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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 811-21043
Pioneer High Income Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: March 31
Date of reporting period: April 1, 2014 through September 30, 2015
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer High
Income Trust
--------------------------------------------------------------------------------
Semiannual Report | September 30, 2015
--------------------------------------------------------------------------------
Ticker Symbol: PHT
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Schedule of Investments 13
Financial Statements 39
Notes to Financial Statements 45
Approval of Investment Advisory Agreement 61
Trustees, Officers and Service Providers 65
Pioneer High Income Trust | Semiannual Report | 9/30/15 1
President's Letter
Dear Shareholder,
Through the first three quarters of 2015, global markets experienced pockets of
higher-than-average volatility due to significant cross-currents from different
geographic regions. All year, investors focused on the Federal Reserve System's
(the Fed's) deliberations over when to begin normalizing interest rates.
However, while there were signs of gradual economic improvement in the U.S.,
economies abroad increasingly diverged. In June, for example, investors grew
concerned about the debt crisis in Greece. That news, in turn, was followed by
evidence of an economic slowdown in China, which only served to exacerbate
existing worries about growth trends in the emerging markets, a segment of the
global economy already being negatively impacted by slumping commodity prices,
including the price of crude oil, which has been in near-steady decline for
almost a year. Through September 30, 2015, the pockets of heightened market
volatility alluded to above had resulted in the Standard & Poor's 500 Index
turning in a negative (-5.27%) return over the first nine months of the year.
However, the S&P 500 recovered nicely in October, returning 8.43% for the month,
which boosted the index's year-to-date return into positive territory, at 2.71%.
Despite the headwinds still vexing the global economy, our longer-term view of
the U.S. economy has remained positive. Economic conditions in the U.S. have
generally been constructive, based largely on improvements in employment
statistics and an uptick in the housing sector, which has aided the consumer
side of the economy, where household spending has been rising modestly. U.S.
consumers also stand to benefit, potentially, from lower energy prices as the
winter weather approaches. We continue to believe the U.S. economy remains on a
slow, steady growth trend, and that it is unlikely to be disrupted by a slow
pace of interest-rate normalization by the Fed.
Pioneer Investments believes that investors in today's environment can
potentially benefit from the consistent and disciplined investment approach we
have used since our founding in 1928. We focus on identifying value across
global markets using proprietary research, careful risk management, and a
long-term perspective. Our ongoing goal is to produce compelling returns
consistent with the stated objectives of our investment products, and with our
shareowners' expectations. We believe our shareowners can benefit from the
experience and tenure of our investment teams as well as the insights generated
from our extensive research process.
2 Pioneer High Income Trust | Semiannual Report | 9/30/15
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
November 2, 2015
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. 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 High Income Trust | Semiannual Report | 9/30/15 3
Portfolio Management Discussion | 9/30/15
Higher-yielding, lower-rated debt struggled during the six-month period ended
September 30, 2015, with sectors with high sensitivity to commodity prices
declining the most. In the following interview, Andrew Feltus discusses the
factors that affected the performance of Pioneer High Income Trust during the
six-month period. Mr. Feltus, Director of High Yield and Bank Loans, a senior
vice president and a portfolio manager at Pioneer, is responsible for the daily
management of the Trust.
Q How did the Trust perform during the six-month period ended September 30,
2015?
A Pioneer High Income Trust returned -6.41% at net asset value and -14.95% at
market price during the six-month period ended September 30, 2015. During
the same six-month period, the Trust's benchmark, the Bank of America
Merrill Lynch High Yield Master II Index (the BofA ML Index), returned
-4.95% at net asset value. The BofA ML Index is an unmanaged, commonly
accepted measure of the performance of high-yield securities. Unlike the
Trust, the BofA ML Index does not use leverage. While the use of leverage
increases investment opportunity, it also increases investment risk.
During the same six-month period, the average return (at market price) of
the 31 closed end funds in Lipper's High Current Yield Closed End Funds
category (which may or may not be leveraged) was -11.39%.
The shares of the Trust were selling at a 1.7% discount to net asset value
at the end of the six-month period on September 30, 2015.
On September 30, 2015, the standardized 30-day SEC yield of the Trust's
shares was 12.14%*.
Q How would you describe the investment environment for high-yield debt
during the six-month period ended September 30, 2015?
A Concerns about the global economy and falling energy prices triggered a
decline in high-yield bond values during the period. In the months leading
up to the beginning of the six-month period, the high-yield market had been
performing well based on firming market sentiment that the U.S. economy
was growing, as evidenced by a recovery of energy prices in early 2015
after their rather rapid decline late in 2014. Those positive trends
continued during April and May 2015 -- the first two months of the Trust's
semiannual reporting period -- before a series of worrisome developments
captured investors' attention and the high-yield market became increasingly
volatile.
* The 30-day SEC yield is a standardized formula that is based on the
hypothetical annualized earning power (investment income only) of the
Trust's portfolio securities during the period indicated.
4 Pioneer High Income Trust | Semiannual Report | 9/30/15
Among the issues driving the market volatility were clear signs that
economic growth in China was weakening, and a renewed debt crisis in Greece
which contributed to concerns about the overall European economy. In
addition, fears of a contagion effect the problems overseas could have on
the domestic economy added to uncertainty in the market. Starting in early
June, energy prices plummeted for the second time in 12 months, and the
high-yield bond market sold off. Mining and metals bonds performed the
worst, but energy sector bonds, which represent a large component of the
benchmark BofA ML Index (roughly 13%), also weighed heavily on the overall
market.
Q Which of your investment decisions or other factors had the biggest effects
on the Trust's benchmark-relative performance during the six-month period
ended September 30, 2015?
A The main reason for the Trust's underperformance of its benchmark during
the period was the use of leverage, or borrowed funds. The use of leverage
increases the Trust's risk and has the effect of exaggerating the size of
the high-yield market's moves on the portfolio. In down markets, when high-
yield securities are underperforming and bond prices are falling, as was
the case during the six-month period, the use of leverage can and will
negatively impact the Trust's benchmark-relative performance.
Our emphasis on holding lower-rated, high-yield securities in the Trust's
portfolio also detracted from relative performance during a period in which
higher-rated debt outperformed. However, the Trust's exposures to non-
benchmark components such as floating-rate loans, insurance-linked bonds
issued by property-and-casualty insurers, and emerging markets corporate
debt all had positive effects on benchmark-relative performance.
Q What were some of the individual investments that influenced the Trust's
performance during the six-month period ended September 30, 2015?
A In general, the Trust's investments in bonds of health care companies
tended to do well during the period, led by securities issued by Lantheus
Medical Imaging and Universal Hospital Services. Lantheus, which
specializes in diagnostic imaging products and services, showed healthy
earnings gains and was successful in re-financing its debt and lowering its
costs. Universal Hospital Services, a medical equipment management company,
also showed improved results under a new management team.
Security selections among energy and telecommunication services bonds,
however, did not perform as well for the Trust during the six-month period.
In the energy sector, laggards held in the portfolio included bonds of Penn
Virginia and Linn Energy, two companies involved in oil and natural gas
production. Within the telecommunication services sector, investments in
Pioneer High Income Trust | Semiannual Report | 9/30/15 5
the debt of service providers Windstream Holdings and Frontier
Communications both held back the Trust's relative results. Frontier's
performance was hurt by its issuance of $10 billion worth of bonds to pay
for acquisitions, while Windstream spun off assets into a real estate
investment trust to help its equity holders, but that had a detrimental
effect on the company's bonds.
Q What were the principal factors affecting the Trust's yield, or dividend*
income, during the six-month period ended September 30, 2015?
A The monthly dividend to shareholders remained constant during the six-
month period following a reduction in the dividend in February 2015, which
was the first-ever reduction since the Trust's inception in 2002.
Shareholders should be aware, however, that existing portfolio investments
in higher-yielding bonds still are maturing, or being called away by
issuers. When this occurs in a low interest-rate environment, the Trust's
redeployed assets are typically invested in securities that are paying
lower yields, which could affect the Trust's dividend in the future.
Q How did the level of leverage in the Trust change during the six-month
period ended September 30, 2015?
A The Trust employs leverage through a margin loan financing agreement. (See
Note 10 to the Financial Statements).
At the end of the six-month period on September 30, 2015, 33.2% of the
Trust's total managed assets were financed by leverage (or borrowed funds),
compared with 30.5% of the Trust's total managed assets financed by
leverage at the start of the period on April 1, 2015. While the dollar
amount of borrowed funds employed by the Trust during the period did not
increase or decrease, the percentage increase was due to a decrease in the
values of the securities in which the Trust had invested.
Q Did the Trust invest in any derivative securities during the six-month
period ended September 30, 2015? If so, did the exposure have a material
impact on performance?
A The Trust did invest in some forward currency transactions during the
period. This was done in an attempt to hedge the risks of changes in
relative currency values pertaining to transactions in securities that are
denominated in foreign currencies. We also invested the portfolio in some
credit default swaps as a way to add income. The use of currency forward
transactions had a small positive effect on the Trust's results, as the
U.S. dollar strengthened against most foreign currencies during the
six-month period. The use of the credit default swaps had a slight negative
impact on results.
* Dividends are not guaranteed.
6 Pioneer High Income Trust | Semiannual Report | 9/30/15
Q What is your investment outlook?
A We continue to expect gross domestic product (GDP) growth of 2.7% to
3.0% over the next year in the U.S., led by consumption, higher levels of
government spending, and the housing sector. Employment continues to be
strong and the labor market is nearing what is considered to be full
employment -- at which point, wage inflation may increase.
We believe the market's response to the recent volatility within the U.S.
high-yield segment has served to increase the attractiveness of U.S.
high-yield bonds. The high-yield market's average option-adjusted spread
widened to 654 basis points (bps), or 6.54%, in the third quarter of this
year (July 1 through September 30), solidly higher than the long-term
average of 550 bps, or 5.50%. We believe current spread levels more than
compensate investors for default risk, and we think the high-yield default
rate will remain below its 4% long-term average through at least 2016.
(Credit spreads are commonly defined as the differences in yield between
Treasuries and other types of fixed-income securities with similar
maturities.)
Our positive fundamental outlook is supported by the fact that corporate
issuers have generally maintained solid profit margins and healthy balance
sheets. In addition, financial conditions remain positive, as issuers
continue to have access to capital. A notable risk going forward is
increased market volatility as the U.S. Federal Reserve System eventually
begins to increase short-term interest rates. However, with spreads at
elevated levels as of period end, we believe the potential effects of
rising Treasury yields are already reflected in high-yield bond prices.
The outlook for oil prices will also be an important factor going forward,
given the heavy weighting of the energy sector within the BofA ML Index.
However, we believe energy credit spread levels more than compensate
investors for the current risk factors within the sector. Energy bonds are
pricing-in about twice as much default risk as the overall market, which
makes the risk/return compelling.
Finally, the credit quality of the high-yield market seems stable.
Importantly, the high levels of leveraged buyout (LBO) activity that
characterized the period between 2005 and 2007 are not currently present.
In addition, interest coverage and other measures of credit worthiness have
held up as well, which are also positive factors for the high-yield market.
(Interest coverage is defined as earnings before interest, taxes and
depreciation versus interest cost.)
Pioneer High Income Trust | Semiannual Report | 9/30/15 7
Please refer to the Schedule of Investments on pages 13-39 for a full listing of
Trust securities.
Investments in high-yield or lower-rated securities are subject to greater-than-
average risk.
The Trust may invest in securities of issuers that are in default or that are in
bankruptcy.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
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.
Investments in the Trust are subject to possible loss due to the financial
failure of the issuers of the underlying securities and their inability to meet
their debt obligations.
The Trust may invest up to 50% of its total assets in illiquid securities.
Illiquid securities may be difficult to dispose of at a price reflective of
their value at the times when the Trust believes it is desirable to do so, and
the market price of illiquid securities is generally more volatile than that of
more liquid securities. Illiquid securities are also more difficult to value and
investment of the Trust's assets in illiquid securities may restrict the Trust's
ability to take advantage of market opportunities.
Historically, the Trust employed leverage through the issuance of preferred
shares. The Trust has redeemed all of its outstanding preferred shares. The
Trust continues to employ leverage through a margin loan financing agreement.
Leverage creates significant risks, including the risk that the Trust's
incremental income or capital appreciation for investments purchased with the
proceeds of leverage will not be sufficient to cover the cost of leverage, which
may adversely affect the return for shareowners.
The Trust is required to meet certain regulatory and other asset coverage
requirements in connection with its use of leverage. In order to maintain
required asset coverage levels, the Trust may be required to reduce the amount
of leverage employed by the Trust, alter the composition of its investment
portfolio or take other actions at what might be inopportune times in the
market. Such actions could reduce the net earnings or returns to shareowners
over time, which is likely to result in a decrease in the market value of the
Trust's shares.
8 Pioneer High Income Trust | Semiannual Report | 9/30/15
Risks of investing in the Trust are discussed in greater detail in the Trust's
original offering documents relating to its common shares and shareowner reports
issued from time to time.
These risks may increase share price volatility.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer High Income Trust | Semiannual Report | 9/30/15 9
Portfolio Summary | 9/30/15
Portfolio Diversification*
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Corporate Bonds & Notes 83.5%
Senior Secured Floating Rate Loan Interests 4.7%
Convertible Bonds & Notes 3.6%
Preferred Stocks 2.2%
Collateralized Mortgage Obligations 1.6%
Common Stocks 1.3%
Tax Exempt Obligation 0.8%
Asset Backed Securities 0.7%
U.S. Government and Agency Obligations 0.5%
Convertible Preferred Stocks 0.5%
Sovereign Debt Obligation 0.4%
Commercial Paper 0.1%
Repurchase Agreement 0.1%
Municipal Collateralized Debt Obligation 0.0%+
* Includes investments in Insurance Linked Securities totaling 5.8% of total
investment portfolio.
+ Amount rounds to less than 0.1%.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)**
1. Hanover Insurance Corp., 7.625%, 10/15/25 1.56%
------------------------------------------------------------------------------------------------
2. Hologic, Inc., 2.0%, 12/15/37 1.12
------------------------------------------------------------------------------------------------
3. Liberty Mutual Group, Inc., 10.75%, 6/15/58 (144A) 1.07
------------------------------------------------------------------------------------------------
4. Provident Funding Associates LP / PFG Finance Corp., 6.75%, 6/15/21 (144A) 1.06
------------------------------------------------------------------------------------------------
5. Xerium Technologies, Inc., 8.875%, 6/15/18 1.06
------------------------------------------------------------------------------------------------
6. Basell Finance Co., BV, 8.1%, 3/15/27 (144A) 0.97
------------------------------------------------------------------------------------------------
7. Icon Health & Fitness, Inc., 11.875%, 10/15/16 (144A) 0.90
------------------------------------------------------------------------------------------------
8. Lantheus Medical Imaging, Inc., Term Loan, 7.0%, 6/30/22 0.90
------------------------------------------------------------------------------------------------
9. FAGE Dairy Industry SA / FAGE USA Dairy Industry, Inc., 9.875%, 2/1/20 (144A) 0.84
------------------------------------------------------------------------------------------------
10. Meritor, Inc., 7.875%, 3/1/26 0.82
------------------------------------------------------------------------------------------------
** This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or
sell any security listed.
10 Pioneer High Income Trust | Semiannual Report | 9/30/15
Prices and Distributions | 9/30/15
Market Value per Common Share
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--------------------------------------------------------------------------------
9/30/15 3/31/15
--------------------------------------------------------------------------------
Market Value $10.30 $12.87
--------------------------------------------------------------------------------
(Discount)/Premium (1.7)% 8.2%
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Net Asset Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9/30/15 3/31/15
--------------------------------------------------------------------------------
Net Asset Value $10.48 $11.89
--------------------------------------------------------------------------------
Distributions per Common Share*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
4/1/15 - 9/30/15 $0.69 $-- $--
--------------------------------------------------------------------------------
The data shown above represents past performance, which is no guarantee of
future results.
* The amount of distributions made to shareowners during the period was in
excess of the net investment income earned by the Trust during the period.
The Trust has accumulated undistributed net investment income which is part
of the Trust's NAV. A portion of this accumulated net investment income was
distributed to shareowners during the period. A decrease in distributions
may have a negative effect on the market value of the Trust's shares.
Pioneer High Income Trust | Semiannual Report | 9/30/15 11
Performance Update | 9/30/15
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in market value, plus
reinvested dividends and distributions, of a $10,000 investment made in common
shares of Pioneer High Income Trust during the periods shown, compared to that
of the Bank of America Merrill Lynch (BofA ML) High Yield Master II Index.
Average Annual Total Returns
(As of September 30, 2015)
--------------------------------------------------------------------------------
BofA ML
Net Asset High Yield
Value Market Master II
Period (NAV) Price Index
--------------------------------------------------------------------------------
10 Years 7.77% 7.41% 7.11%
5 Years 5.43 1.42 5.94
1 Year -12.61 -32.05 -3.57
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High BofA ML High Yield
Income Trust Master II Index
09/05/15 $ 10,000.00 $ 9,927.00
09/06/15 $ 12,092.00 $ 10,793.00
09/07/15 $ 12,627.00 $ 11,628.00
09/08/15 $ 9,045.00 $ 10,275.00
09/09/15 $ 14,200.00 $ 12,571.00
09/10/15 $ 19,050.00 $ 14,899.00
09/11/15 $ 21,486.00 $ 15,096.00
09/12/15 $ 27,076.00 $ 17,955.00
09/13/15 $ 27,278.00 $ 19,228.00
09/14/15 $ 30,079.00 $ 20,619.00
09/15/15 $ 20,440.00 $ 19,884.00
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV, due to such factors as interest rate
changes and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Shares of closed-end funds, unlike open-end funds, are not continuously offered.
There is a one-time public offering and, once issued, shares of closed-end funds
are bought and sold in the open market through a stock exchange and frequently
trade at prices lower than their NAV. NAV per common share is total assets less
total liabilities, which include preferred shares or borrowings, as applicable,
divided by the number of common shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends are
assumed to be reinvested at prices obtained through open-market purchases under
the Trust's dividend reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the sale of Trust shares.
Had these fees and taxes been reflected, performance would have been lower.
The Bank of America Merrill Lynch High Yield Master II Index is an unmanaged,
commonly accepted measure of the performance of high yield securities. Index
returns are calculated monthly, assume reinvestment of dividends and, unlike
Trust returns, do not reflect any fees, expenses or sales charges. The Index
does not employ leverage. It is not possible to invest directly in the Index.
12 Pioneer High Income Trust | Semiannual Report | 9/30/15
Schedule of Investments | 9/30/15 (unaudited)
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 1.0% of
Net Assets
BANKS -- 0.1%
Thrifts & Mortgage Finance -- 0.1%
172,870(a) Security National Mortgage Loan Trust, Series
2007-1A, Class 1A3, 6.55%, 4/25/37 (144A) $ 173,985
---------------
Total Banks $ 173,985
-----------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.0%+
Hotels, Resorts, Cruise Lines -- 0.0%+
68,644 Westgate Resorts LLC, Series 2012-2A, Class C,
9.0%, 1/20/25 (144A) $ 69,031
---------------
Total Consumer Services $ 69,031
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.5%
Asset Management & Custody Banks -- 0.3%
974,000(b) VOLT XXXVII LLC, Series 2015-NP11, Class A2,
4.375%, 7/25/45 (144A) $ 962,243
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.2%
660,000(a) GMAT Trust, Series 2013-1A, Class M, 5.0%,
11/25/43 (144A) $ 626,771
---------------
Total Diversified Financials $ 1,589,014
-----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.4%
Airlines -- 0.4%
1,079,559(c) Aircraft Finance Trust, Series 1999-1A, Class A1,
0.687%, 5/15/24 (144A) $ 269,890
489,968(c) Aviation Capital Group Trust, Series 2000-1A,
Class A1, 1.187%, 11/15/25 (144A) 191,087
1,269,269(c) Lease Investment Flight Trust, Series 1, Class A1,
0.597%, 7/15/31 660,020
---------------
Total Transportation $ 1,120,997
-----------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $3,745,396) $ 2,953,027
-----------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS --
2.2% of Net Assets
BANKS -- 1.0%
Thrifts & Mortgage Finance -- 1.0%
850,000(c) BAMLL Commercial Mortgage Securities Trust, Series
2014-INLD, Class F, 2.726%, 12/15/29 (144A) $ 784,817
400,000(a) Bear Stearns Commercial Mortgage Securities Trust,
Series 2007- PW16, Class B, 5.895%, 6/11/40 (144A) 393,582
211,616 Homeowner Assistance Program Reverse Mortgage
Loan Trust, Series 2013-RM1, Class A, 4.0%,
5/26/53 (144A) 208,706
250,000(a) Springleaf Mortgage Loan Trust, Series 2013-1A,
Class B1, 5.58%, 6/25/58 (144A) 251,367
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 13
Schedule of Investments | 9/30/15 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
498,000(a) Wachovia Bank Commercial Mortgage Trust,
Series 2006-C24, Class AJ, 5.658%, 3/15/45 $ 500,013
900,000(a) Wachovia Bank Commercial Mortgage Trust,
Series 2007-C34, Class AJ, 6.143%, 5/15/46 931,321
---------------
Total Banks $ 3,069,806
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.2%
Thrifts & Mortgage Finance -- 1.2%
700,000(c) CFCRE Mortgage Trust, Series 2015-RUM, Class E,
4.807%, 7/15/30 (144A) $ 700,503
1,000,000(a) Citigroup Commercial Mortgage Trust, Series
2014-GC23, Class E, 3.208%, 7/10/47 (144A) 655,260
500,000(a) Commercial Mortgage Trust, Series 2007-C9,
Class H, 5.989%, 12/10/49 (144A) 474,916
1,000,000(c) CSMC Trust, Series 2015-SAND, Class F, 4.907%,
8/15/30 (144A) 1,000,036
200,000 JP Morgan Chase Commercial Mortgage Securities
Trust, Series 2006-CB16, Class AJ, 5.623%,
5/12/45 196,895
650,000(a) JP Morgan Chase Commercial Mortgage Securities
Trust, Series 2007-LD12, Class AJ, 6.208%, 2/15/51 658,604
---------------
Total Diversified Financials $ 3,686,214
-----------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $6,736,927) $ 6,756,020
-----------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 6.7% of Net Assets* (c)
CAPITAL GOODS -- 0.1%
Industrial Conglomerates -- 0.1%
313,298(c) Filtration Group Corp., Second Lien Initial Term
Loan, 8.25%, 11/22/21 $ 316,037
---------------
Total Capital Goods $ 316,037
-----------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.0%
Education Services -- 1.0%
2,849,250(c) McGraw-Hill School Education Holdings LLC, Term B
Loan, 6.25%, 12/18/19 $ 2,858,154
---------------
Total Consumer Services $ 2,858,154
-----------------------------------------------------------------------------------------------------
ENERGY -- 0.4%
Coal & Consumable Fuels -- 0.1%
587,500(c) PT Bumi Resources Tbk, Term Loan, 18.0%, 11/7/15 $ 220,313
-----------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.3%
1,050,500(c) Jonah Energy LLC, Second Lien Initial Term Loan,
7.5%, 5/12/21 $ 850,905
---------------
Total Energy $ 1,071,218
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer High Income Trust | Semiannual Report | 9/30/15
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.0%
Health Care Equipment & Services -- 0.7%
875,000(c) Accellent, Inc. (Medical Device/UTI), Second Lien
Term Loan, 7.5%, 3/11/22 $ 880,833
1,140,000(c) Concentra, Inc., Initial Term Loan, 9.0%, 6/1/23 1,146,384
---------------
$ 2,027,217
-----------------------------------------------------------------------------------------------------
Health Care Technology -- 0.3%
1,155,136(c) Medical Card System, Inc., Term Loan,
14.0%, 3/17/17 $ 1,108,931
---------------
Total Health Care Equipment & Services $ 3,136,148
-----------------------------------------------------------------------------------------------------
INSURANCE -- 0.6%
Property & Casualty Insurance -- 0.6%
1,885,452(c) Confie Seguros Holding II Co., Second Lien Term
Loan, 10.25%, 5/8/19 $ 1,876,025
---------------
Total Insurance $ 1,876,025
-----------------------------------------------------------------------------------------------------
MATERIALS -- 0.2%
Diversified Metals & Mining -- 0.1%
189,517(c) FMG Resources (August 2006) Pty, Ltd. (FMG
America Finance, Inc.), Term Loan, 3.75%, 6/30/19 $ 155,877
131,698(d)(k) PT Bakrie & Brothers Tbk, Facility Term Loan B,
8.0%, 1/20/13 42,802
---------------
$ 198,679
-----------------------------------------------------------------------------------------------------
Steel -- 0.1%
584,100(c) Essar Steel Algoma, Inc., Initial Term Loan, 7.5%,
8/16/19 $ 466,306
---------------
Total Materials $ 664,985
-----------------------------------------------------------------------------------------------------
MEDIA -- 0.5%
Publishing -- 0.5%
1,195,425(c) Cengage Learning Acquisitions, Inc. (fka TL
Acquisitions, Inc.), Term Loan, 7.0%, 3/31/20 $ 1,191,540
318,335(c) Lee Enterprises, Inc., First Lien Term Loan,
7.25%, 3/31/19 316,934
---------------
Total Media $ 1,508,474
-----------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 1.3%
Biotechnology -- 1.3%
4,094,738 Lantheus Medical Imaging, Inc., Term Loan,
7.0%, 6/30/22 $ 3,890,001
---------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 3,890,001
-----------------------------------------------------------------------------------------------------
RETAILING -- 0.8%
Automotive Retail -- 0.5%
1,546,875(c) CWGS Group LLC, Term Loan, 5.25%, 2/20/20 $ 1,549,775
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 15
Schedule of Investments | 9/30/15 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
Computer & Electronics Retail -- 0.3%
1,164,144(c) Targus Group International, Inc., Term Loan,
14.75%, 5/24/16 $ 873,108
---------------
Total Retailing $ 2,422,883
-----------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.8%
Application Software -- 0.8%
2,500,000(c) Vertafore, Inc., Second Lien Term Loan, 9.75%,
10/27/17 $ 2,519,532
---------------
Total Software & Services $ 2,519,532
-----------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING
RATE LOAN INTERESTS
(Cost $21,266,168) $ 20,263,457
-----------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES -- 118.7%
of Net Assets
AUTOMOBILES & COMPONENTS -- 1.8%
Auto Parts & Equipment -- 1.6%
1,140,000(e) International Automotive Components Group SA,
9.125%, 6/1/18 (144A) $ 1,157,100
580,000(e) Pittsburgh Glass Works LLC, 8.0%, 11/15/18 (144A) 600,300
2,885,000(e) Stackpole International Intermediate / Stackpole
International Powder, 7.75%, 10/15/21 (144A) 3,137,438
---------------
$ 4,894,838
-----------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.2%
500,000(e) Chrysler Group LLC/CG Co-Issuer, Inc., 8.25%,
6/15/21 $ 530,600
---------------
Total Automobiles & Components $ 5,425,438
-----------------------------------------------------------------------------------------------------
BANKS -- 2.6%
Diversified Banks -- 1.1%
1,200,000(a) Access Bank Plc, 9.25%, 6/24/21 (144A) $ 1,011,000
1,650,000(a)(e)(g) Bank of America Corp., 6.25% 1,612,875
600,000(a)(e)(g) Bank of America Corp., 6.5% 612,000
---------------
$ 3,235,875
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.5%
4,825,000(e) Provident Funding Associates LP / PFG Finance
Corp., 6.75%, 6/15/21 (144A) $ 4,571,688
---------------
Total Banks $ 7,807,563
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 8.1%
Aerospace & Defense -- 2.0%
2,200,000 ADS Tactical, Inc., 11.0%, 4/1/18 (144A) $ 2,249,500
3,084,000(e) DynCorp International, Inc., 10.375%, 7/1/17 2,205,060
1,305,000(e) LMI Aerospace, Inc., 7.375%, 7/15/19 1,259,325
525,000 Triumph Group, Inc., 5.25%, 6/1/22 483,000
---------------
$ 6,196,885
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Trust | Semiannual Report | 9/30/15
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
Agricultural & Farm Machinery -- 0.5%
1,890,000(e) Titan International, Inc., 6.875%, 10/1/20 $ 1,584,056
-----------------------------------------------------------------------------------------------------
Building Products -- 0.1%
400,000 Griffon Corp., 5.25%, 3/1/22 $ 380,500
-----------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.2%
1,500,000(e) Abengoa Finance SAU, 8.875%, 11/1/17 (144A) $ 690,000
-----------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.6%
2,000,000(e) WireCo WorldGroup, Inc., 9.5%, 5/15/17 $ 1,710,000
-----------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.6%
253,000(e) Boart Longyear Management Pty, Ltd., 10.0%,
10/1/18 (144A) $ 217,580
605,000 JB Poindexter & Co., Inc., 9.0%, 4/1/22 (144A) 636,763
810,000 Waterjet Holdings, Inc., 7.625%, 2/1/20 (144A) 810,000
---------------
$ 1,664,343
-----------------------------------------------------------------------------------------------------
Industrial Machinery -- 2.7%
2,575,000 Apex Tool Group LLC, 7.0%, 2/1/21 (144A) $ 2,111,500
1,040,000(e) Cleaver-Brooks, Inc., 8.75%, 12/15/19 (144A) 982,800
697,511(f)(h) Liberty Tire Recycling LLC, 11.0% (11.0% PIK
0.0% cash), 3/31/21 (144A) 446,407
4,500,000(e) Xerium Technologies, Inc., 8.875%, 6/15/18 4,567,500
---------------
$ 8,108,207
-----------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 1.4%
280,000 Fly Leasing, Ltd., 6.375%, 10/15/21 $ 282,800
2,580,000(e) H&E Equipment Services, Inc., 7.0%, 9/1/22 2,502,600
1,250,000(e) TRAC Intermodal LLC / TRAC Intermodal Corp.,
11.0%, 8/15/19 1,356,250
---------------
$ 4,141,650
---------------
Total Capital Goods $ 24,475,641
-----------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 3.0%
Commercial Printing -- 1.1%
1,295,000(e) Cenveo Corp., 6.0%, 8/1/19 (144A) $ 1,087,800
1,675,000 Multi-Color Corp., 6.125%, 12/1/22 (144A) 1,712,688
860,000 Mustang Merger Corp., 8.5%, 8/15/21 (144A) 892,250
---------------
$ 3,692,738
-----------------------------------------------------------------------------------------------------
Diversified Support Services -- 1.4%
3,900,000(e) NANA Development Corp., 9.5%, 3/15/19 (144A) $ 3,471,000
660,000 Transfield Services, Ltd., 8.375%, 5/15/20 (144A) 678,975
---------------
$ 4,149,975
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 17
Schedule of Investments | 9/30/15 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 0.5%
1,370,000(e) Safway Group Holding LLC / Safway Finance Corp.,
7.0%, 5/15/18 (144A) $ 1,402,538
---------------
Total Commercial & Professional Services $ 9,245,251
-----------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 5.7%
Homebuilding -- 2.4%
750,000(e) Beazer Homes USA, Inc., 9.125%, 5/15/19 $ 765,000
800,000(e) Brookfield Residential Properties, Inc., 6.375%,
5/15/25 (144A) 754,000
1,500,000 KB Home, 7.0%, 12/15/21 1,503,750
790,000 KB Home, 7.5%, 9/15/22 803,825
1,035,000 KB Home, 7.625%, 5/15/23 1,042,762
1,975,000(e) Rialto Holdings LLC / Rialto Corp., 7.0%,
12/1/18 (144A) 2,004,625
565,000 Taylor Morrison Communities, Inc. / Monarch
Communities, Inc., 5.625%, 3/1/24 (144A) 542,400
---------------
$ 7,416,362
-----------------------------------------------------------------------------------------------------
Housewares & Specialties -- 2.0%
1,435,000(e) Jarden Corp., 7.5%, 5/1/17 $ 1,531,862
3,000,000(e) Reynolds Group Issuer, Inc., 9.0%, 4/15/19 3,045,000
1,430,000(e) Reynolds Group Issuer, Inc., 9.875%, 8/15/19 1,480,050
---------------
$ 6,056,912
-----------------------------------------------------------------------------------------------------
Leisure Products -- 1.3%
4,000,000 Icon Health & Fitness, Inc., 11.875%,
10/15/16 (144A) $ 3,900,000
---------------
Total Consumer Durables & Apparel $ 17,373,274
-----------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 5.1%
Casinos & Gaming -- 2.6%
686,250(d)(f) Mashantucket Western Pequot Tribe, 6.5%
(5.5% PIK 1.0% cash), 7/1/36 $ 3,431
1,700,000(e) MGM Resorts International, 6.0%, 3/15/23 1,651,125
1,225,000 Scientific Games International, Inc., 6.25%, 9/1/20 878,938
3,000,000(e) Scientific Games International, Inc., 6.625%, 5/15/21 2,160,000
3,800,000(e) Scientific Games International, Inc., 10.0%, 12/1/22 3,315,500
---------------
$ 8,008,994
-----------------------------------------------------------------------------------------------------
Education Services -- 0.2%
555,000 Cambium Learning Group, Inc., 9.75%, 2/15/17 $ 555,000
-----------------------------------------------------------------------------------------------------
Hotels, Resorts, Cruise Lines -- 0.2%
565,000 Viking Cruises, Ltd., 6.25%, 5/15/25 (144A) $ 552,287
-----------------------------------------------------------------------------------------------------
Restaurants -- 0.6%
2,000,000(e) PF Chang's China Bistro, Inc., 10.25%,
6/30/20 (144A) $ 1,945,000
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Trust | Semiannual Report | 9/30/15
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 1.5%
805,000 AVINTIV Specialty Materials, Inc., 6.875%, 6/1/19 $ 853,783
2,465,000(e) Constellis Holdings LLC / Constellis Finance Corp.,
9.75%, 5/15/20 (144A) 2,243,150
1,400,000(e) StoneMor Partners LP / Cornerstone Family Services
of WV, 7.875%, 6/1/21 1,438,500
---------------
$ 4,535,433
---------------
Total Consumer Services $ 15,596,714
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.8%
Consumer Finance -- 0.8%
1,030,000(e) Jefferies Finance LLC / JFIN Co-Issuer Corp.,
7.375%, 4/1/20 (144A) $ 992,714
1,720,000(e) TMX Finance LLC / TitleMax Finance Corp., 8.5%,
9/15/18 (144A) 1,354,500
---------------
$ 2,347,214
-----------------------------------------------------------------------------------------------------
Diversified Capital Markets -- 0.2%
700,000(a)(e)(g) Credit Suisse Group AG, 7.5% (144A) $ 728,875
-----------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.5%
2,325,000(a)(e)(g) Goldman Sachs Capital II, 4.0% $ 1,679,812
-----------------------------------------------------------------------------------------------------
Specialized Finance -- 1.3%
425,000 Nationstar Mortgage LLC / Nationstar Capital Corp.,
6.5%, 7/1/21 $ 352,750
2,845,000(e) Nationstar Mortgage LLC / Nationstar Capital Corp.,
6.5%, 6/1/22 2,268,888
1,325,000(e) Ocwen Financial Corp., 7.125%, 5/15/19 (144A) 1,185,875
---------------
$ 3,807,513
---------------
Total Diversified Financials $ 8,563,414
-----------------------------------------------------------------------------------------------------
ENERGY -- 15.8%
Coal & Consumable Fuels -- 0.0%+
2,125,000(d) James River Coal Co., 7.875%, 4/1/19 $ 213
-----------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.3%
1,214,000 Energy XXI Gulf Coast, Inc., 6.875%, 3/15/24 $ 209,415
750,000 YPF SA, 8.875%, 12/19/18 (144A) 723,750
---------------
$ 933,165
-----------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.9%
2,500,000 Ocean Rig UDW, Inc., 7.25%, 4/1/19 (144A) $ 1,389,850
1,800,000(e) Shelf Drill Holdings, Ltd., 8.625%, 11/1/18 (144A) 1,404,000
---------------
$ 2,793,850
-----------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.5%
598,000 Exterran Partners LP / EXLP Finance Corp.,
6.0%, 4/1/21 $ 505,310
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 19
Schedule of Investments | 9/30/15 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- (continued)
1,020,000 McDermott International, Inc., 8.0%, 5/1/21 (144A) $ 851,700
---------------
$ 1,357,010
-----------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 8.1%
2,500,000(e) Approach Resources, Inc., 7.0%, 6/15/21 $ 1,500,000
4,332,000(e) Comstock Resources, Inc., 7.75%, 4/1/19 1,083,000
3,850,000(e) EP Energy LLC / EP Energy Finance, Inc.,
9.375%, 5/1/20 3,311,000
95,000 EP Energy LLC / Everest Acquisition Finance, Inc.,
7.75%, 9/1/22 76,000
1,295,000(e) EPL Oil & Gas, Inc., 8.25%, 2/15/18 317,275
2,015,000(e) Gulfport Energy Corp., 7.75%, 11/1/20 1,979,737
1,860,000 Halcon Resources Corp., 8.875%, 5/15/21 558,000
3,360,000(e) Halcon Resources Corp., 9.75%, 7/15/20 1,142,400
1,950,000 Legacy Reserves LP / Legacy Reserves Finance
Corp., 6.625%, 12/1/21 1,326,000
800,000 Linn Energy LLC / Linn Energy Finance Corp.,
6.5%, 9/15/21 166,000
1,394,000(e) Memorial Production Partners LP / Memorial
Production Finance Corp., 6.875%, 8/1/22 850,340
2,000,000(e) Midstates Petroleum Co., Inc., 9.25%, 6/1/21 390,000
1,050,000 MIE Holdings Corp., 7.5%, 4/25/19 (144A) 483,000
590,000 Parsley Energy LLC / Parsley Finance Corp.,
7.5%, 2/15/22 (144A) 572,300
2,485,000 Penn Virginia Corp., 7.25%, 4/15/19 559,125
750,000 Penn Virginia Corp., 8.5%, 5/1/20 194,062
2,750,000 PetroQuest Energy, Inc., 10.0%, 9/1/17 2,433,750
3,380,000(d) Quicksilver Resources, Inc., 7.125%, 4/1/16 1,048
900,000 Rice Energy, Inc., 6.25%, 5/1/22 802,692
735,000 RSP Permian, Inc., 6.625%, 10/1/22 705,600
4,035,000(e) Sanchez Energy Corp., 7.75%, 6/15/21 2,985,900
1,500,000(e) Vanguard Natural Resources LLC / VNR Finance Corp.,
7.875%, 4/1/20 911,250
950,000(e) WPX Energy, Inc., 7.5%, 8/1/20 869,250
1,475,000(e) WPX Energy, Inc., 8.25%, 8/1/23 1,338,563
---------------
$ 24,556,292
-----------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 2.5%
3,859,000 Calumet Specialty Products Partners LP / Calumet
Finance Corp., 6.5%, 4/15/21 $ 3,473,100
750,000(e) Calumet Specialty Products Partners LP / Calumet
Finance Corp., 7.75%, 4/15/23 (144A) 688,590
732,632(c) EP PetroEcuador via Noble Sovereign Funding I, Ltd.,
5.957%, 9/24/19 565,958
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Trust | Semiannual Report | 9/30/15
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- (continued)
3,000,000(e) Seven Generations Energy, Ltd., 8.25%,
5/15/20 (144A) $ 2,820,000
---------------
$ 7,547,648
-----------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 3.5%
875,000(e) Crestwood Midstream Partners LP / Crestwood
Midstream Finance Corp., 6.25%, 4/1/23 (144A) $ 743,750
1,524,000(c)(e) Energy Transfer Partners LP, 3.318%, 11/1/66 1,112,520
350,000(a)(e) Enterprise Products Operating LLC, 8.375%, 8/1/66 344,312
2,500,000 Genesis Energy LP / Genesis Energy Finance Corp.,
6.75%, 8/1/22 2,346,250
1,410,000(e) Global Partners LP / GLP Finance Corp.,
6.25%, 7/15/22 1,240,800
1,100,000 Global Partners LP / GLP Finance Corp., 7.0%,
6/15/23 (144A) 1,025,750
385,000 PBF Logistics LP / PBF Logistics Finance Corp.,
6.875%, 5/15/23 (144A) 333,987
2,500,000(e) Sunoco LP / Sunoco Finance Corp., 6.375%,
4/1/23 (144A) 2,437,500
1,185,000 Western Refining Logistics LP / WNRL Finance Corp.,
7.5%, 2/15/23 1,176,113
---------------
$ 10,760,982
---------------
Total Energy $ 47,949,160
-----------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.5%
Food Retail -- 0.5%
1,505,000(e) Tops Holding LLC / Tops Markets II Corp.,
8.0%, 6/15/22 (144A) $ 1,505,000
---------------
Total Food & Staples Retailing $ 1,505,000
-----------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 8.2%
Agricultural Products -- 1.1%
2,100,000(e) Pinnacle Operating Corp., 9.0%, 11/15/20 (144A) $ 2,037,000
1,215,000 Southern States Cooperative, Inc., 10.0%,
8/15/21 (144A) 1,069,200
575,000 Tonon Luxembourg SA, 10.5%, 5/14/24 (144A) 258,750
---------------
$ 3,364,950
-----------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 5.5%
775,000 Bertin SA / Bertin Finance, Ltd., 10.25%,
10/5/16 (144A) $ 816,656
1,250,000 CFG Investment SAC, 9.75%, 7/30/19 (144A) 750,000
318,000(e) Chiquita Brands International, Inc. / Chiquita
Brands LLC, 7.875%, 2/1/21 337,875
3,500,000(e) FAGE Dairy Industry SA / FAGE USA Dairy Industry, Inc.,
9.875%, 2/1/20 (144A) 3,640,000
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 21
Schedule of Investments | 9/30/15 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- (continued)
1,240,000 Marfrig Holding Europe BV, 6.875%, 6/24/19 (144A) $ 1,063,300
1,000,000 Marfrig Holding Europe BV, 8.375%, 5/9/18 (144A) 932,500
1,200,000 Marfrig Holding Europe BV, 11.25%, 9/20/21 (144A) 1,146,000
3,400,000(e) Minerva Luxembourg SA, 7.75%, 1/31/23 (144A) 2,975,000
400,000 Minerva Luxembourg SA, 12.25%, 2/10/22 (144A) 432,040
2,000,000(e) Post Holdings, Inc., 6.0%, 12/15/22 (144A) 1,917,500
2,100,000(e) Post Holdings, Inc., 7.375%, 2/15/22 2,131,500
500,000 Post Holdings, Inc., 8.0%, 7/15/25 (144A) 515,000
---------------
$ 16,657,371
-----------------------------------------------------------------------------------------------------
Soft Drinks -- 0.5%
1,625,000(e) Cott Beverages, Inc., 5.375%, 7/1/22 $ 1,574,203
-----------------------------------------------------------------------------------------------------
Tobacco -- 1.1%
3,835,000(e) Alliance One International, Inc., 9.875%, 7/15/21 $ 3,278,925
---------------
Total Food, Beverage & Tobacco $ 24,875,449
-----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.3%
Health Care Facilities -- 1.9%
2,560,000(e) CHS/Community Health Systems, Inc.,
6.875%, 2/1/22 $ 2,614,298
2,400,000(e) Kindred Healthcare, Inc., 6.375%, 4/15/22 2,382,000
835,000(e) Universal Hospital Services, Inc., 7.625%, 8/15/20 782,812
---------------
$ 5,779,110
-----------------------------------------------------------------------------------------------------
Health Care Services -- 2.1%
2,250,000(e) BioScrip, Inc., 8.875%, 2/15/21 $ 1,732,500
2,000,000(e) Kindred Escrow Corp. II, 8.0%, 1/15/20 (144A) 2,120,000
2,380,000(e) Truven Health Analytics, Inc., 10.625%, 6/1/20 2,487,100
---------------
$ 6,339,600
-----------------------------------------------------------------------------------------------------
Health Care Supplies -- 1.0%
3,000,000(e) Immucor, Inc., 11.125%, 8/15/19 $ 3,090,000
-----------------------------------------------------------------------------------------------------
Health Care Technology -- 0.3%
900,000(e) Emdeon, Inc., 11.0%, 12/31/19 $ 958,500
---------------
Total Health Care Equipment & Services $ 16,167,210
-----------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.0%
Household Products -- 0.7%
2,220,000 Springs Industries, Inc., 6.25%, 6/1/21 $ 2,197,800
-----------------------------------------------------------------------------------------------------
Personal Products -- 1.3%
1,745,000(e) Albea Beauty Holdings SA, 8.375%, 11/1/19 (144A) $ 1,832,250
2,315,000(e) Monitronics International, Inc., 9.125%, 4/1/20 2,083,500
---------------
$ 3,915,750
---------------
Total Household & Personal Products $ 6,113,550
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Trust | Semiannual Report | 9/30/15
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
INSURANCE -- 13.6%
Insurance Brokers -- 0.3%
1,000,000(e) USI, Inc., 7.75%, 1/15/21 (144A) $ 978,750
-----------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 2.1%
3,075,000(a)(e) Liberty Mutual Group, Inc., 10.75%, 6/15/58 (144A) $ 4,620,188
1,100,000(e) MetLife, Inc., 10.75%, 8/1/39 1,716,000
---------------
$ 6,336,188
-----------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 3.0%
3,000,000(b)(h) Fixed Income Trust, Series 2013-A, 0.0%,
10/15/97 (144A) $ 2,124,890
5,300,000(e) Hanover Insurance Corp., 7.625%, 10/15/25 6,732,791
265,000(a)(e)(g) White Mountains Insurance Group, Ltd.,
7.506% (144A) 267,650
---------------
$ 9,125,331
-----------------------------------------------------------------------------------------------------
Reinsurance -- 8.2%
500,000(c) Alamo Re, Ltd., 5.9%, 6/7/18 (144A) (Cat Bond) $ 516,800
875,402(i) Altair Re II, Ltd. (Willis Securities, Inc.), Variable
Rate Notes, 6/30/16 61,453
800,000(i) Altair Re III, Ltd. (Willis Securities, Inc.), Variable
Rate Notes, 6/30/17 834,400
500,000(i) Arlington Segregated Account (Kane SAC, Ltd.),
Variable Rate Notes, 8/31/16 513,600
250,000(c) Atlas Reinsurance VII, Ltd., 8.325%, 1/7/16
(144A) (Cat Bond) 253,150
500,000(c) Blue Danube II, Ltd., 4.368%, 5/23/16 (144A)
(Cat Bond) 504,250
500,000(c) Caelus Re, Ltd., Series 2013-1, Class A, 5.24%,
3/7/16 (144A) (Cat Bond) 505,200
400,000(c) Caelus Re, Ltd., Series 2013-2, Class A, 6.84%,
4/7/20 (144A) (Cat Bond) 413,200
700,000(i) Carnoustie Segregated Account (Kane SAC, Ltd.),
Variable Rate Notes, 2/19/16 763,490
500,000(i) Clarendon Segregated Account (Kane SAC, Ltd.),
Variable Rate Notes, 6/15/16 491,850
500,000(c) Compass Re II, Ltd., 10.111%, 12/8/15 (144A)
(Cat Bond) 494,100
250,000(c) East Lane Re V, Ltd., 9.0%, 3/16/16 (144A)
(Cat Bond) 257,950
913,500(i) Exeter Segregated Account (Kane SAC, Ltd.),
Variable Rate Notes, 1/7/16 976,897
600,000(i) Fairfield Segregated Account (Kane SAC, Ltd.),
Variable Rate Notes, 2/2/16 586,920
500,000(c) Galileo Re, Ltd., 7.4%, 1/9/17 (144A) (Cat Bond) 509,850
1,300,000(i) Gullane Segregated Account (Kane SAC, Ltd.),
Variable Rate Notes, 1/22/17 1,425,710
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 23
Schedule of Investments | 9/30/15 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
630,750(i) Hereford Segregated Account (Kane SAC, Ltd.),
Variable Rate Notes, 1/12/16 $ 724,479
750,000(c) Kilimanjaro Re, Ltd., 4.74%, 4/30/18 (144A)
(Cat Bond) 754,425
500,000(i) Kingsbarns Segregated Account (Kane SAC, Ltd.),
Variable Rate Notes, 12/18/15 482,450
1,000,000(i) Lahinch Segregated Account (Kane SAC, Ltd.),
Variable Rate Notes, 6/15/16 996,000
760,000(i) Lorenz Re, Ltd. (Prime, Ltd.), Variable Rates Notes,
3/31/18 804,156
622,533(i) Muirfield Segregated Account (Kane SAC, Ltd.),
Variable Rate Notes, 1/12/16 683,417
1,000,000(i) Pangaea Re IX Segregated Account (Kane SAC, Ltd.),
Variable Rate Notes, 7/1/18 18,000
1,000,000(i) Pangaea Re Segregated Account (Kane SAC, Ltd.),
Series 2015-1, Variable Rate Notes, 2/1/19 1,129,300
1,000,000(i) Pangaea Re Segregated Account (Kane SAC, Ltd.),
Series 2015-2 Variable Rate Notes, 2/1/19 1,032,900
250,000(c) Residential Reinsurance 2011, Ltd., 8.9%,
12/7/15 (144A) (Cat Bond) 251,700
250,000(c) Residential Reinsurance 2012, Ltd., 8.0%,
6/6/16 (144A) (Cat Bond) 261,075
250,000(c) Residential Reinsurance 2012, Ltd., 10.0%,
6/6/16 (144A) (Cat Bond) 264,050
400,000(c) Residential Reinsurance 2012, Ltd., 12.74%,
12/6/16 (144A) (Cat Bond) 424,440
250,000(c) Residential Reinsurance 2012, Ltd., 19.0%,
12/6/16 (144A) (Cat Bond) 273,675
400,000(c) Residential Reinsurance 2012, Ltd., 22.0%,
6/6/16 (144A) (Cat Bond) 441,640
250,000(c) Residential Reinsurance 2013, Ltd., 9.24%,
6/6/17 (144A) (Cat Bond) 264,575
500,000(c) Sanders Re, Ltd., Series 2013-1, Class B, 4.0%,
5/5/17 (144A) (Cat Bond) 503,800
3,439(i) Sector Re V, Ltd. (Swiss Re), Series 3, Class C,
Variable Rate Notes, 12/1/17 (144A) 14,697
1,463(i) Sector Re V, Ltd. (Swiss Re), Series 4, Class A,
Variable Rate Notes, 3/30/19 (144A) 34,260
800,000(i) Sector Re V, Ltd. (Swiss Re), Series 4, Class C,
Variable Rate Notes, 12/1/19 (144A) 891,840
750,000(i) Sector Re V, Ltd. (Swiss Re), Series 5, Class F,
Variable Rate Notes, 3/1/20 (144A) 786,225
600,000(i) Silverton Re, Ltd. (Aon Benfield Securities, Inc.),
Variable Rate Notes, 9/16/16 (144A) 12,000
800,000(i) Silverton Re, Ltd. (Aon Benfield Securities, Inc.),
Variable Rate Notes, 9/18/17 (144A) 904,000
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Trust | Semiannual Report | 9/30/15
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
500,000(i) St. Andrews Segregated Account (Kane SAC, Ltd.),
Variable Rate Notes, 1/22/16 $ 521,400
300,000(c) Tar Heel Re, Ltd., Series 2013-1, Class A, 8.5%,
5/9/16 (144A) (Cat Bond) 311,400
642,367(i) Troon Segregated Account (Kane SAC, Ltd.),
Variable Rate Notes, 1/12/16 687,654
1,012,000(i) Turnberry Segregated Account (Kane SAC, Ltd.),
Variable Rate Notes, 1/15/16 1,026,067
1,250,000(i) Versutus, Ltd. (MMC Securities), Series 2015-A,
Variable Rate Notes, 12/31/17 1,412,500
---------------
$ 25,020,945
---------------
Total Insurance $ 41,461,214
-----------------------------------------------------------------------------------------------------
MATERIALS -- 14.6%
Commodity Chemicals -- 2.3%
3,250,000(e) Basell Finance Co., BV, 8.1%, 3/15/27 (144A) $ 4,199,432
3,625,000(e) Rain CII Carbon LLC / CII Carbon Corp., 8.25%,
1/15/21 (144A) 2,900,000
---------------
$ 7,099,432
-----------------------------------------------------------------------------------------------------
Construction Materials -- 0.2%
595,000(e) Unifrax I LLC / Unifrax Holding Co., 7.5%,
2/15/19 (144A) $ 583,100
-----------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.6%
210,000 Blue Cube Spinco, Inc., 9.75%, 10/15/23 (144A) $ 218,400
210,000 Blue Cube Spinco, Inc., 10.0%, 10/15/25 (144A) 218,138
2,010,000(e) Evolution Escrow Issuer LLC, 7.5%, 3/15/22 (144A) 1,271,325
---------------
$ 1,707,863
-----------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.6%
725,000 FMG Resources August 2006 Pty, Ltd., 9.75%,
3/1/22 (144A) $ 675,156
2,000,000(e) Global Brass & Copper, Inc., 9.5%, 6/1/19 2,167,500
1,747,928 Mirabela Nickel, Ltd., 9.5%, 6/24/19 873,964
1,410,000 Prince Mineral Holding Corp., 11.5%, 12/15/19
(144A) 1,184,400
---------------
$ 4,901,020
-----------------------------------------------------------------------------------------------------
Forest Products -- 1.0%
4,000,000(e) Millar Western Forest Products, Ltd., 8.5%, 4/1/21 $ 2,920,000
-----------------------------------------------------------------------------------------------------
Gold -- 0.8%
3,255,000(e) IAMGOLD Corp., 6.75%, 10/1/20 (144A) $ 2,343,600
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 25
Schedule of Investments | 9/30/15 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 0.8%
1,633,288(f) Ardagh Finance Holdings SA, 8.625%
(8.625% PIK 0.0% cash), 6/15/19 (144A) $ 1,665,954
500,000 Beverage Packaging Holdings Luxembourg II
SA / Beverage Packaging Holdings II Is, 6.0%,
6/15/17 (144A) 489,375
445,000 Coveris Holdings SA, 7.875%, 11/1/19 (144A) 421,637
---------------
$ 2,576,966
-----------------------------------------------------------------------------------------------------
Paper Packaging -- 2.1%
485,000(e) AEP Industries, Inc., 8.25%, 4/15/19 $ 493,487
2,220,000(e) Coveris Holding Corp., 10.0%, 6/1/18 (144A) 2,286,600
EUR 3,105,000 SIG Combibloc Holdings SCA, 7.75%,
2/15/23 (144A) 3,553,242
---------------
$ 6,333,329
-----------------------------------------------------------------------------------------------------
Paper Products -- 1.0%
1,590,000(e) Appvion, Inc., 9.0%, 6/1/20 (144A) $ 795,000
2,250,000 Mercer International, Inc., 7.0%, 12/1/19 2,272,500
---------------
$ 3,067,500
-----------------------------------------------------------------------------------------------------
Specialty Chemicals -- 1.3%
945,000(e) A Schulman, Inc., 6.875%, 6/1/23 (144A) $ 890,663
400,000 Hexion US Finance Corp., 6.625%, 4/15/20 340,000
3,330,000 Hexion US Finance Corp., 9.0%, 11/15/20 1,998,000
850,000 Rentech Nitrogen Partners LP / Rentech Nitrogen
Finance Corp., 6.5%, 4/15/21 (144A) 841,500
---------------
$ 4,070,163
-----------------------------------------------------------------------------------------------------
Steel -- 2.9%
1,125,000(e) Cliffs Natural Resources, Inc., 8.25%, 3/31/20 (144A) $ 990,000
815,000(e) JMC Steel Group, Inc., 8.25%, 3/15/18 (144A) 554,200
2,483,000 Optima Specialty Steel, Inc., 12.5%, 12/15/16 (144A) 2,334,020
3,750,000(e) Ryerson, Inc., 9.0%, 10/15/17 3,346,875
720,000 SunCoke Energy Partners LP / SunCoke Energy
Partners Finance Corp., 7.375%, 2/1/20 (144A) 637,056
1,195,000 United States Steel Corp., 7.5%, 3/15/22 944,050
---------------
$ 8,806,201
---------------
Total Materials $ 44,409,174
-----------------------------------------------------------------------------------------------------
MEDIA -- 4.4%
Broadcasting -- 0.2%
1,000,000(e) Intelsat Luxembourg SA, 7.75%, 6/1/21 $ 660,000
-----------------------------------------------------------------------------------------------------
Movies & Entertainment -- 3.2%
2,765,000(e) AMC Entertainment, Inc., 9.75%, 12/1/20 $ 2,903,250
1,400,000(e) Gibson Brands, Inc., 8.875%, 8/1/18 (144A) 1,235,500
1,115,000 Regal Entertainment Group, 5.75%, 2/1/25 1,053,675
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Trust | Semiannual Report | 9/30/15
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
Movies & Entertainment -- (continued)
1,890,000(e) SFX Entertainment, Inc., 9.625%, 2/1/19 (144A) $ 1,219,050
3,575,000(e) WMG Acquisition Corp., 6.75%, 4/15/22 (144A) 3,360,500
---------------
$ 9,771,975
-----------------------------------------------------------------------------------------------------
Publishing -- 1.0%
2,950,000(e) MPL 2 Acquisition Canco, Inc., 9.875%,
8/15/18 (144A) $ 3,053,250
---------------
Total Media $ 13,485,225
-----------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 2.3%
Biotechnology -- 0.5%
1,400,000(e) ConvaTec Healthcare E SA, 10.5%, 12/15/18 (144A) $ 1,445,500
-----------------------------------------------------------------------------------------------------
Pharmaceuticals -- 1.8%
1,508,000(e) DPx Holdings BV (FKA JLL/Delta Dutch Newco BV),
7.5%, 2/1/22 (144A) $ 1,523,080
1,490,000 Endo Finance LLC / Endo, Ltd. / Endo Finco, Inc.,
6.0%, 7/15/23 (144A) 1,471,375
780,000 Endo Finance LLC / Endo, Ltd. / Endo Finco, Inc.,
6.0%, 2/1/25 (144A) 757,575
1,900,000(e) VRX Escrow Corp., 5.875%, 5/15/23 (144A) 1,815,687
---------------
$ 5,567,717
---------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 7,013,217
-----------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.1%
Diversified Real Estate Activities -- 0.1%
330,000 Alam Synergy Pte, Ltd., 9.0%, 1/29/19 (144A) $ 295,350
-----------------------------------------------------------------------------------------------------
Specialized REIT -- 1.0%
3,480,000(e) Communications Sales & Leasing, Inc. / CSL
Capital LLC, 8.25%, 10/15/23 $ 2,975,400
---------------
Total Real Estate $ 3,270,750
-----------------------------------------------------------------------------------------------------
RETAILING -- 4.1%
Automotive Retail -- 1.4%
1,385,000(e) Asbury Automotive Group, Inc., 6.0%, 12/15/24 $ 1,433,475
3,260,000(e) DriveTime Automotive Group, Inc. / DT Acceptance
Corp., 8.0%, 6/1/21 (144A) 2,934,000
---------------
$ 4,367,475
-----------------------------------------------------------------------------------------------------
Computer & Electronics Retail -- 1.1%
3,305,000(e) Rent-A-Center, Inc., 6.625%, 11/15/20 $ 3,238,900
-----------------------------------------------------------------------------------------------------
Department Stores -- 0.6%
935,000(e) Argos Merger Sub, Inc., 7.125%, 3/15/23 (144A) $ 945,519
900,000(e) Neiman Marcus Group, Ltd., LLC, 8.0%,
10/15/21 (144A) 927,000
---------------
$ 1,872,519
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 27
Schedule of Investments | 9/30/15 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
Speciality Stores -- 1.0%
2,135,000 Outerwall, Inc., 5.875%, 6/15/21 $ 1,998,894
200,000 Outerwall, Inc., 6.0%, 3/15/19 199,000
685,000 Radio Systems Corp., 8.375%, 11/1/19 (144A) 718,393
---------------
$ 2,916,287
---------------
Total Retailing $ 12,395,181
-----------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.9%
Semiconductors -- 0.9%
995,000(e) Advanced Micro Devices, Inc., 7.0%, 7/1/24 $ 616,900
3,250,000(e) Advanced Micro Devices, Inc., 7.5%, 8/15/22 2,080,000
---------------
Total Semiconductors & Semiconductor Equipment $ 2,696,900
-----------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 2.7%
Data Processing & Outsourced Services -- 2.0%
1,783,000(e) First Data Corp., 8.25%, 1/15/21 (144A) $ 1,849,862
422,000 First Data Corp., 10.625%, 6/15/21 462,618
1,783,000(e) First Data Corp., 12.625%, 1/15/21 2,025,934
1,650,000(e)(f) Igloo Holdings Corp., 8.25% (9.0% PIK 8.25% cash),
12/15/17 (144A) 1,654,125
---------------
$ 5,992,539
-----------------------------------------------------------------------------------------------------
Internet Software & Services -- 0.7%
755,000 Bankrate, Inc., 6.125%, 8/15/18 (144A) $ 736,125
1,500,000 Cimpress NV, 7.0%, 4/1/22 (144A) 1,447,500
---------------
$ 2,183,625
---------------
Total Software & Services $ 8,176,164
-----------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.3%
Communications Equipment -- 1.0%
2,400,000(e)(f) CommScope Holding Co., Inc., 6.625% (7.375%
PIK 6.625% cash), 6/1/20 (144A) $ 2,460,000
645,000(e) CommScope Technologies Finance LLC, 6.0%,
6/15/25 (144A) 618,800
---------------
$ 3,078,800
-----------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.3%
745,000(e) Zebra Technologies Corp., 7.25%, 10/15/22 (144A) $ 793,425
---------------
Total Technology Hardware & Equipment $ 3,872,225
-----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 5.6%
Integrated Telecommunication Services -- 3.6%
2,000,000 Frontier Communications Corp., 7.125%, 1/15/23 $ 1,643,800
1,400,000(e) Frontier Communications Corp., 7.625%, 4/15/24 1,169,000
1,330,000(e) Frontier Communications Corp., 11.0%,
9/15/25 (144A) 1,286,775
1,975,000(e) GCI, Inc., 6.75%, 6/1/21 2,009,562
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Trust | Semiannual Report | 9/30/15
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- (continued)
1,725,000(e) GCI, Inc., 6.875%, 4/15/25 $ 1,733,625
4,200,000(e) Windstream Corp., 7.5%, 6/1/22 3,171,000
---------------
$ 11,013,762
-----------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 2.0%
1,085,000(e) Altice Financing SA, 6.625%, 2/15/23 (144A) $ 1,043,634
300,000(e) Altice Finco SA, 8.125%, 1/15/24 (144A) 285,750
3,080,000(e) Sprint Corp., 7.125%, 6/15/24 2,370,368
2,150,000(e) Sprint Corp., 7.25%, 9/15/21 1,760,313
400,000 Unison Ground Lease Funding LLC, 5.78%,
3/15/20 (144A) 399,816
---------------
$ 5,859,881
---------------
Total Telecommunication Services $ 16,873,643
-----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 4.1%
Air Freight & Logistics -- 0.3%
1,005,000(e) XPO Logistics, Inc., 7.875%, 9/1/19 (144A) $ 979,875
-----------------------------------------------------------------------------------------------------
Airlines -- 1.3%
1,295,000 Gol LuxCo SA, 8.875%, 1/24/22 (144A) $ 789,950
360,000 Intrepid Aviation Group Holdings LLC / Intrepid
Finance Co., 6.875%, 2/15/19 (144A) 324,000
2,050,000 Intrepid Aviation Group Holdings LLC /
Intrepid Finance Co., 8.25%, 7/15/17 (144A) 2,034,625
600,000(e) United Continental Holdings, Inc., 6.375%, 6/1/18 630,000
---------------
$ 3,778,575
-----------------------------------------------------------------------------------------------------
Marine -- 0.3%
1,025,000 Navios South American Logistics, Inc. / Navios
Logistics Finance US, Inc., 7.25%, 5/1/22 (144A) $ 922,500
-----------------------------------------------------------------------------------------------------
Railroads -- 0.7%
899,726 (f) AAF Holdings LLC / AAF Finance Co., 12.0%
(12.75% PIK 12.0% cash), 7/1/19 (144A) $ 886,230
1,520,000 Florida East Coast Holdings Corp., 9.75%,
5/1/20 (144A) 1,368,000
---------------
$ 2,254,230
-----------------------------------------------------------------------------------------------------
Trucking -- 1.5%
3,500,000(e) Jack Cooper Holdings Corp., 10.25%, 6/1/20 (144A) $ 3,150,000
2,000,000 Syncreon Group BV / Syncreon Global Finance US,
Inc., 8.625%, 11/1/21 (144A) 1,490,000
---------------
$ 4,640,000
---------------
Total Transportation $ 12,575,180
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 29
Schedule of Investments | 9/30/15 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
UTILITIES -- 3.1%
Electric Utilities -- 1.0%
1,095,000 ContourGlobal Power Holdings SA, 7.125%,
6/1/19 (144A) $ 1,097,847
1,010,000(a)(e) Enel SpA, 8.75%, 9/24/73 (144A) 1,158,692
900,000 PPL Energy Supply LLC, 6.5%, 6/1/25 (144A) 774,000
---------------
$ 3,030,539
-----------------------------------------------------------------------------------------------------
Independent Power Producers & Energy Traders -- 1.4%
2,675,000(e) NRG Energy, Inc., 6.25%, 5/1/24 $ 2,360,687
1,905,000(e) TerraForm Global Operating LLC, 9.75%,
8/15/22 (144A) 1,528,763
420,000 TerraForm Power Operating LLC, 6.125%,
6/15/25 (144A) 363,300
---------------
$ 4,252,750
-----------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.7%
2,135,574 Ormat Funding Corp., 8.25%, 12/30/20 $ 2,135,574
---------------
Total Utilities $ 9,418,863
-----------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES
(Cost $396,473,260) $ 360,745,400
-----------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS & NOTES -- 5.1%
of Net Assets
CAPITAL GOODS -- 1.2%
Construction & Farm Machinery & Heavy Trucks -- 1.2%
2,625,000(e) Meritor, Inc., 7.875%, 3/1/26 $ 3,560,156
---------------
Total Capital Goods $ 3,560,156
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Asset Management & Custody Banks -- 0.1%
400,000 Apollo Investment Corp., 5.75%, 1/15/16 $ 402,000
---------------
Total Diversified Financials $ 402,000
-----------------------------------------------------------------------------------------------------
ENERGY -- 0.6%
Coal & Consumable Fuels -- 0.0%+
1,905,000 Massey Energy Co., 3.25%, 8/1/16 $ 114,300
-----------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.2%
2,265,000(e) Hercules Offshore, Inc., 3.375%, 6/1/38 $ 554,925
-----------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.4%
1,340,000(e) Chesapeake Energy Corp., 2.5%, 5/15/37 $ 1,152,400
---------------
Total Energy $ 1,821,625
-----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.6%
Health Care Equipment & Services -- 1.6%
2,837,000(b)(e) Hologic, Inc., 2.0%, 12/15/37 $ 4,842,405
---------------
Total Health Care Equipment & Services $ 4,842,405
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer High Income Trust | Semiannual Report | 9/30/15
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
MATERIALS -- 1.2%
Diversified Chemicals -- 1.2%
4,000,000(j) Hercules, Inc., 6.5%, 6/30/29 $ 3,507,500
---------------
Total Materials $ 3,507,500
-----------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 0.4%
Biotechnology -- 0.4%
1,400,000 Corsicanto, Ltd., 3.5%, 1/15/32 $ 1,286,250
---------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 1,286,250
-----------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.0%+
Semiconductors -- 0.0%+
166,380(f) LDK Solar Co., Ltd., 5.535% (5.535% PIK 0.000%
cash), 12/31/18 $ 24,957
42,000(d)(k) Suntech Power Holdings Co., Ltd., 3.0%, 3/15/13 147
---------------
Total Semiconductors & Semiconductor Equipment $ 25,104
-----------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS & NOTES
(Cost $14,721,236) $ 15,445,040
-----------------------------------------------------------------------------------------------------
U.S . GOVERNMENT AND AGENCY
OBLIGATION -- 0.8% of Net Assets
2,330,100(c) U.S. Treasury Notes, 0.085%, 7/31/16 $ 2,330,296
-----------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATION
(Cost $2,330,440) $ 2,330,296
-----------------------------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATION -- 0.5% of
Net Assets
Russia -- 0.5%
1,380,400(b) Russian Government International Bond,
7.5%, 3/31/30 $ 1,623,695
-----------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATION
(Cost $1,001,445) $ 1,623,695
-----------------------------------------------------------------------------------------------------
TAX EXEMPT OBLIGATION -- 1.1% of Net Assets (l)
New York -- 1.1%
3,475,000 New York City Industrial Development Agency,
British Airways Plc Project, 7.625%, 12/1/32 $ 3,523,303
-----------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT OBLIGATION
(Cost $3,131,246) $ 3,523,303
-----------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT
OBLIGATION -- 0.1% of Net Assets
3,300,000(a) Non-Profit Preferred Funding Trust I, Series E,
0.0%, 9/15/37 (144A) $ 210,639
-----------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED DEBT OBLIGATION
(Cost $3,293,781) $ 210,639
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 31
Schedule of Investments | 9/30/15 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------
COMMON STOCKS -- 1.8% of Net Assets
CAPITAL GOODS -- 0.2%
Building Products -- 0.2%
894(h)(k) Panolam Holdings Co. $ 657,984
-----------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.0%+
33,171(h)(k) Liberty Tire Recycling LLC $ 332
---------------
Total Capital Goods $ 658,316
-----------------------------------------------------------------------------------------------------
INSURANCE -- 0.0%+
Insurance Brokers -- 0.0%+
GBP 1,625(h)(k) Towergate Finance Plc $ 393
---------------
Total Insurance $ 393
-----------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.3%
Pharmaceuticals -- 0.3%
15,900 Teva Pharmaceutical Industries, Ltd. (A.D.R.) $ 897,714
---------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 897,714
-----------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.0%+
Semiconductors -- 0.0%+
11,342(k) LDK Solar Co., Ltd. (A.D.R.) $ 667
---------------
Total Semiconductors & Semiconductor Equipment $ 667
-----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 1.3%
Air Freight & Logistics -- 0.6%
3,266(k) CEVA Holdings LLC $ 1,959,444
-----------------------------------------------------------------------------------------------------
Airlines -- 0.7%
45,044 Delta Air Lines, Inc. $ 2,021,124
---------------
Total Transportation $ 3,980,568
-----------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $5,237,848) $ 5,537,658
-----------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 0.7%
of Net Assets
DIVERSIFIED FINANCIALS -- 0.7%
Other Diversified Financial Services -- 0.7%
1,880(g) Bank of America Corp., 7.25% $ 2,024,760
---------------
Total Diversified Financials $ 2,024,760
-----------------------------------------------------------------------------------------------------
ENERGY -- 0.0%+
Oil & Gas Exploration & Production -- 0.0%+
1,100(g) Halcon Resources Corp., 5.75% $ 124,713
---------------
Total Energy $ 124,713
-----------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $2,164,242) $ 2,149,473
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer High Income Trust | Semiannual Report | 9/30/15
-----------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 3.2% of Net Assets
BANKS -- 1.0%
Diversified Banks -- 1.0%
3,000(a)(g) AgStar Financial Services ACA, 6.75% (144A) $ 3,190,125
---------------
Total Banks $ 3,190,125
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.4%
Consumer Finance -- 0.3%
750(g) Ally Financial, Inc., 7.0% (144A) $ 756,117
-----------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 1.1%
132,750 GMAC Capital Trust I, 8.125%, 2/15/40 $ 3,389,108
---------------
Total Diversified Financials $ 4,145,225
-----------------------------------------------------------------------------------------------------
INSURANCE -- 0.8%
Insurance Brokers -- 0.8%
GBP 1,548,867(h)(k) Towergate Finance Plc, Class B $ 2,294,745
-----------------------------------------------------------------------------------------------------
Reinsurance -- 0.0%+
8,500(i)(k) Lorenz Re, Ltd. (Aon Benfield Securities, Inc.),
Variable Rates Notes $ 21,250
---------------
Total Insurance $ 2,315,995
-----------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $9,372,492) $ 9,651,345
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($)
-----------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 0.3%
of Net Assets
COMMERCIAL PAPER -- 0.1%
410,000 Societe Generale SA, 0.005%, 10/1/15 $ 410,000
-----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.2%
440,000 Bank of Nova Scotia, 0.12%, dated 9/30/15 plus
accrued interest on 10/1/15 collateralized by the
following: $98,482 Freddie Mac Giant, 3.5%-4.0%,
10/1/44-9/1/45 $350,320 Federal National Mortgage
Association, 2.5%-4.5%, 11/1/27-3/1/45. $ 440,000
-----------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $850,000) $ 850,000
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 33
Schedule of Investments | 9/30/15 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 142.2%
(Cost -- $470,324,481) (n)(o) $ 432,039,353
-----------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (42.2)% $ (128,218,876)
-----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS -- 100.0% $ 303,820,477
=====================================================================================================
REIT Real Estate Investment Trust.
(144A) Security is exempt from registration under Rule 144A of the
Securities Act of 1933. Such securities may be resold normally to
qualified institutional buyers in a transaction exempt from
registration. At September 30, 2015, the value of these securities
amounted to $189,512,152 or 62.4% of total net assets applicable to
common shareowners.
(Cat Bond) Catastrophe or Event-linked bond. At September 30, 2015, the value
of these securities amounted to $7,205,280 or 2.4% of total net
assets applicable to common shareowners. See Notes to Financial
Statements -- Note 1F.
+ Amount rounds to less than 0.1%.
* Senior secured floating rate loan interests in which the Trust
invests generally pay interest at rates that are periodically
redetermined by reference to a base lending 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 rate of a certificate of deposit or
(iv) other base lending rates used by commercial lenders. The
interest rate shown is the rate accruing at September 30, 2015.
(a) The interest rate is subject to change periodically. The interest
rate shown is the rate at September 30, 2015.
(b) Debt obligation initially issued at one coupon which converts to a
higher coupon at a specific date. The rate shown is the rate at
September 30, 2015.
(c) Floating rate note. The rate shown is the coupon rate at September
30, 2015.
(d) Security is in default.
(e) Denotes security pledged and segregated as collateral for the
margin-loan financing agreement.
(f) Payment in Kind (PIK) security which may pay interest in the form of
additional principal amount.
(g) Security is perpetual in nature and has no stated maturity date.
(h) Security is valued using fair value methods (other than prices
supplied by independent pricing services). See Notes to Financial
Statements -- Note 1A.
(i) Structured reinsurance investment. At September 30, 2015, the value
of these securities amounted to $17,836,915 or 5.9% of total net
assets applicable to common shareowners. See Notes to Financial
Statements -- Note 1F.
(j) Security is priced as a unit.
(k) Non-income producing.
(l) Consists of Revenue Bonds unless otherwise indicated.
(m) Towergate B Preferred warrants are exercisable into 136 Tig FinCo A
shares.
The accompanying notes are an integral part of these financial statements.
34 Pioneer High Income Trust | Semiannual Report | 9/30/15
(n) At September 30, 2015, the net unrealized depreciation on
investments based on cost for federal tax purposes of $471,731,855
was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 21,080,394
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (60,772,896)
---------------
Net unrealized depreciation $ (39,692,502)
===============
For financial reporting purposes net unrealized depreciation on investments was
$38,285,128 and cost of investments aggregated $470,324,481.
(o) Distributions of Investments by country of issue, as a
percentage of total investments in securities, is as follows:
United States 77.0%
Luxembourg 4.5
Canada 3.8
Bermuda 3.8
Netherlands 2.7
Other (individually less than 1%) 8.2
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended September 30, 2015 aggregated $69,179,588 and $82,521,471,
respectively.
Glossary of Terms:
(A.D.R.) American Depositary Receipt
Principal amounts are denominated in U.S. dollars unless otherwise noted.
EUR - Euro
GBP - Great British Pound
CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
-----------------------------------------------------------------------------------------------------
Obligation Net
Notional Entity/ Credit Expiration Premiums Unrealized
Principal ($)(1) Counterparty Index Coupon Rating(2) Date (Received) Appreciation
-----------------------------------------------------------------------------------------------------
2,000,000 JPMorgan Goodyear
Chase Tire &
& Co. Rubber
Co. 5.00% BB 12/20/17 $(65,000) $263,173
=====================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Based on Standard & Poor's rating of the issuer or weighted average of all
the underlying securities of the index.
Various inputs are used in determining the value of the Trust's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 35
Schedule of Investments | 9/30/15 (unaudited) (continued)
The following is a summary of the inputs used as of September 30, 2015, in
valuing the Trust's investments.
-----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------
Asset Backed Securities $ -- $ 2,953,027 $ -- $ 2,953,027
Collateralized Mortgage
Obligations -- 6,756,020 -- 6,756,020
Senior Secured Floating
Rate Loan
Interests -- 20,263,457 -- 20,263,457
Corporate Bonds & Notes
Capital Goods
Industrial Machinery -- 7,661,800 446,407 8,108,207
Insurance
Property & Casualty
Insurance -- 7,000,441 2,124,890 9,125,331
Reinsurance -- 7,205,280 17,815,665 25,020,945
All Other Corporate Bonds
& Notes -- 318,490,917 -- 318,490,917
Convertible Bonds & Notes -- 15,445,040 -- 15,445,040
U.S. Government and Agency -- 2,330,296 -- 2,330,296
Obligation
Sovereign Debt Obligation -- 1,623,695 -- 1,623,695
Tax Exempt Obligation -- 3,523,303 -- 3,523,303
Municipal Collateralized
Debt Obligation -- 210,639 -- 210,639
Common Stocks
Capital Goods
Building Products -- -- 657,984 657,984
Industrial Machinery -- -- 332 332
Insurance
Insurance Brokers -- -- 393 393
Transportation
Air Freight & Logistics -- 1,959,444 -- 1,959,444
All Other Common Stocks 2,919,505 -- -- 2,919,505
Convertible Preferred Stocks
Energy
Oil & Gas Exploration
& Production -- 124,713 -- 124,713
All Other Convertible
Preferred Stocks 2,024,760 -- -- 2,024,760
Preferred Stocks
Banks
Diversified Banks -- 3,190,125 -- 3,190,125
Diversified Financials
Consumer Finance -- 756,117 -- 756,117
Insurance
Insurance Brokers -- -- 2,294,745 2,294,745
Reinsurance -- -- 21,250 21,250
All Other Preferred Stocks 3,389,108 -- -- 3,389,108
The accompanying notes are an integral part of these financial statements.
36 Pioneer High Income Trust | Semiannual Report | 9/30/15
-----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------
Commercial Paper $ -- $ 410,000 $ -- $ 410,000
Repurchase Agreement -- 440,000 -- 440,000
-----------------------------------------------------------------------------------------
Total Investments in
Securities $ 8,333,373 $400,344,314 $ 23,361,666 $432,039,353
=========================================================================================
Other Financial Instruments
Assets:
Unrealized appreciation
on swap contracts $ -- $ 263,173 $ -- $ 263,173
Unrealized appreciation
on forward foreign
currency contracts -- 111,344 -- 111,344
Liabilities:
Unrealized depreciation
on forward foreign
currency contracts -- (161,554) -- (161,554)
-----------------------------------------------------------------------------------------
Total Other Financial
Instruments $ -- $ 212,963 $ -- $ 212,963
=========================================================================================
The following is a summary of the fair valuation of certain of the Trust's
assets and liabilities as of September 30, 2015:
-----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
=========================================================================================
Assets:
Foreign currencies, at value $ -- $ 4,574,659 $ -- $ 4,574,659
Liabilities:
Swap collateral -- (200,000) -- (200,000)
Margin loan financing -- (151,000,000) -- (151,000,000)
-----------------------------------------------------------------------------------------
Total $ -- $ (146,625,341) $ -- $ (146,625,341)
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 37
Schedule of Investments | 9/30/15 (unaudited) (continued)
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
-----------------------------------------------------------------------------------------------------------------------------------
Change in
Balance Realized unrealized Accrued Transfers Transfers Balance
as of gain appreciation discounts/ in to out of as of
3/31/15 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* Level 3* 9/30/15
-----------------------------------------------------------------------------------------------------------------------------------
Corporate Bonds
& Notes
Capital Goods
Industrial
Machinery $ 772,590 $ 15,368 $ (195,863) $ 32,511 $ (184,000) $ 5,801 $ -- $ -- $ 446,407
Diversified
Financials
Other
Diversified
Financial
Services 2,204,347 -- -- -- (2,204,347) -- -- -- --
Insurance
Property
& Casualty
Insurance -- -- (79,457) 2,204,347 -- -- -- -- 2,124,890
Reinsurance 14,993,846 (95,552) 496,428 5,732,195 (3,389,158) 77,906 -- -- 17,815,665
Convertible Bonds
& Notes
Semiconductors &
Semiconductors
Equipment
Semiconductors -- -- 28,674 4,481 -- 121 -- (33,276) --
Common Stocks
Capital Goods
Building Products 657,984 -- -- -- -- -- -- -- 657,984
Industrial
Machinery 332 -- -- -- -- -- -- -- 332
Insurance
Insurance Brokers -- 386 7 -- -- -- -- -- 393
Preferred Stocks
Insurance
Insurance Brokers -- -- (5,322) 2,300,067 -- -- -- -- 2,294,745
Reinsurance 2,185,205 -- (198,050) -- (1,965,905) -- -- -- 21,250
-----------------------------------------------------------------------------------------------------------------------------------
Total $20,814,304 $ (79,798) $ 46,417 $10,273,601 $ (7,743,410) $83,828 $ -- $ (33,276) $23,361,666
===================================================================================================================================
* Transfers are calculated on the beginning of period value. For the six
months ended September 30, 2015, there were no transfers between Levels 1
and 2. For the six months ended September 30, 2015, securities with
aggregate market value of $33,276 transferred from Level 3 to Level 2 as
there were observable inputs available to determine their value.
(1) Realized gain (loss) on these securities is included in the realized gain
(loss) from investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) from investments in
the Statement of Operations.
Net change in unrealized appreciation of Level 3 investments still held and
considered Level 3 at September 30, 2015: $66,498.
The accompanying notes are an integral part of these financial statements.
38 Pioneer High Income Trust | Semiannual Report | 9/30/15
Statement of Assets and Liabilities | 9/30/15 (unaudited)
ASSETS:
Investments in securities, at value (cost $470,324,481) $432,039,353
Cash 8,543,144
Foreign currencies, at value (cost $5,283,797) 4,574,659
Receivables --
Investment securities sold 1,085,210
Interest receivable 9,569,205
Dividends receivable 34,075
Unrealized appreciation on swap contracts 263,173
Unrealized appreciation on forward foreign currency contracts 111,344
Prepaid expenses 5,028
------------------------------------------------------------------------------------------
Total assets $456,225,191
------------------------------------------------------------------------------------------
LIABILITIES:
Swap collateral $ 200,000
Credit default swaps, premiums received 65,000
Payables --
Margin loan financing 151,000,000
Investment securities purchased 601,662
Trustees' fees 148
Unrealized depreciation on forward foreign currency contracts 161,554
Due to affiliates 202,124
Administration fee payable 1,529
Interest expense payable 69,952
Accrued expenses 102,745
------------------------------------------------------------------------------------------
Total liabilities $152,404,714
------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $414,438,568
Distributions in excess of net investment income (1,099,569)
Accumulated net realized loss on investments, swap contacts, and
foreign currency transactions (70,733,336)
Net unrealized depreciation on investments (38,285,128)
Net unrealized appreciation on swap contracts 263,173
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (763,231)
------------------------------------------------------------------------------------------
Net assets applicable to common shareowners $303,820,477
==========================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $303,820,477 / 29,002,127 common shares $ 10.48
==========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 39
Statement of Operations (unaudited)
For the Six Months Ended 9/30/15
INVESTMENT INCOME:
Interest $ 19,626,193
Dividends (net of foreign taxes withheld $1,622) 415,488
Loan facility and other income 171,559
--------------------------------------------------------------------------------------------
Total investment income $ 20,213,240
--------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,462,586
Administrative expense 56,205
Transfer agent fees and expenses 8,611
Shareholder communications expense 22,544
Custodian fees 15,072
Professional fees 50,162
Printing expenses 5,304
Trustees' fees 9,108
Pricing fees 11,751
Interest expense 716,807
Miscellaneous 24,097
--------------------------------------------------------------------------------------------
Net operating expenses $ 2,382,247
--------------------------------------------------------------------------------------------
Net investment income $ 17,830,993
--------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAP CONTRACTS, AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (9,043,586)
Swap contracts 51,389
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 1,215,843 $ (7,776,354)
--------------------------------------------------------------------------------------------
Change in net unrealized depreciation on:
Investments $ (29,736,016)
Swap contracts (30,939)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (1,440,151) $ (31,207,106)
--------------------------------------------------------------------------------------------
Net realized and unrealized loss on investments, swap
contracts, and foreign currency transactions $ (38,983,460)
--------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (21,152,467)
============================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer High Income Trust | Semiannual Report | 9/30/15
Statements of Changes in Net Assets
---------------------------------------------------------------------------------------------
Six Months
Ended Year
9/30/15 Ended
(unaudited) 3/31/15
---------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 17,830,993 $ 39,057,991
Net realized loss on investments, swap contracts, and foreign
currency transactions (7,776,354) (17,689,876)
Change in net unrealized appreciation (depreciation) on
investments, swap contracts, and foreign
currency transactions (31,207,106) (42,018,226)
---------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (21,152,467) $ (20,650,111)
---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income and previously undistributed net
investment income ($0.69 and $1.61 per share,
respectively) $ (20,002,594) $ (46,212,245)
---------------------------------------------------------------------------------------------
Total distributions to common shareowners $ (20,002,594) $ (46,212,245)
---------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 626,515 $ 4,327,840
---------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners from Trust share transactions $ 626,515 $ 4,327,840
---------------------------------------------------------------------------------------------
Net decrease in net assets applicable to common
shareowners $ (40,528,546) $ (62,534,516)
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period 344,349,023 406,883,539
---------------------------------------------------------------------------------------------
End of period $ 303,820,477 $ 344,349,023
---------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net investment
income $ (1,099,569) $ 1,072,032
=============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 41
Statement of Cash Flows (unaudited)
For the Six Months Ended 9/30/15
Cash Flows From Operating Activities:
Net decrease in net assets resulting from operations $ (21,152,467)
------------------------------------------------------------------------------------------------
Adjustments to reconcile net decrease in net assets resulting from operations to
net cash and foreign currencies from operating activities:
Purchases of investment securities $ (73,952,886)
Proceeds from disposition and maturity of investment securities 83,648,633
Net purchases of temporary cash investments 430,000
Net accretion and amortization of discount/premium on investment securities (1,397,128)
Decrease in interest receivable 297,135
Decrease in dividends receivable 8,574
Decrease in reinvestment of distributions 316,033
Increase in prepaid expenses (5,028)
Decrease in due to affiliates (32,442)
Increase in trustees' fees payable 141
Increase in administration fees payable 1,529
Increase in accrued expenses payable 38,167
Decrease in interest expense payable (44,549)
Change in unrealized depreciation on investments 29,736,016
Change in unrealized depreciation on swap contracts 30,939
Change in unrealized depreciation on forward foreign currency contracts and
foreign currency 1,450,554
Net realized loss on investments 9,043,586
------------------------------------------------------------------------------------------------
Net cash and foreign currencies from operating activities $ 28,416,807
------------------------------------------------------------------------------------------------
Cash Flows Used in Financing Activities:
Decrease in due to custodian $ (1,342,414)
Distributions to common shareowners (20,002,594)
Reinvestment of distributions 626,515
------------------------------------------------------------------------------------------------
Net cash and foreign currencies used in financing activities $ (20,718,493)
------------------------------------------------------------------------------------------------
Effect of Foreign Exchange Fluctuations on Cash:
Effect of foreign exchange fluctuations on cash $ 164,638
------------------------------------------------------------------------------------------------
Cash and Foreign Currencies:
Beginning of the period $ 5,254,851
------------------------------------------------------------------------------------------------
End of the period $ 13,117,803
------------------------------------------------------------------------------------------------
Cash Flow Information:
Cash paid for interest $ 761,356
================================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer High Income Trust | Semiannual Report | 9/30/15
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Year
Ended Year Year Year Ended Ended
9/30/15 Ended Ended Ended 3/31/12 3/31/11
(unaudited) 3/31/15 3/31/14 3/31/13 (Consolidated) (Consolidated)
------------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 11.89 $ 14.19 $ 14.23 $ 13.45 $ 14.33 $ 13.23
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 0.62 $ 1.36 $ 1.50 $ 1.74 $ 1.70 $ 1.68
Net realized and unrealized gain (loss)
on investments, swap contracts, and foreign
currency transactions (1.34) (2.05) 0.12 0.70 (0.92) 1.09
------------------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareowners from:
Net investment income $ -- $ -- $ (0.01) $ (0.01) $ (0.01) $ (0.02)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.72) $ (0.69) $ 1.61 $ 2.43 $ 0.77 $ 2.75
------------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income and previously
undistributed net investment income $ (0.69)* $ (1.61)* $ (1.65)* $ (1.65) $ (1.65) $ (1.65)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.41) $ (2.30) $ (0.04) $ 0.78 $ (0.88) $ 1.10
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period (b) $ 10.48 $ 11.89 $ 14.19 $ 14.23 $ 13.45 $ 14.33
------------------------------------------------------------------------------------------------------------------------------------
Market value, end of period (b) $ 10.30 $ 12.87 $ 17.83 $ 16.97 $ 16.66 $ 16.55
====================================================================================================================================
Total return at market value (c) (14.95)%(d) (20.28)% 16.24% 12.65% 11.53% 20.12%
Ratios to average net assets of
common shareowners:
Total expenses plus interest expense (e)(f) 1.41%(g) 1.33% 1.04% 1.08% 1.05% 1.11%
Net investment income before preferred share
distributions 10.57%(g) 10.30% 10.70% 13.03% 12.66% 12.43%
Preferred share distributions --% --% 0.04% 0.06% 0.05% 0.12%
Net investment income available to
common shareowners 10.57%(g) 10.30% 10.66% 12.97% 12.61% 12.31%
Portfolio turnover 15% 37% 30% 27% 24% 10%
Net assets of common shareowners, end of
period (in thousands) $ 303,820 $ 344,349 $406,884 $404,498 $379,518 $401,348
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/15 43
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Year
Ended Year Year Year Ended Ended
9/30/15 Ended Ended Ended 3/31/12 3/31/11
(unaudited) 3/31/15 3/31/14 3/31/13 (Consolidated) (Consolidated)
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) $ -- $ -- $ --(h) $ 151,000 $ 151,000 $151,000
Asset coverage per preferred share, end of period $ -- $ -- $ --(h) $ 91,971 $ 87,835 $ 91,450
Average market value per preferred share (i) $ -- $ -- $ --(h) $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends
payable, per preferred share $ -- $ -- $ --(h) $ 25,001 $ 25,001 $ 25,001
Total amount of debt outstanding (in thousands) $ 151,000 $ 151,000 $151,000 $ -- $ -- $ --
Asset coverage per indebtedness (in thousands) $ 3,012 $ 3,280 $ 3,419 $ -- $ -- $ --
====================================================================================================================================
* The amount of distributions made to shareowners during the period were in
excess of the net investment income earned by the Trust during the period.
The Trust has accumulated undistributed net investment income which is part
of the Trust's NAV. A portion of the accumulated net investment income was
distributed to shareowners during the period. A decrease in distributions
may have a negative effect on the market value of the Trust's shares.
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) 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.
(c) 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
distribution, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Past
performance is not a guarantee of future results.
(d) Not Annualized.
(e) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(f) Includes interest expense of 0.42%, 0.38%, 0.02%, 0.0%, 0.0% and 0.0%,
respectively.
(g) Annualized.
(h) Preferred shares were redeemed during the period.
(i) Market value is redemption value without an active market.
The accompanying notes are an integral part of these financial statements.
44 Pioneer High Income Trust | Semiannual Report | 9/30/15
Notes to Financial Statements | 9/30/15 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer High Income Trust (the Trust) was organized as a Delaware statutory
trust on January 30, 2002. Prior to commencing operations on April 26, 2002, the
Trust had no operations other than matters relating to its organization and
registration as a diversified, closed-end management investment company under
the Investment Company Act of 1940, as amended. The investment objective of the
Trust is to seek a high level of current income and the Trust may, as a
secondary objective, also seek capital appreciation to the extent that it is
consistent with its investment objective.
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 gain or loss on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements:
A. Security Valuation
Security transactions are recorded as of trade date. Fixed-income
securities are valued at prices supplied by independent pricing services,
which consider such factors as market prices, market events, quotations
from one or more brokers, Treasury spreads, yields, maturities and ratings.
Senior floating rate loan interests (senior loans) are valued in accordance
with guidelines established by the Board of Trustees at the mean between
the last available bid and asked prices from one or more brokers or dealers
as obtained from Loan Pricing Corporation, an independent pricing service.
If price information is not available from Loan Pricing Corporation or if
the price information is deemed to be unreliable, price information will be
obtained from an alternative loan interest pricing service. If no reliable
price quotes are available from either the primary or alternative pricing
service broker quotes will be solicited. Event-linked bonds are valued at
the bid price obtained from an independent third party pricing service.
Other insurance-linked securities may be valued at the bid price obtained
from an independent pricing service, or through a third party using a
pricing matrix, insurance industry valuation models, or other fair value
methods or techniques to provide an estimated
Pioneer High Income Trust | Semiannual Report | 9/30/15 45
value of the instrument. Valuations may be supplemented by dealers and
other sources, as required. Equity securities that have traded on an
exchange are valued at the last sale price on the principal exchange where
they are traded. Equity securities that have not traded on the date of
valuation or securities for which sale prices are not available, generally
are valued using the mean between the last bid and asked prices. Shares of
money market mutual funds are valued at such funds' net asset value.
Trading in foreign securities is substantially completed each day at
various times prior to the close of the New York Stock Exchange (NYSE). The
values of such securities used in computing the net asset value of the
Trust's shares are determined as of such times.
Securities and senior loans for which independent pricing services are
unable to supply prices or for which market prices and/or quotations are
not readily available, or are considered to be unreliable are valued by a
fair valuation team comprised of certain personnel of Pioneer Investment
Management, Inc. (PIM), the Trust's investment adviser, pursuant to
procedures adopted by the Trust's Board of Trustees. PIM's fair valuation
team uses fair value methods approved by the Valuation Committee of the
Board of Trustees. PIM's valuation team is responsible for monitoring
developments that may impact fair valued securities and for discussing and
assessing fair value on an ongoing basis, and at least quarterly, with the
Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Trust may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Trust's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Trust's securities may differ significantly from exchange prices and
such differences could be material.
At September 30, 2015, six securities were valued using fair value methods
(in addition to securities valued using prices supplied by independent
pricing services or broker-dealers) representing 1.82% of net assets. The
value of these fair valued securities are $5,524,751.
46 Pioneer High Income Trust | Semiannual Report | 9/30/15
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Trust becomes aware of the ex-dividend
data in the exercise of reasonable diligence.
Interest income, including interest on income bearing cash accounts, is
recorded on an accrual basis, net of unrecoverable foreign taxes withheld
at the applicable country rates.
Discounts and premiums on debt securities are accreted or amortized,
respectively, daily, into interest income on an effective yield to maturity
basis with a corresponding increase or decrease in the cost basis of the
security. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the Statement of Operations from
the effects of changes in the market price of those securities but are
included with the net realized and unrealized gain or loss on investments.
D. Forward Foreign Currency Contracts
The Trust may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
are recorded in the Trust's financial statements. The Trust records
realized gains and losses at the time a contract is offset by entry into a
closing transaction or extinguished by delivery of the currency. Risks may
arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contracts and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 5).
Pioneer High Income Trust | Semiannual Report | 9/30/15 47
E. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no federal income tax provision is required. As
of March 31, 2015, the Trust did not accrue any interest or penalties with
respect to uncertain tax positions, which if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax returns filed
within the prior three years remain subject to examination by federal and
state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes. Capital
accounts within the financial statements are adjusted for permanent
book/tax differences to reflect tax character, but are not adjusted for
temporary differences.
The tax character of current year distributions payable to shareholders
will be determined at the end of the current taxable year.
The tax character of distributions paid to shareowners during the year
ended March 31, 2015 was as follows:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $46,212,245
---------------------------------------------------------------------------
Total $46,212,245
===========================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at March 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 7,154,815
Capital loss carryforward (44,356,204)
Late year loss deferrals (19,139,099)
Other book/tax temporary differences (5,544,462)
Unrealized depreciation (7,578,080)
---------------------------------------------------------------------------
Total $(69,463,030)
===========================================================================
The difference between book-basis and tax-basis unrealized depreciation is
primarily attributable to the realization for tax purposes of unrealized
gains on investments in passive foreign investment companies, the book/tax
48 Pioneer High Income Trust | Semiannual Report | 9/30/15
differences in the accrual of income on securities in default, the
difference between book and tax amortization methods and discounts on fixed
income securities and book/tax temporary differences.
F. Risks
Information regarding the Trust's principal risks is contained in the
Trust's original offering prospectus, with additional information included
in the Trust's shareowner reports issued from time to time. Please refer to
those documents when considering the Trust's principal risks. At times, the
Trust's investments may represent industries or industry sectors that are
interrelated or have common risks, making the Trust more susceptible to any
economic, political, or regulatory developments or other risks affecting
those industries and sectors.
Under normal market conditions, the Trust invests at least 80% of its
assets in below investment grade (high-yield) debt securities, loans and
preferred stocks. Because the Trust's investments are concentrated in
high-yield securities, the Trust is subject to risks of such 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. The Trust's investments in certain foreign
markets or countries with limited developing markets may subject the Trust
to a greater degree of risk than in a developed market. These risks include
disruptive political or economic conditions and the possible imposition of
adverse governmental laws or currency exchange restrictions.
The Trust invests in event-linked bonds. Event-linked bonds are floating
rate 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. The
trigger event's magnitude may be based on losses to a company or industry,
industry indexes or readings of scientific instruments, or may be based on
specified actual losses. If a trigger event, as defined within the terms of
an event-linked bond occurs, 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. In addition to the specified trigger events, event-linked bonds
may expose the Trust to other risks, including but not limited to issuer
(credit) default, adverse regulatory or jurisdictional interpretations and
adverse tax consequences.
In addition to event-linked bonds, the Trust also may invest in other
insurance-linked securities ("ILS"). The Trust's investments in ILS may
include special purpose vehicles ("SPVs") or similar instruments structured
to comprise a portion of a reinsurer's catastrophe-oriented business, known
Pioneer High Income Trust | Semiannual Report | 9/30/15 49
as quota share instruments (sometimes referred to as reinsurance sidecars),
or to provide reinsurance relating to specific risks to insurance or
reinsurance companies through a collateralized instrument, known as
collateralized reinsurance. Structured reinsurance investments which also
may include industry loss warranties ("ILWs"), are subject to the same
risks as event-linked bonds. In addition, because quota share instruments
represent an interest in a basket of underlying reinsurance contracts, the
Trust has limited transparency into the individual underlying contracts and
therefore must rely upon the risk assessment and sound underwriting
practices of the issuer. Accordingly, it may be more difficult for PIM to
fully evaluate the underlying risk profile of the Trust's investment in
quota share instruments and therefore place the Trust's assets at greater
risk of loss than if PIM had more complete information. These securities
may be difficult to purchase, sell or unwind and may be difficult to value.
G. Repurchase Agreements
Repurchase agreements are arrangements under which the Trust purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Trust at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Trust. The securities purchased serve
as the Trust's collateral for the obligation of the counterparty to
repurchase the securities. The value of the collateral, including accrued
interest, is required to be equal to or in excess of the repurchase price.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Trust's custodian or a subcustodian of the
Trust. The Trust's investment adviser, PIM is responsible for determining
that the value of the collateral remains at least equal to the repurchase
price. In the event of a default by the counterparty, the Trust is entitled
to sell the securities, but the Trust may not be able to sell them for the
price at which they were purchased, thus causing a loss to the Trust.
Additionally, if the counterparty becomes insolvent, there is some risk
that the Trust will not have a right to the securities, or the immediate
right to sell the securities.
H. Automatic Dividend Reinvestment Plan
All common shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional common
shares of the Trust in lieu of cash. Shareowners may elect not to
participate in the Plan. Shareowners not participating in the Plan receive
all dividends and capital gain distributions in cash. Participation in the
Plan is completely voluntary and may be terminated or resumed at any time
without penalty by notifying American Stock Transfer & Trust Company, the
agent for shareowners in
50 Pioneer High Income Trust | Semiannual Report | 9/30/15
administering the Plan (the Plan Agent), in writing prior to any dividend
record date; otherwise such termination or resumption will be effective
with respect to any subsequently declared dividend or other distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate in
the Plan on the shareowner's behalf. If the firm or nominee does not offer
the Plan, dividends will be paid in cash to the shareowner of record. A
firm or nominee may reinvest a shareowner's cash dividends in common shares
of the Trust on terms that differ from the terms of the Plan.
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional
unissued but authorized common shares from the Trust or (ii) by purchase of
outstanding common shares on the New York Stock Exchange or elsewhere. If,
on the payment date for any dividend, the net asset value per common share
is equal to or less than the market price per share plus estimated
brokerage trading fees (market premium), the Plan Agent will invest the
dividend amount in newly issued common shares. The number of newly issued
common shares to be credited to each account will be determined by dividing
the dollar amount of the dividend by the net asset value per common share
on the date the shares are issued, provided that the maximum discount from
the then current market price per share on the date of issuance does not
exceed 5%. If, on the payment date for any dividend, the net asset value
per common share is greater than the market value (market discount), the
Plan Agent will invest the dividend amount in common shares acquired in
open-market purchases. There are no brokerage charges with respect to newly
issued common shares. However, each participant will pay a pro rata share
of brokerage trading fees incurred with respect to the Plan Agent's
open-market purchases. Participating in the Plan does not relieve
shareowners from any federal, state or local taxes which may be due on
dividends paid in any taxable year. Shareowners holding Plan shares in a
brokerage account may be able to transfer the shares to another broker and
continue to participate in the Plan.
I. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre - defined credit event. The Trust may
buy or sell credit default swap contracts to seek to increase the Trust's
income, or to attempt to hedge the risk of default on portfolio securities.
As a seller of protection, the Trust would be required to pay the notional
(or other agreed-upon) value of the referenced debt obligation to the
counterparty in the event of a default by a U.S. or foreign corporate
issuer of a debt obligation, which would likely result in a loss to the
Trust. In return, the Trust would receive
Pioneer High Income Trust | Semiannual Report | 9/30/15 51
from the counterparty a periodic stream of payments during the term of the
contract provided that no event of default occurred. The maximum exposure
of loss to the seller would be the notional value of the credit default
swaps outstanding. If no default occurs, the Trust would keep the stream of
payments and would have no payment obligation. The Trust may also buy
credit default swap contracts in order to hedge against the risk of default
of debt securities, in which case the Trust would function as the
counterparty referenced above.
When the Trust enters into a credit default swap contract, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the right to receive a contingent payment. An upfront payment
made by the Trust, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Trust are recorded as realized gains or losses in the Statement of
Operations.
Credit default swap contracts are marked- to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made as a result of a credit
event or upon termination of the contract are recognized, net of the
appropriate amount of the upfront payment, as realized gains or losses in
the Statement of Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Trust had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the
Trust is a protection buyer and no credit event occurs, it will lose its
investment. If the Trust is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Trust, together
with the periodic payments received, may be less than the amount the Trust
pays to the protection buyer, resulting in a loss to the Trust.
Open credit default swap contracts at September 30, 2015 are listed in the
Schedule of Investments.
The average market value of swap contracts open during the six months ended
September 30, 2015 was $213,027.
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 0.60% of the
Trust's average daily managed assets. "Managed assets" means (a) the total
assets of the Trust, including any form of investment leverage, minus (b)
52 Pioneer High Income Trust | Semiannual Report | 9/30/15
all accrued liabilities incurred in the normal course of operations, which shall
not include any liabilities or obligations attributable to investment leverage
obtained through (i) indebtedness of any type (including, without limitation,
borrowing through a credit facility or the issuance of debt securities), (ii)
the issuance of preferred stock or other similar preference securities, and/or
(iii) any other means. For the six months ended September 30, 2015, the net
management fee was 0.60% (annualized) of the Trust's average daily managed
assets, which was equivalent to 0.87% (annualized) of the Trust's average daily
net assets.
In addition, under PIM's management and administration agreements, certain other
services and costs are paid by PIM and reimbursed by the Trust. At September 30,
2015, $203,653 was payable to PIM related to management costs, administrative
costs and certain other services is included in "Due to affiliates" and
"Administration fee payable" on the Statement of Assets and Liabilities.
3. Transfer Agent
Prior to November 2, 2015, 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
(AST), provided substantially all transfer agent and shareowner services related
to the Trust's common shares at negotiated rates. In addition, the Trust
reimbursed PIMSS for out-of-pocket expenses incurred by PIMSS related to
shareowner communications activities such as proxy and statement mailings and
outgoing calls. Effective November 2, 2015, AST serves as the transfer agent
with respect to the Trust's common shares. The Trust pays AST an annual fee, as
is agreed to from time to time by the Trust and AST, for providing such
services.
4. Expense Offset Arrangement
The Trust has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Trust's custodian expenses. For the six months ended September 30, 2015, the
Trust expenses were not reduced under such arrangement.
5. Forward Foreign Currency Contracts
At September 30, 2015, the Trust had entered into various forward foreign
currency contracts that obligate the Trust to deliver or take delivery of
currencies at specified future maturity dates. Alternatively, prior to the
settlement date of a forward foreign currency contract, the Trust may close out
such contract by entering into an offsetting contract. The average value of
contracts open during the six months ended September 30, 2015 was $8,027,986.
Pioneer High Income Trust | Semiannual Report | 9/30/15 53
Open foreign currency contracts at September 30, 2015, were as follows:
----------------------------------------------------------------------------------------------------
In Net
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
----------------------------------------------------------------------------------------------------
British Pound 1,690,265 USD 2,661,975 Societe General 10/02/15 $ 106,632
Sterling
(GBP)
USD 741,365 Euro (EUR) 665,000 Societe General 4/27/16 4,317
USD 2,294,790 British 1,518,180 JP Morgan Chase Bank 10/02/15 395
Pound
Sterling
(GBP)
----------------------------------------------------------------------------------------------------
Total $ 111,344
====================================================================================================
----------------------------------------------------------------------------------------------------
In Net
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
----------------------------------------------------------------------------------------------------
USD 1,246,945 Euro (EUR) 1,100,000 Societe General 4/27/16 $ (13,486)
Euro (EUR) 4,468,698 USD 4,863,179 Societe General 4/27/16 (147,689)
British Pound 1,518,180 USD 2,294,459 JP Morgan Chase Bank 11/02/15 (379)
Sterling
(GBP)
----------------------------------------------------------------------------------------------------
Total $(161,554)
====================================================================================================
6. Assets and Liabilities Offsetting
The Trust has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Trust and a counterparty that governs the
trading of certain OTC derivatives and typically contains, among other things,
close-out and set-off provisions which apply upon the occurrence of event of a
default and/or termination event as defined under the relevant ISDA Master
Agreement. The ISDA Master Agreement may also give a party the right to
terminate all transactions traded under such agreement if, among other things,
there is deterioration in the credit quality of the other party. Upon an event
of default or a termination of the ISDA Master Agreement, the non-defaulting
party has the right to close out all transactions under such agreement and to
net amounts owed under each transaction to determine one net amount payable by
one party to the other. The right to close out and net payments across all
transactions under the ISDA Master Agreement could result in a reduction of the
Trust's credit risk to its counterparty equal to any amounts payable by the
Trust under the applicable transactions, if any. However, the Trust's right to
setoff may be restricted or prohibited by the bankruptcy or insolvency laws of
the particular jurisdiction to which a specific ISDA counterparty is subject.
54 Pioneer High Income Trust | Semiannual Report | 9/30/15
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collateral pledged for the benefit of the Trust and/or
counterparty is held in segregated accounts by the Trust's custodian and cannot
be sold, re-pledged, assigned or otherwise used while pledged. Cash that has
been segregated to cover the Trust's collateral obligations, if any, will be
reported separately in the Statement of Assets and Liabilities as "Futures
collateral", "Swap collateral " or "Deposit with broker." Securities pledged by
the Trust as collateral, if any, are identified as such in the Schedule of
Investments.
Financial instruments subject to an enforceable master netting agreement such as
an ISDA Master Agreement have been offset on the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Trust
as of September 30, 2015.
----------------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
----------------------------------------------------------------------------------------------------
JP Morgan
Chase Bank $263,568 $ (379) $ -- $(200,000) $63,189
Societe General 110,949 (110,949) -- -- --
----------------------------------------------------------------------------------------------------
Total $374,517 $(111,328) $ -- $(200,000) $63,189
====================================================================================================
----------------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available for Collateral Collateral of Derivative
Counterparty Agreement Offset Pledged (a) Pledged (a) Liabilities (c)
----------------------------------------------------------------------------------------------------
JP Morgan Chase $ 379 $ (379) $ -- $ -- $ --
Bank
Societe General 161,175 (110,949) -- -- 50,226
----------------------------------------------------------------------------------------------------
Total $161,554 $(111,328) $ -- $ -- $50,226
====================================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
Pioneer High Income Trust | Semiannual Report | 9/30/15 55
7. Bridge Loan Commitments
Bridge loans are designed to provide temporary or "bridge" financing to a
borrower pending the sale of identified assets or the arrangement of longer-
term loans or the issuance and sale of debt obligations.
As of September 30, 2015, the Trust had one bridge loan commitment of
$4,990,000, which could be extended at the option of the borrower, pursuant to
the following loan agreement:
--------------------------------------------------------------------------------
Unrealized
Appreciation
Borrower Par Cost Value (Depreciation)
--------------------------------------------------------------------------------
Charter Communications $4,990,000 $4,990,000 $4,990,000 $ --
================================================================================
8. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the six months ended
September 30, 2015 and the year ended March 31, 2015 were as follows:
--------------------------------------------------------------------------------
9/30/15
(unaudited) 3/31/15
--------------------------------------------------------------------------------
Shares outstanding at beginning of period 28,950,654 28,679,504
Reinvestment of distributions 51,473 271,150
--------------------------------------------------------------------------------
Shares outstanding at end of period 29,002,127 28,950,654
================================================================================
9. Additional Disclosures about Derivative Instruments and Hedging Activities:
The Trust's use of derivatives subjects it to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Trust.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
56 Pioneer High Income Trust | Semiannual Report | 9/30/15
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at September
30, 2015 was as follows:
--------------------------------------------------------------------------------
Statement of Assets and Liabilities
Interest Credit Foreign Equity Commodity
Caption Rate Risk Risk Exchange Risk Risk Risk
--------------------------------------------------------------------------------
Assets:
Net unrealized
appreciation on
swap contracts $-- $263,173 $ -- $-- $--
Net unrealized
appreciation on
forward foreign
currency contracts -- -- 111,344 -- --
--------------------------------------------------------------------------------
Total Value $-- $263,173 $111,344 $-- $--
================================================================================
Liabilities:
Net unrealized
depreciation on
forward foreign
currency contracts $-- $-- $161,554 $-- $--
--------------------------------------------------------------------------------
Total Value $-- $-- $161,554 $-- $--
================================================================================
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at September 30, 2015 was as follows:
--------------------------------------------------------------------------------
Statement of Operations
Interest Credit Foreign Equity Commodity
Caption Rate Risk Risk Exchange Risk Risk Risk
--------------------------------------------------------------------------------
Net realized
gain (loss):
Swap contracts $-- $ 51,389 $ -- $-- $--
Forward foreign
currency contracts -- -- 1,370,460 -- --
--------------------------------------------------------------------------------
Total Value $-- $ 51,389 $ 1,370,460 $-- $--
================================================================================
Change in net
unrealized
appreciation
(depreciation) on:
Net unrealized
depreciation on
swap contracts $-- $(30,939) $ -- $-- $--
Net unrealized
depreciation on
forward foreign
currency contracts -- -- (1,615,192) -- --
--------------------------------------------------------------------------------
Total Value $-- $(30,939) $(1,615,192) $-- $--
================================================================================
Pioneer High Income Trust | Semiannual Report | 9/30/15 57
10. Margin Loan Financing
The Trust has entered into a margin loan financing agreement with Credit Suisse.
The margin loan is offered at a daily rate equal to the U.S. three-month LIBOR
rate plus 0.70%. There is no fixed borrowing limit.
At September 30, 2015, the Trust had a borrowing outstanding under the margin
agreement totaling $151,000,000. The interest rate charged at September 30, 2015
was 0.95%. During the six months ended September 30, 2015, the average daily
balance was $151,000,000 at an average interest rate of 0.95%. With respect to
the margin agreement, interest expense of $716,807 is included in the Statement
of Operations.
The Trust is required to fully collateralize its outstanding loan balance as
determined by Credit Suisse. Pledged assets are held in a segregated account and
are denoted in the Schedule of Investments.
The Trust is required to maintain 300% asset coverage with respect to amounts
outstanding under the margin loan financing agreement. Asset coverage is
calculated by subtracting the Trust's total liabilities not including any bank
loans and senior securities, from the Trust's total assets and dividing such
amount by the principal amount of the borrowing outstanding.
11. Subsequent Events
A monthly dividend was declared on October 2, 2015 from undistributed and
accumulated net investment income of $0.1150 per common share payable October
30, 2015, to common shareowners of record on October 16, 2015.
58 Pioneer High Income Trust | Semiannual Report | 9/30/15
ADDITIONAL INFORMATION
During the period, there have been no material changes in the Trust's investment
objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust which has not been
approved by the shareowners. During the period, there have been no changes in
the principal risk factors associated with investment in the Trust. There were
no changes in the persons who are primarily responsible for the day-to-day
management of the Trust's portfolio.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its common
shares in the open market.
Pioneer Investment Management, Inc. (the "Adviser"), each fund's investment
adviser, is currently an indirect, wholly owned subsidiary of UniCredit S.p.A.
("UniCredit"). On November 11, 2015, UniCredit announced that it signed a
binding master agreement with Banco Santander and affiliates of Warburg Pincus
and General Atlantic (the "Private Equity Firms") with respect to Pioneer
Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as described in the UniCredit announcement, will establish a
holding company, with the name Pioneer Investments, to be owned by UniCredit
(50%) and the Private Equity Firms (50% between them). The holding company will
control Pioneer's U.S. operations, including the Adviser. The holding company
also will own 66.7% of Pioneer's and SAM's combined operations outside the U.S.,
while Banco Santander will own directly the remaining 33.3% stake. The closing
of the Transaction is expected to happen in 2016, subject to certain regulatory
and other approvals, and other conditions.
Under the Investment Company Act of 1940, completion of the Transaction will
cause each fund's current investment advisory agreement with the Adviser to
terminate. Accordingly, each fund's Board of Trustees will be asked to approve a
new investment advisory agreement. If approved by the Board, each fund's new
investment advisory agreement will be submitted to the shareholders of the fund
for their approval.
Pioneer High Income Trust | Semiannual Report | 9/30/15 59
Results of Shareholder Meeting (unaudited)
At the annual meeting of shareowners held on September 22, 2015, shareowners of
Pioneer High Income Trust were asked to consider the proposals described below.
A report of the total votes cast by the Trust's shareholders follows:
Proposal 1 -- To elect three Class I Trustees and two Class II Trustees.
--------------------------------------------------------------------------------
Nominee For Withheld
--------------------------------------------------------------------------------
Class I
Thomas J. Perna 24,159,102 1,558,076
Marguerite A. Piret 24,038,228 1,678,950
Fred J. Ricciardi 24,079,554 1,637,024
Class II
Lisa M. Jones 23,915,092 1,802,086
Lorraine H. Monchak 24,018,475 1,698,703
60 Pioneer High Income Trust | Semiannual Report | 9/30/15
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer High Income Trust (the Trust) pursuant to an investment advisory
agreement between PIM and the Trust. In order for PIM to remain the investment
adviser of the Trust, the Trustees of the Trust must determine annually whether
to renew the investment advisory agreement for the Trust.
The contract review process began in January 2015 as the Trustees of the Trust
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2015 and July
2015. Supplemental contract review materials were provided to the Trustees in
September 2015. In addition, the Trustees reviewed and discussed the Trust's
performance at regularly scheduled meetings throughout the year and took into
account other information related to the Trust provided to the Trustees at
regularly scheduled meetings in connection with the review of the Trust's
investment advisory agreement.
In March 2015, the Trustees, among other things, discussed the memorandum
provided by Trust counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Trust's portfolio manager in the Trust. In July 2015,
the Trustees, among other things, reviewed the Trust's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Trust and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Trust and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in September
2015.
At a meeting held on September 15, 2015, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Trust,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In approving the
renewal of the investment advisory agreement, the Trustees considered various
factors that they determined were relevant, including the factors described
below. The Trustees did not identify any single factor as the controlling factor
in determining to approve the renewal of the agreement.
Pioneer High Income Trust | Semiannual Report | 9/30/15 61
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Trust, taking into account the investment objective
and strategy of the Trust. The Trustees also reviewed PIM's investment approach
for the Trust and its research process. The Trustees considered the resources of
PIM and the personnel of PIM who provide investment management services to the
Trust. They also reviewed the amount of non-Trust assets managed by the
portfolio manager of the Trust. The Trustees considered the non-investment
resources and personnel of PIM involved in PIM's services to the Trust,
including PIM's compliance and legal resources and personnel. The Trustees noted
the substantial attention and high priority given by PIM's senior management to
the Pioneer fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Trust's service providers and provides the Trust with personnel (including Trust
officers) and other resources that are necessary for the Trust's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Trust's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Trust were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Trust
In considering the Trust's performance, the Trustees regularly review and
discuss throughout the year data prepared by PIM and information comparing the
Trust's performance with the performance of its peer group of funds as
classified by each of Morningstar, Inc. (Morningstar) and Lipper, and with the
performance of the Trust's benchmark index. They also discuss the Trust's
performance with PIM on a regular basis. The Trustees' regular reviews and
discussions were factored into the Trustees' deliberations concerning the
renewal of the advisory agreement. The Trustees indicated that the Trust's
performance, when considered in connection with the various other factors, was
consistent with the renewal of the investment advisory agreement.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Trust
in comparison to the management fees and the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund
62 Pioneer High Income Trust | Semiannual Report | 9/30/15
Research and Consulting, LLC (Strategic Insight), an independent third party. In
all quintile rankings referred to below, first quintile is most favorable to the
Trust's shareowners.
The Trustees considered that the Trust's management fee (based on managed
assets) for the most recent fiscal year was in the first quintile relative to
the management fees paid by other funds in its Strategic Insight peer group for
the comparable period. The Trustees considered that the expense ratio (based on
managed assets) of the Trust's common shares for the most recent fiscal year was
in the first quintile relative its Strategic Insight peer group for the
comparable period.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Trust and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Trust and non-Trust services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Trust and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Trust and
considered that, under the investment advisory agreement with the Trust, PIM
performs additional services for the Trust that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Trust's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Trust is subject. The Trustees
also considered the different entrepreneurial risks associated with PIM's
management of the Trust and Pioneer's management of the other client accounts.
The Trustees concluded that the management fee payable by the Trust to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Trust.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Trust,
including the methodology used by PIM in allocating certain of its costs to the
management of the Trust. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Trust. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with
Pioneer High Income Trust | Semiannual Report | 9/30/15 63
respect to the Trust in comparison to the limited industry data available and
noted that the profitability of any adviser was affected by numerous factors,
including its organizational structure and method for allocating expenses. The
Trustees concluded that PIM's profitability with respect to the management of
the Trust was not unreasonable.
Economies of Scale
The Trustees considered the extent to which PIM may realize economies of scale
or other efficiencies in managing and supporting the Trust. Since the Trust is a
closed-end fund that has not raised additional capital, the Trustees concluded
that economies of scale were not a relevant consideration in the renewal of the
investment advisory agreement.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Trust. The Trustees considered the character and amount of fees paid by the
Trust, other than under the investment advisory agreement, for services provided
by PIM and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Trust
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Trust, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Trust.
64 Pioneer High Income Trust | Semiannual Report | 9/30/15
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman Lisa M. Jones, President and Chief
David R. Bock Executive Officer
Benjamin M. Friedman Mark E. Bradley, Treasurer and
Margaret B.W. Graham Chief Financial Officer
Lisa M. Jones Christopher J. Kelley, Secretary and
Lorraine H. Monchak Chief Legal Officer
Marguerite A. Piret
Fred J. Ricciardi
Kenneth J. Taubes
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Transfer Agent
American Stock Transfer & Trust Company
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Pioneer High Income Trust | Semiannual Report | 9/30/15 65
This page for your notes.
66 Pioneer High Income Trust | Semiannual Report | 9/30/15
This page for your notes.
Pioneer High Income Trust | Semiannual Report | 9/30/15 67
This page for your notes.
68 Pioneer High Income Trust | Semiannual Report | 9/30/15
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15(th) Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
web site us.pioneerinvestments.com.
The Trust files a complete schedule 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 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.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2015 Pioneer Investments 19432-09-1115
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 12(a)(1), 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 (see attachment);
(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 accountants 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 registrants accountant
for services rendered to the registrant, and rendered to the registrants
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 registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants 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.
N/A
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 registrant's 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 of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
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.
N/A
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 registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
N/A
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 registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
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 registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
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 registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R 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 and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
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.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) 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.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
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 High Income Trust
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date November 30, 2015
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/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date November 30, 2015
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date November 30, 2015
* Print the name and title of each signing officer under his or her signature.