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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, 2016 through September 30, 2016
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
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Semiannual Report | September 30, 2016
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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 11
Prices and Distributions 12
Performance Update 13
Schedule of Investments 14
Financial Statements 41
Notes to Financial Statements 47
Approval of Investment Advisory Agreement 64
Trustees, Officers and Service Providers 68
Pioneer High Income Trust | Semiannual Report | 9/30/16 1
President's Letter
Dear Shareowner,
While investors were greeted with a challenging market environment for the first
several weeks of the new year, the U.S. market generated modest single-digit
returns for both stocks and bonds through September 30th (the Bloomberg Barclays
Aggregate Bond Index was up by 5.8% through 9/30/16, and the Standard & Poor's
500 Index was up by 7.8%). Yet, it is becoming increasingly clear that the
investment landscape is undergoing significant change. For the past eight years,
global central banks have been the dominant force in the markets by maintaining
short-term interest rates at close to zero in an effort to stimulate economic
growth. With little room to lower rates further, however, central banks may be
losing their effectiveness. Many economies around the world are experiencing
slow growth as they face a variety of challenges, including the shifting
geopolitics driving "Brexit" - the United Kingdom's pending exit from the
European Union - as well as related movements in Europe, limited productivity
gains, aging populations, and transitioning economic models in China and other
emerging markets. In the United States, gross domestic product grew at a rate of
approximately 1.2% in the first half of 2016, although there are signs of
stronger growth ahead, driven primarily by U.S. consumers.
Investors currently face a difficult environment. Government bond yields outside
the U.S. are near zero and offer minimal opportunity to produce income. The
central bank-driven bull market in riskier assets has pushed up valuations
towards historic highs in the equity and investment-grade and high-yield
corporate bond markets. Central banks have pledged to move gradually to
normalize interest-rate policies as the global economy recovers, but it may take
many years for this historic credit cycle to unwind. Politics may also influence
markets or investor sentiment given the current global political landscape, with
the U.S. elections in November, continued challenges with Brexit, and the
December 2016 referendum on the Italian political system. These factors may make
it even more challenging for investors to achieve returns similar to those
experienced during periods of perceived market stability or economic growth.
Against this backdrop, investors are likely to face challenges when it comes to
finding opportunities for both income and capital appreciation, and while much
has been made of passive investing, we believe all investment decisions are
active choices.
Throughout Pioneer's history, we have believed in the importance of active
management. During challenging market conditions, we view the value of active
management as even more compelling. Our experienced and tenured investment teams
focus on identifying value across global markets using
2 Pioneer High Income Trust | Semiannual Report | 9/30/16
proprietary research, careful risk management, and a long-term perspective.
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.
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 the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
September 30, 2016
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 | 9/30/16 3
Portfolio Management Discussion | 9/30/16
Higher-yielding, lower-quality bonds staged a robust rally during the six-month
period ended September 30, 2016, maintaining the price recovery that had begun
in February 2016. 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,
2016?
A Pioneer High Income Trust returned 16.73% at net asset value and 10.20% at
market price during the six-month period ended September 30, 2016. During
the same six-month period, the Trust's benchmark, the Bank of America
Merrill Lynch (BofA ML) U.S. High Yield Index (the BofA ML Index), returned
11.69% 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 32 closed end funds in Lipper's High Yield Closed End Funds category
(which may or may not be leveraged) was 14.87%.
The shares of the Trust were selling at a 1.2% premium to net asset value
at the end of the six-month period on September 30, 2016.
On September 30, 2016, the standardized 30-day SEC yield of the Trust's
shares was 7.90%*.
Q How would you describe the investment environment for high-yield debt
during the six-month period ended September 30, 2016?
A During the six-month period, high-yield corporate debt sustained a robust
rally that began in early February 2016. After posting poor returns for
most of 2015, high-yield securities moved sharply higher as oil and other
commodity prices finally bottomed and started recovering. The market for
credit-linked securities also received support when the U.S. Federal
Reserve System (the Fed) began sending signals that it probably would raise
short-term interest rates gradually in 2016, rather than the four times
that had been suggested at the beginning of the calendar year in the wake
of its
* 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 | 9/30/16
December 2015 rate hike. The climb in high-yield bond prices was
interrupted, but just briefly, by the unexpected news in late June that the
British electorate had voted in favor of exiting the European Union (known
as "Brexit"). While the initial market reaction to the Brexit vote resulted
in a quick two-day sell-off, high-yield bonds and other asset classes soon
recovered and had reversed those losses by the end of the second calendar
quarter (June 30).
The price of oil bottomed at $26.21 per barrel in February and climbed to
$48.24 by period end. Many observers interpreted the steady increase of oil
prices as evidence that production and demand were converging and that the
global economy could be strengthening, setting the stage for a pickup in
oil and gas production.
During the 2015 downturn in the high-yield market, energy industry
securities had been among the worst-performing sectors in the asset class,
as it appeared many companies would not survive the dramatic drop in oil
prices and would eventually need to restructure. That scenario shifted
considerably in February 2016, however, as oil prices bottomed and began
to rebound. During the six-month period, based on improving prospects, the
energy sector wound up being a leading performer within high yield as
stronger companies were able to stabilize their finances and bond prices
improved. While defaults in the sector did accelerate during the period,
the market had actually priced-in a higher default rate based on the
belief that many more companies would not survive and that the recovery in
bond prices would be minimal. During the period, energy industry bonds
generated an average total return of better than 27%, more than doubling
the 11.69% return of the benchmark BofA ML Index. In addition, metals &
mining industry debt, which had underperformed during the market's
decline, also strongly outpaced the high-yield benchmark during the
six-month period as the same dynamic drove market performance. Bonds
issued by companies in other high-yield sectors such as
cable/telecommunication services and the consumer groups - which performed
more consistently than energy and metals & mining during the market
downturn in 2015 - generated returns more in line with the overall
high-yield asset class during the six-month period ended September 30,
2016.
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, 2016?
A The Trust performed strongly versus the BofA ML Index during the period.
The use of leverage, or borrowed funds, was the primary reason for the
wide difference in the performance of the Trust relative to the benchmark.
The
Pioneer High Income Trust | Semiannual Report | 9/30/16 5
use of leverage increases the Trust's risk and has the effect of amplifying
the size of market swings on the portfolio. Just as the use of leverage had
exaggerated the Trust's negative benchmark-relative results during the 2015
market downturn, when high-yield bond prices were in decline, the leverage
enhanced the Trust's gains during the six-month period as high-yield bond
prices appreciated.
Security selection, in general, also contributed positively to the Trust's
benchmark-relative performance during the period, even without factoring
in the effects of leverage. With regard to security selection, holdings in
the metals & mining, consumer, and utilities sectors aided the Trust's
benchmark-relative returns.
In the outperforming energy sector, however, the Trust saw mixed results
during the period. While several individual portfolio holdings of
energy-related issues performed quite well and benefited the Trust's
performance, overall security selection in the energy sector had a
negative effect on benchmark-relative results. The main reason for the
underperformance was the somewhat higher quality of the energy holdings in
the Trust's portfolio compared with the BofA ML Index -- a byproduct of
our decision to reduce the Trust's energy exposure during the previous
fiscal period ended March 31, 2016. Higher-quality energy bonds trailed
the performance of lower-quality bonds during the six-month period, and so
the Trust's benchmark-relative returns in the sector lagged. Sector
allocation results within energy also mildly detracted from the Trust's
performance relative to the BofA ML Index. The portfolio was slightly
underweight to energy during the period, and was therefore unable to take
full advantage of the sector's very strong performance.
The Trust's underweight in technology bonds also detracted from
benchmark-relative returns during the period. The portfolio was roughly 5%
underweight in technology versus the BofA ML Index, a weighting consistent
with our longer-term observation that technology bonds tend not to have as
extensive asset coverage for the debt amounts when compared to other
industries' averages. Over the full six months, lower-rated technology debt
performed well, and so the underweight hurt the Trust's benchmark-relative
results.
Interest rates declined over the six-month period, with the yield on the
10-year Treasury falling from 1.77% to 1.60%. Due to this decline, the
Trust's short-duration position relative to the BofA ML Index detracted
from benchmark-relative results as longer-duration portfolios outperformed.
(Duration is a measure of the sensitivity of the price, or the value of
principal, of a fixed-income investment to a change in interest rates,
expressed as a number of years.) We had kept the duration of the
6 Pioneer High Income Trust | Semiannual Report | 9/30/16
Trust's portfolio short compared with the benchmark because we were
concerned that the Fed might start raising short-term interest rates. At
the end of the period, the average effective duration of the Trust's
portfolio was 3.18 years, while the BofA ML Index's duration was 4.10
years.
Q Which individual securities had the greatest effect on the Trust's perform-
ance, either positively or negatively, during the six-month period ended
September 30, 2016?
A As noted earlier, while overall security selection results in energy
detracted from the Trust's benchmark-relative returns during the period,
several of the best individual performers in the portfolio were energy
industry bonds, led by the debt of pipeline company Williams Companies,
which we purchased after the company received a credit-rating downgrade.
Other energy industry bonds that benefited the Trust's benchmark-relative
performance during the period included securities of exploration-and-
production company Sanchez Energy, and oil and natural gas producer
Chesapeake Energy.
The Trust had very little exposure to the metals & mining industry at the
start of the period, but we added a holding in Freeport-McMoRan, a giant
copper mining company that also has oil and natural gas drilling
operations. The position performed well after our acquisition and aided the
Trust's benchmark-relative performance.
In other sectors, standout performers in the Trust's portfolio included the
debt of several consumer-related companies, including Outerwall, whose
businesses include vending machine companies such as Red Box (movie
rentals) and Coinstar (converting of change into paper currency or gift
cards); and Scientific Games, a manufacturer of gambling and other gaming
equipment and devices. Finally, the bonds of Terraform Power and Terraform
Global, two clean energy utilities, contributed to the Trust's benchmark-
relative results during the period. Both companies were spinoffs of the
bankrupt SunEdison, a producer of solar energy equipment.
Two positions that did fall in price during the period were equity
securities the Trust had received through bankruptcy actions: Tower
Finance, an insurance broker, and Mirabella Nickel, a miner. Both
companies reported disappointing results during the six-month period.
Q Did the Trust's distributions to shareholders change at all during the
six-month period ended September 30, 2016?
A Yes, we reduced the monthly distribution to shareholders in May, from
$0.095 per share to $0.085 per share. While the Trust's primary goal is to
provide income to shareholders, we do not pursue that goal at the expense
of taking undue risks with the Trust's principal. As below-investment-grade
Pioneer High Income Trust | Semiannual Report | 9/30/16 7
bond yields have fallen over the past several years, we found we could not
sufficiently replace portfolio holdings of higher-yielding securities that
either had reached maturity or been called away by issuers, without adding
significant risk. Accordingly, we decided not to get overly aggressive in
investing the Trust's assets in lower-rated bonds that we believed would
increase the risk of price losses.
Q Did the level of leverage in the Trust change during the six-month period
ended September 30, 2016?
A The Trust employs leverage through a credit agreement. (See Note 8 to the
Financial Statements).
At the end of the six-month period on September 30, 2016, 29.2% of the
Trust's total managed assets were financed by leverage (or borrowed funds),
compared with 31.5% of the Trust's total managed assets financed by
leverage at the start of the period on April 1, 2016. The total amount of
borrowed funds did not change during the six months. The decline in
leverage as a percentage of total managed assets was due to the increase in
the values of securities in which the Trust had invested.
Q Did the Trust use any derivative securities during the six-month period
ended September 30, 2016? If so, did the use of derivatives have a material
impact on the Trust's performance?
A Yes, we used two kinds of derivatives during the period, although neither
had a material effect on the Trust's performance. We invested in
credit default swaps as part of a strategy to increase the portfolio's
exposure to high-yield debt, including a swap for Goodyear Tire & Rubber.
We also had invested in some currency forward transactions to minimize the
impact of currency price fluctuations on the Trust's portfolio.
Q What is your investment outlook?
A We are optimistic about investment opportunities in the high-yield
universe, although we have become more cautious as high-yield bonds have
risen in price and spreads have tightened. (Credit spreads are commonly
defined as the differences in yield between Treasuries and other types of
fixed-income securities with similar maturities.)
We think the domestic economy should continue to expand in a range above 2%
annual gross domestic product (GDP) growth in the coming quarters. We see
gains in the job market and strength in consumer spending sustaining the
U.S. economic recovery, and while global growth trends appear weaker than
domestic trends, we do see signs of economic
8 Pioneer High Income Trust | Semiannual Report | 9/30/16
strengthening overseas, which should benefit companies that issue
high-yield debt. Likewise, as the U.S. dollar has stabilized, profits are
starting to grow again.
To be sure, though, there are reasons for caution. As defaults have risen
over the past year, many investors are worried about a large number of
corporations becoming over-leveraged, with burdensome debt obligations. We
do not think that is happening, as banks in general have not been overly
aggressive in granting loans, mainly due to increased regulation. We
suspect high-yield defaults may have peaked in the third quarter of 2016
(driven in large part by energy companies), and are likely to decline
during 2017. However, if the domestic economic expansion sputters and the
economy begins weakening, default concerns would return next year, for it
would be an indication that the corporate profit cycle may already have
peaked at the same time corporations have begun to feel greater wage
pressures than they have experienced in recent years. In the high-yield
bond market, spreads have tightened to levels below long-term averages,
signaling that the returns available in high yield may be less in the
medium term.
Political risks, too, have risen. These risks range from uncertainties
about the potential results of the fiercely contested U.S. presidential
election, the unknown effects of the Brexit vote in Great Britain, and the
outcomes of upcoming elections in several European countries. Other
political hot spots in the Middle East and Asia are also concerning. Such
risks have the potential to increase market volatility in the coming
months.
Finally, the Fed's stance on interest-rate hikes is another source of
concern, especially if it decides to get more aggressive in tightening
monetary policy next year. While rising Treasury rates could also put
pressure on high-yield bond prices, falling Treasury rates would signal
economic weakness, a scenario not positive for the high-yield market.
Given all those factors, we do not want to be aggressive in taking on
credit risk in the Trust's portfolio. We have sought to reduce overall
portfolio risk and have become more cautious in our security selection,
while maintaining a higher cash level to maintain flexibility when it comes
to making investment decisions. We believe the Trust's short-duration
stance may also help during a period of uncertainty.
Please refer to the Schedule of Investments on pages 14-40 for a full listing of
Trust securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Pioneer High Income Trust | Semiannual Report | 9/30/16 9
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.
The Trust employs leverage through a credit agreement. Leverage creates
significant risks, including the risk that the Trust's incremental income or
capital appreciation for investments purchased with the proceeds of leverage
will not be sufficient to cover the cost of leverage, which may adversely affect
the return for shareowners.
The Trust is required to meet certain regulatory and other asset coverage
requirements in connection with its use of leverage. In order to maintain
required asset coverage levels, the Trust may be required to reduce the amount
of leverage employed by the Trust, alter the composition of its investment
portfolio or take other actions at what might be inopportune times in the
market. Such actions could reduce the net earnings or returns to shareowners
over time, which is likely to result in a decrease in the market value of the
Trust's shares.
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.
10 Pioneer High Income Trust | Semiannual Report | 9/30/16
Portfolio Summary | 9/30/16
Portfolio Diversification*
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Corporate Bonds & Notes 78.6%
U.S. Government and Agency Obligations 4.7%
Senior Secured Floating Rate Loan Interests 4.3%
Treasury Bills 3.0%
Convertible Bonds & Notes 2.8%
Preferred Stocks 1.9%
Commercial Mortgage-Backed Securities 1.3%
Sovereign Debt Obligations 0.9%
Convertible Preferred Stocks 0.7%
Repurchase Agreement 0.5%
Commercial Paper 0.4%
Common Stocks 0.3%
Tax Exempt Obligations 0.3%
Collateralized Mortgage Obligation 0.2%
Municipal Collateralized Debt Obligation 0.1%
Asset Backed Securities 0.0%+
Warrant 0.0%+
* Includes investments in Insurance Linked Securities totaling 4.3% of total
investment portfolio.
+ Amount rounds to less than 0.1%.
10 Largest Holdings
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(As a percentage of long-term holdings)**
1. U.S. Treasury Notes, 0.418%, 10/31/17 1.85%
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2. Hanover Insurance Corp., 7.625%, 10/15/25 1.58
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3. Provident Funding Associates LP / PFG Finance Corp., 6.75%, 6/15/21 (144A) 1.20
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4. Hologic, Inc., 2.0%, 12/15/37 1.18
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5. Liberty Mutual Group, Inc., 10.75%, 6/15/58 (144A) 1.15
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6. Basell Finance Co., BV, 8.1%, 3/15/27 (144A) 1.08
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7. U.S. Treasury Notes, 0.522%, 1/31/18 1.02
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8. U.S. Treasury Notes, 0.44%, 4/30/18 1.02
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9. Windstream Corp., 7.5%, 6/1/22 1.00
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10. U.S. Treasury Notes, 0.327%, 7/31/17 0.96
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** 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.
Pioneer High Income Trust | Semiannual Report | 9/30/16 11
Prices and Distributions | 9/30/16
Market Value per Common Share
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9/30/16 3/31/16
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Market Value $10.51 $10.04
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Premium 1.2% 7.5%
--------------------------------------------------------------------------------
Net Asset Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9/30/16 3/31/16
--------------------------------------------------------------------------------
Net Asset Value $10.39 $9.34
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Distributions per Common Share:* 4/1/16 - 9/30/16
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
$0.52 $-- $--
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Yields
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9/30/16 3/31/16
--------------------------------------------------------------------------------
30-Day SEC Yield 7.90% 14.84%
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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.
12 Pioneer High Income Trust | Semiannual Report | 9/30/16
Performance Update | 9/30/16
Investment Returns
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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) U.S. High Yield Index.
Average Annual Total Returns
(As of September 30, 2016)
--------------------------------------------------------------------------------
Net BofA ML
Asset U.S. High
Value Market Yield
Period (NAV) Price Index
--------------------------------------------------------------------------------
10 Years 7.78% 6.86% 7.59%
5 Years 7.40 1.79 8.24
1 Year 11.59 14.85 12.82
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High BofA ML U.S. High
Income Trust Yield Index
9/06 $10,000 $10,000
9/07 $10,443 $10,773
9/08 $ 7,480 $ 9,519
9/09 $11,744 $11,647
9/10 $15,754 $13,804
9/11 $17,769 $13,986
9/12 $22,392 $16,635
9/13 $22,559 $17,815
9/14 $24,876 $19,103
9/15 $16,904 $18,422
9/16 $19,414 $20,783
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 U.S. High Yield Index is an unmanaged,
commonly accepted measure of the performance of high yield securities. Index
returns are calculated monthly, assume reinvestment of dividends and, unlike
Trust returns, do not reflect any fees, expenses or sales charges. The Index
does not employ leverage. It is not possible to invest directly in the Index.
Pioneer High Income Trust | Semiannual Report | 9/30/16 13
Schedule of Investments | 9/30/16 (unaudited)
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 0.0%+ of
Net Assets
BANKS -- 0.0%+
Thrifts & Mortgage Finance -- 0.0%+
83,529(a) Security National Mortgage Loan Trust, Series 2007-1A,
Class 1A3, 6.55%, 4/25/37 (144A) $ 83,460
---------------
Total Banks $ 83,460
------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.0%+
Airlines -- 0.0%+
464,658(b) Aviation Capital Group Trust, Series 2000-1A, Class A1,
1.504%, 11/15/25 (144A) $ 37,173
---------------
Total Transportation $ 37,173
------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $397,479) $ 120,633
------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATION --
0.2% of Net Assets
DIVERSIFIED FINANCIALS -- 0.2%
Thrifts & Mortgage Finance -- 0.2%
660,000(a) GMAT Trust, Series 2013-1A, Class M, 5.0%,
11/25/43 (144A) $ 628,225
---------------
Total Diversified Financials $ 628,225
------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATION
(Cost $636,070) $ 628,225
------------------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED
SECURITIES -- 1.8% of Net Assets
BANKS -- 1.3%
Thrifts & Mortgage Finance -- 1.3%
850,000(b) BAMLL Commercial Mortgage Securities Trust, Series
2014-INLD, Class F, 3.037%, 12/15/29 (144A) $ 767,317
400,000(a) Bear Stearns Commercial Mortgage Securities Trust,
Series 2007- PW16, Class B, 5.91%, 6/11/40 (144A) 369,000
1,000,000(a) Citigroup Commercial Mortgage Trust, Series
2014-GC23, Class E, 3.208%, 7/10/47 (144A) 620,404
472,325(b) EQTY Mezzanine Trust, Series 2014-INMZ, Class M,
5.267%, 5/8/31 (144A) 442,765
515,000(b) GS Mortgage Securities Trust, Series 2014-GSFL,
Class D, 4.424%, 7/15/31 (144A) 499,894
153,079 Homeowner Assistance Program Reverse Mortgage
Loan Trust, Series 2013-RM1, Class A, 4.0%,
5/26/53 (144A) 152,314
200,000 JP Morgan Chase Commercial Mortgage Securities
Trust, Series 2006-CB16, Class AJ, 5.623%, 5/12/45 200,674
650,000(a) JP Morgan Chase Commercial Mortgage Securities Trust,
Series 2007-LD12, Class AJ, 6.207%, 2/15/51 591,211
The accompanying notes are an integral part of these financial statements.
14 Pioneer High Income Trust | Semiannual Report | 9/30/16
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
250,000(a) Springleaf Mortgage Loan Trust, Series 2013-1A,
Class B1, 5.58%, 6/25/58 (144A) $ 251,667
46,646(a) Wachovia Bank Commercial Mortgage Trust, Series
2006-C24, Class AJ, 5.658%, 3/15/45 46,588
---------------
Total Banks $ 3,941,834
------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.5%
Thrifts & Mortgage Finance -- 0.5%
700,000(b) CFCRE Mortgage Trust, Series 2015-RUM, Class E,
5.124%, 7/15/30 (144A) $ 680,301
900,000(a) Commercial Mortgage Trust, Series 2007-C9, Class H,
6.007%, 12/10/49 (144A) 830,604
---------------
Total Diversified Financials $ 1,510,905
------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES
(Cost $5,603,752) $ 5,452,739
------------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 5.9% of Net Assets* (b)
AUTOMOBILES & COMPONENTS -- 0.1%
Automobile Manufacturers -- 0.1%
336,950 Inteva Products LLC, Term B Loan, 9.75%, 9/8/21 $ 338,845
---------------
Total Automobiles & Components $ 338,845
------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.6%
Aerospace & Defense -- 0.4%
1,000,000 DynCorp International, Inc., Term Loan B2, 7.75%,
7/7/20 $ 1,004,167
------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.1%
313,298 Filtration Group Corp., Second Lien Initial Term Loan,
8.25%, 11/22/21 $ 314,081
------------------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.1%
380,000 Blount International, Inc., Initial Term Loan,
0.0%, 4/12/23 $ 385,225
---------------
Total Capital Goods $ 1,703,473
------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.4%
Consumer Electronics -- 0.4%
1,125,000 Redbox Automated Retail LLC, First Lien Term B Loan,
0.0% 9/27/21 $ 1,102,500
---------------
Total Consumer Durables & Apparel $ 1,102,500
------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.2%
Education Services -- 0.2%
738,028 Cengage Learning Acquisitions, Inc., 2016
Refinancing Term Loan, 5.25%, 6/7/23 $ 738,688
---------------
Total Consumer Services $ 738,688
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 15
Schedule of Investments | 9/30/16 (unaudited)(continued)
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
ENERGY -- 0.9%
Coal & Consumable Fuels -- 0.0%+
587,500 PT Bumi Resources Tbk, Term Loan, 18.0%, 11/4/16 $ 136,594
------------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.3%
1,050,500 Jonah Energy LLC, Second Lien Initial Term Loan,
7.5%, 5/12/21 $ 955,955
------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.6%
500,000 Chesapeake Energy Corp., Term Loan Class A,
8.5%, 8/23/21 $ 525,250
1,255,878 EP Energy LLC (fka Everest Acquisition LLC), Term Loan,
9.75%, 6/30/21 1,235,994
---------------
$ 1,761,244
---------------
Total Energy $ 2,853,793
------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.3%
Health Care Technology -- 0.3%
1,313,405(c) Medical Card System, Inc., Term Loan, 1.5%, 5/31/19 $ 853,713
---------------
Total Health Care Equipment & Services $ 853,713
------------------------------------------------------------------------------------------------------------
INSURANCE -- 0.6%
Property & Casualty Insurance -- 0.6%
1,885,452 Confie Seguros Holding II Co., Second Lien Term Loan,
11.5%, 5/8/19 $ 1,872,882
---------------
Total Insurance $ 1,872,882
------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.5%
Diversified Metals & Mining -- 0.0%+
85,916 FMG Resources (August 2006) Pty, Ltd. (FMG America
Finance, Inc.), Term Loan, 3.75%, 6/30/19 $ 85,930
131,698(d)(e) PT Bakrie & Brothers Tbk, Facility Term Loan B,
8.15%, 11/25/14 19,754
---------------
$ 105,684
------------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.3%
1,000,000 Caraustar Industries, Inc., Incremental Term Loan,
8.0%, 5/1/19 $ 1,009,750
------------------------------------------------------------------------------------------------------------
Paper Products -- 0.2%
560,980 Ranpak Corp., Second Lien Initial Term Loan,
8.25%, 10/3/22 $ 535,736
---------------
Total Materials $ 1,651,170
------------------------------------------------------------------------------------------------------------
MEDIA -- 1.0%
Publishing -- 1.0%
178,295 Lee Enterprises, Inc., First Lien Term Loan,
7.25%, 3/31/19 $ 178,402
2,817,938 McGraw-Hill Global Education Holdings LLC, First Lien
Term B Loan, 5.0%, 5/4/22 2,836,254
---------------
Total Media $ 3,014,656
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Trust | Semiannual Report | 9/30/16
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.5%
Biotechnology -- 0.5%
1,539,559 Lantheus Medical Imaging, Inc., Term Loan,
7.0%, 6/30/22 $ 1,511,334
---------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 1,511,334
------------------------------------------------------------------------------------------------------------
RETAILING -- 0.6%
Automotive Retail -- 0.5%
1,432,179 CWGS Group LLC, Term Loan, 5.75%, 2/20/20 $ 1,436,207
------------------------------------------------------------------------------------------------------------
Computer & Electronics Retail -- 0.1%
74,093(c)(f) Targus Group International, Inc., Tranche A-2 Term Loan,
15.0% (15.0% PIK 0.0% cash), 12/31/19 $ 74,094
222,279(c)(f) Targus Group International, Inc., Tranche B Term Loan,
15.0% (15.0% PIK 0.0% cash), 12/31/19 222,279
---------------
$ 296,373
---------------
Total Retailing $ 1,732,580
------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.2%
Application Software -- 0.2%
500,000 STG-Fairway Acquisitions, Inc., First Lien Term Loan,
6.25%, 6/30/22 $ 493,125
---------------
Total Software & Services $ 493,125
------------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE
LOAN INTERESTS
(Cost $18,635,383) $ 17,866,759
------------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES -- 109.0% of
Net Assets
AUTOMOBILES & COMPONENTS -- 1.1%
Auto Parts & Equipment -- 1.0%
EUR 360,000(f) IHO Verwaltungs GmbH, 3.25% (4.0% PIK 0.0% cash),
9/15/23 (144A) $ 403,539
EUR 840,000(f) IHO Verwaltungs GmbH, 3.75% (4.5% PIK 0.0% cash),
9/15/26 (144A) 938,308
1,744,000(g) International Automotive Components Group SA,
9.125%, 6/1/18 (144A) 1,706,940
---------------
$ 3,048,787
------------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.1%
312,000 TI Group Automotive Systems LLC, 8.75%,
7/15/23 (144A) $ 339,307
---------------
Total Automobiles & Components $ 3,388,094
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 17
Schedule of Investments | 9/30/16 (unaudited)(continued)
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
BANKS -- 4.3%
Diversified Banks -- 2.3%
1,200,000(a) Access Bank Plc, 9.25%, 6/24/21 (144A) $ 1,044,000
200,000(a) Banco Nacional de Comercio Exterior SNC, 3.8%,
8/11/26 (144A) 194,190
1,650,000(a)(g)(h) Bank of America Corp., 6.25% 1,718,227
600,000(a)(g)(h) Bank of America Corp., 6.5% 649,875
1,000,000(a)(h) Credit Agricole SA, 7.875% (144A) 999,580
IDR 5,800,000,000 European Investment Bank, 7.2%, 7/9/19 (144A) 445,144
1,000,000(a)(h) Royal Bank of Scotland Group Plc, 8.625% 978,750
980,000(a)(h) Societe Generale SA, 7.375% (144A) 960,400
---------------
$ 6,990,166
------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 2.0%
1,325,000(g) Ocwen Financial Corp., 6.625%, 5/15/19 $ 1,175,937
4,825,000(g) Provident Funding Associates LP / PFG Finance Corp.,
6.75%, 6/15/21 (144A) 4,867,219
---------------
$ 6,043,156
---------------
Total Banks $ 13,033,322
------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 6.6%
Aerospace & Defense -- 2.3%
2,200,000 ADS Tactical, Inc., 11.0%, 4/1/18 (144A) $ 2,255,000
2,215,000(g) DigitalGlobe, Inc., 5.25%, 2/1/21 (144A) 2,198,387
2,770,764(f)(g) DynCorp International, Inc., 11.875% (1.5% PIK
10.375% cash), 11/30/20 2,050,365
525,000 Triumph Group, Inc., 5.25%, 6/1/22 494,813
---------------
$ 6,998,565
------------------------------------------------------------------------------------------------------------
Agricultural & Farm Machinery -- 0.6%
1,890,000(g) Titan International, Inc., 6.875%, 10/1/20 $ 1,781,325
------------------------------------------------------------------------------------------------------------
Building Products -- 0.1%
400,000 Griffon Corp., 5.25%, 3/1/22 $ 401,500
------------------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.0%+
1,500,000(d)(g) Abengoa Finance SAU, 8.875%, 11/1/17 (144A) $ 75,000
------------------------------------------------------------------------------------------------------------
Construction Machinery & Heavy Trucks -- 0.6%
235,000 Commercial Vehicle Group, Inc., 7.875%, 4/15/19 $ 234,412
1,085,000 Engility Corp., 8.875%, 9/1/24 (144A) 1,098,563
330,000(g) Meritor, Inc., 6.25%, 2/15/24 315,975
---------------
$ 1,648,950
------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.4%
1,070,000 JB Poindexter & Co., Inc., 9.0%, 4/1/22 (144A) $ 1,132,863
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Trust | Semiannual Report | 9/30/16
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
Industrial Machinery -- 1.5%
2,575,000(g) Apex Tool Group LLC, 7.0%, 2/1/21 (144A) $ 2,462,344
2,010,000(g) Cleaver-Brooks, Inc., 8.75%, 12/15/19 (144A) 2,105,475
---------------
$ 4,567,819
------------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 1.1%
2,580,000(g) H&E Equipment Services, Inc., 7.0%, 9/1/22 $ 2,721,900
580,000(g) TRAC Intermodal LLC / TRAC Intermodal Corp.,
11.0%, 8/15/19 611,900
---------------
$ 3,333,800
---------------
Total Capital Goods $ 19,939,822
------------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 2.1%
Commercial Printing -- 0.7%
1,295,000(g) Cenveo Corp., 6.0%, 8/1/19 (144A) $ 1,149,313
860,000 Mustang Merger Corp., 8.5%, 8/15/21 (144A) 914,825
---------------
$ 2,064,138
------------------------------------------------------------------------------------------------------------
Diversified Support Services -- 1.4%
660,000 Broadspectrum, Ltd., 8.375%, 5/15/20 (144A) $ 702,900
3,900,000(g) NANA Development Corp., 9.5%, 3/15/19 (144A) 3,471,000
---------------
$ 4,173,900
---------------
Total Commercial & Professional Services $ 6,238,038
------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 2.6%
Homebuilding -- 2.6%
285,000 Beazer Homes USA, Inc., 8.75%, 3/15/22 (144A) $ 300,675
750,000(g) Beazer Homes USA, Inc., 9.125%, 5/15/19 755,025
800,000(g) Brookfield Residential Properties, Inc., 6.375%,
5/15/25 (144A) 799,000
1,500,000 KB Home, 7.0%, 12/15/21 1,612,500
790,000(g) KB Home, 7.5%, 9/15/22 857,150
1,035,000 KB Home, 7.625%, 5/15/23 1,102,275
1,975,000(g) Rialto Holdings LLC / Rialto Corp., 7.0%,
12/1/18 (144A) 2,004,625
565,000(g) Taylor Morrison Communities, Inc. / Monarch
Communities, Inc., 5.625%, 3/1/24 (144A) 581,950
---------------
Total Consumer Durables & Apparel $ 8,013,200
------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 7.2%
Casinos & Gaming -- 2.8%
EUR 1,575,000 Intralot Capital Luxembourg SA, 6.75%, 9/15/21 (144A) $ 1,769,818
727,896(d)(f) Mashantucket Western Pequot Tribe, 6.5% (5.5%
PIK 1.0% cash), 7/1/36 3,639
1,700,000(g) MGM Resorts International, 6.0%, 3/15/23 1,844,500
1,225,000 Scientific Games International, Inc., 6.25%, 9/1/20 943,250
2,350,000(g) Scientific Games International, Inc., 6.625%, 5/15/21 1,786,000
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 19
Schedule of Investments | 9/30/16 (unaudited)(continued)
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
Casinos & Gaming -- (continued)
2,565,000(g) Scientific Games International, Inc., 10.0%, 12/1/22 $ 2,366,213
---------------
$ 8,713,420
------------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 1.1%
2,470,000 Viking Cruises, Ltd., 6.25%, 5/15/25 (144A) $ 2,309,450
1,000,000 Viking Cruises, Ltd., 8.5%, 10/15/22 (144A) 1,025,000
---------------
$ 3,334,450
------------------------------------------------------------------------------------------------------------
Restaurants -- 1.0%
1,045,000 Landry's, Inc., 6.75%, 10/15/24 (144A) $ 1,063,287
2,000,000(g) PF Chang's China Bistro, Inc., 10.25%, 6/30/20 (144A) 1,885,000
---------------
$ 2,948,287
------------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 2.3%
2,754,000(g) Constellis Holdings LLC / Constellis Finance Corp.,
9.75%, 5/15/20 (144A) $ 2,705,805
1,795,000(g) Monitronics International, Inc., 9.125%, 4/1/20 1,687,300
1,015,000(g) Prime Security Services Borrower LLC / Prime Finance,
Inc., 9.25%, 5/15/23 (144A) 1,106,350
1,400,000(g) StoneMor Partners LP / Cornerstone Family
Services WV, 7.875%, 6/1/21 1,414,000
---------------
$ 6,913,455
---------------
Total Consumer Services $ 21,909,612
------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.8%
Consumer Finance -- 1.2%
675,000(g) Ally Financial, Inc., 5.75%, 11/20/25 $ 706,219
1,030,000(g) Jefferies Finance LLC / JFIN Co-Issuer Corp., 7.375%,
4/1/20 (144A) 1,004,250
735,000(g) Navient Corp., 6.625%, 7/26/21 740,512
1,720,000(g) TMX Finance LLC / TitleMax Finance Corp., 8.5%,
9/15/18 (144A) 1,281,400
---------------
$ 3,732,381
------------------------------------------------------------------------------------------------------------
Diversified Capital Markets -- 0.2%
700,000(a)(g)(h) Credit Suisse Group AG, 7.5% (144A) $ 712,075
------------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.3%
1,239,000(a)(g)(h) Goldman Sachs Capital II, 4.0% $ 1,009,785
------------------------------------------------------------------------------------------------------------
Specialized Finance -- 1.1%
425,000(g) Nationstar Mortgage LLC / Nationstar Capital Corp.,
6.5%, 7/1/21 $ 416,500
2,845,000(g) Nationstar Mortgage LLC / Nationstar Capital Corp.,
6.5%, 6/1/22 2,731,200
---------------
$ 3,147,700
---------------
Total Diversified Financials $ 8,601,941
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Trust | Semiannual Report | 9/30/16
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
ENERGY -- 17.1%
Integrated Oil & Gas -- 0.3%
750,000 YPF SA, 8.875%, 12/19/18 (144A) $ 830,625
------------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.9%
730,000 Drill Rigs Holdings, Inc., 6.5%, 10/1/17 (144A) $ 222,650
280,000 Rowan Cos., Inc., 4.875%, 6/1/22 236,600
954,000 Rowan Cos., Inc., 5.4%, 12/1/42 634,410
131,000 Rowan Cos., Inc., 5.85%, 1/15/44 90,717
1,800,000(g) Shelf Drill Holdings, Ltd., 8.625%, 11/1/18 (144A) 1,431,000
---------------
$ 2,615,377
------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.3%
1,020,000(g) McDermott International, Inc., 8.0%, 5/1/21 (144A) $ 965,175
------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 7.3%
2,350,000 California Resources Corp., 8.0%, 12/15/22 (144A) $ 1,562,750
525,000 Carrizo Oil & Gas, Inc., 7.5%, 9/15/20 543,375
1,295,000(d)(g) EPL Oil & Gas, Inc., 8.25%, 2/15/18 178,062
860,000 Extraction Oil & Gas Holdings LLC / Extraction Finance
Corp., 7.875%, 7/15/21 (144A) 894,400
870,000 Great Western Petroleum LLC / Great Western Finance,
Inc., 9.0%, 9/30/21 (144A) 872,175
2,015,000(g) Gulfport Energy Corp., 7.75%, 11/1/20 2,093,081
2,035,000(g) Halcon Resources Corp., 12.0%, 2/15/22 (144A) 2,035,000
2,000,000(d)(g) Midstates Petroleum Co., Inc., 9.25%, 6/1/21 20,000
330,000 Murphy Oil Corp., 6.875%, 8/15/24 341,122
590,000(g) Parsley Energy LLC / Parsley Finance Corp., 7.5%,
2/15/22 (144A) 626,875
1,856,000 PetroQuest Energy, Inc., 10.0%, 2/15/21 (144A) 1,438,400
3,380,000(d) Quicksilver Resources, Inc., 7.125%, 11/30/16 338
1,800,000(g) Rice Energy, Inc., 6.25%, 5/1/22 1,858,500
2,935,000(g) Sanchez Energy Corp., 7.75%, 6/15/21 2,582,800
3,000,000(g) Seven Generations Energy, Ltd., 8.25%, 5/15/20 (144A) 3,191,250
625,000 Whiting Petroleum Corp., 5.0%, 3/15/19 604,688
2,015,000(g) Whiting Petroleum Corp., 5.75%, 3/15/21 1,884,025
950,000(g) WPX Energy, Inc., 7.5%, 8/1/20 1,004,625
335,000(g) WPX Energy, Inc., 8.25%, 8/1/23 360,125
---------------
$ 22,091,591
------------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 1.4%
3,859,000(g) Calumet Specialty Products Partners LP / Calumet
Finance Corp., 6.5%, 4/15/21 $ 3,154,733
750,000(g) Calumet Specialty Products Partners LP / Calumet
Finance Corp., 7.75%, 4/15/23 (144A) 600,000
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 21
Schedule of Investments | 9/30/16 (unaudited)(continued)
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- (continued)
549,474(b) EP PetroEcuador via Noble Sovereign Funding I, Ltd.,
6.487%, 9/24/19 $ 534,363
---------------
$ 4,289,096
------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 6.9%
1,218,000 Archrock Partners LP / Archrock Partners Finance
Corp., 6.0%, 4/1/21 $ 1,141,875
215,000 Archrock Partners LP / Archrock Partners Finance
Corp., 6.0%, 10/1/22 199,413
1,145,000 Blue Racer Midstream LLC / Blue Racer Finance Corp.,
6.125%, 11/15/22 (144A) 1,119,237
250,000 Cheniere Corpus Christi Holdings LLC, 7.0%,
6/30/24 (144A) 270,000
875,000(g) Crestwood Midstream Partners LP / Crestwood
Midstream Finance Corp., 6.25%, 4/1/23 (144A) 885,937
735,000 DCP Midstream Operating LP, 5.6%, 4/1/44 679,875
1,524,000(b)(g) Energy Transfer Partners LP, 3.774%, 11/1/66 1,036,320
248,000 EnLink Midstream Partners LP, 5.05%, 4/1/45 219,535
717,000 EnLink Midstream Partners LP, 5.6%, 4/1/44 663,500
350,000(a)(g) Enterprise Products Operating LLC, 4.465%, 8/1/66 329,910
2,500,000(g) Genesis Energy LP / Genesis Energy Finance Corp.,
6.75%, 8/1/22 2,575,950
1,410,000(g) Global Partners LP / GLP Finance Corp., 6.25%,
7/15/22 1,307,775
1,100,000(g) Global Partners LP / GLP Finance Corp., 7.0%, 6/15/23 1,025,750
1,850,000 ONEOK, Inc., 6.875%, 9/30/28 1,914,750
385,000(g) PBF Logistics LP / PBF Logistics Finance Corp.,
6.875%, 5/15/23 371,044
2,500,000(g) Sunoco LP / Sunoco Finance Corp., 6.375%,
4/1/23 (144A) 2,568,750
360,000 Targa Resources Partners LP / Targa Resources Partners
Finance Corp., 4.125%, 11/15/19 365,040
1,185,000 Western Refining Logistics LP / WNRL Finance Corp.,
7.5%, 2/15/23 1,214,625
3,040,000(g) Williams Cos., Inc., 5.75%, 6/24/44 3,131,200
---------------
$ 21,020,486
---------------
Total Energy $ 51,812,350
------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.5%
Food Retail -- 0.5%
950,000 C&S Group Enterprises LLC, 5.375%, 7/15/22 (144A) $ 935,750
805,000(g) Tops Holding LLC / Tops Markets II Corp., 8.0%,
6/15/22 (144A) 724,500
---------------
Total Food & Staples Retailing $ 1,660,250
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Trust | Semiannual Report | 9/30/16
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 7.2%
Agricultural Products -- 0.8%
2,100,000(g) Pinnacle Operating Corp., 9.0%, 11/15/20 (144A) $ 1,459,500
810,000 Southern States Cooperative, Inc., 10.0%,
8/15/21 (144A) 635,850
575,000(d) Tonon Luxembourg SA, 10.5%, 5/14/24 (144A) 235,750
---------------
$ 2,331,100
------------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 4.9%
775,000 Bertin SA / Bertin Finance, Ltd., 10.25%,
10/5/16 (144A) $ 775,000
1,250,000(d) CFG Investment SAC, 9.75%, 7/30/19 (144A) 734,375
1,240,000(g) Marfrig Holding Europe BV, 6.875%, 6/24/19 (144A) 1,261,700
750,000 Marfrig Holding Europe BV, 8.0%, 6/8/23 (144A) 768,375
1,000,000 Marfrig Holding Europe BV, 8.375%, 5/9/18 (144A) 1,033,750
1,200,000 Marfrig Holding Europe BV, 11.25%, 9/20/21 (144A) 1,191,000
1,240,000 Minerva Luxembourg SA, 6.5%, 9/20/26 (144A) 1,218,300
3,400,000(g) Minerva Luxembourg SA, 7.75%, 1/31/23 (144A) 3,595,500
400,000 Minerva Luxembourg SA, 12.25%, 2/10/22 (144A) 436,000
1,250,000(g) Post Holdings, Inc., 5.0%, 8/15/26 (144A) 1,243,750
2,000,000(g) Post Holdings, Inc., 6.0%, 12/15/22 (144A) 2,112,500
500,000(g) Post Holdings, Inc., 8.0%, 7/15/25 (144A) 572,188
---------------
$ 14,942,438
------------------------------------------------------------------------------------------------------------
Soft Drinks -- 0.5%
1,625,000(g) Cott Beverages, Inc., 5.375%, 7/1/22 $ 1,673,750
------------------------------------------------------------------------------------------------------------
Tobacco -- 1.0%
3,540,000(g) Alliance One International, Inc., 9.875%, 7/15/21 $ 3,004,575
---------------
Total Food, Beverage & Tobacco $ 21,951,863
------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.7%
Health Care Facilities -- 4.7%
3,365,000(g) CHS/Community Health Systems, Inc., 6.875%, 2/1/22 $ 2,893,900
610,000 CHS/Community Health Systems, Inc., 8.0%, 11/15/19 597,800
2,400,000(g) Kindred Healthcare, Inc., 6.375%, 4/15/22 2,274,000
2,000,000(g) Kindred Healthcare, Inc., 8.0%, 1/15/20 2,035,000
805,000 Quorum Health Corp., 11.625%, 4/15/23 (144A) 668,150
1,620,000 RegionalCare Hospital Partners Holdings, Inc.,
8.25%, 5/1/23 (144A) 1,672,650
2,805,000(g) Universal Hospital Services, Inc., 7.625%, 8/15/20 2,671,762
1,165,000 Vizient, Inc., 10.375%, 3/1/24 (144A) 1,336,838
---------------
$ 14,150,100
------------------------------------------------------------------------------------------------------------
Health Care Services -- 0.7%
2,250,000(g) BioScrip, Inc., 8.875%, 2/15/21 $ 2,103,750
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 23
Schedule of Investments | 9/30/16 (unaudited)(continued)
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.3%
900,000(g) Emdeon, Inc., 11.0%, 12/31/19 $ 947,250
---------------
Total Health Care Equipment & Services $ 17,201,100
------------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.8%
Household Products -- 0.8%
2,220,000 Springs Industries, Inc., 6.25%, 6/1/21 $ 2,297,700
---------------
Total Household & Personal Products $ 2,297,700
------------------------------------------------------------------------------------------------------------
INSURANCE -- 10.9%
Multi- Line Insurance -- 2.1%
3,075,000(a)(g) Liberty Mutual Group, Inc., 10.75%, 6/15/58 (144A) $ 4,674,000
1,100,000(g) MetLife, Inc., 10.75%, 8/1/39 1,762,860
---------------
$ 6,436,860
------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 3.1%
3,000,000(c)(i) Fixed Income Trust Series 2013-A, 0.0%,
10/15/97 (144A) $ 2,792,808
5,300,000(g) Hanover Insurance Corp., 7.625%, 10/15/25 6,375,921
265,000(a)(g)(h) White Mountains Insurance Group, Ltd., 7.506%, (144A) 266,696
---------------
$ 9,435,425
------------------------------------------------------------------------------------------------------------
Reinsurance -- 5.7%
500,000(b) Alamo Re, Ltd., 6.049%, 6/7/18 (144A) (Cat Bond) $ 518,250
500,000(j)(k) Arlington Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 8/1/17 24,300
500,000(j)(k) Artex Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 6/15/17 481,600
250,000(b) Blue Halo Re, Ltd., 14.264%, 6/21/19 (144A)
(Cat Bond) 260,325
400,000(b) Caelus Re, Ltd., Series 2013-2, Class A, 7.114%,
4/7/17 (144A) (Cat Bond) 409,560
700,000(j)(k) Carnoustie Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 11/30/20 751,310
700,000(j)(k) Carnoustie Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 2/28/17 14,280
500,000(b) Galileo Re, Ltd., 7.669%, 1/9/17 (144A) (Cat Bond) 505,850
1,300,000(j)(k) Gullane Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 11/30/20 1,380,730
750,000(b) Kilimanjaro Re, Ltd., 5.019%, 4/30/18 (144A)
(Cat Bond) 767,850
250,000(b) Kilimanjaro Re, Ltd., Series 2015-1, Class D, 9.519%,
12/6/19 (144A) (Cat Bond) 261,125
250,000(b) Kilimanjaro Re, Ltd., Series 2015-1, Class E, 7.019%,
12/6/19 (144A) (Cat Bond) 258,175
250,000(j)(k) Kingsbarns Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 5/15/17 238,400
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Trust | Semiannual Report | 9/30/16
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
1,000,000(j)(k) Lahinch Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 5/10/21 $ 982,600
760,000(j)(k) Lorenz Re, Ltd. (Prime, Ltd.), Variable Rate
Notes, 3/31/18 53,200
800,000(j)(k) Lorenz Re, Ltd. (Prime, Ltd.), Variable Rate
Notes, 3/31/19 828,960
500,000(j)(k) Nairn 2016 Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 8/29/17 471,400
1,000,000(j)(k) Pangaea Re XI Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 7/1/18 18,000
1,000,000(j)(k) Pangaea Re Segregated Account (Artex SAC, Ltd.),
Series 2015-1, Variable Rate Notes, 2/1/19 39,200
1,000,000(j)(k) Pangaea Re Segregated Account (Artex SAC, Ltd.),
Series 2015-2, Variable Rate Notes, 7/1/19 104,400
1,200,000(j)(k) Pangaea Re Segregated Account (Artex SAC, Ltd.),
Series 2016-1, Variable Rate Notes, 2/1/20 1,301,160
1,000,000(j)(k) Pangaea Re Segregated Account (Artex SAC, Ltd.),
Series 2016-2, Variable Rate Notes, 11/30/20 1,047,900
400,000(b) Residential Reinsurance 2012, Ltd., 13.014%,
12/6/16 (144A) (Cat Bond) 405,440
250,000(b) Residential Reinsurance 2012, Ltd., 19.264%,
12/6/16 (144A) (Cat Bond) 254,950
250,000(b) Residential Reinsurance 2013, Ltd., 9.514%,
6/6/17 (144A) (Cat Bond) 261,875
400,000(l) Resilience Re, Ltd., 4/7/17 (Cat Bond) 388,320
600,000(b) Resilience Re, Ltd., 4.564%, 1/9/17 (Cat Bond) 600,000
500,000(b) Sanders Re, Ltd., Series 2013-1, Class B, 4.264%,
5/5/17 (144A) (Cat Bond) 504,000
6,043(j)(k) Sector Re V, Ltd. (Swiss Re), Series 4, Class C, Variable
Rate Notes, 12/1/19 (144A) 7,571
800,000(j)(k) Sector Re V, Ltd. (Swiss Re), Series 5, Class C, Variable
Rate Notes, 12/1/20 (144A) 884,720
3,125(j)(k) Sector Re V, Ltd. (Swiss Re), Series 5, Class F, Variable
Rate Notes, 3/1/20 (144A) 70,146
750,000(j)(k) Sector Re V, Ltd. (Swiss Re), Series 6, Class A, Variable
Rate Notes, 3/1/21 (144A) 788,025
800,000(j)(k) Silverton Re, Ltd. (Aon Benfield Securities, Inc.),
Variable Rate Notes, 9/18/17 (144A) 19,760
500,000(j)(k) Silverton Re, Ltd. (Aon Benfield Securities, Inc.),
Variable Rate Notes, 9/17/18 (144A) 528,600
500,000(j)(k) St. Andrews Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 2/28/17 9,850
500,000(j)(k) St. Andrews Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 2/1/18 534,350
1,250,000(j)(k) Versutus, Ltd. (MMC Securities), Series 2015-A,
Variable Rate Notes, 12/31/17 28,250
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 25
Schedule of Investments | 9/30/16 (unaudited)(continued)
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
1,250,000(j)(k) Versutus, Ltd. (MMC Securities), Series 2016-A,
Variable Rate Notes, 11/30/20 $ 1,341,125
---------------
$ 17,345,557
---------------
Total Insurance $ 33,217,842
------------------------------------------------------------------------------------------------------------
MATERIALS -- 12.3%
Commodity Chemicals -- 2.6%
3,250,000(g) Basell Finance Co., BV, 8.1%, 3/15/27 (144A) $ 4,374,139
3,625,000(g) Rain CII Carbon LLC / CII Carbon Corp., 8.25%,
1/15/21 (144A) 3,534,375
---------------
$ 7,908,514
------------------------------------------------------------------------------------------------------------
Copper -- 0.7%
2,420,000 Freeport-McMoRan, Inc., 3.55%, 3/1/22 $ 2,202,200
------------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.9%
210,000(g) Blue Cube Spinco, Inc., 9.75%, 10/15/23 (144A) $ 246,750
210,000(g) Blue Cube Spinco, Inc., 10.0%, 10/15/25 (144A) 247,800
420,000 CVR Partners LP / CVR Nitrogen Finance Corp.,
9.25%, 6/15/23 (144A) 406,350
1,660,000(g) Evolution Escrow Issuer LLC, 7.5%, 3/15/22 (144A) 1,514,750
305,000(g) Platform Specialty Products Corp., 10.375%,
5/1/21 (144A) 328,638
---------------
$ 2,744,288
------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.1%
253,000(g) Boart Longyear Management Pty, Ltd., 10.0%,
10/1/18 (144A) $ 174,570
725,000(g) FMG Resources August 2006 Pty, Ltd., 9.75%,
3/1/22 (144A) 841,000
1,917,924(c)(d) Mirabela Nickel, Ltd., 9.5%, 6/24/19 163,024
1,410,000 Prince Mineral Holding Corp., 11.5%, 12/15/19 (144A) 1,321,875
145,000 Teck Resources, Ltd., 8.0%, 6/1/21 (144A) 157,687
145,000 Teck Resources, Ltd., 8.5%, 6/1/24 (144A) 166,025
340,000 Vale Overseas, Ltd., 6.25%, 8/10/26 355,198
---------------
$ 3,179,379
------------------------------------------------------------------------------------------------------------
Forest Products -- 0.5%
1,655,000(g) Eldorado International Finance GmbH, 8.625%,
6/16/21 (144A) $ 1,381,925
------------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 2.2%
1,745,000(g) Albea Beauty Holdings SA, 8.375%, 11/1/19 (144A) $ 1,823,525
EUR 400,000(f) ARD Finance SA, 6.625% (7.375% PIK 0.0% cash),
9/15/23 (144A) 432,082
400,000(f) ARD Finance SA, 7.125% (7.875% PIK 0.0% cash),
9/15/23 (144A) 398,000
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Trust | Semiannual Report | 9/30/16
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- (continued)
1,010,000(g) Ardagh Packaging Finance Plc / Ardagh Holdings
USA, Inc., 7.25%, 5/15/24 (144A) $ 1,075,650
445,000(g) Coveris Holdings SA, 7.875%, 11/1/19 (144A) 455,012
1,035,000(g) Reynolds Group Issuer, Inc., 7.0%, 7/15/24 (144A) 1,110,038
1,430,000(g) Reynolds Group Issuer, Inc., 9.875%, 8/15/19 1,472,900
---------------
$ 6,767,207
------------------------------------------------------------------------------------------------------------
Paper Packaging -- 1.3%
303,000(g) AEP Industries, Inc., 8.25%, 4/15/19 $ 312,847
EUR 3,105,000 SIG Combibloc Holdings SCA, 7.75%, 2/15/23 (144A) 3,660,217
---------------
$ 3,973,064
------------------------------------------------------------------------------------------------------------
Paper Products -- 1.1%
1,590,000(g) Appvion, Inc., 9.0%, 6/1/20 (144A) $ 1,025,550
2,250,000 Mercer International, Inc., 7.0%, 12/1/19 2,325,937
---------------
$ 3,351,487
------------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.7%
945,000(g) A Schulman, Inc., 6.875%, 6/1/23 (144A) $ 954,450
500,000 GCP Applied Technologies, Inc., 9.5%, 2/1/23 (144A) 571,225
400,000(g) Hexion US Finance Corp., 6.625%, 4/15/20 352,000
350,000 Tronox Finance LLC, 6.375%, 8/15/20 322,875
---------------
$ 2,200,550
------------------------------------------------------------------------------------------------------------
Steel -- 1.2%
2,483,000 Optima Specialty Steel, Inc., 12.5%, 12/15/16 (144A) $ 2,209,870
720,000 SunCoke Energy Partners LP / SunCoke Energy Partners
Finance Corp., 7.375%, 2/1/20 (144A) 673,200
635,000 Zekelman Industries, Inc., 9.875%, 6/15/23 (144A) 669,925
---------------
$ 3,552,995
---------------
Total Materials $ 37,261,609
------------------------------------------------------------------------------------------------------------
MEDIA -- 1.5%
Advertising -- 0.3%
810,000 MDC Partners, Inc., 6.5%, 5/1/24 (144A) $ 749,250
------------------------------------------------------------------------------------------------------------
Broadcasting -- 0.3%
670,000 CSC Holdings LLC, 5.5%, 4/15/27 (144A) $ 685,075
1,000,000(g) Intelsat Luxembourg SA, 7.75%, 6/1/21 335,000
---------------
$ 1,020,075
------------------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.2%
465,000 DISH DBS Corp., 7.75%, 7/1/26 (144A) $ 494,062
------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.7%
1,400,000(g) Gibson Brands, Inc., 8.875%, 8/1/18 (144A) $ 1,043,000
1,115,000 Regal Entertainment Group, 5.75%, 2/1/25 1,123,363
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 27
Schedule of Investments | 9/30/16 (unaudited)(continued)
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- (continued)
1,890,000(d)(e)(g) SFX Entertainment, Inc., 9.625%, 2/1/19 (144A) $ 9,450
---------------
$ 2,175,813
---------------
Total Media $ 4,439,200
------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 3.3%
Biotechnology -- 0.5%
1,500,000(g) ConvaTec Healthcare E SA, 10.5%, 12/15/18 (144A) $ 1,526,250
------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 2.8%
1,508,000(g) DPx Holdings BV (FKA JLL / Delta Dutch Newco BV),
7.5%, 2/1/22 (144A) $ 1,594,710
1,490,000(g) Endo Finance LLC / Endo, Ltd. / Endo Finco, Inc.,
6.0%, 7/15/23 (144A) 1,355,900
1,265,000(g) Endo Finance LLC / Endo, Ltd. / Endo Finco, Inc.,
6.5%, 2/1/25 (144A) 1,117,944
EUR 575,000 VRX Escrow Corp., 4.5%, 5/15/23 510,463
4,395,000(g) VRX Escrow Corp., 5.875%, 5/15/23 (144A) 3,790,688
---------------
$ 8,369,705
---------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 9,895,955
------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.3%
Diversified Real Estate Activities -- 0.1%
330,000 Alam Synergy Pte, Ltd., 9.0%, 1/29/19 (144A) $ 347,754
------------------------------------------------------------------------------------------------------------
Specialized REIT -- 1.2%
3,480,000(g) Communications Sales & Leasing, Inc. / CSL Capital
LLC, 8.25%, 10/15/23 $ 3,652,225
---------------
Total Real Estate $ 3,999,979
------------------------------------------------------------------------------------------------------------
RETAILING -- 2.9%
Automotive Retail -- 1.2%
1,385,000(g) Asbury Automotive Group, Inc., 6.0%, 12/15/24 $ 1,426,550
2,260,000(g) DriveTime Automotive Group, Inc. / DT Acceptance
Corp., 8.0%, 6/1/21 (144A) 2,186,550
---------------
$ 3,613,100
------------------------------------------------------------------------------------------------------------
Computer & Electronics Retail -- 0.9%
2,855,000(g) Rent-A-Center, Inc., 6.625%, 11/15/20 $ 2,755,075
------------------------------------------------------------------------------------------------------------
Department Stores -- 0.6%
935,000(g) Argos Merger Sub, Inc., 7.125%, 3/15/23 (144A) $ 979,412
900,000(g) Neiman Marcus Group, Ltd., LLC, 8.0%,
10/15/21 (144A) 751,500
---------------
$ 1,730,912
------------------------------------------------------------------------------------------------------------
Specialty Stores -- 0.2%
685,000 Radio Systems Corp., 8.375%, 11/1/19 (144A) $ 714,969
---------------
Total Retailing $ 8,814,056
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Trust | Semiannual Report | 9/30/16
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.3%
Semiconductors -- 0.3%
425,000 Micron Technology, Inc., 5.5%, 2/1/25 $ 416,500
665,000 Micron Technology, Inc., 5.625%, 1/15/26 (144A) 636,738
---------------
Total Semiconductors & Semiconductor Equipment $ 1,053,238
------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.0%
Data Processing & Outsourced Services -- 0.3%
805,000(g) First Data Corp., 7.0%, 12/1/23 (144A) $ 851,287
------------------------------------------------------------------------------------------------------------
Internet Software & Services -- 0.5%
1,500,000 Cimpress NV, 7.0%, 4/1/22 (144A) $ 1,563,750
------------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.2%
555,000(g) Diamond 1 Finance Corp. / Diamond 2 Finance Corp.,
7.125%, 6/15/24 (144A) $ 610,416
---------------
Total Software & Services $ 3,025,453
------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.9%
Communications Equipment -- 0.2%
645,000(g) CommScope Technologies Finance LLC, 6.0%,
6/15/25 (144A) $ 687,731
------------------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.3%
745,000(g) Zebra Technologies Corp., 7.25%, 10/15/22 $ 807,394
------------------------------------------------------------------------------------------------------------
Technology Hardware, Storage & Peripherals -- 0.4%
1,240,000(g) Diebold, Inc., 8.5%, 4/15/24 (144A) $ 1,284,950
---------------
Total Technology Hardware & Equipment $ 2,780,075
------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 8.0%
Integrated Telecommunication Services -- 5.4%
3,500,000(g) CenturyLink, Inc., 5.625%, 4/1/25 $ 3,351,250
2,890,000 Frontier Communications Corp., 7.125%, 1/15/23 2,694,925
1,400,000(g) Frontier Communications Corp., 7.625%, 4/15/24 1,309,000
1,330,000(g) Frontier Communications Corp., 11.0%, 9/15/25 1,388,187
1,975,000(g) GCI, Inc., 6.75%, 6/1/21 2,028,819
1,725,000(g) GCI, Inc., 6.875%, 4/15/25 1,768,125
4,200,000(g) Windstream Corp., 7.5%, 6/1/22 4,032,000
---------------
$ 16,572,306
------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 2.6%
1,085,000(g) Altice Financing SA, 6.625%, 2/15/23 (144A) $ 1,113,481
300,000(g) Altice Finco SA, 8.125%, 1/15/24 (144A) 310,500
1,025,000 Digicel Group, Ltd., 8.25%, 9/30/20 (144A) 890,469
3,080,000(g) Sprint Corp., 7.125%, 6/15/24 3,003,000
2,150,000(g) Sprint Corp., 7.25%, 9/15/21 2,158,063
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 29
Schedule of Investments | 9/30/16 (unaudited)(continued)
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- (continued)
400,000 Unison Ground Lease Funding LLC, 5.78%,
3/15/20 (144A) $ 391,732
---------------
$ 7,867,245
---------------
Total Telecommunication Services $ 24,439,551
------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 3.5%
Airlines -- 1.1%
280,000 Fly Leasing, Ltd., 6.375%, 10/15/21 $ 284,200
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) 2,009,000
600,000(g) United Continental Holdings, Inc., 6.375%, 6/1/18 630,000
---------------
$ 3,247,200
------------------------------------------------------------------------------------------------------------
Marine -- 0.2%
1,025,000 Navios South American Logistics, Inc. / Navios
Logistics Finance US, Inc., 7.25%, 5/1/22 (144A) $ 779,000
------------------------------------------------------------------------------------------------------------
Railroads -- 0.8%
957,996(f) AAF Holdings LLC / AAF Finance Co., 12.0%,
(12.75% PIK 12.0% cash), 7/1/19 (144A) $ 981,946
1,520,000 Florida East Coast Holdings Corp., 9.75%, 5/1/20 (144A) 1,379,400
---------------
$ 2,361,346
------------------------------------------------------------------------------------------------------------
Trucking -- 1.4%
4,175,000(g) Jack Cooper Holdings Corp., 9.25%, 6/1/20 $ 2,839,000
2,000,000(g) Syncreon Group BV / Syncreon Global Finance US, Inc.,
8.625%, 11/1/21 (144A) 1,480,000
---------------
$ 4,319,000
---------------
Total Transportation $ 10,706,546
------------------------------------------------------------------------------------------------------------
UTILITIES -- 5.1%
Electric Utilities -- 1.3%
1,010,000(a)(g) Enel S.p.A., 8.75%, 9/24/73 (144A) $ 1,180,437
180,000 PPL Energy Supply LLC, 4.625%, 7/15/19 (144A) 169,200
3,175,000(g) PPL Energy Supply LLC, 6.5%, 6/1/25 2,547,938
---------------
$ 3,897,575
------------------------------------------------------------------------------------------------------------
Gas Utilities -- 0.4%
1,245,000 Ferrellgas LP / Ferrellgas Finance Corp., 6.75%,
6/15/23 $ 1,095,600
------------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy
Traders -- 2.9%
2,105,000(g) NRG Energy, Inc., 6.625%, 1/15/27 (144A) $ 2,062,900
950,000 NRG Energy, Inc., 7.25%, 5/15/26 (144A) 966,625
2,430,000(g) TerraForm Global Operating LLC, 13.75%,
8/15/22 (144A) 2,502,900
The accompanying notes are an integral part of these financial statements.
30 Pioneer High Income Trust | Semiannual Report | 9/30/16
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy
Traders -- (continued)
505,000(g)(i) TerraForm Power Operating LLC, 9.375%, 2/1/23 (144A) $ 518,888
2,620,000(g)(i) TerraForm Power Operating LLC, 9.625%,
6/15/25 (144A) 2,751,000
---------------
$ 8,802,313
------------------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.5%
1,698,562 Ormat Funding Corp., 8.25%, 12/30/20 $ 1,681,576
---------------
Total Utilities $ 15,477,064
------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES
(Cost $338,041,476) $ 331,157,860
------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS & NOTES -- 3.9% of
Net Assets
CAPITAL GOODS -- 1.2%
Construction Machinery & Heavy Trucks -- 1.2%
2,625,000(g) Meritor, Inc., 7.875%, 3/1/26 $ 3,530,625
---------------
Total Capital Goods $ 3,530,625
------------------------------------------------------------------------------------------------------------
ENERGY -- 0.0%+
Coal & Consumable Fuels -- 0.0%+
1,905,000(d) Massey Energy Co., 3.25%, 11/30/16 $ 3,810
---------------
Total Energy $ 3,810
------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.6%
Health Care Equipment -- 1.6%
2,837,000(g)(i) Hologic, Inc., 2.0%, 12/15/37 $ 4,780,345
---------------
Total Health Care Equipment & Services $ 4,780,345
------------------------------------------------------------------------------------------------------------
MATERIALS -- 1.1%
Diversified Chemicals -- 1.1%
4,000,000(m) Hercules, Inc., 6.5%, 6/30/29 $ 3,484,320
---------------
Total Materials $ 3,484,320
------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.0%+
Renewable Electricity -- 0.0%+
170,984(d)(f) LDK Solar Co., Ltd., 5.535% (5.535% PIK 0.0%
cash), 12/31/18 $ 15,388
42,000(d)(e) Suntech Power Holdings Co., Ltd., 3.0%, 12/31/16 2
---------------
Total Utilities $ 15,390
------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS & NOTES
(Cost $10,054,007) $ 11,814,490
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 31
Schedule of Investments | 9/30/16 (unaudited)(continued)
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATIONS -- 1.3% of
Net Assets
Argentina -- 0.8%
2,405,000 Provincia del Chubut Argentina, 7.75%,
7/26/26 (144A) $ 2,456,106
------------------------------------------------------------------------------------------------------------
Russia -- 0.5%
1,241,200(i) Russian Government International Bond, 7.5%,
3/31/30 $ 1,505,581
------------------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATIONS
(Cost $3,315,460) $ 3,961,687
------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS --
6.5% of Net Assets
3,885,000(b) U.S. Treasury Notes, 0.327%, 7/31/17 $ 3,886,333
7,490,000(b) U.S. Treasury Notes, 0.418%, 10/31/17 7,497,198
4,125,000(b) U.S. Treasury Notes, 0.522%, 1/31/18 4,135,040
4,130,000(b) U.S. Treasury Notes, 0.440%, 4/30/18 4,133,440
---------------
$ 19,652,011
------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $19,645,968) $ 19,652,011
------------------------------------------------------------------------------------------------------------
TAX EXEMPT OBLIGATIONS -- 0.5% of
Net Assets (n)
Connecticut -- 0.1%
395,000(a) Connecticut State Health & Educational Facility Authority,
Yale University, Series V-2, 0.69%, 7/1/36 $ 395,000
------------------------------------------------------------------------------------------------------------
Pennsylvania -- 0.2%
600,000(a) Geisinger Authority, Geisinger Health System, Series B,
0.88%, 8/1/22 $ 600,000
------------------------------------------------------------------------------------------------------------
Texas -- 0.2%
420,000(a) Lower Neches Valley Authority Industrial Development
Corp., Exxon Mobil, 0.82%, 11/1/38 $ 420,000
------------------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT OBLIGATIONS
(Cost $1,415,000) $ 1,415,000
------------------------------------------------------------------------------------------------------------
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) $ 259,611
------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED DEBT OBLIGATION
(Cost $3,294,061) $ 259,611
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer High Income Trust | Semiannual Report | 9/30/16
------------------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.5% of Net Assets
CAPITAL GOODS -- 0.0%+
Industrial Machinery -- 0.0%+
33,171(c)(e) Liberty Tire Recycling LLC $ 332
---------------
Total Capital Goods $ 332
------------------------------------------------------------------------------------------------------------
ENERGY -- 0.0%+
Oil & Gas Exploration & Production -- 0.0%+
13,750(e) PetroQuest Energy, Inc. $ 47,574
---------------
Total Energy $ 47,574
------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.0%+
Health Care Technology -- 0.0%+
244,563(c)(e) Medical Card System, Inc. $ 2,446
---------------
Total Health Care Equipment & Services $ 2,446
------------------------------------------------------------------------------------------------------------
INSURANCE -- 0.0%+
Insurance Brokers -- 0.0%+
GBP 1,625(c)(e) Towergate Finance Plc $ 21
---------------
Total Insurance $ 21
------------------------------------------------------------------------------------------------------------
RETAILING -- 0.1%
Computer & Electronics Retail -- 0.1%
68,241(c)(e) Targus Cayman SubCo., Ltd. $ 238,843
---------------
Total Retailing $ 238,843
------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.4%
Air Freight & Logistics -- 0.4%
3,266(e) CEVA Holdings LLC $ 1,143,010
---------------
Total Transportation $ 1,143,010
------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $3,432,398) $ 1,432,226
------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 1.0%
of Net Assets
BANKS -- 0.7%
Diversified Banks -- 0.7%
1,880(h) Bank of America Corp., 7.25% $ 2,295,179
---------------
Total Banks $ 2,295,179
------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 0.3%
Pharmaceuticals -- 0.3%
1,000 Teva Pharmaceutical Industries, Ltd., 7.0%, 12/15/18 $ 813,309
---------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 813,309
------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $2,383,242) $ 3,108,488
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 33
Schedule of Investments | 9/30/16 (unaudited)(continued)
------------------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 2.6% of Net Assets
BANKS -- 1.0%
Diversified Banks -- 1.0%
3,000(a)(h) AgStar Financial Services ACA, 6.75%(144A) $ 3,180,750
---------------
Total Banks $ 3,180,750
------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.1%
Other Diversified Financial Services -- 1.1%
132,750(a)(g) GMAC Capital Trust I, 6.602%, 2/15/40 $ 3,373,178
---------------
Total Diversified Financials $ 3,373,178
------------------------------------------------------------------------------------------------------------
INSURANCE -- 0.5%
Insurance Brokers -- 0.5%
GBP 1,548,867(c)(e) Towergate Finance Plc, Class B $ 1,487,775
---------------
Total Insurance $ 1,487,775
------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $8,622,491) $ 8,041,703
------------------------------------------------------------------------------------------------------------
WARRANT -- 0.0%+ of Net Assets
INSURANCE -- 0.0%+
Insurance Brokers
GBP 466(c)(e)(o) Towergate Finance Plc $ -
------------------------------------------------------------------------------------------------------------
TOTAL WARRANT
(Cost $-) $ -
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($)
------------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 5.5%
of Net Assets
COMMERCIAL PAPER -- 0.6%
1,075,000 BNP Paribas SA, 0.27%, 10/3/16 $ 1,074,967
680,000 Prudential Funding LLC, 0.36%, 10/3/16 679,981
---------------
$ 1,754,948
------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.8%
2,280,000 $2,280,000 ScotiaBank, 0.47%, dated 9/30/16,
plus accrued interest on 10/3/16 collateralized
by the following:
$455 Freddie Mac Giant, 3.0%, 2/1/27, $506
Federal Home Loan Mortgage Corp., 2.611%,
9/1/44, $1,342,782 Federal National Mortgage
Association (ARM), 2.725-2.95%, 6/1/40-9/1/45,
$981,523 Federal National Mortgage Association,
2.5-4.0%, 2/1/31-7/1/46, $426 Government
National Mortgage Association, 4.0%, 10/15/41. $ 2,280,000
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer High Income Trust | Semiannual Report | 9/30/16
------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
------------------------------------------------------------------------------------------------------------
TREASURY BILLS -- 4.1%
3,775,000(l) U.S. Treasury Bill, 10/6/16 $ 3,774,966
3,250,000(l) U.S. Treasury Bill, 10/13/16 3,249,847
5,500,000(l) U.S. Treasury Bill, 11/3/16 5,499,060
---------------
$ 12,523,873
------------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $16,558,839) $ 16,558,821
------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 138.8%
(Cost -- $432,035,626) (p)(q) $ 421,470,253
------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (38.8)% $ (117,809,032)
------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS -- 100.0% $ 303,661,221
============================================================================================================
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, 2016, the value of these securities
amounted to $188,385,441, or 62.0% of total net assets applicable
to common shareowners.
(Cat Bond) Catastrophe or Event-linked bond. At September 30, 2016, the value
of these securities amounted to $5,395,720, or 1.8% 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, 2016.
(a) The interest rate is subject to change periodically. The interest
rate shown is the rate at September 30, 2016.
(b) Floating rate note. The rate shown is the coupon rate at
September 30, 2016.
(c) Security is valued using fair value methods (other than prices
supplied by independent pricing services). See Notes to Financial
Statements - Note 1A.
(d) Security is in default.
(e) Non-income producing.
(f) Payment in Kind (PIK) security which may pay interest in the form
of additional principal amount.
(g) Denotes security pledged and segregated as collateral for the credit
financing agreement.
(h) Security is perpetual in nature and has no stated maturity date.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 35
Schedule of Investments | 9/30/16 (unaudited)(continued)
(i) 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, 2016.
(j) Structured reinsurance investment. At September 30, 2016, the
value of these securities amounted to $11,949,837, or 3.9% of
total net assets applicable to common shareowners. See Notes to
Financial Statements - Note 1F.
(k) Rate to be determined.
(l) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(m) Security is priced as a unit.
(n) Consists of Revenue Bonds unless otherwise indicated.
(o) Towergate B Preferred warrants are exercisable into 466 Tig FinCo A
shares.
(p) At September 30, 2016, the net unrealized depreciation on
investments based on cost for federal tax purposes of $433,537,447
was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 25,703,418
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (37,770,612)
------------
Net unrealized depreciation $(12,067,194)
============
For financial reporting purposes net unrealized depreciation on investments was
$10,565,373 and cost of investments aggregated $432,035,626.
(q) Distributions of Investments by country of issue, as a percentage
of long-term holdings based on country of domicile, is as follows:
United States 78.3%
Bermuda 4.3
Luxembourg 4.1
Netherlands 3.1
Canada 2.6
Other (individually less than 1%) 7.6
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended
September 30, 2016 were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government $19,649,345 $ --
Other Long-Term Securities $81,182,473 $105,546,938
The Trust is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which PIM serves as the investment
adviser, as set forth in Rule 17a-7 under the Investment Company Act of 1940,
pursuant to procedures adopted by the Board of Trustees. Under these procedures,
cross trades are effected at current market prices. During the six months ended
September 30, 2016, the Trust engaged in purchases and sales pursuant to these
procedures amounting to $8,541,196 and $1,178,330, respectively
Principal amounts are denominated in U.S. dollars unless otherwise noted.
EUR -- Euro
GBP -- Great British Pound
IDR -- Indonesian Rupiah
The accompanying notes are an integral part of these financial statements.
36 Pioneer High Income Trust | Semiannual Report | 9/30/16
CREDIT DEFAULT SWAP AGREEMENT -- SELL PROTECTION
----------------------------------------------------------------------------------------------------
Obligation
Notional Entity/ Credit Expiration Premiums Unrealized
Principal ($)(1) Counterparty Index Coupon Rating(2) Date (Received) Appreciation
----------------------------------------------------------------------------------------------------
2,000,000 JPMorgan Goodyear 5.00% BB 12/20/17 $(65,000) $184,226
Chase Tire &
Bank NA Rubber Co.
----------------------------------------------------------------------------------------------------
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Based on Standard & Poor's rating of the issuer or weighted average of all
the underlying securities of the index.
CENTRALLY CLEARED INTEREST RATE SWAP AGREEMENT
----------------------------------------------------------------------------------------------------
Annual
Notional Pay/ Floating Fixed Expiration Premiums Unrealized
Principal ($) Exchange Receive Rate Rate Date Paid Depreciation
----------------------------------------------------------------------------------------------------
22,500,000 Chicago Receive LIBOR USD 1.593% 11/9/20 $101 $(536,481)
Mercantile 3 Month
Exchange
----------------------------------------------------------------------------------------------------
Various inputs are used in determining the value of the Trust's investments.
These inputs are summarized in the three broad levels below.
Level 1 -- quoted prices in active markets for identical securities.
Level 2 -- other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speeds,
credit risks, etc.). See Notes to Financial Statements -- Note
1A.
Level 3 -- significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments). See
Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of September 30, 2016, in
valuing the Trust's investments.
----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------
Asset Backed Securities $ -- $ 120,633 $ -- $ 120,633
Collateralized Mortgage
Obligation -- 628,225 -- 628,225
Commercial Mortgage-Backed
Securities -- 5,452,739 -- 5,452,739
Senior Secured Floating
Rate Loan Interests
Health Care Equipment
& Services
Health Care
Technology -- -- 853,713 853,713
Retailing
Computer &
Electronics Retail -- -- 296,373 296,373
All Other Senior Secured
Floating Rate
Loan Interests -- 16,716,673 -- 16,716,673
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 37
Schedule of Investments | 9/30/16 (unaudited)(continued)
---------------------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------------------------------
Corporate Bonds & Notes
Insurance
Property & Casualty
Insurance $ -- $ 6,642,617 $ 2,792,808 $ 9,435,425
Reinsurance -- 4,407,400 12,938,157 17,345,557
Materials
Diversified Metals
& Mining -- 3,016,355 163,024 3,179,379
All Other Corporate
Bonds & Notes -- 301,197,499 -- 301,197,499
Convertible Bonds & Notes -- 11,814,490 -- 11,814,490
Sovereign Debt Obligations -- 3,961,687 -- 3,961,687
U.S. Government and
Agency Obligations -- 19,652,011 -- 19,652,011
Tax Exempt Obligations -- 1,415,000 -- 1,415,000
Municipal Collateralized
Debt Obligation -- 259,611 -- 259,611
Common Stocks
Capital Goods
Industrial Machinery -- -- 332 332
Health Care Equipment
& Services
Health Care Technology -- -- 2,446 2,446
Insurance
Insurance Brokers -- -- 21 21
Retailing
Computer &
Electronics Retail -- -- 238,843 238,843
Transportation
Air Freight & Logistics -- 1,143,010 -- 1,143,010
All Other Common Stocks 47,574 -- -- 47,574
Convertible Preferred Stocks 3,108,488 -- -- 3,108,488
Preferred Stocks
Insurance
Insurance Brokers -- -- 1,487,775 1,487,775
All Other Preferred Stocks 6,553,928 -- -- 6,553,928
Warrant -- -- --* --*
Commercial Paper -- 1,754,948 -- 1,754,948
Repurchase Agreement -- 2,280,000 -- 2,280,000
Treasury Bills -- 12,523,873 -- 12,523,873
---------------------------------------------------------------------------------------------------------------------
Total Investments in
Securities $ 9,709,990 $392,986,771 $ 18,773,492 $421,470,253
=====================================================================================================================
Other Financial Instruments
Unrealized appreciation
on credit default swap $ -- $ 184,226 $ -- $ 184,226
Unrealized appreciation
on forward foreign
currency contracts -- 46,279 -- 46,279
Unrealized depreciation
on centrally cleared
interest rate swap -- (536,481) -- (536,481)
Unrealized depreciation
on forward foreign
currency contracts -- (11,488) -- (11,488)
---------------------------------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ -- $ (317,464) $ -- $ (317,464)
=====================================================================================================================
* Includes securities that are valued at $0.
The accompanying notes are an integral part of these financial statements.
38 Pioneer High Income Trust | Semiannual Report | 9/30/16
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
------------------------------------------------------------------------------------------------------------------------------------
Change in Transfers
Balance Realized unrealized Accrued Transfers Transfers in and out Balance
as of gain appreciation discounts/ in to out of of Level 3 as of
3/31/16 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* Level 3* categories 9/30/16
------------------------------------------------------------------------------------------------------------------------------------
Senior Secured
Floating Rate
Loan Interests
Health Care
Equipment &
Services
Health Care
Technology $ 853,713 $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ 853,713
Retailing
Computer &
Electronics
Retail 272,963 -- -- 23,410 -- -- -- -- -- 296,373
Corporate Bonds
& Notes
Capital Goods
Industrial
Machinery 544,547 (214,242) 140,432 40,473 (514,330) 3,120 -- -- -- --
Insurance
Property
& Casualty
Insurance 2,096,179 -- 692,593 -- -- 4,036 -- -- -- 2,792,808
Reinsurance 12,318,440 (3,767) 254,994 4,210,808 (3,895,246) 52,928 -- -- -- 12,938,157
Materials
Diversified
Metals
& Mining -- -- (601,399) 86,970 -- -- 677,453 -- -- 163,024
Common Stocks
Capital Goods
Building
Products 770,628 199,673 (332,568) -- (637,733) -- -- -- -- --
Industrial
Machinery 332 -- -- -- -- -- -- -- -- 332
Health Care Equipment
& Services
Health Care
Technology 135 -- -- 2,446 (135) -- -- -- -- 2,446
Insurance
Insurance Brokers 23 -- (2) -- -- -- -- -- -- 21
Retailing
Computer &
Electronics
Retail 238,843 -- -- -- -- -- -- -- -- 238,843
Preferred Stocks
Insurance
Insurance
Brokers 1,848,249 -- (360,474) -- -- -- -- -- -- 1,487,775
Reinsurance 21,250 -- (21,250) -- -- -- -- -- -- --
Warrant
Insurance
Insurance
Brokers --** -- -- -- -- -- -- -- -- --**
------------------------------------------------------------------------------------------------------------------------------------
Total $18,965,302 $ (18,336) $ (227,674) $4,364,107 $(5,047,444) $60,084 $677,453 $ -- $ -- $18,773,492
====================================================================================================================================
(1) Realized gain (loss) on these securities is included in the realized gain
(loss) from investments in the Statement of Operations.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 39
Schedule of Investments | 9/30/16 (unaudited)(continued)
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) from investments in
the Statement of Operations.
* Transfers are calculated on the beginning of period value. For the six
months ended September 30, 2016, there were no transfers between Levels 1
and 2. Securities with an aggregate market value of $677,453 transferred
from level 2 to level 3 as there were no longer observable inputs available
to determine their value.
** Includes securities that are valued at $0.
Net change in unrealized depreciation of Level 3 investments still held and
considered Level 3 at September 30, 2016: $(158,494).
The following table presents additional information about valuation techniques
and inputs used for investments categorized as Level 3 at September 30, 2016.
These amounts exclude valuations provided by a broker.
-------------------------------------------------------------------------------------------------------
Fair Value Valuation Unobservable Value/
Asset Type 9/30/16 Technique (s) Input Range
-------------------------------------------------------------------------------------------------------
Senior Secured $1,150,086 Market EBITDA
Floating Rate Comparables Multiples(1) 4X -- 5X
Loan Interests
-------------------------------------------------------------------------------------------------------
Corporate Bonds & Notes $2,955,832 Market EBITDA
Comparables Multiples(1) 5.5X -- 6X
Yield
Premium(2) 1.05%
-------------------------------------------------------------------------------------------------------
Common Stocks $ 241,642 Market EBITDA
Comparables Multiples(1) 4X -- 6X
-------------------------------------------------------------------------------------------------------
Preferred Stocks $1,487,775 Market EBITDA
Comparables Multiples(1) 5.5X -- 6X
=======================================================================================================
(1) An increase in this unobservable input would result in a higher fair value
measurement, while a decrease would result in a lower fair value
measurement.
(2) An increase in this unobservable input would result in a lower fair value
measurement, while a decrease would result in a higher fair value
measurement.
The accompanying notes are an integral part of these financial statements.
40 Pioneer High Income Trust | Semiannual Report | 9/30/16
Statement of Assets and Liabilities | 9/30/16 (unaudited)
ASSETS:
Investments in securities, at value (cost $432,035,626) $421,470,253
Cash 4,346,215
Foreign currencies, at value (cost $1,302,157) 1,361,799
Restricted cash* 645,129
Receivables --
Investment securities sold 564,092
Interest 7,333,359
Dividends 34,075
Variation margin for centrally cleared swap contract 29,648
Unrealized appreciation on credit default swap 184,226
Unrealized appreciation on forward foreign currency contracts 46,279
Reinvestment of distributions 179,248
--------------------------------------------------------------------------------------------------
Total assets $436,194,323
--------------------------------------------------------------------------------------------------
LIABILITIES:
Credit default swaps, premiums received $ 64,899
Payables --
Credit Agreement 125,000,000
Investment securities purchased 6,372,353
Trustees' fees 271
Administration fee 9,641
Interest expense 277,121
Unrealized depreciation on centrally cleared interest rate swap 536,481
Unrealized depreciation on forward foreign currency contracts 11,488
Due to affiliates 183,376
Accrued expenses 77,472
--------------------------------------------------------------------------------------------------
Total liabilities $132,533,102
--------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $416,091,387
Distributions in excess of net investment income (2,610,217)
Accumulated net realized loss on investments, swap contacts, and
foreign currency transactions (98,993,164)
Net unrealized depreciation on investments (10,565,373)
Net unrealized depreciation on swap contracts (352,255)
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 90,843
--------------------------------------------------------------------------------------------------
Net assets applicable to common shareowners $303,661,221
==================================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $303,661,221 / 29,231,771 shares $ 10.39
==================================================================================================
* Represents restricted cash deposited at the custodian and/or counterparty
for derivative contracts.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 41
Statement of Operations (unaudited)
For the Six Months Ended 9/30/16
INVESTMENT INCOME:
Interest $16,630,720
Dividends (net of foreign taxes withheld $5,250) 306,642
Loan facility and other income 875,112
-------------------------------------------------------------------------------------------------
Total investment income $ 17,812,474
-------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,247,804
Administrative expense 52,628
Transfer agent fees 6,658
Shareholder communications expense 20,589
Custodian fees 17,483
Professional fees 54,775
Printing expense 5,297
Trustees' fees 7,015
Pricing fees 12,755
Interest expense 1,572,602
Miscellaneous 30,697
-------------------------------------------------------------------------------------------------
Total expenses $ 3,028,303
-------------------------------------------------------------------------------------------------
Net investment income $ 14,784,171
-------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAP CONTRACTS, AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $(4,949,982)
Swap contracts (56,585)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (14,423) $ (5,020,990)
-------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $35,753,812
Swap contracts (936)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 223,607 $ 35,976,483
-------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments,
swap contracts, and foreign currency transactions $ 30,955,493
-------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 45,739,664
=================================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer High Income Trust | Semiannual Report | 9/30/16
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------------
Six Months
Ended Year
9/30/16 Ended
(unaudited) 3/31/16
--------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 14,784,171 $ 34,651,558
Net realized gain (loss) on investments, swap contracts,
and foreign currency transactions (5,020,990) (30,699,910)
Change in net unrealized appreciation (depreciation) on
investments, swap contracts, and foreign
currency transactions 35,976,483 (39,225,188)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 45,739,664 $ (35,273,540)
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income and previously undistributed net
investment income ($0.52 and $1.34 per share,
respectively) $ (15,166,064) $ (38,877,766)
--------------------------------------------------------------------------------------------------
Total distributions to common shareowners $ (15,166,064) $ (38,877,766)
--------------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 1,187,786 $ 1,702,118
--------------------------------------------------------------------------------------------------
Net increase in net assets from Trust share transactions $ 1,187,786 $ 1,702,118
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 31,761,386 $ (72,449,188)
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period 271,899,835 344,349,023
--------------------------------------------------------------------------------------------------
End of period $ 303,661,221 $ 271,899,835
--------------------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (2,610,217) $ (2,228,324)
==================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 43
Statement of Cash Flows (unaudited)
For the Six Months Ended 9/30/16
Cash Flows From Operating Activities:
Net increase in net assets resulting from operations $ 45,739,664
---------------------------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets resulting from operations to
net cash and foreign currencies from operating activities:
Purchases of investment securities $ (95,454,505)
Proceeds from disposition and maturity of investment securities 107,995,740
Net purchases of temporary cash investments (11,078,839)
Net accretion and amortization of discount/premium on investment securities (1,309,591)
Change in unrealized appreciation on investments (35,753,812)
Change in unrealized appreciation on credit default swap contracts 44,956
Change in unrealized depreciation on centrally cleared interest rate
swap contracts (44,020)
Change in unrealized appreciation on forward foreign currency contracts and
foreign currency (225,064)
Net realized loss on investments 4,949,982
Decrease in restricted cash 64,796
Decrease in interest receivable 2,642,334
Decrease in reinvestment of distributions 49,597
Increase in due to affiliates 9,300
Decrease in trustees' fees payable (602)
Increase in administration fees payable 1,925
Decrease in accrued expenses payable (37,128)
Increase in interest expense payable 20,803
Decrease in variation margin for centrally cleared swap contracts (66,339)
---------------------------------------------------------------------------------------------------
Net cash and foreign currencies from operating activities $ 17,549,197
---------------------------------------------------------------------------------------------------
Cash Flows Used in Financing Activities:
Distributions to shareowners $ (15,166,064)
Reinvestment of distributions 1,187,786
---------------------------------------------------------------------------------------------------
Net cash and foreign currencies used in financing activities $ (13,978,278)
---------------------------------------------------------------------------------------------------
Effect of Foreign Exchange Fluctuations on Cash:
Effect of foreign exchange fluctuations on cash $ 7,293
---------------------------------------------------------------------------------------------------
Cash and Foreign Currencies:
Beginning of the period $ 2,129,802
---------------------------------------------------------------------------------------------------
End of the period $ 5,708,014
---------------------------------------------------------------------------------------------------
Cash Flow Information:
Cash paid for interest $ 1,551,799
===================================================================================================
The accompanying notes are an integral part of these financial statements.
44 Pioneer High Income Trust | Semiannual Report | 9/30/16
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months Year
Ended Year Year Year Year Ended
9/30/16 Ended Ended Ended Ended 3/31/12
(unaudited) 3/31/16 3/31/15 3/31/14 3/31/13 (Consolidated)
------------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 9.34 $ 11.89 $ 14.19 $ 14.23 $ 13.45 $ 14.33
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 0.51 $ 1.19 $ 1.36 $ 1.50 $ 1.74 $ 1.70
Net realized and unrealized gain (loss) on
investments, swap contracts, and foreign
currency transactions 1.06 (2.40) (2.05) 0.12 0.70 (0.92)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareowners from:
Net investment income $ -- $ -- $ -- $ (0.01) $ (0.01) $ (0.01)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.57 $ (1.21) $ (0.69) $ 1.61 $ 2.43 $ 0.77
------------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income and previously undistributed
net investment income $ (0.52)* $ (1.34)* $ (1.61)* $ (1.65)* $ (1.65) $ (1.65)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.05 $ (2.55) $ (2.30) $ (0.04) $ 0.78 $ (0.88)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period (b) $ 10.39 $ 9.34 $ 11.89 $ 14.19 $ 14.23 $ 13.45
------------------------------------------------------------------------------------------------------------------------------------
Market value, end of period (b) $ 10.51 $ 10.04 $ 12.87 $ 17.83 $ 16.97 $ 16.66
====================================================================================================================================
Total return at market value (c) 10.20%(d) (11.37)% (20.28)% 16.24% 12.65% 11.53%
Ratios to average net assets of common shareowners:
Total expenses plus interest expense (e)(f) 2.08%(g) 1.67% 1.33% 1.04% 1.08% 1.05%
Net investment income before preferred share
distributions 10.17%(g) 11.23% 10.30% 10.70% 13.03% 12.66%
Preferred share distributions --% --% --% 0.04% 0.06% 0.05%
Net investment income available to common
shareowners 10.17%(g) 11.23% 10.30% 10.66% 12.97% 12.61%
Portfolio turnover 25% 24% 37% 30% 27% 24%
Net assets of common shareowners, end of period
(in thousands) $ 303,661 $ 271,900 $ 344,349 $406,884 $404,498 $379,518
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/16 45
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Six Months Year
Ended Year Year Year Year Ended
9/30/16 Ended Ended Ended Ended 3/31/12
(unaudited) 3/31/16 3/31/15 3/31/14 3/31/13 (Consolidated)
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) $ -- $ -- $ -- $ --(h) $ 151,000 $ 151,000
Asset coverage per preferred share, end of period $ -- $ -- $ -- $ --(h) $ 91,971 $ 87,835
Average market value per preferred share (i) $ -- $ -- $ -- $ --(h) $ 25,000 $ 25,000
Liquidation value, including dividends payable,
per preferred share $ -- $ -- $ -- $ --(h) $ 25,001 $ 25,001
Total amount of debt outstanding (in thousands) $ 125,000 $ 125,000 $ 151,000 $151,000 $ -- $ --
Asset coverage per indebtedness (in thousands) $ 3,429 $ 3,175 $ 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
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Past
performance is not a guarantee of future results.
(d) Not annualized.
(e) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(f) Includes interest expense of 1.08%, 0.63%, 0.38%, 0.02%, 0.00%, and 0.00%,
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.
46 Pioneer High Income Trust | Semiannual Report | 9/30/16
Notes to Financial Statements | 9/30/16 (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 (U.S. GAAP) 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 Trust is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Trust in the preparation of its financial
statements:
A. Security Valuation
The net asset value of the Trust is computed once daily, on each day the
New York Stock Exchange (NYSE) is open, as of the close of regular trading
on the NYSE.
Fixed income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed income securities and/or other
factors. Valuations may be supplemented by dealers and other sources, as
required. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service.
Pioneer High Income Trust | Semiannual Report | 9/30/16 47
Loan interests are valued in accordance with guidelines established by the
Board of Trustees at the mean between the last available bid and asked
prices from one or more brokers or dealers as obtained from Loan Pricing
Corporation, an independent third party pricing service. If price
information is not available from Loan Pricing Corporation, or if the price
information is deemed to be unreliable, price information will be obtained
from an alternative loan interest pricing service. If no reliable price
quotes are available from either the primary or alternative pricing
service, broker quotes will be solicited.
Event-linked bonds or catastrophe bonds are valued at the bid price
obtained from an independent third party pricing service. Other insurance
linked securities (including sidecars, collateralized reinsurance and
industry loss warranties) may be valued at the bid price obtained from an
independent pricing service, or through a third party using a pricing
matrix, insurance industry valuation models, or other fair value methods or
techniques to provide an estimated value of the instrument.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
Foreign securities are valued in U.S. dollars based on foreign currency
exchange rate quotations supplied by a third party pricing service. Trading
in non-U.S. equity securities is substantially completed each day at
various times prior to the close of the NYSE. The values of such securities
used in computing the net asset value of the Trust's shares are determined
as of such times. The Trust may use a fair value model developed by an
independent pricing service to value non-U.S. equity securities.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealer association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
The accompanying notes are an integral part of these financial statements.
48 Pioneer High Income Trust | Semiannual Report | 9/30/16
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate and forward points on a daily basis, in each case
provided by a third party pricing service. Contracts whose forward
settlement date falls between two quoted days are valued by interpolation.
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such funds' net asset value. Repurchase
agreements are valued at par. Cash may include overnight time deposits at
approved financial institutions.
Securities or loan interests for which independent pricing services are
unable to supply prices or for which market prices and/or quotations are
not readily available or are considered to be unreliable are valued 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 fair valuation team is responsible for monitoring
developments that may impact fair valued securities and for discussing and
assessing fair values on an ongoing basis, and at least quarterly, with the
Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Trust may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Trust's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Trust's securities may differ significantly from exchange prices and
such differences could be material.
At September 30, 2016, eleven securities were valued using fair value
methods (in addition to securities valued using prices supplied by
independent pricing services, broker-dealers or using a third party
insurance pricing model) representing 1.92% of net assets. The value of
these fair valued securities are $5,835,335.
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
Pioneer High Income Trust | Semiannual Report | 9/30/16 49
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 purchase prices of 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.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated 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 4).
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, 2016, the Trust did not accrue any interest or penalties with
50 Pioneer High Income Trust | Semiannual Report | 9/30/16
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. GAAP. Distributions in excess of net investment
income or net realized gains are temporary overdistributions for financial
statement and tax purposes. Capital accounts within the financial
statements are adjusted for permanent book/tax differences to reflect tax
character, but are not adjusted for temporary differences.
The tax character of current year distributions payable 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, 2016 was as follows:
---------------------------------------------------------------------------
2016
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $38,877,766
---------------------------------------------------------------------------
Total $38,877,766
===========================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at March 31, 2016:
---------------------------------------------------------------------------
2016
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,367,650
Capital loss carryforward (72,302,745)
Late year loss deferrals (22,325,423)
Other book/tax temporary differences (2,939,980)
Unrealized depreciation (46,803,268)
---------------------------------------------------------------------------
Total $(143,003,766)
===========================================================================
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
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.
Pioneer High Income Trust | Semiannual Report | 9/30/16 51
F. Insurance-Linked Securities (ILS)
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.
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 as quota share instruments
(sometimes referred to as reinsurance sidecars), or to provide reinsurance
relating to specific risks to insurance or reinsurance companies through a
collateralized instrument, known as collateralized reinsurance. Structured
reinsurance investments also may include industry loss warranties ("ILWs").
A traditional ILW takes the form of a bilateral reinsurance contract, but
there are also products that take the form of derivatives, collateralized
structures, or exchange traded instruments.
Structured reinsurance investments, including quota share instruments,
collateralized reinsurance investments and ILWs, generally are subject to
the same risks as event-linked bonds. In addition, where the instruments
are based on the performance of underlying reinsurance contracts, the Trust
has limited transparency into the individual underlying contracts and
therefore must rely upon the risk assessment and sound underwriting
practices of the issuer. Accordingly, it may be more difficult for PIM to
fully evaluate the underlying risk profile of the Trust's structured
reinsurance investments and therefore the Trust's assets are placed at
greater risk of loss than if PIM had more complete information. Structured
reinsurance instruments generally will be considered illiquid securities by
the Trust. These securities may be difficult to purchase, sell or unwind.
Illiquid securities also may be difficult to value. If the Trust is forced
to sell an illiquid asset, the Trust may be forced to sell at a loss.
52 Pioneer High Income Trust | Semiannual Report | 9/30/16
G. 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.
The value of securities held by the Trust may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
The Trust invests in below investment grade (high yield) debt securities,
floating rate loans and event-linked bonds sometimes referred to as
"catastrophe" bonds or "insurance-linked" bonds. The Trust may invest in
securities and other obligations of any credit quality, including those
that are rated below investment grade, or are unrated but are determined by
the investment adviser to be of equivalent credit quality. Below investment
grade securities are commonly referred to as "junk bonds" and are
considered speculative with respect to the issuer's capacity to pay
interest and repay principal. Below investment grade securities, including
floating rate loans, involve greater risk of loss, are subject to greater
price volatility, and are less liquid and more difficult to value,
especially during periods of economic uncertainty or change, than higher
rated debt securities. Certain securities in which the Trust invests,
including floating rate loans, once sold, may not settle for an extended
period (for example, several weeks or even longer). The Trust will not
receive its sale proceeds until that time, which may constrain the Trust's
ability to meet its obligations. The Trust may invest in securities of
issuers that are in default or that are in bankruptcy. The value of
collateral, if any, securing a floating rate loan can decline or may be
insufficient to meet the issuer's obligations or may be difficult to
liquidate. No active trading market may exist for many floating rate loans,
and many loans are subject to restrictions on resale. Any secondary market
may be subject to irregular trading activity and extended settlement
periods. The Trust's investments in certain foreign markets or countries
with limited developing markets may subject the Trust to a greater degree
of risk than in a developed market. These risks include disruptive
political or economic conditions and the possible imposition of adverse
governmental laws or currency exchange restrictions.
Pioneer High Income Trust | Semiannual Report | 9/30/16 53
The Trust may invest up to 50% of its total assets in illiquid securities.
Illiquid securities are securities that cannot be disposed of by the Trust
within seven days in the ordinary course of business at approximately the
amounts which the Trust values the securities.
Interest rates in the U.S. recently have been historically low, so the
Trust faces a heightened risk that interest rates may rise. A general rise
in interest rates may cause investors to move out of fixed income
securities on a large scale, which could adversely affect the price and
liquidity of fixed income securities.
H. 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. Open repurchase agreements as of September
30, 2016 are disclosed in the Trust's Schedule of Investments.
I. Automatic Dividend Reinvestment Plan
All shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional shares of
the Trust in lieu of cash. Shareowners may elect not to participate in the
Plan. Shareowners not participating in the Plan receive all dividends and
capital gain distributions in cash. Participation in the Plan is completely
voluntary and may be terminated or resumed at any time without penalty by
notifying American Stock Transfer & Trust Company, the agent for
shareowners in administering the Plan (the Plan Agent), in writing prior to
any dividend record date; otherwise such termination or resumption will be
effective with respect to any subsequently declared dividend or other
distribution.
54 Pioneer High Income Trust | Semiannual Report | 9/30/16
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate in
the Plan on the shareowner's behalf. If the firm or nominee does not offer
the Plan, dividends will be paid in cash to the shareowner of record. A
firm or nominee may reinvest a shareowner's cash dividends in shares of the
Trust on terms that differ from the terms of the Plan.
Whenever the Trust declares a dividend on shares payable in cash,
participants in the Plan will receive the equivalent in shares acquired by
the Plan Agent either (i) through receipt of additional unissued but
authorized shares from the Trust or (ii) by purchase of outstanding shares
on the New York Stock Exchange or elsewhere. If, on the payment date for
any dividend, the net asset value per share is equal to or less than the
market price per share plus estimated brokerage trading fees (market
premium), the Plan Agent will invest the dividend amount in newly issued
shares. The number of newly issued shares to be credited to each account
will be determined by dividing the dollar amount of the dividend by the net
asset value per share on the date the shares are issued, provided that the
maximum discount from the then current market price per share on the date
of issuance does not exceed 5%. If, on the payment date for any dividend,
the net asset value per share is greater than the market value (market
discount), the Plan Agent will invest the dividend amount in shares
acquired in open-market purchases. There are no brokerage charges with
respect to newly issued shares. However, each 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.
J. 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 on an underlying
reference obligation, which may be a single security or a basket or index
of securities. The Trust may buy or sell credit default swap contracts to
seek to increase the Trust's income, or to attempt to hedge the risk of
default on portfolio securities. A credit default swap index is used to
hedge risk or take a position on a basket of credit entities or indices. As
a seller of protection, the Trust would be required to pay the notional (or
other agreed-upon) value of the referenced debt obligation to the
counterparty in the event of a default by a U.S. or foreign corporate
issuer of a debt obligation, which would likely result in a loss to the
Trust. In return, the Trust would receive from the counterparty a periodic
stream of payments during the term of the contract provided that no event
of default occurred. The maximum exposure of loss to
Pioneer High Income Trust | Semiannual Report | 9/30/16 55
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.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Trust are pursuant to a centrally cleared swap contract with the
central clearing party rather than the original counterparty. Upon entering
into a centrally cleared swap contract, the Trust is required to make an
initial margin deposit, either in cash or in securities. The daily change
in value on open centrally cleared contracts is recorded as variation
margin on centrally cleared swaps on the Statement of Assets and
Liabilities.
The amount of cash deposited with the broker as collateral at September 30,
2016, and is included in "Restricted cash" in the Statement of Assets and
Liabilities, was $118,815.
Open credit default swap contracts at September 30, 2016 are listed in the
Schedule of Investments. The average market value of credit default swap
contracts open during the six months ended September 30, 2016 was $136,418.
56 Pioneer High Income Trust | Semiannual Report | 9/30/16
K. Interest Rate Swap Contracts
The Trust may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance its income. Pursuant to the
interest rate swap agreement, the Trust negotiates with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is typically
a fixed interest rate. Payment flows are usually netted against each other,
with the difference being paid by one party to the other on a monthly
basis.
Periodic payments received or paid by the Trust are recorded as realized
gains or losses in the Statement of Operations. Interest rate swap
contracts are marked-to-market daily using valuations supplied by
independent sources and the change in value, if any, is recorded as
unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Interest rate swap contracts are subject to counterparty risk
and movements in interest rates.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Trust are pursuant to a centrally cleared swap contract with the
central clearing party rather than the original counterparty. Upon entering
into a centrally cleared swap contract, the Trust is required to make an
initial margin deposit, either in cash or in securities. The daily change
in value on open centrally cleared swap contracts is recorded as variation
margin on centrally cleared swaps on the Statement of Assets and
Liabilities.
Open interest rate swap contracts at September 30, 2016 are listed in the
Schedule of Investments. The average value of interest swap contracts open
during the six months ended September 30, 2016 was $(451,430).
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) 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, 2016 the net
management fee was 0.60% (annualized) of the Trust's average daily managed
assets, which was equivalent to 0.86% (annualized) of the Trust's average daily
net assets.
Pioneer High Income Trust | Semiannual Report | 9/30/16 57
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,
2016, $193,017 was payable to PIM related to management costs, administrative
costs and certain other services is included in "Due to affiliates" and
"Administration fee" on the Statement of Assets and Liabilities.
3. Transfer Agent
American Stock Transfer & Trust Company (AST) serves as the transfer agent with
respect to the Trust's shares. The Trust pays AST an annual fee, as is agreed to
from time to time by the Trust and AST, for providing such services.
In addition, the Trust reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings and outgoing calls.
4. Forward Foreign Currency Contracts
During the six months ended September 30, 2016, 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, 2016 was $(2,981,767).
Open foreign currency contracts at September 30, 2016, were as follows:
-----------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
-----------------------------------------------------------------------------------------------
GBP 1,293,180 USD 1,724,971 Citibank NA 10/06/16 $46,279
-----------------------------------------------------------------------------------------------
Total $46,279
===============================================================================================
-----------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
-----------------------------------------------------------------------------------------------
EUR 1,006,327 USD 1,129,468 Citibank NA 10/26/16 $ (2,576)
EUR 3,054,681 USD 3,427,380 JPMorgan 10/26/16 (8,912)
Chase Bank NA
-----------------------------------------------------------------------------------------------
Total $(11,488)
===============================================================================================
EUR Euro
GBP Great British Pound
5. 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
58 Pioneer High Income Trust | Semiannual Report | 9/30/16
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.
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 "Restricted
Cash". 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, 2016:
-------------------------------------------------------------------------------------------------
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)
-------------------------------------------------------------------------------------------------
Citibank NA $ 46,279 $ (2,576) $-- $ -- $ 43,703
JP Morgan Chase Bank NA 184,226 (8,912) -- (175,314) --
-------------------------------------------------------------------------------------------------
Total $230,505 $(11,488) $-- $(175,314) $ 43,703
=================================================================================================
Pioneer High Income Trust | Semiannual Report | 9/30/16 59
-------------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Liabilities (c)
-------------------------------------------------------------------------------------------------
Citibank NA $ 2,576 $ (2,576) $-- $-- $--
JP Morgan Chase Bank NA 8,912 (8,912) -- -- --
-------------------------------------------------------------------------------------------------
Total $11,488 $(11,488) $-- $-- $--
=================================================================================================
(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.
6. 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.
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, 2016 was as follows:
60 Pioneer High Income Trust | Semiannual Report | 9/30/16
-------------------------------------------------------------------------------------------
Statement of Assets and Liabilities
Interest Credit Foreign Equity Commodity
Rate Risk Risk Exchange Risk Risk Risk
-------------------------------------------------------------------------------------------
Assets:
Unrealized
appreciation on
credit default swap $ -- $184,226 $ -- $-- $--
Unrealized
appreciation on
forward foreign
currency contracts -- -- 46,279 -- --
-------------------------------------------------------------------------------------------
Total Value $ -- $184,226 $ 46,279 $-- $--
===========================================================================================
Liabilities:
Unrealized
depreciation on
centrally cleared
interest rate swap $ (536,481) $ -- $ -- $-- $--
Unrealized
depreciation on
forward foreign
currency contracts -- -- (11,488) -- --
-------------------------------------------------------------------------------------------
Total Value $ (536,481) $ -- $ (11,488) $-- $--
===========================================================================================
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, 2016 was as follows:
-------------------------------------------------------------------------------------------
Statement of Operations
Interest Credit Foreign Equity Commodity
Rate Risk Risk Exchange Risk Risk Risk
-------------------------------------------------------------------------------------------
Net realized
gain (loss):
Swap contracts $ (107,418) $ 50,833 $ -- $-- $--
Forward foreign
currency contracts* -- -- 4,886 -- --
-------------------------------------------------------------------------------------------
Total Value $ (107,418) $ 50,833 $ 4,886 $-- $--
===========================================================================================
Change in net
unrealized
appreciation
(depreciation) on:
Swap contracts $ 44,020 $ (44,956) $ -- $-- $--
Forward foreign
currency contracts* -- -- 217,771 -- --
-------------------------------------------------------------------------------------------
Total Value $ 44,020 $ (44,956) $ 217,771 $-- $--
===========================================================================================
* Included in the amount shown on the Statement of Operations as forward
foreign currency contracts and other assets and liabilities denominated in
foreign currencies.
Pioneer High Income Trust | Semiannual Report | 9/30/16 61
7. Trust Shares
Transactions in shares of beneficial interest for the six months ended September
30, 2016 and the year ended March 31, 2016 were as follows:
--------------------------------------------------------------------------------
9/30/16 3/31/16
--------------------------------------------------------------------------------
Shares outstanding at beginning of period 29,113,714 28,950,654
Reinvestment of distributions 118,057 163,060
--------------------------------------------------------------------------------
Shares outstanding at end of period 29,231,771 29,113,714
================================================================================
8. Credit Agreement
The Trust has entered into a Revolving Credit Facility (the Credit Agreement)
agreement with Credit Suisse. Loans under the credit agreement are 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, 2016, the Trust had a borrowing outstanding under the credit
agreement totaling $125,000,000. The interest rate charged at September 30, 2016
was 2.57%. During the six months ended September 30, 2016, the average daily
balance was $125,000,000 at an average interest rate of 2.48%. Interest expense
of $1,572,602 in connection with the credit agreement is included in the
Statement of Operations.
The Trust is required to fully collateralize its outstanding loan balance as
determined by Credit Suisse. Pledged assets are held in a segregated account and
are denoted in the Schedule of Investments.
The Trust is required to maintain 300% asset coverage with respect to amounts
outstanding under the credit agreement. Asset coverage is calculated by
subtracting the Trust's total liabilities not including any bank loans and
senior securities, from the Trust's total assets and dividing such amount by the
principal amount of the borrowing outstanding.
9. Subsequent Events
A monthly dividend was declared on October 4, 2016 from undistributed and
accumulated net investment income of $0.0850 per share payable October 31, 2016,
to shareowners of record on October 18, 2016.
62 Pioneer High Income Trust | Semiannual Report | 9/30/16
ADDITIONAL INFORMATION (unaudited)
During the period, there have been no material changes in the Trust's investment
objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust 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 shares
in the open market.
Results of Shareholder Meeting
At the annual meeting of shareowners held on September 20, 2016, 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 II Trustees.
--------------------------------------------------------------------------------
Nominee For Withheld
--------------------------------------------------------------------------------
Class II
Lisa M. Jones 24,772,845.975 1,327,404.014
Lorraine H. Monchak 24,745,634.863 1,354,615.126
David R. Bock 24,899,130.885 1,201,119.104
Pioneer High Income Trust | Semiannual Report | 9/30/16 63
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 2016 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 2016 and May
2016. 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 2016, 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 May 2016,
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 July and
September 2016.
At a meeting held on September 13, 2016, 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.
64 Pioneer High Income Trust | Semiannual Report | 9/30/16
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. It was noted that the Trust's recent
performance was improved relative to its peer group and benchmark index. The
Trustees' regular reviews and discussions, including the steps taken by PIM to
address the Fund's performance, were factored into the Trustees' deliberations
concerning the renewal of the 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
Pioneer High Income Trust | Semiannual Report | 9/30/16 65
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
66 Pioneer High Income Trust | Semiannual Report | 9/30/16
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.
Pioneer High Income Trust | Semiannual Report | 9/30/16 67
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.
68 Pioneer High Income Trust | Semiannual Report | 9/30/16
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
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) 2016 Pioneer Investments 19432-10-1116
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.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the 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 28, 2016
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 28, 2016
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date November 28, 2016
* Print the name and title of each signing officer under his or her signature.