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, 2017 through September 30, 2017
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, 2017
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Ticker Symbol: PHT
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Schedule of Investments 13
Financial Statements 41
Notes to Financial Statements 47
Additional Information 64
Trustees, Officers and Service Providers 67
Pioneer High Income Trust | Semiannual Report | 9/30/17 1
President's Letter
Robust, synchronized global economic growth and rising corporate profits have
continued to drive strong performance in both the credit and equity markets for
most of 2017. U.S. stocks, as measured by the Standard & Poor's 500 Index, have
returned 14.23% year-to-date through September 30, 2017. Fixed-income markets,
while not generating the same dazzling returns as equities, have held their own,
led by high-yield securities, which produced a year-to-date return of 7.05% in
the U.S., as measured by the Bank of America Merrill Lynch U.S. High Yield
Index. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index has returned
3.14% since the start of the calendar year.
Continued strong employment numbers and higher consumer confidence, together
with solid global economic growth and a depreciating U.S. dollar contributed to
better-than-expected U.S. gross domestic product (GDP) growth of 3.1% in the
second quarter. Outside the U.S., economic growth in the second quarter also
surprised to the upside across the Euro zone, China, and Japan. Meanwhile,
despite higher oil and commodities prices, inflation continued to be moderate,
both in the U.S. and globally, enabling major non-U.S. central banks to maintain
their easy monetary policies. As expected, however, the U.S. Federal Reserve
System (the Fed) recently announced that it would commence tapering its balance
sheet this October. The Fed also appears primed to raise interest rates one more
time before the end of this year, which would be the fourth rate increase since
December of 2016.
As we move into the final months of 2017, we believe the U.S. economy will
experience modest growth in the short term, depending on the mix of economic
policies enacted as the country moves away from monetary stimulus (driven by the
Fed) and toward fiscal stimulus (potentially including tax reform) as well as
lighter regulatory burdens. Meanwhile, corporate earnings remain solid and we
think they will improve even further, despite some pressure from wage increases.
In addition, as the economy continues to grow and we begin to see a modest
upturn in inflation, we believe the Fed will continue to raise interest rates.
While economic and market conditions appear solid, there are always risks to
consider that could dampen the outlook. Geopolitical concerns, such as increased
tensions with North Korea, and continued political gridlock in Washington are
just some of the risks that could lead to increased market volatility.
2 Pioneer High Income Trust | Semiannual Report | 9/30/17
It is for those reasons that we at Amundi Pioneer continue to believe that
investors can benefit from the experience and tenure of our investment teams who
make active and informed decisions across our funds.
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
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
September 30, 2017
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 | 9/30/17 3
Portfolio Management Discussion | 9/30/17
High-yield bonds and other credit-sensitive securities produced healthy,
positive results during the six-month period ended September 30, 2017. 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, Co-Director of High Yield, a senior vice president, and a portfolio
manager at Amundi Pioneer Asset Management, is responsible for the daily
management of the Trust.
Q How did the Trust perform during the six-month period ended September 30,
2017?
A Pioneer High Income Trust returned 5.42% at net asset value (NAV) and 5.54%
at market price during the six-month period ended September 30, 2017.
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 4.22% at NAV. The BofA ML Index is an unmanaged, commonly accepted
measure of the performance of high-yield securities. Unlike the Trust, the
BofA ML Index does not use leverage. While the use of leverage increases
investment opportunity, it also increases investment risk.
During the same six-month period, the average return (at market price) of
the 31 closed end funds in Lipper's High Yield Closed End Funds category
(which may or may not be leveraged) was 7.34%, and the average return at
NAV of the 35 closed end funds in the same Lipper category was 4.09%.
The shares of the Trust were selling at a 7.64% discount to NAV on
September 30, 2017. Comparatively, the shares of the Trust were selling at
a 7.76% discount to NAV on March 31, 2017.
On September 30, 2017, the standardized 30-day SEC yield of the Trust's
shares was 8.21%*.
Q How would you describe the investment environment for high-yield debt
during the six-month period ended September 30, 2017?
A High-yield and more credit-sensitive sectors in general turned in solid,
albeit modest performance during the six-month period, propelled by steady
economic growth and very strong corporate earnings reports.
The most recent reports on growth in U.S. gross domestic product (GDP)
showed that the economy grew at a 3.1% annual pace in the second quarter of
2017, while corporate earnings in the first quarter were 14.9% higher than
a year earlier. Over the period, the U.S. Federal Reserve System (the Fed)
raised the Federal Funds rate just once, in June 2017, after enacting two
rate
* 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 | 9/30/17
hikes in the prior six months, with one more increase expected before the
end of the year. That was an indication that the Fed seemed committed to
acting with restraint in tightening monetary policy, although moving
towards a less-accommodative stance. However, the Fed did announce late in
the period that it was prepared to begin reducing its balance sheet by
limiting reinvestments in some of the holdings it had purchased during its
multiple quantitative-easing programs between 2008 and 2014. Several
geopolitical and domestic political factors that potentially could affect
the economy remained in the background during the six-month period, though
the heightened tensions between the United States and North Korea appeared
to pose the only imminent concern to the market.
In that environment, the yield-spread advantage of high-yield corporate
bonds over U.S. Treasuries narrowed, and high-yield securities outperformed
other fixed-income asset classes, with lower-rated credit in general
outperforming higher-rated debt. (Credit spreads are commonly defined as
the differences in yields between Treasuries and other types of
fixed-income securities with similar maturities.) Within the high-yield
market, for example, CCC-rated bonds outperformed BB-rated bonds. Returns,
however, mostly came from the coupons (or yield) of the securities, as
high-yield bond prices appreciated minimally, averaging about a 1% increase
for the full six months. The positive performance by high-yield debt
extended across a significant number of industry groups, though securities
issued by some retailers and wireline telecommunication operators lagged
the overall market.
Q What factors affected the Trust's performance relative to the benchmark
BofA ML Index during the six-month period ended September 30, 2017?
A The Trust's portfolio performed well during the period. Most of the Trust's
benchmark-relative outperformance derived from the use of leverage, or
borrowed funds, used to invest in the market. The use of leverage increases
the Trust's risk and has the effect of amplifying the magnitude of market
swings on the portfolio. Just as the use of leverage can exaggerate
negative Trust results during high-yield market slumps, the leverage used
by the Trust also enhances the gains realized when the high-yield market is
positive, as it was during the six-month period. Consistent with the
market, virtually all the high-yield bond investments in the Trusts'
portfolio fared well, with little dispersion of results from one industry
to another.
The Trust's heavy overweight to banks helped relative performance during
the period, with notable contributions coming from investments in
securities of the Royal Bank of Scotland, Bank of America, and the
subordinated debt of
Pioneer High Income Trust | Semiannual Report | 9/30/17 5
Intesa Sanpaolo, an Italian bank. Security selection was particularly
positive for the Trust in the energy sector, with debt holdings of refiner
Calumet and exploration-and-production company Extraction Oil & Gas
outperforming. Security selection also was strong for the Trust among
European holdings, with positions in Intralot, a global gaming company
offering sports betting and lottery products, performing well, as did a
position in the euro-denominated debt of Valeant Pharmaceuticals, a
Canadian pharmaceutical firm.
The Trust's small position in foreign currencies also had a positive impact
on benchmark-relative results as many foreign currencies appreciated
against the U.S. dollar during the period. On average, about 2.3% of the
Trust's total investment portfolio was denominated in foreign currency.
Individual positions that underperformed and detracted from the Trust's
benchmark-relative returns during the period included bonds of two wireline
telecommunications firms: Frontier and Windstream. Some security selections
in health care also struggled, with the debt of hospital chain Community
Health lagging due to problems related to the hurricanes that made landfall
in the U.S. in the latter part of the period. The debt of Kindred Health
Care, which provides home health care services and operates rehabilitation
centers, also underperformed and detracted from the Trust's
benchmark-relative results. In addition, the Trust's allocation to
insurance-linked securities fared poorly over the final two months of the
period, as two major earthquakes shook Mexico and three major hurricanes
made landfall in the United States or its territories, thus generating
numerous insurance claims. Finally, the Trust's cash position, at roughly
4% of the Trust's total investment portfolio, also held back
benchmark-relative performance.
Q Did the Trust's dividend distributions to shareholders change during the
six months ended September 30, 2017?
A The Trust's dividend** remained stable during the six months, but as yields
in the market continue to fall and we reinvest the Trust's assets in newer
securities, we inevitably are acquiring investments paying lower yields.
That has the potential to affect the Trust's future distributions.
Q How did the level of leverage in the Trust change during the six-month
period ended September 30, 2017?
A The Trust employs leverage through a credit agreement.
At the end of the six-month period on September 30, 2017, 28.3% of the
Trust's total managed assets were financed by leverage, or borrowed funds,
compared with 28.6% of the Trust's total managed assets financed by
** Dividends are not guaranteed.
6 Pioneer High Income Trust | Semiannual Report | 9/30/17
leverage at the start of the period on April 1, 2017. The absolute amount
of funds borrowed by the Trust did not change. The change in the percentage
of leveraged funds was the result of changes in the values of the Trust's
holdings.
Q Did the Trust have any investments in derivative securities during the
six-month period ended September 30, 2017? If so, did the investments have
a material effect on the Trust's performance?
A Yes, the Trust had investments in forward foreign currency transactions as
a hedge against the portfolio's currency exposures. The investments had a
slightly negative impact on relative performance during the six months.
Q What is your investment outlook?
A We expect the domestic economy to continue to grow at a modest pace. Up
until now, neither political nor governmental actions have affected the
economy's expansion, either positively or negatively. However, further
government de-regulation of the business environment and the possibility of
tax reform legislation becoming a reality could potentially help accelerate
economic growth and benefit risky securities. The major threat to this
growth scenario is that the Fed becomes more aggressive in tightening
monetary policy, which could restrain growth and impact market valuations.
However, as we noted earlier, the Fed has thus far acted with restraint,
and other major central banks, including the European Central Bank and the
Bank of Japan, have remained more accommodative. Meanwhile, the upcoming
Communist Party Congress in China will provide clues about future Chinese
policy.
As of period-end, risky assets are not cheap. Although the fundamental
backdrop for high-yield bonds remains extremely positive (with the default
rate expected to fall to 2%), high-yield bond prices are relatively high by
historical standards, as the market has already priced in a low default
rate. In the past year, credit-sensitive securities have shown remarkable
resilience, but the fear remains that the market could become complacent,
which could lead to a retreat in bond prices in the credit sectors. While
the Trust's portfolio remains overweighted in securities with credit risk,
we have reduced credit exposure and increased our cash position, which
would allow us to add risk if the market were to sell off.
Going forward, we intend to remain vigilant and to be prepared to adjust
the Trust's credit exposure in the event market and economic conditions
change. As always, we focus on credit research when picking the Fund's
investments by examining the fundamentals and risks of each individual
security.
Pioneer High Income Trust | Semiannual Report | 9/30/17 7
Please refer to the Schedule of Investments on pages 13-40 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.
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.
8 Pioneer High Income Trust | Semiannual Report | 9/30/17
Risks of investing in the Trust are discussed in greater detail in the Trust's
original offering documents relating to its common shares and shareowner reports
issued from time to time.
These risks may increase share price volatility.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer High Income Trust | Semiannual Report | 9/30/17 9
Portfolio Summary | 9/30/17
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 83.4%
Senior Secured Floating Rate Loan Interests 4.8%
Convertible Bonds & Notes 2.6%
Treasury Bills 1.8%
Preferred Stocks 1.7%
Repurchase Agreement 1.3%
Convertible Preferred Stocks 1.1%
Commercial Papers 0.9%
Sovereign Debt Obligations 0.9%
Commercial Mortgage-Backed Securities 0.5%
Common Stocks 0.4%
U.S. Government and Agency Obligations 0.3%
Collateralized Mortgage Obligations 0.2%
Asset Backed Securities 0.1%
Municipal Collateralized Debt Obligation 0.0%+
Right / Warrants 0.0%+
* Includes investments in Insurance Linked Securities totaling 2.2% 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. Hanover Insurance Corp., 7.625%, 10/15/25 1.54%
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2. Meritor, Inc., 7.875%, 3/1/26 1.47
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3. Liberty Mutual Group, Inc., 10.75% (3 Month USD LIBOR + 712 bps), 6/15/58 (144A) 1.20
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4. Bank of America Corp., 7.25% 1.04
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5. Calpine Corp., 5.75%, 1/15/25 1.03
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6. Basell Finance Co., BV, 8.1%, 3/15/27 (144A) 1.03
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7. Hercules, Inc., 6.5%, 6/30/29 0.96
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8. SIG Combibloc Holdings SCA, 7.75%, 2/15/23 (144A) 0.92
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9. Calumet Specialty Products Partners LP / Calumet Finance Corp., 6.5%, 4/15/21 0.90
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10. Rain CII Carbon LLC / CII Carbon Corp., 8.25%, 1/15/21 (144A) 0.90
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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.
10 Pioneer High Income Trust | Semiannual Report | 9/30/17
Prices and Distributions | 9/30/17
Market Value per Share^
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9/30/17 3/31/17
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Market Value $10.02 $9.87
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Premium/(Discount) (7.6)% (7.8)%
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Net Asset Value per Share^
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9/30/17 3/31/17
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Net Asset Value $10.85 $10.70
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Distributions per Share: 4/1/17 - 9/30/17
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Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
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$0.3900 $ -- $ --
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Yields
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9/30/17 3/31/17
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30-Day SEC Yield 8.21% 8.69%
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The data shown above represents past performance, which is no guarantee of
future results.
^ Net asset value and market value are published in Barron's on Saturday, The
Wall Street Journal on Monday and The New York Times on Monday and
Saturday. Net asset value and market value are published daily on the
Trust's website at www.amundipioneer.com.
Pioneer High Income Trust | Semiannual Report | 9/30/17 11
Performance Update | 9/30/17
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, 2017)
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Net BofA ML
Asset U.S. High
Value Market Yield
Period (NAV) Price Index
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10 years 8.28% 6.78% 7.72%
5 years 5.90 -2.11 6.38
1 year 13.54 3.65 9.06
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High BofA ML U.S.
Income Trust High Yield Index
9/07 $10,000 $10,000
9/08 $ 7,163 $ 8,836
9/09 $11,246 $10,812
9/10 $15,087 $12,813
9/11 $17,016 $12,983
9/12 $21,443 $15,441
9/13 $21,603 $16,537
9/14 $23,822 $17,732
9/15 $16,188 $17,100
9/16 $18,591 $19,292
9/17 $19,271 $21,040
Call 1-800-225-6292 or visit www.amundipioneer.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.
12 Pioneer High Income Trust | Semiannual Report | 9/30/17
Schedule of Investments | 9/30/17 (unaudited)
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Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS - 137.8%
ASSET BACKED SECURITIES -- 0.1% of
Net Assets
BANKS -- 0.1%
Thrifts & Mortgage Finance -- 0.1%
300,000 InSite Issuer LLC, Series 2016-1A, Class C, 6.414%,
11/15/46 (144A) $ 308,081
24,735(a) Security National Mortgage Loan Trust, Series 2007-1A,
Class 1A3, 6.55%, 4/25/37 (144A) 24,673
---------------
Total Banks $ 332,754
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TOTAL ASSET BACKED SECURITIES
(Cost $319,880) $ 332,754
--------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS --
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) $ 570,396
75,410 Homeowner Assistance Program Reverse Mortgage Loan
Trust, Series 2013-RM1, Class A, 4.0%, 5/26/53 (144A) 74,995
---------------
Total Diversified Financials $ 645,391
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TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $711,573) $ 645,391
--------------------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED
SECURITIES -- 0.7% of Net Assets
BANKS -- 0.5%
Thrifts & Mortgage Finance -- 0.5%
1,000,000(a) Citigroup Commercial Mortgage Trust, Series 2014-GC23,
Class E, 3.208%, 7/10/47 (144A) $ 643,948
389,860(b) GS Mortgage Securities Trust, Series 2014-GSFL, Class D,
5.134% (1 Month USD LIBOR + 390 bps), 7/15/31 (144A) 390,791
500,000(a) JPMBB Commercial Mortgage Securities Trust, Series
2014-C25, Class D, 4.095%, 11/15/47 (144A) 394,814
200,000 Morgan Stanley Bank of America Merrill Lynch Trust,
Series 2015-C25, Class D, 3.068%, 10/15/48 162,007
---------------
Total Banks $ 1,591,560
--------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.2%
Thrifts & Mortgage Finance -- 0.2%
700,000(b) CFCRE Mortgage Trust, Series 2015-RUM, Class E, 5.827%
(1 Month USD LIBOR + 460 bps), 7/15/30 (144A) $ 683,603
---------------
Total Diversified Financials $ 683,603
--------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES
(Cost $2,387,281) $ 2,275,163
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 13
Schedule of Investments | 9/30/17 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 6.6% of Net Assets* (b)
CAPITAL GOODS -- 1.1%
Aerospace & Defense -- 1.0%
2,133,875(c) ADS Tactical, Inc., Term Loan, 8.796% (LIBOR +
750 bps), 12/31/22 $ 2,133,875
878,910 DynCorp International, Inc., Term Loan B2, 7.750%
(LIBOR + 600 bps), 7/7/20 883,122
---------------
$ 3,016,997
--------------------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.1%
376,200 Blount International, Inc., Initial Term Loan, 6.242%
(LIBOR + 500 bps/PRIME + 400 bps), 4/12/23 $ 380,197
---------------
Total Capital Goods $ 3,397,194
--------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.2%
Education Services -- 0.2%
722,304 Cengage Learning Acquisitions, Inc., 2016 Refinancing
Term Loan, 5.485% (LIBOR + 425 bps), 6/7/23 $ 671,291
---------------
Total Consumer Services $ 671,291
--------------------------------------------------------------------------------------------------------------
ENERGY -- 1.3%
Oil & Gas Drilling -- 0.7%
1,345,000 Gavilan Resources LLC, Second Lien Initial Term Loan,
7.231% (LIBOR + 600 bps), 3/1/24 $ 1,301,287
1,050,500 Jonah Energy LLC, Second Lien Initial Term Loan, 9.750%
(PRIME + 550 bps), 5/12/21 1,050,829
---------------
$ 2,352,116
--------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.2%
500,000 Chesapeake Energy Corp., Term Loan Class A, 8.814%
(LIBOR + 750 bps), 8/23/21 $ 539,219
--------------------------------------------------------------------------------------------------------------
Pipeline -- 0.4%
1,361,588 Summit Midstream Partners Holdings LLC, Term Loan
Credit Facility, 7.235% (LIBOR + 600 bps), 5/13/22 $ 1,382,011
---------------
Total Energy $ 4,273,346
--------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.2%
Agricultural Products -- 0.2%
500,000 NVA Holdings, Inc., Second Lien Term Loan, 8.333%
(LIBOR + 700 bps), 8/14/22 $ 504,687
---------------
Total Food, Beverage & Tobacco $ 504,687
--------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.6%
Health Care Services -- 0.4%
992,405 HC Group Holdings III, Inc., First Lien Initial Term Loan,
6.317% (LIBOR + 500 bps), 4/7/22 $ 1,003,570
The accompanying notes are an integral part of these financial statements.
14 Pioneer High Income Trust | Semiannual Report | 9/30/17
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Health Care Services -- (continued)
198,492 nThrive, Inc. (fka Precyse Acquisition Corp.), Additional
Term B-2 Loan, 5.735% (LIBOR + 450 bps), 10/20/22 $ 199,702
---------------
$ 1,203,272
--------------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.2%
1,313,405(c) Medical Card System, Inc., Term Loan, 1.5% (LIBOR +
50 bps), 5/31/19 $ 853,713
---------------
Total Health Care Equipment & Services $ 2,056,985
--------------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.3%
Personal Products -- 0.3%
1,120,137 Revlon Consumer Products Corp., Initial Term B Loan,
4.735% (LIBOR + 350 bps), 9/7/23 $ 1,007,161
---------------
Total Household & Personal Products $ 1,007,161
--------------------------------------------------------------------------------------------------------------
INSURANCE -- 0.6%
Property & Casualty Insurance -- 0.6%
1,885,452 Confie Seguros Holding II Co., Second Lien Term Loan,
10.985% (LIBOR + 975 bps), 5/8/19 $ 1,852,457
---------------
Total Insurance $ 1,852,457
--------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.5%
Diversified Metals & Mining -- 0.0%+
126,586(e)(f) PT Bakrie & Brothers Tbk, Facility Term Loan B,
8.152%, 1/13/18 $ 13,292
--------------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.4%
1,237,138 Caraustar Industries, Inc., Refinancing Term Loan,
6.833% (LIBOR + 550 bps), 3/14/22 $ 1,239,845
--------------------------------------------------------------------------------------------------------------
Paper Products -- 0.1%
344,899 Ranpak Corp., Second Lien Initial Term Loan, 8.484%
(LIBOR + 725 bps), 10/3/22 $ 343,174
---------------
Total Materials $ 1,596,311
--------------------------------------------------------------------------------------------------------------
MEDIA -- 1.2%
Movies & Environment -- 0.3%
787,500 Redbox Automated Retail LLC, First Lien Term B Loan,
8.735% (LIBOR + 750 bps), 9/27/21 $ 792,422
--------------------------------------------------------------------------------------------------------------
Publishing -- 0.9%
79,455 Lee Enterprises, Inc., First Lien Term Loan, 7.485%
(LIBOR + 625 bps), 3/31/19 $ 79,853
2,789,688 McGraw-Hill Global Education Holdings LLC, First Lien
Term B Loan, 5.235% (LIBOR + 400 bps), 5/4/22 2,744,645
---------------
$ 2,824,498
---------------
Total Media $ 3,616,920
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 15
Schedule of Investments | 9/30/17 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.2%
Life Sciences Tools & Services -- 0.2%
500,000 Albany Molecular Research, Inc., Second Lien Initial
Term Loan, 8.333% (LIBOR + 700 bps), 8/30/25 $ 507,657
---------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 507,657
--------------------------------------------------------------------------------------------------------------
RETAILING -- 0.3%
Automotive Retail -- 0.3%
985,355 CWGS Group LLC, Term Loan, 4.981% (LIBOR +
375 bps), 11/8/23 $ 991,637
---------------
Total Retailing $ 991,637
--------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.1%
Application Software -- 0.1%
500,000 STG-Fairway Acquisitions, Inc., First Lien Term Loan,
6.583% (LIBOR + 525 bps), 6/30/22 $ 487,500
---------------
Total Software & Services $ 487,500
--------------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE
LOAN INTERESTS
(Cost $21,403,685) $ 20,963,146
--------------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES -- 114.9% of
Net Assets
AUTOMOBILES & COMPONENTS -- 1.9%
Auto Parts & Equipment -- 1.0%
EUR 360,000(g) IHO Verwaltungs GmbH, 3.25% (4.0% PIK 0.0% cash),
9/15/23 (144A) $ 441,828
EUR 840,000(g) IHO Verwaltungs GmbH, 3.75% (4.5% PIK 0.0% cash),
9/15/26 (144A) 1,049,571
1,744,000 International Automotive Components Group SA,
9.125%, 6/1/18 (144A) 1,744,000
---------------
$ 3,235,399
--------------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.9%
600,000 Dana Financing Luxembourg S.a.r.l., 5.75%,
4/15/25 (144A) $ 632,625
2,020,000 TI Group Automotive Systems LLC, 8.75%, 7/15/23 (144A) 2,141,200
---------------
$ 2,773,825
---------------
Total Automobiles & Components $ 6,009,224
--------------------------------------------------------------------------------------------------------------
BANKS -- 3.8%
Diversified Banks -- 2.7%
1,200,000 Access Bank Plc, 10.5%, 10/19/21 (144A) $ 1,325,544
200,000(a) Banco Nacional de Comercio Exterior SNC, 3.8% (5 Year
U.S. Treasury Yield Curve Rate T Note Constant maturity +
300 bps), 8/11/26 (144A) 200,250
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Trust | Semiannual Report | 9/30/17
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Diversified Banks -- (continued)
600,000(a)(h) Bank of America Corp., 6.5% (3 Month USD
LIBOR + 417 bps) $ 678,375
1,239,000(a)(h) Goldman Sachs Capital II, 4.0% (3 Month USD
LIBOR + 77 bps) 1,112,002
675,000(a)(h) Intesa Sanpaolo S.p.A., 7.7% (5 Year USD Swap
Semi Annual 30/360 + 546 bps) (144A) 704,531
ARS 12,142,000(i) Letras del Banco Central de la Republica Argentina, 4/18/18 609,403
200,000(a)(h) Royal Bank of Scotland Group Plc, 7.5% (5 Year USD
Swap Semi Annual 30/360 + 580 bps) 209,450
2,250,000(a)(h) Royal Bank of Scotland Group Plc, 8.625% (5 Year USD
Swap Semi Annual 30/360 + 760 bps) 2,494,688
980,000(a)(h) Societe Generale SA, 7.375% (5 Year USD Swap Semi
Annual 30/360 + 624 bps) (144A) 1,060,850
---------------
$ 8,395,093
--------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.1%
3,415,000 Provident Funding Associates LP / PFG Finance Corp.,
6.375%, 6/15/25 (144A) $ 3,585,750
---------------
Total Banks $ 11,980,843
--------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 3.8%
Aerospace & Defense -- 0.4%
1,085,000 Engility Corp., 8.875%, 9/1/24 $ 1,190,788
--------------------------------------------------------------------------------------------------------------
Agricultural & Farm Machinery -- 0.6%
1,890,000 Titan International, Inc., 6.875%, 10/1/20 $ 1,947,645
--------------------------------------------------------------------------------------------------------------
Building Products -- 0.1%
400,000 Griffon Corp., 5.25%, 3/1/22 $ 406,000
--------------------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.4%
486,498(g) Abengoa Abenewco 2 SAU, 1.5% (1.25% PIK 0.0%
cash), 3/31/23 (144A) $ 51,082
975,000 Tutor Perini Corp., 6.875%, 5/1/25 (144A) 1,057,875
---------------
$ 1,108,957
--------------------------------------------------------------------------------------------------------------
Construction Machinery & Heavy Trucks -- 0.1%
330,000 Meritor, Inc., 6.25%, 2/15/24 $ 351,038
--------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.8%
1,050,000 CSVC Acquisition Corp., 7.75%, 6/15/25 (144A) $ 1,029,000
1,070,000 JB Poindexter & Co., Inc., 9.0%, 4/1/22 (144A) 1,118,150
335,000 Park-Ohio Industries, Inc., 6.625%, 4/15/27 360,962
---------------
$ 2,508,112
--------------------------------------------------------------------------------------------------------------
Industrial Machinery -- 1.4%
2,050,000 Apex Tool Group LLC, 7.0%, 2/1/21 (144A) $ 1,896,250
2,010,000 Cleaver-Brooks, Inc., 8.75%, 12/15/19 (144A) 2,060,250
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 17
Schedule of Investments | 9/30/17 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Industrial Machinery -- (continued)
500,000 EnPro Industries, Inc., 5.875%, 9/15/22 (144A) $ 521,875
---------------
$ 4,478,375
---------------
Total Capital Goods $ 11,990,915
--------------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 0.5%
Commercial Printing -- 0.1%
517,000 Cenveo Corp., 6.0%, 8/1/19 (144A) $ 409,723
--------------------------------------------------------------------------------------------------------------
Security & Alarm Services -- 0.4%
1,015,000 Prime Security Services Borrower LLC / Prime Finance,
Inc., 9.25%, 5/15/23 (144A) $ 1,120,113
---------------
Total Commercial & Professional Services $ 1,529,836
--------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 3.6%
Homebuilding -- 2.8%
475,000 Beazer Homes USA, Inc., 6.75%, 3/15/25 $ 500,222
1,235,000 Beazer Homes USA, Inc., 8.75%, 3/15/22 1,365,138
800,000 Brookfield Residential Properties, Inc., 6.375%,
5/15/25 (144A) 842,000
1,500,000 KB Home, 7.0%, 12/15/21 1,683,750
790,000 KB Home, 7.5%, 9/15/22 904,550
1,035,000 KB Home, 7.625%, 5/15/23 1,179,900
1,975,000 Rialto Holdings LLC / Rialto Corp., 7.0%, 12/1/18 (144A) 1,989,813
565,000 Taylor Morrison Communities, Inc. / Taylor Morrison
Holdings II, Inc., 5.625%, 3/1/24 (144A) 587,600
---------------
$ 9,052,973
--------------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 0.1%
185,000 American Greetings Corp., 7.875%, 2/15/25 (144A) $ 200,263
--------------------------------------------------------------------------------------------------------------
Textiles -- 0.7%
2,220,000 Springs Industries, Inc., 6.25%, 6/1/21 $ 2,289,375
---------------
Total Consumer Durables & Apparel $ 11,542,611
--------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 8.1%
Casinos & Gaming -- 4.4%
415,000 Codere Finance 2 Luxembourg SA, 7.625%, 11/1/21 (144A) $ 421,308
1,325,000 Eldorado Resorts, Inc., 6.0%, 4/1/25 1,391,250
1,890,000 Golden Nugget, Inc., 8.75%, 10/1/25 (144A) 1,923,075
EUR 1,575,000 Intralot Capital Luxembourg SA, 6.75%, 9/15/21 (144A) 1,988,881
751,280(e)(g) Mashantucket Western Pequot Tribe, 6.5% (5.5% PIK
1.0% cash), 7/1/36 3,756
1,700,000 MGM Resorts International, 6.0%, 3/15/23 1,874,250
1,225,000 Scientific Games International, Inc., 6.25%, 9/1/20 1,240,312
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Trust | Semiannual Report | 9/30/17
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Casinos & Gaming -- (continued)
2,350,000 Scientific Games International, Inc., 6.625%, 5/15/21 $ 2,408,750
2,565,000 Scientific Games International, Inc., 10.0%, 12/1/22 2,840,738
---------------
$ 14,092,320
--------------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 1.6%
680,000 Hilton Grand Vacations Borrower LLC / Hilton Grand
Vacations Borrower, Inc., 6.125%, 12/1/24 (144A) $ 745,620
540,000 Silversea Cruise Finance, Ltd., 7.25%, 2/1/25 (144A) 577,800
723,000 Viking Cruises Ltd., 5.875%, 9/15/27 (144A) 725,494
2,790,000 Viking Cruises, Ltd., 6.25%, 5/15/25 (144A) 2,877,188
---------------
$ 4,926,102
--------------------------------------------------------------------------------------------------------------
Restaurants -- 1.0%
1,045,000 Landry's, Inc., 6.75%, 10/15/24 (144A) $ 1,056,756
2,000,000 PF Chang's China Bistro, Inc., 10.25%, 6/30/20 (144A) 1,955,000
---------------
$ 3,011,756
--------------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 1.1%
1,795,000 Monitronics International, Inc., 9.125%, 4/1/20 $ 1,597,550
2,010,000 StoneMor Partners LP / Cornerstone Family Services of WV,
7.875%, 6/1/21 1,929,600
---------------
$ 3,527,150
---------------
Total Consumer Services $ 25,557,328
--------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.7%
Consumer Finance -- 1.3%
1,030,000 Jefferies Finance LLC / JFIN Co-Issuer Corp., 7.375%,
4/1/20 (144A) $ 1,062,187
735,000 Navient Corp., 6.625%, 7/26/21 786,450
500,000 Quicken Loans, Inc., 5.75%, 5/1/25 (144A) 525,000
1,720,000 TMX Finance LLC / TitleMax Finance Corp., 8.5%,
9/15/18 (144A) 1,591,000
---------------
$ 3,964,637
--------------------------------------------------------------------------------------------------------------
Diversified Capital Markets -- 0.2%
700,000(a)(h) Credit Suisse Group AG, 7.5% (5 Year USD Swap
Rate + 460 bps) (144A) $ 791,007
--------------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 1.0%
3,000,000(c)(j) Fixed Income Trust Series 2013-A, 0.0%,
10/15/97 (144A) $ 3,231,298
--------------------------------------------------------------------------------------------------------------
Specialized Finance -- 1.1%
425,000 Nationstar Mortgage LLC / Nationstar Capital Corp.,
6.5%, 7/1/21 $ 433,500
2,845,000 Nationstar Mortgage LLC / Nationstar Capital Corp.,
6.5%, 6/1/22 2,923,238
---------------
$ 3,356,738
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 19
Schedule of Investments | 9/30/17 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Supranational -- 0.1%
IDR 5,800,000,000 European Investment Bank, 7.2%, 7/9/19 (144A) $ 438,615
---------------
Total Diversified Financials $ 11,782,295
--------------------------------------------------------------------------------------------------------------
ENERGY -- 24.1%
Integrated Oil & Gas -- 0.8%
305,000 Ascent Resources Utica Holdings LLC / ARU Finance
Corp., 10.0%, 4/1/22 (144A) $ 327,112
650,000 Petrobras Global Finance BV, 7.375%, 1/17/27 715,650
750,000 YPF SA, 8.875%, 12/19/18 (144A) 801,000
ARS 15,750,000 YPF SA, 16.5%, 5/9/22 (144A) 854,853
---------------
$ 2,698,615
--------------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 1.6%
280,000 Rowan Cos., Inc., 4.875%, 6/1/22 $ 262,500
2,434,000 Rowan Cos., Inc., 5.4%, 12/1/42 1,849,840
131,000 Rowan Cos., Inc., 5.85%, 1/15/44 104,145
1,630,711 Shelf Drilling Holdings, Ltd., 9.5%, 11/2/20 (144A) 1,649,056
1,150,000 Trinidad Drilling, Ltd., 6.625%, 2/15/25 (144A) 1,075,250
---------------
$ 4,940,791
--------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 1.1%
1,308,000 Archrock Partners LP / Archrock Partners Finance Corp.,
6.0%, 4/1/21 $ 1,281,840
690,000 Archrock Partners LP / Archrock Partners Finance Corp.,
6.0%, 10/1/22 671,025
1,020,000 McDermott International, Inc., 8.0%, 5/1/21 (144A) 1,053,150
350,000 SESI LLC, 7.75%, 9/15/24 (144A) 362,250
---------------
$ 3,368,265
--------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 10.8%
900,000 Alta Mesa Holdings LP / Alta Mesa Finance Services
Corp., 7.875%, 12/15/24 (144A) $ 972,000
1,750,000 California Resources Corp., 8.0%, 12/15/22 (144A) 1,137,500
525,000 Carrizo Oil & Gas, Inc., 7.5%, 9/15/20 536,156
502,000 Chesapeake Energy Corp., 8.0%, 12/15/22 (144A) 540,905
1,000,000 Extraction Oil & Gas, Inc., 7.375%, 5/15/24 (144A) 1,040,000
860,000 Extraction Oil & Gas, Inc. / Extraction Finance Corp.,
7.875%, 7/15/21 (144A) 907,300
1,220,000 Great Western Petroleum LLC / Great Western Finance,
Inc., 9.0%, 9/30/21 (144A) 1,227,625
1,570,000 Gulfport Energy Corp., 6.0%, 10/15/24 1,581,775
1,000,000 Gulfport Energy Corp., 6.375%, 5/15/25 1,012,500
600,000 Halcon Resources Corp., 6.75%, 2/15/25 (144A) 621,000
2,035,000 Halcon Resources Corp., 12.0%, 2/15/22 (144A) 2,452,175
300,000 MEG Energy Corp., 6.5%, 1/15/25 (144A) 292,875
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Trust | Semiannual Report | 9/30/17
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- (continued)
2,450,000 MEG Energy Corp., 7.0%, 3/31/24 (144A) $ 2,100,876
330,000 Murphy Oil Corp., 6.875%, 8/15/24 351,859
2,175,000 Nostrum Oil & Gas Finance BV, 8.0%, 7/25/22 (144A) 2,269,708
1,185,000 Oasis Petroleum, Inc., 6.875%, 3/15/22 1,205,737
2,006,433(g) PetroQuest Energy, Inc., 10.0% (9.0% PIK 1.0%
cash), 2/15/21 1,504,825
1,800,000 Rice Energy, Inc., 6.25%, 5/1/22 1,881,000
2,935,000 Sanchez Energy Corp., 7.75%, 6/15/21 2,780,913
3,000,000 Seven Generations Energy, Ltd., 8.25%, 5/15/20 (144A) 3,135,000
2,083,000 SM Energy Co., 6.5%, 1/1/23 2,098,622
625,000 Whiting Petroleum Corp., 5.0%, 3/15/19 625,188
2,015,000 Whiting Petroleum Corp., 5.75%, 3/15/21 1,979,738
950,000 WPX Energy, Inc., 7.5%, 8/1/20 1,033,125
995,000 WPX Energy, Inc., 8.25%, 8/1/23 1,115,644
---------------
$ 34,404,046
--------------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 2.1%
3,859,000 Calumet Specialty Products Partners LP / Calumet Finance
Corp., 6.5%, 4/15/21 $ 3,769,761
750,000 Calumet Specialty Products Partners LP / Calumet Finance
Corp., 7.75%, 4/15/23 733,125
366,316(b) EP PetroEcuador via Noble Sovereign Funding I, Ltd.,
6.961% (3 Month USD LIBOR + 563 bps), 9/24/19 368,147
1,350,000 PBF Holding Co. LLC / PBF Finance Corp., 7.0%, 11/15/23 1,388,812
385,000 PBF Logistics LP / PBF Logistics Finance Corp.,
6.875%, 5/15/23 395,588
---------------
$ 6,655,433
--------------------------------------------------------------------------------------------------------------
Oil & Gas Services & Equipment -- 0.2%
635,000 Exterran Energy Solutions LP / EES Finance Corp.,
8.125%, 5/1/25 (144A) $ 657,225
--------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 7.5%
1,145,000 Blue Racer Midstream LLC / Blue Racer Finance Corp.,
6.125%, 11/15/22 (144A) $ 1,187,937
250,000 Cheniere Corpus Christi Holdings LLC, 7.0%, 6/30/24 285,000
875,000 Crestwood Midstream Partners LP / Crestwood
Midstream Finance Corp., 6.25%, 4/1/23 902,344
910,000 DCP Midstream Operating LP, 5.6%, 4/1/44 848,575
1,210,000 Delek Logistics Partners LP, 6.75%, 5/15/25 (144A) 1,219,075
1,524,000(b) Energy Transfer LP, 4.328% (3 Month USD LIBOR +
302 bps), 11/1/66 1,375,410
248,000 EnLink Midstream Partners LP, 5.05%, 4/1/45 238,929
717,000 EnLink Midstream Partners LP, 5.6%, 4/1/44 738,506
350,000(a) Enterprise Products Operating LLC, 5.018% (3 Month USD
LIBOR + 371 bps), 8/1/66 350,175
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 21
Schedule of Investments | 9/30/17 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- (continued)
766,000 Genesis Energy LP / Genesis Energy Finance Corp.,
6.5%, 10/1/25 $ 757,383
2,500,000 Genesis Energy LP / Genesis Energy Finance Corp.,
6.75%, 8/1/22 2,556,250
1,410,000 Global Partners LP / GLP Finance Corp., 6.25%, 7/15/22 1,427,625
2,175,000 Global Partners LP / GLP Finance Corp., 7.0%, 6/15/23 2,185,875
1,850,000 ONEOK, Inc., 6.875%, 9/30/28 2,152,993
2,500,000 Sunoco LP / Sunoco Finance Corp., 6.375%, 4/1/23 2,656,250
360,000 Targa Resources Partners LP / Targa Resources Partners
Finance Corp., 4.125%, 11/15/19 363,600
1,185,000 Western Refining Logistics LP / WNRL Finance Corp.,
7.5%, 2/15/23 1,267,950
3,040,000 Williams Cos., Inc., 5.75%, 6/24/44 3,214,800
---------------
$ 23,728,677
---------------
Total Energy $ 76,453,052
--------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.6%
Food Retail -- 0.6%
950,000 C&S Group Enterprises LLC, 5.375%, 7/15/22 (144A) $ 940,500
434,059(e) Tonon Luxembourg SA, 10.5%, 5/14/24 (144A) 177,964
805,000 Tops Holding LLC / Tops Markets II Corp., 8.0%,
6/15/22 (144A) 535,325
---------------
Total Food & Staples Retailing $ 1,653,789
--------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 5.7%
Agricultural Products -- 0.3%
1,037,796 Pinnacle Operating Corp., 9.0%, 5/15/23 (144A) $ 980,717
--------------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 4.2%
840,000(e) CFG Investment SAC, 9.75%, 7/30/19 (144A) $ 846,300
1,240,000 Marfrig Holding Europe BV, 6.875%, 6/24/19 (144A) 1,277,200
750,000 Marfrig Holding Europe BV, 8.0%, 6/8/23 (144A) 775,837
1,000,000 Marfrig Holding Europe BV, 8.375%, 5/9/18 (144A) 1,030,000
1,200,000 Marfrig Holding Europe BV, 11.25%, 9/20/21 (144A) 1,194,000
1,240,000 Minerva Luxembourg SA, 6.5%, 9/20/26 (144A) 1,252,710
3,400,000 Minerva Luxembourg SA, 7.75%, 1/31/23 (144A) 3,548,750
1,250,000 Post Holdings, Inc., 5.0%, 8/15/26 (144A) 1,246,875
2,000,000 Post Holdings, Inc., 6.0%, 12/15/22 (144A) 2,095,000
---------------
$ 13,266,672
--------------------------------------------------------------------------------------------------------------
Soft Drinks -- 0.5%
1,625,000 Cott Beverages, Inc., 5.375%, 7/1/22 $ 1,694,063
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Trust | Semiannual Report | 9/30/17
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Tobacco -- 0.7%
340,000 Alliance One International, Inc., 8.5%, 4/15/21 (144A) $ 354,450
2,245,000 Alliance One International, Inc., 9.875%, 7/15/21 1,975,600
---------------
$ 2,330,050
---------------
Total Food, Beverage & Tobacco $ 18,271,502
--------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.2%
Health Care Facilities -- 4.2%
3,365,000 CHS/Community Health Systems, Inc., 6.875%, 2/1/22 $ 2,641,525
610,000 CHS/Community Health Systems, Inc., 8.0%, 11/15/19 593,988
2,400,000 Kindred Healthcare, Inc., 6.375%, 4/15/22 2,172,000
2,000,000 Kindred Healthcare, Inc., 8.0%, 1/15/20 1,964,380
2,540,000 RegionalCare Hospital Partners Holdings, Inc., 8.25%,
5/1/23 (144A) 2,670,175
360,000 Tenet Healthcare Corp., 7.5%, 1/1/22 (144A) 381,150
2,830,000 Universal Hospital Services, Inc., 7.625%, 8/15/20 2,865,375
---------------
$ 13,288,593
--------------------------------------------------------------------------------------------------------------
Health Care Services -- 1.0%
2,250,000 BioScrip, Inc., 8.875%, 2/15/21 $ 2,058,750
1,340,000 Team Health Holdings, Inc., 6.375%, 2/1/25 (144A) 1,269,650
---------------
$ 3,328,400
---------------
Total Health Care Equipment & Services $ 16,616,993
--------------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 1.0%
Personal Products -- 1.0%
250,000 Revlon Consumer Products Corp., 5.75%, 2/15/21 $ 218,125
3,925,000 Revlon Consumer Products Corp., 6.25%, 8/1/24 3,032,063
---------------
Total Household & Personal Products $ 3,250,188
--------------------------------------------------------------------------------------------------------------
INSURANCE -- 7.3%
Multi-Line Insurance -- 2.2%
3,075,000(a) Liberty Mutual Group, Inc., 10.75% (3 Month USD
LIBOR + 712 bps), 6/15/58 (144A) $ 5,043,000
1,100,000 MetLife, Inc., 10.75%, 8/1/39 1,839,750
---------------
$ 6,882,750
--------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 2.0%
5,300,000 Hanover Insurance Corp., 7.625%, 10/15/25 $ 6,471,347
265,000(a)(h) Sirius International Group, Ltd., 4.535% (3 Month USD
LIBOR + 320 bps) (144A) 264,735
---------------
$ 6,736,082
--------------------------------------------------------------------------------------------------------------
Reinsurance -- 3.1%
500,000(b) Alamo Re, Ltd., 5.862% (3 Month U.S. Treasury Bill +
481 bps), 6/7/18 (144A) (Cat Bond) $ 502,350
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 23
Schedule of Investments | 9/30/17 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
500,000(d)(k)(l) Arlington Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 8/1/18 $ 24,300
700,000(d)(k)(l) Carnoustie Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 12/31/17 14,280
700,000(d)(k)(l) Carnoustie Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 11/30/20 75,740
1,000,000(d)(k)(l) Carnoustie Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 11/30/21 835,400
500,000(d)(k)(l) Cyprus Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 1/10/18 431,050
1,000,000(d)(k)(l) Gullane Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 4/29/18 980,200
1,300,000(d)(k)(l) Gullane Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 11/30/20 28,340
750,000(b) Kilimanjaro Re, Ltd., 5.798% (3 Month U.S. Treasury Bill +
475 bps), 4/30/18 (144A) (Cat Bond) 748,125
250,000(b) Kilimanjaro Re, Ltd., Series 2015-1, Class D, 10.298%
(3 Month U.S. Treasury Bill + 925 bps), 12/6/19 (144A)
(Cat Bond) 243,375
250,000(b) Kilimanjaro Re, Ltd., Series 2015-1, Class E, 7.798%
(3 Month U.S. Treasury Bill + 675 bps), 12/6/19 (144A)
(Cat Bond) 252,150
250,000(d)(k)(l) Limestone Re, Ltd., Series 1, Class A Non Voting, 8/31/21 221,775
250,000(d)(k)(l) Limestone Re, Ltd., Series 1, Class A Voting, 8/31/21 221,775
800,000(d)(k)(l) Lorenz Re, Ltd. (Prime, Ltd.), Variable Rate Notes, 3/31/19 44,800
400,000(d)(k)(l) Lorenz Re, Ltd. (Prime, Ltd.), Variable Rate Notes, 3/31/20 376,880
1,000,000(d)(k)(l) Pangaea Re Segregated Account (Artex SAC, Ltd.),
Series 2015-1, Variable Rate Notes, 2/1/19 4,500
1,000,000(d)(k)(l) Pangaea Re Segregated Account (Artex SAC, Ltd.),
Series 2015-2, Variable Rate Notes, 7/1/19 10,400
1,200,000(d)(k)(l) Pangaea Re Segregated Account (Artex SAC, Ltd.),
Series 2016-1, Variable Rate Notes, 2/1/20 79,320
1,000,000(d)(k)(l) Pangaea Re Segregated Account (Artex SAC, Ltd.),
Series 2016-2, Variable Rate Notes, 11/30/20 65,800
500,000(d)(k)(l) Pangaea Re Segregated Account (Artex SAC, Ltd.),
Series 2017-1, Variable Rate Notes, 2/1/21 477,900
400,000(d)(k)(l) Resilience Re, Ltd., Variable Rate Notes, 4/6/18 353,240
400,000(d)(k)(l) Resilience Re, Ltd., Variable Rate Notes, 4/7/19 8,600
AUD 300,000(d)(k)(l) Rewire Securities LLC, Variable Rate Notes, 1/10/18 17,057
3,791(d)(k)(l) Sector Re V, Ltd. (Swiss Re), Series 5, Class C, Variable
Rate Notes, 12/1/20 (144A) 23,344
1,211(d)(k)(l) Sector Re V, Ltd. (Swiss Re), Series 6, Class A, Variable
Rate Notes, 3/1/21 (144A) 61,719
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Trust | Semiannual Report | 9/30/17
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
800,000(d)(k)(l) Sector Re V, Ltd. (Swiss Re), Series 6, Class D, Variable
Rate Notes, 12/1/21 (144A) $ 645,040
500,000(d)(k)(l) Sector Re V, Ltd. (Swiss Re), Series 7, Class G, Variable
Rate Notes, 3/1/22 (144A) 360,400
500,000(d)(k)(l) Silverton Re, Ltd. (Aon Benfield Securities, Inc.), Variable
Rate Notes, 9/17/18 (144A) 14,000
500,000(d)(k)(l) Silverton Re, Ltd. (Aon Benfield Securities, Inc.), Variable
Rate Notes, 9/16/19 (144A) 455,300
500,000(d)(k)(l) St. Andrews Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 12/31/17 9,850
500,000(d)(k)(l) St. Andrews Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 2/1/18 70,300
500,000(d)(k)(l) St. Andrews Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 2/1/19 485,050
500,000(b) Ursa Re, Ltd., 6.0% (ZERO + 600 bps), 5/27/20 (144A)
(Cat Bond) 499,600
1,250,000(d)(k)(l) Versutus, Ltd. (MMC Securities), Series 2016-A, Variable
Rate Notes, 11/30/20 53,250
1,000,000(d)(k)(l) Versutus, Ltd. (MMC Securities), Series 2017-A, Variable
Rate Notes, 11/30/21 990,200
---------------
$ 9,685,410
---------------
Total Insurance $ 23,304,242
--------------------------------------------------------------------------------------------------------------
MATERIALS -- 13.2%
Commodity Chemicals -- 3.3%
3,250,000 Basell Finance Co., BV, 8.1%, 3/15/27 (144A) $ 4,314,112
2,316,000 Rain CII Carbon LLC / CII Carbon Corp., 7.25%,
4/1/25 (144A) 2,443,380
3,625,000 Rain CII Carbon LLC / CII Carbon Corp., 8.25%,
1/15/21 (144A) 3,760,938
---------------
$ 10,518,430
--------------------------------------------------------------------------------------------------------------
Copper -- 1.3%
1,750,000 First Quantum Minerals, Ltd., 7.25%, 4/1/23 (144A) $ 1,802,500
2,420,000 Freeport-McMoRan, Inc., 3.55%, 3/1/22 2,382,950
---------------
$ 4,185,450
--------------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 1.3%
225,000 Alpha 3 BV / Alpha US Bidco, Inc., 6.25%, 2/1/25 (144A) $ 228,937
EUR 450,000 Avantor, Inc., 4.75%, 10/1/24 (144A) 540,912
754,000 Avantor, Inc., 6.0%, 10/1/24 (144A) 772,850
210,000 Blue Cube Spinco, Inc., 9.75%, 10/15/23 255,150
210,000 Blue Cube Spinco, Inc., 10.0%, 10/15/25 256,463
1,660,000 Evolution Escrow Issuer LLC, 7.5%, 3/15/22 (144A) 1,749,225
305,000 Platform Specialty Products Corp., 10.375%, 5/1/21 (144A) 332,450
---------------
$ 4,135,987
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 25
Schedule of Investments | 9/30/17 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.4%
281,589(g) Boart Longyear Management Pty, Ltd., 10.0% (12.0%
PIK 10.0% cash), 12/31/22 $ 244,982
725,000 FMG Resources August 2006 Pty, Ltd., 9.75%, 3/1/22 (144A) 815,262
600,000 Hudbay Minerals, Inc., 7.25%, 1/15/23 (144A) 639,000
750,000 Hudbay Minerals, Inc., 7.625%, 1/15/25 (144A) 811,890
1,410,000 Prince Mineral Holding Corp., 11.5%, 12/15/19 (144A) 1,466,400
145,000 Teck Resources, Ltd., 8.5%, 6/1/24 (144A) 166,388
340,000 Vale Overseas, Ltd., 6.25%, 8/10/26 385,798
---------------
$ 4,529,720
--------------------------------------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 0.2%
420,000 CVR Partners LP / CVR Nitrogen Finance Corp., 9.25%,
6/15/23 (144A) $ 447,300
--------------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 1.3%
EUR 400,000(g) ARD Finance SA, 6.625% (7.375% PIK 0.0% cash), 9/15/23 $ 503,340
400,000(g) ARD Finance SA, 7.125% (7.875% PIK 0.0% cash), 9/15/23 428,120
1,010,000 Ardagh Packaging Finance Plc / Ardagh Holdings USA, Inc.,
7.25%, 5/15/24 (144A) 1,107,839
1,085,000 Coveris Holdings SA, 7.875%, 11/1/19 (144A) 1,068,725
1,035,000 Reynolds Group Issuer, Inc., 7.0%, 7/15/24 (144A) 1,102,275
---------------
$ 4,210,299
--------------------------------------------------------------------------------------------------------------
Paper Packaging -- 1.8%
1,655,000 Eldorado International Finance GmbH, 8.625%,
6/16/21 (144A) $ 1,707,960
EUR 3,105,000 SIG Combibloc Holdings SCA, 7.75%, 2/15/23 (144A) 3,879,664
---------------
$ 5,587,624
--------------------------------------------------------------------------------------------------------------
Silver -- 0.5%
1,500,000 Coeur Mining, Inc., 5.875%, 6/1/24 $ 1,500,000
--------------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 1.0%
1,075,000 A Schulman, Inc., 6.875%, 6/1/23 $ 1,115,312
500,000 GCP Applied Technologies, Inc., 9.5%, 2/1/23 (144A) 565,000
1,400,000 Hexion US Finance Corp., 6.625%, 4/15/20 1,253,000
320,000 Koppers, Inc., 6.0%, 2/15/25 (144A) 344,000
---------------
$ 3,277,312
--------------------------------------------------------------------------------------------------------------
Steel -- 1.1%
1,240,000 Big River Steel LLC / BRS Finance Corp., 7.25%,
9/1/25 (144A) $ 1,315,640
460,000 SunCoke Energy Partners LP / SunCoke Energy Partners
Finance Corp., 7.5%, 6/15/25 (144A) 474,950
938,000 United States Steel Corp., 6.875%, 8/15/25 959,105
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Trust | Semiannual Report | 9/30/17
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Steel -- (continued)
635,000 Zekelman Industries, Inc., 9.875%, 6/15/23 (144A) $ 715,962
---------------
$ 3,465,657
---------------
Total Materials $ 41,857,779
--------------------------------------------------------------------------------------------------------------
MEDIA -- 3.6%
Advertising -- 0.8%
2,540,000 MDC Partners, Inc., 6.5%, 5/1/24 (144A) $ 2,559,050
--------------------------------------------------------------------------------------------------------------
Broadcasting -- 0.4%
535,000 CBS Radio, Inc., 7.25%, 11/1/24 (144A) $ 571,113
670,000 CSC Holdings LLC, 5.5%, 4/15/27 (144A) 696,800
---------------
$ 1,267,913
--------------------------------------------------------------------------------------------------------------
Cable & Satellite -- 1.4%
1,885,000 DISH DBS Corp., 7.75%, 7/1/26 $ 2,164,300
2,000,000 Hughes Satellite Systems Corp., 6.625%, 8/1/26 2,140,000
205,000 Intelsat Connect Finance SA, 12.5%, 4/1/22 (144A) 200,516
---------------
$ 4,504,816
--------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 1.0%
675,000 AMC Entertainment Holdings, Inc., 6.125%, 5/15/27 $ 666,562
1,400,000 Gibson Brands, Inc., 8.875%, 8/1/18 (144A) 1,127,000
1,115,000 Regal Entertainment Group, 5.75%, 2/1/25 1,128,938
---------------
$ 2,922,500
---------------
Total Media $ 11,254,279
--------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 3.3%
Pharmaceuticals -- 3.3%
1,695,000 Endo Finance LLC / Endo, Ltd. / Endo Finco, Inc., 6.0%,
7/15/23 (144A) $ 1,398,375
2,540,000 Endo Finance LLC / Endo, Ltd. / Endo Finco, Inc., 6.0%,
2/1/25 (144A) 2,057,400
145,000 Horizon Pharma, Inc. / Horizon Pharma USA, Inc., 8.75%,
11/1/24 (144A) 151,887
1,155,000 Horizon Pharma, Inc., 6.625%, 5/1/23 1,126,125
EUR 575,000 VRX Escrow Corp., 4.5%, 5/15/23 579,181
EUR 1,265,000 VRX Escrow Corp., 4.5%, 5/15/23 (144A) 1,274,198
3,130,000 VRX Escrow Corp., 5.875%, 5/15/23 (144A) 2,766,138
920,000 VRX Escrow Corp., 7.0%, 3/15/24 (144A) 982,183
250,000 West Street Merger Sub, Inc., 6.375%, 9/1/25 (144A) 248,750
---------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 10,584,237
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 27
Schedule of Investments | 9/30/17 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.3%
Specialized REITs -- 1.3%
1,020,041(g) AAF Holdings LLC / AAF Finance Co., 12.0% (12.75%
PIK 12.0% cash), 7/1/19 (144A) $ 1,065,943
3,480,000 Uniti Group, Inc. / CSL Capital LLC, 8.25%, 10/15/23 3,079,800
---------------
Total Real Estate $ 4,145,743
--------------------------------------------------------------------------------------------------------------
RETAILING -- 1.6%
Automotive Retail -- 0.5%
1,385,000 Asbury Automotive Group, Inc., 6.0%, 12/15/24 $ 1,447,325
--------------------------------------------------------------------------------------------------------------
Department Stores -- 1.1%
1,250,000 Argos Merger Sub, Inc., 5.875%, 6/1/25 (144A) $ 1,090,625
935,000 Argos Merger Sub, Inc., 7.125%, 3/15/23 (144A) 729,113
1,425,000 Argos Merger Sub, Inc., 8.875%, 6/1/25 (144A) 1,133,587
900,000 Neiman Marcus Group, Ltd., LLC, 8.0%, 10/15/21 (144A) 468,000
---------------
$ 3,421,325
---------------
Total Retailing $ 4,868,650
--------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.7%
Semiconductors -- 0.7%
425,000 Micron Technology, Inc., 5.5%, 2/1/25 $ 453,156
1,715,000 Micron Technology, Inc., 5.625%, 1/15/26 (144A) 1,821,330
---------------
Total Semiconductors & Semiconductor Equipment $ 2,274,486
--------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 2.1%
Data Processing & Outsourced Services -- 0.3%
805,000 First Data Corp., 7.0%, 12/1/23 (144A) $ 859,579
--------------------------------------------------------------------------------------------------------------
Internet Software & Services -- 0.6%
1,500,000 Cimpress NV, 7.0%, 4/1/22 (144A) $ 1,554,375
285,000 j2 Cloud Services LLC / j2 Global, Inc., 6.0%, 7/15/25 (144A) 298,181
---------------
$ 1,852,556
--------------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 1.2%
555,000 Dell International LLC / EMC Corp., 7.125%,
6/15/24 (144A) $ 613,178
3,005,000 Rackspace Hosting, Inc., 8.625%, 11/15/24 (144A) 3,206,636
---------------
$ 3,819,814
---------------
Total Software & Services $ 6,531,949
--------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.7%
Communications Equipment -- 0.6%
1,492,000 Avaya, Inc., 7.0%, 4/1/19 (144A) $ 1,260,740
645,000 CommScope Technologies LLC, 6.0%, 6/15/25 (144A) 689,344
---------------
$ 1,950,084
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Trust | Semiannual Report | 9/30/17
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.1%
213,000 Zebra Technologies Corp., 7.25%, 10/15/22 $ 225,514
--------------------------------------------------------------------------------------------------------------
Technology Hardware, Storage & Peripherals -- 1.0%
3,055,000 Diebold Nixdorf, Inc., 8.5%, 4/15/24 $ 3,311,681
---------------
Total Technology Hardware & Equipment $ 5,487,279
--------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 7.9%
Integrated Telecommunication Services -- 5.2%
1,075,000 CB Escrow Corp., 8.0%, 10/15/25 (144A) $ 1,080,375
3,500,000 CenturyLink, Inc., 5.625%, 4/1/25 3,351,250
600,000 Cincinnati Bell, Inc., 7.0%, 7/15/24 (144A) 588,000
2,890,000 Frontier Communications Corp., 7.125%, 1/15/23 2,218,075
1,300,000 Frontier Communications Corp., 10.5%, 9/15/22 1,127,750
1,330,000 Frontier Communications Corp., 11.0%, 9/15/25 1,127,175
1,975,000 GCI, Inc., 6.75%, 6/1/21 2,024,375
1,725,000 GCI, Inc., 6.875%, 4/15/25 1,854,375
4,200,000 Windstream Corp., 7.5%, 6/1/22 3,021,396
---------------
$ 16,392,771
--------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 2.7%
1,085,000 Altice Financing SA, 6.625%, 2/15/23 (144A) $ 1,150,100
300,000 Altice Finco SA, 8.125%, 1/15/24 (144A) 324,000
1,025,000 Digicel Group, Ltd., 8.25%, 9/30/20 (144A) 1,001,302
3,080,000 Sprint Corp., 7.125%, 6/15/24 3,465,000
2,150,000 Sprint Corp., 7.25%, 9/15/21 2,389,188
400,000 Unison Ground Lease Funding LLC, 5.78%, 3/15/20 (144A) 397,131
---------------
$ 8,726,721
---------------
Total Telecommunication Services $ 25,119,492
--------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 1.6%
Airlines -- 0.8%
280,000 Fly Leasing, Ltd., 6.375%, 10/15/21 $ 292,950
1,685,000 Intrepid Aviation Group Holdings LLC / Intrepid Finance
Co., 6.875%, 2/15/19 (144A) 1,653,406
600,000 United Continental Holdings, Inc., 6.375%, 6/1/18 614,700
---------------
$ 2,561,056
--------------------------------------------------------------------------------------------------------------
Marine -- 0.3%
1,025,000 Navios South American Logistics, Inc. / Navios Logistics
Finance US, Inc., 7.25%, 5/1/22 (144A) $ 1,012,188
--------------------------------------------------------------------------------------------------------------
Trucking -- 0.5%
2,000,000 Syncreon Group BV / Syncreon Global Finance US, Inc.,
8.625%, 11/1/21 (144A) $ 1,645,000
---------------
Total Transportation $ 5,218,244
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 29
Schedule of Investments | 9/30/17 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
UTILITIES -- 8.6%
Electric Utilities -- 0.7%
1,010,000(a) Enel S.p.A., 8.75% (5 Year USD Swap Semi Annual
30/360 + 588 bps), 9/24/73 (144A) $ 1,223,362
500,000 Stoneway Capital Corp., 10.0%, 3/1/27 (144A) 537,040
32,000 Talen Energy Supply LLC, 4.625%, 7/15/19 (144A) 31,600
576,000 Talen Energy Supply LLC, 6.5%, 6/1/25 439,200
---------------
$ 2,231,202
--------------------------------------------------------------------------------------------------------------
Gas Utilities -- 1.2%
3,005,000 Ferrellgas LP / Ferrellgas Finance Corp., 6.75%, 6/15/23 $ 2,899,825
950,000 Ferrellgas Partners LP / Ferrellgas Partners Finance Corp.,
8.625%, 6/15/20 902,500
---------------
$ 3,802,325
--------------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy Traders -- 6.3%
4,581,000 Calpine Corp., 5.75%, 1/15/25 $ 4,323,319
2,986,000 Dynegy, Inc., 8.0%, 1/15/25 (144A) 3,090,510
100,000 Dynegy, Inc., 8.125%, 1/30/26 (144A) 103,000
525,000 NRG Energy, Inc., 6.25%, 5/1/24 546,000
2,915,000 NRG Energy, Inc., 6.625%, 1/15/27 3,053,463
950,000 NRG Energy, Inc., 7.25%, 5/15/26 1,018,875
1,687,335 NSG Holdings LLC / NSG Holdings, Inc., 7.75%,
12/15/25 (144A) 1,826,540
2,430,000 TerraForm Global Operating LLC, 9.75%, 8/15/22 (144A) 2,697,300
505,000(j) TerraForm Power Operating LLC, 6.375%, 2/1/23 (144A) 525,200
2,620,000(j) TerraForm Power Operating LLC, 6.625%, 6/15/25 (144A) 2,790,300
---------------
$ 19,974,507
--------------------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.4%
1,230,418 Ormat Funding Corp., 8.25%, 12/30/20 $ 1,356,536
---------------
Total Utilities $ 27,364,570
--------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES
(Cost $347,278,734) $ 364,649,526
--------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS & NOTES -- 3.6%
of Net Assets
CAPITAL GOODS -- 2.0%
Construction Machinery & Heavy Trucks -- 2.0%
2,625,000 Meritor, Inc., 7.875%, 3/1/26 $ 6,186,797
---------------
Total Capital Goods $ 6,186,797
--------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.3%
Health Care Supplies -- 0.3%
1,250,000 Endologix, Inc., 3.25%, 11/1/20 $ 1,081,250
---------------
Total Health Care Equipment & Services $ 1,081,250
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer High Income Trust | Semiannual Report | 9/30/17
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
MATERIALS -- 1.3%
Specialty Chemicals -- 1.3%
4,000,000(m) Hercules, Inc., 6.5%, 6/30/29 $ 4,040,000
---------------
Total Materials $ 4,040,000
--------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS & NOTES
(Cost $6,214,807) $ 11,308,047
--------------------------------------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATIONS -- 1.2% of
Net Assets
Argentina -- 0.8%
2,405,000 Provincia del Chubut Argentina, 7.75%, 7/26/26 (144A) $ 2,505,866
--------------------------------------------------------------------------------------------------------------
Russia -- 0.4%
1,171,600(j) Russian Government International Bond, 7.5%, 3/31/30 $ 1,378,797
--------------------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATIONS
(Cost $3,274,952) $ 3,884,663
--------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATION -- 0.5% of Net Assets
1,500,000(b) U.S. Treasury Notes, 1.243% (3 Month U.S. Treasury Bill
Money Market Yield + 19 bps), 4/30/18 $ 1,501,712
--------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATION
(Cost $1,500,180) $ 1,501,712
--------------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT
OBLIGATION -- 0.0%+ of Net Assets
Municipal General -- 0.0%+
3,300,000(a) Non-Profit Preferred Funding Trust I, Series E, 0.0%,
9/15/37 (144A) $ 57,750
--------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED DEBT OBLIGATION
(Cost $3,294,322) $ 57,750
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.5% of Net Assets
CAPITAL GOODS -- 0.0%+
Construction & Engineering -- 0.0%+
EUR 115,286(f) Abengoa SA, Class A $ 4,359
EUR 1,192,098(f) Abengoa SA, Class B 16,902
---------------
$ 21,261
--------------------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.0%+
33,171(c)(f) Liberty Tire Recycling LLC $ 332
---------------
Total Capital Goods $ 21,593
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 31
Schedule of Investments | 9/30/17 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------------------------
ENERGY -- 0.0%+
Coal & Consumable Fuels -- 0.0%+
3,062(f) Alpha Natural Resources Holdings, Inc. $ 12,248
204(f) Contura Energy, Inc. 12,093
---------------
$ 24,341
--------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.0%+
910(f) Midstates Petroleum Co., Inc. $ 14,141
40,561(f) PetroQuest Energy, Inc. 92,885
---------------
$ 107,026
---------------
Total Energy $ 131,367
--------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.0%+
Health Care Services -- 0.0%+
3,062(f) ANR, Inc., Class C $ 39,806
--------------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.0%+
244,563(c)(f) Medical Card System, Inc. $ 2,446
---------------
Total Health Care Equipment & Services $ 42,252
--------------------------------------------------------------------------------------------------------------
RETAILING -- 0.0%+
Computer & Electronics Retail -- 0.0%+
68,241(c)(f) Targus Cayman SubCo., Ltd. $ 66,194
---------------
Total Retailing $ 66,194
--------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.5%
Air Freight & Logistics -- 0.5%
3,266(f) CEVA Holdings LLC $ 1,469,583
---------------
Total Transportation $ 1,469,583
--------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $6,268,872) $ 1,730,989
--------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 1.5% of
Net Assets
BANKS -- 1.4%
Diversified Banks -- 1.4%
3,355(h) Bank of America Corp., 7.25% $ 4,366,432
---------------
Total Banks $ 4,366,432
--------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 0.1%
Pharmaceuticals -- 0.1%
1,000 Teva Pharmaceutical Industries, Ltd., 7.0%, 12/15/18 $ 344,640
---------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 344,640
--------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $4,135,786) $ 4,711,072
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer High Income Trust | Semiannual Report | 9/30/17
--------------------------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 2.4% of Net Assets
BANKS -- 1.1%
Diversified Banks -- 1.1%
132,750(b) GMAC Capital Trust I, 7.1% (3 Month USD LIBOR +
579 bps), 2/15/40 $ 3,504,600
---------------
Total Banks $ 3,504,600
--------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.0%
Specialized Finance -- 1.0%
3,000(a)(h) Compeer Financial ACA, 6.75% (3 Month USD
LIBOR + 458 bps) (144A) $ 3,208,312
--------------------------------------------------------------------------------------------------------------
ENERGY -- 0.0%+
Coal & Consumable Fuels -- 0.0%+
5,233(f) Alpha Natural Resources Holdings, Inc. $ 32,706
---------------
Total Energy $ 3,241,018
--------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.1%
Health Care Services -- 0.1%
5,233(f) ANR, Inc. $ 123,630
---------------
Total Health Care Equipment & Services $ 123,630
--------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.2%
Diversified Chemicals -- 0.2%
1,062,203(f) Pinnacle Agriculture $ 690,432
---------------
Total Materials $ 690,432
--------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $7,218,644) $ 7,559,680
--------------------------------------------------------------------------------------------------------------
RIGHT / WARRANTS -- 0.0%+ of Net Assets
ENERGY -- 0.0%+
Coal & Consumable Fuels -- 0.0%+
354(f)(n) Contura Energy, Inc. $ 9,204
--------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.0%+
6,448(f)(o) Midstates Petroleum Co., Inc. $ --
---------------
Total Energy $ 9,204
--------------------------------------------------------------------------------------------------------------
HEALTH CORE EQUIPMENT & SERVICES -- 0.0%+
Health Care Services -- 0.0%+
1,819,798(d)(f) ANR, Inc., 3/31/23 $ 2
---------------
Total Health Core Services $ 2
--------------------------------------------------------------------------------------------------------------
TOTAL RIGHT / WARRANTS
(Cost $308,611) $ 9,206
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 33
Schedule of Investments | 9/30/17 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 5.6% of
Net Assets
COMMERCIAL PAPERS -- 1.3%
717,000 Amphenol Corp., 1.3%, 10/2/17 $ 716,919
1,180,000 Federation des Caisses Desjardins du Quebec,
1.08%, 10/2/17 1,179,886
1,260,000 Mondelez International, 1.25%, 10/2/17 1,259,858
920,000 Prudential Funding LLC, 1.05%, 10/2/17 919,912
---------------
$ 4,076,575
--------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 1.8%
2,355,000 $2,355,000 ScotiaBank, 1.05%, dated 9/29/17, plus
accrued interest on 10/2/17 collateralized by the following:
$1,915,983 Federal National Mortgage Association,
3.0% - 4.0%, 6/20/47 - 8/20/47,
$486,328 Government National Mortgage Association,
3.0% - 4.5%, 4/1/26 - 7/1/47. $ 2,355,000
1,260,000 $1,260,000 TD Securities USA LLC, 1.04%, dated
9/29/17, plus accrued interest on 10/2/17 collateralized
by the following:
$1,285,978 Federal Home Loan Bank, 0.0%, 11/24/17. 1,260,000
2,100,000 $2,100,000 TD Securities USA LLC, 1.05%, dated
9/29/17, plus accrued interest on 10/2/17 collateralized
by the following:
$1,080,301 Federal Home Loan Bank, 0.0%, 11/24/17,
$1,062,183 Freddie Mac Giant, 4.0%, 9/1/47. 2,100,000
---------------
$ 5,715,000
--------------------------------------------------------------------------------------------------------------
TREASURY BILLS -- 2.5%
1,000,000(i) U.S. Treasury Bill, 10/5/17 $ 999,939
2,665,000(i) U.S. Treasury Bill, 10/12/17 2,664,316
4,205,000(i) U.S. Treasury Bill, 11/2/17 4,201,525
---------------
$ 7,865,780
--------------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $17,657,255) $ 17,657,355
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED
ISSUERS -- 137.8%
(Cost -- $421,974,582) (p) $ 437,286,454
--------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (37.8)% $ (120,062,571)
--------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 317,223,883
==============================================================================================================
BPS Basis Point.
LIBOR London Interbank Offered Rate.
PRIME U.S. Federal Funds Rate.
REIT Real Estate Investment Trust.
ZERO Zero Constant Index.
The accompanying notes are an integral part of these financial statements.
34 Pioneer High Income Trust | Semiannual Report | 9/30/17
(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, 2017, the value of these securities
amounted to $193,191,168, or 60.9% of net assets.
(Cat Bond) Catastrophe or event-linked bond. At September 30, 2017, the value of
these securities amounted to $2,245,600, or 0.7% of net assets. 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 rate plus a premium.
These base lending rates are generally (k) the lending rate offered
by one or more major European banks, such as LIBOR, (ii) the prime
rate offered by one or more major United States banks, (iii) the rate
of a certificate of deposit or (iv) other base lending rates used by
commercial lenders. The interest rate shown is the rate accruing at
September 30, 2017.
(a) The interest rate is subject to change periodically. The interest
rate, reference index and spread shown at September 30, 2017.
(b) Floating rate note. Coupon rate, reference index and spread shown at
September 30, 2017.
(c) Security is valued using fair value methods (other than prices
supplied by independent pricing services). See Notes to Financial
Statements -- Note 1A.
(d) Securities that used significant unobservable inputs to determine
their value.
(e) Security is in default.
(f) Non-income producing.
(g) Payment in Kind (PIK) security which may pay interest in the form of
additional principal amount.
(h) Security is perpetual in nature and has no stated maturity date.
(i) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(j) 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, 2017.
(k) Structured reinsurance investment. At September 30, 2017, the value
of these securities amounted to $7,439,810, or 2.4% of net assets.
See Notes to Financial Statements -- Note 1A.
(l) Rate to be determined.
(m) Security is priced as a unit.
(n) Contura Energy warrants are exercisable into 354 shares.
(o) Midstates Petroleum warrants are exercisable into 6,448 shares.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 35
Schedule of Investments | 9/30/17 (unaudited) (continued)
(p) Distributions of investments by country of issue, as a percentage of
long-term holdings based on country of domicile, is as follows:
United States 79.3%
Luxembourg 4.2
Netherlands 3.6
Canada 2.6
Bermuda 2.4
United Kingdom 1.5
Argentina 1.3
Ireland 1.1
Other (individually less than 1%) 4.0
------
100.0%
======
SWAP CONTRACTS
CREDIT DEFAULT SWAP CONTRACTS -- SELL PROTECTION
Over the Counter (OTC)
-----------------------------------------------------------------------------------------------------------------
Obligation Annual
Notional Reference/ Pay/ Fixed Expiration Premiums Unrealized Market
Amount ($)(1) Counterparty Index Receive Rate Date (Received) Appreciation Value
-----------------------------------------------------------------------------------------------------------------
515,000 Goldman Sachs Chesapeake Pay 5.00% 6/20/22 $ (57,937) $ 22,879 $(35,058)
International Energy Corp.
Bank
485,000 Goldman Sachs Chesapeake Pay 5.00% 6/20/22 (59,413) 26,399 (33,014)
International Energy Corp.
Bank
310,000 Goldman Sachs Chesapeake Pay 5.00% 6/20/22 (37,975) 16,873 (21,102)
International Energy Corp.
Bank
2,000,000 JPMorgan Goodyear Pay 5.00% 12/20/17 (65,000) 90,151 25,151
Chase Bank NA Tire &
Rubber Co.
-----------------------------------------------------------------------------------------------------------------
$(220,325) $156,302 $(64,023)
=================================================================================================================
CENTRALLY CLEARED INTEREST RATE SWAP CONTRACT
-------------------------------------------------------------------------------------------------------------------
Annual
Notional Pay/ Fixed Pay/ Floating Expiration Premiums Unrealized Market
Amount ($) Receive Rate Receive Rate Date Paid Appreciation Value
-------------------------------------------------------------------------------------------------------------------
22,500,000 Receive 1.59% Pay LIBOR USD 3 Month 11/9/20 $101 $76,486 $76,587
-------------------------------------------------------------------------------------------------------------------
TOTAL SWAP CONTRACTS (Cost $(220,224)) $12,564
===================================================================================================================
(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.
The accompanying notes are an integral part of these financial statements.
36 Pioneer High Income Trust | Semiannual Report | 9/30/17
FORWARD FOREIGN CURRENCY CONTRACTS
--------------------------------------------------------------------------------------------------
Net
In Unrealized
Currency Exchange Currency Settlement Appreciation
Purchased for Sold Deliver Counterparty Date (Depreciation)
--------------------------------------------------------------------------------------------------
USD 5,355,974 EUR 4,537,118 State Street Bank & 10/31/17 $ (13,098)
Trust Co.
USD 532,002 EUR 450,000 State Street Bank & 10/31/17 (512)
Trust Co.
--------------------------------------------------------------------------------------------------
TOTAL FORWARD FOREIGN CURRENCY CONTRACTS $ (13,610)
==================================================================================================
Principal amounts are denominated in U.S. dollars unless otherwise noted.
ARS -- Argentine Peso
AUD -- Australian Dollar
EUR -- Euro
IDR -- Indonesian Rupiah
USD -- United States Dollar
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended September 30, 2017 were as follows:
----------------------------------------------------------------------------------------------------
Purchases Sales
----------------------------------------------------------------------------------------------------
Long-Term U.S. Government $ -- $ --
Other Long-Term Securities $53,827,257 $54,355,233
The Trust is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Amundi Pioneer Asset
Management, Inc., formerly Pioneer Investment Management, Inc. (the Adviser),
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, 2017, the Trust engaged in
purchases and sales pursuant to these procedures amounting to $2,982,661 and
$--, respectively resulting in a gain of $--.
At September 30, 2017, the net unrealized appreciation on investments based on
cost for federal tax purposes of $423,243,357 was as follows:
Aggregate gross unrealized appreciation for all investments in which there
is an excess of value over tax cost $ 35,598,796
Aggregate gross unrealized depreciation for all investments in which there
is an excess of tax cost over value (21,555,699)
------------
Net unrealized appreciation $ 14,043,097
============
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).
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 37
Schedule of Investments | 9/30/17 (unaudited) (continued)
The following is a summary of the inputs used as of September 30, 2017, in
valuing the Trust's investments.
---------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------
Asset Backed Securities $ -- $ 332,754 $ -- $ 332,754
Collateralized Mortgage
Obligations -- 645,391 -- 645,391
Commercial Mortgage-Backed
Securities -- 2,275,163 -- 2,275,163
Senior Secured Floating Rate
Loan Interests
Capital Goods
Aerospace & Defense -- 883,122 2,133,875 3,016,997
Health Care Equipment &
Services
Health Care Technology -- -- 853,713 853,713
All Other Senior Secured
Floating Rate
Loan Interests -- 17,092,436 -- 17,092,436
Corporate Bonds & Notes
Diversified Financials
Other Diversified Financial
Services -- -- 3,231,298 3,231,298
Insurance
Reinsurance -- 2,245,600 7,439,810 9,685,410
All Other Corporate
Bonds & Notes -- 351,732,818 -- 351,732,818
Convertible Bonds & Notes -- 11,308,047 -- 11,308,047
Sovereign Debt Obligations -- 3,884,663 -- 3,884,663
U.S. Government and Agency
Obligation -- 1,501,712 -- 1,501,712
Municipal Collateralized Debt
Obligation -- 57,750 -- 57,750
Common Stocks
Capital Goods
Industrial Machinery -- -- 332 332
Health Care Equipment &
Services
Health Care Technology -- -- 2,446 2,446
Retailing
Computer & Electronics
Retail -- -- 66,194 66,194
Transportation
Air Freight & Logistics -- 1,469,583 -- 1,469,583
All Other Common Stocks 152,628 39,806 -- 192,434
The accompanying notes are an integral part of these financial statements.
38 Pioneer High Income Trust | Semiannual Report | 9/30/17
-----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------
Convertible Preferred Stocks $ 4,711,072 $ -- $ -- $ 4,711,072
Preferred Stocks
Banks
Diversified Banks 3,504,600 -- -- 3,504,600
Energy
Coal & Consumable
Fuels -- 32,706 -- 32,706
Health Care Equipment &
Services
Health Care Services -- 123,630 -- 123,630
Materials
Diversified Chemicals -- 690,432 -- 690,432
All Other Preferred Stocks 3,208,312 -- -- 3,208,312
Right / Warrants
Energy
Coal & Consumable
Fuels -- -- 2 2
All Other Right / Warrants 9,204 -- -- 9,204
Commercial Papers -- 4,076,575 -- 4,076,575
Repurchase Agreements -- 5,715,000 -- 5,715,000
Treasury Bills -- 7,865,780 -- 7,865,780
-----------------------------------------------------------------------------------------
Total Investments in
Securities $ 11,585,816 $ 411,972,968 $ 13,727,670 $437,286,454
=========================================================================================
Other Financial Instruments
Swap contracts, at value $ -- $ 12,564 $ -- $ 12,564
Unrealized depreciation on
forward foreign
currency contracts -- (13,610) -- (13,610)
-----------------------------------------------------------------------------------------
Total Other
Financial Instruments $ -- $ (1,046) $ -- $ (1,046)
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 39
Schedule of Investments | 9/30/17 (unaudited) (continued)
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
3/31/17 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* Level 3* categories 9/30/17
------------------------------------------------------------------------------------------------------------------------------------
Commercial
Mortgage-Backed
Securities
Bank
Thrifts &
Mortgage
Finance $ 113,123 $ -- $ -- $ -- $ -- $ -- $ -- $(113,123) $ -- $ --
Senior Secured
Floating Rate
Loan Interests
Capital Goods
Aerospace &
Defense 2,144,625 95 (2,254) -- (10,750) 2,159 -- -- -- 2,133,875
Health Care
Equipment &
Services
Health Care
Technology 853,713 -- (25,547) -- -- 25,547 -- -- -- 853,713
Corporate Bonds
& Notes
Diversified
Financials
Other
Diversified
Financial
Services -- -- 360,928 -- -- 6,095 -- -- 2,864,275 3,231,298
Insurance
Property
& Casualty
Insurance 2,864,275 -- -- -- -- -- -- -- (2,864,275) --
Reinsurance 10,836,716 (5,153) (1,228,255) 1,261,110 (3,403,410) (21,198) -- -- -- 7,439,810
Common Stocks
Capital Goods
Industrial
Machinery 332 -- -- -- -- -- -- -- -- 332
Health Care
Equipment
& Services
Health Care
Technology 2,446 -- -- -- -- -- -- -- -- 2,446
Retailing
Computer &
Electronics
Retail 66,194 -- -- -- -- -- -- -- -- 66,194
Right
Energy
Coal &
Consumable
Fuels -- -- 2 -- -- -- -- -- -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total $16,881,424 $ (5,058) $ (895,126) $1,261,110 $(3,414,160) $ 12,603 $ -- $(113,123) $ -- $13,727,670
====================================================================================================================================
(1) Realized gain (loss) on these securities is included in the realized gain
(loss) from investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) from investments in
the Statement of Operations.
* Transfers are calculated on the beginning of period value. For the six
months ended September 30, 2017, there were no transfers between Levels 1,
2 and 3. Securities with an aggregate market value of $113,123 transferred
from level 3 to level 2 as there were observable inputs available to
determine their value.
Net change in unrealized depreciation of Level 3 investments still held and
considered Level 3 at August 31, 2017: $(882,047).
The accompanying notes are an integral part of these financial statements.
40 Pioneer High Income Trust | Semiannual Report | 9/30/17
Statement of Assets and Liabilities | 9/30/17 (unaudited)
ASSETS:
Investments in unaffiliated issuers, at value (cost $421,974,582) $ 437,286,454
Foreign currencies, at value (cost $1,025,448) 1,104,512
Swap contracts, at value (net premiums received $(220,224)) 12,564
Variation margin for centrally cleared swap contracts 19,837
Swaps collateral 314,749
Receivables --
Interest 7,610,326
Dividends 60,809
Other assets 585
-----------------------------------------------------------------------------------
Total assets $ 446,409,836
===================================================================================
LIABILITIES:
Payables --
Credit agreement $ 125,000,000
Investment securities purchased 2,498,234
Trustees' fees 410
Interest expense 16,327
Due to custodian 1,248,539
Due to broker for swap contracts 84,048
Swaps collateral 200,000
Unrealized depreciation on forward foreign currency contracts 13,610
Due to affiliates 32,544
Accrued expenses and other liabilities 92,241
-----------------------------------------------------------------------------------
Total liabilities $ 129,185,953
===================================================================================
NET ASSETS:
Paid-in capital $ 416,091,387
Undistributed net investment income 283,401
Accumulated net realized loss on investments (114,767,371)
Net unrealized appreciation on investments 15,616,466
-----------------------------------------------------------------------------------
Net assets $ 317,223,883
===================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Based on $317,223,883 / 29,231,771 shares $ 10.85
===================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 41
Statement of Operations (unaudited)
For the Six Months Ended 9/30/17
INVESTMENT INCOME:
Interest from unaffiliated issuers $15,547,544
Dividends from unaffiliated issuers (net of
foreign taxes withheld $5,250) 369,476
---------------------------------------------------------------------------------------------------
Total investment income $15,917,020
---------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,322,948
Administrative expense 49,278
Transfer agent fees 7,807
Shareholder communications expense 7,094
Custodian fees 10,512
Professional fees 147,256
Printing expense 10,722
Trustees' fees 8,334
Pricing fees 14,701
Interest expense 1,718,459
Miscellaneous 303,919
---------------------------------------------------------------------------------------------------
Total expenses $ 3,601,030
---------------------------------------------------------------------------------------------------
Net investment income $12,315,990
---------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on:
Investments from unaffiliated issuers $ (970,163)
Swap contracts (1,039)
Forward foreign currency contracts (435,891)
Other assets and liabilities denominated
in foreign currencies (653) $(1,407,746)
---------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments from unaffiliated issuers $ 4,946,868
Swap contracts (34,123)
Forward foreign currency contracts (44,574)
Other assets and liabilities denominated
in foreign currencies 90,941 $ 4,959,112
---------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ 3,551,366
---------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $15,867,356
===================================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer High Income Trust | Semiannual Report | 9/30/17
Statements of Changes in Net Assets
---------------------------------------------------------------------------------------------------
Six Months
Ended Year
9/30/17 Ended
(unaudited) 3/31/17*
---------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 12,315,990 $ 27,858,506
Net realized gain (loss) on investments (1,407,746) (17,329,470)
Change in net unrealized appreciation (depreciation)
on investments 4,959,112 57,460,622
---------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 15,867,356 $ 67,989,658
---------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income ($0.39 and $0.97
per share, respectively) $ (11,400,391) $ (28,320,361)
---------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (11,400,391) $ (28,320,361)
---------------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ -- $ 1,187,786
---------------------------------------------------------------------------------------------------
Net increase in net assets from Trust share transactions $ -- $ 1,187,786
---------------------------------------------------------------------------------------------------
Net increase in net assets $ 4,466,965 $ 40,857,083
NET ASSETS:
Beginning of period 312,756,918 271,899,835
---------------------------------------------------------------------------------------------------
End of period $ 317,223,883 $ 312,756,918
---------------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net investment income $ 283,401 $ (632,198)
===================================================================================================
* The Trust was audited by another independent registered public accounting
firm other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 43
Statement of Cash Flows (unaudited)
For the Six Months Ended 9/30/17
Cash Flows From Operating Activities:
Net increase in net assets resulting from operations $ 15,867,356
----------------------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets resulting from operations
to net cash and foreign currencies from operating activities:
Purchases of investment securities $ (55,331,819)
Proceeds from disposition and maturity of investment securities 57,096,867
Net purchases of temporary cash investments (1,340,935)
Net accretion and amortization of discount/premium on investment securities (697,789)
Change in unrealized appreciation on investments (4,946,868)
Change in unrealized appreciation on swap contracts (93,910)
Change in unrealized depreciation on forward foreign currency contracts 44,574
Change in unrealized appreciation on foreign currency (79,738)
Net realized loss on investments 956,757
Net premiums received on swap contracts 155,224
Decrease in restricted cash 157,651
Swap collateral paid (114,749)
Increase in interest receivable (220,652)
Increase in other assets (519)
Decrease in due to affiliates (164,183)
Increase in trustees' fees payable 165
Decrease in administration fee payable (7,273)
Increase in accrued expenses payable 49,325
Decrease in interest expense payable (303,640)
Increase in cash due to broker for swap contracts 84,048
Increase in variation margin for centrally cleared swap contracts (35,782)
----------------------------------------------------------------------------------------------
Net cash and foreign currencies from operating activities $ 11,074,110
----------------------------------------------------------------------------------------------
Cash Flows Used in Financing Activities:
Increase in due to custodian $ 500,282
Distributions to shareowners (11,400,391)
----------------------------------------------------------------------------------------------
Net cash and foreign currencies used in financing activities $ (10,900,109)
----------------------------------------------------------------------------------------------
Effect of Foreign Exchange Fluctuations on Cash:
Effect of foreign exchange fluctuations on cash $ 79,738
----------------------------------------------------------------------------------------------
Cash and Foreign Currencies:
Beginning of the period $ 850,773
----------------------------------------------------------------------------------------------
End of the period $ 1,104,512
----------------------------------------------------------------------------------------------
Cash Flow Information:
Cash paid for interest $ 2,022,099
==============================================================================================
The accompanying notes are an integral part of these financial statements.
44 Pioneer High Income Trust | Semiannual Report | 9/30/17
Financial Highlights
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
9/30/17 Ended Ended Ended Ended Ended
(unaudited) 3/31/17* 3/31/16* 3/31/15* 3/31/14* 3/31/13
-----------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 10.70 $ 9.34 $ 11.89 $ 14.19 $ 14.23 $ 13.45
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 0.42 $ 0.95 $ 1.19 $ 1.36 $ 1.50 $ 1.74
Net realized and unrealized gain (loss) on
investments 0.12 1.38 (2.40) (2.05) 0.12 0.70
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareowners from:
Net investment income $ -- $ -- $ -- $ -- $ (0.01) $ (0.01)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.54 $ 2.33 $ (1.21) $ (0.69) $ 1.61 $ 2.43
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income and previously undistributed
net investment income $ (0.39) $ (0.97)** $ (1.34)** $ (1.61)** $ (1.65)** $ (1.65)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.15 $ 1.36 $ (2.55) $ (2.30) $ (0.04) $ 0.78
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.85 $ 10.70 $ 9.34 $ 11.89 $ 14.19 $ 14.23
-----------------------------------------------------------------------------------------------------------------------------------
Market value, end of period $ 10.02 $ 9.87 $ 10.04 $ 12.87 $ 17.83 $ 16.97
===================================================================================================================================
Total return at net asset value (b) 5.42%(c) 26.13% (10.54)% (7.38)% 10.32% 17.00%
Total return at market value (b) 5.54%(c) 8.23% (11.37)% (20.28)% 16.24% 12.65%
Ratios to average net assets of common shareowners:
Total expenses plus interest expense (d)(e) 2.28%(f) 2.10% 1.67% 1.33% 1.04% 1.08%
Net investment income before preferred share
distributions 7.80%(f) 9.36% 11.23% 10.30% 10.70% 13.03%
Preferred share distributions --% --% --% --% 0.04% 0.06%
Net investment income available to shareowners 7.80%(f) 9.36% 11.23% 10.30% 10.66% 12.97%
Portfolio turnover 13%(c) 48% 24% 37% 30% 27%
Net assets of, end of period (in thousands) $317,224 $312,757 $271,900 $344,349 $406,884 $404,498
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/17 45
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
9/30/17 Ended Ended Ended Ended Ended
(unaudited) 3/31/17* 3/31/16* 3/31/15* 3/31/14* 3/31/13
----------------------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) $ -- $ -- $ -- $ -- $ --(g) $151,000
Asset coverage per preferred share, end of period $ -- $ -- $ -- $ -- $ --(g) $ 91,971
Average market value per preferred share (h) $ -- $ -- $ -- $ -- $ --(g) $ 25,000
Liquidation value, including dividends payable,
per preferred share $ -- $ -- $ -- $ -- $ --(g) $ 25,001
Total amount of debt outstanding (in thousands) $ 125,000 $ 125,000 $ 125,000 $ 151,000 $151,000 $ --
Asset coverage per indebtedness (in thousands) $ 3,538 $ 3,502 $ 3,175 $ 3,280 $ 3,419 $ --
==================================================================================================================================
* The Trust was audited by another independent registered public accounting
firm other than Ernst & Young LLP.
** 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) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Total investment return is calculated assuming a purchase of common shares
at the current net asset value or market value on the first day and a sale
at the current net asset value or market value on the last day of the
periods reported. Dividends and distributions, if any, are assumed for
purposes of this calculation to be reinvested at prices obtained under the
Trust's dividend reinvestment plan. Total investment return does not
reflect brokerage commissions. Past performance is not a guarantee of
future results.
(c) Not annualized.
(d) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(e) Includes interest expense of 1.09% (annualized), 1.11%, 0.63%, 0.38%,
0.02%, and 0.0%, respectively.
(f) Annualized.
(g) Preferred shares were redeemed during the period.
(h) 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 | 9/30/17
Notes to Financial Statements | 9/30/17 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer High Income Trust (the Trust) was organized as a Delaware statutory
trust on January 30, 2002. Prior to commencing operations on April 26, 2002, the
Trust had no operations other than matters relating to its organization and
registration as a closed-end management investment company under the Investment
Company Act of 1940, as amended. The investment objective of the Trust is to
provide a high level of current income and the Trust may, as a secondary
objective, also seek capital appreciation to the extent that it is consistent
with its investment objective.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world. Amundi, one of the world's
largest asset managers, is headquartered in Paris, France. As a result of the
transaction, Pioneer Investment Management, Inc., the Trust's investment
adviser, became an indirect wholly owned subsidiary of Amundi and Amundi's
wholly owned subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer
Investments was owned by Pioneer Global Asset Management S.p.A., a wholly owned
subsidiary of UniCredit S.p.A.
In connection with the transaction, the names of the Trust's investment adviser
and principal underwriter changed. Effective July 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc.
(the Adviser) and the name of Pioneer Funds Distributor, Inc. changed to Amundi
Pioneer Distributor, Inc. (the Distributor).
In October 2016, the Securities and Exchange Commission (SEC) released its Final
Rule on Investment Company Reporting Modernization. In addition to introducing
two new regulatory reporting forms (Form N-PORT and Form N-CEN), the Final Rule
amends Regulation S-X, which impacts financial statement presentation,
particularly related to the presentation of derivative investments. The Fund's
financial statements were prepared in compliance with the amendments to
Regulation S-X.
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 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.
Pioneer High Income Trust | Semiannual Report | 9/30/17 47
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. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to supply
prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Loan interests are valued in accordance with guidelines established by the
Board of Trustees at the mean between the last available bid and asked
prices from one or more brokers or dealers as obtained from Loan Pricing
Corporation, an independent third party pricing service. If price
information is not available from Loan Pricing Corporation, or if the price
information is deemed to be unreliable, price information will be obtained
from an alternative loan interest pricing service. If no reliable price
quotes are available from either the primary or alternative pricing
service, broker quotes will be solicited.
Event-linked bonds or catastrophe bonds are valued at the bid price
obtained from an independent third party pricing service. Other insurance
linked securities (including sidecars, collateralized reinsurance and
industry loss warranties) may be valued at the bid price obtained from an
independent pricing service, or through a third party using a pricing
matrix, insurance industry valuation models, or other fair value methods or
techniques to provide an estimated value of the instrument.
48 Pioneer High Income Trust | Semiannual Report | 9/30/17
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
The value of foreign securities is translated in U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party pricing
source. Trading in non-U.S. equity securities is substantially completed
each day at various times prior to the close of the NYSE. The values of
such securities used in computing the net asset value of the Trust's shares
are determined as of such times. The Trust may use a fair value model
developed by an independent pricing service to value non-U.S. equity
securities.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealers Association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Forward foreign currency contracts are valued daily using the foreign
exchange rate or, for longer term forward contract positions, the spot
currency rate, 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 or
broker-dealers are unable to supply prices or for which market prices
and/or quotations are not readily available or are considered to be
unreliable are valued by a fair valuation team comprised of certain
personnel of the Adviser, pursuant to procedures adopted by the Trust's
Board of Trustees. The Adviser's fair valuation team uses fair value
methods approved by the Valuation Committee of the Board of Trustees. The
Adviser's fair valuation team is responsible for monitoring developments
that may impact fair valued securities and for discussing and assessing
fair values on an ongoing basis, and at least quarterly, with the Valuation
Committee of the Board of Trustees.
Pioneer High Income Trust | Semiannual Report | 9/30/17 49
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, 2017, six 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 1.98% of net assets. The value of these fair valued
securities are $6,287,858.
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Trust becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on an accrual basis,
net of unrecoverable foreign taxes withheld at the applicable country rates
and net of income accrued on defaulted securities.
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. Interest and dividend income payable by delivery of
additional shares is reclassified as PIK (payment-in-kind) income upon
receipt and is included in interest and dividend income, respectively.
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.
50 Pioneer High Income Trust | Semiannual Report | 9/30/17
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on
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.
During the six months ended September 30, 2017, 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, 2017 was $(5,402,686).
Forward foreign currency contracts outstanding at September 30, 2017 are
listed in the Schedule of Investments.
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, 2017, the Trust did not accrue any interest or penalties with
respect to uncertain tax positions, which if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax returns filed
within the prior three years remain subject to examination by federal and
state tax authorities.
Pioneer High Income Trust | Semiannual Report | 9/30/17 51
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 shareowners 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, 2017 was as follows:
-------------------------------------------------------------------------------
2017
-------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 28,320,361
-------------------------------------------------------------------------------
Total $ 28,320,361
===============================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at March 31, 2017:
--------------------------------------------------------------------------------
2017
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 2,015,358
Capital loss carryforward (100,911,102)
Late year loss deferrals (13,489,950)
Other book/tax temporary differences (1,606,129)
Unrealized appreciation 10,657,354
--------------------------------------------------------------------------------
Total $(103,334,469)
================================================================================
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.
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
52 Pioneer High Income Trust | Semiannual Report | 9/30/17
actual losses. If a trigger event occurs, as defined within the terms of an
event-linked bond, 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 the
Adviser to fully evaluate the underlying risk profile of the Trust's
structured reinsurance investments and therefore the Trust's assets are
placed at greater risk of loss than if the Adviser had more complete
information. Structured reinsurance instruments generally will be
considered illiquid securities by the Trust. These securities may be
difficult to purchase, sell or unwind. Illiquid securities also may be
difficult to value. If the Trust is forced to sell an illiquid asset, the
Trust may be forced to sell at a loss.
G. 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.
Pioneer High Income Trust | Semiannual Report | 9/30/17 53
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 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. 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.
54 Pioneer High Income Trust | Semiannual Report | 9/30/17
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 Adviser is responsible for determining that the value of the
collateral remains at least equal to the repurchase price. In the event of
a default by the counterparty, the Trust is entitled to sell the
securities, but the Trust may not be able to sell them for the price at
which they were purchased, thus causing a loss to the Trust. Additionally,
if the counterparty becomes insolvent, there is some risk that the Trust
will not have a right to the securities, or the immediate right to sell the
securities. Open repurchase agreements as of September 30, 2017 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.
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
Pioneer High Income Trust | Semiannual Report | 9/30/17 55
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 Contracts
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 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
56 Pioneer High Income Trust | Semiannual Report | 9/30/17
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 a component of
unrealized appreciation/depreciation on open swap contacts 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 within the "Swap contracts, at value" line item 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 swap contract is recorded as variation
margin on centrally cleared swaps in the Statement of Assets and
Liabilities.
The amount of cash deposited with the broker as collateral at September 30,
2017 is recorded as "Swaps collateral" on the Statement of Assets and
Liabilities.
Pioneer High Income Trust | Semiannual Report | 9/30/17 57
Open credit default swap contracts at September 30, 2017 are listed in the
Schedule of Investments. The average market value of credit default swap
contracts open during the six months ended September 30, 2017 was $33,317.
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 contract, the Trust negotiates with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is typically
a fixed interest rate. Payment flows are usually netted against each other,
with the difference being paid by one party to the other on a monthly
basis.
Periodic payments received or paid by the Trust are recorded as realized
gains or losses 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 within the
"Swap contracts, at value" line item 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 contracts with the
central clearing party rather than the original counterparty. Upon entering
into a centrally cleared swap contract, the Trust is required to make an
initial 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 in the Statement of Assets and
Liabilities.
Open interest rate swap contracts at September 30, 2017 are listed in the
Schedule of Investments. The average value of interest swap contracts open
during the six months ended September 30, 2017 was $127,292.
2. Management Agreement
The Adviser manages the Trust's portfolio. Management fees payable under the
Trust's Advisory Agreement with the Adviser are calculated daily at the annual
rate of 0.60% of the Trust's average daily managed assets. "Managed assets"
means (a) the total assets of the Trust, including any form of investment
leverage, minus (b) all accrued liabilities incurred in the normal course of
operations, which shall not include any liabilities or obligations attributable
to investment leverage obtained through (i) indebtedness of any type (including,
without limitation, borrowing through a credit facility or the issuance of debt
securities),
58 Pioneer High Income Trust | Semiannual Report | 9/30/17
(ii) the issuance of preferred stock or other similar preference securities,
and/or (iii) any other means. For the six months ended September 30, 2017 the
net management fee was 0.60% (annualized) of the Trust's average daily managed
assets, which was equivalent of 0.84% (annualized) of the Trust's average daily
net assets.
In addition, under the management and administration agreements, certain other
services and costs are paid by the Adviser and reimbursed by the Trust. At
September 30, 2017, $32,544 was payable to the Adviser related to management
costs, administrative costs and certain other services is included in "Due to
affiliates" and "Administration fee" in 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. Assets and Liabilities Offsetting
The Trust has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement (ISDA Master Agreement) or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Trust and a counterparty that governs the
trading of certain OTC derivatives and typically contains, among other things,
close-out and set-off provisions which apply upon the occurrence of event of a
default and/or termination event as defined under the relevant ISDA Master
Agreement. The ISDA Master Agreement may also give a party the right to
terminate all transactions traded under such agreement if, among other things,
there is deterioration in the credit quality of the other party. Upon an event
of default or a termination of the ISDA Master Agreement, the non-defaulting
party has the right to close out all transactions under such agreement and to
net amounts owed under each transaction to determine one net amount payable by
one party to the other. The right to close out and net payments across all
transactions under the ISDA Master Agreement could result in a reduction of the
Trust's credit risk to its counterparty equal to any amounts payable by the
Trust under the applicable transactions, if any. However, the Trust's right to
setoff may be restricted or prohibited by the bankruptcy or insolvency laws of
the particular jurisdiction to which a specific ISDA counterparty is subject.
Pioneer High Income Trust | Semiannual Report | 9/30/17 59
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 "Swaps
collateral". 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 in the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Trust
as of September 30, 2017:
-------------------------------------------------------------------------------------------------
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)
-------------------------------------------------------------------------------------------------
Goldman Sachs
International $ 66,151 $ -- $ -- $ -- $66,151
JP Morgan Chase Bank NA 90,151 -- -- (90,151) --
-------------------------------------------------------------------------------------------------
Total $156,302 $ -- $ -- $(90,151) $66,151
=================================================================================================
--------------------------------------------------------------------------------------------------
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)
--------------------------------------------------------------------------------------------------
State Street Bank &
Trust Co. $ 13,610 $ -- $ -- $ -- $13,610
--------------------------------------------------------------------------------------------------
Total $ 13,610 $ -- $ -- $ -- $13,610
==================================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
5. Additional Disclosures about Derivative Instruments and Hedging Activities
The Trust's use of derivatives 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.
60 Pioneer High Income Trust | Semiannual Report | 9/30/17
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, 2017 was as follows:
---------------------------------------------------------------------------------------
Statement of Assets and Liabilities
Interest Credit Foreign Equity Commodity
Rate Risk Risk Exchange Risk Risk Risk
---------------------------------------------------------------------------------------
Assets:
Swap contracts,
at value $76,587 $ (64,023) $ -- $ -- $ --
---------------------------------------------------------------------------------------
Total Value $76,587 $ (64,023) $ -- $ -- $ --
=======================================================================================
Liabilities:
Unrealized
depreciation on
forward foreign
currency contracts $ -- $ -- $13,610 $ -- $ --
---------------------------------------------------------------------------------------
Total Value $ -- $ -- $13,610 $ -- $ --
=======================================================================================
Pioneer High Income Trust | Semiannual Report | 9/30/17 61
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) in the Statement of Operations by risk
exposure at September 30, 2017 was as follows:
-------------------------------------------------------------------------------------
Statement of Operations
Interest Credit Foreign Equity Commodity
Rate Risk Risk Exchange Risk Risk Risk
-------------------------------------------------------------------------------------
Net realized gain
(loss) on:
Swap contracts $(53,352) $52,313 $ -- $ -- $ --
Forward foreign
currency contracts -- -- (435,891) -- --
-------------------------------------------------------------------------------------
Total Value $(53,352) $52,313 $(435,891) $ -- $ --
=====================================================================================
Change in net
unrealized
appreciation
(depreciation) on:
Swap contracts $(51,547) $17,424 $ -- $ -- $ --
Forward foreign
currency contracts -- -- (44,574) -- --
-------------------------------------------------------------------------------------
Total Value $(51,547) $17,424 $ (44,574) $ -- $ --
=====================================================================================
6. Trust Shares
Transactions in shares of beneficial interest for the six months ended September
30, 2017 and the year ended March 31, 2017 were as follows:
--------------------------------------------------------------------------------
9/30/17 3/31/17
--------------------------------------------------------------------------------
Shares outstanding at beginning of period 29,231,771 29,113,714
Reinvestment of distributions -- 118,057
--------------------------------------------------------------------------------
Shares outstanding at end of period 29,231,771 29,231,771
================================================================================
7. 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 1.75%. There is no
fixed borrowing limit.
At September 30, 2017, the Trust had a borrowing outstanding under the credit
agreement totaling $125,000,000. The interest rate charged at September 30, 2017
was 2.37%. During the six months ended September 30, 2017, the average daily
balance was $125,000,000 at an average interest rate of 2.74%. Interest expense
of $1,718,459 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.
62 Pioneer High Income Trust | Semiannual Report | 9/30/17
The Trust is required to maintain 300% asset coverage with respect to amounts
outstanding under the credit agreement. Asset coverage is calculated by
subtracting the Trust's total liabilities not including any bank loans and
senior securities, from the Trust's total assets and dividing such amount by the
principal amount of the borrowing outstanding.
8. Subsequent Events
A monthly dividend was declared on October 4, 2017 from undistributed and
accumulated net investment income of $0.0650 per share payable October 31, 2017,
to shareowners of record on October 18, 2017.
Pioneer High Income Trust | Semiannual Report | 9/30/17 63
ADDITIONAL INFORMATION
During the period, there have been no material changes in the Trust's investment
objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust which has not been
approved by the shareowners. During the period, there have been no changes in
the principal risk factors associated with investment in the Trust. There were
no changes in the persons who are primarily responsible for the day-to-day
management of the Trust's portfolio.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its shares
in the open market.
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the Adviser), the
Trust's investment adviser, was an indirect, wholly owned subsidiary of
UniCredit S.p.A. (UniCredit). On that date, UniCredit completed the sale of its
Pioneer Investments business, which includes the Adviser, to Amundi (the
Transaction). As a result of the Transaction, the Adviser became an indirect,
whollyowned subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A.
Amundi is headquartered in Paris, France, and, as of September 30, 2016, had
more than $1.1 trillion in assets under management worldwide.
Deloitte & Touche LLP (D&T), the Trust's previous independent registered public
accounting firm, informed the Audit Committee and the Board that it would no
longer be independent with respect to the Trust upon the completion of the
Transaction as a result of certain services being provided to Amundi and Credit
Agricole, and, accordingly, that it intended to resign as the Trust's
independent registered public accounting firm upon the completion of the
Transaction. D&T's resignation was effective on July 3, 2017, when the
Transaction was completed.
During the periods as to which D&T has served as the Trust's independent
registered public accounting firm, including the Trust's two most recent fiscal
years, D&T's reports on the Trust's financial statements have not contained an
adverse opinion or disclaimer of opinion and have not been qualified or modified
as to uncertainty, audit scope or accounting principles. Further, there have
been no disagreements with D&T on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or procedure,
which, if not resolved to the satisfaction of D&T, would have caused D&T to make
reference to the subject matter of the disagreement in connection with its
report on the financial statements. In addition, there have been no reportable
events of the kind described in Item 304(a)(1)(v) of Regulation S-K under the
Securities Exchange Act of 1934.
64 Pioneer High Income Trust | Semiannual Report | 9/30/17
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
a new independent registered public accounting firm, Ernst & Young LLP (EY).
Prior to its engagement, EY had advised the Trust's Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be inconsistent with
the auditor independence rules set forth by the Securities and Exchange
Commission (SEC): (a) project management support services to UniCredit in the
Czech Republic, Germany, Italy, Serbia and Slovenia in relation to twenty-two
projects, that were determined to be inconsistent with Rule 2-01(c)(4)(vi) of
Regulation S-X (management functions); (b) two engagements for UniCredit in
Italy where fees were contingent/success based and that were determined to be
inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent fees); (c) four
engagements where legal and expert services were provided to UniCredit in the
Czech Republic and Germany, and twenty engagements where the legal advisory
services were provided to UniCredit in Austria, Czech Republic, Italy and
Poland, that were determined to be inconsistent with Rule 2-01(c)(4)(ix) and (x)
of Regulation S-X (legal and expert services); and (d) two engagements for
UniCredit in Italy involving assistance in the sale of certain assets, that were
determined to be inconsistent with Rule 2-01(c)(4)(viii) of Regulation S-X
(broker-dealer, investment advisor or investment banking services). None of the
foregoing services involved the Trust, any of the other funds in the Pioneer
Family of Funds or any other Pioneer entity sold by UniCredit in the
Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Trust under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of the Trust, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
Pioneer High Income Trust | Semiannual Report | 9/30/17 65
Results of Shareholder Meeting
At a special meeting of shareholders held on June 13, 2017, shareholders of the
Trust were asked to consider the proposal described below. A report of the total
votes cast by the Trust's shareholders follows:
-----------------------------------------------------------------------------------------------
For Against Abstain Broker Non-Votes
-----------------------------------------------------------------------------------------------
Proposal 1 - To approve 17,381,221.447 768,847.000 703,760.201 0.000
a New Management
Agreement with
the Adviser
At the annual meeting of shareowners held on September 21, 2017, shareowners of
the Trust were asked to consider the proposal described below.
A report of the total votes cast by the Trust's shareholders follows:
--------------------------------------------------------------------------------------------
Nominee Class III For Withheld
--------------------------------------------------------------------------------------------
Proposal 2 - To elect three Class III Trustees
--------------------------------------------------------------------------------------------
Benjamin M. Friedman 25,035,947.044 1,237,642.065
--------------------------------------------------------------------------------------------
Margaret B.W. Graham 24,846,403.598 1,427,185.511
--------------------------------------------------------------------------------------------
Kenneth J. Taubes 24,990,794.262 1,282,794.847
--------------------------------------------------------------------------------------------
66 Pioneer High Income Trust | Semiannual Report | 9/30/17
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
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Amundi Pioneer 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 www.amundipioneer.com. This information is also available on the Securities
and Exchange Commission's web site at www.sec.gov.
Pioneer High Income Trust | Semiannual Report | 9/30/17 67
This page is for your notes.
68 Pioneer High Income Trust | Semiannual Report | 9/30/17
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
web site www.amundipioneer.com.
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] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2017 Amundi Pioneer Asset Management 19432-11-1117
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 29, 2017
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 29, 2017
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date November 29, 2017
* Print the name and title of each signing officer under his or her signature.