 Wm. Bolthouse Farms, Inc., First Lien Term Loan,
5.75%, 2/11/16 $ 1,294,454
----------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 3.7%
950,000 NR/NR Aramark Canada, Ltd., Extended Canadian Term
Loan B, 3.72%, 7/26/16 $ 945,250
969,388 BB-/Ba3 Dean Foods Co., 2014 Tranche B Term Loan,
1.615%, 4/2/14 962,117
2,304,969 B/Ba3 Del Monte Foods Co., Initial Term Loan,
4.5%, 3/8/18 2,264,056
1,525,288 B+/B1 Michael Foods Group, Inc., Facility Term Loan B,
4.25%, 2/25/18 1,523,381
3,546,000 B+/B1 Pierre Foods, Inc., First Lien Term Loan,
7.0%, 9/30/16 3,560,776
2,500,000 BB-/B2 Pierre Foods, Inc., Second Lien Term Loan,
11.25%, 9/29/17 2,506,250
-------------
$ 11,761,830
-------------
Total Food, Beverage & Tobacco $ 13,056,284
----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 16.3%
Health Care Equipment & Services -- 0.7%
133,018 BBB-/Baa2 Fresenius SE, Tranche D-2 Term Loan,
3.25%, 9/10/14 $ 132,879
488,775 BB-/Ba2 Kinetic Concepts, Inc., Dollar Term Loan B-1,
7.0%, 5/4/18 494,100
1,707,330 BB-/B1 Onex Carestream Finance LP, Term Loan,
5.0%, 2/25/17 1,649,707
-------------
$ 2,276,686
----------------------------------------------------------------------------------------------------
Health Care Facilities -- 5.1%
2,326,168 B/B1 Ardent Medical Services, Inc., Term Loan,
6.5%, 9/15/15 $ 2,314,538
1,116,865 BB/Ba3 CHS/Community Health Systems, Inc., Extended
Term Loan, 3.97%, 1/25/17 1,094,228
3,471,473 BB/Ba3 HCA, Inc., Tranche B-2 Term Loan,
3.72%, 3/31/17 3,379,816
2,698,472 BB/Ba3 HCA, Inc., Tranche B-3 Term Loan,
3.489%, 5/1/18 2,622,586
1,633,500 B/Ba3 Iasis Healthcare LLC, Term Loan B, 5.0%, 5/3/18 1,608,997
2,116,713(f) CCC-/B2 LifeCare Holdings, Term Loan, 8.219%, 2/1/16 1,957,960
2,049,513 BB/Ba2 Select Medical Corp., Tranche B Term Loan,
5.5%, 6/1/18 1,988,027
1,143,165 BB+/Ba2 Universal Health Services, Inc., 2011 Tranche B
Term Loan, 3.75%, 11/15/16 1,140,021
-------------
$ 16,106,173
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Health Care Services -- 7.2%
734,896 B+/B2 AccentCare, Inc., Term Loan, 6.5%, 12/22/16 $ 646,708
686,332 B+/Ba3 Alliance HealthCare Services, Inc., Initial Term
Loan, 7.25%, 6/1/16 645,152
522,606 BB/Ba3 Butler Animal Health Supply LLC, Tranche B Term
Loan, 4.5%, 12/31/15 523,912
2,213,920 B-/B3 CCS Medical, Inc., First Lien Term Loan,
8.25%, 3/31/15 2,036,807
877,863(f) CCC/Caa2 CCS Medical, Inc., Second Lien Term Loan,
7.0%, 3/31/16 658,397
2,673,817 B/B1 Gentiva Health Services, Inc., Term Loan B-1,
6.5%, 8/17/16 2,486,650
1,433,186 BB-/Ba3 Inventiv Health, Inc., Consolidated Term Loan,
6.5%, 8/4/16 1,344,806
2,519,550 B+/B1 National Mentor Holdings, Inc., Tranche B Term
Loan, 7.0%, 2/9/17 2,503,173
1,116,978 B/B2 National Specialty Hospitals, Inc., Initial Term
Loan, 8.25%, 2/3/17 1,084,865
2,609,167 NR/B1 Prime Healthcare Services, Inc., Term Loan B,
7.5%, 4/28/15 2,596,121
2,133,875 B+/Ba3 Rural/Metro Operating Co., LLC, First Lien Term
Loan, 5.75%, 6/30/18 2,116,537
2,022,222 BB-/Ba1 Sun Healthcare Group, Inc., Term Loan,
8.75%, 10/18/16 1,976,722
1,342,819 B/B1 Surgery Center Holdings, Inc., Term Loan,
6.5%, 2/6/17 1,282,392
744,375 B/Ba3 Valitas Health Services, Inc., Term Loan B,
5.75%, 6/2/17 733,209
2,221,875 B+/B1 Virtual Radiologic Corp., Term Loan A,
7.75%, 12/22/16 1,988,578
-------------
$ 22,624,029
----------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.7%
722,725 BB-/Ba3 Alere, Inc., Term Loan B, 4.75%, 6/30/17 $ 713,089
1,505,000 B+/B1 Bausch & Lomb, Inc., Parent Term Loan,
5.25%, 5/17/19 1,485,012
-------------
$ 2,198,101
----------------------------------------------------------------------------------------------------
Health Care Technology -- 1.7%
2,140,000 BB-/Ba3 Emdeon Inc., Term Loan B-1, 5.0%, 11/2/18 $ 2,142,675
1,363,140 BB-/Ba3 MedAssets, Inc., Term Loan, 5.25%, 11/16/16 1,366,548
1,125,000 B/B2 Medical Card System, Inc., Term Loan, 12.0%, 9/17/15 928,125
99,490 B/NR Physician Oncology Services LP, Delayed Draw
Term Loan, 6.25%, 1/31/17 97,997
818,923 B/B2 Physician Oncology Services LP, Effective Date
Term Loan, 6.25%, 1/31/17 806,639
-------------
$ 5,341,984
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 21
Schedule of Investments | 5/31/12 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Managed Health Care -- 0.9%
1,327,500 B+/B1 Aveta, Inc., MMM Facility Term Loan,
8.5%, 4/4/17 $ 1,329,159
1,327,500 B+/B1 Aveta, Inc., NAMM Facility Term Loan,
8.5%, 4/4/17 1,328,164
-------------
$ 2,657,323
-------------
Total Health Care Equipment & Services $ 51,204,296
----------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 1.9%
Household Products -- 1.0%
2,147,482 B/B1 Spectrum Brands, Inc., New Term Loan,
6.25%, 6/17/16 $ 2,151,776
936,343 B+/Ba3 SRAM LLC, First Lien Term Loan, 5.75%, 6/7/18 935,758
-------------
$ 3,087,534
----------------------------------------------------------------------------------------------------
Personal Products -- 0.9%
344,571 BB-/Ba3 NBTY, Inc., Term Loan B-1, 4.25%, 10/2/17 $ 342,160
2,456,438 BB-/Ba3 Revlon Consumer Products Corp., Term Loan B,
4.75%, 11/19/17 2,450,296
-------------
$ 2,792,456
-------------
Total Household & Personal Products $ 5,879,990
----------------------------------------------------------------------------------------------------
INSURANCE -- 2.0%
Insurance Brokers -- 2.0%
1,000,000 CCC+/B3 AmWINS Group, Inc., 8.0%, 11/15/19 $ 990,000
230,528 B/B1 AmWINS Group, Inc., Initial Term Loan,
4.49%, 6/8/13 229,663
828,750 B+/B1 HUB International, Ltd., 2017 Additional Term
Loan, 6.75%, 12/13/17 836,001
3,895,938 B+/B1 HUB International, Ltd., 2017 Initial Term Loan,
4.97%, 6/13/17 3,893,016
487,500 B/B1 U.S.I. Holdings Corp., New Term Loan Series C,
7.0%, 5/5/14 485,672
-------------
$ 6,434,352
-------------
Total Insurance $ 6,434,352
----------------------------------------------------------------------------------------------------
MATERIALS -- 10.1%
Aluminum -- 1.1%
1,385,000 BB-/Ba2 Noranda Aluminum Acquisition Corp., Term Loan
B, 5.75%, 2/28/19 $ 1,389,328
2,221,875 BB-/Ba2 Novelis, Inc., Term Loan, 4.0%, 3/10/17 2,190,631
-------------
$ 3,579,959
----------------------------------------------------------------------------------------------------
Commodity Chemicals -- 1.4%
2,719,347 B/B2 CPG International I Inc., Term Loan, 6.0%,
2/18/17 $ 2,637,766
The accompanying notes are an integral part of these financial statements.
22 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Commodity Chemicals -- (continued)
1,200,000 BB-/B1 Taminco Global Chemical Corp., Tranche B-1
Dollar Term Loan, 5.25%, 2/15/19 $ 1,198,500
628,571 NR/Ba2 Tronox Pigments (Netherlands) B.V., Closing Date
Term Loan, 4.25%, 2/8/18 624,643
-------------
$ 4,460,909
----------------------------------------------------------------------------------------------------
Diversified Chemicals -- 1.8%
517,414 BBB-/Ba1 Celanese US Holdings LLC, Dollar Term Loan C,
3.218%, 10/31/16 $ 515,926
1,247,956 B/B1 General Chemical Corp., New Tranche B Term
Loan, 5.75%, 10/6/15 1,240,156
1,250,000 B+/B1 Ineos US Finance LLC, Cash Dollar Term Loan,
5.25%, 5/4/18 1,228,750
1,175,735 BB+/Ba1 Solutia, Inc., Term Loan 1, 3.5%, 8/1/17 1,174,634
1,451,625 B+/B2 Univar, Inc., Term Loan B, 5.0%, 6/30/17 1,415,940
-------------
$ 5,575,406
----------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.4%
2,493,750 B+/B2 Preferred Proppants LLC, Initial Term Loan B,
7.5%, 12/15/16 $ 2,437,641
397,000 BB+/Ba1 SunCoke Energy, Inc., Tranche B Term Loan,
4.0%, 7/26/18 394,023
1,042,125 B+/B1 U.S. Silica Co., Term Loan, 4.75%, 6/8/17 1,036,914
604,923 BB-/B1 Walter Energy, Inc., Term Loan B, 4.0%, 4/2/18 584,948
-------------
$ 4,453,526
----------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 0.1%
204,668 B/Ba3 BWAY Holding Co., Replacement Term Loan B,
4.5%, 2/23/18 $ 202,536
19,404 B/Ba3 ICL Industrial Containers ULC, Replacement Term
Loan C, 4.5%, 2/23/18 19,202
-------------
$ 221,738
----------------------------------------------------------------------------------------------------
Paper Packaging -- 0.4%
1,159,350 BB+/Ba1 Sealed Air Corp., Advance Term Loan B,
4.75%, 10/3/18 $ 1,166,596
----------------------------------------------------------------------------------------------------
Paper Products -- 0.8%
2,228,163 B/B2 Exopack LLC/Cello Foil Products, Inc., Term Loan
B, 6.5%, 5/31/17 $ 2,205,881
226,618 BB-/Ba3 Ranpak Corp., First Lien USD Term Loan,
4.75%, 4/20/17 227,184
-------------
$ 2,433,065
----------------------------------------------------------------------------------------------------
Precious Metals & Minerals -- 0.6%
2,081,250 BB-/B1 Fairmount Minerals, Ltd., Tranche B Term Loan,
5.25%, 3/15/17 $ 2,055,234
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 23
Schedule of Investments | 5/31/12 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Specialty Chemicals -- 2.3%
4,000,000 BB+/Ba1 Chemtura Corp., Facility Term Loan,
5.5%, 8/29/16 $ 4,010,000
1,840,750 BB-/Ba2 Harko C.V. (OM Group, Inc.), Dollar Term Loan B,
5.75%, 8/2/17 1,844,584
154,718 BB+/Ba1 Huntsman International LLC, Extended Term B
Loan, 2.846%, 4/19/17 152,954
149,624 NR/B1 Norit Holding B.V., USD Term Loan,
6.75%, 7/10/17 149,437
1,022,437 BB-/Ba1 PolyOne Corp., Term Loan B, 5.0%, 12/20/17 1,026,272
------------
$ 7,183,247
----------------------------------------------------------------------------------------------------
Steel -- 0.2%
498,742 BB/B1 JMC Steel Group, Inc., Term Loan,
4.75%, 4/1/17 $ 498,742
------------
Total Materials $ 31,628,422
----------------------------------------------------------------------------------------------------
MEDIA -- 19.8%
Advertising -- 1.8%
1,481,250 B+/NR Advantage Sales & Marketing, Inc., First Lien
Term Loan, 5.25%, 12/18/17 $ 1,471,066
3,430,073 B+/Ba3 Affinion Group, Inc., Tranche B Term Loan,
5.0%, 10/9/16 3,209,976
1,106,007 BB+/Baa3 Lamar Media Corp., Term Loan B, 4.0%, 12/30/16 1,107,851
------------
$ 5,788,893
----------------------------------------------------------------------------------------------------
Broadcasting -- 7.8%
7,500,000 BB-/Ba2 Cequel Communications LLC, Term Loan,
4.0%, 2/14/19 $ 7,331,280
489,726 BB-/Ba3 Entercom Radio LLC, Term Loan B,
5.0%, 11/23/18 490,950
1,168,336 BB/Caa2 FoxCo Acquisition Sub LLC, Replacement Term
Loan, 4.75%, 7/14/15 1,168,824
232,174 B+/Ba3 Hubbard Radio LLC, First Lien Term Loan,
5.25%, 4/28/17 231,155
948,543 BB+/Ba1 Sinclair Television Group, Inc., New Tranche B
Term Loan, 4.0%, 10/28/16 945,776
3,755,000 BB-/Ba3 Telesat Canada, U.S. Term Loan B,
4.25%, 3/28/19 3,723,710
1,762,544 BB-/Ba3 TWCC Holding Corp., 2011 Term Loan,
4.25%, 2/13/17 1,754,283
9,716,995 B+/B2 Univision Communications, Inc., Extended First
Lien Term Loan, 4.489%, 3/31/17 8,937,838
------------
$ 24,583,816
----------------------------------------------------------------------------------------------------
Cable & Satellite -- 7.8%
19,591,675(b)(g)(k) NR/B3 Broadstripe LLC, First Lien Term Loan,
11.25%, 6/30/11 $ 7,797,487
The accompanying notes are an integral part of these financial statements.
24 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Cable & Satellite -- (continued)
1,428,203(b)(g)(k) CCC+/B3 Broadstripe LLC, Revolver Term Loan,
9.25%, 6/30/11 $ 568,425
3,331,967 BB+/Ba1 Charter Communications Operating LLC, Term
Loan C, 3.72%, 9/6/16 3,295,672
985,000 BB+/Ba1 Charter Communications Operating LLC, Term
Loan D, 4.0%, 5/15/19 973,672
1,200,000 NR/NR Kabel Deutschland Gmbh, Facility Term Loan F,
4.25%, 2/1/19 1,197,094
3,914,871 B+/B1 Knology, Inc., Term Loan B, 4%, 8/18/17 3,910,466
1,965,000 BB-/Ba3 MCC Iowa LLC, Tranche F Term Loan,
4.5%, 10/23/17 1,956,403
4,752,562 B-/B1 WideOpenWest Finance LLC, First Lien Term Loan,
4.75%, 6/30/14 4,716,918
-------------
$ 24,416,137
----------------------------------------------------------------------------------------------------
Movies & Entertainment -- 1.2%
1,421,438 BB-/Ba2 AMC Entertainment, Inc., Term Loan B-3,
4.25%, 2/22/18 $ 1,417,884
1,329,839 NR/Ba1 Cinedigm Digital Funding I LLC, Term Loan,
5.25%, 4/29/16 1,327,346
1,156,679 B-/B3 Lodgenet Interactive Corp., Closing Date Term
Loan, 6.5%, 4/4/14 1,001,490
-------------
$ 3,746,720
----------------------------------------------------------------------------------------------------
Publishing -- 1.2%
979,487 B/B2 Cengage Learning Acquisitions, Inc., Term Loan,
2.25%, 7/3/14 $ 892,383
500,000 BB-/Ba3 EMI Group North America Holdings, Inc., Term
Loan B, 4.25%, 2/15/18 498,125
1,637,764 B+/Ba3 Interactive Data Corp., Term Loan B,
4.5%, 2/11/18 1,619,339
EURO 895,659(f) B/Ba3 Mediannuaire Holding, Term Loan B-2,
3.144%, 10/10/14 304,619
EURO 894,987(f) B/Ba3 Mediannuaire Holding, Term Loan C,
3.644%, 10/9/15 309,925
-------------
$ 3,624,391
-------------
Total Media $ 62,159,957
----------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 5.4%
Biotechnology -- 3.7%
2,154,600 BB/B1 Alkermes, Inc., First Lien Term Loan,
6.75%, 9/16/17 $ 2,162,680
3,046,438 BB/B2 Aptalis Pharma, Inc., Term Loan B-1,
5.5%, 2/10/17 2,958,852
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 25
Schedule of Investments | 5/31/12 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Biotechnology -- (continued)
232,864 BBB-/Baa2 Fresenius SE, Tranche D-1 Dollar Term Loan,
3.25%, 9/10/14 $ 233,152
1,124,855 B+/B1 Generic Drug Holdings, Inc., Closing Date Term
Loan, 6.75%, 4/8/16 1,119,231
154,666 B+/B1 Generic Drug Holdings, Inc., Delayed Draw Term
Loan, 6.75%, 4/8/16 153,893
1,539,746 BB-/Ba3 Grifols, Inc., New U.S. Tranche B Term Loan,
4.5%, 6/1/17 1,523,868
1,527,268 BB-/B1 HGI Holdings, Inc., Initial Term Loan,
6.75%, 10/1/16 1,533,632
424,286 BBB-/Ba3 Warner Chilcott Co., LLC, Term Loan B-2,
4.25%, 3/15/18 422,005
848,571 BBB-/Ba3 Warner Chilcott Corp., Term Loan B-1,
4.25%, 3/15/18 844,010
583,393 BBB-/Ba3 WC Luxco S.a.r.l., Term Loan B-3,
4.25%, 3/15/18 580,257
-------------
$ 11,531,580
----------------------------------------------------------------------------------------------------
Pharmaceuticals -- 1.7%
2,492,765(f) CCC+/NR Graceway Pharmaceuticals LLC, Mezzanine Loan,
0.0%, 11/1/13 $ 7,012
3,797,098 B+/B1 Key Safety Systems, Inc., First Lien Term Loan,
2.596%, 3/8/14 3,648,377
1,141,375 B+/B2 Medpace Intermediateco, Inc., Term Loan B,
7.25%, 6/19/17 1,101,427
750,000 BBB-/Ba1 Valeant Pharmaceuticals International, Inc.,
Tranche B Term Loan, 3.75%, 2/13/19 737,344
-------------
$ 5,494,160
-------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 17,025,740
----------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.4%
Diversified Real Estate Investment Trust -- 0.3%
1,000,000 CCC+/Ca Spirit Finance Corp., Term Loan B,
3.782%, 8/1/13 $ 980,000
----------------------------------------------------------------------------------------------------
Real Estate Development -- 0.2%
522,545 B-/B1 Ozburn-Hessey Holding Co., LLC, First Lien Term
Loan, 8.5%, 4/8/16 $ 467,678
----------------------------------------------------------------------------------------------------
Real Estate Services -- 0.6%
992,500 BB/Ba1 CB Richard Ellis Services, Inc., Incremental
Tranche C Term Loan, 3.489%, 3/4/18 $ 977,613
992,500 BB/Ba1 CB Richard Ellis Services, Inc., Incremental
Tranche D Term Loan, 3.739%, 9/4/19 977,612
-------------
$ 1,955,225
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Specialized REIT's -- 0.3%
1,000,000 B-/Caa1 Hargray Acquisition Co., Second Lien Term Loan,
5.966%, 1/29/15 $ 925,000
-------------
Total Real Estate $ 4,327,903
----------------------------------------------------------------------------------------------------
RETAILING --5.6%
Apparel Retail --1.5%
2,421,043 B/B2 Gymboree Corp., Term Loan, 5%, 2/23/18 $ 2,256,412
629,171(f) NR/NR Johnny Appleseed's, Inc., First Lien Second Out
Term Loan, 0.24%, 4/25/16 408,961
139,719(f) NR/NR Johnny Appleseed's, Inc., Junior Term Loan,
0.24%, 4/25/17 55,888
1,870,313 BB/Ba3 Lord & Taylor Holdings LLC, Term Loan,
5.75%, 1/11/19 1,883,560
-------------
$ 4,604,821
----------------------------------------------------------------------------------------------------
Automotive Retail -- 0.1%
396,000 BB+/Ba3 Autotrader.com, Inc., Tranche B-1 Term Loan,
4.0%, 12/15/16 $ 395,505
----------------------------------------------------------------------------------------------------
Computer & Electronics Retail -- 0.6%
1,900,637 B/B2 Targus Group International, Inc., Term Loan,
11.0%, 5/24/16 $ 1,895,886
----------------------------------------------------------------------------------------------------
General Merchandise Stores -- 2.2%
2,841,135 BBB/Ba1 Dollar General Corp., Tranche B-1 Term Loan,
3.535%, 7/7/14 $ 2,844,042
4,268,478 BBB-/Ba2 Dollar General Corp., Tranche B-2 Term Loan,
2.989%, 7/7/14 4,273,814
-------------
$ 7,117,856
----------------------------------------------------------------------------------------------------
Home Improvement Retail -- 0.6%
1,889,889 B+/Ba3 Hillman Group, Inc., Term Loan, 5.0%, 5/31/16 $ 1,885,164
----------------------------------------------------------------------------------------------------
Specialty Stores -- 0.6%
1,850,267 B+/Ba3 Savers, Inc., New Term Loan, 4.25%, 3/4/17 $ 1,847,954
----------------------------------------------------------------------------------------------------
Total Retailing $ 17,747,186
----------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.3%
Semiconductor Equipment -- 1.1%
2,066,612 BB-/B1 Aeroflex, Inc., Tranche B Term Loan, 5.75%,
5/19/18 $ 2,013,225
1,488,750 BB+/Ba2 Sensata Technology BV/Sensata Technology
Finance Co., LLC, Term Loan, 4.0%, 5/12/18 1,474,129
-------------
$ 3,487,354
----------------------------------------------------------------------------------------------------
Semiconductors -- 1.2%
35,452 BB+/Ba2 Flextronics International, Ltd., Delayed Draw Term
Loan A-1-B, 2.489%, 10/1/14 $ 34,953
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 27
Schedule of Investments | 5/31/12 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Semiconductors -- (continued)
1,128,093 BB+/Ba2 Flextronics International, Ltd., Delayed Draw Term
Loan A-3, 2.489%, 10/1/14 $ 1,112,229
2,323,411 BB/Ba2 Microsemi Corp., Term Loan B, 4.0%, 2/2/18 2,300,178
315,000 BBB-/Ba2 Semtech Corp., Term Loan B, 4.25%, 3/20/17 315,000
-------------
$ 3,762,360
-------------
Total Semiconductors &
Semiconductor Equipment $ 7,249,714
----------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 9.1%
Application Software -- 6.1%
1,663,358 BB-/Ba2 Allen Systems Group, Inc., Term Loan B, 7.5%,
11/21/15 $ 1,605,141
1,428,750 B+/B1 Applied Systems, Inc., First Lien Term Loan, 5.5%,
12/8/16 1,426,368
1,300,000 B+/B1 Applied Systems, Inc., Second Lien Term Loan,
9.25%, 6/8/17 1,300,000
3,500,000 B/Ba3 Expert Global Solutions, Inc., Advance First Lien
Term Loan B, 9.0%, 4/3/18 3,447,500
1,000,000 B+/Ba3 Lawson Software, Inc., Tranche B Term Loan,
6.25%, 4/5/18 1,001,094
1,371,150 BB-/Ba2 NDS Finance, Ltd., Tranche B Term Loan, 3.75%,
3/12/18 1,367,722
1,565,488 BB+/Baa3 Nuance Communications, Inc., Term Loan C,
3.24%, 3/31/16 1,566,467
1,509,527 B+/B1 Serena Software, Inc., Extended 2016 Term Loan,
4.475%, 3/10/16 1,479,336
2,478,741 B+/B1 Verint Systems, Inc., 2011 Term Loan, 4.5%,
10/27/17 2,464,282
1,927,114 B+/B1 Vertafore, Inc., First Lien Term Loan, 5.25%,
7/29/16 1,913,865
1,000,000 CCC+/Caa1 Vertafore, Inc., Second Lien Term Loan, 9.75%,
10/29/17 994,375
475,000 B/Ba3 Wall Street Systems Holdings, Inc., First Lien Term
Loan, 5.5%, 6/20/17 475,000
-------------
$ 19,041,150
----------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 1.0%
34,286 BBB/Ba1 Fidelity National Information Services, Inc., Term
Loan B, 4.25%, 7/18/16 $ 34,329
60,879 B+/NR First Data Corp., 2017 Dollar Term Loan, 5.239%,
3/24/17 57,835
802,493 B+/B1 First Data Corp., 2018 Dollar Term Loan, 4.239%,
3/23/18 731,188
The accompanying notes are an integral part of these financial statements.
28 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- (continued)
1,592,000 BB+/Ba2 Neustar, Inc., Advance Term Loan, 5.0%, 11/8/18 $ 1,592,000
571,429 NR/Ba2 Vantiv LLC, Tranche B Term Loan, 3.75%, 3/27/19 570,714
-------------
$ 2,986,066
----------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.9%
2,944,049 BB/NR SunGuard Data Systems, Inc., Tranche C Term
Loan, 3.989%, 2/28/17 $ 2,920,129
----------------------------------------------------------------------------------------------------
Systems Software -- 1.1%
1,379,571 BBB-/Ba2 Dealer Computer Services, Inc., Tranche B Term
Loan, 3.75%, 4/21/18 $ 1,372,673
2,225,000 NR/Ba2 Rovi Solutions Corp., Tranche B-2 Term Loan,
4.0%, 3/29/19 2,211,094
-------------
$ 3,583,767
-------------
Total Software & Services $ 28,531,112
----------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 3.2%
Communications Equipment -- 0.8%
987,506 NR/Ba3 CommScope, Inc., Term Loan, 4.25%, 1/14/18 $ 982,964
1,470,150 NR/NR TowerCo Finance LLC, Term Loan, 4.5%, 2/2/17 1,471,987
-------------
$ 2,454,951
----------------------------------------------------------------------------------------------------
Electronic Components -- 1.0%
1,500,000 NR/B2 Generac Power Systems, Inc., Term Loan,
5.0%, 5/30/18 $ 1,487,813
1,617,888 B/B2 Scitor Corp., Term Loan, 5%, 2/15/17 1,591,597
-------------
$ 3,079,410
----------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.3%
1,000,000 B+/Ba3 Sensus USA, Inc., Term Loan, 4.75%, 5/9/17 $ 997,917
----------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.3%
589,839 NR/B2 FCI USA, Inc., Facility Term Loan B-1,
3.614%, 11/1/13 $ 578,780
589,839 NR/B2 FCI USA, Inc., Facility Term Loan B-5-B,
3.614%, 11/1/13 580,994
-------------
$ 1,159,774
----------------------------------------------------------------------------------------------------
Technology Distributors -- 0.8%
1,305,125 BB-/B1 Excelitas Technologies Corp., New Term Loan B,
4.75%, 11/29/16 $ 1,292,074
1,202,598 B/B2 Securus Technologies Holdings, Inc., First Lien
Term Loan, 5.25%, 5/31/17 1,198,088
-------------
$ 2,490,162
----------------------------------------------------------------------------------------------------
Total Technology Hardware & Equipment $ 10,182,214
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 29
Schedule of Investments | 5/31/12 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 5.0%
Alternative Carriers -- 1.3%
EURO 745,314 BB/NR Amsterdamse Beheere-En
Consultingmaatschappij B.V., Casema Facility
Term Loan B-3, 3.386%, 3/31/17 $ 921,288
EURO 257,598 BB/NR Amsterdamse Beheere-En
Consultingmaatschappij B.V., Casema Facility
Term Loan B-4, 3.386%, 3/31/17 318,419
EURO 849,351 BB/NR Amsterdamse Beheere-En
Consultingmaatschappij B.V., Kabelcom Facility
Term Loan B-2, 3.386%, 3/31/17 1,049,888
2,000,000 B+/Ba3 Level 3 Financing, Inc., Tranche A Term Loan,
2.719%, 3/13/14 1,958,750
-------------
$ 4,248,345
----------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- 0.7%
264,308 BB-/Ba3 West Corp., Term Loan B-2, 2.859%, 10/24/13 $ 263,581
641,143 BB-/Ba3 West Corp., Term Loan B-5, 4.489%, 7/15/16 641,444
1,151,318 BB+/Baa3 Windstream Corp., Tranche B-2 Term Loan,
3.1%, 12/17/15 1,150,290
-------------
$ 2,055,315
----------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 3.0%
1,471,313 B+/Ba3 Crown Castle Operating Co., Tranche B Term
Loan, 4.0%, 1/31/19 $ 1,454,944
5,550,650 BB/Ba1 MetroPCS Wireless, Inc., Tranche B-2 Term Loan,
4.071%, 11/3/16 5,449,350
692,994 BB/Ba1 MetroPCS Wireless, Inc., Tranche B-3 Term Loan,
4.0%, 3/19/18 679,658
1,975,000 BB-/B1 Syniverse Holdings, Inc., Initial Term Loan,
5.0%, 4/23/19 1,966,978
-------------
$ 9,550,930
-------------
Total Telecommunication Services $ 15,854,590
----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 4.0%
Air Freight & Logistics -- 0.4%
300,000 B/B1 Ceva Group Plc, Dollar Tranche B Pre Funded L/C
Term Loan, 5.1%, 8/31/16 $ 284,500
1,200,000 B/B1 Ceva Group Plc, EGL Tranche B Term Loan,
5.466%, 8/31/16 1,137,750
-------------
$ 1,422,250
----------------------------------------------------------------------------------------------------
Airlines -- 2.0%
841,500 BB-/Ba3 Allegiant Travel Co., Term Loan, 5.75%, 3/10/17 $ 833,085
544,500 BB-/Ba2 Delta Air Lines, Inc., 2009 Term Loan, 4.25%,
3/7/16 528,165
The accompanying notes are an integral part of these financial statements.
30 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Airlines -- (continued)
1,339,875 BB-/Ba2 Delta Air Lines, Inc., 2011 Term Loan,
5.5%, 4/20/17 $ 1,339,037
248,154 BB-/Ba3 United Air Lines, Inc., Tranche B Term Loan,
2.25%, 2/1/14 241,020
3,500,000 B+/B3 US Airways Group, Inc., Term Loan, 2.74%,
3/21/14 3,332,000
-------------
$ 6,273,307
----------------------------------------------------------------------------------------------------
Railroads -- 0.8%
2,500,000 BB+/B1 RailAmerica, Inc., Initial Term Loan, 4.0%, 3/1/19 $ 2,500,000
----------------------------------------------------------------------------------------------------
Trucking -- 0.8%
519,854 BB/Ba1 Avis Budget Car Rental LLC, Tranche B Term Loan,
6.25%, 9/22/18 $ 521,803
1,929,036 BB/B1 Swift Transportation Co., LLC, Tranche B-2 Term
Loan, 5.0%, 12/21/17 1,924,213
-------------
$ 2,446,016
-------------
Total Transportation $ 12,641,573
----------------------------------------------------------------------------------------------------
UTILITIES -- 2.6%
Electric Utilities --1.3%
843,199 BB-/Ba3 Equipower Resources Holdings LLC, Facility Term
Loan B, 5.75%, 1/26/18 $ 834,767
792,952(b)(c)(k) CC/Ca GBGH LLC (US Energy), First Lien Term Loan,
4.0%, 6/9/13 71,603
337,141(b)(c)(k) CC/Ca GBGH LLC (US Energy), Second Lien Term Loan,
2.0%, 6/9/14 34
5,506,137 CCC/B2 Texas Competitive Electric Holdings Co., LLC,
2017 Term Loan, 4.739%, 10/10/17 3,223,155
-------------
$ 4,129,559
-------------
Independent Power Producers &
Energy Traders -- 1.3%
1,618,650 BB+/Ba1 AES Corp., Initial Term Loan, 4.25%, 6/1/18 $ 1,606,518
1,707,750 BB-/B1 Calpine Corp., Term Loan, 4.5%, 4/1/18 1,684,060
853,550 BB+/Baa3 NRG Energy, Inc., Term Loan, 4.0%, 7/1/18 847,085
-------------
$ 4,137,663
-------------
Total Utilities $ 8,267,222
----------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE
LOAN INTERESTS
(Cost $465,714,226) $ 436,978,721
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 31
Schedule of Investments | 5/31/12 (unaudited) (continued)
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
CLAIMS -- 0.0% of Net Assets
TRANSPORTATION -- 0.0%
1,200,000(h)(k) B+/B1 Northwest Airlines, Inc., ALPA Claim-Escrow, 0.0% $ --
2,500,000(h)(k) B+/B1 Northwest Airlines, Inc., Bell Atlantic Claim-
Escrow, 0.0% --
2,500,000(h)(k) B+/B1 Northwest Airlines, Inc., EDC Claim-Escrow, 0.0% --
2,130,600(h)(k) B+/B1 Northwest Airlines, Inc., Flight Attendant Claim-
Escrow, 0.0% --
1,500,000(h)(k) B+/B1 Northwest Airlines, Inc., GE Claim-Escrow, 0.0% --
1,264,500(h)(k) B+/B1 Northwest Airlines, Inc., IAM Claim-Escrow, 0.0% --
1,404,900(h)(k) CCC+/B1 Northwest Airlines, Inc., Retiree Claim-Escrow, 0.0% --
--------------
$ --
--------------
Total Transportation $ --
--------------
TOTAL CLAIMS
(Cost $0) $ --
------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES -- 10.4% of
Net Assets
BANKS -- 0.3%
Diversified Banks -- 0.3%
1,000,000(d) BBB+/A3 Intesa Sanpaolo S.p.A., 2.867%, 2/24/14
(144A) $ 936,083
--------------
Total Banks $ 936,083
------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 1.0%
Aerospace & Defense -- 0.6%
1,850,000 BB-/Ba3 Spirit Aerosystems, Inc., 7.5%, 10/1/17 $ 1,979,500
------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.4%
1,000,000 B+/B3 Manitowoc Co., Inc., 9.5%, 2/15/18 $ 1,092,500
--------------
Total Capital Goods $ 3,072,000
------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.4%
Housewares & Specialties -- 0.4%
1,000,000 BB-/Ba3 Jarden Corp., 8.0%, 5/1/16 $ 1,082,500
--------------
Total Consumer Durables & Apparel $ 1,082,500
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.5%
Consumer Finance -- 0.1%
200,000 BBB/Baa1 Capital One Financial Corp., 7.375%, 5/23/14 $ 220,073
------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.4%
250,000(d) BB/NR East Lane Re V, Ltd., 9.056%, 3/16/16 (144A) $ 251,500
500,000(d) BB/NR Lodestone Re, Ltd., 6.056%, 1/8/14 (144A) 484,350
500,000(d) BB-/NR Lodestone Re, Ltd., 8.306%, 5/17/13 (144A) 493,800
--------------
$ 1,229,650
--------------
Total Diversified Financials $ 1,449,723
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
ENERGY -- 1.1%
Oil & Gas Drilling -- 0.2%
600,000 B-/B3 Offshore Group Investments, Ltd., 11.5%, 8/1/15 $ 639,000
----------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.9%
2,490,000 BB/B1 Denbury Resources, Inc., 8.25%, 2/15/20 $ 2,689,200
-------------
Total Energy $ 3,328,200
----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 2.4%
Health Care Equipment & Services -- 0.3%
950,000 B+/B2 Physio-Control International, Inc., 9.875%,
1/15/19 (144A) $ 1,007,000
----------------------------------------------------------------------------------------------------
Health Care Supplies -- 2.1%
9,202,337(b) NR/NR Azithromycin Royalty Sub LLC, 16.0%, 5/15/19 $ 6,441,636
-------------
Total Health Care Equipment & Services $ 7,448,636
----------------------------------------------------------------------------------------------------
INSURANCE -- 0.2%
Reinsurance -- 0.2%
500,000(d) NR/Baa1 Combine Re, Ltd., 4.556%, 1/7/15 (144A) $ 502,550
250,000(d) BB/NR Mystic Re, Ltd., 9.056%, 3/12/15 (144A) 248,100
-------------
$ 750,650
-------------
Total Insurance $ 750,650
----------------------------------------------------------------------------------------------------
MATERIALS -- 1.2%
Diversified Metals & Mining -- 0.3%
1,050,000 NR/B2 Molycorp, Inc., 10%, 6/1/20 (144A) $ 1,047,375
----------------------------------------------------------------------------------------------------
Paper Packaging -- 0.3%
1,000,000(d) B/B1 Berry Plastics Corp., 5.217%, 2/15/15 $ 995,000
----------------------------------------------------------------------------------------------------
Paper Products -- 0.6%
1,750,000 B+ /B1 Appleton Papers, Inc., 10.5%, 6/15/15 (144A) $ 1,863,750
-------------
Total Materials $ 3,906,125
----------------------------------------------------------------------------------------------------
MEDIA -- 0.3%
Advertising -- 0.3%
936,000 B+/B2 MDC Partners, Inc., 11.0%, 11/1/16 $ 1,010,880
-------------
Total Media $ 1,010,880
----------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 1.8%
Pharmaceuticals -- 1.8%
15,920,079(b)(c) NR/NR Celtic Pharma Phinco B.V., 17.0%, 6/15/12 $ 5,742,054
-------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 5,742,054
----------------------------------------------------------------------------------------------------
RETAILING -- 0.6%
Catalog Retail --0.6%
1,825,000 BBB-/Ba2 QVC, Inc., 7.5%, 10/1/19 (144A) $ 1,984,687
-------------
Total Retailing $ 1,984,687
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 33
Schedule of Investments | 5/31/12 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.1%
Integrated Telecommunication Services -- 0.1%
300,000 BB/Ba2 Frontier Communications Corp., 8.25%, 5/1/14 $ 328,500
-------------
Total Telecommunication Services $ 328,500
----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.5%
Air Freight & Logistics -- 0.3%
1,000,000 B-/Caa1 CEVA Group Plc, 11.5%, 4/1/18 (144A) $ 960,000
----------------------------------------------------------------------------------------------------
Airlines -- 0.2%
582,287 BBB-/Baa3 American Airlines 2011-2 Class A Pass Through
Trust, 8.625%, 10/15/21 $ 611,401
-------------
Total Transportation $ 1,571,401
----------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES
(Cost $44,393,487) $ 32,611,439
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
Shares
----------------------------------------------------------------------------------------------------
COMMON STOCKS -- 6.2% of Net Assets
AUTOMOBILES & COMPONENTS -- 4.7%
Auto Parts & Equipment -- 4.7%
512,208(i) Delphi Automotive Plc $ 14,869,398
-------------
Total Automobiles & Components $ 14,869,398
----------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.2%
Leisure Facilities -- 0.2%
1,306(i)(k) Lake at Las Vegas A Shares $ 688,700
9(i)(k) Lake at Las Vegas B Shares 4,766
-------------
$ 693,466
-------------
Total Consumer Services $ 693,466
----------------------------------------------------------------------------------------------------
ENERGY -- 0.0%(a)
Oil & Gas Drilling -- 0.0%(a)
138(b)(i)(k) TARH E&P Holdings GP LLC, Class A
Membership Interest $ 1
130,056(b)(i)(k) TARH E&P Holdings L.P., Class A
Partnership Interest 1,301
-------------
$ 1,302
-------------
Total Energy $ 1,302
----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.1%
Health Care Services -- 0.1%
15,034(i) CCS Medical, Inc. $ 120,272
-------------
Total Health Care Equipment & Services $ 120,272
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
----------------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------------
MATERIALS -- 0.2%
Commodity Chemicals -- 0.2%
17,750(i) Georgia Gulf Corp. $ 528,240
-------------
Total Materials $ 528,240
----------------------------------------------------------------------------------------------------
MEDIA -- 1.0%
Broadcasting -- 0.3%
266(i) New Young Broadcasting Holding Co. $ 801,325
----------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.7%
90,010(i) Metro Goldwyn Mayer, Inc. $ 2,353,761
-------------
Total Media $ 3,155,086
----------------------------------------------------------------------------------------------------
RETAILING -- 0.0%(a)
Apparel Retail -- 0.0%(a)
569(i) Johnny Appleseed's, Inc. $ 1,423
-------------
Total Retailing $ 1,423
----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.0%(a)
Alternative Carriers -- 0.0%(a)
57,813(i) Clearwire Corp. $ 69,954
-------------
Total Telecommunication Services $ 69,954
----------------------------------------------------------------------------------------------------
UTILITIES -- 0.0%(a)
Electric Utilities -- 0.0%(a)
1,589(b)(i)(k) GBGH LLC Membership Interest $ 16
----------------------------------------------------------------------------------------------------
Independent Power Producers -- 0.0%(a)
6,378(i) GenOn Energy, Inc. $ 10,970
-------------
Total Utilities $ 10,986
----------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $15,238,390) $ 19,450,127
----------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 0.6% of Net Assets
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.6%
Biotechnology -- 0.6%
153,554(b)(i) Molecular Insight Pharmaceuticals, Inc., $ 1,689,094
-------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 1,689,094
----------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $1,305,209) $ 1,689,094
----------------------------------------------------------------------------------------------------
LIQUIDATING TRUSTS -- 0.0% of Net Assets
CONSUMER SERVICES -- 0.0%
Hotels, Resorts & Cruise Lines -- 0.0%
3,377,886(i)(j)(k) Yellowstone Mountain Club LLC, Liquidating Trust $ --
-------------
Total Consumer Services $ --
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 35
Schedule of Investments | 5/31/12 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------------
ENERGY -- 0.0%
Oil & Gas Exploration & Production -- 0.0%
4,995,000(i)(j)(k) Crusader Energy Group, Inc., Liquidating Trust $ --
-------------
Total Energy $ --
----------------------------------------------------------------------------------------------------
TOTAL LIQUIDATING TRUSTS
(Cost $0) $ --
----------------------------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.7% of Net Assets
CONSUMER SERVICES -- 0.0%
Leisure Facilities -- 0.0%
38(i)(k) Lake at Las Vegas C Shares, Expires 7/15/15 $ --
52(i)(k) Lake at Las Vegas D Shares, Expires 7/15/15 --
58(i)(k) Lake at Las Vegas E Shares, Expires 7/15/15 --
66(i)(k) Lake at Las Vegas F Shares, Expires 7/15/15 --
75(i)(k) Lake at Las Vegas G Shares, Expires 7/15/15 --
-------------
$ --
-------------
Total Consumer Services $ --
----------------------------------------------------------------------------------------------------
MEDIA -- 0.7%
Broadcasting -- 0.7%
721(i) New Young Broadcasting Holding Co., Expires
12/24/24 $ 2,172,013
-------------
Total Media $ 2,172,013
----------------------------------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $1,418,145) $ 2,172,013
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 3.8%
of Net Assets
REPURCHASE AGREEMENT: 3.8%
11,985,000 JP Morgan Chase Bank, 0.2%, dated 5/31/12,
repurchase price of $11,985,000 plus accrued
interest on 6/1/12 collateralized by
$12,224,989 Federal National Mortage
Association, 3%-7%, 1/1/14-6/1/42. $ 11,985,000
-------------
Total Repurchase Agreement $ 11,985,000
----------------------------------------------------------------------------------------------------
TIME DEPOSITS: 0.0%
EURO 5,426 BBH Grand Cayman, 0.04%, 6/1/12 $ 6,709
109,551 Citibank London, 0.03%, 6/1/12 109,551
-------------
Total Time Deposits $ 12,101,260
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
----------------------------------------------------------------------------------------------------
Value
----------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $12,101,260) $ 12,101,260
----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 162.5%
(Cost $546,967,728) (l) $ 511,487,167
----------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (4.5)% $ (14,343,280)
----------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (58.0)% $(182,459,738)
----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREHOLDERS -- 100.0% $ 314,684,149
====================================================================================================
NR Security not rated by S&P or Moody's.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At May
31, 2012, the value of these securities amounted to $15,477,367, or 4.9%
of total net assets applicable to common shareowners.
* Senior secured floating rate loan interests in which the Trust invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending plus a premium. These base lending rates are
generally (i) the lending rate offered by one or more major European
banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime rate
offered by one or more major United States banks, (iii) the certificate
of deposit or (iv) other base lending rates used by commercial lenders.
The interest rate shown is the rate at May 31, 2012.
(a) Amount rounds to less than 0.05%
(b) Indicates a security that has been deemed as illiquid. The aggregate cost
of illiquid securities is $60,825,150. The aggregate fair value of
$29,533,448 represents 9.4% of total net assets applicable to common
shareowners.
(c) Security is in default and is non-income producing.
(d) Floating rate note. The rate shown is the coupon rate at May 31, 2012.
(e) The company and agent bank are in the process of negotiating forbearance.
(f) Payment-in-Kind (PIK) security which may pay interest in the form of
additional principal amount.
(g) The company is scheduled for approval of a reorganization plan.
(h) Security represents a claim which is subject to bankruptcy court findings
which may result in an exchange of money, assets or equity.
(i) Non-income producing.
(j) Security represents a liquidating trust which is a vehicle which through
future settlements of bankruptcy claims are dispersed to creditors.
(k) Security is valued using fair value methods.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 37
Schedule of Investments | 5/31/12 (unaudited) (continued)
(l) At May 31, 2012, the net unrealized loss on investments based on cost for
federal tax purposes of $548,308,394 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 10,055,338
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (46,876,565)
------------
Net unrealized loss $(36,821,227)
============
For financial reporting purposes net unrealized loss on investments was
$35,480,561 and cost of investments aggregated $546,967,728.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended May 31, 2012 aggregated $115,053,565 and $97,659,903,
respectively.
Principal amounts are denominated in U.S. dollars unless otherwise noted.
EURO -- Euro
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.)
Level 3 -- significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments)
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 (including valuation appraised securities) (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.
38 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
-------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------------------
Investments in Securities -- Assets
Asset Backed Security:
Pharmaceuticals $ -- $ -- $ 90,211 $ 90,211
Collateralized Loan Obligations: -- 6,394,302 -- 6,394,302
Senior Secured Floating Rate Loan
Interests:
Oil & Gas Drilling -- -- 384,784 384,784
Diversified Commercial &
Professional Services -- 2,426,690 -- 2,426,690
Cable & Satellite -- 16,050,225 8,365,912 24,416,137
Electric Utilities -- 4,057,922 71,637 4,129,559
All Other -- 405,621,551 -- 405,621,551
Claims:
Airlines -- -- -- --
Corporate Bonds & Notes:
Health Care Supplies -- -- 6,441,636 6,441,636
Pharmaceuticals -- -- 5,742,054 5,742,054
All Other -- 20,427,750 -- 20,427,750
Common Stocks:
Broadcasting -- 801,325 -- 801,325
Oil & Gas Drilling -- -- 1,302 1,302
Leisure Facilities -- -- 693,466 693,466
Movies & Entertainment -- 2,353,761 -- 2,353,761
Apparel Retail -- 1,423 -- 1,423
Health Care Services -- 120,272 -- 120,272
Electric Utilities -- -- 16 16
All Other 15,478,562 -- -- 15,478,562
Preferred Stocks: -- 1,689,094 -- 1,689,094
Liquidating Trusts:
Oil & Gas Exploration & Production -- -- -- --
Hotels, Resorts & Cruise Lines -- -- -- --
Rights/Warrants:
Leisure Facilities -- -- -- --
All Other -- 2,172,012 -- 2,172,012
Temporary Cash Investments:
Time Deposits -- 116,260 -- 116,260
Repurchase Agreement -- 11,985,000 -- 11,985,000
-------------------------------------------------------------------------------------------------------
Total Investments in
Securities -- Assets $15,478,562 $474,217,587 $21,791,018 $511,487,167
=======================================================================================================
Other Financial Instruments* $ -- $ 6,031 $ -- $ 6,031
=======================================================================================================
* Other financial instruments include foreign exchange contracts and
unrealized depreciation on unfunded loan commitments.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 39
Schedule of Investments | 5/31/12 (unaudited) (continued)
------------------------------------------------------------------------------------------
Change in
Balance Unrealized
as of Realized appreciation
11/30/11 gain (loss)(1) (depreciation)(2) Purchases
--------------------------------------------------------------------------------------------
Investments in Securities -- Assets
Asset Backed
Security:
Pharmaceuticals,
Biotechnology
& Life Sciences $ -- $ -- $ -- $ --
Collateralized Loan
Obligations: 6,031,312 -- -- --
Senior Secured
Floating Rate
Loan Interests:
Oil & Gas
Drilling 464,340 -- 453 28,737
Cable
& Satellite 9,143,647 -- (783,032) --
Electric
Utilities 83,697 -- (76,366) --
Corporate Bonds &
Notes:
Pharmaceuticals,
Biotechnology
& Life Sciences 15,673,871 (110,896) (3,246,000) 1,247,195
Health Care
Supplies -- -- -- --
Common Stocks:
Oil & Gas
Drilling 1,302 -- -- --
Leisure
Facilities 762,990 -- (69,524) --
Electric
Utilities 16 -- -- --
--------------------------------------------------------------------------------------------
Total Investment in
Securities -- Assets $32,161,175 $(110,896) $(4,174,469) $ 1,275,932
============================================================================================
---------------------------------------------------------------------------------------------------------------
Accrued Transfers Transfers Balance
discounts/ in to out of as of
Sales premiums Level 3* Level 3* 5/31/12
---------------------------------------------------------------------------------------------------------------
Investments in
Securities -- Assets
Asset Backed
Security:
Pharmaceuticals,
Biotechnology
& Life Sciences $ -- $ -- $ 90,211 $ -- $ 90,211
Collateralized Loan
Obligations: -- -- -- (6,031,312) --
Senior Secured
Floating Rate
Loan Interests:
Oil & Gas
Drilling (112,670) 3,924 -- -- 384,784
Cable
& Satellite -- 5,297 -- -- 8,365,912
Electric
Utilities -- 64,306 -- -- 71,637
Corporate Bonds &
Notes:
Pharmaceuticals,
Biotechnology
& Life Sciences (1,505,640) 215,371 -- (6,531,847) 5,742,054
Health Care
Supplies -- -- 6,441,636 -- 6,441,636
Common Stocks:
Oil & Gas
Drilling -- -- -- -- 1,302
Leisure
Facilities -- -- -- -- 693,466
Electric
Utilities -- -- -- -- 16
---------------------------------------------------------------------------------------------------------------
Total Investment in
Securities -- Assets $(1,618,310) $ 288,898 $ 6,531,847 $(12,563,159) $21,791,018
===============================================================================================================
* 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 gain (loss) from investments in the Statement of
Operations.
Net change in unrealized (depreciation) of Level 3 investments still held and
considered Level 3 at 5/31/12: $(4,174,469).
The accompanying notes are an integral part of these financial statements.
40 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
Statement of Assets and Liabilities | 5/31/12 (unaudited)
ASSETS:
Investments in securities, at value (cost $546,967,728) $ 511,487,167
Cash 192
Foreign currencies, at value (cost (1)) 2
Receivables for:
Investment securities sold 366,309
Interest receivable 2,997,426
Prepaid expenses 50,154
---------------------------------------------------------------------------------------
Total assets $ 514,901,250
---------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investment securities purchased $ 17,163,699
Due to affiliates 286,430
Administration fee 105,165
Depreciation on unfunded loan commitments 6,031
Accrued expenses and other liabilities 196,038
---------------------------------------------------------------------------------------
Total liabilities $ 17,757,363
---------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 7,298 shares,
including dividends payable of $9,738 $ 182,459,738
---------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $ 464,845,820
Undistributed net investment income 7,106,076
Accumulated net realized loss on investments and foreign currency
transactions (121,780,464)
Net unrealized loss on investments (35,486,592)
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (691)
---------------------------------------------------------------------------------------
Net assets applicable to common shareowners $ 314,684,149
---------------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $314,684,149/24,684,981 common shares $ 12.75
=======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 41
Statement of Operations (unaudited)
For the six months ended 5/30/12
INVESTMENT INCOME:
Interest $18,765,607
Facility and other income 156,229
----------------------------------------------------------------------------------------------
Total Investment income $18,921,836
----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,745,844
Administrative reimbursements 192,697
Transfer agent fees and expenses 5,250
Shareholder communications expense 6,714
Auction agent fees 232,740
Custodian fees 16,397
Registration fees 12,085
Professional fees 147,306
Printing expenses 21,336
Trustees' fees 7,857
Miscellaneous 94,624
----------------------------------------------------------------------------------------------
Total expenses $ 2,482,850
----------------------------------------------------------------------------------------------
Net investment income $16,438,986
----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Investments $(1,117,327)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (60,758) $(1,178,085)
----------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) from:
Investments $ 7,270,478
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 49,727 $ 7,320,205
----------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $ 6,142,120
----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM NET
INVESTMENT INCOME: $(1,340,049)
----------------------------------------------------------------------------------------------
Net increase in net assets applicable to common shareowners
resulting from operations $21,241,057
==============================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
Statement of Changes in Net Assets
--------------------------------------------------------------------------------------------------------
Six Months
Ended
5/31/12 Year Ended
(unaudited) 11/30/11
--------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 16,438,986 $ 31,440,742
Net realized loss on investments and foreign currency
transactions (1,178,085) (231,669)
Change in net unrealized gain (loss) on investments and foreign
currency transactions 7,320,205 (7,067,906)
Distributions to preferred shareowners from net investment
income (1,340,049) (2,688,236)
--------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners resulting from operations $ 21,241,057 $ 21,452,931
--------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income
($0.574 and $0.940 per share, respectively) $ (13,933,755) $ (23,113,319)
--------------------------------------------------------------------------------------------------------
Total distributions to common shareowners $ (13,933,755) $ (23,113,319)
--------------------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 554,776 $ 1,345,454
--------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners from Trust share transactions $ 554,776 $ 1,345,454
--------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners $ 7,862,078 $ (314,934)
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period 306,822,071 307,137,005
--------------------------------------------------------------------------------------------------------
End of period $ 314,684,149 $ 306,822,071
--------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 6,520,195 $ 5,940,894
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 43
Financial Highlights
----------------------------------------------------------------------------------------------------
Six Months
Ended Year
5/31/12 Ended
(Unaudited) 11/30/11
----------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $12.45 $12.52
----------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 0.67 $ 1.28
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.25 (0.30)
Dividends and distributions to preferred shareowners from:
Net investment income (0.05) (0.11)
Net realized gains -- --
----------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.87 $ 0.87
Distributions to common shareowners from:
Net investment income (0.57) (0.94)
Net realized gains -- --
Tax return of capital -- --
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.30 $(0.07)
----------------------------------------------------------------------------------------------------
Net asset value, end of period(c) $12.75 $12.45
----------------------------------------------------------------------------------------------------
Market value, end of period(c) $12.80 $12.55
====================================================================================================
Total return at market value(d) 6.65% 2.60%
Ratios to average net assets of common shareowners:
Net expenses (e) 1.58%(f) 1.67%
Net investment income before preferred share dividends 10.48%(f) 9.96%
Preferred share dividends 0.85%(f) 0.85%
Net investment income available to common shareowners 9.63%(f) 9.11%
Portfolio turnover 20% 42%
-----------------------------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
11/30/10 11/30/09 11/30/08 11/30/07
-----------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $11.40 $ 8.62 $ 18.07 $19.66
-----------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 1.17 $ 1.13 $ 1.88 $ 2.30
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.94 2.94 (8.88) (1.47)
Dividends and distributions to preferred shareowners from:
Net investment income (0.11) (0.12) (0.37) (0.51)
Net realized gains -- -- (0.03) 0.00 (b)
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.00 $ 3.95 $ (7.40) $ 0.32
Distributions to common shareowners from:
Net investment income (0.88) (1.12) (1.70) (1.91)
Net realized gains -- -- (0.35) 0.00 (b)
Tax return of capital -- (0.05) -- --
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.12 $ 2.78 $ (9.45) $(1.59)
-----------------------------------------------------------------------------------------------------------------
Net asset value, end of period(c) $12.52 $11.40 $ 8.62 $18.07
-----------------------------------------------------------------------------------------------------------------
Market value, end of period(c) $13.16 $11.54 $ 6.90 $16.79
=================================================================================================================
Total return at market value(d) 22.63% 91.01% (52.10)% (2.02)%
Ratios to average net assets of common shareowners:
Net expenses (e) 1.74% 2.03% 1.60% 1.40%
Net investment income before preferred share dividends 9.66% 11.79% 12.61% 11.92%
Preferred share dividends 0.94% 1.26% 2.47% 2.66%
Net investment income available to common shareowners 8.72% 10.53% 10.14% 9.26%
Portfolio turnover 40% 32% 31% 80%
The accompanying notes are an integral part of these financial statements.
44 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
--------------------------------------------------------------------------------------------------
Six Months
Ended Year
5/31/12 Ended
(Unaudited) 11/30/11
--------------------------------------------------------------------------------------------------
Net assets of common shareowners, end of period (in thousands) $314,684 $306,822
Preferred shares outstanding (in thousands) $182,460 $182,450
Asset coverage per preferred share, end of period $ 68,122 $ 67,047
Average market value per preferred share (g) $ 25,001 $ 25,000
Liquidation value, including dividends payable, per preferred share $ 25,003 $ 25,005
Ratios to average net assets of common shareowners before waivers and
reimbursement of expenses
Net expenses (e) 1.58%(f) 1.67%
Net investment income before preferred share dividends 10.48%(f) 9.96%
Preferred share dividends 0.85%(f) 0.85%
Net investment income available to common shareowners 9.63%(f) 9.11%
--------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
11/30/10 11/30/09 11/30/08 11/30/07
------------------------------------------------------------------------------------------------------------------------
Net assets of common shareowners, end of period (in thousands) $307,137 $278,565 $210,617 $441,493
Preferred shares outstanding (in thousands) $182,450 $182,450 $204,475 $234,500
Asset coverage per preferred share, end of period $ 69,090 $ 63,175 $ 50,758 $ 72,067
Average market value per preferred share (g) $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per preferred share $ 25,005 $ 25,005 $ 25,007 $ 25,009
Ratios to average net assets of common shareowners before waivers and
reimbursement of expenses
Net expenses (e) 1.74% 2.03% 1.60% 1.40%
Net investment income before preferred share dividends 9.66% 11.79% 12.61% 11.92%
Preferred share dividends 0.94% 1.26% 2.47% 2.66%
Net investment income available to common shareowners 8.72% 10.53% 10.14% 9.26%
------------------------------------------------------------------------------------------------------------------------
(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 dividend 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.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 45
Notes to Financial Statements | 5/31/12 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Floating Rate Trust (the "Trust") was organized as a Delaware statutory
trust on October 6, 2004. Prior to commencing operations on December 28, 2004,
the Trust had no operations other than matters relating to its organization and
registration as a non-diversified, closed-end management investment company
under the Investment Company Act of 1940, as amended. The Trust is a
diversified fund. The investment objective of the Trust is to provide a high
level of current income. The Trust will, as a secondary objective, also seek
preservation of capital to the extent consistent with its primary objective of
high current income.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Senior floating rate
loan interests (senior loans) are valued in accordance with guidelines
established by the Board of Trustees at the mean between the last available
bid and asked prices from one or more brokers or dealers as obtained from
Loan Pricing Corporation an independent pricing service. Senior loans 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
46 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
or less generally are valued at amortized cost. Money market mutual funds
are valued at net asset value.
Trading in the 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 or senior loan interests for which independent pricing services
are unable to supply prices or for which market prices and/or quotations
are not readily available or are considered to be unreliable are valued
using fair value methods pursuant to procedures adopted by 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 from exchange prices.
At May 31, 2012, twenty-four securities were valued using fair value
methods (in addition to securities valued using prices supplied by
independent pricing services) representing 3.0% 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 income on interest 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.
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.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 47
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 5).
D. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years remain subject to examination by
federal and state tax authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Trust's distributions may
be shown in the accompanying financial statements as from or in excess of
net investment income or as from net realized gain (loss) on investment and
foreign currency transactions, or from paid-in capital, depending on the
type of book/tax differences that may exist.
The tax character of distributions paid to common and preferred shareowners
will be determined at the end of the fiscal year. Distribution paid during
the year ended November 30, 2011 was as follows:
----------------------------------------------------------------------------
2011
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $25,801,555
----------------------------------------------------------------------------
Total $25,801,555
============================================================================
48 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
The following shows the components of distributable earnings (losses) on a
federal income tax basis at November 30, 2011:
----------------------------------------------------------------------------
2011
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 7,429,692
Capital loss carryforward (120,602,379)
Dividends payable (34,167)
Unrealized depreciation (44,262,119)
----------------------------------------------------------------------------
Total $ (157,468,973)
============================================================================
The difference between book-basis and tax-basis unrealized depreciation is
primarily attributable to the difference between book and tax amortization
methods for premiums and discounts on fixed-income securities, and the
realization of unrealized gain on investments in passive foreign investment
companies.
E. Risk
Information regarding the Trust's principal risks is contained in the
Trust's original offering prospectus with additional information included
in the Trust's shareowner reports issued from time to time. Please refer to
those documents when considering the Trust's principal risks. At times, the
Trust's investments may represent industries or industry sectors that are
interrelated or have common risks, making the Trust more susceptible to any
economic, political, or regulatory developments or other risks affecting
those industries and sectors.
The Trust invests primarily in senior floating rate loans (Senior Loans).
The Trust may also invest in other floating and variable rate instruments,
including second lien loans, investment grade fixed-income debt securities
and high yield, high risk corporate bonds. The Trust may also invest in
below investment grade securities. Below investment grade securities are
commonly referred to as "junk bonds" and are considered speculative with
respect to the issuer's capacity to pay interest and repay principal. These
securities involve greater risk of loss, are subject to greater price
volatility, and are less liquid, especially during periods of economic
uncertainty or change, than higher rated debt securities. The Trust may
invest in securities of issuers that are in default or that are in
bankruptcy. Additionally, the Trust may invest in "event-linked" bonds,
which sometimes are referred to as "insurance-linked" or "catastrophe"
bonds. The return of principal and the payment of interest on event-linked
bonds are contingent on the non-occurrence of a pre-defined "trigger"
event, such as a hurricane or an earthquake of a specific magnitude. In
addition to the specified trigger events, event-linked bonds may expose the
Trust to other risks, including but not limited to issuer (credit) default,
adverse regulatory or jurisdictional interpretations and adverse tax
consequences.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 49
The Trust's investments in certain foreign markets or countries with
limited developing markets may subject the Trust to a greater degree of
risk than in a developed market. These risks include disruptive political
or economic conditions and the possible imposition of adverse governmental
laws or currency exchange restrictions.
The Trust is not limited in the percentage of its assets that may be
invested in Senior Loans and other securities deemed to be illiquid.
Illiquid securities may be difficult to sell at a fair price reflective of
their value at times when the Trust believes it is desirable to do so and
their market price is generally more volatile than that of more liquid
securities. Illiquid securities may be more difficult to value and
investment of the Trust's assets in illiquid securities may restrict the
Trust's ability to take advantage of market opportunities.
F. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value
of the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Trust's custodian or a subcustodian of the
Trust. The Trust's investment adviser, Pioneer Investment Management, Inc.
(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.
50 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional
unissued but authorized common shares from the Trust or (ii) by purchase of
outstanding common shares on the New York Stock Exchange or elsewhere. If,
on the payment date for any dividend, the net asset value per common share
is equal to or less than the market price per share plus estimated
brokerage trading fees (market premium), the Plan Agent will invest the
dividend amount in newly issued common shares. The number of newly issued
common shares to be credited to each account will be determined by dividing
the dollar amount of the dividend by the net asset value per common share
on the date the shares are issued, provided that the maximum discount from
the then current market price per share on the date of issuance does not
exceed 5%. If, on the payment date for any dividend, the net asset value
per common share is greater than the market value (market discount), the
Plan Agent will invest the dividend amount in common shares acquired in
open-market purchases. There are no brokerage charges with respect to newly
issued common shares. However, each participant will pay a pro rata share
of brokerage trading fees incurred with respect to the Plan Agent's
open-market purchases. Participating in the Plan does not relieve
shareowners from any federal, state or local taxes which may be due on
dividends paid in any taxable year. Shareowners holding Plan shares in a
brokerage account may not be able to transfer the shares to another broker
and continue to participate in the Plan.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
manages the Trust's portfolio. Management fees payable under the Trust's
Advisory Agreement with PIM are calculated daily at the annual rate of 0.70% of
the Trust's average daily managed assets. "Managed assets" means (a) the total
assets of the Trust, including any form of investment leverage, minus (b) all
accrued liabilities incurred in the normal course of operations, which shall
not include any liabilities or obligations attributable to investment leverage
obtained through (i) indebtedness of any type (including, without limitation,
borrowing through a credit facility 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 May 31, 2012, the net management
fee was 0.70% of the Trust's average daily managed assets, which was equivalent
to 1.10% 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 May
31, 2012, $391,595 was payable to PIM related to management costs,
administrative costs and certain other reimbursements and is included in "Due
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 51
to affiliates" and "Administration fee" on the Statement of Assets and
Liabilities.
Effective April 2, 2012, PIM has retained Brown Brothers Harriman & Co. (BBH)
to provide certain administrative and accounting services to the Trust on its
behalf. For such services, PIM pays BBH a monthly fee at an annual rate of
0.025% of the Trust's average daily managed assets subject to a minimum monthly
fee of $6,250. Previously, PIM had retained State Street Bank and Trust Company
(State Street) provide such services. PIM paid State Street a monthly fee at an
annual rate of 0.07% of the Trust's average daily managed assets up to $500
million and 0.03% for average daily managed assets in excess of $500 million,
subject to a minimum monthly fee of $10,000. Neither BBH nor State Street had
received compensation directly from the Trust for providing such services.
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 May 31, 2012, the
Trust expenses were not reduced under such arrangement.
5. Forward Foreign Currency Contracts
During the six months ended May 31, 2012, 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 May 31, 2012 was
$1,921,667. At May 31, 2012, the Trust had no open forward portfolio or
settlement contracts.
52 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
6. Unfunded Loan Commitments
As of May 31, 2012, the Trust had an unfunded loan commitments amounting to
$1,340,193 (excluding unrealized depreciation on this commitment of $6,031 as
of May 31, 2012) which could be extended at the option of the borrower,
pursuant to the following loan agreement:
---------------------------------------------------------------------------------------
Unrealized
Borrower Par Cost Value Gain (Loss)
---------------------------------------------------------------------------------------
National Specialty Hospitals, Inc.,
Initial Term Loan $196,782 $196,782 $191,125 $ (5,657)
Tronox Pigments (Netherlands) B.V.,
Delayed Draw Term Loan $171,429 $171,429 $170,500 $ (929)
Wendy's International Inc.,
Delayed Term Loan $971,982 $962,402 $962,957 $ 555
---------------------------------------------------------------------------------------
Total $ 6,031
=======================================================================================
In addition, the Trust had the following bridge loan commitment outstanding at
May 31, 2012:
---------------------------------------------------------------------------------------
Net
Unrealized
Loan Shares Cost Value Gain
---------------------------------------------------------------------------------------
Wolverine World Wide, Inc.,
Senior Unsecured Bridge Loan 1,800,000 $1,800,000 $1,800,000 $--
---------------------------------------------------------------------------------------
Total $--
=======================================================================================
7. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the period ended May
31, 2012 and November 30, 2011 were as follows:
-------------------------------------------------------------------------------
5/31/12 11/30/11
-------------------------------------------------------------------------------
Shares outstanding at beginning of period 24,640,650 24,536,526
Reinvestment of distributions 44,331 104,124
-------------------------------------------------------------------------------
Shares outstanding at end of period 24,684,981 24,640,650
===============================================================================
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 May
31, 2012, there were 7,298 AMPS as follows: Series M7-2,434, Series W7,-2,432
and Series TH7-2,432.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 53
Notes to Financial Statements | 5/31/12 (unaudited)
Dividends on Series M7, Series W7, and Series TH7, are cumulative at a rate
which is to be reset every seven 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 series is the greater of 125% of the one week LIBOR rate
or the LIBOR rate plus a spread of 1.25%. Dividend rates on AMPS ranged from
1.409% to 1.505% during the six months ended May 31, 2012.
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.
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.
54 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
8. Additional Disclosures about Derivative Instruments and Hedging Activities:
The effect of derivative instruments on the Statement of Operations for the six
months ended May 31, 2012 was as follows:
-------------------------------------------------------------------------------------------------------
Derivatives Not Change in
Accounted for as Realized Unrealized
Hedging Instruments Loss on Loss on
Under Accounting Location of Gain or (Loss) Derivatives Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 185 in Income in Income in Income
-------------------------------------------------------------------------------------------------------
Forward Foreign Currency Contracts Net realized loss on forward foreign $(60,758)
currency contracts and other assets
and liabilities denominated in foreign
currencies
Forward Foreign Currency Contracts Change in net unrealized gain (loss) $49,727
on forward foreign currency contracts
and other assets and liabilities
denominated in foreign currencies
9. Pending Litigation
The Trust is currently involved in litigation matters relating to Trust
investments. The Trust believes these claims are without merit and is defending
both vigorously. At May 31, 2012, it is reasonably possible that adverse
outcomes may result. Currently, the amount of either judgment cannot be
reasonably estimated.
10. Subsequent Events
The Board of Trustees of the Trust declared on June 4, 2012 a dividend from
undistributed net investment income of $0.075 per common share payable June 29,
2012, to common shareowners of record on June 15, 2012.
Subsequent to May 31, 2012, dividends declared and paid on preferred shares
totaled $219,509 in aggregate for the two outstanding preferred share series
through June 30, 2012.
On July 12, 2012, Moody's Investor Service, Inc. ("Moody's") downgraded the
ratings of debt and preferred shares issued by nearly all equity, municipal
bond and taxable fixed income closed-end funds in the industry, including
preferred shares ("AMPS") issued by the Trust. The ratings actions were the
result of a decision by Moody's to revise its ratings methodology and were not
related specifically to any changes in the portfolio investments or structure
of the Trust. The rating downgrade will result in the Trust having to pay a
slightly higher dividend rate on its AMPS.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 55
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.
56 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
Trustees, Officers and Service Providers
Trustees
Thomas J. Perna, Chairman
David R. Bock
Mary K. Bush
John F. Cogan, Jr.
Benjamin M. Friedman
Margaret B.W. Graham
Daniel K. Kingsbury
Marguerite A. Piret
Stephen K. West
Officers
John F. Cogan, Jr., President*
Daniel K. Kingsbury, Executive
Vice President
Mark E. Bradley, Treasurer**
Christopher J. Kelley, Secretary
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Legal Counsel
Bingham McCutchen LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Shareowner Services and Sub-Transfer Agent
American Stock Transfer & Trust Company
Preferred Share Auction/Transfer Agent and Registrar
Deutsche Bank Trust Company Americas
Sub-Administrator
Brown Brothers Harriman & Co.
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Trust voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at 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 Funds.
** Chief Financial and Accounting Officer of the Funds.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 57
This page for your notes.
58 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
This page for your notes.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/12 59
This page for your notes.
60 Pioneer Floating Rate Trust | Semiannual Report | 5/31/12
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
website at 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.
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 10(a), 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 accountant's 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 registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
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 registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
The registrant has a separately-designated standing audit
committe eestablished in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(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 I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 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.
Information not required in semi annual reports on form NCSR.
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 registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers 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 registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
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 registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
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 registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) 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 officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
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.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) 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.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Floating Rate Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date July 30, 2012
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 July 30, 2012
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date July 30, 2012
* Print the name and title of each signing officer under his or her signature.