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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21654
Pioneer Floating Rate Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: November 30
Date of reporting period: December 1, 2009 through May 31, 2010
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.
Pioneer Floating
Rate Trust
--------------------------------------------------------------------------------
Semiannual Report | May 31, 2010
--------------------------------------------------------------------------------
Ticker Symbol: PHD
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Schedule of Investments 12
Financial Statements 36
Notes to Financial Statements 41
Trustees, Officers and Service Providers 50
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe have begun to recover over the past
year from one of their most tumultuous periods in history. This is a welcome
relief, and we are generally optimistic about the prospects for the economy
going forward. Still, challenges remain. Unemployment is high; consumer demand
and loan growth are weak; and housing has not returned to normal.
At Pioneer, we have long advocated the benefits of investing for the long term.
This strategy has generally performed well for many investors. Those who
remained invested in the market during the downturn have most likely seen their
portfolios start to recover over the past year, as the Dow Jones Industrial
Average climbed back from the depressed levels we saw in early 2009. Many bond
investors have similarly seen a strong rebound, with a broad-based recovery
occurring across many different fixed-income asset classes. The riskiest asset
classes, such as high-yield bonds, outperformed other fixed-income asset
classes during most of 2009.
At Pioneer, we are not changing the approach to investing that we have used for
more than 80 years. We remain focused on company fundamentals and risk
management. Our investment process is based on careful research into individual
companies, quantitative analysis, and active portfolio management. This
three-pillared process, which we apply to each of our portfolios, is supported
by an integrated team approach and is designed to carefully balance risk and
reward. While we see potential opportunities for making money in many corners
of the markets around the globe, it takes research and experience to separate
solid investment opportunities from speculation.
Following this difficult period, many investors are rethinking their approach
to investing and risk management. Some are questioning whether the basic
investment principles they were taught in the past are still useful in today's
markets. Complicating matters is that financial markets remain unpredictable.
Our advice, as always, is to work closely with a trusted financial advisor to
discuss your goals and work together to develop an investment strategy that
meets your individual needs. There is no single best strategy that works for
every investor.
2 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
www.pioneerinvestments.com. We greatly appreciate your trust in us and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
-----------------------
Daniel K. Kingsbury
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 the Trust's 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.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 3
Portfolio Management Discussion | 5/31/10
Floating-rate loans produced relatively strong results during the six months
ended May 31, 2010, as defaults declined and the market returned to more normal
conditions after the turmoil of 2008 and 2009. In the following interview,
Jonathan Sharkey discusses the performance of Pioneer Floating Rate Trust
during the six months ended May 31, 2010. Mr. Sharkey, a member of Pioneer's
Fixed-Income Department, is responsible for the daily management of the Trust.
Q How did the Trust perform over the six months ended May 31, 2010?
A For the six-month period ended May 31, 2010, Pioneer Floating Rate Trust
returned 9.70% at net asset value and 9.27% at market price. The Trust's
benchmark, the Credit Suisse (CS) Leveraged Loan Index (the Credit Suisse
Index), returned 6.28% over the same period. Unlike the Trust, the Credit
Suisse Index does not employ leverage. On May 31, 2010, the Trust's SEC
yield was 10.69% at market price.
On May 31, 2010, the Trust's common shares were selling at a premium of
market price-to-net asset value of 0.83%. Unlike open-ended funds, the
market prices of closed-end fund shares go up and down based on supply and
demand, irrespective of a closed-end fund's net asset value per share. It
is not unusual to find closed-end fund shares trading at a discount or
premium to their net asset value. In May 2010, we reduced the Trust's
dividend rate, as the London Interbank Offering Rate (LIBOR) remained
relatively stable and some of the riskier loans and bonds with higher
yields in the Trust's portfolio were paid off with refinancing due to
stronger credit markets and as a result were replenished with somewhat
lower yielding loans. These loans were, in general, lower yielding but of
higher quality leading to an improvement in the overall quality in the
portfolio. The Trust's default rate was greater than the Credit Suisse
Index, but it continues to decline.
Q What was the investment environment like during the six-month period ended
May 31, 2010?
A During the first five months of the period (December 2009 through April
2010), floating-rate bank loans, along with other credit-sensitive
investments, performed well, as investors poured money into the market.
Prices of bank loans were also supported by the heavy new issuance of
high-yield bonds, many of which were used to retire existing bank loans.
Issuance of bank loans also increased, with newer issues generally offering
better yields compared to more seasoned loans with similar ratings. In the
floating-rate loan market, lower-rated loans appreciated more than
higher-quality, less
4 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
risky investments, as we continued to see buying of more distressed names
by high-yield and hedge fund investors.
In May, however, the floating-rate loan market, as measured by the Credit
Suisse (CS) Leveraged Loan Index, declined by 2.06%. This represents the
first monthly decline since December 2008. Several factors contributed to
the downturn in floating-rate loans, including: debt problems in Europe; a
decline in new issuance of high-yield debt, which reduced bond-for-loan
take-out activity; and relatively weak investor demand for bank loans by
high-yield investors and hedge funds, as high-yield securities became cheap
relative to bank loans.
Q Can you comment on the use of leverage in the Trust's portfolio?
A We believe the use of leverage for investment purposes can increase
investment opportunity, as well as investment risk. The Trust uses
financial leverage primarily in an effort to increase the dividend yield to
common shareowners. The Trust uses auction-rate preferred shares to provide
leverage. Over the six months ended May 31, 2010, leverage was a
contributor to the Trust's performance relative to the benchmark Credit
Suisse Index.
Q How did you manage the Trust during the six-month period ended May 31, 2010?
A We increased the Trust's diversification, adding higher-quality names. We
favored investments in areas that we believe are poised to benefit from an
improved economy. To that end, we lightened-up the Trust's holdings in the
more defensive sectors of health care, utilities and energy, and added
holdings in technology and transportation, where we saw improving trends.
The largest position in the Trust's portfolio was in loans to consumer
companies, which represented 25.2% of the Trust's total investment
portfolio at the end of the period. The consumer sector has a wide reach
and includes food suppliers, service companies, consumer staples companies,
specialty retailers, gaming, building products and auto parts suppliers.
We kept the Trust's total investment portfolio fully invested during the
period. At May 31, 2010, 94% of the Trust's total investment portfolio was
invested in loans rated "B" or higher, while 5% was invested in
lower-quality obligations rated "CCC" or lower(1). This was less than the
Credit Suisse (CS) Leveraged Loan Index which had 10.2% rated CCC or lower.
Our average blended (better of S&P or Moody's) was BB -- versus the index
which had a B average rating.
1 Source: Moody's and S&P. If the ratings provided by Moody's and S&P for a
security differ, the higher of the two ratings is used.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 5
Q What were some of the individual investments that affected the Trust's
performance during the six months ended May 31, 2010?
A Airline investments contributed to the Trust's performance during the period,
as did several holdings in the industrials sector, including Manitowoc, a
farm and construction machinery company, and Chemtura, a chemical company.
Among the Trust's technology investments, Flextronics, an electronics
manufacturing services company, and Intersil, a semiconductor manufacturer,
were notable contributors. Other individual contributors included: Reynolds
and Reynolds, a provider of services to automobile dealers; Young
Broadcasting, a media company that emerged from bankruptcy; Spirit Finance,
a diversified real estate investment trust that is recovering from problems
in the commercial real estate sector; and LifeCare Solutions, a health care
management company.
The Trust's poorer-performing investments during the period included
Molecular Insight, a pharmaceutical company that is falling behind the
plan; MGM, an entertainment giant which is seeking a buyer; and BroadStripe
(formerly Millennium Digital Media), which remains in bankruptcy.
Q What is your investment outlook?
A While the floating-rate loan market experienced significant market volatility
in May 2010, it was nowhere near the level of volatility that characterized
the credit markets in 2008 and 2009. We believe the severe market
volatility of 2008 and 2009 is abating and that the investment environment
will return to conditions more closely resembling long-term historical
trends. We think the Trust, which has shown solid relative performance on a
longer-term basis, should be well positioned as market trends evolve and
normalize.
We believe bank loans should perform well relative to other asset classes
on a risk-adjusted basis. The default rate on bank loans continues to
decline; as a result, we believe the asset class is poised to do well.
Despite continued high unemployment, we expect that the Federal Reserve
Board will raise interest rates, although at a somewhat later date than we
originally thought. Floating-rate loans have a distinct advantage over most
other yield-oriented investments in that they have the potential to
increase income to investors as interest rates rise. In the current
environment, bank loans are selling at discounts; as a result, appropriate
investors may also have an opportunity for capital appreciation.
6 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Please refer to the Schedule of Investments on pages 12-35 for a full listing
of Trust securities.
Information regarding the Trust's principal investment risks is contained in
the Trust's original offering prospectus and shareowner reports from time to
time. Please refer to these documents when considering the Trust's risks.
The Trust may invest in derivative securities, which may include futures and
options. These types of instruments can increase price fluctuation.
The Trust is not limited in the percentage of its assets that may be invested
in floating-rate senior loans and other securities deemed to be illiquid.
Illiquid securities may be difficult to sell at a fair price at times when the
Trust believes it is desirable to do so and their market price is generally
more volatile than that of more liquid securities. Illiquid securities may be
difficult to value, and investment of the Trust's assets in illiquid securities
may restrict the Trust's ability to take advantage of market opportunities.
The Trust currently uses leverage through the issuance of preferred shares. The
Trust also is authorized to borrow from banks and to issue debt securities,
which are other forms of leverage. Leverage creates significant risks,
including the risk that the Trust's income or capital appreciation will not be
sufficient to cover the cost of leverage, which may adversely affect the return
for the holders of common shares. Since February of 2008, regularly scheduled
auctions for the Trust's preferred shares have failed and preferred shareowners
have not been able to sell their shares at auction. The Board of Trustees of
the Trust has considered, and continues to consider, this issue.
The Trust is not diversified, which means that it can invest a higher
percentage of its assets in the securities of any one issuer than a diversified
fund. Being non-diversified may magnify the Trust's losses from adverse events
affecting a particular issuer.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. The Trust may invest in securities of issuers that
are in default or that are in bankruptcy.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates and economic and political
conditions.
The Trust is required to maintain certain regulatory and rating agency asset
coverage requirements in connection with its outstanding preferred shares. In
order to maintain required asset coverage levels, the Trust may be required to
alter the composition of its investment portfolio or take other actions, such
as redeeming preferred shares with the proceeds from portfolio transactions, at
what might be inopportune times in the market. Such actions could reduce the
net earnings or returns to holders of the Trust's common shares over time.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 7
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 adviser as of the date of this report.
These statements should not be relied upon for any other purposes.
8 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Portfolio Summary | 5/31/10
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Senior Secured Loans 87.1%
Corporate Bonds 8.9
Common Stock 3.0
Collateralized Loan Obligations 1.0
Rights/Warrants* 0.0
Claims* 0.0
* Amount is less than 0.1%
Portfolio Quality
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on S&P ratings.)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
BBB 1.3%
BB 27.3%
B 29.5%
CCC 1.3%
CC 0.9%
D 0.7%
Not Rated** 39.0%
The Trust is actively managed and current holdings may be different.
** These securities are judged to be similar but slightly lower in quality than
the average of the total investment portfolio.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. SMG H5 Pty, Ltd., Facility Term Loan A, 5.731%--6.843%, 12/24/12 2.75%
--------------------------------------------------------------------------------
2. Azithromycin Royalty Sub LLC, 16.0%, 5/15/19 (144A) 2.45
--------------------------------------------------------------------------------
3. Delphi DIP Holdco LLP, Class B Subscription 2.35
--------------------------------------------------------------------------------
4. Broadstripe LLC, First Lien Term Loan, 9.25%, 6/30/11 2.08
--------------------------------------------------------------------------------
5. Univision Communications, Inc., Initial Term Loan, 2.54%, 9/29/14 2.03
--------------------------------------------------------------------------------
6. Cequel Communications LLC, Term Loan, 2.253%--2.292%, 11/5/13 1.98
--------------------------------------------------------------------------------
7. Ford Motor Co., Tranche B-1 Term Loan, 3.31%--3.34%, 12/15/13 1.91
--------------------------------------------------------------------------------
8. Mylan, Inc., U.S. Tranche B Term Loan, 3.5%--3.563%, 10/2/14 1.61
--------------------------------------------------------------------------------
9. Celtic Pharma Phinco B.V., 17.0%, 6/15/12 (144A) 1.39
--------------------------------------------------------------------------------
10. Knology, Inc., Term Loan, 2.479%--2.528%, 6/30/12 1.38
--------------------------------------------------------------------------------
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 9
Prices and Distributions | 5/31/10
Market Value per Common Share
--------------------------------------------------------------------------------
5/31/10 11/30/09
$12.15 $11.54
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Premium (Discount) 0.83% 1.23%
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Net Asset Value per Common Share
--------------------------------------------------------------------------------
5/31/10 11/30/09
$12.05 $11.40
--------------------------------------------------------------------------------
Distributions per Common Share: 12/1/09-5/31/10
--------------------------------------------------------------------------------
Net
Investment Tax Return Short-Term Long-Term
Income of Capital Capital Gains Capital Gains
$0.4475 $ -- $ -- $ --
--------------------------------------------------------------------------------
Yields
--------------------------------------------------------------------------------
5/31/10 11/30/09
Distribution Yield at Market Price 7.16% 10.14%
--------------------------------------------------------------------------------
Distribution Yield at Net Asset Value 7.22% 10.26%
--------------------------------------------------------------------------------
30-day SEC Yield 10.69% 8.00%
--------------------------------------------------------------------------------
Past performance data quoted represents past performance, which is no guarantee
of future results.
10 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Performance Update | 5/31/10
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 (CS) Leveraged Loan Index, an index of senior secured U.S. dollar
denominated loans.
Cumulative Total Returns
(As of May 31, 2010)
--------------------------------------------------------------------------------
Net Asset Market
Value Value
--------------------------------------------------------------------------------
Life-of-Trust
(12/23/04) 11.26% 6.91%
--------------------------------------------------------------------------------
5 Years 10.56 19.52
--------------------------------------------------------------------------------
1 Year 39.02 56.02
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Pioneer Floating CS Leveraged
Rate Trust Loan Index
12/31/2004 10000 10000
5/31/2005 8945 10126
5/31/2006 10167 10829
5/31/2007 12330 11656
5/31/2008 10156 11279
5/31/2009 6852 10023
5/31/2010 10691 12283
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 CS 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. The index is not leveraged. You cannot invest
directly in an index.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 11
Schedule of Investments | 5/31/10 (unaudited)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
COLLATERALIZED LOAN OBLIGATIONS --
1.6% of Net Assets
BANKS -- 1.6%
Diversified Banks -- 0.5%
1,000,000(a)(b)(c) BB+/Caa2 Primus, Ltd., 2007-2A D, 2.703%, 7/15/21
(144A) $ 158,230
1,000,000(a)(b) B+/B2 Rampart, Ltd., 2006-1A, 3.854%, 4/18/21
(144A) 608,520
951,289(a)(b) CCC-/Caa3 Stanfield McLaren, Ltd., 2007-1A B2L, 5.036%,
2/27/21 (144A) 651,528
-----------
$ 1,418,278
---------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.1%
1,000,000(a)(b) B+/B1 ACA, Ltd. 2007-1A D, 2.653%, 6/15/22 (144A) $ 576,940
1,000,000(a)(b) BB+/B3 Goldman Sachs Asset Management Plc, 2007-1A
D, 3.094%, 8/1/22 (144A) 658,420
1,000,000(a)(b) BB+/Ca Gulf Stream Sextant, Ltd., 2007-1A D, 2.658%,
6/17/21 (144A) 590,100
1,000,000(a)(b) B/Caa3 Landmark CDO, Ltd., 2007-9A E, 3.803%,
4/15/21 (144A) 486,670
2,000,000(a)(b) BB+/Ba3 Stone Tower, Ltd., 2007-6A C, 1.654%, 4/17/21
(144A) 1,020,000
-----------
$ 3,332,130
-----------
Total Banks $ 4,750,408
---------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED LOAN OBLIGATIONS
(Cost $6,312,772) $ 4,750,408
---------------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 139.4% of Net Assets*
ENERGY -- 5.0%
Oil & Gas Drilling -- 2.4%
2,184,684 NR/NR Big West Oil LLC, Delayed Advance Term Loan,
6.5%, 5/15/14 $ 2,165,568
1,737,816 NR/NR Big West Oil LLC, Initial Advance Term Loan,
6.5%, 5/15/14 1,722,611
1,800,000 NR/B2 Big West Oil LLC, Term Loan, 9.5%, 1/30/15 1,811,250
951,212(a)(d)(e) NR/NR TARH E&P Holdings, L.P., First Lien Second Out
Credit Facility Term Loan A, 9.5%, 6/29/12 951,212
384,312(a)(d)(e) NR/NR TARH E&P Holdings, L.P., Second Lien Debt Term
Loan, 14.0%, 6/29/12 365,096
-----------
$ 7,015,737
---------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.9%
2,650,000 BB-/Ba2 Aquilex Holdings LLC, Term Loan, 5.5%, 4/1/16 $ 2,653,313
---------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
12 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Oil & Gas Exploration & Production -- 1.3%
2,055,208(a)(c)(e)(f) NR/NR Crusader Energy Group, Inc., Second Lien Term
Loan, 12.0%, 7/18/13 $ --
2,131,322 B+/B1 Targa Resources, Inc., Term Loan, 6.0%, 7/5/16 2,136,917
1,924,301 BB-/B3 VenoCo., Inc., Second Lien Term Loan,
4.375% - 6.25%, 5/7/14 1,828,888
-----------
$ 3,965,805
---------------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.4%
1,023,695 B/B1 Atlas Pipeline Partners, L.P., Term Loan, 6.75%,
7/27/14 $ 1,021,135
-----------
Total Energy $14,655,990
---------------------------------------------------------------------------------------------------------------------
MATERIALS -- 5.2%
Aluminum -- 0.2%
611,364 B/Ba3 Noranda Aluminum Acquisition Corp., Term Loan
B, 2.538%, 5/18/14 $ 585,891
---------------------------------------------------------------------------------------------------------------------
Commodity Chemicals -- 0.5%
1,496,144 BB+/Ba2 Celanese US Holdings LLC, Term Loan, 2.042%,
4/2/14 $ 1,430,454
---------------------------------------------------------------------------------------------------------------------
Construction Materials -- 0.5%
1,500,000 B+/B2 Summit Materials Ky Acquisition LLC, Term Loan,
6.75%, 7/31/14 $ 1,483,125
---------------------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.6%
227,183 B+/Ba2 Huntsman International LLC, New Dollar Term
Loan B, 2.184%, 4/19/14 $ 213,552
1,500,000 NR/NR Solutia, Inc., Term Loan, 4.75%, 3/17/17 1,502,187
-----------
$ 1,715,739
---------------------------------------------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 0.8%
2,500,000 NR/NR CF Industries, Inc., Term Loan B-1, 4.5%, 4/5/15 $ 2,505,135
---------------------------------------------------------------------------------------------------------------------
Paper Packaging -- 1.2%
250,000 NR/NR BWay Corp., Term Loan B, 3.75%, 5/21/17 $ 249,740
722,830 B+/B1 Graham Packaging Co., L.P., Term Loan B.,
2.563% - 2.688%, 10/7/11 713,794
776,747 B+/B1 Graham Packaging Co., L.P., Term Loan C, 6.75%,
4/5/14 780,510
1,780,401 BB/Ba3 Graphic Packaging International, Inc., Incremental
Term Loan, 3.041% - 3.05%, 5/16/14 1,720,313
-----------
$ 3,464,357
---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 13
Schedule of Investments | 5/31/10 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Specialty Chemicals -- 1.4%
3,500,000 NR/NR Chemtura Corp., Facility Term Loan, 6.0%,
2/11/11 $ 3,517,500
744,375 BB+/Ba1 Nalco Co., Term Loan, 6.5%, 5/13/16 746,159
-----------
$ 4,263,659
-----------
Total Materials $15,448,360
--------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 6.1%
Aerospace & Defense -- 2.6%
487,429 B+/B3 Aeroflex, Inc., Tranche B-2 Term Loan, 4.188%,
8/15/14 $ 460,621
1,337,606 BBB-/Ba1 BE Aerospace, Inc., Tranche B Term Loan, 5.75%,
7/28/14 1,341,428
757,268 B/B3 DAE Aviation Holdings, Inc., Tranche B-1 Term
Loan, 4.0%, 7/31/14 714,356
1,671,286 BB/B1 Hunter Defense Technologies, Inc., Term Loan,
3.55%, 8/22/14 1,579,365
1,848,999(d) B-/NR IAP Worldwide Services, Inc., First Lien Term Loan,
9.25%, 12/30/12 1,812,019
737,062 B/NR Standard Aero, Ltd., Tranche B-2 Term Loan,
4.06% - 4.09%, 7/31/14 695,295
670,625 BB/Ba2 TASC, Inc., Tranche A Term Loan, 5.5%,
12/18/14 671,184
324,187 BB/Ba2 TASC, Inc., Tranche B Term Loan, 5.75%,
12/18/15 324,998
-----------
$ 7,599,266
--------------------------------------------------------------------------------------------------------
Building Products -- 0.4%
1,165,254 NR/NR Custom Building Products, Inc., Term Loan,
5.75%, 3/19/15 $ 1,160,885
--------------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.8%
1,000,000 BB/Ba3 Goodman Global, Inc., Term Loan, 6.25%,
2/13/14 $ 1,002,292
1,505,630 BBB-/Baa3 URS Corp., Tranche B Term Loan,
2.54% - 2.541%, 5/15/13 1,492,927
-----------
$ 2,495,219
--------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy
Trucks -- 1.7%
1,500,000 BB/NR Bucyrus International, Inc., Tranche C U.S. Dollar
Term Loan, 4.5%, 2/19/16 $ 1,497,813
2,955,176 BB/B1 Manitowoc Co., Inc., Term Loan B, 7.5%,
11/6/14 2,947,788
493,325 BB/Ba3 Oshkosh Truck Corp., Term Loan B, 6.26%,
12/6/13 494,713
-----------
$ 4,940,314
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Electrical Components & Equipment -- 0.3%
900,000 NR/NR Scotsman Industries, Inc., Term Loan, 5.75%,
4/5/16 $ 898,875
---------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.3%
987,179 BB-/Ba2 Kansas City Southern Railway Co., Advance Term
Loan B, 2.04% - 2.11%, 4/28/13 $ 963,322
-----------
Total Capital Goods $18,057,881
---------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 6.3%
Commercial Printing -- 1.3%
39,052 NR/Ba2 Cenveo Corp., Delayed Draw Term Loan, 4.771%,
6/21/13 $ 38,828
1,367,844 BB/Ba2 Cenveo Corp., Facility Term Loan C, 4.771%,
6/21/13 1,359,979
1,750,000 NR/NR John Henry Holdings, Inc., Advance Term Loan,
6.75%, 5/13/16 1,745,581
745,937 NR/B1 World Color Press, Inc. & World Color (USA)
Corp., Advance Term Loan, 9.0%, 7/23/12 754,795
-----------
$ 3,899,183
---------------------------------------------------------------------------------------------
Diversified Commercial & Professional
Services -- 1.9%
967,500 BB/Ba3 Aramark Canada, Ltd., Canadian Term Loan,
2.165%, 1/26/14 $ 894,938
4,985,538 NR/NR Cydcor, Inc., First Lien Tranche B Term Loan,
9.0%, 2/5/13 4,649,014
-----------
$ 5,543,952
---------------------------------------------------------------------------------------------
Diversified Support Services -- 1.7%
884,868 BB-/Ba3 Allied Security Holdings LLC, Term Loan, 6.75%,
2/20/15 $ 892,057
1,700,000 BB-/NR InfoGroup, Inc., Term Loan B, 4.25%, 5/1/16 1,684,416
397,949 BB+/Ba1 Iron Mountain, Inc., Initial Term Loan, 3.53%,
4/16/14 391,482
1,995,625 B+/Ba3 Language Line LLC, Tranche B Term Loan, 5.5%,
11/4/15 1,982,320
-----------
$ 4,950,275
---------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 1.1%
1,745,625 B+/Ba3 Advanced Disposal Services, Inc., Term Loan B,
6.0%, 1/14/15 $ 1,744,534
1,094,300 NR/NR Brickman Group Holdings, Inc., Tranche B Term
Loan, 2.29%, 1/23/14 1,055,999
421,812 BB/Ba2 Casella Waste Systems, Inc., Term Loan B, 7.0%,
4/9/14 422,340
-----------
$ 3,222,873
---------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 15
Schedule of Investments | 5/31/10 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Security & Alarm Services -- 0.3%
995,000 BB/NR Protection One Alarm Monitoring, Inc., Tranche
B-2 Term Loan, 6.5%, 3/31/14 $ 995,000
-----------
Total Commercial & Professional Services $18,611,283
------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 3.2%
Airlines -- 1.7%
970,000 BB-/Ba2 Delta Airlines, Inc., Credit-Linked Deposit Loan,
0.191% - 2.324%, 4/30/12 $ 934,838
471,515 B/B2 Delta Airlines, Inc., Second Lien Term Loan,
3.548%, 4/30/14 422,890
895,500 BB-/Ba2 Delta Airlines, Inc., Term Loan, 8.75%, 9/27/13 899,791
3,600,000 B+/B3 US Airways Group, Inc., Term Loan, 2.813%,
3/21/14 2,819,250
-----------
$ 5,076,769
------------------------------------------------------------------------------------------------------
Airport Services -- 0.4%
1,266,479 NR/NR AWAS Capital, Inc., First Lien Term Loan,
2.063%, 3/25/13 $ 1,184,158
------------------------------------------------------------------------------------------------------
Marine -- 0.4%
1,375,000 BB-/B1 Horizon Lines LLC, Term Loan, 3.55%, 8/8/12 $ 1,249,531
------------------------------------------------------------------------------------------------------
Trucking -- 0.7%
522,227 NR/NR SIRVA Worldwide, Inc., Revolving Credit Loan,
9.5% - 13.0%, 5/12/12 $ 357,725
2,537,107(d) NR/NR SIRVA Worldwide, Inc., Second Lien Term Loan,
12.0%, 5/12/15 697,704
1,088,530 NR/NR SIRVA Worldwide, Inc., Term Loan,
10.29% - 13.0%, 5/12/12 821,840
-----------
$ 1,877,269
-----------
Total Transportation $ 9,387,727
------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 5.6%
Auto Parts & Equipment -- 2.6%
2,937,527 B/B2 Allison Transmission, Inc., Term Loan,
3.0% - 3.1%, 8/7/14 $ 2,682,329
723,218 B+/Ba3 Federal-Mogul Corp., Tranche B Term Loan,
2.178% - 2.278%, 12/29/14 635,226
368,989 B+/Ba3 Federal-Mogul Corp., Tranche C Term Loan,
2.278%, 12/28/15 324,095
500,000 NR/B3 HHI Group Holdings LLC, Term Loan, 10.5%,
3/30/15 502,032
3,879,420 NR/NR Key Safety Systems, Inc., First Lien Term Loan,
2.589% - 2.604%, 3/8/14 3,468,849
-----------
$ 7,612,531
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Automobile Manufacturers -- 3.0%
9,649,758 B-/Ba1 Ford Motor Co., Tranche B-1 Term Loan,
3.31% - 3.34%, 12/15/13 $ 9,032,859
-----------
Total Automobiles & Components $16,645,390
----------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.6%
Apparel, Accessories & Luxury Goods -- 0.6%
921,249 NR/Ba1 Hanesbrands, Inc., New Term Loan, 5.25%,
12/10/15 $ 924,957
1,000,000 BBB/Ba2 Phillips-Van Heusen Corp., U.S. Tranche B Term
Loan, 4.75%, 5/6/16 1,001,797
-----------
$ 1,926,754
----------------------------------------------------------------------------------------------------------------
Homebuilding -- 0.3%
2,369,368(c)(d) NR/NR Ginn LA Conduit Lender, Inc., First Lien Tranche A
Credit-Linked Deposit Loan, 8.5%, 6/8/11 $ 171,779
5,077,235(c)(d) NR/NR Ginn LA Conduit Lender, Inc., First Lien Tranche B
Term Loan, 9.5%, 6/8/11 368,100
1,000,000(a)(c)(g) NR/NR WAICCS Las Vegas 3 LLC, First Lien Term Loan,
7.75%, 7/30/09 375,000
4,500,000(a)(c)(g) NR/NR WAICCS Las Vegas 3 LLC, Second Lien Term
Loan, 13.25%, 7/30/09 33,750
-----------
$ 948,629
----------------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 0.2%
500,722 BB+/Ba1 Jarden Corp., Term Loan B-3, 2.79%, 1/24/12 $ 495,671
----------------------------------------------------------------------------------------------------------------
Leisure Products -- 0.5%
1,325,000 NR/NR SRAM LLC., Term Loan, 5.5%, 4/30/15 $ 1,326,656
-----------
Total Consumer Durables & Apparel $ 4,697,710
----------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 5.8%
Casinos & Gaming -- 1.2%
5,000,000(a)(c) NR/NR Fontainebleau Florida Hotel LLC, Tranche C Term
Loan, 10.0%, 6/6/12 $ 1,750,000
1,197,000 NR/NR Harrah's Operating Co., Inc., Term Loan B-4,
9.5%, 10/31/16 1,203,151
715,085 BB+/Ba2 Penn National Gaming, Inc., Term Loan B,
2.05% - 2.12%, 10/3/12 696,872
-----------
$ 3,650,023
----------------------------------------------------------------------------------------------------------------
Education Services -- 1.6%
3,910,351 BB-/Ba2 Bright Horizons Family Solutions, Inc., Tranche B
Term Loan, 7.5%, 5/28/15 $ 3,911,399
1,000,000 B+/B2 Cengage Learning Acquisitions, Inc., Term Loan,
2.79%, 7/3/14 869,375
-----------
$ 4,780,774
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 17
Schedule of Investments | 5/31/10 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Hotels, Resorts & Cruise Lines -- 0.4%
1,190,445 NR/NR Yellowstone Mountain Club LLC, Senior First Lien
Term Loan, 6.0%, 7/16/14 $ 1,178,540
-----------------------------------------------------------------------------------------------------------------
Leisure Facilities -- 0.7%
12,111(c)(d) NR/NR Lake at Las Vegas Joint Venture, Mezzanine Loan,
20.0%, 7/15/10 $ 424
587,649(a)(c) NR/NR Lake at Las Vegas Joint Venture, Revolving
Credit-Linked Deposit Account Loan, 14.35%,
6/20/12 7,713
6,649,712(a)(c)(d) NR/NR Lake at Las Vegas Joint Venture, Term Loan,
14.35%, 6/20/12 87,277
1,765,105(d) NR/NR Lake at Las Vegas Joint Venture, Debtor in
Possession Term Loan, 9.773%, 7/15/10 529,531
1,498,125 B+/Ba2 Universal City Development Partners, Ltd., Term
Loan, 5.5% - 6.0%, 11/6/14 1,502,956
-----------
$ 2,127,901
-----------------------------------------------------------------------------------------------------------------
Restaurants -- 0.2%
500,000 NR/NR Wendy's/Arby's Restaurants LLC, Term Loan,
5.0%, 5/24/17 $ 500,209
-----------------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 1.7%
1,017,765 B+/Ba3 Adesa, Inc., Initial Term Loan, 3.11%, 10/21/13 $ 971,965
164,755 B/Ba3 Travelport LLC, Incremental Term Loan C,
7.79% - 10.5%, 8/23/13 164,086
3,900,122 NR/NR Web Service Co., LLC, Term Loan, 7.0%, 8/28/14 3,875,746
-----------
$ 5,011,797
-----------
Total Consumer Services $17,249,244
-----------------------------------------------------------------------------------------------------------------
MEDIA -- 30.4%
Advertising -- 2.3%
1,500,000 NR/NR Advantage Sales & Marketing, Inc., First Lien
Term Loan, 5.0%, 5/5/16 $ 1,493,126
3,500,000 BB-/Ba2 Affinion Group, Inc., Tranche B Term Loan, 5.0%,
10/9/16 3,355,625
2,000,000 BB/Baa3 Lamar Media Corp., Term Loan B, 4.25%,
12/30/16 2,003,750
-----------
$ 6,852,501
-----------------------------------------------------------------------------------------------------------------
Broadcasting -- 10.6%
2,645,371 NR/Baa3 Discovery Communications Holding LLC, Term
Loan C, 5.5%, 5/14/14 $ 2,651,571
1,342,710 B/B2 FoxCo Acquisition Sub LLC, Term Loan, 7.5%,
7/14/15 1,314,178
AUD 16,466,037 NR/NR SMG H5 Pty, Ltd., Facility Term Loan A,
5.731% - 6.843%, 12/24/12 12,951,297
The accompanying notes are an integral part of these financial statements.
18 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Broadcasting -- (continued)
1,304,193 NR/NR TWCC Holding Corp., Replacement Term Loan,
5.0%, 9/14/15 $ 1,305,172
11,115,966 B-/B2 Univision Communications, Inc., Initial Term Loan,
2.54%, 9/29/14 9,582,307
3,769,895(a)(c) D/NR Young Broadcasting, Inc., Term Loan, 4.75%,
11/3/12 3,560,194
-----------
$31,364,719
-------------------------------------------------------------------------------------------------------------------
Cable & Satellite -- 12.7%
19,591,675(a)(c)(d)(e) NR/NR BroadStripe LLC, First Lien Term Loan, 9.25%,
6/30/11 $ 9,795,837
1,428,203(a)(c)(d)(e) NR/NR BroadStripe LLC, Revolver Credit Loan,
8.87% - 11.42%, 6/30/11 714,102
9,731,809 BB-/Ba3 Cequel Communications LLC, Term Loan,
2.253% - 2.292%, 11/5/13 9,318,208
540,126 BB+/Ba2 Charter Communications Operating LLC, Term
Loan B-1, 2.3%, 3/6/14 501,342
4,384,532 NR/Ba2 Charter Communications Operating LLC, Term
Loan C, 3.55%, 9/6/16 4,096,407
6,583,692 B/B1 Knology, Inc., Term Loan, 2.479% - 2.528%,
6/30/12 6,497,281
2,000,000 BB-/Ba3 MCC Iowa LLC, Tranche F Term Loan, 4.5%,
10/23/17 1,972,500
4,789,980 B-/B1 WideOpenWest Finance LLC, First Lien Term Loan,
2.795% - 2.874%, 6/30/14 4,439,114
-----------
$37,334,791
-------------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 4.0%
2,380,607 NR/NR Alpha Topco, Ltd., Facility Term Loan B-1,
2.447%, 12/31/13 $ 2,134,045
1,608,032 NR/NR Alpha Topco, Ltd., Facility Term Loan B-2,
2.447%, 12/31/13 1,441,487
1,411,344 B-/B1 Carmike Cinemas, Inc., Initial Term Loan, 5.5%,
1/27/16 1,407,060
2,000,000 NR/NR Cinedigm Digital Funding I LLC, Term Loan,
5.25%, 4/30/16 2,005,000
1,421,500 B-/B3 Lodgenet Entertainment Corp., Closing Date Term
Loan, 2.3%, 4/4/14 1,327,918
7,734,044(c) NR/NR Metro-Goldwyn-Mayer, Inc., Tranche B Term Loan,
20.5%, 4/9/12 3,436,282
-----------
$11,751,792
-------------------------------------------------------------------------------------------------------------------
Publishing -- 0.8%
EURO 935,574 NR/NR Mediannuaire Holding, Term Loan B-2, 2.9%,
10/10/14 $ 877,457
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 19
Schedule of Investments | 5/31/10 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Publishing -- (continued)
EURO 935,574 NR/NR Mediannuaire Holding, Term Loan C, 3.4%,
10/9/15 $ 877,457
500,000 B/B1 R.H. Donnelley, Inc., Term Loan, 9.25%,
10/24/14 471,875
-----------
$ 2,226,789
-----------
Total Media $89,530,592
-------------------------------------------------------------------------------------------------------------------
RETAILING -- 6.2%
Catalog Retail -- 0.1%
228,371 NR/NR QVC, Inc., Tranche 2-W Term Loan, 3.841%,
10/4/11 $ 228,371
-------------------------------------------------------------------------------------------------------------------
Distributors -- 0.9%
14,944,776(a)(c)(d) NR/NR Home Interiors & Gifts, Inc., Proof of Claims,
6.86% - 8.02%, 3/31/11 $ 2,615,336
-------------------------------------------------------------------------------------------------------------------
General Merchandise Stores -- 2.3%
2,841,135 BB/Ba3 Dollar General Corp., Tranche B-1 Term Loan,
3.023% - 5.0%, 7/7/14 (144A) $ 2,743,466
4,268,478 B/B2 Dollar General Corp., Tranche B-2 Term Loan,
3.087% - 3.104%, 7/7/14 (144A) 4,098,806
-----------
$ 6,842,272
-------------------------------------------------------------------------------------------------------------------
Oil & Gas -- 0.6%
1,700,000 NR/NR Pilot Travel Centers LLC, Term Loan B, 3.5%,
11/24/16 $ 1,703,339
-------------------------------------------------------------------------------------------------------------------
Specialty Stores -- 2.3%
967,414 BB+/B1 Sally Holdings LLC, Term Loan B, 2.52% - 2.6%,
11/16/13 $ 934,245
1,750,000 B+/Ba3 Savers, Inc., Term Loan, 5.75%, 3/11/16 1,741,250
4,180,099 BB-/B1 Toys R Us -- Delaware, Inc., Tranche B Term Loan,
4.595%, 7/19/12 4,141,434
-----------
$ 6,816,929
-----------
Total Retailing $18,206,247
-------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.5%
Drug Retail -- 0.5%
1,395,102 B+/B3 Rite Aid Corp., Tranche 4 Term Loan, 9.5%,
6/10/15 $ 1,423,441
-------------------------------------------------------------------------------------------------------------------
Food Retail -- 2.0%
1,350,000 NR/B2 Bi-Lo LLC, Facility Term Loan, 9.5%, 5/12/15 $ 1,319,625
4,794,773 B/B2 Pinnacle Foods Finance LLC, Term Loan,
2.778% - 2.985%, 4/2/14 4,530,202
-----------
$ 5,849,827
-----------
Total Food & Staples Retailing $ 7,273,268
-------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
FOOD, BEVERAGE & TOBACCO -- 1.7%
Agricultural Products -- 0.5%
1,500,000 B/B1 Wm. Bolthouse Farms, Inc., First Lien Term Loan,
5.5%, 2/11/16 $1,498,594
-------------------------------------------------------------------------------------------------------
Distillers & Vintners -- 0.4%
363,391 NR/NR Constellation Brands, Inc., Extending Tranche B
Term Loan, 3.063%, 6/5/15 $ 350,900
736,609 BB/Ba3 Constellation Brands, Inc., Non-Extending Tranche
B Term Loan, 1.813%, 6/5/13 724,639
----------
$1,075,539
-------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 0.8%
989,796 BB/Ba3 Dean Foods Co., Tranche B Term Loan,
1.605% - 1.675%, 4/2/14 $ 952,555
260,245 BB-/Ba2 Dole Food Co., Inc., Credit-Linked Deposit Loan,
0.238%, 8/30/10 259,988
211,765 BB-/Ba2 Dole Food Co., Inc., Tranche B-1 Term Loan,
5.0% - 5.5%, 3/2/17 212,520
525,971 BB-/Ba2 Dole, Ltd., Tranche C-1 Term Loan,
5.0% - 5.5%, 3/2/17 527,847
493,750 NR/NR Pierre Foods, Inc., Term Loan, 7.0% - 7.25%,
3/3/16 498,070
----------
$2,450,980
----------
Total Food, Beverage & Tobacco $5,025,113
-------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 4.3%
Household Products -- 3.2%
1,695,750 BB-/Ba2 JohnsonDiversey, Inc., Tranche B Dollar Term
Loan, 5.5%, 11/24/15 $1,697,870
1,000,000 NR/NR Reynolds Group Holdings, Inc., U.S. Incremental
Term Loan, 5.75%, 5/5/16 1,001,250
1,391,250 NR/NR Reynolds Group Holdings, Inc., U.S. Term Loan,
6.25%, 5/5/16 1,392,989
4,115,343(d) B-/B3 Spectrum Brands, Inc., Dollar Term Loan B,
8.0% - 8.75%, 6/30/12 4,108,141
210,397 B-/B3 Spectrum Brands, Inc., LC Loan, 1.5%, 6/30/12 210,029
1,032,009 BB-/Ba3 Yankee Candle Co., Inc., Term Loan, 2.28%,
2/6/14 993,191
----------
$9,403,470
-------------------------------------------------------------------------------------------------------
Personal Products -- 1.1%
973,872(a) NR/NR Appleseed's Intermediate Holdings, Inc., First Lien
Term Loan, 4.36%, 4/30/13 $ 822,922
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 21
Schedule of Investments | 5/31/10 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Personal Products -- (continued)
2,500,000 B+/NR Revlon Consumer Products Corp., Term Loan,
6.0%, 3/11/15 $ 2,447,395
-----------
$ 3,270,317
-----------
Total Household & Personal Products $12,673,787
----------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 12.9%
Health Care Equipment & Services -- 1.6%
712,500 B/NR Fenwal, Inc., First Lien Delayed Draw Term Loan,
2.605% - 2.788%, 2/28/14 $ 631,156
4,157,143 B/NR Fenwal, Inc., Initial First Lien Term Loan,
2.605% - 2.788%, 2/28/14 3,682,534
238,667 NR/NR Fresenius SE, Tranche C-1 Dollar Term Loan,
4.5%, 9/10/14 239,065
136,333 NR/NR Fresenius SE, Tranche C-2 Term Loan, 4.5%,
9/10/14 136,560
-----------
$ 4,689,315
----------------------------------------------------------------------------------------------
Health Care Facilities -- 4.5%
2,400,000 B/B1 Ardent Medical Services, Inc., Term Loan, 6.5%,
9/15/15 $ 2,355,751
56,563 BB/Ba3 CHS/Community Health Systems, Inc., Delayed
Draw Term Loan, 2.788%, 7/25/14 53,013
1,104,551 BB/Ba3 CHS/Community Health Systems, Inc., Term
Loan, 2.604%, 7/25/14 1,035,240
249,352 BB-/Ba2 Hanger Orthopedic Group, Inc., Tranche B Term
Loan, 2.36%, 5/26/13 242,807
2,698,472 BB/Ba3 HCA, Inc., Tranche B-1 Term Loan, 2.54%,
11/18/13 2,556,616
6,471,473 NR/NR HCA, Inc., Tranche B-2 Term Loan, 3.54%,
3/31/17 6,274,294
298,704 BB-/Ba2 Psychiatric Solutions, Inc., Term Loan,
2.154% - 2.26%, 12/3/12 295,717
375,000 NR/NR Renal Advantage, Inc., Facility Term Loan B,
4.5%, 5/17/16 371,250
-----------
$13,184,688
----------------------------------------------------------------------------------------------
Health Care Services -- 4.7%
748,125 BB-/Ba3 Alliance HealthCare Services, Initial Term Loan,
5.5%, 6/1/16 $ 745,320
1,496,250 NR/NR Butler Animal Health Supply LLC, Term Loan,
5.5% - 7.75%, 12/31/15 1,496,250
2,255,185 NR/NR CCS Medical, Inc., First Lien Term Loan, 9.0%,
3/31/15 2,210,081
751,728 NR/NR CCS Medical, Inc., Second Lien Term Loan,
11.0%, 3/31/16 669,038
2,916,031 CCC+/B2 LifeCare Holdings, Term Loan, 4.59%, 8/10/12 2,690,038
The accompanying notes are an integral part of these financial statements.
22 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Health Care Services -- (continued)
1,016,396(c)(d) NR/NR Medical Staffing Network, Inc., Second Lien Term
Loan, 13.5%, 7/2/14 $ 355,739
3,000,000 NR/B1 Prime Healthcare Services, Inc., Term Loan B,
7.25%, 4/28/15 2,940,000
1,915,200 BB/Ba3 RehabCare Group, Inc., Term Loan B, 6.0%,
11/24/15 1,916,397
997,500 BB/NR Rural/Metro Operating Co. LLC, Term Loan, 7.0%,
12/9/14 1,002,487
-----------
$14,025,350
-----------------------------------------------------------------------------------------------------------
Health Care Supplies -- 1.7%
464,317 BB-/B1 Bausch & Lomb, Inc., Delayed Draw Term Loan,
3.54%, 4/24/15 $ 442,345
1,914,539 BB-/B1 Bausch & Lomb, Inc., Parent Term Loan, 3.54%,
4/24/15 1,823,941
2,816,009 BB-/B1 Biomet, Inc., Dollar Term Loan,
3.284% - 3.354%, 3/25/15 2,744,905
-----------
$ 5,011,191
-----------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.4%
1,195,714 NR/B1 MultiPlan, Inc., Incremental Term Loan D, 6.0%,
4/12/13 $ 1,194,594
-----------
Total Health Care Equipment & Services $38,105,138
-----------------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY & LIFE
SCIENCES -- 4.5%
Biotechnology -- 1.1%
1,318,681 B+/B1 Generic Drug Holdings, Inc., Closing Date Term
Loan, 6.5%, 4/8/16 $ 1,312,088
181,319 B+/B1 Generic Drug Holdings, Inc., Delayed Draw Term
Loan, 6.5%, 4/8/16 180,412
364,087 NR/NR Warner Chilcott Co., Inc., Term Loan B-3, 5.75%,
4/30/15 364,224
703,983 BB+/B1 Warner Chilcott Co. LLC, Term Loan A, 5.5%,
10/30/14 704,463
539,540 BB+/B1 Warner Chilcott Co. LLC, Term Loan B-2, 5.75%,
4/30/15 539,793
324,013 BB+/B1 Warner Chilcott Corp., Term Loan B-1, 5.75%,
4/30/15 324,165
-----------
$ 3,425,145
-----------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.7%
1,950,000 NR/NR Wyle Services Corp., Term Loan, 6.0%, 3/28/16 $ 1,952,437
-----------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 2.7%
2,032,385 NR/NR Graceway Pharmaceuticals LLC, Mezzanine Loan,
8.523%, 11/1/13 $ 431,882
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 23
Schedule of Investments | 5/31/10 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Pharmaceuticals -- (continued)
7,609,911 BB+/Ba1 Mylan, Inc., U.S. Tranche B Term Loan,
3.5% - 3.563%, 10/2/14 $ 7,576,617
-----------
$ 8,008,499
-----------
Total Pharmaceuticals &
Biotechnology & Life Sciences $13,386,081
------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.6%
Consumer Finance -- 0.8%
2,500,000 NR/NR AGFS Funding Co., Term Loan, 7.25%, 4/21/15 $ 2,430,625
6,791 NR/NR Dollar Financial Corp., Canadian Borrower Term
Loan, 7.0%, 12/31/14 6,486
4,994 NR/NR Dollar Financial Corp., Delayed Draw Term Loan,
7.0%, 12/31/14 4,769
-----------
$ 2,441,880
------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.1%
325,000 NR/NR LPL Holdings, Inc., Term Loan, 5.25%, 6/28/17 $ 322,563
------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.4%
1,250,000 NR/NR Ikaria Acquisition, Inc., First Lien Term Loan,
7.0%, 5/14/16 $ 1,220,313
------------------------------------------------------------------------------------------------
Specialized Finance -- 1.3%
1,827,492 B/B1 Collect Acquisition Corp., Advance Term Loan B,
7.5%, 5/15/13 $ 1,800,079
2,000,000 BB+/Ba2 MSCI, Inc., Facility Term Loan, 3.25%, 4/30/16 2,002,500
-----------
$ 3,802,579
-----------
Total Diversified Financials $ 7,787,335
------------------------------------------------------------------------------------------------
INSURANCE -- 1.8%
Insurance Brokers -- 1.7%
845,750 B/NR HUB International, Ltd., Additional Term Loan,
6.75%, 6/13/14 $ 827,778
859,761 B/B2 HUB International, Ltd., Delayed Draw Term Loan,
2.79%, 6/13/14 783,458
3,117,918 B/B2 HUB International, Ltd., Initial Term Loan, 2.79%,
6/13/14 2,841,203
497,500 NR/NR USI Holdings Corp., New Term Loan Series C,
7.0%, 5/5/14 486,306
-----------
$ 4,938,745
------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.1%
232,565 B-/B2 AMWINS Group, Inc., Initial Term Loan,
2.76% - 3.04%, 6/8/13 $ 215,268
-----------
Total Insurance $ 5,154,013
------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
REAL ESTATE -- 1.8%
Diversified Real Estate Investment Trust -- 1.4%
5,000,000 CC/Ca Spirit Finance Corp., Term Loan, 3.344%, 8/1/13 $ 4,176,040
------------------------------------------------------------------------------------------------
Real Estate Development -- 0.2%
600,000 B/Ba3 Ozburn-Hessey Holding Co. LLC, First Lien Term
Loan, 7.5%, 4/8/16 $ 601,125
------------------------------------------------------------------------------------------------
Specialized Real Estate Investment Trust -- 0.2%
500,000 BB/Ba1 MPT Operating Partnership, L.P., Term Loan,
5.0%, 5/17/16 $ 497,500
-----------
Total Real Estate $ 5,274,665
------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 14.0%
Application Software -- 1.9%
1,598,097 B+/Ba2 Nuance Communications, Inc., Term Loan,
2.36%, 3/29/13 $ 1,545,160
3,509,527 B+/B1 Serena Software, Inc., Term Loan,
2.252% - 2.522%, 3/11/13 3,366,222
897,282 BB-/NR Verint Systems, Inc., Term Loan, 3.54%, 5/25/14 844,567
-----------
$ 5,755,949
------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.7%
989,848 B+/B1 First Data Corp., Initial Tranche B-2 Term Loan,
3.032% - 3.04%, 9/24/14 $ 835,803
1,185,909 BBB/Baa3 Lender Processing Services, Inc., Term Loan B,
2.854%, 7/1/14 1,183,933
-----------
$ 2,019,736
------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 4.8%
937,886 B/B1 Activant Solutions, Inc., Term Loan, 2.313%,
5/2/13 $ 888,647
250,000 BB-/B1 Intergraph Corp., Incremental Term Loan B-1,
6.0%, 5/29/14 250,469
4,471,157 B+/B2 Keane International, Inc., Closing Date Term Loan,
2.51%, 6/4/13 4,233,627
348,837 B+/B2 Keane International, Inc., Synthetic LC Loan,
2.425%, 6/4/13 330,305
4,925,000 BB/Ba3 SunGard Data Systems, Inc., Incremental Term
Loan, 6.75%, 2/28/14 4,916,790
3,673,684 BB/Ba3 SunGard Data Systems, Inc., Tranche A U.S. Term
Loan, 2.047%, 2/28/14 3,514,797
-----------
$14,134,635
------------------------------------------------------------------------------------------------
Systems Software -- 6.6%
1,234,375 BB-/B1 Allen Systems Group, Inc., First Lien Term Loan,
8.5%, 10/18/13 $ 1,235,146
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 25
Schedule of Investments | 5/31/10 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Systems Software -- (continued)
2,321,474 NR/NR Applied Systems, Inc., Term Loan, 2.854%,
9/26/13 $ 2,164,774
2,655,907 BB-/NR Dealer Computer Services, Inc., Term Loan,
5.25%, 4/21/17 2,642,627
2,318,500 B+/B1 Infor Enterprise Solutions Holdings, Inc., Delayed
Draw Term Loan, 4.11%, 7/28/12 2,159,103
2,917,500 B+/B1 Infor Enterprise Solutions Holdings, Inc., Dollar
Tranche B-1 First Lien Term Loan,
3.03% - 3.11%, 7/28/12 2,829,975
4,443,792 B+/B1 Infor Enterprise Solutions Holdings, Inc., Initial
U.S. Term Loan, 4.11%, 7/28/12 4,138,281
1,466,667 NR/NR Infor Enterprise Solutions Holdings, Inc., Second
Lien Delayed Draw Term Loan, 6.604%, 3/2/14 1,149,500
2,533,333 CCC+/Caa2 Infor Enterprise Solutions Holdings, Inc., Second
Lien Initial Dollar Term Loan, 6.604%, 3/2/14 1,963,333
275,000 B+/B1 Telcordia Technologies, Inc., Term Loan, 6.75%,
4/30/16 271,448
940,911 BB-/B1 Vangent, Inc., Term Loan, 2.75%, 2/14/13 893,866
-----------
$19,448,053
-----------
Total Software & Services $41,358,373
------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 3.5%
Communications Equipment -- 0.8%
775,545 BB/Ba2 CommScope, Inc., Term Loan B,
2.79% - 2.854%, 12/26/14 $ 754,218
1,496,250 BB/Ba3 TowerCo Finance LLC, Term Loan, 6.0%,
11/24/14 1,498,744
-----------
$ 2,252,962
------------------------------------------------------------------------------------------------
Electronic Components -- 0.4%
36,192 BB+/NR Flextronics International, Ltd., A-1-B Delayed
Draw Loan, 2.54%, 10/1/14 $ 33,804
1,151,656 BB+/NR Flextronics International, Ltd., A-3 Delayed Draw
Loan, 2.523%, 10/1/14 1,086,875
-----------
$ 1,120,679
------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.9%
1,024,077 B+/Ba3 Itron, Inc., Dollar Term Loan,
3.53% - 3.78%, 4/18/14 $ 1,023,757
1,543,513 NR/NR Scitor Corp., Term Loan, 4.6%, 9/26/14 1,524,219
-----------
$ 2,547,976
------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 1.0%
1,631,872 BB+/Ba3 Baldor Electric Co., Term Loan, 5.25%, 1/31/14 $ 1,632,073
749,889 NR/B2 FCI USA, Inc., Facility Term Loan B-1,
3.67%, 11/1/13 692,397
The accompanying notes are an integral part of these financial statements.
26 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Electronic Manufacturing Services -- (continued)
749,889 NR/B2 FCI USA, Inc., Facility Term Loan B-5-B,
3.67%, 11/1/13 $ 692,397
-----------
$ 3,016,867
---------------------------------------------------------------------------------------------------
Technology Distributors -- 0.4%
1,300,000 B/B1 Securus Technologies, Inc., Term Loan,
8.0%, 10/31/14 $ 1,309,750
-----------
Total Technology Hardware & Equipment $10,248,234
---------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.5%
Semiconductors -- 0.5%
1,500,000 NR/Ba2 Intersil Corp., Term Loan, 5.5%, 4/27/16 $ 1,499,625
-----------
Total Semiconductors & Semiconductor
Equipment $ 1,499,625
---------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 8.4%
Alternative Carriers -- 2.0%
6,500,000 B+/B1 Level 3 Financing, Inc., Tranche A Term Loan,
2.548%, 3/13/14 $ 5,874,375
---------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- 4.4%
EURO 752,152 NR/NR Amsterdamse Beheer-EN Consultingmaatschappij
B.V., Casema Facility Term Loan B-1,
3.426%, 9/15/14 $ 900,620
EURO 390,705 NR/NR Amsterdamse Beheer-EN Consultingmaatschappij
B.V., Casema Facility Term Loan B-2,
3.426%, 9/15/14 467,827
EURO 1,142,857 NR/NR Amsterdamse Beheer-EN Consultingmaatschappij
B.V., Casema Facility Term Loan C,
3.926%, 9/14/15 1,368,446
EURO 857,143 NR/NR Amsterdamse Beheer-EN Consultingmaatschappij
B.V., Kabelcom Facility Term Loan B,
3.426%, 9/15/14 1,026,335
EURO 857,143 NR/NR Amsterdamse Beheer-EN Consultingmaatschappij
B.V., Kabelcom Facility Term Loan C,
3.926%, 9/14/15 1,026,335
1,000,000 CCC+/Caa1 Hargray Acquisition Co., Second Lien Term Loan,
5.853%, 1/29/15 898,750
3,972,956 NR/B1 Telesat Canada, U.S. Term I Loan,
3.36%, 10/31/14 3,835,146
341,248 NR/B1 Telesat Canada, U.S. Term II Loan,
3.28%, 10/31/14 329,411
746,144 B+/Ba1 Time Warner Telecom Holdings, Inc., Term Loan B,
2.11%, 1/7/13 725,625
1,286,727 BB-/B1 West Corp., Term Loan B-2, 2.811%, 10/24/13 1,209,791
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 27
Schedule of Investments | 5/31/10 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Integrated Telecommunication Services -- (continued)
1,174,935 BB+/NR Windstream Corp., Tranche B-2 Term Loan,
3.06%, 12/17/15 $ 1,139,197
------------
$ 12,927,483
----------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 2.0%
6,188,392 BB-/Ba1 MetroPCS Wireless, Inc., Tranche B Term Loan,
2.563%, 11/3/13 $ 5,953,010
------------
Total Telecommunication Services $ 24,754,868
----------------------------------------------------------------------------------------------------------------------
UTILITIES -- 5.5%
Electric Utilities -- 4.6%
1,754,777 B+/B1 Coleto Creek Power, L.P., First Lien Synthetic LC
Term Loan, 0.19%, 6/28/13 $ 1,612,201
3,327,736 B+/B1 Coleto Creek Power, L.P., First Lien Term Loan,
3.04% - 3.104%, 6/28/13 3,057,357
4,812,500 NR/NR Coleto Creek Power, L.P., Second Lien Term Loan,
4.354%, 6/28/13 3,912,163
881,057(a)(d)(e) NR/NR GBGH LLC, First Lien Term Loan, 4.0%, 6/9/13 411,013
290,844(a)(d)(e) NR/NR GBGH, LLC, Second Lien Term Loan,
12.0%, 6/9/14 2,908
5,771,671 B+/NR Texas Competitive Electric Holdings Co. LLC, Initial
Tranche B-2 Term Loan,
3.751% - 4.066%, 10/10/14 4,459,649
------------
$ 13,455,291
----------------------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy
Traders -- 0.9%
1,804,111 B+/B1 Calpine Corp., First Priority Term Loan,
3.165%, 3/29/14 $ 1,700,562
275,941 BB-/Ba3 Mach Gen LLC, First Lien Synthetic LC Loan,
0.04%, 2/22/13 256,797
273,514 BB+/Baa3 NRG Energy, Inc., Credit-Linked Deposit Loan,
0.19%, 2/1/13 263,724
414,759 BB+/Baa3 NRG Energy, Inc., Term Loan,
2.04% - 2.104%, 2/1/13 399,913
------------
$ 2,620,996
------------
Total Utilities $ 16,076,287
----------------------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE LOAN
INTERESTS
(Cost $474,885,381) $411,107,211
----------------------------------------------------------------------------------------------------------------------
CLAIMS -- 0.0% of Net Assets
CAPITAL GOODS -- 0.0%
Aerospace & Defense -- 0.0%
1,200,000(a)(e)(h) NR/NR Northwest Airlines, Inc., ALPA Claim-Escrow, 2.5% $ 826
The accompanying notes are an integral part of these financial statements.
28 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Aerospace & Defense -- (continued)
2,500,000(a)(e)(h) NR/NR Northwest Airlines, Inc., Bell Atlantic
Claim-Escrow, 2.5% $ 1,720
2,500,000(a)(e)(h) NR/NR Northwest Airlines, Inc., EDC Claim-Escrow, 5.32% 1,720
2,130,600(a)(e)(h) NR/NR Northwest Airlines, Inc., Flight Attendant
Claim-Escrow, 2.5% 1,466
1,500,000(a)(e)(h) NR/NR Northwest Airlines, Inc., GE Claim-Escrow, 2.5% 1,032
1,264,500(a)(e)(h) NR/NR Northwest Airlines, Inc., IAM Claim-Escrow, 2.5% 870
1,404,900(a)(e)(h) NR/NR Northwest Airlines, Inc., Retiree Claim-Escrow, 2.5% 966
----------
Total Capital Goods $ 8,600
---------------------------------------------------------------------------------------------------------------------
TOTAL CLAIMS
(Cost $0) $ 8,600
---------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES -- 14.2% of Net Assets
ENERGY -- 0.9%
Oil & Gas Exploration & Production -- 0.9%
2,490,000 BB/B1 Denbury Resources, Inc., 8.25%, 2/15/20 $2,570,925
----------
Total Energy $2,570,925
---------------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.8%
Paper Products -- 0.8%
1,750,000 B+/B1 Appleton Papers, Inc., 10.5%, 6/15/15 (144A) $1,592,500
600,000 B+/B1 Cellu Tissue Holdings, Inc., 11.5%, 6/1/14 645,000
----------
Total Materials $2,237,500
---------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 1.2%
Aerospace & Defense -- 0.8%
550,000 BB/Ba3 DigitalGlobe, Inc., 10.5%, 5/1/14 (144A) $ 588,500
1,850,000 BB/NR Spirit AeroSystems, Inc., 7.5%, 10/1/2017 1,822,250
----------
$2,410,750
---------------------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy
Trucks -- 0.4%
1,000,000 BB-/Caa1 Manitowoc Co., Inc., 9.5%, 2/15/18 $ 982,500
----------
Total Capital Goods $3,393,250
---------------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.0%
Auto Parts & Equipment -- 0.0%
127,932 NR/NR Delphi International Holdings S.A.R.L,
12.0%, 10/6/14 $ 127,932
----------
Total Automobiles & Components $ 127,932
---------------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.3%
Housewares & Specialties -- 0.3%
1,000,000 BB-/B1 Jarden Corp., 8.0%, 5/1/16 $1,021,250
----------
Total Consumer Durables & Apparel $1,021,250
---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 29
Schedule of Investments | 5/31/10 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
MEDIA -- 0.3%
Advertising -- 0.3%
936,000 B+/B2 MDC Partners, Inc., 11.0%, 11/1/16 (144A) $ 1,001,520
-----------
Total Media $ 1,001,520
-----------------------------------------------------------------------------------------------------------------
RETAILING -- 0.6%
Catalog Retail -- 0.6%
1,825,000 BB+/Ba2 QVC, Inc., 7.5%, 10/1/19 (144A) $ 1,779,375
-----------
Total Retailing $ 1,779,375
-----------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY & LIFE
SCIENCES -- 8.8%
Biotechnology -- 1.5%
3,609,385(a) NR/NR Fosamprenavir Pharma, 15.5%, 6/15/18 (144A) $ 3,428,916
2,943,265(a)(b)(d) NR/NR Molecular Insight Pharmaceuticals, Inc., 8.344%,
11/16/12 (144A) 1,030,143
-----------
$ 4,459,059
-----------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 7.3%
15,000,000(a) NR/NR Azithromycin Royalty Sub LLC, 16.0%,
5/15/19 (144A) $11,550,000
11,482,524(a)(d) NR/NR Celtic Pharma Phinco B.V., 17.0%,
6/15/12 (144A) 6,545,039
600,000(a) NR/NR Pharma V, 13.0%, 10/15/13 (144A) 576,000
596,031(a)(b)(d) NR/NR Pharma VI, 5.786%, 10/15/14 (144A) 476,825
1,256,219(a)(d) NR/NR Pharma X, 15.5%, 3/30/17 (144A) 1,067,786
1,500,000(a)(d) NR/NR TCD Pharma, 16.0%, 4/15/24 (144A) 1,320,000
-----------
$21,535,650
-----------
Total Pharmaceuticals & Biotechnology
& Life Sciences $25,994,709
-----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.4%
Asset Management & Custody Banks -- 0.2%
530,000 BB+/Baa3 Janus Capital Group, Inc., 6.25%, 6/15/12 $ 546,684
-----------------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.1%
200,000 BBB/Baa1 Capital One Financial Corp., 7.375%, 5/23/14 $ 227,217
-----------------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.1%
500,000(b) BB/NR Lodestone Re, Ltd., 8.4%, 5/17/13 (144A) $ 497,750
-----------
Total Diversified Financials $ 1,271,651
-----------------------------------------------------------------------------------------------------------------
INSURANCE -- 0.5%
Reinsurance -- 0.5%
250,000(b) NR/Ba2 Muteki, Ltd., 4.845%, 5/24/11 (144A) $ 246,175
500,000(b) NR/NR Mystic Re, Ltd., 10.252%, 6/7/11 (144A) 503,100
600,000(b) NR/NR Residential Reinsurance 2008, Ltd., 7.002%,
6/6/11 (144A) 588,480
-----------
Total Insurance $ 1,337,755
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
REAL ESTATE -- 0.3%
Specialized Real Estate Investment Trusts -- 0.3%
750,000 BBB/Baa2 Hospitality Properties Trust, 7.875%, 8/15/14 $ 824,353
-----------
Total Real Estate $ 824,353
-------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.1%
Integrated Telecommunication Services -- 0.1%
300,000 BB/Ba2 Frontier Communications Corp., 8.25%, 5/1/14 $ 307,875
-----------
Total Telecommunication Services $ 307,875
-------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE NOTES
(Cost $51,589,535) $41,868,095
-------------------------------------------------------------------------------------------------------------
Shares
-------------------------------------------------------------------------------------------------------------
COMMON STOCK -- 4.8% of Net Assets
ENERGY -- 0.0%
Oil & Gas Drilling -- 0.0%
138(a)(e)(h) TARH E&P Holdings GP, LLP Class A Membership
Interest $ 1
130,056(a)(e)(h) TARH E&P Holdings LP, Class A Partnership
Interest 1,301
-----------
$ 1,302
-------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.0%
213,605(e)(h) Value Creation, Inc. $ 57,673
-----------
Total Energy $ 58,975
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.7%
Commodity Chemicals -- 0.6%
101,750(h) Georgia Gulf Corp. $ 1,770,450
-------------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.1%
20,650(e)(h) Panda Herford Ethanol LP $ 206,500
-----------
Total Materials $ 1,976,950
-------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.1%
Airlines -- 0.0%
5,460(h) Delta Airlines, Inc. $ 74,147
-------------------------------------------------------------------------------------------------------------
Trucking -- 0.1%
12,887(h) SIRVA Worldwide, Inc. $ 193,305
-----------
Total Transportation $ 267,452
-------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 3.7%
Auto Parts & Equipment -- 3.7%
829(h) Delphi DIP Holdco LLP, Class B Subscription $11,067,150
-----------
Total Automobiles & Components $11,067,150
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 31
Schedule of Investments | 5/31/10 (unaudited) (continued)
Shares Value
MEDIA -- 0.1%
Broadcasting -- 0.1%
5,325(h) Charter Communications, Inc. $ 191,700
-------------
Total Media $ 191,700
----------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.2%
Health Care Services -- 0.2%
15,034(h) CCS Medical, Inc. $ 443,503
-------------
Total Health Care Equipment & Services $ 443,503
----------------------------------------------------------------------------------------------------------
UTILITIES -- 0.0%
Electric Utilities -- 0.0%
1,589(a)(e)(h) GBGH, LLC Membership Interest $ 16
-------------
Total Utilities $ 16
----------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost $8,311,030) $ 14,005,746
----------------------------------------------------------------------------------------------------------
LIQUIDATING TRUST -- 0.0% of Net Assets
CONSUMER SERVICES -- 0.0%
Hotels, Resorts & Cruise Lines -- 0.0%
3,377,886(e)(h) Yellowstone Mountain Club LLC, Liquidating Trust $ --
-------------
Total Consumer Services $ --
----------------------------------------------------------------------------------------------------------
TOTAL LIQUIDATING TRUST
(Cost $0) $ --
----------------------------------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.0% of Net Assets
TELECOMMUNICATION SERVICES -- 0.0%
Integrated Telecommunication Services -- 0.0%
133,333(a)(e)(h) Clearwire Corp., Exp. 8/15/10 (144A) $ --
133,333(h) Clearwire Corp. Rights, Exp 6/21/10 44,267
-------------
Total Telecommunication Services $ 44,267
----------------------------------------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $956,752) $ 44,267
----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 160.0%
(Cost $542,055,470)(i) $ 471,784,327
----------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.9% $ 5,597,491
----------------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (61.9)% $(182,492,683)
----------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS -- 100.0% $ 294,889,135
==========================================================================================================
The accompanying notes are an integral part of these financial statements.
32 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
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 or (iv) other base lending rates used by commercial lenders.
The interest rate shown is the rate accruing at May 31, 2010.
(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, 2010, the value of these securities amounted to $44,384,789 or 15.1%
of total net assets applicable to common shareowners.
(a) Indicates a security that has been deemed illiquid. The aggregate cost of
illiquid securities is $102,982,230. The aggregate value of $52,247,395
represents 17.7% of the total net assets applicable to common
shareowners.
(b) Floating Rate Note. The rate shown is the coupon rate at May 31, 2010.
(c) Security is in default and is non-income producing.
(d) Payment-in-Kind (PIK) security which may pay interest in additional
principal amount.
(e) Security is fair valued using fair value methods (other than prices
supplied by independent pricing services). (See Note 1A).
(f) Issuer in the process of reorganization.
(g) The company and agent bank are in the process of negotiating forbearance.
(h) Non-income producing.
(i) At May 31, 2010, the net unrealized loss on investments based on cost for
federal income tax purposes of $542,326,851 was as follows:
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $ 13,033,337
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (83,575,861)
------------
Net unrealized loss $(70,542,524)
============
For financial reporting purposes net unrealized loss on investments was
$70,271,143 and cost of investments aggregated $542,055,470.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended May 31, 2010, aggregated $107,800,464 and $116,029,506,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 33
Schedule of Investments | 5/31/10 (unaudited) (continued)
Glossary of Terms:
LC -- Letter of Credit
Principal amounts are denominated in U.S. dollars unless otherwise noted.
AUD -- Australian Dollar
EURO -- Euro
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, 2010, in valuing the
Trust's investments:
Level 1 Level 2 Level 3 Total
Collateralized loan obligations $ -- $ -- $4,750,408 $ 4,750,408
Senior secured floating rate loan
interests (oil & gas drilling) -- 5,699,429 1,316,308 7,015,737
Senior secured floating rate loan
interests (cable & satellite) -- 26,824,852 10,509,939 37,334,791
Senior secured floating rate loan
interests (electric utilities) -- 13,041,370 413,921 13,455,291
Senior secured floating rate loan
interests (other industries) -- 353,301,392 -- 353,301,392
Claims -- -- 8,600 8,600
Corporate notes (biotechnology) -- -- 4,459,059 4,459,059
Corporate notes (pharmaceuticals) -- -- 21,535,650 21,535,650
Corporate notes (other industries) -- 15,873,386 -- 15,873,386
Common stock (oil & gas drilling) -- -- 1,302 1,302
Common stock (oil & gas equipment
& services) -- -- 57,673 57,673
Common stock (diversified
chemicals) -- -- 206,500 206,500
Common stock (trucking) -- 193,305 -- 193,305
Common stock (auto parts &
equipment) -- 11,067,150 -- 11,067,150
Common stock (health care services) -- 443,503 -- 443,503
Common stock (electric utilities) -- -- 16 16
Common stock (other industries) 2,036,297 -- -- 2,036,297
The accompanying notes are an integral part of these financial statements.
34 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Level 1 Level 2 Level 3 Total
Liquidating trust -- -- -- --
Rights/Warrants 44,267 -- -- 44,267
---------------------------------------------------------------------------------------
Total $2,080,564 $426,444,387 $43,259,376 $471,784,327
=======================================================================================
Other Financial Instruments* $ -- $ (220,285) $ -- $ (220,285)
---------------------------------------------------------------------------------------
* Other financial instruments include net depreciation on unfunded corporate
loans.
The following is a reconciliation of assets valued using significant
unobservable inputs (level 3):
Change in
unrealized Transfer in
Balance as of Realized appreciation Net purchases and out of Balance as of
11/30/09 gain (loss) (depreciation)1 (sales) Level 3* 5/31/10
Collateralized loan
obligations $ 4,485,650 $ -- $ 276,887 $ (12,129) $ -- $ 4,750,408
Senior secured floating
rate loan interests
(oil & gas drilling) 1,275,323 -- (1,253) 42,238 -- 1,316,308
Senior secured floating
rate loan interests
(cable & satellite) 10,509,939 -- -- -- -- 10,509,939
Senior secured floating
rate loan interests
(electric utilities) 413,755 -- (16,485) 16,651 -- 413,921
Claims 8,600 -- -- -- -- 8,600
Corporate notes
(biotechnology) 6,001,042 -- (1,203,326) (338,657) -- 4,459,059
Corporate notes
(pharmaceuticals) 21,965,041 -- (706,857) 277,466 -- 21,535,650
Common stock (oil &
gas drilling) 1,302 -- -- -- -- 1,302
Common stock (oil &
gas equipment &
services) -- -- 57,459 214 -- 57,673
Common stock
(diversified
chemicals) 206,500 -- -- -- -- 206,500
Common stock (other
diversified financial
services) 16 -- -- -- -- 16
Liquidating trust -- -- -- -- -- --
Rights/warrants -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------
Ending balance $44,867,168 $ -- $(1,593,575) $ (14,217) $ -- $43,259,376
========================================================================================================================
(1) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized gain (loss) from investments in the Statement of
Operations.
* Transfers are calculated beginning of period.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 35
Statement of Assets and Liabilities | 5/31/10 (unaudited)
ASSETS:
Investments in securities, at value (cost $542,055,470) $ 471,784,327
Cash 5,978,705
Foreign currencies, at value (cost $3,158,087) 2,915,113
Receivables --
Investment securities sold 4,921,970
Paydowns 18,813
Interest 4,089,596
Commitment fees 1,286
Prepaid expenses 13,979
--------------------------------------------------------------------------------------
Total assets $ 489,723,789
--------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 11,439,423
Depreciation on unfunded corporate loans -- net 220,285
Unamortized facility fees 189,127
Due to affiliates 325,998
Accrued expenses 167,138
--------------------------------------------------------------------------------------
Total liabilities $ 12,341,971
--------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 7,298 shares,
including dividends payable of $42,683 $ 182,492,683
--------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $ 462,090,694
Distributions in excess of net investment income (204,076)
Accumulated net realized loss on investments and foreign currency
transactions (96,245,498)
Net unrealized loss on investments (70,491,428)
Net unrealized loss on foreign currency assets and liabilities
denominated in foreign currencies (260,557)
--------------------------------------------------------------------------------------
Net assets applicable to common shareowners $ 294,889,135
======================================================================================
NET ASSET VALUE PER SHARE:
No par value, (unlimited number of shares authorized)
Based on $294,889,135/24,466,483 common shares $ 12.05
======================================================================================
The accompanying notes are an integral part of these financial statements.
36 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Statement of Operations (unaudited)
For the Six Months Ended 5/31/10
INVESTMENT INCOME:
Interest $ 16,617,592
Facility and other fees 217,875
-------------------------------------------------------------------------------------------------
Total investment income $16,835,467
-------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,665,684
Administrative fees 226,601
Transfer agent fees and expenses 6,000
Shareowner communication expenses 37,030
Auction agent fees 242,804
Custodian fees 17,484
Registration fees 11,886
Professional fees 124,569
Printing expenses 27,408
Trustees' fees 7,205
Pricing fees 32,302
Miscellaneous 110,424
-------------------------------------------------------------------------------------------------
Total expenses $ 2,509,397
-------------------------------------------------------------------------------------------------
Net investment income $14,326,070
-------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $ (5,085,646)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 5,264 $(5,080,382)
-------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) from:
Investments $ 18,779,964
Unfunded corporate loans 412,158
Foreign currency contracts and other assets and liabilities
denominated in foreign currencies (255,143) $18,936,979
-------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $13,856,597
-------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERSFROM NET
INVESTMENT INCOME: $(1,367,905)
-------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common shareowners
resulting from operations $26,814,762
=================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 37
Statement of Changes in Net Assets
For the Six Months Ended 5/31/10 and the Year Ended 11/30/09, respectively
Six Months
Ended Year
5/31/10 Ended
(unaudited) 11/30/09
FROM OPERATIONS:
Net investment income $ 14,326,070 $ 27,553,560
Net realized loss on investments and foreign currency
transactions (5,080,382) (50,368,659)
Change in net unrealized gain (loss) on investments and foreign
currency transactions 18,936,979 122,291,286
Distributions to preferred shareowners from net investment
income (1,367,905) (2,948,076)
----------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners resulting from operations $ 26,814,762 $ 96,528,111
----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income
($0.448 and $1.117 per share, respectively) $(10,943,623) $(27,292,353)
Tax return of capital
($0.000 and $0.053 per share, respectively) -- (1,288,580)
----------------------------------------------------------------------------------------------------
Total distributions to common shareowners $(10,943,623) $(28,580,933)
----------------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 453,375 $ --
----------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners resulting from Trust share transactions $ 453,375 $ --
----------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners $ 16,324,514 $ 67,947,178
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period 278,564,621 210,617,443
----------------------------------------------------------------------------------------------------
End of period $294,889,135 $278,564,621
----------------------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (204,076) $ (2,218,618)
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
38 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Financial Highlights
Six Months
Ended Year Year Year Year 12/28/04 (b)
5/31/10 Ended Ended Ended Ended to
(unaudited) 11/30/09 11/30/08 11/30/07 11/30/06 11/30/05
Per Common Share Operating Performance
Net asset value, beginning of period $11.40 $ 8.62 $18.07 $19.66 $19.08 $19.10(c)
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 0.59 $ 1.13 $ 1.88 $ 2.30 $ 2.20 $ 1.33
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 0.57 2.94 (8.88) (1.47) 0.52 (0.05)
Dividends and distributions to preferred shareowners from:
Net investment income (0.06) (0.12) (0.37) (0.51) (0.46) (0.23)
Net realized gains -- -- (0.03) 0.00(d) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.10 $ 3.95 $(7.40) $ 0.32 $ 2.26 $ 1.05
Distributions to common shareowners from:
Net investment income (0.45) (1.12) (1.70) (1.91) (1.63) (0.92)
Net realized gains -- -- (0.35) 0.00(d) (0.05) --
Tax return of capital -- (0.05) -- -- -- --
Capital charge with respect to issuance of:
Common shares -- -- -- -- -- (0.04)
Preferred shares -- -- -- -- 0.00 (d) (0.11)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.65 $ 2.78 $(9.45) $(1.59) $ 0.58 $(0.02)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period (e) $12.05 $11.40 $ 8.62 $18.07 $19.66 $19.08
====================================================================================================================================
Market value, end of period (e) $12.15 $11.54 $ 6.90 $16.79 $18.95 $17.14
====================================================================================================================================
Total return at market value (f) 9.27% 91.01% (52.10)% (2.02)% 20.94% (9.76)%
Ratios to average net assets of common shareowners
Net expenses (g) 1.71%(h) 2.03% 1.60% 1.40% 1.38% 1.23%(h)
Net investment income before preferred share dividends 9.75%(h) 11.79% 12.61% 11.92% 11.37% 7.52%(h)
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 39
Financial Highlights (continued)
Six Months
Ended Year Year Year Year 12/28/04 (b)
5/31/10 Ended Ended Ended Ended to
(unaudited) 11/30/09 11/30/08 11/30/07 11/30/06 11/30/05
Preferred share dividends 0.93%(h) 1.26% 2.47% 2.66% 2.39% 1.29%(h)
Net investment income available to common shareowners 8.82%(h) 10.53% 10.14% 9.26% 8.98% 6.23%(h)
Portfolio turnover 23% 32% 31% 80% 75% 61%
Net assets of common shareowners, end of period
(in thousands) $294,889 $278,565 $210,617 $441,493 $478,255 $464,324
Preferred shares outstanding (in thousands) $182,450 $182,450 $204,475 $234,500 $234,500 $234,500
Asset coverage per preferred share, end of period $ 65,413 $ 63,175 $ 50,758 $ 72,067 $ 76,000 $ 74,520
Average market value per preferred share (i) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per
preferred share $ 25,006 $ 25,005 $ 25,007 $ 25,009 $ 25,013 $ 25,018
Ratios to average net assets of common shareowners
before waivers and reimbursement of expenses
Net expenses (g) 1.71%(h) 2.03% 1.60% 1.40% 1.40% 1.24%(h)
Net investment income before preferred share dividends 9.75%(h) 11.79% 12.61% 11.92% 11.35% 7.51%(h)
Preferred share dividends 0.93%(h) 1.26% 2.47% 2.66% 2.39% 1.29%(h)
Net investment income available to common shareowners 8.82%(h) 10.53% 10.14% 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 28, 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 returns covering less than a full period are 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 periods indicated. This information has
been determined based upon financial information provided in the financial
statements and market value data for the Trust's common shares.
The accompanying notes are an integral part of these financial statements.
40 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Notes to Financial Statements | 5/31/10 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Floating Rate Trust (the "Trust") was organized as a Delaware statutory
trust on October 6, 2004. Prior to commencing operations on December 28, 2004,
the Trust had no operations other than matters relating to its organization and
registration as a non-diversified, closed-end management investment company
under the Investment Company Act of 1940, as amended. The investment objective
of the Trust is to provide a high level of current income. The Trust will, as a
secondary objective, also seek preservation of capital to the extent consistent
with its primary objective of high current income.
Information regarding the Trust's principal risks is contained in the Trust's
original offering prospectus with additional information included in the
Trust's shareowner reports 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 invests primarily in senior floating rate loans (Senior Loans). The
Trust may also invest in other floating and variable rate instruments,
including second lien loans, investment grade fixed-income debt securities and
high yield, high risk corporate bonds. The Trust may also invest in below
investment grade securities. Below investment grade securities are commonly
referred to as "junk bonds" and are considered speculative with respect to the
issuer's capacity to pay interest and repay principal. These securities involve
greater risk of loss, are subject to greater price volatility, and are less
liquid, especially during periods of economic uncertainty or change, than
higher rated debt securities. The Trust may invest in securities of issuers
that are in default or that are in bankruptcy.
The Trust's investments in certain foreign markets or countries with limited
developing markets may subject the Trust to a greater degree of risk than in a
developed market. These risks include disruptive political or economic
conditions and the possible imposition of adverse governmental laws or currency
exchange restrictions.
The Trust is not limited in the percentage of its assets that may be invested
in Senior Loans and other securities deemed to be illiquid. Illiquid securities
may be difficult to sell at a fair price at times when the Trust believes it is
desirable to do so and their market price is generally more volatile than that
of more liquid securities. Illiquid securities also may be more difficult to
value and
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 41
investment of the Trust's assets in illiquid securities may restrict the
Trust's ability to take advantage of market opportunities.
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. The net asset value of
the Trust is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. 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
Senior Loans will be valued by Loan Pricing Corporation through the use of
pricing matrices to determine valuations. Fixed-income securities with
remaining maturities of more than sixty days are valued at prices supplied by
independent pricing services, which consider such factors as market prices,
market events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings. Valuations may be supplemented by dealers and other
sources, as required. Equity securities are valued at the last sale price on
the principal exchange where they are traded. Securities or loans for which
market prices and/or quotations are not readily available or are considered
to be unreliable are valued using fair value methods pursuant to procedures
adopted by the Board of Trustees.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Trust's shares are determined as of such
times.
The Trust may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Trust's net asset
value. Thus, the valuation of the Trust's securities may differ from exchange
prices. At May 31, 2010, 21 securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services)
42 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
representing 4.2% of net assets applicable to common shareowners. Inputs used
in the valuation of a security using fair value methods include credit
ratings, the financial condition of the company, current market conditions
and comparable securities. Short-term fixed income securities with remaining
maturities of sixty days or less generally are valued at amortized cost.
Discounts and premiums on debt securities are accreted or amortized,
respectively, daily, into interest income on an effective yield to maturity
basis with a corresponding increase or decrease in the cost basis of the
security. Interest income, including income on interest bearing cash
accounts, is recorded on an accrual basis, net of unrecoverable foreign taxes
withheld at the applicable country rates.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Trust becomes aware of the ex-dividend data in
the exercise of reasonable diligence.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the Statement of Operations from the
effects of changes in market prices of those securities but are included with
the net realized and unrealized gain or loss on investments.
C. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
returns for the prior three fiscal years remain 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 sources of the Trust's distributions may be shown
in the accompanying financial statements as from or in excess of net
investment income or net realized gain (loss) on investments and foreign
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 43
currency transactions, or as 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
paid during the year ended November 30, 2009 were as follows:
2009
Distributions paid from:
Ordinary income $30,240,429
Tax return of capital 1,288,580
-------------------------------------------------------------------------
Total distribution $31,529,009
=========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at November 30, 2009.
2009
Distributable earnings:
Capital loss carryforward $ (90,438,854)
Post-October loss deferred (726,262)
Distributions payable (1,869,305)
Unrealized depreciation (90,038,277)
-------------------------------------------------------------------------
Total $ (183,072,698)
=========================================================================
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, book/tax
differences in the accrual of income on securities in default and the
realization of unrealized gain on investments in passive foreign investment
companies.
D. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Trust's custodian or a sub custodian of the Trust. The Trust's
investment adviser, Pioneer Investment Management, Inc. (PIM), is responsible
for determining that the value of the collateral remains at least equal to
the repurchase price.
E. Automatic Dividend Reinvestment Plan
All common shareowners, whose shares are registered in their own names,
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional common shares
of the Trust in lieu of cash. Shareowners may elect not to participate in the
Plan.
44 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
Shareowners not participating in the Plan receive all dividends and capital
gain distributions in cash. Participation in the Plan is completely voluntary
and may be terminated or resumed at any time without penalty by notifying
American Stock Transfer & Trust Company, the agent for shareowners in
administering the Plan (the Plan Agent), in writing prior to any dividend
record date; otherwise such termination or resumption will be effective with
respect to any subsequently declared dividend or other distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate in
the Plan on the shareowner's behalf. If the firm or nominee does not offer
the Plan, dividends will be paid in cash to the shareowner of record. A firm
or nominee may reinvest a shareowner's cash dividend in common shares of the
Trust on terms that differ from the terms of the plan.
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional unissued
but authorized common shares from the Trust or (ii) by purchase of
outstanding common shares on the New York Stock Exchange or elsewhere. If, on
the payment date for any dividend the net asset value per common share is
equal to or less than the market price per share plus estimated brokerage
trading fees (market premium), the Plan Agent will invest the dividend amount
in newly issued common shares. The number of newly issued common shares to be
credited to each account will be determined by dividing the dollar amount of
the dividend by the net asset value per common share on the date the shares
are issued, provided that the maximum discount from the then current market
price per share on the date of issuance does not exceed 5%. If, on the
payment date for any dividend, the net asset value per common share is
greater than the market value (market discount), the Plan Agent will invest
the dividend amount in common shares acquired in open-market purchases. There
are no brokerage charges with respect to newly issued common shares. However,
each participant will pay a pro rata share of brokerage trading fees incurred
with respect to the Plan Agent's open-market purchases. Participating in the
Plan does not relieve shareowners from any federal, state or local taxes
which may be due on dividends paid in any taxable year. Shareowners holding
Plan shares in a brokerage account may not be able to transfer the shares to
another broker and continue to participate in the Plan.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
manages the Trust's portfolio. Management fees payable under the Trust's
Advisory Agreement with PIM are calculated daily at the annual rate of 0.70% of
the Trust's average daily managed assets. "Managed assets" means (a) the
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 45
total assets of the Trust, including any form of investment leverage, minus (b)
all accrued liabilities incurred in the normal course of operations, which
shall not include any liabilities or obligations attributable to investment
leverage obtained through (i) indebtedness of any type (including, without
limitation, borrowing through a credit facility of the issuance of debt
securities), (ii) the issuance of preferred stock or other similar preference
securities, and/or (iii) any other means. For the six months ended May 31,
2010, the net management fee was equivalent to 0.70% of the Trust's average
daily managed assets, which was equivalent to 1.13% of the Trust's average
daily net assets attributable to the common shareowners.
In addition, under PIM's management and administration agreements, certain
other services and costs are paid by PIM and reimbursed by the Trust. At May
31, 2010, $325,998 was payable to PIM related to management costs,
administrative costs and certain other reimbursements and is included in "Due
to affiliates" on the Statement of Assets and Liabilities.
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 equal to 0.07% of the Trust's average
daily managed assets up to $500 million and 0.03% for average daily managed
assets in excess of $500 million, subject to a minimum monthly fee of $10,000.
Princeton receives no compensation directly from the Trust. Effective September
30, 2010, Princeton has notified PIM that it will resign as administrators of
the Trust.
3. Transfer Agents
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly
owned indirect subsidiary of UniCredit, through a sub-transfer agency agreement
with American Stock Transfer & Trust Company, provides substantially all
transfer agent and shareowner services related to the Trust's common shares at
negotiated rates. Deutsche Bank Trust Company Americas (Deutsche Bank) is the
transfer agent, registrar, dividend paying agent and auction agent with respect
to the Trust's Auction Market Preferred Shares (AMPS). The Trust pays Deutsche
Bank an annual fee, as is agreed to from time to time by the Trust and Deutsche
Bank, for providing such services.
In addition, the Trust reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareowner communications activities such as proxy and
statement mailings and outgoing phone calls.
46 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
4. Unfunded Loan Commitments
As of May 31, 2010, the Trust had unfunded loan commitments of $4,039,504,
(excluding net unrealized depreciation on those commitments of $220,285 as of
May 31, 2010) which could be extended at the option of the borrower, pursuant
to the following loan agreements:
Unfunded Loan
Borrower Commitment
Delphi Holdings LLP, Tranche A-1 Loan $ 32,763
Delphi Holdings LLP, Tranch A-2 Loan $ 76,447
Delphi Holdings LLP, Tranche B-1A Loan $ 331,844
Delphi Holdings LLP, Tranche B-2A Loan $ 774,303
Sirva Worldwide, Inc., Revolving Credit Loan $1,124,147
Smurfit-Stone Container Enterprises, Inc., Term Loan $1,700,000
5. 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, 2010 and year ended November 30, 2009 were as follows:
5/10 11/09
Shares outstanding at beginning of period 24,428,148 24,428,148
Reinvestment of distributions 38,335 --
---------------------------------------------------------------------------
Shares outstanding at end of period 24,466,483 24,428,148
---------------------------------------------------------------------------
The Trust may classify or reclassify any unissued shares of beneficial interest
into one or more series of preferred shares of beneficial interest. As of May
31, 2010, there were 7,298 AMPS as follows: Series M7-2,434, Series W7-2,432
and Series TH7-2,432.
Dividends on Series M7, Series W7 and Series TH7 are cumulative at a rate which
is to be reset every seven days based on the results of an auction. An auction
fails if there are more AMPS offered for sale than there are buyers. When an
auction fails, the dividend rate for the period will be the maximum rate on the
auction dates described in the prospectus for the AMPS. Preferred shareowners
will not be able to sell their AMPS at an auction if the auction fails. Since
February 2008, the Trust's auctions related to the AMPS have failed. The
maximum rate for each series is the greater of 125% of the one week LIBOR rate
or the LIBOR rate plus a spread of 1.25%. Dividend rates on AMPS ranged from
1.456% to 1.583% during the six months ended May 31, 2010.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 47
The Trust may not declare dividends or make other distributions on its common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, the Trust does not comply with the asset coverage
ratios described in the prospectus for the AMPS.
The AMPS are redeemable at the option of the Trust, in whole or in part, on any
dividend payment date at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared. The AMPS are also subject to mandatory
redemption at $25,000 per share plus any accumulated or unpaid dividends,
whether or not declared, if certain requirements relating to the composition of
the assets and liabilities of the Trust as set forth in the Statement of
Preferences are not satisfied.
The holders of AMPS have voting rights equal to the holders of the Trust's
common shares (one vote per share) and will vote together with holders of the
common shares as a single class. Holders of AMPS are also entitled to elect two
of the Trust's Trustees. In addition, the Investment Company Act of 1940, as
amended, requires that along with approval by shareowners that might otherwise
be required, the approval of the holders of a majority of any outstanding
preferred shares, voting separately as a class, would be required to (a) adopt
any plan of reorganization that would adversely affect the preferred shares and
(b) take any action requiring a vote of security holders, including, among
other things, changes in the Trust's subclassification as a closed-end
investment company or changes in its fundamental investment restrictions.
6. Pending Litigation
The Trust is currently involved in a litigation matter relating to a Trust
investment. The Trust believes the claim is without merit and is defending it
vigorously. At May 31, 2010, it is reasonably possible that an adverse outcome
may result. Currently, the amount of any judgment cannot be reasonably
estimated.
7. Subsequent Events
Subsequent to May 31, 2010, the Board of Trustees of the Trust declared a
dividend from undistributed net investment income of $0.0725 per common share
payable June 30, 2010 to common shareowners of record on June 15, 2010.
Subsequent to May 31, 2010, dividends declared and paid on preferred shares
totaled $354,482 in aggregate for the three outstanding preferred share series
through July 22, 2010.
In preparing these financials statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure, and has
determined that other than disclosed above, there were no subsequent events
requiring recognition or disclosure in the financials statements.
48 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
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 have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust which has not been
approved by the shareowners. There have been no changes in the principle risk
factors associated with investment in the Trust.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Trust may purchase, from time to
time, its common shares in the open market.
ADDITIONAL INFORMATION REGARDING THE TRUST'S INVESTMENT POLICIES
Event-Linked Bonds
The Trust may invest in "event-linked" bonds, which sometimes are referred to
as "insurance-linked" or "catastrophe" bonds. Event-linked bonds are debt
obligations for which the return of principal and the payment of interest are
contingent on the non-occurrence of a pre-defined "trigger" event, such as a
hurricane or an earthquake of a specific magnitude. For some event-linked
bonds, the trigger event's magnitude may be based on losses to a company or
industry, industry indexes or readings of scientific instruments rather than
specified actual losses. If a trigger event, as defined within the terms of an
event-linked bond, involves losses or other metrics exceeding a specific
magnitude in the geographic region and time period specified therein, the Trust
may lose a portion or all of its accrued interest and/or principal invested in
such event-linked bond. The Trust is entitled to receive principal and interest
payments so long as no trigger event occurs of the description and magnitude
specified by the instrument. Event-linked bonds may be issued by government
agencies, insurance companies, reinsurers, special purpose corporations or
other on-shore or off-shore entities. With respect to limitations on investment
outside of the U.S., the Trust will consider the region associated with the
event-linked risks as opposed to the off-shore domicile of any special purpose
issuer. In addition to the specified trigger events, event-linked bonds may
also expose the Trust to other risks, including but not limited to issuer
(credit) default, adverse regulatory or jurisdictional interpretations and
adverse tax consequences.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 49
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
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Legal Counsel
Bingham McCutchen LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Shareowner Services and Sub-Transfer Agent
American Stock Transfer & Trust Company
Preferred Share Auction/Transfer Agent and Registrar
Deutsche Bank Trust Company Americas
Sub-Administrator
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.
50 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
This page for your notes.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/10 51
This page for your notes.
52 Pioneer Floating Rate Trust | Semiannual Report | 5/31/10
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
website at 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.
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, 2010
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, 2010
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date July 30, 2010
* Print the name and title of each signing officer under his or her signature.