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, 2016 through May 31, 2017
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Floating
Rate Trust
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Semiannual Report | May 31, 2017
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Ticker Symbol: PHD
[LOGO] Amundi Pioneer
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ASSET MANAGEMENT
visit us: www.amundipioneer.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Schedule of Investments 13
Financial Statements 45
Financial Highlights 49
Notes to Financial Statements 51
Approval of New and Interim Management Agreements 67
Trustees, Officers and Service Providers 75
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 1
President's Letter
U.S. markets have continued to generate positive returns during the first
several months of 2017, with so-called "risk" assets, such as equities and
credit-sensitive bonds, posting solid gains. U.S. equities, as measured by the
Standard & Poor's 500 Index, returned slightly more than 6% in the first
calendar quarter of the year and more than 3% for the second quarter. Meanwhile,
high-yield securities have dominated bond market performance thus far in 2017.
The post-election market momentum we witnessed in the U.S. during the final
weeks of the fourth quarter of 2016 slowed only when oil prices slumped in
March, due to both higher-than-expected inventories and concerns over whether
OPEC (Organization of Petroleum Exporting Countries) would continue its supply
cuts. Not even the Federal Reserve System's (the Fed's) two rate hikes since
March, nor Britain's trigger of Article 50 to begin the "Brexit" process caused
any dramatic sell-off of risk assets. In fact, we are encouraged by the more
hawkish stance of the Fed with regard to interest rates, in light of our view
that current U.S. bond yields do not fairly reflect the prospective levels of
economic activity and inflation. We expect the Fed to continue to tighten
monetary policy, with at least one more rate hike likely to occur before the end
of 2017.
While U.S. gross domestic product (GDP) did slow in the first quarter, ending
up at 1.4% after revisions, the expectation is for GDP growth to pick-up in the
second quarter, with a solid consumer leading the way. It is our view that the
U.S. economy may lead all developed nations in 2017, with GDP growth in
excess of 2% for the full year, even if proposed tax and regulatory reforms are
not passed into law in the near future. We also believe solid domestic
employment figures should continue to support consumption and the housing
market, and that stronger corporate profits and increased government
spending may contribute to economic growth in 2018 and beyond. In addition,
as we monitor global Purchasing Manager Indices (PMIs), we note that their
numbers are increasing, which suggests that growth in global economies is also
improving. (PMIs are used to measure the economic health of the
manufacturing sector.)
There are, as always, some risks to our outlook. First, the market already has
priced in a good deal of the Trump economic reform platform, and that could
lead to near-term disappointment if Congressional follow-through does not
happen this year. The future of the Affordable Care Act (ACA) is another
potential concern, as Congressional leaders have, thus far, failed to generate
2 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
enough support to get new health care legislation approved by both houses.
However, if a bill is eventually passed that either eliminates or significantly
alters the ACA, the new law will undoubtedly have an effect on the health care
sector, one of the largest segments of the U.S. economy. Geopolitical risks, of
course, remain a potential headwind, given ongoing strife in the Middle East and
renewed tensions on the Korean Peninsula.
While our current outlook is generally optimistic, conditions can and often do
change, and while passive investment strategies may have a place in one's
overall portfolio, it is our view that all investment decisions are active
choices.
Throughout our history, we have believed in the importance of active
management. The active decisions to invest in equities or fixed-income
securities are made by a team of experienced investment professionals focusing
on identifying value across global markets using proprietary research, careful
risk management, and a long-term perspective. We believe our shareowners
can benefit from the experience and tenure of our investment teams as well as
the insights generated from our extensive research process.
As always, and particularly during times of market uncertainty, we encourage
you to work with your financial advisor to develop an overall investment plan
that addresses both your short- and long-term goals, and to implement such a
plan in a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of US
Amundi Pioneer Asset Management USA, Inc.
May 31, 2017
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 3
Portfolio Management Discussion | 5/31/17
Important Note: On July 3, 2017, Amundi acquired Pioneer Investments, a group of
asset management companies located throughout the world. Amundi, one of the
world's largest asset managers, is headquartered in Paris, France. As a result
of the transaction, Pioneer Investment Management, Inc., the Trust's investment
adviser, became an indirect wholly owned subsidiary of Amundi and Amundi's
wholly owned subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer
Investments was owned by Pioneer Global Asset Management S.p.A., a wholly owned
subsidiary of UniCredit S.p.A.
In connection with the transaction, the names of the Trust's investment
adviser and principal underwriter changed. Effective July 3, 2017, the name of
Pioneer Investment Management, Inc., changed to Amundi Pioneer Asset
Management, Inc., and the name of Pioneer Funds Distributor, Inc., changed
to Amundi Pioneer Distributor, Inc.
This transaction does not impact your existing relationship with Pioneer
Investments, your advisor, or the methods you use to communicate with us, as the
investor contact telephone numbers and services you expect will remain the same.
We are excited, however, to be launching a new website representing the combined
company. Come visit us at: www.amundipioneer.com
After a late-year rally lifted the prices of most bank-loan investments in
December 2016, prices settled into a more stable pattern for the remainder of
the six-month period ended May 31, 2017. In the following interview, Jonathan
Sharkey discusses the factors that affected the performance of Pioneer Floating
Rate Trust during the six-month period. Mr. Sharkey, a senior vice president and
a portfolio manager at Amundi Pioneer Asset Management, Inc. (Amundi 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, 2017?
A Pioneer Floating Rate Trust returned 3.48% at net asset value (NAV) and
4.30% at market price during the six-month period ended May 31, 2017, while
the Trust's benchmark, the Standard & Poor's/Loan Syndications & Trading
Association Leveraged Loan Index (the S&P/LSTA Index), returned 3.14%.
Unlike the Trust, the S&P/LSTA Index does not use leverage. While the use
of leverage increases investment opportunity, it also increases investment
risk. During the same six-month period, the average return (at market
price) of the 34 closed end funds in Lipper's Loan Participation Funds
category (which may or may not be leveraged), was 7.22%, and the average
return (at NAV) of the 38 closed end funds in the same Lipper category was
4.30%. For the 12-month period ended May 31, 2017, the Trust returned 8.19%
at NAV and 13.43% at market price, while
4 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
the Trust's linked benchmark returned 7.65% and the S&P/LSTA Index returned
7.49%. (See footnote on Page 12 for information about the Trust's linked
benchmark).
The shares of the Trust were selling at a 5.02% discount to net asset value
on May 31, 2017. Comparatively, the shares of the Trust were selling at a
5.76% discount to net asset value on November 30, 2016, the end of the
Trust's previous annual reporting period.
The Trust's standard, 30-day SEC yield was 4.34% on May 31, 2017*.
Q How would you describe the investment environment for bank loans during the
six-month period ended May 31, 2017?
A The six-month period began in the midst of a rally triggered by the
November 2016 U.S. elections. The victory of Republican Donald J. Trump in
the 2016 presidential election and the successful effort of Republicans
(GOP) to retain control of both houses of Congress sparked gains in the
credit sectors, including bank loans. Mr. Trump had campaigned on an
economic platform of lower taxes, reduced regulations, and increased
infrastructure spending. If enacted, those policies had the potential to
spur an acceleration in economic growth, and the markets reacted
accordingly, as investors bid-up the prices of bank loans and other
credit-sensitive investments as 2016 drew to a close. In the first five
months of 2017, however, market conditions settled down and prices
stabilized. As a consequence, the returns of floating-rate bank loans
tended to be defined principally by the current yield, or income,
distributed by the loans to investors.
Overall, the fundamentals of bank loans were solid during the six-month
period. The U.S. economy continued to grow at a modest pace, while the job
market continued to improve. In general, the credit-worthiness of
loan-based investments strengthened in the expanding economy and loan
default rates remained low. Investor demand for bank loans persisted, while
the supply of new loans remained somewhat muted. With strong demand
outstripping loan supply, prices appreciated, with 70% of existing loans
trading above par (face) value. On the negative side, however, many
existing bank loans were repriced into lower-yielding loans over the
six-month period.
Q What factors affected the Trust's performance relative to the benchmark
S&P/LSTA Index during the six-month period ended May 31, 2017?
A The Trust slightly outperformed the benchmark S&P/LSTA Leveraged Loan Index
during the six-month period, with benchmark-relative performance aided by
the use of leverage, or borrowed funds. The Trust's benchmark-relative
performance was held back, however, by the portfolio's tilt in favor of
higher-quality loans, as lower-quality loans rallied more
* The 30-day SEC yield is a standardized formula that is based on the
hypothetical annualized earning power (investment income only) of the
Trust's portfolio securities during the period indicated.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 5
than higher-quality loans over the period. We maintained our preference
for higher-quality loans in the Trust's portfolio because we continue to
believe they can provide more reliable and consistent returns for risk-
conscious investors over the longer term. On May 31, 2017, just 3.5% of
the Trust's total investment portfolio was allocated to loans rated CCC or
below. Meanwhile, the S&P/LSTA Leveraged Loan Index had a 6%
allocation in CCC-rated loans. Similarly, the Trust's portfolio was
slightly underweight in second-lien loans as compared with the benchmark.
At the industry level, the Trust's exposure to health care loans helped
benchmark-relative results during the period, as the portfolio was
moderately overweight in that outperforming group. Good security selection
within the Trust's allocation to information technology loans also
supported benchmark-relative performance, despite the fact that the
portfolio had a modest underweight to that outperforming sector.
Conversely, the Trust's exposures to retailing and cosmetics, two
weak-performing groups over the six-month period, detracted from absolute
returns, even though the portfolio was heavily underweight in each of those
sectors.
Q Which individual investments had notable effects, either positively or
negatively, on the Trust's performance during the six-month period ended
May 31, 2017?
A Individual portfolio holdings that contributed positively to the Trust's
performance during the period included loans to Dixie Electric, Accudyne
Industries, and Mill U.S. Acquisition. Dixie Electric provides electrical
services to oil-field services operators and other industries, while
Accudyne produces pumps, compressors, and other equipment for large scale
industrial uses. Mill U.S. Acquisition, also known as CSM Bakery, supplies
products to the baking industry. Other investments that helped the Trust's
performance during the period included a position in loans to defense
contractor IAP Worldwide, which went through a financial restructuring
that resulted in the Trust's gaining a small equity position. Positions in
two event-linked insurance bonds also supported the Trust's results, as did
an investment in the high-yield bonds of Community Health, a rural hospital
chain.
Portfolio investments that were less successful for the Trust during the
period included loans to Cengage Learning, a textbook publisher that felt
the effects of softening of demand throughout the industry; Concordia
Healthcare, a diversified pharmaceutical company that saw a weakening of
demand both in the United States and the United Kingdom; and Altisource, a
processing service provider to financial companies that was affected by the
problems of one major client.
6 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
Q How did the level of leverage in the Trust change over the six-month period
ended May 31, 2017?
A The Trust employs leverage through a revolving credit facility. (See Note 7
to the financial statements).
At the end of the six-month period on May 31, 2017, 31.6% of the Trust's
total managed assets were financed by leverage (or borrowed funds),
compared with 31.7% of the Trust's total managed assets financed by
leverage at the start of the period on December 1, 2016. The absolute
amount of funds borrowed by the Trust did not change during the period. The
reduction in the percentage of leveraged funds was the result of
appreciation in the values of the Trust's holdings.
Q Did the Trust invest in any derivative securities during the six-month
period ended May 31, 2017? If so, did the investments have an effect on
performance?
A Yes, during the period we took a small position in high-yield bond credit
default swaps as a way to deploy cash in the Trust's portfolio, at par
value, while waiting for the loan new-issue calendar to resurge. The swaps
also gave the Trust some exposure to high-yield bonds. The investment did
not have a material impact on performance.
Q What factors affected the Trust's distributions to shareowners during the
six-month period ended May 31, 2017?
A The Trust's distributions remained stable during the period. Shareowners
should be aware, however, that several factors could affect future
distributions. As older loans with higher yields are repriced at lower
spreads, newer loans in the Trust's portfolio may pay less current income
to the Trust. (Loan spreads are the interest rates over and above the
London Interbank Offered Rate - or LIBOR rate - charged to borrowers by
banks.)
Potentially offsetting these influences is the prospect that short-term
interest rates will continue to increase due to tightening of monetary
policy by the Federal Reserve System (the Fed), which has raised the
Federal funds rate three times since December 2016. If there are more rate
increases by the Fed over the next several months, the income paid by
floating-rate loans may also start increasing, which could result in
greater current income for the Trust, as rates could exceed the LIBOR
floors in the portfolio.
Q What is your investment outlook?
A We have a positive outlook for bank-loan investments. While U.S. gross
domestic product (GDP) registered a disappointing 1.4% growth rate during
the first quarter of this year, we believe the U.S. economy should
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 7
continue to strengthen, with GDP growing at a 2% (or better) annual pace
for 2017. We also expect to see persistently strong investor demand for
bank loans as the Fed continues to tighten monetary policy by raising the
Federal funds rate.
The past six months saw a wave of loan refinancings that we believe may
signal a change in the dynamics of the loan market as well as in the types
of gains that may be expected from loan investments. During the period,
one- quarter of the loans S&P/LSTA Leveraged Loan Index were refinanced
into new loans with lower spreads. The new loans, because of their lower
interest rates, may prove less likely to appreciate in price. During 2016,
half the returns from bank-loan investments came from price appreciation,
with the other half coming from interest distributions. In the future, we
believe a smaller percentage of bank-loan earnings may come from price
appreciation, with interest income becoming the primary source of earnings.
We continue to believe that bank loans can create solid opportunities for
income-oriented investors. At period end, the credit-quality of the loan
asset class was good, with loan default rates remaining well below
historical averages. We think overall default rates should remain
relatively low, although we anticipate there may be some defaults in the
retail sector as online sellers continue to take business from traditional
"brick-and-mortar" retailers.
We continue to significantly overweight asset-intensive industries such as
building materials and industrial equipment in the Trust's portfolio, while
de-emphasizing loans to retailers and technology companies. Retailers
continue to lose market share, while technology firms remain vulnerable to
fast-moving industry changes.
We believe our preference for holding higher-quality loans in asset-
intensive industries positions the Trust well for the present environment,
while rising short-term interest rates have the potential to increase the
dividend** income generated by bank loans.
** Dividends are not guaranteed.
Please refer to the Schedule of Investments on pages 13-44 for a full listing of
Trust securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity, and heightened
uncertainty. These conditions may continue, recur, worsen, or spread.
8 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
The Trust may invest in derivative securities, which may include futures and
options, for a variety of purposes, including: in an attempt to hedge against
adverse changes in the marketplace of securities, interest rates or currency
exchange rates; as a substitute for purchasing or selling securities; to attempt
to increase the Trust's return as a non-hedging strategy that may be considered
speculative; and to manage portfolio characteristics. Using derivatives can
increase fund losses and reduce opportunities for gains when the market prices,
interest rates or the derivative instruments themselves behave in a way not
anticipated by the Trust. These types of instruments can increase price
fluctuation.
The Trust is not limited in the percentage of its assets that may be invested in
floating-rate senior loans and other securities which may be less liquid or
illiquid. Illiquid securities may be difficult to sell at a price reflective of
their value at times when the Trust believes it is desirable to do so and the
market price of illiquid securities is generally more volatile than that of more
liquid securities. Illiquid securities may be difficult to value, and investment
of the Trust's assets in illiquid securities may restrict the Trust's ability to
take advantage of market opportunities.
The Trust employs leverage through a revolving credit facility. Leverage creates
significant risks, including the risk that the Trust's income or capital
appreciation from investments purchased with the proceeds of leverage will not
be sufficient to cover the cost of leverage, which may adversely affect the
return for shareowners.
The Trust is required to maintain certain regulatory and other asset coverage
requirements in connection with its use of leverage. In order to maintain
required asset coverage levels, the Trust may be required to reduce the amount
of leverage employed by the Trust, alter the composition of its investment
portfolio or take other actions at what might be inopportune times in the
market. Such actions could reduce the net earnings or returns to shareowners
over time, which is likely to result in a decrease in the market value of the
Trust's shares.
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.
Risks of investing in the Trust are discussed in greater detail in the Trust's
original offering documents and shareowner reports issued from time to time.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates and economic and political
conditions.
These risks may increase share price volatility.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 9
Portfolio Summary | 5/31/17
Portfolio Diversification*
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Senior Secured Floating Rate Loan Interests 87.5%
Corporate Bonds & Notes 4.2%
U.S. Government and Agency Obligations 3.4%
Repurchase Agreements 2.1%
Treasury Bills 1.1%
Exchange-Traded Funds 1.1%
Collateralized Loan Obligations 0.4%
Common Stocks 0.1%
Tax Exempt Obligation 0.1%
* Includes investments in Insurance Linked Securities totaling 1.3% of total
investment portfolio.
10 Largest Holdings
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(As a percentage of long-term holdings)**
1. U.S. Treasury Notes, 1.152%, 4/30/18 2.00%
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2. Bright Horizons Family Solutions LLC (fka Bright Horizons Family Solutions, Inc.),
Term B Loan, 3.295%, 11/7/23 0.76
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3. U.S. Treasury Notes, 1.234%, 1/31/18 0.75
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4. U.S. Treasury Notes, 1.13%, 10/31/17 0.73
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5. McGraw-Hill Global Education Holdings LLC, First Lien Term B Loan, 5.045%, 5/4/22 0.66
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6. American Airlines, Inc., 2017 Replacement Term Loan, 3.044%, 6/27/20 0.65
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7. Scientific Games International, Inc., Initial Term B-3 Loan, 5.062%, 10/1/21 0.63
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8. Jonah Energy LLC, Second Lien Initial Term Loan, 7.545%, 5/12/21 0.57
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9. Altice US Finance I Corp., March 2017 Refinancing Term Loan, 3.283%, 7/28/25 0.56
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10. Nord Anglia Education Finance LLC, Initial Term Loan, 4.702%, 3/31/21 0.56
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** This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
10 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
Prices and Distributions | 5/31/17
Market Value per Share^
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5/31/17 11/30/16
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Market Value $11.92 $11.78
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(Discount) (5.02)% (5.76)%
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Net Asset Value per Share^
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5/31/17 11/30/16
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Net Asset Value $12.55 $12.50
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Distributions per Share: 12/1/16-5/31/17
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Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
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$0.37 $-- $--
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Yields
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5/31/17 11/30/16
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30-day SEC Yield 4.34% 4.12%
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The data shown above represents past performance, which is no guarantee of
future results.
^ Net asset value and market value are published in Barron's on Saturday, The
Wall Street Journal on Monday and The New York Times on Monday and
Saturday. Net asset value and market value are published daily on the
Trust's website at www.amundipioneer.com.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 11
Performance Update | 5/31/17
Investment Returns
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The mountain chart on the right shows the change in market value, including
reinvestment of dividends and distributions, of a $10,000 investment made in
shares of Pioneer Floating Rate Trust during the periods shown, compared with
the value of the Bloomberg Barclays U.S. High Yield Loans Index, an unmanaged
index which measures the performance of high-yield loans, and the S&P/LSTA
Leveraged Loan Index. The Bloomberg Barclays U.S. High Yield Loans Index was the
Trust's benchmark through September 30, 2016, when that index ceased to exist.
The S&P/LSTA Leveraged Loan Index, which provides broad and comprehensive total
return metrics of the U.S. universe of syndicated term loans, became the Trust's
benchmark on October 1, 2016.
Average Annual Total Returns
(As of May 31, 2017)
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Pioneer
Floating S&P/
Rate LSTA
Net Trust Lever-
Asset Linked aged
Value Market Bench- Loan
Period (NAV) Price mark*** Index
--------------------------------------------------------------------------------
10 Years 3.96% 3.20% 4.62% 4.51%
5 Years 6.34 5.17 4.91 4.73
1 Year 8.19 13.43 7.65 7.49
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Floating Bloomberg Barclays U.S. S&P/LSTA Leveraged
Rate Trust High Yield Loans Index+ Loan Index
5/07 $10,000 $10,000 $10,000
5/08 $ 8,237 $ 9,803 $ 9,754
5/09 $ 5,557 $ 9,002 $ 8,875
5/10 $ 8,671 $10,946 $11,029
5/11 $10,856 $11,970 $12,053
5/12 $10,648 $12,221 $12,336
5/13 $12,267 $13,295 $13,409
5/14 $11,810 $13,839 $13,994
5/15 $11,827 $14,298 $14,391
5/16 $12,077 $14,467 $14,462
5/17 $13,699 $14,904 $15,546
Call 1-800-225-6292 or visit www.amundipioneer.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 shares of the Trust.
Shares of closed-end funds, unlike open-end funds, are not continuously offered.
There is a one-time public offering and, once issued, shares of closed-end funds
are bought and sold in the open market through a stock exchange and frequently
trade at prices lower than their NAV. NAV per share is total assets less total
liabilities, which include preferred shares, or borrowings, as applicable,
divided by the number of shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends are
assumed to be reinvested at prices obtained through open-market purchases under
the Trust's dividend reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the sale of Trust shares.
Had these fees and taxes been reflected, performance would have been lower.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Trust returns, do not reflect any fees, expenses or sales charges. The
indices do not use leverage. You cannot invest directly in an index.
*** The Bloomberg Barclays U.S. High Yield Loans Index (the Bloomberg Barclays
Index) was the Trust's benchmark from inception through 9/30/16, when the
Bloomberg Barclays Index ceased. As of 10/1/16, the Trust's benchmark is
the S&P/LSTA Leveraged Loan Index (the S&P/LSTA Index). Both the Bloomberg
Barclays Index and the S&P/LSTA Index provide, or provided, broad and
comprehensive total return metrics of the U.S. universe of syndicated term
loans. Ten-year, five-year, and one-year "linked" benchmark returns shown
above represent the combination of the Bloomberg Barclays Index's returns
from 6/1/07 through 9/30/16, and the S&P/LSTA Index's returns from 10/1/16
through 5/31/17.
+ Value of $10,000 investment figures for the Bloomberg Barclays U.S. High
Yield Loans Index covers the period from May 2007 through September 30,
2016.
12 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
Schedule of Investments | 5/31/17 (unaudited)
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Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 130.9% of Net Assets*(a)
AUTOMOBILES & COMPONENTS -- 5.5%
Auto Parts & Equipment -- 4.5%
1,605,169 Allison Transmission, Inc., Term Loan B-3,
3.03%, 9/23/22 $ 1,622,526
1,540,000 American Axle & Manufacturing, Inc., Tranche B Term
Loan, 3.28%, 4/6/24 1,538,460
2,358,000 BBB Industries US Holdings, Inc., First Lien Initial Term
Loan, 6.045%, 11/3/21 2,386,709
1,100,809 Cooper-Standard Automotive, Inc., Additional Term B-1
Loan, 3.397%, 11/2/23 1,105,625
1,489,607 Electrical Components International, Inc., Term Loan,
5.897%, 5/28/21 1,501,710
1,667,768 Federal-Mogul Corp., Tranche C Term Loan, 4.75%,
4/15/21 1,672,632
400,000 Horizon Global Corp., 2017 Replacement Term Loan,
5.545%, 6/30/21 404,000
500,000 Innovative Xcessories & Services LLC, Term Loan,
5.75%, 11/29/22 505,625
1,335,149 TI Group Automotive Systems LLC, Initial US Term
Loan, 3.795%, 6/30/22 1,345,162
2,028,079 Tower Automotive Holdings USA LLC, Initial Term
Loan, 3.75%, 3/7/24 2,031,460
-------------
$ 14,113,909
-------------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.7%
363,636 CH Hold Corp. (aka Caliber Collision), First Lien Initial
Term Loan, 4.045%, 2/1/24 $ 366,666
347,984 Inteva Products LLC, Term B Loan, 9.75%, 9/8/21 349,942
841,500 Octavius Corp. (Winnebago Industries), Tranche B Term
Loan, 5.572%, 11/8/23 850,441
466,667 Visteon Corp., Initial Term Loan, 3.334%, 3/24/24 470,313
-------------
$ 2,037,362
-------------------------------------------------------------------------------------------------------------
Tires & Rubber -- 0.3%
1,000,000 Goodyear Tire & Rubber Co., Second Lien Term Loan,
3.0%, 4/30/19 $ 1,009,792
-------------
Total Automobiles & Components $ 17,161,063
-------------------------------------------------------------------------------------------------------------
BANKS -- 0.1%
Thrifts & Mortgage Finance -- 0.1%
446,500 Ocwen Loan Servicing LLC, Restatement Effective Date
Term Loan, 6.0%, 12/7/20 $ 445,384
-------------
Total Banks $ 445,384
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 13
Schedule of Investments | 5/31/17 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 14.9%
Aerospace & Defense -- 5.3%
1,823,822 Accudyne Industries Borrower SCA/Accudyne
Industries LLC, Refinancing Term Loan,
4.147%, 12/13/19 $ 1,819,034
2,269,313(b) ADS Tactical, Inc., Term Loan, 8.545%, 12/31/22 2,269,313
1,726,856 Allion Science and Technology Corp., First Lien Term
Loan, 5.545%, 8/19/21 1,731,173
1,339,606 DAE Aviation Holdings, Inc., Initial Term Loan,
4.79%, 7/7/22 1,349,444
1,361,777 DigitalGlobe, Inc., Term Loan, 3.795%, 1/15/24 1,368,585
1,318,365 DynCorp International, Inc., Term Loan B2,
7.75%, 7/7/20 1,323,859
533,560 Engility Corp. (fka TASC, Inc.), Term B2 Loan,
4.75%, 8/14/23 538,007
245,010 IAP Worldwide Services, Inc., First Lien Term Loan,
8.0%, 7/18/19 240,110
497,494 Transdigm, Inc., Tranche F Term Loan, 4.045%, 6/9/23 499,048
1,838,250 Turbocombustor Technology, Inc., Initial Term Loan,
5.647%, 12/2/20 1,723,359
1,475,068 Vencore, Inc. (fka SI Organization, Inc.), First Lien Initial
Term Loan, 5.897%, 11/23/19 1,498,346
1,783,050 WP CPP Holdings LLC, First Lien Term B-3 Loan,
4.539%, 12/28/19 1,690,925
334,900 WP CPP Holdings LLC, Second Lien Term B-1 Loan,
8.922%, 4/30/21 307,271
-------------
$ 16,358,474
-------------------------------------------------------------------------------------------------------------
Building Products -- 2.2%
1,153,350 Armstrong World Industries, Inc., Term Loan B,
3.836%, 3/31/23 $ 1,159,117
1,709,293 Builders FirstSource, Inc., Refinancing Term Loan,
4.069%, 2/29/24 1,706,443
306,968 NCI Building Systems, Inc., Tranche B Term Loan,
4.0%, 6/24/22 308,273
1,312,649 Quikrete Holdings, Inc., First Lien Initial Loan,
3.795%, 11/15/23 1,318,665
1,680,075 Summit Materials LLC, Restatement Effective Date Term
Loan, 3.795%, 7/18/22 1,698,714
750,000 Unifrax Holding Co., Initial Dollar Term Loan, 4.9%, 4/4/24 752,578
-------------
$ 6,943,790
-------------------------------------------------------------------------------------------------------------
Construction Machinery & Heavy Trucks -- 1.9%
810,000(c) Clark Equipment Co. (aka Doosan Bobcat, Inc.),
Tranche B Term Loan, 5/18/24 $ 816,455
The accompanying notes are an integral part of these financial statements.
14 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Construction Machinery & Heavy Trucks -- (continued)
1,750,000 Commercial Vehicle Group, Inc., Term Loan B,
7.158%, 3/30/23 $ 1,763,125
1,595,700 Navistar, Inc., Tranche B Term Loan, 5.0%, 8/7/20 1,624,954
836,676 Terex Corp., US Term Loan, 3.54%, 1/31/24 842,777
940,385 Welbilt, Inc. (fka Manitowoc Foodservice, Inc.), Term B
Loan, 4.033%, 3/3/23 950,964
-------------
$ 5,998,275
-------------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 1.3%
1,956,081 Pelican Products, Inc., First Lien Term Loan,
5.397%, 4/10/20 $ 1,959,749
835,841 Southwire Company LLC, Initial Term Loan,
3.489%, 2/10/21 841,064
1,333,178 WireCo WorldGroup, Inc., First Lien Initial Term Loan B,
6.702%, 9/29/23 1,347,343
-------------
$ 4,148,156
-------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 2.2%
897,424 AVSC Holding Corp., First Lien New Term Loan,
4.67%, 4/29/24 $ 897,424
374,063 Culligan NewCo, Ltd., First Lien Tranche B-1 Term Loan,
5.0%, 12/13/23 378,738
1,268,999 DTI Holdco, Inc., Initial Term Loan, 6.421%, 10/2/23 1,248,114
1,235,255 Filtration Group Corp., First Lien Term Loan,
4.295%, 11/23/20 1,246,707
657,809 Gates Global LLC, Initial B-1 Dollar Term Loan,
4.408%, 4/1/24 661,458
500,000(c) Hyster-Yale Materials Holding, Inc., Term Loan B, 5/22/23 504,063
922,531(c) Milacron LLC, Term B Loan, 9/28/23 926,567
848,250 ProAmpac PG Borrower LLC, First Lien Initial Term Loan,
5.098%, 11/20/23 858,747
-------------
$ 6,721,818
-------------------------------------------------------------------------------------------------------------
Industrial Machinery -- 1.8%
188,575 Blount International, Inc., Initial Term Loan,
6.01%, 4/12/23 $ 191,757
485,955 Columbus McKinnon Corp., Initial Term Loan,
4.147%, 1/31/24 491,422
1,156,843 Gardner Denver, Inc., Initial Dollar Term Loan,
4.568%, 7/30/20 1,163,206
1,955,100 Mueller Water Products, Inc., Initial Term Loan,
3.279%, 11/25/21 1,976,280
1,723,361 NN, Inc., Tranche B Term Loan, 5.295%, 10/19/22 1,723,629
-------------
$ 5,546,294
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 15
Schedule of Investments | 5/31/17 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.2%
466,990 WESCO Distribution, Inc., Tranche B-1 Loan,
3.778%, 12/12/19 $ 468,596
-------------
Total Capital Goods $ 46,185,403
-------------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 4.4%
Diversified Support Services -- 0.7%
766,632 DH Publishing LP, Term B-5 Loan, 3.492%, 8/21/23 $ 769,330
458,933 KAR Auction Services, Inc., Term Loan B4,
3.313%, 3/11/21 462,855
884,805 Ryan LLC, Tranche B Term Loan, 6.795%, 8/7/20 882,040
-------------
$ 2,114,225
-------------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 2.1%
892,237 Advanced Disposal Services, Inc. (fka ADS Waste
Holdings, Inc.), Additional Term Loan, 3.7%, 11/10/23 $ 899,884
68,004 Granite Acquisition, Inc., First Lien Term B Loan,
5.147%, 12/17/21 68,307
549,013 Infiltrator Water Technologies LLC, Term B-1 Loan,
4.647%, 5/27/22 553,817
1,467,625 Safway Group Holding LLC, Initial Term Loan,
5.76%, 8/21/23 1,478,327
1,078,323 Waste Industries USA, Inc., Term B Loan, 3.795%, 2/27/20 1,085,625
574,806 Wastequip LLC, Term Loan, 5.545%, 8/9/19 577,201
1,733,093 WCA Waste Systems, Inc., Initial Term Loan,
3.749%, 8/11/23 1,740,405
-------------
$ 6,403,566
-------------------------------------------------------------------------------------------------------------
Human Resource & Employment Services -- 0.2%
524,584 On Assignment, Inc., Tranche B-2 Term Loan,
3.295%, 6/3/22 $ 529,283
-------------------------------------------------------------------------------------------------------------
Office Services & Supplies -- 0.2%
645,133 West Corp., Refinanced Term B-12 Loan, 3.281%, 6/17/23 $ 646,907
-------------------------------------------------------------------------------------------------------------
Security & Alarm Services -- 1.2%
931,126 Allied Universal Holdco LLC (fka USAGM Holdco LLC),
First Lien Initial Term Loan, 4.79%, 7/28/22 $ 936,945
1,284,695(c) GW Honos Security Corp. (Garda World Security Corp.),
Term Loan, 5/12/24 1,289,780
1,606,388 Prime Security Services Borrower LLC, First Lien 2016-2
Refinancing Term B-1 Loan, 4.294%, 5/2/22 1,621,878
-------------
$ 3,848,603
-------------
Total Commercial & Professional Services $ 13,542,584
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 2.2%
Homefurnishing Retail -- 0.9%
1,878,784 Serta Simmons Bedding LLC, First Lien Initial Term
Loan, 4.538%, 11/8/23 $ 1,889,353
950,000 Serta Simmons Bedding LLC, Second Lien Initial Term
Loan, 9.179%, 11/8/24 963,656
-------------
$ 2,853,009
-------------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 0.9%
754,015 Prestige Brands, Inc., Term B-4 Loan, 3.795%, 1/26/24 $ 760,770
2,040,707 Reynolds Group Holdings, Inc., Incremental US Term
Loan, 4.045%, 2/5/23 2,053,149
-------------
$ 2,813,919
-------------------------------------------------------------------------------------------------------------
Leisure Products -- 0.4%
1,000,000 Bass Pro Group LLC, Initial Term Loan, 6.147%, 12/15/23 $ 973,438
327,383 Bombardier Recreational Products, Inc., Term B Loan,
4.0%, 6/30/23 329,750
-------------
$ 1,303,188
-------------
Total Consumer Durables & Apparel $ 6,970,116
-------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 10.0%
Casinos & Gaming -- 1.5%
600,000 CityCenter Holdings LLC, Term B Loan, 3.499%, 4/18/24 $ 603,250
750,000 Eldorado Resorts, Inc., Term Loan, 3.243%, 4/17/24 749,298
2,764,689 Scientific Games International, Inc., Initial Term B-3
Loan, 5.062%, 10/1/21 2,809,903
480,738 Station Casinos LLC, Term B Facility Loan, 3.5%, 6/8/23 483,553
-------------
$ 4,646,004
-------------------------------------------------------------------------------------------------------------
Education Services -- 3.6%
3,387,925 Bright Horizons Family Solutions LLC (fka Bright
Horizons Family Solutions, Inc.), Term B Loan,
3.295%, 11/7/23 $ 3,421,100
1,827,207 Cengage Learning Acquisitions, Inc., 2016 Refinancing
Term Loan, 5.25%, 6/7/23 1,725,731
1,723,838 KUEHG Corp. (fka KC MergerSub, Inc.), Term B-2 Loan,
4.917%, 8/12/22 1,735,151
1,684,301 Laureate Education, Inc., Series 2024 Term Loan,
5.545%, 4/26/24 1,692,460
2,492,945 Nord Anglia Education Finance LLC, Initial Term Loan,
4.702%, 3/31/21 2,500,735
-------------
$ 11,075,177
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 17
Schedule of Investments | 5/31/17 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.5%
541,033 Hilton Worldwide Finance LLC, Series B-2 Term Loan,
3.024%, 10/25/23 $ 545,133
1,146,132 Sabre, Inc., 2017 Incremental Term Loan,
3.795%, 2/22/24 1,158,166
-------------
$ 1,703,299
-------------------------------------------------------------------------------------------------------------
Leisure Facilities -- 1.6%
850,000 Cedar Fair LP, US Term B Loan, 3.295%, 4/13/24 $ 859,775
1,822,083 Fitness International LLC, Term B Loan, 5.397%, 7/1/20 1,848,655
858,037 Life Time Fitness, Inc., 2017 Refinancing Term Loan,
4.045%, 6/10/22 862,021
1,286,450 Six Flags Theme Parks, Inc., Tranche B Term Loan,
3.291%, 6/30/22 1,300,521
-------------
$ 4,870,972
-------------------------------------------------------------------------------------------------------------
Restaurants -- 1.6%
1,494,396 1011778 BC Unlimited Liability Co. (New Red
Finance, Inc.) (aka Burger King/Tim Hortons), Term B-3
Loan, 3.309%, 2/16/24 $ 1,497,354
1,322,932 Landry's, Inc. (fka Landry's Restaurants, Inc.), Term
Loan B, 3.745%, 10/4/23 1,324,723
250,000 NPC International, Inc., First Lien Initial Term Loan,
4.51%, 4/19/24 252,188
1,950,000 Red Lobster Management LLC, First Lien Initial Term
Loan, 6.295%, 7/28/21 1,971,937
-------------
$ 5,046,202
-------------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 1.2%
2,000,000 Contellis Holdings LLC, First Lien Term B Loan,
6.155%, 4/21/24 $ 1,981,250
1,396,750 Creative Artists Agency LLC, Refinancing Term Loan,
4.5%, 2/15/24 1,413,554
377,906 Weight Watchers International, Inc., Initial Tranche B-2
Term Loan, 4.343%, 4/2/20 366,451
-------------
$ 3,761,255
-------------
Total Consumer Services $ 31,102,909
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.2%
Asset Management & Custody Banks -- 0.5%
1,487,436 Vistra Group, Ltd., USD Term Loan, 4.794%, 10/26/22 $ 1,468,843
-------------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.4%
1,358,021 Trans Union LLC, Term B-2 Loan, 3.545%, 4/9/23 $ 1,373,299
-------------------------------------------------------------------------------------------------------------
Diversified Capital Markets -- 0.3%
500,000 Freedom Mortgage Corp., Initial Term Loan,
6.862%, 2/23/22 $ 507,812
The accompanying notes are an integral part of these financial statements.
18 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Diversified Capital Markets -- (continued)
342,128 Outfront Media Capital LLC (Outfront Media Capital
Corp.), Term Loan, 3.251%, 3/18/24 $ 344,872
-------------
$ 852,684
-------------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.7%
1,176,692 Duff & Phelps Corp., Initial Term Loan, 4.897%, 4/23/20 $ 1,187,724
633,706 Guggenheim Partners Investment Management
Holdings LLC, Term B Loan, 3.779%, 7/21/23 639,350
500,000 LPL Holdings, Inc., Initial Term Loan, 3.765%, 3/11/24 503,359
-------------
$ 2,330,433
-------------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 1.4%
1,083,375 AWAS Finance Luxembourg 2012 SA, Term Loan,
3.91%, 7/16/18 $ 1,086,761
324,373 Delos Finance S.a.r.l., Term Loan, 3.397%, 10/6/23 327,887
746,290 Fly Funding II S.a.r.l., Term Loan, 3.29%, 2/9/23 747,378
1,973,125 Livingston International, Inc., First Lien Initial Term B-1
Loan, 5.5%, 4/18/19 1,945,994
300,000 Summit Midstream Partners Holdings LLC, Term Loan
Credit Facility, 7.045%, 5/13/22 306,000
-------------
$ 4,414,020
-------------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.9%
1,226,812 DBRS, Ltd., Initial Term Loan, 6.452%, 3/4/22 $ 1,193,075
1,500,000 MHVC Acquisition Corp., First Lien Initial Term Loan,
6.3%, 4/29/24 1,511,250
-------------
$ 2,704,325
-------------
Total Diversified Financials $ 13,143,604
-------------------------------------------------------------------------------------------------------------
ENERGY -- 3.8%
Oil & Gas Drilling -- 1.1%
1,000,000 Gavilan Resources LLC, Second Lien Initial Term
Loan, 7.0%, 3/1/24 $ 995,300
2,600,000 Jonah Energy LLC, Second Lien Initial Term Loan,
7.545%, 5/12/21 2,554,500
-------------
$ 3,549,800
-------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.4%
1,634,585 FR Dixie Acquisition Corp., Term Loan, 5.952%, 12/18/20 $ 1,201,420
-------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.8%
1,000,000 California Resources Corp., Term Loan,
11.375%, 12/31/21 $ 1,108,750
1,000,000 Chesapeake Energy Corp., Term Loan Class A,
8.686%, 8/23/21 1,082,917
250,000 MEG Energy Corp., Initial Term Loan, 4.601%, 12/31/23 249,883
-------------
$ 2,441,550
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 19
Schedule of Investments | 5/31/17 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.5%
894,011 Pilot Travel Centers LLC, Initial Tranche B Term Loan,
3.045%, 5/25/23 $ 902,728
562,890 Western Refining, Inc., Term Loan 2013, 7.25%, 11/12/20 563,946
-------------
$ 1,466,674
-------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.0%
1,000,000 Energy Transfer Equity LP, Term Loan, 3.745%, 2/2/24 $ 1,001,250
2,100,961 Gulf Finance LLC, Tranche B Term Loan, 6.3%, 8/25/23 2,027,427
-------------
$ 3,028,677
-------------
Total Energy $ 11,688,121
-------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 1.8%
Food Distributors -- 1.2%
894,505 CTI Foods Holding Co., LLC, First Lien Term Loan,
4.65%, 6/29/20 $ 867,670
1,000,000 CTI Foods Holding Co., LLC, Second Lien Term Loan,
8.4%, 6/28/21 855,000
2,053,879 Mill US Acquisition, First Lien Term Loan, 5.15%, 7/3/20 1,933,214
-------------
$ 3,655,884
-------------------------------------------------------------------------------------------------------------
Food Retail -- 0.6%
1,385,902 Albertson's LLC, 2016-1 Term B-6 Loan, 4.45%, 6/22/23 $ 1,394,460
488,794 Packers Holdings LLC, Term Loan, 4.805%, 12/2/21 493,682
-------------
$ 1,888,142
-------------
Total Food & Staples Retailing $ 5,544,026
-------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.2%
Packaged Foods & Meats -- 4.2%
246,941 AdvancePierre Foods, Inc., Term Loan, 6.0%, 6/2/23 $ 247,507
1,641,750 Amplify Snack Brands, Inc., Term Loan, 6.5%, 9/2/23 1,632,174
1,000,000 Del Monte Foods, Inc., Second Lien Initial Term Loan,
8.26%, 8/18/21 695,000
1,236,551 Dole Food Co., Inc., Tranche B Term Loan, 4.116%, 4/6/24 1,243,285
1,492,500 Give and Go Prepared Foods Corp., First Lien Term Loan,
6.647%, 7/29/23 1,504,937
1,697,013 Hearthside Group Holdings LLC, 2017 Replacement Term
Loan, 4.045%, 6/2/21 1,712,569
990,000 JBS USA Lux SA (fka JBS USA LLC), Initial Term Loan,
3.495%, 10/30/22 978,244
1,940,937 Pinnacle Foods Finance LLC, Initial Term Loan,
2.995%, 2/2/24 1,953,073
1,500,000 Post Holdings, Inc., Series A Incremental Term Loan,
3.448%, 5/24/24 1,509,910
1,462,500 Shearer's Foods LLC, First Lien Term Loan,
5.084%, 6/30/21 1,460,976
-------------
Total Food, Beverage & Tobacco $ 12,937,675
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 13.9%
Health Care Equipment -- 0.4%
1,250,000 Cidron Healthcare, Ltd. (aka ConvaTec, Inc.), Term B
Loan, 3.545%, 10/25/23 $ 1,268,750
-------------------------------------------------------------------------------------------------------------
Health Care Facilities -- 3.8%
419,688 Acadia Healthcare Co., Inc., Tranche B-2 Term Loan,
3.745%, 2/16/23 $ 424,252
794,000 ATI Holdings Acquisition, Inc., First Lien Initial Term
Loan, 5.65%, 5/10/23 803,760
253,548 CHS/Community Health Systems, Inc., Incremental
2019 Term G Loan, 3.75%, 12/31/19 254,004
966,524 CHS/Community Health Systems, Inc., Incremental
2021 Term H Loan, 4.0%, 1/27/21 967,736
1,391,252 Iasis Healthcare LLC, Term B-3 Loan, 5.25%, 2/17/21 1,403,861
1,972,993 Kindred Healthcare, Inc., Incremental Term Loan,
4.688%, 4/9/21 1,984,914
1,985,000 Prospect Medical Holdings, Inc., Term Loan,
7.063%, 6/30/22 2,020,928
1,047,602 Quorum Health Corp., Term Loan, 7.795%, 4/29/22 1,048,912
Select Medical Corp., Tranche B Term Loan, 4.65%, 3/6/24 1,424,465
1,410,652
1,319,779 Vizient, Inc., Term B-3 Loan, 4.545%, 2/13/23 1,338,477
-------------
$ 11,671,309
-------------------------------------------------------------------------------------------------------------
Health Care Services -- 6.6%
972,500 Aegis Toxicology Sciences Corp., First Lien Initial Term
Loan, 5.657%, 2/24/21 $ 969,259
1,101,457 Alliance Healthcare Services, Inc., Initial Term Loan,
4.267%, 6/3/19 1,102,145
263,611 Ardent Legacy Acquisitions, Inc. (Ardent Mergeco LLC),
Term Loan, 6.647%, 8/4/21 265,423
591,979(d) Bioscrip, Inc., Initial Term B Loan, 9.25% (2.75% PIK
6.5% cash), 7/31/20 585,319
355,187(d) Bioscrip, Inc., Term Loan, 9.25% (2.75% PIK 6.5%
cash), 7/31/20 351,191
1,452,682(d) CCS Medical, Inc., Second Lien Term Loan, 17.0%
(13.0% PIK 4.0% cash), 5/1/18 21,790
864,537 DaVita HealthCare Partners, Inc., Term Loan B2,
3.795%, 6/24/21 872,719
1,622,152 Envision Healthcare Corp. (fka Emergency Medical
Services Corp.), Initial Term Loan, 4.15%, 12/1/23 1,641,162
895,506 ExamWorks Group, Inc. (fka Gold Merger Co., Inc.),
Term B-1 Loan, 4.294%, 7/27/23 903,622
1,458,750 Genex Holdings, Inc., First Lien Term B Loan,
5.295%, 5/28/21 1,456,015
1,293,500 Genoa Healthcare Co., LLC, First Lien Initial Term
Loan, 4.897%, 10/30/23 1,301,423
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 21
Schedule of Investments | 5/31/17 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Health Care Services -- (continued)
100,000 Genoa Healthcare Co., LLC, Second Lien Initial Term
Loan, 9.147%, 10/28/24 $ 101,167
735,088 Global Healthcare Exchange LLC, Initial Term Loan,
5.295%, 8/15/22 746,115
1,479,968 HC Group Holdings III, Inc., First Lien Initial Term Loan,
6.045%, 4/7/22 1,467,019
897,750 Inventiv Group Holdings, Inc., Initial Term Loan,
4.952%, 11/9/23 903,761
1,110,443 Jaguar Holding Co. I (aka Pharmaceutical Product
Development, Inc.), Term Loan, 3.794%, 8/18/22 1,113,757
491,460 MPH Acquisition Holdings LLC, Initial Term Loan,
4.897%, 6/7/23 494,531
1,234,325 National Mentor Holdings, Inc., Tranche B Term Loan,
4.147%, 1/31/21 1,240,112
349,333 National Surgical Hospitals, Inc., Term Loan,
4.545%, 6/1/22 350,861
1,315,561 nThrive, Inc. (fka Precyse Acquisition Corp.), Additional
Term B-2 Loan, 5.545%, 10/20/22 1,321,865
930,677 NVA Holdings, Inc., First Lien Term B-2 Loan,
4.647%, 8/14/21 941,147
500,000 Team Health Holdings, Inc., Initial Term Loan,
3.795%, 2/6/24 499,125
1,774,423 US Renal Care, Inc., First Lien Initial Term Loan,
5.397%, 12/30/22 1,736,051
-------------
$ 20,385,579
-------------------------------------------------------------------------------------------------------------
Health Care Supplies -- 1.7%
1,135,511 Alere, Inc., Term Loan B, 4.3%, 6/20/22 $ 1,140,213
1,229,206 Greatbatch, Ltd., New Term B Loan, 4.51%, 10/27/22 1,239,808
559,300 Halyard Health, Inc., Term Loan, 3.795%, 11/1/21 566,991
675,000 Kinetic Concepts, Inc., Dollar Term Loan, 4.397%, 2/2/24 669,797
1,817,375 Sterigenics-Nordion Holdings LLC, Incremental Term
Loan, 4.15%, 5/15/22 1,810,559
-------------
$ 5,427,368
-------------------------------------------------------------------------------------------------------------
Health Care Technology -- 1.2%
1,586,158 Change Healthcare Holdings, Inc. (fka Emdeon, Inc.),
Closing Date Term Loan, 3/1/24 $ 1,593,097
1,125,775(b) Medical Card System, Inc., Term Loan, 1.5%, 5/31/19 731,754
712,219 MJ Acquisition Corp., Term Loan, 4.061%, 6/1/22 716,439
648,375 Press Ganey Holdings, Inc., Initial Term Loan,
4.295%, 10/23/23 650,604
-------------
$ 3,691,894
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.2%
349,456(e) MMM Holdings, Inc., MMM Term Loan, 10.25%, 6/30/19 $ 342,466
254,053(e) MSO of Puerto Rico, Inc., Term Loan, 10.25%, 6/30/19 248,972
-------------
$ 591,438
-------------
Total Health Care Equipment & Services $ 43,036,338
-------------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.4%
Household Products -- 1.3%
945,000 Redbox Automated Retail LLC, First Lien Term B Loan,
8.545%, 9/27/21 $ 949,725
965,802 Spectrum Brands, Inc., 2017 Refinanced USD Term
Loan, 3.174%, 6/23/22 972,986
73,211 Wash Multifamily Parent, Inc., First Lien Initial Canadian
Term Loan, 4.295%, 5/16/22 73,211
418,038 Wash Multifamily Parent, Inc., First Lien Initial US Term
Loan, 4.25%, 5/16/22 418,038
1,500,000 WKI Holding Co., Inc., Initial Term Loan, 5.17%, 5/1/24 1,522,500
-------------
$ 3,936,460
-------------------------------------------------------------------------------------------------------------
Personal Products -- 1.1%
498,727 Atrium Innovations, Inc., First Lien Initial Tranche B-1
Term Loan, 4.647%, 2/15/21 $ 502,468
1,484,326 Nature's Bounty Co. (aka NBTY, Inc.), Dollar Term B-1
Loan, 4.647%, 5/5/23 1,486,367
1,539,437 Revlon Consumer Products Corp., Initial Term Loan B,
4.544%, 9/7/23 1,474,973
-------------
$ 3,463,808
-------------
Total Household & Personal Products $ 7,400,268
-------------------------------------------------------------------------------------------------------------
INSURANCE -- 2.7%
Insurance Brokers -- 0.3%
977,561 NFP Corp., Term B Loan, 4.647%, 1/8/24 $ 986,359
-------------------------------------------------------------------------------------------------------------
Life & Health Insurance -- 0.5%
1,629,845 Integro, Ltd., Initial Term Loan, 6.75%, 10/31/22 $ 1,637,994
-------------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.2%
657,493 Alliant Holdings I LLC, Term Loan B, 4.417%, 8/12/22 $ 660,548
-------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 1.7%
850,000 Acrisure LLC, First Lien Term B Loan, 6.147%, 11/22/23 $ 859,430
500,000 Confie Seguros Holding II Co., Second Lien Term Loan,
11.0%, 5/8/19 496,875
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 23
Schedule of Investments | 5/31/17 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- (continued)
2,397,372 Confie Seguros Holding II Co., Term B Loan,
6.545%, 4/19/22 $ 2,376,395
1,400,000(c) USI, Inc. (fka Compass Investors, Inc.), Initial Term
Loan, 5/16/24 1,397,900
-------------
$ 5,130,600
-------------
Total Insurance $ 8,415,501
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 15.4%
Commodity Chemicals -- 0.4%
1,340,571 Tronox Pigments (Netherlands) BV, Closing Date Term
Loan, 4.647%, 3/19/20 $ 1,352,555
-------------------------------------------------------------------------------------------------------------
Construction Materials -- 1.6%
1,003,688 84 Lumber Co., Initial Term Loan, 6.779%, 10/25/23 $ 1,017,802
1,244,997 American Bath Group LLC, First Lien Replacement Term
Loan, 6.397%, 9/30/23 1,262,116
500,000 American Builders & Contractors Supply Co., Inc.,
Additional Term B-1 Loan, 3.545%, 10/31/23 503,195
500,000 Associated Asphalt Partners LLC, Tranche B Term Loan,
6.295%, 4/5/24 505,938
230,169 CeramTec Service GmbH (CeramTec Acquisition Corp.),
Dollar Term B-3 Loan, 3.952%, 8/30/20 232,686
756,393 CeramTec Service GmbH (CeramTec Acquisition Corp.),
Initial Dollar Term B-1 Loan, 3.952%, 8/30/20 764,666
91,012 CeramTec Service GmbH (CeramTec Acquisition Corp.),
Initial Dollar Term B-2 Loan, 3.952%, 8/30/20 92,007
585,000 Penn Engineering & Manufacturing Corp., Incremental
Tranche B Term Loan, 4.033%, 8/27/21 588,656
-------------
$ 4,967,066
-------------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 3.7%
823,723 Allnex (Luxembourg) & Cy SCA (fka AI Chem & Cy SCA),
Tranche B-2 Term Loan, 4.406%, 9/13/23 $ 825,783
620,584 Allnex (Luxembourg) & Cy SCA (fka AI Chem & Cy SCA),
Tranche B-3 Term Loan, 4.406%, 9/13/23 622,135
1,266,246 Axalta Coating Systems Dutch Holding B BV & Axalta
Coating Systems US Holdings, Inc., Term B-1 Dollar
Loan, 3.647%, 2/1/23 1,276,614
1,266,246(c) Axalta Coating Systems Dutch Holding B BV,
Incremental Term Loan, 6/21/24 1,274,002
1,220,846 Azelis Finance SA (Azelis US Holdings, Inc.), First Lien
Dollar Term Loan, 5.397%, 12/16/22 1,233,564
1,687,271 Nexeo Solutions LLC, Term B Loan, 4.871%, 6/9/23 1,709,680
The accompanying notes are an integral part of these financial statements.
24 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Diversified Chemicals -- (continued)
569,112 Orion Engineered Carbons GmbH (OEC Finance US
LLC), Initial Dollar Term Loan, 3.65%, 7/25/21 $ 571,957
609,878 Plaskolite LLC, First Lien Term Loan, 5.147%, 11/3/22 614,453
179,310 Royal Holdings, Inc., Second Lien Initial Term Loan,
8.647%, 6/19/23 179,759
1,485,698 Tata Chemicals North America, Term Loan,
3.938%, 8/7/20 1,492,198
1,807,532 Univar USA, Inc., Term B-2 Loan, 3.795%, 7/1/22 1,816,344
-------------
$ 11,616,489
-------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.4%
1,741,250 Global Brass and Copper, Inc., Initial Term Loan,
5.313%, 7/18/23 $ 1,765,149
970,000 Hi-Crush Partners LP, Advance, 4.897%, 4/28/21 949,387
500,000 Oxbow Carbon LLC (Oxbow Calcining LLC), Tranche B
Term Loan, 4.545%, 1/17/20 506,250
990,413 US Silica Co., Term Loan, 4.188%, 7/23/20 991,651
-------------
$ 4,212,437
-------------------------------------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 0.6%
1,719,375 Methanol Holdings (Trinidad), Ltd. (Methanol Holdings
(Delaware) LLC), Initial Term Loan, 4.545%, 6/30/22 $ 1,720,988
-------------------------------------------------------------------------------------------------------------
Forest Products -- 0.3%
1,019,875 Expera Specialty Solutions LLC, Term Loan B,
5.795%, 11/3/23 $ 1,026,886
-------------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 2.3%
1,250,000 Albea Beauty Holdings SA, Facility B, 4.756%, 4/22/24 $ 1,253,125
1,065,396 Berry Global Group, Inc. (fka Berry Plastics Corp.),
Term I Loan, 3.281%, 10/1/22 1,074,519
959,006 BWay Holding Co., Initial Term Loan, 4.245%, 4/3/24 958,492
166,235 Kleopatra Holdings 2 SCA, Initial German Borrower
Dollar Term Loan, 4.397%, 4/28/20 167,690
388,991 Kleopatra Holdings 2 SCA, Initial US Dollar Term Loan,
4.397%, 4/28/20 392,395
1,359,335 Tank Holding Corp., Initial Term Loan, 5.25%, 3/16/22 1,365,846
1,915,875 Tekni-Plex, Inc., USD Term Loan, 4.545%, 6/1/22 1,921,623
-------------
$ 7,133,690
-------------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.9%
1,530,839 Caraustar Industries, Inc., Refinancing Term Loan,
6.647%, 3/14/22 $ 1,540,886
1,165,500 Onex Wizard Acquisition Co. I S.a.r.l. (aka SIG
Combibloc Group), Term Loan, 4.045%, 3/11/22 1,174,241
-------------
$ 2,715,127
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 25
Schedule of Investments | 5/31/17 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Paper Products -- 0.8%
781,934 Appvion, Inc., Term Commitment, 7.75%, 6/28/19 $ 763,363
944,017 Exopack Holdings SA, USD Term Loan, 4.647%, 5/8/19 938,264
311,111 Ranpak Corp., Second Lien Initial Term Loan,
8.25%, 10/3/22 309,556
570,495 Ranpak Corp., Tranche B-1 USD Term Loan,
4.295%, 10/1/21 572,634
-------------
$ 2,583,817
-------------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 1.8%
1,465,677 Ferro Corp., US Dollar Term Loan, 3.536%, 2/14/24 $ 1,477,890
39,910 Huntsman International LLC, 2015 Extended Term B
Dollar Loan, 4.045%, 4/19/19 40,159
1,175,739 MacDermid, Inc. (Platform Specialty Products Corp.),
Tranche B-6 Term Loan, 4.045%, 6/7/23 1,185,292
1,588,000 Omnova Solutions, Inc., Term B-2 Loan, 5.295%, 8/25/23 1,603,880
1,355,355 PQ Corp., First Amendment Tranche B-1 Term Loan,
5.295%, 11/4/22 1,371,580
-------------
$ 5,678,801
-------------------------------------------------------------------------------------------------------------
Steel -- 1.6%
1,975,283 Atkore International, Inc., First Lien Initial Incremental
Term Loan, 4.15%, 12/22/23 $ 1,995,447
894,775 TMS International Corp., Term B Loan, 4.672%, 10/16/20 904,841
1,963,703 Zekelman Industries, Inc. (fka JMC Steel Group, Inc.),
Term Loan, 4.656%, 6/14/21 1,989,477
-------------
$ 4,889,765
-------------
Total Materials $ 47,897,621
-------------------------------------------------------------------------------------------------------------
MEDIA -- 11.3%
Advertising -- 1.0%
1,194,000 CB Poly Investments LLC, First Lien Closing Date Term
Loan, 6.295%, 8/16/23 $ 1,194,000
611,200 Checkout Holding Corp., First Lien Term B Loan,
4.545%, 4/9/21 540,912
1,962,875 Crossmark Holdings, Inc., First Lien Term Loan,
4.647%, 12/20/19 1,436,579
-------------
$ 3,171,491
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Broadcasting -- 4.2%
764,106 A-L Parent LLC (aka Learfield Communications), First
Lien Initial Term Loan, 4.3%, 12/1/23 $ 774,134
1,054,245 Beasley Mezzanine Holdings LLC, Initial Term Loan,
7.0%, 11/1/23 1,069,840
195,000(c) CBS Radio, Inc., Term B-1 Loan, 10/17/23 196,503
500,000 CSC Holdings LLC (fka CSC Holdings, Inc. (Cablevision)),
March 2017 Refinancing Term Loan, 3.249%, 7/17/25 500,390
377,943 Entercom Radio LLC, Term B Loan, 4.55%, 11/1/23 380,400
531,420 Gray Television, Inc., Term B-2 Loan, 3.495%, 2/7/24 536,801
727,153 Hubbard Radio LLC, Term Loan, 4.3%, 5/27/22 730,334
1,848,000 MCC Iowa LLC, Tranche H Term Loan, 3.45%, 1/29/21 1,861,860
2,632,500 MediArena Acquisition BV (fka AP NMT Acquisition BV),
First Lien Dollar Term B Loan, 6.898%, 8/13/21 2,346,216
1,982,630 Sinclair Television Group, Inc., Tranche B Term Loan,
3.3%, 1/3/24 1,988,197
488,842 Townsquare Media, Inc., Additional Term B Loan,
4.045%, 4/1/22 491,795
2,116,710 Univision Communications, Inc., 2017 Replacement
Repriced First Lien Term Loan, 3.795%, 3/15/24 2,102,158
-------------
$ 12,978,628
-------------------------------------------------------------------------------------------------------------
Cable & Satellite -- 1.8%
350,000 Cable One, Inc., Incremental Term B-1 Loan,
3.43%, 5/1/24 $ 353,063
1,968,313 Charter Communications Operating LLC (aka CCO
Safari LLC), Term F-1 Loan, 3.05%, 1/3/21 1,981,980
425,000 Telenet Financing USD LLC, Term Loan AI Facility,
3.739%, 6/30/25 427,302
1,075,000 UPC Financing Partnership , Facility AP, 3.739%, 4/15/25 1,081,047
1,117,713 Virgin Media Bristol LLC, Facility I, 3.739%, 1/31/25 1,123,768
721,375 WideOpenWest Finance LLC, New Term B Loan,
4.701%, 8/18/23 726,425
-------------
$ 5,693,585
-------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 2.2%
1,140,540 AMC Entertainment, Inc., Initial Term Loan,
3.249%, 12/15/22 $ 1,148,262
1,233,102 CDS US Intermediate Holdings, Inc. (Cirque Du Soleil
Canada, Inc.), First Lien Initial Term Loan,
5.147%, 7/8/22 1,247,128
1,000,000 CDS US Intermediate Holdings, Inc. (Cirque Du Soleil
Canada, Inc.), Second Lien Initial Term Loan,
9.397%, 7/10/23 1,002,500
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 27
Schedule of Investments | 5/31/17 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- (continued)
411,765 Kasima LLC, Term Loan, 3.65%, 5/17/21 $ 415,025
476,818 Live Nation Entertainment, Inc., Term B-2 Loan,
3.563%, 10/31/23 480,466
1,058,750 Seminole Hard Rock Entertainment, Inc., Term Loan,
3.897%, 5/14/20 1,064,485
1,275,132 WMG Acquisition Corp., Tranche D Term Loan,
3.51%, 11/1/23 1,278,918
-------------
$ 6,636,784
-------------------------------------------------------------------------------------------------------------
Publishing -- 2.1%
861,424 Houghton Mifflin Holdings, Inc., Term Loan,
4.044%, 5/28/21 $ 816,917
89,656 Lee Enterprises, Inc., First Lien Term Loan,
7.295%, 3/31/19 90,104
2,977,500 McGraw-Hill Global Education Holdings LLC, First Lien
Term B Loan, 5.045%, 5/4/22 2,949,214
746,720 Quincy Newspapers, Inc., Term Loan B, 7.0%, 11/2/22 754,654
1,244,224 Springer SBM Two GmbH, Initial Term B9 Loan,
4.622%, 8/14/20 1,249,861
600,000 Trader Corp., First Lien 2017 Refinancing Term Loan,
4.29%, 9/28/23 602,250
-------------
$ 6,463,000
-------------
Total Media $ 34,943,488
-------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 3.1%
Biotechnology -- 0.4%
900,154 Alkermes, Inc., 2021 Term Loan, 3.75%, 9/25/21 $ 905,780
450,000 Lantheus Medical Imaging, Inc., Initial Term Loan,
5.545%, 6/30/22 452,719
-------------
$ 1,358,499
-------------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.8%
1,970,000 Albany Molecular Research, Inc., Term Loan B,
5.906%, 7/16/21 $ 1,985,596
433,308 Catalent Pharma Solutions, Inc. (fka Cardinal Health
409, Inc.), Dollar Term Loan, 3.795%, 5/20/21 438,679
-------------
$ 2,424,275
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 1.9%
435,434 Concordia Healthcare Corp., Initial Dollar Term Loan,
5.279%, 10/21/21 $ 318,567
1,610,000 Endo Luxembourg Finance Company I S.a.r.l., Initial
Term Loan, 5.313%, 4/29/24 1,630,629
900,000 Horizon Pharma, Inc., Term Loan B, 4.75%, 3/22/24 903,094
609,794 Mallinckrodt International Finance SA, 2017 Term B
Loan, 3.897%, 9/24/24 610,442
1,045,438 Patheon Holdings I BV (fka DPX Holdings BV),
Tranche B Dollar Term Loan, 4.406%, 4/22/24 1,050,556
1,188,691 Valeant Pharmaceuticals International, Inc., Series F
Tranche B Term Loan, 5.75%, 4/1/22 1,209,413
-------------
$ 5,722,701
-------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 9,505,475
-------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 2.7%
Diversified REIT -- 0.2%
447,753 ESH Hospitality, Inc., Repriced Term Loan,
3.545%, 8/30/23 $ 451,231
-------------------------------------------------------------------------------------------------------------
Hotel & Resort REIT -- 0.4%
1,351,350 MGM Growth Properties Operating Partnership LP,
Term B Loan, 3.295%, 4/25/23 $ 1,360,640
-------------------------------------------------------------------------------------------------------------
Real Estate Services -- 0.8%
1,464,493 Altisource Solutions S.a.r.l, Term Loan B, 4.5%, 12/9/20 $ 1,237,497
1,178,359 GCA Services Group, Inc., Term Loan, 5.75%, 3/1/23 1,190,879
-------------
$ 2,428,376
-------------------------------------------------------------------------------------------------------------
Retail REITs -- 0.7%
1,992,458 DTZ US Borrower LLC, First Lien Initial Term Loan,
4.25%, 11/4/21 $ 2,002,670
85,106 DTZ US Borrower LLC, Second Lien Initial Term Loan,
9.422%, 11/4/22 85,399
-------------
$ 2,088,069
-------------------------------------------------------------------------------------------------------------
Specialized REIT -- 0.6%
1,965,137 Communications Sales & Leasing, Inc. (CSL Capital
LLC), Shortfall Term Loan, 4.045%, 10/24/22 $ 1,971,514
-------------
Total Real Estate $ 8,299,830
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 29
Schedule of Investments | 5/31/17 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
RETAILING -- 2.5%
Apparel Retail -- 0.5%
518,433 Hudson's Bay Co., Term Loan B, 4.294%, 9/30/22 $ 499,856
1,216,820 Men's Wearhouse, Inc., Term Loan B, 4.576%, 6/18/21 1,159,021
-------------
$ 1,658,877
-------------------------------------------------------------------------------------------------------------
Automotive Retail -- 0.5%
1,103,565 CWGS Group LLC, Term Loan, 4.743%, 11/8/23 $ 1,111,842
561,712 Hertz Corp., Tranche Term B-1 Loan, 3.8%, 6/30/23 560,703
-------------
$ 1,672,545
-------------------------------------------------------------------------------------------------------------
Department Stores -- 0.2%
500,000 J.C. Penney Corp., Inc., Term Loan, 5.45%, 6/23/23 $ 495,000
-------------------------------------------------------------------------------------------------------------
Home Improvement Retail -- 0.4%
1,418,497 Apex Tool Group LLC, Term Loan, 4.5%, 1/31/20 $ 1,387,763
-------------------------------------------------------------------------------------------------------------
Specialty Stores -- 0.9%
728,596 Party City Holdings, Inc., 2016 Replacement Term
Loan, 3.75%, 8/19/22 $ 729,963
2,059,492 PetSmart, Inc., Tranche B-2 Loan, 4.01%, 3/11/22 1,984,407
-------------
$ 2,714,370
-------------
Total Retailing $ 7,928,555
-------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 1.4%
Semiconductor Equipment -- 0.3%
697,168 Entegris, Inc., New Tranche B Term Loan,
3.295%, 4/30/21 $ 703,051
350,000(c) MKS Instruments, Inc., Tranche B-2 Term Loan, 5/1/23 353,828
-------------
$ 1,056,879
-------------------------------------------------------------------------------------------------------------
Semiconductors -- 1.1%
500,000(c) Lumileds Holding BV, Term Loan B, 3/15/24 $ 508,125
1,729,269 MACOM Technology Solutions Holdings, Inc. (fka
M/A-COM Technology Solutions Holdings, Inc.), Initial
Term Loan, 3.428%, 5/17/24 1,729,270
250,000 Micron Technology, Inc., Term Loan, 3.55%, 4/26/22 252,872
303,616 Microsemi Corp., Term B Loan, 3.326%, 1/15/23 305,419
625,461 ON Semiconductor Corp., 2017 New Replacement
Term Loan, 3.295%, 3/31/23 629,213
-------------
$ 3,424,899
-------------
Total Semiconductors & Semiconductor Equipment $ 4,481,778
-------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 9.4%
Application Software -- 2.5%
934,864 Applied Systems, Inc., First Lien Term Loan,
4.397%, 1/25/21 $ 942,070
The accompanying notes are an integral part of these financial statements.
30 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Application Software -- (continued)
972,794 Applied Systems, Inc., Second Lien Term Loan,
7.647%, 1/24/22 $ 982,928
598,540 Greeneden US Holdings I LLC, Tranche B-1 Dollar Term
Loan, 5.158%, 12/1/23 603,553
766,746 Infor (US), Inc. (fka Lawson Software, Inc.), Tranche B-6
Term Loan, 3.897%, 2/1/22 765,514
511,585 Quest Software US Holdings, Inc., First Lien Initial Term
Loan, 7.0%, 10/31/22 521,443
1,714,134 STG-Fairway Acquisitions, Inc., First Lien Term Loan,
6.397%, 6/30/22 1,568,433
1,200,000 Synchronoss Technologies, Inc., Initial Term Loan,
4.082%, 1/19/24 1,132,800
1,397,490 Verint Systems, Inc., Tranche B Incremental Term Loan,
3.831%, 9/6/19 1,408,670
-------------
$ 7,925,411
-------------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 1.3%
299,239 Black Knight InfoServ LLC, Term B Loan, 3.313%, 5/27/22 $ 301,483
1,603,336 First Data Corp., 2022C New Dollar Term Loan,
4.029%, 7/8/22 1,615,503
1,225,542 First Data Corp., 2024 New Dollar Term Loan,
3.529%, 4/26/24 1,233,738
744,375 WEX, Inc., Term B Loan, 4.545%, 6/30/23 752,218
-------------
$ 3,902,942
-------------------------------------------------------------------------------------------------------------
Home Entertainment Software -- 0.4%
1,241,064 MA FinanceCo., LLC (aka Micro Focus International
Plc), Tranche B-2 Term Loan, 3.672%, 11/19/21 $ 1,243,391
97,000(c) MA FinanceCo., LLC (aka Micro Focus International
Plc), Tranche B-3 Term Loan, 4/29/24 96,927
-------------
$ 1,340,318
-------------------------------------------------------------------------------------------------------------
Internet Software & Services -- 1.5%
966,349 Avast Holding BV, Initial Refinancing Dollar Term Loan,
4.397%, 9/30/23 $ 977,825
690,000 Blucora, Inc., Term Loan B, 4.76%, 4/19/24 694,744
908,093 Match Group, Inc., Term B-1 Loan, 4.277%, 11/16/22 920,579
1,645,875 Rackspace Hosting, Inc., First Lien Term B Loan,
4.672%, 11/3/23 1,657,533
309,248 Zayo Group LLC (Zayo Capital, Inc.), 2017 Incremental
Refinancing B-2 Term Loan, 3.51%, 1/19/24 311,665
-------------
$ 4,562,346
-------------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 2.7%
776,585 Booz Allen Hamilton, Inc., New Refinancing Tranche B
Term Loan, 3.243%, 6/30/23 $ 783,866
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 31
Schedule of Investments | 5/31/17 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- (continued)
2,332,978 Evergreen Skills Lux S.a.r.l., First Lien Initial Term Loan,
5.795%, 4/28/21 $ 2,211,955
999,917 Evergreen Skills Lux S.a.r.l., Second Lien Initial Term
Loan, 9.295%, 4/28/22 838,368
1,000,000 Go Daddy Operating Co., LLC (GD Finance Co, Inc.),
Initial Term Loan, 3.545%, 2/15/24 1,004,375
473,813 Kronos, Inc., First Lien Incremental Term Loan,
4.68%, 11/1/23 478,730
700,000 Rocket Software, Inc., Second Lien Term Loan,
10.647%, 10/14/24 706,562
492,006 Science Applications International Corp., Incremental
Tranche B Loan, 3.688%, 5/4/22 496,388
1,354,375 Sitel Worldwide Corp., First Lien Term B-1 Loan,
6.688%, 9/18/21 1,354,799
500,000 Tempo Acquisition LLC, Initial Term Loan, 3.995%, 5/1/24 502,344
-------------
$ 8,377,387
-------------------------------------------------------------------------------------------------------------
Systems Software -- 1.0%
895,689 EZE Software Group LLC, First Lien Term B-2 Loan,
4.147, 4/6/20 $ 902,407
325,000 Ivanti Software, Inc. (fka LANDesk Group, Inc.), First
Lien Term Loan, 5.3%, 1/20/24 326,219
1,235,527 Rovi Solutions Corp., Term B Loan, 3.55%, 7/2/21 1,240,160
653,000(c) Seattle Spinco, Inc. (aka Micro Focus International
Plc), Term Loan B, 4/19/24 652,510
-------------
$ 3,121,296
-------------
Total Software & Services $ 29,229,700
-------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 2.7%
Communications Equipment -- 0.1%
438,500 Commscope, Inc., Tranche 5 Term Loan,
3.045%, 12/29/22 $ 440,967
-------------------------------------------------------------------------------------------------------------
Electronic Components -- 0.6%
653,600 Generac Power Systems, Inc., 2017 New Term Loan,
3.398%, 5/31/23 $ 656,460
1,200,500 Mirion Technologies (Finance) LLC (Mirion Technologies,
Inc.), First Lien Initial Term Loan, 5.897%, 3/31/22 1,203,751
-------------
$ 1,860,211
-------------------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.6%
1,836,958 4L Technologies, Inc. (fka Clover Holdings, Inc.), Term
Loan, 5.501%, 5/8/20 $ 1,761,183
-------------------------------------------------------------------------------------------------------------
Technology Distributors -- 0.6%
790,930 CDW LLC (aka AP Exhaust Acquisition LLC) (fka CDW
Corp.), Term Loan, 3.15%, 8/17/23 $ 796,592
The accompanying notes are an integral part of these financial statements.
32 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Technology Distributors -- (continued)
1,006,063 SS&C Technologies Holdings, Inc., 2017 Refinancing
New Term B-1 Loan, 3.295%, 7/8/22 $ 1,013,788
69,917 SS&C Technologies Holdings, Inc., 2017 Refinancing
New Term B-2 Loan, 3.295%, 7/8/22 70,453
-------------
$ 1,880,833
-------------------------------------------------------------------------------------------------------------
Technology Hardware, Storage & Peripherals -- 0.8%
1,243,758 Dell International LLC (EMC Corp.), New Term Loan B,
3.55%, 9/7/23 $ 1,252,252
332,500 Diebold Nixdorf, Inc. (fka Diebold, Inc.), New Dollar
Term B Loan, 3.75%, 11/6/23 334,647
794,010 Western Digital Corp., US Term B-2 Loan,
3.783%, 4/29/23 802,570
-------------
$ 2,389,469
-------------
Total Technology Hardware & Equipment $ 8,332,663
-------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 3.5%
Integrated Telecommunication Services -- 1.7%
1,750,000(c) CenturyLink, Inc., Term Loan B, 1/31/25 $ 1,747,657
1,224,365 GCI Holdings, Inc., New Term B Loan, 4.045%, 2/2/22 1,237,373
1,243,406 Level 3 Financing, Inc., Tranche B 2024 Term Loan,
3.26%, 2/22/24 1,246,359
306,529 Securus Technologies Holdings, Inc., First Lien Initial
Term Loan, 4.75%, 4/30/20 307,104
613,816 Windstream Services LLC (fka Windstream Corp.),
2016 Term Loan Tranche B-6, 5.01%, 3/29/21 619,570
-------------
$ 5,158,063
-------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.8%
2,520,163 Altice US Finance I Corp., March 2017 Refinancing
Term Loan, 3.283%, 7/28/25 $ 2,522,683
325,000(c) Digicel International Finance, Ltd., Term Loan, 5/10/24 328,250
720,343 Intelsat Jackson Holdings SA, Tranche B-2 Term Loan,
3.887%, 6/30/19 713,064
2,075,000 Sprint Communications, Inc., Initial Term Loan,
3.563%, 2/2/24 2,080,559
-------------
$ 5,644,556
-------------
Total Telecommunication Services $ 10,802,619
-------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 4.5%
Airlines -- 2.8%
840,000 Air Canada, Term Loan, 3.9%, 10/6/23 $ 845,425
2,910,656 American Airlines, Inc., 2017 Replacement Term Loan,
3.044%, 6/27/20 2,918,116
1,254,938 American Airlines, Inc., Class B Term Loan,
3.489%, 12/14/23 1,258,747
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 33
Schedule of Investments | 5/31/17 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Airlines -- (continued)
2,079,000 American Airlines, Inc., Replacement Class B Term
Loan, 3.544%, 4/28/23 $ 2,086,364
1,436,250 Delta Air Lines, Inc., 2014 Term B-1 Loan,
3.494%, 10/18/18 1,448,032
240,625 United Air Lines, Inc., Class B Term Loan, 3.422%, 4/1/24 241,978
-------------
$ 8,798,662
-------------------------------------------------------------------------------------------------------------
Marine -- 0.9%
1,635,719 Commercial Barge Line Co., Initial Term Loan,
9.795%, 11/12/20 $ 1,427,165
1,250,000 Navios Maritime Partners LP, Initial Term Loan,
6.13%, 9/14/20 1,246,875
-------------
$ 2,674,040
-------------------------------------------------------------------------------------------------------------
Trucking -- 0.8%
401,788 PODS LLC, Tranche B-2 Term Loan, 4.25%, 2/2/22 $ 405,178
774,000 Syncreon Global Finance, Inc., Term Loan,
5.295%, 10/28/20 681,120
1,550,302 YRC Worldwide, Inc., Initial Term Loan, 8.545%, 2/13/19 1,500,564
-------------
$ 2,586,862
-------------
Total Transportation $ 14,059,564
-------------------------------------------------------------------------------------------------------------
UTILITIES -- 4.3%
Electric Utilities -- 2.7%
1,296,084 APLH Holdings, Ltd., Partnership, Term Loan,
5.295%, 4/13/23 $ 1,300,945
2,165,625 Calpine Construction Finance Co., LP, Term B-1 Loan,
3.3%, 5/3/20 2,167,656
1,517,142 ExGen Renewables LLC, Term Loan, 5.41%, 2/8/21 1,526,151
239,552(c) Helix Gen Funding LLC, Term Loan, 5/31/24 240,775
1,720,688 Talen Energy Supply LLC, Term Loan B-1, 5.027%, 7/6/23 1,623,181
1,073,873 TPF II Power LLC (TPF II Convert Midco LLC), Term Loan,
5.045%, 10/2/23 1,069,847
102,143 Vistra Operations Co., LLC (fka Tex Operations Co., LLC),
Initial Term C Loan, 3.795%, 8/4/23 101,607
446,738 Vistra Operations Co., LLC (fka Tex Operations Co., LLC),
Initial Term Loan, 3.794%, 8/4/23 444,392
-------------
$ 8,474,554
-------------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy Traders -- 1.4%
1,630,950 Calpine Corp., Term Loan B, 3.9%, 1/15/24 $ 1,631,715
1,198,544 NRG Energy, Inc., Term Loan, 3.295%, 6/30/23 1,199,400
1,577,641 TerraForm AP Acquisition Holdings LLC, Term Loan,
5.647%, 6/27/22 1,595,390
-------------
$ 4,426,505
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.2%
420,472 EFS Cogen Holdings I LLC, Term B Advance,
4.65%, 6/28/23 $ 422,521
-------------
Total Utilities $ 13,323,580
-------------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE
LOAN INTERESTS
(Cost $408,011,097) $ 406,377,865
-------------------------------------------------------------------------------------------------------------
COLLATERALIZED LOAN OBLIGATIONS -- 0.5%
of Net Assets
BANKS -- 0.5%
Diversified Banks -- 0.3%
1,000,000(a) Primus, Ltd., Series 2007-2A, Class D, 3.558%,
7/15/21 (144A) $ 992,594
-------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.2%
700,000(a) NCF Dealer Floorplan Master Trust, Series 2016-1A,
Class C, 9.51%, 3/21/22 (144A) $ 703,109
-------------
Total Banks $ 1,695,703
-------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED LOAN OBLIGATIONS
(Cost $1,633,413) $ 1,695,703
-------------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES -- 6.4% of Net Assets
AUTOMOBILES & COMPONENTS -- 0.3%
Auto Parts & Equipment -- 0.3%
1,000,000 International Automotive Components Group SA,
9.125%, 6/1/18 (144A) $ 980,000
-------------
Total Automobiles & Components $ 980,000
-------------------------------------------------------------------------------------------------------------
BANKS -- 0.4%
Diversified Banks -- 0.4%
1,100,000(f)(g) BNP Paribas SA, 7.625% (144A) $ 1,204,843
-------------
Total Banks $ 1,204,843
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.3%
Trading Companies & Distributors -- 0.3%
900,000 United Rentals North America, Inc., 4.625%, 7/15/23 $ 936,810
-------------
Total Capital Goods $ 936,810
-------------------------------------------------------------------------------------------------------------
ENERGY -- 0.6%
Oil & Gas Exploration & Production -- 0.4%
500,000 Gulfport Energy Corp., 6.625%, 5/1/23 $ 503,750
625,000 WPX Energy, Inc., 7.5%, 8/1/20 659,375
-------------
$ 1,163,125
-------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.2%
800,000(a) Golar LNG Partners LP, 7.432%, 5/15/21 (144A) $ 802,000
-------------
Total Energy $ 1,965,125
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 35
Schedule of Investments | 5/31/17 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.4%
Health Care Facilities -- 0.4%
200,000 CHS/Community Health Systems, Inc., 6.25%, 3/31/23 $ 207,350
1,000,000 CHS/Community Health Systems, Inc., 6.875%, 2/1/22 888,750
-------------
Total Health Care Equipment & Services $ 1,096,100
-------------------------------------------------------------------------------------------------------------
INSURANCE -- 1.9%
Reinsurance -- 1.9%
500,000(a) Alamo Re, Ltd., 6.171%, 6/7/17 (144A) (Cat Bond) $ 499,950
500,000(a) Alamo Re, Ltd., 6.751%, 6/7/18 (144A) (Cat Bond) 511,850
400,000(h)(i) Berwick Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 2/1/18 19,000
250,000(h)(i) Carnoustie Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 11/30/20 27,050
250,000(h)(i) Carnoustie Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 11/30/21 253,775
250,000(h)(i) Gleneagles Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 11/30/20 42,050
400,000(h)(i) Gullane Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 11/30/20 16,760
400,000(h)(i) Gullane Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 11/30/21 417,720
400,000(a) Kilimanjaro II Re, Ltd., 7.117%, 4/20/21 (144A)
(Cat Bond) 402,520
250,000(a) Kilimanjaro Re, Ltd., Series 2015-1, Class D, 10.221%,
12/6/19 (144A) (Cat Bond) 251,125
250,000(a) Kilimanjaro Re, Ltd., Series 2015-1, Class E, 7.721%,
12/6/19 (144A) (Cat Bond) 254,100
250,000(h)(i) Madison Re, Variable Rate Notes, 3/31/19 277,725
400,000(h)(i) Pangaea Re Segregated Account (Artex SAC, Ltd.),
Series 2016-1, Variable Rate Notes, 2/1/20 36,760
400,000(h)(i) Pangaea Re Segregated Account (Artex SAC, Ltd.),
Series 2017-1, Variable Rate Notes, 11/30/21 413,040
400,000(h)(i) Pinehurst Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 1/16/18 386,600
300,000(h)(i) Portrush 2016 Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 6/15/17 68,490
350,000(h)(i) Resilience Re, Ltd., Variable Rate Notes, 7/7/17 7,350
300,000(h)(i) Resilience Re, Ltd., Variable Rate Notes, 4/6/18 273,420
300,000(h)(i) Resilience Re, Ltd., Variable Rate Notes, 1/8/19 (144A) 300,000
400,000(h)(i) St. Andrews Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 2/1/18 56,240
400,000(h)(i) St. Andrews Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 2/1/19 419,880
400,000(h)(i) St. Andrews Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 6/1/19 400,800
The accompanying notes are an integral part of these financial statements.
36 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
300,000(h)(i) Sunningdale 2017 Segregated Account (Artex SAC,
Ltd.), Variable Rate Notes, 1/16/18 $ 280,530
250,000(a) Ursa Re, Ltd., 3.5%, 5/27/20 (144A) (Cat Bond) 250,050
-------------
Total Insurance $ 5,866,785
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.6%
Commodity Chemicals -- 0.3%
758,000 Rain CII Carbon LLC / CII Carbon Corp., 7.25%,
4/1/25 (144A) $ 786,425
-------------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 0.3%
1,000,000(a) Ardagh Packaging Finance Plc / Ardagh Holdings
USA, Inc., 4.432%, 5/15/21 (144A) $ 1,020,000
-------------
Total Materials $ 1,806,425
-------------------------------------------------------------------------------------------------------------
MEDIA -- 0.4%
Broadcasting -- 0.1%
300,000 CSC Holdings LLC, 5.5%, 4/15/27 (144A) $ 314,196
-------------------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.3%
750,000 Hughes Satellite Systems Corp., 5.25%, 8/1/26 $ 771,563
-------------
Total Media $ 1,085,759
-------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.2%
Semiconductors -- 0.2%
750,000 Micron Technology, Inc., 5.25%, 8/1/23 (144A) $ 770,625
-------------
Total Semiconductors & Semiconductor Equipment $ 770,625
-------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.3%
Internet Software & Services -- 0.3%
920,000 j2 Cloud Services, Inc., 8.0%, 8/1/20 $ 949,900
-------------
Total Software & Services $ 949,900
-------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.5%
Integrated Telecommunication Services -- 0.5%
500,000 CenturyLink, Inc., 6.45%, 6/15/21 $ 540,625
1,000,000 Frontier Communications Corp., 10.5%, 9/15/22 983,750
-------------
Total Telecommunication Services $ 1,524,375
-------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.1%
Airlines -- 0.1%
365,000 Air Canada 2015-1 Class C Pass Through Trust,
5.0%, 3/15/20 (144A) $ 371,387
-------------
Total Transportation $ 371,387
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 37
Schedule of Investments | 5/31/17 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.4%
Independent Power Producers & Energy
Traders -- 0.4%
1,125,000 NRG Energy, Inc., 6.25%, 7/15/22 $ 1,149,604
-------------
Total Utilities $ 1,149,604
-------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES
(Cost $18,990,775) $ 19,707,738
-------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 5.0% of Net Assets
3,270,000(a) U.S. Treasury Notes, 1.13%, 10/31/17 $ 3,272,995
8,980,000(a) U.S. Treasury Notes, 1.152%, 4/30/18 8,999,819
3,365,000(a) U.S. Treasury Notes, 1.234%, 1/31/18 3,372,538
-------------
$ 15,645,352
-------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $15,625,894) $ 15,645,352
-------------------------------------------------------------------------------------------------------------
TAX EXEMPT OBLIGATION -- 0.1% of
Net Assets (j)
Mississippi -- 0.1%
250,000(f) Mississippi Business Finance Corp., Chevron USA,
Inc. Project, Series G, 0.78%, 12/1/30 $ 250,000
-------------------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT OBLIGATION
(Cost $250,000) $ 250,000
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Shares
-------------------------------------------------------------------------------------------------------------
EXCHANGE-TRADED FUNDS -- 1.7% of Net Assets
DIVERSIFIED FINANCIALS -- 1.7%
Asset Management & Custody Banks -- 0.6%
40,000 BlackRock Floating Rate Income Strategies Fund, Inc. $ 577,600
30,000 Eaton Vance Floating-Rate Income Trust 454,500
50,000 First Trust Senior Floating Rate Income Fund II 681,000
50,000 Invesco Senior Income Trust 234,000
-------------
$ 1,947,100
-------------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 1.1%
27,000 iShares iBoxx $ High Yield Corporate Bond ETF $ 2,393,550
42,000 PowerShares Senior Loan Portfolio 979,020
-------------
$ 3,372,570
-------------
Total Diversified Financials $ 5,319,670
-------------------------------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED FUNDS
(Cost $5,127,287) $ 5,319,670
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
38 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
-------------------------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.1% of Net Assets
CONSUMER DURABLES & APPAREL -- 0.0%+
Homebuilding -- 0.0%+
31,348(k) WAICCS Las Vegas 3 LLC $ 100,000
-------------
Total Consumer Durables & Apparel $ 100,000
-------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.0%+
Health Care Technology -- 0.0%+
209,625(b)(k) Medical Card System, Inc. $ 2,096
-------------
Total Health Care Equipment & Services $ 2,096
-------------------------------------------------------------------------------------------------------------
INDUSTRIALS -- 0.0%+
Diversified Support Services -- 0.0%+
31(k) IAP Worldwide Services, Inc. $ 42,515
-------------
Total Industrials $ 42,515
-------------------------------------------------------------------------------------------------------------
MEDIA -- 0.0%+
Publishing -- 0.0%+
1,242(k) Solocal Group SA $ 1,668
-------------
Total Media $ 1,668
-------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 0.0%+
Biotechnology -- 0.0%+
2,454(k) Progenics Pharmaceuticals, Inc. $ 15,632
-------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 15,632
-------------------------------------------------------------------------------------------------------------
RETAILING -- 0.0%+
Computer & Electronics Retail -- 0.0%+
91,346(b)(k) Targus Cayman SubCo., Ltd. $ 88,606
-------------
Total Retailing $ 88,606
-------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.1%
Air Freight & Logistics -- 0.1%
710(k) CEVA Holdings LLC $ 163,621
-------------
Total Transportation $ 163,621
-------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.0%+
Independent Power Producers & Energy
Traders -- 0.0%+
775 NRG Energy, Inc. $ 12,446
-------------
Total Utilities $ 12,446
-------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,515,139) $ 426,584
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 39
Schedule of Investments | 5/31/17 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 4.9% of
Net Assets
REPURCHASE AGREEMENTS -- 3.1%
6,840,000 $6,840,000 ScotiaBank, 0.81%, dated 5/31/17,
plus accrued interest on 6/1/17 collateralized
by the following:
$1,300,791 Government National Mortgage
Associations, 4.0%, 4/20/47, $5,295,100
Federal National Mortgage Association, 2.8%-5.5%,
5/1/34-5/1/47, $381,066 Freddie Mac Giant,
4.0%, 6/1/42. $ 6,840,000
2,885,000 $2,885,000 TD Securities USA LLC, 0.79%-0.8%,
dated 5/31/17, plus accrued interest on 6/1/17
collateralized by the following:
$2,942,761 U.S. Treasury Notes, 1.125%, 8/31/21. 2,885,000
-------------
$ 9,725,000
-------------------------------------------------------------------------------------------------------------
TREASURY BILLS -- 1.8%
2,500,000(l) U.S. Treasury Bill, 6/29/17 $ 2,498,353
2,900,000(l) U.S. Treasury Bill, 7/6/17 2,897,900
-------------
$ 5,396,253
-------------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $15,121,299) $ 15,121,253
-------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 149.6%
(Cost -- $466,274,904) (m) $ 464,544,165
-------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (49.6)% $(153,980,094)
-------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 310,564,071
=============================================================================================================
REIT Real Estate Investment Trust.
(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, 2017, the value of these securities
amounted to 10,414,774, or 3.4% of net assets.
(Cat Bond) Catastrophe or Event-linked bond. At May 31, 2017, the value of
these securities amounted to $2,169,595, or 0.7% of net assets.
See Notes to Financial Statements -- Note 1F.
+ Amount rounds to less than 0.1%.
* Senior secured floating rate loan interests in which the Trust
invests generally pay interest at rates that are periodically
redetermined by reference to a base lending rate plus a premium.
These base lending rates are generally (i) the lending rate offered
by one or more major European banks, such as LIBOR (London InterBank
Offered Rate), (ii) the prime rate offered by one or more major
United States banks, (iii) the rate of a certificate of deposit or
(iv) other base lending rates used by commercial lenders. The
interest rate shown is the rate accruing at May 31, 2017.
(a) Floating rate note. The rate shown is the coupon rate at
May 31, 2017.
The accompanying notes are an integral part of these financial statements.
40 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
(b) Security is valued using fair value methods (other than prices
supplied by independent pricing services). See Notes to Financial
Statements -- Note 1A.
(c) This term loan will settle after May 31, 2017, at which time the
interest rate will be determined.
(d) Payment in Kind (PIK) security which may pay interest in the form of
additional principal amount.
(e) Security is in default.
(f) The interest rate is subject to change periodically. The interest
rate shown is the rate at May 31, 2017.
(g) Security is perpetual in nature and has no stated maturity date.
(h) Structured reinsurance investment. At May 31, 2017, the value of
these securities amounted to $3,697,190, or 1.2% of net assets. See
Notes to Financial Statements -- Note 1F.
(i) Rate to be determined.
(j) Consists of Revenue Bonds unless otherwise indicated.
(k) Non-income producing.
(l) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(m) At May 31, 2017, the net unrealized depreciation on investments
based on cost for federal tax purposes of $466,478,458 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 5,466,768
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (7,401,061)
-----------
Net unrealized depreciation $(1,934,293)
===========
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended May 31, 2017 were as follows:
----------------------------------------------------------------------------------------
Purchases Sales
----------------------------------------------------------------------------------------
Long-Term U.S. Government $ -- $ --
Other Long-Term Securities $197,022,820 $202,692,745
The Trust is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Amundi Pioneer Asset
Management, Inc., (Amundi Pioneer) formerly, Pioneer Investment Management, Inc.
(PIM) serves as the investment adviser, as set forth in Rule 17a-7 under the
Investment Company Act of 1940, pursuant to procedures adopted by the Board of
Trustees. Under these procedures, cross trades are effected at current market
prices. During the six months ended May 31, 2017, the Trust did not engage in
cross trade activity.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 41
Schedule of Investments | 5/31/17 (unaudited) (continued)
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
-------------------------------------------------------------------------------------------------------------------------
Premiums
Notional Obligation Credit Expiration Paid/ Unrealized
Principal ($)(1) Exchange Entity/Index Coupon Rating(2) Date (Received) Appreciation
-------------------------------------------------------------------------------------------------------------------------
1,067,000 Chicago Markit CDX North 5.00% B+ 6/20/20 $ 64,230 $ 32,033
Mercantile America High Yield
Exchange Index Series 24
1,092,700 Chicago Markit CDX North 5.00% B+ 12/20/20 (10,391) 104,628
Mercantile America High Yield
Exchange Index Series 25
-------------------------------------------------------------------------------------------------------------------------
$ 53,839 $136,661
=========================================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Based on Standard & Poor's rating of the issuer or weighted average of all
the underlying securities of the index.
Various inputs are used in determining the value of the Trust's investments.
These inputs are summarized in the three broad levels below.
Level 1 -- quoted prices in active markets for identical securities.
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 -- significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments). See
Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of May 31, 2017, in valuing the
Trust's investments.
----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------
Senior Secured Floating
Rate Loan Interests
Capital Goods
Aerospace & Defense $ -- $14,089,161 $2,269,313 $16,358,474
Health Care Equipment
& Services
Health Care Technology -- 2,960,140 731,754 3,691,894
All Other Senior Secured
Floating Rate
Loan Interests -- 386,327,497 -- 386,327,497
Collateralized Loan Obligations -- 1,695,703 -- 1,695,703
Corporate Bonds & Notes
Insurance
Reinsurance -- 2,169,595 3,697,190 5,866,785
All Other Corporate Bonds
& Notes -- 13,840,953 -- 13,840,953
U.S. Government and
Agency Obligations -- 15,645,352 -- 15,645,352
Tax Exempt Obligation -- 250,000 -- 250,000
Exchange-Traded Funds 5,319,670 -- -- 5,319,670
The accompanying notes are an integral part of these financial statements.
42 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
-------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------
Common Stocks
Consumer Durables
& Apparel
Homebuilding $ -- $ 100,000 $ -- $ 100,000
Health Care Equipment
& Services
Health Care Technology -- -- 2,096 2,096
Industrials
Diversified Support
Services -- 42,515 -- 42,515
Retailing
Computer & Electronics
Retail -- -- 88,606 88,606
Transportation
Air Freight & Logistics -- 163,621 -- 163,621
All Other Common Stocks 29,746 -- -- 29,746
Repurchase Agreements -- 9,725,000 -- 9,725,000
Treasury Bills -- 5,396,253 -- 5,396,253
-------------------------------------------------------------------------------------------
Total Investments in Securities $ 5,349,416 $452,405,790 $ 6,788,959 $464,544,165
==========================================================================================
Other Financial Instruments
Unrealized appreciation on
centrally cleared
credit default
swap agreements $ -- $ 136,661 $ -- $ 136,661
-------------------------------------------------------------------------------------------
Total Other Financial Instruments $ -- $ 136,661 $ -- $ 136,661
==========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 43
Schedule of Investments | 5/31/17 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------------
Change in Transfers
Balance Realized unrealized Accrued in and Balance
as of gain appreciation discounts/ out of as of
11/30/16 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* 5/31/17
--------------------------------------------------------------------------------------------------------------------------------
Senior Secured
Floating Rate
Loan Interests
Capital Goods
Aerospace &
Defense $ -- $ 54 $ 20,918 $2,252,250 $ (5,687) $ 1,778 $ -- $2,269,313
Health Care
Equipment &
Services
Health Care
Technology 731,754 -- (21,778) -- -- 21,778 -- 731,754
Corporate Bonds
& Notes
Insurance
Reinsurance 3,255,179 -- 50,548 3,066,422 (2,644,989) (29,970) -- 3,697,190
Common Stocks
Health Care
Equipment &
Services
Health Care
Technology 2,096 -- -- -- -- -- -- 2,096
Retailing
Computer &
Electronics
Retail 88,606 -- -- -- -- -- -- 88,606
--------------------------------------------------------------------------------------------------------------------------------
Total $ 4,077,635 $ 54 $ 49,688 $5,318,672 $ (2,650,676) $ (6,414) $ -- $6,788,959
================================================================================================================================
(1) Realized gain (loss) on these securities is included in the realized gain
(loss) from investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) from investments in
the Statement of Operations.
* Transfers are calculated on the beginning of period value. For the six
months ended May 31, 2017, there were no transfers between Levels 1, 2 and
3.
Net change in unrealized appreciation of Level 3 investments still held and
considered Level 3 at May 31, 2017: $49,688.
The accompanying notes are an integral part of these financial statements.
44 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
Statement of Assets and Liabilities | 5/31/17 (unaudited)
ASSETS:
Investments in securities, at value (cost $466,274,904) $ 464,544,165
Cash 1,320,560
Foreign currencies, at value (cost $74,997) 63,809
Restricted cash* 197,928
Receivables --
Investment securities sold 2,177,865
Interest 1,948,934
Dividends 33,525
Variation margin for centrally cleared swap agreements 110
Unrealized appreciation on unfunded loan commitments 391
Prepaid expenses 242
---------------------------------------------------------------------------------------------------
Total assets $ 470,287,529
---------------------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Credit agreement $ 143,450,000
Investment securities purchased 15,765,063
Trustees' fees 3,644
Administration fee 94,427
Interest expense 540
Due to affiliates 278,459
Accrued expenses and other liabilities 131,325
---------------------------------------------------------------------------------------------------
Total liabilities $ 159,723,458
---------------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 437,566,800
Undistributed net investment income 1,702,666
Accumulated net realized loss on investments, swap agreements, and
foreign currency transactions (127,094,657)
Net unrealized depreciation on investments (1,730,739)
Unrealized appreciation on swap agreements 136,661
Unrealized appreciation on unfunded loan commitments 391
Unrealized depreciation on other assets and liabilities
denominated in foreign currencies (17,051)
---------------------------------------------------------------------------------------------------
Net assets $ 310,564,071
---------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Based on $310,564,071 / 24,738,174 shares $ 12.55
===================================================================================================
* Represents restricted cash deposited at the custodian and/or counterparty
for derivative contracts.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 45
Statement of Operations (unaudited)
For the Six Months Ended 5/31/17
INVESTMENT INCOME:
Interest $12,022,012
Dividends 114,959
Loan facility and other income 390,509
---------------------------------------------------------------------------------------------------
Total investment income $12,527,480
---------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,587,009
Administrative expense 90,783
Transfer agent fees 6,632
Shareowner communications expense 14,183
Custodian fees 37,268
Professional fees 53,290
Printing expense 14,124
Trustees' fees 9,305
Pricing fees 22,463
Interest expense 1,313,073
Miscellaneous 112,983
---------------------------------------------------------------------------------------------------
Total expenses $ 3,261,113
---------------------------------------------------------------------------------------------------
Net investment income $ 9,266,367
---------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAP AGREEMENTS, UNFUNDED LOAN COMMITMENTS, AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (851,054)
Swap agreements 38,045
Other assets and liabilities denominated
in foreign currencies (22) $ (813,031)
---------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 1,879,275
Swap agreements 22,629
Unfunded loan commitments (2,350)
Other assets and liabilities denominated
in foreign currencies 6,342 $ 1,905,896
---------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments,
swap agreements, unfunded loan commitments, and
foreign currency transactions $ 1,092,865
---------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $10,359,232
===================================================================================================
The accompanying notes are an integral part of these financial statements.
46 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------------
Six Months
Ended Year
5/31/17 Ended
(unaudited) 11/30/16
--------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 9,266,367 $ 19,154,376
Net realized gain (loss) on investments, swap agreements,
and foreign currency transactions (813,031) (10,303,504)
Change in net unrealized appreciation (depreciation) on
investments, swap agreements, unfunded loan commitments,
and foreign currency transactions 1,905,896 13,912,597
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 10,359,232 $ 22,763,469
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income and previously undistributed net
investment income ($0.37 and $0.72 per share, respectively) $ (9,103,648) $ (17,811,485)
--------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (9,103,648) $ (17,811,485)
--------------------------------------------------------------------------------------------------
Net increase in net assets $ 1,255,584 $ 4,951,984
NET ASSETS:
Beginning of period 309,308,487 304,356,503
--------------------------------------------------------------------------------------------------
End of period $310,564,071 $ 309,308,487
--------------------------------------------------------------------------------------------------
Undistributed net investment income $ 1,702,666 $ 1,539,947
==================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 47
Statement of Cash Flows (unaudited)
For the Six Months Ended 5/31/17
Cash Flows From Operating Activities:
Net increase in net assets resulting from operations $ 10,359,232
---------------------------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets resulting from operations
to net cash and foreign currencies from operating activities:
Purchases of investment securities $ (209,953,706)
Proceeds from disposition and maturity of investment securities 202,011,149
Net proceeds from temporary cash investments 8,177,921
Net accretion and amortization of discount/premium on investment securities (485,735)
Change in unrealized appreciation on investments (1,879,275)
Change in unrealized depreciation on unfunded loan commitments 2,350
Change in unrealized appreciation on foreign currency (3,708)
Net realized loss on investments 851,054
Decrease in restricted cash 132
Decrease in interest receivable 357,799
Increase in prepaid expenses (242)
Increase in due to affiliates 27,635
Increase in trustees' fees payable 668
Decrease in administration fees payable (33,880)
Decrease in accrued expenses payable (56,976)
Decrease in interest expense payable (796)
Decrease in variation margin for centrally cleared swap agreements 3,847
---------------------------------------------------------------------------------------------------
Net cash and foreign currencies from operating activities $ 9,377,469
---------------------------------------------------------------------------------------------------
Cash Flows Used in Financing Activities:
Distributions to shareowners $ (9,103,648)
---------------------------------------------------------------------------------------------------
Net cash and foreign currencies used in financing activities $ (9,103,648)
---------------------------------------------------------------------------------------------------
Effect of Foreign Exchange Fluctuations on Cash:
Effect of foreign exchange fluctuations on cash $ 3,708
---------------------------------------------------------------------------------------------------
Cash and Foreign Currencies:
Beginning of the period $ 1,106,840
---------------------------------------------------------------------------------------------------
End of the period $ 1,384,369
---------------------------------------------------------------------------------------------------
Cash Flow Information:
Cash paid for interest $ 1,313,869
===================================================================================================
The accompanying notes are an integral part of these financial statements.
48 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
5/31/17 Ended Ended Ended Ended Ended
(unaudited) 11/30/16 11/30/15 11/30/14 11/30/13 11/30/12
------------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 12.50 $ 12.30 $ 12.82 $ 13.06 $ 13.06 $ 12.45
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 0.37 $ 0.77 $ 0.76 $ 0.75 $ 1.01 $ 1.19
Net realized and unrealized gain (loss) on
investments, swap agreements, unfunded loan
commitments, and foreign currency transactions 0.05 0.15 (0.58) (0.19) 0.01 0.55
------------------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareowners from:
Net investment income $ -- $ -- $ -- $ (0.00)(b) $ (0.12) $ (0.12)
------------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.42 $ 0.92 $ 0.18 $ 0.56 $ 0.90 $ 1.62
------------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income and previously
undistributed net investment income $ (0.37) $ (0.72) $ (0.70) $ (0.80)* $ (0.90) $ (1.01)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.05 $ 0.20 $ (0.52) $ (0.24) $ -- $ 0.61
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.55 $ 12.50 $ 12.30 $ 12.82 $ 13.06 $ 13.06
------------------------------------------------------------------------------------------------------------------------------------
Market value, end of period $ 11.92 $ 11.78 $ 10.83 $ 11.36 $ 12.41 $ 13.41
====================================================================================================================================
Total return at net asset value (c) 3.48%(d) 8.31% 1.96% 4.74% 7.07% 14.26%
Total return at market value (c) 4.30%(d) 15.92% 1.31% (2.32)% (0.84)% 15.66%
Ratios to average net assets of shareowners:
Total expenses plus interest expense (e)(f) 2.10%(g) 1.96% 1.81% 1.80% 1.47% 1.58%
Net investment income before preferred
share distributions 5.97%(g) 6.32% 6.00% 5.73% 7.70% 9.24%
Preferred share distributions --% --% --% 0.01% 0.94% 0.90%
Net investment income available to shareowners 5.97%(g) 6.32% 6.00% 5.72% 6.76% 8.34%
Portfolio turnover 44% 52% 38% 61% 63% 63%
Net assets, end of period (in thousands) $ 310,564 $ 309,308 $ 304,357 $317,236 $ 323,127 $322,714
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 49
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
5/31/17 Ended Ended Ended Ended Ended
(unaudited) 11/30/16 11/30/15 11/30/14 11/30/13 11/30/12
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) $ -- $ -- $ -- $ --(h) $ 182,450 $182,450
Asset coverage per preferred share, end of period $ -- $ -- $ -- $ --(h) $ 69,280 $ 69,222
Average market value per preferred share (i) $ -- $ -- $ -- $ --(h) $ 25,000 $ 25,000
Liquidation value, including dividends payable, per
preferred share $ -- $ -- $ -- $ --(h) $ 25,003 $ 25,003
Total amount of debt outstanding (in thousands) $ 143,450 $ 143,450 $ 150,450 $155,450 $ -- $ --
Asset coverage per indebtedness (in thousands) $ 3,165 $ 3,156 $ 3,023 $ 3,041 $ -- $ --
====================================================================================================================================
* The amount of distributions made to shareowners during the period were in
excess of the net investment income earned by the Trust during the period.
The Trust has accumulated undistributed net investment income which is
part of the Trust's NAV. A portion of the accumulated net investment income
was distributed to shareowners during the period.
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Amount rounds to less than $(0.005) per share.
(c) Total investment return is calculated assuming a purchase of common shares
at the current net asset value or market value on the first day and a sale
at the current net asset value or market value on the last day of the
periods reported. Dividends and distributions, if any, are assumed for
purposes of this calculation to be reinvested at prices obtained under the
Trust's dividend reinvestment plan. Total investment return does not
reflect brokerage commissions. Past performance is not a guarantee of
future results.
(d) Not annualized.
(e) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(f) Includes interest expense of 0.85%, 0.63%, 0.51%, 0.49%, 0.00%, and 0.00%,
respectively.
(g) Annualized.
(h) Preferred shares were redeemed during the period.
(i) Market value is redemption value without an active market.
The accompanying notes are an integral part of these financial statements.
50 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
Notes to Financial Statements | 5/31/17 (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 closed-end management investment company under the Investment
Company Act of 1940, as amended. The Trust is a diversified fund. The investment
objective of the Trust is to provide a high level of current income and the
Trust may, as a secondary objective, also seek preservation of capital to the
extent consistent with its investment objective of high current income.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world. Amundi, one of the world's
largest asset managers, is headquartered in Paris, France. As a result of the
transaction, Pioneer Investment Management, Inc., the Trust's investment
adviser, became an indirect wholly owned subsidiary of Amundi and Amundi's
wholly owned subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer
Investments was owned by Pioneer Global Asset Management S.p.A., a wholly owned
subsidiary of UniCredit S.p.A.
In connection with the transaction, the names of the Trust's investment adviser
and principal underwriter changed. Effective July 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc. and
the name of Pioneer Funds Distributor, Inc. changed to Amundi Pioneer
Distributor, Inc.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles (U.S. GAAP) that require the management
of the Trust to make estimates and assumptions that affect the reported amounts
of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the financial statements, and the reported amounts of income,
expenses and gain or loss on investments during the reporting period. Actual
results could differ from those estimates.
The Trust is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Trust in the preparation of its financial
statements:
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 51
A. Security Valuation
The net asset value of the Trust is computed once daily, on each day the
New York Stock Exchange (NYSE) is open, as of the close of regular trading
on the NYSE.
Fixed income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to supply
prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Loan interests are valued in accordance with guidelines established by the
Board of Trustees at the mean between the last available bid and asked
prices from one or more brokers or dealers as obtained from Loan Pricing
Corporation, an independent third party pricing service. If price
information is not available from Loan Pricing Corporation, or if the price
information is deemed to be unreliable, price information will be obtained
from an alternative loan interest pricing service. If no reliable price
quotes are available from either the primary or alternative pricing
service, broker quotes will be solicited.
Event-linked bonds or catastrophe bonds are valued at the bid price
obtained from an independent third party pricing service. Other insurance
linked securities (including sidecars, collateralized reinsurance and
industry loss warranties) may be valued at the bid price obtained from an
independent pricing service, or through a third party using a pricing
matrix, insurance industry valuation models, or other fair value methods or
techniques to provide an estimated value of the instrument.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by
52 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
independent third party pricing services. In the case of equity securities
not traded on an exchange, prices are typically determined by independent
third party pricing services using a variety of techniques and methods.
The value of foreign securities is translated in U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party pricing
source. Trading in non-U.S. equity securities is substantially completed
each day at various times prior to the close of the NYSE. The values of
such securities used in computing the net asset value of the Trust's shares
are determined as of such times. The Trust may use a fair value model
developed by an independent pricing service to value non-U.S. equity
securities.
Swap agreements, including interest rate swaps, caps and floors (other than
centrally cleared swap agreements) are valued at the dealer quotations
obtained from reputable International Swap Dealers Association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such funds' net asset value. Repurchase
agreements are valued at par. Cash may include overnight time deposits at
approved financial institutions.
Securities or loan interests for which independent pricing services or
broker-dealers are unable to supply prices or for which market prices
and/or quotations are not readily available or are considered to be
unreliable are valued by a fair valuation team comprised of certain
personnel of Amundi Pioneer Asset Management, Inc. (Amundi Pioneer),
formerly Pioneer Investment Management, Inc. (PIM), the Trust's investment
adviser and pursuant to procedures adopted by the Trust's Board of
Trustees. Amundi Pioneer's, formerly PIM's, fair valuation team uses fair
value methods approved by the Valuation Committee of the Board of Trustees.
Amundi Pioneer's, formerly PIM's, fair valuation team is responsible for
monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Trust may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Trust's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 53
disasters, terrorist activity or trading halts. Thus, the valuation of the
Trust's securities may differ significantly from exchange prices and such
differences could be material.
At May 31, 2017, four securities were valued using fair value methods (in
addition to securities valued using prices supplied by independent pricing
services, broker-dealers or using a third party insurance pricing model)
representing 1.0% of net assets. The value of these fair valued securities
are $3,091,769.
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Trust becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on an accrual basis,
net of unrecoverable foreign taxes withheld at the applicable country
rates.
Discounts and premiums on purchase prices of debt securities are accreted
or amortized, respectively, daily, into interest income on an effective
yield to maturity basis with a corresponding increase or decrease in the
cost basis of the security. Premiums and discounts related to certain
mortgage-backed securities are amortized or accreted in proportion to the
monthly paydowns.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the Statement of Operations from
the effects of changes in the market price of those securities but are
included with the net realized and unrealized gain or loss on investments.
54 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
D. Forward Foreign Currency Contracts
The Trust may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
are recorded in the Trust's financial statements. The Trust records
realized gains and losses at the time a contract is offset by entry into a
closing transaction or extinguished by delivery of the currency. Risks may
arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contracts and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar.
During the six months ended May 31, 2017, the Trust did not enter into any
forward foreign currency contracts.
E. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no federal income tax provision is required. As
of November 30, 2016, the Trust did not accrue any interest or penalties
with respect to uncertain tax positions, which if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years remain subject to examination by
federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary overdistributions for financial
statement and tax purposes. Capital accounts within the financial
statements are adjusted for permanent book/tax differences to reflect tax
character, but are not adjusted for temporary differences.
The tax character of current year distributions payable to shareowners will
be determined at the end of the current taxable year.
The tax character of distributions paid to shareowners during the year
ended November 30, 2016 was as follows:
---------------------------------------------------------------------------
2016
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $17,811,485
---------------------------------------------------------------------------
Total $17,811,485
===========================================================================
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 55
The following shows the components of distributable earnings (losses) on a
federal income tax basis at November 30, 2016:
---------------------------------------------------------------------------
2016
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,826,319
Capital loss carryforward (124,688,306)
Late year loss deferrals (1,562,106)
Other book/tax temporary differences (317,586)
Unrealized depreciation (3,516,634)
---------------------------------------------------------------------------
Total $(128,258,313)
===========================================================================
The difference between book-basis and tax-basis unrealized depreciation is
primarily attributable to the realization for tax purposes of unrealized
gains on investments in passive foreign investment companies, the book/tax
differences in the accrual of income on securities in default, the
difference between book and tax amortization methods and discounts on fixed
income securities.
F. Insurance-Linked Securities (ILS)
The Trust invests in event-linked bonds. Event-linked bonds are floating
rate debt obligations for which the return of principal and the payment of
interest are contingent on the non-occurrence of a pre-defined "trigger"
event, such as a hurricane or an earthquake of a specific magnitude. The
trigger event's magnitude may be based on losses to a company or industry,
industry indexes or readings of scientific instruments, or may be based on
specified actual losses. If a trigger event occurs, as defined within the
terms of an event-linked bond, the Trust may lose a portion or all of its
accrued interest and/or principal invested in such event-linked bond. The
Trust is entitled to receive principal and interest payments so long as no
trigger event occurs of the description and magnitude specified by the
instrument. In addition to the specified trigger events, event-linked bonds
may expose the Trust to other risks, including but not limited to issuer
(credit) default, adverse regulatory or jurisdictional interpretations and
adverse tax consequences.
The Trust's investments in ILS may include special purpose vehicles
("SPVs") or similar instruments structured to comprise a portion of a
reinsurer's catastrophe-oriented business, known as quota share instruments
(sometimes referred to as reinsurance sidecars), or to provide reinsurance
relating to specific risks to insurance or reinsurance companies through a
collateralized instrument, known as collateralized reinsurance. Structured
reinsurance investments also may include industry loss warranties ("ILWs").
A traditional ILW takes the form of a bilateral reinsurance contract, but
there are also products that take the form of derivatives, collateralized
structures, or exchange traded instruments.
56 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
Structured reinsurance investments, including quota share instruments,
collateralized reinsurance investments and ILWs, generally are subject to
the same risks as event-linked bonds. In addition, where the instruments
are based on the performance of underlying reinsurance contracts, the Trust
has limited transparency into the individual underlying contracts and
therefore must rely upon the risk assessment and sound underwriting
practices of the issuer. Accordingly, it may be more difficult for Amundi
Pioneer's, formerly PIM, to fully evaluate the underlying risk profile of
the Trust's structured reinsurance investments and therefore the Trust's
assets are placed at greater risk of loss than if Amundi Pioneer's,
formerly PIM, had more complete information. Structured reinsurance
instruments generally will be considered illiquid securities by the Trust.
These securities may be difficult to purchase, sell or unwind. Illiquid
securities also may be difficult to value. If the Trust is forced to sell
an illiquid asset, the Trust may be forced to sell at a loss.
G. Risks
Information regarding the Trust's principal risks is contained in the
Trust's original offering prospectus, with additional information included
in the Trust's shareowner reports issued from time to time. Please refer to
those documents when considering the Trust's principal risks. At times, the
Trust's investments may represent industries or industry sectors that are
interrelated or have common risks, making the Trust more susceptible to any
economic, political, or regulatory developments or other risks affecting
those industries and sectors.
The value of securities held by the Trust may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
The Trust invests in below investment grade (high yield) debt securities,
floating rate loans and event-linked bonds sometimes referred to as
"catastrophe" bonds or "insurance-linked" bonds. The Trust may invest in
securities and other obligations of any credit quality, including those
that are rated below investment grade, or are unrated but are determined by
the investment adviser to be of equivalent credit quality. Below investment
grade securities are commonly referred to as "junk bonds" and are
considered speculative with respect to the issuer's capacity to pay
interest and repay principal. Below investment grade securities, including
floating rate loans, involve greater risk of loss, are subject to greater
price volatility, and are less
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 57
liquid and more difficult to value, especially during periods of economic
uncertainty or change, than higher rated debt securities. Certain
securities in which the Trust invests, including floating rate loans, once
sold, may not settle for an extended period (for example, several weeks or
even longer). The Trust will not receive its sale proceeds until that time,
which may constrain the Trust's ability to meet its obligations. The Trust
may invest in securities of issuers that are in default or that are in
bankruptcy. The value of collateral, if any, securing a floating rate loan
can decline or may be insufficient to meet the issuer's obligations or may
be difficult to liquidate. No active trading market may exist for many
floating rate loans, and many loans are subject to restrictions on resale.
Any secondary market may be subject to irregular trading activity and
extended settlement periods. 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.
Interest rates in the U.S. recently have been historically low, so the
Trust faces a heightened risk that interest rates may rise. A general rise
in interest rates may cause investors to move out of fixed income
securities on a large scale, which could adversely affect the price and
liquidity of fixed income securities.
H. Repurchase Agreements
Repurchase agreements are arrangements under which the Trust purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Trust at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Trust. The securities purchased serve
as the Trust's collateral for the obligation of the counterparty to
repurchase the securities. The value of the collateral, including accrued
interest, is required to be equal to or in excess of the repurchase price.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Trust's custodian or a subcustodian of the
Trust. Amundi Pioneer's formerly, PIM, is responsible for determining that
the value of the collateral remains at least equal to the repurchase price.
In the event of a default by the counterparty, the Trust is entitled to
sell the securities, but the Trust may not be able to sell them for the
price at which they were purchased, thus causing a loss to the Trust.
Additionally, if the counterparty becomes insolvent, there is some risk
that the Trust will not have a right to the securities, or the immediate
right to sell the securities. Open repurchase agreements as of May 31, 2017
are disclosed in the Trust's Schedule of Investments.
58 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
I. Automatic Dividend Reinvestment Plan
All shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional shares of
the Trust in lieu of cash. Shareowners may elect not to participate in the
Plan. Shareowners not participating in the Plan receive all dividends and
capital gain distributions in cash. Participation in the Plan is completely
voluntary and may be terminated or resumed at any time without penalty by
notifying American Stock Transfer & Trust Company, the agent for
shareowners in administering the Plan (the Plan Agent), in writing prior to
any dividend record date; otherwise such termination or resumption will be
effective with respect to any subsequently declared dividend or other
distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate in
the Plan on the shareowner's behalf. If the firm or nominee does not offer
the Plan, dividends will be paid in cash to the shareowner of record. A
firm or nominee may reinvest a shareowner's cash dividends in shares of the
Trust on terms that differ from the terms of the Plan.
Whenever the Trust declares a dividend on shares payable in cash,
participants in the Plan will receive the equivalent in shares acquired by
the Plan Agent either (i) through receipt of additional unissued but
authorized shares from the Trust or (ii) by purchase of outstanding shares
on the New York Stock Exchange or elsewhere. If, on the payment date for
any dividend, the net asset value per share is equal to or less than the
market price per share plus estimated brokerage trading fees (market
premium), the Plan Agent will invest the dividend amount in newly issued
shares. The number of newly issued shares to be credited to each account
will be determined by dividing the dollar amount of the dividend by the net
asset value per share on the date the shares are issued, provided that the
maximum discount from the then current market price per share on the date
of issuance does not exceed 5%. If, on the payment date for any dividend,
the net asset value per share is greater than the market value (market
discount), the Plan Agent will invest the dividend amount in shares
acquired in open-market purchases. There are no brokerage charges with
respect to newly issued shares. However, each participant will pay a pro
rata share of brokerage trading fees incurred with respect to the Plan
Agent's open-market purchases. Participating in the Plan does not relieve
shareowners from any federal, state or local taxes which may be due on
dividends paid in any taxable year. Shareowners holding Plan shares in a
brokerage account may be able to transfer the shares to another broker and
continue to participate in the Plan.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 59
J. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event on an underlying
reference obligation, which may be a single security or a basket or index
of securities. The Trust may buy or sell credit default swap agreements to
seek to increase the Trust's income, or to attempt to hedge the risk of
default on portfolio securities. A credit default swap index is used to
hedge risk or take a position on a basket of credit entities or indices. As
a seller of protection, the Trust would be required to pay the notional (or
other agreed-upon) value of the referenced debt obligation to the
counterparty in the event of a default by a U.S. or foreign corporate
issuer of a debt obligation, which would likely result in a loss to the
Trust. In return, the Trust would receive from the counterparty a periodic
stream of payments during the term of the contract provided that no event
of default occurred. The maximum exposure of loss to the seller would be
the notional value of the credit default swaps outstanding. If no default
occurs, the Trust would keep the stream of payments and would have no
payment obligation. The Trust may also buy credit default swap agreements
in order to hedge against the risk of default of debt securities, in which
case the Trust would function as the counterparty referenced above.
When the Trust enters into a credit default swap agreements, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the right to receive a contingent payment. An upfront payment
made by the Trust, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Trust are recorded as realized gains or losses in the Statement of
Operations.
Credit default swap agreements are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made as a result of a credit
event or upon termination of the contract are recognized, net of the
appropriate amount of the upfront payment, as realized gains or losses in
the Statement of Operations.
Credit default swap agreements involving the sale of protection may involve
greater risks than if the Trust had invested in the referenced debt
instrument directly. Credit default swap agreements are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the
Trust is a protection buyer and no credit event occurs, it will lose its
investment. If the Trust is a protection seller and a credit event occurs,
the value of the referenced debt
60 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
instrument received by the Trust, together with the periodic payments
received, may be less than the amount the Trust pays to the protection
buyer, resulting in a loss to the Trust.
Certain swap agreements that are cleared through a central clearinghouse
are referred to as centrally cleared swaps. All payments made or received
by the Trust are pursuant to a centrally cleared swap agreement with the
central clearing party rather than the original counterparty. Upon entering
into a centrally cleared swap agreement, the Trust is required to make an
initial margin deposit, either in cash or in securities. The daily change
in value on open centrally cleared swap agreements is recorded as variation
margin on centrally cleared swaps on the Statement of Assets and
Liabilities.
The amount of cash deposited with the broker as collateral at May 31, 2017,
and is included in "Restricted cash" in the Statement of Assets and
Liabilities, was $200,181.
Open credit default swap agreements at May 31, 2017 are listed in the
Schedule of Investments. The average market value of credit default swap
agreements open during the six months ended May 31, 2017 was $167,418.
2. Management Agreement
Amundi Pioneer, formerly PIM, manages the Trust's portfolio. Management fees
payable under the Trust's Advisory Agreement with Amundi Pioneer, formerly PIM,
are calculated daily at the annual rate of 0.70% of the Trust's average daily
managed assets. "Managed assets" means (a) the total assets of the Trust,
including any form of investment leverage, minus (b) all accrued liabilities
incurred in the normal course of operations, which shall not include any
liabilities or obligations attributable to investment leverage obtained through
(i) indebtedness of any type (including, without limitation, borrowing through a
credit facility or the issuance of debt securities), (ii) the issuance of
preferred stock or other similar preference securities, and/or (iii) any other
means. For the six months ended May 31, 2017 the net management fee was 0.70%
(annualized) of the Trust's average daily managed assets, which was equivalent
to 1.02% (annualized) of the Trust's average daily net assets.
In addition, under Amundi Pioneer, formerly PIM's, management and administration
agreements, certain other services and costs are paid by Amundi Pioneer,
formerly PIM, and reimbursed by the Trust. At May 31, 2017, $372,886 was payable
to Amundi Pioneer, formerly PIM, related to management costs, administrative
costs and certain other services is included in "Due to affiliates" and
"Administration fee" on the Statement of Assets and Liabilities.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 61
3. Transfer Agent
American Stock Transfer & Trust Company (AST) serves as the transfer agent
with respect to the Trust's shares. The Trust pays AST an annual fee, as is
agreed to from time to time by the Trust and AST, for providing such services.
In addition, the Trust reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings and outgoing calls.
4. Additional Disclosures about Derivative Instruments and Hedging Activities
The Trust's use of derivatives subjects it to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Trust.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at May 31, 2017
was as follows:
--------------------------------------------------------------------------------
Statement of Assets and Liabilities
Interest Credit Foreign Equity Commodity
Rate Risk Risk Exchange Risk Risk Risk
--------------------------------------------------------------------------------
Assets:
Unrealized
appreciation on
centrally cleared
credit default
swap agreements $-- $136,661 $-- $-- $--
--------------------------------------------------------------------------------
Total Value $-- $136,661 $-- $-- $--
================================================================================
62 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at May 31, 2017 was as follows:
--------------------------------------------------------------------------------
Statement of Operations
Interest Credit Foreign Equity Commodity
Rate Risk Risk Exchange Risk Risk Risk
--------------------------------------------------------------------------------
Net realized
gain (loss):
Swap agreements $-- $38,045 $-- $-- $--
--------------------------------------------------------------------------------
Total Value $-- $38,045 $-- $-- $--
================================================================================
Change in net
unrealized
appreciation
(depreciation) on:
Swap agreements $-- $22,629 $-- $-- $--
--------------------------------------------------------------------------------
Total Value $-- $22,629 $-- $-- $--
================================================================================
5. Unfunded Loan Commitments
The Trust may enter into unfunded loan commitments. Unfunded loan commitments
may be partially or wholly unfunded. During the contractual period, the Trust is
obligated to provide funding to the borrower upon demand. A fee is earned by the
Trust on the unfunded commitment and is recorded as interest income in the
Statement of Operations.
As of May 31, 2017, the Trust had the following unfunded loan commitments
outstanding:
------------------------------------------------------------------------------------
Unrealized
Loan Principal Cost Value Appreciation
------------------------------------------------------------------------------------
CH Hold Corp. (aka
Caliber Collision) $ 36,364 $ 36,276 $ 36,667 $391
PetSmart, Inc.,
Bridge Loan 1,250,000 1,250,000 1,250,000 --
------------------------------------------------------------------------------------
Total $1,286,364 $1,286,276 $1,286,667 $391
====================================================================================
6. Trust Shares
Transactions in shares of beneficial interest for the six months ended May 31,
2017 and the year ended November 30, 2016 were as follows:
--------------------------------------------------------------------------------
5/31/17 11/30/16
--------------------------------------------------------------------------------
Shares outstanding at beginning of period 24,738,174 24,738,174
--------------------------------------------------------------------------------
Shares outstanding at end of period 24,738,174 24,738,174
================================================================================
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 63
7. Credit Agreement
Effective November 26, 2013, the Trust entered into a revolving credit facility
(the Credit Agreement) with the Bank of Nova Scotia in the amount of
$160,000,000. The Credit Agreement was established in conjunction with the
redemption of all the Trust's auction market preferred shares. Effective
November 23, 2016, the Trust extended the maturity of the Credit Agreement to
November 22, 2019.
At May 31, 2017, the Trust had a borrowing outstanding under the Credit
Agreement totaling $143,450,000. The interest rate charged at May 31, 2017 was
2.05%. During the six months ended May 31, 2017, the average daily balance was
$143,450,000 at an average interest rate of 1.84%. Interest expense of
$1,313,073 in connection with the Credit Agreement is included in the Statement
of Operations.
The Trust is required to maintain 300% asset coverage with respect to amounts
outstanding under the Credit Agreement. Asset coverage is calculated by
subtracting the Trust's total liabilities not including any bank loans and
senior securities, from the Trust's total assets and dividing such amount by the
principal amount of the borrowing outstanding.
8. Subsequent Events
A monthly dividend was declared on June 2, 2017 from undistributed and
accumulated net investment income of $0.0600 per share payable June 30, 2017, to
shareowners of record on June 15, 2017.
64 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
ADDITIONAL INFORMATION
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the "Adviser"), the
Trust's investment adviser, was an indirect, wholly owned subsidiary of
UniCredit S.p.A. ("UniCredit"). On that date, UniCredit completed the sale of
its Pioneer Investments business, which includes the Adviser, to Amundi (the
"Transaction"). As a result of the Transaction, the Adviser became an indirect,
wholly-owned subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A.
Amundi is headquartered in Paris, France, and, as of September 30, 2016, had
more than $1.1 trillion in assets under management worldwide.
Deloitte & Touche LLP ("D&T"), the Trust's previous independent registered
public accounting firm, informed the Audit Committee and the Board that it would
no longer be independent with respect to the Trust upon the completion of the
Transaction as a result of certain services being provided to Amundi and Credit
Agricole, and, accordingly, that it intended to resign as the Trust's
independent registered public accounting firm upon the completion of the
Transaction. D&T's resignation was effective on July 3, 2017, when the
Transaction was completed.
During the periods as to which D&T has served as the Trust's independent
registered public accounting firm, including the Trust's two most recent fiscal
years preceding the fiscal year ended June 30, 2017, D&T's reports on the
Trust's financial statements have not contained an adverse opinion or disclaimer
of opinion and have not been qualified or modified as to uncertainty, audit
scope or accounting principles. Further, there have been no disagreements with
D&T on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which, if not resolved to the
satisfaction of D&T, would have caused D&T to make reference to the subject
matter of the disagreement in connection with its report on the financial
statements. In addition, there have been no reportable events of the kind
described in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange
Act of 1934.
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
a new independent registered public accounting firm, Ernst & Young LLP ("EY"),
for the Trust's fiscal year ended June 30, 2017.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 65
Prior to its engagement, EY had advised the Trust's Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be inconsistent with
the auditor independence rules set forth by the Securities and Exchange
Commission ("SEC"): (a) project management support services to UniCredit in the
Czech Republic, Germany, Italy, Serbia and Slovenia in relation to twenty-two
projects, that were determined to be inconsistent with Rule 2-01(c)(4)(vi) of
Regulation S-X (management functions); (b) two engagements for UniCredit in
Italy where fees were contingent/success based and that were determined to be
inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent fees); (c) four
engagements where legal and expert services were provided to UniCredit in the
Czech Republic and Germany, and twenty engagements where the legal advisory
services were provided to UniCredit in Austria, Czech Republic, Italy and
Poland, that were determined to be inconsistent with Rule 2-01(c)(4)(ix) and (x)
of Regulation S-X (legal and expert services); and (d) two engagements for
UniCredit in Italy involving assistance in the sale of certain assets, that were
determined to be inconsistent with Rule 2-01(c)(4)(viii) of Regulation S-X
(broker-dealer, investment advisor or investment banking services). None of the
foregoing services involved the Trust, any of the other funds in the Pioneer
Family of Funds or any other Pioneer entity sold by UniCredit in the
Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Trust under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of the Trust, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
66 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
Approval of New and Interim Management Agreements
Amundi Pioneer Asset Management, Inc. (Amundi Pioneer), formerly Pioneer
Investment Management, Inc., serves as the investment adviser to Pioneer
Floating Rate Trust (the Trust) pursuant to an investment management agreement
between Amundi Pioneer and the Trust.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world (the "Transaction"). As a
result of the Transaction, Amundi Pioneer became an indirect wholly-owned
subsidiary of Amundi and Amundi's wholly-owned subsidiary, Amundi USA, Inc.
Prior to July 3, 2017, Pioneer Investments was owned by Pioneer Global Asset
Management S.p.A. ("PGAM"), a wholly-owned subsidiary of UniCredit S.p.A.
("UniCredit").
Under the Investment Company Act of 1940, the Trust's current investment
management agreement (the "Current Management Agreement") terminated
automatically upon the consummation of the Transaction. In order for Amundi
Pioneer to continue to manage the Trust after the consummation of the
Transaction, the Trustees and shareholders of the Trust were required to approve
a new investment management agreement for the Trust (the "New Management
Agreement"). As discussed below, the Board of Trustees of the Trust approved the
New Management Agreement at a meeting held on March 6-7, 2017. The New
Management Agreement was approved by the shareholders of the Trust at a meeting
held on June 13, 2017. The Board of Trustees of the Trust also approved an
interim investment management agreement between Amundi Pioneer and the Trust
(the "Interim Management Agreement") at the March 6-7, 2017 meeting. The Interim
Management Agreement would have taken effect upon the closing of the Transaction
in the event that the shareholders of the Trust did not approve the New
Management Agreement.
Board Evaluation of the New and Interim Management Agreements
The Board evaluated the Transaction and the New Management Agreement and Interim
Management Agreement for the Trust. In connection with their evaluation of the
Transaction and the New Management Agreement for the Trust, the Trustees
requested such information as they deemed reasonably necessary, including: (a)
the structure of the Transaction and the strategy underlying the Transaction;
(b) the anticipated benefits of the Transaction to the Trust and its
shareholders; (c) the post-Transaction plans for Amundi Pioneer, including
Amundi's plans for integration of Pioneer Investments and Amundi Pioneer with
its existing asset management businesses and plans for the future development of
Amundi Pioneer; (d) the effect of the Transaction on the ongoing services
provided to the Trust, including the need to select a new independent registered
public accounting firm for the Trust, and any
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 67
plans to modify the operations of the Trust; (e) the stability and continuity of
Amundi Pioneer's management and key employees, including compensation and
benefits to Amundi Pioneer's key employees, and retention plans and incentive
plan structure; (f) the post-Transaction indebtedness and financial resources of
Amundi Pioneer; (g) Amundi's legal and operational structure, its principal
shareholders and senior management, its investment management, risk management,
administrative, legal and compliance functions; (h) certain regulatory matters
relating to Amundi's affiliates; and (i) Amundi's commitment to the United
States, including the role of Amundi Pioneer in the larger Amundi business.
The Trustees also requested and obtained the following information in connection
with their evaluation of the Transaction and the New Management Agreement for
the Trust: (i) memoranda provided by Fund counsel that summarized the legal
standards and other considerations that are relevant to the Trustees in their
deliberations regarding the New Management Agreement; (ii) the qualifications of
the investment management teams for the Trust, as well as the level of
investment by the Trust's portfolio managers in the Trust; (iii) the Trust's
management fees and total expense ratios, the financial statements of Amundi
Pioneer and its pre- and post-Transaction parent companies, profitability
analyses from Amundi Pioneer, and analyses from Amundi Pioneer as to possible
economies of scale; (iv) the profitability of the institutional business of
Amundi Pioneer and Amundi Pioneer's affiliate, Pioneer Institutional Asset
Management, Inc. ("PIAM") as compared to that of Amundi Pioneer's fund
management business; and (v) the differences between the fees and expenses of
the Trust and the fees and expenses of Amundi Pioneer's and PIAM's institutional
accounts, as well as the different services provided by Adviser to the Trust and
by Amundi Pioneer and PIAM to the institutional accounts. In addition, the
Trustees considered the information provided at regularly scheduled meetings
throughout the year regarding the Trust's performance and risk attributes,
including through meetings with investment management personnel, and took into
account other information related to the Trust provided to the Trustees at
regularly scheduled meetings. The Trustees also considered information they had
received in their review of the continuance of the Current Management Agreement
for the Trust in September 2016.
At meetings held on January 9, 2017 and January 10, 2017, the Trustees met with
representatives of Amundi and PGAM, including separate meetings of the Trustees
who are not "interested persons" of the Fund Complex ("Independent Trustees")
and counsel with representatives of Amundi and PGAM, and subsequently with
representatives of Amundi. In those meetings, they received an extensive
presentation from the representatives of Amundi, including the chief executive
officer of Amundi, describing Amundi's background and history, its global asset
management activities, the growth of
68 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
its business, and its status as the largest asset management firm in Europe and
one of the largest globally; its capital structure and financial resources,
including information as to the financing of the Transaction; its principal
investors, including its majority investor Credit Agricole S.A., and Credit
Agricole's long-term commitment to the asset management business; the philosophy
and strategy underlying the Transaction and the complementarity of Amundi's and
Pioneer Investments' respective asset management businesses; Amundi's various
operating and investment committees and how they would likely interact with
Amundi Pioneer; the proposed integration process, including the progress to date
and the establishment of various integration work streams; Amundi's plans for
management of Amundi Pioneer; Amundi's philosophy as to compensation of key
employees and its general intentions with respect to incentive plans for key
employees of Amundi Pioneer; Amundi's preliminary plans to achieve cost and
other synergies; and opportunities to further develop the business of Amundi
Pioneer and PIAM, including in the area of institutional asset management, and
how that would benefit shareholders of the Pioneer Funds.
In those meetings, the representatives of Amundi confirmed their intention that
the Chief Executive Officer and Chief Investment Officer of Amundi Pioneer would
remain in their current positions, and confirmed that they do not currently
foresee major changes in the day-to-day investment management operations of
Amundi Pioneer with respect to the Trust as a direct result of the Transaction.
They discussed incentive arrangements for key personnel that would continue
after the closing of the Transaction and their plans to establish a new
long-term incentive plan following the closing. They also generally discussed
ways in which Amundi Pioneer could potentially draw on the expanded global
resources of Amundi post-Transaction. At those meetings, the Independent
Trustees identified certain areas to which they requested further information,
including as to trading and execution of securities transactions, research and
portfolio management and potential changes in investment process, particularly
where asset classes managed by Amundi Pioneer would overlap with asset classes
managed by Amundi, the continued availability of resources currently at Pioneer
Investments or elsewhere within Amundi to assist in management of certain Funds,
and any anticipated significant changes in operations. The Independent Trustees
considered the uncertainty as to whether the Trust's independent registered
public accounting firm could continue to act in that capacity after the closing
of the Transaction. The Independent Trustees also met with counsel to review the
information they had received to date and to discuss next steps.
Subsequently, the Trustees received further information from Amundi, including
written responses to questions raised by the Independent Trustees, and received
from Amundi Pioneer the information requested of it. The Independent Trustees
reviewed the information provided with counsel at
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 69
telephonic meetings held on February 16, 2017 and February 27, 2017. The
Trustees held a special in-person Board meeting on March 6-7, 2017 for further
consideration of the New Management Agreements, the Interim Management
Agreements and the Transaction. The Trustees met again with senior executives of
Amundi at the March 6-7, 2017 meeting.
At the March 6-7, 2017 meeting, based on their evaluation of the information
provided by Amundi Pioneer and Amundi, the Trustees including the Independent
Trustees voting separately, approved the New Management Agreement and the
Interim Management Agreement for the Trust. In considering the New Management
Agreement for the Trust, the Trustees considered various factors that they
determined were relevant, including the factors described below. The Trustees
did not identify any single factor as the controlling factor in their
determinations. The Trustees considered the same factors with respect to the
Interim Management Agreement for the Trust.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by Amundi Pioneer to the Trust and that are expected to be
provided by Amundi Pioneer to the Trust following the consummation of the
Transaction. The Trustees reviewed the terms of the New Management Agreement,
and noted that such terms are substantially similar to the terms of the Current
Management Agreement, except for different execution dates, effective dates and
termination dates. The Trustees reviewed Amundi Pioneer's investment approach
for the Trust and its research process. The Trustees considered the resources of
Amundi Pioneer and the personnel of Amundi Pioneer who provide investment
management services to the Trust. They also reviewed the amount of
non-investment resources and personnel of Amundi Pioneer that are involved in
Amundi Pioneer's services to the Trust, including Amundi Pioneer's compliance
and legal resources and personnel. The Trustees noted the substantial attention
and high priority given by Amundi Pioneer's senior management to the Pioneer
Fund complex.
The Trustees considered that Amundi Pioneer supervises and monitors the
performance of the Trust's service providers and provides the Trust with
personnel (including Fund officers) and other resources that are necessary for
the Trust's business management and operations and that Amundi Pioneer would
continue to provide those investment management and research services and
resources to the Trust following the consummation of the Transaction. The
Trustees also considered that, as administrator, Amundi Pioneer would continue
to be responsible for the administration of the Trust's business and other
affairs. The Trustees considered the fees to be paid to Amundi Pioneer for the
provision of administration services.
70 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
The Trustees considered that Deloitte & Touche LLP informed the Board that it
would no longer be independent with respect to the Trust upon the completion of
the Transaction and, accordingly, that it would be necessary for the Board to
engage a new independent registered public accounting firm for the Trust.
The Trustees considered that the Transaction was not expected to have a material
adverse impact on the nature, scope and overall quality of services provided to
the Trust and its shareholders, including investment management, risk
management, administrative, compliance, legal and other services, as a result of
the Transaction.
In that regard, the Trustees considered that Amundi is one of the largest asset
managers globally, and that Amundi Pioneer may have access to additional
research and portfolio management capabilities as a result of the Transaction
and that Amundi Pioneer, as part of Amundi, is expected to have an enhanced
global presence that may contribute to an increase in the overall scale and
resources of Amundi Pioneer. Furthermore, in considering whether the Transaction
would be expected to have a material adverse impact on the nature, scope and
overall quality of services provided to the Trust and its shareholders, the
Trustees considered the statements by representatives of Amundi that they expect
the Chief Executive Officer and Chief Investment Officer of Amundi Pioneer to
remain in their current positions and that they do not currently foresee major
changes in the day-to-day investment management operations of Amundi Pioneer as
a direct result of the Transaction, or the risk management, legal or compliance
services provided by Amundi Pioneer, with respect to the Trust. They further
considered the current incentive arrangements for key personnel of Amundi
Pioneer that would continue after the closing of the Transaction. They also
noted Amundi's stated intention to establish a new long-term incentive plan
following the closing.
The Trustees also took into account their experience in evaluating the proposed
combination of Pioneer Investments and Santander Asset Management, which was
announced in September, 2014 and abandoned in July, 2016. In light of, among
other things, this experience, the Trustees determined that they were not able
to identify any realistic alternatives to approving the New Management Agreement
that would provide the level of services to the Trust and its shareholders that
are expected to be provided by Amundi Pioneer after the closing of the
Transaction.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that Amundi Pioneer would continue to provide to the
Trust under the New Management Agreement would be satisfactory and consistent
with the terms of the New Management Agreement.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 71
Performance of the Trust
In considering the Trust's performance, the Trustees regularly reviewed and
discussed throughout the year data prepared by Amundi Pioneer and information
comparing the Trust's performance with the performance of its peer group of
funds, as classified by each of Morningstar, Inc. (Morningstar) and Lipper, and
the performance of the Trust's benchmark index. They also discussed the Trust's
performance with Amundi Pioneer on a regular basis.
The Trustees' regular reviews and discussions were factored into the Trustees'
deliberations concerning the approval of the New Management Agreement.
Management Fee and Expenses
The Trustees noted that the stated management fees to be paid by the Trust are
identical under the Current Management Agreement and the New Management
Agreement. The Trustees considered information showing the fees and expenses of
the Trust in comparison to the management fees and expense ratios of its peer
group of funds as classified by Morningstar and also to the expense ratios of a
peer group of funds selected on the basis of criteria determined by the
Independent Trustees for this purpose using data provided by Strategic Insight
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Trust's shareowners. To the extent applicable, the Trustees
also considered the impact of transfer agency, sub-transfer agency, and other
non-management fee expenses on the expense ratios of the Trust. The Trustees
noted that they separately review the Trust's transfer agency, sub-transfer
agency and intermediary arrangements and that the results of the most recent
such review were considered in the consideration of the Trust's expense ratio.
The Trustees considered that the Trust's management fee (based on managed
assets) as of September 30, 2016 was in the first quintile relative to the
management fees paid by other funds in its Strategic Insight peer group for the
comparable period. The Trustees considered that the expense ratio (based on
managed assets) of the Trust's common shares as of September 30, 2016 was in the
first quintile relative to its Strategic Insight peer group for the comparable
period.
The Trustees reviewed management fees charged by Amundi Pioneer and PIAM to
institutional and other clients, including publicly offered European funds
sponsored by Amundi Pioneer's affiliates, unaffiliated U.S. registered
investment companies (in a sub-advisory capacity), and unaffiliated foreign and
domestic separate accounts. The Trustees also considered Amundi Pioneer's costs
in providing services to the Trust and Amundi Pioneer's and PIAM's costs in
providing services to the other clients and considered the
72 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
differences in management fees and profit margins for fund and non-fund
services. In evaluating the fees associated with Amundi Pioneer's and PIAM's
client accounts, the Trustees took into account the respective demands,
resources and complexity associated with the Trust and other client accounts.
The Trustees noted that in some instances the fee rates for those clients were
lower than the management fee for the Trust and considered that, under both the
Current Management Agreement and the New Management Agreement, Amundi Pioneer
would perform additional services for the Trust that it does not provide to
those other clients or services that are broader in scope, including oversight
of the Trust's other service providers and activities related to compliance and
the extensive regulatory and tax regimes to which the Trust is subject. The
Trustees also considered the different risks associated with Amundi Pioneer's
management of the Trust and Amundi Pioneer's and PIAM's management of the other
client accounts.
The Trustees concluded that the management fee payable by the Trust to Amundi
Pioneer was reasonable in relation to the nature and quality of the services to
be provided by Amundi Pioneer.
Profitability
The Trustees considered information provided by Amundi Pioneer regarding the
profitability of Amundi Pioneer with respect to the advisory services provided
by Amundi Pioneer to the Trust, including the methodology used by Amundi Pioneer
in allocating certain of its costs to the management of the Trust. The Trustees
also considered Amundi Pioneer's profit margin in connection with the overall
operation of the Trust. They further reviewed the financial results, including
the profit margins, realized by Amundi Pioneer and PIAM from non-fund
businesses. The Trustees considered Amundi Pioneer's profit margins with respect
to the Trust in comparison to the limited industry data available and noted that
the profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that Amundi Pioneer's profitability with respect to the management of
the Trust was not unreasonable.
Economies of Scale
The Trustees considered Amundi Pioneer's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with the Trust and Fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify, and that, among other factors that may be relevant, are the following:
fee levels, expense subsidization, investment by Amundi Pioneer in research and
analytical capabilities and Amundi Pioneer's commitment and resource allocation
to the Trust. The Trustees noted that profitability also may
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 73
be an indicator of the availability of any economies of scale, although
profitability may vary for other reasons including due to reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Trust.
Other Benefits
The Trustees considered the other benefits that Amundi Pioneer enjoys from its
relationship with the Trust. The Trustees considered the character and amount of
fees paid or to be paid by the Trust, other than under the Current Management
Agreement or the New Management Agreement, for services provided by Amundi
Pioneer and its affiliates. The Trustees further considered the revenues and
profitability of Amundi Pioneer's businesses other than the Fund business. To
the extent applicable, the Trustees also considered the benefits to the Trust
and to Amundi Pioneer and its affiliates from the use of "soft" commission
dollars generated by the Trust to pay for research and brokerage services.
The Trustees considered that following the completion of the Transaction, Amundi
Pioneer will be the principal U.S. asset management business of Amundi, and that
Amundi's worldwide asset management business will manage over $1.38 trillion in
assets (including the Pioneer Funds). This may create opportunities for Amundi
Pioneer, PIAM and Amundi that derive from Amundi Pioneer's relationships with
the Trust, including Amundi's ability to market the services of Amundi Pioneer
globally. The Trustees noted that Amundi Pioneer may have access to additional
research capabilities as a result of the Transaction and Amundi's enhanced
global presence that may contribute to an increase of the overall scale of
Amundi Pioneer. The Trustees considered that Amundi Pioneer and the Trust are
expected to receive reciprocal intangible benefits from the relationship,
including mutual brand recognition and, for the Trust, direct and indirect
access to the resources of a large global asset manager. The Trustees concluded
that any such benefits received by Amundi Pioneer as a result of its
relationship with the Trust were reasonable.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including the Independent Trustees, concluded that the New Management
Agreement and the Interim Management Agreement for the Trust, including the fees
payable thereunder, were fair and reasonable and voted to approve the New
Management Agreement and the Interim Management Agreement, and to recommend that
shareholders approve the New Management Agreement.
74 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman Lisa M. Jones, President and Chief
David R. Bock Executive Officer
Benjamin M. Friedman Mark E. Bradley, Treasurer and
Margaret B.W. Graham Chief Financial Officer
Lisa M. Jones Christopher J. Kelley, Secretary and
Lorraine H. Monchak Chief Legal Officer
Marguerite A. Piret
Fred J. Ricciardi
Kenneth J. Taubes
Investment Adviser and Administrator
Amundi Pioneer Asset Management, Inc., formerly Pioneer Investment
Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Amundi Pioneer Distributor, Inc., formerly Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Transfer Agent
American Stock Transfer & Trust Company
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at www.amundipioneer.com. This information is also available on the Securities
and Exchange Commission's web site at www.sec.gov.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/17 75
This page is for your notes.
76 Pioneer Floating Rate Trust | Semiannual Report | 5/31/17
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
web site www.amundipioneer.com.
The Trust files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2017 Amundi Pioneer Asset Management 19389-11-0717
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Floating Rate Trust
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date July 28, 2017
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date July 28, 2017
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date July 28, 2017
* Print the name and title of each signing officer under his or her signature.