Terrence J. Cullen, Amundi Pioneer Asset Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer High
Income Trust
Semiannual Report | September 30, 2019
Ticker Symbol: PHT
Beginning in March 2021, as permitted by regulations adopted by the Securities
and Exchange Commission, paper copies of the Trust's shareholder reports like
this one will no longer be sent by mail, unless you specifically request paper
copies of the reports from the Trust or from your financial intermediary, such
as a broker-dealer, bank or insurance company. Instead, the reports will be
made available on the Trust's website, and you will be notified by mail each
time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. You may elect
to receive shareholder reports and other communications electronically by
contacting your financial intermediary or, if you invest directly with the
Trust, by calling 1-800-710-0935.
You may elect to receive all future reports in paper free of charge. If you
invest directly with the Trust, you can inform the Trust that you wish to
continue receiving paper copies of your shareholder reports by calling
1-800-710-0935. If you invest through a financial intermediary, you can contact
your financial intermediary to request that you continue to receive paper
copies of your shareholder reports. Your election to receive reports in paper
will apply to all funds held in your account if you invest through your
financial intermediary or all funds held within the Pioneer Fund complex if you
invest directly.
[LOGO] Amundi Pioneer
ASSET MANAGEMENT
visit us: www.amundipioneer.com/us
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Schedule of Investments 13
Financial Statements 38
Notes to Financial Statements 44
Approval of Investment Management Agreement 63
Trustees, Officers and Service Providers 68
|
Pioneer High Income Trust | Semiannual Report | 9/30/19 1
President's Letter
Since 1928, active portfolio management based on in-depth, fundamental
research, has been the foundation of Amundi Pioneer's investment approach. We
believe an active management investment strategy is a prudent approach to
investing, especially during periods of market volatility, which can result
from any number of risk factors, including slow U.S. economic growth, rising
interest rates, and geopolitical factors. Of course, in today's global economy,
risk factors extend well beyond U.S. borders. In fact, it's not unusual for
political and economic issues on the international front to cause or contribute
to volatility in U.S. markets.
At Amundi Pioneer, each security under consideration is researched by our team
of experienced investment professionals, who communicate directly with the
management teams of those companies. At the end of this research process, if we
have conviction in a company's business model and management team, and regard
the security as a potentially solid investment opportunity, an Amundi Pioneer
portfolio manager makes an active decision to invest in that security. The
portfolio resulting from these decisions represents an expression of his or her
convictions, and strives to balance overall risk and return opportunity.
As an example, the Standard & Poor's 500 Index -- the predominant benchmark for
many U.S. Large-Cap Core Equity funds -- has 500 stocks. An Amundi Pioneer
portfolio manager chooses to invest in only those companies that he or she
believes can offer the most attractive opportunities to pursue the fund's
investment objective, thus potentially benefiting the fund's shareowners. This
process results in a portfolio that does not own all 500 stocks, but a much
narrower universe.
The same active decision to invest in a company is also applied when we decide
to sell a security, due to changing fundamentals, valuation concerns, or market
risks. We apply this active decision-making across all of our equity,
fixed-income, and global portfolios.
Today, as investors, we have many options. It is our view that active
management can serve shareholders well, not only when markets are thriving, but
also during periods of market volatility and uncertainty, thus making it a
compelling investment choice. As you consider the many choices today, we
encourage you to work with your financial advisor to develop an overall
investment plan that addresses both your short- and long-term goals, and to
implement such a plan in a disciplined manner.
2 Pioneer High Income Trust | Semiannual Report | 9/30/19
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
September 30, 2019
|
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer High Income Trust | Semiannual Report | 9/30/19 3
Portfolio Management Discussion | 9/30/19
In the following interview, Andrew Feltus discusses the factors that affected
the performance of Pioneer High Income Trust during the six-month period ended
September 30, 2019. Mr. Feltus, Co-Director of High Yield and a portfolio
manager at Amundi Pioneer Asset Management (Amundi Pioneer), is responsible for
the day-to-day management of the Trust, along with Matthew Shulkin, a vice
president and a portfolio manager at Amundi Pioneer, and Kenneth Monaghan,
Co-Director of High Yield and a portfolio manager at Amundi Pioneer*.
Q How did the Trust perform during the six-month period ended September 30,
2019?
A Pioneer High Income Trust returned 5.22% at net asset value (NAV) and
7.64% at market price during the six-month period ended September 30,
2019. During the same six-month period, the Trust's benchmark, the ICE
Bank of America Merrill Lynch U.S. High Yield Index (the ICE BofA ML
Index), returned 6.30% at NAV. The ICE BofA ML Index is an unmanaged,
commonly accepted measure of the performance of high-yield securities.
Unlike the Trust, the ICE BofA ML Index does not use leverage. While the
use of leverage increases investment opportunity, it also increases
investment risk.
During the same six-month period, the average return at NAV of the 39
closed end funds in Morningstar's High Yield Bond Closed End Funds
category (which may or may not be leveraged) was 5.04%, and the average
return (at market price) of the 39 closed end funds in the same
Morningstar category was 10.55%.
The shares of the Trust were selling at a 7.6% discount to NAV at the end
of the six-month period. Comparatively, the shares of the Trust were
selling at a 9.7% discount to NAV on March 31, 2019.
On September 30, 2019, the standardized 30-day SEC yield of the Trust's
shares was 7.64%**.
* Mr. Monaghan became a portfolio manager on the Trust effective September
30, 2019.
** The 30-day SEC yield is a standardized formula that is based on the
hypothetical annualized earning power (investment income only) of the
Trust's portfolio securities during the period indicated.
4 Pioneer High Income Trust | Semiannual Report | 9/30/19
Q How would you describe the investment environment for high-yield debt
during the six-month period ended September 30, 2019?
A Outside of the energy sector, market sentiment with respect to high-yield
corporate credit was generally firm during the six-month period, supported
by positive corporate earnings reports and an accommodative U.S. Federal
Reserve System (Fed). Against a backdrop of slowing economic growth and
low inflation, the Fed cut short-term interest rates by a quarter point on
both August 1 and September 19, 2019. The September rate cut brought the
benchmark federal funds target rate down to a range of 1.75% to 2.00%, and
market expectations were that the Fed would enact two or three more
interest-rate cuts by the middle of 2020.
Over the six-month period, the Treasury yield curve moved lower on the
Fed's easing of monetary policy and a "flight to safety" by investors
spurred primarily by geopolitical headlines, including those pertaining to
the U.S.-China trade dispute, the ongoing Brexit negotiations in the
United Kingdom, and a September attack on Saudi Arabian oil facilities.
For the six-month period ended September 30, 2019, the yield on the
benchmark 10-year Treasury note declined from 2.41% to 1.68%, touching a
low of 1.47% in early September, while the two-year Treasury yield
declined from 2.27% to 1.63%. August and September of 2019 saw periods
when the yield curve inverted, meaning that along some portion of the
curve, yields for securities with longer maturities were lower than yields
on securities with shorter maturities. The historical perception of an
inverted yield curve is that it foreshadows a recession, and so that
development only served to increase uncertainty in the credit markets,
including high yield, over the latter part of the period.
Returns for high-yield corporate bonds, while positive, lagged the
performance of their more interest-rate-sensitive investment-grade
counterparts over the six-month period. A weak backdrop for oil prices was
a factor in dampened high-yield returns, given the significant
representation of energy issuers within the Trust's benchmark, the ICE
BofA ML Index. Within the high-yield market, lower-rated issues generally
lagged higher-rated credits. For example, CCC-rated debt underperformed
BB-rated issues over the six-month period.
Pioneer High Income Trust | Semiannual Report | 9/30/19 5
Q What factors affected the Trust's performance relative to the benchmark
Index during the six-month period ended September 30, 2019?
A In broad terms, the Trust's approximate 10% underweight to higher-quality
issues in the BB-rated range of the high-yield market acted as a slight
constraint on benchmark-relative results, as that segment of the market
led performance for the six-month period. The Trust's below-benchmark
stance with respect to overall portfolio duration also weighed modestly on
benchmark-relative returns as interest rates declined over the period.
(Duration is a measure of the sensitivity of the price, or the value of
principal, of a fixed-income investment to a change in interest rates,
expressed as a number of years.)
An out-of-benchmark portfolio allocation to insurance-linked securities
(ILS), which are issued by property-and-casualty insurers to help defray
some of the cost of having to payout claims in the wake of a natural
disaster, also detracted from the Trust's benchmark-relative performance
as seasonal factors weighed on the asset class. We continue to view
exposure to ILS as helping to bolster the income and risk-reward profile
of the portfolio over the long term. Another out-of-benchmark position in
floating-rate bank loans did not have a material impact on the Trust's
benchmark-relative returns.
With regard to individual positions that detracted from the Trust's
benchmark-relative returns over the six-month period, within
telecommunications, the portfolio's exposures to the debt of Windstream
and Frontier Communications acted as drags on performance. Windstream's
default after the company lost a court case related to a spinoff of assets
negatively affected the wireline segment. In addition, Frontier has been
evaluating a restructuring of its debt, raising market concerns and
exerting downward pressure on the price of the bonds. However, we feel the
current bond price represents a significant overstatement of the negative
case for Frontier, and so we have maintained the Trust's position. The
Trust's exposure to Syncreon also detracted from benchmark-relative
returns, as the supply-chain-logistics firm restructured its debt.
On the positive side, security selection results within the Trust's
allocation to high-yield corporates aided benchmark-relative performance
for the six-month period. In that vein, while a modest portfolio
overweight to energy issues detracted from the Trust's relative returns,
positive security selection results within that market segment offset the
negative effects of the overweight. In particular, our preference for the
debt of midstream pipeline companies, which have tended to be less
susceptible to short-term changes in the price of oil than other energy
firms, and our avoidance of the debt of oil services companies,
contributed positively to the Trust's benchmark-relative performance.
6 Pioneer High Income Trust | Semiannual Report | 9/30/19
At the individual security level, the leading positive contributors to the
Trust's benchmark-relative results within energy included positions in
American Midstream and ArchRock, along with exploration & production
company Indigo. Outside of energy, positive contributions to the Trust's
benchmark-relative performance among individual portfolio holdings were
led by bank names in the convertible contingent space. The so-called
"CoCo" bonds generally carry ratings in the upper range of the high-yield
universe and convert to equity if a bank issuer's capital ratio falls
below a predetermined level.
Q Did the Trust's yield, or distributions*** to shareholders change during
the six-month period ended September 30, 2019?
A The Trust's distributions remained stable over the six-month period, based
on management's assessment of a sustainable level of income generation.
Q How did the level of leverage in the Trust change during the six-month
period ended September 30, 2019?
A The Trust employs leverage through a credit agreement.
As of September 30, 2019, 30.0% of the Trust's total managed assets were
financed by leverage, or borrowed funds, compared with 30.2% of the
Trust's total managed assets financed by leverage at the start of the
six-month period on April 1, 2019. The absolute amount of funds borrowed
by the Trust did not change. The slight change in the percentage of the
Trust's total managed assets financed by leverage during the six-month
period was the result of an increase in value of the Trust's total
managed assets.
Q Did the Trust have any investments in derivative securities during the
six-month period ended September 30, 2019? If so, did the investments have
a material effect on the Trust's performance?
A Yes, the Trust had investments in forward foreign currency transactions
during the six-month period, which had a slight positive impact on
benchmark-relative performance. The portfolio also had positions in
credit-default swaps and credit-default swap index (CDX) securities. The
CDX positions contributed positively to performance during the period.
Q What is your investment outlook?
A Based on historical averages, high-yield valuations are relatively rich.
While we do not view current valuations as extreme given our expectations
for a continued low default rate and a strong technical market backdrop,
we have a somewhat cautious stance on adding credit risk to the Trust's
portfolio. If spreads widen due to market volatility not rooted in real
economic
*** Distributions are not guaranteed.
Pioneer High Income Trust | Semiannual Report | 9/30/19 7
weakness, we may consider increasing the portfolio's credit exposure.
(Credit spreads are commonly defined as the differences in yield between
Treasuries and other types of fixed-income securities with similar
maturities.)
We believe the greatest threat to high-yield returns is a recession that
increases economic stress on leveraged issuers, which could lead to a
spike in defaults, but that is not our base scenario, which calls for
slow, but steady economic growth over the next several quarters. For the
moment, the risks to economic growth from an uncontrolled trade war seem
to have receded. Observers who anticipate a near-term recession frequently
note that expansions do not last forever. From our perspective, however,
we are less concerned with the age of the expansion than with the
potential spreading of global manufacturing weakness into the broader U.S.
economy. The length of an economic expansion is unpredictable, and many
analysts have for years claimed that we are "in the 9th inning" of the
current expansion.
We expect to see increased performance dispersion among individual issuers
in the high-yield asset class, meaning that security selection will matter
more than risk positioning. While the Fed's moves to lower interest rates
will be supportive of economic growth, we do not expect growth to be fast
enough to bail out all high-yield credits. Thus, we believe seeking to
identify sustainable businesses with reasonable balance sheets and good
free cash flows is the key to picking good credits in this environment;
and, more importantly, to minimizing the effects of weak credits on the
portfolio.
Please refer to the Schedule of Investments on pages 13-36 for a full listing
of Trust securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
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.
8 Pioneer High Income Trust | Semiannual Report | 9/30/19
The Fund may invest in insurance-linked securities. The return of principal and
the payment of interest and/or dividends on insurance linked securities are
contingent on the non-occurrence of a pre-defined "trigger" event, such as a
hurricane or an earthquake of a specific magnitude.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political
conditions.
When interest rates rise, the prices of fixed-income securities held by the
Trust will generally fall. Conversely, when interest rates fall the prices of
fixed-income securities held by the Trust will generally rise.
Investments in the Trust are subject to possible loss due to the financial
failure of the issuers of the underlying securities and their inability to meet
their debt obligations.
The Trust may invest up to 50% of its total assets in illiquid securities.
Illiquid securities may be difficult to dispose of at a price reflective of
their value at the times when the Trust believes it is desirable to do so, and
the market price of illiquid securities is generally more volatile than that of
more liquid securities. Illiquid securities are also more difficult to value
and investment of the Trust's assets in illiquid securities may restrict the
Trust's ability to take advantage of market opportunities.
The Trust employs leverage through a credit agreement. Leverage creates
significant risks, including the risk that the Trust's incremental income or
capital appreciation for investments purchased with the proceeds of leverage
will not be sufficient to cover the cost of leverage, which may adversely
affect the return for shareowners.
The Trust is required to meet certain regulatory and other asset coverage
requirements in connection with its use of leverage. In order to maintain
required asset coverage levels, the Trust may be required to reduce the amount
of leverage employed by the Trust, alter the composition of its investment
portfolio or take other actions at what might be inopportune times in the
market. Such actions could reduce the net earnings or returns to shareowners
over time, which is likely to result in a decrease in the market value of the
Trust's shares.
These risks may increase share price volatility.
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer High Income Trust | Semiannual Report | 9/30/19 9
Portfolio Summary | 9/30/19
Portfolio Diversification
(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Corporate Bonds 83.3%
Senior Secured Floating Rate Loan Interests 3.5%
Convertible Corporate Bonds 2.6%
Insurance-Linked Securities 2.5%
U.S. Government and Agency Obligations 2.2%
Preferred Stocks 1.7%
Collateralized Mortgage Obligation 1.5%
Foreign Government Bonds 1.3%
Convertible Preferred Stocks 0.6%
Commercial Mortgage-Backed Securities 0.5%
Asset Backed Securities 0.2%
Common Stocks 0.1%
Rights/Warrants 0.0%+
Over The Counter (OTC) Currency Put Options Purchased 0.0%+
|
+ Amount rounds to less than 0.1%.
10 Largest Holdings
(As a percentage of total investments)*
1. U.S. Treasury Bills, 10/15/19 2.25%
-----------------------------------------------------------------------------------------------------
2. Hanover Insurance Group, Inc., 7.625%, 10/15/25 1.60
-----------------------------------------------------------------------------------------------------
3. Liberty Mutual Group, Inc., 10.75% (3 Month USD LIBOR + 712 bps), 6/15/58 (144A) 1.23
-----------------------------------------------------------------------------------------------------
4. Meritor, Inc., 7.875%, 3/1/26 1.10
-----------------------------------------------------------------------------------------------------
5. Fixed Income Trust Series 2013-A, 7.697%, 10/15/97 (144A) 1.10
-----------------------------------------------------------------------------------------------------
6. LYB Finance Co. BV, 8.1%, 3/15/27 (144A) 1.03
-----------------------------------------------------------------------------------------------------
7. Hercules LLC, 6.5%, 6/30/29 0.98
-----------------------------------------------------------------------------------------------------
8. Cardtronics, Inc./Cardtronics USA, Inc., 5.5%, 5/1/25 (144A) 0.95
-----------------------------------------------------------------------------------------------------
9. Enterprise Development Authority, 12.0%, 7/15/24 (144A) 0.90
-----------------------------------------------------------------------------------------------------
10. CenturyLink, Inc., 5.625%, 4/1/25 0.89
-----------------------------------------------------------------------------------------------------
|
* Excludes temporary cash investments and all derivative contracts except
for options purchased. The Trust is actively managed, and current holdings
may be different. The holdings listed should not be considered
recommendations to buy or sell any securities.
10 Pioneer High Income Trust | Semiannual Report | 9/30/19
Prices and Distributions | 9/30/19
Market Value per Share^
--------------------------------------------------------------------------------
9/30/19 3/31/19
--------------------------------------------------------------------------------
Market Value $9.22 $8.95
--------------------------------------------------------------------------------
Discount (7.6)% (9.7)%
--------------------------------------------------------------------------------
|
Net Asset Value per Share^
--------------------------------------------------------------------------------
9/30/19 3/31/19
--------------------------------------------------------------------------------
Net Asset Value $9.98 $9.91
--------------------------------------------------------------------------------
|
Distributions per Share:* 4/1/19 - 9/30/19
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
$0.4050 $ -- $ --
--------------------------------------------------------------------------------
|
* The amount of distributions made to shareowners during the period was in
excess of the net investment income earned by the Trust during the period.
Yields
--------------------------------------------------------------------------------
9/30/19 3/31/19
--------------------------------------------------------------------------------
30-Day SEC Yield 7.64% 8.15%
--------------------------------------------------------------------------------
|
The data shown above represents past performance, which is no guarantee of
future results.
^ Net asset value and market value are published in Barron's on Saturday,
The Wall Street Journal on Monday and The New York Times on Monday and
Saturday. Net asset value and market value are published daily on the
Trust's website at www.amundipioneer.com/us.
Pioneer High Income Trust | Semiannual Report | 9/30/19 11
Performance Update | 9/30/19
Investment Returns
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 High Income Trust during the periods shown, compared
to that of the ICE BofA ML U.S. High Yield Index.
Average Annual Total Returns
(As of September 30, 2019)
-----------------------------------------------------
Net ICE BofA
Asset ML U.S.
Value Market High Yield
Period (NAV) Price Index
-----------------------------------------------------
10 years 8.74% 6.46% 7.85%
5 years 3.86 -2.45 5.36
1 year 5.78 8.91 6.30
-----------------------------------------------------
|
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High ICE BofA ML U.S.
Income Trust High Yield Index
9/09 $10,000 $10,000
9/10 $12,830 $11,852
9/11 $13,053 $12,008
9/12 $15,894 $14,282
9/13 $17,941 $15,295
9/14 $19,124 $16,401
9/15 $16,713 $15,817
9/16 $18,650 $17,844
9/17 $21,174 $19,460
9/18 $21,848 $20,032
9/19 $23,110 $21,294
|
Call 1-800-225-6292 or visit www.amundipioneer.com/us for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV, due to such factors as interest rate
changes and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Shares of closed-end funds, unlike open-end funds, are not continuously
offered. There is a one-time public offering and, once issued, shares of
closed-end funds are bought and sold in the open market through a stock
exchange and frequently trade at prices lower than their NAV. NAV per common
share is total assets less total liabilities, which include preferred shares or
borrowings, as applicable, divided by the number of common shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends
are assumed to be reinvested at prices obtained through open-market purchases
under the Trust's dividend reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the sale of Trust shares.
Had these fees and taxes been reflected, performance would have been lower.
The ICE Bank of America Merrill Lynch U.S. High Yield Index is an unmanaged,
commonly accepted measure of the performance of high yield securities. Index
returns are calculated monthly, assume reinvestment of dividends and, unlike
Trust returns, do not reflect any fees, expenses or sales charges. The Index
does not employ leverage. It is not possible to invest directly in the Index.
12 Pioneer High Income Trust | Semiannual Report | 9/30/19
Schedule of Investments | 9/30/19 (unaudited)
---------------------------------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 142.3%
COMMON STOCKS -- 0.2% of Net Assets
Construction & Engineering -- 0.0%+
1,307,384(a) Abengoa SA, Class B $ 14,680
-------------
Total Construction & Engineering $ 14,680
---------------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.0%+
244,563^(a) Medical Card System, Inc. $ 2,446
-------------
Total Health Care Technology $ 2,446
---------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.1%
65,597^(a) PetroQuest Energy, Inc. $ 254,188
-------------
Total Oil, Gas & Consumable Fuels $ 254,188
---------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.0%+
19,026(a) Teva Pharmaceutical Industries, Ltd. (A.D.R.) $ 130,899
-------------
Total Pharmaceuticals $ 130,899
---------------------------------------------------------------------------------------------------------------
Specialty Retail -- 0.1%
68,241^(a) Targus Cayman SubCo., Ltd. $ 81,206
-------------
Total Specialty Retail $ 81,206
---------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,475,727) $ 483,419
---------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK -- 0.8%
of Net Assets
Banks -- 0.8%
1,600(b) Wells Fargo & Co., 7.5% $ 2,435,984
-------------
Total Banks $ 2,435,984
---------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $2,022,424) $ 2,435,984
---------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 2.3% of Net Assets
Banks -- 1.2%
132,750(c) GMAC Capital Trust I, 7.943% (3 Month USD LIBOR +
579 bps), 2/15/40 $ 3,479,378
-------------
Total Banks $ 3,479,378
---------------------------------------------------------------------------------------------------------------
Chemicals -- 0.0%+
1,062,203^(a) Pinnacle Agriculture $ 10,622
-------------
Total Chemicals $ 10,622
---------------------------------------------------------------------------------------------------------------
Diversified Financial Services -- 1.1%
3,000(b)(c) Compeer Financial ACA, 6.75% (USD LIBOR +
458 bps) (144A) $ 3,120,000
-------------
Total Diversified Financial Services $ 3,120,000
---------------------------------------------------------------------------------------------------------------
Internet -- 0.0%+
152,183(a) MYT Holding Co., 10.0%, 6/7/29 (144A) $ 141,530
-------------
Total Internet $ 141,530
---------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $7,478,947) $ 6,751,530
---------------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 13
Schedule of Investments | 9/30/19 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 0.2%
of Net Assets
660,000(c) GMAT Trust, Series 2013-1A, Class M, 5.0%,
11/25/43 (144A) $ 403,280
300,000 InSite Issuer LLC, Series 2016-1A, Class C, 6.414%,
11/15/46 (144A) 312,619
---------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $939,256) $ 715,899
---------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS --
2.1% of Net Assets
790,000(d) Fannie Mae Connecticut Avenue Securities, Series
2019-R04, Class 2B1, 7.268% (1 Month USD LIBOR +
525 bps), 6/25/39 (144A) $ 862,003
1,996,688(c) FREMF Mortgage Trust, Series 2019-KJ24, Class B, 7.6%,
10/25/27 (144A) 1,889,010
1,500,000(d) FREMF Mortgage Trust, Series 2019-KS12, Class C,
7.409% (1 Month USD LIBOR + 690 bps), 8/25/29 1,421,345
2,500,000 Wells Fargo Commercial Mortgage Trust, Series 2015-C28,
Class E, 3.0%, 5/15/48 (144A) 1,797,503
---------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $5,983,599) $ 5,969,861
---------------------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED SECURITIES --
0.7% of Net Assets
710,000(d) Freddie Mac Stacr Trust, Series 2019-HQA1, Class B2,
14.268% (1 Month USD LIBOR +
1,225 bps), 2/25/49 (144A) $ 944,659
530,000(d) Freddie Mac Stacr Trust, Series 2019-HQA2, Class B2,
13.268% (1 Month USD LIBOR +
1,125 bps), 4/25/49 (144A) 636,052
500,000(c) Morgan Stanley Bank of America Merrill Lynch Trust,
Series 2014-C17, Class D, 4.903%, 8/15/47 (144A) 488,665
---------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES
(Cost $1,692,801) $ 2,069,376
---------------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 3.7%
of Net Assets
Auto Parts & Equipment -- 1.6%
2,625,000 Meritor, Inc., 7.875%, 3/1/26 $ 4,494,084
-------------
Total Auto Parts & Equipment $ 4,494,084
---------------------------------------------------------------------------------------------------------------
Banks -- 0.0%+
IDR 1,422,679,000^ PT Bakrie & Brothers Tbk, 0.0%, 12/22/22 $ 10,023
-------------
Total Banks $ 10,023
---------------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
14 Pioneer High Income Trust | Semiannual Report | 9/30/19
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Biotechnology -- 0.7%
1,772,000 Medicines Co., 2.75%, 7/15/23 $ 2,135,260
-------------
Total Biotechnology $ 2,135,260
---------------------------------------------------------------------------------------------------------------
Chemicals -- 1.4%
4,000,000(e) Hercules LLC, 6.5%, 6/30/29 $ 4,020,000
-------------
Total Chemicals $ 4,020,000
---------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $6,809,530) $ 10,659,367
---------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 116.9% of Net Assets
Advertising -- 1.1%
3,460,000 MDC Partners, Inc., 6.5%, 5/1/24 (144A) $ 3,152,925
-------------
Total Advertising $ 3,152,925
---------------------------------------------------------------------------------------------------------------
Aerospace & Defense -- 1.4%
837,000 Bombardier, Inc., 7.5%, 3/15/25 (144A) $ 835,954
1,921,000 Bombardier, Inc., 7.875%, 4/15/27 (144A) 1,913,028
421,000 F-Brasile S.p.A./F-Brasile US LLC, 7.375%,
8/15/26 (144A) 437,840
745,000 Kratos Defense & Security Solutions, Inc., 6.5%,
11/30/25 (144A) 795,288
-------------
Total Aerospace & Defense $ 3,982,110
---------------------------------------------------------------------------------------------------------------
Agriculture -- 0.1%
1,037,796 Pinnacle Operating Corp., 9.0%, 5/15/23 (144A) $ 363,229
-------------
Total Agriculture $ 363,229
---------------------------------------------------------------------------------------------------------------
Auto Manufacturers -- 1.2%
1,095,000 Ford Motor Credit Co. LLC, 5.584%, 3/18/24 $ 1,164,062
2,242,000 JB Poindexter & Co., Inc., 7.125%, 4/15/26 (144A) 2,320,470
-------------
Total Auto Manufacturers $ 3,484,532
---------------------------------------------------------------------------------------------------------------
Auto Parts & Equipment -- 1.9%
2,000,000 American Axle & Manufacturing, Inc., 6.5%, 4/1/27 $ 1,905,000
600,000 Dana Financing Luxembourg S.a.r.l., 5.75%,
4/15/25 (144A) 612,510
EUR 840,000(f) IHO Verwaltungs GmbH, 3.75% (4.5% PIK or
0.0% cash), 9/15/26 (144A) 940,908
330,000 Meritor, Inc., 6.25%, 2/15/24 339,487
2,134,000 Titan International, Inc., 6.5%, 11/30/23 1,696,530
-------------
Total Auto Parts & Equipment $ 5,494,435
---------------------------------------------------------------------------------------------------------------
Banks -- 6.1%
1,200,000 Access Bank Plc, 10.5%, 10/19/21 (144A) $ 1,336,560
200,000(c) Banco Nacional de Comercio Exterior SNC, 3.8%
(5 Year CMT Index + 300 bps), 8/11/26 (144A) 202,252
|
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 15
Schedule of Investments | 9/30/19 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Banks -- (continued)
600,000(b)(c) Bank of America Corp., 6.5% (3 Month USD
LIBOR + 417 bps) $ 667,500
1,800,000(b)(c) Barclays Plc, 7.75% (5 Year USD Swap Rate + 484 bps) 1,873,206
700,000(b)(c) Credit Suisse Group AG, 7.5% (5 Year USD Swap
Rate + 460 bps) (144A) 773,500
2,205,000 Freedom Mortgage Corp., 8.125%, 11/15/24 (144A) 2,028,600
2,415,000 Freedom Mortgage Corp., 8.25%, 4/15/25 (144A) 2,215,763
1,239,000(b)(c) Goldman Sachs Capital II, 4.0% (3 Month USD
LIBOR + 77 bps) 1,045,840
675,000(b)(c) Intesa Sanpaolo S.p.A., 7.7% (5 Year USD Swap
Rate + 546 bps) (144A) 702,844
3,415,000 Provident Funding Associates LP/PFG Finance Corp.,
6.375%, 6/15/25 (144A) 3,321,088
200,000(b)(c) Royal Bank of Scotland Group Plc, 7.5% (5 Year USD
Swap Rate + 580 bps) 204,250
2,250,000(b)(c) Royal Bank of Scotland Group Plc, 8.625% (5 Year
USD Swap Rate + 760 bps) 2,409,412
980,000(b)(c) Societe Generale SA, 7.375% (5 Year USD Swap
Rate + 624 bps) (144A) 1,031,058
-------------
Total Banks $ 17,811,873
---------------------------------------------------------------------------------------------------------------
Building Materials -- 1.3%
1,167,000 Builders FirstSource, Inc., 6.75%, 6/1/27 (144A) $ 1,257,442
400,000 Griffon Corp., 5.25%, 3/1/22 403,000
1,597,000 Patrick Industries, Inc., 7.5%, 10/15/27 (144A) 1,645,070
395,000 Summit Material LLC/Summit Materials Finance Corp.,
6.5%, 3/15/27 (144A) 421,663
-------------
Total Building Materials $ 3,727,175
---------------------------------------------------------------------------------------------------------------
Chemicals -- 4.1%
210,000 Blue Cube Spinco LLC, 9.75%, 10/15/23 $ 228,900
210,000 Blue Cube Spinco LLC, 10.0%, 10/15/25 235,061
420,000 CVR Partners LP/CVR Nitrogen Finance Corp., 9.25%,
6/15/23 (144A) 437,850
1,481,000 Hexion, Inc., 7.875%, 7/15/27 (144A) 1,455,083
2,125,000 Kraton Polymers LLC/Kraton Polymers Capital Corp.,
7.0%, 4/15/25 (144A) 2,215,313
3,250,000 LYB Finance Co. BV, 8.1%, 3/15/27 (144A) 4,195,715
2,316,000 Rain CII Carbon LLC/CII Carbon Corp., 7.25%,
4/1/25 (144A) 2,211,780
909,000 Tronox, Inc., 6.5%, 4/15/26 (144A) 865,823
-------------
Total Chemicals $ 11,845,525
---------------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Trust | Semiannual Report | 9/30/19
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Coal -- 0.5%
1,679,000 SunCoke Energy Partners LP/SunCoke Energy Partners
Finance Corp., 7.5%, 6/15/25 (144A) $ 1,494,310
-------------
Total Coal $ 1,494,310
---------------------------------------------------------------------------------------------------------------
Commercial Services -- 3.6%
1,910,000 BidFair MergeRight, Inc., 7.375%, 10/15/27 (144A) $ 1,945,946
3,850,000 Cardtronics, Inc./Cardtronics USA, Inc., 5.5%,
5/1/25 (144A) 3,907,750
1,025,000 Carriage Services, Inc., 6.625%, 6/1/26 (144A) 1,050,112
1,085,000 Hertz Corp., 7.125%, 8/1/26 (144A) 1,132,469
1,340,000 Team Health Holdings, Inc., 6.375%, 2/1/25 (144A) 925,940
520,000 United Rentals North America, Inc., 6.5%, 12/15/26 566,540
862,000 Verscend Escrow Corp., 9.75%, 8/15/26 (144A) 917,918
-------------
Total Commercial Services $ 10,446,675
---------------------------------------------------------------------------------------------------------------
Computers -- 0.2%
555,000 Dell International LLC/EMC Corp., 7.125%,
6/15/24 (144A) $ 584,970
-------------
Total Computers $ 584,970
---------------------------------------------------------------------------------------------------------------
Diversified Financial Services -- 5.8%
1,240,000 Avation Capital SA, 6.5%, 5/15/21 (144A) $ 1,283,400
3,105,000 Credito Real SAB de CV SOFOM ER, 9.5%,
2/7/26 (144A) 3,578,512
3,000,000+(g) Fixed Income Trust Series 2013-A, 7.697%,
10/15/97 (144A) 4,483,628
384,000 Nationstar Mortgage Holdings, Inc., 8.125%,
7/15/23 (144A) 400,320
1,000,000 Nationstar Mortgage Holdings, Inc., 9.125%,
7/15/26 (144A) 1,065,000
353,000 Nationstar Mortgage LLC/Nationstar Capital Corp.,
6.5%, 7/1/21 353,883
2,845,000 Nationstar Mortgage LLC/Nationstar Capital Corp.,
6.5%, 6/1/22 2,845,000
735,000 Navient Corp., 6.625%, 7/26/21 771,750
1,290,000 Oxford Finance LLC/Oxford Finance Co-Issuer II, Inc.,
6.375%, 12/15/22 (144A) 1,341,600
500,000 Quicken Loans, Inc., 5.75%, 5/1/25 (144A) 515,625
160,000 Springleaf Finance Corp., 6.625%, 1/15/28 172,048
-------------
Total Diversified Financial Services $ 16,810,766
---------------------------------------------------------------------------------------------------------------
Electric -- 5.4%
3,281,000 Calpine Corp., 5.75%, 1/15/25 $ 3,338,417
825,000 Cemig Geracao e Transmissao SA, 9.25%,
12/5/24 (144A) 954,360
|
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 17
Schedule of Investments | 9/30/19 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Electric -- (continued)
1,010,000(c) Enel S.p.A., 8.75% (5 Year USD Swap Rate +
588 bps), 9/24/73 (144A) $ 1,182,962
2,915,000 NRG Energy, Inc., 6.625%, 1/15/27 3,157,965
950,000 NRG Energy, Inc., 7.25%, 5/15/26 1,040,488
1,451,854 NSG Holdings LLC/NSG Holdings, Inc., 7.75%,
12/15/25 (144A) 1,557,113
704,038 Stoneway Capital Corp., 10.0%, 3/1/27 (144A) 417,143
252,000 Talen Energy Supply LLC, 7.25%, 5/15/27 (144A) 256,108
2,986,000 Vistra Energy Corp., 8.0%, 1/15/25 (144A) 3,139,033
631,000 Vistra Operations Co. LLC, 5.625%, 2/15/27 (144A) 664,475
-------------
Total Electric $ 15,708,064
---------------------------------------------------------------------------------------------------------------
Energy-Alternate Sources -- 0.9%
2,620,000(g) TerraForm Power Operating LLC, 6.625%,
6/15/25 (144A) $ 2,761,506
-------------
Total Energy-Alternate Sources $ 2,761,506
---------------------------------------------------------------------------------------------------------------
Engineering & Construction -- 0.3%
975,000 Tutor Perini Corp., 6.875%, 5/1/25 (144A) $ 945,750
-------------
Total Engineering & Construction $ 945,750
---------------------------------------------------------------------------------------------------------------
Entertainment -- 6.6%
1,500,000 AMC Entertainment Holdings, Inc., 5.875%, 11/15/26 $ 1,361,250
1,275,000 AMC Entertainment Holdings, Inc., 6.125%, 5/15/27 1,153,875
2,250,000 Caesars Resort Collection LLC/CRC Finco, Inc., 5.25%,
10/15/25 (144A) 2,300,400
EUR 1,025,000 Cirsa Finance International S.a.r.l., 6.25%,
12/20/23 (144A) 1,187,241
854,000 Cirsa Finance International S.a.r.l., 7.875%,
12/20/23 (144A) 906,521
1,240,000 Codere Finance 2 Luxembourg SA, 7.625%,
11/1/21 (144A) 1,215,200
1,325,000 Eldorado Resorts, Inc., 6.0%, 4/1/25 1,397,875
3,369,000 Enterprise Development Authority, 12.0%,
7/15/24 (144A) 3,689,055
395,000 International Game Technology Plc, 6.25%,
1/15/27 (144A) 437,463
1,225,000 Scientific Games International, Inc., 6.25%, 9/1/20 1,228,063
2,350,000 Scientific Games International, Inc., 6.625%, 5/15/21 2,379,375
571,000 Scientific Games International, Inc., 8.25%,
3/15/26 (144A) 605,745
1,399,000 Scientific Games International, Inc., 10.0%, 12/1/22 1,454,960
-------------
Total Entertainment $ 19,317,023
---------------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Trust | Semiannual Report | 9/30/19
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Environmental Control -- 1.5%
1,691,000 Covanta Holding Corp., 6.0%, 1/1/27 $ 1,779,777
2,521,000 Tervita Corp., 7.625%, 12/1/21 (144A) 2,561,966
-------------
Total Environmental Control $ 4,341,743
---------------------------------------------------------------------------------------------------------------
Food -- 7.6%
2,250,000 Albertsons Cos. LLC/Safeway, Inc./New Albertsons
LP/Albertson's LLC, 5.75%, 3/15/25 $ 2,313,787
531,000 Albertsons Cos. LLC/Safeway, Inc./New Albertsons
LP/Albertson's LLC, 7.5%, 3/15/26 (144A) 590,737
950,000 C&S Group Enterprises LLC, 5.375%, 7/15/22 (144A) 960,687
1,412,000 FAGE International SA/FAGE USA Dairy Industry, Inc.,
5.625%, 8/15/26 (144A) 1,267,270
1,775,000 JBS USA LUX SA/JBS USA Finance, Inc., 6.75%,
2/15/28 (144A) 1,965,812
625,000 JBS USA LUX SA/JBS USA Food Co./JBS USA
Finance, Inc., 6.5%, 4/15/29 (144A) 693,738
1,196,000 MARB BondCo Plc, 6.875%, 1/19/25 (144A) 1,250,418
750,000 Marfrig Holdings Europe BV, 8.0%, 6/8/23 (144A) 779,070
1,240,000 Minerva Luxembourg SA, 6.5%, 9/20/26 (144A) 1,289,848
2,492,000 Pilgrim's Pride Corp., 5.875%, 9/30/27 (144A) 2,676,408
1,250,000 Post Holdings, Inc., 5.0%, 8/15/26 (144A) 1,296,375
2,000,000 Post Holdings, Inc., 5.625%, 1/15/28 (144A) 2,120,000
2,310,000 Simmons Foods, Inc., 5.75%, 11/1/24 (144A) 2,252,250
2,618,000 Simmons Foods, Inc., 7.75%, 1/15/24 (144A) 2,833,985
-------------
Total Food $ 22,290,385
---------------------------------------------------------------------------------------------------------------
Forest Products & Paper -- 2.2%
1,655,000 Eldorado International Finance GmbH, 8.625%,
6/16/21 (144A) $ 1,723,285
1,770,000 Mercer International, Inc., 7.375%, 1/15/25 (144A) 1,843,632
2,766,000 Schweitzer-Mauduit International, Inc., 6.875%,
10/1/26 (144A) 2,925,045
-------------
Total Forest Products & Paper $ 6,491,962
---------------------------------------------------------------------------------------------------------------
Healthcare-Products -- 0.4%
EUR 450,000 Avantor, Inc., 4.75%, 10/1/24 (144A) $ 523,484
754,000 Avantor, Inc., 6.0%, 10/1/24 (144A) 807,934
-------------
Total Healthcare-Products $ 1,331,418
---------------------------------------------------------------------------------------------------------------
Healthcare-Services -- 4.1%
2,500,000 BCPE Cycle Merger Sub II, Inc., 10.625%,
7/15/27 (144A) $ 2,412,500
1,000,000 CHS/Community Health Systems, Inc., 6.25%, 3/31/23 993,350
610,000(g) CHS/Community Health Systems, Inc., 9.875%,
6/30/23 (144A) 518,500
|
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 19
Schedule of Investments | 9/30/19 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Healthcare-Services -- (continued)
1,825,000 RegionalCare Hospital Partners Holdings, Inc., 8.25%,
5/1/23 (144A) $ 1,941,344
2,396,000 Surgery Centre Holdings, Inc., 10.0%, 4/15/27 (144A) 2,431,940
865,000 Tenet Healthcare Corp., 4.875%, 1/1/26 (144A) 887,706
720,000 Tenet Healthcare Corp., 5.125%, 11/1/27 (144A) 744,012
2,250,000 West Street Merger Sub, Inc., 6.375%, 9/1/25 (144A) 2,070,000
-------------
Total Healthcare-Services $ 11,999,352
---------------------------------------------------------------------------------------------------------------
Holding Companies-Diversified -- 0.5%
1,580,000 VistaJet Malta Finance Plc/XO Management
Holding, Inc., 10.5%, 6/1/24 (144A) $ 1,532,600
-------------
Total Holding Companies-Diversified $ 1,532,600
---------------------------------------------------------------------------------------------------------------
Home Builders -- 3.3%
475,000 Beazer Homes USA, Inc., 6.75%, 3/15/25 $ 484,500
1,155,000 Beazer Homes USA, Inc., 7.25%, 10/15/29 (144A) 1,173,769
800,000 Brookfield Residential Properties, Inc., 6.375%,
5/15/25 (144A) 816,000
735,000 Brookfield Residential Properties, Inc./Brookfield
Residential US Corp., 6.25%, 9/15/27 (144A) 738,675
1,500,000 KB Home, 7.0%, 12/15/21 1,615,950
790,000 KB Home, 7.5%, 9/15/22 886,775
1,035,000 KB Home, 7.625%, 5/15/23 1,172,137
2,000,000 Lennar Corp., 5.0%, 6/15/27 2,140,000
565,000 Taylor Morrison Communities, Inc./Taylor Morrison
Holdings II, Inc., 5.625%, 3/1/24 (144A) 604,550
-------------
Total Home Builders $ 9,632,356
---------------------------------------------------------------------------------------------------------------
Insurance -- 4.6%
5,300,000 Hanover Insurance Group, Inc., 7.625%, 10/15/25 $ 6,546,800
3,075,000(c) Liberty Mutual Group, Inc., 10.75% (3 Month USD
LIBOR + 712 bps), 6/15/58 (144A) 5,043,000
1,100,000 MetLife, Inc., 10.75%, 8/1/39 1,771,000
-------------
Total Insurance $ 13,360,800
---------------------------------------------------------------------------------------------------------------
Iron & Steel -- 0.9%
2,300,000 Commercial Metals Co., 5.375%, 7/15/27 $ 2,328,750
165,000 Commercial Metals Co., 5.75%, 4/15/26 169,125
-------------
Total Iron & Steel $ 2,497,875
---------------------------------------------------------------------------------------------------------------
Leisure Time -- 1.8%
540,000 Silversea Cruise Finance, Ltd., 7.25%, 2/1/25 (144A) $ 576,720
1,673,000 Viking Cruises, Ltd., 5.875%, 9/15/27 (144A) 1,772,711
2,790,000 Viking Cruises, Ltd., 6.25%, 5/15/25 (144A) 2,915,550
-------------
Total Leisure Time $ 5,264,981
---------------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Trust | Semiannual Report | 9/30/19
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Lodging -- 1.4%
680,000 Hilton Grand Vacations Borrower LLC/Hilton Grand
Vacations Borrower, Inc., 6.125%, 12/1/24 $ 722,500
1,700,000 MGM Resorts International, 6.0%, 3/15/23 1,872,890
1,500,000 Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
5.25%, 5/15/27 (144A) 1,541,250
-------------
Total Lodging $ 4,136,640
---------------------------------------------------------------------------------------------------------------
Media -- 4.3%
1,085,000 Altice Financing SA, 6.625%, 2/15/23 (144A) $ 1,113,481
300,000 Altice Finco SA, 8.125%, 1/15/24 (144A) 309,750
1,169,000 Altice Luxembourg SA, 10.5%, 5/15/27 (144A) 1,317,463
833,000 Clear Channel Worldwide Holdings, Inc., 9.25%,
2/15/24 (144A) 915,184
670,000 CSC Holdings LLC, 5.5%, 4/15/27 (144A) 708,451
501,000 Diamond Sports Group LLC/Diamond Sports
Finance Co., 5.375%, 8/15/26 (144A) 519,787
2,577,000 Diamond Sports Group LLC/Diamond Sports
Finance Co., 6.625%, 8/15/27 (144A) 2,673,638
535,000 Entercom Media Corp., 7.25%, 11/1/24 (144A) 553,725
1,725,000 GCI LLC, 6.875%, 4/15/25 1,815,562
1,057,000 Gray Television, Inc., 7.0%, 5/15/27 (144A) 1,161,326
265,000 Salem Media Group, Inc., 6.75%, 6/1/24 (144A) 229,225
1,265,000 Sirius XM Radio, Inc., 5.5%, 7/1/29 (144A) 1,350,388
-------------
Total Media $ 12,667,980
---------------------------------------------------------------------------------------------------------------
Metal Fabricate & Hardware -- 0.1%
253,000 Zekelman Industries, Inc., 9.875%, 6/15/23 (144A) $ 266,599
-------------
Total Metal Fabricate & Hardware $ 266,599
---------------------------------------------------------------------------------------------------------------
Mining -- 4.3%
320,000 Alcoa Nederland Holding BV, 6.125%, 5/15/28 (144A) $ 340,768
670,000 Aleris International, Inc., 10.75%, 7/15/23 (144A) 705,175
329,047(f) Boart Longyear Management Pty, Ltd., 10.0% (0.0% PIK
or 10.0% cash), 12/31/22 317,530
1,500,000 Coeur Mining, Inc., 5.875%, 6/1/24 1,500,000
375,000 First Quantum Minerals, Ltd., 6.875%, 3/1/26 (144A) 357,187
1,750,000 First Quantum Minerals, Ltd., 7.25%, 4/1/23 (144A) 1,723,750
2,420,000 Freeport-McMoRan, Inc., 3.55%, 3/1/22 2,426,050
600,000 Hudbay Minerals, Inc., 7.25%, 1/15/23 (144A) 619,500
1,236,000 Hudbay Minerals, Inc., 7.625%, 1/15/25 (144A) 1,252,995
2,275,000 Joseph T Ryerson & Son, Inc., 11.0%, 5/15/22 (144A) 2,397,281
1,000,000 Novelis Corp., 5.875%, 9/30/26 (144A) 1,048,700
-------------
Total Mining $ 12,688,936
---------------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 21
Schedule of Investments | 9/30/19 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Miscellaneous Manufacturers -- 0.1%
320,000 Koppers, Inc., 6.0%, 2/15/25 (144A) $ 320,202
-------------
Total Miscellaneous Manufacturers $ 320,202
---------------------------------------------------------------------------------------------------------------
Multi-National -- 0.3%
IDR 10,330,000,000 Inter-American Development Bank, 7.875%, 3/14/23 $ 753,519
-------------
Total Multi-National $ 753,519
---------------------------------------------------------------------------------------------------------------
Oil & Gas -- 8.5%
199,000 Ascent Resources Utica Holdings LLC/ARU Finance
Corp., 10.0%, 4/1/22 (144A) $ 198,940
1,406,000 Ensign Drilling, Inc., 9.25%, 4/15/24 (144A) 1,314,610
940,000 Extraction Oil & Gas, Inc., 7.375%, 5/15/24 (144A) 615,700
1,220,000 Great Western Petroleum LLC/Great Western Finance
Corp., 9.0%, 9/30/21 (144A) 1,061,400
1,570,000 Gulfport Energy Corp., 6.0%, 10/15/24 1,135,660
1,000,000 Gulfport Energy Corp., 6.375%, 5/15/25 710,000
3,779,000 Indigo Natural Resources LLC, 6.875%, 2/15/26 (144A) 3,405,824
300,000 MEG Energy Corp., 6.5%, 1/15/25 (144A) 306,000
294,000 MEG Energy Corp., 7.0%, 3/31/24 (144A) 283,710
1,255,000 Neptune Energy Bondco Plc, 6.625%, 5/15/25 (144A) 1,289,513
1,507,509(f) Northern Oil & Gas, Inc., 8.5% (1.0% PIK or
8.5% cash), 5/15/23 1,552,734
2,175,000 Nostrum Oil & Gas Finance BV, 8.0%, 7/25/22 (144A) 1,104,900
1,122,000 Oasis Petroleum, Inc., 6.875%, 3/15/22 1,046,265
1,350,000 PBF Holding Co. LLC/PBF Finance Corp.,
7.0%, 11/15/23 1,392,198
620,272(f) PetroQuest Energy, Inc., 10.0% (10.0% PIK or
0.0% cash), 2/15/24 502,420
280,000 Rowan Cos., Inc., 4.875%, 6/1/22 210,000
1,695,000 Shelf Drilling Holdings, Ltd., 8.25%, 2/15/25 (144A) 1,440,750
1,200,000 SM Energy Co., 5.0%, 1/15/24 1,077,000
1,785,000 Transocean, Inc., 7.25%, 11/1/25 (144A) 1,573,031
320,000 Transocean, Inc., 7.5%, 1/15/26 (144A) 284,800
2,015,000 Whiting Petroleum Corp., 5.75%, 3/15/21 1,924,385
1,125,000 Whiting Petroleum Corp., 6.625%, 1/15/26 759,375
569,000 WPX Energy, Inc., 8.25%, 8/1/23 640,125
1,000,000 YPF SA, 6.95%, 7/21/27 (144A) 763,450
ARS 15,750,000 YPF SA, 16.5%, 5/9/22 (144A) 109,389
-------------
Total Oil & Gas $ 24,702,179
---------------------------------------------------------------------------------------------------------------
Oil & Gas Services -- 3.2%
690,000 Archrock Partners LP/Archrock Partners Finance
Corp., 6.0%, 10/1/22 $ 697,762
2,583,000 Archrock Partners LP/Archrock Partners Finance Corp.,
6.875%, 4/1/27 (144A) 2,741,105
|
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Trust | Semiannual Report | 9/30/19
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Oil & Gas Services -- (continued)
1,940,000 Exterran Energy Solutions LP/EES Finance Corp.,
8.125%, 5/1/25 $ 1,932,725
2,568,000 FTS International, Inc., 6.25%, 5/1/22 2,092,920
1,550,000 KCA Deutag UK Finance Plc, 9.625%, 4/1/23 (144A) 972,625
350,000 SESI LLC, 7.75%, 9/15/24 197,750
703,000 USA Compression Partners LP/USA Compression
Finance Corp., 6.875%, 9/1/27 (144A) 725,848
-------------
Total Oil & Gas Services $ 9,360,735
---------------------------------------------------------------------------------------------------------------
Packaging & Containers -- 1.7%
EUR 400,000(f) ARD Finance SA, 6.625% (7.375% PIK or
0.0% cash), 9/15/23 $ 450,406
400,000(f) ARD Finance SA, 7.125% (7.875% PIK or
0.0% cash), 9/15/23 412,000
1,087,000 Ardagh Packaging Finance Plc/Ardagh Holdings USA,
Inc., 6.0%, 2/15/25 (144A) 1,136,567
1,770,000 Intertape Polymer Group, Inc., 7.0%, 10/15/26 (144A) 1,845,225
1,035,000 Reynolds Group Issuer, Inc./Reynolds Group Issuer
LLC/Reynolds Group Issuer Lu, 7.0%,
7/15/24 (144A) 1,072,519
-------------
Total Packaging & Containers $ 4,916,717
---------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 3.6%
1,005,000 Bausch Health Americas, Inc., 8.5%, 1/31/27 (144A) $ 1,127,912
EUR 575,000 Bausch Health Cos., Inc., 4.5%, 5/15/23 632,979
EUR 1,265,000 Bausch Health Cos., Inc., 4.5%, 5/15/23 (144A) 1,392,554
1,210,000 Bausch Health Cos., Inc., 5.875%, 5/15/23 (144A) 1,225,125
920,000 Bausch Health Cos., Inc., 7.0%, 3/15/24 (144A) 966,883
535,000 Bausch Health Cos., Inc., 7.0%, 1/15/28 (144A) 576,248
535,000 Bausch Health Cos., Inc., 7.25%, 5/30/29 (144A) 584,380
1,387,000 Endo, Dac/Endo Finance LLC/Endo Finco, Inc., 6.0%,
7/15/23 (144A) 850,717
2,540,000 Endo, Dac/Endo Finance LLC/Endo Finco, Inc., 6.0%,
2/1/25 (144A) 1,498,600
2,080,000 Teva Pharmaceutical Finance Netherlands III BV, 2.8%,
7/21/23 1,679,600
-------------
Total Pharmaceuticals $ 10,534,998
---------------------------------------------------------------------------------------------------------------
Pipelines -- 8.8%
2,975,000 American Midstream Partners LP/American Midstream
Finance Corp., 9.5%, 12/15/21 (144A) $ 2,796,500
960,000 Blue Racer Midstream LLC/Blue Racer Finance Corp.,
6.125%, 11/15/22 (144A) 965,088
645,000 Blue Racer Midstream LLC/Blue Racer Finance Corp.,
6.625%, 7/15/26 (144A) 636,937
250,000 Cheniere Corpus Christi Holdings LLC, 7.0%, 6/30/24 287,325
|
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 23
Schedule of Investments | 9/30/19 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Pipelines -- (continued)
875,000 Crestwood Midstream Partners LP/Crestwood
Midstream Finance Corp., 6.25%, 4/1/23 $ 897,969
910,000 DCP Midstream Operating LP, 5.6%, 4/1/44 850,850
1,210,000 Delek Logistics Partners LP/Delek Logistics Finance
Corp., 6.75%, 5/15/25 1,197,900
1,524,000(d) Energy Transfer Operating LP, 5.271% (3 Month USD
LIBOR + 302 bps),11/1/66 1,143,152
248,000 EnLink Midstream Partners LP, 5.05%, 4/1/45 198,400
717,000 EnLink Midstream Partners LP, 5.6%, 4/1/44 586,148
766,000 Genesis Energy LP/Genesis Energy Finance Corp.,
6.5%, 10/1/25 746,850
2,500,000 Genesis Energy LP/Genesis Energy Finance Corp.,
6.75%, 8/1/22 2,536,500
2,175,000 Global Partners LP/GLP Finance Corp., 7.0%, 6/15/23 2,240,250
421,000 Global Partners LP/GLP Finance Corp., 7.0%,
8/1/27 (144A) 433,630
1,240,000 Hess Infrastructure Partners LP/Hess Infrastructure
Partners Finance Corp., 5.625%, 2/15/26 (144A) 1,295,800
1,850,000 ONEOK, Inc., 6.875%, 9/30/28 2,299,028
1,885,000 PBF Logistics LP/PBF Logistics Finance Corp., 6.875%,
5/15/23 1,932,125
1,000,000 Targa Resources Partners LP/Targa Resources Partners
Finance Corp., 5.0%, 1/15/28 1,011,300
3,040,000 Williams Cos., Inc., 5.75%, 6/24/44 3,508,155
-------------
Total Pipelines $ 25,563,907
---------------------------------------------------------------------------------------------------------------
REITs -- 1.5%
1,363,000 MPT Operating Partnership LP/MPT Finance Corp.,
4.625%, 8/1/29 $ 1,403,890
3,001,000 Uniti Group LP/Uniti Group Finance, Inc./CSL Capital
LLC, 6.0%, 4/15/23 (144A) 2,899,716
-------------
Total REITs $ 4,303,606
---------------------------------------------------------------------------------------------------------------
Retail -- 3.3%
1,240,000 AAG FH LP/AAG FH Finco, Inc., 9.75%, 7/15/24 (144A) $ 1,153,200
1,385,000 Asbury Automotive Group, Inc., 6.0%, 12/15/24 1,433,475
1,045,000 Golden Nugget, Inc., 6.75%, 10/15/24 (144A) 1,063,287
1,890,000 Golden Nugget, Inc., 8.75%, 10/1/25 (144A) 1,970,325
1,000,000 JC Penney Corp., Inc., 5.875%, 7/1/23 (144A) 860,000
2,859,000 Michaels Stores, Inc., 8.0%, 7/15/27 (144A) 2,862,574
747,000 Neiman Marcus Group, Ltd. LLC/Neiman Marcus Group
LLC/Mariposa Borrower/NMG, 8.0%, 10/25/24 (144A) 216,630
-------------
Total Retail $ 9,559,491
---------------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Trust | Semiannual Report | 9/30/19
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Semiconductors -- 0.1%
425,000 Micron Technology, Inc., 5.5%, 2/1/25 $ 436,754
-------------
Total Semiconductors $ 436,754
---------------------------------------------------------------------------------------------------------------
Software -- 0.5%
285,000 j2 Cloud Services LLC/j2 Global Co-Obligor, Inc., 6.0%,
7/15/25 (144A) $ 300,917
1,219,000 Rackspace Hosting, Inc., 8.625%, 11/15/24 (144A) 1,121,358
-------------
Total Software $ 1,422,275
---------------------------------------------------------------------------------------------------------------
Telecommunications -- 7.3%
1,150,000 Altice France SA, 6.25%, 5/15/24 (144A) $ 1,186,800
3,500,000 CenturyLink, Inc., 5.625%, 4/1/25 3,631,250
600,000 Cincinnati Bell, Inc., 7.0%, 7/15/24 (144A) 555,000
1,075,000 Cincinnati Bell, Inc., 8.0%, 10/15/25 (144A) 940,625
645,000 CommScope Technologies LLC, 6.0%, 6/15/25 (144A) 583,725
527,000 Digicel Group One, Ltd., 8.25%, 12/30/22 (144A) 310,930
498,000 Digicel Group Two, Ltd., 8.25%, 9/30/22 (144A) 102,090
2,890,000 Frontier Communications Corp., 7.125%, 1/15/23 1,278,825
4,480,000 Frontier Communications Corp., 11.0%, 9/15/25 2,049,600
2,000,000 Hughes Satellite Systems Corp., 6.625%, 8/1/26 2,170,920
3,080,000 Sprint Corp., 7.125%, 6/15/24 3,319,624
2,150,000 Sprint Corp., 7.25%, 9/15/21 2,294,265
41,000 Sprint Corp., 7.625%, 3/1/26 45,254
385,000 Telesat Canada/Telesat LLC, 6.5%, 10/15/27 (144A) 391,256
2,410,000(h) Windstream Services LLC/Windstream Finance Corp.,
8.625%, 10/31/25 (144A) 2,452,175
-------------
Total Telecommunications $ 21,312,339
---------------------------------------------------------------------------------------------------------------
Transportation -- 0.4%
1,025,000 Navios South American Logistics, Inc./Navios Logistics
Finance US, Inc., 7.25%, 5/1/22 (144A) $ 996,813
2,000,000(h) syncreon Group BV/syncreon Global Finance US, Inc.,
8.625%, 11/1/21 (144A) 100,000
-------------
Total Transportation $ 1,096,813
---------------------------------------------------------------------------------------------------------------
Trucking & Leasing -- 0.1%
280,000 Fly Leasing, Ltd., 6.375%, 10/15/21 $ 284,900
-------------
Total Trucking & Leasing $ 284,900
---------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $333,608,008) $ 341,002,930
---------------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 25
Schedule of Investments | 9/30/19 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 1.8%
of Net Assets
Argentina -- 0.4%
2,055,000 Provincia del Chubut Argentina, 7.75%, 7/26/26 (144A) $ 1,191,900
-------------
Total Argentina $ 1,191,900
---------------------------------------------------------------------------------------------------------------
Bahrain -- 0.4%
1,055,000 Bahrain Government International Bond, 5.625%,
9/30/31 (144A) $ 1,064,181
-------------
Total Bahrain $ 1,064,181
---------------------------------------------------------------------------------------------------------------
Mexico -- 0.7%
MXN 38,420,700 Mexican Bonos, 8.0%, 12/7/23 $ 2,038,440
-------------
Total Mexico $ 2,038,440
---------------------------------------------------------------------------------------------------------------
Russia -- 0.3%
777,200(g) Russian Government International Bond, 7.5%, 3/31/30 $ 884,492
-------------
Total Russia $ 884,492
---------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $5,730,945) $ 5,179,013
---------------------------------------------------------------------------------------------------------------
INSURANCE-LINKED SECURITIES -- 3.5%
of Net Assets(i)
Catastrophe Linked Bonds -- 0.4%
Earthquakes -- California -- 0.1%
500,000(d) Ursa Re, 7.81% (3 Month U.S. Treasury Bill +
600 bps), 5/27/20 (144A) $ 496,600
---------------------------------------------------------------------------------------------------------------
Flood -- U.S. -- 0.1%
250,000(d) FloodSmart Re, 13.06% (3 Month U.S. Treasury Bill +
1,125 bps), 8/6/21 (144A) $ 249,750
---------------------------------------------------------------------------------------------------------------
Multiperil -- U.S. -- 0.2%
250,000(d) Kilimanjaro Re, 8.565% (3 Month U.S. Treasury Bill +
675 bps), 12/6/19 (144A) $ 248,775
250,000(d) Kilimanjaro Re, 11.065% (3 Month U.S. Treasury Bill +
925 bps), 12/6/19 (144A) 248,675
-------------
$ 497,450
-------------
Total Catastrophe Linked Bonds $ 1,243,800
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
Face
Amount
USD ($)
---------------------------------------------------------------------------------------------------------------
Collateralized Reinsurance -- 0.8%
Multiperil -- U.S. -- 0.2%
500,000+(a)(j) Dingle Re 2019, 2/1/20 $ 501,150
---------------------------------------------------------------------------------------------------------------
Multiperil -- U.S. Regional -- 0.1%
250,000+(a)(j) Ocean View Re 2019, 6/30/20 $ 244,548
---------------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Trust | Semiannual Report | 9/30/19
---------------------------------------------------------------------------------------------------------------
Face
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Multiperil -- Worldwide -- 0.5%
500,000+(a)(j) Cypress Re 2017, 1/10/20 $ 9,100
324,897+(j) Gloucester Re 2018, 1/15/20 141,330
125,000+(a)(j) Gloucester Re 2019, 1/31/20 123,682
307,363+(j) Kilarney Re 2018, 4/15/20 155,157
12,000+(j) Limestone Re 2016-1, 8/31/21 14,540
12,000+(j) Limestone Re 2016-1, 8/31/21 14,540
485,000+(a)(j) Limestone Re 2019-2, 3/1/23 (144A) 497,222
277,770+(j) Oyster Bay Re 2018, 1/15/20 252,104
400,000+(a)(j) Resilience Re, 4/6/20 40
300,000+(a)(j) Wentworth Re 2019-1, 12/31/22 294,133
-------------
$ 1,501,848
-------------
Total Collateralized Reinsurance $ 2,247,546
---------------------------------------------------------------------------------------------------------------
Reinsurance Sidecars -- 2.3%
Multiperil -- U.S. -- 0.4%
700,000+(a)(j) Carnoustie Re 2015, 7/31/20 $ 2,240
700,000+(a)(j) Carnoustie Re 2016, 11/30/20 18,900
1,000,000+(a)(j) Carnoustie Re 2017, 11/30/21 254,200
500,000+(a)(k) Harambee Re 2018, 12/31/21 57,500
600,000+(a)(k) Harambee Re 2019, 12/31/22 636,300
250,001+(a)(j) Sector Re V, Series 7, Class G, 3/1/22 (144A) 208,783
-------------
$ 1,177,923
---------------------------------------------------------------------------------------------------------------
Multiperil -- Worldwide -- 1.9%
250,000+(a)(j) Alturas Re 2019-2, 3/10/22 $ 267,350
250,000+(a)(j) Alturas Re 2019-3, 9/12/23 265,125
500,000+(a)(j) Arlington Re 2015, 2/1/20 24,300
1,167,977+(j) Berwick Re 2018-1, 12/31/21 186,526
834,446+(a)(j) Berwick Re 2019-1, 12/31/22 896,993
15,000+(a)(j) Limestone Re 2018, 3/1/22 60,957
500,000+(a)(k) Lorenz Re 2018, 7/1/21 104,950
499,318+(a)(k) Lorenz Re 2019, 6/30/22 531,374
500,000+(a)(j) Merion Re 2018-2, 12/31/21 523,434
1,000,000+(j) Pangaea Re 2015-1, 2/1/20 1,308
1,000,000+(j) Pangaea Re 2015-2, 11/30/19 1,491
1,200,000+(j) Pangaea Re 2016-1, 11/30/20 3,292
1,000,000+(j) Pangaea Re 2016-2, 11/30/20 2,976
500,000+(a)(j) Pangaea Re 2017-1, 11/30/21 8,050
500,000+(a)(j) Pangaea Re 2018-1, 12/31/21 29,400
1,000,000+(a)(j) Pangaea Re 2018-3, 7/1/22 49,600
409,624+(a)(j) Pangaea Re 2019-1, 2/1/23 428,970
735,313+(a)(j) Pangaea Re 2019-3, 7/1/23 766,129
500,000+(a)(j) Sector Re V, Series 8, Class C, 12/1/23 (144A) 539,944
|
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 27
Schedule of Investments | 9/30/19 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------------
Face
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Multiperil -- Worldwide -- (continued)
500,000+(a)(j) St. Andrews Re 2017-1, 2/1/20 $ 33,900
1,000,000+(j) Versutus Re 2017, 11/30/21 12,900
500,000+(a)(j) Versutus Re 2018, 12/31/21 --
441,274+(a)(j) Versutus Re 2019-A, 12/31/21 491,138
58,727+(a)(j) Versutus Re 2019-B, 12/31/21 65,363
253,645+(j) Woburn Re 2018, 12/31/21 107,799
244,914+(a)(j) Woburn Re 2019, 12/31/22 261,928
-------------
$ 5,665,197
-------------
Total Reinsurance Sidecars $ 6,843,120
---------------------------------------------------------------------------------------------------------------
TOTAL INSURANCE-LINKED SECURITIES
(Cost $10,563,189) $ 10,334,466
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($)
---------------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 4.9% of Net Assets*(d)
Automobile -- 0.2%
703,469 CWGS Group LLC (aka Camping World, Inc.), Term
Loan, 4.85% (LIBOR + 275 bps), 11/8/23 $ 602,345
-------------
Total Automobile $ 602,345
---------------------------------------------------------------------------------------------------------------
Diversified & Conglomerate Manufacturing -- 0.2%
500,000 STG-Fairway Acquisitions, Inc. (aka First Advantage),
First Lien Term Loan, 7.294% (LIBOR +
525 bps), 6/30/22 $ 500,834
-------------
Total Diversified & Conglomerate Manufacturing $ 500,834
---------------------------------------------------------------------------------------------------------------
Diversified & Conglomerate Service -- 0.9%
500,000 Albany Molecular Research, Inc., Second Lien Initial
Term Loan, 9.044% (LIBOR + 700 bps), 8/30/25 $ 497,500
1,100,000 DynCorp International, Inc., Term Loan, 8.028%
(LIBOR + 600 bps), 8/18/25 1,078,000
956,719 Trico Group LLC, First Lien Tranche Term B-2 Loan,
9.104% (LIBOR + 700 bps), 2/2/24 943,564
-------------
Total Diversified & Conglomerate Service $ 2,519,064
---------------------------------------------------------------------------------------------------------------
Electronics -- 0.1%
194,472 nThrive, Inc. (fka Precyse Acquisition Corp.), Additional
Term B-2 Loan, 6.544% (LIBOR + 450 bps), 10/20/22 $ 177,618
-------------
Total Electronics $ 177,618
---------------------------------------------------------------------------------------------------------------
Healthcare, Education & Childcare -- 1.0%
2,868,375 Regionalcare Hospital Partners Holdings, Inc., First Lien
Term B Loan, 6.554% (LIBOR + 450 bps), 11/16/25 $ 2,874,200
-------------
Total Healthcare, Education & Childcare $ 2,874,200
---------------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Trust | Semiannual Report | 9/30/19
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Machinery -- 0.1%
370,573 Blount International, Inc., New Refinancing Term Loan,
5.946% (LIBOR + 375 bps), 4/12/23 $ 371,727
-------------
Total Machinery $ 371,727
---------------------------------------------------------------------------------------------------------------
Metals & Mining -- 0.5%
1,580,000 Aleris International, Inc., Initial Term Loan, 6.794%
(LIBOR + 475 bps), 2/27/23 $ 1,583,950
-------------
Total Metals & Mining $ 1,583,950
---------------------------------------------------------------------------------------------------------------
Oil & Gas -- 0.5%
922,116 Encino Acquisition Partners Holdings LLC, Second Lien
Initial Term Loan, 8.794% (LIBOR +
675 bps), 10/29/25 $ 576,323
889,625 Summit Midstream Partners Holdings LLC, Term Loan
Credit Facility, 8.044% (LIBOR + 600 bps), 5/13/22 872,667
-------------
Total Oil & Gas $ 1,448,990
---------------------------------------------------------------------------------------------------------------
Personal, Food & Miscellaneous Services -- 0.6%
1,000,000 Option Care Health, Inc., Term B Loan, 6.544% (LIBOR +
450 bps), 8/6/26 $ 1,001,250
1,097,286 Revlon Consumer Products Corp., Initial Term B Loan,
5.624% (LIBOR + 350 bps), 9/7/23 844,568
-------------
Total Personal, Food & Miscellaneous Services $ 1,845,818
---------------------------------------------------------------------------------------------------------------
Retail -- 0.1%
522,211 Neiman Marcus Group, Ltd. LLC, Cash Pay Extended
Term Loan, 8.057% (LIBOR + 600 bps), 10/25/23 $ 402,755
-------------
Total Retail $ 402,755
---------------------------------------------------------------------------------------------------------------
Telecommunications -- 0.7%
2,000,000 Commscope, Inc., Initial Term Loan, 5.294% (LIBOR +
325 bps), 4/6/26 $ 1,996,650
-------------
Total Telecommunications $ 1,996,650
---------------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE
LOAN INTERESTS
(Cost $15,002,163) $ 14,323,951
---------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATION --
3.2% of Net Assets
9,200,000(l) U.S. Treasury Bills, 10/15/19 $ 9,193,936
---------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATION
(Cost $9,192,826) $ 9,193,936
---------------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 29
Schedule of Investments | 9/30/19 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.0%+ of Net Assets
Construction & Engineering -- 0.0%+
499,469(a)(m) Abengoa Abenewco 2 SAU, 4/26/24 (144A) $ 31,216
499,469(a)(m) Abengoa Abenewco 2 SAU, 4/26/24 (144A) 31,217
-------------
Total Construction & Engineering $ 62,433
---------------------------------------------------------------------------------------------------------------
Health Care Providers & Services -- 0.0%+
1,819,798(n) ANR, Inc., 3/31/23 $ 19,290
-------------
Total Health Care Providers & Services $ 19,290
---------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.0%+
6,606(a)(o) Amplify Energy Corp., 4/21/20 $ --
354(a)(p) Contura Energy, Inc., 7/26/23 2,478
-------------
Total Oil, Gas & Consumable Fuels $ 2,478
---------------------------------------------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $853,872) $ 84,201
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Notional Price Date
---------------------------------------------------------------------------------------------------------------
OVER THE COUNTER (OTC) CURRENCY PUT
OPTION PURCHASED -- 0.0%+
3,710,000 Put EUR Bank of EUR 39,386 EUR 1.10 4/29/20 $ 60,614
Call USD America NA
---------------------------------------------------------------------------------------------------------------
TOTAL OVER THE COUNTER (OTC) CURRENCY PUT
OPTION PURCHASED
(Premiums paid $39,386) $ 60,614
---------------------------------------------------------------------------------------------------------------
TOTAL OPTIONS PURCHASED
(Premiums paid $39,386) $ 60,614
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($)
---------------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 2.0%
of Net Assets
REPURCHASE AGREEMENTS -- 2.0%
2,580,000 $2,580,000 Royal Bank of Canada, 2.33%, dated
9/30/19 plus accrued interest on 10/1/19
collateralized by the following:
$555,972 Freddie Mac Giant, 3.0%, 3/1/47
$1,301,135 Federal National Mortgage
Association, 3.5%, 8/1/45
$774,664 Government National Mortgage
Association, 4.0%, 4/20/44 $ 2,580,000
1,290,000 $1,290,000 ScotiaBank, 2.35%, dated 9/30/19
plus accrued interest on 10/1/19, collateralized by
$1,315,987 U.S. Treasury Notes, 2.375%, 2/29/24 1,290,000
|
The accompanying notes are an integral part of these financial statements.
30 Pioneer High Income Trust | Semiannual Report | 9/30/19
----------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- (continued)
2,000,000 $2,000,000 TD Securities USA LLC, 2.3%, dated
9/30/19 plus accrued interest on 10/1/19,
collateralized by $2,040,140 U.S. Treasury Notes,
2.125% - 2.5%, 1/15/29 - 2/15/40 $ 2,000,000
--------------
$ 5,870,000
----------------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $5,870,000) $ 5,870,000
----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED
ISSUERS -- 142.3%
(Cost $407,262,673)(q) $ 415,134,547
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Notional Price Date
----------------------------------------------------------------------------------------------------------------
OVER THE COUNTER (OTC) CURRENCY CALL
OPTION WRITTEN -- (0.0)%+
(3,710,000) Call EUR Bank of EUR 39,386 EUR 1.21 4/29/20 $ (4,084)
Put USD America NA
----------------------------------------------------------------------------------------------------------------
TOTAL OVER THE COUNTER (OTC) CURRENCY CALL
OPTION WRITTEN
(Premiums received $(39,386)) $ (4,084)
----------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (42.3)% $(123,379,121)
----------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 291,751,342
================================================================================================================
|
bps Basis Points.
CMT Constant Maturity Treasury Index.
FREMF Freddie Mac Multifamily Fixed-Rate Mortgage Loans.
LIBOR London Interbank Offered Rate.
REIT Real Estate Investment Trust.
(A.D.R.) American Depositary Receipts.
(144A) Security is exempt from registration under Rule 144A of the
Securities Act of 1933. Such securities may be resold normally to
qualified institutional buyers in a transaction exempt from
registration. At September 30, 2019, the value of these securities
amounted to $234,571,762, or 80.4% of net assets.
+ Amount rounds to less than 0.1%.
* Senior secured floating rate loan interests in which the Trust
invests generally pay interest at rates that are periodically
redetermined by reference to a base lending rate plus a premium.
These base lending rates are generally (i) the lending rate offered
by one or more major European banks, such as LIBOR, (ii) the prime
rate offered by one or more major United States banks, (iii) the
rate of a certificate of deposit or (iv) other base lending rates
used by commercial lenders. The interest rate shown is the rate
accruing at September 30, 2019.
+ Security that used significant unobservable inputs to determine its
value.
|
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 31
Schedule of Investments | 9/30/19 (unaudited) (continued)
^ Security is valued using fair value methods (other than prices
supplied by independent pricing services). See Notes to Financial
Statements -- Note 1A.
(a) Non-income producing security.
(b) Security is perpetual in nature and has no stated maturity date.
(c) The interest rate is subject to change periodically. The interest
rate and/or reference index and spread is shown at September 30,
2019.
(d) Floating rate note. Coupon rate, reference index and spread shown
at September 30, 2019.
(e) Security is priced as a unit.
(f) Payment-in-kind (PIK) security which may pay interest in the form
of additional principal amount.
(g) Debt obligation initially issued at one coupon which converts to a
higher coupon at a specific date. The rate shown is the rate at
September 30, 2019.
(h) Security is in default.
(i) Securities are restricted as to resale.
(j) Issued as participation notes.
(k) Issued as preference shares.
(l) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(m) Abengoa Abenewco 2 SAU warrants are exercisable into 499,469
shares.
(n) ANR warrants are exercisable into 1,819,798 shares.
(o) Amplify Energy warrants are exercisable into 6,606 shares.
(p) Contura Energy warrants are exercisable into 354 shares.
(q) Distributions of investments by country of issue, as a percentage
|
of long-term holdings based on country of domicile, is as follows:
United States 79.2%
Canada 4.4
Luxembourg 2.8
Bermuda 2.5
Netherlands 2.0
United Kingdom 2.0
Mexico 1.4
Other (individually less than 1%) 5.7
-----
100.0%
=====
|
FORWARD FOREIGN CURRENCY CONTRACTS
---------------------------------------------------------------------------------------------------------
In Unrealized
Currency Exchange Currency Settlement Appreciation
Purchased for Sold Deliver Counterparty Date (Depreciation)
---------------------------------------------------------------------------------------------------------
NOK 7,293,701 EUR (732,491) HSBC Bank
USA NA 11/29/19 $ 232
EUR 5,687,124 USD (6,253,072) State Street
Bank & Trust Co. 11/27/19 (27,272)
IDR 8,956,970,000 USD (632,934) State Street
Bank & Trust Co. 10/25/19 (3,607)
USD 2,373,757 EUR (2,135,000) State Street
Bank & Trust Co. 11/27/19 36,533
---------------------------------------------------------------------------------------------------------
TOTAL FORWARD FOREIGN CURRENCY CONTRACTS $ 5,886
=========================================================================================================
|
The accompanying notes are an integral part of these financial statements.
32 Pioneer High Income Trust | Semiannual Report | 9/30/19
SWAP CONTRACTS
CENTRALLY CLEARED INTEREST RATE SWAP CONTRACT
----------------------------------------------------------------------------------------------------------------------------
Annual
Notional Pay/ Fixed Pay/ Floating Expiration Premiums Unrealized Market
Amount ($) Receive(1) Rate Receive(2) Rate Date Paid (Depreciation) Value
----------------------------------------------------------------------------------------------------------------------------
22,500,000 Pay 1.59% Receive 3 Month 11/9/20 $101 $(18,786) $(18,685)
USD LIBOR
----------------------------------------------------------------------------------------------------------------------------
TOTAL CENTRALLY CLEARED INTEREST RATE SWAP CONTRACT $101 $(18,786) $(18,685)
============================================================================================================================
|
OVER THE COUNTER (OTC) CREDIT DEFAULT SWAP CONTRACTS -- SELL PROTECTION
---------------------------------------------------------------------------------------------------------------------------------
Reference Annual Unrealized
Notional Obligation/ Pay/ Fixed Expiration Premiums Appreciation Market
Amount ($)(3) Counterparty Index Receive(2) Rate Date (Received) (Depreciation) Value
---------------------------------------------------------------------------------------------------------------------------------
515,000 Goldman Sachs Chesapeake Receive 5.00% 6/20/22 $ (57,938) $ (1,630) $ (59,568)
International Energy Corp.
310,000 Goldman Sachs Chesapeake Receive 5.00% 6/20/22 (37,975) 2,118 (35,857)
International Energy Corp.
485,000 Goldman Sachs Chesapeake Receive 5.00% 6/20/22 (59,412) 3,313 (56,099)
International Energy Corp.
1,020,000 Citibank NA JC Penney Receive 5.00% 12/20/20 (132,600) (110,334) (242,934)
Corp., Inc.
---------------------------------------------------------------------------------------------------------------------------------
TOTAL OVER THE COUNTER (OTC) CREDIT DEFAULT
SWAP CONTRACTS -- SELL PROTECTION $(287,925) $(106,533) $(394,458)
=================================================================================================================================
TOTAL SWAP CONTRACTS $(287,824) $(125,319) $(413,143)
=================================================================================================================================
|
(1) Pays quarterly.
(2) Receives quarterly.
(3) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
Principal amounts are denominated in U.S. dollars ("USD") unless otherwise
noted.
ARS - Argentine Peso
EUR - Euro
IDR - Indonesian Rupiah
MXN - Mexican Peso
NOK - Norwegian Krone
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended September 30, 2019, aggregated $56,539,249 and
$60,484,320, respectively.
The Trust is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Amundi Pioneer Asset
Management, Inc. (the "Adviser") serves as the Trust's investment adviser, as
set forth in Rule 17a-7 under the Investment Company Act of 1940, pursuant to
procedures adopted by the Board of Trustees. Under these procedures, cross
trades are effected at current market prices. During the six months ended
September 30, 2019, the Trust did not engage in any cross trade activity.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 33
Schedule of Investments | 9/30/19 (unaudited) (continued)
At September 30, 2019, the net unrealized appreciation on investments based on
cost for federal tax purposes of $407,140,195 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 31,213,555
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (23,630,544)
------------
Net unrealized appreciation $ 7,583,011
============
|
Various inputs are used in determining the value of the Trust's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments). See Notes to
Financial Statements -- Note 1A.
The following is a summary of the inputs used as of September 30, 2019, in
valuing the Trust's investments:
-----------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------------------
Common Stocks
Health Care Technology $ -- $ -- $ 2,446 $ 2,446
Oil, Gas &
Consumable Fuels -- 254,188 -- 254,188
Specialty Retail -- -- 81,206 81,206
All Other Common Stocks 145,579 -- -- 145,579
Convertible Preferred Stock 2,435,984 -- -- 2,435,984
Preferred Stocks
Chemicals -- 10,622 -- 10,622
Diversified Financial
Services -- 3,120,000 -- 3,120,000
All Other Preferred Stocks 3,620,908 -- -- 3,620,908
Asset Backed Securities -- 715,899 -- 715,899
Collateralized Mortgage
Obligations -- 5,969,861 -- 5,969,861
Commercial Mortgage-Backed
Securities -- 2,069,376 -- 2,069,376
Convertible Corporate Bonds -- 10,659,367 -- 10,659,367
Corporate Bonds
Diversified Financial
Services -- 12,327,138 4,483,628 16,810,766
All Other Corporate Bonds -- 324,192,164 -- 324,192,164
Foreign Government Bonds -- 5,179,013 -- 5,179,013
Insurance-Linked Securities
Collateralized Reinsurance
Multiperil - U.S. -- -- 501,150 501,150
Multiperil - U.S. Regional -- -- 244,548 244,548
Multiperil - Worldwide -- -- 1,501,848 1,501,848
Reinsurance Sidecars
Multiperil - U.S. -- -- 1,177,923 1,177,923
Multiperil - Worldwide -- -- 5,665,197 5,665,197
All Other Insurance-Linked
Securities -- 1,243,800 -- 1,243,800
|
The accompanying notes are an integral part of these financial statements.
34 Pioneer High Income Trust | Semiannual Report | 9/30/19
-----------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------------------
Senior Secured Floating Rate
Loan Interests -- 14,323,951 -- 14,323,951
U.S. Government and
Agency Obligation -- 9,193,936 -- 9,193,936
Rights/Warrants -- 84,201 -- 84,201
Over The Counter (OTC)
Currency Put Option
Purchased -- 60,614 -- 60,614
Repurchase Agreements -- 5,870,000 -- 5,870,000
-----------------------------------------------------------------------------------------------------
Total Investments
in Securities $6,202,471 $395,274,130 $13,657,946 $415,134,547
-----------------------------------------------------------------------------------------------------
Other Financial Instruments
Over The Counter (OTC)
Currency Call
Option Written $ -- $ (4,084) $ -- $ (4,084)
Net unrealized
appreciation on
forward foreign
currency contracts -- 5,886 -- 5,886
Swap contracts, at value -- (413,143) -- (413,143)
-----------------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ -- $ (411,341) $ -- $ (411,341)
=====================================================================================================
|
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 35
Schedule of Investments | 9/30/19 (unaudited) (continued)
------------------------------------------------------------------------------------------------------------------------------------
Change in
Balance Realized unrealized Accrued Transfers Transfers Balance
as of gain appreciation discounts/ into out of as of
3/31/19 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* Level 3* 9/30/19
------------------------------------------------------------------------------------------------------------------------------------
Common Stocks
Health Care
Technology $ 2,446 $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ 2,446
Oil, Gas &
Consumable
Fuels 209,703 -- -- -- -- -- -- (209,703) --
Specialty Retail 141,941 -- (29,469) -- (31,266) -- -- -- 81,206
Preferred Stock
Chemicals 106,220 -- -- -- -- -- -- (106,220) --
Corporate Bonds
Diversified
Financials
Services 3,948,626 -- 534,526 -- -- 476 -- -- 4,483,628
Insurance-Linked
Securities
Collateralized
Reinsurance
Multiperil --
U.S. -- -- 45,204 455,946 -- -- -- -- 501,150
Multiperil --
U.S. Regional -- -- 7,663 236,885 -- -- -- -- 244,548
Multiperil
Worldwide 2,157,245 -- (17,940) 139,805 (777,262) -- -- -- 1,501,848
Windstorm --
U.S. Regional 18,300 -- (15,515) -- (2,785) -- -- -- --
Industry Loss
Warranties
Multiperil --
U.S. 497,554 12 (2,263) -- (495,303) -- -- -- --
Reinsurance
Sidecars
Multiperil --
U.S. 1,126,524 -- 79,976 347,674 (376,251) -- -- -- 1,177,923
Multiperil
Worldwide 5,552,397(a)(b) (62,329) 318,849 1,484,631 (1,628,351) -- -- -- 5,665,197
Senior Secured
Floating Rate
Loan Interest
Insurance 808,213 (1,401) 427,262 -- (1,243,405) 9,331 -- -- --
Rights/Warrants
Household
Products --** --+ --+ -- --** -- -- -- --
Oil, Gas &
Consumable
Fuels --** --+ --+ -- --** -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total $14,569,169 $(63,718) $1,348,293 $2,664,941 $(4,554,623) $9,807 $ -- $(315,923) $13,657,946
====================================================================================================================================
|
+ Amount rounds to less than $1.
(1) Realized gain (loss) on these securities is included in the realized gain
(loss) from investments on the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) from investments on
the Statement of Operations.
* Transfers are calculated on the beginning of period value. For the six
months ended September 30, 2019, securities valued at $315,923 were
transferred from Level 3 to Level 2.
The change in the level designation within the fair value hierarchy was
due to valuing the securities using observable inputs. There were no other
transfers between Levels 1, 2 and 3.
** Securities valued at $0.
The accompanying notes are an integral part of these financial statements.
36 Pioneer High Income Trust | Semiannual Report | 9/30/19
(a) Security valued at $522,038 was classified as Catastrophe Linked Bond on
the March 31, 2019 financial statements.
(b) Security valued at $447,187 was classified as All Natural Peril --
Worldwide on the March 31, 2019 financial statements.
Net change in unrealized appreciation (depreciation) of Level 3 investments still held and
considered Level 3 at September 30, 2019: $880,510
--------
|
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 37
Statement of Assets and Liabilities | 9/30/19 (unaudited)
ASSETS:
Investments in unaffiliated issuers, at value (cost $407,262,673) $415,134,547
Foreign currencies, at value (cost $177,212) 174,568
Swaps collateral 86,930
Swaps and forwards collateral 300,000
Due from broker for swaps 15,326
Variation margin for centrally cleared swap contracts 6,233
Net unrealized appreciation on forward foreign currency contracts 5,886
Receivables --
Investment securities sold 1,248,844
Interest 7,344,166
Other assets 5,279
---------------------------------------------------------------------------------------------
Total assets $424,321,779
=============================================================================================
LIABILITIES:
Payables --
Credit agreement $125,000,000
Investment securities purchased 5,196,958
Trustees' fees 1,230
Interest expense 10,095
Due to custodian 1,861,405
Written options outstanding (net premiums received $(39,386)) 4,084
Swap contracts, at value (net premiums received $(287,824)) 413,143
Due to affiliates 7,629
Accrued expenses 75,893
---------------------------------------------------------------------------------------------
Total liabilities $132,570,437
=============================================================================================
NET ASSETS:
Paid-in capital $371,735,184
Distributable earnings (loss) (79,983,842)
---------------------------------------------------------------------------------------------
Net assets $291,751,342
=============================================================================================
NET ASSET VALUE PER SHARE:
No par value
Based on $291,751,342/29,231,771 shares $ 9.98
=============================================================================================
|
The accompanying notes are an integral part of these financial statements.
38 Pioneer High Income Trust | Semiannual Report | 9/30/19
Statement of Operations (unaudited)
For the Six Months Ended 9/30/19
INVESTMENT INCOME:
Interest from unaffiliated issuers $14,858,820
Dividends from unaffiliated issuers 443,608
-----------------------------------------------------------------------------------------------------
Total investment income $15,302,428
-----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,249,254
Administrative expense 44,165
Transfer agent fees 5,975
Distribution fees
Shareowner communications expense 8,048
Custodian fees 3,372
Professional fees 42,765
Printing expense 9,608
Pricing fees 14,613
Trustees' fees 4,985
Insurance expense 3,000
Interest expense 2,200,300
Miscellaneous 14,328
-----------------------------------------------------------------------------------------------------
Total expenses $ 3,600,413
-----------------------------------------------------------------------------------------------------
Net investment income $11,702,015
-----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $(2,908,241)
Written options 167,136
Forward foreign currency contracts (124,497)
Swap contracts 173,818
Other assets and liabilities denominated
in foreign currencies 88,191 $(2,603,593)
-----------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers $ 5,494,405
Written options (130,683)
Forward foreign currency contracts 18,371
Swap contracts (448,073)
Other assets and liabilities denominated
in foreign currencies 1,379 $ 4,935,399
-----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ 2,331,806
-----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $14,033,821
=====================================================================================================
|
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 39
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------------
Six Months
Ended Year
9/30/19 Ended
(unaudited) 3/31/19
-----------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 11,702,015 $ 23,465,391
Net realized gain (loss) on investments (2,603,593) (13,604,561)
Change in net unrealized appreciation (depreciation)
on investments 4,935,399 (4,767,893)
-----------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 14,033,821 $ 5,092,937
-----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
($0.41 and $0.79 per share, respectively) $(11,838,867) $(22,946,940)
-----------------------------------------------------------------------------------------------
Total distributions to shareowners $(11,838,867) $(22,946,940)
-----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 2,194,954 $(17,854,003)
-----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period $289,556,388 $307,410,391
-----------------------------------------------------------------------------------------------
End of period $291,751,342 $289,556,388
===============================================================================================
|
The accompanying notes are an integral part of these financial statements.
40 Pioneer High Income Trust | Semiannual Report | 9/30/19
Statement of Cash Flows
For the Six Months Ended 9/30/19
Cash Flows From Operating Activities:
Net increase in net assets resulting from operations $ 14,033,821
--------------------------------------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets resulting from operations
to net cash, restricted cash and foreign currencies from operating activities:
Purchases of investment securities $(129,149,836)
Proceeds from disposition and maturity of investment securities 135,046,681
Net purchases of temporary cash investments (5,870,000)
Net (accretion) and amortization of discount/premium on investment securities (1,049,186)
Change in unrealized appreciation on investments in unaffiliated issuers (5,494,405)
Change in unrealized depreciation on swap contracts 448,073
Change in unrealized appreciation on forward foreign currency contracts (18,371)
Change in unrealized appreciation on other assets and liabilities denominated
in foreign currency (3,083)
Change in unrealized depreciation on written options 130,683
Net realized loss on investments 2,908,241
Decrease in interest receivable 156,278
Decrease in dividends receivable 60,809
Decrease in other assets 3,844
Decrease in due to affiliates (128)
Decrease in trustees' fees payable (3,226)
Decrease in accrued expenses payable (58,859)
Decrease in interest expense payable (26,992)
Decrease in premiums received on written options 39,386
Realized gains on written options (167,136)
Decrease in cash due to broker (246,479)
Increase in cash due to broker (15,326)
Decrease in variation margin for centrally cleared swap contracts 10,594
--------------------------------------------------------------------------------------------------------------
Net cash, restricted cash and foreign currencies from operating activities $ 10,735,383
--------------------------------------------------------------------------------------------------------------
Cash Flows Used in Financing Activities:
Increase in due to custodian $ 265,333
Distributions to shareowners (11,838,867)
--------------------------------------------------------------------------------------------------------------
Net cash, restricted cash and foreign currencies used in financing activities $ (11,573,534)
--------------------------------------------------------------------------------------------------------------
Effect of Foreign Exchange Fluctuations on Cash:
Effect of foreign exchange fluctuations on cash $ 3,083
--------------------------------------------------------------------------------------------------------------
Cash, restricted cash and foreign currencies:
Beginning of the period* $ 1,396,566
--------------------------------------------------------------------------------------------------------------
End of the period* $ 561,498
--------------------------------------------------------------------------------------------------------------
Cash Flow Information:
Cash paid for interest $ 2,227,292
==============================================================================================================
|
* The following table provides a reconciliation of cash, restricted cash and
foreign currencies reported within statement of financial position that
sum to the total of the same such amounts shown in the Statement of Cash
Flows:
--------------------------------------------------------------------------------------------------------------
Six Months
Ended
9/30/19 Year Ended
(unaudited) 3/31/19
--------------------------------------------------------------------------------------------------------------
Foreign currencies, at value $174,568 $ 846,625
Swaps collateral 86,930 249,941
Swaps and forwards collateral 300,000 300,000
--------------------------------------------------------------------------------------------------------------
Total cash, restricted cash and foreign currencies
shown in the Statement of Cash Flows $561,498 $1,396,566
--------------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 41
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
9/30/19 Ended Ended Ended Ended Ended
(unaudited) 3/31/19 3/31/18 3/31/17* 3/31/16* 3/31/15*
------------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 9.91 $ 10.52 $ 10.70 $ 9.34 $ 11.89 $ 14.19
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 0.40 $ 0.80 $ 0.85 $ 0.95 $ 1.19 $ 1.36
Net realized and unrealized gain (loss) on investments 0.08 (0.62) (0.25) 1.38 (2.40) (2.05)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.48 $ 0.18 $ 0.60 $ 2.33 $ (1.21) $ (0.69)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income and previously undistributed net
investment income $ (0.41) $ (0.79) $ (0.78) $ (0.97)** $ (1.34)** $ (1.61)**
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.07 $ (0.61) $ (0.18) $ 1.36 $ (2.55) $ (2.30)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.98 $ 9.91 $ 10.52 $ 10.70 $ 9.34 $ 11.89
------------------------------------------------------------------------------------------------------------------------------------
Market value, end of period $ 9.22 $ 8.95 $ 9.39 $ 9.87 $ 10.04 $ 12.87
====================================================================================================================================
Total return at net asset value (b) 5.22%(c) 2.79% 6.38% 26.13% (10.54)% (7.38)%
Total return at market value (b) 7.64%(c) 4.00% 2.94% 8.23% (11.37)% (20.28)%
Ratios to average net assets of common shareowners:
Total expenses plus interest expense (d)(e) 2.47%(f) 2.41% 2.14% 2.10% 1.67% 1.33%
Net investment income available to shareowners 8.03%(f) 7.93% 7.88% 9.36% 11.23% 10.30%
Portfolio turnover rate 14%(c) 33% 29% 48% 24% 37%
Net assets, end of period (in thousands) $291,751 $289,556 $307,410 $312,757 $271,900 $344,349
|
The accompanying notes are an integral part of these financial statements.
42 Pioneer High Income Trust | Semiannual Report | 9/30/19
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
9/30/19 Ended Ended Ended Ended Ended
(unaudited) 3/31/19 3/31/18 3/31/17* 3/31/16* 3/31/15*
------------------------------------------------------------------------------------------------------------------------------------
Total amount of debt outstanding (in thousands) $125,000 $125,000 $125,000 $125,000 $125,000 $151,000
Asset coverage per $1,000 of indebtedness (in thousands) $ 3,334 $ 3,316 $ 3,459 $ 3,502 $ 3,175 $ 3,280
====================================================================================================================================
|
* The Trust was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
** The amount of distributions made to shareowners during the period was in
excess of the net investment income earned by the Trust during the period.
The Trust has accumulated undistributed net investment income which is
part of the Trust's NAV. A portion of this accumulated net investment
income was distributed to shareowners during the period. A decrease in
distributions may have a negative effect on the market value of the
Trust's shares.
(a) The per-share data presented above is based upon the average common shares
outstanding for the periods presented.
(b) Total investment return is calculated assuming a purchase of common shares
at the current net asset value or market value on the first day and a sale
at the current net asset value or market value on the last day of the
periods reported. Dividends and distributions, if any, are assumed for
purposes of this calculation to be reinvested at prices obtained under the
Trust's dividend reinvestment plan. Total investment return does not
reflect brokerage commissions. Past performance is not a guarantee of
future results.
(c) Not annualized.
(d) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(e) Includes interest expense of 1.51% (annualized), 1.42%, 1.05%, 1.11%,
0.63% and 0.38%, respectively.
(f) Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/19 43
Notes to Financial Statements | 9/30/19 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer High Income Trust (the "Trust") was organized as a Delaware statutory
trust on January 30, 2002. Prior to commencing operations on April 26, 2002,
the Trust had no operations other than matters relating to its organization and
registration as a 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 and the Trust may, as a secondary
objective, also seek capital appreciation to the extent that it is consistent
with its investment objective.
Amundi Pioneer Asset Management, Inc., an indirect, wholly owned subsidiary of
Amundi and Amundi's wholly owned subsidiary, Amundi USA, Inc., serves as the
Trust's investment adviser (the "Adviser"). Amundi Pioneer Distributor, Inc.,
an affiliate of Amundi Pioneer Asset Management, Inc., serves as the Trust's
distributor (the "Distributor").
In August 2018, the Securities and Exchange Commission ("SEC") released a
Disclosure Update and Simplification Final Rule. The Final Rule amends
Regulation S-X disclosures requirements to conform them to U.S. Generally
Accepted Accounting Principles ("U.S. GAAP") for investment companies. The
Trust's financial statements were prepared in compliance with the new
amendments to Regulation S-X.
The Trust is an investment company and follows investment company accounting
and reporting guidance under U.S. GAAP. U.S. GAAP requires the management of
the Trust to make estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of income,
expenses and gain or loss on investments during the reporting period. Actual
results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements:
A. Security Valuation
The net asset value of the Trust is computed once daily, on each day the
New York Stock Exchange ("NYSE") is open, as of the close of regular
trading on the NYSE.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques
44 Pioneer High Income Trust | Semiannual Report | 9/30/19
to provide an estimated value of the security or instrument. A pricing
matrix is a means of valuing a debt security on the basis of current
market prices for other debt securities, historical trading patterns in
the market for fixed-income securities and/or other factors. Non-U.S. debt
securities that are listed on an exchange will be valued at the bid price
obtained from an independent third party pricing service. When independent
third party pricing services are unable to supply prices, or when prices
or market quotations are considered to be unreliable, the value of that
security may be determined using quotations from one or more
broker-dealers.
Loan interests are valued in accordance with guidelines established by the
Board of Trustees at the mean between the last available bid and asked
prices from one or more brokers or dealers as obtained from Loan Pricing
Corporation, an independent third party pricing service. If price
information is not available from Loan Pricing Corporation, or if the
price information is deemed to be unreliable, price information will be
obtained from an alternative loan interest pricing service. If no reliable
price quotes are available from either the primary or alternative pricing
service, broker quotes will be solicited.
Event-linked bonds or catastrophe bonds are valued at the bid price
obtained from an independent third party pricing service. Other
insurance-linked securities (including sidecars, collateralized
reinsurance and industry loss warranties) may be valued at the bid price
obtained from an independent pricing service, or through a third party
using a pricing matrix, insurance industry valuation models, or other fair
value methods or techniques to provide an estimated value of the
instrument.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities
for which sale prices are not available, generally are valued using the
mean between the last bid and asked prices or, if both last bid and asked
prices are not available, at the last quoted bid price. Last sale and bid
and asked prices are provided by independent third party pricing services.
In the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
The value of foreign securities is translated into U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party
pricing source. Trading in non-U.S. equity securities is substantially
completed each day at various times prior to the close of the NYSE. The
values of such securities used in computing the net asset value of the
Trust's shares are determined as of such times. The Trust may use a fair
value model developed by an independent pricing service to value non-U.S.
equity securities.
Pioneer High Income Trust | Semiannual Report | 9/30/19 45
Options contracts are generally valued at the mean between the last bid
and ask prices on the principal exchange where they are traded.
Over-the-counter ("OTC") options and options on swaps ("swaptions") are
valued using prices supplied by independent pricing services, which
consider such factors as market prices, market events, quotations from one
or more brokers, Treasury spreads, yields, maturities and ratings, or may
use a pricing matrix or other fair value methods or techniques to provide
an estimated value of the security or instrument.
Repurchase agreements are valued at par. Cash may include overnight time
deposits at approved financial institutions.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate and the forward points on a daily basis, in each case
provided by a third party pricing service. Contracts whose forward
settlement date falls between two quoted days are valued by interpolation.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts), are valued at the dealer quotations
obtained from reputable International Swap Dealers Association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Securities or loan interests for which independent pricing services or
broker-dealers are unable to supply prices or for which market prices
and/or quotations are not readily available or are considered to be
unreliable are valued by a fair valuation team comprised of certain
personnel of the Adviser pursuant to procedures adopted by the Trust's
Board of Trustees. The Adviser's fair valuation team uses fair value
methods approved by the Valuation Committee of the Board of Trustees. The
Adviser's fair valuation team is responsible for monitoring developments
that may impact fair valued securities and for discussing and assessing
fair values on an ongoing basis, and at least quarterly, with the
Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Trust may use fair value
methods if it is determined that a significant event has occurred after
the close of the exchange or market on which the security trades and prior
to the determination of the Trust's net asset value. Examples of a
significant event might include political or economic news, corporate
restructurings, natural disasters, terrorist activity or trading halts.
Thus, the valuation of the Trust's securities may differ significantly
from exchange prices, and such differences could be material.
46 Pioneer High Income Trust | Semiannual Report | 9/30/19
At September 30, 2019, five securities were valued using fair value
methods (in addition to securities valued using prices supplied by
independent pricing services, broker-dealers or using a third party
insurance pricing model) representing 0.12% of net assets. The value of
these fair valued securities was $358,485.
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Trust becomes aware of the ex-dividend
data in the exercise of reasonable diligence.
Interest income, including interest on income-bearing cash accounts, is
recorded on the accrual basis. Dividend and interest income are reported
net of unrecoverable foreign taxes withheld at the applicable country
rates and net of income accrued on defaulted securities.
Interest and dividend income payable by delivery of additional shares is
reclassified as PIK (payment-in-kind) income upon receipt and is included
in interest and dividend income, respectively.
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly
paydowns. All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on
foreign currency contracts, disposition of foreign currencies and the
difference between the amount of income accrued and the U.S. dollars
actually received. Further, the effects of changes in foreign currency
exchange rates on investments are not segregated on the Statement of
Operations from the effects of changes in the market prices of those
securities, but are included with the net realized and unrealized gain or
loss on investments.
Pioneer High Income Trust | Semiannual Report | 9/30/19 47
D. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income and net realized capital gains,
if any, to its shareowners. Therefore, no provision for federal income
taxes is required. As of March 31, 2019, the Trust did not accrue any
interest or penalties with respect to uncertain tax positions, which, if
applicable, would be recorded as an income tax expense on the Statement of
Operations. Tax returns filed within the prior three years remain subject
to examination by federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary over distributions for
financial statement purposes resulting from differences in the recognition
or classification of income or distributions for financial statement and
tax purposes. Capital accounts within the financial statements are
adjusted for permanent book/tax differences to reflect tax character, but
are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
paid during the year ended March 31, 2019 was as follows:
--------------------------------------------------------------------------
2019
--------------------------------------------------------------------------
Distributions paid from:
Ordinary income $22,946,940
--------------------------------------------------------------------------
Total $22,946,940
==========================================================================
|
The following shows the components of distributable earnings (losses) on a
federal income tax basis at March 31, 2019:
--------------------------------------------------------------------------
2019
--------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 3,565,711
Capital loss carryforward (87,927,943)
Other book/tax temporary differences (659,691)
Unrealized appreciation 2,843,127
--------------------------------------------------------------------------
Total $(82,178,796)
==========================================================================
|
The difference between book basis and tax basis unrealized depreciation is
primarily attributable to the realization for tax purposes of unrealized
gains on investments in passive foreign investment companies, the book/tax
48 Pioneer High Income Trust | Semiannual Report | 9/30/19
differences in the accrual of income on securities in default, the
difference between book and tax amortization methods and discounts on
fixed income securities.
E. Risks
The value of securities held by the Trust may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real
or perceived adverse economic, political or regulatory conditions,
inflation, changes in interest rates, lack of liquidity in the bond
markets or adverse investor sentiment. In the past several years,
financial markets have experienced increased volatility, depressed
valuations, decreased liquidity and heightened uncertainty. These
conditions may continue, recur, worsen or spread. A general rise in
interest rates could adversely affect the price and liquidity of
fixed-income securities and could also result in increased redemptions
from the Trust.
At times, the Trust's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Trust more
susceptible to any economic, political, or regulatory developments or
other risks affecting those industries and sectors. The Trust's
investments in foreign markets and countries with limited developing
markets may subject the Trust to a greater degree of risk than investments
in a developed market. These risks include disruptive political or
economic conditions and the imposition of adverse governmental laws or
currency exchange restrictions.
The Trust invests in below investment grade ("high yield") debt
securities, floating rate loans and insurance-linked securities. The Trust
may invest in securities and other obligations of any credit quality,
including those that are rated below investment grade, or are unrated but
are determined by the Adviser to be of equivalent credit quality. Below
investment grade securities are commonly referred to as "junk bonds" and
are considered speculative with respect to the issuer's capacity to pay
interest and repay principal. Below investment grade securities, including
floating rate loans, involve greater risk of loss, are subject to greater
price volatility, and may be less liquid and more difficult to value,
especially during periods of economic uncertainty or change, than higher
rated debt securities. Certain securities in which the Trust invests,
including floating rate loans, once sold, may not settle for an extended
period (for example, several weeks or even longer). The Trust will not
receive its sale proceeds until that time, which may constrain the Trust's
ability to meet its obligations. The Trust may invest in securities of
issuers that are in default or that are in bankruptcy. The value of
collateral, if any, securing a floating rate loan can decline or may be
insufficient to meet the issuer's obligations or may be difficult to
liquidate. No active trading market
Pioneer High Income Trust | Semiannual Report | 9/30/19 49
may exist for many floating rate loans, and many loans are subject to
restrictions on resale. Any secondary market may be subject to irregular
trading activity and extended settlement periods. The Trust's investments
in certain foreign markets or countries with limited developing markets
may subject the Trust to a greater degree of risk than in a developed
market. These risks include disruptive political or economic conditions
and the possible imposition of adverse governmental laws or currency
exchange restrictions. The Trust may invest up to 50% of its total assets
in illiquid securities. Illiquid securities are securities that the Trust
reasonably expects cannot be sold or disposed of in the current market in
seven calendar days or less without the sale or disposition significantly
changing the market value of the securities.
With the increased use of technologies such as the Internet to conduct
business, the Trust is susceptible to operational, information security
and related risks. While the Trust's Adviser has established business
continuity plans in the event of, and risk management systems to prevent,
limit or mitigate, such cyber-attacks, there are inherent limitations in
such plans and systems including the possibility that certain risks have
not been identified. Furthermore, the Trust cannot control the
cybersecurity plans and systems put in place by service providers to the
Trust such as Brown Brothers Harriman & Co., the Trust's custodian and
accounting agent, and American Stock Transfer & Trust Company, the Trust's
transfer agent. In addition, many beneficial owners of Trust shares hold
them through accounts at broker-dealers, retirement platforms and other
financial market participants over which neither the Trust nor Amundi
Pioneer exercises control. Each of these may in turn rely on service
providers to them, which are also subject to the risk of cyber-attacks.
Cybersecurity failures or breaches at Amundi Pioneer or the Trust's
service providers or intermediaries have the ability to cause disruptions
and impact business operations, potentially resulting in financial losses,
interference with the Trust's ability to calculate its net asset value,
impediments to trading, the inability of Trust shareowners to effect share
purchases or redemptions or receive distributions, loss of or unauthorized
access to private shareowner information and violations of applicable
privacy and other laws, regulatory fines, penalties, reputational damage,
or additional compliance costs. Such costs and losses may not be covered
under any insurance. In addition, maintaining vigilance against
cyber-attacks may involve substantial costs over time, and system
enhancements may themselves be subject to cyber-attacks.
F. Insurance-Linked Securities ("ILS")
The Trust invests in ILS. The Trust could lose a portion or all of the
principal it has invested in an ILS, and the right to additional interest
or dividend payments with respect to the security, upon the occurrence of
one or more trigger events, as defined within the terms of an
insurance-linked security.
50 Pioneer High Income Trust | Semiannual Report | 9/30/19
Trigger events, generally, are hurricanes, earthquakes, or other natural
events of a specific size or magnitude that occur in a designated
geographic region during a specified time period, and/or that involve
losses or other metrics that exceed a specific amount. There is no way to
accurately predict whether a trigger event will occur, and accordingly,
ILS carry significant risk. The Trust is entitled to receive principal,
and interest and/or dividend payments so long as no trigger event occurs
of the description and magnitude specified by the instrument. In addition
to the specified trigger events, ILS may expose the Trust to other risks,
including but not limited to issuer (credit) default, adverse regulatory
or jurisdictional interpretations and adverse tax consequences.
The Trust's investments in ILS may include event-linked bonds. ILS also
may include special purpose vehicles ("SPVs") or similar instruments
structured to comprise a portion of a reinsurer's catastrophe-oriented
business, known as quota share instruments (sometimes referred to as
reinsurance sidecars), or to provide reinsurance relating to specific
risks to insurance or reinsurance companies through a collateralized
instrument, known as collateralized reinsurance. Structured reinsurance
investments also may include industry loss warranties ("ILWs"). A
traditional ILW takes the form of a bilateral reinsurance contract, but
there are also products that take the form of derivatives, collateralized
structures, or exchange-traded instruments.
Where the ILS are based on the performance of underlying reinsurance
contracts, the Trust has limited transparency into the individual
underlying contracts, and therefore must rely upon the risk assessment and
sound underwriting practices of the issuer. Accordingly, it may be more
difficult for the Adviser to fully evaluate the underlying risk profile of
the Trust's structured reinsurance investments, and therefore the Trust's
assets are placed at greater risk of loss than if the Adviser had more
complete information. Structured reinsurance instruments generally will be
considered illiquid securities by the Trust. These securities may be
difficult to purchase, sell or unwind. Illiquid securities also may be
difficult to value. If the Trust is forced to sell an illiquid asset, the
Trust may be forced to sell at a loss.
G. Repurchase Agreements
Repurchase agreements are arrangements under which the Trust purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Trust at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Trust. The securities purchased serve
as the Trust's collateral for the obligation of the counterparty to
repurchase the securities. The value of the collateral, including accrued
interest, is required to be equal to or in excess of the repurchase price.
The collateral for all repurchase agreements is
Pioneer High Income Trust | Semiannual Report | 9/30/19 51
held in safekeeping in the customer-only account of the Trust's custodian
or a sub-custodian of the Trust. The Adviser is responsible for
determining that the value of the collateral remains at least equal to the
repurchase price. In the event of a default by the counterparty, the Trust
is entitled to sell the securities, but the Trust may not be able to sell
them for the price at which they were purchased, thus causing a loss to
the Trust. Additionally, if the counterparty becomes insolvent, there is
some risk that the Trust will not have a right to the securities, or the
immediate right to sell the securities.
Open repurchase agreements as of September 30, 2019, are disclosed in the
Trust's Schedule of Investments.
H. Purchased Options
The Trust may purchase put and call options to seek to increase total
return. Purchased call and put options entitle the Trust to buy and sell a
specified number of shares or units of a particular security, currency or
index at a specified price at a specific date or within a specific period
of time. Upon the purchase of a call or put option, the premium paid by
the Trust is included on the Statement of Assets and Liabilities as an
investment. All premiums are marked-to-market daily, and any unrealized
appreciation or depreciation is recorded on the Trust's Statement of
Operations. As the purchaser of an index option, the Trust has the right
to receive a cash payment equal to any depreciation in the value of the
index below the strike price of the option (in the case of a put) or equal
to any appreciation in the value of the index over the strike price of the
option (in the case of a call) as of the valuation date of the option.
Premiums paid for purchased call and put options which have expired are
treated as realized losses on investments on the Statement of Operations.
Upon the exercise or closing of a purchased put option, the premium is
offset against the proceeds on the sale of the underlying security or
financial instrument in order to determine the realized gain or loss on
investments. Upon the exercise or closing of a purchased call option, the
premium is added to the cost of the security or financial instrument. The
risk associated with purchasing options is limited to the premium
originally paid.
The average market value of purchased options contracts open during the
six months ended September 30, 2019, was $192,277. Open purchased options
at September 30, 2019, are listed in the Trust's Schedule of Investments.
I. Option Writing
The Trust may write put and covered call options to seek to increase total
return. When an option is written, the Trust receives a premium and
becomes obligated to purchase or sell the underlying security at a fixed
price, upon the exercise of the option. When the Trust writes an option,
an amount equal to
52 Pioneer High Income Trust | Semiannual Report | 9/30/19
the premium received by the Trust is recorded as "Written options
outstanding" on the Statement of Assets and Liabilities and is
subsequently adjusted to the current value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Trust on the expiration date as realized gains from investments on the
Statement of Operations. The difference between the premium and the amount
paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain on the Statement of
Operations, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss on the Statement of
Operations. If a call option is exercised, the premium is added to the
proceeds from the sale of the underlying security in determining whether
the Trust has realized a gain or loss. The Trust as writer of an option
bears the market risk of an unfavorable change in the price of the
security underlying the written option.
The average market value of written options for the six months ended
September 30, 2019, was $(13,407). Open written options contracts at
September 30, 2019, are listed in the Trust's Schedule of Investments.
J. Forward Foreign Currency Contracts
The Trust may enter into forward foreign currency contracts ("contracts")
for the purchase or sale of a specific foreign currency at a fixed price
on a future date. All contracts are marked-to-market daily at the
applicable exchange rates, and any resulting unrealized appreciation or
depreciation is recorded in the Trust's financial statements. The Trust
records realized gains and losses at the time a contract is offset by
entry into a closing transaction or extinguished by delivery of the
currency. Risks may arise upon entering into these contracts from the
potential inability of counterparties to meet the terms of the contract
and from unanticipated movements in the value of foreign currencies
relative to the U.S. dollar (see Note 4).
At September 30, 2019, the Trust had entered into various forward foreign
currency contracts that obligated the Trust to deliver or take delivery of
currencies at specified future maturity dates. Alternatively, prior to the
settlement date of a forward foreign currency contract, the Trust may
close out such contract by entering into an offsetting contract.
The average market value of forward foreign currency contracts open during
the six months ended September 30, 2019, was $4,604,506. Open forward
foreign currency contracts outstanding at September 30, 2019, are listed
in the Schedule of Investments.
Pioneer High Income Trust | Semiannual Report | 9/30/19 53
K. Credit Default Swap Contracts
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event or an underlying
reference obligation, which may be a single security or a basket or index
of securities. The Trust may buy or sell credit default swap contracts to
seek to increase the Trust's income, or to attempt to hedge the risk of
default on portfolio securities. A credit default swap index is used to
hedge risk or take a position on a basket of credit entities or indices.
As a seller of protection, the Trust would be required to pay the notional
(or other agreed-upon) value of the referenced debt obligation to the
counterparty in the event of a default by a U.S. or foreign corporate
issuer of a debt obligation, which would likely result in a loss to the
Trust. In return, the Trust would receive from the counterparty a periodic
stream of payments during the term of the contract, provided that no event
of default occurred. The maximum exposure of loss to the seller would be
the notional value of the credit default swaps outstanding. If no default
occurs, the Trust would keep the stream of payments and would have no
payment obligation. The Trust may also buy credit default swap contracts
in order to hedge against the risk of default of debt securities, in which
case the Trust would function as the counterparty referenced above.
As a buyer of protection, the Trust makes an upfront or periodic payment
to the protection seller in exchange for the right to receive a contingent
payment. An upfront payment made by the Trust, as the protection buyer, is
recorded within the "Swap contracts, at value" line item on the Statement
of Assets and Liabilities. Periodic payments received or paid by the Trust
are recorded as realized gains or losses on the Statement of Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources, and the change in value, if any, is
recorded within the "Swap contracts, at value" line item on the Statement
of Assets and Liabilities. Payments received or made as a result of a
credit event or upon termination of the contract are recognized, net of
the appropriate amount of the upfront payment, as realized gains or losses
on the Statement of Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Trust had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the
Trust is a protection buyer and no credit event occurs, it will lose its
investment. If the Trust is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Trust,
together with the periodic payments received, may be less than the amount
the Trust pays to the protection buyer,
54 Pioneer High Income Trust | Semiannual Report | 9/30/19
resulting in a loss to the Trust. In addition, obligations under sell
protection credit default swaps may be partially offset by net amounts
received from settlement of buy protection credit default swaps entered
into by the Trust for the same reference obligation with the same
counterparty.
Certain swap contracts that are cleared through a central clearinghouse
are referred to as centrally cleared swaps. All payments made or received
by the Trust are pursuant to a centrally cleared swap contract with the
central clearing party rather than the original counterparty. Upon
entering into a centrally cleared swap contract, the Trust is required to
make an initial margin deposit, either in cash or in securities. The daily
change in value on open centrally cleared contracts is recorded as
"Variation margin for centrally cleared swaps" on the Statement of Assets
and Liabilities. Cash received from or paid to the broker related to
previous margin movement is held in a segregated account at the broker and
is recorded as either "Due from broker for swaps" or "Due to broker for
swaps" on the Statement of Assets and Liabilities. The amount of cash
deposited with a broker as collateral at September 30, 2019, is recorded
as "Swaps collateral" on the Statement of Assets and Liabilities.
The average market value of credit default swap contracts open during the
six months ended September 30, 2019, was $(402,082). Open credit default
swap contracts at September 30, 2019, are listed in the Schedule of
Investments.
L. Interest Rate Swap Contracts
The Trust may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance its income. Pursuant to the
interest rate swap contract, the Trust negotiates with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is
typically a fixed interest rate. Payment flows are usually netted against
each other, with the difference being paid by one party to the other on a
monthly basis.
Periodic payments received or paid by the Trust are recorded as realized
gains or losses on the Statement of Operations. Interest rate swap
contracts are marked-to-market daily using valuations supplied by
independent sources and the change in value, if any, is recorded within
"Swap contracts, at value" line item on the Statement of Assets and
Liabilities. Interest rate swap contracts are subject to counterparty risk
and movements in interest rates. Certain swap contracts that are cleared
through a central clearinghouse are referred to as centrally cleared
swaps. All payments made or received by the Trust are pursuant to
centrally cleared swap contracts with the central clearing party rather
than the original counterparty. Upon entering into a centrally cleared
swap contract, the Trust is required to make an initial
Pioneer High Income Trust | Semiannual Report | 9/30/19 55
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared swap contracts is recorded as variation margin
for centrally cleared swaps on the Statement of Assets and Liabilities.
The average market value of interest swap contracts open during the six
months ended September 30, 2019, was $154,191. Open interest rate swap
contracts at September 30, 2019, are listed in the Schedule of
Investments.
M. Automatic Dividend Reinvestment Plan
All shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
"Plan"), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional shares of
the Trust in lieu of cash. Shareowners may elect not to participate in the
Plan. Shareowners not participating in the Plan receive all dividends and
capital gain distributions in cash. Participation in the Plan is
completely voluntary and may be terminated or resumed at any time without
penalty by notifying American Stock Transfer & Trust Company, the agent
for shareowners in administering the Plan (the "Plan Agent"), in writing
prior to any dividend record date; otherwise such termination or
resumption will be effective with respect to any subsequently declared
dividend or other distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate
in the Plan on the shareowner's behalf. If the firm or nominee does not
offer the Plan, dividends will be paid in cash to the shareowner of
record. A firm or nominee may reinvest a shareowner's cash dividends in
shares of the Trust on terms that differ from the terms of the Plan.
Whenever the Trust declares a dividend on shares payable in cash,
participants in the Plan will receive the equivalent in shares acquired by
the Plan Agent either (i) through receipt of additional unissued but
authorized shares from the Trust or (ii) by purchase of outstanding shares
on the New York Stock Exchange or elsewhere. If, on the payment date for
any dividend, the net asset value per share is equal to or less than the
market price per share plus estimated brokerage trading fees (market
premium), the Plan Agent will invest the dividend amount in newly issued
shares. The number of newly issued shares to be credited to each account
will be determined by dividing the dollar amount of the dividend by the
net asset value per share on the date the shares are issued, provided that
the maximum discount from the then current market price per share on the
date of issuance does not exceed 5%. If, on the payment date for any
dividend, the net asset value per share is greater than the market value
(market discount), the Plan Agent will invest the dividend amount in
shares acquired in open-market purchases. There are no brokerage charges
with respect to newly issued shares. However, each
56 Pioneer High Income Trust | Semiannual Report | 9/30/19
participant will pay a pro rata share of brokerage trading fees incurred
with respect to the Plan Agent's open-market purchases. Participating in
the Plan does not relieve shareowners from any federal, state or local
taxes which may be due on dividends paid in any taxable year. Shareowners
holding Plan shares in a brokerage account may be able to transfer the
shares to another broker and continue to participate in the Plan.
2. Management Agreement
The Adviser manages the Trust's portfolio. Management fees payable under the
Trust's Advisory Agreement with the Adviser are calculated daily at the annual
rate of 0.60% of the Trust's average daily managed assets. "Managed assets"
means (a) the total assets of the Trust, including any form of investment
leverage, minus (b) all accrued liabilities incurred in the normal course of
operations, which shall not include any liabilities or obligations attributable
to investment leverage obtained through (i) indebtedness of any type
(including, without limitation, borrowing through a credit facility or the
issuance of debt securities), (ii) the issuance of preferred stock or other
similar preference securities, and/or (iii) any other means. For the six months
ended September 30, 2019, the net management fee was 0.60% (annualized) of the
Trust's average daily managed assets, which was equivalent to 0.86%
(annualized) of the Trust's average daily net assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Trust as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$7,629 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at September 30, 2019.
3. Transfer Agent
American Stock Transfer & Trust Company ("AST") serves as the transfer agent
with respect to the Trust's shares. The Trust pays AST an annual fee, as is
agreed to from time to time by the Trust and AST, for providing such services.
In addition, the Trust reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings, and outgoing phone calls.
4. Master Netting Agreements
The Trust has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Trust and a counterparty that governs the
Pioneer High Income Trust | Semiannual Report | 9/30/19 57
trading of certain Over the Counter ("OTC") derivatives and typically contains,
among other things, close-out and set-off provisions which apply upon the
occurrence of an event of default and/or a termination event as defined under
the relevant ISDA Master Agreement. The ISDA Master Agreement may also give a
party the right to terminate all transactions traded under such agreement if,
among other things, there is deterioration in the credit quality of the other
party.
Upon an event of default or a termination of the ISDA Master Agreement, the
non-defaulting party has the right to close-out all transactions under such
agreement and to net amounts owed under each transaction to determine one net
amount payable by one party to the other. The right to close out and net
payments across all transactions under the ISDA Master Agreement could result
in a reduction of the Trust's credit risk to its counterparty equal to any
amounts payable by the Trust under the applicable transactions, if any.
However, the Trust's right to set-off may be restricted or prohibited by the
bankruptcy or insolvency laws of the particular jurisdiction to which each
specific ISDA Master Agreement of each counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which
may vary by counterparty. Collateral pledged for the benefit of the Trust
and/or counterparty is held in segregated accounts by the Trust's custodian and
cannot be sold, re-pledged, assigned or otherwise used while pledged. Cash that
has been segregated to cover the Trust's collateral obligations, if any, will
be reported separately on the Statement of Assets and Liabilities as "Swaps
collateral". Securities pledged by the Trust as collateral, if any, are
identified as such in the Schedule of Investments.
58 Pioneer High Income Trust | Semiannual Report | 9/30/19
Financial instruments subject to an enforceable master netting agreement, such
as an ISDA Master Agreement, have been offset on the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the
Trust as of September 30, 2019.
---------------------------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
---------------------------------------------------------------------------------------------------------------
Bank of America NA $ 60,614 $ (4,084) $ -- $ -- $56,530
Citibank NA -- -- -- -- --
Goldman Sachs
International 5,431 (1,630) -- -- 3,801
HSBC Bank USA NA 232 -- -- -- 232
State Street Bank &
Trust Co. 36,533 (30,879) -- -- 5,654
---------------------------------------------------------------------------------------------------------------
Total $102,810 $(36,593) $ -- $ -- $66,217
===============================================================================================================
|
-----------------------------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Liabilities (c)
-----------------------------------------------------------------------------------------------------------------
Bank of America NA $ 4,084 $ (4,084) $ -- $ -- $ --
Citibank NA 110,334 -- -- (110,334) --
Goldman Sachs
International 1,630 (1,630) -- -- --
HSBC Bank USA NA -- -- -- -- --
State Street Bank &
Trust Co. 30,879 (30,879) -- -- --
-----------------------------------------------------------------------------------------------------------------
Total $146,927 $(36,593) $ -- $(110,334) $ --
=================================================================================================================
|
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
5. Additional Disclosures about Derivative Instruments and Hedging Activities
The Trust's use of derivatives may enhance or mitigate the Trust's exposure to
the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Trust.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Pioneer High Income Trust | Semiannual Report | 9/30/19 59
Equity risk relates to the fluctuations in the value of financial instruments
as a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange rate risk), whether caused by factors specific to
an individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at September
30, 2019, was as follows:
------------------------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Rate Risk Risk Risk
------------------------------------------------------------------------------------------------------------------
Assets:
Options
purchased* $ -- $ -- $60,614 $ -- $ --
Net unrealized
appreciation on
forward foreign
currency contracts -- -- 5,886 -- --
------------------------------------------------------------------------------------------------------------------
Total Value $ -- $ -- $66,500 $ -- $ --
==================================================================================================================
|
------------------------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Rate Risk Risk Risk
------------------------------------------------------------------------------------------------------------------
Liabilities:
Written options
outstanding $ -- $ -- $4,084 $ -- $ --
Swap contracts,
at value 18,685 394,458 -- -- --
------------------------------------------------------------------------------------------------------------------
Total Value $18,685 $394,458 $4,084 $ -- $ --
==================================================================================================================
|
* Reflects the market value of purchased option contracts (see Note 1H).
These amounts are included in investment in unaffiliated issuers, at
value, on the Statement of Assets and Liabilities.
60 Pioneer High Income Trust | Semiannual Report | 9/30/19
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at September 30, 2019 was as follows:
------------------------------------------------------------------------------------------------------------------
Statement of Operations
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Rate Risk Risk Risk
------------------------------------------------------------------------------------------------------------------
Net realized gain
(loss) on:
Options purchased* $ -- $ -- $ 31,767 $ -- $ --
Written options -- -- 167,136 -- --
Forward foreign
currency contracts -- -- (124,497) -- --
Swap contracts 118,003 55,815 -- -- --
------------------------------------------------------------------------------------------------------------------
Total Value $ 118,003 $ 55,815 $ 74,406 $ -- $ --
==================================================================================================================
Change in net
unrealized
appreciation
(depreciation) on:
Options purchased** $ -- $ -- $ (97,832) $ -- $ --
Written options -- -- (130,683) -- --
Forward foreign
currency contracts -- -- 18,371 -- --
Swap contracts (269,884) (178,189) -- -- --
------------------------------------------------------------------------------------------------------------------
Total Value $(269,884) $(178,189) $(112,312) $ -- $ --
==================================================================================================================
|
* Reflects the net realized gain (loss) on purchased option contracts (see
Note 1H). These amounts are included in net realized gain (loss) on
investments in unaffiliated issuers, on the Statement of Operations.
** Reflects the change in net unrealized appreciation (depreciation) on
purchased option contracts (see Note 1H). These amounts are included in
change in net unrealized appreciation (depreciation) on Investments in
unaffiliated issuers, on the Statement of Operations.
6. Trust Shares
There are an unlimited number of shares of beneficial interest authorized.
Transactions in shares of beneficial interest for the six months ended
September 30, 2019 and the year ended March 31, 2019 were as follows:
----------------------------------------------------------------------------------------------
9/30/19 3/31/19
----------------------------------------------------------------------------------------------
Shares outstanding at beginning of period 29,231,771 29,231,771
----------------------------------------------------------------------------------------------
Shares outstanding at end of period 29,231,771 29,231,771
==============================================================================================
|
Pioneer High Income Trust | Semiannual Report | 9/30/19 61
7. Credit Agreement
The Trust has entered into a Revolving Credit Facility (the "Credit Agreement")
agreement with Sumitomo Mitsui Banking Corporation. Loans under the Credit
Agreement are offered at a daily rate equal to the U.S. one month LIBOR rate
plus 1.10%. There is no fixed borrowing limit.
At September 30, 2019, the Trust had a borrowing outstanding under the Credit
Agreement totaling $125,000,000. The interest rate charged at September 30,
2019 was 3.39%. During the six months ended September 30, 2019, the average
daily balance was $125,000,000 at an average interest rate of 3.52%. Interest
expense of $2,200,300 in connection with the Credit Agreement is included in
the Statement of Operations.
The Trust is required to fully collateralize its outstanding loan balance as
determined by Credit Suisse. Pledged assets are held in a segregated account
and are denoted on the Schedule of Investments.
The Trust is required to maintain 300% asset coverage with respect to amounts
outstanding under the Credit Agreement. Asset coverage is calculated by
subtracting the Trust's total liabilities not including any bank loans and
senior securities, from the Trust's total assets and dividing such amount by
the principal amount of the borrowing outstanding.
8. Subsequent Events
A monthly dividend was declared on October 3, 2019 from undistributed and
accumulated net investment income of $0.0675 per share payable October 31,
2019, to shareowners of record on October 17, 2019.
62 Pioneer High Income Trust | Semiannual Report | 9/30/19
Approval of Investment Management Agreement
Amundi Pioneer Asset Management, Inc. ("APAM") serves as the investment adviser
to Pioneer High Income Trust (the "Trust") pursuant to an investment management
agreement between APAM and the Trust. In order for APAM to remain the
investment adviser of the Trust, the Trustees of the Trust must determine
annually whether to renew the investment management agreement for the Trust.
The contract review process began in January 2019 as the Trustees of the Trust
agreed on, among other things, an overall approach and timeline for the
process. Contract review materials were provided to the Trustees in March 2019,
July 2019 and September 2019. In addition, the Trustees reviewed and discussed
the Trust's performance at regularly scheduled meetings throughout the year,
and took into account other information related to the Trust provided to the
Trustees at regularly scheduled meetings, in connection with the review of the
Trust's investment management agreement.
In March 2019, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment management agreement, and reviewed and
discussed the qualifications of the investment management teams for the Trust,
as well as the level of investment by the Trust's portfolio managers in the
Trust. In July 2019, the Trustees, among other things, reviewed the Trust's
management fees and total expense ratios, the financial statements of APAM and
its parent companies, profitability analyses provided by APAM, and analyses
from APAM as to possible economies of scale. The Trustees also reviewed the
profitability of the institutional business of APAM and APAM's affiliate,
Amundi Pioneer Institutional Asset Management, Inc. ("APIAM" and, together with
APAM, "Amundi Pioneer"), as compared to that of APAM's fund management
business, and considered the differences between the fees and expenses of the
Trust and the fees and expenses of APAM's and APIAM's institutional accounts,
as well as the different services provided by APAM to the Trust and by APAM and
APIAM to the institutional accounts. The Trustees further considered contract
review materials, including additional materials received in response to the
Trustees' request, in September 2019.
At a meeting held on September 17, 2019, based on their evaluation of the
information provided by APAM and third parties, the Trustees of the Trust,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment management agreement for another year. In approving
the renewal of the investment management agreement, the Trustees
Pioneer High Income Trust | Semiannual Report | 9/30/19 63
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by APAM to the Trust, taking into account the investment
objective and strategy of the Trust. The Trustees also reviewed APAM's
investment approach for the Trust and its research process. The Trustees
considered the resources of APAM and the personnel of APAM who provide
investment management services to the Trust. They also reviewed the amount of
non-Trust assets managed by the portfolio managers of the Trust. They
considered the non-investment resources and personnel of APAM that are involved
in APAM's services to the Trust, including APAM's compliance, risk management,
and legal resources and personnel. The Trustees noted the substantial attention
and high priority given by APAM's senior management to the Pioneer Fund
complex.
The Trustees considered that APAM supervises and monitors the performance of
the Trust's service providers and provides the Trust with personnel (including
Trust officers) and other resources that are necessary for the Trust's business
management and operations. The Trustees also considered that, as administrator,
APAM is responsible for the administration of the Trust's business and other
affairs. The Trustees considered the fees paid to APAM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by APAM to the Trust were
satisfactory and consistent with the terms of the investment management
agreement.
Performance of the Trust
In considering the Trust's performance, the Trustees regularly review and
discuss throughout the year data prepared by APAM and information comparing the
Trust's performance with the performance of its peer group of funds, as
classified by Morningstar, Inc. (Morningstar), and the performance of the
Trust's benchmark index. They also discuss the Trust's performance with APAM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the investment
management agreement.
64 Pioneer High Income Trust | Semiannual Report | 9/30/19
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Trust
in comparison to the management fees and expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party. The peer
group comparisons referred to below are organized in quintiles. Each quintile
represents one-fifth of the peer group. In all peer group comparisons referred
to below, first quintile is most favorable to the Trust's shareowners.
The Trustees considered that the Trust's management fee (based on managed
assets) for the most recent fiscal year was in the first quintile relative to
the management fees paid by other funds in its Strategic Insight peer group for
the comparable period. The Trustees considered that the expense ratio (based on
managed assets) of the Trust's common shares for the most recent fiscal year
was in the first quintile relative to its Strategic Insight peer group for the
comparable period.
The Trustees reviewed management fees charged by APAM and APIAM to
institutional and other clients, including publicly offered European funds
sponsored by APAM's affiliates, unaffiliated U.S. registered investment
companies (in a sub-advisory capacity), and unaffiliated foreign and domestic
separate accounts. The Trustees also considered APAM's costs in providing
services to the Trust and APAM's and APIAM's costs in providing services to the
other clients and considered the differences in management fees and profit
margins for fund and non-fund services. In evaluating the fees associated with
APAM's and APIAM's client accounts, the Trustees took into account the
respective demands, resources and complexity associated with the Trust and
other client accounts. The Trustees noted that, in some instances, the fee
rates for those clients were lower than the management fee for the Trust and
considered that, under the investment management agreement with the Trust, APAM
performs additional services for the Trust that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Trust's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Trust is subject. The
Trustees also considered the entrepreneurial risks associated with APAM's
management of the Trust.
The Trustees concluded that the management fee payable by the Trust to APAM was
reasonable in relation to the nature and quality of the services provided by
APAM.
Pioneer High Income Trust | Semiannual Report | 9/30/19 65
Profitability
The Trustees considered information provided by APAM regarding the
profitability of APAM with respect to the advisory services provided by APAM to
the Trust, including the methodology used by APAM in allocating certain of its
costs to the management of the Trust. The Trustees also considered APAM's
profit margin in connection with the overall operation of the Trust. They
further reviewed the financial results, including the profit margins, realized
by APAM and APIAM from non-fund businesses. The Trustees considered APAM's
profit margins in comparison to the limited industry data available and noted
that the profitability of any adviser was affected by numerous factors,
including its organizational structure and method for allocating expenses. The
Trustees concluded that APAM's profitability with respect to the management of
the Trust was not unreasonable.
Economies of Scale
The Trustees considered the extent to which APAM may realize economies of scale
or other efficiencies in managing and supporting the Trust. Since the Trust is
a closed-end fund that has not raised additional capital, the Trustees
concluded that economies of scale were not a relevant consideration in the
renewal of the investment advisory agreement.
Other Benefits
The Trustees considered the other benefits that APAM enjoys from its
relationship with the Trust. The Trustees considered the character and amount
of fees paid or to be paid by the Trust, other than under the investment
management agreement, for services provided by APAM and its affiliates. The
Trustees further considered the revenues and profitability of APAM's businesses
other than the Fund business. To the extent applicable, the Trustees also
considered the benefits to the Trust and to APAM and its affiliates from the
use of "soft" commission dollars generated by the Trust to pay for research and
brokerage services.
The Trustees considered that Amundi Pioneer is the principal U.S. asset
management business of Amundi, which is one of the largest asset managers
globally. Amundi's worldwide asset management business manages over $1.6
trillion in assets (including the Pioneer Funds). The Trustees considered that
APAM's relationship with Amundi creates potential opportunities for APAM, APIAM
and Amundi that derive from APAM's relationships with the Trust, including
Amundi's ability to market the services of APAM globally. The Trustees noted
that APAM has access to additional research and portfolio management
capabilities as a result of its relationship with Amundi and Amundi's enhanced
global presence that may contribute to an increase in the resources available
to APAM. The Trustees considered that APAM and the
66 Pioneer High Income Trust | Semiannual Report | 9/30/19
Trust receive reciprocal intangible benefits from the relationship, including
mutual brand recognition and, for the Trust, direct and indirect access to the
resources of a large global asset manager. The Trustees concluded that any such
benefits received by APAM as a result of its relationship with the Trust were
reasonable.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including the Independent Trustees, concluded that the investment
management agreement for the Trust, including the fees payable thereunder, was
fair and reasonable and voted to approve the proposed renewal of the investment
management agreement.
Pioneer High Income Trust | Semiannual Report | 9/30/19 67
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman Lisa M. Jones, President and
John E. Baumgardner, Jr. Chief Executive Officer
Benjamin M. Friedman Mark E. Bradley, Treasurer and
Margaret B.W. Graham Chief Financial and
Lisa M. Jones Accounting Officer
Lorraine H. Monchak Christopher J. Kelley, Secretary and
Marguerite A. Piret Chief Legal Officer
Fred J. Ricciardi
Kenneth J. Taubes
Investment Adviser and Administrator
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Legal Counsel
Morgan, Lewis & Bockius LLP
Transfer Agent
American Stock Transfer & Trust Company
|
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll free number (1-800-710-0935). 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.amundipioneer.com/us. This information is also available on
the Securities and Exchange Commission's web site at www.sec.gov.
68 Pioneer High Income Trust | Semiannual Report | 9/30/19
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
|
For additional information, please contact your investment advisor or visit our
web site www.amundipioneer.com/us.
The Trust files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year as
an exhibit to its reports on Form N-PORT. Shareowners may view the filed Form
N-PORT by visiting the Commission's web site at https://www.sec.gov.
[LOGO] Amundi Pioneer
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com/us
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
[C] 2019 Amundi Pioneer Asset Management 19432-13-1119