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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21043
Pioneer High Income Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: March 31
Date of reporting period: April 1, 2011 through September 30, 2011
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer High Income Trust
--------------------------------------------------------------------------------
Semiannual Report | September 30, 2011
--------------------------------------------------------------------------------
Ticker Symbol: PHT
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Schedule of Investments 12
Financial Statements 38
Notes to Financial Statements 43
Trustees, Officers and Service Providers 54
Pioneer High Income Trust | Semiannual Report | 9/30/11 1
President's Letter
Dear Shareowner,
During the first three quarters of 2011, the U.S. economy struggled to gain
solid footing. The economy went through a soft patch in the first half, and the
second half, so far, has been highlighted by the U.S. government's battle over
the debt ceiling and Standard & Poor's downgrade of the U.S. Treasury's credit
rating from the top rating of "AAA" for the first time in history. After
rallying nicely in the first half, U.S. equity markets reacted sharply this
summer to the political stalemate and the downgrade. There has been continued
pressure on equities due to concerns about the growing European sovereign-debt
crisis and its potential impact on the global economy.
Despite legitimate reasons for concern, we believe there are also reasons for
optimism that the U.S. economy will continue to exhibit low to flat growth and
not head into a severe recession. Corporations continue to post solid earnings
and, for the most part, are maintaining their positive earnings outlooks. They
also have strong balance sheets with improved net leverage and high cash
levels. Auto production has rebounded following the Japanese supply chain
interruptions caused by the earthquake and tsunami last spring. Retail sales
growth year-over-year has remained strong despite low consumer confidence. And
despite high unemployment in the U.S., private sector employment has grown
consistently since February 2010. There are certainly risks to our outlook,
including possible contagion from the European sovereign-debt and banking
crisis, the fiscal drag from federal and state budget cuts in the U.S., as well
as potential "negative feedback loops" from capital market volatility. But
broadly speaking, we think this subpar economic recovery is consistent with
recoveries from other "balance sheet"-caused recessions.
The difficult recovery process has been accompanied by wide market swings.
While this is a challenging environment, our investment professionals continue
to focus on finding good opportunities to invest in both equity and bond
markets using the same disciplined approach Pioneer has used since 1928. Our
approach is to identify undervalued individual securities with the greatest
potential for success, carefully weighing risk against reward. Our teams of
investment professionals continually monitor and analyze the relative
valuations of different sectors and securities globally to help build
portfolios that we believe can help you achieve your investment goals.
2 Pioneer High Income Trust | Semiannual Report | 9/30/11
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. The strategy has generally performed well for many
investors. Our advice, as always, is to work closely with a trusted financial
advisor to discuss your goals and work together to develop an investment
strategy that meets your individual needs. There is no single best strategy
that works for every investor.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. These statements should
not be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer High Income Trust | Semiannual Report | 9/30/11 3
Portfolio Management Discussion | 9/30/11
Mounting investor aversion to risk led to deteriorating performance by
corporate high-yield bonds and other perceived risky investments during the
six-month period ended September 30, 2011. As the period progressed, investors
increasingly sought ways to reduce credit risk amid growing unease about the
health of the economy. In the following interview, Andrew Feltus discusses the
factors that influenced the performance of Pioneer High Income Trust over the
six-month period. Mr. Feltus, senior vice president and portfolio manager at
Pioneer, and a member of Pioneer's fixed-income team, is responsible for the
daily management of the Trust.
Q How did Pioneer High Income Trust perform during the six months ended
September 30, 2011?
A Pioneer High Income Trust produced a total return of -9.92% at net asset
value and 3.17% at market price during the six months ended September 30,
2011, with shares of the Trust selling at a 32.2% premium to net asset
value at the end of the period. During the same six-month period, the
Trust's benchmark, the Bank of America Merrill Lynch High Yield Master II
Index (the BofA ML Index), returned -5.39%. Unlike the Trust, the BofA ML
Index is not leveraged. Over the same six-month period ended September 30,
2011, the average return (at market price) of the 39 closed end funds in
Lipper's High Current Yield Closed End Funds (Leveraged) category was
-6.70%. On September 30, 2011, the 30-day SEC yield on the Trust's shares
was 11.02%.
Q What factors influenced the performance of the Trust during the six months
ended September 30, 2011?
A A general deterioration in investor confidence led to negative performance by
high-yield bonds generally, and in the performance of the Trust at net
asset value over the six month ended September 30, 2011. The Trust's use of
leverage in the falling market was the major factor leading to its
underperformance relative to the BofA ML Index. The Trust's emphasis on
lower-rated high-yield bonds also had a negative effect against
performance, relative to the BofA ML Index, as securities with higher
credit ratings generally held up better than lower-rated bonds during the
period. The Trust's return at market price was a somewhat different story.
Over the six months, the Trust generated a positive total return at market
price, helped by consistent dividends and a share price that fluctuated
less than the high-yield market.
Q How would you describe the investment environment during the six months ended
September 30, 2011, and its effect on the Trust?
A The six-month period was marked by growing concerns that the economy was
weakening. As a consequence, investments that carried credit risk fell
4 Pioneer High Income Trust | Semiannual Report | 9/30/11
sharply in price, especially in the third quarter (July-September 2011).
High-yield bonds, which had performed positively during the first half of
2011, were particularly affected when investors grew more worried about the
health of the economy and about the ability of policy makers, both home and
abroad, to deal with problems such as the European sovereign-debt crisis
and a raising of the U.S. debt ceiling. While these concerns finally
gripped the market in the third quarter, hints of economic deterioration
actually had begun to be revealed in April 2011, when weakness appeared in
the market for mortgage-backed securities. As the spring progressed,
sovereign-debt problems in Greece and several other European countries once
again began to capture the attention of investors, raising new concerns
about the potential contagious effects that European debt problems might
have on the global economy. In particular, investors grew more worried that
the widening sovereign-debt problems could expose weakness in the financial
health of major European banks, many of which appeared to be under-
capitalized. As the six-month period ended on September 30, 2011, a
resolution to the debt problems in Europe appeared to be far from settled.
Investor confidence was shaken further during the summer months by a series
of developments in the United States, where new reports indicated a
deceleration of economic growth trends. While retail sales seemed to hold
up, industrial production appeared to slow, at least partly due to the
effects of the March 2011 earthquake and tsunami in Japan. Unemployment
remained high, and the growth of the economy, as measured by gross national
product, slowed to a 1.3% annual pace for the second quarter of 2011
(April-June). At the same time, political stalemate in Washington, D.C.,
highlighted by the debate over the national debt ceiling, further
undermined investor confidence that U.S. policy makers could reach
consensus. In August, almost immediately after the debt ceiling debate was
concluded, the Standard & Poor's (S&P) credit rating agency downgraded its
rating for U.S. Treasury securities from the top level of AAA for the first
time since the rating was first awarded to the U.S. by one of S&P's
predecessor firms in 1917. In response to all the negative news, the demand
for high-yield bonds and for other credit-sensitive securities weakened as
anxious investors sought out higher-rated debt. As corporate bond prices
fell, the yield spreads between high-yield bonds and Treasuries widened
substantially, reflecting the market's demand for higher yields in exchange
for taking on credit risk.
Q How was the Trust's portfolio of investments positioned during the six months
ended September 30, 2011, and how did the positioning affect the Trust's
performance?
A We maintained a consistent investment strategy for the Trust throughout the
six months, emphasizing high-yield corporate securities. At September 30,
2011, for example, 69.1% of the Trust's total investment portfolio was
Pioneer High Income Trust | Semiannual Report | 9/30/11 5
invested in U.S. high-yield corporate debt. We believed that the price
declines in high-yield bonds were inconsistent with the underlying
fundamentals of the companies and securities in which we invested the
Trust, and that the fears of a double-dip recession were overstated. For
example, the yield spreads of high-yield bonds compared with Treasury
securities widened over the six months, to levels consistent with a nearly
10% annual default rate for the debt. (Spreads in this case are defined as
the differences in yield between Treasuries and higher-yielding
securities.) However, the trailing 12-month default rate for high-yield
bonds was just 2%. Even factoring in future increases in the default rate,
we thought that the high-yield bond prices represented good values,
especially as corporate earnings growth continued to be solid. The emphasis
on lower-quality holdings tended to hold back the Trust's results when
high-yield bonds declined in price, especially over the final three months
of the period as lower-quality securities underperformed the BofA ML Index,
despite their higher yields.
A number of investments contributed positively to the Trust's results over
the six-month period, despite the overall market trend. One of the
highlights came from our decision early in 2011 to take advantage of good
investment opportunities in municipal bonds. We found that municipal bonds,
in general, were trading at better prices than comparable maturity and
quality taxable bonds, and so we established positions in that market for
the Trust, maintaining an average weighting of 4.3% of the Trust's total
investment portfolio at the end of the period. The decision supported the
Trust's performance as municipals recovered over the six-month period. The
Trust's investments in bank loans, which also are not part of the BofA ML
benchmark index, also held up relatively well. Bank loans accounted for
5.2% of the Trust's total investment portfolio as of September 30, 2011.
Among individual investments, the Trust's performance was helped by the
bonds of three companies whose debts were expected to be refinanced when
they were acquired. They included bonds of: PAETEC, a broadband services
provider; Aker Drilling, an offshore oil drilling firm; and Vangent, which
provides information technology services to government agencies. In
addition, Vanguard Health Systems, which operates several hospitals, had a
successful initial public stock offering and retired its existing
subordinated debt.
While those corporate events helped the Trust's performance, the takeover
of Graham Packaging by Reynolds Group proved a negative for the Trust over
the period. We had invested the Trust in the debt of both companies, but
Graham's debt was not retired at the time of the acquisition and Reynolds
increased its indebtedness during the deal, resulting in declines in the
prices for the securities of both companies. Another of the Trust's
investments that did not help performance was the debt of Sevan Marine,
6 Pioneer High Income Trust | Semiannual Report | 9/30/11
which manufactures offshore drilling platforms for the energy industry. The
company restructured its debt when it ran into cash-flow problems.
Q Could you describe how leverage is used in managing the Trust?
A The Trust employs leverage provided by auction market-preferred shares to
invest the Trust in additional higher-yielding securities that typically
pay higher dividends than the dividend rates payable on the preferred
shares, thereby increasing the Trust's yield. The use of leverage can
increase the Trust's potential to pay higher yields to its shareowners than
would generally be paid by an unleveraged portfolio. During periods of low
market interest rates and modest borrowing costs, the use of leverage can
have a significant positive effect on the Trust's yield. However, just as
the use of leverage provides the potential to enhance yield, it also can
increase investment risk. During periods when high-yield bond prices tend
to change, the use of leverage can magnify the effect of changing prices on
the Trust's total return, which is the combination of yield and price
change. When bond prices rise, the use of leverage can further enhance the
Trust's total return; when bond prices decline, the use of leverage can
magnify the price loss to the Trust.
Q Did the level of leverage in the Trust change over the six months?
A At the end of the six-month period (September 30, 2011), 30.3% of the Trust's
total managed assets were financed by leverage. While the figure was higher
than the 27.3% of the Trust's managed assets leveraged at the beginning of
the six-month period on April 1, 2011, the increase was due to declines in
the values of the bonds held by the Trust. The absolute amount of leverage
used by the Trust was unchanged over the six months ended September 30,
2011.
Q What is your investment outlook?
A We expect the economy to maintain its growth trajectory, at a slow-but-
steady pace. The risks of a "double-dip" recession are, in our opinion,
overblown. Corporate profits should continue to be healthy, especially in
the industrials sector, which we tend to emphasize in managing the Trust.
While we think it is possible that the default rate for high-yield bonds
may rise, we don't expect that the rate will approach the levels consistent
with the price of high-yield bonds in the current market. As a result, we
believe those securities are undervalued and represent good opportunities.
We think the main threats to the market stem from a lack of confidence in
the ability of governments to deal with their financial problems, rather
than any renewed fundamental weakness in the private sector.
Please refer to the Schedule of Investments on pages 12-37 for a full listing
of Trust securities.
Pioneer High Income Trust | Semiannual Report | 9/30/11 7
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 fair price at the times
when the Trust believes it is desirable to do so, and their market price is
generally more volatile than that of more liquid securities. Illiquid
securities are also more difficult to value and investment of the Trust's
assets in illiquid securities may restrict the Trust's ability to take
advantage of market opportunities.
The Trust currently uses leverage through the issuance of preferred shares.
Leverage creates significant risks, including the risk that the Trust's income
or capital appreciation will not be sufficient to cover the cost of leverage,
which may adversely affect the return for the holders of common shares. Since
February of 2008, regularly scheduled auctions for the Trust's preferred shares
have failed and preferred shareowners have not been able to sell their shares
at auction. The Board of Trustees of the Trust has considered, and continues to
consider, this issue.
The Trust is required to maintain certain regulatory and rating agency asset
coverage requirements in connection with its outstanding preferred shares. In
order to maintain required asset coverage levels, the Trust may be required to
alter the composition of its investment portfolio or take other actions, such
as redeeming preferred shares with the proceeds from portfolio transactions, at
what might be inopportune times in the market. Such actions could reduce the
net earnings or returns to holders of the Trust's common shares over time.
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.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. These statements should
not be relied upon for any other purposes.
8 Pioneer High Income Trust | Semiannual Report | 9/30/11
Portfolio Summary | 9/30/11
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Corporate Bonds & Notes 79.7%
Floating Rate Loan Interests 5.2%
Convertible Bonds & Notes 5.0%
Municipal Bonds 4.3%
Asset Backed Securities 2.1%
Common Stock 1.5%
Sovereign Debt Obligations 0.7%
Preferred Stock 0.5%
Municipal Collateralized Debt Obligations 0.4%
Convertible Preferred Stock 0.3%
Collateralized Mortgage Obligations 0.3%
Rights/Warrants* 0.0%
*Less than 0.01%
Portfolio Maturity
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
0-1 year 19.5%
1-3 years 21.6%
3-4 years 7.2%
4-6 years 13.5%
6-8 years 14.0%
8 + years 24.2%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. NCO Group, Inc., 11.875%, 11/15/14 1.32%
--------------------------------------------------------------------------------
2. Cia Brasileira de Bebida, 10.5%, 12/15/11 1.22
--------------------------------------------------------------------------------
3. Allmerica Financial Corp., 7.625%, 10/15/25 1.21
--------------------------------------------------------------------------------
4. Southern States Cooperative, Inc., 11.25%, 5/15/15 (144A) 1.18
--------------------------------------------------------------------------------
5. Charlotte Special Facilities Refunding Revenue, 5.6%, 7/1/27 1.13
--------------------------------------------------------------------------------
6. HUB International Holdings, Inc., 10.25%, 6/15/15 (144A) 1.03
--------------------------------------------------------------------------------
7. Forest City Enterprises, Inc., 7.625%, 6/1/15 0.98
--------------------------------------------------------------------------------
8. Teck Resources, Ltd., 10.25%, 5/15/16 0.97
--------------------------------------------------------------------------------
9. Sally Holdings LLC, 10.5%, 11/15/16 0.97
--------------------------------------------------------------------------------
10. Chrysler Group LLC/CG Co-Issuer, Inc., 8.0%, 6/15/19 (144A) 0.95
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
Pioneer High Income Trust | Semiannual Report | 9/30/11 9
Prices and Distributions | 9/30/11
Market Value per Common Share
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--------------------------------------------------------------------------------
9/30/11 3/31/11
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$16.35 $16.55
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Premium 32.2% 15.5%
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Net Asset Value per Common Share
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--------------------------------------------------------------------------------
9/30/11 3/31/11
--------------------------------------------------------------------------------
$12.37 $14.33
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Distributions per Common Share
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--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
4/1/11 - 9/30/11 $0.8250 $ -- $ --
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10 Pioneer High Income Trust | Semiannual Report | 9/30/11
Performance Update | 9/30/11
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, compared to that of the Bank of America
Merrill Lynch High Yield Master II Index.
Cumulative Total Returns
(As of September 30, 2011)
--------------------------------------------------------------------------------
Net Asset Market
Period Value (NAV) Price
--------------------------------------------------------------------------------
Life-of-Trust
(4/26/02) 169.47% 240.53%
5 Years 46.69 76.13
1 Year 0.84 11.79
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
VALUE OF $10,000 INVESTMENT
Pioneer High Bank of America Merrill Lynch
Income Trust High Yield Master II Index
4/02 10000 10000
8877 8879
9/03 12377 11481
14580 12899
9/05 15473 13763
18371 14855
9/07 19897 16004
17574 14141
9/09 20827 17302
26722 20506
9/11 34053 20777
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV, due to such factors as interest rate
changes and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Closed-end funds, unlike open-end funds, are not continuously offered. There is
a one-time public offering and, once issued, shares of closed-end funds are
sold in the open market through a stock exchange and frequently trade at prices
lower than their NAV. NAV per common share is total assets less total
liabilities, which includes preferred shares, divided by the number of common
shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends
are assumed to be reinvested at prices obtained under the Trust's dividend
reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the sale of Trust shares.
Index comparison begins April 30, 2002. The Bank of America Merrill Lynch High
Yield Master II Index is a 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 is not leveraged. It is not possible to invest directly in
the Index.
Pioneer High Income Trust | Semiannual Report | 9/30/11 11
Schedule of Investments | 9/30/11 (Consolidated) (unaudited)
-------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
-------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 2.9% of Net Assets
TRANSPORTATION -- 0.8%
Airlines -- 0.8%
901,814(a) B-/Caa2 Aviation Capital Group Trust, 0.687%,
11/15/25 (144A) $ 550,106
2,000,000(a) CCC+/Caa2 Lease Investment Flight Trust, 0.619%, 7/15/31 1,310,000
2,336,051(a) CCC/Ca Long Beach Mortgage Loan Trust, 0.425%, 3/25/46 759,109
------------
Total Transportation $ 2,619,215
-------------------------------------------------------------------------------------------------------
BANKS -- 0.8%
Thrifts & Mortgage Finance -- 0.8%
531,442(a) AA+/Baa2 ACE Securities Corp., 1.135%, 12/25/34 $ 368,882
1,690,795(a) B-/Caa1 Aircraft Finance Trust, 0.709%, 5/15/24 (144A) 879,213
30,936(a) B-/Ba3 Aircraft Finance Trust, 0.729%, 5/15/24 (144A) 29,080
234,572(a) CCC/Caa3 Amortizing Residential Collateral Trust,
1.51%, 1/25/32 90,826
280,000(a) CCC/B2 Bear Stearns Asset Backed Securities Trust,
0.685%, 1/25/47 100,522
511,400(a) CCC/Caa1 Citigroup Mortgage Loan Trust, Inc., 0.295%, 7/25/45 382,220
166,635(a) AAA/Caa2 FBR Securitization Trust, 0.935%, 10/25/35 89,495
965,000(a) CCC/B2 Home Equity Asset Trust, 0.345%, 3/25/37 769,584
250,000(a) CCC/B3 Security National Mortgage Loan Trust, 6.55%,
4/25/37 (144A) 175,000
------------
Total Banks $ 2,884,822
-------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.4%
Investment Banking & Brokerage -- 0.1%
500,000 BBB-/NR Bear Stearns Commercial Mortgage Securities, 6.94%,
2/15/35 (144A) $ 496,523
-------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.3%
850,000 BBB-/Baa3 Dominos Pizza Master Issuer LLC, 5.261%,
4/25/37 (144A) $ 858,500
------------
Total Diversified Financials $ 1,355,023
-------------------------------------------------------------------------------------------------------
UTILITIES -- 0.9%
Multi-Utilities -- 0.9%
3,457,388 NR/NR Ormat Funding Corp., 8.25%, 12/30/20 $ 3,232,657
------------
Total Utilities $ 3,232,657
-------------------------------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $9,980,862) $ 10,091,717
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
12 Pioneer High Income Trust | Semiannual Report | 9/30/11
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.5%
of Net Assets
BANKS -- 0.5%
Thrifts & Mortgage Finance -- 0.5%
1,504,000(a) BBB+/Caa2 Carrington Mortgage Loan Trust, 0.435%, 2/25/37 $ 731,018
216,770(a) AA+/Ba3 Carrington Mortgage Loan Trust, 0.355%, 2/25/37 208,447
353,022(a) CCC/Caa3 Countrywide Alternative Loan Trust,
0.565%, 10/25/35 191,183
177,534(a) CCC/B1 JPMorgan Mortgage Trust, 2.843%, 11/25/35 168,338
136,614(a) D/C Luminent Mortgage Trust, 0.495%, 7/25/36 1,011
462,654(a) CCC/NR WaMu Mortgage Pass-Through Certificates,
5.398%, 12/25/36 402,299
------------
Total Banks $ 1,702,296
--------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $2,352,141) $ 1,702,296
--------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES -- 112.8% of Net Assets
ENERGY -- 14.2%
Coal & Consumable Fuels -- 3.5%
1,350,000 BB/Ba3 Bumi Capital Pte, Ltd., 12.0%, 11/10/16 (144A) $ 1,309,500
2,329,000 BB-/B1 Drummond Co., Inc., 9.0%, 10/15/14 (144A) 2,381,403
3,890,000 B/Caa1 Foresight Energy LLC, 9.625%, 8/15/17 (144A) 3,928,900
2,125,000 B+/B2 James River Escrow, Inc., 7.875%, 4/1/19 (144A) 1,785,000
1,166,000 B/B3 Murray Energy Corp., 10.25%, 10/15/15 (144A) 1,113,530
1,900,000(b) B-/Caa1 Xinergy Corp., 9.25%, 5/15/19 (144A) 1,700,500
------------
$ 12,218,833
--------------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.8%
2,740,000 BB-/B1 Northern Tier Energy LLC, 10.5%, 12/1/17 (144A) $ 2,849,600
--------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 2.5%
NOK 2,000,000(a) NR/NR Aker Drilling ASA, 10.05%, 2/24/16 $ 359,393
NOK 3,500,000 NR/NR Aker Drilling ASA, 11.0%, 2/24/16 628,939
2,462,564 NR/NR DDI Holding AS, 9.3%, 1/19/12 (144A) 2,413,313
500,000 B-/Caa1 Hercules Offshore, Inc., 10.5%, 10/15/17 (144A) 472,500
1,700,000 NR/NR Ocean Rig UDW, Inc., 9.5%, 4/27/16 1,479,000
1,085,000 B-/B3 Offshore Group Investments, Ltd., 11.5%, 8/1/15 1,117,550
1,900,000 B/NR Pioneer Drilling Co., 9.875%, 3/15/18 1,985,500
------------
$ 8,456,195
--------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 2.8%
4,073,000 B+/B1 American Petroleum Tankers LLC, 10.25%, 5/1/15 $ 4,022,087
600,000(c) NR/NR DP Producer AS, 0.0%, 12/5/11 (144A) 30,000
3,015,000 B-/B2 Expro Finance Luxembourg SCA, 8.5%,
12/15/16 (144A) 2,623,050
1,260,000 NR/Caa1 Forbes Energy Services, Ltd., 9.0%, 6/15/19 (144A) 1,165,500
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 13
Schedule of Investments | 9/30/11 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- (continued)
238,581(c) NR/NR Nexus 1 Pte., Ltd., 10.5%, 3/7/12 (144A) $ 239
385,386(c) NR/NR PetroProd, Ltd., 0.0%, 1/12/12 (144A) 385
NOK 4,500,000 NR/NR Sevan Marine ASA, 13.25%, 8/10/15 498,212
NOK 6,000,000 NR/NR Sevan Marine ASA, 14.0%, 12/22/14 235,054
200,000 NR/NR Sevan Marine ASA, 15.0%, 7/22/12 195,084
820,000(a) NR/NR Sevan Marine ASA, 3.417%, 5/14/13 (144A) 533,000
800,000 NR/NR Sevan Marine ASA, 12.0%, 8/10/15 (144A) 544,000
------------
$ 9,846,611
--------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 3.1%
775,000 BB-/B2 Berry Petroleum Co., 10.25%, 6/1/14 $ 868,000
390,000 BB-/B1 Denbury Resources, Inc., 9.75%, 3/1/16 421,200
678,000 B/B2 Linn Energy LLC, 11.75%, 5/15/17 786,480
2,400,000 B+/NR MIE Holdings Corp., 9.75%, 5/12/16 (144A) 1,848,000
2,125,000(d) NR/NR Norse Energy Corp., ASA, 13.5%, 7/14/13 (144A) 1,105,000
NOK 2,000,000 NR/NR Norwegian Energy Co., AS, 10.25%, 4/16/16 306,591
NOK 5,000,000 NR/NR Norwegian Energy Co., AS, 12.9%, 11/20/14 774,996
3,660,000(b) B-/B3 Quicksilver Resources, Inc., 7.125%, 4/1/16 3,220,800
1,497,000 B+/Caa1 Rosetta Resources, Inc., 9.5%, 4/15/18 1,526,940
------------
$ 10,858,007
--------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 1.0%
1,000,000 BB-/B3 Coffeyville Resources LLC, 10.875%, 4/1/17 (144A) $ 1,115,000
2,215,000 BB+/Ba1 Tesoro Corp., 9.75%, 6/1/19 2,392,200
------------
$ 3,507,200
--------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.5%
350,000(a) BB/Ba1 Enterprise Products Operating LLC, 8.375%, 8/1/66 $ 362,688
1,524,000(a) BB/Ba1 Southern Union Co., 7.2%, 11/1/66 1,287,780
------------
$ 1,650,468
------------
Total Energy $ 49,386,914
--------------------------------------------------------------------------------------------------------
MATERIALS -- 18.6%
Aluminum -- 0.3%
1,031,694(a)(e) B/B2 Noranda Aluminum Acquisition Corp.,
4.417%, 5/15/15 $ 941,421
--------------------------------------------------------------------------------------------------------
Commodity Chemicals -- 2.9%
3,250,000 NR/WR Basell Finance Co., 8.1%, 3/15/27 (144A) $ 3,542,500
2,600,000 CCC+/NR Hexion US Finance Corp., 9.0%, 11/15/20 1,904,500
4,500,000 BBB-/Ba1 Methanex Corp., 8.75%, 8/15/12 4,668,165
------------
$ 10,115,165
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer High Income Trust | Semiannual Report | 9/30/11
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
Construction Materials -- 1.9%
5,690,000 CCC+/B3 AGY Holding Corp., 11.0%, 11/15/14 $ 4,125,250
3,000,000 B-/Caa2 Texas Industries, Inc., 9.25%, 8/15/20 2,332,500
------------
$ 6,457,750
--------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 1.4%
EURO 350,000 CCC/Caa1 Ineos Group Holdings Plc, 7.875%, 2/15/16 (144A) $ 321,673
2,625,000(b) CCC/Caa1 Ineos Group Holdings Plc, 8.5%, 2/15/16 (144A) 1,942,500
1,775,000 NR/NR Kinove German Bondco GmbH, 9.625%,
6/15/18 (144A) 1,606,375
EURO 950,000 NR/Caa1 Momentive Performance Materials, Inc.,
9.5%, 1/15/21 1,006,946
------------
$ 4,877,494
--------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.8%
2,180,000 NR/WR Aleris International, Inc., 10.0%, 12/15/16 $ 218
1,725,000 B-/NR Mirabela Nickel, Ltd., 8.75%, 4/15/18 (144A) 1,397,250
4,070,000 BBB/Baa2 Teck Resources, Ltd., 10.25%, 5/15/16 4,784,692
------------
$ 6,182,160
--------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 2.2%
EURO 2,250,000 B-/B3 Ardagh Glass Finance Plc, 8.75%, 2/1/20 (144A) $ 2,324,495
1,500,000(e) B-/Caa1 Ardagh Group SA, 11.125%, 6/1/18 (144A) 1,245,000
1,450,000 CCC+/B3 BWAY Holdings Co., 10.0%, 6/15/18 1,522,500
2,534,124(e) CCC+/Caa1 BWAY Holdings Co., 10.125%, 11/1/15 2,445,430
------------
$ 7,537,425
--------------------------------------------------------------------------------------------------------
Paper Packaging -- 4.0%
2,000,000 CCC/Caa1 Berry Plastics Corp., 9.5%, 5/15/18 $ 1,700,000
2,657,034(d)(e) NR/NR Corp Durango SAB de CV, 7.0%, 8/27/16 2,019,346
2,220,000 CCC+/Caa1 Exopack Holdings Corp., 10.0%, 6/1/18 (144A) 2,075,700
2,795,000 CCC+/Caa1 Graham Packaging Co., 9.875%, 10/15/14 2,819,456
2,500,000 B/B3 Pretium Packaging LLC, 11.5%, 4/1/16 (144A) 2,450,000
500,000 BB/B1 Sealed Air Corp., 8.125%, 9/15/19 (144A) 505,000
2,250,000 B/B3 U.S. Corrugated, Inc., 10.0%, 6/1/13 2,300,625
------------
$ 13,870,127
--------------------------------------------------------------------------------------------------------
Paper Products -- 1.6%
1,685,000 B+/B1 ABI Escrow Corp., 10.25%, 10/15/18 (144A) $ 1,760,825
600,000 CCC+/B3 Appleton Papers, Inc., 11.25%, 12/15/15 582,000
2,000,000 B+/B1 Appleton Papers, Inc., 10.5%, 6/15/15 (144A) 1,960,000
405,000 BB/Ba3 Clearwater Paper Corp., 10.625%, 6/15/16 443,981
776,000 B+/B3 Mercer International, Inc., 9.5%, 12/1/17 762,420
------------
$ 5,509,226
--------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.1%
575,000(b) B/B1 Vertellus Specialties, Inc., 9.375%, 10/1/15 (144A) $ 503,125
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 15
Schedule of Investments | 9/30/11 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
Steel -- 2.4%
4,660,000(b) CCC+/Caa2 Algoma Acquisition Corp., 9.875%, 6/15/15 (144A) $ 3,611,500
1,100,000 B+/B3 Atkore International, Inc., 9.875%, 1/1/18 (144A) 995,500
2,400,000 BBB-/Ba1 CSN Islands VIII Corp., 9.75%, 12/16/13 (144A) 2,640,000
1,250,000 B/B3 Severstal Columbus LLC, 10.25%, 2/15/18 1,275,000
------------
$ 8,522,000
------------
Total Materials $ 64,515,893
--------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 9.0%
Aerospace & Defense -- 2.7%
3,300,000(b) B/B3 ADS Tactical, Inc., 11.0%, 4/1/18 (144A) $ 3,225,750
1,465,000 BB/Ba3 BE Aerospace, Inc., 8.5%, 7/1/18 1,567,550
570,000 BBB-/Ba3 Digitalglobe, Inc., 10.5%, 5/1/14 629,850
4,139,000 B-/B2 DynCorp International, Inc., 10.375%, 7/1/17 (144A) 3,611,277
295,000 BB-/Ba3 GeoEye, Inc., 9.625%, 10/1/15 321,550
------------
$ 9,355,977
--------------------------------------------------------------------------------------------------------
Building Products -- 1.0%
1,935,000(c) NR/WR Industrias Unidas SA de CV, 11.5%,
11/15/16 (144A) $ 1,741,500
2,375,000 B-/Caa2 New Enterprise Stone & Lime Co., 11.0%,
9/1/18 (144A) 1,882,188
------------
$ 3,623,688
--------------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.4%
1,500,000 B+/Ba3 Abengoa Finance SAU, 8.875%, 11/1/17 (144A) $ 1,372,500
--------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.4%
570,000 B+/Caa1 American Railcar Industries, Inc., 7.5%, 3/1/14 $ 558,600
774,000(b) B+/B3 Manitowoc Co., Inc., 9.5%, 2/15/18 756,585
------------
$ 1,315,185
--------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.6%
2,000,000 B/B2 WireCo WorldGroup, 9.75%, 5/15/17 (144A) $ 2,020,000
--------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.3%
1,475,000 B-/NR Little Traverse Bay Bands of Odawa Indians, 9.0%,
8/31/20 (144A) $ 1,194,750
--------------------------------------------------------------------------------------------------------
Industrial Machinery -- 2.1%
3,180,000(c) NR/WR Indalex Holding Corp., 11.5%, 2/1/14 $ 31,800
1,080,000 B/B3 Liberty Tire Recycling, 11.0%, 10/1/16 (144A) 1,101,600
5,170,000(b) CCC+/B3 Mueller Water Products, Inc., 7.375%, 6/1/17 4,032,600
2,440,000 B+/NR WPE International Cooperatief UA, 10.375%,
9/30/20 (144A) 2,196,000
------------
$ 7,362,000
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Trust | Semiannual Report | 9/30/11
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 1.5%
1,790,000 B-/B3 Intcomex, Inc., 13.25%, 12/15/14 $ 1,740,775
3,370,000 B/B1 Wesco Distribution, Inc., 7.5%, 10/15/17 3,378,425
------------
$ 5,119,200
------------
Total Capital Goods $ 31,363,300
--------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 2.3%
Diversified Support Services -- 1.0%
4,450(f) NR/Caa1 MSX International UK, 12.5%, 4/1/12 (144A) $ 3,649,000
--------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 0.4%
892,000 CCC+/B3 Brickman Group Holdings, Inc., 9.125%,
11/1/18 (144A) $ 776,041
315,000 BB/B2 Casella Waste Systems, Inc., 11.0%, 7/15/14 333,900
1,275,000(a)(c)(g) NR/NR Ohio Air Quality Development Authority Revenue,
7.29%, 6/8/22 (144A) 133,492
------------
$ 1,243,433
--------------------------------------------------------------------------------------------------------
Security & Alarm Services -- 0.9%
3,175,000 CCC+/Caa1 WP Rocket Merger Sub, Inc., 10.125%,
7/15/19 (144A) $ 3,016,250
------------
Total Commercial & Professional Services $ 7,908,683
--------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 2.6%
Air Freight & Logistics -- 1.3%
500,000 B/B2 AMGH Merger Sub, Inc., 9.25%, 11/1/18 (144A) $ 500,000
720,000 CCC+/Caa1 CEVA Group Plc, 11.625%, 10/1/16 (144A) 703,800
EURO 272,000 CCC/Caa3 CEVA Group Plc, 10.0%, 12/1/16 (144A) 233,563
3,351,000 CCC+/Caa1 CEVA Group Plc, 11.5%, 4/1/18 (144A) 3,082,920
------------
$ 4,520,283
--------------------------------------------------------------------------------------------------------
Airlines -- 0.3%
881,000 BB-/Ba2 Delta Air Lines, Inc., 9.5%, 9/15/14 (144A) $ 907,430
--------------------------------------------------------------------------------------------------------
Railroads -- 0.3%
947,812(e) CCC/Caa3 Florida East Coast Holdings Corp., 10.5%,
8/1/17 (144A) $ 890,943
--------------------------------------------------------------------------------------------------------
Trucking -- 0.7%
1,375,000(b) B-/Caa1 Swift Services Holdings, Inc., 10.0%, 11/15/18 $ 1,227,188
1,430,000 B/B3 Syncreon Global Ireland, Ltd., 9.5%, 5/1/18 (144A) 1,344,200
------------
$ 2,571,388
------------
Total Transportation $ 8,890,044
--------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 5.7%
Auto Parts & Equipment -- 4.0%
1,250,000 CCC+/Caa1 Allison Transmission, Inc., 11.0%, 11/1/15 (144A) $ 1,293,750
2,761,300(e) NR/Caa1 Allison Transmission, Inc., 11.25%, 11/1/15 (144A) 2,916,623
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 17
Schedule of Investments | 9/30/11 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
Auto Parts & Equipment -- (continued)
1,140,000 B/B3 International Automotive Components Group S.L.,
9.125%, 6/1/18 (144A) $ 1,065,900
855,000(b) B+/B1 Pinafore LLC, 9.0%, 10/1/18 (144A) 876,375
4,760,000 CCC/Caa1 Stanadyne Corp., 10.0%, 8/15/14 4,474,400
1,500,000 CCC-/Caa3 Stanadyne Corp., 12.0%, 2/15/15 1,432,500
1,779,000 B+/B1 Tower Automotive Holdings USA LLC, 10.625%,
9/1/17 (144A) 1,761,210
------------
$ 13,820,758
--------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 1.5%
6,000,000(b)(h) B/B2 Chrysler Group LLC/CG Co-Issuer, Inc., 8.0%,
6/15/19 (144A) $ 4,680,000
500,000(h) B/B2 Chrysler Group LLC/CG Co-Issuer, Inc., 8.25%,
6/15/21 (144A) 385,000
------------
$ 5,065,000
--------------------------------------------------------------------------------------------------------
Tires & Rubber -- 0.2%
756,000 B+/B1 Goodyear Tire & Rubber Co., 10.5%, 5/15/16 $ 818,370
------------
Total Automobiles & Components $ 19,704,128
--------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 6.3%
Homebuilding -- 1.5%
3,115,000 CCC/Caa2 Beazer Homes USA, Inc., 9.125%, 6/15/18 $ 1,915,725
750,000 CCC/Caa2 Beazer Homes USA, Inc., 9.125%, 5/15/19 (144A) 476,250
3,060,000 B+/B1 Meritage Homes Corp., 6.25%, 3/15/15 2,937,600
------------
$ 5,329,575
--------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 3.2%
1,435,000 B/B2 Jarden Corp., 7.5%, 5/1/17 $ 1,463,700
3,000,000 B-/Caa1 Reynolds Group Holdings, 9.0%, 4/15/19 (144A) 2,550,000
3,690,000(b) B/B2 Yankee Acquisition Corp., 8.5%, 2/15/15 3,542,400
2,500,000 CCC+/B3 Yankee Acquisition Corp., 9.75%, 2/15/17 2,306,250
1,425,000(e) CCC+/Caa1 YCC Holdings LLC, 10.25%, 2/15/16 1,211,250
------------
$ 11,073,600
--------------------------------------------------------------------------------------------------------
Leisure Products -- 1.6%
EURO 2,100,000 CCC+/Caa1 Heckler & Koch GmbH, 9.5%, 5/15/18 (144A) $ 1,746,894
4,000,000 B/B2 Icon Health & Fitness, Inc., 11.875%,
10/15/16 (144A) 3,640,000
------------
$ 5,386,894
------------
Total Consumer Durables & Apparel $ 21,790,069
--------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 3.8%
Business Services -- 0.6%
2,600,000 B-/Caa2 Sitel LLC/Sitel Finance Corp., 11.5%, 4/1/18 $ 2,054,000
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Trust | Semiannual Report | 9/30/11
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
Casinos & Gaming -- 0.6%
1,650,000(c) NR/NR Buffalo Thunder Development Authority, 9.375%,
12/15/14 (144A) $ 598,125
975,000 B+/B2 FireKeepers Development Authority, 13.875%,
5/1/15 (144A) 1,101,750
1,375,000(c) NR/NR Mashantucket Western Pequot Tribe, 8.50%,
11/15/15 (144A) 73,906
740,000 CCC/Caa2 Shingle Springs Tribal Gaming Authority, 9.375%,
6/15/15 (144A) 432,900
------------
$ 2,206,681
--------------------------------------------------------------------------------------------------------
Education Services -- 0.1%
555,000 B/B2 Cambium Learning Group, Inc., 9.75%,
2/15/17 (144A) $ 530,025
--------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.4%
1,500,000 B-/B3 Seven Seas Cruises S de RL LLC, 9.125%,
5/15/19 (144A) $ 1,485,000
--------------------------------------------------------------------------------------------------------
Restaurants -- 1.1%
4,055,000(b)(d) CCC+/Caa1 Burger King Capital Holdings LLC, 0.0%,
4/15/19 (144A) $ 2,220,113
1,400,000(b) B-/B3 Burger King Corp., 9.875%, 10/15/18 1,442,000
------------
$ 3,662,113
--------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 1.0%
500,000 BB/Ba3 Avis Budget Car Rental LLC/Avis Budget Finance, Inc.,
9.625%, 3/15/18 $ 495,000
3,000,000 B-/B3 Stonemor Operating LLC, 10.25%, 12/1/17 2,872,500
------------
$ 3,367,500
------------
Total Consumer Services $ 13,305,319
--------------------------------------------------------------------------------------------------------
MEDIA -- 5.9%
Advertising -- 1.6%
2,900,000 NR/B3 Good Sam Enterprises LLC, 11.5%, 12/1/16 $ 2,711,500
2,690,000 B+/B2 MDC Partners, Inc., 11.0%, 11/1/16 2,905,200
------------
$ 5,616,700
--------------------------------------------------------------------------------------------------------
Broadcasting -- 1.7%
3,638,075(e) CCC+/Caa3 Intelsat Bermuda, Ltd., 11.5%, 2/4/17 $ 3,128,744
EURO 1,200,000 B/B1 Nara Cable Funding, Ltd., 8.875%, 12/1/18 (144A) 1,304,133
535,000 B-/Caa1 Telesat Canada, 11.0%, 11/1/15 572,450
800,000 B-/Caa1 Telesat Canada, 12.5%, 11/1/17 896,000
------------
$ 5,901,327
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 19
Schedule of Investments | 9/30/11 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
Cable -- 0.7%
1,096,054 B/B2 CCH II LLC/CCH II Capital Corp., 13.5%, 11/30/16 $ 1,249,501
1,500,000(b) CCC+/Caa1 Ono Finance II Plc, 10.875%, 7/15/19 (144A) 1,050,000
EURO 350,000 CCC+/Caa1 Ono Finance II Plc, 11.125%, 7/15/19 (144A) 309,933
------------
$ 2,609,434
--------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.9%
2,765,000 CCC+/Caa1 AMC Entertainment, Inc., 9.75%, 12/1/20 $ 2,502,325
600,000 B-/B3 Production Resource Group, Inc., 8.875%,
5/1/19 (144A) 540,000
------------
$ 3,042,325
--------------------------------------------------------------------------------------------------------
Publishing -- 1.0%
400,000 B-/Caa1 Interactive Data Corp., 10.25%, 8/1/18 (144A) $ 430,000
2,200,000 B/B3 MPL 2 Acquisition Canco, Inc., 9.875%,
8/15/18 (144A) 2,046,000
1,400,000 CCC+/Caa2 TL Acquisitions, Inc., 10.5%, 1/15/15 (144A) 896,000
------------
$ 3,372,000
------------
Total Media $ 20,541,786
--------------------------------------------------------------------------------------------------------
RETAILING -- 3.3%
Distributors -- 0.6%
2,862,000(b) B/B3 Minerva Overseas II, Ltd., 10.875%, 11/15/19 (144A) $ 2,260,980
--------------------------------------------------------------------------------------------------------
Internet Retail -- 1.3%
4,340,000 B/B3 Ticketmaster Entertainment, Inc., 10.75%, 8/1/16 $ 4,557,000
--------------------------------------------------------------------------------------------------------
Specialty Stores -- 1.4%
4,615,000(b) B+/B3 Sally Holdings LLC, 10.5%, 11/15/16 $ 4,764,988
------------
Total Retailing $ 11,582,968
--------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 5.8%
Agricultural Products -- 1.7%
5,622,000 B+/B3 Southern States Cooperative, Inc., 11.25%,
5/15/15 (144A) $ 5,818,770
--------------------------------------------------------------------------------------------------------
Brewers -- 1.7%
5,885,000 A-/A3 Cia Brasileira de Bebida, 10.5%, 12/15/11 $ 5,980,631
--------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 1.6%
775,000 NR/B1 Bertin, Ltd., 10.25%, 10/5/16 (144A) $ 716,875
1,500,000 B-/B3 FAGE Dairy Industry SA/FAGE USA Dairy Industry, Inc.,
9.875%, 2/1/20 (144A) 1,342,500
500,000 B+/B1 Marfrig Overseas, Ltd., 9.625%, 11/16/16 (144A) 375,000
4,000,000(b) B-/Caa1 Pilgrim's Pride Corp., 7.875%, 12/15/18 (144A) 3,050,000
------------
$ 5,484,375
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Trust | Semiannual Report | 9/30/11
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
Tobacco -- 0.8%
3,450,000 B/B2 Alliance One International, Inc., 10.0%, 7/15/16 $ 2,846,250
------------
Total Food, Beverage & Tobacco $ 20,130,026
--------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.3%
Personal Products -- 0.3%
1,050,000 B/B2 Revlon Consumer Products Corp., 9.75%, 11/15/15 $ 1,099,875
------------
Total Household & Personal Products $ 1,099,875
--------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 6.2%
Health Care Equipment & Services -- 1.6%
3,000,000(b) CCC+/Caa2 Accellent, Inc., 10.0%, 11/1/17 $ 2,640,000
3,000,000(h) B-/Caa1 IVD Acquisition Corp., 11.125%, 8/15/19 (144A) 2,917,500
------------
$ 5,557,500
--------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.9%
535,000 B-/B3 HCA, Inc., 6.25%, 2/15/13 $ 542,356
84,000 BB-/B2 HCA, Inc., 9.875%, 2/15/17 90,720
3,475,000 B-/B3 Kindred Healthcare, Inc., 8.25%, 6/1/19 (144A) 2,654,031
62,000 CCC+/Caa1 Vanguard Health Systems, Inc., 0.0%, 2/1/16 40,300
------------
$ 3,327,407
--------------------------------------------------------------------------------------------------------
Health Care Services -- 2.2%
1,987,000 B-/Caa1 Bioscrip, Inc., 10.25%, 10/1/15 $ 1,987,000
2,527,000 CCC+/B2 Gentiva Health Services, Inc., 11.5%, 9/1/18 2,008,965
3,725,000 CCC+/Caa1 Surgical Care Affiliates, Inc., 10.0%, 7/15/17 (144A ) 3,538,750
------------
$ 7,534,715
--------------------------------------------------------------------------------------------------------
Health Care Supplies -- 1.5%
1,000,000 B/Caa1 Bausch & Lomb, Inc., 9.875%, 11/1/15 $ 1,002,500
4,085,000(e) B-/B3 Biomet, Inc., 10.375%, 10/15/17 4,248,400
------------
$ 5,250,900
------------
Total Health Care Equipment & Services $ 21,670,522
--------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 2.7%
Biotechnology -- 1.4%
1,400,000 B/Caa1 ConvaTec Healthcare E SA, 10.5%,
12/15/18 (144A) $ 1,232,000
4,104,000 B+/B3 Lantheus Medical Imaging, Inc., 9.75%, 5/15/17 3,734,640
------------
$ 4,966,640
--------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.9%
3,461,893(e) B/Caa1 Catalent Pharma Solutions, Inc., 9.5%, 4/15/15 $ 3,158,977
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 21
Schedule of Investments | 9/30/11 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.4%
2,020,000 NR/NR KV Pharmaceutical Co., 12.0%, 3/15/15 (144A) $ 1,383,700
------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 9,509,317
--------------------------------------------------------------------------------------------------------
BANKS -- 1.4%
Diversified Banks -- 0.3%
1,265,000(a)(b)(i) BB+/Ba3 ABN Amro North American Holding Preferred Capital
Repackage Trust I, 6.523% (144A) $ 936,100
400,000(a) NR/Ba2 Banco Macro SA, 10.75%, 6/7/12 294,000
------------
$ 1,230,100
--------------------------------------------------------------------------------------------------------
Regional Banks -- 1.1%
1,225,000(a)(i) BBB/Baa3 PNC Financial Services Group, Inc., 8.25% $ 1,235,528
1,790,000(a)(i) BBB+/Baa1 State Street Capital Trust III, 5.337% 1,790,089
750,000(a)(i) A-/Baa3 Wells Fargo Capital XV, 9.75% 745,875
------------
$ 3,771,492
------------
Total Banks $ 5,001,592
--------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.5%
Asset Management & Custody Banks -- 0.3%
975,000(d) BBB-/Baa3 Janus Capital Group, Inc., 6.70%, 6/15/17 $ 1,009,867
--------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.4%
2,325,000(a)(i) BBB-/Baa2 Goldman Sachs Capital II, 5.793% $ 1,441,500
--------------------------------------------------------------------------------------------------------
Multi-Sector Holdings -- 0.6%
2,200,000 B/B2 Constellation Enterprises LLC, 10.625%,
2/1/16 (144A) $ 2,134,000
--------------------------------------------------------------------------------------------------------
Specialized Finance -- 2.2%
500,000 BB/Baa3 Capital One Capital V, 10.25%, 8/15/39 $ 507,500
695,000 B+/B2 National Money Mart Co., 10.375%, 12/15/16 712,375
7,140,000(b) CCC-/Caa3 NCO Group, Inc., 11.875%, 11/15/14 6,497,400
------------
$ 7,717,275
------------
Total Diversified Financials $ 12,302,642
--------------------------------------------------------------------------------------------------------
INSURANCE -- 8.4%
Insurance Brokers -- 4.0%
3,305,000 CCC/Caa1 Alliant Holdings I, Inc., 11.0%, 5/1/15 (144A) $ 3,362,837
100,000 CCC+/B3 HUB International Holdings, Inc., 9.0%,
12/15/14 (144A) 96,000
5,455,000 CCC+/Caa1 HUB International Holdings, Inc., 10.25%,
6/15/15 (144A) 5,045,875
GBP 1,625,000 B-/B3 Towergate Finance Plc, 10.5%, 2/15/19 (144A) 2,050,454
2,286,000(a) CCC/B3 U.S.I. Holdings Corp., 4.161%, 11/15/14 (144A) 1,988,820
1,610,000 CCC/Caa1 U.S.I. Holdings Corp., 9.75%, 5/15/15 (144A) 1,449,000
------------
$ 13,992,986
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Trust | Semiannual Report | 9/30/11
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
Multi-line Insurance -- 1.5%
3,075,000(a) BB/Baa3 Liberty Mutual Group, Inc., 10.75%, 6/15/88 (144A) $ 3,659,250
1,100,000 BBB/Baa2 MetLife, Inc., 10.75%, 8/1/69 1,375,000
------------
$ 5,034,250
--------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 1.7%
5,300,000 BBB-/Baa3 Allmerica Financial Corp., 7.625%, 10/15/25 $ 5,932,810
120,000(a)(i) BB/Ba2 White Mountains Insurance Group, Ltd.,
7.506% (144A) 110,120
------------
$ 6,042,930
--------------------------------------------------------------------------------------------------------
Reinsurance -- 1.2%
375,000(a) BB+/NR Blue Fin, Ltd., 4.646%, 4/10/12 (144A) $ 373,875
350,000(a) BB+/NR Foundation Re III, Ltd., 5.02%, 2/25/15 (144A) 350,875
250,000(a) BB/NR Ibis Re, Ltd., 10.597%, 5/10/12 (144A) 260,900
800,000(a) BB/NR Lodestone Re, Ltd., 7.27%, 1/8/14 (144A) 806,400
700,000(a) BB-/NR LOMA Reinsurance, Ltd., 9.826%, 12/21/12 (144A) 707,560
300,000(a) CCC+/NR Montana Re, Ltd., 13.583%, 12/7/12 (144A) 303,930
500,000(a) BB-/NR Queen Street II Capital, Ltd., 7.52%, 4/9/14 (144A) 504,400
450,000(a) B-/NR Residential Reinsurance 2010, Ltd., 12.02%,
6/6/15 (144A) 464,220
500,000(a) NR/NR Successor X, Ltd., 13.0%, 2/25/14 (144A) 511,750
------------
$ 4,283,910
------------
Total Insurance $ 29,354,076
--------------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.8%
Real Estate Operating Companies -- 1.4%
98,266(a) B/NR Alto Palermo SA, 11.0%, 6/11/12 (144A) $ 29,971
5,000,000 B-/B3 Forest City Enterprises, Inc., 7.625%, 6/1/15 4,800,000
------------
$ 4,829,971
--------------------------------------------------------------------------------------------------------
Specialized Real Estate Investment Trusts -- 0.4%
1,500,000 BB-/Ba3 CNL Lifestyle Properties, Inc., 7.25%, 4/15/19 $ 1,290,000
------------
Total Real Estate $ 6,119,971
--------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 3.3%
Application Software -- 1.3%
2,960,000 B/B3 Allen Systems Group, Inc., 10.5%,
11/15/16 (144A) $ 2,738,000
1,870,000 B-/Caa1 Vangent, Inc., 9.625%, 2/15/15 1,949,475
------------
$ 4,687,475
--------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.9%
1,783,000 B-/Caa1 First Data Corp., 8.25%, 1/15/21 (144A) $ 1,408,570
399,000(b) B-/Caa1 First Data Corp., 9.875%, 9/24/15 334,162
1,783,000 B-/Caa1 First Data Corp., 12.625%, 1/15/21 (144A) 1,319,420
------------
$ 3,062,152
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 23
Schedule of Investments | 9/30/11 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
Systems Software -- 1.1%
4,021,206(e) NR/NR Pegasus Solutions, Inc., 13.00%, 4/15/14 (144A) $ 3,779,934
------------
Total Software & Services $ 11,529,561
--------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.2%
Computer Storage & Peripherals -- 0.2%
580,000 BBB/Baa3 Seagate Technology International, Inc., 10.0%,
5/1/14 (144A) $ 649,600
------------
Total Technology Hardware & Equipment $ 649,600
--------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.0%
Semiconductors -- 0.0%
CNY 1,000,000 NR/NR LDK Solar Co., Ltd., 10.0%, 2/28/14 $ 108,232
------------
Total Semiconductors & Semiconductor Equipment $ 108,232
--------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 5.4%
Alternative Carriers -- 2.4%
2,210,000 B/B2 Global Crossing, Ltd., 12.00%, 9/15/15 $ 2,505,587
3,865,000(b) CCC+/Caa1 PAETEC Holding Corp., 9.50%, 7/15/15 4,019,600
1,000,000 B/Ba3 PAETEC Holding Corp., 8.875%, 6/30/17 1,050,000
600,000 B+/Caa1 PAETEC Holding Corp., 9.875%, 12/1/18 (144A) 628,500
------------
$ 8,203,687
--------------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- 2.1%
1,100,000 B/NR Bakrie Telecom PTE, Ltd., 11.5%, 5/7/15 (144A) $ 693,000
4,295,000(b) B-/Caa1 Broadview Networks Holdings, Inc., 11.375%, 9/1/12 3,436,000
3,539,000(b) CCC+/B3 Cincinnati Bell, Inc., 8.75%, 3/15/18 3,140,863
------------
$ 7,269,863
--------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.9%
3,020,000 B-/B2 True Move Co., Ltd., 10.75%, 12/16/13 (144A) $ 3,201,200
------------
Total Telecommunication Services $ 18,674,750
--------------------------------------------------------------------------------------------------------
UTILITIES -- 2.1%
Electric Utilities -- 1.1%
310,000 B-/B2 Empresa Distribuidora y Comercializadora Note SA,
9.75%, 10/25/22 (144A) $ 260,400
885,000 B-/Caa3 Energy Future Holdings Corp., 10.0%, 1/15/20 858,450
1,000,000 BB-/Ba2 PNM Resources, Inc., 9.25%, 5/15/15 1,102,500
350,000(b) CCC/B2 Texas Competitive Electric Holdings LLC, 11.5%,
10/1/20 (144A) 280,000
2,105,000 CC/Caa3 Texas Competitive Electric Holdings LLC, 15.0%,
4/1/21 (144A) 1,284,050
------------
$ 3,785,400
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Trust | Semiannual Report | 9/30/11
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy Traders -- 1.0%
1,800,000 BB-/Ba3 Intergen NV, 9.00%, 6/30/17 (144A) $ 1,831,500
1,500,000 NR/B2 Star Energy Geothermal (Wayang Windu), Ltd., 11.50%,
2/12/15 (144A) 1,477,540
------------
$ 3,309,040
------------
Total Utilities $ 7,094,440
--------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES
(Cost $413,162,841) $392,233,708
--------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS & NOTES -- 7.0% of Net Assets
ENERGY -- 1.9%
Coal & Consumable Fuels -- 0.5%
1,905,000 BB-/NR Massey Energy Co., 3.25%, 8/1/15 $ 1,688,306
--------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 1.0%
2,265,000(b)(d) NR/NR Hercules Offshore, Inc., 3.375%, 6/1/38 $ 2,038,500
1,600,000(b) BBB/Baa3 Transocean, Ltd., 1.5%, 12/15/37 1,578,000
------------
$ 3,616,500
--------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.4%
1,340,000 BB+/Ba3 Chesapeake Energy Corp., 2.5%, 5/15/37 $ 1,276,350
------------
Total Energy $ 6,581,156
--------------------------------------------------------------------------------------------------------
MATERIALS -- 0.9%
Diversified Chemicals -- 0.9%
4,000(f) B+/NR Hercules, Inc., 6.5%, 6/30/29 $ 3,090,000
------------
Total Materials $ 3,090,000
--------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.7%
Marine -- 0.7%
3,511,000(c) D/Ca Horizon Lines, Inc., 4.25%, 8/15/12 $ 2,563,030
------------
Total Transportation $ 2,563,030
--------------------------------------------------------------------------------------------------------
MEDIA -- 0.5%
Movies & Entertainment -- 0.5%
1,832,000 B-/NR Live Nation, Inc., 2.875%, 7/15/27 $ 1,644,220
------------
Total Media $ 1,644,220
--------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.7%
Health Care Equipment & Services -- 0.8%
2,837,000(b)(d) BB+/NR Hologic, Inc., 2.0%, 12/15/37 $ 2,932,749
--------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.8%
780,000 B/NR LifePoint Hospitals, Inc., 3.5%, 5/15/14 $ 789,750
1,985,000(b) B/B2 LifePoint Hospitals, Inc., 3.25%, 8/15/25 2,007,331
------------
$ 2,797,081
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 25
Schedule of Investments | 9/30/11 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
Health Care Services -- 0.1%
361,000 B+/B2 Omnicare, Inc., 3.25%, 12/15/35 $ 326,254
------------
Total Health Care Equipment & Services $ 6,056,084
--------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.4%
Semiconductors -- 0.4%
500,000(b) NR/NR JA Solar Holdings Co., Ltd., 4.5%, 5/15/13 $ 335,000
750,000 NR/NR Renesola, Ltd., 4.125%, 3/15/18 (144A) 334,687
1,569,000(b) NR/NR Suntech Power Holdings Co., Ltd., 3.0%, 3/15/13 619,755
------------
Total Semiconductors & Semiconductor Equipment $ 1,289,442
--------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.9%
Alternative Carriers -- 0.9%
3,025,000 B/B3 Time Warner Telecom, Inc., 2.375%, 4/1/26 $ 3,312,375
------------
Total Telecommunication Services $ 3,312,375
--------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS & NOTES
(Cost $19,881,201) $ 24,536,307
--------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 6.1% of Net Assets
Indiana -- 1.7%
1,650,000 NR/Baa3 East Chicago Indiana Exempt Facilities Revenue, 7.0%,
1/1/14 $ 1,606,572
4,250,000 BBB-/WR Indiana Development Finance Authority Revenue,
5.75%, 10/1/11 $ 4,250,085
------------
$ 5,856,657
--------------------------------------------------------------------------------------------------------
New Jersey -- 1.3%
4,525,000 B/B3 New Jersey Economic Development Authority Revenue,
7.0%, 11/15/30 $ 4,481,741
--------------------------------------------------------------------------------------------------------
New York -- 1.0%
3,475,000 BB-/B1 New York City Industrial Development Agency,
7.625%, 12/1/32 $ 3,496,753
--------------------------------------------------------------------------------------------------------
North Carolina -- 2.1%
1,670,000 NR/NR Charlotte North Carolina Special Facilities Revenue,
7.75%, 2/1/28 $ 1,672,138
6,300,000 NR/NR Charlotte Special Facilities Refunding Revenue,
5.6%, 7/1/27 $ 5,572,476
------------
$ 7,244,614
--------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $16,976,890) $ 21,079,765
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Trust | Semiannual Report | 9/30/11
-------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
-------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT OBLIGATION -- 0.6%
3,300,000(a)(j) NR/NR Non-Profit Preferred Funding Trust I, Series E,
12.0%, 9/15/37 (144A) $ 2,007,852
-------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED
DEBT OBLIGATION
(Cost $3,293,400) $ 2,007,852
-------------------------------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATIONS -- 1.0% of Net Assets
Argentina -- 0.3%
1,200,000 B/B2 City of Buenos Aires, 12.50%, 4/6/15 (144A) $ 1,188,000
-------------------------------------------------------------------------------------------------------
Russia -- 0.7%
1,937,200 BBB/Baa1 Russia Government International Bond,
7.50%, 3/31/30 $ 2,176,793
-------------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATIONS
(Cost $2,557,535) $ 3,364,793
-------------------------------------------------------------------------------------------------------
FLOATING RATE LOAN INTERESTS -- 7.3% of Net Assets*
ENERGY -- 0.2%
Coal & Consumable Fuels -- 0.2%
750,000 NR/NR PT Bumi Resources Tbk, Term Loan,
11.226%, 8/7/13 $ 750,000
------------
Total Energy $ 750,000
-------------------------------------------------------------------------------------------------------
MATERIALS -- 0.6%
Diversified Chemicals -- 0.2%
EURO 93,859 B/Ba3 Ineos US Finance LLC, Facility Term Loan B-1,
7.5%, 12/16/13 $ 123,412
EURO 103,068 B/Ba3 Ineos US Finance LLC, Facility Term Loan C-1,
8.0%, 12/16/14 135,521
219,267 B/Ba3 Ineos US Finance LLC, Senior Credit Facility Term Loan
B-2, 7.5%, 12/16/13 217,349
215,846 B/Ba3 Ineos US Finance LLC, Senior Credit Facility Term Loan
C-2, 8.0%, 12/16/14 213,957
------------
$ 690,239
-------------------------------------------------------------------------------------------------------
Steel -- 0.4%
1,538,748 B/B3 Niagara Corp., Term Loan B, 8.5%, 6/29/14 $ 1,407,955
------------
Total Materials $ 2,098,194
-------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.8%
Aerospace & Defense -- 0.8%
3,110,824 BB-/B2 API Technologies Corp., Term Loan, 7.75%, 6/27/16 $ 2,955,282
------------
Total Capital Goods $ 2,955,282
-------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.5%
Auto Parts & Equipment -- 0.5%
1,880,550 NR/NR Metaldyne LLC, Term Loan, 5.25%, 5/18/17 $ 1,824,134
------------
Total Automobiles & Components $ 1,824,134
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 27
Schedule of Investments | 9/30/11 (Consolidated) (unaudited) (continued)
-------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
-------------------------------------------------------------------------------------------------------
RETAILING -- 0.4%
Specialty Stores -- 0.4%
1,496,250 B/B2 Targus Group International, Inc., Term Loan,
11.0%, 5/24/16 $ 1,447,622
------------
Total Retailing $ 1,447,622
-------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.4%
Packaged Foods & Meats -- 0.4%
1,300,000 BB-/B2 Pierre Foods, Inc., Second Lien Term Loan,
11.25%, 9/29/17 $ 1,275,625
------------
Total Food, Beverage & Tobacco $ 1,275,625
-------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.2%
Health Care Services -- 0.7%
455,042 B+/B1 Aveta, Inc., NAMM Term Loan, 8.5%, 4/14/15 $ 446,510
783,691 B/B2 National Specialty Hospitals, Inc., Initial Term Loan,
8.25%, 2/3/17 756,262
1,137,675 NR/B1 Prime Healthcare Services, Inc., Term Loan B,
7.25%, 4/28/15 1,092,168
------------
$ 2,294,940
-------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.4%
1,347,500 B/B2 Medical Card System, Inc., Term Loan,
12.0%, 9/17/15 $ 1,313,813
-------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.1%
455,042 B+/B1 Aveta Inc., MMM Term Loan, 8.5%, 4/14/15 $ 446,228
------------
Total Health Care Equipment & Services $ 4,054,981
-------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 0.4%
Biotechnology -- 0.4%
1,580,000 NR/Caa1 Alkermes, Inc., Second Lien Term Loan,
9.5%, 9/16/18 $ 1,564,200
------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 1,564,200
-------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.6%
Diversified Financial Services -- 0.6%
443,368 B-/B2 BNY ConvergEX Group LLC, Second Lien EZE Term Loan,
8.75%, 12/18/17 $ 445,584
1,056,633 B-/NR BNY ConvergEX Group LLC, Second Lien TOP Term Loan,
8.75%, 12/18/17 1,061,916
389,294 NR/NR Long Haul Holdings, Ltd. and PT Bakrie & Brothers Tbk,
Tranche A Vallar Loan, 0.09%, 3/5/12 379,561
310,706 B/B2 Long Haul Holdings, Ltd. and PT Bakrie & Brothers Tbk,
Tranche B Vallar Loan, 0.09%, 3/5/12 302,939
------------
Total Diversified Financials $ 2,190,000
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Trust | Semiannual Report | 9/30/11
--------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------
INSURANCE -- 0.7%
Multi-line Insurance -- 0.7%
370,522 B/B2 AmWins Group, Inc., Initial Term Loan,
4.536%, 6/8/13 $ 357,553
2,250,000 CCC+/B3 AmWins Group, Inc., Second Lien Initial Term Loan,
5.86%, 6/9/14 2,057,344
------------
Total Insurance $ 2,414,897
--------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.2%
Application Software -- 1.2%
1,700,000 NR/NR Applied Systems, Inc., Second Lien Term Loan,
9.25%, 6/8/17 $ 1,654,661
2,500,000 CCC+/Caa1 Vertafore, Inc., Second Lien Term Loan,
9.75%, 10/29/17 2,410,417
------------
Total Software & Services $ 4,065,078
--------------------------------------------------------------------------------------------------------
UTILITIES -- 0.3%
Electric Utilities -- 0.3%
1,316,443 CCC/B2 Texas Competitive Electric Holdings Co., LLC, Extending
Term Loan, 4.75%, 10/10/17 $ 886,543
------------
Total Utilities $ 886,543
--------------------------------------------------------------------------------------------------------
TOTAL FLOATING RATE LOAN INTERESTS
(Cost $26,234,185) $ 25,526,556
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 2.1% of Net Assets
ENERGY -- 0.1%
Oil & Gas Drilling -- 0.1%
13,045(h) Rowan Companies, Inc. $ 393,829
------------
Total Energy $ 393,829
--------------------------------------------------------------------------------------------------------
MATERIALS -- 1.1%
Commodity Chemicals -- 0.1%
26,430(h) Georgia Gulf Corp. $ 365,527
--------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.6%
94,230(h) Lyondell Basell Industries NV $ 2,302,039
--------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.3%
1,391,615(g)(h)(j) Blaze Recycling and Metals LLC,
Class A Units $ 960,214
3,402 Freeport-McMoRan Copper & Gold, Inc. (Class B) 103,591
------------
$ 1,063,805
--------------------------------------------------------------------------------------------------------
Steel -- 0.1%
26,215(g)(h)(j) KNIA Holdings, Inc. $ 183,244
------------
Total Materials $ 3,914,615
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 29
Schedule of Investments | 9/30/11 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.1%
Building Products -- 0.1%
894(g)(h)(j) Panolam Holdings Co. $ 438,060
------------
Total Capital Goods $ 438,060
--------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.2%
Airlines -- 0.2%
97,564(h) Delta Air Lines, Inc. $ 731,730
------------
Total Transportation $ 731,730
--------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.4%
Auto Parts & Equipment -- 0.4%
29,909 Lear Corp. $ 1,283,096
------------
Total Automobiles & Components $ 1,283,096
--------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 0.2%
Pharmaceuticals -- 0.2%
17,818 Teva Pharmaceutical Industries, Ltd. (A.D.R.) $ 663,186
------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 663,186
--------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.0%
Systems Software -- 0.0%
10,942 Perseus Holding Corp. (144A) $ --
--------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $7,233,652) $ 7,424,516
--------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK -- 0.4%
DIVERSIFIED FINANCIALS -- 0.4%
Other Diversified Financial Services -- 0.4%
1,880 Bank of America Corp., 7.25% $ 1,440,061
------------
Total Diversified Financials $ 1,440,061
--------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $1,383,242) $ 1,440,061
--------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 0.7% of Net Assets
DIVERSIFIED FINANCIALS -- 0.6%
Diversified Financial Services -- 0.6%
2,925,000 GMAC Capital Trust I, 8.125% $ 2,135,250
------------
Total Diversified Financials $ 2,135,250
--------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.1%
Systems Software -- 0.1%
5,745(h)(j) Perseus Holding Corp., 14.0% (144A) $ 201,075
------------
Total Software & Services $ 201,075
--------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $2,952,923) $ 2,336,325
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer High Income Trust | Semiannual Report | 9/30/11
-----------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.0%
ENERGY -- 0.0%
Oil & Gas Exploration & Production -- 0.0%
NOK 1,310,558 Norse Energy Corp. ASA, Expires 6/16/15 $ 22,323
------------
Total Energy $ 22,323
-----------------------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $0) $ 22,323
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Principal
Amount
USD ($)
-----------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 12.4% of Net Assets
SECURITIES LENDING COLLATERAL -- 12.4% (k)
Certificates of Deposit:
1,002,803 Bank of Montreal Chicago, 0.18%, 10/20/11 $ 1,002,803
1,002,803 Bank of Montreal Chicago, 0.38%, 9/26/12 1,002,803
1,002,803 Bank of Nova Scotia, 0.32%, 10/11/12 1,002,803
250,930 Bank of Nova Scotia Houston, 0.54%, 6/11/12 250,930
1,253,504 Canadian Imperial Bank of Commerce NY,
0.21%, 10/3/11 1,253,504
1,253,428 Dnb Nor Bank ASA NY, 0.22%, 11/14/11 1,253,428
1,128,154 JPMorgan Chase Bank NA, 0.28%, 10/17/12 1,128,154
626,750 National Australia Bank NY, 0.27%, 10/19/11 626,750
877,453 National Australia Bank NY, 0.31%, 1/9/12 877,453
1,379,003 RaboBank Nederland, 0.32%, 4/2/12 1,379,003
626,752 Royal Bank of Canada NY, 0.48%, 9/10/12 626,752
1,253,531 Skandinav Enskilda Bank NY, 0.33%, 11/9/11 1,253,531
501,418 Wachovia Corp., 0.38%, 10/15/11 501,418
376,232 Wachovia Corp., 0.48%, 3/1/12 376,232
1,253,504 Westpac Banking Corp., NY, 0.33%, 12/6/11 1,253,504
------------
$ 13,789,068
-----------------------------------------------------------------------------------------
Commercial Paper:
501,402 American Honda Finance, 0.30%, 1/11/12 $ 501,402
299,817 Chariot Funding LLC, 0.16%, 10/17/11 299,817
1,002,786 Chariot Funding LLC, 0.16%, 10/5/11 1,002,786
877,387 Chariot Funding LLC, 0.15%, 10/19/11 877,387
400,892 Commonwealth Bank of Australia, 0.28%, 12/15/11 400,892
763,812 Commonwealth Bank of Australia, 0.39%, 2/23/12 763,812
626,719 Falcon Asset Securitization Co., LLC, 0.16%, 10/13/11 626,719
1,253,471 Falcon Asset Securitization Co., LLC, 0.16%, 10/7/11 1,253,471
575,377 Federal Farm Credit, 0.18%, 8/20/12 575,377
902,517 General Electric Capital Corp., 0.37%, 4/10/12 902,517
125,265 General Electric Capital Corp., 0.42%, 7/27/12 125,265
137,923 General Electric Capital Corp., 0.48%, 11/21/11 137,923
626,745 National Australia Funding Delaware, Inc., 0.19%,
10/3/11 626,745
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 31
Schedule of Investments | 9/30/11 (Consolidated) (unaudited) (continued)
-----------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------
Commercial Paper -- Continued
1,127,677 Nestle Capital Corp., 0.19%, 12/20/11 $ 1,127,677
1,002,023 Nordea NA, 0.28%, 1/9/12 1,002,023
803,656 Old Line Funding LLC, 0.17%, 10/5/11 803,656
376,041 Old Line Funding LLC, 0.17%, 10/7/11 376,041
1,002,675 Procter & Gamble, 0.14%, 11/3/11 1,002,675
626,752 Royal Bank of Canada, 0.30%, 10/1/12 626,752
752,035 Sanofi Aventis SA, 0.17%, 10/20/11 752,035
278,402 Straight-a Funding LLC, 0.19%, 12/9/11 278,402
1,253,504 Svenska HandelsBanken, 0.38%, 10/5/12 1,253,504
672,194 Thunderbay Funding LLC, 0.17%, 10/12/11 672,194
502,119 Thunderbay Funding LLC, 0.18%, 10/5/11 502,119
250,589 Thunderbay Funding LLC, 0.22%, 12/13/11 250,589
501,202 Thunderbay Funding LLC, 0.22%, 12/5/11 501,202
626,693 Variable Funding Capital Co., LLC, 0.19%, 10/19/11 626,693
626,507 Variable Funding Capital Co., LLC, 0.21%, 12/7/11 626,507
250,777 Wells Fargo & Co., 0.34%, 1/24/12 250,777
------------
$ 18,746,959
-----------------------------------------------------------------------------------------
Tri-Party Repurchase Agreements:
1,253,504 Merrill Lynch, Inc., 0.04%, dated 9/30/11, repurchase
price of $1,253,504 plus accrued interest on 10/3/11
collateralized by the following:
$247,144 U.S. Treasury Bond, 5.0%, 5/15/37
$1,031,432 U.S. Treasury Note, 1.75%, 5/31/16 $ 1,253,504
5,026,451 RBS Securities, Inc., 0.05%, dated 9/30/11,
repurchase price of $5,026,451 plus accrued interest
on 10/3/11 collateralized by $5,127,102
Federal Home Loan Mortgage Corp.,
0.0%, 3/30/12 - 6/30/12 5,026,451
501,402 Barclays Capital Markets, 0.05%, dated 9/30/11,
repurchase price of $501,402 plus accrued interest on
10/3/11 collateralized by $511,430 U.S. Treasury
Notes, 3.125 - 3.625%, 2/15/21 - 5/15/21 501,402
------------
$ 6,781,357
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------
Money Market Mutual Funds:
$1,880,256 Dreyfus Preferred Money Market Fund $ 1,880,256
1,880,256 Fidelity Prime Money Market Fund 1,880,256
------------
$ 3,760,512
------------
Total Securities Lending Collateral $ 43,077,896
-----------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $43,077,896) $ 43,077,896
-----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer High Income Trust | Semiannual Report | 9/30/11
---------------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 153.8%
(Cost $549,086,768) (l)(m) $ 534,844,115
---------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (10.4)% $ (36,013,035)
---------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (43.4)% $(151,000,891)
---------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS -- 100.0% $ 347,830,189
=============================================================================================
(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, 2011, the value of these securities amounted to
$200,501,147 or 57.6% of total net assets applicable to common
shareowners.
NR Security not rated by S&P or Moody's.
WR Rating withdrawn by either S&P or Moody's.
* Senior floating rate loan interests in which the Trust invests generally
pay interest at rates that are periodically redetermined by reference to
a base lending rate plus a premium. These base lending rates are
generally (i) the lending rate offered by one or more major European
banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime rate
offered by one or more major United States banks, (iii) the certificate
of deposit or (iv) other base lending rates used by commercial lenders.
The interest rate shown is the rate accruing at September 30, 2011.
(a) Floating rate note. The rate shown is the coupon rate at September 30,
2011.
(b) At September 30, 2011, the following securities were out on loan:
----------------------------------------------------------------------------------------------
Principal
Amount Market
USD ($) Description Value
----------------------------------------------------------------------------------------------
760,000 ABN Amro North American Holding Preferred Capital Repackage
Trust I, 6.523% (144A) $ 581,955
2,674,000 ADS Tactical, Inc., 11.0%, 4/1/18 (144A) 2,771,676
100,000 Accellent, Inc., 10.0%, 11/1/17 89,389
2,175,000 Algoma Acquisition Corp., 9.875%, 6/15/15 (144A) 1,748,269
400,000 Broadview Networks Holdings, Inc., 11.375%, 9/1/12 323,665
450,000 Burger King Capital Holdings LLC, 0.0%, 4/15/19 (144A) 246,375
1,370,000 Burger King Corp., 9.875%, 10/15/18 1,473,106
2,205,000 Chrysler Group LLC/CG Co-Issuer, Inc., 8.0%, 6/15/19 (144A) 1,781,640
417,000 Cincinnati Bell, Inc., 8.75%, 3/15/18 371,608
395,000 First Data Corp., 9.875%, 9/24/15 330,813
600,000 Hercules Offshore, Inc., 3.375%, 6/1/38 546,694
2,804,600 Hologic, Inc., 2.0%, 12/15/37 2,915,614
2,077,000 Ineos Group Holdings Plc, 8.5%, 2/15/16 (144A) 1,559,048
495,000 JA Solar Holdings Co., Ltd., 4.5%, 5/15/13 340,003
1,965,000 LifePoint Hospitals, Inc., 3.25%, 8/15/25 1,995,090
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 33
Schedule of Investments | 9/30/11 (Consolidated) (unaudited) (continued)
----------------------------------------------------------------------------------------------
Principal
Amount Market
USD ($) Description Value
----------------------------------------------------------------------------------------------
750,000 Manitowoc Co., Inc., 9.5%, 2/15/18 $ 742,031
2,383,000 Minerva Overseas II, Ltd., 10.875%, 11/15/19 (144A) 1,979,751
5,118,000 Mueller Water Products, Inc., 7.375%, 6/1/17 4,116,806
2,000,000 NCO Group, Inc., 11.875%, 11/15/14 1,909,062
1,480,000 Ono Finance II Plc, 10.875%, 7/15/19 (144A) 1,069,531
2,899,000 PAETEC Holding Corp., 9.5%, 7/15/15 3,072,337
153,000 Pilgrim's Pride Corp., 7.875%, 12/15/18 (144A) 120,177
750,000 Pinafore LLC, 9.0%, 10/1/18 (144A) 802,313
3,500,000 Quicksilver Resources, Inc., 7.125%, 4/1/16 3,203,994
608,000 Sally Holdings LLC, 10.5%, 11/15/16 651,700
300,000 Suntech Power Holdings Co., Ltd., 3.0%, 3/15/13 118,875
1,000,000 Swift Services Holdings, Inc., 10.0%, 11/15/18 927,500
346,000 Texas Competitive Electric Holdings LLC, 11.5%, 10/1/20 (144A) 286,637
99,000 Transocean, Ltd., 1.5%, 12/15/37 98,072
500,000 Vertellus Specialties, Inc., 9.375%, 10/1/15 (144A) 460,808
1,850,000 Xinergy Corp., 9.25%, 5/15/19 (144A) 1,724,200
3,600,000 Yankee Acquisition Corp., 8.5%, 2/15/15 3,494,250
----------------------------------------------------------------------------------------------
$41,852,989
==============================================================================================
(c) Security is in default and is non-income producing.
(d) Debt obligation initially issued at one coupon rate which converts to a
higher coupon rate at a specific date. The rate shown is the rate at
September 30, 2011.
(e) Payment-in-Kind (PIK) security which may pay interest in the form of
additional principal amount.
(f) Security is priced as a unit.
(g) Security is valued using fair value methods (other than prices supplied
by independent pricing services). (See Note 1A)
(h) Non-income producing.
(i) Security is perpetual in nature and has no stated maturity date.
(j) Indicates a security that has been deemed illiquid. The aggregate cost of
illiquid securities is $5,047,418. The aggregate fair value of $3,790,445
represents 1.1% of the total net assets applicable to common shareowners.
(k) Securities lending collateral is managed by Credit Suisse AG, New York
Branch.
The accompanying notes are an integral part of these financial statements.
34 Pioneer High Income Trust | Semiannual Report | 9/30/11
(l) At September 30, 2011, the net unrealized loss on investments based on
cost for federal income tax purposes of $549,086,768 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 33,700,673
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (47,943,326)
------------
Net unrealized loss $(14,242,653)
============
(m) Distribution of investments by country of issue, as a percentage of total
holdings, is as follows:
United States 77.7%
Canada 4.1
Cayman Islands 2.9
Netherlands 2.0
Norway 1.9
United Kingdom 1.7
Bermuda 1.6
Brazil 1.4
Luxembourg 1.3
Ireland 1.1
Other (individually less than 1%) 4.3
-----
100.0%
=====
For financial reporting purposes net unrealized loss on investments was
$(14,242,653) and cost of investments aggregated $549,086,768.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended September 30, 2011 aggregated $95,133,403 and $79,411,265,
respectively.
Note: Principal amounts are denominated in U.S. dollars unless otherwise noted.
CNY -- Chinese Yuan
EURO -- Euro
GBP -- British Pound
NOK -- Norwegian Krone
Glossary of Terms:
(A.D.R.) American Depository Receipt.
Various inputs are used in determining the value of the Trust's investments.
These inputs are summarized in the three broad levels listed 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
risk, etc.)
Level 3 -- significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments)
Generally, equity securities are categorized as Level 1, fixed income
securities and senior loans are categorized as Level 2 and securities valued
using fair value methods are categorized as Level 3.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 35
Schedule of Investments | 9/30/11 (Consolidated) (unaudited) (continued)
The following is a summary of the inputs used as of September 30, 2011, in
valuing the Trust's investments:
-----------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------------------
Asset backed securities $ -- $ 10,091,717 $ -- $ 10,091,717
Collateralized mortgage
obligations -- 1,702,296 -- 1,702,296
Corporate bonds & notes
(environmental & facilities
services) -- 1,109,941 133,492 1,243,433
Corporate bonds & notes (other
industries) -- 390,990,275 -- 390,990,275
Convertible bonds & notes -- 24,536,307 -- 24,536,307
Municipal bonds -- 21,079,765 -- 21,079,765
Municipal collateralized debt
obligation -- 2,007,852 -- 2,007,852
Sovereign debt obligations -- 3,364,793 -- 3,364,793
Floating rate loan interests -- 25,526,556 -- 25,526,556
Common stocks (diversified
metals & mining) 103,591 -- 960,214 1,063,805
Common stocks (steel) -- -- 183,244 183,244
Common stocks (building
products) -- -- 438,060 438,060
Common stocks (other industries) 5,739,407 -- -- 5,739,407
Convertible preferred stock 1,440,061 -- -- 1,440,061
Preferred stock -- 2,336,325 -- 2,336,325
Rights/Warrants 22,323 -- -- 22,323
Temporary cash investments -- 32,536,027 -- 32,536,027
Repurchase agreements -- 6,781,357 -- 6,781,357
Money market mutual funds 3,760,512 -- -- 3,760,512
-----------------------------------------------------------------------------------------------------
Total $11,065,894 $522,063,211 $1,715,010 $534,844,115
====================================================================================================
Other Financial Instruments $ -- $ (4,808) $ -- $ (4,808)
====================================================================================================
* Other financial instruments include foreign exchange contracts and net
unrealized loss on unfunded loan commitments.
The accompanying notes are an integral part of these financial statements.
36 Pioneer High Income Trust | Semiannual Report | 9/30/11
The following is a reconciliation of assets valued using significant
unobservable inputs (level 3):
----------------------------------------------------------------------------------------------------------------
Change in Transfer
Realized unrealized Net in and Balance
Balance as gain appreciation purchase out of as of
of 3/31/11 (loss) (depreciation) (sales) Level 3* 9/30/11
----------------------------------------------------------------------------------------------------------------
Corporate bonds & notes
(environmental &
facilities services) $ 133,492 $-- $-- $-- $-- $ 133,492
Common stocks
(diversified metals &
mining) 960,214 -- -- -- -- 960,214
Common stocks (steel) 183,244 -- -- -- -- 183,244
Common stock (building
products) 438,060 -- -- -- -- 438,060
----------------------------------------------------------------------------------------------------------------
Ending balance $1,715,010 $-- $-- $-- $-- $1,715,010
================================================================================================================
* Transfers are calculated on the date of transfer.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 37
Statement of Assets and Liabilities | 9/30/11 (Consolidated) (unaudited)
ASSETS:
Investments in securities, at value (including securities loaned of
$41,852,989) (cost $549,086,768) $534,844,115
Cash 1,310,852
Receivables --
Investment securities sold 96,090
Dividends and interest 13,694,591
Forward foreign currency portfolio hedge contracts -- net 66,629
Prepaid expenses 2,128
Other assets 384,364
---------------------------------------------------------------------------------------
Total assets $550,398,769
---------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 1,228,611
Upon return of securities loaned 43,077,896
Depreciation on unfunded loan commitments -- net 4,808
Foreign currency overdraft 6,795,681
Due to affiliates 301,163
Accrued expenses 159,530
---------------------------------------------------------------------------------------
Total liabilities $ 51,567,689
---------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 6,040 shares,
including dividends payable of $891 $151,000,891
---------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital 399,908,995
Undistributed net investment income 12,306,270
Accumulated net realized loss on investments and foreign
currency transactions (50,437,801)
Net unrealized loss on investments (14,247,461)
Net unrealized gain on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies 300,186
---------------------------------------------------------------------------------------
Net assets applicable to common shareowners $347,830,189
=======================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $347,830,189/28,128,618 common shares $ 12.37
=======================================================================================
The accompanying notes are an integral part of these financial statements.
38 Pioneer High Income Trust | Semiannual Report | 9/30/11
Statement of Operations (Consolidated) (unaudited)
For the Six Months Ended 9/30/11
INVESTMENT INCOME:
Interest (net of foreign taxes withheld $3,519) $ 25,809,757
Dividend income (net of foreign taxes withheld $5,390) 110,355
Income from securities loaned, net 66,543
-----------------------------------------------------------------------------------------------------------
Total investment income $ 25,986,655
-----------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,449,283
Administrative fees 172,076
Transfer agent fees and expenses 3,789
Shareowner communications expense 23,406
Auction agent fees 201,645
Custodian fees 78,020
Registration fees 11,854
Professional fees 38,856
Printing expense 23,426
Trustees' fees 8,332
Pricing fee 4,203
Miscellaneous 29,016
Total expenses $ 2,043,906
-----------------------------------------------------------------------------------------------------------
Net investment income $ 23,942,749
-----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain from:
Investments $ 8,770,977
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies 300,555 $ 9,071,532
-----------------------------------------------------------------------------------------------------------
Change in unrealized gain (loss) from:
Investments $ (65,316,147)
Unfunded corporate loans (1,823)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies 2,093 $(65,315,877)
-----------------------------------------------------------------------------------------------------------
Net loss on investments and foreign currency transactions $(56,244,345)
-----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM NET
INVESTMENT INCOME: $ (107,568)
-----------------------------------------------------------------------------------------------------------
Net decrease in net assets applicable to common shareowners
resulting from operations $(32,409,164)
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 39
Statement of Changes in Net Assets (Consolidated)
----------------------------------------------------------------------------------------------------
Six Months
Ended
9/30/11 Year Ended
(unaudited) 3/30/11
----------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 23,942,749 $ 46,924,784
Net realized gain on investments and foreign currency
transactions 9,071,532 3,493,231
Change in unrealized gain (loss) on investments and foreign
currency transactions (65,315,877) 26,357,426
Distributions to preferred shareowners from net investment
income (107,568) (459,394)
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners resulting from operations $(32,409,164) $ 76,316,047
----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income ($0.83 and $1.65 per share, respectively) $(23,144,896) $(45,965,092)
----------------------------------------------------------------------------------------------------
Total distributions to common shareowners $(23,144,896) $(45,965,092)
----------------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment in distributions $ 2,035,929 $ 3,910,658
----------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners from Trust share transactions $ 2,035,929 $ 3,910,658
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners $(53,518,131) $ 34,261,613
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period 401,348,320 367,086,707
----------------------------------------------------------------------------------------------------
End of period $347,830,189 $401,348,320
----------------------------------------------------------------------------------------------------
Undistributed net investment income $ 12,306,270 $ 11,615,985
====================================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer High Income Trust | Semiannual Report | 9/30/11
Financial Highlights
----------------------------------------------------------------------------------------------------------
Six Months
Ended Year
9/30/11 Ended
(Consolidated) 3/31/11
(Unaudited) (Consolidated)
----------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 14.33 $ 13.23
----------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 0.86 $ 1.68
Net realized and unrealized gain (loss) on investments and foreign
currency transactions (1.99) 1.09
Dividends and distributions to preferred shareowners from:
Net investment income (0.00)(g) (0.02)
Net realized gains -- --
----------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.13) $ 2.75
Dividends and distributions to common shareowners from:
Net investment income (0.83) (1.65)
Net realized gains -- --
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.96) $ 1.10
----------------------------------------------------------------------------------------------------------
Net asset value, end of period(b) $ 12.37 $ 14.33
==========================================================================================================
Market value, end of period(b) $ 16.35 $ 16.55
==========================================================================================================
Total return at market value(c) 3.17% 20.12%
Ratios to average net assets
Net expenses(d) 0.98%(f) 1.11%
Net investment income before preferred share dividends 11.48%(f) 12.43%
Preferred share dividends 0.05%(f) 0.12%
Net investment income available to common shareowners 11.43%(f) 12.31%
----------------------------------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
3/31/10 3/31/09 3/31/08 3/31/07
----------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 7.07 $ 13.41 $ 16.63 $16.13
----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 1.65 $ 1.82 $ 1.90 $ 1.88
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 6.17 (6.38) (2.73) 0.64
Dividends and distributions to preferred shareowners from:
Net investment income (0.01) (0.13) (0.22) (0.27)
Net realized gains -- -- (0.07) (0.01)
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 7.81 $ (4.69) $ (1.12) $ 2.24
Dividends and distributions to common shareowners from:
Net investment income (1.65) (1.65) (1.65) (1.65)
Net realized gains -- -- (0.45) (0.09)
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 6.16 $ (6.34) $ (3.22) $ 0.50
----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period(b) $ 13.23 $ 7.07 $ 13.41 $16.63
======================================================================================================================
Market value, end of period(b) $ 15.38 $ 8.03 $ 13.15 $17.84
======================================================================================================================
Total return at market value(c) 119.69% (27.74)% (15.37)% 17.61%
Ratios to average net assets
Net expenses(d) 1.23% 1.25% 1.02% 1.01%
Net investment income before preferred share dividends 14.92% 17.03% 12.36% 11.57%
Preferred share dividends 0.13% 1.22% 1.45% 1.67%
Net investment income available to common shareowners 14.79% 15.81% 10.91% 9.90%
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/11 41
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------
Six Months
Ended Year
9/30/11 Ended
(Consolidated) 3/31/11
(Unaudited) (Consolidated)
----------------------------------------------------------------------------------------------------------
Portfolio turnover 15% 10%
Net assets of common shareowners, end of period (in thousands) $347,830 $401,348
Preferred shares outstanding (in thousands) $151,000 $151,000
Asset coverage per preferred share, end of period $ 82,588 $ 91,450
Average market value per preferred share(e) $ 25,000 $ 25,000
Liquidation value, including dividends payable, per preferred share $ 25,001 $ 25,001
Ratio to average net assets of common shareowners before waivers
and reimbursements of expenses
Net expenses(d) 0.98%(f) 1.11%
Net investment income before preferred share dividends 11.48%(f) 12.43%
Preferred share dividends 0.05%(f) 0.12%
Net investment income available to common shareowners 11.43%(f) 12.31%
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
3/31/10 3/31/09 3/31/08 3/31/07
----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 15% 19% 15% 27%
Net assets of common shareowners, end of period (in thousands) $367,087 $194,057 $365,199 $450,444
Preferred shares outstanding (in thousands) $151,000 $151,000 $151,000 $151,000
Asset coverage per preferred share, end of period $ 85,777 $ 57,131 $ 85,481 $ 99,597
Average market value per preferred share(e) $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per preferred share $ 25,001 $ 25,002 $ 25,018 $ 25,020
Ratio to average net assets of common shareowners before waivers
and reimbursements of expenses
Net expenses(d) 1.23% 1.25% 1.02% 1.01%
Net investment income before preferred share dividends 14.92% 17.03% 12.36% 11.57%
Preferred share dividends 0.13% 1.22% 1.45% 1.67%
Net investment income available to common shareowners 14.79% 15.81% 10.91% 9.90%
----------------------------------------------------------------------------------------------------------------------------
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Net asset value and market value are published in Barron's on Saturday,
The Wall Street Journal on Monday and The New York Times on Monday and
Saturday.
(c) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
market value on the last day of the periods reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment return does not reflect brokerage commissions. Past
performance is not a guarantee of future results.
(d) Expense ratios do not reflect the effect of dividend payments to preferred
shareowners.
(e) Market value is redemption value without an active market.
(f) Annualized.
(g) Amount is less than $0.01 per common share.
The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets of common shareowners and other supplemental data for the periods
indicated. This information has been determined based upon financial
information provided in the financial statements and market value data for the
Trust's common shares.
The accompanying notes are an integral part of these financial statements.
42 Pioneer High Income Trust | Semiannual Report | 9/30/11
Notes to Financial Statements | 9/30/11 (Consolidated) (unaudited)
1. Organization and Significant Accounting Policies
Pioneer High Income Trust (the Trust) was organized as a Delaware statutory
trust on January 30, 2002. Prior to commencing operations on April 26, 2002,
the Trust had no operations other than matters relating to its organization and
registration as a diversified, closed-end management investment company under
the Investment Company Act of 1940, as amended. The investment objective of the
Trust is to seek a high level of current income and the Trust may, as a
secondary objective, also seek capital appreciation to the extent that it is
consistent with its investment objective.
Information regarding the Trust's principal risks is contained in the Trust's
original offering prospectus, with additional information included in the
Trust's shareowner reports issued from time to time. Please refer to those
documents when considering the Trust's principal risks. At times, the Trust's
investments may represent industries or industry sectors that are interrelated
or have common risks, making the Trust more susceptible to any economic,
political, or regulatory developments or other risks affecting those industries
and sectors.
Under normal market conditions, the Trust invests at least 80% of its assets in
below investment grade (high-yield) debt securities, loans and preferred
stocks. Because the Trust's investments are concentrated in high-yield
securities, the Trust is subject to risks of such securities. Below investment
grade securities are commonly referred to as "junk bonds" and are considered
speculative with respect to the issuer's capacity to pay interest and repay
principal.
The Trust's investments in certain foreign markets or countries with limited
developing markets may subject the Trust to a greater degree of risk than in a
developed market. These risks include disruptive political or economic
conditions and the possible imposition of adverse governmental laws or currency
exchange restrictions.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting year. Actual results could differ from those estimates.
Pioneer High Income Trust | Semiannual Report | 9/30/11 43
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Investments in 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.
Loan interests for which no reliable price quotes are available will be
valued by Loan Pricing Corporation through the use of pricing matrices to
determine valuations. Fixed income securities with remaining maturity of more
than sixty days are valued at prices supplied by independent pricing
services, which consider such factors as market prices, market events,
quotations from one or more brokers, Treasury spreads, yields, maturities and
ratings. Valuations may be supplemented by dealers and other sources, as
required. Equity securities that have traded on an exchange are valued at the
last sale price on the principal exchange where they are traded. Equity
securities or loan interests for which independent pricing services are
unable to supply prices or for which market prices and/or quotations are not
readily available or are considered to be unreliable are valued using fair
value methods pursuant to procedures adopted by the Board of Trustees.
The Trust may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Trust's net asset
value. Thus, the valuation of the Trust's securities may differ from exchange
prices.
At September 30, 2011, four securities were valued using fair value methods
(in addition to securities valued using prices supplied by independent
pricing services) representing 0.5% of net assets applicable to common
shareowners. Inputs used when applying fair value methods to value a security
may include credit ratings, the financial condition of the company, current
market conditions and comparable securities. Short-term fixed income
securities with remaining maturities of sixty days or less generally are
valued at amortized cost. Money market mutual funds are valued at net asset
value.
Discounts and premiums on debt securities are accreted or amortized,
respectively, daily, into interest income on an effective yield to maturity
basis with a corresponding increase or decrease in the cost basis of the
security. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
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.
44 Pioneer High Income Trust | Semiannual Report | 9/30/11
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Trust becomes aware of the ex-dividend data in
the exercise of reasonable diligence.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the Statement of Operations from the
effects of changes in market prices of those securities but are included with
the net realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Trust may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized gains or losses are recorded in
the Trust's financial statements. The Trust records realized gains and losses
at the time a portfolio hedge is offset by entry into a closing transaction
or extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contracts and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (see Note 6).
D. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years remain subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Trust's distributions may be shown
in the accompanying financial statements as from or in excess of net
Pioneer High Income Trust | Semiannual Report | 9/30/11 45
investment income or net realized gain (loss) on investment and foreign
currency transactions, or from paid-in capital, depending on the type of
book/tax differences that may exist.
Under the recently enacted Regulated Investment Company Modernization Act of
2010, the Fund will be permitted to carry forward capital losses incurred in
taxable years beginning after December 22, 2010 for an unlimited period.
However, any losses incurred during those future years will be required to be
utilized prior to the losses incurred in pre-enactment tax years. As a result
of this ordering rule, pre-enactment capital loss carryforwards may be more
likely to expire unused. Additionally, post enactment capital losses that are
carried forward will retain their character as either short-term or long-term
capital losses rather than being considered all short-term as under previous
law.
The tax character of current year distributions paid to common and preferred
shareowners during the year ended March 31, 2011 was as follows:
--------------------------------------------------------------------------------
2011
--------------------------------------------------------------------------------
Distribution paid from:
Ordinary Income $46,424,486
--------------------------------------------------------------------------------
Total taxable distribution $46,424,486
--------------------------------------------------------------------------------
The following shows the components of distributable earnings (losses) on a
federal income tax basis at March 31, 2011:
--------------------------------------------------------------------------------
2011
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 13,616,469
Capital loss carryforward (58,140,584)
Post-October loss deferred (953,338)
Dividends payable (8,386)
Unrealized appreciation 48,961,093
--------------------------------------------------------------------------------
Total $ 3,475,254
--------------------------------------------------------------------------------
The difference between book-basis and tax-basis unrealized appreciation is
primarily attributable to the tax deferral of losses on straddles and wash
sales, the realization for tax purposes of unrealized gains on certain
foreign currency contracts, the difference between book and tax amortization
methods for premiums and discounts on fixed income securities, the accrual of
income on securities in default, and other book/tax temporary differences.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
46 Pioneer High Income Trust | Semiannual Report | 9/30/11
account of the Trust's custodian or a subcustodian of the Trust. The Trust's
investment adviser, Pioneer Investment Management, Inc. (PIM), is responsible
for determining that the value of the collateral remains at least equal to
the repurchase price.
F. Securities Lending
The Trust lends securities in its portfolio to certain broker-dealers or
other institutional investors. When entering into a securities loan
transaction, the Trust typically receives cash collateral from the borrower
equal to at least the value of the securities loaned, which is invested in
temporary investments. Credit Suisse AG, New York Branch, as the Trust's
securities lending agent, manages the Trust's securities lending collateral.
The income earned on the investment of collateral is shared with the borrower
and the lending agent in payment of any rebate due to the borrower with
respect to the securities loan, and in compensation for the lending agent's
services to the Trust. The Trust also continues to receive payments in lieu
of dividends or interest on the securities loaned. Gain or loss on the value
of the loaned securities that may occur during the term of the loan will be
for the account of the Trust. The amount of the collateral is required to be
adjusted daily to reflect any price fluctuation in the value of the loaned
securities. If the required market value of the collateral is less than the
value of the loaned securities, the borrower is required to deliver
additional collateral for the account of the Trust prior to the close of
business on that day. The Trust has the right, under the lending agreement,
to terminate the loan and recover the securities from the borrower with prior
notice. The Trust is required to return the cash collateral to the borrower
and could suffer a loss if the value of the collateral, as invested, has
declined.
G. Automatic Dividend Reinvestment Plan
All common shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional common shares
of the Trust in lieu of cash. Shareowners may elect not to participate in the
Plan. Shareowners not participating in the Plan receive all dividends and
capital gain distributions in cash. Participation in the Plan is completely
voluntary and may be terminated or resumed at any time without penalty by
notifying American Stock Transfer & Trust Company, the agent for shareowners
in administering the Plan (the Plan Agent), in writing prior to any dividend
record date; otherwise such termination or resumption will be effective with
respect to any subsequently declared dividend or other distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate in
the Plan on the shareowner's behalf. If the firm or nominee does not offer
Pioneer High Income Trust | Semiannual Report | 9/30/11 47
the Plan, dividends will be paid in cash to the shareowner of record. A firm
or nominee may reinvest a shareowner's cash dividends in common shares of the
Trust on terms that differ from the terms of the Plan.
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional unissued
but authorized common shares from the Trust or (ii) by purchase of
outstanding common shares on the New York Stock Exchange or elsewhere. If, on
the payment date for any dividend, the net asset value per common share is
equal to or less than the market price per share plus estimated brokerage
trading fees (market premium), the Plan Agent will invest the dividend amount
in newly issued common shares. The number of newly issued common shares to be
credited to each account will be determined by dividing the dollar amount of
the dividend by the net asset value per common share on the date the shares
are issued, provided that the maximum discount from the then current market
price per share on the date of issuance does not exceed 5%. If, on the
payment date for any dividend, the net asset value per common share is
greater than the market value (market discount), the Plan Agent will invest
the dividend amount in common shares acquired in open-market purchases. There
are no brokerage charges with respect to newly issued common shares. However,
each participant will pay a pro rata share of brokerage trading fees incurred
with respect to the Plan Agent's open-market purchases. Participating in the
Plan does not relieve shareowners from any federal, state or local taxes
which may be due on dividends paid in any taxable year. Shareowners holding
Plan shares in a brokerage account may not be able to transfer the shares to
another broker and continue to participate in the Plan.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
manages the Trust's portfolio. Management fees payable under the Trust's
Advisory Agreement with PIM are calculated daily at the annual rate of 0.60% 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 of the issuance of debt securities), (ii)
the issuance of preferred stock or other similar preference securities, and/or
(iii) any other means. For the six months ended September 30, 2011, the net
management fee was 0.51% of the Trust's average daily managed assets, which was
equivalent to 0.69% of the Trust's average daily net assets attributable to the
common shareowners.
48 Pioneer High Income Trust | Semiannual Report | 9/30/11
In addition, under PIM's management and administration agreements, certain
other services and costs are paid by PIM and reimbursed by the Trust. At
September 30, 2011, $301,163 was payable to PIM related to management costs,
administrative costs and certain other reimbursements and is included in "Due
to affiliates" on the Statement of Assets and Liabilities.
Effective September 1, 2010, PIM has retained State Street Bank and Trust
Company (State Street) to provide certain administrative and accounting
services to the Trust on its behalf. For such services, PIM pays State Street a
monthly fee at an annual rate of 0.07% of the Trust's average daily managed
assets up to $500 million and 0.03% for average daily managed assets in excess
of $500 million, subject to a minimum monthly fee of $10,000. Previously, PIM
had retained Princeton Administrators, LLC (Princeton) to provide such
services. PIM paid Princeton a monthly fee at an annual rate of 0.07% of the
Trust's average daily managed assets up to $500 million and 0.03% for average
daily managed assets in excess of $500 million, subject to a minimum monthly
fee of $10,000. Neither State Street nor Princeton received compensation
directly from the Trust for providing such services.
3. Transfer Agents
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly
owned indirect subsidiary of UniCredit, through a sub-transfer agency agreement
with American Stock Transfer & Trust Company, provides substantially all
transfer agent and shareowner services related to the Trust's common shares at
negotiated rates. Deutsche Bank Trust Company Americas (Deutsche Bank) is the
transfer agent, registrar, dividend paying agent and auction agent with respect
to the Trust's Auction Market Preferred Shares (AMPS). The Trust pays Deutsche
Bank an annual fee, as is agreed to from time to time by the Trust and Deutsche
Bank, for providing such services.
In addition, the Trust reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareowner communications activities such as proxy and
statement mailings and outgoing phone calls.
4. Basis for Consolidation for the Pioneer High Income Trust
The consolidated financial statements of the Trust include the accounts of
Blaze Holding HINCT, Inc. ("the Subsidiary"). All intercompany accounts and
transactions have been eliminated in consolidation. The Subsidiary, a Delaware
corporation, was incorporated on February 10, 2011 and is wholly-owned and
controlled by the Trust. It is intended that the Trust will remain the sole
shareholder of, and will continue to control, the Subsidiary. The Subsidiary
acts as an investment vehicle for the Trust's interest in Blaze Recycling and
Metals LLC, Class A Units. As of September 30, 2011, the Subsidiary represented
approximately $960,214 or approximately 0.3% of the net assets applicable to
the common shareholders of the Trust.
Pioneer High Income Trust | Semiannual Report | 9/30/11 49
5. Expense Offset Arrangement
The Trust has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion
of the Trust's custodian expenses. For the six months ended September 30, 2011,
the Trust expenses were not reduced under such arrangement.
6. Forward Foreign Currency Contracts
During the six months ended September 30, 2011, the Trust entered into various
forward foreign currency contracts that obligate the Trust to deliver or take
delivery of currencies at specified future maturity dates. Alternatively, prior
to the settlement date of a forward foreign currency contract, the Trust may
close out such contract by entering into an offsetting contract. The average
value of contracts open during the six months ended September 30, 2011 was
2,586,678.
Open portfolio hedge at September 30, 2011, were as follows:
-----------------------------------------------------------------------------------------------------
Net
Net Contracts to In Exchange Settlement Unrealized
Currency Receive/(Deliver) for US$ Date US$ Value Gain
-----------------------------------------------------------------------------------------------------
EURO (161,000) $ (230,977) 12/15/11 $ (215,629) $15,348
EURO (4,275,000) (5,738,610) 01/31/12 (5,725,511) 13,099
GBP (422,000) (693,428) 11/04/11 (657,865) 35,563
GBP (720,000) $(1,124,118) 02/03/12 $(1,121,499) 2,619
-----------------------------------------------------------------------------------------------------
Total $66,629
=====================================================================================================
7. Unfunded Loan Commitments
As of September 30, 2011, the Trust had an unfunded loan commitment of $137,376
(excluding unrealized depreciation on this commitment of $4,808 as of September
30, 2011) which could be extended at the option of the borrower, pursuant to
the following loan agreement:
--------------------------------------------------------------------------------
Unfunded Loan
Borrower Commitment
--------------------------------------------------------------------------------
National Specialty Hospitals, Inc., Delayed Draw Term Loan $137,376
--------------------------------------------------------------------------------
8. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the six months ended
September 30, 2011 and the year ended March 31, 2011 were as follows:
--------------------------------------------------------------------------------
9/30/11 3/31/11
--------------------------------------------------------------------------------
Shares outstanding at beginning of period 27,999,225 27,737,499
Reinvestment of distributions 129,393 261,726
--------------------------------------------------------------------------------
Shares outstanding at end of period 28,128,618 27,999,225
--------------------------------------------------------------------------------
50 Pioneer High Income Trust | Semiannual Report | 9/30/11
The Trust may classify or reclassify any unissued common shares of beneficial
interest into one or more series of preferred shares of beneficial interest. As
of September 30, 2011, there were 6,040 AMPS as follows: Series M7-2,020,
Series W28,-2,020 and Series TH7-2,000.
Dividends on Series M7 and Series TH7 are cumulative at a rate which is to be
reset every seven days based on the results of an auction. Dividends on Series
W28 are also cumulative at a rate to be reset every 28 days based on the
results of an auction. An auction fails if there are more AMPS offered for sale
than there are buyers. When an auction fails, the dividend rate for the period
will be the maximum rate on the auction dates described in the prospectus for
the AMPS. Preferred shareowners are not able to sell their AMPS at an auction
if the auction fails. Since February 2008, the Trust's auctions related to the
AMPS have failed. The maximum rate for each 7-day Series is 150% of the 7 day
commercial paper rate. The maximum rate for the 28-day series is 150% of the 30
day commercial paper rate. Dividend rates on AMPS ranged from 0.045% to 0.240%
during the six months ended September 30, 2011.
The Trust may not declare dividends or make other distributions on its common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, the Trust does not comply with the asset coverage
ratios described in the prospectus for the AMPS.
The AMPS are redeemable at the option of the Trust, in whole or in part, on any
dividend payment date at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared. The AMPS are also subject to mandatory
redemption at $25,000 per share plus any accumulated or unpaid dividends,
whether or not declared, if certain requirements relating to the composition of
the assets and liabilities of the Trust as set forth in the Statement of
Preferences are not satisfied.
The holders of AMPS have voting rights equal to the holders of the Trust's
common shares (one vote per share) and will vote together with holders of the
common shares as a single class. Holders of AMPS are also entitled to elect two
of the Trust's Trustees. In addition, the Investment Company Act of 1940, as
amended, requires that along with approval by shareowners that might otherwise
be required, the approval of the holders of a majority of any outstanding
preferred shares, voting separately as a class, would be required to (a) adopt
any plan of reorganization that would adversely affect the preferred shares and
(b) take any action requiring a vote of security holders, including, among
other things, changes in the Trust's subclassification as a closed-end
management investment company or changes in its fundamental investment
restrictions.
Pioneer High Income Trust | Semiannual Report | 9/30/11 51
9. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of September 30, 2011 were as follows:
-----------------------------------------------------------------------------------------------------------
Asset Derivatives Liabilities Derivatives
---------------------------------------------------------------------------
Derivatives Balance Sheet Location Value Balance Sheet Location Value
-----------------------------------------------------------------------------------------------------------
Foreign Exchange Contracts Receivables $66,629 Payables $ --
-----------------------------------------------------------------------------------------------------------
Total $66,629 $ --
===========================================================================================================
The effect of derivative instruments on the Statement of Operations for the six
months ended September 30, 2011 was as follows:
-------------------------------------------------------------------------------------------------------
Change in
Location of Gain or Realized Gain or Unrealized Gain or
(Loss) on Derivatives (Loss) on Derivatives (Loss) on Derivatives
Derivatives Recognized in Income Recognized in Income Recognized in Income
-------------------------------------------------------------------------------------------------------
Foreign Exchange Net realized gain on forward $391,060
Contracts foreign currency contracts and
other assets and liabilities
denominated in foreign
currencies
-------------------------------------------------------------------------------------------------------
Foreign Exchange Change in net unrealized gain $72,857
Contracts (loss) on forward foreign
currency contracts and other
assets and liabilities
denominated in foreign
currencies
-------------------------------------------------------------------------------------------------------
10. Subsequent Events
The Board of Trustees of the Trust declared a dividend from undistributed net
investment income of $0.1375 per common share payable October 31, 2011, to
common shareowners of record on October 14, 2011.
Dividends declared and paid on preferred shares totaled $15,974 in aggregate
for the September 30 outstanding preferred share series through November 9,
2011.
In preparing these financial statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure and has
determined that other than disclosed above, there were no subsequent events
requiring recognition or disclosure in the financial statements.
52 Pioneer High Income Trust | Semiannual Report | 9/30/11
ADDITIONAL INFORMATION (unaudited)
During the period, there have been no material changes in the Trust's
investment objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust which has not been
approved by the shareowners. During the period, there have been no changes in
the principal risk factors associated with investment in the Trust. There were
no changes in the persons who are primarily responsible for the day-to-day
management of the Trust's portfolio.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its common
shares in the open market.
Results of Shareholder Meeting (unaudited)
At the annual meeting of shareowners held on September 21, 2011, shareowners of
Pioneer High Income Trust were asked to consider the proposals described below.
A report of the total votes cast by the Trust's shareholders follows:
Proposal 1 -- To elect Class III Trustees.
-----------------------------------------------------------------------------
Nominee For Withheld
-----------------------------------------------------------------------------
Benjamin J. Friedman 24,687,619.917 582,004.844
Margaret B.W. Graham 24,680,464.917 589,159.844
Daniel K. Kingsbury 24,736,344.917 533,279.844
Pioneer High Income Trust | Semiannual Report | 9/30/11 53
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham Christopher J. Kelley, Secretary
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Legal Counsel
Bingham McCutchen LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Shareowner Services and Sub-Transfer Agent
American Stock Transfer & Trust Company
Preferred Share Auction/Transfer Agent and Registrar
Deutsche Bank Trust Company Americas
Sub-Administrator
State Street Bank and Trust Company
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at us.pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at www.sec.gov.
54 Pioneer High Income Trust | Semiannual Report | 9/30/11
This page for your notes.
Pioneer High Income Trust | Semiannual Report | 9/30/11 55
This page for your notes.
56 Pioneer High Income Trust | Semiannual Report | 9/30/11
This page for your notes.
Pioneer High Income Trust | Semiannual Report | 9/30/11 57
This page for your notes.
58 Pioneer High Income Trust | Semiannual Report | 9/30/11
This page for your notes.
Pioneer High Income Trust | Semiannual Report | 9/30/11 59
This page for your notes.
60 Pioneer High Income Trust | Semiannual Report | 9/30/11
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
web site us.pioneerinvestments.com.
The Trust files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR (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 accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
The registrant has a separately-designated standing audit
committe eestablished in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Information not required in semi annual reports on form NCSR.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Information not required in semi annual reports on form NCSR.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
During the period covered by this report, there were no purchases
made by or on behalf of the registrant or any affiliated purchaser
as defined in Rule 10b-18(a)(3) under the Securities Exchange Act
of 1934 (the Exchange Act), of shares of the registrants equity
securities that are registered by the registrant pursuant to
Section 12 of the Exchange Act.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer High Income Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date November 29, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date November 29, 2011
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date November 29, 2011
* Print the name and title of each signing officer under his or her signature.