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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21654
Pioneer Floating Rate Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, 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, 2007 through May 31, 2008
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
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PIONEER
-----------------------
FLOATING
RATE
TRUST
PHD
Ticker Symbol
Semiannual
Report
5/31/08
[LOGO]PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Portfolio Summary 4
Prices and Distributions 5
Performance Update 6
Portfolio Management Discussion 7
Schedule of Investments 13
Financial Statements 31
Notes to Financial Statements 35
Trustees, Officers and Service Providers 46
President's
Dear Shareowner,
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Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. They
are particularly useful guides to keep in mind today, at a time when markets
around the globe are being buffeted by problems in the financial and real
estate industries and by concerns about a slowing economy.
After an extended period of steady economic growth with sustained low
unemployment and low inflation, the U.S. economy ran into difficulty as 2007
drew to a close. Investors in subprime mortgages were forced to mark down the
value of their assets, imperiling leveraged balance sheets. The ensuing credit
crunch forced central banks in the United States and Europe to assume the role
of "lender of last resort" to keep credit markets functioning. Conditions
worsened in the first quarter of 2008, as falling prices, margin calls and
deleveraging continued, and while the auction rate preferred market seized up.
The U.S. Federal Reserve expanded its lender-of-last- resort role to include
lending to primary dealers and continued to cut interest rates. By then,
recession talk was widespread as concern grew that falling home prices, rising
unemployment, sharply rising food and energy prices, and disruptions in
financial markets posed a significant threat to economic growth.
Markets reacted poorly to the developments leading up to the near failure of
Bear Stearns, with fixed-income credit spreads (the difference in rates between
corporate and U.S. government bonds) widening dramatically and stock markets
declining, wiping out the positive returns markets had delivered in the
preceding calendar year. Treasury bond prices rose as the market underwent a
flight to quality. In the eleven weeks between the Bear Stearns event and the
end of May 2008, though, there were no further market crises, recession fears
faded in light of positive economic news, and stock markets rallied, recouping
some of their first-quarter losses, while Treasury bond prices fell back.
The Dow Jones Industrial Average and Standard & Poor's 500 Index each fell 4%,
and the NASDAQ Composite Index fell 5% over the six-month period ending May 31,
2008. The MSCI EAFE Developed Market Index of international stock markets fell
5% during the same period, and the MSCI Emerging Markets Index fell 2%. The
U.S. investment-grade bond market, as measured by the Lehman Brothers Aggregate
Bond Index, rose 1% over the six-month period ending
2
Letter
May 31, 2008 while the U.S. high-yield bond market, as measured by the Merrill
Lynch High Yield Bond Master II Index, rose 2% during the same period.
A weak U.S. dollar and substantial fiscal and monetary stimulus are potent
support for the economy. Markets remain volatile, and falling risk tolerances
and deleveraging may depress asset prices in the short term, but equity and
corporate bond valuations look attractive over a longer time horizon unless the
U.S. economy falls into a severe and protracted recession.
Sudden swings in the markets are always to be expected, but they are difficult
to time. Maintaining a long-term time horizon, being diversified, and paying
attention to asset allocation are important investment principles. As always,
we encourage you to work closely with your financial advisor to find the mix of
stocks, bonds and money market assets that is best aligned to your particular
risk tolerance and investment objective and to adhere to a strategic plan
rather than letting emotions drive investment decisions.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA Inc.
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of the opinion of Trust management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Please consider the Trust's investment objectives, risks, charges and expenses.
Contact your advisor or Pioneer Investments for a prospectus containing this
information. Please read the information carefully.
3
Pioneer Floating Rate Trust
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PORTFOLIO SUMMARY 5/31/08
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE TABLE BELOW WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL]
Senior Secured Loans 88.7%
Corporate Bonds 7.0%
Temporary Cash Investment 2.7%
Collateralized Loan Obligations 0.9%
Convertible Corporate Bonds 0.4%
Common Stock 0.2%
Warrants 0.1%
Claims* 0.0%
* Amount is less than 0.01%
Portfolio Quality
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(As a percentage of total investment portfolio; based on S&P ratings)
[THE TABLE BELOW WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL]
BBB 0.6%
BB 5.0%
B 63.5%
CCC 13.1%
D 0.3%
Not-rated 14.8%
Cash Equivalents 2.7%
These securities are judged to be similar but slightly lower in quality than
the rest of the portfolio.
10 Largest Holdings
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(As a percentage of long-term holdings)*
1. HCA, Inc., Tranche B Term Loan, 4.946%, 11/18/13 3.22%
2. Millennium Digital Media Systems LLC, First Lien Term Loan,
9.65%, 6/30/11 2.87
3. SMG H5 Pty, Ltd., Facility Term Loan A, 10.339%, 12/24/12 2.85
4. Univision Communications, Inc., Initial Term Loan,
4.631% - 5.149%, 9/29/14 2.75
5. Azithromycin Royalty Sub LLC, 16.0%, 5/15/19 (144A) 2.47
6. Solutia, Inc., Term Loan, 8.5%, 2/28/14 2.41
7. Charter Communications Operating LLC, Replacement Term Loan,
4.89% - 4.9%, 3/6/14 2.30
8. Cequel Communications LLC, Term Loan, 4.728% - 6.25%, 11/5/13 1.75
9. Cricket Communications, Inc., Term Loan B, 5.696%, 6/16/13 1.59
10. Talecris Biotherapeutics Holdings Corp., First Lien Term Loan,
6.03% - 6.57%, 2/6/13 1.49
* This list excludes temporary cash and derivative investments. 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.
4
Pioneer Floating Rate Trust
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PRICES AND DISTRIBUTIONS
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Share Prices and Distributions
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5/31/08 11/30/07
Market Value
per Common Share $14.62 $16.79
Net Asset Value
per Common Share $15.73 $18.07
Market Discount 7.1% 7.1%
Net
Distributions Investment Short-Term Long-Term
per Common Share Income Capital Gains Capital Gains
(12/1/07 - 5/31/08) $1.0136 $0.2213 $0.1267
Yields
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5/31/08 11/30/07
Distribution Yield at
Market Price 12.68% 11.35%
Distribution Yield at
Net Asset Value 11.78% 10.54%
30-day SEC Yield 12.96% 15.14%
Past performance data quoted represents past performance, which is no guarantee
of future results.
5
Pioneer Floating Rate Trust
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PERFORMANCE UPDATE 5/31/08
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Investment Returns
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The mountain chart on the right shows the change in market value, including
reinvestment of dividends and distributions, of a $10,000 investment made in
common shares of Pioneer Floating Rate Trust, compared to that of the Credit
Suisse First Boston (CSFB) Leveraged Loan Index, an index of senior secured
U.S. dollar denominated loans.
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Cumulative Total Returns
(As of May 31, 2008)
Net
Asset Market
Period Value Price
Life-of-Trust
(12/23/04) 14.66% 1.56%
1 Year -9.41 -17.63
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[THE TABLE BELOW WAS REPRESENTED BY A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer CSFB
Floating Leveraged
Rate Trust Loan Index
12/04 $10,000 $10,000
5/05 9,023 10,008
5/06 10,913 10,039
5/07 10,693 10,063
5/08 10,156 10,074
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below Net Asset Value "NAV", due to such factors as
interest rate changes, and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Closed-end funds, unlike open-end funds, are not continuously offered. There is
a one-time public offering and, once issued, shares of closed-end funds are
sold in the open market through a stock exchange and frequently trade at prices
lower than their NAV. NAV per common share is total assets less total
liabilities, which includes preferred shares, divided by the number of common
shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher than market
price, dividends are assumed to be reinvested at prices obtained under the
Trust's dividend reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions.
Index comparison begins on 12/31/04. The CSFB Leveraged Loan Index is a
representative index of tradeable, senior, secured U.S. dollar-denominated
loans. The index began in January 1992. Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Trust returns, do not reflect any
fees, expenses or sales charges. You cannot invest directly in an index.
6
Pioneer Floating Rate Trust
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/08
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In the following report, portfolio managers Mark Okada and Joseph Dougherty of
Highland Capital Management, the subadviser of Pioneer Floating Rate Trust,
discuss the Trust's performance and investment process over the six months
ended May 31, 2008. Mark Bradley, Treasurer of the Trust, discusses the issues
regarding auction-rate securities and the Trust's dividend.
Q: How did the Trust perform for the six-month period ended May 31, 2008?
A: For the six-month period May 31, 2008, Pioneer Floating Rate Trust returned
-5.05% at net asset value, including reinvestment of dividends. The market
price return over that same period was -5.02%, and the Trust was selling
at a discount of market price to net asset value of 7.1% on May 31, 2008.
The Trust's benchmark, the Credit Suisse Leveraged Loan Index, returned
-1.61% for the six-month period ended May 31, 2008. The index has an
average rating of BB versus the Trust's average rating, which is closer to
B (See Portfolio Quality composition on page 4). Problems in the credit
markets, stemming from the subprime mortgage debacle, led to one of the
most volatile periods in many years for the credit market. During this
period investors gravitated toward the highest quality investments. As a
result, higher-quality securities outperformed the market. Unlike
open-ended funds, a closed-end fund's price goes up and down based on
market supply and demand, independent of a fund's net asset value per
share. During the six months ending May 31, 2008, the Federal funds target
rate (the rate banks charge each other for overnight loans) declined to
2.00%, and the yield on the 3-month London Interbank Offering Rate (LIBOR)
declined to 2.72%. LIBOR is the rate of interest at which banks in the
London interbank market borrow funds from each other.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher
than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
7
Pioneer Floating Rate Trust
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/08 (continued)
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Index returns assume reinvestment of all dividends and distributions, if
any. Indices are unmanaged, have no fees or costs and are not available for
investment. The performance of the indices may be materially different
from the individual performance attained by a specific investor. In
addition, the investors' holdings may differ significantly from the
securities that comprise the indices. The indices have not been selected
to represent an appropriate benchmark to compare an investor's performance,
but rather are disclosed to allow for comparison of the investor's
performance to that of certain well-known and widely recognized indices.
The Credit Suisse Leveraged Loan Index is designed to mirror the investable
universe of the $U.S.-denominated leveraged loan market. The index
inception is January 1992. The index frequency is monthly. New loans are
added to the index on their issuance date if they qualify according to the
following criteria: Loans must be rated "5B" or lower; only funded term
loans are included; the original maturity must be at least one year; and
the Issuers must be domiciled in developed countries (Issuers from
developing countries are excluded). Fallen angels are added to the index
subject to the new loan criteria. (Source: Credit Suisse, Description and
Inclusion Rules of the Credit Suisse Leveraged Loan Index, January 18,
2006).
Q: What was the investment environment like for floating-rate loans during the
six-month period ending May 31, 2008?
A: The crisis in the broader credit market led to significant volatility in
corporate bank loans for the six months ended May 31, 2008. The Credit
Suisse Leveraged Loan Index returned -1.61% during the period - a time
that includes January and February 2008, which were the second and third
worst months on record for the index. During January and February 2008,
the Index returned -3.10% and -2.39%, respectively. The loan market
rallied in April 2008, which was the best month on record, with the Index
returning 3.31%.
8
Pioneer Floating Rate Trust
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Q: What factors contributed to the volatility in floating-rate loans during the
six-month period ending May 31, 2008?
A: We believe the loan market correction remains primarily technical in nature
and has been driven in part by a loss of demand for collateralized loan
obligations (CLOs) and overall concern for the health of the financial
system and the economy. The CLO market, while recently showing some life,
remains below the pre-credit crash levels. Opportunistic, non-traditional
loan buyers, such as pension funds and private equity firms, have stepped
in, but have been unable completely to fill the void left by the CLO
market. The inventory of loans has worked its way down from $156 million
at the beginning of 2008 to $87 million at the end of May 2008.
Approximately 30% of the remaining inventory is composed of two large
leveraged buyouts (LBOs) - Clear Channel and Bell Canada (BCE). With the
available loan supply coming down, market participants are looking for
leveraged buyers to come into the market so that the average bid on loan
indices will rise.
Q: What changes did you make to the portfolio during the six-month period
ending May 31, 2008?
A: In May 2008, Pioneer announced a cut in the dividend in the Trust from
$0.145 to $0.115 per share. The decision was made in response to the
decreasing earning rate of the floating-rate positions in the Trust. The
earnings rate of the Trust declined largely because of the decrease in
LIBOR - the base rate used by the floating-rate instruments in determining
the total coupon of the investments. We rebalanced some of our floating
rate investments into fixed-rate investments to maintain the high current
income in the Trust, as a response to the decreasing LIBOR rate and the
corresponding effect it has had on the coupon earned by the floating-rate
investments in the Trust. On November 30, 2007, the Trust had 93.4% of its
portfolio invested in Senior Secured loans. As of the May 31, 2008, the
Trust had 88.7% of its portfolio invested in Senior Secured loans.
Q: What is your outlook for floating-rate securities and the Trust?
A: Recent collateral and interest coverage levels suggest the corporate
bank loan market is fundamentally solid; and while we expect
defaults to increase, we do not expect them to approach the
9
Pioneer Floating Rate Trust
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/08 (continued)
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relatively high levels priced in by the market during the first quarter
of 2008.
The current market correction could be viewed as a positive for the Trust
by creating potential attractive buying opportunities. Our analysts have
spotted some potentially good buying opportunities for the remainder of
2008 as the supply/demand dynamic becomes more attractive and the CLO
market reopens, or other buyers enter, adding support to the market.
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The following two questions are responded to by Mark Bradley,
Treasurer of the Trust.
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Q: Have the problems involving auction-rate securities affected the Trust
during the six-month period ended May 31, 2008?
A: The auction-rate preferred shares (ARPS) market began failing in
mid-February 2008. As of May 31, 2008, the Trust's assets included
approximately $234 million attributable to ARPs, representing
approximately 37% of the Trust's total assets. As a result of the auction
failures, the Trust now pays dividends on the ARPs at a "maximum rate."
The maximum rate paid on the Trust's ARPs since February 2008, has ranged
between 4.0% and 4.3%. As the maximum rates remain lower than the earnings
rates produced by the Trust's portfolio of securities, leverage is still
currently an effective strategy for the Trust. However, Pioneer is very
concerned about the shareholders who own ARPs and are in need of
liquidity. Pioneer continues to explore and evaluate potential solutions
to the ARPs issue, including obtaining alternative forms of leverage.
Consistent with its duty to common shareholders, the Board of Trustees
continues to meet with management to discuss the specific circumstances of
each Pioneer closed-end fund that has issued ARPs. At this time, there can
be no assurance that Pioneer will be successful in obtaining alternative
forms of leverage or that such leverage will be more effective than the
ARPs.
Q: Why was the Trust's dividend cut in May 2008?
A: We set the dividend rate at a level close to the earnings rate for the
Trust. The Trust does not use any return-of-capital to supplement the
distribution. U.S. interest rates, as measured by three-month LIBOR,
have generally followed the path of Federal funds
10
Pioneer Floating Rate Trust
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rate over the past six months ended May 31, 2008, which declined 2.00% at
the end of May 2008, from 5.25% in September 2007, when the Federal
Reserve began cutting the Federal funds target rate. The Trust's income is
derived from the floating-rate loans held in the portfolio. Over the past
few months, these loans have reset, and the Trust is taking in less income
than it had been. The dividend cut translates into a yield of 8.8%, based
on net asset value, and a market yield of about 9.4%, as of the May 31,
2008 close.
Information regarding the Trust's principal investment risks is contained
in the Trust's original offering prospectus. Please refer to this document
when considering the Trust's risks.
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.
When interest rates rise, the prices of fixed-income securities in the
Trust will generally fall. Conversely, when interest rates fall the prices
of fixed-income securities in the Trust will generally rise. The
floating-rate feature of the Trust means that the Trust will not
experience capital appreciation in a declining interest-rate environment.
Investments in the Trust are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet
their debt obligations.
The Trust may invest in derivative securities, which may include futures
and options. These types of instruments can increase price fluctuation.
The Trust is not limited in the percentage of its assets that may be
invested in floating-rate senior loans and other securities deemed to be
illiquid. Illiquid securities may be difficult to dispose of at a fair
price at the times when the Trust believes it is desirable to do so and
their market price is generally more volatile than that of more liquid
securities. Illiquid securities are also more difficult to value, and
investment of the Trust's assets in illiquid securities may restrict the
Trust's ability to take advantage of market opportunities.
11
Pioneer Floating Rate Trust
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/08 (continued)
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The Trust currently uses leverage through the issuance of preferred
shares. The Trust also is authorized to borrow from banks and to issue
debt securities, which are other forms of leverage. Leverage creates
significant risks, including the risk that the Trust's income or capital
appreciation will not be sufficient to cover the cost of leverage, which
may adversely affect the return for the holders of common shares.
The Trust is not diversified, which means that it can invest a higher
percentage of its assets in any one issuer than a diversified fund. Being
non-diversified may magnify the Trust's losses from adverse events
affecting a particular issuer.
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 the opinion of the Trust's sub-adviser as of
the date of this report. These statements should not be relied upon for
any other purposes. Past performance is no guarantee of future results,
and there is no guarantee that market forecasts discussed will be
realized.
12
Pioneer Floating Rate Trust
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SCHEDULE OF INVESTMENTS 5/31/08 (unaudited)
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Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
COLLATERALIZED LOAN
OBLIGATIONS - 1.4% of Net Assets*
Financial - 1.4%
1,000,000(a)(b) BBB/Baa2 ACA, Ltd. 2007-1A D, 5.063%,
6/15/22 (144A) $ 566,200
1,000,000(a)(b) BBB/Baa2 Goldman Sachs Asset Management,
Plc, 2007-1A D, 5.623%, 8/1/22
(144A) 607,700
1,000,000(a)(b) BBB/Baa2 Gulf Stream Sextant, Ltd., 2007-1A D,
5.2%, 6/17/21 (144A) 648,500
1,000,000(a)(b) BB/Ba2 Landmark CDO, Ltd., 2007-9A E,
6.213%, 4/15/21 (144A) 590,200
1,000,000(a)(b) BBB/Baa2 Primus, Ltd., 2007-2A D, 5.113%,
7/15/21 (144A) 664,400
1,000,000(a)(b) BB/Ba2 Rampart, Ltd., 2006-1A, 6.284%,
4/18/21 (144A) 553,700
1,000,000(a)(b) BB/Ba2 Stanfield McLaren, Ltd., 2007-1A B2L,
7.138%, 2/27/21 (144A) 597,969
2,000,000(a)(b) BBB/Baa2 Stone Tower, Ltd., 2007-6A C, 4.066%,
4/17/21 (144A) 1,174,000
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TOTAL COLLATERALIZED
LOAN OBLIGATIONS
(Cost $6,033,529) $ 5,402,669
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SENIOR SECURED FLOATING RATE LOAN
INTERESTS - 143.9% of Net Assets*
Aerospace - 4.9%
2,786,636 B+/Ba3 AWAS Capital, Inc., First Lien Term
Loan, 4.375%, 3/15/13 $ 2,445,273
990,000 B/Ba2 Delta Airlines, Inc., Credit-Linked Deposit
Loan, 2.961% - 6.84%, 4/30/12 847,157
1,985,000 B/B2 Delta Airlines, Inc., Second Lien Term
Loan, 6.149%, 4/30/14 1,458,975
4,352,991 BB-/Ba2 DynCorp International LLC, New Term
Loan, 4.625%, 2/11/11 4,211,519
977,500 CC/Caa2 IAP Worldwide Services, Inc., First Lien
Term Loan, 9.0%, 12/30/12 819,471
6,940,000 B+/Ba3 Northwest Airlines, Inc., Term Loan,
4.52%, 8/21/13 5,586,700
4,950,000 B-/B2 US Airways Group, Inc., Term Loan,
4.883%, 3/24/14 3,413,025
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$ 18,782,120
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The accompanying notes are an integral part of these financial statements. 13
Pioneer Floating Rate Trust
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SCHEDULE OF INVESTMENTS 5/31/08 (unaudited) (continued)
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Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Broadcasting - 17.6%
11,388,722 B+/B1 Cequel Communications LLC, Term
Loan, 4.728% - 6.25%, 11/5/13 $ 10,638,490
2,025,000 NR/B1 Insight Midwest Holdings LLC, Term
Loan B, 4.69%, 4/7/14 1,940,926
9,096,474 CCC+/Ba3 Metro-Goldwyn-Mayer, Inc., Tranche B
Term Loan, 8.108%, 4/9/12 7,386,619
992,481 CCC+/Ba3 Metro-Goldwyn-Mayer, Inc., Tranche B-1
Term Loan, 8.448%, 4/9/12 805,925
989,994 B/B1 NEP II, Inc., Term Loan B, 4.947%,
2/16/14 900,070
7,000,000 CCC+/Caa1 Paxson Communications Corp., Term
Loan, 5.963%, 1/15/12 5,670,000
AUD 19,523,810 B-/NR SMG H5 Pty, Ltd., Facility Term Loan A,
10.339%, 12/24/12 17,270,610
2,968,973 B/Ba3 Sunshine Acquisition, Ltd., Facility Term
Loan, 4.79%, 3/20/12 2,698,054
19,662,000 B-/Ba3 Univision Communications, Inc., Initial
Term Loan, 4.631% - 5.149%,
9/29/14 16,664,784
3,799,194 CCC+/B1 Young Broadcasting, Inc., Term Loan,
5.0% - 5.25%, 11/3/12 3,438,271
------------
$ 67,413,749
------------
Cable/Wireless Video - 10.2%
15,627,171 B-/B1 Charter Communications Operating
LLC, Replacement Term Loan,
4.89% - 4.9%, 3/6/14 $ 13,936,592
6,947,500 B/B2 Knology, Inc., Term Loan, 4.934%,
6/30/12 6,426,438
19,687,914(a)(c) CCC+/Caa2 Millennium Digital Media Systems LLC,
First Lien Term Loan, 9.65%, 6/30/11 17,423,804
1,428,204 NR/NR Millennium Digital Media Systems LLC,
Revolver Credit Loan, 9.65% -
9.82%, 6/30/11 1,371,076
------------
$ 39,157,910
------------
Chemicals - 4.0%
1,000,000(a) B/B2 Panda Hereford Ethanol, L.P., Tranche A
Term Loan, 6.201%, 7/28/13 $ 910,000
14,975,000 B+/B1 Solutia, Inc., Term Loan, 8.5%, 2/28/14 14,593,137
------------
$ 15,503,137
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14 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
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Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Consumer - Durables - 0.4%
1,699,924 B/B1 Rexair LLC, First Lien Term Loan,
6.946% - 6.954%, 6/30/10 $ 1,572,430
------------
Consumer - Non-Durables - 1.6%
994,987(a) B/B3 Appleseed's Intermediate Holdings,
Inc., First Lien Term Loan,
6.38% - 8.49%, 4/30/13 $ 721,366
619,086 B-/Caa1 Solo Cup Co., Term Loan B-1,
5.96% - 6.3%, 2/27/11 612,556
3,997,837 CCC+/B2 Spectrum Brands, Inc., Dollar Term
Loan B, 6.734% - 8.62%, 3/30/13 3,819,601
201,369 CCC+/B2 Spectrum Brands, Inc., LC Loan,
2.309%, 3/30/13 192,392
987,500(a) B/B1 Totes Isotoner Corp., First Lien Term
Loan, 5.13% - 6.75%, 1/31/13 814,687
------------
$ 6,160,602
------------
Diversified Media - 5.8%
1,980,000 B/B1 Penton Media Holdings, Inc., First Lien
Term Loan, 4.631% - 5.149%,
2/1/13 $ 1,613,700
3,500,000 B/B1 Penton Media Holdings, Inc., Second
Lien Term Loan, 7.899%, 2/1/14 2,520,000
11,910,000 B-/B2 Tribune Co., Initial Tranche B Advance
Term Loan, 5.542%, 6/4/14 8,850,619
7,466,667 B-/B2 Tribune Co., Tranche X Advance Term
Loan, 4.775%, 6/4/09 7,109,334
213,333 B+/Ba2 Valassis Communications, Inc., Delayed
Draw Term Loan, 4.21%, 3/2/14 201,956
645,467 B+/Ba2 Valassis Communications, Inc., Tranche
B Term Loan, 4.45%, 3/2/14 611,042
1,402,494 B/B2 Wallace Theater Corp., First Lien Term
Loan, 5.95%, 7/31/09 1,304,320
------------
$ 22,210,971
------------
Energy - 5.4%
2,666,386 B-/B3 ATP Oil & Gas Corp., First Lien Term
Loan, 5.881% - 6.454%, 4/14/10 $ 2,609,725
500,000 B+/B1 Big West Oil LLC, Delayed Advance
Term Loan, 4.966%, 5/15/14 469,687
1,770,000 B+/B1 Big West Oil LLC, Initial Advance Term
Loan, 5.0%, 5/15/14 1,662,694
The accompanying notes are an integral part of these financial statements. 15
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/08 (unaudited) (continued)
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Energy - (continued)
729,730 B/B2 Coffeyville Resources LLC, Funded LC
Loan, 2.598% - 5.131%, 12/28/10 $ 710,270
2,368,017 B/B2 Coffeyville Resources LLC, Tranche D
Term Loan, 5.448% - 7.0%, 12/30/13 2,304,869
466,276 NR/NR Delphi Acquisition Holding I B.V., Facility
Term Loan B-1, 5.571%, 1/12/15 439,174
466,276 NR/NR Delphi Acquisition Holding I B.V., Facility
Term Loan C-1, 5.571%, 1/11/16 450,394
2,000,000(a) B-/Caa2 III Exploration II, L.P., Second Lien Term
Loan, 9.18% - 11.23%, 4/29/14 1,600,000
2,971,125(a) B-/B2 III Exploration II, L.P., Term Loan,
6.17% - 8.15%, 10/29/13 2,584,879
945,280(a)(d) NR/NR Monitor U.S. Finco, Inc., Second Lien
Term Loan, 17.198%, 1/11/15 449,008
1,250,000 NR/NR TARH E&P Holdings, L.P., First Lien
Term Loan, 7.682%, 6/29/12 1,187,500
4,676,353(c) CCC+/NR Value Creation, Inc., Term Loan,
10.21% - 12.043%, 7/7/12 4,536,062
2,000,000 B/Caa1 Venoco, Inc., Second Lien Term Loan,
6.688%, 9/20/11 1,908,334
------------
$ 20,912,596
------------
Financial - 1.1%
531,103 B/B2 HUB International Holdings, Inc., Delay
Draw Term Loan, 5.196%, 6/13/14 $ 482,640
3,040,748 B/B2 HUB International Holdings, Inc., Initial
Term Loan, 5.196%, 6/13/14 2,763,279
1,000,000 NR/Ba2 Kepler Holdings, Ltd., Term Loan,
10.33%, 6/30/09 945,000
------------
$ 4,190,919
------------
Food & Tobacco - 1.9%
987,500(a) B+/Ba3 Aramark Canada, Ltd., Canadian Term
Loan, 4.571%, 1/27/14 $ 923,312
1,782,116 B/B1 OSI Restaurant Partners LLC,
Incremental Term Loan,
5.0%, 6/16/14 1,541,975
142,337 B/B1 OSI Restaurant Partners LLC, Pre-Funded
Revolver Credit Loan, 2.67%, 6/14/13 123,157
4,962,500 B-/B2 Pinnacle Foods Finance LLC, Term
Loan, 5.209% - 5.438%, 4/2/14 $ 4,665,638
------------
$ 7,254,082
------------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Forest Products & Containers - 0.2%
833,333 B+/Ba3 Newark Group, Inc., Synthetic LC Loan,
4.64%, 3/9/13 $ 745,833
166,667 B+/Ba3 Newark Group, Inc., Term Loan,
4.64%, 3/9/13 149,167
------------
$ 895,000
------------
Gaming & Leisure - 7.4%
2,428,571 B+/B3 Alpha Topco, Ltd., Facility Term Loan
B-1, 7.093%, 12/31/13 $ 2,295,867
1,821,429 B+/B3 Alpha Topco, Ltd., Facility Term Loan
B-2, 7.093%, 12/31/13 1,721,900
5,000,000(a)(e) NR/NR Fontainebleau Florida Hotel LLC,
Tranche C Term Loan, 8.868%,
6/6/12 4,275,000
1,333,333 B/B1 Fontainebleau Las Vegas LLC, Initial
Term Loan, 5.922%, 6/6/14 1,135,000
2,369,368 CCC+/Caa2 Ginn LA Conduit Lender, Inc., First Lien
Tranche A Credit-Linked Deposit
Loan, 5.098%, 6/8/11 1,701,995
5,077,235 CCC+/Caa2 Ginn LA Conduit Lender, Inc., First Lien
Tranche B Term Loan, 6.196%, 6/8/11 3,647,146
753,545(a)(d) CCC/Caa3 Lake at Las Vegas Joint Venture,
New Term Loan, 10.46% - 12.0%,
2/20/12 753,545
594,829(a)(d) CCC/Caa3 Lake at Las Vegas Joint Venture,
Revolving Credit-Linked Deposit
Account Loan, 10.75%, 6/20/12 166,552
4,730,879(a)(c)(d) CCC/Caa3 Lake at Las Vegas Joint Venture, Term
Loan, 16.35% - 17.1%, 6/20/12 1,324,646
3,500,000(a) B/NR MetroFlag BP LLC, Second Lien Term
Loan, 11.451%, 7/6/08 2,887,500
2,960,994(d) D/B1 Pivotal Promontory LLC, First Lien Term
Loan, 7.5%, 8/31/10 2,205,940
1,000,000(a) B/B1 WAICCS Las Vegas 3 LLC, First Lien
Term Loan, 5.948%, 8/1/08 925,000
4,500,000(a) B/Caa2 WAICCS Las Vegas 3 LLC, Second Lien
Term Loan, 11.448%, 8/1/08 4,050,000
1,637,333 B+/B1 Yellowstone Mountain Club LLC, First
Lien Term Loan, 4.756%, 9/30/10 1,361,716
------------
$ 28,451,807
------------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/08 (unaudited) (continued)
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Healthcare - 16.6%
905,732 CCC/Caa1 Aveta, Inc., MMM Original Term Loan,
4.0%, 8/22/11 $ 793,648
118,268 CCC/Caa1 Aveta, Inc., NAMM New Term Loan,
4.0%, 8/22/11 103,632
213,113 CCC/Caa1 Aveta, Inc., NAMM Original Term Loan,
4.0%, 8/22/11 186,741
20,619 CCC/Caa1 Aveta, Inc., NAMM PHMC Acquisition
Term Loan, 4.0%, 8/22/11 18,067
742,268 CCC/Caa1 Aveta, Inc., PHMC Acquisition Term
Loan, 4.0%, 8/22/11 650,412
5,249,181 B-/B1 CCS Medical, Inc., First Lien Term
Loan, 8.1%, 9/30/12 4,553,665
4,536,632 B+/Ba3 CHS/Community Health Systems,
Inc., Funded Term Loan,
4.631% - 4.899%, 7/25/14 4,291,917
1,366,021(a) B/NR DSI Renal, Inc., Facility Term Loan,
5.0% - 7.625%, 3/31/13 1,198,683
3,394,286 B+/B1 Fenwal, Inc., Initial First Lien Term
Loan, 4.631% - 4.899%, 2/28/14 2,959,393
2,717,143 B/Ba3 Golden Gate National Senior Care LLC,
First Lien Term Loan, 5.131%,
3/14/11 2,554,114
2,000,000 B/B3 Golden Gate National Senior Care LLC,
Second Lien Term Loan, 10.131%,
9/14/11 1,860,000
2,000,000 B+/NR Graceway Pharmaceuticals LLC,
Mezzanine Loan, 13.08%, 11/1/13 1,570,000
20,737,500 B+/Ba3 HCA, Inc., Tranche B Term Loan,
4.946%, 11/18/13 19,556,064
2,977,099 CCC+/B2 LifeCare Holdings, Term Loan,
9.08%, 8/11/12 2,629,770
1,000,000 B-/Caa1 Medical Staffing Network, Inc., Second
Lien Term Loan, 9.172%, 7/2/14 965,000
7,987,500 BB-/B1 Mylan, Inc., U.S. Tranche B Term Loan,
5.688% - 6.0%, 10/2/14 7,878,175
9,875,001 B/Caa1 Talecris Biotherapeutics Holdings Corp.,
First Lien Term Loan, 6.03% - 6.57%,
12/6/13 9,060,313
18 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Healthcare - (continued)
2,955,037 B/B1 Triumph HealthCare Second Holdings
LLC, First Lien Term Loan,
5.383% - 5.59%, 7/28/13 $ 2,777,735
------------
$ 63,607,329
------------
Housing - 5.0%
1,394,286 B-/B3 Associated Materials, Inc., Term Loan,
4.9%, 8/29/10 $ 1,310,629
6,064,643 CCC+/B3 Atrium Companies, Inc., Closing Date
Term Loan, 6.21% - 6.63%,
5/31/12 5,094,300
2,350,914 B/B1 Custom Building Products, Inc., First
Lien Term Loan, 4.946% - 6.968%,
10/20/11 2,045,295
389,008(a)(c) B+/B1 Desa LLC, Term Loan, 12.75%,
11/26/11 336,492
8,025,994 B/Ba3 Realogy Corp., Initial Term Loan B,
5.722% - 7.505%, 10/10/13 6,870,821
2,409,578 B/Ba3 Realogy Corp., Synthetic LC Loan,
8.32%, 10/10/13 2,062,770
1,996,751 CCC/Caa1 Rhodes Companies LLC , First Lien
Term Loan, 6.196%, 11/21/10 1,367,774
------------
$ 19,088,081
------------
Information Technology - 10.2%
2,556,668 B/B1 Applied Systems, Inc., Term Loan,
5.193% - 7.4%, 9/26/13 $ 2,377,701
2,836,095 B+/NR DTN, Inc., Tranche C Term Loan,
5.574% - 5.8%, 3/10/13 2,779,373
4,962,312 B+/Ba1 Freescale Semiconductor, Inc., Term
Loan, 4.209%, 11/29/13 4,477,920
2,366,552 B-/B1 Infor Enterprise Solutions Holdings,
Inc., Delayed Draw Term Loan,
6.45% - 8.58%, 7/30/12 2,081,087
2,977,500 B-/B1 Infor Enterprise Solutions Holdings,
Inc., Dollar Tranche B-1 First Lien
Term Commitment, 5.45%, 3/2/14 2,568,094
The accompanying notes are an integral part of these financial statements. 19
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/08 (unaudited) (continued)
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Information Technology - (continued)
4,535,891 B-/B1 Infor Enterprise Solutions Holdings,
Inc., Initial U.S. Term Loan,
6.45% - 8.95%, 7/30/12 $ 3,988,749
4,000,000 B-/Caa2 Infor Enterprise Solutions Holdings,
Inc., Second Lien Term Loan,
6.25%, 3/2/14 2,550,000
644,999 B/B2 Inovis International, Inc., Term Loan,
6.0%%, 11/15/09 644,999
4,616,279 BB-/B1 Keane International, Inc., Closing Date
Term Loan, 4.64%, 6/4/13 3,444,898
348,837 BB-/B1 Keane International, Inc., Synthetic LC
Loan, 4.64%, 6/4/13 260,320
990,000 B+/B2 Metrologic Instruments, Inc., First Lien
Add-on Term Loan, 5.7%, 4/23/14 803,911
1,000,000 B+/Caa2 Metrologic Instruments, Inc., Second
Lien Term Loan, 8.95%, 4/24/15 940,000
1,275,000 B/B1 Quantum Corp., Term Loan, 6.196%,
7/14/14 1,160,250
3,327,536 B/B1 Serena Software, Inc., Term Loan,
4.68%, 3/11/13 3,028,058
7,806,287 B+/Ba3 SunGard Data Systems, Inc., New U.S.
Term Loan, 4.508%, 2/28/14 7,383,147
938,462 B/NR Verint Systems, Inc., Term Loan,
5.873%, 5/27/14 849,308
------------
$ 39,337,815
------------
Manufacturing - 1.3%
1,000,000 B/B1 FCI USA, Inc., Facility Term Loan B-1,
6.849%, 3/10/14 $ 941,875
1,000,000 B/B1 FCI USA, Inc., Tranche Term Loan B-5-B,
7.755%, 11/3/13 925,000
2,927,281 B/B1 Generac Acquisition Corp., First Lien
Term Loan, 7.203%, 11/11/13 2,400,370
1,000,000 B+/B1 Hunter Defense Technologies, Inc., First
Lien Term Loan B, 5.95%, 8/13/14 885,000
------------
$ 5,152,245
------------
20 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Metals & Minerals - 1.4%
1,417,222 B/B3 Algoma Steel, Inc., Term Loan, 7.33%,
6/20/13 $ 1,339,275
4,356,175 B/B3 Murray Energy Corp., First Lien Tranche
B Term Loan, 5.5%, 1/28/10 4,181,928
------------
$ 5,521,203
------------
Retail - 10.3%
8,996,811 B-/B3 Blockbuster, Inc., Tranche B Term Loan,
6.27% - 9.03%, 8/20/11 $ 8,600,952
3,843,291 B/B2 Burlington Coat Factory Warehouse
Corp., Term Loan, 4.9%, 5/28/13 3,269,199
3,000,000 B/B2 Dollar General Corp., Tranche B-1 Term
Loan, 5.994%, 7/7/14 2,688,750
3,000,000 B/B2 Dollar General Corp., Tranche B-2 Term
Loan, 5.133% - 5.649%, 7/7/14 2,688,750
2,666,667 B-/B2 Guitar Center, Inc., Term Loan,
5.9%, 10/9/14 2,386,667
15,765,928(a)(d) CCC/Caa2 Home Interiors & Gifts, Inc., Initial Term
Loan, 7.86% - 8.02%, 3/31/11 3,941,482
1,979,899 B-/B2 Michaels Stores, Inc., Replacement
Term Loan, 4.875% - 6.25%,
10/31/13 1,732,412
360,385 NR/NR Movie Gallery, Inc., First Lien Synthetic
LC Loan, 8.446% - 12.0%, 3/8/12 269,088
8,610,780 NR/NR Movie Gallery, Inc., First Lien Term
Loan, 10.0%, 3/8/12 6,429,385
5,000,000 BB-/B2 Spirit Finance Corp., Term Loan,
5.873%, 8/1/13 3,845,835
3,980,100 B/B2 Toys R Us - Delaware, Inc., Tranche B
Term Loan, 6.969%, 7/19/12 3,892,207
------------
$ 39,744,727
------------
Service - 6.8%
9,203,125(a) B/B1 Cydcor, Inc., First Lien Tranche B Term
Loan, 9.0%, 2/5/13 $ 8,650,937
997,494 B+/Ba3 First Data Corp., Initial Tranche B-1
Term Loan, 5.349% - 7.58%,
9/24/14 927,783
3,762,938(a) B/B1 Inmar, Inc., Term Loan, 5.2% - 7.33%,
4/29/13 3,537,162
1,990,000 B/B1 Orbitz Worldwide, Inc., Term Loan,
5.381% - 5.913%, 7/25/14 1,681,550
The accompanying notes are an integral part of these financial statements. 21
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/08 (unaudited) (continued)
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Service - (continued)
5,783,980 B+/B1 Sabre, Inc., Initial Term Loan, 5.244%,
9/30/14 $ 4,957,594
987,500 B-/Ba3 Total Safety U.S., Inc., First Lien
Tranche B Term Loan, 5.446%,
12/8/12 948,000
5,761,475 B/Ba3 Travelport LLC, Delayed Draw Term
Loan, 4.631%, 8/23/13 5,296,956
------------
$ 25,999,982
------------
Telecommunications - 9.9%
497,500 B/Ba3 Aeroflex, Inc., Tranche B-1 Term Loan,
6.375%, 8/15/14 $ 467,650
497,500 B/B3 Aeroflex, Inc., Tranche B-2 Term Loan,
6.875%, 8/15/14 467,650
EURO 752,152 B/NR Amsterdamse Beheer-EN
Consultingmaatschappij B.V.,
Casema Facility Term Loan B-1,
6.874%, 9/12/14 1,130,650
EURO 390,705 B/NR Amsterdamse Beheer-EN
Consultingmaatschappij B.V.,
Casema Facility Term Loan B-2,
6.874%, 9/12/14 587,316
EURO 1,142,857 B/NR Amsterdamse Beheer-EN
Consultingmaatschappij B.V.,
Casema Facility Term Loan C,
7.374%, 9/14/15 1,718,829
EURO 857,143 B/NR Amsterdamse Beheer-EN
Consultingmaatschappij B.V.,
Kabelcom Facility Term Loan B,
6.874%, 9/12/14 1,288,474
EURO 857,143 B/NR Amsterdamse Beheer-EN
Consultingmaatschappij B.V.,
Kabelcom Facility Term Loan C,
7.374%, 9/14/15 1,289,122
1,000,000(a) B-/B2 Cellnet Group, Inc., Second Lien Term
Loan, 8.5%, 10/22/11 878,333
159,222 B/Ba2 Centennial Cellular Operating Co., New
Term Loan, 4.381% - 4.696%, 2/9/11 156,117
1,000,000 B/Caa1 Hargray Acquisition Co., Second Lien
Term Loan, 8.196%, 1/29/15 975,000
22 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Telecommunications - (continued)
3,980,000 B-/Ba3 Integra Telecom Holdings, Inc., Term
Loan, 6.894% - 7.149%, 8/31/13 $ 3,766,075
6,500,000 B-/B1 Level 3 Financing, Inc., Term Loan,
4.8% - 4.96%, 3/13/14 6,014,534
EURO 1,000,000 B/NR Mediannuaire Holding, Term Loan B-2,
7.177%, 10/10/14 1,304,695
EURO 1,000,000 B/NR Mediannuaire Holding, Term Loan C,
7.677%, 10/9/15 1,304,695
EURO 16,224 BB-/NR Nordic Telephone Company Holdings
APS, Euro Facility Term Loan B-2,
6.34%, 11/30/13 24,671
EURO 21,503 BB-/NR Nordic Telephone Company Holdings
APS, Euro Facility Term Loan C-2,
6.59%, 11/30/14 32,704
628,340 B/B1 PAETEC Holding Corp., Replacement
Term Loan, 4.881%, 2/28/13 610,275
2,000,000 B+/Caa1 Pine Tree Holdings, Inc., Second Lien
Term Loan, 10.14%, 7/15/13 1,950,000
1,410,000 B+/Ba2 Stratos Global Corp., Facility Term Loan
B, 5.446%, 2/13/12 1,342,144
6,500,000 B-/B2 WideOpenWest Finance LLC, First Lien
Term Loan, 5.149% - 5.399%,
6/30/14 5,655,000
3,050,565 B-/Caa1 WideOpenWest Finance LLC, Second
Lien Term Loan, 9.375%, 6/29/15 2,516,716
EURO 1,500,000 BB-/Ba2 Wind Telecomunicazione S.p.A., Facility
Term Loan B-1, 7.622%, 5/27/13 2,275,264
EURO 1,500,000 BB-/Ba2 Wind Telecomunicazione S.p.A., Facility
Term Loan C-1, 7.624%, 5/26/14 2,276,159
------------
$ 38,032,073
------------
Transportation - 7.3%
4,162,595 B/Ba3 Affinia Group, Inc., Tranche B Term
Loan, 5.899%, 11/30/11 $ 3,808,775
9,075,710 NR/Ba2 Delphi Corp., Initial Tranche C Term
Loan, 8.5%, 12/31/08 8,935,036
7,888,863 B/Ba3 Ford Motor Co., Term Loan,
5.8%, 12/16/13 6,826,336
1,604,818 CC/Caa1 Gainey Corp., Term Loan,
9.9% - 11.25%, 4/20/12 746,241
The accompanying notes are an integral part of these financial statements. 23
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/08 (unaudited) (continued)
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Transportation - (continued)
493,750 BB-/Ba3 General Motors Corp., Secured Term
Loan, 5.059%, 11/29/13 $ 440,749
3,960,000 B+/B1 Key Safety Systems, Inc., First Lien
Term Loan, 4.65% - 7.45%, 3/8/14 2,841,300
596,138 NR/B2 SIRVA Worldwide, Inc., Revolving Credit
Loan, 9.5%, 5/12/12 596,138
1,034,117 NR/B2 SIRVA Worldwide, Inc., Term Loan,
9.5%, 5/14/12 1,034,117
5,772,549(c)(g) NR/B2 SIRVA Worldwide, Inc., Tranche B Term
Loan, 6.37%, 12/1/10 2,715,984
------------
$ 27,944,676
------------
Utility - 8.5%
4,400,000 B/NR ANP Funding I LLC, Tranche A Term
Loan, 6.184%, 7/29/10 $ 4,346,377
3,000,000 NR/B1 Bosque Power Co. LLC, Term Loan,
5.25%, 1/16/15 2,996,250
217,194 NR/B1 Boston Generating LLC, First Lien
Revolving Credit Loan, 4.705%,
12/20/13 203,658
775,691 NR/B1 Boston Generating LLC, First Lien
Synthetic LC Loan, 2.571%,
12/20/13 727,349
3,462,297 NR/B1 Boston Generating LLC, First Lien Term
Loan, 4.946%, 12/20/13 3,246,524
1,754,777 NR/B1 Coleto Creek Power, L.P., First Lien
Synthetic LC Term Loan, 2.596%,
6/28/13 1,608,546
3,624,186 NR/B1 Coleto Creek Power, L.P., First Lien
Term Loan, 5.446%, 6/28/13 3,322,171
4,912,500 NR/B1 Coleto Creek Power, L.P., Second Lien
Term Loan, 6.696%, 6/28/13 4,200,187
1,989,846 NR/NR GBGH LLC, First Lien Advance Term
Loan, 10.5% - 11.75%, 8/7/13 1,950,049
281,250 NR/B2 Mach Gen LLC, First Lien Synthetic LC
Loan, 2.446%, 2/22/13 270,352
2,680,732 NR/B2 Mach Gen LLC, First Lien Term Loan B,
4.638%, 2/22/14 2,576,853
3,000,000 B-/Ba3 Texas Competitive Electric Holdings Co.
LLC, Initial Tranche B-2 Term Loan,
5.948% - 6.478%, 10/10/14 2,830,908
24 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Utility - (continued)
747,290 NR/Ba3 TPF Generation Holdings LLC, First Lien
Synthetic LC Deposit Loan, 4.73%,
12/15/13 $ 714,410
3,758,625 NR/Ba3 TPF Generation Holdings LLC, First Lien
Term Loan, 4.696%, 12/13/13 3,593,246
234,260 NR/Ba3 TPF Generation Holdings LLC, Synthetic
Revolver Deposit Loan, 4.73%,
12/15/11 223,953
------------
$ 32,810,833
------------
Wireless Communication - 6.1%
1,142,554 NR/NR Clearwire Corp., Delayed Draw Term
Loan, 8.95% - 9.02%, 7/3/12 $ 1,091,139
5,673,196 NR/NR Clearwire Corp., Term Loan,
8.46% - 8.68%, 7/3/12 5,417,903
9,825,000 B-/Ba2 Cricket Communications, Inc., Term
Loan B, 5.696%, 6/16/13 9,661,247
7,412,386 B-/Ba3 Metro PCS Wireless, Inc., New Tranche
B Term Loan, 5.125%, 11/4/13 7,090,414
------------
$ 23,260,703
------------
TOTAL SENIOR SECURED FLOATING
RATE LOAN INTERESTS
(Cost $618,168,720) $553,004,990
------------
CLAIMS - 0.1% of Net Assets
Aerospace - 0.1%
1,200,000(a)(f) NR/NR Northwest Airlines, Inc., ALPA
Claim-Escrow, 2.5% $ 23,000
2,500,000(a)(f) NR/NR Northwest Airlines, Inc., Bell Atlantic
Claim-Escrow, 2.5% 47,918
2,500,000(a)(f) NR/NR Northwest Airlines, Inc., EDC
Claim-Escrow, 5.32% 47,918
2,130,600(a)(f) NR/NR Northwest Airlines, Inc., Flight
Attendant Claim-Escrow, 2.5% 40,837
1,500,000(a)(f) NR/NR Northwest Airlines, Inc., GE
Claim, 2.5% 28,750
1,264,500(a)(f) NR/NR Northwest Airlines, Inc., IAM
Claim-Escrow, 2.5% 24,237
1,404,900(a)(f) NR/NR Northwest Airlines, Inc., Retiree
Claim-Escrow, 2.5% 26,928
------------
TOTAL CLAIMS
(Cost $780,994) $ 239,588
------------
The accompanying notes are an integral part of these financial statements. 25
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/08 (unaudited) (continued)
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
CONVERTIBLE BONDS & NOTES - 0.6% of Net Assets
Cable/Wireless Video - 0.6%
3,951,000 CCC/Ca Charter Communications, Inc.,
6.5%, 10/1/27 $ 2,410,110
------------
TOTAL CONVERTIBLE BONDS & NOTES
(Cost $4,086,900) $ 2,410,110
------------
CORPORATE NOTES - 11.4% of Net Assets
Cable/Wireless Video - 0.2%
1,000,000 CCC/Caa3 CCH I LLC, 11.0%, 10/1/15 $ 850,000
------------
Healthcare - 6.6%
15,000,000(a) NR/NR Azithromycin Royalty Sub LLC, 16.0%,
5/15/19 (144A) $ 15,000,000
5,000,000(a) NR/NR Fosamprenavir PhaRMA, 15.5%,
6/15/18 (144A) 5,000,000
3,000,000(a) NR/NR Pharma V, 13.0%, 10/15/13 (144A) 3,060,000
994,738(a)(b)(c) NR/NR Pharma VI, 7.931%, 10/15/14 (144A) 935,054
1,500,000(a) NR/NR TCD PhaRMA, 16.0%, 4/15/24 (144A) 1,500,000
------------
$ 25,495,054
------------
Information Technology - 1.3%
400,000(b) B-/B2 Freescale Semiconductor, Inc., 6.675%,
12/15/14 $ 338,000
5,000,000(b) BB-/Ba3 NXP BV/NXP Funding LLC, 5.463%,
10/15/13 4,575,000
------------
$ 4,913,000
------------
Retail - 2.6%
4,500,000 CCC/Caa2 Blockbuster, Inc., 9.0%, 9/1/12 $ 3,746,250
7,000,000 CCC/Caa2 Claire's Stores, Inc., 10.5%, 6/1/17 3,666,250
2,500,000 CCC+/Caa1 Dollar General Corp., 10.625%,
7/15/15 2,450,000
------------
$ 9,862,500
------------
Transportation - 0.7%
3,000,000(b) CCC+/Caa1 American Tire Distributors, Inc.,
8.948%, 4/1/12 $ 2,760,000
------------
TOTAL CORPORATE NOTES
(Cost $45,201,990) $ 43,880,554
------------
26 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shares Value
COMMON STOCK - 0.3% of
Net Assets
Aerospace - 0.3%
162,018(f) Northwest Airlines Corp. $1,143,847
----------
TOTAL COMMON STOCK
(Cost $4,230,243) $1,143,847
----------
WARRANTS - 0.1% of Net
Assets
Wireless
Communication - 0.1%
400,000(a)(e) Clearwire Corp., Exp. 8/15/10 (144A) $ 440,000
----------
TOTAL WARRANTS
(Cost $956,752) $ 440,000
----------
Amount
USD ($)
TEMPORARY CASH INVESTMENT - 4.4% of Net Assets
Repurchase Agreement - 4.4%
3,370,000 Bank of America Corp., 2.35%, dated 5/30/08,
repurchase price of $3,370,000 plus accrued interest
on 6/2/08 collateralized by the following:
$4,675,742 Federal National Mortgage Association,
5.0%, 7/1/35
$147,156 Government National Mortgage
Association, 6.0%, 5/20/38 $3,370,000
----------
3,370,000 Barclays Plc, 2.33%, dated 5/30/08, repurchase price
of $3,370,000 plus accrued interest on 6/2/08 col-
lateralized by the following:
$2,037,137 Federal National Mortgage Association,
4.5% - 5.5%, 2/1/37 - 5/1/38
$689,709 Federal National Mortgage Association
(ARM), 5.519%, 3/1/36
$1,381,148 Freddie Mac Giant, 5.5% - 6.0%,
1/1/35 - 2/1/38 3,370,000
3,370,000 Deutsche Bank AG, 2.35%, dated 5/30/08,
repurchase price of $3,370,000 plus accrued interest
on 6/2/08 collateralized by the following:
$308,983 Federal National Mortgage Association
(ARM), 4.778% - 5.865%, 6/1/16 - 5/1/37
$2,896,332 Freddie Mac Giant, 5.0% - 6.5%,
4/1/19 - 6/1/38
$1,482,810 U.S. Treasury Zero Coupon -
Non-Callable Corpus, 0.0%, 8/15/25 3,370,000
The accompanying notes are an integral part of these financial statements. 27
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/08 (unaudited) (continued)
--------------------------------------------------------------------------------
Principal
Amount
USD ($)
3,370,000 JPMorgan Chase & Co., 2.32%, dated 5/30/08,
repurchase price of $3,370,000 plus accrued interest
on 6/2/08 collateralized by
$5,239,931 Federal National Mortgage Association,
4.5% - 6.0%, 4/1/23 - 5/1/36 $ 3,370,000
3,370,000 Merrill Lynch & Co., 2.35%, dated 5/30/08,
repurchase price of $3,370,000 plus accrued interest
on 6/2/08 collateralized by
$3,416,627 Freddie Mac Giant,
5.5% - 6.0%, 5/1/38 3,370,000
-------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $16,850,000) $ 16,850,000
-------------
TOTAL INVESTMENTS IN SECURITIES - 162.2%
(Cost $696,309,128)(h) $ 623,371,758
=============
OTHER ASSETS AND LIABILITIES - (1.2%) $ (4,586,757)
=============
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE - (61.0)% $(234,577,945)
-------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS - 100.0% $ 384,207,056
=============
28 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
NR Security not rated by S&P or Moody's.
* 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 certificate
of deposit (iv) other base lending rates used by commercial lenders. The
rate shown is the coupon rate accruing at May 31, 2008.
(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, 2008 the value of these securities amounted to $31,337,723 or
8.2% of total net assets applicable to common shareowners.
(a) Indicates a security that has been deemed illiquid. The aggregate cost of
illiquid securities is $111,442,695. The aggregate value $89,929,699
represents 23.4% of the total net assets.
(b) Floating Rate Note. The rate shown is the coupon rate at May 31, 2008.
(c) Payment-in-Kind (PIK) security which may pay interest in additional
principal amount.
(d) Security is in default and is non-income producing.
(e) Security is fair valued (See Note A).
(f) Non-income producing.
(g) Pending corporate restructuring.
(h) At May 31, 2008, the net unrealized loss on investments based on cost for
federal income tax purposes of $696,378,446 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 4,635,989
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (77,642,677)
------------
Net unrealized loss $(73,006,688)
============
For financial reporting purposes net unrealized loss on investments was
$72,937,370 and cost of investments aggregated $696,309,128.
Purchases and sales of securities (excluding temporary cash investments) for
the period ended May 31, 2008, aggregated $108,321,658 and $115,849,149,
respectively.
Glossary of Terms:
LC - Letter of Credit
Principal amounts are denominated in U.S. dollars unless otherwise noted.
AUD - Australian Dollar
EURO - Euro
The accompanying notes are an integral part of these financial statements. 29
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/08 (unaudited) (continued)
--------------------------------------------------------------------------------
FAS 157 Footnote Disclosures
Various inputs are used in determining the value of the Trust's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
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 risk,
etc.)
Level 3 - significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of May 31, 2008, in valuing
the Trust's assets:
Valuation Inputs Investments in Securities
-------------------------------------------------------------------------------
Level 1 - Quoted Prices $ 1,143,847
Level 2 - Other Significant Observable Inputs 616,825,242
Level 3 - Significant Unobservable Inputs 5,402,669
------------
Total $623,371,758
============
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
Investments in Securities
-------------------------------------------------------------------------------
Balance as of 11/30/07 $ -
Realized gain (loss) -
Change in unrealized appreciation (depreciation) (630,860)
Net purchases (sales) 6,033,529
Transfers in and out of Level 3 -
----------
Balance as of 5/31/08 $5,402,669
==========
30 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
-------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 5/31/08 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Investments in securities, at value (cost $696,309,128) $623,371,758
Foreign currencies, at value (cost $36,987) 36,987
Receivables -
Investment securities sold 9,856,030
Paydown 232,782
Interest and foreign tax reclaim 5,975,992
Commitment fees 11,145
Prepaid expenses 22,856
------------
Total assets $639,507,550
------------
LIABILITIES:
Payables -
Investment securities purchased $ 19,130,635
Depreciation on unfunded corporate loans 358,632
Unamortized facility fee 28,869
Due to custodian 608,953
Due to affiliates 407,551
Accrued expenses and other liabilities 187,909
------------
Total liabilities $ 20,722,549
------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 9,380
shares, including dividends payable of $77,945 $234,577,945
------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $462,925,899
Undistributed net investment income 3,152,408
Accumulated net realized loss on investments and foreign
currency transactions (8,634,326)
Net unrealized loss on investments (73,296,002)
Net unrealized gain on foreign currency assets and liabilities
denominated in foreign currencies 59,077
------------
Net assets applicable to common shareowners $384,207,056
============
NET ASSET VALUE PER SHARE:
No par value, (unlimited number of shares authorized)
Based on $384,207,056/24,428,148 common shares $ 15.73
============
The accompanying notes are an integral part of these financial statements. 31
Pioneer Floating Rate Trust
-------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
-------------------------------------------------------------------------------
For the Six Months Ended 5/31/08
INVESTMENT INCOME:
Interest (net of foreign taxes withheld $88,846) $26,137,020
Facility and other fees 943,877
-----------
Total investment income $ 27,080,897
------------
EXPENSES:
Management fees $ 2,197,197
Administrative fees 249,095
Transfer agent fees and expenses 26,146
Auction agent fees 309,854
Custodian fees 55,891
Registration fees 11,509
Professional fees 52,850
Printing expenses 18,339
Trustees' fees 9,224
Pricing fees 23,269
Insurance fees 7,471
Miscellaneous 12,920
-----------
Total expenses $ 2,973,765
------------
Net investment income $ 24,107,132
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Investments $(5,146,522)
Forward foreign currency contracts and other
assets and liabilities denominated in foreign
currencies (1,044,023) $ (6,190,545)
----------- ------------
Change in net unrealized gain (loss) on:
Investments (37,082,934)
Unfunded corporate loans (15,133)
Foreign currency contracts and other assets and
liabilities denominated in foreign currencies 488,023 $(36,610,044)
----------- ------------
Net loss on investments and foreign currency
transactions $(42,800,589)
------------
DIVIDENDS AND DISTRIBUTIONS TO PREFERRED
SHAREOWNERS FROM:
Net investment income $(4,547,443)
Net realized gains (783,227)
-----------
Total distributions $ (5,330,670)
------------
Net decrease in net assets applicable to common
shareowners resulting from operations $(24,024,127)
============
32 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
-------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
For the Six Months Ended 5/31/08 and the Year Ended 11/30/07, respectively
Six Months
Ended Year
5/31/08 Ended
(unaudited) 11/30/07
FROM OPERATIONS:
Net investment income $ 24,107,132 $ 56,186,189
Net realized gain (loss) on investments and foreign
currency transactions (6,190,545) 10,056,861
Change in net unrealized gain (loss) on
investments and foreign currency transactions (36,610,044) (45,874,105)
Dividends and distributions to preferred
shareowners from
Net investment income (4,547,443) (12,518,844)
Net realized gains (783,227) (24,294)
------------ ------------
Net increase (decrease) in net assets
applicable to common shareowners
resulting from operations $(24,024,127) $ 7,825,807
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO COMMON
SHAREOWNERS:
Net investment income
($1.014 and $1.905 per share, respectively) $(24,760,370) $(46,436,882)
Net realized gains
($0.348 and $0.004 per share, respectively) (8,500,996) (91,944)
------------ ------------
Total dividends to common shareowners $(33,261,366) $(46,528,826)
------------ ------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ - $ 1,940,809
------------ ------------
Net increase in net assets applicable to
common shareowners resulting from Trust
share transactions $ - $ 1,940,809
------------ ------------
Net decrease in net assets applicable to
common shareowners $(57,285,493) $(36,762,210)
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS:
Beginning of period $441,492,549 $478,254,759
------------ ------------
End of period $384,207,056 $441,492,549
============ ============
Undistributed net investment income $ 3,152,408 $ 8,353,089
============ ============
The accompanying notes are an integral part of these financial statements. 33
Pioneer Floating Rate Trust
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 5/31/08
-------------------------------------------------------------------------------
Six Months
Ended Year Year 12/28/04(b)
5/31/08 Ended Ended to
(unaudited) 11/30/07 11/30/06 11/30/05
Per Common Share Operating Performance
Net asset value, beginning of period $ 18.07 $ 19.66 $ 19.08 $ 19.10(c)
-------- -------- -------- --------
Increase (decrease) from investment operations:(a)
Net investment income 0.99 2.30 2.20 1.33
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (1.75) (1.47) 0.52 (0.05)
Dividends and distributions to preferred shareowners from:
Net investment income (0.19) (0.51) (0.46) (0.23)
Net realized gains (0.03) -(d) - -
-------- -------- -------- --------
Net increase from investment operations (0.98) $ 0.32 $ 2.26 $ 1.05
Distributions to common shareowners from:
Net investment income (1.01) (1.91) (1.63) (0.92)
Net realized gains (0.35) -(d) (0.05) -
Capital charge with respect to issuance of:
Common shares - - - (0.04)
Preferred shares - - -(d) (0.11)
-------- -------- -------- --------
Net increase (decrease) in net asset value $ (2.34) $ (1.59) $ 0.58 $ (0.02)
-------- -------- -------- --------
Net asset value, end of period(e) $ 15.73 $ 18.07 $ 19.66 $ 19.08
======== ======== ======== ========
Market value, end of period(e) $ 14.62 $ 16.79 $ 18.95 $ 17.14
-------- -------- -------- --------
Total return at market value(f) (5.02)% (2.02)% 20.94% (9.76)%
Ratios to average net assets of common shareowners
Net expenses(g) 1.51%(h) 1.40% 1.38% 1.23%(h)
Net investment income before preferred share dividends 12.26%(h) 11.92% 11.37% 7.52%(h)
Preferred share dividends 2.31%(h) 2.66% 2.39% 1.29%(h)
Net investment income available to common shareowners 9.95%(h) 9.26% 8.98% 6.23%(h)
Portfolio turnover 18% 80% 75% 61%
Net assets of common shareowners, end of period
(in thousands) $384,207 $441,493 $478,255 $464,324
Preferred shares outstanding (in thousands) $234,500 $234,500 $234,500 $234,500
Asset coverage per preferred share, end of period $ 65,969 $72,067 $76,000 $74,520
Average market value per preferred share(i) $ 25,000 $25,000 $25,000 $25,000
Liquidation value, including dividends payable,
per preferred share $ 25,008 $25,009 $25,013 $25,018
Ratios to average net assets of common shareowners
before waivers and reimbursement of expenses
Net expenses(g) 1.51%(h) 1.40% 1.40% 1.24%(h)
Net investment income before preferred share dividends 12.26%(h) 11.92% 11.35% 7.51%(h)
Preferred share dividends 2.31%(h) 2.66% 2.39% 1.29%(h)
Net investment income available to common shareowners 9.95%(h) 9.26% 8.96% 6.22%(h)
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) The Trust common shares were first publicly offered on December 23, 2004.
(c) Net asset value immediately after the closing of the first public offering
was $19.06.
(d) Amount is less than $0.01 per share.
(e) 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.
(f) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
market value on the last day of the periods reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Total
investment return less than a full period is not annualized. Past
performance is not a guarantee of future results.
(g) Expense ratios do not reflect the effect of dividend payments to preferred
shareowners.
(h) Annualized.
(i) Market value is redemption value without an active market.
The information above represents the operating performance data for a share of
common stock outstanding, total investment return, ratios to average net assets
and other supplemental data for the period indicated. This information has been
determined based upon financial information provided in the financial
statements and market value data for the Trust's common shares.
34 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/08 (unaudited)
--------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Floating Rate Trust (the "Trust") is organized as a Delaware statutory
trust on October 6, 2004. Prior to commencing operations on December 28, 2004,
the Trust had no operations other than matters relating to its organization and
registration as a non-diversified, closed-end management investment company
under the Investment Company Act of 1940, as amended. The investment objective
of the Trust is to provide a high level of current income. The Trust will, as a
secondary objective, also seek preservation of capital to the extent consistent
with its primary goal of high current income.
The Trust's investments in certain foreign markets or countries with limited
developing markets may subject the Trust to a greater degree of risk than in a
developed market. These risks include disruptive political or economic
conditions and the possible imposition of adverse governmental laws or currency
exchange restrictions.
The Trust invests primarily in senior floating rate loans ("Senior Loans"). The
Trust may also invest in other floating and variable rate instruments,
including second lien loans, and high yield, high risk corporate bonds. The
Trust may invest in Senior Loans and other securities of any credit quality,
including Senior Loans and other investments that are rated below investment
grade, or are unrated but are determined by the investment sub-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. These securities involve
greater risk of loss, are subject to greater price volatility, and are less
liquid, especially during periods of economic uncertainty or change, than
higher rated debt securities. The Trust may invest in securities of issuers
that are in default or that are in bankruptcy.
The Trust is not limited in the percentage of its assets that may be invested
in Senior Loans and other securities deemed to be illiquid. Illiquid securities
may be difficult to dispose of at a fair price at the times when the Trust
believes it is desirable to do so and their market price is generally more
volatile than that of more liquid securities. Illiquid securities are also more
difficult to value and investment of the Trust's assets in illiquid securities
may restrict the Trust's ability to take advantage of market opportunities.
Information regarding the Trust's principal risks is contained in the Trust's
original offering prospectus, with additional information
35
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/08 (unaudited) (continued)
--------------------------------------------------------------------------------
included in the Trust's shareowner reports from time to time. Please refer to
those documents when considering the Trust's risks. At times, the Trust's
investments may represent industries or industry sectors that are interrelated
or have common risks, making it more susceptible to any economic, political, or
regulatory developments or other risks affecting those industries and sectors.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Trust in preparation of its financial statements, which are consistent with
those generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Investments in Senior
Loans are valued in accordance with guidelines established by the Board of
Trustees at the mean between the last available bid and asked prices from
one or more brokers or dealers as obtained from Loan Pricing Corporation.
For the limited number of Senior Loans for which no reliable price quotes
are available, such investments will be valued by Loan Pricing Corporation
through the use of pricing matrices to determine valuations.
Fixed-income securities are valued at prices supplied by independent pricing
services, which consider such factors as Treasury spreads, yields,
maturities and ratings. Valuations may be supplemented by values obtained
from dealers and other sources, as required. Equity securities are valued at
the last sale price on the principal exchange where they are traded.
Securities or loans for which quotations are not readily available are
valued using fair values methods pursuant to procedures adopted by the Board
of Trustees. Trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Trust's shares are
determined
36
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
as of such times. The Trust may also use the fair value of a security,
including a non-U.S. security, when the closing market price on the
primary exchange where the security is traded no longer accurately
reflects the value of the security as of the close of the exchange.
Temporary cash investments are valued at amortized cost which approximates
market value.
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. Discount and premium on debt
securities are accreted or amortized, respectively, daily, on an effective
yield to maturity basis and are included in interest income. Interest
income, including income on interest bearing cash accounts, is recorded on
an accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between
the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the Statement of Operations from the
effects of changes in market price of those securities but are included
with the net realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Trust enters into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio
hedges). All contracts are marked to market
37
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/08 (unaudited) (continued)
--------------------------------------------------------------------------------
daily at the applicable exchange rates, and any resulting unrealized gains
or losses are recorded in the Trust's financial statements. The Trust
records realized gains and losses at the time a portfolio hedge is offset
by entry into a closing transaction or extinguished by delivery of the
currency. Risks may arise upon entering into these contracts from the
potential inability of counterparties to meet the terms of the contract
and from unanticipated movements in the value of foreign currencies
relative to the U.S. dollar (see Note 3).
D. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareowners. Therefore, no federal income tax provision is
required. All tax returns filed thus far are subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the source of the Trust's distributions may
be shown in the accompanying financial statements as either from or in
excess of net investment income or net realized gain on investment
transactions, or from paid-in capital, depending on the type of book/tax
differences that may exist.
The tax character of current year distributions paid to common and
preferred shareowners will be determined at the end of the fiscal year.
Distributions during the year ended November 30, 2007 were as follows:
-------------------------------------------------------------------------------
2007
-------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $58,955,726
Net long term capital gain 116,238
-----------
Total taxable distribution $59,071,964
===========
-------------------------------------------------------------------------------
38
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at November 30, 2007.
--------------------------------------------------------------------------------
2007
--------------------------------------------------------------------------------
Undistributed ordinary income $ 11,291,496
Distributions payable (81,448)
Long-term capital gain 3,873,918
Unrealized depreciation (36,517,316)
------------
Total $(21,433,350)
============
--------------------------------------------------------------------------------
The difference between book basis and tax basis unrealized depreciation is
primarily attributable to the difference between book and tax amortization
methods for premiums and discounts on fixed income securities, the
realization for tax purposes of unrealized losses on certain foreign
currency contracts and the deferral of post October capital losses for tax
purposes.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the repurchase agreement at the time of purchase. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Trust's custodian, or subcustodians. The Trust's investment
adviser, Pioneer Investment Management, Inc. ("PIM"), is responsible for
determining that the value of the collateral remains at least equal to the
repurchase price.
F. Automatic Dividend Reinvestment Plan
All common shareowners automatically participate in the Automatic Dividend
Reinvestment Plan (the "Plan"), under which participants receive all
dividends and capital gain distributions (collectively, "dividends") in
full and fractional common shares of the Trust in lieu of cash.
Shareowners may elect not to participate in the Plan. Shareowners not
participating in the Plan receive all dividends and capital gain
distributions in cash. Participation in the Plan is completely voluntary
and may be terminated or resumed at any time without penalty by notifying
American Stock Transfer & Trust
39
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/08 (unaudited) (continued)
--------------------------------------------------------------------------------
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.
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional
unissued but authorized common shares from the Trust or (ii) by purchase
of outstanding common shares on the New York Stock Exchange or elsewhere.
If, on the payment date for any dividend the net asset value per common
share is equal to or less than the market price per share plus estimated
brokerage trading fees ("market premium"), the Plan Agent will invest the
dividend amount in newly issued common shares. The number of newly issued
common shares to be credited to each account will be determined by
dividing the dollar amount of the dividend by the net asset value per
common share on the date the shares are issued, provided that the maximum
discount from the then current market price per share on the date of
issuance does not exceed 5%. If, on the payment date for any dividend, the
net asset value per common share is greater than the market value ("market
discount"), the Plan Agent will invest the dividend amount in common
shares acquired in open-market purchases. There are no brokerage charges
with respect to newly issued common shares. However, each participant will
pay a pro rata share of brokerage trading fees incurred with respect to
the Plan Agent's open-market purchases. Participating in the Plan does not
relieve shareowners from any federal, state or local taxes which may be
due on dividends paid in any taxable year. Shareowners holding Plan shares
in a brokerage account may not be able to transfer the shares to another
broker and continue to participate in the Plan.
2. Management Agreement
Pioneer Investment Management, Inc. ("PIM"), a wholly owned indirect subsidiary
of UniCredit S.p.A. ("UniCredit") manages the Trust's portfolio. Management
fees payable under the Trust's Advisory Agreement with PIM are calculated daily
at the annual rate of 0.70% of the Trust's average daily managed assets.
"Managed assets" is the average daily value of the Trust's total assets minus
the sum of the Trust's liabilities, which liabilities exclude debt related to
leverage,
40
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
short-term debt and the aggregate liquidation preference of any outstanding
preferred shares. For the six months ended May 31, 2008, the net management fee
was equivalent to 0.70% of the Trust's average daily managed assets, which was
equivalent to 1.12% of the Trust's average daily net assets attributable to the
common shareowners.
In addition, under PIM's management and administration agreements, certain
other services and costs are paid by PIM and reimbursed by the Trust. Included
in "Due to affliates" reflected on the Statement of Assets and Liabilities is
$407,551 in management costs, administrative cost and certain other fees
payable to PIM at May 31, 2008.
PIM has retained Princeton Administrators, LLC ("Princeton") to provide certain
administrative and accounting services to the Trust on its behalf. PIM pays
Princeton a monthly fee at an annual rate of 0.07% of the average daily value
of the Trust's managed assets up to $500 million and 0.03% for average daily
managed assets in excess of $500 million, subject to a minimum monthly fee of
$10,000. Princeton receives no compensation directly from the Trust.
PIM has engaged Highland Capital Management, L.P. to act as the Trust's
investment sub-adviser ("Sub-adviser") and manage the Trust's investments. PIM
pays the Sub-adviser a monthly fee at an annual rate of 0.35% of the average
daily value of the Trust managed assets. The fee is paid monthly in arrears.
The Trust does not pay a fee to the Sub-adviser.
Also, PIM has agreed for the first three years of the Trust's investment
operations (December 23, 2004 - December 23, 2007) to limit the Trust's total
annual expenses excluding offering costs for common and preferred shares,
interest expense, the cost of defending or prosecuting any claim or litigation
to which the Trust is a party (together with any amount in judgment or
settlement), indemnification expenses or taxes incurred due to the failure of
the Trust to qualify as a regulated investment company under the Code or any
other non-recurring or non-operating expenses; to 0.95% of the Trust's average
daily managed assets. The dividend on any preferred shares is not an expense
for this purpose. For the six months ended May 31, 2008 the Trust's expenses
were not reduced under such arrangements. As of December 23, 2007, this expense
limitation is no longer in effect.
41
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/08 (unaudited) (continued)
--------------------------------------------------------------------------------
3. Forward Foreign Currency Contracts
The Trust may enter into contracts that obligate the Trust to deliver
currencies at specified future dates. At the maturity of a contract, the Trust
must make delivery of the foreign currency. Alternatively, prior to the
settlement date of a portfolio hedge, the Trust may close out such contracts by
entering into an offsetting hedge contract. At May 31, 2008, the Trust had no
outstanding portfolio hedges or forward currency settlement contracts.
4. Unfunded Loan Commitments
As of May 31, 2008, the Trust had unfunded loan commitments of approximately
$6,441,000 which could be extended at the option of the borrower, pursuant to
the following loan agreements:
--------------------------------------------------------------------------------
Unfunded
Commitment
Borrower (in thousands)
--------------------------------------------------------------------------------
Big West Oil, LLC, Delayed Advance Loan $ 1,700
CHS/Community Health Systems, Inc., Delayed Draw
Term Loan $ 232
Cricket Communications, Inc., Revolver Loan $ 2,000
Delphi Corp., Subsequent Tranche C Loan $ 924
Fenwal, Inc., First Lien Delayed Draw Term Loan $ 571
Fontainebleau Las Vegas Holdings, LLC, Delayed Draw
Term Loan $ 667
HUB International Holdings, Inc., Delay Draw
Term Loan $ 152
Sirva Worldwide, Inc., Revolving Credit Loan $ 195
--------------------------------------------------------------------------------
5. Transfer Agents
Pioneer Investment Management Shareholder Services, Inc. ("PIMSS"), a wholly
owned indirect subsidiary of UniCredit , through a sub-transfer agency
agreement with American Stock Transfer & Trust Company, provides substantially
all transfer agent and shareowner services related to the Trust's common shares
at negotiated rates. Deutsche Bank Trust Company Americas ("Deutsche Bank") is
the transfer agent, registrar, dividend paying agent and auction agent with
respect to the Trust's Auction Market Preferred Shares ("AMPS"). The
42
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Trust pays Deutsche Bank an annual fee, as is agreed to from time to time by
the Trust and Deutsche Bank, for providing such services.
6. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the six months ended
May 31, 2008 and the year ended November 30, 2007 were as follows:
--------------------------------------------------------------------------------
5/2008 11/2007
--------------------------------------------------------------------------------
Shares outstanding at beginning
of period 24,428,148 24,330,240
Reinvestment of distributions - 97,908
---------- ----------
Shares outstanding at end of period 24,428,148 24,428,148
========== ==========
--------------------------------------------------------------------------------
The Trust may classify or reclassify any unissued common shares of beneficial
interest into one or more series of preferred shares of beneficial interest. As
of May 31, 2008 there were 9,380 AMPS as follows: Series M7-3,130, Series
W7-3,125 and Series TH7-3,125.
Dividends on Series M7, Series W7 and Series TH7 are cumulative at a rate which
is reset every seven days based on the results of an auction. An auction fails
if there are more AMPS offered than there are buyers. When an auction fails,
the dividend rate for the period will be the maximum rate on the auction dates
described in the prospectus for the AMPS. You will not be able to sell your
AMPS at an auction if the auction fails. Since February 13, 2008, the Trust's
auctions related to the AMPS have failed. The maximum rate for the 7-Day Series
is 1.25% spread, over, or 125% of (the greater of) the one week LIBOR rate.
Dividend rates ranged from 3.50% to 6.10% during the six months ended May 31,
2008.
The Trust may not declare dividends or make other distributions on its common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, asset coverage with respect to the outstanding
preferred shares would be less than 200%.
The AMPS are redeemable at the option of the Trust, in whole or in part, on any
dividend payment date at $25,000 per share plus any
43
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/08 (unaudited) (continued)
--------------------------------------------------------------------------------
accumulated or unpaid dividends, whether or not declared. The AMPS are also
subject to mandatory redemption at $25,000 per share plus any accumulated or
unpaid dividends, whether or not declared, if certain requirements relating to
the composition of the assets and liabilities of the Trust as set forth in the
Agreement and Declaration of Trust are not satisfied.
The holders of AMPS have voting rights equal to the holders of the Trust's
common shares (one vote per share) and will vote together with holders of the
common shares as a single class. However, holders of AMPS are also entitled to
elect two of the Trust's Trustees. In addition, the Investment Company Act of
1940, as amended, requires that along with approval by shareowners that might
otherwise be required, the approval of the holders of a majority of any
outstanding preferred shares, voting separately as a class, would be required
to (a) adopt any plan of reorganization that would adversely affect the
preferred shares and (b) take any action requiring a vote of security holders,
including, among other things, changes in the Trust's subclassification as a
closed-end investment company or changes in its fundamental investment
restrictions.
7. New Pronouncements
In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures
about Derivative Instruments and Hedging Activities ("SFAS 161"), was issued
and is effective for fiscal years beginning after November 15, 2008. SFAS 161
requires enhanced disclosures about an entity's derivative and hedging
activities. Management is currently evaluating the impact the adoption of SFAS
161 will have on the Trust's financial statement disclosures.
8. Subsequent Event
Subsequent to May 31, 2008, the Board of Trustees of the Trust declared a
dividend from undistributed net investment income of $0.115 per common share
payable June 30, 2008 to common shareowners of record on June 16, 2008.
Subsequent to May 31, 2008, dividends declared and paid on preferred shares
totaled $751,855 in aggregate for the three outstanding preferred share series
through July 8, 2008.
44
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ADDITIONAL INFORMATION (unaudited)
During the period, there were no material changes in the Trust's investment
objective or fundamental policies that have not been approved by the
shareowners. There were no changes in the Trust's charter or By-Laws that would
delay or prevent a change in control of the Trust which have not been approved
by the shareowners. There were no changes in the principal risk factors
associated with investment in the Trust. There were no changes in the persons
who are primarily responsible for the day-to-day management of the Trust's
portfolio.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its common
shares in the open market.
CEO CERTIFICATION DISCLOSURE (unaudited)
The Trust's Chief Executive Officer has submitted to the New York Stock
Exchange the annual CEO certification as required by Section 303A.12 (a) of the
NYSE Listed Company Manual. In addition, the Trust has filed with the
Securities and Exchange Commission the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
45
Pioneer Floating Rate Trust
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
--------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Margaret B.W. Graham Mark E. Bradley, Treasurer
Daniel K. Kingsbury Dorothy E. Bourassa, Secretary
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Legal Counsel
Bingham McCutchen LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Shareowner Services and Sub-Transfer Agent
American Stock Transfer & Trust Company
Preferred Share Auction/Transfer Agent and Registrar
Deutsche Bank Trust Company Americas
Investment Sub-Adviser
Highland Capital Management, L.P.
Sub-Administrator
Princeton Administrators, LLC
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Trust voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.pioneerinvestments.com. This information is also available
on the Securities and Exchange Commission's web site at http://www.sec.gov.
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HOW TO CONTACT PIONEER
--------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
Account Information 1-800-710-0935
Telecommunications Device for the Deaf (TDD) 1-800-231-5469
Or write to AST:
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Company
Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Company
Wall Street Station
P.O. Box 922
New York, NY
10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit
our website www.pioneerinvestments.com.
The Trust files a complete statement 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 http://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.
The Trust's Chief Executive Officer is required by the New York Stock
Exchange's Listing Standards to file annually with the Exchange a
certification that he is not aware of any violation by the Trust of the
Exchange's Corporate Governance Standards applicable to the Trust. The Trust
has signed such certification.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
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 I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Information not required in semi annual reports on form NCSR.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Information not required in semi annual reports on form NCSR.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
During the period covered by this report, there were no purchases
made by or on behalf of the registrant or any affiliated purchaser
as defined in Rule 10b-18(a)(3) under the Securities Exchange Act
of 1934 (the Exchange Act), of shares of the registrants equity
securities that are registered by the registrant pursuant to
Section 12 of the Exchange Act.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Floating Rate Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date July 30, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date July 30, 2008
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date July 30, 2008
* Print the name and title of each signing officer under his or her signature.