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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21654
Pioneer Floating Rate Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: November 30
Date of reporting period: December 1, 2010 through May 31, 2011
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer Floating
Rate Trust
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Semiannual Report | May 31, 2011
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Ticker Symbol: PHD
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Schedule of Investments 12
Financial Statements 38
Financial Highlights 41
Notes to Financial Statements 43
Trustees, Officers and Service Providers 53
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 1
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President's Letter
Dear Shareowner,
The U.S. economy is moving forward on a slow path to recovery. We believe the
theme for the economy in 2011 may be modest but positive growth. The private
sector is showing signs of slow but steady improvement, led by higher capital
investment, solid exports, improved consumption, and gradually rising demand
for consumer auto loans and commercial loans. At the same time, the risks to a
steady recovery remain substantial, including the continued delays in the
housing sector's recovery, rising oil prices, and the fiscal drag of U.S.
federal and state budget cuts. We are concerned about the long-term risk of
inflation in an environment of accommodative Fed policy, continued low nominal
and "real" interest rates and rising commodity prices.
The recovery process may occur more slowly than many would like, and will
almost certainly be accompanied by short-term market swings. But our investment
professionals are finding good opportunities to invest. Through the first
quarter of 2011, although bonds remained popular with investors, we believed
there was value in the equity market. In both equity and bond markets, we are
finding good opportunities to invest using the same disciplined approach we
have used at Pioneer since 1928, which is to focus on identifying undervalued
individual securities with the greatest potential for success, carefully
weighing risk against reward. Our teams of investment professionals continually
monitor and analyze the relative valuations of different sectors and securities
globally to help build portfolios that we believe can help you achieve your
investment goals.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. The strategy has generally performed well for many
investors. For instance, bond markets certainly rewarded investors for most of
2010, even though equity valuations seemed quite reasonable and were
inexpensive relative to bonds and compared with historic levels -- conditions
which represented potentially good value for long-term investors.
Our advice, as always, is to work closely with a trusted financial advisor to
discuss your goals and work together to develop an investment strategy that
meets your individual needs. There is no single best strategy that works for
every investor.
2 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
www.pioneerinvestments.com. We greatly appreciate your trust in us and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of the opinion of Trust management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 3
Portfolio Management Discussion | 5/31/11
Floating-rate securities delivered strong returns during the six months ended
May 31, 2011, as new money entering the market drove up prices of floating-rate
loans. In the following interview, Jonathan Sharkey, vice president and
portfolio manager at Pioneer, discusses the factors that affected the
performance of Pioneer Floating Rate Trust during the six months ended May 31,
2011. Mr. Sharkey, a member of Pioneer's fixed-income team, is responsible for
the daily management of the Trust.
Q How did the Trust perform over the six months ended May 31, 2011?
A For the six-month period ended May 31, 2011, Pioneer Floating Rate Trust
returned 10.50% at net asset value and 11.57% at market price, while the
Trust's benchmark, the Barclays Capital U.S. High Yield Loans Index (the
Barclays Index), returned 4.49 %. Unlike the Trust, the benchmark is not
leveraged. Over the same six-month period ended May 31, 2011, the average
return (at market price) of the 29 closed end funds in Lipper's Closed-End
Loan Participation Funds (Leveraged) category was 6.30%.
As of May 31, 2011, the Trust was selling at a premium of market price to
net asset value of 6.3%. Unlike open-ended funds, the market prices of
closed end funds go up and down based on supply and demand, irrespective of
a closed end fund's net asset value per share. It is not unusual to find
closed-end funds trading at a discount or premium to their net asset value.
In May 2011, the Trust increased the dividend rate 6.9%. The Trust was able
to raise the dividend rate because the default rate on loans declined and
because a number of lower-yielding loans in the portfolio were replaced
with higher-yielding loans.
On May 31, 2011, the Trust's 30-day SEC yield was 8.98%.
Q What was the investment environment like during the six-month period ended
May 31, 2011?
A Early in the period, amid reports of a strengthening economy and rising
corporate profits, yield-conscious investors gained confidence in credit
risk and the possibility of higher interest rates and poured record amounts
of new money into the bank-loan market. In December 2010, a new record for
money inflows into the market was set, with investors putting nearly $3
billion worth of new funds into bank loans. The record did not stand for
very long, however, as about $6 billion of new money came into the market
in January 2011 and another $8 billion was invested in February. The large
volume of the new money drove up prices in the secondary market. At the
same time, new issues were offered to investors. Eventually, companies that
4 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
had obtained bank loans to finance their businesses began to refinance
their debt to take advantage of the strong demand and to obtain new loans
at lower interest rates, with more favorable terms. Between March and May
2011, the bank-loan market became slightly more volatile. In March,
concerns about Europe's sovereign debt problems and uncertainty regarding
the effects of the earthquake and tsunami in Japan on the global economy
resulted in a slight pullback in bank loans, but the pullback quickly
abated. The bank-loan market rallied again in April. In May, unease about
Europe's debt problems, concerns about the potential for a softer U.S.
economic recovery and surging loan supply caused the bank-loan market once
again to moderate. In addition, slower inflows into high-yield funds and
tighter loan spreads reduced the appetite for loans among high-yield
investors who cross over and invest in loans. In general, during the six
months ended May 31, 2011, the average price on bank loans rose and spreads
compressed as the "risk-on" demand from both loan and high-yield funds
resulted in outperformance by lower-quality loans over higher-quality
loans.
Q How did you manage the Trust in that environment over the six months ended
May 31, 2011?
A We employed a barbell strategy in managing the Trust during the period,
hedging more volatile investments in commodity companies with investments
in more defensive securities, such as those in the health care and consumer
staples industries. We reduced the Trust's exposure to broadcasting and
increased its investments in finance and insurance companies, which
included floating-rate catastrophe bonds. The Trust's position in CCC-rated
securities declined during the six-month period as a result of
refinancings, restructurings and upgrades.
Q What factors most affected the Trust's performance over the six months ended
May 31, 2011?
A The average credit quality of the Trust's portfolio was in line with that of
its benchmark the Barclays Index, but the Trust's heavier concentration in
lower-quality securities provided the strongest results over the period.
Investments in collateral loan obligations (CLOs) also helped boost the
Trust's performance. Among individual securities, Infor Global, a software
company, aided the Trust's return as the company refinanced portions of its
outstanding loans and pursued a new acquisition. Spirit Finance, a
diversified strip mall real estate investment trust (REIT), was a
noteworthy contributor, as the firm's potential for an IPO increased in an
improving commercial real estate market. Fenwal, a health care supply
company, also figured prominently in the Trust's return, as did SMG H5, an
Australian broadcasting company that made prepayments on its loans with
proceeds from the addition of new equity holders. The effect of leverage
also was instrumental in the Trust's outperformance relative to the
Barclays Index.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 5
There were some disappointments in the Trust's portfolio during the six
months ended May 31, 2011. Muteki's floating-rate catastrophe bonds lost
value in the wake of the earthquake and tsunami in Japan. In health care,
CCS Medical and TCD Pharma fared poorly. Broadstripe LLC, a regional cable
company that remains in bankruptcy, saw its value diminish over the period
as it became clear that potential suitors may offer a lower price than
originally expected. In general, most of the Trust's holdings that declined
during the six-month period ended May 31, 2011, were loans that had traded
at a premium and were refinanced without call protection.
Q Could you describe how leverage is used in managing the Trust?
A Leverage is used in an effort to increase the yield of the Trust. Leverage
was provided through the issuance of auction-rate preferred shares. The
proceeds from the issuance of auction-rate preferred shares were used to
increase the amount of assets available to be invested in additional
portfolio securities. To the extent that dividend rates payable on
auction-rate preferred shares are generally lower than the returns produced
by investing in additional portfolio securities, the Trust's yield will be
greater than what it would have been had the Trust's portfolio not been
leveraged.
Q How did the level of leverage employed by the Trust change over the six
months ended May 31, 2011?
A At the end of the Trust's fiscal year on May 31, 2011, 35.7% of the Trust's
total managed assets were financed by leverage, compared with 37.3% of the
Trust's total managed assets being financed by leverage at the start of the
Trust's fiscal year (December 1, 2010).
Q Did the Trust invest in any derivative securities over the six months ended
May 31, 2011, and if so, did they have a material impact on the Trust's
performance?
A The Trust did not invest in any derivative securities over the six months
ended May 31, 2011. However, on occasion, in times of currency volatility,
the Trust may enter into foreign exchange derivatives (swaps) to mitigate
foreign exchange risk for any future interest payments from an offshore
borrower.
Q What is your investment outlook?
A We are two years into the economic recovery; and in May 2011, the default
rate on floating-rate bank loans fell to a 38-month low. As the economy
continues to recover, even though at a slower rate than originally thought,
the default rate on bank loans should remain low. That scenario should
provide a measure of net asset value (NAV) stability in the asset class. We
believe the soft patch we have been experiencing with mixed economic
indicators may push out any interest-rate increases by the U.S. Federal
Reserve
6 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
System. Over the past 18 months in a low-interest-rate environment, dollar
prices on loans have risen, fueling strong returns. We do not believe that
investors should expect those types of returns in the future. While bank
loans may provide some capital appreciation, we think the bulk of returns
are likely to be generated by higher short-term interest rates, which would
lift yields offered by floating-rate loans. Such a development could be a
positive for the Trust.
Note to Shareowners: Effective March 1, 2011, the Trust's benchmark was
changed from the Credit Suisse (CS) Leveraged Loan Index to the Barclays
Capital U.S. High Yield Loans Index, because the Trust's adviser believes
that the Barclays Capital U.S. High Yield Loans Index is a more appropriate
floating-rate bank-loan index for the Trust. For comparison purposes,
Pioneer will continue to report performance for the Trust's former
benchmark, the CS Leveraged Loan Index, over a 1-year period (two reporting
cycles), including this semiannual report and the Trust's November 30,
2011, annual report.
Please refer to the Schedule of Investments on pages 12-37 for a full listing
of Trust securities.
The Trust may invest in derivative securities, which may include futures and
options. These types of instruments can increase price fluctuation.
The Trust is not limited in the percentage of its assets that may be invested
in floating-rate senior loans and other securities deemed to be illiquid.
Illiquid securities may be difficult to sell at a fair price at times when the
Trust believes it is desirable to do so and their market price is generally
more volatile than that of more liquid securities. Illiquid securities may be
difficult to value, and investment of the Trust's assets in illiquid securities
may restrict the Trust's ability to take advantage of market opportunities.
The Trust currently uses leverage through the issuance of preferred shares. The
Trust also is authorized to borrow from banks and to issue debt securities,
which are other forms of leverage. Leverage creates significant risks,
including the risk that the Trust's income or capital appreciation will not be
sufficient to cover the cost of leverage, which may adversely affect the return
for the holders of common shares. Since February of 2008, regularly scheduled
auctions for the Trust's preferred shares have failed and preferred shareowners
have not been able to sell their shares at auction. The Board of Trustees of
the Trust has considered, and continues to consider, this issue.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. The Trust may invest in securities of issuers that
are in default or that are in bankruptcy.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates and economic and political
conditions.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 7
The Trust is required to maintain certain regulatory and rating agency asset
coverage requirements in connection with its outstanding preferred shares. In
order to maintain required asset coverage levels, the Trust may be required to
alter the composition of its investment portfolio or take other actions, such
as redeeming preferred shares with the proceeds from portfolio transactions, at
what might be inopportune times in the market. Such actions could reduce the
net earnings or returns to holders of the Trust's common shares over time.
These risks may increase share price volatility.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of the opinion of the Trust's adviser as of the date of this report.
These statements should not be relied upon for any other purposes.
8 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
Portfolio Summary | 5/31/11
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Senior Secured Loans 85.2%
Common Stock 5.2% Corporate Bonds 7.4%
Collateralized Mortgage Obligations 1.4%
Rights/Warrants 0.6%
Convertible Preferred Stock 0.2%
Quality Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on Standard & Poor's
ratings (S&P).)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
BBB 3.3%
BB 32.3%
B 42.1%
CCC 3.0%
NR* 19.3%
Ratings are ordered highest to lowest in portfolio. Based on S&P's measures,
AAA (highest possible rating) through BBB are considered investment grade; BB
or lower ratings are considered noninvestment grade. Some bonds and loans may
not be rated.
The portfolio is actively managed and current holdings may be different.
* These securities are judged to be similar but slightly lower in quality than
the average of the total investment portfolio.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)**
1. Delphi DIP Holdco LLP, Class B Subscription 3.97%
--------------------------------------------------------------------------------------------
2. SMG H5 Pty, Ltd., Facility Term Loan A, 6.911%, 12/24/12 2.85
--------------------------------------------------------------------------------------------
3. Univision Communications, Inc., Extended First Lien Term Loan, 4.441%, 3/31/17 1.84
--------------------------------------------------------------------------------------------
4. Azithromycin Royalty Sub LLC, 16.0%, 5/15/19 (144A) 1.70
--------------------------------------------------------------------------------------------
5. Broadstripe LLC, First Lien Term Loan, 0.0%, 6/30/11 1.67
--------------------------------------------------------------------------------------------
6. Cequel Communications LLC, Term Loan, 2.209%, 11/5/13 1.50
--------------------------------------------------------------------------------------------
7. Celtic Pharma Phinco B.V., 17.0%, 6/15/12 (144A) 1.32
--------------------------------------------------------------------------------------------
8. Level 3 Financing, Inc., Tranche A Term Loan, 2.553%, 3/13/14 1.25
--------------------------------------------------------------------------------------------
9. MetroPCS Wireless, Inc., Tranche B-2 Term Loan, 4.071%, 11/3/16 1.10
--------------------------------------------------------------------------------------------
10. Ford Motor Co., Tranche B-1 Term Loan, 2.95%, 12/15/13 1.03
--------------------------------------------------------------------------------------------
** This list excludes derivative instruments. The portfolio is actively
managed, and current holdings may be different. The holdings listed should
not be considered recommendations to buy or sell any security listed.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 9
Prices and Distributions | 5/31/11
Market Value per Common Share
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5/31/11 11/30/10
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$14.20 $13.16
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Premium 6.13% 5.11%
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Net Asset Value per Common Share
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--------------------------------------------------------------------------------
5/31/11 11/30/10
--------------------------------------------------------------------------------
$13.38 $12.52
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Distributions per Common Share: 12/1/10-5/31/11
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--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
$0.44 $ -- $ --
--------------------------------------------------------------------------------
Yields
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
5/31/11 11/30/10
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Distribution Yield at Market Price 6.55% 6.71%
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Distribution Yield at Net Asset Value 6.95% 7.05%
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30-day SEC Yield 8.98% 9.22%
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Past performance data quoted represents past performance, which is no guarantee
of future results.
10 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
Performance Update | 5/31/11
Investment Returns
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The mountain chart on the right shows the change in market value, including
reinvestment of dividends and distributions, of a $10,000 investment made in
common shares of Pioneer Floating Rate Trust, compared to that of the Credit
Suisse (CS) Leveraged Loan Index, an index of senior secured U.S. dollar
denominated loans, and the Barclays Capital U.S. High Yield Loans Index, which
measures the performance of high-yield loans.
Cumulative Total Returns
(As of May 31, 2011)
---------------------------------------------------------
Net Asset Market
Value (NAV) Value
---------------------------------------------------------
Life-of-Trust
(12/28/04) 32.35% 33.86%
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5 Years 17.68 31.66
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1 Year 18.96 25.21
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Floating CS Leveraged Barclays Capital
Rate Trust Loan Index U.S. High Yield Loans Index
12/04 10,000 10,000 10,000
5/05 8,945 10,126 10,000
5/06 10,167 10,829 10,214
5/07 12,330 11,656 10,998
5/08 10,156 11,279 10,777
5/09 6,852 10,023 9,860
5/10 10,691 12,283 12,162
5/11 13,386 13,486 13,314
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV, due to such factors as interest rate
changes, and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Closed-end funds, unlike open-end funds, are not continuously offered. There is
a one-time public offering and, once issued, shares of closed-end funds are
sold in the open market through a stock exchange and frequently trade at prices
lower than their NAV. NAV per common share is total assets less total
liabilities, which includes preferred shares, divided by the number of common
shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends
are assumed to be reinvested at prices obtained under the Trust's dividend
reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions.
The CS Leveraged Loan Index is a representative index of tradeable, senior,
secured U.S. dollar-denominated loans. The index began in January 1992.
Comparisons for this index begin in 2004. The Barclays Capital U.S. High Yield
Loans Index measures the performance of high-yield loans. Comparisons for this
index begin in 2006. Index returns are calculated monthly, assume reinvestment
of dividends and, unlike Trust returns, do not reflect any fees, expenses or
sales charges. The indices do not employ leverage. You cannot invest directly
in an index.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 11
Schedule of Investments | 5/31/11 (unaudited)
-------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
COLLATERALIZED LOAN
OBLIGATIONS -- 2.2% of Net Assets
BANKS -- 2.2%
Diversified Banks -- 0.7%
1,000,000(a)(b)(c) BB+/B1 Primus, Ltd., 2007-2A D,
2.678%, 7/15/21 (144A) $ 749,750
1,000,000(a)(b) B+/B2 Rampart, Ltd., 2006-1A,
3.826%, 4/18/21 (144A) 824,300
951,288(a)(b) CCC-/Caa3 Stanfield McLaren, Ltd., 2007-1A B2L, 4.755%,
2/27/21 (144A) 735,165
------------
$ 2,309,215
-------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.5%
1,000,000(a)(b) B+/B1 ACA, Ltd., 2007-1A D, 2.628%, 6/15/22 (144A) $ 818,430
1,000,000(a)(b) BBB-/B2 Goldman Sachs Asset Management Plc, 2007-1A
D, 3.023%, 8/1/22 (144A) 852,950
1,000,000(a)(b) BBB/Ba2 Gulf Stream Sextant, Ltd., 2007-1A D,
2.709%, 6/17/21 (144A) 841,590
1,000,000(a)(b) B/Caa3 Landmark CDO, Ltd., 2007-9A E,
3.778%, 4/15/21 (144A) 855,590
2,000,000(a)(b) BB+/Ba3 Stone Tower, Ltd., 2007-6A C,
1.623%, 4/17/21 (144A) 1,533,720
------------
$ 4,902,280
------------
Total Banks $ 7,211,495
-------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED LOAN OBLIGATIONS
(Cost $6,475,904) $ 7,211,495
-------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 132.4% of Net Assets*
ENERGY -- 3.4%
Coal & Consumable Fuels -- 0.3%
1,000,000 NR/NR PT Bumi Resources Tbk, Term Loan,
11.206%, 8/7/13 $ 1,000,000
-------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.5%
1,548,734 BBB/Baa2 Glenn Pool Oil & Gas Trust I, Term Loan,
0.0%, 5/12/16 $ 1,552,606
-------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.8%
1,100,000 NR/B2 Big West Oil LLC, Term Loan, 7.0%, 3/31/16 $ 1,114,666
987,517(a)(d)(e) NR/NR TARH E&P Holdings LP, First Lien Second Out
Term Loan, 5.83%, 6/29/12 987,517
441,456(a)(d)(e) NR/NR TARH E&P Holdings L.P., Second Lien Term Loan,
0.36%, 6/29/12 419,384
------------
$ 2,521,567
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
12 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 1.8%
2,337,013 BB-/Ba3 Aquilex Holdings LLC, Term Loan, 6.0%, 4/1/16 $ 2,339,935
3,661,765 B+/B2 Frac Tech Services, Delayed Draw Term Loan,
2.5%, 5/16/16 3,672,552
------------
$ 6,012,487
------------
Total Energy $ 11,086,660
------------------------------------------------------------------------------------------------------
MATERIALS -- 5.8%
Aluminum -- 0.7%
238,399 B+/Ba2 Noranda Aluminum Acquisition Corp., Term Loan
B, 1.941%, 5/18/14 $ 236,413
2,244,375 BB-/NR Novelis, Inc., Term Loan, 3.75%, 3/10/17 2,258,752
------------
$ 2,495,165
------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 1.5%
522,680 BBB-/Ba1 Celanese US Holdings LLC, Dollar Term Loan C,
3.303%, 10/31/16 $ 525,653
1,343,250 B/B1 General Chemical Corp., New Tranche B Term
Loan, 5.002%, 10/6/15 1,351,085
156,281 BB-/NR Huntsman International LLC, Extended Term Loan
B, 2.773%, 4/19/17 154,458
57,318 BB-/Ba2 Huntsman International LLC, New Dollar Term
Loan B, 1.742%, 4/19/14 56,602
1,219,853 BB+/Ba1 Solutia, Inc., Term Loan 1, 3.5%, 8/1/17 1,225,844
1,466,325 B/B2 Univar, Inc., Term Loan B, 5.0%, 6/30/17 1,468,681
------------
$ 4,782,323
------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.2%
535,000 BB-/B1 Walter Energy, Inc., Term Loan B, 4.0%, 4/2/18 $ 537,584
------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 0.1%
227,895 B/Ba3 Bway Holding Co., Replacement Term Loan B,
4.503%, 2/23/18 $ 228,987
20,233 B/Ba3 Bway Holding Co., Replacement Term Loan C,
4.503%, 2/23/18 20,347
------------
$ 249,334
------------------------------------------------------------------------------------------------------
Paper Packaging -- 1.1%
768,901 B+/B1 Graham Packaging Co. LP, Term Loan C,
6.75%, 4/5/14 $ 772,423
1,358,175 B+/B1 Graham Packaging Co. LP, Term Loan D,
6.0%, 9/23/16 1,365,339
1,537,213 BB+/Ba3 Graphic Packaging International, Inc., Incremental
Term Loan, 3.043%, 5/16/14 1,538,847
------------
$ 3,676,609
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 13
Schedule of Investments | 5/31/11 (unaudited) (continued)
------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
Paper Products -- 0.6%
1,995,000 B/B1 Exopack LLC/Cello-Foil Products, Inc.,
Term Loan B, 0.0%, 5/31/17 $ 1,985,025
------------------------------------------------------------------------------------------------------
Precious Metals & Minerals -- 0.2%
625,000 BB-/B1 Fairmount Minerals, Ltd., Tranche B Term Loan,
5.25%, 3/15/17 $ 627,864
------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 1.4%
4,000,000 NR/NR Chemtura Corp., Facility Term Loan,
5.5%, 8/29/16 $ 4,032,500
700,000 BB+/Ba1 Nalco Co., Tranche B-1 Term Loan,
0.0%, 10/5/17 706,375
------------
$ 4,738,875
------------
Total Materials $ 19,092,779
------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 8.2%
Aerospace & Defense -- 3.4%
757,268 B/B2 DAE Aviation Holdings, Inc., Tranche B-1 Term
Loan, 5.28%, 7/31/14 $ 761,055
1,000,759 BB/Ba1 DynCorp International, Inc., Term Loan,
6.25%, 7/7/16 1,009,723
1,653,268 BB/B1 Hunter Defense Technologies, Inc., Term Loan,
3.560%, 8/22/14 1,620,202
1,753,206(d) B/NR IAP Worldwide Services, Inc., First Lien Term Loan,
8.25%, 12/30/12 1,753,937
1,496,250 B+/Ba3 SI Organization, Inc., New Tranche B Term Loan,
4.5%, 11/22/16 1,510,128
1,000,000 NR/B3 Sotera Defense Solutions, Inc., Term Loan B,
7.0%, 4/21/17 1,002,500
729,502 B/B2 Standard Aero, Ltd., Tranche B-2 Term Loan,
5.28%, 7/31/14 733,150
998,229(d) BB/Ba2 TASC, Inc., New Tranche B Term Loan,
4.5%, 12/18/15 1,003,090
1,870,312 BB-/Ba2 TransDigm, Inc., First Lien Term Loan,
4.0%, 2/14/17 1,881,501
------------
$ 11,275,286
------------------------------------------------------------------------------------------------------
Building Products -- 2.2%
1,725,000 BB-/B1 Armstrong World Industries, Inc., Term Loan B-1,
4.0%, 3/10/18 $ 1,735,602
1,995,000 B/B2 CPG International I, Inc., Term Loan,
6.0%, 2/18/17 2,005,599
1,055,085 B+/B1 Custom Building Products, Inc., Term Loan,
5.75%, 3/19/15 1,061,679
1,318,375 BB-/B2 Excelitas Technologies Corp., Term Loan B,
6.0%, 11/29/16 1,324,967
The accompanying notes are an integral part of these financial statements.
14 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
-------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Building Products -- (continued)
1,149,225 B+/B1 Goodman Global, Inc., Initial First Lien Term Loan,
5.75%, 10/28/16 $ 1,159,995
------------
$ 7,287,842
-------------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.4%
1,214,218 BBB-/Ba1 URS Corp., Tranche B Term Loan,
2.441%, 5/15/13 $ 1,214,970
-------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.8%
1,485,253 BB+/Ba2 Bucyrus International, Inc., Tranche C U.S. Dollar
Term Loan, 4.25%, 2/19/16 $ 1,491,510
1,015,000 BB/Ba2 Manitowoc Co., Inc., Term Loan B,
4.25%, 11/13/17 1,020,920
------------
$ 2,512,430
-------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.9%
2,049,863 B+/B1 Pelican Products, Inc., Term Loan, 5.0%, 3/7/17 $ 2,058,404
891,000 B+/B1 Scotsman Industries, Inc., Term Loan,
5.758%, 4/30/16 895,455
------------
$ 2,953,859
-------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.1%
344,454 BB/Ba2 Tomkins LLC, Term Loan B-1, 4.25%, 9/29/16 $ 345,997
-------------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.4%
1,297,895 B+/B1 Alliance Laundry Systems LLC, Term Loan,
6.25%, 9/30/16 $ 1,310,332
------------
Total Capital Goods $ 26,900,716
-------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 5.3%
Commercial Printing -- 0.4%
1,396,500 BB-/Caa1 Cenveo Corp., Facility Term Loan B,
6.25%, 12/21/16 $ 1,409,418
-------------------------------------------------------------------------------------------------------
Diversified Commercial & Professional Services -- 1.3%
957,500 BB/Ba3 Aramark Canada, Ltd., Canadian Term Loan,
2.182%, 1/26/14 $ 938,350
3,455,486 B/B2 Cydcor, Inc., First Lien Tranche B Term Loan,
9.0%, 2/5/13 3,390,695
------------
$ 4,329,045
-------------------------------------------------------------------------------------------------------
Diversified Support Services -- 1.6%
1,045,000 B+/Ba3 Allied Security Holdings LLC, First Lien Term Loan,
5.0%, 2/3/17 $ 1,050,225
1,700,000 NR/NR Infogroup, Inc., Term Loan B, 0.0%, 5/26/18 1,690,437
393,846 BB+/Baa3 Iron Mountain, Inc., Initial Term Loan,
1.719%, 4/16/14 393,846
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 15
Schedule of Investments | 5/31/11 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
Diversified Support Services -- (continued)
1,960,531 B+/Ba3 Language Line LLC, Tranche B Term Loan,
6.25%, 6/20/16 $ 1,978,504
------------
$ 5,113,012
-----------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 0.4%
1,325,000 B+/B1 Waste Industries USA, Inc., Term Loan B,
4.75%, 3/17/17 $ 1,330,781
-----------------------------------------------------------------------------------------------------
Human Resources & Employment Services -- 0.6%
1,900,000 B/B1 Nexeo Solutions LLC, Initial Loan, 5.0%, 9/8/17 $ 1,905,345
-----------------------------------------------------------------------------------------------------
Research & Consulting Services -- 0.7%
2,439,985 BB/B1 Wyle Services Corp., First Lien Term Loan,
5.75%, 3/26/17 $ 2,452,185
-----------------------------------------------------------------------------------------------------
Security & Alarm Services -- 0.3%
915,577 BB/B1 Protection One, Inc., Term Loan, 6.0%, 6/4/16 $ 920,155
------------
Total Commercial & Professional Services $ 17,459,941
-----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 2.7%
Airlines -- 1.8%
850,000 BB-/Ba3 Allegiant Travel Co., Term Loan, 5.75%, 3/10/17 $ 857,438
550,000 BB-/Ba2 Delta Airlines, Inc., New Term Loan, 4.25%,
3/7/16 548,195
1,200,000 BB-/Ba2 Delta Airlines, Inc., Term Loan, 5.5%, 4/20/17 1,191,625
3,550,000 B+/B3 US Airways Group, Inc., Term Loan,
2.694%, 3/21/14 3,272,901
------------
$ 5,870,159
-----------------------------------------------------------------------------------------------------
Trucking -- 0.9%
2,840,592(d) BB/Ba3 SIRVA Worldwide, Inc., Second Lien Term Loan,
12.0%, 5/12/15 $ 781,163
2,098,963 BB-/B1 Swift Transportation Co. LLC, Term Loan,
6.0%, 12/21/16 2,114,365
------------
$ 2,895,528
------------
Total Transportation $ 8,765,687
-----------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 5.9%
Auto Parts & Equipment -- 3.3%
2,851,274 B+/B1 Allison Transmission, Inc., Term Loan,
2.96%, 8/7/14 $ 2,838,800
715,819 B+/Ba3 Federal-Mogul Corp., Tranche B Term Loan,
2.146%, 12/29/14 690,990
365,214 B+/Ba3 Federal-Mogul Corp., Tranche C Term Loan,
2.139%, 12/28/15 352,546
1,500,000 B+/B2 HHI Holdings LLC, Term Loan, 7.012%, 3/21/17 1,500,000
3,838,259 B+/B1 Key Safety Systems, Inc., First Lien Term Loan,
2.442%, 3/8/14 3,662,340
The accompanying notes are an integral part of these financial statements.
16 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
--------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------
Auto Parts & Equipment -- (continued)
744,375 BBB-/Ba1 Tenneco, Inc., Tranche B Term Loan,
5.057%, 6/3/16 $ 751,819
1,122,187 B/Ba2 UCI International, Inc., Term Loan,
5.5%, 7/26/17 1,133,176
------------
$ 10,929,671
--------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 2.6%
3,175,000 NR/B2 Chrysler Group LLC, Tranche B Term Loan,
0.0%, 5/24/17 $ 3,161,347
5,268,844 BB+/Baa3 Ford Motor Co., Tranche B-1 Term Loan,
2.95%, 12/15/13 5,276,236
------------
$ 8,437,583
------------
Total Automobiles & Components $ 19,367,254
--------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.3%
Homebuilding -- 0.3%
2,369,368(c)(d) NR/NR Ginn LA Conduit Lender, Inc., First Lien Tranche A
Credit-Linked Deposit Loan, 0.0%, 6/8/11 $ 195,473
5,077,235(c)(d) NR/NR Ginn LA Conduit Lender, Inc., First Lien Tranche B
Term Loan, 0.0%, 6/8/11 418,872
1,000,000(a)(c)(f) BB-/B1 WAICCS Las Vegas 3 LLC, First Lien Term Loan,
7.75%, 7/30/09 277,500
4,500,000(a)(c)(f) BB-/Caa2 WAICCS Las Vegas 3 LLC, Second Lien Term
Loan, 13.25%, 7/30/09 33,750
------------
$ 925,595
--------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 0.7%
1,500,000 BB/Ba3 Reynolds Group Holdings, Inc., U.S. Term Loan,
4.25%, 2/9/18 $ 1,502,463
861,163 BB-/Ba2 Yankee Candle Co., Inc., Term Loan,
2.2%, 2/6/14 859,482
------------
$ 2,361,945
--------------------------------------------------------------------------------------------------------
Leisure Products -- 0.3%
886,379 BB-/Ba3 SRAM LLC, Term Loan, 5.028%, 4/30/15 $ 888,595
------------
Total Consumer Durables & Apparel $ 4,176,135
--------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 8.0%
Casinos & Gaming -- 1.2%
2,000,000 B/B3 Caesars Entertainment Operating Co., Inc.,
Term Loan B-1, 3.274%, 1/28/15 $ 1,866,106
1,185,000 B/B3 Caesars Entertainment Operating Co., Inc.,
Term Loan B-4, 9.5%, 10/31/16 1,259,938
715,085 BB+/Ba2 Penn National Gaming, Inc., Term Loan B,
1.98%, 10/3/12 714,062
------------
$ 3,840,106
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 17
Schedule of Investments | 5/31/11 (unaudited) (continued)
-----------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-----------------------------------------------------------------------------------------------
Education Services -- 2.1%
2,094,750 B/B1 Ascend Learning LLC, First Lien Term Loan,
7.75%, 12/6/16 $ 2,097,367
3,832,815 BB-/Ba2 Bright Horizons Family Solutions, Inc., Tranche B
Term Loan, 4.2%, 5/28/15 3,860,764
989,744 B+/B2 Cengage Learning Acquisitions, Inc., Term Loan,
2.44%, 7/3/14 925,101
------------
$ 6,883,232
-----------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.3%
1,138,363 B/B3 Yellowstone Mountain Club LLC, Senior First Lien
Term Loan, 6.0%, 7/16/14 $ 1,132,671
-----------------------------------------------------------------------------------------------
Leisure Facilities -- 0.9%
1,745,625 BB-/Ba2 Cedar Fair LP, U.S. Term Loan-1,
4.0%, 12/15/17 $ 1,757,626
1,336,673 B+/Ba2 Universal City Development Partners, Ltd.,
Term Loan, 5.5%, 11/6/14 1,349,204
------------
$ 3,106,830
-----------------------------------------------------------------------------------------------
Restaurants -- 2.0%
1,645,875 BB-/Ba3 Burger King Corp., Tranche B Term Loan, 4.5%,
10/19/16 $ 1,644,693
324,464 BB-/Ba2 DineEquity, Inc., Term Loan B-1, 4.25%,
10/19/17 326,028
4,054,838 NR/NR Dunkin' Brands, Inc., Term Loan B-2, 4.25%,
11/23/17 4,064,974
471,439 BB/Ba2 Wendy's/Arby's Restaurants LLC, Term Loan,
5.0%, 5/24/17 474,238
------------
$ 6,509,933
-----------------------------------------------------------------------------------------------
Specialized Consumer Services -- 1.5%
1,175,000 BB-/Ba3 KAR Auction Services, Inc., Term Loan,
0.0%, 5/19/17 $ 1,180,875
3,860,527 B+/B1 Wash MultiFamily Laundry Services LLC,
Term Loan, 7.0%, 8/28/14 3,870,178
------------
$ 5,051,053
------------
Total Consumer Services $ 26,523,825
-----------------------------------------------------------------------------------------------
MEDIA -- 23.4%
Advertising -- 2.0%
1,496,250 B+/NR Advantage Sales & Marketing, Inc., First Lien
Term Loan, 5.25%, 12/17/17 $ 1,505,968
3,465,015 BB-/Ba3 Affinion Group, Inc., Tranche B Term Loan,
5.0%, 10/9/16 3,473,244
1,474,809 BB/Baa3 Lamar Media Corp., Term Loan B,
4.0%, 12/30/16 1,484,027
------------
$ 6,463,239
-----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
-------------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Broadcasting -- 8.3%
1,309,788 NR/Caa2 FoxCo Acquisition Sub LLC, Term Loan,
4.75%, 7/14/15 $ 1,312,401
836,206 NR/NR New Young Broadcasting Holding Co. Inc.,
Term Loan, 8.0%, 6/30/15 844,045
AUD 13,915,744 B-/B2 SMG H5 Pty, Ltd., Facility Term Loan A,
6.911%, 12/24/12 14,568,440
1,301,738 BB-/Ba3 TWCC Holding Corp., Term Loan,
4.25%, 2/11/17 1,312,179
9,716,995 B+/B2 Univision Communications, Inc., Extended First
Lien Term Loan, 4.441%, 3/31/17 9,405,857
------------
$ 27,442,922
-------------------------------------------------------------------------------------------------------------
Cable & Satellite -- 8.4%
19,591,675(a)(c)(d)(e) NR/B3 Broadstripe LLC, First Lien Term Loan, 0.0%,
6/30/11 $ 8,522,378
1,428,203(a)(c)(d)(e) CCC+/B3 Broadstripe LLC, Revolver Loan, 0.0%, 6/30/11 621,268
7,691,748 BB-/Ba3 Cequel Communications LLC, Term Loan,
2.209%, 11/5/13 7,667,111
1,600 BB+/Ba1 Charter Communications Operating LLC,
Term Loan B-1, 2.19%, 3/6/14 1,601
4,340,576 BB+/Ba1 Charter Communications Operating LLC,
Term Loan C, 3.56%, 9/6/16 4,350,738
1,985,000 BB-/Ba3 MCC Iowa LLC, Tranche F Term Loan, 4.5%,
10/23/17 1,992,444
4,759,412 B-/B1 WideOpenWest Finance LLC, First Lien Term Loan,
2.698%, 6/30/14 4,639,684
------------
$ 27,795,224
-------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 3.7%
2,380,607 B+/NR Alpha Topco, Ltd. (Formula One), Facility Term
Loan B-1, 2.707%, 12/31/13 $ 2,337,670
1,608,032 B+/NR Alpha Topco, Ltd. (Formula One), Facility Term
Loan B-2, 2.707%, 12/31/13 1,579,030
1,255,831 B-/B1 Carmike Cinemas, Inc., Initial Term Loan,
5.5%, 1/27/16 1,264,576
1,679,412 NR/Ba1 Cinedigm Digital Funding I LLC, Term Loan,
5.25%, 4/29/16 1,677,313
3,990,000 B-/B3 Knology, Inc., Term Loan B, 4.0%, 8/18/17 3,997,481
1,235,346 B/B3 Lodgenet Entertainment Corp., Closing Date Term
Loan, 6.5%, 4/4/14 1,186,705
------------
$ 12,042,775
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 19
Schedule of Investments | 5/31/11 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
Publishing -- 1.0%
880,575 B+/Ba3 Interactive Data Corp., Term Loan B,
4.75%, 2/11/18 $ 885,037
EURO 891,129 B/Ba3 Mediannuaire Holding, Term Loan B-3,
3.925%, 10/12/15 997,112
EURO 890,707 B/Ba3 Mediannuaire Holding, Term Loan C-2,
3.925%, 10/12/15 996,640
429,832 B/B1 R.H. Donnelley, Inc., Term Loan, 9.0%, 10/24/14 321,299
------------
$ 3,200,088
------------
Total Media $ 76,944,248
-----------------------------------------------------------------------------------------------------
RETAILING -- 5.1%
Apparel Retail -- 0.9%
2,493,750 B+/B1 Gymboree Corp., Term Loan, 5.0%, 2/23/18 $ 2,450,109
129,431(d) NR/NR Johnny Appleseed's, Inc., Junior Loan,
1.0%, 4/25/17 62,127
599,758(d) NR/NR Johnny Appleseed's, Inc., First Lien Second Out
Term Loan, 4.0%, 4/25/16 491,802
------------
$ 3,004,038
-----------------------------------------------------------------------------------------------------
Automotive Retail -- 0.1%
399,000 BB+/Ba3 Autotrader.com, Inc., Tranche B Term Loan,
4.75%, 12/15/16 $ 400,995
-----------------------------------------------------------------------------------------------------
General Merchandise Stores -- 2.2%
2,841,135 BBB-/Ba2 Dollar General Corp., Tranche B-1 Term Loan,
2.973%, 7/7/14 (144A) $ 2,840,419
4,268,478 BB/Ba3 Dollar General Corp., Tranche B-2 Term Loan,
2.946%, 7/7/14 (144A) 4,267,403
------------
$ 7,107,822
-----------------------------------------------------------------------------------------------------
Oil & Gas -- 0.4%
1,460,000 BB+/Ba2 Pilot Travel Centers LLC, Initial Tranche B Term
Loan, 4.25%, 3/30/18 $ 1,469,011
-----------------------------------------------------------------------------------------------------
Specialty Stores -- 1.5%
914,780 BBB-/Ba3 Sally Holdings LLC, Term Loan B,
2.44%, 11/16/13 $ 916,266
1,990,000 B+/Ba3 Savers, Inc., Term Loan, 4.25%, 3/14/17 2,002,006
1,915,000 B/NR Targus Group International, Inc., Term Loan,
0.0%, 5/24/16 1,876,700
------------
$ 4,794,972
------------
Total Retailing $ 16,776,838
-----------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.0%
Drug Retail -- 0.4%
1,389,840 B+/B3 Rite Aid Corp., Tranche 5 Term Loan,
4.5%, 3/3/18 $ 1,376,810
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
--------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Food Retail -- 1.6%
399,000 BB-/Ba3 NBTY, Inc., Term Loan B-1, 4.25%, 10/1/17 $ 399,653
4,794,773 B+/Ba3 Pinnacle Foods Finance LLC, Term Loan,
2.711%, 4/2/14 4,768,469
------------
$ 5,168,122
------------
Total Food & Staples Retailing $ 6,544,932
--------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.5%
Agricultural Products -- 0.4%
1,419,813 B/B1 Wm. Bolthouse Farms, Inc., First Lien Term Loan,
5.502%, 2/11/16 $ 1,429,132
--------------------------------------------------------------------------------------------------
Distillers & Vintners -- 0.2%
244,610 BB+/Ba2 Constellation Brands, Inc., Extending Tranche B
Term Loan, 3.0%, 6/5/15 $ 244,636
495,835 BB+/Ba2 Constellation Brands, Inc., Non-Extending Tranche
B Term Loan, 1.75%, 6/5/13 499,678
------------
$ 744,314
--------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 3.9%
979,592 BB-/Ba3 Dean Foods Co., Tranche B Term Loan,
1.81%, 4/2/14 $ 954,367
1,845,000 B+/Ba3 Del Monte Foods Co., Initial Term Loan,
4.5%, 3/8/18 1,847,727
205,516 BB-/Ba2 Dole Food Co., Inc., Tranche B-1 Term Loan,
5.049%, 3/2/17 206,992
510,450 BB-/Ba2 Dole, Ltd., Tranche C-1 Term Loan,
5.085%, 3/2/17 514,117
469,477 BB-/NR Green Mountain Coffee Roasters, Inc., Facility
Term Loan B, 5.5%, 12/16/16 470,944
1,592,000 NR/B1 Michael Foods Group, Inc., Facility Term Loan B,
4.25%, 2/25/18 1,600,358
3,582,000 B+/B1 Pierre Foods, Inc., First Lien Term Loan, 7.0,
9/30/16 3,613,343
2,500,000 NR/NR Pierre Foods, Inc., Second Lien Term Loan,
11.25%, 9/29/17 2,548,438
972,000 BB-/B1 Windsor Quality Food Co., Ltd., Tranche B Term
Loan, 5.0%, 2/16/17 975,240
------------
$ 12,731,526
------------
Total Food, Beverage & Tobacco $ 14,904,972
--------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.5%
Household Products -- 1.5%
2,451,292 BB-/Ba2 JohnsonDiversey, Inc., Tranche B Dollar Term
Loan, 4.0%, 11/24/15 $ 2,461,252
2,545,427 B/B2 Spectrum Brands, Inc., Term Loan, 5.0%, 6/17/16 2,572,245
------------
$ 5,033,497
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 21
Schedule of Investments | 5/31/11 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Personal Products -- 1.0%
750,000 B+/B1 General Nutrition Center, Inc., Tranche B Term
Loan, 4.25%, 3/2/18 $ 751,969
2,475,000 BB-/Ba3 Revlon Consumer Products Corp., Term Loan B,
4.75%, 11/19/17 2,485,209
------------
$ 3,237,178
------------
Total Household & Personal Products $ 8,270,675
----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 18.6%
Health Care Equipment & Services -- 2.0%
700,204 B/NR Fenwal, Inc., First Lien Delayed Draw Term Loan,
2.504%, 2/28/14 $ 669,862
4,084,225 B/NR Fenwal, Inc., Initial First Lien Term Loan, 2.504%,
2/28/14 3,907,243
235,765 BBB-/Baa2 Fresenius SE, Tranche D-1 Dollar Term Loan,
3.5%, 9/10/14 236,429
134,675 BBB-/Baa2 Fresenius SE, Tranche D-2 Term Loan, 3.5%,
9/10/14 134,928
1,725,000 BB-/B1 Onex Carestream Finance LP, Term Loan,
5.0%, 2/25/17 1,644,141
------------
$ 6,592,603
----------------------------------------------------------------------------------------------------
Health Care Facilities -- 5.2%
2,376,000 B/B1 Ardent Medical Services, Inc., Term Loan,
6.5%, 9/15/15 $ 2,387,880
56,398 BB/Ba3 CHS/Community Health Systems, Inc., Delayed
Draw Term Loan, 2.504%, 7/25/14 54,597
1,096,184 BB/Ba3 CHS/Community Health Systems, Inc.,
Term Loan, 2.504%, 7/25/14 1,061,175
3,471,473 BB/Ba2 HCA, Inc., Tranche B-2 Term Loan, 3.557%,
3/31/17 3,457,007
2,698,472 BB/Ba2 HCA, Inc., Tranche B-3 Term Loan, 3.557%,
11/18/13 2,689,095
1,650,000 B/Ba3 Iasis Healthcare LLC, Term B Loan, 5.0%, 5/3/18 1,654,125
2,065,000 BB-/Ba3 Select Medical Corp., Tranche B Term Loan,
0.0%, 6/1/18 2,054,675
2,737,778 B+/Ba2 Sun Healthcare Group, Inc., Term Loan,
7.5%, 10/18/16 2,729,222
1,163,009 BB+/NR Universal Health Services, Inc., Tranche B Term
Loan, 4.0%, 11/15/16 1,170,097
------------
$ 17,257,873
----------------------------------------------------------------------------------------------------
Health Care Services -- 8.7%
824,813 NR/NR AccentCare, Inc., Term Loan, 6.5%, 12/22/16 $ 824,813
740,625 BB-/Ba3 Alliance HealthCare Services, Initial Term Loan,
5.5%, 6/1/16 741,551
967,252 B+/B1 Aveta, Inc., NAMM Term Loan, 8.5%, 4/14/15 972,894
The accompanying notes are an integral part of these financial statements.
22 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Health Care Services -- (continued)
600,000 BB-/B1 Butler Animal Health Supply LLC, Tranche B Term
Loan, 0.0%, 12/31/15 $ 600,000
2,238,271 B-/B3 CCS Medical, Inc., First Lien Term Loan,
9.0%, 3/31/15 1,958,487
814,582(d) NR/NR CCS Medical, Inc., Second Lien Term Loan,
3.0%, 3/31/16 521,332
2,962,500 BB-/Ba2 Gentiva Health Services, Inc., Term Loan B-1,
4.75%, 8/17/16 2,981,016
1,062,983 BB-/Ba3 Inventiv Health, Inc., Term Loan B, 4.75%,
8/4/16 1,067,634
128,013 BB-/Ba3 Inventiv Health, Inc., Term Loan B-1,
4.75%, 8/4/16 128,039
2,030,918 CCC-/B2 LifeCare Holdings, Term Loan, 7.982%, 2/1/16 2,061,382
2,545,000 B+/B1 National Mentor Holdings, Inc., Tranche B Term
Loan, 7.0%, 2/9/17 2,549,772
1,128,218 B/B2 National Specialty Hospitals, Inc., Initial Term
Loan, 8.25%, 2/3/17 1,132,449
873,321 B/B2 Physician Oncology Services LP, Effective Date
Term Loan, 6.25%, 1/31/17 872,230
2,970,000 NR/B1 Prime Healthcare Services, Inc., Term Loan B,
7.25%, 4/28/15 2,925,450
1,469,333 BB/Ba3 RehabCare Group, Inc., Term Loan B,
6.25%, 11/24/15 1,477,751
374,063 B/Ba3 Renal Advantage, Inc., Tranche B Term Loan,
5.75%, 12/17/16 376,868
2,992,500 B+/B1 Rural/Metro Operating, Inc., Term Loan,
6.0%, 11/24/16 3,013,073
1,365,000 B+/Ba3 Surgery Center Holdings, Inc., Term Loan,
6.5%, 2/6/17 1,376,091
750,000 NR/Baa3 Valitas Health Services, Inc., Term Loan B,
0.0%, 6/2/17 751,641
2,244,375 B+/B1 Virtual Radiologic Corp., Term Loan,
7.75%, 12/22/16 2,233,153
------------
$ 28,565,626
----------------------------------------------------------------------------------------------------
Health Care Supplies -- 1.6%
461,862 BB-/B1 Bausch & Lomb, Inc., Delayed Draw Term Loan,
3.441%, 4/24/15 $ 461,255
1,899,812 BB-/B1 Bausch & Lomb, Inc., Parent Term Loan,
3.441%, 4/24/15 1,897,313
2,787,127 BB-/B1 Biomet, Inc., Dollar Term Loan,
3.276%, 3/25/15 2,776,494
------------
$ 5,135,062
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 23
Schedule of Investments | 5/31/11 (unaudited) (continued)
--------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Health Care Technology -- 0.8%
1,437,195 BB-/Ba3 MedAssets, Inc., Term Loan, 5.25%, 11/16/16 $ 1,447,974
1,185,000 B/B2 Medical Card System, Inc., Term Loan,
12.003%, 9/17/15 1,262,025
------------
$ 2,709,999
--------------------------------------------------------------------------------------------------
Managed Health Care -- 0.3%
967,252 B+/B1 Aveta, Inc., MMM Term Loan, 8.5%, 4/14/15 $ 972,693
------------
Total Health Care Equipment & Services $ 61,233,856
--------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY &
LIFE SCIENCES -- 3.5%
Biotechnology -- 2.9%
3,077,288 BB/B1 Axcan Intermediate Holdings, Inc., Term Loan,
5.5%, 2/10/17 $ 3,068,151
1,252,747 B+/B1 Generic Drug Holdings, Inc., Closing Date
Term Loan, 6.5%, 4/8/16 1,252,747
172,253 B+/B1 Generic Drug Holdings, Inc., Delayed Draw
Term Loan, 6.5%, 4/8/16 172,253
400,000 BB-/Ba3 Grifols, Inc., U.S. Tranche B Term Loan,
0.0%, 6/1/17 403,998
1,712,982 B+/B1 HGI Holding, Inc., Initial Term Loan,
6.75%, 10/1/16 1,735,109
1,068,750 BB/B1 Ikaria Acquisition, Inc., Term Loan,
7.0%, 5/14/16 1,064,742
857,143 BBB-/Ba3 Warner Chilcott Corp., Term Loan B-1,
4.25%, 3/15/18 860,890
428,571 BBB-/Ba3 Warner Chilcott Corp., Term Loan B-2,
4.25%, 3/15/18 430,445
589,286 BBB-/Ba3 Warner Chilcott Corp., Term Loan B-3,
4.25%, 3/15/18 591,862
------------
$ 9,580,197
--------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.6%
2,250,703(d) CCC+/NR Graceway Pharmaceuticals LLC, Mezzanine Loan,
0.0%, 11/1/13 $ 11,301
1,929,449 BBB/Baa3 Mylan, Inc., U.S. Tranche B Term Loan,
3.563%, 10/2/14 1,940,699
------------
$ 1,952,000
------------
Total Pharmaceuticals & Biotechnology &
Life Sciences $ 11,532,197
--------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.3%
Consumer Finance -- 0.8%
2,500,000 B+/B2 Springleaf Financial Funding Co., Term Loan,
5.5%, 5/10/17 $ 2,501,563
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
-------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.1%
312,445 B+/Ba3 LPL Holdings, Inc., Term Loan, 5.25%, 6/28/17 $ 315,277
-------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.4%
369,473 B-/B2 BNY ConvergEX Group LLC, Second Lien (EZE)
Term Loan, 8.75%, 12/18/17 $ 379,172
880,527 B-/NR BNY ConvergEX Group LLC, Second Lien (TOP)
Term Loan, 8.75%, 12/18/17 903,641
------------
$ 1,282,813
-------------------------------------------------------------------------------------------------
Specialized Finance -- 1.0%
1,681,383 CCC+/B2 Collect Acquisition Corp., Advance Term Loan B,
8.0%, 5/15/13 $ 1,676,129
1,780,582 BB+/Ba1 MSCI, Inc., Term Loan B-1, 3.75%, 3/14/17 1,796,440
------------
$ 3,472,569
------------
Total Diversified Financials $ 7,572,222
-------------------------------------------------------------------------------------------------
INSURANCE -- 1.7%
Insurance Brokers -- 1.6%
837,250 B/B2 HUB International, Ltd., Additional Term Loan,
6.75%, 6/13/14 $ 841,122
850,951 B/B2 HUB International, Ltd., Delayed Draw Term Loan,
2.807%, 6/13/14 840,740
3,085,857 B/B2 HUB International, Ltd., Initial Term Loan,
2.807%, 6/13/14 3,048,827
492,500 B-/B3 USI Holdings Corp., New Term Loan Series C,
7.0%, 5/5/14 491,679
------------
$ 5,222,368
-------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.1%
230,528 B/B2 AMWINS Group, Inc., Initial Term Loan,
2.781%, 6/8/13 $ 228,511
------------
Total Insurance $ 5,450,879
-------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.9%
Diversified Real Estate Investment Trust -- 0.7%
2,500,000 CCC+/Ca Spirit Finance Corp., Term Loan, 3.454%, 8/1/13 $ 2,419,270
-------------------------------------------------------------------------------------------------
Real Estate Development -- 0.2%
594,000 B/Ba3 Ozburn-Hessey Holding Co. LLC, First Lien Term
Loan, 7.5%, 4/8/16 $ 599,198
------------
Total Real Estate $ 3,018,468
-------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 13.0%
Application Software -- 3.7%
1,000,000 BB-/Ba2 Allen Systems Group, Inc., Term Loan B,
6.5%, 11/21/15 $ 1,001,250
1,385,000 BB-/Ba2 NDS Finance, Ltd., Tranche B Loan,
4.0%, 3/12/18 1,389,328
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 25
Schedule of Investments | 5/31/11 (unaudited) (continued)
--------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
Application Software -- (continued)
1,581,450 BB+/Ba2 Nuance Communications, Inc., Term Loan,
1.95%, 3/29/13 $ 1,573,543
3,509,527 B+/B1 Serena Software, Inc., Extended Term Loan,
4.31%, 3/10/16 3,495,271
2,000,000 B+/B1 Verint Systems, Inc., Term Loan,
4.5%, 10/27/17 2,009,690
1,591,013 B+/B1 Vertafore, Inc., First Lien Term Loan,
5.25%, 7/29/16 1,601,454
1,000,000 NR/Caa1 Vertafore, Inc., Second Lien Term Loan,
9.75%, 10/29/17 1,020,000
------------
$ 12,090,536
--------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 1.2%
497,500 BBB-/Ba1 Fidelity National Information Services, Inc.,
Term Loan B, 5.25%, 7/18/16 $ 498,744
1,475,000 BB-/NR Fifth Third Processing, Inc., Second Lien Term
Loan, 0.0%, 11/3/16 1,481,453
802,493 B-/Caa1 First Data Corp., Dollar Term Loan,
2.945%, 9/24/14 752,797
85,401 B+/B1 First Data Corp., Term Loan B-2,
2.945%, 9/24/14 79,938
1,173,839 BBB/Baa3 Lender Processing Services, Inc., Term Loan B,
2.691%, 7/2/14 1,166,503
------------
$ 3,979,435
--------------------------------------------------------------------------------------------------
Internet Software & Services -- 0.6%
1,990,000 B/B1 Savvis Communications Corp., Term Loan,
6.75%, 8/4/16 $ 2,007,910
--------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 1.2%
2,500,000 BB/Ba3 SunGard Data Systems, Inc., Incremental
Term Loan B, 3.71%, 2/28/14 $ 2,515,625
1,623,362 BB/Ba3 SunGard Data Systems, Inc., Tranche A U.S.
Term Loan, 1.955%, 2/28/14 1,610,022
------------
$ 4,125,647
--------------------------------------------------------------------------------------------------
Systems Software -- 6.3%
1,496,250 NR/B1 Applied Systems, Inc., First Lien Term Loan,
5.5%, 12/8/16 $ 1,506,848
1,300,000 NR/NR Applied Systems, Inc., Second Lien Term Loan,
9.25%, 6/8/17 1,324,375
1,800,000 BB+/Ba2 Dealer Computer Services, Inc., Tranche B Term
Loan, 3.75%, 4/21/18 1,808,626
2,216,658 B+/B1 Infor Enterprise Solutions Holdings, Inc., Delayed
Draw Term Loan, 3.95%, 7/28/12 2,199,803
The accompanying notes are an integral part of these financial statements.
26 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Systems Software -- (continued)
1,466,667 NR/NR Infor Enterprise Solutions Holdings, Inc.,
Delayed Draw Term Loan, 6.441%, 3/2/14 $ 1,327,333
2,791,206 B+/B1 Infor Enterprise Solutions Holdings, Inc.,
Dollar Tranche B-1 First Lien Term Loan,
2.95%, 7/28/12 2,742,338
4,248,855 B+/B1 Infor Enterprise Solutions Holdings, Inc.,
Initial U.S. Term Loan, 3.95%, 7/28/12 4,216,546
2,533,333 CCC+/Caa2 Infor Enterprise Solutions Holdings, Inc., Second
Lien Initial Dollar Term Loan, 6.441%, 3/2/14 2,274,460
1,975,000 BB+/Ba1 Rovi Solutions Corp., Tranche B Loan,
4.0%, 2/7/18 1,988,578
265,280 B+/B1 Telcordia Technologies, Inc., Term Loan,
6.75%, 4/30/16 266,054
1,034,183 BB-/B1 Vangent, Inc., Term Loan, 2.26%, 2/14/13 1,021,256
------------
$ 20,676,217
------------
Total Software & Services $ 42,879,745
----------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 2.8%
Communications Equipment -- 0.8%
1,000,000 BB/Ba3 CommScope, Inc., Term Loan, 5.0%, 1/14/18 $ 1,006,875
1,485,000 BB-/Ba3 TowerCo Finance LLC, Term Loan, 5.25%, 2/2/17 1,496,754
------------
$ 2,503,629
----------------------------------------------------------------------------------------------------
Electronic Components -- 0.5%
35,822 BB-/Ba2 Flextronics International, Ltd., Delayed Draw Loan
A-1-B, 2.441%, 10/1/14 $ 35,464
1,139,874 BB+/Ba2 Flextronics International, Ltd., Delayed Draw Loan
A-3, 2.461%, 10/1/14 1,131,800
432,375 B-/B2 Generac Acquisition Corp., First Lien Term Loan,
2.79%, 11/10/13 431,564
------------
$ 1,598,828
----------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.7%
817,583 BB+/Ba1 Itron, Inc., Dollar Term Loan, 3.7%, 4/18/14 $ 823,537
1,496,250 B/B2 Scitor Corp., Term Loan, 5.0%, 2/15/17 1,501,861
------------
$ 2,325,398
----------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.4%
749,889 NR/B2 FCI USA, Inc., Facility Term Loan B-1,
3.665%, 11/1/13 $ 747,077
749,889 NR/B2 FCI USA, Inc., Facility Term Loan B-5-B,
3.665%, 11/1/13 747,077
------------
$ 1,494,154
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 27
Schedule of Investments | 5/31/11 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Technology Distributors -- 0.4%
1,211,685 B+/B1 Securus Technologies, Inc., First Lien Term Loan,
0.0%, 5/31/17 $ 1,199,568
------------
Total Technology Hardware & Equipment $ 9,121,577
----------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 1.2%
Semiconductors -- 0.6%
1,390,975 BB+/Ba2 Intersil Corp., Term Loan, 4.75%, 4/27/16 $ 1,400,973
448,875 NR/Ba1 Microsemi Corp., Term Loan, 4.0%, 11/2/17 451,400
------------
$ 1,852,373
----------------------------------------------------------------------------------------------------
Semiconductor Equipment -- 0.6%
500,000 NR/B1 Aeroflex, Inc., Tranche B Term Loan,
4.25%, 5/9/18 $ 501,246
1,500,000 BB+/Ba3 Sensata Technology BV/Sensata Technology
Finance Co. LLC, Term Loan, 0.0%, 5/12/18 1,504,844
------------
$ 2,006,090
----------------------------------------------------------------------------------------------------
Total Semiconductors & Semiconductor
Equipment $ 3,858,463
----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 7.6%
Alternative Carriers -- 2.1%
6,500,000 B+/B1 Level 3 Financing, Inc., Tranche A Term Loan,
2.553%, 3/13/14 $ 6,374,570
500,000 B/Ba3 PAETEC Holding Corp., Initial Term Loan,
0.0%, 5/31/18 501,250
------------
$ 6,875,820
----------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- 3.4%
EURO 745,314 B/B2 Amsterdamse Beheer-EN Consultingmaatschappij
B.V., Casema Facility Term Loan B-3,
0.0%, 9/15/14 $ 1,079,835
EURO 387,153 NR/B2 Amsterdamse Beheer-EN Consultingmaatschappij
B.V., Casema Facility Term Loan B-4,
0.0%, 9/15/14 561,055
EURO 849,351 B/B2 Amsterdamse Beheer-EN Consultingmaatschappij
B.V., Kabelcom Facility Term Loan B-2,
0.0%, 9/15/14 1,230,861
1,000,000 CCC+/Caa1 Hargray Acquisition Co., Second Lien Term Loan,
5.77%, 1/29/15 945,000
3,932,312 B+/B1 Telesat Canada, U.S. Term I Loan,
3.2%, 10/31/14 3,921,254
337,774 B+/B1 Telesat Canada, U.S. Term II Loan,
3.2%, 10/31/14 336,824
1,110,894 B+/Ba1 TW Telecom Holdings, Inc., Term Loan B-2,
3.45%, 12/30/16 1,115,985
The accompanying notes are an integral part of these financial statements.
28 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
-------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- (continued)
264,308 BB-/Ba3 West Corp., Term Loan B-2, 2.732%, 10/24/13 $ 263,097
642,835 BB-/Ba3 West Corp., Term Loan B-5, 4.607%, 7/15/16 646,652
1,163,126 BB+/Baa3 Windstream Corp., Tranche B-2 Term Loan,
3.013%, 12/17/15 1,162,641
------------
$ 11,263,204
-------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 2.1%
5,609,387 BB/Ba1 MetroPCS Wireless, Inc., Tranche B-2 Term Loan,
4.071%, 11/3/16 $ 5,624,577
700,000 BB/NR MetroPCS Wireless, Inc., Tranche B-3 Term Loan,
4.0%, 3/19/18 699,125
498,750 BB-/B1 Syniverse Holdings, Inc., Term Loan,
5.25%, 12/21/17 503,219
------------
$ 6,826,921
------------
Total Telecommunication Services $ 24,965,945
-------------------------------------------------------------------------------------------------------
UTILITIES -- 2.7%
Electric Utilities -- 1.6%
875,000 BB-/Ba3 Equipower Resources Holdings LLC, Facility
Term B, 5.75%, 1/26/18 $ 881,198
792,952(a)(d)(e) CC/Ca GBGH LLC (US Energy), First Lien Term Loan,
0.0%, 6/9/13 132,423
327,347(a)(d)(e) CC/Ca GBGH LLC (US Energy), Second Lien Term Loan,
0.0%, 6/9/14 3,273
5,506,137 CCC/B2 Texas Competitive Electric Holdings Co., LLC,
Term Loan, 4.738%, 10/10/17 4,359,831
------------
$ 5,376,725
-------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy Traders -- 1.1%
1,635,000 BB+/Ba1 AES Corp., Initial Term Loan, 0.0%, 5/28/18 $ 1,635,512
1,725,000 B+/B1 Calpine Corp., Term Loan, 4.5%, 4/1/18 1,732,331
275,941 BB-/Ba3 Mach Gen LLC, First Lien Synthetic LC Loan,
0.057%, 2/22/13 258,234
------------
$ 3,626,077
------------
Total Utilities $ 9,002,802
-------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE
LOAN INTERESTS
(Cost $457,907,775) $435,450,816
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 29
Schedule of Investments | 5/31/11 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
CLAIMS -- 0.0% of Net Assets
CAPITAL GOODS -- 0.0%
Aerospace & Defense -- 0.0%
1,200,000(a)(e)(g) B+/B1 Northwest Airlines, Inc., ALPA Claim-Escrow, 0.0% $ --
2,500,000(a)(e)(g) B+/B1 Northwest Airlines, Inc., Bell Atlantic
Claim-Escrow, 0.0% --
2,500,000(a)(e)(g) B+/B1 Northwest Airlines, Inc., EDC Claim-Escrow, 0.0% --
2,130,600(a)(e)(g) B+/B1 Northwest Airlines, Inc., Flight Attendant
Claim-Escrow, 0.0% --
1,500,000(a)(e)(g) B+/B1 Northwest Airlines, Inc., GE Claim-Escrow, 0.0% --
1,264,500(a)(e)(g) B+/B1 Northwest Airlines, Inc., IAM Claim-Escrow, 0.0% --
1,404,900(a)(e)(g) CCC+/B1 Northwest Airlines, Inc., Retiree
Claim-Escrow, 0.0% --
------------
Total Capital Goods $ --
-------------------------------------------------------------------------------------------------------------
TOTAL CLAIMS
(Cost $0) $ --
-------------------------------------------------------------------------------------------------------------
CORPORATE NOTES -- 11.4% of Net Assets
ENERGY -- 1.0%
Oil & Gas Drilling -- 0.2%
600,000 B-/B3 Offshore Group Investments, Ltd., 11.5%, 8/1/15 $ 661,500
-------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.8%
2,490,000 BB-/B1 Denbury Resources, Inc., 8.25%, 2/15/20 $ 2,751,450
------------
Total Energy $ 3,412,950
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 1.1%
Paper Packaging -- 0.3%
1,000,000(b) B/B1 Berry Plastics Corp., 5.028%, 2/15/15 $ 990,000
-------------------------------------------------------------------------------------------------------------
Paper Products -- 0.8%
1,750,000 B+/B1 Appleton Papers, Inc., 10.5%, 6/15/15 (144A) $ 1,855,000
650,000 B/B3 Exopack Holding Corp., 11.25%, 2/1/14 666,250
------------
$ 2,521,250
------------
Total Materials $ 3,511,250
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 1.1%
Aerospace & Defense -- 0.8%
550,000 BBB-/Ba3 Digitalglobe, Inc., 10.5%, 5/1/14 $ 615,313
1,850,000 BB-/Ba3 Spirit AeroSystems, Inc., 7.5%, 10/1/17 1,988,750
------------
$ 2,604,063
-------------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.3%
1,000,000 B+/B3 Manitowoc Co., Inc., 9.5%, 2/15/18 $ 1,107,500
------------
Total Capital Goods $ 3,711,563
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
-------------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.3%
Housewares & Specialties -- 0.3%
1,000,000 BB-/Ba3 Jarden Corp., 8.0%, 5/1/16 $ 1,095,000
------------
Total Consumer Durables & Apparel $ 1,095,000
-------------------------------------------------------------------------------------------------------
MEDIA -- 0.3%
Advertising -- 0.3%
936,000 B+/B2 MDC Partners, Inc., 11.0%, 11/1/16 $ 1,040,130
------------
Total Media $ 1,040,130
-------------------------------------------------------------------------------------------------------
RETAILING -- 0.6%
Catalog Retail -- 0.6%
1,825,000 BB+/Ba2 QVC, Inc., 7.5%, 10/1/19 (144A) $ 1,966,438
------------
Total Retailing $ 1,966,438
-------------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY &
LIFE SCIENCES -- 5.6%
Pharmaceuticals -- 5.6%
9,429,000(a) NR/NR Azithromycin Royalty Sub LLC, 16.0%,
5/15/19 (144A) $ 8,674,680
13,523,396(a)(d) NR/NR Celtic Pharma Phinco B.V., 17.0%,
6/15/12 (144A) 6,761,698
381,363(a)(b)(d) NR/NR Pharma VI, 5.559%, 10/15/14 (144A) 343,226
1,330,248(a)(d) NR/NR Pharma X, 15.5%, 3/30/17 (144A) 1,330,248
1,496,355(a)(d) NR/NR TCD Pharma, 16.0%, 4/15/24 (144A) 1,271,902
------------
Total Pharmaceuticals & Biotechnology &
Life Sciences $ 18,381,754
-------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.4%
Consumer Finance -- 0.1%
200,000 BBB/Baa1 Capital One Financial Corp., 7.375%, 5/23/14 $ 232,678
-------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.3%
500,000(b) BB+/NR Lodestone Re, Ltd., 6.045%, 1/8/14 (144A) $ 481,400
500,000(b) BB/NR Lodestone Re, Ltd., 8.28%, 5/17/13 (144A) 489,850
------------
$ 971,250
------------
Total Diversified Financials $ 1,203,928
-------------------------------------------------------------------------------------------------------
INSURANCE -- 0.3%
Reinsurance -- 0.3%
500,000(b) BB-/NR Mystic Re, Ltd., 10.310%, 6/7/11 (144A) $ 500,000
600,000(b) BB-/NR Residential Reinsurance 2008, Ltd.,
7.060%, 6/6/11 (144A) 599,700
------------
Total Insurance $ 1,099,700
-------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.6%
Real Estate Services -- 0.3%
1,000,000(b) NR/B3 Valais Re, Ltd., 14.810%, 6/6/11 (144A) $ 980,000
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 31
Schedule of Investments | 5/31/11 (unaudited) (continued)
-----------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-----------------------------------------------------------------------------------------------
Specialized Real Estate Investment Trusts -- 0.3%
750,000 BBB-/Baa2 Hospitality Properties Trust, 7.875%, 8/15/14 $ 847,787
------------
Total Real Estate $ 1,827,787
-----------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.1%
Integrated Telecommunication Services -- 0.1%
300,000 BB/Ba2 Frontier Communications Corp., 8.25%, 5/1/14 $ 332,250
------------
Total Telecommunication Services $ 332,250
-----------------------------------------------------------------------------------------------
TOTAL CORPORATE NOTES
(Cost $43,497,270) $ 37,582,750
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------------
COMMON STOCKS -- 8.0% of Net Assets
ENERGY -- 0.0%
Oil & Gas Drilling -- 0.0%
138(a)(e)(g) TARH E&P Holdings GP, LLP Class A
Membership Interest $ 1
130,056(a)(e)(g) TARH E&P Holdings LP, Class A
Partnership Interest 1,301
------------
$ 1,302
-----------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.0%
213,605(e)(g) Value Creation, Inc. $ 49,129
------------
Total Energy $ 50,431
-----------------------------------------------------------------------------------------------
MATERIALS -- 0.2%
Commodity Chemicals -- 0.2%
18,750(g) Georgia Gulf Corp. $ 531,375
------------
Total Materials $ 531,375
-----------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.1%
Airlines -- 0.0%
3,514(g) Delta Airlines, Inc. $ 35,421
-----------------------------------------------------------------------------------------------
Trucking -- 0.1%
12,887(g) SIRVA Worldwide, Inc. $ 193,305
------------
Total Transportation $ 228,726
-----------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 6.1%
Auto Parts & Equipment -- 6.1%
829(g) Delphi DIP Holdco LLP, Class B Subscription $ 20,279,412
------------
Total Automobiles & Components $ 20,279,412
-----------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.0%
Apparel, Accessories & Luxury Goods -- 0.0%
569(g) Orchard Brands Corp. $ 1,280
------------
Total Consumer Durables & Apparel $ 1,280
-----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
---------------------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.2%
Leisure Facilities -- 0.2%
1,306(e)(g) Lake at Las Vegas A Shares $ 610,692
9(e)(g) Lake at Las Vegas B Shares 4,226
------------
Total Consumer Services $ 614,918
---------------------------------------------------------------------------------------------------
MEDIA -- 1.3%
Broadcasting -- 0.3%
376(g) New Young Broadcasting Holdings Co. $ 1,081,000
---------------------------------------------------------------------------------------------------
Movies & Entertainment -- 1.0%
140,010(g) Metro-Goldwyn-Mayer, Inc. $ 3,185,227
------------
Total Media $ 4,266,227
---------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.0%
Health Care Services -- 0.0%
15,034(g) CCS Medical, Inc. $ 150,340
------------
Total Health Care Equipment & Services $ 150,340
---------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.1%
Alternative Carriers -- 0.1%
57,813(g) Clearwire Corp. $ 265,940
------------
Total Telecommunication Services $ 265,940
---------------------------------------------------------------------------------------------------
UTILITIES -- 0.0%
Electric Utilities -- 0.0%
1,589(a)(e)(g) GBGH, LLC Membership Interest $ 16
------------
Total Utilities $ 16
---------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $11,933,741) $ 26,388,665
---------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK -- 0.4% of Net Assets
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 0.4%
Biotechnology -- 0.4%
153,554(a)(g) Molecular Insight Pharmaceuticals, Inc. $ 1,305,209
------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 1,305,209
------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $1,305,209) $ 1,305,209
---------------------------------------------------------------------------------------------------
LIQUIDATING TRUSTS -- 0.0% of Net Assets
ENERGY -- 0.0%
Oil & Gas Drilling -- 0.0%
4,995,000(e)(g) Crusader Energy Group, Inc., Liquidating Trust $ --
------------
Total Energy $ --
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 33
Schedule of Investments | 5/31/11 (unaudited) (continued)
--------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.0%
Hotels, Resorts & Cruise Lines -- 0.0%
3,377,886(e)(g) Yellowstone Mountain Club LLC, Liquidating Trust $ --
-------------
Total Consumer Services $ --
--------------------------------------------------------------------------------------------
TOTAL LIQUIDATING TRUSTS
(Cost $0) $ --
--------------------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.9% of Net Assets
CONSUMER SERVICES -- 0.0%
Leisure Facilities -- 0.0%
38(e)(g) Lake at Las Vegas Series C, Expires 7/15/15 $ --
52(e)(g) Lake at Las Vegas Series D, Expires 7/15/15 --
58(e)(g) Lake at Las Vegas Series E, Expires 7/15/15 --
66(e)(g) Lake at Las Vegas Series F, Expires 7/15/15 --
75(e)(g) Lake at Las Vegas Series G, Expires 7/15/15 --
-------------
$ --
-------------
Total Consumer Services $ --
--------------------------------------------------------------------------------------------
MEDIA -- 0.9%
Broadcasting -- 0.9%
1,018(g) New Young Broadcasting Holdings Co.,
Expires 12/1/24 $ 2,926,750
-------------
Total Media $ 2,926,750
--------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.0%
TOTAL RIGHTS/WARRANTS
(Cost $2,002,317) $ 2,926,750
--------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 155.3%
(Cost $523,122,216)(h) $ 510,865,685
--------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 0.2% $ 649,176
--------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (55.5)% $(182,478,644)
--------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS -- 100.0% $ 329,036,217
============================================================================================
NR Security not rated by S&P or Moody's.
* Senior secured floating rate loan interests in which the Trust invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending rate plus a premium. These base lending rates
are generally (i) the lending rate offered by one or more major European
banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime rate
offered by one or more major United States banks, (iii) the certificate
of deposit or (iv) other base lending rates used by commercial lenders.
The interest rate shown is the rate accruing at May 31, 2011.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At May
31, 2011, the value of these securities amounted to $39,573,459 or 12.0%
of total net assets applicable to common shareowners.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
(a) Indicates a security that has been deemed illiquid. The aggregate cost of
illiquid securities is $61,933,952. The aggregate fair value of
$37,897,269 represents 11.5% of the total net assets applicable to common
shareowners.
(b) Floating Rate Note. The rate shown is the coupon rate at May 31, 2011.
(c) Security is in default and is non-income producing.
(d) Payment-in-Kind (PIK) security which may pay interest in the form of
additional principal.
(e) Security is valued using fair value methods (other than prices supplied
by independent pricing services). (See Note 1A)
(f) The company and agent bank are in the process of negotiating forbearance.
(g) Non-income producing.
(h) At May 31, 2011, the net unrealized loss on investments based on cost for
federal income tax purposes of $523,526,264 was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $ 30,347,482
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (43,008,061)
------------
Net unrealized loss $(12,660,579)
============
For financial reporting purposes net unrealized loss on investments was
$12,256,531 and cost of investments aggregated $523,122,216.
Purchases and sales of securities (excluding temporary cash investments) for
the period ended May 31, 2011, aggregated $152,276,389 and $147,193,076,
respectively.
Glossary of Terms:
LC -- Letter of Credit
Principal amounts are denominated in U.S. dollars unless otherwise noted.
AUD -- Australian Dollar
EURO -- Euro
Various inputs are used in determining the value of the Trust's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
Level 3 -- significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments)
Generally, equity securities are categorized as Level 1, fixed income
securities and senior loans are categorized as Level 2 and securities valued
using fair value methods (See Note 1A) are categorized as Level 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 35
Schedule of Investments | 5/31/11 (unaudited) (continued)
The following is a summary of the inputs used as of May 31, 2011, in valuing
the Trust's investments:
-----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------
Collateralized loan obligations $ -- $ -- $ 7,211,495 $ 7,211,495
Senior secured floating rate loan
interests (oil & gas drilling) -- 1,114,666 1,406,901 2,521,567
Senior secured floating rate loan
interests (cable & satellite) -- 18,651,578 9,143,646 27,795,224
Senior secured floating rate loan
interests (electric utilities) -- 5,241,029 135,696 5,376,725
Senior secured floating rate loan
interests (other industries) -- 399,757,300 -- 399,757,300
Claims -- -- -- --
Corporate notes (pharmaceuticals) -- -- 18,381,754 18,381,754
Corporate notes (other industries) -- 19,200,996 -- 19,200,996
Common stock (oil & gas drilling) -- -- 1,302 1,302
Common stock (oil & gas equipment
& services) -- -- 49,129 49,129
Common stock (leisure facilities) -- -- 614,918 614,918
Common stock (electric utilities) -- -- 16 16
Common stock (other industries) 832,736 24,890,564 -- 25,723,300
Convertible preferred stock -- 1,305,209 -- 1,305,209
Liquidating trust -- -- -- --
Rights/Warrants -- 2,926,750 -- 2,926,750
-----------------------------------------------------------------------------------------
Total $832,736 $473,088,092 $36,944,857 $510,865,685
=========================================================================================
Other Financial Instruments* $ 2,305 $ 9,594 $ -- $ 11,899
-----------------------------------------------------------------------------------------
* Other financial instruments include foreign exchange contracts and net
unrealized appreciation on unfunded loan commitments.
The accompanying notes are an integral part of these financial statements.
36 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
The following is a reconciliation of assets valued using significant
unobservable inputs (level 3):
----------------------------------------------------------------------------------------------------------------------
Change in
unrealized Net Transfer in
Balance as Realized appreciation purchases and out of Balance as
of 11/30/10 gain (loss) (depreciation)(1) (sales) Level 3* of 5/31/11
----------------------------------------------------------------------------------------------------------------------
Collateralized loan
obligations $ 4,928,964 $ -- $ 2,282,531 $ -- $ -- $ 7,211,495
Senior secured floating
rate loan interests
(oil & gas drilling) 1,360,984 -- (1,462) 47,379 -- 1,406,901
Senior secured floating
rate loan interests
(cable & satellite) 10,509,939 -- (1,366,293) -- -- 9,143,646
Senior secured floating
rate loan interests
(electric utilities) 333,042 30,604 (158,586) (69,364) -- 135,696
Claims -- -- -- -- -- --
Corporate notes
(biotechnology) 4,391,415 (1,714,336) 1,954,140 (4,631,219) -- --
Corporate notes
(pharmaceuticals) 16,805,356 6,073 799,876 770,449 -- 18,381,754
Common stock (oil &
gas drilling) 1,301 1 -- 1,302
Common stock (oil & gas
equipment & services) 49,129 -- -- -- -- 49,129
Common stock (leisure
facilities) 614,918 -- -- -- -- 614,918
Common stock
(broadcasting) 563,248 -- 517,752 -- (1,081,000) --
Common stock (electric
utilities) 16 -- -- -- -- 16
Rights/Warrants 1,524,964 -- 1,401,786 -- (2,926,750) --
----------------------------------------------------------------------------------------------------------------------
Ending balance $41,083,276 $ (1,677,659) $ 5,429,745 $(3,882,755) $ (4,007,750) $36,944,857
======================================================================================================================
(1) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized gain (loss) from investments in the Statement of
Operations.
* Transfers are calculated beginning of period.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 37
Statement of Assets and Liabilities | 5/31/11 (unaudited)
ASSETS:
Investments in securities, at value (cost $523,122,216) $ 510,865,685
Cash 16,651,418
Foreign currencies, at value (cost $3,355,211) 3,385,128
Receivables --
Interest 4,314,706
Reinvestment of distributions 130,445
Forward foreign currency settlement hedge contracts -- net 2,305
Appreciation on unfunded loan commitments -- net 9,594
Bridge loan commitment fees 35,375
Prepaid expenses 57,987
--------------------------------------------------------------------------------------
Total assets $ 535,452,643
--------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 22,934,327
Unamortized facility fees 26,185
Due to affiliates 573,789
Accrued expenses 293,617
Other liabilities 109,864
--------------------------------------------------------------------------------------
Total liabilities $ 23,937,782
--------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 7,298 shares,
including dividends payable of $28,644 $ 182,478,644
--------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $ 463,679,405
Undistributed net investment income 5,639,742
Accumulated net realized loss on investments and foreign currency
transactions (128,068,215)
Net unrealized loss on investments and unfunded loan commitments (12,246,937)
Net unrealized gain on foreign currency assets and liabilities
denominated in foreign currencies 32,222
--------------------------------------------------------------------------------------
Net assets applicable to common shareowners $ 329,036,217
--------------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE:
No par value, (unlimited number of shares authorized)
Based on $329,036,217/24,592,439 common shares $ 13.38
======================================================================================
The accompanying notes are an integral part of these financial statements.
38 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
Statement of Operations (unaudited)
For the Six Months Ended 5/31/11
INVESTMENT INCOME:
Interest $ 17,562,854
Facility and other fees 747,777
-----------------------------------------------------------------------------------------------------
Total investment income $ 18,310,631
-----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,758,692
Administrative reimbursements 237,916
Transfer agent fees and expenses 6,574
Shareowner communication expenses 21,422
Auction agent fees 242,903
Custodian fees 19,826
Registration fees 12,171
Professional fees 205,867
Printing expenses 28,848
Trustees' fees 8,341
Pricing fees 38,728
Miscellaneous 93,981
-----------------------------------------------------------------------------------------------------
Total expenses $ 2,675,269
-----------------------------------------------------------------------------------------------------
Net investment income $ 15,635,362
-----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $ (5,834,135)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 9,129 $ (5,825,006)
-----------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $ 23,246,601
Unfunded loan commitments 244,902
Foreign currency contracts and other assets and liabilities
denominated in foreign currencies 33,364 $ 23,524,867
-----------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $ 17,699,861
-----------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO PREFERRED
SHAREOWNERS FROM NET INVESTMENT INCOME: $ (1,363,503)
-----------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common shareowners
resulting from operations $ 31,971,720
=====================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 39
Statement of Changes in Net Assets
For the Six Months Ended 5/31/11 and the year ended 11/30/10, respectively
-------------------------------------------------------------------------------------------------------
Six Months
Ended Year
5/31/11 Ended
(unaudited) 11/30/10
-------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 15,635,362 $ 28,540,838
Net realized loss on investments and foreign currency
transactions (5,825,006) (30,838,431)
Change in net unrealized gain (loss) on investments, unfunded
loan commitments and foreign currency transactions 23,524,867 53,949,382
Distributions to preferred shareowners from net investment
income (1,363,503) (2,785,433)
-------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners resulting from operations $ 31,971,720 $ 48,866,356
-------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income
($0.44 and $0.883 per share, respectively) $ (10,806,323) $ (21,602,243)
-------------------------------------------------------------------------------------------------------
Total dividends and distributions to common
shareowners $ (10,806,323) $ (21,602,243)
-------------------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 733,815 $ 1,308,271
-------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners resulting from Trust share transactions $ 733,815 $ 1,308,271
-------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners $ 21,899,212 $ 28,572,384
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period $ 307,137,005 $ 278,564,621
-------------------------------------------------------------------------------------------------------
End of period $ 329,036,217 $ 307,137,005
-------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 5,639,742 $ 2,174,206
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
40 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
Financial Highlights
---------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year
5/31/11 Ended Ended
(unaudited) 11/30/10 11/30/09
---------------------------------------------------------------------------------------------------------------
Per Common Share Operating Performance
Net asset value, beginning of period $ 12.52 $ 11.40 $ 8.62
---------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 0.64 $ 1.17 $ 1.13
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.72 0.94 2.94
Dividends and distributions to preferred shareowners from:
Net investment income (0.06) (0.11) (0.12)
Net realized gains -- -- --
---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.30 $ 2.00 $ 3.95
Distributions to common shareowners from:
Net investment income (0.44) (0.88) (1.12)
Net realized gains -- -- --
Tax return of capital -- -- (0.05)
Capital charge with respect to issuance of:
Preferred shares -- -- --
---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.86 $ 1.12 $ 2.78
---------------------------------------------------------------------------------------------------------------
Net asset value, end of period(c) $ 13.38 $ 12.52 $ 11.40
---------------------------------------------------------------------------------------------------------------
Market value, end of period(c) $ 14.20 $ 13.16 $ 11.54
===============================================================================================================
Total return at market value(d) 11.57% 23.63% 91.01%
Ratios to average net assets of common shareowners
Net expenses(e) 1.67%(f) 1.74% 2.03%
Net investment income before preferred share dividends 9.76%(f) 9.66% 11.79%
---------------------------------------------------------------------------------------------------------------
Year Year Year
Ended Ended Ended
11/30/08 11/30/07 11/30/06
---------------------------------------------------------------------------------------------------------------
Per Common Share Operating Performance
Net asset value, beginning of period $ 18.07 $ 19.66 $ 19.08
---------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 1.88 $ 2.30 $ 2.20
Net realized and unrealized gain (loss) on investments and foreign
currency transactions (8.88) (1.47) 0.52
Dividends and distributions to preferred shareowners from:
Net investment income (0.37) (0.51) (0.46)
Net realized gains (0.03) 0.00(b) --
---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (7.40) $ 0.32 $ 2.26
Distributions to common shareowners from:
Net investment income (1.70) (1.91) (1.63)
Net realized gains (0.35) 0.00(b) (0.05)
Tax return of capital -- -- --
Capital charge with respect to issuance of:
Preferred shares -- -- 0.00(b)
---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (9.45) $ (1.59) $ 0.58
---------------------------------------------------------------------------------------------------------------
Net asset value, end of period(c) $ 8.62 $ 18.07 $ 19.66
---------------------------------------------------------------------------------------------------------------
Market value, end of period(c) $ 6.90 $ 16.79 $ 18.95
===============================================================================================================
Total return at market value(d) (52.10)% (2.02)% 20.94%
Ratios to average net assets of common shareowners
Net expenses(e) 1.60% 1.40% 1.38%
Net investment income before preferred share dividends 12.61% 11.92% 11.37%
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 41
Financial Highlights (continued)
-------------------------------------------------------------------------------------------------
Six Months
Ended Year
5/31/11 Ended
(unaudited) 11/30/10
-------------------------------------------------------------------------------------------------
Preferred share dividends 0.85%(f) 0.94%
Net investment income available to common shareowners 8.91%(f) 8.72%
Portfolio turnover 29%(f) 40%
Net assets of common shareowners, end of period (in thousands) $329,036 $307,137
Preferred shares outstanding (in thousands) $182,450 $182,450
Asset coverage per preferred share, end of period $ 80,089 $ 67,090
Average market value per preferred share(g) $ 25,000 $ 25,000
Liquidation value, including dividends payable, per preferred share $ 25,004 $ 25,005
Ratios to average net assets of common shareowners before waivers and
reimbursement of expenses
Net expenses(h) 1.67%(f) 1.74%
Net investment income before preferred share dividends 9.76%(f) 9.66%
Preferred share dividends 0.85%(f) 0.94%
Net investment income available to common shareowners 8.91%(f) 8.72%
=================================================================================================
----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
11/30/09 11/30/08 11/30/07 11/30/06
----------------------------------------------------------------------------------------------------------------------------
Preferred share dividends 1.26% 2.47% 2.66% 2.39%
Net investment income available to common shareowners 10.53% 10.14% 9.26% 8.98%
Portfolio turnover 32% 31% 80% 75%
Net assets of common shareowners, end of period (in thousands) $278,565 $210,617 $441,493 $478,255
Preferred shares outstanding (in thousands) $182,450 $204,475 $234,500 $234,500
Asset coverage per preferred share, end of period $ 63,175 $ 50,758 $ 72,067 $ 76,000
Average market value per preferred share(g) $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per preferred share $ 25,005 $ 25,007 $ 25,009 $ 25,013
Ratios to average net assets of common shareowners before waivers and
reimbursement of expenses
Net expenses(h) 2.03% 1.60% 1.40% 1.40%
Net investment income before preferred share dividends 11.79% 12.61% 11.92% 11.35%
Preferred share dividends 1.26% 2.47% 2.66% 2.39%
Net investment income available to common shareowners 10.53% 10.14% 9.26% 8.96%
============================================================================================================================
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Amount is less than $0.01 per share.
(c) Net asset value and market value are published in Barron's on Saturday, The
Wall Street Journal on Monday and The New York Times on Monday and
Saturday.
(d) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
market value on the last day of the periods reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Total
investment returns covering less than a full period are not annualized.
Past performance is not a guarantee of future results.
(e) Expense ratios do not reflect the effect of dividend payments to preferred
shareowners.
(f) Annualized.
(g) Expense ratios do not reflect the effect of dividend payments to preferred
shareowners.
(h) Market value is redemption value without an active market.
The information above represents the operating performance data for a share of
common stock outstanding, total investment return, ratios to average net assets
and other supplemental data for the periods indicated. This information has
been determined based upon financial information provided in the financial
statements and market value data for the Trust's common shares.
The accompanying notes are an integral part of these financial statements.
42 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
Notes to Financial Statements | 5/31/11 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Floating Rate Trust (the "Trust") was organized as a Delaware statutory
trust on October 6, 2004. Prior to commencing operations on December 28, 2004,
the Trust had no operations other than matters relating to its organization and
registration as a non-diversified, closed-end management investment company
under the Investment Company Act of 1940, as amended. The Trust is a
diversified fund. The investment objective of the Trust is to provide a high
level of current income. The Trust will, as a secondary objective, also seek
preservation of capital to the extent consistent with its primary objective of
high current income.
Information regarding the Trust's principal risks is contained in the Trust's
original offering prospectus with additional information included in the
Trust's shareowner reports issued from time to time. Please refer to those
documents when considering the Trust's principal risks. At times, the Trust's
investments may represent industries or industry sectors that are interrelated
or have common risks, making the Trust more susceptible to any economic,
political, or regulatory developments or other risks affecting those industries
and sectors.
The Trust invests primarily in senior floating rate loans (Senior Loans). The
Trust may also invest in other floating and variable rate instruments,
including second lien loans, investment grade fixed-income debt securities and
high yield, high risk corporate bonds. The Trust may also invest in below
investment grade securities. Below investment grade securities are commonly
referred to as "junk bonds" and are considered speculative with respect to the
issuer's capacity to pay interest and repay principal. These securities involve
greater risk of loss, are subject to greater price volatility, and are less
liquid, especially during periods of economic uncertainty or change, than
higher rated debt securities. The Trust may invest in securities of issuers
that are in default or that are in bankruptcy. Additionally, the Trust may
invest in "event-linked" bonds, which sometimes are referred to as
"insurance-linked" or "catastrophe" bonds. The return of principal and the
payment of interest on event-linked bonds are contingent on the non-occurrence
of a pre-defined "trigger" event, such as a hurricane or an earthquake of a
specific magnitude. In addition to the specified trigger events, event-linked
bonds may expose the Trust to other risks, including but not limited to issuer
(credit) default, adverse regulatory or jurisdictional interpretations and
adverse tax consequences.
The Trust's investments in certain foreign markets or countries with limited or
developing markets may subject the Trust to a greater degree of risk than in a
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 43
developed market. These risks include disruptive political or economic
conditions and the possible imposition of adverse governmental laws or currency
exchange restrictions.
The Trust is not limited in the percentage of its assets that may be invested
in Senior Loans and other securities deemed to be illiquid. Illiquid securities
may be difficult to dispose of at a price reflective of their value at the
times when the Trust believes it is desirable to do so and their market price
is generally more volatile than that of more liquid securities. Illiquid
securities are also more difficult to value and investment of the Trust's
assets in illiquid securities may restrict the Trust's ability to take
advantage of market opportunities.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Trust in preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Senior floating rate
loan interests (Senior Loans) are valued in accordance with guidelines
established by the Board of Trustees at the mean between the last available
bid and asked prices from one or more brokers or dealers as obtained from
Loan Pricing Corporation. Senior loans for which no reliable price quotes are
available will be valued by Loan Pricing Corporation through the use of
pricing matrices to determine valuations. Fixed-income securities with
remaining maturity of more than sixty days are valued at prices supplied by
independent pricing services, which consider such factors as market prices,
market events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings. Valuations may be supplemented by dealers and other
sources, as required. Equity securities that have traded on an exchange are
valued at the last sale price on the principal exchange where they are
traded. Equity securities that have not traded on the date of valuation or
securities for which sale prices are not available, generally are valued
using the mean between the last bid and asked prices. Equity securities or
loan interests for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily available
or are considered to be unreliable are valued using fair value methods
pursuant to procedures adopted by the Board of Trustees.
44 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Trust's shares are determined as of such
times.
The Trust may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Trust's net asset
value. Thus, the valuation of the Trust's securities may differ from exchange
prices.
At May 31, 2011, twenty-six securities were valued using fair value methods
(in addition to securities valued using prices supplied by independent
pricing services) representing 3.4% of net assets applicable to common
shareowners. Inputs used when applying fair value methods to value a security
may include credit ratings, the financial condition of the company, current
market conditions and comparable securities. Short-term fixed income
securities with remaining maturities of sixty days or less generally are
valued at amortized cost. Money market mutual funds are valued at net asset
value.
Discounts and premiums on debt securities are accreted or amortized,
respectively, daily, into interest income on an effective yield to maturity
basis with a corresponding increase or decrease in the cost basis of the
security. Interest income, including income on interest bearing cash
accounts, is recorded on an accrual basis, net of unrecoverable foreign taxes
withheld at the applicable country rates.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Trust becomes aware of the ex-dividend data in
the exercise of reasonable diligence.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the Statement of Operations from the
effects of changes in market prices of those securities but are included with
the net realized and unrealized gain or loss on investments.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 45
C. Forward Foreign Currency Contracts
The Trust may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized gains or losses are recorded in
the Trust's financial statements. The Trust records realized gains and losses
at the time a portfolio hedge is offset by entry into a closing transaction
or extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contracts and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (see Note 5).
D. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
returns for the prior three fiscal years remain subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Trust's distributions may be shown
in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain (loss) on investments and
foreign currency transactions, or as from paid-in capital, depending on the
type of book/tax differences that may exist.
The tax character of current year distributions paid to common and preferred
shareowners will be determined at the end of the fiscal year. Distributions
paid during the year ended November 30, 2010 was as follows:
----------------------------------------------------------------------------
2010
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $24,387,676
----------------------------------------------------------------------------
Total distribution $24,387,676
============================================================================
The following shows the components of distributable earnings on a federal
income tax basis at November 30, 2010:
46 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
-----------------------------------------------------------------------------
2010
-----------------------------------------------------------------------------
Distributable earnings:
Capital loss carryforward $(101,854,514)
Post-October loss deferred (20,412,580)
Distributions payable (37,997)
Unrealized depreciation (35,813,786)
-----------------------------------------------------------------------------
Total $(158,118,877)
=============================================================================
The difference between book-basis and tax-basis unrealized depreciation is
primarily attributable to the difference between book and tax amortization
methods for premiums and discounts on fixed-income securities, book/tax
differences in the accrual of income on securities in default and the
realization of unrealized gain on investments in passive foreign investment
companies.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Trust's custodian or a subcustodian of the Trust. The Trust's
investment adviser, Pioneer Investment Management, Inc. (PIM), is responsible
for determining that the value of the collateral remains at least equal to
the repurchase price.
F. Automatic Dividend Reinvestment Plan
All common shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional common shares
of the Trust in lieu of cash. Shareowners may elect not to participate in the
Plan. Shareowners not participating in the Plan receive all dividends and
capital gain distributions in cash. Participation in the Plan is completely
voluntary and may be terminated or resumed at any time without penalty by
notifying American Stock Transfer & Trust Company, the agent for shareowners
in administering the Plan (the Plan Agent), in writing prior to any dividend
record date; otherwise such termination or resumption will be effective with
respect to any subsequently declared dividend or other distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate in
the Plan on the shareowner's behalf. If the firm or nominee does not offer
the Plan, dividends will be paid in cash to the shareowner of record. A firm
or nominee may reinvest a shareowner's cash dividend in common shares of the
Trust on terms that differ from the terms of the plan.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 47
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional unissued
but authorized common shares from the Trust or (ii) by purchase of
outstanding common shares on the New York Stock Exchange or elsewhere. If, on
the payment date for any dividend the net asset value per common share is
equal to or less than the market price per share plus estimated brokerage
trading fees (market premium), the Plan Agent will invest the dividend amount
in newly issued common shares. The number of newly issued common shares to be
credited to each account will be determined by dividing the dollar amount of
the dividend by the net asset value per common share on the date the shares
are issued, provided that the maximum discount from the then current market
price per share on the date of issuance does not exceed 5%. If, on the
payment date for any dividend, the net asset value per common share is
greater than the market value (market discount), the Plan Agent will invest
the dividend amount in common shares acquired in open-market purchases. There
are no brokerage charges with respect to newly issued common shares. However,
each participant will pay a pro rata share of brokerage trading fees incurred
with respect to the Plan Agent's open-market purchases. Participating in the
Plan does not relieve shareowners from any federal, state or local taxes
which may be due on dividends paid in any taxable year. Shareowners holding
Plan shares in a brokerage account may not be able to transfer the shares to
another broker and continue to participate in the Plan.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
manages the Trust's portfolio. Management fees payable under the Trust's
Advisory Agreement with PIM are calculated daily at the annual rate of 0.70% of
the Trust's average daily managed assets. "Managed assets" means (a) the total
assets of the Trust, including any form of investment leverage, minus (b) all
accrued liabilities incurred in the normal course of operations, which shall
not include any liabilities or obligations attributable to investment leverage
obtained through (i) indebtedness of any type (including, without limitation,
borrowing through a credit facility of the issuance of debt securities), (ii)
the issuance of preferred stock or other similar preference securities, and/or
(iii) any other means. For the six months ended May 31, 2011, the net
management fee was 0.70% of the Trust's average daily managed assets, which was
equivalent to 1.10% of the Trust's average daily net assets attributable to the
common shareowners.
In addition, under PIM's management and administration agreements, certain
other services and costs are paid by PIM and reimbursed by the Trust. At May
31, 2011, $573,789 was payable to PIM related to management costs,
48 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
administrative costs and certain other reimbursements and is included in "Due
to affiliates" on the Statement of Assets and Liabilities.
Effective September 1, 2010, PIM has retained State Street Bank and Trust
Company (State Street) to provide certain administrative and accounting
services to the Trust on its behalf. For such services, PIM pays State Street a
monthly fee at an annual rate of 0.07% of the Trust's average daily managed
assets up to $500 million and 0.03% for average daily managed assets in excess
of $500 million, subject to a minimum monthly fee of $10,000. Previously, PIM
had retained Princeton Administrators, LLC (Princeton) to provide such
services. PIM paid Princeton a monthly fee at an annual rate of 0.07% of the
Trust's average daily managed assets up to $500 million and 0.03% for average
daily managed assets in excess of $500 million, subject to a minimum monthly
fee of $10,000. Neither State Street nor Princeton received compensation
directly from the Trust for providing such services.
3. Transfer Agents
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly
owned indirect subsidiary of UniCredit, through a sub-transfer agency agreement
with American Stock Transfer & Trust Company, provides substantially all
transfer agent and shareowner services related to the Trust's common shares at
negotiated rates. Deutsche Bank Trust Company Americas (Deutsche Bank) is the
transfer agent, registrar, dividend paying agent and auction agent with respect
to the Trust's Auction Market Preferred Shares (AMPS). The Trust pays Deutsche
Bank an annual fee, as is agreed to from time to time by the Trust and Deutsche
Bank, for providing such services.
In addition, the Trust reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareowner communications activities such as proxy and
statement mailings and outgoing phone calls.
4. Expense Offset Arrangement
The Trust has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion
of the Trust's custodian expenses. For the six months ended May 31, 2011, the
Trust expenses were not reduced under such arrangement.
5. Forward Foreign Currency Contracts
The Trust may enter into any forward foreign currency contracts that obligate
the Trust to deliver or take delivery of currencies at specified future
maturity dates. Alternatively, prior to the settlement date of a forward
foreign currency contract, the Trust may close out such contract by entering
into an offsetting contract.
There were no open portfolio hedges on May 31, 2011.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 49
6. Unfunded Loan Commitments
As of May 31, 2011, the Trust had unfunded loan commitments of $4,041,174,
(excluding unrealized appreciation on those commitments of $9,594 as of May 31,
2011) which could be extended at the option of the borrower, pursuant to the
following loan agreements:
--------------------------------------------------------------------------------
Unfunded Loan
Borrower Commitment
--------------------------------------------------------------------------------
CB Richard Ellis Services, Inc., Incremental Tranche Term Loan C $1,000,000
CB Richard Ellis Services, Inc., Incremental Tranche Term Loan D $1,000,000
Excelitas Technologies Corp., Delay Draw Term Loan $1,000,000
Frac Tech Service, Delay Draw Term Loan $ 488,235
Inventive Health, Inc., Term Loan B-2 $ 256,667
National Specialty Hospitals, Inc., Delayed Draw Term Loan $ 196,782
Physician Oncology Service LP, Delayed Draw Term Loan $ 99,490
7. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the six months ended
May 31, 2011 and year ended November 30, 2010 were as follows:
--------------------------------------------------------------------------------
5/31/11 11/30/10
--------------------------------------------------------------------------------
Shares outstanding at beginning of period 24,536,526 24,428,148
Reinvestment of distributions 55,913 108,378
--------------------------------------------------------------------------------
Shares outstanding at end of period 24,592,439 24,536,526
--------------------------------------------------------------------------------
The Trust may classify or reclassify any unissued shares of beneficial interest
into one or more series of preferred shares of beneficial interest. As of May
31, 2011, there were 7,298 AMPS as follows: Series M7-2,434, Series W7-2,432
and Series TH7-2,432.
Dividends on Series M7, Series W7 and Series TH7 are cumulative at a rate which
is to be reset every seven days based on the results of an auction. An auction
fails if there are more AMPS offered for sale than there are buyers. When an
auction fails, the dividend rate for the period will be the maximum rate on the
auction dates described in the prospectus for the AMPS. Preferred shareowners
are not able to sell their AMPS at an auction if the auction fails. Since
February 2008, the Trust's auctions related to the AMPS have failed. The
maximum rate for each series is the greater of 125% of the one week LIBOR rate
or the LIBOR rate plus a spread of 1.25%. Dividend rates on AMPS ranged from
1.413% to 1.505% during the six months ended May 31, 2011.
50 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
The Trust may not declare dividends or make other distributions on its common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, the Trust does not comply with the asset coverage
ratios described in the prospectus for the AMPS.
The AMPS are redeemable at the option of the Trust, in whole or in part, on any
dividend payment date at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared. The AMPS are also subject to mandatory
redemption at $25,000 per share plus any accumulated or unpaid dividends,
whether or not declared, if certain requirements relating to the composition of
the assets and liabilities of the Trust as set forth in the Statement of
Preferences are not satisfied.
The holders of AMPS have voting rights equal to the holders of the Trust's
common shares (one vote per share) and will vote together with holders of the
common shares as a single class. Holders of AMPS are also entitled to elect two
of the Trust's Trustees. In addition, the Investment Company Act of 1940, as
amended, requires that along with approval by shareowners that might otherwise
be required, the approval of the holders of a majority of any outstanding
preferred shares, voting separately as a class, would be required to (a) adopt
any plan of reorganization that would adversely affect the preferred shares and
(b) take any action requiring a vote of security holders, including, among
other things, changes in the Trust's subclassification as a closed-end
investment company or changes in its fundamental investment restrictions.
8. Pending Litigation
The Trust is currently involved in litigation matters relating to Trust
investments. The Trust believes these claims are without merit and is defending
them vigorously. At May 31, 2011, it is reasonably possible that adverse
outcomes may result. Currently, the amount of either judgment cannot be
reasonably estimated.
9. Subsequent Events
The Board of Trustees of the Trust declared on June 3, 2011 a dividend from
undistributed net investment income of $0.08 per common share payable June 30,
2011 to common shareowners of record on June 15, 2011.
Subsequent to May 31, 2011, dividends declared and paid on preferred shares
totaled $333,850 in aggregate for the three outstanding preferred share series
through July 22, 2011.
In preparing these financials statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure, and has
determined that other than disclosed above, there were no subsequent events
requiring recognition or disclosure in the financials statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 51
ADDITIONAL INFORMATION (unaudited)
During the period, there have been no material changes in the Trust's
investment objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust that have not been
approved by the shareowners. During the period, there have been no changes in
the principal risk factors associated with investment in the Trust. There were
no changes in the persons who are primarily responsible for the day-to-day
management of the Trust's portfolio.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its common
shares in the open market.
52 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham Christopher J. Kelley, Secretary
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Legal Counsel
Bingham McCutchen LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Shareowner Services and Sub-Transfer Agent
American Stock Transfer & Trust Company
Preferred Share Auction/Transfer Agent and Registrar
Deutsche Bank Trust Company Americas
Sub-Administrator
State Street Bank and Trust Company
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Trust voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.pioneerinvestments.com. This information is also available
on the Securities and Exchange Commission's web site at http://www.sec.gov.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 53
This page for your notes.
54 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
This page for your notes.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 55
This page for your notes.
56 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
This page for your notes.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 57
This page for your notes.
58 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
This page for your notes.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/11 59
This page for your notes.
60 Pioneer Floating Rate Trust | Semiannual Report | 5/31/11
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
website at www.pioneerinvestments.com.
The Trust files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has considered
whether the provision of non-audit services that were rendered to the
Affiliates (as defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
The registrant has a separately-designated standing audit
committe eestablished in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Information not required in semi annual reports on form NCSR.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Information not required in semi annual reports on form NCSR.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
During the period covered by this report, there were no purchases
made by or on behalf of the registrant or any affiliated purchaser
as defined in Rule 10b-18(a)(3) under the Securities Exchange Act
of 1934 (the Exchange Act), of shares of the registrants equity
securities that are registered by the registrant pursuant to
Section 12 of the Exchange Act.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Floating Rate Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date July 29, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date July 29, 2011
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date July 29, 2011
* Print the name and title of each signing officer under his or her signature.