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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21654
Pioneer Floating Rate Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: November 30
Date of reporting period: December 1, 2008 through May 31, 2009
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer Floating
Rate Trust
--------------------------------------------------------------------------------
Semiannual Report | May 31, 2009
--------------------------------------------------------------------------------
Ticker Symbol: PHD
[LOGO]PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Schedule of Investments 11
Financial Statements 30
Notes to Financial Statements 35
Trustees, Officers and Service Providers 45
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe have been experiencing one of their
most tumultuous periods in history. Investors have witnessed volatility of a
magnitude that many have never before seen. Distance often provides the best
vantage point for perspective. Still, we believe that the benefits of basic
investment principles that have stood the test of time -- even in the midst of
market turmoil -- cannot be underestimated.
First, invest for the long term. The founder of Pioneer Investments, Philip L.
Carret, began his investment career during the 1920s. One lesson he learned is
that while great prosperity affords an advantageous time for selling stocks,
extreme economic slumps can create opportunities for purchase. Indeed, many of
our portfolio managers, who follow the value-conscious investing approach of
our founder, are looking at recent market conditions as an opportunity to buy
companies whose shares we believe have been unjustifiably beaten down by
indiscriminate selling, but that we have identified as having strong prospects
over time. While investors may be facing a sustained market downturn, we
continue to believe that patience, along with staying invested in the market,
are important considerations for long-term investors.
A second principle is to stay diversified across different types of
investments. The global scope of the current market weakness poses challenges
for this basic investment axiom. But the turbulence makes now a good time to
reassess your portfolio and make sure that your investments continue to meet
your needs. We believe you should work closely with your financial advisor to
find the mix of stocks, bonds and money market assets that is best aligned to
your particular risk tolerance and investment objective.
As the investment markets sort through the continuing crisis in the financial
industry, we are staying focused on the fundamentals and risk management. With
more than 80 years of experience behind us, we have learned how to navigate
turbulent markets. At Pioneer Investments, risk management has always been a
critical part of our culture -- not just during periods of extraordinary
volatility. Our investment process is based on fundamental research,
quantitative analysis and active portfolio management. This three-pillared
process, which we apply to each of our portfolios, is supported by an
integrated team approach and is designed to carefully balance risk and reward.
While we see potential chances for making money in many corners of the market,
it takes
2 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
research and experience to separate solid investment opportunities from
speculation.
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. Thank you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA Inc.
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of the opinion of Trust management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 3
Portfolio Management Discussion | 5/31/09
After struggling during the final months of 2008, the bank loan market began to
recover in 2009 as investors saw opportunity in the low prices of loans. In the
following interview, Jonathan Sharkey discusses the performance of Pioneer
Floating Rate Trust during the six months ended May 31, 2009. Mr. Sharkey, a
member of Pioneer's Fixed Income Department, is responsible for the daily
management of the Trust.
Q How did the Trust perform over the six months ended May 31, 2009?
A For the six-month period ended May 31, 2009, Pioneer Floating Rate Trust
returned 19.19% at net asset value and 33.78% at market price. The Trust's
benchmark, the Credit Suisse Leveraged Loan Index (the CSFB Index),
returned 17.72% over the same period. Unlike the Trust, the Index does not
employ leverage. At the end of May 2009, the Trust was selling at a
discount of market price-to-net asset value of 10.16%, which was slightly
more than its peers; and the Trust's SEC yield was 6.90%. In April 2009, we
reduced the Trust's dividend rate, a cut back which resulted from a decline
in LIBOR (the London Interbank Offering Rate), which had risen to a
historic level relative to the federal funds rate, and the rising number of
defaults in the portfolio.
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 isn't unusual to find closed-end funds trading at
a discount to the Trust's net asset value. At the end of the period,
closed-end funds on average were trading at discounts to their actual
underlying value.
Q What were the principal factors affecting the Trust's performance during
the six months ended May 31, 2009?
A The final months of 2008 saw floating-rate bank loans decline in value in
the aftermath of the bankruptcy of investment bank Lehman Brothers and the
collapse or near-collapse of several other financial institutions, some of
which required government bailouts. One of the significant factors leading
to the selling pressure in the market occurred as hedge funds unwound their
bank loan portfolios at a time when few buyers were interested, especially
as the number of defaults increased. During that period, the average price
of a bank loan fell to about 63 cents on the dollar. Much of the debt that
was sold off by hedge funds was rated B and CCC, and Pioneer Floating Rate
Trust, with its average credit rating of B, experienced significant price
erosion. In that situation, we liquidated parts of the portfolio and built
up a cash position that was slightly larger than 10% of the market value of
the
4 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Trust. We felt that the relatively large cash position would provide
adequate credit quality and allow the Trust to continue to pay dividends.
During the first three months of the reporting period, liquidity dried up,
companies could not refinance debt, the bankruptcy recovery rate was low,
and investors favored quality above everything else. As a result, higher-
quality securities rallied. During the second three months of the period
from March 2009 through May 2009, we began to see a rally in the rest of
the market, as investors perceived good value and decided to put their cash
back to work. Collateralized Loan Obligations (CLOs), which represent
nearly 60% of investments in loans, purchased more BB-rated bank loans due
to the combination of excess cash on hand from the purchase of Alltel
Cellular by Verizon and the structural benefits of adding loans at 80 cents
on the dollar. There also were significantly fewer auctioned portfolios.
Stability returned to the market, which boosted investor confidence and
resulted in increased investing in lower-rated (B, CCC-rated) loans, which
make up a substantial portion of the Trust's portfolio, as investors looked
for more yield. In that environment, lower-quality securities rallied.
Q Can you comment on the use of leverage in the Trust's portfolio?
A We believe the use of leverage for investment purposes can increase
investment opportunity, as well as investment risk. The Trust uses
financial leverage primarily to increase the dividend yield to shareowners.
During the six-month period ended May 31, 2009, the Trust utilized
auction-rate preferred shares as a low-cost way of borrowing to provide
leverage for the Trust. In December 2008, we reduced the amount of leverage
in the Trust.
Because of the auction failures and the steep decline in the average price
of bank loans, the Trust postponed its dividend for November 2008. However,
after liquidating parts of the portfolio and building up a cash position,
the Trust was able to pay the November dividend on December 9, 2008.
Q What types of investments most helped or hurt the Trust's performance
during the six months ended May 31, 2009?
A During the reporting period, we used the Trust's cash to diversify the
portfolio and upgrade the credit quality. As we got further confidence
during the year that the loan market had realized a floor of stability that
would help ensure our ability to satisfy all the requirements and tests to
ensure the dividend, we started to add exposure to the Trust's portfolio.
Given the backdrop of pending increased default rates for the loan asset
class in 2009, the bulk of cash was deployed in more "up-in-quality" names
that we believed would continue to readily pay interest for the Trust, and
thus preserve capital. This strategy would also help us to maintain the
flexibility to manage through the tests to pay our dividends on the Trust.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 5
An overweight to broadcasting and cable companies benefited the Trust's
performance. Among cable companies, the Spanish-language network Univision
stands out. Retailers, such as Toys R US and Dollar General, also helped
boost the Trust's return. While retailers suffered late in 2008, they
rallied earlier this year when year-over-year sales results weren't as bad
as expected. Investments in airlines also contributed to the Trust's
performance. Airlines had made substantial cutbacks in costs and capacity
in 2008, and we found the valuations to be at attractive levels. Positions
in health care and telecommunications also aided the Trust's results.
On the negative side, the Trust's investments in CLO bonds were the biggest
drawback to performance, and any investment related to real estate or
gaming held back results. In addition, the default rate of the loans held
by the Trust was greater than usual during the six-month period ended May
31, 2009. As companies defaulted on loans, their values declined and, in
some cases, interest payments were suspended, thus having a negative impact
on the Trust's return.
Q What is your investment outlook?
A We believe that the economy is stabilizing. As of May 31, 2009, auto sales,
consumer confidence and commodity prices were somewhat better than they
were several months ago. While the unemployment rate and defaults continue
to rise, we believe that gross domestic product (GDP) could be positive
over the next several months.
The market's advance offers evidence that many companies can now obtain
financing through the bond market, and this could aide in the recovery
value of loans that are distressed or in bankruptcy. The loan market also
has shown signs of stabilization as buyers have stepped in to make
investments. Additionally, liquidity has improved in the bond market, which
has led to refinancing activity in loans. The lack of any forward-looking
calendar for loan issuance has created a demand for loan assets, raising
the potential for price appreciation of existing loans. Also, investors
have begun buying bank loans as a hedge against inflation. If rising
inflation continues to be a concern, demand for bank loans is likely to
increase. Going forward, we will aim to decrease the Trust's positions in
companies that we feel could default and redeploy the assets into companies
that we believe have better relative value.
Please refer to the Schedule of Investments on pages 11-29 for a full listing of
Trust securities.
Information regarding the Trust's principal investment risks is contained in
the Trust's original offering prospectus. Please refer to this document when
considering the Trust's risks.
6 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. The Trust may invest in securities of issuers that
are in default or that are in bankruptcy.
When interest rates rise, the prices of fixed-income securities in the Trust
will generally fall. Conversely, when interest rates fall the prices of
fixed-income securities in the Trust will generally rise. The floating-rate
feature of the Trust means that the Trust will not experience capital
appreciation in a declining interest-rate environment. Investments in the Trust
are subject to possible loss due to the financial failure of issuers of
underlying securities and their inability to meet their debt obligations.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 7
Portfolio Summary | 5/31/09
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Senior Secured Loans 89.1%
Corporate Bonds 9.1%
Temporary Cash Investment 1.7%
Collateralized Loan Obligations 0.1%
Common Stocks* 0.0%
Claims* 0.0%
Warrants* 0.0%
* Amount is less than 0.1%
Portfolio Quality
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on S&P ratings.)
[THE FOLLOWING DATA IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
A 0.2%
BBB 2.2%
BB 25.6%
B 25.1%
CCC 5.5%
CC 0.9%
D 2.1%
Not Rated** 36.7%
Cash Equivalents 1.7%
The Trust is actively managed and current holdings may be different.
** These securities are judged to be similar but slightly lower in quality
than the rest of the portfolio.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)***
1. Mylan, Inc., U.S. Tranche B Term Loan, 3.75%-4.75%, 10/2/14 4.42%
2. Azithromycin Royalty Sub LLC, 16.0%, 5/15/19 (144A) 3.22
3. Solutia, Inc., Term Loan, 7.25%, 2/28/14 2.94
4. HCA, Inc., Tranche B-1 Term Loan, 6.507%, 11/18/13 2.82
5. Broadstripe LLC, First Lien Term Loan, 9.25%, 6/30/11 2.76
6. Cequel Communications LLC, Term Loan, 2.349-2.401%, 11/5/13 2.50
7. Cricket Communications, Inc., Term Loan B, 5.75%, 6/16/13 2.40
8. SMG H5 Pty, Ltd., Facility Term Loan A, 5.365%-6.267%, 12/24/12 2.33
9. Wm. Wrigley Jr. Co., Tranche B Term Loan, 6.5%, 9/30/14 2.30
10. Talecris Biotherapeutics Holdings Corp., First Lien Term Loan, 3.86%-5.5%, 12/6/13 2.21
*** This list excludes temporary cash and derivative investments. The Trust is
actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
8 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Prices and Distributions | 5/31/09
Market Value per Common Share
--------------------------------------------------------------------------------
5/31/09 11/30/08
$ 8.49 $ 6.90
---------------------------------------------------
Premium (Discount) (10.16)% (19.95)%
---------------------------------------------------
Net Asset Value per Common Share
--------------------------------------------------------------------------------
5/31/09 11/30/08
$ 9.45 $ 8.62
--------------------------------------------------
Distributions per Common Share: 12/1/08-5/31/09
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Income Capital Gains Capital Gains
$0.6500 $ -- $ --
---------------------------------------------------------
Yields
--------------------------------------------------------------------------------
5/31/09 11/30/08
Distribution Yield at Market Price 13.43% 24.69%
---------------------------------------------------------------------
Distribution Yield at Net Asset Value 12.06% 19.76%
---------------------------------------------------------------------
30-day SEC Yield 6.90% 25.60%
---------------------------------------------------------------------
Past performance data quoted represents past performance, which is no guarantee
of future results.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 9
Performance Update | 5/31/09
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in market value, including
reinvestment of dividends and distributions, of a $10,000 investment made in
common shares of Pioneer Floating Rate Trust, compared to that of the Credit
Suisse ("CS") Leveraged Loan Index, an index of senior secured U.S. dollar
denominated loans.
Cumulative Total Returns
(As of May 31, 2009)
------------------------------------------------------
Net Asset Market
Value Value
------------------------------------------------------
Life-of-Trust
(12/23/04) -19.97% -31.48%
------------------------------------------------------
1 Year -30.20 -32.53
------------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer CS
Floating Rate Leveraged
Trust Loan Index
5/05 $10,042 $10,008
5/06 11,222 10,039
5/07 12,631 10,063
5/08 11,442 10,074
5/09 $6,852 $10,570
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below Net Asset Value "NAV", due to such factors as
interest rate changes, and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Closed-end funds, unlike open-end funds, are not continuously offered. There is
a one-time public offering and, once issued, shares of closed-end funds are
sold in the open market through a stock exchange and frequently trade at prices
lower than their NAV. NAV per common share is total assets less total
liabilities, which includes preferred shares, divided by the number of common
shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher than market
price, dividends are assumed to be reinvested at prices obtained under the
Trust's dividend reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions.
Index comparison begins on 12/31/04. The CS Leveraged Loan Index is a
representative index of tradeable, senior, secured U.S. dollar-denominated
loans. The index began in January 1992. Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Trust returns, do not reflect any
fees, expenses or sales charges. The index is not leveraged. You cannot invest
directly in an index.
10 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Schedule of Investments | 5/31/09 (unaudited)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
COLLATERALIZED LOAN
OBLIGATIONS -- 0.2% of Net Assets
BANKS -- 0.2%
Diversified Banks -- 0.1%
1,000,000(a)(b) BBB/B1 Primus, Ltd., 2007-2A D, 3.531%,
7/15/21 (144A) $ 40,000
1,000,000(a)(b) BB/B3 Rampart, Ltd., 2006-1A, 4.657%,
4/18/21 (144A) 60,000
1,000,000(a)(b) BB/B3 Stanfield McLaren, Ltd., 2007-1A B2L, 5.16%,
2/27/21 (144A) 60,166
------------
$ 160,166
-----------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.1%
1,013,186(a)(b) BBB/Caa1 Gulf Stream Sextant, Ltd., 2007-1A D, 3.716%,
6/17/21 (144A) $ 44,033
1,000,000(a)(b) BB/Caa2 Landmark CDO, Ltd., 2007-9A E, 4.631%,
4/15/21 (144A) 85,000
2,000,000(a)(b) BBB/Ba3 Stone Tower, Ltd., 2007-6A C, 2.463%,
4/17/21 (144A) 80,000
------------
$ 209,033
------------
Total Banks $ 369,199
-----------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.0%
Other Diversified Financial Services -- 0.0%
1,000,000(a)(b) BBB/Ba3 ACA, Ltd., 2007-1A D, 3.481%, 6/15/22 (144A) $ 65,000
-----------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.0%
1,025,190(a)(b) BBB-/B3 Goldman Sachs Asset Management, Plc,
2007-1A D, 3.778%, 8/1/22 (144A) $ 46,134
------------
Total Diversified Financials $ 111,134
-----------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED LOAN OBLIGATIONS
(Cost $6,211,974) $ 480,333
-----------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 160.8% of Net Assets*
ENERGY -- 7.9%
Oil & Gas Drilling -- 1.6%
2,200,000 NR/Caa3 Big West Oil LLC, Delayed Advance Term Loan,
6.5%, 5/15/14 $ 1,745,333
1,750,000 NR/NR Big West Oil LLC, Initial Advance Term Loan,
6.5%, 5/15/14 1,388,333
1,250,000(c) NR/NR TARH E&P Holdings, L.P., First Lien Term Loan,
6.75%, 6/29/12 656,250
------------
$ 3,789,916
-----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 11
Schedule of Investments | 5/31/09 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Oil & Gas Equipment & Services -- 3.5%
701,606 BB-/B2 Coffeyville Resources LLC, Funded LC Loan,
3.15%, 12/28/10 $ 629,107
2,254,072 BB-/B2 Coffeyville Resources LLC, Tranche D Term Loan,
8.75%, 12/30/13 2,021,152
714,286 B/NR Fenwal, Inc., First Lien Delayed Draw Term Loan,
2.924%, 2/28/14 550,595
4,200,000 B/NR Fenwal, Inc., Initial First Lien Term Loan,
2.569% - 2.924%, 2/28/14 3,237,499
4,062,469 NR/NR Value Creation, Inc., Term Loan, 12.5%, 2/15/10 1,584,363
------------
$ 8,022,716
--------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 2.2%
4,995,000(a)(c) NR/NR Crusader Energy Group, Inc., Second Lien Term
Loan, 11.25%, 7/18/13 $ 3,621,375
1,977,942 B/Caa1 Venoco, Inc., Second Lien Term Loan,
4.375%, 5/7/14 1,389,504
------------
$ 5,010,879
--------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.6%
1,700,000 B/B1 Atlas Pipeline Partners, L.P., Term Loan,
4.75% - 5.0%, 7/27/14 $ 1,496,000
------------
Total Energy $ 18,319,511
--------------------------------------------------------------------------------------------------------
MATERIALS -- 10.2%
Diversified Chemicals -- 5.6%
695,114 BB+/Ba1 Ashland, Inc., Term B Borrowing,
6.65% -- 7.65%, 5/13/14 $ 695,548
1,000,000(a)(c)(d) NR/NR Panda Hereford Ethanol, L.P., Tranche A Term
Loan, 11.0%, 7/28/13 225,000
14,824,875 B/B1 Solutia, Inc., Term Loan, 7.25%, 2/28/14 12,058,449
------------
$ 12,978,997
--------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.3%
750,000 NR/NR Nalco Co., Term Loan, 6.5%, 5/13/16 $ 753,281
--------------------------------------------------------------------------------------------------------
Paper Packaging -- 1.7%
459,727 B+/B1 Graham Packaging Co., L.P., New Term Loan,
2.688%, 10/7/11 $ 435,755
895,575 NR/NR Graham Packaging Co., L.P., Term Loan C,
6.75%, 4/5/14 875,424
2,000,000 BB-/Ba3 Graphic Packaging International, Inc., Incremental
Term Loan, 3.099% - 3.958%, 5/16/14 1,866,876
778,522 B/B2 Solo Cup Co., Term Loan B-1,
4.16% - 4.692%, 2/27/11 749,883
------------
$ 3,927,938
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
12 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Diversified Metals & Mining -- 1.7%
4,130,494 NR/NR Murray Energy Corp., First Lien Tranche B Term
Loan, 6.938%, 1/28/10 $ 3,923,970
-----------------------------------------------------------------------------------------------------
Steel -- 0.4%
1,406,486 BB-/B3 Essar Steel Algoma, Inc., Term Loan,
2.82%, 6/20/13 $ 872,021
-----------------------------------------------------------------------------------------------------
Paper Products -- 0.5%
756,135(a)(c) CC/Caa2 Newark Group, Inc., Credit-Link LC Loan,
6.82%, 3/9/13 $ 400,752
165,237(a)(c) CC/Caa2 Newark Group, Inc., Term Loan, 10.75%, 3/9/13 87,576
650,000 BB-/Ba3 NewPage Corp., Term Loan, 4.063% -
5.0%, 12/22/14 528,589
------------
$ 1,016,917
------------
Total Materials $ 23,473,124
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 6.1%
Aerospace & Defense -- 1.6%
492,321 B+/B3 Aeroflex, Inc., Tranche B-2 Term Loan,
4.125% - 4.625%, 8/15/14 $ 356,933
2,029,413 BBB-/Ba1 BE Aerospace, Inc., Tranche B Term Loan,
5.5%, 7/28/14 1,972,336
945,685 BB/B1 Hunter Defense Technologies, Inc., Term Loan,
4.47% - 5.5%, 8/22/14 796,740
904,793 CCC+/NR IAP Worldwide Services, Inc., First Lien Term Loan,
7.25%, 12/30/12 581,329
------------
$ 3,707,338
-----------------------------------------------------------------------------------------------------
Building Products -- 1.3%
5,565,545(d) D/Caa3 Atrium Companies, Inc., Closing Date Term Loan,
11.75%, 5/31/12 $ 1,521,247
1,691,178 NR/NR Custom Building Products, Inc., First Lien Term
Loan, 8.0%, 10/29/11 1,441,729
------------
$ 2,962,976
-----------------------------------------------------------------------------------------------------
Construction & Engineering -- 1.8%
2,985,699 B/B2 Bosque Power Co. LLC, Term Loan,
7.025%, 1/16/15 $ 2,179,560
1,991,317 BB+/Ba1 URS Corp., Tranche B Term Loan,
2.569% - 3.427%, 5/15/13 1,945,517
------------
$ 4,125,077
-----------------------------------------------------------------------------------------------------
Capital Goods -- 0.3%
997,436 BB-/Ba2 Kansas City Southern Railway Co., Advance Term
Loan B, 2.18% -- 2.99%, 4/28/13 $ 872,756
-----------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 1.1%
2,992,500 BB/B1 Manitowoc Co., Inc., Term Loan B, 6.5%, 8/25/14 $ 2,466,320
------------
Total Capital Goods $ 14,134,467
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 13
Schedule of Investments | 5/31/09 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
COMMERCIAL & PROFESSIONAL SERVICES -- 4.8%
Commercial Printing -- 0.7%
51,352 NR/Ba3 Cenveo Corp., Delayed Draw Term Loan,
5.727%, 6/21/13 $ 46,923
1,798,648 BB-/Ba3 Cenveo Corp., Term C Facility, 5.727%, 6/21/13 1,643,514
------------
$ 1,690,437
---------------------------------------------------------------------------------------------------
Diversified Commercial & Professional Services -- 4.1%
645,610 BB-/Ba3 Allied Security Holdings LLC, Term Loan,
4.5%, 2/20/15 $ 633,505
977,500 NR/NR Aramark Canada, Ltd., Canadian Term Loan,
3.095%, 1/26/14 850,425
7,994,428(a) NR/NR Cydcor, Inc., First Lien Tranche B Term Loan,
9.0%, 2/5/13 6,395,543
EURO 968,816 NR/NR Mediannuaire Holding, Term Loan B-2,
3.913%, 10/10/14 754,220
EURO 968,816 NR/NR Mediannuaire Holding, Term Loan C,
4.413%, 10/9/15 754,220
------------
$ 9,387,913
------------
Total Commercial & Professional Services $ 11,078,350
---------------------------------------------------------------------------------------------------
TRANSPORTATION -- 3.6%
Airlines -- 2.5%
980,000 NR/Ba2 Delta Airlines, Inc., Credit-Linked Deposit Loan,
0.218%, 4/30/12 $ 838,309
476,364 B/B2 Delta Airlines, Inc., Second Lien Term Loan,
3.664%, 4/30/14 308,445
2,905,638 BB-/B1 Northwest Airlines, Inc., Term Loan,
2.36%, 12/31/10 2,719,678
3,650,000 B+/B3 US Airways Group, Inc., Term Loan,
2.809%, 3/21/14 2,008,515
------------
$ 5,874,947
---------------------------------------------------------------------------------------------------
Trucking -- 0.4%
563,290 NR/NR SIRVA Worldwide, Inc., Revolving Credit Loan,
9.5%, 5/12/12 $ 253,480
2,270,344 NR/NR SIRVA Worldwide, Inc., Second Lien Term Loan,
12.0%, 5/12/15 227,034
1,023,776 NR/NR SIRVA Worldwide, Inc., Term Loan, 9.5%, 5/12/12 511,888
------------
$ 992,402
---------------------------------------------------------------------------------------------------
Airport Services -- 0.7%
2,020,213 NR/NR AWAS Capital, Inc., First Lien Term Loan,
3.0%, 3/24/13 $ 1,565,665
------------
Total Transportation $ 8,433,014
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
AUTOMOBILES & COMPONENTS -- 4.8%
Auto Parts & Equipment -- 1.8%
1,000,000 B/B2 Allison Transmission, Inc., Term Loan,
3.12% - 3.15%, 8/7/14 $ 777,813
9,075,710 NR/NR Delphi Corp., Initial Tranche C Term Loan,
8.5%, 6/30/09 3,032,803
924,290 NR/NR Delphi Corp., Subsequent Tranche C Term Loan,
8.5%, 6/30/09 308,867
------------
$ 4,119,483
-------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 3.0%
9,798,797 CCC+/Caa1 Ford Motor Co., Term Loan, 3.35% -
4.14%, 12/15/13 $ 7,006,140
------------
Total Automobiles & Components $ 11,125,623
-------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.8%
Homebuilding -- 0.8%
1,869,741(a)(c) D/NR Rhodes Companies LLC, First Lien Term Loan,
9.75%, 11/21/10 $ 631,038
1,000,000(a) NR/NR WAICCS Las Vegas 3 LLC, First Lien Term Loan,
3.819%, 7/30/09 450,000
4,500,000(a) NR/NR WAICCS Las Vegas 3 LLC, Second Lien Term Loan,
9.319%, 7/30/09 675,000
------------
$ 1,756,038
-------------------------------------------------------------------------------------------------
Housewares & Specialties -- 0.5%
826,128 BB-/Ba2 Jarden Corp., Term Loan B-3, 3.72%, 1/24/12 $ 795,738
450,134 BB-/Ba3 Yankee Candle Co., Inc., Term Loan,
2.51%, 2/6/14 386,740
------------
$ 1,182,478
-------------------------------------------------------------------------------------------------
Apparel, Accessories & Luxury Goods -- 0.4%
1,000,000 BB+/Ba2 Hanesbrands, Inc., Term Loan B, 5.085% -
5.842%, 9/5/13 $ 983,393
-------------------------------------------------------------------------------------------------
Textiles -- 0.1%
1,611,960(c)(d) NR/NR Gainey Corp., Term Loan, 12.5%, 4/20/12 $ 189,405
------------
Total Consumer Durables & Apparel $ 4,111,314
-------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 5.2%
Casinos & Gaming -- 3.2%
2,380,607 NR/NR Alpha Topco, Ltd., Facility Term Loan B-1,
2.694%, 12/31/13 $ 1,696,182
1,608,032 NR/NR Alpha Topco, Ltd., Facility Term Loan B-2,
2.694%, 12/31/13 1,145,723
5,000,000(a) NR/NR Fontainebleau Florida Hotel LLC, Tranche C Term
Loan, 7.326%, 6/6/12 3,250,000
666,667 CCC/Caa2 Fontainebleau Las Vegas LLC, Delayed Draw Term
Loan, 4.316%, 6/6/14 95,833
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 15
Schedule of Investments | 5/31/09 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Casinos & Gaming -- (continued)
1,333,333 CCC/Caa2 Fontainebleau Las Vegas LLC, Initial Term Loan,
5.277%, 6/6/14 $ 186,667
2,369,368(c)(d) NR/NR Ginn LA Conduit Lender, Inc., First Lien Tranche A
Credit-Linked Deposit Loan, 8.5%, 6/8/11 240,886
5,077,235(c)(d) NR/NR Ginn LA Conduit Lender, Inc., First Lien Tranche B
Term Loan, 9.5%, 6/8/11 516,187
3,500,000(a)(c)(d) NR/NR MetroFlag BP LLC, Second Lien Term Loan,
12.0%, 7/6/09 262,500
------------
$ 7,393,978
--------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.6%
4,568,331 NR/NR Yellowstone Mountain Club LLC, First Lien Term
Loan, 15.0%, 9/30/10 $ 1,233,449
--------------------------------------------------------------------------------------------------------
Leisure Facilities -- 1.4%
587,649(a)(c)(d) NR/NR Lake at Las Vegas Joint Venture LLC, Revolving
Credit-Linked Deposit Account Loan, 14.35%,
6/20/12 $ 37,668
1,765,105 NR/NR Lake at Las Vegas Joint Venture LLC, Term Loan,
7.828%, 7/16/09 1,765,105
5,506,710(a)(c)(d) NR/NR Lake at Las Vegas Joint Venture LLC, Term Loan,
14.35% - 15.0%, 6/20/12 352,980
1,387,923 CCC/Caa1 Wallace Theater Corp., First Lien Term Loan,
5.5%, 7/31/09 1,138,097
------------
$ 3,293,850
------------
Total Consumer Services $ 11,921,277
--------------------------------------------------------------------------------------------------------
MEDIA -- 15.3%
Advertising -- 2.0%
7,794,310 NR/NR Metro-Goldwyn-Mayer, Inc., Tranche B Term Loan,
3.569%, 4/9/12 $ 4,520,700
--------------------------------------------------------------------------------------------------------
Broadcasting -- 4.4%
750,000 NR/NR Discovery Communications Holding LLC, Term C
Loan, 5.25%, 5/14/14 $ 740,860
1,115,966 B-/B2 Univision Communications, Inc., Initial Term Loan,
2.569%, 9/29/14 7,656,122
3,769,895(a)(c)(d) D/NR Young Broadcasting, Inc., Term Loan,
4.75%, 11/3/12 1,691,065
------------
$ 10,088,047
--------------------------------------------------------------------------------------------------------
Cable & Satellite -- 7.0%
11,273,684 BB-/B1 Cequel Communications LLC, Term Loan,
2.349% - 2.401%, 11/5/13 $ 10,230,868
6,776,435 B/B2 Knology, Inc., Term Loan, 2.57% -
2.668%, 6/30/12 6,064,909
------------
$ 16,295,777
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Movies & Entertainment -- 1.7%
4,900,000 B-/B2 WideOpenWest Finance LLC, First Lien Term Loan,
2.819% - 4.75%, 6/30/14 $ 3,926,125
-------------------------------------------------------------------------------------------------------
Publishing -- 0.2%
3,500,000 CCC/Caa3 Penton Media Holdings, Inc., Second Lien Term
Loan, 6.039%, 2/1/14 $ 441,875
------------
Total Media $ 35,272,524
-------------------------------------------------------------------------------------------------------
RETAILING -- 8.8%
Distributors -- 1.2%
15,580,590(a)(c)(d) NR/NR Home Interiors & Gifts, Inc., Proof of Claims,
6.86% - 8.02%, 3/31/11 $ 2,726,603
-------------------------------------------------------------------------------------------------------
General Merchandise Stores -- 3.3%
3,328,042 BB-/Ba3 Dollar General Corp., Tranche B-1 Term Loan,
3.069% - 3.789%, 7/7/14 (144A) $ 3,135,492
5,000,000 B-/B2 Dollar General Corp., Tranche B-2 Term Loan,
3.069%, 7/7/14 (144A) 4,602,680
------------
$ 7,738,172
-------------------------------------------------------------------------------------------------------
Specialty Stores -- 4.3%
7,612,111 CCC+/B1 Blockbuster, Inc., Tranche B Term Loan,
4.92% - 5.62%, 8/20/11 (144A) $ 5,537,811
996,594 BB/B2 Sally Holdings LLC, Term Loan B, 2.57% -
2.93%, 11/16/13 930,214
4,180,100 BB-/B2 Toys R Us -- Delaware, Inc., Tranche B Term Loan,
4.566%, 7/19/12 3,406,781
------------
$ 9,874,806
------------
Total Retailing $ 20,339,581
-------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 1.8%
Food Retail -- 1.8%
4,912,500 B/B2 Pinnacle Foods Finance LLC, Term Loan,
3.161%, 4/2/14 $ 4,194,047
------------
Total Food & Staples Retailing $ 4,194,047
-------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 5.9%
Packaged Foods & Meats -- 5.9%
1,000,000 BB/B1 Dean Foods Co., Tranche B Term Loan,
1.695% - 2.595%, 4/2/14 $ 920,625
260,245 B+/Ba3 Dole Food Co., Inc., Credit-Linked Deposit,
1.139%, 4/12/13 259,431
311,517 B+/Ba3 Dole Food Co., Inc., Tranche B Term Loan,
7.25% - 8.0%, 4/12/13 310,543
1,078,239 B+/Ba3 Solvest, Ltd., Tranche C Term Loan, 7.25% -
8.0%, 4/12/13 1,074,869
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 17
Schedule of Investments | 5/31/09 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Packaged Foods & Meats -- (continued)
1,959,998 NR/NR Sturm Foods, Inc., Initial First Lien Term Loan,
3.438% - 3.625%, 1/31/14 $ 1,665,998
9,381,250 NR/NR Wm. Wrigley Jr. Co., Tranche B Term Loan,
6.5%, 9/30/14 9,413,475
------------
Total Food, Beverage & Tobacco $ 13,644,941
--------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.1%
Household Products -- 1.5%
3,967,778 NR/NR Spectrum Brands, Inc., Dollar Term Loan B,
8.25%, 3/30/13 $ 3,301,191
201,369 NR/NR Spectrum Brands, Inc., LC Loan, 0.347% -
6.25%, 3/30/13 167,539
------------
$ 3,468,730
--------------------------------------------------------------------------------------------------
Personal Products -- 0.6%
984,962(a) NR/NR Appleseed's Intermediate Holdings, Inc., First Lien
Term Loan, 2.816% - 4.32%, 4/30/13 $ 428,459
1,000,000 NR/NR Brickman Group Holdings, Inc., Tranche B Term
Loan, 2.319%, 1/23/14 872,500
------------
$ 1,300,959
------------
Total Household & Personal Products $ 4,769,689
--------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 14.9%
Health Care Equipment & Services -- 3.9%
9,775,000 B+/B2 Talecris Biotherapeutics Holdings Corp., First Lien
Term Loan, 3.86% - 5.5%, 12/6/13 $ 9,041,875
--------------------------------------------------------------------------------------------------
Health Care Supplies -- 1.2%
302,419 BB-/B1 Bausch & Lomb, Inc., Delayed Draw Term Loan,
3.678%, - 4.47% 4/24/15 $ 264,712
1,592,742 BB-/B1 Bausch & Lomb, Inc., Parent Term Loan,
4.47%, 4/24/15 1,394,148
1,200,000 BB-/B1 Biomet, Inc., Dollar Term Loan, 3.313% -
4.222%, 3/25/15 1,132,200
------------
$ 2,791,060
--------------------------------------------------------------------------------------------------
Health Care Services -- 1.6%
1,299,789 NR/Baa3 Fresenius SE, Tranche B-1 Term Loan,
6.75%, 9/10/14 $ 1,303,688
2,946,565 CCC+/B2 LifeCare Holdings, Inc., Term Loan, 5.29%,
8/10/12 1,776,779
1,000,000 NR/NR Medical Staffing Network, Inc., Second Lien Term
Loan, 13.5%, 7/2/14 675,000
------------
$ 3,755,467
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Health Care Facilities -- 6.7%
5,163,713 CCC+/B2 CCS Medical, Inc., First Lien Term Loan,
4.97%, 9/30/12 $ 2,465,673
12,934,011 BB/Ba3 HCA, Inc., Tranche B-1 Term Loan,
3.47%, 11/18/13 11,551,689
1,626,651 B+/B1 Triumph Healthcare Second Holdings LLC, First
Lien Term Loan, 3.316% - 4.039%, 7/28/13 1,325,721
------------
$ 15,343,083
------------------------------------------------------------------------------------------------
Managed Health Care -- 1.5%
1,527,214 NR/B3 Aveta, Inc., MMM Original Term Loan,
5.82%, 8/22/11 $ 1,298,132
226,875 NR/NR Aveta, Inc., NAMM New Term Loan,
5.82%, 8/22/11 192,844
408,818 NR/NR Aveta, Inc., NAMM Original Term Loan,
5.82%, 8/22/11 347,495
1,251,587 NR/B3 Aveta, Inc., PHMC Acquisition Term Loan,
5.82%, 8/22/11 1,063,849
2,000,000 NR/NR Graceway Pharmaceuticals LLC, Mezzanine Loan,
8.569%, 11/1/13 500,000
------------
$ 3,402,320
------------
Total Health Care Equipment & Services $ 34,333,805
------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY & LIFE
SCIENCES -- 8.7%
Pharmaceuticals -- 8.7%
700,211 NR/NR Fresenius SE, Tranche B-2 Term Loan,
6.75%, 9/10/14 $ 702,312
3,920,000 NR/NR Key Safety Systems, Inc., First Lien Term Loan,
2.566% - 3.482%, 3/8/14 1,303,400
18,978,349 BB/Ba3 Mylan, Inc., U.S. Tranche B Term Loan,
3.625% - 4.5%, 10/2/14 18,103,238
------------
Total Pharmaceuticals & Biotechnology &
Life Sciences $ 20,108,950
------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.7%
Diversified Financial Services -- 0.2%
2,029,859(c)(d)(e) NR/NR GBGH LLC, First Lien Advance Term Loan,
9.5%, 8/7/13 $ 412,061
------------------------------------------------------------------------------------------------
Specialized Finance -- 2.5%
4,974,811 D/B1 Charter Communications Operating LLC, New Term
Loan, 6.25%, 3/5/14 $ 4,235,843
2,000,000 B+/Ba3 Collect Acquisition Corp., Term B Advance,
7.5%, 5/15/13 1,660,000
------------
$ 5,895,843
------------
Total Diversified Financials $ 6,307,904
------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 19
Schedule of Investments | 5/31/09 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
INSURANCE -- 1.4%
Insurance Brokers -- 1.4%
837,133 B+/B2 HUB International, Ltd., Delayed Draw Term Loan,
3.72%, 6/13/14 $ 704,239
3,010,110 B+/B2 HUB International, Ltd., Initial Term Loan,
3.72%, 6/13/14 2,532,255
------------
$ 3,236,494
-----------------------------------------------------------------------------------------------
Insurance Brokers -- 0.0%
150,000 B-/B2 AMWINS Group, Inc., Initial Term Loan,
3.16% - 3.79%, 6/8/13 $ 91,500
------------
Total Insurance $ 3,327,994
-----------------------------------------------------------------------------------------------
REAL ESTATE -- 0.9%
Diversified Real Estate Investment Trust -- 0.7%
5,000,000 CCC-/Ca Spirit Finance Corp., Term Loan, 4.028%, 8/1/13 $ 1,525,000
-----------------------------------------------------------------------------------------------
Specialized Real Estate Investment Trust -- 0.2%
1,000,000 CCC+/Caa1 Hargray Acquisition Co., Second Lien Term Loan,
6.507%, 1/29/15 $ 460,000
------------
Total Real Estate $ 1,985,000
-----------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 14.3%
Internet Software & Services -- 0.8%
2,032,393 NR/NR Web Service Co., LLC, Term Loan, 7.0% -
8.0%, 8/28/14 $ 1,839,316
-----------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 6.2%
4,569,767 B+/B2 Keane International, Inc., Closing Date Term Loan,
2.57%, 6/4/13 $ 2,939,882
348,837 B+/B2 Keane International, Inc., Synthetic LC Loan,
2.57%, 6/4/13 224,418
4,975,000 BB/NR SunGard Data Systems, Inc., Incremental Term
Loan, 6.75%, 2/28/14 4,921,698
6,734,850 BB/Ba3 SunGard Data Systems, Inc., New U.S. Term Loan,
2.132%, 2/28/14 6,153,970
------------
$ 14,239,968
-----------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 1.4%
2,469,482 B+/B1 DTN, Inc., Tranche C Term Loan,
5.335% - 6.284%, 3/10/13 $ 2,152,566
1,194,962 BBB/Baa3 Lender Processing Services, Inc., Term Loan B,
2.5%, 7/1/14 1,165,088
------------
$ 3,317,654
-----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Application Software -- 2.1%
1,614,744 B+/Ba3 Nuance Communications, Inc., Term Loan,
2.32%, 3/29/13 $ 1,465,380
3,306,739 B+/B1 Serena Software, Inc., Term Loan,
2.915%, 3/10/13 2,827,262
932,172 B+/NR Verint Systems, Inc., Term Loan, 3.59%, 5/25/14 716,607
------------
$ 5,009,249
------------------------------------------------------------------------------------------------------
Systems Software -- 3.8%
2,451,866 NR/NR Applied Systems, Inc., Term Loan,
2.935% - 3.72%, 9/26/13 $ 2,206,680
1,466,667(a) NR/NR Infor Enterprise Solutions Holdings, Inc., Second
Lien Delayed Draw Term Loan, 7.709%, 3/2/14 517,000
3,980,000 BBB-/Baa3 Life Technologies Corp., Facility Term Loan B,
5.25%, 11/20/15 3,981,990
1,088,445 BB-/Ba1 Macrovision Solutions Corp., Term Loan,
6.0%, 5/2/13 1,085,723
1,000,000 BB/Ba3 Vangent, Inc., Term Loan, 2.92%, 2/14/13 920,000
------------
$ 8,711,393
------------
Total Software & Services $ 33,117,580
------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 6.5%
Communications Equipment -- 0.4%
870,114 BB/Ba3 Commscope, Inc., Term Loan B,
3.72%, 12/26/14 $ 826,064
------------------------------------------------------------------------------------------------------
Computer Hardware -- 3.5%
2,342,526 NR/NR Infor Enterprise Solutions Holdings, Inc., Delayed
Draw Term Loan, 4.07%, 7/30/12 $ 1,774,463
2,947,500 B+/NR Infor Enterprise Solutions Holdings, Inc., Dollar
Tranche B-1 First Lien Term Loan,
3.07%, 7/28/12 2,159,044
4,489,842 B+/NR Infor Enterprise Solutions Holdings, Inc., Initial U.S.
Term Loan, 4.07%, 7/30/12 3,401,055
2,533,333 NR/NR Infor Enterprise Solutions Holdings, Inc., Second
Lien Initial Dollar Term Loan, 6.569%, 3/2/14 823,333
------------
$ 8,157,895
------------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 1.0%
1,000,000 NR/Ba2 H3C Holdings, Ltd., Tranche B Term Loan,
4.794%, 9/28/12 $ 825,000
1,543,513 NR/NR Scitor Corp., Term Loan, 4.57%, 9/26/14 1,366,009
------------
$ 2,191,009
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 21
Schedule of Investments | 5/31/09 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------
Electronic Components -- 0.4%
36,563 NR/NR Flextronics International, Ltd., A-1-B Delayed Draw
Loan, 2.569%, 10/1/14 $ 29,561
1,163,438 NR/NR Flextronics International, Ltd., A-3 Delayed Draw
Loan, 2.569%, 10/1/14 933,659
------------
$ 963,220
--------------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 1.2%
1,878,397 BB+/Ba3 Baldor Electric Co., Term Loan, 3.25%, 1/31/14 $ 1,787,764
996,924 NR/NR FCI USA, Inc., Facility Term Loan B-1,
4.145%, 11/2/13 503,447
996,924 NR/NR FCI USA, Inc., Facility Term Loan B-5-B,
4.145%, 11/2/14 503,447
------------
$ 2,794,658
------------
Total Technology Hardware & Equipment $ 14,932,846
--------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 26.3%
Alternative Carriers -- 2.3%
6,500,000 B+/B1 Level 3 Financing, Inc., Tranche A Term Loan,
2.604% - 3.389%, 3/13/14 $ 5,252,136
--------------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- 7.4%
EURO 752,152 NR/NR Amsterdamse Beheer-EN Consultingmaatschappij
B.V., Casema Facility Term Loan B-1,
4.031%, 9/15/14 $ 980,550
EURO 390,705 NR/NR Amsterdamse Beheer-EN Consultingmaatschappij
B.V., Casema Facility Term Loan B-2,
4.031%, 9/15/14 509,347
EURO 1,142,857 NR/NR Amsterdamse Beheer-EN Consultingmaatschappij
B.V., Casema Facility Term Loan C,
4.531%, 9/14/15 1,489,898
EURO 857,143 NR/NR Amsterdamse Beheer-EN Consultingmaatschappij
B.V., Kabelcom Facility Term Loan B,
4.031%, 9/15/14 1,117,423
EURO 857,143 NR/NR Amsterdamse Beheer-EN Consultingmaatschappij
B.V., Kabelcom Facility Term Loan C,
4.531%, 9/14/15 1,117,423
488,138(e) NR/NR Inovis International, Inc., Term Loan,
9.5%, 11/15/09 475,935
3,940,000 CC/B2 Integra Telecom Holdings, Inc., First Lien Term
Loan, 5.736% - 7.0%, 8/31/13 3,230,800
1,932,784 NR/B1 Telesat Canada, U.S. Term I Loan,
3.32%, 10/31/14 1,802,321
166,004 NR/B1 Telesat Canada, U.S. Term II Loan,
4.22%, 10/31/14 154,799
1,300,000 BB-/B1 West Corp., Term Loan B-2, 2.684% -
2.789%, 10/24/13 1,131,723
The accompanying notes are an integral part of these financial statements.
22 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- (continued)
EURO 1,500,000 BB/Ba2 Wind Telecomunicazione S.p.A., Facility Term Loan
B-1, 3.099%, 5/27/13 $ 1,925,452
EURO 1,500,000 BB/Ba2 Wind Telecomunicazione S.p.A., Facility Term Loan
C-1, 4.099%, 5/26/14 1,925,452
1,186,879 BBB/Baa3 Windstream Corp., Tranche B-1 Term Loan,
1.84% - 2.62%, 7/17/13 1,115,242
------------
$ 16,976,365
-----------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 16.6%
19,602,156(a)(c)(d)(e) NR/NR Broadstripe LLC, First Lien Term Loan,
9.25%, 6/30/11 $ 11,310,444
1,428,203(a)(c)(e) NR/NR Broadstripe LLC, Revolver Credit Loan,
8.87% - 11.42%, 6/30/11 824,073
9,725,000 B+/Ba2 Cricket Communications, Inc., Term Loan B,
5.75%, 6/16/13 9,821,579
7,337,133 BB-/Ba2 MetroPCS Wireless, Inc., Tranche B Term Loan,
2.625% - 3.313%, 11/3/13 6,933,591
AUD 19,476,857 NR/NR SMG H5 Pty, Ltd., Facility Term Loan A,
5.365% - 6.267%, 12/24/12 9,536,021
------------
$ 38,425,708
------------
Total Telecommunication Services $ 60,654,209
-----------------------------------------------------------------------------------------------------------------------
UTILITIES -- 6.8%
Electric Utilities -- 5.2%
3,696,435 NR/NR ANP Funding I LLC, Tranche A Term Loan,
3.911% - 4.677%, 7/29/10 $ 3,640,989
1,754,777 BB-/B1 Coleto Creek Power, L.P., First Lien Synthetic LC
Term Loan, 1.12%, 6/28/13 1,368,726
3,587,298 BB-/B1 Coleto Creek Power, L.P., First Lien Term Loan,
3.069% - 3.97%, 6/28/13 2,798,093
4,862,500 NR/NR Coleto Creek Power, L.P., Second Lien Term Loan,
4.319% - 5.22%, 6/28/13 2,917,500
2,000,000 B+/Ba3 Texas Competitive Electric Holdings Co. LLC,
Initial Tranche B-2 Term Loan, 3.819% -
3.882%, 10/10/14 1,386,750
------------
$ 12,112,058
-----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 23
Schedule of Investments | 5/31/09 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy
Traders -- 1.6%
1,994,950 B+/B2 Calpine Corp., First Priority Term Loan,
4.095%, 3/29/14 $ 1,728,125
275,941 BB-/B2 Mach Gen LLC, First Lien Synthetic LC Loan,
0.982%, 2/22/13 236,849
608,904 BB+/Ba1 NRG Energy, Inc., Credit-Linked Deposit,
1.259%, 2/1/13 565,837
1,141,096 BB+/Ba1 NRG Energy, Inc., Term Loan, 2.97%, 2/1/13 1,060,387
------------
$ 3,591,198
------------
Total Utilities $ 15,703,256
-----------------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE
LOAN INTERESTS
(Cost $507,398,479) $371,289,006
-----------------------------------------------------------------------------------------------------------------
CLAIMS -- 0.0% of Net Assets
CAPITAL GOODS -- 0.0%
Aerospace & Defense -- 0.0%
1,200,000(a)(e)(f) NR/NR Northwest Airlines, Inc., ALPA Claim-Escrow, 2.5% $ 826
2,500,000(a)(e)(f) NR/NR Northwest Airlines, Inc., Bell Atlantic Claim-
Escrow, 2.5% 1,720
2,500,000(a)(e)(f) NR/NR Northwest Airlines, Inc., EDC Claim-Escrow, 5.32% 1,720
2,130,600(a)(e)(f) NR/NR Northwest Airlines, Inc., Flight Attendant Claim-
Escrow, 2.5% 1,466
1,500,000(a)(e)(f) NR/NR Northwest Airlines, Inc., GE Claim-Escrow, 2.5% 1,032
1,264,500(a)(e)(f) NR/NR Northwest Airlines, Inc., IAM Claim-Escrow, 2.5% 870
1,404,900(a)(e)(f) NR/NR Northwest Airlines, Inc., Retiree Claim-
Escrow, 2.5% 966
------------
Total Capital Goods $ 8,600
-----------------------------------------------------------------------------------------------------------------
TOTAL CLAIMS
(Cost $0) $ 8,600
-----------------------------------------------------------------------------------------------------------------
CORPORATE NOTES -- 16.4% of Net Assets
MATERIALS -- 0.8%
Commodity Chemicals -- 0.3%
2,940,000(c) D/C Georgia Gulf Corp., 9.5%, 10/15/14 (144A) $ 786,450
-----------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.2%
350,000 BBB/Baa1 Rio Tinto Finance USA, Ltd., 8.95%, 5/1/14 $ 376,149
-----------------------------------------------------------------------------------------------------------------
Paper Products -- 0.3%
600,000 B/B2 Cellu Tissue Holdings, Inc., 11.5%,
6/1/14 (144A) $ 586,500
------------
Total Materials $ 1,749,099
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.3%
Aerospace & Defense -- 0.3%
550,000 BB/Ba3 DigitalGlobe, Inc., 10.5%, 5/1/14 (144A) $ 562,375
--------------------------------------------------------------------------------------------------------------
Total Capital Goods $ 562,375
--------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.8%
Tires & Rubber -- 0.8%
3,000,000(b) CCC+/Caa1 American Tire Distributors, Inc., 7.458%,
4/1/12 (144A) $ 1,920,000
------------
Total Automobiles & Components $ 1,920,000
--------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.4%
Housewares & Specialities -- 0.4%
1,000,000 B+/B2 Jarden Corp., 8.0%, 5/1/16 $ 967,500
------------
Total Consumer Durables & Apparel $ 967,500
--------------------------------------------------------------------------------------------------------------
MEDIA -- 0.1%
Broadcasting -- 0.1%
1,000,000(c)(d) D/NR CCH I LLC, 11.0%, 10/1/15 (144A) $ 115,000
------------
Total Media $ 115,000
--------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.8%
Health Care Supplies -- 0.8%
1,920,000(a) NR/NR Pharma V, 13.0%, 10/15/13 (144A) $ 1,766,400
------------
Total Health Care Equipment & Services $ 1,766,400
--------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY & LIFE
SCIENCES -- 12.3%
Biotechnology -- 2.7%
4,356,115(a) NR/NR Fosamprenavir Pharma, 15.5%, 6/15/18 (144A) $ 3,833,381
2,702,390(a)(b)(d) NR/NR Molecular Insight Pharmaceuticals, Inc., 10.8%,
11/16/12 (144A) 2,378,103
------------
$ 6,211,484
--------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 9.3%
15,000,000(a) NR/NR Azithromycin Royalty Sub LLC, 16.0%,
5/15/19 (144A) $ 13,200,000
9,753,963(a)(d) NR/NR Celtic Pharma Phinco B.V., 17.0%,
6/15/12 (144A) 6,340,076
822,270(a)(b)(d) NR/NR Pharma VI, 5.906%, 10/15/14 (144A) 616,702
1,500,000(a)(d) NR/NR TCD Pharma, 16.0%, 4/15/24 (144A) 1,320,000
------------
$ 21,476,778
--------------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.3%
1,079,001(a) NR/NR Pharma X, 15.5%, 3/30/17 (144A) $ 798,461
--------------------------------------------------------------------------------------------------------------
Total Pharmaceuticals & Biotechnology &
Life Sciences $ 28,486,723
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 25
Schedule of Investments | 5/31/09 (unaudited) (continued)
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.5%
Consumer Finance -- 0.3%
600,000 A+/A1 American Honda Finance Corp., 5.125%,
12/15/10 (144A) $ 592,325
200,000 BBB+/Baa1 Capital One Financial Corp., 7.375%, 5/23/14 206,069
------------
$ 798,394
----------------------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.2%
530,000 BB+/Baa3 Janus Capital Group, Inc., 6.5%, 6/15/12 $ 437,053
------------
Total Diversified Financials $ 1,235,447
----------------------------------------------------------------------------------------------------------
INSURANCE -- 0.2%
Reinsurance -- 0.2%
500,000(b) BB-/NR Mystic Re, Ltd., 11.261%, 6/7/11 (144A) $ 466,050
------------
Total Insurance $ 466,050
----------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.1%
Diversified Real Estate Activities -- 0.1%
150,000 A-/A2 WEA Finance LLC, 7.5%, 6/2/14 (144A) $ 148,298
------------
Total Real Estate $ 148,298
----------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.1%
Integrated Telecommunication Services -- 0.1%
300,000 BB/Ba2 Frontier Communications Corp., 8.25%, 5/1/14 $ 293,250
------------
Total Telecommunication Services $ 293,250
----------------------------------------------------------------------------------------------------------
TOTAL CORPORATE NOTES
(Cost $46,966,680) $ 37,710,142
----------------------------------------------------------------------------------------------------------
Shares
----------------------------------------------------------------------------------------------------------
COMMON STOCK -- 0.0% of Net Assets
TRANSPORTATION -- 0.0%
Airlines -- 0.0%
3,604(f) Delta Airlines, Inc. $ 20,939
----------------------------------------------------------------------------------------------------------
Trucking -- 0.0%
12,887(f) SIRVA Worldwide, Inc. (144A) $ 64,435
----------------------------------------------------------------------------------------------------------
Total Transportation $ 85,374
----------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost $1,384,679) $ 85,374
----------------------------------------------------------------------------------------------------------
WARRANTS -- 0.0% of Net Assets
ENERGY -- 0.0%
Oil & Gas Equipment & Services -- 0.0%
213,605(a)(e)(f) Value Creation, Inc., Exp. 1/29/14 $ --
----------------------------------------------------------------------------------------------------------
Total Energy $ --
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Shares Value
--------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.0%
Integrated Telecommunication Services -- 0.0%
400,000(a)(f) Clearwire Corp., Exp. 8/15/10 (144A) $ 8,000
------------
Total Telecommunication Services $ 8,000
--------------------------------------------------------------------------------------------------------
TOTAL WARRANTS
(Cost $956,752) $ 8,000
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($)
--------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 3.1% of Net Assets
Repurchase Agreements -- 3.1%
2,400,000 BNP Paribas Securities Corp., 0.19% dated
5/29/09, repurchase price of $2,400,000 plus
accrued interest on 6/1/09 collateralized by
the following:
$12,669 Federal Home Loan Mortgage Corp.,
5.705%, 4/1/37
$2,331,562 Federal National Mortgage
Association, 4.0% - 8.5%, 2/1/19 - 5/1/49
$13,518 Federal National Mortgage Association
(ARM), 4.96%, 5/1/19
$18,083 Freddie Mac Giant, 5.5%, 8/1/35
$90,748 Government National Mortgage
Association, 5.0% - 6.5%, 7/20/37 -
5/15/39 $ 2,400,000
2,400,000 Deutsche Bank AG, 0.18%, dated 5/29/09,
repurchase price of $2,400,000 plus accrued
interest on 6/1/09 collateralized by the following:
$705,381 Federal Home Loan Mortgage Corp.,
4.881% - 6.206%, 4/1/35 - 7/1/37
$972,161 Federal National Mortgage
Association (ARM), 4.175% - 6.064%,
3/1/35 - 6/1/47
$721,828 Freddie Mac Giant, 5.0% - 7.0%,
8/1/34 - 5/1/39
$48,631 Government National Mortgage
Association, 7.0%, 12/15/38 2,400,000
2,400,000 JPMorgan Chase & Co., 0.18%, dated 5/29/09,
repurchase price of $2,400,000 plus accrued
interest on 6/1/09 collateralized by $2,438,799
Federal National Mortgage Association,
5.0%, 10/1/23 2,400,000
--------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $7,200,000) $ 7,200,000
========================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 27
Schedule of Investments | 5/31/09 (unaudited) (continued)
Value
--------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 180.5%
(Cost $570,118,564)(g) $ 416,781,455
--------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (1.5)% $ (3,383,790)
--------------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (79.0)% $(182,483,721)
--------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS -- 100.0% $ 230,913,944
========================================================================================================
NR Security not rated by S&P or Moody's.
* Senior secured floating rate loan interests in which the Trust invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending rate plus a premium. These base lending rates
are generally (i) the lending rate offered by one or more major European
banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime rate
offered by one or more major United States banks, (iii) the certificate
of deposit (iv) other base lending rates used by commercial lenders. The
rate shown is the coupon rate accruing at May 31, 2009.
(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, 2009 the value of these securities amounted to $49,258,872 or 21.3%
of total net assets applicable to common shareowners.
(a) Indicates a security that has been deemed illiquid. The aggregate cost of
illiquid securities is $118,952,785. The aggregate value$64,637,132
represents 28.0% of the total net assets applicable to common
shareowners.
(b) Floating Rate Note. The rate shown is the coupon rate at May 31, 2009.
(c) Security is in default and is non-income producing.
(d) Represents a pay in kind security.
(e) Security is fair valued (See Note A).
(f) Non-income producing.
(g) At May 31, 2009, the net unrealized loss on investments based on cost for
federal income tax purposes of $570,391,881 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 2,352,677
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (155,963,103)
-------------
Net unrealized loss $(153,610,426)
=============
For financial reporting purposes net unrealized loss on investments was
$153,337,109. and cost of investments aggregated $570,118,564.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Purchases and sales of securities (excluding temporary cash investments) for
the period ended May 31, 2009, aggregated $58,369,678 and $57,162,558,
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)
The following is a summary of the inputs used as of May 31, 2009, in valuing
the Trust's investments:
Other
Investments Financial
Valuation Inputs in Securities Instruments*
----------------------------------------------------------------------------------
Level 1 -- Quoted Prices $ 20,939 $ --
Level 2 -- Other Significant Observable Inputs 372,995,947 (715,454)
Level 3 -- Significant Unobservable Inputs 43,764,569 --
----------------------------------------------------------------------------------
Total $416,781,455 $ (715,454)
==================================================================================
Other financial instruments includes net depreciation on unfunded corporate
loans.
Following is a reconciliation of assets valued using significant unobservable
inputs (Level 3):
Investments
in Securities
--------------------------------------------------------------------------------
Balance as of 11/30/08 $33,032,207
Change in unrealized appreciation (depreciation)(1) (1,760,860)
Net purchases (sales) (537,891)
Transfers in and out of Level 3 13,031,113
--------------------------------------------------------------------------------
Balance as of 5/31/09 $43,764,569
================================================================================
1 Unrealized appreciation/(depreciation) on these securities is included in the
change in unrealized gain (loss) on investments in the Statement of
Operations.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 29
Statement of Assets and Liabilities | 5/31/09 (unaudited)
ASSETS:
Investments in securities, at value (cost $570,118,564) $416,781,455
Cash 1,667,655
Foreign currencies, at value (cost $616,027) 790,283
Receivables --
Investment securities sold 777,100
Paydowns 342,487
Interest 5,677,758
Commitment fees 19,903
Prepaid expenses 12,529
------------------------------------------------------------------------------------
Total assets $426,069,170
------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 11,373,676
Depreciation on unfunded corporate loans - net 715,454
Unamortized facility fees 132,181
Due to affiliates 278,920
Accrued expenses 171,274
------------------------------------------------------------------------------------
Total liabilities $ 12,671,505
------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 7,298 shares,
including dividends payable of $33,721 $182,483,721
------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $462,925,899
Distributions in excess of net investment income (1,116,584)
Accumulated net realized loss on investments and foreign currency
transactions (77,043,383)
Net unrealized loss on investments (154,052,563)
Net unrealized gain on foreign currency assets and liabilities
denominated in foreign currencies 200,575
------------------------------------------------------------------------------------
Net assets applicable to common shareowners $230,913,944
====================================================================================
NET ASSET VALUE PER SHARE:
No par value, (unlimited number of shares authorized)
Based on $230,913,944/24,428,148 common shares $ 9.45
====================================================================================
The accompanying notes are an integral part of these financial statements.
30 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Statement of Operations (unaudited)
For the Six Months Ended 5/31/09
INVESTMENT INCOME:
Interest $ 17,323,054
Facility and other fees 440,857
-----------------------------------------------------------------------------------------------------
Total investment income $ 17,763,911
-----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,355,253
Administrative fee 228,128
Transfer agent fees and expenses 28,105
Auction agent fees 246,653
Custodian fees 47,361
Registration fees 11,842
Professional fees 130,366
Printing expenses 18,710
Trustees' fees 9,911
Pricing fees 23,975
Miscellaneous 23,304
-----------------------------------------------------------------------------------------------------
Total expenses $ 2,123,608
-----------------------------------------------------------------------------------------------------
Net investment income $ 15,640,303
-----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $ (36,067,451)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 27,506 $ (36,039,945)
-----------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $ 57,579,681
Unfunded corporate loans 450,601
Foreign currency contracts and other assets and liabilities
denominated in foreign currencies 97,980 $ 58,128,262
-----------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency
transactions $ 22,088,317
-----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS
FROM NET INVESTMENT INCOME: $ (1,553,823)
-----------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common shareowners
resulting from operations $ 36,174,797
=====================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 31
Statement of Changes in Net Assets
For the Six Months Ended 5/31/09 and the Year Ended 11/30/08, respectively
Six Months
Ended Year
5/31/09 Ended
(unaudited) 11/30/08
----------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 15,640,303 $ 45,944,980
Net realized loss on investments and foreign currency
transactions (36,039,945) (41,570,240)
Change in net unrealized gain (loss) on investments and foreign
currency transactions 58,128,262 (175,353,369)
Dividends and distributions to preferred shareowners from
Net investment income (1,553,823) (8,996,461)
Net realized gains -- (783,227)
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners resulting from operations $ 36,174,797 $(180,758,317)
----------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income
($0.650 and $1.704 per share, respectively) $(15,878,296) $ (41,615,793)
Net realized gains
($0.000 and $0.348 per share, respectively) -- (8,500,996)
----------------------------------------------------------------------------------------------------
Total dividends and distributions to
common shareowners $(15,878,296) $ (50,116,789)
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners $ 20,296,501 $(230,875,106)
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period 210,617,443 441,492,549
----------------------------------------------------------------------------------------------------
End of period $230,913,944 $ 210,617,443
----------------------------------------------------------------------------------------------------
Undistributed (distributions in excess of)
net investment income $ (1,116,584) $ 675,232
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Financial Highlights
Six Months
Ended 12/28/04 (b)
5/31/09 Year Ended Year Ended Year Ended to
(unaudited) 11/30/08 11/30/07 11/30/06 11/30/05
------------------------------------------------------------------------------------------------------------------------------------
Per Common Share Operating Performance
Net asset value, beginning of period $ 8.62 $ 18.07 $ 19.66 $ 19.08 $ 19.10(c)
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment
operations:(a)
Net investment income $ 0.64 $ 1.88 $ 2.30 $ 2.20 $ 1.33
Net realized and unrealized gain (loss)
on investments and foreign
currency transactions 0.90 (8.88) (1.47) 0.52 (0.05)
Dividends and distributions to preferred
shareowners from:
Net investment income (0.06) (0.37) (0.51) (0.46) (0.23)
Net realized gains -- (0.03) 0.00 (d) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ 1.48 $ (7.40) $ 0.32 $ 2.26 $ 1.05
Distributions to common shareowners from:
Net investment income (0.65) (1.70) (1.91) (1.63) ( 0.92)
Net realized gains -- (0.35) 0.00 (d) (0.05) --
Capital charge with respect to issuance of:
Common shares -- -- -- -- ( 0.04)
Preferred shares -- -- -- 0.00 (d) ( 0.11)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.83 $ (9.45) $ (1.59) $ 0.58 $ (0.02)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period(e) $ 9.45 $ 8.62 $ 18.07 $ 19.66 $ 19.08
====================================================================================================================================
Market value, end of period(e) $ 8.49 $ 6.90 $ 16.79 $ 18.95 $ 17.14
====================================================================================================================================
Total return at market value(f) 33.78% (52.10)% (2.02)% 20.94% (9.76)%
Ratios to average net assets of common shareowners
Net expenses(g) 2.09%(h) 1.60% 1.40% 1.38% 1.23%(h)
Net investment income before preferred share dividends 15.39%(h) 12.61% 11.92% 11.37% 7.52%(h)
Preferred share dividends 1.53%(h) 2.47% 2.66% 2.39% 1.29%(h)
Net investment income available to common shareowners 13.86%(h) 10.14% 9.26% 8.98% 6.23%(h)
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 33
Financial Highlights (continued)
Six Months
Ended 12/28/04 (b)
5/31/09 Year Ended Year Ended Year Ended to
(unaudited) 11/30/08 11/30/07 11/30/06 11/30/05
------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 16% 31% 80% 75% 61%
Net assets of common shareowners, end of
period (in thousands) $ 230,914 $210,617 $441,493 $478,255 $464,324
Preferred shares outstanding (in thousands) $ 182,450 $204,475 $234,500 $234,500 $234,500
Asset coverage per preferred share, end of period $ 56,645 $ 50,758 $ 72,067 $ 76,000 $74,520
Average market value per preferred share(i) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $25,000
Liquidation value, including dividends payable,
per preferred share $ 25,005 $ 25,007 $ 25,009 $ 25,013 $25,018
Ratios to average net assets of common
shareowners before waivers and
reimbursement of expenses
Net expenses(g) 2.09%(h) 1.60% 1.40% 1.40% 1.24%(h)
Net investment income before preferred share dividends 15.39%(h) 12.61% 11.92% 11.35% 7.51%(h)
Preferred share dividends 1.53%(h) 2.47% 2.66% 2.39% 1.29%(h)
Net investment income available to common shareowners 13.86%(h) 10.14% 9.26% 8.96% 6.22%(h)
====================================================================================================================================
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) The Trust common shares were first publicly offered on December 28, 2004.
(c) Net asset value immediately after the closing of the first public offering
was $19.06.
(d) Amount is less than $0.01 per share.
(e) Net asset value and market value are published in Barron's on Saturday, The
Wall Street Journal on Monday and The New York Times on Monday and Saturday.
(f) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
market value on the last day of the periods reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Total
investment returns covering less than a full period are not annualized. Past
performance is not a guarantee of future results.
(g) Expense ratios do not reflect the effect of dividend payments to preferred
shareowners.
(h) Annualized.
(i) Market value is redemption value without an active market.
The information above represents the operating performance data for a share of
common stock outstanding, total investment return, ratios to average net assets
and other supplemental data for the periods indicated. This information has
been determined based upon financial information provided in the financial
statements and market value data for the Trust's common shares.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Notes to Financial Statements | 5/31/09 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Floating Rate Trust (the "Trust") was organized as a Delaware statutory
trust on October 6, 2004. Prior to commencing operations on December 28, 2004,
the Trust had no operations other than matters relating to its organization and
registration as a non-diversified, closed-end management investment company
under the Investment Company Act of 1940, as amended. The investment objective
of the Trust is to provide a high level of current income. The Trust will, as a
secondary objective, also seek preservation of capital to the extent consistent
with its primary objective of high current income.
The Trust's investments in certain foreign markets or countries with limited
developing markets may subject the Trust to a greater degree of risk than in a
developed market. These risks include disruptive political or economic
conditions and the possible imposition of adverse governmental laws or currency
exchange restrictions.
Information regarding the Trust's principal risks is contained in the Trust's
original offering prospectus with additional information included in the
Trust's shareowner reports from time to time. Please refer to those documents
when considering the Trust's investment risks. At times, the Trust's
investments may represent industries or industry sectors that are interrelated
or have common risks, making it more susceptible to any economic, political, or
regulatory developments or other risks affecting those industries and sectors.
The Trust invests primarily in senior floating rate loans (Senior Loans). The
Trust may also invest in other floating and variable rate instruments,
including second lien loans, investment grade fixed-income debt securities and
high yield, high risk corporate bonds. The Trust may also invest in below
investment grade securities. Below investment grade securities are commonly
referred to as "junk bonds" and are considered speculative with respect to the
issuer's capacity to pay interest and repay principal. These securities involve
greater risk of loss, are subject to greater price volatility, and are less
liquid, especially during periods of economic uncertainty or change, than
higher rated debt securities. The Trust may invest in securities of issuers
that are in default or that are in bankruptcy.
The Trust is not limited in the percentage of its assets that may be invested
in Senior Loans and other securities deemed to be illiquid. Illiquid securities
may be difficult to dispose of at a fair price at the times when the Trust
believes it is desirable to do so and their market price is generally more
volatile than that of more liquid securities. Illiquid securities are also more
difficult to value and investment of the Trust's assets in illiquid securities
may restrict the Trust's ability to take advantage of market opportunities.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 35
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Trust in preparation of its financial statements, which are consistent with
those generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Investments in Senior
Loans are valued in accordance with guidelines established by the Board of
Trustees at the mean between the last available bid and asked prices from one
or more brokers or dealers as obtained from Loan Pricing Corporation. For
Senior Loans for which no reliable price quotes are available, such
investments will be valued by Loan Pricing Corporation through the use of
pricing matrices to determine valuations.
Fixed-income securities are valued at prices supplied by independent pricing
services, which consider such factors as Treasury spreads, yields, maturities
and ratings. Valuations may be supplemented by values obtained from dealers
and other sources, as required. Equity securities are valued at the last sale
price on the principal exchange where they are traded. Securities or loans
for which market prices and/or quotations are not readily available are
valued using fair values methods pursuant to procedures adopted by the Board
of Trustees ("board determined"). 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 also use
the fair value methods to value a security, including a non-U.S. security,
when the closing market price on the primary exchange where the security is
traded no longer accurately reflects the value of the security as of the
close of the NYSE. At May 31, 2009, seven securities have been board
determined, which represents 1.3% of net assets. Temporary cash investments
are valued at cost which approximates market value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Trust becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Discounts and premiums on debt
securities are accreted or amortized, respectively, daily, on an effective
yield to maturity basis and are included in interest income. Premiums and
discounts related to certain mortgage-backed securities are amortized or
36 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
accreted in proportion to the monthly paydowns. Interest income, including
income on interest bearing cash accounts, is recorded on an accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the Statement of Operations from the
effects of changes in market prices of those securities but are included with
the net realized and unrealized gain or loss on investments.
C. 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 as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
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 contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (see Note 4).
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
years 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 either from or in excess
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 37
of net investment income or 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
during the year ended November 30, 2008 were as follows:
2008
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $56,018,203
Net long term capital gain 3,878,274
--------------------------------------------------------------------------------
Total taxable distribution $59,896,477
================================================================================
The following shows the components of distributable earnings on a federal
income tax basis at November 30, 2008.
2008
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 4,043,479
Capital loss carryforward (27,976,876)
Post-October loss deferred (13,179,445)
Distributions payable (2,863,328)
Unrealized depreciation (212,332,286)
--------------------------------------------------------------------------------
Total $ (252,308,456)
================================================================================
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 and book/ tax
differences in the accrual of income on securities in default.
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 at least equal to or in excess of the value of the repurchase
agreement. The collateral for all repurchase agreements is held in
safekeeping in the customer-only account of the Trust's custodian or sub
custodians. The Trust's investment adviser, Pioneer Investment Management,
Inc. (PIM), is responsible for determining that the value of the collateral
remains at least equal to the repurchase price.
F. Automatic Dividend Reinvestment Plan
All common shareowners automatically participate in the Automatic Dividend
Reinvestment Plan (the Plan), under which participants receive all dividends
and capital gain distributions (collectively, dividends) in full and
fractional common shares of the Trust in lieu of cash. Shareowners may elect
not to participate in the Plan. Shareowners not participating in the
38 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
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.
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" is the average daily
value of the Trust's total assets (including any assets attributable to any
leverage that may be outstanding) minus the sum of accrued liabilities (other
than debt representing financial leverage). For the six months ended May 31,
2009, the net management fee was equivalent to 0.70% of the Trust's average
daily managed assets, which was equivalent to 1.33% of the Trust's average
daily net assets attributable to the common shareowners.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 39
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, 2009, $278,920 was payable to PIM related to management costs,
administrative costs and certain other services and is included in "Due to
affiliates" on the Statement of Assets and Liabilities.
PIM has retained Princeton Administrators, LLC (Princeton) to provide certain
administrative and accounting services to the Trust on its behalf. PIM pays
Princeton a monthly fee at an annual rate of 0.07% of the average daily value
of the Trust's managed assets up to $500 million and 0.03% for average daily
managed assets in excess of $500 million, subject to a minimum monthly fee of
$10,000. Princeton receives no compensation directly from the Trust.
PIM had engaged Highland Capital Management, L.P. to act as the Trust's
investment sub-adviser ("Sub-adviser") and manage the Trust's investments
through December 31, 2008. PIM paid the Sub-adviser a monthly fee at an annual
rate of 0.35% of the average daily value of the Trust managed assets. The fee
was paid monthly in arrears. The Trust did not pay a fee to the Sub-adviser.
Effective January 1, 2009, PIM assumed sole responsibility for management of
the Trust's investments.
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.
4. Forward Foreign Currency Contracts
The Trust may enter into contracts that obligate the Trust to deliver
currencies at specified future dates. At the maturity of a contract, the Trust
must make or take delivery of the foreign currency. Alternatively, prior to the
settlement date of a portfolio hedge, the Trust may close out such contracts by
entering into an offsetting hedge contract. At May 31, 2009, the Trust had no
outstanding portfolio hedges or forward currency settlement contracts.
40 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
5. Unfunded Loan Commitments
As of May 31, 2009, the Trust had unfunded loan commitments of $3,119,108 which
could be extended at the option of the borrower, pursuant to the following loan
agreements:
Unfunded Loan
Borrower Commitment
--------------------------------------------------------------------------------
Bausch & Lomb, Inc., Delayed Draw Term Loan $ 100,806
Cricket Communications, Inc., Revolver Loan $2,000,000
Sirva Worldwide, Inc., Revolving Credit Loan $1,018,302
6. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
During the six months ended May 31, 2009 and the year ended November 30, 2008,
there were no share transactions by the Trust. All reinvested distributions
were satisfied with previously issued shares purchased in the open market by
the Plan Agent and credited to shareowner accounts.
The Trust may classify or reclassify any unissued common shares of beneficial
interest into one or more series of preferred shares of beneficial interest. As
of May 31, 2009 there were 7,298 AMPS as follows: Series M7-2,434, Series
W7-2,432 and Series TH7-2,432.
On December 8, 2008, the Trust announced the following redemptions of AMPS at a
price of $25,000 per share plus any accrued and unpaid dividends through the
redemption date:
Redemption Shares Aggregate
date Redeemed Principal
--------------------------------------------------------------------------------
Series M7 12/23/08 134 $3,350,000
--------------------------------------------------------------------------------
Series W7 12/26/08 133 $3,325,000
--------------------------------------------------------------------------------
Series TH7 12/26/08 133 $3,325,000
--------------------------------------------------------------------------------
The Trust financed the AMPS redemption with cash.
On December 18, 2008, the Trust announced the following redemptions of AMPS at
a price of $25,000 per share plus any accrued and unpaid dividends through the
redemption date:
Redemption Shares Aggregate
date Redeemed Principal
--------------------------------------------------------------------------------
Series M7 1/6/09 161 $4,025,000
--------------------------------------------------------------------------------
Series W7 1/8/09 160 $4,000,000
--------------------------------------------------------------------------------
Series TH7 1/9/09 160 $4,000,000
--------------------------------------------------------------------------------
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 41
The Trust financed the AMPS redemption with cash.
Dividends on Series M7, Series W7 and Series TH7 are cumulative at a rate which
is reset every seven days based on the results of an auction. An auction fails
if there are more AMPS offered for sale than there are buyers. When an auction
fails, the dividend rate for the period will be the maximum rate on the auction
dates described in the prospectus for the AMPS. Preferred shareowners will not
be able to sell their AMPS at an auction if the auction fails. Since February
2008, the Trust's auctions related to the AMPS have failed. The maximum rate
for each series is the greater of 125% of the one week LIBOR rate or the LIBOR
rate plus a spread of 1.25%. Dividend rates on AMPS ranged from 1.48% to 2.46%
during the six months ended May 31, 2009.
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.
7. Subsequent Events
Subsequent to May 31, 2009, the Board of Trustees of the Trust declared a
dividend from undistributed net investment income of $0.095 per common share
payable June 30, 2009 to common shareowners of record on June 15, 2009.
Subsequent to May 31, 2009, dividends declared and paid on preferred shares
totaled $244,856 in aggregate for the three outstanding preferred share series
through July 7, 2009.
42 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
ADDITIONAL INFORMATION (unaudited)
During the period, there were no material changes in the Trust's investment
objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust which has not been
approved by the shareowners. There have been no changes in the principle risk
factors associated with investment in the Trust.
Effective January 1, 2009, Jonathan Sharkey of PIM became the portfolio manager
of Pioneer Floating Rate Trust.
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.
ADDITIONAL INFORMATION REGARDING THE TRUST'S INVESTMENT POLICIES
EVENT-LINKED BONDS
The Trust may invest in "event-linked" bonds, which sometimes are referred to
as "insurance-linked" or "catastrophe" bonds. Event-linked bonds are debt
obligations for which the return of principal and the payment of interest are
contingent on the non-occurrence of a pre-defined "trigger" event, such as a
hurricane or an earthquake of a specific magnitude. For some event-linked
bonds, the trigger event's magnitude may be based on losses to a company or
industry, industry indexes or readings of scientific instruments rather than
specified actual losses. If a trigger event, as defined within the terms of an
event-linked bond, involves losses or other metrics exceeding a specific
magnitude in the geographic region and time period specified therein, the Trust
may lose a portion or all of its accrued interest and/or principal invested in
such event-linked bond. The Trust is entitled to receive principal and interest
payments so long as no trigger event occurs of the description and magnitude
specified by the instrument.
Event-linked bonds may be issued by government agencies, insurance companies,
reinsurers, special purpose corporations or other on-shore or off-shore
entities. In addition to the specified trigger events, event-linked bonds may
also expose the Trust to other risks, including but not limited to issuer
(credit) default, adverse regulatory or jurisdictional interpretations and
adverse tax consequences. Event-linked bonds are subject to the risk that the
model used to calculate the probability of a trigger event was not accurate and
underestimated the likelihood of a trigger event. Upon the occurrence or
possible occurrence of a trigger event, and until the completion of the
processing and auditing of applicable loss claims, the Trust's investment in
such event-linked bond may be priced using fair value methods. As a relatively
new type of financial
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 43
instrument, there is limited trading history for these securities, and there
can be no assurance that a more liquid market in these instruments will
develop.
Event-linked bonds are typically rated by at least one nationally recognized
rating agency, but also may be unrated. The rating for an event-linked bond
primarily reflects the rating agency's calculated probability that a
pre-defined trigger event will occur. This rating also assesses the
event-linked bond's credit risk and model used to calculate the probability of
a trigger event.
CEO CERTIFICATION DISCLOSURE (unaudited)
The Trust's Chief Executive Officer has submitted to the New York Stock
Exchange the annual CEO certification as required by Section 303A.12 (a) of the
NYSE Listed Company Manual. In addition, the Trust has filed with the
Securities and Exchange Commission the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the Sarbanes-
Oxley Act.
44 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
Trustees, Officers and Service Providers
Trustees
John F. Cogan, Jr., Chairman
David R. Bock
Mary K. Bush
Benjamin M. Friedman
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Officers
John F. Cogan, Jr., President
Daniel K. Kingsbury, Executive Vice President
Mark E. Bradley, Treasurer
Dorothy E. Bourassa, Secretary
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Legal Counsel
Bingham McCutchen LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Shareowner Services and Sub-Transfer Agent
American Stock Transfer & Trust Company
Preferred Share Auction/Transfer Agent and Registrar
Deutsche Bank Trust Company Americas
Sub-Administrator
Princeton Administrators, LLC
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Trust voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at 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 | 5/31/09 45
This page for your notes.
46 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
This page for your notes.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 47
This page for your notes.
48 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
This page for your notes.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 49
This page for your notes.
50 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
This page for your notes.
Pioneer Floating Rate Trust | Semiannual Report | 5/31/09 51
This page for your notes.
52 Pioneer Floating Rate Trust | Semiannual Report | 5/31/09
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Telecommunications Device for the Deaf (TDD) 1-800-231-5469
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer 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
The Trust files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
The Trust's Chief Executive Officer is required by the New York Stock
Exchange's Listing Standards to file annually with the Exchange a certification
that he is not aware of any violation by the Trust of the Exchange's Corporate
Governance Standards applicable to the Trust. The Trust has signed such
certification.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Information not required in semi annual reports on form NCSR.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Information not required in semi annual reports on form NCSR.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
During the period covered by this report, there were no purchases
made by or on behalf of the registrant or any affiliated purchaser
as defined in Rule 10b-18(a)(3) under the Securities Exchange Act
of 1934 (the Exchange Act), of shares of the registrants equity
securities that are registered by the registrant pursuant to
Section 12 of the Exchange Act.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Floating Rate Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date July 29, 2009
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, 2009
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date July 29, 2009
* Print the name and title of each signing officer under his or her signature.