0000078713-12-000047.txt : 20120629
0000078713-12-000047.hdr.sgml : 20120629
20120629102038
ACCESSION NUMBER: 0000078713-12-000047
CONFORMED SUBMISSION TYPE: N-CSR
PUBLIC DOCUMENT COUNT: 3
CONFORMED PERIOD OF REPORT: 20120430
FILED AS OF DATE: 20120629
DATE AS OF CHANGE: 20120629
EFFECTIVENESS DATE: 20120629
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: Pioneer Diversified High Income Trust
CENTRAL INDEX KEY: 0001388126
IRS NUMBER: 000000000
STATE OF INCORPORATION: DE
FISCAL YEAR END: 0430
FILING VALUES:
FORM TYPE: N-CSR
SEC ACT: 1940 Act
SEC FILE NUMBER: 811-22014
FILM NUMBER: 12934332
BUSINESS ADDRESS:
STREET 1: 60 STATE STREET
CITY: BOSTON
STATE: MA
ZIP: 02109
BUSINESS PHONE: 617-742-7825
MAIL ADDRESS:
STREET 1: 60 STATE STREET
CITY: BOSTON
STATE: MA
ZIP: 02109
FORMER COMPANY:
FORMER CONFORMED NAME: Pioneer Diversified Income Opportunity Trust
DATE OF NAME CHANGE: 20070129
N-CSR
1
ncsr.txt
OMB APPROVAL
OMB Number: 3235-0570
Expires: August 31, 2013
Estimated average burden
hours per response.....18.9
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 811-22014
Pioneer Diversified 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: April 30
Date of reporting period: May 1, 2011 through April 30, 2012
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 Diversified
High Income Trust
--------------------------------------------------------------------------------
Annual Report | April 30, 2012
--------------------------------------------------------------------------------
Ticker Symbol: HNW
[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 39
Financial Highlights 43
Notes to Financial Statements 45
Report of Independent Registered Public Accounting Firm 56
Approval of Investment Advisory Agreement 58
Trustees, Officers and Service Providers 62
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 1
President's Letter
Dear Shareowner,
The U.S. economy continued its recovery through the first quarter of 2012, even
as broader global concerns weighed on investors. The U.S. unemployment rate
fell to 8.1% in April, and some indicators suggest that it may continue to
trend down. The housing market continued to improve, fueled in part by
record-low mortgage rates. The risk of rising oil prices appeared to recede.
The improved outlook helped U.S. equity markets to perform well in the first
quarter, with the Standard & Poor's 500 Index rising by 12%. For bond
investors, the riskier sectors of the bond market fared the best. The broad
bond market, as measured by the Barclays Capital Aggregate Bond Index, rose by
just 0.3%, while the high-yield bond market, as measured by the Bank of America
Merrill Lynch High Yield Master II Index, rose by 5.15%.
We are cautiously optimistic that the U.S. economy will continue to improve.
But we are also closely monitoring macroeconomic concerns that could change the
market's direction, such as the lingering debt woes in Europe, the state of the
Chinese economy, and the U.S. government's fiscal situation. Clouds have
continued to hover over Europe, as the exit of Greece from the Euro-zone
remains a possibility. Meanwhile, China continues to face a potential slowdown
in economic growth. In the U.S., tax increases and spending cuts scheduled to
take effect at year-end should, unless fiscal policy changes, sharply reduce
the budget deficit -- which would be very good for the country in the longer
run -- but also could potentially stall U.S. economic growth in 2013. All of
these considerations may lead to further market volatility.
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.
Pioneer's investment professionals focus on finding good opportunities to
invest in both equity and bond markets using the same disciplined investment
approach we have used since 1928. Our strategy is to identify undervalued
individual securities with the greatest potential for success, carefully
weighing risk against reward. Our teams of investment professionals continually
2 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
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.
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 Diversified High Income Trust | Annual Report | 4/30/12 3
Portfolio Management Discussion | 4/30/12
Credit-sensitive bonds delivered moderately positive results over the 12 months
ended April 30, 2012, amid shifting sentiments about the strength and
durability of the global economic recovery and the potentially contagious
effects of a sovereign-debt crisis in Europe. In the following interview,
Andrew Feltus discusses the factors that affected the Pioneer Diversified High
Income Trust's performance during the 12 months. Mr. Feltus, senior vice
president and portfolio manager at Pioneer, and a member of Pioneer's
fixed-income team, is responsible for the day-to-day management of the Trust.
Q How did the Trust perform during the 12 months ended April 30, 2012?
A Pioneer Diversified High Income Trust produced a total return of 2.62% at net
asset value, and 1.35% at market value during the 12 months ended April 30,
2012. During the same period, the Trust's custom benchmark returned 3.86%. The
custom benchmark is based on equal weightings of the Bank of America Merrill
Lynch Global High Yield and Emerging Markets Plus Index, which returned 4.9%,
and the Credit Suisse Leveraged Loan Index, which returned 2.82%. During the
same 12 months, the average return (at market price) of the 41 closed end
funds in Lipper's High Current Yield Closed End Funds category (which are or
may be leveraged) was 8.75%.
The shares of the Trust were selling at a 3.2% premium to net asset value at
the end of the 12 months on April 30, 2012.
Unlike the Trust, the custom benchmark does not use leverage. While the use of
leverage can increase investment opportunity, it can also increase investment
risk.
On April 30, 2012, the standardized 30-day SEC yield on the Trust's shares was
13.35%.
Q How would you describe the investment environment during the 12 months ended
April 30, 2012?
A The period saw market trends shift as investors reacted to contrasting reports
about both the sustainability of the global economic recovery and the
potentially contagious effects of sovereign-debt problems in Europe.
For much of the early part of the Trust's fiscal year which began on May 1,
2011, investors tried to avoid credit risk in the face of a series of worries,
which included sovereign-debt problems in Greece and some other European
nations; evidence of slowing growth trends in China; concerns about the
longer-term effects of the accommodative monetary policies of the U.S. Federal
Reserve System (the Fed); and disappointing reports about
4 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
economic growth and the jobs market in the United States, which raised fears
that the domestic economy could fall back into recession. The myriad of
worries and the risk-averse environment they spawned led to relatively poor
performance from high-yield corporate bonds, emerging market debt and other
perceived riskier sectors of the fixed-income markets. In contrast, U.S.
Treasuries and other higher-rated securities outperformed. The risk- averse
market environment peaked in August of 2011, but continued into September when
the market finally began to show signs of stabilization.
In December 2011, a succession of more positive developments finally triggered
a significant change in market attitudes, and credit-sensitive investments
embarked on a robust rally that continued through the end of March 2012.
Contributing to the improving investment backdrop were newer reports
suggesting a strengthening of the economic recovery in the United States,
which were accompanied by a long-delayed improvement in the jobs market.
Meanwhile, more accommodative monetary policies by the European Central Bank
(ECB) injected additional money into the financial system there, and bolstered
the liquidity of European banks. At the same time, easing of monetary policy
in China helped to quell fears about a slump in that giant economy. However,
markets grew choppier in April of 2012, the final month of the Trust's fiscal
year, as the approach of national elections in Greece renewed investors'
worries that problems in Europe could have a contagious effect on the global
economy.
Q In that environment, what were the Trust's principal investment strategies
during the 12 months ended April 30, 2012, and how did the strategies affect
the Trust's performance?
A We kept the Trust's portfolio of investments well-diversified* throughout the
period, with healthy exposures to three core groups: global high-yield bonds;
floating-rate bank loans; and catastrophe-linked bonds issued by
property-and-casualty reinsurance companies. The Trust's investments in the
first two groups, high-yield bonds and floating-rate loans, performed in line
with market trends over the 12 months, as those securities held back the
Trust's results early in the fiscal year but helped to boost performance later
in the period, as investors' appetite for the credit sectors increased
substantially. The Trust's positions in catastrophe-linked bonds, however,
lagged the other groups over the 12 months ended April 30, 2012, due to higher
insurance claims following natural disasters in Japan (a March 2011 earthquake
and tsunami) and in the United States (a series of devastating tornadoes in
the Midwest). As a result of the increased insurance claims,
catastrophe-linked bonds generally fell out of favor. The Trust's exposure to
catastrophe-linked bonds was pared back somewhat during the fiscal year,
primarily because new issuance fell in the wake of the disasters and we were
* Diversification does not assure a profit or protect against loss in a
declining market.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 5
unable to find enough securities that met our investment criteria. However, we
continue to use catastrophe-linked bonds as part of our core investment
strategy for the Trust, as they help to diversify overall portfolio risk and
also offer the advantages of floating interest rates, which have the potential
to increase income when interest rates rise.
At the end of the Trust's fiscal year on April 30, 2012, 70.6% of the Trust's
total investment portfolio was invested in corporate bonds and notes of which
55.9% was invested in high-yield bonds, including U.S. high-yield corporates,
emerging market debt, and foreign high-yield bonds. U.S. high-yield corporate
bonds accounted for the greatest portion of the Trust's weighting in
high-yield securities, at 36.1% of the Trust's total investment portfolio.
Floating-rate bank loans represented 22.0% of the Trust's total investment
portfolio at the end of the fiscal year, while catastrophe-linked bonds
accounted for 17.71% of the Trust's total investment portfolio.
Q What were some of the individual investments that affected the Trust's
performance during the 12 months ended April 30, 2012?
A A number of Trust holdings performed well during he period, led by investments
in the U.S. high-yield market. The top performance contributor was the Trust's
holding in the debt of WESCO International, a distributor of industrial and
electrical components. Other strong performers for the Trust included the
bonds of Burger King, which gained in value when the company announced plans
for an initial stock offering; securities of PAETEC, a wireless communication
services provider that was acquired by another company; and the debt of U.S.
Corrugated, a packaging manufacturer that strengthened its balance sheet by
selling assets. The Trust's investment in the bonds of Basell Finance, a
subsidiary of LyondellBasell, a chemical company based in the Netherlands,
also helped performance during the fiscal year, as did the securities of
Reynolds Group, a packaging company in the United States and Europe, and of
Swift Services, a domestic trucking company whose business showed gains as the
U.S. economy recovered.
The Trust also had some disappointing holdings during the 12 months, however,
including the bonds and loans of TXU, a Texas-based electric utility that was
hurt by the lower price of natural gas. The debt of another power company,
Adenor of Argentina, also underperformed as its earnings were squeezed when
regulators declined to allow a rate increase. In addition to the negative
effects on performance of catastrophe-linked bonds in general, the Trust held
two small positions in specific catastrophe-linked bonds that defaulted during
the period: Muteki in Japan and Mariah in the United States. Neither position
had a significant impact on the Trust's results.
6 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
Q Did the use of derivatives affect Trust performance during the 12 months ended
April 30, 2012?
A The only derivatives used during the period were some currency forward
contracts, which we employed to reduce the portfolio's risks from changes in
the relative values of currencies. The contracts had a slightly positive
effect on the Trust's performance.
Q How did the level of leverage employed by the Trust change over the 12 months
ended April 30, 2012?
A At the end of the 12 months, 30.0% of the Trust's total managed assets were
financed by leverage, compared with 28.5% of the Trust's total managed assets
leveraged at the start of the period on May 1, 2011. The change was due to
fluctuations in the values of securities in which the Trust had invested.
Q What is your investment outlook?
A We think corporate debt remains attractive, and we are optimistic about the
U.S. economy. Industrial output and retail sales have been positive, while the
employment market finally is beginning to show some improvement and the
housing industry has shown evidence of stabilization. Meanwhile, corporate
profits remain healthy and most companies have strengthened their balance
sheets. Default rates are low by historical standards. We believe those
factors should support high-yield investments. It is important to keep in
mind, however, that the current low-interest-rate environment has resulted in
relatively lower yields from corporate bonds on an absolute basis and that
necessarily limits the returns that can reasonably be expected. While any
increase in Treasury yields would be a drag on the performance of high-yield
bonds, an interest-rate increase could help boost the yields of both bank
loans and catastrophe-linked investments.
We plan to maintain a strong emphasis on domestic and foreign high-yield bonds
in the Trust's portfolio, as part of an overall diversified investment
approach that includes significant exposures to floating-rate bank loans and
catastrophe-linked bonds.
The Trust has been earning its dividend and we think the portfolio is well
positioned for an environment of moderate economic growth, both domestically
and globally.
Please refer to the Schedule of Investments on pages 12-38 for a full listing
of Trust securities.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 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 debt securities in the Trust will
generally fall. Conversely, when interest rates fall the prices of debt
securities in the Trust generally will rise. Investments in the Trust are
subject to possible loss due to the financial failure of the issuers of the
underlying securities and the issuers' 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 also are 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 is authorized to borrow from banks and issue debt securities, which
are forms of leverage. Leverage creates significant risks, including the risk
that the Trust's incremental income or capital appreciation will not be
sufficient to cover the cost of leverage, which may adversely affect the return
for shareholders.
Risks of investing in the Trust are discussed in greater detail in the Trust's
original offering prospectus and in 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 Diversified High Income Trust | Annual Report | 4/30/12
Portfolio Summary | 4/30/12
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE DATA BELOW IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Corporate Bonds & Notes 70.6%
Senior Floating Rate Loan Interests 22.0%
Convertible Bonds & Notes 2.2%
Repurchase Agreement 1.5%
Sovereign Debt Obligations 1.0%
Asset-Backed Securities 0.9%
Collateralized Mortgage Obligations 0.6%
Preferred Stock 0.5%
Common Stocks 0.3%
Commercial Mortgage-Backed Securities 0.2%
Convertible Preferred Stocks 0.2%
Rights/Warrants* 0.0%
* Amount is less than 0.1%
Portfolio Quality
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on Standard & Poor's
ratings (S&P))
[THE DATA BELOW IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
AAA 0.4%
AA 0.1%
A 0.3%
BBB 2.2%
BB 21.5%
B 45.0%
CCC 10.1%
CC 3.0%
C 0.3%
Not Rated 17.1%
Bond ratings are ordered highest to lowest in portfolio. Based on S&P's
measures, AAA (highest possible rating) through BBB are considered investment
grade; BB or lower ratings are considered non-investment grade. Cash
equivalents and some bonds may not be rated.
The portfolio is actively managed, and current holdings may be different.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Alliance One International, Inc., 10.0%, 7/15/16 0.93%
--------------------------------------------------------------------------------
2. Lodestone Re, Ltd., 8.336%, 5/17/13 (144A) 0.90
--------------------------------------------------------------------------------
3. Successor X, Ltd., 14.992%, 1/7/14 (144A) 0.90
--------------------------------------------------------------------------------
4. Successor X, Ltd., 16.408%, 1/7/14 (144A) 0.88
--------------------------------------------------------------------------------
5. Montana Re, Ltd., 16.875%, 1/8/14 (144A) 0.88
--------------------------------------------------------------------------------
6. Queen Street IV Capital, Ltd., 7.966%, 4/9/15 (144A) 0.87
--------------------------------------------------------------------------------
7. U.S.I. Holdings Corp., Tranche B Term Loan, 2.74%, 5/5/14 0.85
--------------------------------------------------------------------------------
8. Lodestone Re, Ltd., 7.336%, 1/8/14 (144A) 0.79
--------------------------------------------------------------------------------
9. Townsquare Radio LLC, 9.0%, 4/1/19 (144A) 0.78
--------------------------------------------------------------------------------
10. AMC Entertainment, Inc., 9.75%, 12/1/20 0.76
--------------------------------------------------------------------------------
* 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 Diversified High Income Trust | Annual Report | 4/30/12 9
Prices and Distributions | 4/30/12
Market Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
4/30/12 4/30/11
--------------------------------------------------------------------------------
$20.13 $21.95
--------------------------------------------------------------------------------
Premium 3.2% 4.5%
--------------------------------------------------------------------------------
Net Asset Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
4/30/12 4/30/11
--------------------------------------------------------------------------------
$19.51 $21.01
--------------------------------------------------------------------------------
Distributions per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
5/1/11-4/30/12 $1.96 $ -- $ --
--------------------------------------------------------------------------------
10 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
Performance Update | 4/30/12
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in market value, plus
reinvested dividends and distributions, of a $10,000 investment made in common
shares of Pioneer Diversified High Income Trust, compared to that of the
combined (50%/50%) Bank of America Merrill Lynch Global High Yield and Emerging
Markets Plus Index (BofA ML Global HY and EMP Index) and the Credit Suisse (CS)
Leveraged Loan Index.
Average Annual Total Returns
(As of April 30, 2012)
--------------------------------------------------------------------------------
Net Asset Market
Period Value (NAV) Value
--------------------------------------------------------------------------------
Life-of-Trust
(5/30/07) 7.76% 7.44%
1 Year 2.62 1.35
--------------------------------------------------------------------------------
[THE DATA BELOW IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Market Value of $10,000 Investment
Pioneer Diversified 50% BofA ML Global HY and EMP Index
High Income Trust 50% CS Leveraged Loan Index
5/07 $10,000 $10,000
4/08 8,933 9,879
4/09 6,868 8,422
4/10 11,899 11,487
4/11 14,034 12,708
4/12 14,224 13,210
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 bank borrowing, 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.
The BofA ML Global High Yield and Emerging Markets Plus Index tracks the
performance of the below- and border-line investment-grade global debt markets
denominated in the major developed market currencies. The Index includes
sovereign issuers rated BBB1 and lower along with corporate issues rated BB1
and lower. There are no restrictions on issuer country of domicile. The CS
Leveraged Loan Index is designed to mirror the investible universe of the U.S.
dollar-denominated leveraged loan market. The CS Leveraged Loan Index consists
of tradable term loans with at least one year to maturity and rated BBB or
lower.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Trust returns, do not reflect any fees, expenses or sales charges. The
indices do not employ leverage. It is not possible to invest directly in an
index.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 11
Schedule of Investments | 4/30/12 (Consolidated)
----------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 1.3% of Net Assets
246,741(a) AA+/Baa3 ACE Securities Corp., 1.139%, 12/25/34 $ 185,589
1,003,138(a) B-/Caa1 Aircraft Finance Trust, 0.72%, 5/15/24 (144A) 471,475
10,566(a) B-/Ba3 Aircraft Finance Trust, 0.74%, 5/15/24 (144A) 9,826
450,000(a) BB/A2 Bear Stearns Asset-Backed Securities Trust,
1.289%, 10/25/34 310,750
100,000 NR/NR CarNow Auto Receivables Trust, 6.9%, 11/15/16 99,999
699,000(a) CC/Caa2 Carrington Mortgage Loan Trust, 0.439%, 2/25/37 408,810
109,515 BB/Ba2 Continental Airlines, Inc., Series 981B,
6.748%, 9/15/18 108,420
456,415(a) CC/NR Countrywide Asset-Backed Certificates, 0.689%,
3/25/47 (144A) 184,252
134,131(a) B-/B3 GSAMP Trust, 0.369%, 1/25/37 119,435
493,774(a) C/Ca Lehman XS Trust, 0.589%, 12/25/35 143,935
----------------------------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $2,370,515) $ 2,042,491
----------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.8%
of Net Assets
BANKS -- 0.7%
Thrifts & Mortgage Finance -- 0.7%
59,704(a) NR/NR Banc of America Funding Corp., 0.32%, 5/20/47 $ 59,303
446,079(a) C/C Downey Savings and Loan Association Mortgage Loan
Trust, 0.61%, 10/19/45 108,698
184,085(a) BB-/NR GSR Mortgage Loan Trust, Series 2004-3F,
5.742%, 2/25/34 156,790
941,164(a) AAA/Baa3 Impac CMB Trust, 0.999%, 1/25/35 709,980
107,706(a) CC/NR WaMu Mortgage Pass-Through Certificates,
5.176%, 12/25/36 86,923
------------
Total Banks $ 1,121,694
----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Other Diversified Financial Services -- 0.1%
100,000 NR/NR Vericrest Opportunity Loan Transferee, 8.112%,
3/25/49 (144A) $ 100,125
------------
Total Diversified Financials $ 100,125
----------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $1,482,127) $ 1,221,819
----------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED SECURITIES -- 0.3%
of Net Assets
BANKS -- 0.2%
Investment Banking & Brokerage -- 0.1%
250,000(a) BB+/A3 Bear Stearns Commercial Mortgage Securities,
5.941%, 9/11/38 $ 221,338
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
12 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
------------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.1%
175,519(a) NR/Ba1 JP Morgan Chase Commercial Mortgage Securities
Corp., 0.6%, 11/15/18 (144A) $ 145,681
------------
Total Banks $ 367,019
------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Other Diversified Financial Services -- 0.1%
200,000(a) BBB+/Baa2 Morgan Stanley Capital I, 0.941%, 12/15/20 (144A) $ 182,390
------------
Total Diversified Financials $ 182,390
------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL MORTGAGE-BACKED
SECURITIES
(Cost $543,521) $ 549,409
------------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES -- 97.6% of Net Assets
ENERGY -- 8.4%
Coal & Consumable Fuels -- 1.5%
100,000 B+/B1 Arch Coal, Inc., 7.0%, 6/15/19 (144A) $ 89,500
850,000 BB/Ba3 Bumi Capital Pte, Ltd., 12.0%, 11/10/16 (144A) 935,000
1,000,000 B/Caa1 Foresight Energy Corp., 9.625%, 8/15/17 (144A) 1,035,000
400,000 B/B2 James River Coal Co., 7.875%, 4/1/19 260,000
------------
$ 2,319,500
------------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 1.9%
NOK 1,000,000(a) NR/NR Aker Drilling ASA, 9.67%, 2/24/16 $ 185,917
NOK 1,000,000 NR/NR Aker Drilling ASA, 11.0%, 2/24/16 188,536
500,000 NR/NR Deep Drilling 1 Pte, Ltd., 12.0%, 12/21/15 477,500
1,000,000 CCC+/Caa2 Ocean Rig UDW, Inc., 9.5%, 4/27/16 1,000,000
670,000 B-/B3 Offshore Group Investments, Ltd., 11.5%, 8/1/15 732,813
500,000 B+/NR Pioneer Drilling Co., 9.875%, 3/15/18 527,500
------------
$ 3,112,266
------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 1.7%
1,358,000 B+/B1 American Petroleum Tankers LLC, 10.25%, 5/1/15 $ 1,429,295
730,000 B-/B3 Expro Finance Luxembourg SCA, 8.5%,
12/15/16 (144A) 708,100
330,000 B/Caa1 Forbes Energy Services, Ltd., 9.0%, 6/15/19 320,100
65,067(b) NR/NR Nexus 1 Pte., Ltd., 10.5%, 5/31/12 (144A) 65
NOK 2,560,000(a)(b) NR/NR Sevan Marine ASA, 12.32%, 10/24/12 (144A) 268,140
------------
$ 2,725,700
------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 2.7%
505,000 B+/B2 Berry Petroleum Co., 10.25%, 6/1/14 $ 575,700
100,000 B/B2 Comstock Resources, Inc., 7.75%, 4/1/19 93,000
444,000 B/B2 Linn Energy LLC, 11.75%, 5/15/17 503,940
800,000 B+/NR MIE Holdings Corp., 9.75%, 5/12/16 (144A) 796,960
NOK 2,500,000 NR/NR Norwegian Energy Co., AS, 12.9%, 11/20/14 434,244
280,000 CCC+/Caa1 Petrobakken Energy, Ltd., 8.625%, 2/1/20 (144A) 291,900
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 13
Schedule of Investments | 4/30/12 (Consolidated) (continued)
-----------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- (continued)
240,000 B-/B3 Quicksilver Resources, Inc., 7.125%, 4/1/16 $ 219,600
700,000 B-/B3 Resolute Energy Corp., 8.5%, 5/1/20 (144A) 703,500
472,000 BB-/Caa1 Rosetta Resources, Inc., 9.5%, 4/15/18 517,430
200,000 B/B1 Samson Investment Co., 9.75%, 2/15/20 (144A) 208,750
-----------
$ 4,345,024
-----------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.6%
600,000 NR/B2 Everest Acquisition LLC/Everest Acquisition Finance,
Inc., 9.375%, 5/1/20 (144A) $ 639,000
450,000(a) BB/Ba1 Southern Union Co., 3.483%, 11/1/66 379,687
-----------
$ 1,018,687
-----------
Total Energy $13,521,177
-----------------------------------------------------------------------------------------------------------
MATERIALS -- 12.4%
Aluminum -- 0.0%(c)
670(a)(d) B-/B3 Noranda Aluminum Acquisition Corp.,
4.659%, 5/15/15 $ 631
-----------------------------------------------------------------------------------------------------------
Commodity Chemicals -- 0.2%
300,000 NR/NR Montell Finance Co., BV, 8.1%, 3/15/27 (144A) $ 355,500
-----------------------------------------------------------------------------------------------------------
Construction Materials -- 0.5%
865,000 C/Caa3 AGY Holding Corp., 11.0%, 11/15/14 $ 311,400
389,000 B-/NR Cemex Espana Luxembourg, 9.875%,
4/30/19 (144A) 363,715
100,000 B-/NR Cemex SAB de CV, 9.0%, 1/11/18 (144A) 93,500
-----------
$ 768,615
-----------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 1.2%
EURO 1,275,000 CCC+/Caa1 Ineos Group Holdings, Ltd., 7.875%, 2/15/16 (144A) $ 1,552,524
EURO 100,000 CCC+/Caa1 Ineos Group Holdings, Ltd., 7.875%, 2/15/16 (144A) 121,766
275,000 CC/Caa1 Momentive Performance Materials, Inc.,
9.0%, 1/15/21 237,875
-----------
$ 1,912,165
-----------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.5%
300,000 CCC+/Caa1 Midwest Vanadium Pty, Ltd., 11.5%, 2/15/18 (144A) $ 201,000
650,000 CCC+/Caa1 Mirabela Nickel, Ltd., 8.75%, 4/15/18 (144A) 477,750
400,000 NR/B1 Mongolian Mining Corp., 8.875%, 3/29/17 (144A) 399,945
428,000 BBB/Baa2 Teck Resources, Ltd., 10.25%, 5/15/16 490,648
750,000 BB/Ba3 Vedanta Resources Plc, 9.5%, 7/18/18 (144A) 770,625
-----------
$ 2,339,968
-----------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 1.6%
503,330(d) B-/Caa1 Ardagh Finance SA, 11.125%, 6/1/18 (144A) $ 504,588
EURO 250,000(d) B-/B3 Ardagh Glass Finance Plc, 8.75%, 2/1/20 (144A) 327,579
EURO 255,000(d) BB-/Ba3 Ardagh Glass Finance Plc, 9.25%, 7/1/16 (144A) 368,302
The accompanying notes are an integral part of these financial statements.
14 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
---------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- (continued)
175,000 CCC+/B3 BWAY Holdings Co., 10.0%, 6/15/18 $ 192,500
1,113,298(d) CCC+/Caa1 BWAY Parent Co., Inc., 10.125%, 11/1/15 1,135,564
------------
$ 2,528,533
---------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.7%
750,103(d)(e) NR/NR Corp Durango SAB de CV, 7.0%, 8/27/16 $ 577,579
500,000 B/Caa1 Pretium Packaging LLC, 11.5%, 4/1/16 520,000
------------
$ 1,097,579
---------------------------------------------------------------------------------------------------------
Paper Products -- 1.6%
459,000 BB-/B1 AbitibiBowater, Inc., 10.25%, 10/15/18 $ 532,440
500,000 B+/B1 Appleton Papers, Inc., 10.5%, 6/15/15 (144A) 522,500
200,000 CCC+/B3 Appleton Papers, Inc., 11.25%, 12/15/15 188,500
260,000 BB/Ba3 Clearwater Paper Corp., 10.625%, 6/15/16 292,500
580,000 CCC+/Caa1 Exopack Holdings Corp., 10.0%, 6/1/18 603,200
186,000 B+/Ba3 Grupo Papelero Scribe SA, 8.875%, 4/7/20 (144A) 157,170
344,000 B+/B3 Mercer International, Inc., 9.5%, 12/1/17 356,040
------------
$ 2,652,350
---------------------------------------------------------------------------------------------------------
Precious Metals & Minerals -- 0.3%
500,000 BB-/Ba3 ALROSA Finance SA, 8.875%, 11/17/14 (144A) $ 552,500
---------------------------------------------------------------------------------------------------------
Steel -- 4.8%
1,245,000 CC/Caa2 Algoma Acquisition Corp., 9.875%, 6/15/15 (144A) $ 1,145,400
750,000 B+/B3 AM Castle & Co., 12.75%, 12/15/16 (144A) 813,750
250,000 BB/B2 APERAM, 7.375%, 4/1/16 (144A) 243,750
350,000 B/B3 Atkore International, Inc., 9.875%, 1/1/18 357,000
450,000 B/B3 Essar Steel Algoma, Inc., 9.375%, 3/15/15 (144A) 464,625
250,000 B+/B1 Evraz Group SA, 8.875%, 4/24/13 (144A) 262,563
250,000 B+/B1 Evraz Group SA, 9.5%, 4/24/18 (144A) 272,275
900,000 B+/B3 Ferrexpo Finance PLC, 7.875%, 4/7/16 (144A) 838,125
900,000 NR/B2 Metinvest BV, 8.75%, 2/14/18 (144A) 832,500
600,000 NR/B2 Metinvest BV, 10.25%, 5/20/15 (144A) 595,500
850,000 B/B2 Optima Specialty Steel, Inc., 12.5%,
12/15/16 (144A) 884,000
920,000 CCC+/Caa1 Ryerson, Inc., 12.0%, 11/1/15 959,100
EURO 50,000 CC/Caa2 Zlomrex International Finance SA, 8.5%,
2/1/14 (144A) 54,927
------------
$ 7,723,515
------------
Total Materials $ 19,931,356
---------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 6.9%
Aerospace & Defense -- 1.1%
600,000 B/B3 ADS Tactical, Inc., 11.0%, 4/1/18 (144A) $ 630,000
1,170,000 B-/B2 DynCorp International, Inc., 10.375%, 7/1/17 1,003,275
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 15
Schedule of Investments | 4/30/12 (Consolidated) (continued)
---------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------
Aerospace & Defense -- (continued)
90,000 BB-/Ba3 GeoEye, Inc., 9.625%, 10/1/15 $ 98,550
------------
$ 1,731,825
---------------------------------------------------------------------------------------------------------
Building Products -- 0.4%
300,000 BB-/B2 USG Corp., 7.875%, 3/30/20 (144A) $ 308,250
365,000 BB-/B2 USG Corp., 9.75%, 8/1/14 (144A) 406,062
------------
$ 714,312
---------------------------------------------------------------------------------------------------------
Construction & Engineering -- 1.0%
900,000 B+/B1 Empresas ICA S.A.B. de C.V., 8.9%, 2/4/21 (144A) $ 891,000
850,000 CC/Caa3 New Enterprise Stone & Lime Co., 11.0%, 9/1/18 697,000
------------
$ 1,588,000
---------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 1.1%
720,000 B+/Caa1 American Railcar Industries, Inc., 7.5%, 3/1/14 $ 729,000
750,000 BB/Ba3 Lonking Holdings, Ltd., 8.5%, 6/3/16 (144A) 705,000
300,000 NR/NR OSX 3 Leasing BV, 9.25%, 3/20/15 (144A) 310,860
------------
$ 1,744,860
---------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.5%
750,000 B/B2 WireCo WorldGroup, Inc., 9.5%, 5/15/17 $ 774,375
---------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.3%
265,000 B/B2 JB Poindexter & Co., Inc., 9.0%, 4/1/22 (144A) $ 269,638
90,000 NR/NR Little Traverse Bay Bands of Odawa Indians, 9.0%,
8/31/20 (144A) 81,900
EURO 90,000 BB-/Ba3 Mark IV USA/EURO LUX, 8.875%, 12/15/17 (144A) 122,693
------------
$ 474,231
---------------------------------------------------------------------------------------------------------
Industrial Machinery -- 1.1%
500,000(b) NR/NR Indalex Holding Corp., 11.5%, 2/1/14 $ 1,875
335,000 B/Caa1 Liberty Tire Recycling, 11.0%, 10/1/16 (144A) 315,738
875,000 CCC+/Caa2 Mueller Water Products, Inc., 7.375%, 6/1/17 877,187
665,000 B+/NR WPE International Cooperatief UA, 10.375%,
9/30/20 (144A) 585,200
------------
$ 1,780,000
---------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 1.4%
150,000 B/B2 Avis Budget Car Rental LLC/Avis Budget Finance, Inc.,
9.625%, 3/15/18 $ 163,500
1,090,000 B-/B3 Intcomex, Inc., 13.25%, 12/15/14 1,106,350
1,000,000 B/B1 Wesco Distribution, Inc., 7.5%, 10/15/17 1,023,750
------------
$ 2,293,600
------------
Total Capital Goods $ 11,101,203
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
-------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 0.1%
Environmental & Facilities Services -- 0.1%
700,000(b) NR/NR Aleris International, Inc., 10.0%, 12/15/16 $ 70
210,000 BB-/B3 Casella Waste Systems, Inc., 11.0%, 7/15/14 225,750
EURO 107,128 CCC+/Caa2 New Reclamation Group Pty., Ltd., 8.125%,
2/1/13 (144A) 102,088
------------
Total Commercial & Professional Services $ 327,908
-------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 3.3%
Air Freight & Logistics -- 0.8%
1,329,000 B-/Caa1 Ceva Group Plc, 11.5%, 4/1/18 (144A) $ 1,309,065
-------------------------------------------------------------------------------------------------------
Airlines -- 1.2%
250,000 BB+/Ba3 Delta Air Lines, Inc., 6.375%, 7/2/17 $ 250,000
269,000 BB-/Ba2 Delta Air Lines, Inc., 9.5%, 9/15/14 (144A) 285,812
1,000,000 B/NR Gol Finance Co., 9.25%, 7/20/20 (144A) 895,000
500,000 B/NR Tam Capital 3, Inc., 8.375%, 6/3/21 (144A) 520,000
------------
$ 1,950,812
-------------------------------------------------------------------------------------------------------
Airport Services -- 0.4%
570,000 B/B2 Aeropuertos Argentina 2000 SA, 10.75%,
12/1/20 (144A) $ 567,150
-------------------------------------------------------------------------------------------------------
Marine -- 0.3%
525,000 B+/B3 Navios South American Logistics, Inc.,
9.25%, 4/15/19 $ 480,375
-------------------------------------------------------------------------------------------------------
Railroads -- 0.1%
278,090(d) CC/Caa3 Florida East Coast Holdings, 10.5%, 8/1/17 $ 221,429
-------------------------------------------------------------------------------------------------------
Trucking -- 0.5%
425,000 B+/Caa1 Swift Services Holdings, Inc., 10.0%, 11/15/18 $ 464,313
300,000 B/B3 Syncreon Global Ireland, Ltd., 9.5%, 5/1/18 (144A) 297,750
------------
$ 762,063
------------
Total Transportation $ 5,290,894
-------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 1.5%
Auto Parts & Equipment -- 1.5%
305,000 B-/B3 Allison Transmission, Inc., 11.0%, 11/1/15 (144A) $ 321,775
350,000 B/Caa1 International Automotive Components Group S.L.,
9.125%, 6/1/18 (144A) 322,000
160,000 CC/Caa1 Stanadyne Corp., 10.0%, 8/15/14 134,000
500,000 CCC-/Caa3 Stanadyne Corp., 12.0%, 2/15/15 385,000
1,174,000 B+/B1 Tower Automotive Holdings USA LLC, 10.625%,
9/1/17 (144A) 1,260,583
------------
Total Automobiles & Components $ 2,423,358
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 17
Schedule of Investments | 4/30/12 (Consolidated) (continued)
---------------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 3.3%
Homebuilding -- 1.1%
530,000 CC/Caa3 Beazer Homes USA, Inc., 9.125%, 6/15/18 $ 450,500
200,000 BB-/Ba3 Corporacion GEO S.A.B. de C.V., 8.875%,
3/27/22 (144A) 203,000
630,000 NR/Ba3 Desarrolladora Homex SA de CV, 9.5%,
12/11/19 (144A) 650,475
500,000 NR/Ba3 Urbi Desarrollos Urbanos Co., 9.75%, 2/3/22 (144A) 520,000
------------
$ 1,823,975
---------------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 1.5%
500,000 B-/Caa1 Reynolds Group Holdings, Ltd., 9.0%,
4/15/19 (144A) $ 502,500
475,000 B-/Caa1 Reynolds Group Holdings, Ltd., 9.875%,
8/15/19 (144A) 495,187
1,000,000 CCC+/B3 Yankee Acquisition Corp., 9.75%, 2/15/17 1,045,000
350,000(d) CCC+/Caa1 YCC Holdings LLC, 10.25%, 2/15/16 357,875
------------
$ 2,400,562
---------------------------------------------------------------------------------------------------------------
Leisure Products -- 0.7%
EURO 275,000 CC/Caa2 Heckler & Koch GmbH, 9.5%, 5/15/18 (144A) $ 236,585
1,000,000 B/B2 Icon Health & Fitness, 11.875%, 10/15/16 (144A) 862,500
------------
$ 1,099,085
------------
Total Consumer Durables & Apparel $ 5,323,622
---------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 3.9%
Casinos & Gaming -- 2.0%
500,000(b) NR/NR Buffalo Thunder Development Authority, 9.375%,
12/15/14 (144A) $ 186,250
EURO 1,155,000 B/B2 Codere Finance Luxembourg SA, 8.25%,
6/15/15 (144A) 1,398,760
395,000 NR/NR FireKeepers Development Authority, 13.875%,
5/1/15 (144A) 436,475
1,615,000(b)(f) NR/NR Mashantucket Western Pequot Tribe, 8.5%,
11/15/15 (144A) 147,369
EURO 500,000 B-/B3 Peermont Global, Ltd., 7.75%, 4/30/14 (144A) 615,451
450,000 BB-/B1 Scientific Games International, Inc., 9.25%, 6/15/19 498,375
------------
$ 3,282,680
---------------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.3%
400,000 B-/B3 Seven Seas Cruises S de RL LLC, 9.125%,
5/15/19 (144A) $ 409,000
---------------------------------------------------------------------------------------------------------------
Restaurants -- 0.9%
1,235,000(e) CCC+/Caa1 Burger King Capital Holdings LLC, 0.0%,
4/15/19 (144A) $ 947,862
400,000 B-/B3 Burger King Corp., 9.875%, 10/15/18 454,500
------------
$ 1,402,362
---------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
--------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.7%
685,000 BB-/Ba3 Service Corp. International, 7.0%, 5/15/19 $ 732,094
500,000 B-/B3 StoneMor Operating LLC, 10.25%, 12/1/17 473,125
------------
$ 1,205,219
------------
Total Consumer Services $ 6,299,261
--------------------------------------------------------------------------------------------------------
MEDIA -- 6.2%
Advertising -- 1.9%
1,100,000 NR/B3 Good Sam Enterprises LLC, 11.5%, 12/1/16 $ 1,148,125
716,000 B+/B2 MDC Partners, Inc., 11.0%, 11/1/16 778,650
750,000 B/B1 Sitel LLC/Sitel Finance Corp., 11.0%, 8/1/17 (144A) 735,000
600,000 B-/Caa2 Sitel LLC/Sitel Finance Corp., 11.5%, 4/1/18 420,000
------------
$ 3,081,775
--------------------------------------------------------------------------------------------------------
Broadcasting -- 2.7%
182,676 B/B2 CCH II LLC/CCH II Capital Corp., 13.5%, 11/30/16 $ 206,424
1,139,556(d) CCC+/Caa3 Intelsat Bermuda, Ltd., 11.5%, 2/4/17 1,187,987
125,000 CCC+/Caa3 Intelsat Luxembourg SA, 11.5%, 2/4/17 (144A) 129,062
EURO 200,000 B/B1 Nara Cable Funding, 8.875%, 12/1/18 (144A) 238,239
200,000 B/B1 Nara Cable Funding, 8.875%, 12/1/18 (144A) 183,000
430,000 B-/B3 Telesat Canada, 12.5%, 11/1/17 481,600
1,655,000 B/B3 Townsquare Radio LLC, 9.0%, 4/1/19 (144A) 1,704,650
EURO 200,000 B+/B1 TVN Finance Corp II AB, 10.75%, 11/15/17 (144A) 276,622
------------
$ 4,407,584
--------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 1.1%
1,710,000 CCC+/Caa1 AMC Entertainment, Inc., 9.75%, 12/1/20 $ 1,667,250
200,000 B-/B3 Production Resource Group, Inc., 8.875%,
5/1/19 (144A) 164,500
------------
$ 1,831,750
--------------------------------------------------------------------------------------------------------
Publishing -- 0.5%
600,000 CC/Caa2 Cengage Learning Acquisitions, Inc., 10.5%,
1/15/15 (144A) $ 478,500
245,000 B-/Caa1 Interactive Data Corp., 10.25%, 8/1/18 276,850
------------
$ 755,350
------------
Total Media $ 10,076,459
--------------------------------------------------------------------------------------------------------
RETAILING -- 1.3%
Distributors -- 0.9%
1,438,000 B+/B2 Minerva Overseas II, Ltd., 10.875%,
11/15/19 (144A) $ 1,481,140
--------------------------------------------------------------------------------------------------------
Internet Retail -- 0.4%
640,000 B/B3 Ticketmaster Entertainment, Inc., 10.75%, 8/1/16 $ 686,400
------------
Total Retailing $ 2,167,540
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 19
Schedule of Investments | 4/30/12 (Consolidated) (continued)
-------------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.5%
Agricultural Products -- 0.7%
1,127,000 B+/B3 Southern States Cooperative, Inc., 11.25%,
5/15/15 (144A) $ 1,208,708
-------------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 2.5%
EURO 200,000 NR/B2 Agrokor DD, 9.875%, 5/1/19 (144A) $ 268,681
650,000 NR/B1 Bertin, Ltd., 10.25%, 10/5/16 (144A) 702,000
491,000 NR/B2 Corporacion Pesquera Inca SAC, 9.0%,
2/10/17 (144A) 525,370
750,000 B/B3 FAGE Dairy Industry SA/FAGE USA Dairy Industry, Inc.,
9.875%, 2/1/20 (144A) 701,250
224,421(b)(d) NR/NR Independencia International, Ltd., 12.0%,
12/30/16 (144A) 224
475,000 B+/B1 Marfrig Overseas, Ltd., 9.5%, 5/4/20 (144A) 414,437
700,000 B+/B1 Marfrig Overseas, Ltd., 9.625%, 11/16/16 (144A) 665,000
200,000 B+/B2 Minerva Luxembourg SA, 12.25%, 2/10/22 (144A) 213,000
300,000 B-/Caa1 Pilgrim's Pride Corp., 7.875%, 12/15/18 304,500
275,000(e) NR/B1 SA Fabrica de Produtos Alimenticios Vigor, 9.25%,
2/23/17 (144A) 267,025
------------
$ 4,061,487
-------------------------------------------------------------------------------------------------------------
Tobacco -- 1.3%
2,015,000 B/B2 Alliance One International, Inc., 10.0%, 7/15/16 $ 2,035,150
------------
Total Food, Beverage & Tobacco $ 7,305,345
-------------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.2%
Personal Products -- 0.2%
300,000 B/B2 Revlon Consumer Products Corp, 9.75%, 11/15/15 $ 323,625
------------
Total Household & Personal Products $ 323,625
-------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.4%
Health Care Equipment & Services -- 1.0%
750,000 CCC+/Caa2 Accellent, Inc., 10.0%, 11/1/17 $ 613,125
875,000 B+/B2 Physio-Control International, Inc., 9.875%,
1/15/19 (144A) 929,687
------------
$ 1,542,812
-------------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.5%
600,000 B-/B3 Kindred Healthcare, Inc., 8.25%, 6/1/19 $ 529,500
200,000 CCC+/Caa1 USPI Finance Corp., 9.0%, 4/1/20 (144A) 209,500
26,000 CCC+/Caa1 Vanguard Health Systems, Inc., 2/1/16 17,225
------------
$ 756,225
-------------------------------------------------------------------------------------------------------------
Health Care Services -- 2.3%
378,000 B-/Caa1 BioScrip, Inc., 10.25%, 10/1/15 $ 409,185
476,000 CC/Caa2 Gentiva Health Services, Inc., 11.5%, 9/1/18 443,870
750,000 CCC+/Caa1 Rural/Metro Corp., 10.125%, 7/15/19 (144A) 712,500
The accompanying notes are an integral part of these financial statements.
20 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
--------------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Health Care Services -- (continued)
250,000 CCC+/Caa1 Rural/Metro Corp., 10.125%, 7/15/19 (144A) $ 237,500
796,459(d) CCC+/B3 Surgical Care Affiliates, Inc., 8.875%,
7/15/15 (144A) 808,406
1,170,000 CCC+/Caa1 Surgical Care Affiliates, Inc., 10.0%, 7/15/17 (144A) 1,181,700
------------
$ 3,793,161
--------------------------------------------------------------------------------------------------------------
Health Care Supplies -- 1.4%
750,000 B/Caa1 Bausch & Lomb, Inc., 9.875%, 11/1/15 $ 789,375
815,000(d) B-/B3 Biomet, Inc., 10.375%, 10/15/17 881,219
500,000 B-/Caa1 Immucor, Inc., 11.125%, 8/15/19 560,625
------------
$ 2,231,219
--------------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.2%
275,000 CCC+/Caa1 Emdeon, Inc., 11.0%, 12/31/19 (144A) $ 310,750
------------
Total Health Care Equipment & Services $ 8,634,167
--------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY & LIFE SCIENCES -- 1.2%
Biotechnology -- 0.7%
300,000 B/Caa1 ConvaTec Healthcare E SA, 10.5%, 12/15/18 (144A) $ 306,750
1,043,000 B+/Caa2 Lantheus Medical Imaging, Inc., 9.75%, 5/15/17 912,625
------------
$ 1,219,375
--------------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.1%
130,297(d) B/Caa1 Catalent Pharma Solutions, Inc., 9.5%, 4/15/15 $ 134,206
--------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.4%
1,215,000 NR/NR KV Pharmaceutical Co., 12.0%, 3/15/15 $ 662,175
------------
Total Pharmaceuticals & Biotechnology
& Life Sciences $ 2,015,756
--------------------------------------------------------------------------------------------------------------
BANKS -- 1.5%
Diversified Banks -- 1.1%
400,000(a)(g) BB+/Ba3 ABN Amro North American Holding Preferred Capital
Repackage Trust I, 6.523% (144A) $ 354,000
500,000(a) NR/B2 Banco Macro SA, 9.75%, 12/18/36 365,000
700,000(a) NR/Ba2 Banco Macro SA, 10.75%, 6/7/12 427,000
525,000 B/B2 BCO de Galicia Y Buenos Aires SA de CV, 8.75%,
5/4/18 (144A) 456,750
BRL 350,000 AAA/NR International Finance Corp., 9.25%, 3/15/13 188,885
------------
$ 1,791,635
--------------------------------------------------------------------------------------------------------------
Regional Banks -- 0.4%
600,000(a)(g) BBB/Baa3 PNC Financial Services Group, Inc., 8.25% $ 622,222
------------
Total Banks $ 2,413,857
--------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.8%
Asset Management & Custody Banks -- 0.4%
590,000(a) BBB-/Baa3 Janus Capital Group, Inc., 6.7%, 6/15/17 $ 634,445
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 21
Schedule of Investments | 4/30/12 (Consolidated) (continued)
-------------------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.3%
610,000 NR/NR Tarjeta Naranja SA, 9.0%, 1/28/17 (144A) $ 555,381
-------------------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.2%
450,000(a)(g) BB+/Baa2 Goldman Sachs Capital II, 5.793% $ 309,375
-------------------------------------------------------------------------------------------------------------------
Multi-Sector Holdings -- 0.4%
600,000 B/B2 Constellation Enterprises, 10.625%, 2/1/16 (144A) $ 603,000
-------------------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.2%
300,000 BB/NR Magnesita Finance, Ltd., 8.625%, 4/5/17 (144A) $ 297,750
-------------------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.3%
425,000 B+/B2 National Money Mart Co., 10.375%, 12/15/16 $ 477,062
------------
Total Diversified Financials $ 2,877,013
-------------------------------------------------------------------------------------------------------------------
INSURANCE -- 28.8%
Insurance Brokers -- 2.3%
250,000 CC/Caa2 Alliant Holdings I, Inc., 11.0%, 5/1/15 (144A) $ 260,938
1,175,000 CCC+/Caa2 HUB International Holdings, Inc., 10.25%,
6/15/15 (144A) 1,201,437
GBP 475,000 NR/Caa1 Towergate Finance PLC, 10.5%, 2/15/19 (144A) 663,343
827,000(a) CC/Caa1 U.S.I. Holdings Corp., 4.378%, 11/15/14 (144A) 774,279
804,000 CC/Caa2 U.S.I. Holdings Corp., 9.75%, 5/15/15 (144A) 813,045
------------
$ 3,713,042
-------------------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 1.1%
1,000,000(a) BB/Baa3 Liberty Mutual Group, Inc., 7.0%, 3/7/67 (144A) $ 900,000
670,000(a) BB/Baa3 Liberty Mutual Group, Inc., 10.75%, 6/15/88 (144A) 911,200
------------
$ 1,811,200
-------------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.1%
80,000(a)(g) BB+/Ba2 White Mountains Insurance Group, Ltd.,
7.506% (144A) $ 76,369
-------------------------------------------------------------------------------------------------------------------
Reinsurance -- 25.3%
1,000,000(a) BB+/NR Akibare, Ltd., 3.443%, 5/22/12 (144A) $ 998,000
500,000(a) BB+/NR Akibare, Ltd., 3.643%, 5/22/12 (144A) 499,100
EURO 500,000(a) B/NR ATLAS VI Capital, Ltd., 10.283%, 4/6/13 (144A) 667,731
EURO 500,000(a) B-/NR ATLAS VI Capital, Ltd., 11.043%, 4/7/14 (144A) 671,304
1,500,000(a) BB+/NR Caelus Re II, Ltd., 6.586%, 5/24/13 (144A) 1,483,800
500,000 BB+/Baa3 Capital One Capital V, 10.25%, 8/15/39 521,250
400,000(a) NR/Ba3 Combine Re, Ltd., 10.086%, 1/7/15 (144A) 398,760
500,000(a) NR/NR Combine Re, Ltd., 17.847%, 1/7/15 (144A) 498,400
500,000(a) BB-/NR Compass Re, Ltd., 10.347%,
1/8/15 - Series CL2 (144A) 492,450
500,000(a) B+/NR Compass Re, Ltd., 11.347%,
1/8/15 - Series CL3 (144A) 486,750
1,000,000(a) BB+/NR Foundation Re III, Ltd., 5.086%, 2/25/15 972,700
1,000,000(a) BB/NR Foundation Re III, Ltd., 5.836%, 2/3/14 (144A) 976,400
The accompanying notes are an integral part of these financial statements.
22 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
--------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
750,000(a) NR/B1 GlobeCat, Ltd., 6.468%, 1/2/13 (144A) $ 743,625
350,000(a) NR/B3 GlobeCat, Ltd., 9.718%, 1/2/13 (144A) 331,030
500,000(a) BB-/NR Ibis Re, Ltd., 6.286%, 5/3/13 (144A) 493,000
1,000,000(a) B/NR Ibis Re, Ltd., 9.336%, 5/3/13 (144A) 985,200
1,300,000(a) B-/NR Ibis Re II, Ltd., 13.586%, 2/5/17 (144A) 1,276,210
1,000,000(a) BB+/NR Kibou, Ltd., 5.336%, 2/16/15 (144A) 998,200
1,800,000(a) BB/NR Lodestone Re, Ltd., 7.336%, 1/8/14 (144A) 1,735,380
2,000,000(a) BB-/NR Lodestone Re, Ltd., 8.336%, 5/17/13 (144A) 1,979,600
1,000,000(a) BB-/NR LOMA Reinsurance, Ltd., 9.988%, 12/21/14 (144A) 1,001,100
500,000(a) B/NR Montana Re, Ltd., 10.225%, 12/7/12 (144A) 484,100
1,000,000(a) B/NR Montana Re, Ltd., 12.375%, 1/8/14 (144A) 978,500
750,000(a) CCC+/NR Montana Re, Ltd., 13.725%, 12/7/12 (144A) 709,500
2,000,000(a) NR/NR Montana Re, Ltd., 16.875%, 1/8/14 (144A) 1,921,400
250,000(a) BB-/NR MultiCat Mexico, Ltd., Series 2009-I Class A,
10.347%, 10/19/12 (144A) 247,350
250,000(a) B/NR MultiCat Mexico, Ltd., Series 2009-I Class B,
10.347%, 10/19/12 (144A) 247,450
250,000(a) B/NR MultiCat Mexico, Ltd., Series 2009-I Class C,
10.336%, 10/19/12 (144A) 246,550
250,000(a) B/NR MultiCat Mexico, Ltd., Series 2009-I Class D,
11.597%, 10/19/12 (144A) 251,625
1,500,000(a) NR/B2 Mythen, Ltd., 11.166%, 5/7/15 (144A) 1,500,000
1,200,000(a) BB-/NR Queen Street II Capital, Ltd., 7.586%, 4/9/14 (144A) 1,165,200
1,000,000(a) B+/NR Queen Street III Capital, Ltd., 4.836%,
7/28/14 (144A) 990,400
2,000,000(a) BB-/NR Queen Street IV Capital, Ltd., 7.966%, 4/9/15 (144A) 1,903,200
250,000(a) NR/NR Residential Reinsurance 2010, Ltd., 7.336%,
6/6/13 (144A) 245,025
1,250,000(a) NR/NR Residential Reinsurance 2010, Ltd., 10.836%,
6/6/13 (144A) 1,225,500
250,000(a) B-/NR Residential Reinsurance 2010, Ltd., 13.097%,
6/6/13 (144A) 250,775
1,250,000(a) B-/NR Residential Reinsurance 2011, Ltd., 12.086%,
12/6/16 (144A) 1,206,875
500,000(a) B-/NR Successor X, Ltd., 9.847%, 4/4/13 (144A) 495,500
500,000(a) NR/B2 Successor X, Ltd., 11.086%, 1/27/15 (144A) 481,500
1,500,000(a) B-/NR Successor X, Ltd., 11.25%, 11/10/15 (144A) 1,435,650
1,250,000(a) NR/NR Successor X, Ltd., 11.836%, 4/4/13 (144A) 1,237,500
2,000,000(a) B-/NR Successor X, Ltd., 14.992%, 1/7/14 (144A) 1,972,200
2,000,000(a) NR/NR Successor X, Ltd., 16.408%, 1/7/14 (144A) 1,934,400
1,000,000(a) NR/NR Successor X, Ltd., 16.586%, 1/27/15 (144A) 980,500
500,000(a) NR/NR Successor X, Ltd., 16.836%, 4/4/13 (144A) 489,700
------------
$ 40,810,390
------------
Total Insurance $ 46,411,001
--------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 23
Schedule of Investments | 4/30/12 (Consolidated) (continued)
----------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.4%
Real Estate Operating Companies -- 0.3%
33,401(a) B/NR Alto Palermo SA, 11.0%, 6/11/12 (144A) $ 29,393
410,000 B/NR IRSA Inversiones y Representaciones SA, 8.5%,
2/2/17 (144A) 380,890
------------
$ 410,283
----------------------------------------------------------------------------------------------------------
Specialized Real Estate Investment Trusts -- 0.1%
200,000 B+/Ba3 CNL Lifestyle Properties, Inc., 7.25%, 4/15/19 $ 182,500
------------
Total Real Estate $ 592,783
----------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.2%
Application Software -- 0.4%
689,000 B/B3 Allen Systems Group, Inc., 10.5%, 11/15/16 (144A) $ 571,870
----------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.3%
404,000 B-/Caa1 First Data Corp., 8.25%, 1/15/21 (144A) $ 397,940
91,000 B-/Caa1 First Data Corp., 9.875%, 9/24/15 91,683
------------
$ 489,623
----------------------------------------------------------------------------------------------------------
Systems Software -- 0.5%
881,225(d)(f) NR/NR Pegasus Solutions, Inc., 13.0%, 4/15/14 (144A) $ 810,727
------------
Total Software & Services $ 1,872,220
----------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.3%
Computer Storage & Peripherals -- 0.3%
415,000 BBB/Baa3 Seagate Technology International, Inc., 10.0%,
5/1/14 (144A) $ 467,913
------------
Total Technology Hardware & Equipment $ 467,913
----------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.2%
Semiconductor Equipment -- 0.2%
465,000 BB/B3 MEMC Electronic Materials, Inc., 7.75%, 4/1/19 $ 370,838
------------
Total Semiconductors & Semiconductor Equipment $ 370,838
----------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.7%
Alternative Carriers -- 0.8%
750,000 BB-/NR PAETEC Holding Corp., 8.875%, 6/30/17 $ 819,375
350,000 NR/NR PAETEC Holding Corp., 9.875%, 12/1/18 396,375
------------
$ 1,215,750
----------------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- 0.4%
388,000 CCC+/B3 Cincinnati Bell, Inc., 8.75%, 3/15/18 $ 363,750
300,000 BB/Ba2 Frontier Communications Corp., 8.75%, 4/15/22 315,000
------------
$ 678,750
----------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.5%
300,000 NR/Caa1 Digicel Group, Ltd., 10.5%, 4/15/18 (144A) $ 328,860
750,000 B+/B2 NII Capital Corp, 10.0%, 8/15/16 840,000
The accompanying notes are an integral part of these financial statements.
24 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
--------------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- (continued)
1,115,000 BB/Ba3 OJSC Vimpel Communications Via VIP Ireland, Ltd.,
9.125%, 4/30/18 (144A) $ 1,226,500
------------
$ 2,395,360
------------
Total Telecommunication Services $ 4,289,860
--------------------------------------------------------------------------------------------------------------
UTILITIES -- 2.1%
Electric Utilities -- 0.8%
750,000 B-/NR Cia de Transporte de Energia Electrica de Alta Tension
SA, 9.75%, 8/15/21 (144A) $ 532,500
419,000 NR/B3 Empresa Distribuidora Y Comercializadora Note SA,
9.75%, 10/25/22 (144A) 236,735
225,000 BB+/Ba1 PNM Resources, Inc., 9.25%, 5/15/15 259,594
240,000 CC/B2 Texas Competitive Electric Holdings LLC, 11.5%,
10/1/20 (144A) 148,800
510,000 C/Caa3 Texas Competitive Electric Holdings LLC,
15.0%, 4/1/21 145,350
------------
$ 1,322,979
--------------------------------------------------------------------------------------------------------------
Gas Utilities -- 0.6%
1,135,000 B/B2 Transportadora de Gas del Sur SA, 7.875%,
5/14/17 (144A) $ 942,050
--------------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy Traders -- 0.7%
500,000 BB-/Ba3 Intergen NV, 9.0%, 6/30/17 (144A) $ 513,125
500,000 NR/B2 Star Energy Geothermal (Wayang Windu), Ltd., 11.5%,
2/12/15 (144A) 549,400
------------
$ 1,062,525
------------
Total Utilities $ 3,327,554
--------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES
(Cost $160,638,914) $157,364,710
--------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS & NOTES -- 3.0% of Net Assets
MATERIALS -- 0.9%
Diversified Chemicals -- 0.9%
1,900(h) B+/NR Hercules, Inc., 6.5%, 6/30/29 $ 1,555,625
------------
Total Materials $ 1,555,625
--------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.2%
Marine -- 0.2%
539,999(d)(i) NR/NR Horizon Lines, Inc., Series A, 6.0%, 4/15/17 $ 232,199
149,999(d)(i) NR/NR Horizon Lines, Inc., Series B, 6.0%, 4/15/17 64,500
------------
Total Transportation $ 296,699
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 25
Schedule of Investments | 4/30/12 (Consolidated) (continued)
------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
------------------------------------------------------------------------------------------------------
MEDIA -- 0.4%
Movies & Entertainment -- 0.4%
659,000 B-/NR Live Nation, Inc., 2.875%, 7/15/27 $ 632,640
------------
Total Media $ 632,640
------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.0%
Health Care Equipment & Services -- 0.7%
1,040,000(e) BB/NR Hologic, Inc., 2.0%, 12/15/37 $ 1,120,600
------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.3%
405,000 B/NR LifePoint Hospitals, Inc., 3.5%, 5/15/14 $ 420,694
------------------------------------------------------------------------------------------------------
Health Care Services -- 0.0%(c)
15,000 B+/B2 Omnicare, Inc., 3.25%, 12/15/35 $ 14,325
------------
Total Health Care Equipment & Services $ 1,555,619
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Asset Management & Custody Banks -- 0.1%
120,000 BBB/NR Apollo Investment Corp., 5.75%, 1/15/16 $ 117,450
------------
Total Diversified Financials $ 117,450
------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.3%
Semiconductors -- 0.3%
150,000 NR/NR JA Solar Holdings Co., Ltd., 4.5%, 5/15/13 $ 123,563
250,000 NR/NR Renesola, Ltd., 4.125%, 3/15/18 (144A) 137,812
271,000 NR/NR Suntech Power Holdings Co., Ltd., 3.0%, 3/15/13 186,312
------------
Total Semiconductors & Semiconductor Equipment $ 447,687
------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.1%
Wireless Telecommunication Services -- 0.1%
250,000 B-/NR NII Holdings, Inc., 3.125%, 6/15/12 $ 250,000
------------
Total Telecommunication Services $ 250,000
------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS & NOTES
(Cost $4,394,132) $ 4,855,720
------------------------------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATIONS -- 1.3% of Net Assets
Argentina -- 0.2%
400,000 B/NR Province of Salta Argentina, 9.5%, 3/16/22 (144A) $ 348,000
------------------------------------------------------------------------------------------------------
Brazil -- 0.7%
BRL 1,750,000 BBB/Baa2 Brazilian Government International Bond,
10.25%, 1/10/28 $ 1,090,574
------------------------------------------------------------------------------------------------------
Mexico -- 0.4%
MXN 8,870,000 A-/NR Mexican Bonos, 7.75%, 11/13/42 $ 707,320
------------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATIONS
(Cost $2,046,331) $ 2,145,894
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
-------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN INTERESTS -- 30.4%
of Net Assets*
ENERGY -- 0.9%
Coal & Consumable Fuels -- 0.6%
573,563 B+/B2 Preferred Proppants LLC, Term Loan B,
7.5%, 12/15/16 $ 567,827
450,000 NR/NR PT Bumi Resources Tbk, Term Loan, 11.241%, 8/7/13 450,000
------------
$ 1,017,827
-------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.3%
282,609 NR/NR Aquilex Holdings LLC, Term Loan, 8.75%, 4/1/16 $ 280,489
181,424 B-/B2 Hudson Products Holdings, Inc., Term Loan,
8.5%, 8/24/15 167,817
------------
$ 448,306
------------
Total Energy $ 1,466,133
-------------------------------------------------------------------------------------------------------
MATERIALS -- 2.2%
Diversified Chemicals -- 0.4%
EURO 85,313 B+/Ba3 Ineos Holdings, Ltd., Facility Term Loan C1,
8.0%, 12/16/14 $ 119,086
21,349 B+/Ba3 Ineos US Finance LLC, Senior Credit Facility Term Loan
C2, 8.0%, 12/16/14 22,203
195,956 BB+/Ba1 Solutia, Inc., Term Loan 1, 3.5%, 8/1/17 196,119
345,625 B+/B2 Univar, Inc., Term Loan B, 5.0%, 6/30/17 346,674
------------
$ 684,082
-------------------------------------------------------------------------------------------------------
Forest Products -- 0.9%
1,500,000 B+/Ba3 Ainsworth Lumber Co., Ltd., Term Loan,
5.25%, 6/26/14 $ 1,426,875
-------------------------------------------------------------------------------------------------------
Paper Products -- 0.3%
461,513 B/B1 Exopack LLC/Cello-Foil Products, Inc., Term Loan B,
6.5%, 6/4/12 $ 461,513
-------------------------------------------------------------------------------------------------------
Precious Metals & Minerals -- 0.1%
209,250 BB-/B1 Fairmount Minerals, Ltd., Tranche B Term Loan,
5.25%, 3/15/17 $ 210,009
-------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.5%
250,000 BB+/Ba1 Chemtura Corp., Facility Term Loan, 5.5%, 8/29/16 $ 252,344
347,751 BB+/Ba1 Huntsman International LLC, Extended Term Loan B,
2.85%, 4/19/17 346,136
200,000 BB-/B1 Taminco Global Chemical Corp., Dollar Term Loan,
6.25%, 2/15/19 202,375
------------
$ 800,855
------------
Total Materials $ 3,583,334
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 27
Schedule of Investments | 4/30/12 (Consolidated) (continued)
--------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
--------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 2.5%
Aerospace & Defense -- 1.6%
897,813 B+/B3 API Technologies Corp., Term Loan, 8.75%, 6/1/16 $ 897,813
605,843 B/B2 DAE Aviation Holdings, Inc., Tranche B-1 Term Loan,
5.47%, 7/31/14 605,843
239,054 BB-/B1 Hunter Defense Technologies, Inc., Term Loan,
6.49%, 8/22/14 212,758
577,581 B/B2 Standard Aero, Ltd., Tranche B-2 Term Loan,
5.47%, 7/31/14 577,581
326,945 BB-/B1 TASC, Inc., New Tranche B Term Loan,
4.5%, 12/18/15 325,310
------------
$ 2,619,305
--------------------------------------------------------------------------------------------------
Building Products -- 0.6%
1,047,188 B+/B1 Goodman Global, Inc., First Lien Initial Term Loan,
5.75%, 10/28/16 $ 1,055,789
--------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.3%
415,000 BB/Ba2 Manitowoc Co., Inc., Term Loan B, 4.25%, 11/13/17 $ 415,519
------------
Total Capital Goods $ 4,090,613
--------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 1.5%
Commercial Printing -- 0.1%
204,671 BB-/Ba3 Cenveo Corp., Facility Term Loan B, 6.25%, 12/21/16 $ 205,406
--------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 1.3%
780,420 B+/B1 Brickman Group Holdings, Inc., Tranche B Term Loan,
7.25%, 10/14/16 $ 789,688
1,071,189 B-/Caa1 Synagro Technologies, Inc., First Lien Term Loan,
2.25%, 4/2/14 972,104
295,150 B+/B1 Waste Industries USA Inc., Term Loan B,
4.5%, 3/17/17 295,150
------------
$ 2,056,942
--------------------------------------------------------------------------------------------------
Security & Alarm Services -- 0.1%
208,431 B+/B1 Protection One, Inc., Term Loan 2012,
5.75%, 3/21/19 $ 208,165
------------
Total Commercial & Professional Services $ 2,470,513
--------------------------------------------------------------------------------------------------
TRANSPORTATION -- 1.0%
Air Freight & Logistics -- 0.8%
439,482 NR/NR Ceva Group Plc, Dollar Tranche B Pre-Funded LC Loan,
3.7%, 8/31/16 $ 415,310
919,588 NR/Ba3 Ceva Group Plc, US Tranche B Term Loan,
5.47%, 8/31/16 869,011
------------
$ 1,284,321
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
---------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
Airlines -- 0.2%
272,250 BB-/Ba2 Delta Air Lines, Inc., 2009 Term Loan, 4.25%, 3/7/16 $ 267,486
------------
Total Transportation $ 1,551,807
---------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 1.9%
Auto Parts & Equipment -- 0.6%
139,096 B+/Ba3 Federal-Mogul Corp., Tranche B Term Loan,
2.178%, 12/29/14 $ 134,931
70,968 B+/Ba3 Federal-Mogul Corp., Tranche C Term Loan,
2.178%, 12/28/15 68,843
158,400 B+/NR Metaldyne LLC, Term Loan, 5.25%, 5/18/17 159,390
285,000 NR/NR TI Group Automotive Systems LLC, Term Loan,
6.75%, 3/14/18 286,425
224,183 BB/Ba2 Tomkins LLC/Tomkins, Inc., Term Loan B-1,
4.25%, 9/29/16 225,236
143,188 B+/Ba2 UCI International, Inc., Term Loan, 5.5%, 7/26/17 143,903
------------
$ 1,018,728
---------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.9%
1,488,750 BB/Ba2 Chrysler Group LLC, Tranche B Term Loan,
6.0%, 5/24/17 $ 1,518,723
---------------------------------------------------------------------------------------------------
Tires & Rubber -- 0.4%
575,000 BB/Ba1 Goodyear Tire & Rubber Co., Second Lien Term Loan,
4.75%, 4/30/19 $ 567,633
------------
Total Automobiles & Components $ 3,105,084
---------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.4%
Housewares & Specialties -- 0.1%
215,451 BB/Ba3 Reynolds Group Holdings, Inc., Tranche B Term Loan,
6.5%, 2/9/18 $ 218,818
---------------------------------------------------------------------------------------------------
Leisure Products -- 0.3%
410,904 B+/Ba3 SRAM LLC, First Lien Term Loan, 4.75%, 6/7/18 $ 416,811
------------
Total Consumer Durables & Apparel $ 635,629
---------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.6%
Restaurants -- 0.3%
555,000 NR/NR NPC International, Inc., Term Loan 2012,
5.25%, 12/28/18 $ 559,162
---------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.3%
437,531 B+/B1 Wash MultiFamily Laundry Systems LLC, Term Loan,
7.0%, 8/28/14 $ 436,438
------------
Total Consumer Services $ 995,600
---------------------------------------------------------------------------------------------------
MEDIA -- 2.2%
Advertising -- 0.6%
980,021 B+/Ba3 Affinion Group, Inc., Tranche B Term Loan,
5.0%, 7/16/15 $ 933,470
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 29
Schedule of Investments | 4/30/12 (Consolidated) (continued)
----------------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------------
Broadcasting -- 0.9%
432,717 BB/Caa2 FoxCo Acquisition Sub LLC, Replacement Term Loan,
4.75%, 7/14/15 $ 434,746
404,958 BB-/Ba3 TWCC Holding Corp., Term Loan, 4.25%, 2/13/17 407,336
590,050 B+/B2 Univision Communications, Inc., Extended First Lien
Term Loan, 4.489%, 3/31/17 551,881
------------
$ 1,393,963
----------------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.3%
546,793(f) B-/B1 WideOpenWest Finance LLC, Series A Term Loan,
6.741%, 6/30/14 $ 548,160
----------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.4%
169,147 NR/Ba1 Cinedigm Digital Funding I LLC, Term Loan,
5.25%, 4/29/16 $ 168,830
588,133 B/B3 Lodgenet Interactive Corp., Closing Date Term Loan,
6.5%, 4/4/14 535,201
------------
$ 704,031
------------
Total Media $ 3,579,624
----------------------------------------------------------------------------------------------------------
RETAILING -- 1.4%
Automotive Retail -- 0.5%
247,500 BB+/Ba3 Autotrader.com, Inc., Tranche B-1 Term Loan,
4.0%, 12/15/16 $ 247,861
398,000 NR/B1 Stackpole Powertrain International ULC, Term Loan,
7.5%, 8/2/17 400,985
247,500 NR/NR Towerco Finance LLC, New Term Loan, 4.5%, 2/2/17 249,047
------------
$ 897,893
----------------------------------------------------------------------------------------------------------
Specialty Stores -- 0.9%
511,380 B+/NR Savers, Inc., New Term Loan, 4.25%, 3/4/17 $ 515,215
893,250 B/B2 Targus Group International, Inc., Term Loan,
11.0%, 5/24/16 891,017
------------
$ 1,406,232
------------
Total Retailing $ 2,304,125
----------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.5%
Packaged Foods & Meats -- 0.5%
248,125 B/NR Del Monte Foods Co., Initial Term Loan, 4.5%, 3/8/18 $ 246,729
500,000 BB-/B2 Pierre Foods, Inc., Second Lien Term Loan,
11.25%, 9/29/17 501,875
------------
Total Food, Beverage & Tobacco $ 748,604
----------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.5%
Personal Products -- 0.5%
275,000 B/Ba3 Monitronics International, Inc., Term Loan,
5.5%, 3/23/18 $ 277,578
215,357 BB-/Ba3 NBTY, Inc., Term Loan B-1, 4.25%, 10/2/17 215,963
The accompanying notes are an integral part of these financial statements.
30 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
----------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Personal Products -- (continued)
245,644 BB-/Ba3 Revlon Consumer Products Corp., Term Loan B,
4.75%, 11/19/17 $ 246,143
------------
Total Household & Personal Products $ 739,684
----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.0%
Health Care Equipment -- 0.2%
244,388 BB-/Ba2 Kinetic Concepts, Inc., Dollar Term Loan B-1,
7.0%, 5/4/18 $ 249,886
----------------------------------------------------------------------------------------------------
Health Care Facilities -- 1.1%
355,469 B/B1 Ardent Medical Services, Inc., Term Loan,
6.5%, 9/15/15 $ 356,802
983,916 BB/Ba3 CHS/Community Health Systems, Inc., Extended Term
Loan, 3.97%, 1/25/17 973,989
198,040 BB/Ba3 HCA, Inc., Tranche B-2 Term Loan, 3.72%, 3/31/17 195,373
82,579 BB/Ba3 HCA, Inc., Tranche B-3 Term Loan, 3.489%, 5/1/18 81,340
180,556 BB-/Ba1 Sun Healthcare Group, Inc., Term Loan,
8.75%, 10/18/16 177,847
------------
$ 1,785,351
----------------------------------------------------------------------------------------------------
Health Care Services -- 2.9%
442,708 NR/NR AccentCare, Inc., Term Loan, 6.5%, 12/22/16 $ 403,972
1,317,180 BB-/Ba3 Catalent Pharma Solutions, Inc., Extended Dollar Term
Loan 1, 4.239%, 9/15/16 1,319,649
345,706 B/B1 Gentiva Health Services, Inc., Term Loan B1,
6.5%, 8/17/16 329,717
634,922 BB-/Ba3 Inventiv Health, Inc., Consolidated Term Loan,
6.5%, 8/4/16 602,382
405,900 B+/B1 National Mentor Holdings, Inc., Tranche B Term Loan,
7.0%, 2/9/17 403,025
252,901 B/B2 National Specialty Hospitals, Inc., Initial Term Loan,
8.25%, 2/3/17 241,520
25,510 B/NR Physician Oncology Services LP, Delayed Draw Term
Loan, 6.25%, 1/31/17 24,617
209,980 B/B2 Physician Oncology Services LP, Effective Date Term
Loan, 6.25%, 1/31/17 202,631
326,146 NR/B1 Prime Healthcare Services, Inc., Term Loan B,
7.5%, 4/28/15 324,515
347,375 B/Ba3 Valitas Health Services, Inc., Term Loan B,
5.75%, 6/2/17 347,809
496,250 NR/NR Virtual Radiologic Corp., Term Loan B,
7.25%, 12/22/16 461,513
------------
$ 4,661,350
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 31
Schedule of Investments | 4/30/12 (Consolidated) (continued)
----------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
----------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.5%
242,550 BB-/Ba3 Alere, Inc., Term Loan B, 4.75%, 6/30/17 $ 242,600
111,255 B+/B1 Bausch & Lomb, Inc., Delayed Draw Term Loan,
3.489%, 4/24/15 111,315
455,322 B+/B1 Bausch & Lomb, Inc., Parent Term Loan,
3.72%, 4/24/15 455,567
------------
$ 809,482
----------------------------------------------------------------------------------------------------
Health Care Technology -- 0.3%
245,004 BB/Ba3 IMS Health, Inc., Tranche B Dollar Term Loan,
4.5%, 8/26/17 $ 246,333
375,000 B/B2 Medical Card System, Inc., Term Loan,
12.0%, 9/17/15 309,375
------------
$ 555,708
------------
Total Health Care Equipment & Services $ 8,061,777
----------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY & LIFE SCIENCES -- 1.4%
Biotechnology -- 1.4%
690,000 B/Caa1 Alkermes, Inc., Second Lien Term Loan,
9.5%, 9/16/18 $ 710,700
493,750 BB/B2 Aptalis Pharma, Inc., Term Loan B-1, 5.5%, 2/10/17 489,584
216,103 BBB-/Ba3 Warner Chilcott Co. LLC, Term Loan B-2,
4.25%, 3/15/18 216,981
432,206 BBB-/Ba3 Warner Chilcott Corp., Term Loan B-1,
4.25%, 3/15/18 433,962
297,141 BBB-/Ba3 WC Luxco S.a.r.l., Term Loan B-3, 4.25%, 3/15/18 298,349
------------
Total Pharmaceuticals & Biotechnology
& Life Sciences $ 2,149,576
----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.9%
Other Diversified Financial Services -- 0.4%
147,789 B-/B2 BNY ConvergEX Group LLC, Second Lien (EZE) Term
Loan, 8.75%, 12/18/17 $ 146,773
352,211 B-/B2 BNY ConvergEX Group LLC, Second Lien (TOP) Term
Loan, 8.75%, 12/18/17 349,789
72,253 NR/NR Long Haul Holdings, Ltd., Facility Term Loan A,
0.0%, 4/22/13 67,918
57,668 NR/NR PT Bakrie & Brothers Tbk, Facility Term Loan B,
0.0%, 4/22/13 54,208
------------
$ 618,688
----------------------------------------------------------------------------------------------------
Specialized Finance -- 0.5%
680,000 B/Ba3 Expert Global Solutions, Inc., First Lien Advance Term
Loan B, 9.0%, 4/3/18 $ 678,130
213,423 BBB/Ba1 MSCI, Inc., Term Loan B-1, 3.5%, 3/14/17 213,588
------------
$ 891,718
------------
Total Diversified Financials $ 1,510,406
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
---------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
INSURANCE -- 3.6%
Insurance Brokers -- 2.5%
1,368,444 B-/B2 Alliant Holdings I, Inc., Term Loan, 3.47%, 8/17/14 $ 1,371,671
125,899 B+/B1 HUB International, Ltd., 2014 Delayed Draw Term
Loan, 4.97%, 6/13/14 125,688
560,066 B+/B1 HUB International, Ltd., 2014 Initial Term Loan,
4.97%, 6/13/14 558,137
97,500 B/B1 U.S.I. Holdings Corp., New Series C Term Loan,
7.0%, 5/5/14 98,351
1,905,000 B/B1 U.S.I. Holdings Corp., Tranche B Term Loan,
2.74%, 5/5/14 1,874,838
------------
$ 4,028,685
---------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 1.1%
783,179 B/B1 AmWins Group, Inc., Initial Term Loan, 4.49%, 6/8/13 $ 782,690
1,000,000 CCC+/Caa1 AmWins Group, Inc., Second Lien Initial Term Loan,
5.74%, 6/9/14 982,500
------------
$ 1,765,190
------------
Total Insurance $ 5,793,875
---------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.1%
Real Estate Development -- 0.1%
217,727 B-/B1 Ozburn-Hessey Holding Co. LLC, First Lien Term Loan,
8.25%, 4/8/16 $ 192,144
------------
Total Real Estate $ 192,144
---------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 2.2%
Application Software -- 1.2%
474,069 BB-/Ba2 Allen Systems Group, Inc., Term Loan B,
6.5%, 11/20/15 $ 466,958
957,162 BB+/Baa3 Nuance Communications, Inc., Term Loan C,
3.24%, 3/31/16 957,959
500,000 CCC+/Caa1 Vertafore, Inc., Second Lien Term Loan,
9.75%, 10/27/17 505,000
------------
$ 1,929,917
---------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.1%
214,286 NR/NR Vantiv LLC, Tranche B Term Loan, 3.75%, 3/27/19 $ 214,286
---------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.9%
1,347,567 BB/NR SunGard Data Systems, Inc., Tranche C Term Loan,
3.991%, 2/28/17 $ 1,353,884
------------
Total Software & Services $ 3,498,087
---------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.5%
Communications Equipment -- 0.2%
244,383 NR/NR Commscope, Inc., Tranche 1 Term Loan,
4.25%, 1/14/18 $ 245,144
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 33
Schedule of Investments | 4/30/12 (Consolidated) (continued)
---------------------------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.3%
489,835 B/B2 Scitor Corp., Term Loan, 5.0%, 2/15/17 $ 479,426
------------
Total Technology Hardware & Equipment $ 724,570
---------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.9%
Semiconductor Equipment -- 0.9%
633,741 BB-/B1 Aeroflex, Inc., Tranche B Term Loan, 4.25%, 5/9/18 $ 632,553
765,247 B/B1 Freescale Semiconductor, Inc., Tranche B-1 Term Loan,
4.491%, 12/1/16 752,080
------------
Total Semiconductors & Semiconductor Equipment $ 1,384,633
---------------------------------------------------------------------------------------------------
UTILITIES -- 0.2%
Electric Utilities -- 0.2%
629,720 CCC/B2 Texas Competitive Electric Holdings Co. LLC, 2017
Term Loan, 4.741%, 10/10/17 $ 349,809
------------
Total Utilities $ 349,809
---------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTERESTS
(Cost $49,211,116) $ 48,935,627
---------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
Shares
-------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.5% of Net Assets
ENERGY -- 0.1%
Oil & Gas Drilling -- 0.0%(c)
1,109(j) Rowan Companies, Inc. $ 38,294
-------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.1%
19,571(j) Sevan Marine ASA $ 46,464
------------
Total Energy $ 84,758
-------------------------------------------------------------------------------------------------
MATERIALS -- 0.2%
Commodity Chemicals -- 0.1%
2,459(j) Georgia Gulf Corp. $ 87,171
551 Lyondell Basell Industries NV, Class A 23,021
------------
$ 110,192
-------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.1%
371,096(f)(i)(j) Blaze Recycling and Metals LLC Class A Units $ 244,923
-------------------------------------------------------------------------------------------------
Forest Products -- 0.0%(c)
13,963(j) Ainsworth Lumber Co., Ltd. $ 17,667
------------
Total Materials $ 372,782
-------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.0%(c)
Marine -- 0.0%(c)
14,207 Horizon Lines, Inc., Class A $ 37,791
------------
Total Transportation $ 37,791
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
---------------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.2%
Auto Parts & Equipment -- 0.2%
5,787 Lear Corp. $ 240,161
------------
Total Automobiles & Components $ 240,161
---------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.0%(c)
Other Diversified Financial Services -- 0.0%(c)
731(j) BTA Bank JSC (G.D.R.) (144A) $ 1,608
------------
Total Diversified Financials $ 1,608
---------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.0%(c)
Systems Software -- 0.0%(c)
2,114(f)(j) Perseus Holding Corp. $ 5,285
------------
Total Software & Services $ 5,285
---------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $868,506) $ 742,385
---------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK -- 0.3% of Net Assets
DIVERSIFIED FINANCIALS -- 0.3%
Other Diversified Financial Services -- 0.3%
470 Bank of America Corp., 7.25% $ 457,310
------------
Total Diversified Financials $ 457,310
---------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $382,900) $ 457,310
---------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 0.6% of Net Assets
DIVERSIFIED FINANCIALS -- 0.6%
Other Diversified Financial Services -- 0.6%
40,675 GMAC Capital Trust I, 8.125%, Series 2 $ 974,166
------------
Total Diversified Financials $ 974,166
---------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.0%(c)
Systems Software -- 0.0%(c)
1,110(f)(j) Perseus Holding Corp., 14.0% (144A) $ 19,425
------------
Total Software & Services $ 19,425
---------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $933,996) $ 993,591
---------------------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.0% of Net Assets(c)
REAL ESTATE -- 0.0%(c)
Real Estate Development -- 0.0%(c)
750,000(f)(j) Neo-China Group Holdings, Ltd., Expires
7/22/12 (144A) $ 967
------------
Total Real Estate $ 967
---------------------------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $17,012) $ 967
---------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 35
Schedule of Investments | 4/30/12 (Consolidated) (continued)
-------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENT -- 2.1% of Net Assets
Repurchase Agreements -- 2.1%
3,440,000 NR/NR JPMorgan, Inc., 0.2%, dated 4/30/12, repurchase
price of $3,440,000 plus accrued interest on 5/1/12
collateralized by $3,508,802 Federal National
Mortgage Association (ARM),
2.191 - 5.904%, 11/1/35 - 8/1/45 $ 3,440,000
-------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,440,000) $ 3,440,000
-------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 138.2%
(Cost $226,329,070)(k) $222,749,923
-------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (38.2)% $(61,604,368)
-------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS -- 100.0% $161,145,555
===========================================================================================
(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 April
30, 2012, the value of these securities amounted to $107,946,669 or 67.0%
of total net assets applicable to common shareowners.
* 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 at April 30, 2012.
(a) Floating rate note. The ratio shown is the coupon rate at April 30, 2012.
(b) Security is in default and is non-income producing.
(c) Amount rounds to less than 0.05%.
(d) Payment-in-Kind (PIK) security which may pay interest in the form of
additional principal.
(e) Debt obligation initially issued at one coupon which converts to another
coupon at a specific date. The rate shown is the rate at April 30, 2012.
(f) Indicates a security that has been deemed illiquid. The aggregate cost of
illiquid securities is $3,467,783. The aggregate fair value of $1,776,856
represents 1.1% of the total net assets applicable to common shareowners.
(g) Security is perpetual in nature and has no stated maturity date.
(h) Security is priced as a unit.
(i) Security is valued using fair value methods (other than prices supplied
by independent pricing services). (See Note 1A)
(j) Non-income producing.
The accompanying notes are an integral part of these financial statements.
36 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
(k) At April 30, 2012, the net unrealized loss on investments based on cost
for federal income tax purposes of $226,923,915 was as follows:
Aggregate gross unrealized gain in which there is an excess of value over
tax cost $ 8,657,287
Aggregate gross unrealized loss in which there is an excess of tax cost
over value (12,831,279)
-----------
Net unrealized loss $(4,173,992)
===========
For financial reporting purposes net unrealized loss on investments was
$3,579,147 and cost of investments aggregated $226,329,070.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended April 30, 2012 aggregated $61,222,963 and $53,847,023,
respectively.
Glossary of Terms:
LC LC -- Letter of Credit
NR Security not rated by S&P or Moody's
(G.D.R.) Global Depository Receipt
Principal amounts are denominated in U.S. dollars unless otherwise noted.
BRL -- Brazilian Real
EURO -- Euro
GBP -- British Pound
MXN -- Mexican Peso
NOK -- Norwegian Krone
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 (other than prices supplied by independent pricing services) are
categorized as Level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 37
Schedule of Investments | 4/30/12 (Consolidated) (continued)
The following is a summary of the inputs used as of April 30, 2012, in valuing
the Trust's investments:
----------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------------
Asset backed securities $ -- $ 2,042,491 $ -- $ 2,042,491
Collateralized mortgage obligations -- 1,221,819 -- 1,221,819
Commercial mortgage-backed
securities -- 549,409 -- 549,409
Corporate bonds & notes -- 157,364,710 -- 157,364,710
Convertible bonds & notes (marine) -- -- 296,699 296,699
Convertible bonds & notes (other
industries) -- 4,559,021 -- 4,559,021
Sovereign debt obligations -- 2,145,894 -- 2,145,894
Senior floating rate loan interests -- 48,935,627 -- 48,935,627
Common stocks (diversified metals
& mining) -- -- 244,923 244,923
Common stocks (other industries) 165,650 331,812 -- 497,462
Convertible preferred stock 457,310 -- -- 457,310
Preferred stock 974,166 19,425 -- 993,591
Rights/Warrants -- 967 -- 967
Repurchase agreements -- 3,440,000 -- 3,440,000
----------------------------------------------------------------------------------------------------
Total $1,597,126 $220,611,175 $541,622 $222,749,923
====================================================================================================
Other Financial Instruments* $ -- $ (33,120) $ -- $ (33,120)
====================================================================================================
* Other financial instruments include net unrealized depreciation on forward
foreign currency contracts and net unrealized depreciation on an unfunded
corporate loan.
The following is a reconciliation of assets valued using significant
unobservable inputs (level 3):
--------------------------------------------------------------------------------------------------------
Change in Transfer
Balance Realized unrealized Net in and Balance
as of gain appreciation purchases out of as of
4/30/11 (loss)(1) (depreciation)(2) (sales) Level 3** 4/30/12
--------------------------------------------------------------------------------------------------------
Convertible bonds
& notes (marine) $ -- $ -- $ (432,894) $ 729,593 $-- $296,699
Common stocks
(diversified metals
& mining) 256,056 -- (11,133) -- -- 244,923
Common stocks (steel) 105,430 142,377 11,614 (259,421) -- --
--------------------------------------------------------------------------------------------------------
Ending balance $361,486 $142,377 $ (432,413) $ 470,172 $-- $541,622
========================================================================================================
** Transfers are calculated on the beginning of period values.
1 Realized gain (loss) on these securities is included in the realized gain
(loss) from investments in the Statement of Operations.
2 Unrealized appreciation (depreciation) on the securities is included in the
change in unrealized gain (loss) from investments in the Statement of
Operations.
Net change in unrealized appreciation (depreciation) of Level 3 investments
still held and considered Level 3 at 4/30/12: $(444,027).
The accompanying notes are an integral part of these financial statements.
38 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
Statement of Assets and Liabilities | 4/30/12 (Consolidated)
ASSETS:
Investments in securities, at value (cost $226,329,070) $222,749,923
Cash 2,730,718
Foreign currencies, at value (cost $2,774,217) 2,772,923
Receivables --
Investment securities sold 1,362,793
Interest and foreign tax reclaim receivable 4,027,167
Forward foreign currency portfolio hedge contracts 1,802
Prepaid expenses 13,365
-------------------------------------------------------------------------------------
Total assets $233,658,691
-------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Notes payable $ 69,000,000
Investment securities purchased 1,744,058
Forward foreign currency portfolio hedge contracts 33,631
Dividends to shareowners 1,321,798
Depreciation on unfunded loan commitment 1,291
Unamortized facility fees 714
Due to affiliates 217,487
Accrued interest expense 63,434
Accrued expenses 130,723
-------------------------------------------------------------------------------------
Total liabilities $ 72,513,136
-------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $193,215,894
Distribution in excess of investment income (196,572)
Accumulated net realized loss on investments and foreign currency
transactions (28,258,866)
Net unrealized loss on investments and unfunded loan commitment (3,580,438)
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (34,463)
-------------------------------------------------------------------------------------
Net assets applicable to shareowners $161,145,555
=====================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Based on $161,145,555/8,261,236 shares $ 19.51
=====================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 39
Statement of Operations (Consolidated)
For the Year Ended 4/30/12
INVESTMENT INCOME:
Interest (net of foreign taxes withheld of $880) $ 20,331,805
Dividend income (net of foreign taxes withheld of $438) 39,601
Facility and other fees 226,556
Income from securities loaned, net 22,064
---------------------------------------------------------------------------------------------------------
Total investment income $ 20,620,026
---------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,957,337
Administrative reimbursements 216,418
Transfer agent fees and expenses 12,600
Shareowner communication expenses 1,483
Commitment fees 9,742
Custodian fees 23,919
Registration fees 17,500
Professional fees 73,865
Printing expenses 21,877
Trustees' fees 7,629
Pricing fee 25,322
Miscellaneous 20,793
---------------------------------------------------------------------------------------------------------
Net operating expenses $ 2,388,485
---------------------------------------------------------------------------------------------------------
Interest expense $ 902,237
---------------------------------------------------------------------------------------------------------
Net operating expenses and interest expense $ 3,290,722
---------------------------------------------------------------------------------------------------------
Net investment income $ 17,329,304
---------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (4,216,174)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies 248,061 $ (3,968,113)
---------------------------------------------------------------------------------------------------------
Change in unrealized gain (loss) on:
Investments $ (9,382,509)
Unfunded loan commitments 4,951
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (226,925) $ (9,604,483)
---------------------------------------------------------------------------------------------------------
Net loss on investments and foreign currency transactions $(13,572,596)
---------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 3,756,708
=========================================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
Statement of Changes in Net Assets (Consolidated)
-------------------------------------------------------------------------------------------------
Year Ended Year Ended
4/30/12 4/30/11
-------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 17,329,304 $ 16,650,754
Net realized gain (loss) on investments and foreign currency
transactions (3,968,113) 148,729
Change in net unrealized gain (loss) on investments, unfunded
loan commitments and foreign currency transactions (9,604,483) 5,934,238
-------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 3,756,708 $ 22,733,721
-------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS FROM:
Net investment income ($1.96 and $1.92 per share,
respectively) $(16,161,281) $(15,772,901)
-------------------------------------------------------------------------------------------------
Total distributions to shareowners $(16,161,281) $(15,772,901)
-------------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 668,357 $ 639,838
-------------------------------------------------------------------------------------------------
Net increase in net assets from Trust share transactions $ 668,357 $ 639,838
-------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(11,736,216) $ 7,600,658
NET ASSETS:
Beginning of year $172,881,771 $165,281,113
-------------------------------------------------------------------------------------------------
End of year $161,145,555 $172,881,771
-------------------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (196,572) $ (1,515,690)
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 41
Statement of Cash Flows (Consolidated)
For the Year Ended April 30, 2012
Cash Flows From Operating Activities
Net investment income $ 17,329,304
---------------------------------------------------------------------------
Adjustment to Reconcile Net Investment Income to Net Cash
and Foreign Currency From Operating Activities
Purchase of investment securities $(613,203,743)
Proceeds from disposition of investment securities 611,431,071
Decrease in receivable for investments sold 67,721
Decrease in interest and foreign tax reclaim receivable 77,560
Increase in prepaid expenses (937)
Decrease in other assets 81,780
Decrease in accrued interest payable (86,896)
Decrease in payable for investments purchased (746,722)
Decrease in accrued expenses (168,056)
Decrease in other liabilities (33,272)
Decrease in due to affiliates (65,855)
Decrease in unamortized facility fee (392)
Increase in unrealized appreciation on foreign currency
transactions (346,242)
Net realized gain from foreign currency transactions 248,061
Net amortization/(accretion) of premium/(discount) (1,175,556)
---------------------------------------------------------------------------
Net adjustment to reconcile net investment income (3,921,478)
---------------------------------------------------------------------------
Net cash and foreign currency provided from operating
activities $ 13,407,826
---------------------------------------------------------------------------
Cash Flows Used in Financing Activities
Cash dividends paid to common shareowners $ (15,487,477)
---------------------------------------------------------------------------
Net cash flow used in financing activities $ (15,487,477)
---------------------------------------------------------------------------
Net decrease in cash and foreign currency $ (2,079,651)
---------------------------------------------------------------------------
Cash and Foreign Currency
Beginning of the year $ 7,583,292
===========================================================================
End of the year $ 5,503,641
---------------------------------------------------------------------------
Cash Flow Information
Cash paid for interest $ 688,473
---------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
42 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
Financial Highlights
-------------------------------------------------------------------------------------------------------------
Year Ended
4/30/12
(Consolidated)
-------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 21.01
-------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 2.10
Net realized and unrealized gain (loss) on investments and foreign currency transactions (1.64)
-------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.46
Distributions to common shareowners from:
Net investment income (1.96)
Tax return of capital --
Capital charge with respect to issuance of shares --
-------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.50)
-------------------------------------------------------------------------------------------------------------
Net asset value, end of period (d) $ 19.51
-------------------------------------------------------------------------------------------------------------
Market value, end of period (d) $ 20.13
=============================================================================================================
Total return at market value (e) 1.35%
Ratios to average net assets
Net operating expenses 1.48%
Interest expense 0.56%
Net expenses 2.04%
Net investment income 10.75%
Portfolio turnover 24%
Net assets, end of period (in thousands) $161,146
--------------------------------------------------------------------------------------------------------------------------
Year Ended
4/30/11 Year Ended
(Consolidated) 4/30/10
--------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 20.17 $ 13.94
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 2.03 $ 1.76
Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.73 6.48
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.76 $ 8.24
Distributions to common shareowners from:
Net investment income (1.92) (1.69)
Tax return of capital -- (0.32)
Capital charge with respect to issuance of shares -- --
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.84 $ 6.23
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period (d) $ 21.01 $ 20.17
--------------------------------------------------------------------------------------------------------------------------
Market value, end of period (d) $ 21.95 $ 20.46
==========================================================================================================================
Total return at market value (e) 17.95% 73.25%
Ratios to average net assets
Net operating expenses 1.62% 1.39%
Interest expense 0.58% 0.83%
Net expenses 2.20% 2.22%
Net investment income 10.02% 9.84%
Portfolio turnover 30% 24%
Net assets, end of period (in thousands) $172,881 $165,281
--------------------------------------------------------------------------------------------------------------------------
For the
Period from
Year Ended 5/30/07 (b) to
4/30/09 4/30/08
--------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 22.02 $ 23.88(c)
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 2.10 $ 1.77
Net realized and unrealized gain (loss) on investments and foreign currency transactions (7.67) (1.80)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (5.57) $ (0.03)
Distributions to common shareowners from:
Net investment income (2.47) (1.78)
Tax return of capital (0.04) --
Capital charge with respect to issuance of shares -- (0.05)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (8.08) $ (1.86)
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period (d) $ 13.94 $ 22.02
--------------------------------------------------------------------------------------------------------------------------
Market value, end of period (d) $ 13.23 $ 20.47
==========================================================================================================================
Total return at market value (e) (23.11)% (10.67)%
Ratios to average net assets
Net operating expenses 1.38% 0.99%(f)
Interest expense 1.14% 0.33%(f)
Net expenses 2.52% 1.32%(f)
Net investment income 12.27% 8.48%(f)
Portfolio turnover 25% 21%
Net assets, end of period (in thousands) $113,812 $179,515
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 43
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------
Year Ended Year Ended
4/30/12 4/30/11
(Consolidated) (Consolidated)
-----------------------------------------------------------------------------------------------------------------
Ratios to average net assets before waivers and reimbursements of expenses
Net operating expenses 1.48% 1.64%
Interest expense 0.56% 0.58%
Net expenses 2.04% 2.22%
Net investment income 10.75% 10.00%
=================================================================================================================
--------------------------------------------------------------------------------------------------------------------------
For the
Period from
Year Ended Year Ended 5/30/07 (b) to
4/30/10 4/30/09 4/30/08
--------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets before waivers and reimbursements of expenses
Net operating expenses 1.61% 1.68% 1.29%(f)
Interest expense 0.83% 1.14% 0.33%(f)
Net expenses 2.44% 2.82% 1.62%(f)
Net investment income 9.62% 11.97% 8.18%(f)
==========================================================================================================================
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Trust shares were first publicly offered on May 24, 2007 and commenced
operations on May 30, 2007.
(c) Net asset value immediately after the closing of the first public offering
was $23.83.
(d) 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.
(e) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
market value on the last day of the periods reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Total
investment returns less than a full period are not annualized. Past
performance is not a guarantee of future results.
(f) Annualized.
The accompanying notes are an integral part of these financial statements.
44 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
Notes to Financial Statements | 4/30/12 (Consolidated)
1. Organization and Significant Accounting Policies
Pioneer Diversified High Income Trust (the Trust) was organized as a Delaware
statutory trust on January 30, 2007. Prior to commencing operations on May 30,
2007, 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 provide a high level of current income
and the Trust may, as a secondary objective, also seek capital appreciation to
the extent that it is consistent with its investment objective.
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.
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.
Senior floating rate loan interests (senior loans) 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 maturities 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 that have not traded on the date of
valuation or securities for which sale prices are not available, generally
are valued using the mean between the last bid and asked prices. 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.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 45
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Trust's shares are determined as of such
times.
Securities or loans for which independent pricing services are unable to
supply prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued 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.
Examples of a significant event might include political or economic news,
corporate restructurings, natural disasters, terrorist activity or trading
halts. Thus, the valuation of the Trust's securities may differ from exchange
prices.
At April 30, 2012, three securities were valued using fair value methods (in
addition to securities valued using prices supplied by independent pricing
services) representing 0.3% of net assets. 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.
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.
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
46 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
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
federal and state 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
investment income or as from net realized gain (loss) on investment and
foreign currency transactions, or as from paid-in capital, depending on the
type of book/tax differences that may exist.
At April 30, 2012, the Trust reclassified $151,095 to decrease distribution
in excess of investment income, $149,131 to increase net realized loss on
investments and $1,964 to decrease paid-in capital to reflect permanent
book/tax differences. The reclassification has no impact on the net assets of
the Trust and presents the Trust's capital accounts on a tax basis.
At April 30, 2012, the Trust was permitted to carry forward $2,065,148 of
long term losses under the Regulated Investment Company Modernization Act of
2010 without limitation. Additionally, at April 30, 2012, the Trust had a net
capital loss carryforward of $23,843,173 of which the following amounts will
expire between 2016 and 2019 if not utilized: $231,744 in
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 47
2016, $413,150 in 2017, $21,948,862 in 2018 and $1,249,417 in 2019. Since
unlimited losses are required to be utilized prior to losses incurred in
pre-enactment years, pre-enactment capital loss carryforwards may be more
likely to expire unused.
The Trust has elected to defer approximately $2,052,913 of capital losses
recognized between November 1, 2011 and April 30, 2012 to its fiscal year
ending April 30, 2013.
The tax character of distributions paid to shareowners during the years ended
April 30, 2012 and April 30, 2011 was as follows:
--------------------------------------------------------------------------------
2012 2011
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $16,161,281 $15,772,901
--------------------------------------------------------------------------------
Total $16,161,281 $15,772,901
================================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at April 30, 2012:
--------------------------------------------------------------------------------
2012
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,342,759
Capital loss carryforward (25,908,321)
Post-October loss deferred (2,052,913)
Dividends payable (1,321,798)
Unrealized depreciation (4,130,066)
--------------------------------------------------------------------------------
Total $(32,070,339)
================================================================================
The difference between book-basis and tax-basis unrealized appreciation is
primarily attributable to the tax deferral of losses on wash sales, the
realization for tax purposes of unrealized gains on investments in passive
foreign investment companies, the book/tax differences in the accrual of
income on securities in default, the difference between book and tax
amortization methods for premiums and discounts on fixed income securities
and other temporary book/tax differences.
E. Risks
Information regarding the Trust's principal risks is contained in the Trust's
original offering prospectus, with additional information included in the
Trust's shareowner reports issued from time to time. Please refer to those
documents when considering the Trust's principal risks. At times, the Trust's
investments may represent industries or industry sectors that are
interrelated or have common risks, making the Trust more susceptible to any
economic, political, or regulatory developments or other risks affecting
those industries and sectors.
48 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
The Trust invests in below investment grade (high yield) debt securities,
floating rate loans and event-linked bonds sometimes referred to as
"catastrophe" bonds or "insurance-linked" bonds. The Trust may invest in
securities and other obligations of any credit quality, including those that
are rated below investment grade, or are unrated but are determined by the
investment adviser to be of equivalent credit quality. Below investment grade
securities are commonly referred to as "junk bonds" and are considered
speculative with respect to the issuer's capacity to pay interest and repay
principal. These securities involve greater risk of loss, are subject to
greater price volatility, and are less liquid, especially during periods of
economic uncertainty or change, than higher rated debt securities. The Trust
may invest in securities of issuers that are in default or that are in
bankruptcy.
The Trust's investments in certain foreign markets or countries with limited
developing markets may subject the Trust to a greater degree of risk than
would investments in a developed market. These risks include disruptive
political or economic conditions and the possible imposition of adverse
governmental laws or currency exchange restrictions.
F. 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
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.
G. Securities Lending
The Trust may lend 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
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 49
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. At April 30, 2012, the
Trust had no securities on loan.
H. Automatic Dividend Reinvestment Plan
All common shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional common shares
of the Trust in lieu of cash. Shareowners may elect not to participate in the
Plan. Shareowners not participating in the Plan receive all dividends and
capital gain distributions in cash. Participation in the Plan is completely
voluntary and may be terminated or resumed at any time without penalty by
notifying American Stock Transfer & Trust Company, the agent for shareowners
in administering the Plan (the Plan Agent), in writing prior to any dividend
record date; otherwise such termination or resumption will be effective with
respect to any subsequently declared dividend or other distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate in
the Plan on the shareowner's behalf. If the firm or nominee does not offer
the Plan, dividends will be paid in cash to the shareowner of record. A firm
or nominee may reinvest a shareowner's cash dividends in common shares of the
Trust on terms that differ from the terms of the Plan.
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional unissued
but authorized common shares from the Trust or (ii) by purchase of
outstanding common shares on the New York Stock Exchange or elsewhere. If, on
the payment date for any dividend, the net asset value per common share is
equal to or less than the market price per share plus estimated brokerage
trading fees (market premium), the Plan Agent will invest the dividend amount
in newly issued common shares. The number of newly issued common shares to be
credited to each account will be determined by dividing the dollar amount of
the dividend by the net asset value per common share on the date the shares
are issued, provided that the maximum discount from the then current market
price per share on the date of issuance does not exceed 5%. If, on the
payment date for any dividend, the net asset value per common share is
greater than the market value (market discount), the Plan
50 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
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 0.85% 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 year ended April 30, 2012, the net management
fee was 0.85% of the Trust's average daily managed assets, which was equivalent
to 1.21% of the Trust's average daily net assets.
In addition, under PIM's management and administration agreements, certain
other services and costs are paid by PIM and reimbursed by the Trust. At April
30, 2012, $217,487 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 receives compensation
directly from the Trust for providing such services.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 51
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 at negotiated
rates.
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 Diversified High Income Trust
The consolidated financial statements of the Trust include the accounts of
Blaze Holding DHINCT, 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 April 30, 2012, the Subsidary represented
approximately $244,923 or approximately 0.2% of the net assets of the Trust.
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 year ended April 30, 2012, the Trust
expenses were not reduced under such arrangement.
6. Forward Foreign Currency Contracts
During the year ended April 30, 2012, 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 year ended April 30, 2012 was $2,657,389. At April
30, 2012, the Trust had no outstanding settlement contracts.
52 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
Open portfolio hedges at April 30, 2012, were as follows:
--------------------------------------------------------------------------------------------------------
Net Contracts Net
to Receive/ In Exchange Settlement US$ Unrealized
Currency (Deliver) for US$ Date Value Gain (Loss)
--------------------------------------------------------------------------------------------------------
EURO
(European Dollar) (250,000) $ (332,742) 5/15/12 $ (330,940) $ 1,802
EURO
(European Dollar) (400,000) (528,529) 5/18/12 (529,510) (981)
EURO
(European Dollar) (3,698,221) (4,881,755) 6/29/12 (4,896,629) (14,874)
GBP
(Pound Sterling) (383,000) (603,749) 5/14/12 (621,525) (17,776)
--------------------------------------------------------------------------------------------------------
$(31,829)
========================================================================================================
7. Loan Agreement
Effective February 3, 2012, the Trust extended the maturity of its existing
Revolving Credit Facility (the Credit Agreement) with the Bank of Nova Scotia;
the size of the Credit Agreement remains at $75 million.
At April 30, 2012, the Trust had a borrowing outstanding under the Credit
Agreement totaling $69,000,000. The interest rate charged at April 30, 2012 was
1.14%. During the year ended April 30, 2012, the average daily balance was
$69,000,000 at a weighted average interest rate of 1.29%. With respect to the
loan, interest expense of $902,237 is included in the Statement of Operations.
The Trust is required to maintain 300% asset coverage with respect to amounts
outstanding under the Credit Agreement. Asset coverage is calculated by
subtracting the Trust's total liabilities, not including any bank loans and
senior securities, from the Trust's total assets and dividing such amount by
the principal amount of the borrowings outstanding. As of the date indicated
below, the Trust's debt outstanding and asset coverage were as follows:
-----------------------------------------------------------
Total Amount Asset coverage
of Debt Per $1,000 of
Date Outstanding Indebtedness
-----------------------------------------------------------
April 30, 2012 $69,000,000 $3,335
===========================================================
8. Unfunded Loan Commitments
As of April 30, 2012, the Trust had an unfunded loan commitment of $44,554
(excluding unrealized depreciation on this commitment of $1,291 as of April 30,
2012) which could be extended at the option of the borrower, pursuant to the
following loan agreement:
---------------------------------------------------------------------------------------------------------
Unrealized
Borrower Par Cost Value Loss
---------------------------------------------------------------------------------------------------------
National Specialty Hospitals, Inc., Delayed Draw Term Loan $44,554 $43,841 $42,550 $(1,291)
=========================================================================================================
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 53
In addition, the Trust had the following bridge loan commitment outstanding as
of April 30, 2012:
----------------------------------------------------------------------------------------------------
Unrealized
Borrower Par Cost Value Loss
----------------------------------------------------------------------------------------------------
Molycorp, Inc., Bridge Loan, 0.0%, 4/12/19 $506,000 $506,000 $506,000 $--
====================================================================================================
9. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the years ended April
30, 2012 and April 30, 2011 were as follows:
--------------------------------------------------------------------------------
4/30/12 4/30/11
--------------------------------------------------------------------------------
Shares outstanding at beginning of year 8,227,194 8,195,218
Reinvestment of distributions 34,042 31,976
--------------------------------------------------------------------------------
Shares outstanding at end of year 8,261,236 8,227,194
================================================================================
10. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of April 30, 2012 were as follows:
------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as
Hedging Instruments
Under Accounting Asset Derivatives 2012 Liabilities Derivatives 2012
Standards Codification ------------------------------------------------------------
(ASC) 815 Balance Sheet Location Value Balance Sheet Location Value
------------------------------------------------------------------------------------------
Forward Foreign Exchange Receivables $1,802 Payables $(33,631)
Currency Contracts
------------------------------------------------------------------------------------------
Total $1,802 $(33,631)
==========================================================================================
54 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
The effect of derivative instruments on the Statement of Operations for the
year ended April 30, 2012 was as follows:
---------------------------------------------------------------------------------------------------
Derivatives Not Change in
Accounted for as Unrealized Gain
Hedging Instruments or (Loss) on
Under Accounting Location of Gain or Realized Gain or Derivatives
Standards Codification (Loss) On Derivatives (Loss) on Derivatives Recognized
(ASC) 815 Recognized in Income Recognized in Income in Income
---------------------------------------------------------------------------------------------------
Forward Foreign Net realized gain on forward $66,157
Currency Contracts foreign currency contracts and
other assets and liabilities
denominated in foreign
currencies
---------------------------------------------------------------------------------------------------
Forward Foreign Change in net unrealized gain $119,317
Currency Contracts (loss) on forward foreign
currency contracts and other
assets and liabilities
denominated in foreign
currencies
---------------------------------------------------------------------------------------------------
11. Subsequent Events
The Board of Trustees of the Trust declared on May 4, 2012 a dividend from
undistributed net investment income of $0.16 per common share payable May 31,
2012, to shareowners of record on May 17, 2012.
Effective May 1, 2012, PIM has retained Brown Brothers Harriman & Co. (BBH) to
provide certain administrative and accounting services to the Trust.
Previously, PIM had retained State Street Bank and Trust Company (State Street)
to provide such services.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 55
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of
Pioneer Diversified High Income Trust:
--------------------------------------------------------------------------------
We have audited the accompanying consolidated statement of assets and
liabilities of Pioneer Diversified High Income Trust (the "Trust"), including
the consolidated schedule of investments, as of April 30, 2012, and the related
consolidated statement of operations for the year then ended, the consolidated
statement of changes in net assets for each of the two years in the period then
ended, the consolidated statement of cash flows and the financial highlights
for each of the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Trust's internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Trust's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of April 30, 2012, by correspondence with
the custodian, and brokers or by other appropriate auditing procedures where
replies from brokers were not received. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the consolidated financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Pioneer Diversified High Income Trust at April 30, 2012, the
consolidated results of its operations, cash flows for the year then ended, and
the changes in its net assets for the two years in the period then ended, and
the financial highlights for the periods indicated therein, in conformity with
U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
June 27, 2012
56 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
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.
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.
IMPORTANT TAX INFORMATION (unaudited)
Interest-Related Dividends for Non-U.S. Residents 79.86%*
* Represents the portion of the taxable ordinary income dividends eligible
for tax exemption form U.S. withholding tax for non-resident aliens and
foreign corporations.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 57
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Diversified High Income Trust (the Trust) pursuant to an investment
advisory agreement between PIM and the Trust. In order for PIM to remain the
investment adviser of the Trust, the Trustees of the Trust must determine
annually whether to renew the investment advisory agreement for the Trust.
The contract review process began in March 2011 as the Trustees of the Trust
agreed on, among other things, an overall approach and timeline for the
process. In July 2011, the Trustees approved the format of the contract review
materials and submitted their formal request to PIM to furnish information
necessary to evaluate the terms of the investment advisory agreement. The
contract review materials were provided to the Trustees in July 2011 and
September 2011. After reviewing and discussing the materials, the Trustees
submitted a request for additional information to PIM, and materials were
provided in response to this request. Meetings of the Independent Trustees of
the Trust were held in July, September, October, and November, 2011 to review
and discuss the contract review materials. In addition, the Trustees took into
account the information related to the Trust provided to the Trustees at each
regularly scheduled meeting.
At a meeting held on November 29, 2011, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Trust,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Trust, taking into account the investment objective
and strategy of the Trust. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for
the Trust, its research process and its process for trade execution. The
Trustees considered the resources of PIM and the personnel of PIM who provide
investment management services to the Trust. The Trustees considered the
non-investment resources and personnel of PIM involved in PIM's services to the
Trust, including PIM's compliance and legal resources and personnel. The
Trustees also considered the substantial attention and high priority given
58 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
by PIM's senior management to the Pioneer fund complex. In addition, the
Trustees considered PIM's plans to increase resources in its investment
management function and other enhancements to PIM's advisory capabilities.
The Trustees considered that PIM supervises and monitors the performance of the
Trust's service providers and provides the Trust with personnel (including
Trust officers) and other resources that are necessary for the Trust's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Trust's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Trust were
satisfactory and consistent with the terms of the investment advisory
agreement.
Performance of the Trust
The Trustees considered the performance results of the Trust over various time
periods. They reviewed information comparing the Trust's performance with the
performance of its peer group of funds as classified by Morningstar, Inc.
(Morningstar), an independent provider of investment company data, and with the
performance of the Trust's benchmark index. The Trustees considered that the
Trust's annualized total return was in the third quintile of its Morningstar
category for the one and three year periods ended June 30, 2011. (In all
quintile rankings referred to throughout this disclosure, first quintile is
most favorable to the Trust's shareowners. Thus, highest relative performance
would be first quintile and lowest relative expenses would also be first
quintile.) The Trustees considered that the Trust's twelve month average gross
portfolio yield (using month end 30 day effective yields) exceeded the twelve
month average yield of the Trust's benchmark index. The Trustees also reviewed
data provided by PIM showing how leverage had benefited the Trust's common
shareholders. The Trustees concluded that the investment performance of the
Trust was satisfactory.
Management Fee and Expenses
The Trustees considered information on the fees and expenses of the Trust in
comparison to the management fees and the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party. The
Trustees considered that the Trust's management fee rate (based on managed
assets) for the twelve months ended June 30, 2011 was in the fifth quintile
relative to the management fees paid by other funds in its Strategic Insight
peer group for the comparable period. The Trustees also considered that the
Trust's expense ratio (based on managed assets) for the twelve months ended
June 30, 2011 was in the fifth quintile relative to its Strategic Insight peer
group for the
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 59
comparable period. The Trustees noted and discussed reasons that the Trust's
management fee and expense ratio were high relative to the management fees and
expense ratios of other funds in the Trust's peer group. The Trustees noted
that the Trust is a specialized fund and that additional research is required
in order to implement the Trust's investment strategy. The Trustees also
considered that the Trust did not have a clear cut peer group, noting that
other funds in the peer group invested primarily in traditional high yield
bonds.
The Trustees reviewed gross and net management fees charged by PIM to its
institutional and other clients, including publicly offered European funds,
U.S. registered investment companies (in a sub-advisory capacity), and
unaffiliated foreign and domestic separate accounts. The Trustees also
considered PIM's costs in providing services to the Trust and to its other
clients and considered the differences in management fees and profit margins
for PIM's Trust and non-Trust services. In evaluating the fees associated with
PIM's client accounts, the Trustees took into account the respective demands,
resources and complexity associated with the Trust and client accounts. The
Trustees noted that in some instances the fee rates for those clients were
lower than the management fee for the Trust and considered that, under the
investment advisory agreement with the Trust, PIM performs additional services
for the Trust that it does not provide to those other clients or services that
are broader in scope, including oversight of the Trust's other service
providers and activities related to compliance and the extensive regulatory and
tax regimes to which the Trust is subject. The Trustees also considered the
different entrepreneurial risks associated with PIM's management of the Trust
and the other client accounts. The Trustees concluded that the management fee
payable by the Trust to PIM was reasonable in relation to the nature and
quality of the services provided by PIM.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Trust,
including the methodology used by PIM in allocating certain of its costs to the
management of the Trust. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Trust. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Trust in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Trust
was not unreasonable.
Economies of Scale
The Trustees considered the extent to which PIM may realize economies of scale
or other efficiencies in managing and supporting the Trust. Since the Trust is
a closed-end fund that has not raised additional capital, the Trustees
60 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
concluded that economies of scale were not a relevant consideration in the
renewal of the investment advisory agreement.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with
the Trust. The Trustees considered the character and amount of fees paid by the
Trust, other than under the investment advisory agreement, for services
provided by PIM and its affiliates. The Trustees further considered the
revenues and profitability of PIM's businesses other than the fund business.
The Trustees considered the intangible benefits to PIM by virtue of its
relationship with the Trust and the other Pioneer funds. The Trustees concluded
that the receipt of these benefits was reasonable in the context of the overall
relationship between PIM and the Trust.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Trust, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Trust.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 61
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Legal Counsel
Bingham McCutchen LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Shareowner Services and Sub-Transfer Agent
American Stock Transfer & Trust Company
Sub-Administrator
State Street Bank and Trust Company
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Trust voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.pioneerinvestments.com. This information is also available
on the Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Trust's Trustees and officers are listed on the following pages, together
with their principal occupations during at least the past five years. Trustees
who are interested persons of the Trust within the meaning of the 1940 Act are
referred to as Interested Trustees. Trustees who are not interested persons of
the Trust are referred to as Independent Trustees. Each of the Trustees, except
Mr. West, serves as a trustee of each of the 56 U.S. registered investment
portfolios for which Pioneer serves as investment adviser (the "Pioneer
Funds"). Mr. West serves as a trustee of 44 U.S. registered investment
portfolios for which Pioneer serves as investment adviser. The address for all
Trustees and all officers of the Trust is 60 State Street, Boston,
Massachusetts 02109.
The Statement of Additional Information of the Trust includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
62 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
Interested Trustees
----------------------------------------------------------------------------
Position Held Length of Service
Name and Age With the Trust and Term of Office
----------------------------------------------------------------------------
John F. Cogan, Jr. (85)* Chairman of the Board, Class III Trustee since
Trustee and President 2007. Term expires in
2013.
----------------------------------------------------------------------------
Daniel K. Kingsbury (53)* Trustee and Executive Class I Trustee since
Vice President 2007. Term expires
in 2014.
----------------------------------------------------------------------------
Interested Trustees
-----------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation Held by this Trustee
-----------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (85)* Non-Executive Chairman and a director of Pioneer Investment None
Management USA Inc. ("PIM-USA"); Chairman and a director of
Pioneer; Chairman and Director of Pioneer Institutional Asset
Management, Inc. (since 2006); Director of Pioneer Alternative
Investment Management Limited (Dublin) (until October 2011);
President and a director of Pioneer Alternative Investment
Management (Bermuda) Limited and affiliated funds; Deputy
Chairman and a director of Pioneer Global Asset Management
S.p.A. ("PGAM") (until April 2010); Director of PIOGLOBAL Real
Estate Investment Fund (Russia) (until June 2006); Director of
Nano-C, Inc. (since 2003); Director of Cole Management Inc.
(2004 - 2011); Director of Fiduciary Counseling, Inc. (until
December 2001); President and Director of Pioneer Funds
Distributor, Inc. ("PFD") (until May 2006); President of all of
the Pioneer Funds; and Retired Partner, Wilmer Cutler Pickering
Hale and Dorr LLP
-----------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (53)* Director, CEO and President of PIM-USA (since February 2007); None
Director and President of Pioneer and Pioneer Institutional
Asset Management, Inc. (since February 2007); Executive Vice
President of all of the Pioneer Funds (since March 2007);
Director of PGAM (2007 - 2010); Head of New Europe Division,
PGAM (2000 - 2005); and Head of New Markets Division,
PGAM (2005 - 2007)
-----------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers
or directors of the Trust's investment adviser and certain of its affiliates.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 63
Independent Trustees
-------------------------------------------------------------
Position Held Length of Service
Name and Age With the Trust and Term of Office
-------------------------------------------------------------
David R. Bock (68) Trustee Class III Trustee since
2007. Term expires in
2013.
-------------------------------------------------------------
Mary K. Bush (63) Trustee Class II Trustee since
2007. Term expires in
2012.
Independent Trustees
--------------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation Held by this Trustee
--------------------------------------------------------------------------------------------------------------------------------
David R. Bock (68) Managing Partner, Federal City Capital Advisors (corporate Director of Enterprise
advisory services company) (1997 - 2004 and 2008 - present); Community Investment, Inc.
Interim Chief Executive Officer, Oxford Analytica, Inc. (privately (privately held affordable
held research and consulting company) (2010); Executive Vice housing finance company)
President and Chief Financial Officer, I-trax, Inc. (publicly traded (1985 - 2010); Director of
health care services company) (2004 - 2007); and Executive Oxford Analytica, Inc.
Vice President and Chief Financial Officer, Pedestal Inc. (2008 - present); Director
(internet-based mortgage trading company) (2000 - 2002) of The Swiss Helvetia Fund,
Inc. (closed-end fund)
(2010 - present); and
Director of New York
Mortgage Trust (publicly traded
mortgage REIT) (2004 -
2009, 2012 - present)
--------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (63) Chairman, Bush International, LLC (international financial Director of Marriott International,
advisory firm) (1991 - present); Senior Managing Director, Brock Inc. (2008 - present); Director
Capital Group, LLC (strategic business advisors) (2010 - of Discover Financial Services
present); Managing Director, Federal Housing Finance Board (over- (credit card issuer and
sight of Federal Home Loan Bank system) (1989 - 1991); Vice electronic payment services)
President and Head of International Finance, Federal National (2007 - present); Former
Mortgage Association (1988 - 1989); U.S. Alternate Executive Director of Briggs & Stratton Co.
Director, International Monetary Fund (1984 - 1988); Executive (engine manufacturer)
Assistant to Deputy Secretary of the U.S. Treasury, U.S. Treasury (2004 - 2009); Former
Department (1982 - 1984); and Vice President and Team Director of UAL Corporation
Leader in Corporate Banking, Bankers Trust Co. (1976 - 1982) (airline holding company)
64 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
--------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Other Directorships
Name and Age With the Trust and Term of Office Principal Occupation Held by this Trustee
--------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (continued) (2006 - 2010); Director of
ManTech International
Corporation (national security,
defense, and intelligence
technology firm) (2006 -
present); Member, Board of
Governors, Investment Company
Institute (2007 - present);
Member, Board of Governors,
Independent Directors Council
(2007 - present); Former
Director of Brady Corporation
(2000 - 2007); Former Director of
Mortgage Guaranty Insurance
Corporation (1991 - 2006);
Former Director of Millennium
Chemicals, Inc. (commodity
chemicals) (2002 - 2005); Former
Director, R.J. Reynolds
Tobacco Holdings, Inc.
(tobacco) (1999 - 2005);
and Former Director of
Texaco, Inc. (1997 - 2001)
--------------------------------------------------------------------------------------------------------------------------
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 65
Independent Trustees (continued)
----------------------------------------------------------------------
Position Held Length of Service
Name and Age With the Trust and Term of Office
----------------------------------------------------------------------
Benjamin M. Friedman (67) Trustee Class I Trustee since
2008. Term expires in
2014.
----------------------------------------------------------------------
Margaret B.W. Graham (64) Trustee Class I Trustee since
2007. Term expires in
2014.
----------------------------------------------------------------------
Thomas J. Perna (61) Trustee Class II Trustee since
2007. Term expires in
2012.
----------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation Held by this Trustee
-----------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (67) William Joseph Maier Professor of Political Economy, Harvard Trustee, Mellon Institutional
University (1972 - present) Funds Investment Trust and
Mellon Institutional Funds
Master Portfolio (oversaw
17 portfolios in fund
complex) (1989 - 2008)
-----------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (64) Founding Director, Vice President and Corporate Secretary, The None
Winthrop Group, Inc. (consulting firm) (1982 - present);
Desautels Faculty of Management, McGill University (1999 -
present); and Manager of Research Operations and Organizational
Learning, Xerox PARC, Xerox's Advance Research Center
(1990 - 1994)
-----------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (61) Chairman and Chief Executive Officer, Quadriserv, Inc. Director, Broadridge Financial
(technology products for securities lending industry) Solutions, Inc. (investor
(2008 - present); private investor (2004 - 2008); and communications and securities
Senior Executive Vice President, The Bank of New York processing provider for
(financial and securities services) (1986 - 2004) financial services industry)
(2009 - present); Director,
Quadriserv, Inc. (2005 -
present); and Commissioner,
New Jersey State Civil Service
Commission (2011 - present)
-----------------------------------------------------------------------------------------------------------------------------
66 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
------------------------------------------------------------------
Position Held Length of Service
Name and Age With the Trust and Term of Office
------------------------------------------------------------------
Marguerite A. Piret (63) Trustee Class II Trustee since
2007. Term expires in
2012.
------------------------------------------------------------------
Stephen K. West (83) Trustee Class II Trustee since
2007. Term expires
in 2013.
------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation Held by this Trustee
--------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (63) President and Chief Executive Officer, Newbury, Piret & Company, Director of New America
Inc. (investment banking firm) (1981 - present) High Income Fund, Inc.
(closed-end investment
company) (2004 - present);
and member, Board of Gov-
ernors, Investment Company
Institute (2000 - 2006)
--------------------------------------------------------------------------------------------------------------------------
Stephen K. West (83) Senior Counsel, Sullivan & Cromwell LLP (law firm) (1998 - Director, The Swiss Helvetia
present); and Partner, Sullivan & Cromwell LLP (prior to 1998) Fund, Inc. (closed-end
investment company); and
Director, Invesco, Ltd.
(formerly AMVESCAP, PLC)
(investment manager)
(1997 - 2005)
--------------------------------------------------------------------------------------------------------------------------
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 67
Trust Officers
------------------------------------------------------------------------
Position Held Length of Service
Name and Age With the Trust and Term of Office
------------------------------------------------------------------------
Christopher J. Kelley (47) Secretary Since 2010. Serves at
the discretion of the
Board.
------------------------------------------------------------------------
Carol B. Hannigan (51) Assistant Secretary Since 2010. Serves at
the discretion of the
Board.
------------------------------------------------------------------------
Thomas Reyes (49) Assistant Secretary Since 2010. Serves at
the discretion of the
Board.
------------------------------------------------------------------------
Mark E. Bradley (52) Treasurer Since 2008. Serves at
the discretion of the
Board.
------------------------------------------------------------------------
Luis I. Presutti (46) Assistant Treasurer Since 2007. Serves at
the discretion of the
Board.
------------------------------------------------------------------------
Gary Sullivan (53) Assistant Treasurer Since 2007. Serves at
the discretion of the
Board.
------------------------------------------------------------------------
Trust Officers
----------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation Held by this Officer
----------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (47) Vice President and Associate General Counsel of Pioneer since None
January 2008 and Secretary of all of the Pioneer Funds since
June 2010; Assistant Secretary of all of the Pioneer Funds from
September 2003 to May 2010; and Vice President and Senior
Counsel of Pioneer from July 2002 to December 2007
----------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (51) Fund Governance Director of Pioneer since December 2006 and None
Assistant Secretary of all the Pioneer Funds since June 2010;
Manager -- Fund Governance of Pioneer from December 2003 to
November 2006; and Senior Paralegal of Pioneer from January
2000 to November 2003
----------------------------------------------------------------------------------------------------------------------
Thomas Reyes (49) Counsel of Pioneer since June 2007 and Assistant Secretary of None
all the Pioneer Funds since June 2010; and Vice President and
Counsel at State Street Bank from October 2004 to June 2007
----------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (52) Vice President -- Fund Accounting, Administration and Controller- None
ship Services of Pioneer; Treasurer of all of the Pioneer Funds
since March 2008; Deputy Treasurer of Pioneer from March 2004
to February 2008; and Assistant Treasurer of all of the Pioneer
Funds from March 2004 to February 2008
----------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (46) Assistant Vice President -- Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
----------------------------------------------------------------------------------------------------------------------
Gary Sullivan (53) Fund Accounting Manager -- Fund Accounting, Administration None
and Controllership Services of Pioneer; and Assistant Treasurer of
all of the Pioneer Funds
----------------------------------------------------------------------------------------------------------------------
68 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
------------------------------------------------------------------------
Position Held Length of Service
Name and Age With the Trust and Term of Office
------------------------------------------------------------------------
David F. Johnson (32) Assistant Treasurer Since 2009. Serves at
the discretion of the
Board.
------------------------------------------------------------------------
Jean M. Bradley (59) Chief Compliance Officer Since 2010. Serves at
the discretion of the
Board.
------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation Held by this Officer
----------------------------------------------------------------------------------------------------------------
David F. Johnson (32) Fund Administration Manager -- Fund Accounting, Administration None
and Controllership Services since November 2008; Assistant
Treasurer of all of the Pioneer Funds since January 2009; and
Client Service Manager -- Institutional Investor Services at State
Street Bank from March 2003 to March 2007
----------------------------------------------------------------------------------------------------------------
Jean M. Bradley (59) Chief Compliance Officer of Pioneer and of all the Pioneer Funds None
since March 2010; Director of Adviser and Portfolio Compliance
at Pioneer since October 2005; and Senior Compliance Officer
for Columbia Management Advisers, Inc. from October 2003 to
October 2005
----------------------------------------------------------------------------------------------------------------
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 69
This page for your notes.
70 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
This page for your notes.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 71
This page for your notes.
72 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
This page for your notes.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 73
This page for your notes.
74 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
This page for your notes.
Pioneer Diversified High Income Trust | Annual Report | 4/30/12 75
This page for your notes.
76 Pioneer Diversified High Income Trust | Annual Report | 4/30/12
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
web site us.pioneerinvestments.com.
The Trust files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form also may 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.
Audit Fees
Fees for audit services provided to the Trust, including
fees associated with the filings to update its Form N-2
and issuance of comfort letters, totaled approximately
$51,700 in 2012 and $51,700 in 2011.
(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.
Audit-Related Fees
There were no audit-related fees for 2012
and 2011.
(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.
Tax Fees
Fees for tax compliance services, primarily for tax
returns, totaled approximately $8,290 and $8,290 for
2012 and 2011, respectively.
(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.
Other Fees
There were no other fees for 2012
and 2011.
(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.
Non-Audit Services
Beginning with non-audit service contracts entered into
on or after May 6, 2003, the effective date of the new
SEC pre-approval rules, the Trust's audit committee is
required to pre-approve services to affiliates defined by
SEC rules to the extent that the services are determined
to have a direct impact on the operations or financial
reporting of the Trust. For the years ended April 30,
2012 and 2011, there were no services provided to an
affiliate that required the Trust's audit committee pre-
approval.
(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.
The aggregate non-audit fees for the Trust and affiliates,
as previously defined, totaled approximately $8,290 in
2012 and $8,290 in 2011.
(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 Trust'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
committee established 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.
Proxy Voting Policies and Procedures of
Pioneer Investment Management, Inc.
VERSION DATED July, 2004
Overview
Pioneer Investment Management, Inc. ("Pioneer") is a fiduciary that owes
each of its client's duties of care and loyalty with respect to all
services undertaken on the client's behalf, including proxy voting. When
Pioneer has been delegated proxy-voting authority for a client, the duty of
care requires Pioneer to monitor corporate events and to vote the proxies.
To satisfy its duty of loyalty, Pioneer must place its client's interests
ahead of its own and must cast proxy votes in a manner consistent with the
best interest of its clients. Pioneer will vote all proxies presented in a
timely manner.
The Proxy Voting Policies and Procedures are designed to complement
Pioneer's investment policies and procedures regarding its general
responsibility to monitor the performance and/or corporate events of
companies that are issuers of securities held in accounts managed by
Pioneer. Pioneer's Proxy Voting Policies summarize Pioneer's position on a
number of issues solicited by companies held by Pioneer's clients. The
policies are guidelines that provide a general indication on how Pioneer
would vote but do not include all potential voting scenarios.
Pioneer's Proxy Voting Procedures detail monitoring of voting, exception
votes, and review of conflicts of interest and ensure that case-by-case
votes are handled within the context of the overall guidelines (i.e. best
interest of client). The overriding goal is that all proxies for US and
non-US companies that are received promptly will be voted in accordance
with Pioneer's policies or specific client instructions. All shares in a
company held by Pioneer-managed accounts will be voted alike, unless a
client has given us specific voting instructions on an issue or has not
delegated authority to us or the Proxy Voting Oversight Group determines
that the circumstances justify a different approach.
Pioneer does not delegate the authority to vote proxies relating to its
clients to any of its affiliates, which include other subsidiaries of
UniCredito.
Any questions about these policies and procedures should be directed to the
Proxy Coordinator.
1
Proxy Voting Procedures
Proxy Voting Service
Pioneer has engaged an independent proxy voting service to assist in the
voting of proxies. The proxy voting service works with custodians to ensure
that all proxy materials are received by the custodians and are processed
in a timely fashion. To the extent applicable, the proxy voting service
votes all proxies in accordance with the proxy voting policies established
by Pioneer. The proxy voting service will refer proxy questions to the
Proxy Coordinator (described below) for instructions under circumstances
where: (1) the application of the proxy voting guidelines is unclear; (2) a
particular proxy question is not covered by the guidelines; or (3) the
guidelines call for specific instructions on a case-by-case basis. The
proxy voting service is also requested to call to the Proxy Coordinator's
attention specific proxy questions that, while governed by a guideline,
appear to involve unusual or controversial issues. Pioneer reserves the
right to attend a meeting in person and may do so when it determines that
the company or the matters to be voted on at the meeting are strategically
important to its clients.
Proxy Coordinator
Pioneer's Director of Investment Operations (the "Proxy Coordinator")
coordinates the voting, procedures and reporting of proxies on behalf of
Pioneer's clients. The Proxy Coordinator will deal directly with the proxy
voting service and, in the case of proxy questions referred by the proxy
voting service, will solicit voting recommendations and instructions from
the Director of Portfolio Management US or, to the extent applicable,
investment sub-advisers. The Proxy Coordinator is responsible for ensuring
that these questions and referrals are responded to in a timely fashion and
for transmitting appropriate voting instructions to the proxy voting
service. The Proxy Coordinator is responsible for verifying with the
Compliance Department whether Pioneer's voting power is subject to any
limitations or guidelines issued by the client (or in the case of an
employee benefit plan, the plan's trustee or other fiduciaries).
Referral Items
From time to time, the proxy voting service will refer proxy questions to
the Proxy Coordinator that are described by Pioneer's policy as to be voted
on a case-by-case basis, that are not covered by Pioneer's guidelines or
where Pioneer's guidelines may be unclear with respect to the matter to be
voted on. Under such certain circumstances, the Proxy Coordinator will seek
a written voting recommendation from the Director of Portfolio Management
US. Any such recommendation will include: (i) the manner in which the
proxies should be voted; (ii) the rationale underlying any such decision;
and (iii) the disclosure of any contacts or communications made between
Pioneer and any outside parties concerning the proxy proposal prior to the
time that the voting instructions are provided. In addition, the Proxy
Coordinator will ask the Compliance Department to review the question for
any actual or apparent conflicts of interest as described below under
"Conflicts of
2
Interest." The Compliance Department will provide a "Conflicts of Interest
Report," applying the criteria set forth below under "Conflicts of
Interest," to the Proxy Coordinator summarizing the results of its review.
In the absence of a conflict of interest, the Proxy Coordinator will vote
in accordance with the recommendation of the Director of Portfolio
Management US.
If the matter presents a conflict of interest for Pioneer, then the Proxy
Coordinator will refer the matter to the Proxy Voting Oversight Group for a
decision. In general, when a conflict of interest is present, Pioneer will
vote according to the recommendation of the Director of Portfolio
Management US where such recommendation would go against Pioneer's interest
or where the conflict is deemed to be immaterial. Pioneer will vote
according to the recommendation of its proxy voting service when the
conflict is deemed to be material and the Pioneer's internal vote
recommendation would favor Pioneer's interest, unless a client specifically
requests Pioneer to do otherwise. When making the final determination as to
how to vote a proxy, the Proxy Voting Oversight Group will review the
report from the Director of Portfolio Management US and the Conflicts of
Interest Report issued by the Compliance Department.
Conflicts of Interest
A conflict of interest occurs when Pioneer's interests interfere, or appear
to interfere with the interests of Pioneer's clients. Occasionally, Pioneer
may have a conflict that can affect how its votes proxies. The conflict may
be actual or perceived and may exist when the matter to be voted on
concerns:
o An affiliate of Pioneer, such as another company belonging to
the UniCredito Italiano S.p.A. banking group (a "UniCredito
Affiliate");
o An issuer of a security for which Pioneer acts as a sponsor,
advisor, manager, custodian, distributor, underwriter, broker, or
other similar capacity (including those securities specifically
declared by PGAM to present a conflict of interest for Pioneer);
o An issuer of a security for which UniCredito has informed Pioneer
that a UniCredito Affiliate acts as a sponsor, advisor, manager,
custodian, distributor, underwriter, broker, or other similar
capacity; or
o A person with whom Pioneer (or any of its affiliates) has an
existing, material contract or business relationship that was not
entered into in the ordinary course of Pioneer's business.
o Pioneer will abstain from voting with respect to companies
directly or indirectly owned by UniCredito Italiano Group, unless
otherwise directed by a client. In addition, Pioneer will inform
PGAM Global Compliance and the PGAM Independent Directors before
exercising such rights.
Any associate involved in the proxy voting process with knowledge of any
apparent or actual conflict of interest must disclose such conflict to the
Proxy Coordinator and the Compliance Department. The Compliance Department
will review each item referred to Pioneer to determine whether an actual or
potential conflict of interest with Pioneer exists in connection with the
proposal(s) to be voted upon. The review will be conducted by comparing the
apparent parties affected by the proxy proposal being
3
voted upon against the Compliance Department's internal list of interested
persons and, for any matches found, evaluating the anticipated magnitude
and possible probability of any conflict of interest being present. For
each referral item, the determination regarding the presence or absence of
any actual or potential conflict of interest will be documented in a
Conflicts of Interest Report to the Proxy Coordinator.
Securities Lending
In conjunction with industry standards Proxies are not available to be
voted when the shares are out on loan through either Pioneer's lending
program or a client's managed security lending program. However, Pioneer
will reserve the right to recall lent securities so that they may be voted
according to the Pioneer's instructions. If a portfolio manager would like
to vote a block of previously lent shares, the Proxy Coordinator will work
with the portfolio manager and Investment Operations to recall the
security, to the extent possible, to facilitate the vote on the entire
block of shares.
Share-Blocking
"Share-blocking" is a market practice whereby shares are sent to a
custodian (which may be different than the account custodian) for record
keeping and voting at the general meeting. The shares are unavailable for
sale or delivery until the end of the blocking period (typically the day
after general meeting date).
Pioneer will vote in those countries with "share-blocking." In the event a
manager would like to sell a security with "share-blocking", the Proxy
Coordinator will work with the Portfolio Manager and Investment Operations
Department to recall the shares (as allowable within the market time-frame
and practices) and/or communicate with executing brokerage firm. A list of
countries with "share-blocking" is available from the Investment Operations
Department upon request.
Record Keeping
The Proxy Coordinator shall ensure that Pioneer's proxy voting service:
o Retains a copy of the proxy statement received (unless the proxy
statement is available from the SEC's Electronic Data Gathering,
Analysis, and Retrieval (EDGAR) system);
o Retains a record of the vote cast;
o Prepares Form N-PX for filing on behalf of each client that is a
registered investment company; and
o Is able to promptly provide Pioneer with a copy of the voting
record upon its request.
4
The Proxy Coordinator shall ensure that for those votes that may require
additional documentation (i.e. conflicts of interest, exception votes and
case-by-case votes) the following records are maintained:
o A record memorializing the basis for each referral vote cast;
o A copy of any document created by Pioneer that was material in
making the decision on how to vote the subject proxy; and
o A copy of any conflict notice, conflict consent or any other
written communication (including emails or other electronic
communications) to or from the client (or in the case of an
employee benefit plan, the plan's trustee or other fiduciaries)
regarding the subject proxy vote cast by, or the vote
recommendation of, Pioneer.
o Pioneer shall maintain the above records in the client's file for a
period not less than ten (10) years.
Disclosure
Pioneer shall take reasonable measures to inform its clients of the process
or procedures clients must follow to obtain information regarding how
Pioneer voted with respect to assets held in their accounts. In addition,
Pioneer shall describe to clients its proxy voting policies and procedures
and will furnish a copy of its proxy voting policies and procedures upon
request. This information may be provided to clients through Pioneer's Form
ADV (Part II) disclosure, by separate notice to the client, or through
Pioneer's website.
Proxy Voting Oversight Group
The members of the Proxy Voting Oversight Group are Pioneer's: Director of
Portfolio Management US, Head of Investment Operations, and Director of
Compliance. Other members of Pioneer will be invited to attend meetings and
otherwise participate as necessary. The Head of Investment Operations will
chair the Proxy Voting Oversight Group.
The Proxy Voting Oversight Group is responsible for developing, evaluating,
and changing (when necessary) Pioneer's Proxy Voting Policies and
Procedures. The group meets at least annually to evaluate and review these
policies and procedures and the services of its third-party proxy voting
service. In addition, the Proxy Voting Oversight Group will meet as
necessary to vote on referral items and address other business as
necessary.
Amendments
Pioneer may not amend its Proxy Voting Policies And Procedures without the
prior approval of the Proxy Voting Oversight Group and its corporate
parent, Pioneer Global Asset Management S.p.A
5
Proxy Voting Policies
Pioneer's sole concern in voting proxies is the economic effect of the
proposal on the value of portfolio holdings, considering both the short-
and long-term impact. In many instances, Pioneer believes that supporting
the company's strategy and voting "for" management's proposals builds
portfolio value. In other cases, however, proposals set forth by management
may have a negative effect on that value, while some shareholder proposals
may hold the best prospects for enhancing it. Pioneer monitors developments
in the proxy-voting arena and will revise this policy as needed.
All proxies that are received promptly will be voted in accordance with the
specific policies listed below. All shares in a company held by
Pioneer-managed accounts will be voted alike, unless a client has given us
specific voting instructions on an issue or has not delegated authority to
us. Proxy voting issues will be reviewed by Pioneer's Proxy Voting
Oversight Group, which consists of the Director of Portfolio Management US,
the Director of Investment Operations (the Proxy Coordinator), and the
Director of Compliance.
Pioneer has established Proxy Voting Procedures for identifying and
reviewing conflicts of interest that may arise in the voting of proxies.
Clients may request, at any time, a report on proxy votes for securities
held in their portfolios and Pioneer is happy to discuss our proxy votes
with company management. Pioneer retains a proxy voting service to provide
research on proxy issues and to process proxy votes.
Administrative
While administrative items appear infrequently in U.S. issuer proxies, they
are quite common in non-U.S. proxies.
We will generally support these and similar management proposals:
o Corporate name change.
o A change of corporate headquarters.
o Stock exchange listing.
o Establishment of time and place of annual meeting.
o Adjournment or postponement of annual meeting.
o Acceptance/approval of financial statements.
o Approval of dividend payments, dividend reinvestment plans and other
dividend-related proposals.
o Approval of minutes and other formalities.
6
o Authorization of the transferring of reserves and allocation of
income.
o Amendments to authorized signatories.
o Approval of accounting method changes or change in fiscal year-end.
o Acceptance of labor agreements.
o Appointment of internal auditors.
Pioneer will vote on a case-by-case basis on other routine business;
however, Pioneer will oppose any routine business proposal if insufficient
information is presented in advance to allow Pioneer to judge the merit of
the proposal. Pioneer has also instructed its proxy voting service to
inform Pioneer of its analysis of any administrative items inconsistent, in
its view, with supporting the value of Pioneer portfolio holdings so that
Pioneer may consider and vote on those items on a case-by-case basis.
Auditors
We normally vote for proposals to:
o Ratify the auditors. We will consider a vote against if we are
concerned about the auditors' independence or their past work for
the company. Specifically, we will oppose the ratification of
auditors and withhold votes from audit committee members if
non-audit fees paid by the company to the auditing firm exceed the
sum of audit fees plus audit-related fees plus permissible tax
fees according to the disclosure categories proposed by the
Securities and Exchange Commission.
o Restore shareholder rights to ratify the auditors.
We will normally oppose proposals that require companies to:
o Seek bids from other auditors.
o Rotate auditing firms, except where the rotation is statutorily
required or where rotation would demonstrably strengthen financial
disclosure.
o Indemnify auditors.
o Prohibit auditors from engaging in non-audit services for the
company.
Board of Directors
On issues related to the board of directors, Pioneer normally supports
management. We will, however, consider a vote against management in
instances where corporate performance has been very poor or where the board
appears to lack independence.
7
General Board Issues
Pioneer will vote for:
o Audit, compensation and nominating committees composed of
independent directors exclusively.
o Indemnification for directors for actions taken in good faith in
accordance with the business judgment rule. We will vote against
proposals for broader indemnification.
o Changes in board size that appear to have a legitimate business
purpose and are not primarily for anti-takeover reasons.
o Election of an honorary director.
We will vote against:
o Minimum stock ownership by directors.
o Term limits for directors. Companies benefit from experienced
directors, and shareholder control is better achieved through
annual votes.
o Requirements for union or special interest representation on the
board.
o Requirements to provide two candidates for each board seat.
We will vote on a case-by case basis on these issues:
o Separate chairman and CEO positions. We will consider voting with
shareholders on these issues in cases of poor corporate
performance.
Elections of Directors
In uncontested elections of directors we will vote against:
o Individual directors with absenteeism above 25% without valid
reason. We support proposals that require disclosure of director
attendance.
o Insider directors and affiliated outsiders who sit on the audit,
compensation, stock option or nominating committees. For the
purposes of our policy, we accept the definition of affiliated
directors provided by our proxy voting service.
We will also vote against:
o Directors who have failed to act on a takeover offer where the
majority of shareholders have tendered their shares.
o Directors who appear to lack independence or are associated with
very poor corporate performance.
8
We will vote on a case-by case basis on these issues:
o Re-election of directors who have implemented or renewed a
dead-hand or modified dead-hand poison pill (a "dead-hand poison
pill" is a shareholder rights plan that may be altered only by
incumbent or "dead " directors. These plans prevent a potential
acquirer from disabling a poison pill by obtaining control of the
board through a proxy vote).
o Contested election of directors.
o Prior to phase-in required by SEC, we would consider supporting
election of a majority of independent directors in cases of poor
performance.
o Mandatory retirement policies.
o Directors who have ignored a shareholder proposal that has been
approved by shareholders for two consecutive years.
Takeover-Related Measures
Pioneer is generally opposed to proposals that may discourage takeover
attempts. We believe that the potential for a takeover helps ensure that
corporate performance remains high.
Pioneer will vote for:
o Cumulative voting.
o Increase ability for shareholders to call special meetings.
o Increase ability for shareholders to act by written consent.
o Restrictions on the ability to make greenmail payments.
o Submitting rights plans to shareholder vote.
o Rescinding shareholder rights plans ("poison pills").
o Opting out of the following state takeover statutes:
o Control share acquisition statutes, which deny large holders voting
rights on holdings over a specified threshold.
o Control share cash-out provisions, which require large holders to
acquire shares from other holders.
o Freeze-out provisions, which impose a waiting period on large
holders before they can attempt to gain control.
o Stakeholder laws, which permit directors to consider interests of
non-shareholder constituencies.
9
o Disgorgement provisions, which require acquirers to disgorge profits
on purchases made before gaining control.
o Fair price provisions.
o Authorization of shareholder rights plans.
o Labor protection provisions.
o Mandatory classified boards.
We will vote on a case-by-case basis on the following issues:
o Fair price provisions. We will vote against provisions requiring
supermajority votes to approve takeovers. We will also consider
voting against proposals that require a supermajority vote to
repeal or amend the provision. Finally, we will consider the
mechanism used to determine the fair price; we are generally
opposed to complicated formulas or requirements to pay a premium.
o Opting out of state takeover statutes regarding fair price
provisions. We will use the criteria used for fair price
provisions in general to determine our vote on this issue.
o Proposals that allow shareholders to nominate directors.
We will vote against:
o Classified boards, except in the case of closed-end mutual funds.
o Limiting shareholder ability to remove or appoint directors. We
will support proposals to restore shareholder authority in this
area. We will review on a case-by-case basis proposals that
authorize the board to make interim appointments.
o Classes of shares with unequal voting rights.
o Supermajority vote requirements.
o Severance packages ("golden" and "tin" parachutes). We will support
proposals to put these packages to shareholder vote.
o Reimbursement of dissident proxy solicitation expenses. While we
ordinarily support measures that encourage takeover bids, we
believe that management should have full control over corporate
funds.
o Extension of advance notice requirements for shareholder proposals.
o Granting board authority normally retained by shareholders (e.g.,
amend charter, set board size).
o Shareholder rights plans ("poison pills"). These plans generally
allow shareholders to buy additional shares at a below-market
price in the event of a change in control and may deter some bids.
10
Capital Structure
Managements need considerable flexibility in determining the company's
financial structure, and Pioneer normally supports managements' proposals
in this area. We will, however, reject proposals that impose high barriers
to potential takeovers.
Pioneer will vote for:
o Changes in par value.
o Reverse splits, if accompanied by a reduction in number of shares.
o Share repurchase programs, if all shareholders may participate on
equal terms.
o Bond issuance.
o Increases in "ordinary" preferred stock.
o Proposals to have blank-check common stock placements (other than
shares issued in the normal course of business) submitted for
shareholder approval.
o Cancellation of company treasury shares.
We will vote on a case-by-case basis on the following issues:
o Reverse splits not accompanied by a reduction in number of shares,
considering the risk of delisting.
o Increase in authorized common stock. We will make a determination
considering, among other factors:
o Number of shares currently available for issuance;
o Size of requested increase (we would normally approve increases of up to
100% of current authorization);
o Proposed use of the additional shares; and
o Potential consequences of a failure to increase the number of shares
outstanding (e.g., delisting or bankruptcy).
o Blank-check preferred. We will normally oppose issuance of a new
class of blank-check preferred, but may approve an increase in a
class already outstanding if the company has demonstrated that it
uses this flexibility appropriately.
o Proposals to submit private placements to shareholder vote.
o Other financing plans.
We will vote against preemptive rights that we believe limit a company's
financing flexibility.
11
Compensation
Pioneer supports compensation plans that link pay to shareholder returns
and believes that management has the best understanding of the level of
compensation needed to attract and retain qualified people. At the same
time, stock-related compensation plans have a significant economic impact
and a direct effect on the balance sheet. Therefore, while we do not want
to micromanage a company's compensation programs, we will place limits on
the potential dilution these plans may impose.
Pioneer will vote for:
o 401(k) benefit plans.
o Employee stock ownership plans (ESOPs), as long as shares
allocated to ESOPs are less than 5% of outstanding shares. Larger
blocks of stock in ESOPs can serve as a takeover defense. We will
support proposals to submit ESOPs to shareholder vote.
o Various issues related to the Omnibus Budget and Reconciliation Act
of 1993 (OBRA), including:
o Amendments to performance plans to conform with OBRA;
o Caps on annual grants or amendments of administrative features;
o Adding performance goals; and
o Cash or cash-and-stock bonus plans.
o Establish a process to link pay, including stock-option grants, to
performance, leaving specifics of implementation to the company.
o Require that option repricings be submitted to shareholders.
o Require the expensing of stock-option awards.
o Require reporting of executive retirement benefits (deferred
compensation, split-dollar life insurance, SERPs, and pension
benefits).
o Employee stock purchase plans where the purchase price is equal to
at least 85% of the market price, where the offering period is no
greater than 27 months and where potential dilution (as defined
below) is no greater than 10%.
12
We will vote on a case-by-case basis on the following issues:
o Executive and director stock-related compensation plans. We will
consider the following factors when reviewing these plans:
o The program must be of a reasonable size. We will approve plans
where the combined employee and director plans together would
generate less than 15% dilution. We will reject plans with 15% or
more potential dilution.
Dilution = (A + B + C) / (A + B + C + D), where
A = Shares reserved for plan/amendment,
B = Shares available under continuing plans,
C = Shares granted but unexercised and
D = Shares outstanding.
o The plan must not:
o Explicitly permit unlimited option repricing authority or that
have repriced in the past without shareholder approval.
o Be a self-replenishing "evergreen" plan, plans that grant
discount options and tax offset payments.
o We are generally in favor of proposals that increase participation beyond
executives.
o We generally support proposals asking companies to adopt rigorous
vesting provisions for stock option plans such as those that vest
incrementally over, at least, a three- or four-year period with a pro
rata portion of the shares becoming exercisable on an annual basis
following grant date.
o We generally support proposals asking companies to disclose their
window period policies for stock transactions. Window period policies
ensure that employees do not exercise options based on insider
information contemporaneous with quarterly earnings releases and other
material corporate announcements.
o We generally support proposals asking companies to adopt stock holding
periods for their executives.
o All other employee stock purchase plans.
o All other compensation-related proposals, including deferred
compensation plans, employment agreements, loan guarantee programs
and retirement plans.
o All other proposals regarding stock compensation plans, including
extending the life of a plan, changing vesting restrictions,
repricing options, lengthening exercise periods or accelerating
distribution of awards and pyramiding and cashless exercise
programs.
13
We will vote against:
o Pensions for non-employee directors. We believe these retirement
plans reduce director objectivity.
o Elimination of stock option plans.
We will vote on a case-by case basis on these issues:
o Limits on executive and director pay.
o Stock in lieu of cash compensation for directors.
Corporate Governance
Pioneer will vote for:
o Confidential Voting.
o Equal access provisions, which allow shareholders to contribute
their opinion to proxy materials.
o Proposals requiring directors to disclose their ownership of shares
in the company.
We will vote on a case-by-case basis on the following issues:
o Change in the state of incorporation. We will support
reincorporations supported by valid business reasons. We will
oppose those that appear to be solely for the purpose of
strengthening takeover defenses.
o Bundled proposals. We will evaluate the overall impact of the
proposal.
o Adopting or amending the charter, bylaws or articles of association.
o Shareholder appraisal rights, which allow shareholders to demand
judicial review of an acquisition price.
We will vote against:
o Shareholder advisory committees. While management should solicit
shareholder input, we prefer to leave the method of doing so to
management's discretion.
o Limitations on stock ownership or voting rights.
o Reduction in share ownership disclosure guidelines.
14
Mergers and Restructurings
Pioneer will vote on the following and similar issues on a case-by-case
basis:
o Mergers and acquisitions.
o Corporate restructurings, including spin-offs, liquidations, asset
sales, joint ventures, conversions to holding company and
conversions to self-managed REIT structure.
o Debt restructurings.
o Conversion of securities.
o Issuance of shares to facilitate a merger.
o Private placements, warrants, convertible debentures.
o Proposals requiring management to inform shareholders of merger
opportunities.
We will normally vote against shareholder proposals requiring that the
company be put up for sale.
Mutual Funds
Many of our portfolios may invest in shares of closed-end mutual funds or
exchange-traded funds. The non-corporate structure of these investments
raises several unique proxy voting issues.
Pioneer will vote for:
o Establishment of new classes or series of shares.
o Establishment of a master-feeder structure.
Pioneer will vote on a case-by-case on:
o Changes in investment policy. We will normally support changes
that do not affect the investment objective or overall risk level
of the fund. We will examine more fundamental changes on a
case-by-case basis.
o Approval of new or amended advisory contracts.
o Changes from closed-end to open-end format.
o Authorization for, or increase in, preferred shares.
o Disposition of assets, termination, liquidation, or mergers.
o Classified boards of closed-end mutual funds, but will typically
support such proposals.
15
Social Issues
Pioneer will abstain on stockholder proposals calling for greater
disclosure of corporate activities with regard to social issues. "Social
Issues" may generally be described as shareholder proposals for a company
to:
o Conduct studies regarding certain issues of public concern and
interest;
o Study the feasibility of the company taking certain actions with
regard to such issues; or
o Take specific action, including ceasing certain behavior and
adopting company standards and principles, in relation to issues
of public concern and interest.
We believe these issues are important and should receive management
attention.
Pioneer will vote against proposals calling for substantial changes in the
company's business or activities. We will also normally vote against
proposals with regard to contributions, believing that management should
control the routine disbursement of funds.
16
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.
PORTFOLIO MANAGEMENT
ADDITIONAL INFORMATION ABOUT THE PORTFOLIO MANAGERS
OTHER ACCOUNTS MANAGED BY THE PORTFOLIO MANAGERS. The table below indicates,
for each portfolio manager of the fund, information about the accounts other
than the fund over which the portfolio manager has day-to-day investment
responsibility. All information on the number of accounts and total assets in
the table is as of April 30, 2012. For purposes of the table, "Other Pooled
Investment Vehicles" may include investment partnerships, undertakings for
collective investments in transferable securities ("UCITS") and other non-U.S.
investment funds and group trusts, and "Other Accounts" may include separate
accounts for institutions or individuals, insurance company general or separate
accounts, pension funds and other similar institutional accounts but generally
do not include the portfolio manager's personal investment accounts or those
which the manager may be deemed to own beneficially under the code of ethics.
Certain funds and other accounts managed by the portfolio manager may have
substantially similar investment strategies.
NAME OF PORTFOLIO MANAGER TYPE OF ACCOUNT NUMBER OF ACCOUNTS MANAGED
------------------------- --------------- --------------------------
TOTAL ASSETS MANAGED NUMBER OF ACCOUNTS MANAGED FOR WHICH ADVISORY FEE IS
-------------------- ----------------------------------------------------
PERFORMANCE-BASED ASSETS MANAGED FOR WHICH ADVISORY FEE IS PERFORMANCE-BASED
----------------- ----------------------------------------------------------
Charles Melchreit
-----------------
Other Registered Investment Companies 4 $642,633,000 N/A
------------------------------------- - ------------ ---
N/A
---
Other Pooled Investment Vehicles 2 $466,479,000 N/A N/A
-------------------------------- - ------------ --- ---
Other Accounts 2 $1,063,841,000 N/A N/A
-------------- - -------------- --- ---
NAME OF PORTFOLIO MANAGER TYPE OF ACCOUNT NUMBER OF ACCOUNTS MANAGED
------------------------- --------------- --------------------------
TOTAL ASSETS MANAGED NUMBER OF ACCOUNTS MANAGED FOR WHICH ADVISORY FEE IS
-------------------- ----------------------------------------------------
PERFORMANCE-BASED ASSETS MANAGED FOR WHICH ADVISORY FEE IS PERFORMANCE-BASED
----------------- ----------------------------------------------------------
Andrew Feltus
-------------
Other Registered Investment Companies 6 $5,845,400,000 N/A
------------------------------------- - -------------- ---
N/A
---
Other Pooled Investment Vehicles 3 $4,236,555,000 N/A N/A
-------------------------------- - -------------- --- ---
Other Accounts 1 $548,668,000 N/A N/A
-------------- - ------------ --- ---
NAME OF PORTFOLIO MANAGER TYPE OF ACCOUNT NUMBER OF ACCOUNTS MANAGED
------------------------- --------------- --------------------------
TOTAL ASSETS MANAGED NUMBER OF ACCOUNTS MANAGED FOR WHICH ADVISORY FEE IS
-------------------- ----------------------------------------------------
PERFORMANCE-BASED ASSETS MANAGED FOR WHICH ADVISORY FEE IS PERFORMANCE-BASED
----------------- ----------------------------------------------------------
Jonathan Sharkey
----------------
Other Registered Investment Companies 3 $832,921,000 N/A
------------------------------------- - ------------ ---
N/A
---
Other Pooled Investment Vehicles 0 $0 N/A N/A
-------------------------------- - -- --- ---
Other Accounts 1 $48,491,000 N/A N/A
-------------- - ----------- --- ---
POTENTIAL CONFLICTS OF INTEREST. When a portfolio manager is responsible for
the management of more than one account, the potential arises for the portfolio
manager to favor one account over another. The principal types of potential
conflicts of interest that may arise are discussed below. For the reasons
outlined below, Pioneer does not believe that any material conflicts are likely
to arise out of a portfolio manager's responsibility for the management of the
fund as well as one or more other accounts. Although Pioneer has adopted
procedures that it believes are reasonably designed to detect and prevent
violations of the federal securities laws and to mitigate the potential for
conflicts of interest to affect its portfolio management decisions, there can be
no assurance that all conflicts will be identified or that all procedures will
be effective in mitigating the potential for such risks. Generally, the risks of
such conflicts of interest are increased to the extent that a portfolio manager
has a financial incentive to favor one account over another. Pioneer has
structured its compensation arrangements in a manner that is intended to limit
such potential for conflicts of interest. The funds investment subadviser also
has adopted certain compliance procedures which are designed to address these
types of conflicts. However, there is no guarantee that such procedures will
detect each situation in which a conflict might arise. See "Compensation of
Portfolio Managers" below.
- A portfolio manager could favor one account over another in allocating new
investment opportunities that have limited supply, such as initial public
offerings and private placements. If, for example, an initial public offering
that was expected to appreciate in value significantly shortly after the
offering was allocated to a single account, that account may be expected to have
better investment performance than other accounts that did not receive an
allocation of the initial public offering. Generally, investments for which
there is limited availability are allocated based upon a range of factors
including available cash and consistency with the accounts' investment
objectives and policies. This allocation methodology necessarily involves some
subjective elements but is intended over time to treat each client in an
equitable and fair manner. Generally, the investment opportunity is allocated
among participating accounts on a pro rata basis. Although Pioneer believes
that its practices are reasonably designed to treat each client in an equitable
and fair manner, there may be instances where a fund may not participate, or may
participate to a lesser degree than other clients, in the allocation of an
investment opportunity.
- A portfolio manager could favor one account over another in the order in
which trades for the accounts are placed. If a portfolio manager determines to
purchase a security for more than one account in an aggregate amount that may
influence the market price of the security, accounts that purchased or sold the
security first may receive a more favorable price than accounts that made
subsequent transactions. The less liquid the market for the security or the
greater the percentage that the proposed aggregate purchases or sales represent
of average daily trading volume, the greater the potential for accounts that
make subsequent purchases or sales to receive a less favorable price. When a
portfolio manager intends to trade the same security on the same day for more
than one account, the trades typically are "bunched," which means that the
trades for the individual accounts are aggregated and each account receives the
same price. There are some types of accounts as to which bunching may not be
possible for contractual reasons (such as directed brokerage arrangements).
Circumstances may also arise where the trader believes that bunching the orders
may not result in the best possible price. Where those accounts or circumstances
are involved, Pioneer will place the order in a manner intended to result in as
favorable a price as possible for such client.
- A portfolio manager could favor an account if the portfolio manager's
compensation is tied to the performance of that account to a greater degree than
other accounts managed by the portfolio manager. If, for example, the portfolio
manager receives a bonus based upon the performance of certain accounts relative
to a benchmark while other accounts are disregarded for this purpose, the
portfolio manager will have a financial incentive to seek to have the accounts
that determine the portfolio manager's bonus achieve the best possible
performance to the possible detriment of other accounts. Similarly, if Pioneer
receives a performance-based advisory fee, the portfolio manager may favor that
account, whether or not the performance of that account directly determines the
portfolio manager's compensation.
- A portfolio manager could favor an account if the portfolio manager has a
beneficial interest in the account, in order to benefit a large client or to
compensate a client that had poor returns. For example, if the portfolio manager
held an interest in an investment partnership that was one of the accounts
managed by the portfolio manager, the portfolio manager would have an economic
incentive to favor the account in which the portfolio manager held an interest.
- If the different accounts have materially and potentially conflicting
investment objectives or strategies, a conflict of interest could arise. For
example, if a portfolio manager purchases a security for one account and sells
the same security for another account, such trading pattern may disadvantage
either the account that is long or short. In making portfolio manager
assignments, Pioneer seeks to avoid such potentially conflicting situations.
However, where a portfolio manager is responsible for accounts with differing
investment objectives and policies, it is possible that the portfolio manager
will conclude that it is in the best interest of one account to sell a portfolio
security while another account continues to hold or increase the holding in such
security.
COMPENSATION OF PORTFOLIO MANAGERS. Pioneer has adopted a system of
compensation for portfolio managers that seeks to align the financial interests
of the portfolio managers with those of shareholders of the accounts (including
Pioneer funds) the portfolio managers manage, as well as with the financial
performance of Pioneer. The compensation program for all Pioneer portfolio
managers includes a base salary (determined by the rank and tenure of the
employee) and an annual bonus program, as well as customary benefits that are
offered generally to all full-time employees. Base compensation is fixed and
normally reevaluated on an annual basis. Pioneer seeks to set base compensation
at market rates, taking into account the experience and responsibilities of the
portfolio manager. The bonus plan is intended to provide a competitive level of
annual bonus compensation that is tied to the portfolio manager achieving
superior investment performance and align the interests of the investment
professional with those of shareholders, as well as with the financial
performance of Pioneer. Any bonus under the plan is completely discretionary,
with a maximum annual bonus that may be in excess of base salary. The annual
bonus is based upon a combination of the following factors:
- Quantitative Investment Performance. The quantitative investment
performance calculation is based on pre-tax investment performance of all of the
accounts managed by the portfolio manager (which includes the fund and any other
accounts managed by the portfolio manager) over a one-year period (20%
weighting) and four-year period (80% weighting), measured for periods ending on
December 31. The accounts, which include the fund, are ranked against a group of
mutual funds with similar investment objectives and investment focus (60%) and a
broad-based securities market index measuring the performance of the same type
of securities in which the accounts invest (40%), which, in the case of the
fund, is the Merrill Lynch Global High Yield and Emerging Markets Index and the
CSFB Leveraged Loan Index. As a result of these two benchmarks, the performance
of the portfolio manager for compensation purposes is measured against the
criteria that are relevant to the portfolio manager's competitive universe.
- Qualitative Performance. The qualitative performance component with
respect to all of the accounts managed by the portfolio manager includes
objectives, such as effectiveness in the areas of teamwork, leadership,
communications and marketing, that are mutually established and evaluated by
each portfolio manager and management.
- Pioneer Results and Business Line Results. Pioneer's financial
performance, as well as the investment performance of its investment management
group, affect a portfolio manager's actual bonus by a leverage factor of plus or
minus (+/-) a predetermined percentage.
The quantitative and qualitative performance components comprise 80% and 20%,
respectively, of the overall bonus calculation (on a pre-adjustment basis). A
portion of the annual bonus is deferred for a specified period and may be
invested in one or more Pioneer funds.
Certain portfolio managers may participate in other programs designed to reward
and retain key contributors. Senior executives or other key employees may be
granted performance units based on the stock price performance of UniCredit and
the financial performance of Pioneer Global Asset Management S.p.A., which are
affiliates of Pioneer. Portfolio managers also may participate in a deferred
compensation program, whereby deferred amounts are invested in one or more
Pioneer funds.
SHARE OWNERSHIP BY PORTFOLIO MANAGERS. The following table indicates as of
April 30, 2012 the value, within the indicated range, of shares beneficially
owned by the portfolio managers of the fund.
NAME OF PORTFOLIO MANAGER BENEFICIAL OWNERSHIP OF THE FUND*
------------------------- ---------------------------------
Charles Melchreit A
----------------- -
Andrew Feltus E
------------- -
Jonathan Sharkey B
---------------- -
*Key to Dollar Ranges
A. None
B. $1 - $10,000
C. $10,001 - $50,000
D. $50,001 - $100,000
E. $100,001 - $500,000
F. $500,001 - $1,000,000
G. Over $1,000,000
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 Diversified High Income Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date June 29, 2012
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 June 29, 2012
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date June 29, 2012
* Print the name and title of each signing officer under his or her signature.
EX-99
2
ethics.pdf
begin 644 ethics.pdf
M)5!$1BTQ+C0-)>+CS],-"C(T(#`@;V)J#3P\+TQI;F5AF4@-3`O4')E=B`U
M.#@W.2]2;V]T(#(U(#`@4B]);F9O(#(S(#`@4B])1%L\.3(R-T1&.$$Q,C1!
M1D0Y,S9$,D4R.3-#03,W.#4U140^/#E&0T$V,#-IB8&!@!J)&!E8&!A9/
M!@$&!!``BK$RL#!P+`#QVMEX^]CUN29R%3,%,3#,F7=MZP(DM0PEG,J!>$GI?!"SRE.HY.$YQX0:77)>DTQTF@A)ML:DM*H\%+J5.+
MG(S`.EDC.CH:0`Q&"2B#HZ,#1+F`>2P>(`ZC()`C*"@:T8'J#B0@#L4,#,H,
M?(PU'`&!#JO87T@]L#_`P.S`O<&VX0?#BDD;)!C^:G:'>=3RM3/S<&TP;8#H
M%69@N#(32#,!L2W$G,<[0-:";`8(,`"$@#TE#0IE;F1S=')E86T-96YD;V)J
M#3(U(#`@;V)J#3P\+TUE=&%D871A(#(R(#`@4B]086=E'1=+T5X=$=3=&%T93P\+T=3
M,2`S."`P(%(^/CX^#65N9&]B:@TR."`P(&]B:@T\/"]3=6)T>7!E+U1R=654
M>7!E+T9O;G1$97-C7!E+U1R=654
M>7!E+T9O;G1$97-C7!E+T9O;G0^/@UE;F1O8FH-
M,S`@,"!O8FH-/#PO4W5B='EP92]47!E+T9O;G0^/@UE;F1O8FH-,S,@,"!O8FH-
M6R])0T-"87-E9"`T,B`P(%)=#65N9&]B:@TS-"`P(&]B:@T\/"]3=&5M5B`X
M,B]&;VYT3F%M92]4:6UE2A4:6UE7!E+T5X=$=3=&%T92]302!F86QS92]332`P+C`R/CX-
M96YD;V)J#3,Y(#`@;V)J#3P\+TQE;F=T:"`R,S$Q+T9I;'1EOITM][]Y=$7V^[F
MI^7-N^4R$+Y8;F[\0'CX#_^D^!M%,D_$IS#,^
MS`\XGOO2"SR?SIL3GICY,LS"6"Q_MJ^6?[@)G?P?_7'_M?R%/(ZLQ[F,$B@G$WTRYAP,&<-,\\U_(=Z(2(R(RR!%
M82;][.2A]#PO(2]G>`IB"NU'Y]>BZT6KGG2GUN).K=Q0YD[KSF3B#.XLD9E3
MX)7OM$?A(S3.K0MIC@@\^N![HW>G?,HTSB/CQ74&%\N;U(,I22230$2I+V24
MYK"S53<;PL5%7L)<9M$TO5<`B%^?@!V9M2,<#YNG$(XGN2>C@$Z_FW>)*#LA
M`R'#//$R(1,OS`/1E?492X%,HLP_8PG2?<^(#P)`C\6;IP!^P^O$!_XBTD`1
M]B+&W/SAYP6#+I6Q]8^?@C21\?2.9R!*9U_)SSP)\R[E^R%?>+A[2WJ(H\#9
M=TD/_1B!O+;>5,QB^=?[^>.;&O+\^\1'7HBJG)PUQV8QLI]D%&?/3T**\T3O
MW<,'\6;4("RCHD5VOA4T+Y.3DRP\X^./B[_?/WQX4WP.="??)SY/*.>7\A.;
MDKO[^>+#XS=`"9!'62@#B^&)KDOTO6=+O=-E?@(BD-\H2F00C,4=&.V_WL__
MR5>N]/D(2)I-[DPTGBD$XJV?Y@F,'`71R)%;XR=K(@RFAD66.]V)>;-6;BQ#
M1S0;L7"AS.G=P-EIE-JF:<6C^;;6C1O)""0#FGW8;'2IVDY\BFK`6_7EX":DUD4C\9VR!R6R`;/1`GH?DM.6W2@$
MEDC[1JS(09"C^K+3*]V;3VNQ.HI'R(U)+GX:_Q/X+P,*`+Z*'!,%5H9D93$*
MXNQM-GH;&E447W+OO6[8A=11JA5W`YS*'/MF;7R@P)9-52DX_J2JXRU??+XZ
MV[UP1/S3"Z&*K+-$GBKR2X5FU1X3RBW!!D$$%_S!/04]3(%!*W/U0(KG-T?4HY-"%2
MG6J?Q@N`0/.DUP2X'BXE3N/.D`1MG1-G
MI_GQ;#6\=T-'HT^F3E,C,V[JB'L#?6B#X"?5H:=")\[M54W_B+\57#!U@8@D
M\O3^UA34Q?52FI>?G&>C*3.:^)YR\:-%ANS-`9HBW.0Z"B0F(7\2YG@,LS&\
M@F$9;G4P'G>[H=R9K&:KE#AA>>18*Q\
M>6:\,,C#WS-MB?STJMV3]F=B$O@$CG1(YRCJ11@K=RZ^`%S$7A4U`QZ7#BWR
MJ@]%A?*DZZ4)"0@@S/)KY'UT!JJ7T7E0!Q,#S44(N)6ST76!1SR=C[7:,@M-
M2>:8C8A5=!V1:R8MRK(9ZI[$``U;8>AP0UQ!3!$@W0"A`VV<"T)J3"CV85[=
MMVXR?D#-MY8H#!)0Q!E!@2!>5/UNI-8@BJ>5%XT&Y<:@9MCN*'X$L)C8X(!(
MDU6!X0-(WN.+P"F.HBG+X7"TG]F.##'#=,'4ESLP!@DQP@RZ3O3*5E!P@GBL
M*XRNQ@*.KF250BS`3,RG`0O-G'J$`!CP3&X3TUBRRV:LEE:C\W[
MDLOMLT8//@54W2+=J]_0A4R81^RE:3#%WAC3,?.*@22:)Y<6$6X!D',@0N\0
M+D;2B'"<^ZDI"&TY^A=>+UU3L+XS=+WM!/,'[/>'EK5GX-#@BDY&L,+
MM45=%BM=61F'H@4;S`B1)?%_[`Q5,>%9EGOMQ0D8B?&BT_U0].X,"S88LP;I
MBA_KH_@WIIZ>/HMBU0Q7%G6[9JCL`!30_I%-.\>HP;<:5FCMNE4\AO'@Q'DV
MG\6<:W?.7?5!`)>DIP%9$9_LE'U8JTYO:W/%C$KRM#W__@@=1%A/[>\!OKK8
M3=;1KTS44W'./SZ\?WA':1`ZEJ:+X]^:I'.L#EC+O''>W[Z->L+586@/
M30?0CA!_14S"8AUML?GC*4[(/.L>(\':V7TTRQS^\6*1I)?[^9\PNF1_-L;;
MWU,@%KX__C;BTB\R'/-5&(>O2M?/:<7C&:AM]DVOQ(Y:!1JB*=&N9Q92\*=$
M:RR;>CV4/8]<%3C9GTY;A+DD\B>_2R#Q=A[$8@%Q.R8F!7GF(PG%$Q"'/K,V
MCT1>.7?2C<#XSP<''AW&L\`CJ@Z##":NC'C$UI;53[]4BL/S8)*/M64]+0U-
M9NC/A%E4;\]UIQ`-3-N._;0V$TNS45VG
M)T=:517]Z46WTX?NA^_(/52G\.7_EGP[K6=Q?IG\S5!5MV)3:(Q&&&R&MNC1
M"7J]QR8BBM/Z!8H]+3^Y3*.+GA"/LFUU],AL0?T-$5KKKJR:;L`,JFL$YX#-
MSRP#ZZ8Z,^CCF8OBM>TVS\BA.++Z4N_'35M'(L->G3.<\
MVC\NYF@SDSOC'$+&3^;DZTT)@6B@O06%K(!%U-A^/]2HC-Z,IKSQ@/'WM-P%
MCN%ZK*AF'\+HC#V5-Z$?[(JW6-[\1X`!`!ZF350*#0IE;F1S=')E86T-96YD
M;V)J#30P(#`@;V)J#3P\+U-U8G1Y<&4O5'EP93`O1&5S8V5N9&%N=$9O;G1S
M6S0W(#`@4ETO0F%S949O;G0O1TI.04Y.*U-Y;6)O;$U4+U1O56YI8V]D92`T
M,2`P(%(O16YC;V1I;F7!E+T9O;G0^/@UE;F1O8FH-
M-#$@,"!O8FH-/#PO3&5N9W1H(#(Q."]&:6QT97(O1FQA=&5$96-O9&4^/G-T
MRYQ2R3J1&XZ].])
M2GN(P;;\[*?W;'ENGUOR">0;!]MA@L&38YS#PA;ABJ,GJ#0X;]/>;=E.)H+,
MY&Z=$TXM#0'J6LCW/)P3KW#7]U5UKTX@7]DA>QHS]*`_/C/2+3%^XX240$'3
M@,-!R/.+B1'G)9W5%37%H?/O7=ZH>_EY??'O=_:
M9^]S]]E[G[4N`"1/'RXO!98"()DGX`=Z.--7A4?0L?T`!GB``:8`,%GIJ;Y!
M[L%`)"\W%WJZR`G\B]X,`4C\OF7HZ4^G@_]/TJQ4O@``R%_$YFQ..DO$^2).
MRA2DBNTS(J;&)(H91HF9+TI0Q')BCEODI9]]%ME1S.QD'EO$XIQ3V(
M>'N&D"-BQ$?$!1E<3J:(;XM8,TF8S!7Q6W%L,H>9#@"*)+8+.*QX$9N(F,0/
M#G01\7(`<*2X+SCF"Q9PL@3B0[FDI&;SN7'Q`KHN2X]N:FW-H'MR,I,X`H&A
M/Y.5R.2SZ2XIR:E,7C8`BV?^+!EQ;>FB(EN:6EM:&IH9F7Y1J/^Z^#'[:_\4NH`8,R*:K/K#UO,?@`ZM@(@=_\/F^8A`"1%?6N_\<5Y
M:.)YB1<(4FV,C3,S,XVX'):1N*"_ZW\Z_`U]\3TC\7:_EX?NRHEE"I,$=''=
M6"E)*4(^/3V5R>+0#?\\Q/\X\*_S6!K(B>7P.3Q11*AHRKB\.%&[>6RN@)O"
MHW-Y_ZF)_S#L3UJ<:Y$H]9\`-5#<]=_[YH,/!>*;
M%Z8ZL3CWGP7]^ZYPB?B1SHW['.<2&$QG"?D9BVOB:PG0@``D`17(`Q6@`72!
M(3`#5L`6.`(WL`+X@6`0#M8"%H@'R8`/,D$NV`P*0!'8!?:"2E`#ZD$C:`$G
M0`0A54@+,H#,(`9D#[E!
M/E`@%`Y%0W$0#Q)"N=`6J`@JA2JA6J@1^A8Z!5V`KD(#T#UH%)J"?H7>PPA,
M@JFP,JP-&\,,V`GVAH/A-7`WP!?@Z?`<>@9_#LPA`
MB`@-44,,$0;B@O@A$4@LPDVH'M0MU"AJ!O4)348KH0W0-F@O]"IT'#H378`N
M1S>@V]"7T'?0X^@W&`R&AM'!6&$\,>&8!,PZ3#'F`*85P@=AS[%D?$J>+,<.ZX"!P/EX;P47@MO@_?#L_'9^!)\/;X+?P,_CI\G2!-T"':$8$("83.A@M!"N$1X2'A%
M)!+5B=;$`"*7N(E803Q.O$(<);XCR9#T22ZD2)*0M)-TA'2>=(_TBDPF:Y,=
MR1%D`7DGN9%\D?R8_%:"(F$DX27!EM@H4271+C$H\4(2+ZDEZ22Y5C)'LESR
MI.0-R6DIO)2VE(L44VJ#5)74*:EAJ5EIBK2IM)]TLG2Q=)/T5>E)&:R,MHR;
M#%LF7^:PS$69,0I"T:"X4%B4+91ZRB7*.!5#U:%Z41.H1=1OJ/W4&5D9V66R
MH;)9LE6R9V1':`A-F^9%2Z*5T$[0AFCOER@O<5K"6;)C2"E?25`I76*1U6ZE.:5591]E!.5=ZO?%%Y6H6FXJB2H%*F>JOZ(PV"!D,C
M5J-,HUMC1E-5TUYMVA_:DCIR.ETZ.
M3K/.0UVRKH-NFFZ=[FT]C!Y#+U'O@-Y-?5C?0C]>OTK_A@%L8&G`-3A@,+`4
MO=1Z*6]IW=)A0Y*ADV&&8;/AJ!'-R,OWS,3MV.:5=K-V)/MX^V/V0_XJ#FP'2H_M7]'B3O(.\*[V?^.C[
M\'VZ?&'?%;Y[?!^NU%K)6]GA!_R\_/;X/?+7\4_S_SX`$^`?4!7P--`T,#>P
M-X@2%!74%/0FV#FX)/A!B&Z(,*0[5#(T,K0Q="[,-:PT;&25\:KUJZZ'*X1S
MPSLCL!&A$0T1LZO=5N]=/1YI$5D0.;1&9TW6FJMK%=8FK3T3)1G%C#H9C8X.
MBVZ*_L#T8]8Q9V.\8JIC9E@NK'VLYVQ'=AE[BF/'*>5,Q-K%EL9.QMG%[8F;
MBG>(+X^?YKIP*[DO$SP3:A+F$OT2CR0N)(4EM2;CDJ.33_%D>(F\GA25E*R4
M@52#U(+4D32;M+UI,WQO?D,ZE+XFO5-`%?U,]0EUA5N%HQGV&549;S-#,T]F
M26?QLOJR];-W9$_DN.=\O0ZUCK6N.U[TE;$M7OG+^IORQK1Y;FPLD"O@%P]MLM]5L1VWG
M;N_?8;YC_XY/A>S":T4F1>5%'XI9Q=>^,OVJXJN%G;$[^TLL2P[NPNSB[1K:
M[;#[:*ET:4[IV![?/>UE]++"LM=[H_9>+5]67K./L$^X;Z3"IZ)SO^;^7?L_
M5,97WJERKFJM5JK>43UW@'U@\*#CP98:Y9JBFO>'N(?NUGK4MM=IUY4?QAS.
M./RT/K2^]VO&UXT-"@U%#1^/\(Z,'`T\VM-HU=C8I-14T@PW"YNGCD4>N_F-
MZS>=+88MM:VTUJ+CX+CP^+-OH[\=.N%]HOLDXV3+=UK?5;=1V@K;H?;L]IF.
M^(Z1SO#.@5,K3G5WV7:U?6_T_9'3:J>KSLB>*3E+.)M_=N%]9_]O&;Y#?S
M?<=XU_L^[/W$?.8'[(>*CWH?NSYY?WJXD+RP\)L``P#WA//["@T*96YD@E\5-7U_[EO
MFWV?26:8)#.3(6$99"`#3-!(ID"B2`N(!!)L-$#`L&F011`#88>`0`0B4%%^
M5JV:5B:R)8`5-\2E%-J*>Z466_UIBJ755B%O?M_[9H)+^_GU___-Y+QSW[WW
MW7ONV<^;$",B"S622./&WA0MFO[KNG+TO`>8.&WNE/H5MW:>)_KA`T3L]6F+
M%@1']1FJ1WL0(#FC_K:Y)R]XW$0"YL@/WS9GR8RO[JY=1Y1UF6C`@KKI4VI/
MOKOZ$Z()7JPWI`X=5M)]1J1?C_N>=7,7++ZAKWH5[G].9!PWYXYI4UR#]%N(
MKJO'>GWG3EE<+S\G/45TTS\Q/WC[E+G34WOE?41C\+Q\1_T=\Q>`;GS&U/'Q
M^CNGUZ]L_#*'R(G]1968>"O;2C+IY=UR##/6IS'[DF8(3KTBF&118((@2#C!
M.OK69]2$$4%*4/"2(.]6E[)Z705[)DCTT`=O\E&Y@G(RUYIT^]L?\2)ZEA*E
MSO.[;ZYJ:^HM[2FT@*>074BE/I`7I>$_?G2IK\B;^IA:4K/H05J4:I+::+?6NYB&I9ZG
MWJ!I#ZU/+:9CJ9$2I2[2;(JFSM!4X01G*^Y^B/$9M(1,^$ZF0[276FF31L6C
M^/Z$-F>HV@3"@;S<''\/GS<[R^-V.1UV
MF]5B-AD->ITB2U`-ZL>2WA&59;.2OA$UR?+PR+`]F"P?\_F/HDER^D-A1ZSJ
MJO24I!Q)DBLY^,CTF*!?:+(3SVH^[^9(\1E:&0/RD4X&\4
MQO%WPY1@;=(^#OT8H'&5[:DOBY/&8C^`-ZNJ^'K?WO`VOF$'%.?XM[<6^$2.3Y&ZC\@^3Y.%S/B^F))4D>T>PH1TMK.7%XTGFOIADKB3S_`CT_9L#
M\<;WSE-6.RM<5CL3?*FM^88SGZ?YTCVQS60<$1XQW7A5/VHSFM`TH87)]6VL
M?!C3&D)YV=5M`NDMX(>3TU7&858RL;$&C?!(,`(CKF]&VE/'-WU[B/!8=\N5
M;K&D,B*IT_8-SDPFIB1I8["MW_&F3>UVFEH3,=>&:Z?\N#(I3@&-;206E-5-
MP!W6!]34!9,2%M@VC*A<%SKN3SJ!RY*.
M2/(ZS+CN[O-^L:G,.S/(;YN:U@63>V^L_/9HB%\A6R\(;BH+8T$L5C9K.)=/
MM%L>4@'^1M5RKD\))ANGSDHKSI1-W;H9:K(GR[\,@?VAD":F#,MJ:V9Q*F=-
MX2.X(2%IXSTITF]TE.3Z4%'6?=@D%,P
M"@LD@]."21I?&<;48GZ97DQ-TXJU`X>J&)X:]\U32;G`'@XV?4%)5A/N_.R[
M/5,R/4J!_0OBS?)P>4U34WDX6-Y4TS2E/=4X-1RTAYO:1H]NJB^K"7)3Q%/M
MJ2,;_TT=NQK2XCI3/KZRU!]R5'7?CNN^)2@A5!%*WV3''J$0U[R-
M[0F:BIMDXXV5Z?L@3?4_38EH!)RKX2/'NT<\%7RDL7ODRN,U8;#Q`/'([4GJ
M"Z_\V>Q9KK*ZJY,LZW\9GIX>3[I&5(I^H2K=$OPB;QDC,..29'8$;:&@'0X#
MSJ()7#L=3MHC27E$Y7%_2570[H"9XK]5U30?CK\
M"N/>A=SV)"O1]F;!;'V&[
M/M,E=$,A[4'&8S><0/
MR2.]32W2:-(I3=1+ZD.RY$E])O6E8ISC8?%A&@E<@52E"$"`8](U-%)"?!:/
MT!AI+(W%W#'"#-*)?Z%!TGC:@TRBA;V16BT):+])>Y15M$>:".B-^>7`HS#_
MIWC^$'F$1:F45('V;O+*XZA0K,4ZX\DD3M/V7201.P#?HYV;`\[-SWSE
M3)Q^3M._`8W&OM\%T+>"G4UM!3P$^.<5VKX/H.L[T$;;I#;&Y?.2U):Z!+Q6
MKF#-FLR:**8,H(D:%!,#W4O!JW](M130)5(?@M-/2'_\5SWL,8>/@^X%C@F
M?41FS!T/J(%^;.$ZVLTKSA_=`:I0?HOSM-&KT%,1.=]N`)^WFP.G"33TYWSG
MLJ=WU%U2DB1VF,8#:L3W()-WL1[.3Q]H-J`]K[^'1FO[IPX"
M6X#YV2NZ09-5!B"'!\"C`X`G`:\"W@#?6@`W`6(`AT3"3CX'>MP;NI2MZ2ST
MANLGUQ&N']#[L%2`\X%V[0SK0$>YQB=N-\^+7M#KI1L!@W1&J@3,`/2!S?3@
M-L/U%K1NN[(V]$O3FVX,'><]PV93V-U>CCO.'Z
M]Q]P-SW_@F'7TOA4.W`?V)@'?'T2NKL#^%7@`\!O`!\'G?7@ZW3I2]C^(]3"
M_0"W1>X+N#UR`"\W@9=W<86W&S!^<'/SGVNQN,E\*,9?RO9('O.EZ]I/_>[XBMX'F3\BS@:-/JKB
MX\)'Z3G20)J&>2WB.X`Q)&G^!+Y4O#[CP\IIF%0"^]Z#-=PT1BR!'F--6<0Z
M.U*?R/.H!35AE79&OA=_AH^C#VNU2A^CKJD#/H1S;.9ZI]FWA>N54DTZW8\P
M]B7H^AVP%_ZF)[5KO$*]IO&+/_M1FE_*M<"3R2X/`7^&?(]?&3[*!JU/BVT:
MK_B:&5[)$:Q]E*;JKJ%VW2BTU=2;R@(Z*LW0Z.NC@_OK`?SL!<#EZ=@FG,;9H5.R0.-Y7)*"
MF/_?-%<)T2-*(?U,LJ?>E!="+L?0_SKERU_@62-\.K=G2^K7VMZO0Y[0=RTF
M(M9HMBB05W%BKC5U6J/ANM1'VMK0+?Y,MTY_'W?K./?A4CH7VS9:>3EW2'4,J.`DQM(WU1=7>*OV*)F=\7SZ`^\)IZ!^+9W=E
M\,[N^TQ[J?PIP";(;O:Q#N,OV4P,)&<
MOOE9MHFL8F)6=D[%Q&Q_Q42??0:;/@.WTV=D^Z?/\-FGL6FUN)U6F^V?5NNS
M5[&JR;BMFISMKYKLLQ]FA]MQ>[@]VW^XW6<_R`X>PNW!0]G^@X=\:`,M[]_C
MCGJW)^>.>H__CGK?K-EHSYKM\<^:[:N;B7;=3(^_;J:O9@K:-5,\_IHIODF5
M:$^J]/@G5?J.3V)'C^'VZ#&/_^@QW^FCYXX*'4?0T7'$X^\XXD,;:$VT1Z*T
M7VP(ZN2$M:3?@"&)Q3FY0Q(OAGIJ7<_<4U`T9,C.4."5G?T")W<6!V+;*P)%
M.X.!`8"M_E!@]ZY^@2=V500>`.QJK@@\N*8B<.N.?H'6E16!J==6!,[NK`@D
MKAUPS9!KT;AG9RRP$X,[5O4+;-]6$6C>MCBPK:%?8,'"X8&%&PH"!Y;W"^P#
M;-K0+[!Q0T6@"7A#0T5@#Q9="XB7]`N4K*H(K$)[S?(A@96-%8$5RRL"I<##
M@&]N&!)HQ//+\$P#[G&"_?6R%
MO:P]"VSY86LP9,L+6/TYN1:OKX?%,S?;XLG*MCA=;HMMCL-LLSO,9HO5;#":
MS(I.;Q8E.#\FF'.&AP)L>+^`#Z`#S!U>$9@#R$+;#G`!)$!4V:)<4,2HN$6\
M((K(3T0A2EOH`HDV6]0VUB9NL>VS_=IVP2:E[^^P2?YK]`';U?J`.%0?H&)]
M8%R,)9VC:?2$X4D7`[YI>#(6&=VNI_')HLCHI'[(R3=7MC,?'UZCO75`JYTUKKGW7O^55E55)#=9._JFRF1];E6RB#>V
MYE91!!^:/W\!OO,C_^NGS<#)J!T_G-T2^;]]F':=GX%_^-(4'DZEI=Z(O81%%7-2093^H(/D($HI`CY"C`A:'GZT:9
M+G%,:/#J=)98QHS,7UPA;&#Z")`NKO)%H+#K/WE44G4>E
MT8$#7&$Q]EEMWEZQ3+#S-6:KK>QKK&&@"8>87T;602BR$[D6:YPI)XE5$C/8
MB.G)1.V"WFZPQ/6-(E=RJS/.\4&C*2Z*1D=Q01EH"J\7GQ(E$31Q$"C43DLX&`E1=BWNC.]4X0BKAC?+>QTV&^M
M8[W4M^NZY`IUF1I1$^I$XRS]"44
MCC\K,C'A[JD=+^'4\_/)C"G[9(^H#_6,"YPT(V^(]BQ_>I9)[^&S)(GMDSE3
M](:X+.LX4SJ'1C7>Q*#;I9VQ],T\3BY0@4<,N\*#V=P=%8MFG/^5^C%CYT%A
M'GN!?2A<"[GV3&2+.Z/"'8(@L`0693*K!+W"))P>7\+AL90G-)A]J)8(U]Y]
M-YYN!D/KZ1R>SDJ8Q7V"A^WCFK`/F@!.87Z!!UO6?W#NW#EBJ;UJJWB+ID.1
MA,LK7"^L%T3F%TAH%%TB-4(.G?NY-D6KBSNCQ1E65[O"+%:X5BQ>J[8J3T+G
M)B!+N07YHHFRZ?:$I5TX9.S($LV[W@(][:F/]SM<<4VMKC):XN1S[CJLO*D(
MBA?=BAU=BLZVX6,#,[@M]KC!9V@7/!O^#"&TISX[C![1*W)I1ZH[M0N51G#5
M+IP4.1\RIUB07WL5.0?;A7`^U,TI3/Y,_1,S?X%X:E`__]LO'GNRK?5G23_;
MQ:*L+]NM3E#/J7]2)Z]E0SN9R"K5$RE2OU1?X-IX##G`8IS&3!,[2$Z=3D2S
MO'&YQNF)ZQ+\HM/K9;/XA.`U>7$KRR:=T2@QIM.)HGFC)%DM#N?0*&0=BQ9%
M'4.C5`J9EW:5H,F%'^$2"`T..13=X)[QF$-:?'DDVWWP!6;9?O?RYYR]9-0L')3%0DD5;.R@K]?E^DRGNX(SLK]?'+6:S013I`>8="M[M&FV[
MV3;#)B)\9,=MNK7.)Y0.Y:PB*1N<3N(ZFH5'B+P'S2^9!?-&BT44@_D]XUF:
M^MH\\:PL.U@N9G.+XF3:2^R=U5Q;8]'.:O"\NK.:GP$GBVG:R\]`SL&#"L/Y
MBJZ7,U0D>=P*R5+LPYL]_<==[ZJGG>*):BC/6RG>2D1RTK8,`+VW\[MR
MLR4N>VV.^%5RN>T)F9M;JZK2[KX_;K^$;G!_B+7+2T6
MA,(.V%?,$?.$>SD&05>9N.[1KFKASK/OO_^H&`FH$UG9?/'(Y&@.&1(K(@\;@IK5A4*LJ(A:1%[W%G2J-UCSZB-AFO/
M-?R2,?7"&Q?5/S`;RV'7J0\T=QQ\+CF.G:1`'SPI8>4!3:`/N1)6Y>DJ2SZB8+
MRE8Y*0NR1:[*2`RJJ-D5?-C0*+Q0*&RG>"@>\@B"PRV4)IGWM2Z_0US[]XML
MDK#A@Y89ZCM=J]4/[93Q3]=GI/%8HGBGRE,0=[.P/LR
M?95>T.MS3G!N#W&7N06W+V?720C`RZ7!M=`!B8Q"A\ZG;'!XP6P'MZ"PWAAW
M.,*+L0S$$]APG>F@Z03$DX"Z!DS,E&_B+JPZHDFB.ATMBR@M#2Z7;HE`S:K3
M`HG'LV)0`2643X,'9?S;=^6Q<$/%*R^\)*Y5__9+566VW\!+.]7?JW]77V95
M]SY[<'O+4\]]5?0,NY[YOF3BL\\SMWJ_^J)Z0)TN-+RTNK']F?7W/9^@9&*9HN@YR;`/,+]4"SGAP:YT&/G@`_'BN7.7
M+_SA#UAK58JQN=I:1EJ:L,MVA$E=(I=?//ZX+NV&3/"@!EDV[C-H&^EX4%4X
M:RUH<&'H>%S5)KOUW-T:]#PVZ_5,VB<8#":0`DJ&0AVTP#I/BZQ78FN$>Z?]/"&>+%]]^_?/%7ZG_S'[X%GEM)PZ&%.E"Z-3&Z4'>7;JU.
MU`N,&8RB)!ETS,!6D,Z-9$R1#-)*67'+R#NVBZ)"3)*=!H/"9V.NP2`SLF^!
M9B->(-+B)`=D%.*0=S'4MKJXR#G4!W\S%'_D12PH+2DIX8J\3NX?6=?PXKK^
M7HYT]A=+`)K?"87%D(@0ZQ)%:?B^)E5W]Q9V](6:W_R.;5'GR167CPA;N^IY
MALBKU94XA041(D@-B9PCRK.Z9^RBSFMQ@W'6[<%@5O8V=RZ+%R4,`NE-16YJ]9`JU7(>?VEBULW
MO?VANH'UZ;AGS6ID?;>OO6_XXKO45KGBY.J/?UCPR\7_];9HOO?66Q9<>GUE
MW:B&D=QC5,!ZEVC6NS^1/TN8;EQH%.OTK,-S2CCE$4UFLY4=Y[_#6'>)S-TL
M\H0#9L=QH@S9A>BR>EV>>(N!69L-/'X8O.@U2!/91!/**HN*OZA/,\][YM_^L?HK\>9'Z1_4#=7XS&_#5JVPXEP>G(@]4
MH,Q)>'3;$7--VP2GLDT4]9)>BL(/::6^WA9GS*(S+1?,0EI_N(%6QV+1Z!7E
MT7(A1R@#4M[E>\6:KM%"8=<[+2UR18LZ9J/J3N\H7M#J@Y$)A[(]B'S'(#"G
MO$T0D77Q9T\='1OR2:VBB.[;A-Z
M=;W-M[NQJ5O?'H2^Y='IPW=+3^B>\(@^OK8!#![GJ_$)V.EE^?(;H:1G4]D0^%D5[OC58?@:#9Q]3-)DRP,I<3I
M1"^[!Z6$2#FY"3RJCS8;,]K@_HM6RX
M,Q/6M:#(+[YH#(KH+84*`L!.S.&+?1
M7J'!TH,SH\N^4B^JOV/#F(,MF?]P^/B=KQY_LV/K`=<3'ZOP0B1P]A@AU!SKF-:[=1Q=\XI@'?\X3]?]&]RCYRS1#R0T5;Q
M#':0J=,ZQ7%`T[>SD:L(W2*MDS"&>N?S./JZ%EWZ07D4^
MHV4M'W>0D#JRWV#@GE3#<)E'$F8TLI"`\C+-`%>;<-A<<9,;F?75B/]%L$?T
M?KC?:.;X5,*$Z3YQIE1G%#5MJL!CT@#0)!G%H4:3T6!:*8AN01`-1N,*279+
M1I,D2R(S2CJG(,L&DUG4BYA;;,1%U)F$Y40#Z%9PW@J6&>1&G46G':N(ZTF1
M,QOZ$8%V9,=B]I+2[*)U^G2:RZ./'E@+FQ&>\0)(:T!0+`R%@;A83#[SF#IR
M@?J#9I7]A&W[6GK\4B4'<.>8-#+C$W:"/S9:L+_)R*/([Q)FJSM^M<`,7I.%
M'_I<8J#!%A=PH!(FN!D3C,1P&*M!CV,QH[413NV0L`*V+1@$I5%GSQR@*`IW
MF\:$V!GCL$X+G4RCFJ#7H3#+SO)HM/8J'.R(23L?ZQHFB$UGA>V"L$YZ;'(L
M?-D(8G]V:W%$O!^>E-OXH4S%.CO1XQ'CH]8G[4^Z'\V27S8S<_-U5$F[Z'&2
MM+*UE]$>)]=))W,V3U):E)\I(LI6>UR1;`T&K[F[9FT0,R;:7;!RE]N9*9WX
M9>``JI8UVT.2C6M!D=-AST0$8:7ZE?H.&Z1VL2+U3?6K_:^>^<6^4Z=YO=H'
MUK9=G:_^!LG=C1M9.?RKGA6JSZNI2^I+E(D*-X#W1G(AIRXT;3,:C?".+GC'
MNY3[%6&FC=D:HHA='J56,,$DW:P[GH.JZHQCC&8<8Y$6OU&@9@(X;)6=_^-;
MG_Y2/
M'-]2WWR_?)-N8IZ@RQN<-]$_1UZLNROX2-Z!/'V.T6!HR,UQY^;FY!B-B4#/
MN#$!3V[(79?+!%*&&QQ,EJ=[CC=*('Z]'`Z\/#Z+/V
MM*8534O*M/=OO`U?!GL'OXJ0B2`6%*&(=PP=BK(C@IQYG16V8VUX,9.>5+OB
MSC33>A7T%P8/ZAG+Q`64&-G9DL,MA8.>W=5LR,./-(Q7+\Q:=PL37F4+%O[$
M?W)>_;[?I]@MZE<7U$HV.ZQ^LF'^I%GND?X?[;VM]35U7__%2Q?-N7_PM1/4
M=]L^Y9[8`T]\2LNYK^'102=ND\2M"DO@].EDGU<:(G>@(@\<>@-;SE]:00MP
M@NIY5-I5DHX?4$Y/2"A_4ETB=JB+I6=;6K!Z"^0X`JL[:6`B(-OUSKBUN5R>
M@1K210;^*LO-)@O&Y0:7H2J=#L$T2U![P8<0RGN[%,XO=,#ON[.R>#@4#VY6
MOWJC\WSK#2WC'WP$866-^O=//F>RN/3RFH=6#GNL@Y^(5Q$CL:>"W-N$/?7Q
MQY63HJ"]O$C8W'%!9D.9(BLKB<$4F"2(P@I90B4AR3)#RB21*&).L2R+R@9B
M/(3J>1$AZD0>\GCY4*V5#]QUHVPH+8E%OULV@'HX:P9'#2\MC50'/:H.>IHU
ML"5RQ=<(L9=V2S.P:"\B91J/7BPKD2/F.9QQ4Y[!&-?SBY?U9KTE47"C+?'`
M94!#YG>L^TX,XF0HR/Z9F&IWQBLEQLPF<^9,1B1`*TQ&MPDQ2Q*EE7J#6Z\W
MR#J];H4BNQ5%-J%P$P0)-9-(9K,19J/3P0D(B&=ZDXE$O=YH@'./?.-I9L(<]_E
MU'<1M']>^EU_-?_A@3,PS<,8/J4-)X#/-_(U$?B`7KND+.R>/%E,,<=.]#Z>Z+0Z8EGV7OURK'DT!IXBC4Y:WKT[7%$<*UUZ^T8
MT]LQUQW2BF/4'Z%5#^F9OH_^**]`.OD[94V/8>"=VJLLQ)K."-PD+S^TW"^B
MQ1SN)`N1]N47PKQ#1=F\&LO7WMDA9+K%S.L$+0<4#SQ@,-1]_>0AY&S%?7]<
ML'CJA5[-@]F&,_MVUA0=.77'S,V'!ZP]DQ;,3AWPLN^.\>M-LME>Y
M>^$-=:B_1
MQV")2Y+7:_7$O3L4NT">50:[Q09':C@F^$54=6O%-2R'=7"C[1H:M9>DHRKR
M0/YR$BBJ);A4'4/T=PR)(:BZ$51[Q?-8K/MMB>Z3'^Z9\\NG/OUSQZG;?:8G
M;EF\;?.R:0_9Y(JN+UY4_Z)>^H/ZZ^<_^LFFTP=?^."A9;"7,3A!(^2:37L3
M!7I1,?46"TU'17FAL-"\1EACWB'L,!\TZRQ6GK);K7;^EEO+_37M-2/W)[)G
M[5@B,8F?>)#5%I>R[#L6(5'7_9N[OWJRDT;E[W`IOI^]@P;]/L_L8$O/>#_^OWD\V]"7F-Q
MVJQ+BX>.L[!U&_IK`Z+5P`4$BD(4EQW),Z-'#NDKGUR3"0VDT_3(5X;:T
M.G+E56HDEK:TM#BT5W9%3E>(G\357^`J*!;?U_OC/;].P66^BB=8^+._LCY0QPL?[65?5ZRN?GQS)L8(2Y&?N.G&1/^?
M.O<[A2;#;H,@>02%E)T$;;%9=VC28(J"$&NU9KE1&ZR1)`]<0N8EM_8KE/8#
M%'_=B#X$4IHWCWG"R)W"@V/#8"O9'L[\7"8D/M_S\Y]+^U>4WACK?]LT\>+2
MRQO$NY;^;9.UP7)S0Q_^WFF0NDI4I?OH*AI*U]%[B9X[I`="AW2'O&^'Y0+]
M>JE%]YCNL/?%W!-Y+U[S/^Q;>W0459J_CZKJ>G57]3/II$E*"0D0)9H`!4Z0
M!F?`\%"(("!&$2$@GG00,J(@QJ)$9'20Q/@(JHO(8SPC$(:ZS$44<=799
M9Y35184CC#-[5G>$<8[K#"GVN[>Z0WS,CF?_F#USUE12=:ONH^[]ZKO?_7V_
M^T7.R9FV(1BFWQW0JRMC)[(Z1,9,[HS'4C?'8$&2-[2PP]V?@#+;S
M`^8/XZEM&:R@!F8P(^/B-C,%%8IAJDEE4@6)L1T8L\VR\G)*V^Z-'8Z1&#.9
ML9C=EF>",XGRS#R2=WG>M9RS8>H'Z)&1;X5\+XD!3/8,<6O"?$MF.0M9`5AC
M.$+"8?AV'!*?7Y!2SHP<\)G/8];43OV!UI8.&M7\_()\>J2N3*_\
M]9Z1PVQ?]JSZ7_YD>](13KW_4-7&MN./)2N,E0G-*5UZ:UO%HHZ;%]3W;KS]
MG7BB8[MPWRW%4QKNZ#@D:>-&E^:)XHAUUSK'?MQZOSUE29L$#QG95,F,]2IVGJ"+>#S7N>>-5V+:+UI4D_;FT+V<;0Y%*FY@#!
MQKH0T9^RN2`1VMN373VU=5M/SXI7%]TS(YM4U]5=>>C)@>-@94\P@1VR59XN:>3S0P>Y-3C#.\#4_>\42/
M./^99YR>,SYZ&ESQ.YQM>"IOT8^FQ16M4U6]G7*VW\41BNWG#6OLEE$VFA9@
M+Q':_0%_^B6NZ\]>Q.[2+QND&,:/\^.I>W;N6%.Z8$KQHMG\[4__^>2>C>&;
MS?G+A5A:TLX$-!8F445CDOG0'OX]`0/18]N<=X_V]."WGW8.DK%GG%\``NXB
M'J?''2N^A$L\'-*"T^!'8Y?/17?%"FCL\MR27
MCL@:E_5*UBN6@+50.",0HV'#8-IH&%PII+:$LE,D+'[T8/;R*=<\U;UNVM+-77;*_??D]:#/AAM$,WK0UZ86]G1+-MG
M1C+M5TT,4\\K>S5#-+TA6^PTV-P+P]PS3!A4&,:B;U#:U9#*1>EZ*`S0E;`]
M`]9QSLE\N;\Y.$S[[E^SX*9M/9O6'FS<^CUR]\;DBST#1^CIYX^T;.I'J97Q
M7>@3XSKF]7XN8+W3W94/,[SRNW@AK'@H$NB4&.\HL?5/,HVV6N4+A2A10&'A
MMF7T/'$7O'`(%0PQ@<3S+_^.I9??/.6<>>FFQWJ'^-L
MTW<16'.?+\BZZ0-3'^S43<5GZQ%#8$#D0@X>HPR&1!EX-)Z.X$C;:PI67K=TJJ,!`&(:-X"(8$C?[ABK?VOO?AL_^X
MTGAB4DP,8OF'($2;CL%#,-;NGJI_WGWRY/,+
M?SSCTBN\VZ]MV71/ZYH'!/2G7<3[:QS^_#]P\;2U>YW+]VSZX+D]1]_4)A=C\=':.SC$`,\R.L]IAK/C-KK
MU&,J44UU(>$?QJA*Z7MKC\#5T%M,S?B#[#[_$#0#L"*8P=VA'`@U&F8LA+-$F)Z8(-_!R"5
M-D`G(3O&_.88\_FNC^'8^;$7"-Z`=!GZI)LJP)HVG7F"3!60?I[^#]SM_\3U
M[)(E;$/I')U3P;`_HW78;IM+Z%0T?H71*81?SNI$.*M34)#/\0DC==*<#@,S
M5KBK&*M+[OK)V[=L?GT7+IM]WZ4';EC;\PH>]U&_\R"6,.C$.=-*(X=$]W3)S
M]'!83I-ZLAS2#7#[C79W.QF0FQ3BU%YI21$'IX4O9].''SX^ONYF#1>3&]8Z/N>SM0,;'F&Z"=JP
M'W!!$'0SFYA@?`\9V&!Q:Y2=B)_@\&L"]C*#DNL/V=Y.@0%&(1*0#;PAX)IA
MI5T.R:":)I]9C":"+U+![#!W6BI`-\=Q=YK31>X>1`G=_\.Z(P\_VW/+S%EK
MRWL.O/?+%TC[P-JNQJNW7D]U,QLFWKH`B*8
M$\`D,.*(TR05_Q-QA`N9_^C2'G2]LVV;\\`SX(=&Z&D&KQV9X/Z_.)_8A>O8N0(NJK96"VLOL1$?"?%=@DH]7]Y\]%8\JBAW&^9ADB:-%,HK@
M?`&++!>SW%60NY/@J_'#A#SE^85XR$-!`KI-,T$M=(SP)$T/:9I.5$W=Y8J`
MD4J37%+)(XFB+7L@Z0&E$T!X@D@]BJHC*DD&`"-!E$V.J:@E7\0".5+,$I.0
MI>LVB@.>0''3A)/+,"TDGGMAIGJE!:DH$\8(#1),%8QAJABDF`!+^3-86%=:
MDM_$+[G[*(V-<((?MI?BTDN4;^@'X5<CD,]?KHQ4@=0V]%6_8+[XNOBN^HPF$4%$2!0G&J,H>D`@:!)`@
M%%&4!$6A*ITD*"$>PR!AVXUA(**L"8QZIT(8)$8EHT/%[1)N%W`':!S+%3BB
MC*=)#!:+!_BRDG@DB=X+#K(NW,!E5%+$Q51<7%3BSYC(!HD8M,HH`2/UE9`&
M^:!<"CBS5$ZA33?MLO:<<6,"P;2BUSGK?/$@GN?\4^\[[SW@_!M^R%E&=/R1
M\Q1>Y)2"-#2GBY:#-`ST0?QNE601(W:H0H:4\PR,E-Y
MDO1IKRGO^B0MTQ\`*VL&`($93==LGS?DTU2?UX"VG2*V5X#4=W0X"EXU;IQ(VJ'==T$/Z.22))79U$3]^I8-W4NF0D@
MFL*B">[$`]$PC2EV[1FH448)VW*[4P3I^)AXQ"$0G.^Z5?!@`3SH=-A\6I8[
M*Q8>F#1CT@4SJXN=;8]B'^"]TW_N_BR\UG?U=GIL0"&?@WR^#]IR`A$T%F#\"1=TD+`NRV"T9@-)E37Z!2(H$6L*7&M;E$D8-#,`'G3R0
MYDS9-V(1?IA1[9A>,)!)HHY)^@?>:FUM)<[:^6?>8[;A=?PR_2V/5(W%?8.1
MJE@$_XI'UA6=BU"EOSUS(A6A2O'+8OFWJR66_^E97HN@A^BCY*><:_?BL7U(
M84SB>05V5!FE$(U!(Q8CQ*_#68QN*A=,$*?C62X/*@Y"MHSCH\:SX`1IG]X/
MEI@O57GYMAB/9,,I)\\677=1MT6BJ*(`=L@ZCT<$?[J/1_XRNN_\4?Q!/,BB
M@..#$<#[YJ1:U,"TBZ+"*O(`&[@JB&^-OAA7?5[>AL]O>]F<]'H--VJ,,SD\,I&A`X`"C>D08S?&.(,G"QM+!TI9
MR!;7+L9T-Q8&QP5+/"7A$O?RT"/3&\J7/3:CY2KZZ"ZL?OH*/X&<[P4Y;T_)
M606$G0EBC"CY(&0>A64R\?)G0T.GA]MJ/X_8=05)XUPF.6X0]7/,PE.98RB]
M@`E>%_=Y)4H8.`LQN9IOIOIM5=738F3A3EZO;V@\]J#XOBP]D!H\8W]D0;K1WY^J%7ZB]Y)WH?
M\-1A=,E@`]__P;3I
MEY?-F#EK]A57SIE;?M6\^57EME
MU399E59SLG)I]76RLI6:TFUE:RNJ6V"*M5++6BZJCK97`G7&UN2M4U+:ZM8
M^:8QUIQ$DJ>LJD1#:[*V9GFS-;NV*IEH2BQK'MKT&,N:4E=G\1)-T'13=7)5
M]=(QTV=<,:5L9F%Z`&[_+YR:2*SXW^3\W\H"5+<,S4.7P74:2H+2UJ,5J`[5
MPM4"I4^@9K0<[JK@KA8UP;D2_IIYR:6H&JV$:Q)J6%!R&9SG0>EJWF8]E*J&
MO'HHT0QU$SQ5Q\NTH@;(6P;W5;ST99";A&<)WFZZM(56I]Z]'-+L3:UP7<)K
M).%F.E>EW%GS1#>??^1M0"]ZSL4MY:NOTFQ$8_A[_UW#-6/P%]
M:>5U:N#=S?!L-J^9A)PF/M+FO]AKUJ8%1J".C_5<&TVI7C?QWJWB/1[#SA6@JW"4@[V]5Y_^S/C'+23:CTZ@4NB5R
MIJ4(P?I'MM#Q?*W%?/5%D99#>ZXW2O^(LF5N:G>WY;2PZW/K8ZW.ZH'%\L6>
MQ^%625ON_Q9@`$QKQ8T*#0IE;F1S=')E86T-96YD;V)J#30T(#`@;V)J#3P\
M+TQE;F=T:"`X-C0R+T9I;'1E%75M>Z8Z[6?V5G[E>R\=]@D/`($B;`)1K-Y)*!H
M"4@TP5MM;ZPNA$#02OBJ5IMZ[,5'SV>6D6+
M55H.5:\B6?O^8ZZ]`;$]/;?W^\[][G>Z%V.-^9YCCOF/,>9<7R!!1%FT@E1J
MF'%VY9CVE^?/0\F_@>V5W=%+/C#\A?3+HM4LZ
M+UWX8>3RYXE4)Y$^ZM(%5U]2=>;N740Y>XCR5G2TM[8]N^GF^XEJ'L-XXSI0
MD+7764;D'(_\X(Z%W=_^V;FOGHG\^43N\QV?KM3
MO\=8C_Z;T3ZZJ'5A^Z$?O@5YXH-1O[AS<5#*-!/
MI!DDU%5B`^GDU&_7J]!BCA*D)1%/165M-QO]-G3XY2@J)?
M*?KMUE+1Z6@43T:)[OS=&URK-U)
MHH-T)2T16;09SV':<[3.1U4QM(R93==1[OI0=HM\N@12M&O
M4__@3\P5,T2MT,0X.BP28H@8+H+"1\\C'1$3Z"XQA'Y&23%"Z+0/Y9_1\[2?
M;J:?8$5`E,@!#<<*[=64I&7<#_I,Y*+\W^@[U"C&BK&T51DO:BE&:_%,P[,4
MST0\K^%YA#[&\R#-I4X\U]*W4;:/;L38VSSN
MR;')[>Z1(VB;VX.D!RFT[=PFZD\3,J'4UTW8II`S:^2(9*`BJ935,-MB;:WG0W.MD'$;J65U';-9CW5,+1W1I(;!Y:L`)=&ZCFAOC-51U]&"
M=VP*>OW5M+MU3D`R`UR7]%4UH!;2WS><[YK2QGW?QH[[IV
M*>MZ*8-L6M>!C6G]>ZUZ>^O:8G5MK6V3[-$G)Q.S):/99GQ,GZ
M6'U+;V]]+%K?V]+;VI]:<7$L:L9ZMTV?WMM9UX)9&YK0JS_U^+J"9/WZYJ39
MTB$F0/>,@/I939"E/MK!"L2_VE@I9/(W9ZH;FFKM+`%B`)I'+@]:P;_3TPQ:
MI]E-I5$HKK&IN0!Z:^+T;*1MSL`"D,=CS]-J9)VUCS^JKLGI9&DIHW5=?X(N
M1B:Y8F:3G8_2Q06/4J*R`OO3PC5[,C7A1JY9D:DYVKTEAED>(X[+X:2S_.B_
M;#,G6-@T?IU-$'?31/$]^@LI9E&@BI1
MOAETD9)-"T`1T$)M6NH:E$T!S0%-!`T&<=LS00V@*T"G@$[G]MP7Z;4\#FB;
M%J8"(TXSM'<0K\?16EVG:?IHU-](:[3%R,?LO#*3UJI>\ND>U#EHK?%[G!A&
MH+Z(IFF_0;H<[2:A[L>(\G_$6&-HJ;8D=<@X0C[M5Z1J(U(O:'?1,*P#,E,<
M_#0<+5Q\.`%]I#4B?Q[Z1+"&F5C/5)JHW$@%VD(*:W-HJ5("*D_]J]9DIXU;
MT;8--$VV7XHV4Y2?TU+U!?(HKY#`>$O5.U)?ZL^21_T+9-J0^E)=*.<_6R/1
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M8?QE.`CX6ZDTI':`^Y69J0_DVC.$OV<9!/.04Z9\P"-XQ/Q@CC`YCW2?U`=KD&X%WBS-;U'6J$RD`C0?D.-^6!
MPJ!\V(R';89QRS:3&5OB"[C)<,8XVS#CG]E".-8<X'_!7>1W0Z]7Z#+2O@UW!
M#\`6?RA]`>Q1DD.V69CF;R*;>(;_)?4K9^43K,O@)NS/[
MQ';(MI216:-43-KH.ZGU\:\@;;PN]HH.I77R;(:
M1-/9UQK/P(=<0^/95J3?_9PFP@=.@[VQ?0S2.JB+R[1[Z5KUGM0GVG4TC>O5
ML^PVR$^7=C01>_U#U*^U?:EZ=]J'P9]HZQ!'O$AOP-AUJ<,\IOX$354'4F\:
MN72%?H1](M;(XY'45>9
M.BC7/C/UEFZ"L[X/H9SUM1GY/]GZ@E]\'_:8IY^#<>>`CM?7Z+0O=Z*,8Q1L
M2.HJD7HKHROL^2;=1?,=2=KD>!+I"U(O.\*T27M#RE?DN!]\$B[1;)-70=ZY
MT$4A=%.4.BAM:W?J#^I'\&/K4<9T"NI_G-JO?XET3SH&-(//M&.;6I[ZA#&E
M/R1U3MHU*#^5+D0\6V7<3]=JUZ1>-DIHE<9S5%">L0;\=/@5MN>VU)MR[I$8
MA^-CZUM1'^E9EN4V9]/'\1!)[
M[#KF3,?7_9^6_R.D[-6WPH;3I+V.F`)2WJ#SF?@KA.-C,1H4S7#4/YJF%:#A
M:/:W`HWUY54#B.^?;<7)N;IN2/^OV2?^BSRQ\(AR6_(\WWIMOO]=GM?Y-C
MYW^3E<4\X7HCRS7Z!S8,AFWN\DM]97BY[^>YTN\56C0LF7%EG>WJ#S@EH@]
MT99`V!9GBR=[7.)AIT>6WI)>Q+[\LL7:Y_/9$^WS>,8E?CIJ%%XE
M);+JB;Q\FZ?7_X0]5"+X!!26^&D69OFI$^(_XHBD&?=Q]
M1SA'=NM+=SN_#ZN^Z/KZD@M`YY]77_+BK^I+WGZKON2M)^M+=H->>+Z^Y.?/
MU9:0G4O+`YOJ2.T"W?[^^Y#;0NI[ZDK6@6[_O+'EM=:3DUS*N3>+='M'9(T:,S!Y>X1LZ++M\B&]P6?:@F"]:FEU<
MXBLH+,J*Y.5GA7-RLP+!4%:VZ?=ZLWQ>E]OC-1Q.KZKI7AQ(O)5&@Y$TU$JU
M@1K4NRA)2=5PX?3D+#C%69(]P5FB5CM+:+RSI*%*)`/3:?KL2`\7E3T&%Z/J_:DO$KXL7]PU2:^D2=HH1Z]2>>#3?0/[*JBV
M]J31@ORFJ%+\9E"<8;TO8F]]_*&U5=PB'A>OBC76=ZR3K'+K6HQ;B7%'R''/
M?4PO<*F*'#6QAV)O+QT+IB#7"`@<]L]
MOKBCTE[=P`F2Q`)^4Q4^46R]\_;''^J-UJ76-&ND=8U8*5X3;XMED&2!];2X
M6XS#HN.)@+I=%\)(Z@%%435-/,+KW;/=[X]+[LZ*ZYBHYD!U9:"ZDFK!S0\Q
MDU^-!6-^:
M>`5NHZ#W-L/ABOA\<7BQ_=O!P_UH$LC*BF>;>(77NOKSLM>J.R/FYP?P3^Y?
M[8%:)$X:K0_"`JDTRF]UD.$WM7UN7:;>_:AVVOGCI%RD1^17T,`>1ZB'(ZJ6[=I&'
MU>J)>UC9!2Y7W.,A(2B!?:>$RQ,'ZX"APYW7(W@D%[5[`:
MN5>%Z.YPJ*J^SNU,Y.;&G3R*,^%TQIU.-QKL<'OB;KS$D5%4ML)5R@4]_!&F%C$=IM_L1U:
MEQ$E.UORA-N;%?=E)<+A>!9G
M0=9,+H"3E?`'XCDF%NF,X)6C.-=RW0YN$Q3$!'_!79PP=,&&$^EEG51GS!UK54O^X
M^&`:>W)Y;)!:%B@=HX5#I&M-N4=H3)?($W3).<]'K0\O$LE#0K7^P_J^,*V#
MPE4^\WFA+IAQJ?55K?B9E=QAO?Z(Z8][6#;/4"C'
MS4MVFQ[/#2YWR.5RFV[-R4IS/N`2$EL1UJ#';03<#K?'94[R>AWK-%45&J\?
MWD!+[P7S/NA#TUPR_`)'+K9_5P*5KH37&W=)'4A-U%15,H0^\%=7PQ,P9FIJ
M!BJ`H=7ZJ(K5RYZ!#KBM\%>%8_!]I6-=HM1_B
MZ/./[/FS]:PXY<]JXL@>\5)!^7AXS%-@TU=BQ4$JIF%BU2XJYLV/1.+#$O(5
M"L>+)1Z0&,8R#DL`7+(H/\M$#DLN<;N'A8J'47'Q]Y!`)IO=7P0++F$$E7"/
M$MD0L(UG,Y9,@X'5#`X-MU)SNJ8-YH%.>Q
M3O)NE^.:*,YV$`_O=@)D.5SH@F1>)UYNACUX(<]2BIVC2)8_/LP]Q$O%2F$.
M"Y#3&P@,8<,9LE:1`(W$E31`F>^`:(KBQ`![=J)1X5JOMU3B%O6EOIJIJ.`17F%?.4%I*VC$O_LVM6^41&\ECUC/K/:9V(/*0-I
MD1,.::6#!H\].5X^]N3!58QG?9R$MQ$.Y03YQ:[QY'+UZ@'KWZT_'[$^_?0Y
MX?CD/>&R6GJ[+COWXA;/@]=]NV/5!W7B%X.X/Z]/F+5V):)A,XYRN0:Y
MA:IM=L%3"D6'E9!#54@X=-G*[38$#_^N$'N$V"!$IQ`7"9$0(BKP,RJK*B^P
M?U*A%=754#9%:FNJ:FMJV*76#-3(VK1=K&8-+WO&8=;4,,%,+K`U#/M0\8A@
MJ:H.%5NM^\^VZL^Q]HL^0PS:J#<>WBKRK#_HC;"1W_&98BW?R:$='T6HE"Y/
ME#@<-APWFXQNDP.`:5+^9E\@>S.I(8Y]4([.?M@?DIPAY0@MYZB;,$.%<5TO
M7N[NCYGY/;Z^0>;G`S6(AEC1@>I,1)21X4!%7G4EPD/IF!Q@PL$OH[04=BYW
MOSRFIE.QMNKZN>DK;;S]?WM'6K3?.OJ/S_3.C
MNSMO^YW69KT^;_3)TX,#[UD[FV9,:D%,F0;[WPO[#].O$A[5"<%]3@YK+#TL
M+,3FE"/S7R1*X)T\/D0W$AP&A`@Y-_J"ZL:0YN8^Q&VA$>*^,$P_:\+F,B)Y
M9$3R;G;&ML?@?Q
MX"=BFB@4GZC-85%J3;92.X42_"PEKA1GB+&B%];!^_^1/-L%Z=1$V+/1%7!O
M)#7;1,3-CF`]V;RQ<&FYD;C.?DWO#WMZ7'TA>?L^ZU7K&&BPG7/?)@ZX9VO?%[ULL?6;^UKM+F'+E/Z,GO_+J1
M3Z]K9/QOQ/EK5B*F;U(2@P?;,5IA#"J*,#:Y`F*36\7I!:'%R8J%4\3))$LQ
M()&7H<;Z"V1.?+4'9#RM@'""#\[I1VL:N$(ABY1U1T:KKV@S<09,67LMM@(A
M]3%;ZN.,1(2E@!X4-@A%<6!V)TZ:#AGP`_9!`"+@G$4>B.#HD&=A85A39-NT!W*Q=K,@@W9PH:J"]`O"2]W,40Y:J?Q#?Y%'V#M
MVEE\'%0':K!$&'+$UK14>JW?MN\*&[<2M7SPCI4/,=)8'4.Y>MKELY67CM62
M-YG%-[UG?6:](4X5YCX1*;%>*7MNU?4;KC]GM952WAXH/ZOA4;%<5(IZL3Y%
MKP_]XN.W7_OWSJ6I])[=+Y%S6J+`3)63/*)['
MC"H-27B5``Y!/0H?`>S``K1D*T+IT\S/X90/V#<<#"F>MY[FH>P=QQCJ)TCJ
M%-]!F]2`IBKI`Z;DF=$\3@]CCWK4/@,V9\=D##F0`;5X42DY\B]BBO!)"-N6
M9+`E>47E+C(P1M:H4?&$(288(F@(B:=3@^&XPXE7HU><3^(BAVC019U7G$EB
MAD,D=#'2(0;IPN'Q>M.QC@Q=WVI'0(/E0TQCGB@!3C\TA*$*CQ"ZVTMJP*&K
M#J^'=$/`4TC8X6;HXBCHXA`HB[RAG'B#2T019%URG!#:&`D`]1%#-!BB!$,:
M(GV2%"OD^=Z7EQ^?H0J5[R-J7Y;Y:<4%@%E5'D=.'"=DK!-A><0PVF;^YG:]C_:E^G.!RXLHTO)"[
M->&"$2L=>"'W)@[@V6D?UP#S1%$R,0H)Q>OQK%25D*HJ7E7Q**Y`M@?^$@([4O1+%XU&)[J[3%/+'+D9:SUMS4ERB\0)3)QU(,HT0,BQN[1`%*P:XS>57NL3ZS4Q1A2(
M8A&S?F-]=.3(IV&Q192+"K$!9GS`>L/JT*ZQZJTZ\;AX@L^%'&_8%+,HAUH3
M'MJ,&UL@9[.J.F6DSY&GA#Y`+;#Q8-_F+1U+,OIG2^"4?5A/BFW3(3*]G!]:3Y15N>1'QF3BD>"*P.4\#
M[-*#TQN.*2%[N2APIB]VDB,.2HY)Y?)-UD,".'4ZLZ&!OCQVI^G+;<4!F:CF
M6)PY]=5PI)"'/@`S4K',E,@\IA9'L-3#!X?3A#PYB%]:NY6F>U^X[L`1Z\[7
M/GBFY=PI4QH6*44#4,)9+RW__+*!'RM%2IUU3\$%-=5SPORG&,#H!<#H(%&S
MBUP,->Q(841"RSYM%?+&0G[)X5;RV1-"=W%7?F'A2H]EH)F#L8M,%81Q>/;^P6-X6^#L.WTDHTN/M
M'QQD=0>#@02\2R"@]Q0G$+N+=\88XQ]TL8__]=N:_86R*-1FOD#N=69
MJYJ\J='13PXEO>.Q,*P[8QY>0
M3\0&C1)C,5FH6$B@^K4G+QQX]MF/NL5Y98MGSKF\#"[SX9=>6-F]]R5UUI&'
M%W6<6C.W6YT%25*'8+\]D,2@>Q*F(B^A0W/S<<(#P`1'BIQ\_G#R!=N9D/#C
M`X")J"`8?B.!#H.$6*4;(5TW%%W3TK%!5X42($-354.0HNDX'LN;F`?VJ3-@
M=%VM1(R4`?)89*R1YYYO1,0,7'"+%*4NH?58[=;]UB5BMO"+`OOLPH=FUBTF
MTO@,Y!&7]VF\(.E4?(Q:!KG&+[=EU,U3+0P(HBVQ%'(X&E][,5D;BC41!R%LY"``+C"&[J#
MTH=?KNGCGF2?S<)\)GN%?/D]S/.HWMCVZE+P>;POP*AW6*M$_=:
M-UA_PO,J4KVB^YW].*E^=Z!,'+1,9:_28[6*.X'!%[!C<[%C3GHCX9%;)IV,
M@V^R&6[[.]QL0Y(GBH%`N1^K2(2P[0[#X316ZAI0J`F^7.Q/Y&!K-8>NJ`%R
M&KKJQ$G1X="D4EVX2!,#0>9\:(@A>C1]*,KEM=*'.GTHRC&>L-R`\A-F*K*\P:UI=4E)[6V-$/3"YYS&;@SK7.MO989XLNH0L5H/WC
MP--*K9HS<%B!&='=X@=:ML)_7>_?H>XF!5;$,9LJY3TV7'JWNO#()J7[+793
MX;_Z3*3ORN
MXG[??S[_?/[Y_/__R#^%MO\L.@3O
MBI3(!QE__[_RJ&GN\1*NTT3!4)ARP0LR#0:7E0\9.FQXQ0BBRM$GC:FBL>/B
MXZOIE!KZO_@]2O]M/XV^C7<^F5BJFZ(TC$;0&#J9QM/IU$#G4#/='`WR_WY"
MW5#4C99U$^E,FD5-=EWJ_6\^5/CNG2?^;?K?4.W?_GGIYJ-C/$7I\SGZY2,G
MTM+GTUOIM('T7])I!RT76;S3&O\=QW*Q+IT6-%QUI=,*^=2J=%JED]6)Z;2&
M]!7IM('T`^FT@XZH[T3Y/ZG5+VE==-F">8NB4Q=W=\R;&YW7%6V-=B]I;6M?
MV+KDLNCB2Z*S.]JCIR_J;E^RJ+5[WN)%K0NBLZ_N;+^D=6Y[=/+B)9V+E\CB
MZ%7HW1%=V'IU].+VZ)+V2^=UH4M[6Q1#SVU?TMT*/O^*)?.ZVN;-Y?9=HZ(-
MBY?(5'3NXLZKE\R[M*,[>M:\N4L6=RV^I/OXH4=%HQ,7+(C*%ET8NJM]R97M
M;:.FGO&MB=//K,@LP)9_Y)3VA?/^D9K_M[H`($^GV309O)Z64"LMHLMH`K:!NV;*-VFDA^!+TB*+E)7C/1NMV.>8BM&I'W2*T
MZ$;?Q3*U0+:YFCI1=PGRZ6KPBV6/)7A?
M*B6R9VF'--&TU'-E23?:V_GY=`7RW+9-CI89OXMX]0URUF-EW'\Q9+E:]KD4
MC["S9CI<
M0<4W=N!X_<^2*[X"-:SQ_WJ_D31%[M.\_[8^_Y/QQ)Y3N84.40WQUW\A8V4U
MRF[41\$#VO%3(3IX[KL?7I1=\QD5V/\7]J$'SKF5^?::SPX,I`;6.WL``&`.!@"
M!D6K7(4E__CG"[TH>1%AK7^@7\Y]YS9N_K3HE;L`#*G()VSL
M&FP_O.O9EP`2N?U(1\#7]NJS&P(`*:\@OZ0#!0GY[#L8X&;D%W9L[K_G[J;E
M5RL2GT?\@VLM;?)L#TI'6I0"S+J/]
M)"$0,9='Q44X0N849@>@G2;%,U$DE!@-5#3"
MUZZ5W5NZP7I)OJ2)#TS6DT52''EY:%HKW@;%X@K(0)C''H9T`.U,%,Y->K2+
MXIV@3&[23F^&?)1_'WX!
M8_!'L$$;4$@CVT'6?@0/0!;LA`-0)J1IQV$%7)`2(`460CGI!@/,AHWP.#D-
MR\&!8U1``WP/>K%?C?+/2"EJ",3";1C]87@,3L!OX3]@+HY8`./$2#[3_@GJ
MP(4Y;(-1^*-8*^Z!6?`@/`V'X"5XGQ20@^1#]I%V7'M#^T_TRH%B6`+KH17;
M#^`G:/5:37U3R9J<\`(&2"#!?-;`YOA/M@-
M>W$6C\(3\#Q<(-6D@[Q)/J(SZ!`]*389G49GS,F)WVL-VA6,$0]FS/96N!/N
M0<\?P$.P#SU_@K%>P78))L@24D&JR'+23+Y/ODM^1OZ;6N@[]$LVDR6P/.9A
M7K:=O<<^E\2)59/[)]_2FK1[L)8$:QZ+*UF'\VR!#=`#?7`W;,>[9#<,8PMA
M]8Y@4[&>)[']&OX`9[&=APOP)]QS(LXQEN1B*\)60:RDD:PA=Y"-I(_L)R^0
M"#E!7B4?DLMT,5U"R^@JVDPWTA[:3T-4I6%ZDIZC?\8LRYF=];%OLR/L9?8Z
M^QU[6P"A4?`)G<)6X6%!%7XO7!(N"Y,BB`JV`M$G'IAX3!=DXGR9<53^TX\[IP787MD&LW2ZX)%V!C[C4"%%YX37AE'!:+!(KQ"`V53PN
M_DH\;T@RI!L6&UR&B-$@#4H?2)-P%%Z#,!S_^KU/=A,3"<.SY`,FL"'Z!G73
M.#I.=@C_0K)Q!2H)B,.P!3[!#.>3W]&EY%;F)^NP?CM(.UD//V;SV).L$=X0
MMQ`7:R)MX!+VPU7QU^`3@W2$43'()LCG]`ATP#"]<^*0YB$SP44.TJ=PQ]P+
ME9`CI,$X+1-&22;-H2>-SY$(5!D-K(R52PG('61G,4V7E$`^!!][#^^?,WAO
M-=.G\)EPGIPVKL+L)MCS:',O5)&#DXEP2/10+YE'#Y(5$SLG_IT]ICU!YM+W
M`"82)VIH'>ZX-=IA>@(^AOV3GPOOP@GZ#JS!IX9?OW,^P7OO;GS2K(6K=`;>
M3RY\CO18JZNKOE5945Y6NO26Q8M*BHL*"_+S++DY-V=G92Y4;C++&0OFSTM/
MFYLZ)V5V\JRD1%/"S!GQ<;$QDM$@"HP2R+,K]5Y9S?*J0I:R;%D^YQ4?"GS7
M";RJC*+Z&VU4V:N;R3=:6M&R_6N6UBE+Z[0E,J5."UDZ,P,9LQD]9'MJATU6B5>VJ_4#'4&[UX;CA>-BZY2Z
M0&Q^'H1CXY",0TJ=H_2$R9PJHA-TCKT\3$&:@5FI:8K-KLY5;#P%E67:?6UJ
MTVJWW99N-GOR\U12YU=:55!JU02+;@)U>AC54*<:]3!R)Y\.[)'#>6/!!R(F
M:/5:XMN4-M\&M\I\'AXCT8)Q;>J^_7IO.@O;43IFSP>#]
MLGI@M?MZK9GW'@^.@;XTL]X;K,?0#V`5'2X9H]%='K=*=F%(F<^$SVIJ?@'%
MSB7>3;(:H]0J'<%-7ER;M*`*S8/FD;0TZZCV+J39Y6"+6S&KU>F*QV>;%TZ&
M8//@T;E6>>Z-FOR\L"EQJK#AF0E1(G[&]41@6J=3NCFG',W3E24\(V4Y[@A5
M]LN8B5O!.97R+E`*07\IFN'E(>BEMN&*=*HQ==Z@J9S+N;\J9IH4.?@IX`Y0
M+O[I1HDO*C%DFCX%3O)],KW74'^-5BT6-3>7;Q%C':XIYEBE\[?DYPU$:(W2
M8Y(18?F@"6OK\Y078OG-9K[`>R)6:$5&'5KMGN)E:$T?`6NAQ:-2+]>,7=/,
M7L,U0]!7?R,>#O=+-5*6OZEV!*F67O*%=)RE]1!Z;T#I?B6+W.+=N#
MWFAM'2TW<%/ZTFE=E%)GU;E9.HU2-)WI6MR4&Z:-.>..5X5,_!GT3=T6,4JX
M*W4)D>M5DW?95.^)-9O_ETX1[1+WTM%7;M$TU7++C7S%#?P-Z<4'&28L9%%'
MR[I@,/9Z'?"B27&3^.XJK9T\/UU0G@33U5^?8%OJXCH83@G'@.?
M`)`IM,%JPV%H,)3!,K83RE'7@I"/N@=1EXGV6Z+X05JF:2AO1+B$D(?@0I`1
M6A$\""L0MB.LIF7P\'-:?$U2!;7PDV(DX3W(4TX"]F&=%@F
MG`(%95D8?Y$8#TZD,\5[(=DXG_MH%Y!?8
M@+I2,0=J#1LPWEE(P7&>-GQ`-B%N%&TH`^UC`=C;.'8+YC&(4,\N@QU]EPL6
M:&"-.+]3D$^?A#K$=M3/1B@6?H1SLL#-2//\ER+M0=R)-D[TM:"^`>M9@[DV
ML4]@/>)"''<]^S_[1IFBZ"=UPY/^,YH30?1OQWCU+#G8%.TQAP6\E@2P'GA
M%"V30-N+$>>H0S7]%-'\=8YZ%6->::_Z&1LA%
M'PM+`M=U`--P&=\W+N-WCH[)0?39BOY5M!B_@^ZE3TT!U+$D[2&61&^;PJ`@
M_1T=HR\Y"/-J9D,2S<:61;.@FZ3@W7&'WJ_2^VJ]+^0]+1PIS,B(T(*1`QSE
MCFW$&X4AV2<;NRI*,G0B%"`/(
M<[OLPSD9W=G=F[N_VWV_L!124G"5DQ(E:X2]"CV>(A#'?.#HU56
MK[B4"(G%!Y6HU!(UR0&.EMI42!FH3JU.JDHLJ[=]0^>-]I:OKE3+]9>C:?!%
MR"!;^<<7Z3]JS'C(R*4NE(9T:8A+0[HT=;ZZS^%RJX?G>]023FCS/>1HS7'K
M-OX>X%7L`02ONF>@(U4=:I7EL/5X]`4AR]OJ[^#8%U"/*P&;:E5LH
MMW%UC6(+PS9[BSN\S1JPC=18:^R*S^89!2=I#><.WQ#N>]?"C4(N:?W+$2.D
ME0^9RR,ZA[\AXC!7.WG$81YQF$=T6IUZ1'NGJY8XFMQA"6H]>/CH^"B-B\6E
M\J:;/;4IIIXJ?=TJS*GWI?]2`/(,Q.%9'(_O=3,0N"J_)K^&JW##<-5,_LH7
M5:7>5V%._R5Y)JHRH3A1J07+5LO7KCY^0:J]T\8!,QG5QNC02%)&B<7#SQG*
MCR"1_P'"<-$JK`L,1C_*1,'/(-8@^AFC:3%&P4]@KI13FFIQFBY7KIRH=)JN
M5*XT351"=>5$)8?B(G.B.3$3.]S;<%5F8U>M(GR))\Z8?LJ=HN_@LR\.S*/`
MR#'KS!@CI,TPS(V?\;&9#VMQGC.=A^J5%XN+2+)!N2GKEL5+%I6DT'?&]S\R
M/O[(_G%:,X7']=.QY/]9\_P?:_R*Q6_^:^\OWYYZ@@'?10G(3=$"TL-1VH#T
MCU$+0@QRD_#S*$U@`3DP)M/O\`?F0
MW-(1D/E?WNZ>WW]G=U;Y)XN?X%L\_7[_H91(1],=G5W;>62/GGY
M%O0K+BLKRL>NI$"NZ>J2FSLW=O3WRG0A
M;D:?C9A#O^[5C./U(?3"`/9MT(`GFA-MG=CX/W2#L!E:]6@K,3ZWWHAQNS"_
MWK]A^_=HIW;G&,82]=U(P83SMR)U44R8^DN'2X?@M_^5RNY(J/Q4FB_IXI\N
M>[&"XY$5_WI&TR:KI`^D./W?[NC._Q\!!@![&GYN"@T*96YD6UB
M;VQ-5"]&;VYT4W1R971C:"].;W)M86PO1F]N=$9I;&4R(#0U(#`@4B]&;VYT
M5V5I9VAT(#0P,"]&;&%G%LP("TR
M,C`@,3$Q,R`Q,#`U72]!2DO4F5G:7-T7!E+T9O;G0^/@UE;F1O8FH--#@@,"!O8FH-
M/#PO4W1E;58@,3,V+T9O;G1.86UE+U1I;65S3F5W4F]M86Y04RU";VQD350O
M1F]N=%-T%LM-34X("TS,#<@,C`P,"`Q,#(V72]!7!E+T9O;G1$97-C'1'4W1A
M=&4\/"]'4S$@,S@@,"!2/CX^/@UE;F1O8FH-,R`P(&]B:@T\/"],96YG=&@@
M-#(Q-2]&:6QT97(O1FQA=&5$96-O9&4^/G-TO
MZ+>0@_/5T10E>8($
M2/8PI6:SJKJ.KP[JPY\>(_,R7'WW=/7AZ2DVD7E:7D6Q"?$O+@7^2].@RLW3
MYBHT+_C_J:$_KU>>\9]^O"J"JN3-_`';JR@(XS"B_;(C-#=1D)1)9I[^J$M/
MO[V*JZ!*LXRH><;PZ@G7+`XRX8D=7_#831&%M/-_](__MZ<_TXE3/7$5I#F8
MDX@Q"7-41I!!3+GS7Y`7$KF0.%52FI1!5$XG#,(PS.F4-_@49Z3:+]Y?ZF$T
MO3VT@UV8>_OL)T'E]?Y-D'M[_R8/2J_&4N3U;R:":KQK']0\$X?T)0K=Z29[
M!D56I7**F[2(3)`6%>3L[=62_.+$+DD5E.GP:U"6M/W#W9";9I#[9FBV5[\/PZ+\@]!02\%.H!8>
MG>FH9O)/N%J2)7+_9E(M:382S7[NNTTW6N/G7M-M=NNVWC;6O+;CRM1^$23>
M#FM-_;RV9EV_#N(H41%D55G.R);.8DDA=.OMPKQT!]MO-W8[UFMX;.[U^[5E
M`E60A=7Q<>A2I=*G!T//]_9EOZ['MML.OR,!)R]U^KO4T$U#,U=MP"1U+.(A,(S8\6-8TB8E"7)9!!G#^4J3PZF7<"8K9]#
M\&6+4&RW1N6POV.3_0<6BH*BRM/_FX'.'?SC,,)[VP'^W#3=GE63>5AKU^WX
M9I901;U8V=Z2WX]0'[3CW\2>?E[YV"TG#%1G:9!6$[;4G#N?=IN6P;VYMAU>W7"V7$=J*[J_9E92#>=E&+]8%+!`''N!`[1#DL
MQ.3[!5G_>3^T.`?;/8*,PT#4[+AJ&PHV`)U/[*
MDNU?L?UG9A_:<5^/>!@`2U$(8]>CV=1OYH6H](!C=D636,%A,*]VO3:XPD5KZ'XT3<>@OET";D9V\A8&B,67P0.*&\9@"N?*%4"O@E0C@`:Q"9(JAP@%>1A4L7LAS/<_X'3;3A1XD]EQ%EI(C:/_C"J
MU-R/GS]1_HF\[Q\?".&^(V55WL-?'IX>/CX:O7D/U9<*7^<21V5"'(Z,9H(]
MOB=8A)(B/IQQ\>WV=89)3.SAF>1?)IK9.&0<%[\:<7*]X]XO:I$1_OO@>Q/V/]
M1U@X-:\@]5?SY6^A65R%[QB[\$7O?P_Y7=`@44*@0G'`A$251<
M1$_D@J?_QR!IICT0KCOR@WQ:$L"TY(6%"QU`PIMY1=#^TX"5/8#Q%/S,Z@S\
M14M!Q%4+A^MN9^N>0*-EDJ4W"@/&'QR'F?Y3J@;*!],VE8PB`YH`]U4[?)!C
M`KCBW1QXY<$;V9%3Z2.U^"7,94;IWO=)CU#3_2P>C\)1GNW?I%CST+IOM+-
M&=.*Q/S)!T0FDR%5B6>&E`HT"--4PZ1[_M$VE.S6;UR9V.72?8?G((!.8A^Q
M`V_1C)IX#`/U>NB4!=;Q;43&WN/EQT24EM-G;SK&M+A`3O
M'3Z0PT_.R@S/SWA:VWC+>M/B=+UM+,X%[]M0N0I:!2EV=3X/,&C7H3Q`W9K"FASOJ7=$
M`!SM?L\QJD=R,LS*ICFX985J\L[V8XVRLCFSCB"SJ+G;,_[`F53&WJYK9ZFP
MB*KSQ@3T-;PE[/;DQ%9EGEI%1>1"E*O>ULOX)I`SH'*LSW7".RT!'?O91`#\Z(%GO`S3.I4=-&8K:S8X\,A/[)=Z;N16.4053QUX:
M7I-+'!&4.)Z4BD7E^CU07/!#U(Q4T,)7CWLB`H9?'NYN?_WJ7W,@B@"HJY$_
M2"1T$X4^-(PD%]\WMPOJ]J'VV\;EQ3*/DR-XYFI1D3<%I\03>6NNW#?<%$$J
MJ[((4O_R<$NRP#/O_91!D.L7),:??8+N&DVPO3YF2&;Z/MA$Q90SVKFC$.!O
M.VH!%^VA7:`P1I3:[4O]0JG18,\XI?J\F.=`S;S%E'G)>)SG>"W)DU(Y#;;9]XAGP`AH=".!
MD:#)^/;5/P:VNGW.;N]1`#7U?C@R!#QGE$S/SP1.FM=!I>VI[1GW%,4)-R85
M8P^E[E]JJ'%-+>M"<6SXU<4Y0J0GO`\?#=KPV0I*&6X@<--Q\6P-T;)=OQS[[QG$\
M/[NK&!VH-EV/)`':;M@@4P2H=-"H$&31*02P.DI._#)U!',WA4#\/*&8X\;8
M+#H<%!XO`=ZZ*1$R0QA=ND(4.Z?3,I'Z;3K47]TU#5$LBBHX
M*3ZM:QA'=5$%<5)=U@6):]G4#SAX=AVPE7Q=K"@E7$,6XX]VX),PI!A^H&%L
M4*P09)8S5LC4^:PT.)^<#&:)\*>4-<"6SI$!NS1#Z25KH<.(PRJ?S2.U,N6Z
MT(Z$*?P@_#;R5.D^55-N))&@NRJS_#R[1EHPN#+E=CVNNOT+(OEMUS8,2UO)
MI#@9&6`'C[6Z-+;ZX46J?$,R*EQW-L_:ZXJ8I[<:!6Q5Q"R4S!6>(
MI%#C[S@*>YJO:-$BP465"[JD&$4K!2C5,+3.ME%C`CN_O*#SW$^WF.?6W7ZVN>/TZ[
M+""HW]`4BGQDWP_S-*CRI-AM;>\.GL355,AD63KK`J_]+.'<1O0RM-9^1MHS
M2[J6IVMD$]JN6T<_DX%EED/"KS[M2HE@102?Z4KVRKC1:FES`M'HM0N2#S_#
M9-9TIW1+NG_AY]'Y0SQSE-N#GY7/YNZG2JD+BK!%SW7CF[F
M)](HYX;8Q>X;F&=$,":%3V9FW9Z/L]6U\C([OIUHJ="C>I,&\@O;4/K;#C(S
MX+Z=7`Q=_0'YK5W2B&,[3D'+:'LQX,Q=8D.SR:-_"H_2XRYF*X6&K/2<7M@2
M)]T21=<3YX=^1(+B`>B.$+(6=*F"W)L5=@SY\_8BS**9,W5^'"8\&<`-LM@C
M?R"SQ<@Y%)1Q&+-"X["8MO>\"YGO$RWS@$&>=U=LC\@8M+TB8F$*8NZQ@9]B
M'R.JCH=QZWN^%M/S*UQS-B&Y#CWB[HR\,U'Q#KI/OIW>Y
M[.Z[VS>ZMS)Y-I]5:5X%#05I0^]$DBDW'K,%Y5&?&,S2A1L>92>I@N$$;EGK
MO<7Q#0TS_T:2JN+TF"?XG8#MIW<`)%6I@W^7OO0UP##:638[UO?(Q`QV?+/Q
M*8*M>7YC0N*KBF$%4N=E!%2Q:XG8SX^8[>ML)?9<,4-`ZU,?D;)34`_`J%L/
ML[S%54_.@YET&J'?./8GK6A:S8$4S1T!S1[P`+.DA#;@5/%;,0=C\]5K/U4_
MR6@`M*355E&,`H+Z:E6YN0/2T=X0TN
MGCXYTB5'VN%OYI7(EVYZZ.@UX7'T^.TZ:7KQ-8_0]IT9CJ$?$S!H
MU-O6NC=#IU-(-WL/$]9JU$[1)(1UH*0UVK@5RY+D%RJOS
M>AIX(5P^,0]N\%/OW1DC3X]Z+BB;[L"-FI;>DW+Y_;M6N]R3V,-4VZ5%%OS&`KY/?\*"%:E,EP3>0U/_&&
M>))/J!8H"HE`2@E&F&Z)+K];4+YTHY(;?**)Y,A/'&6HE8);5Q&=2'(:MUF*
M-'G`.&F=#/+@1$>>K(\"LASNZHX^;>=V0DYW4&[NN],AD#[*Y`,0!C-=&T[W:6K\A52TY27;RXY=>9B#M_(=/)"034$FE44\]
MUV)-OR7[^'3U+P$&`+.S8$\*#0IE;F1S=')E86T-96YD;V)J#30@,"!O8FH-
M/#PO0W)O<$)O>%LP(#`@-C$R(#%LP(#`@-C$R(#'1=+T5X=$=3=&%T93P\+T=3,2`S."`P(%(^/CX^#65N9&]B:@TV(#`@;V)J
M#3P\+TQE;F=T:"`R-3DU+T9I;'1EK?[A'J[\LDCJLLSPG:5((?GJA-4_"W.K$BH_X;%G&$:W\@_X$/ZV^(X\S
MYW$=9@64DXDI&7,*1IC#3/OF=XBW(@HKXC)(65J%<35[&$915)"72UPE.87V
MH_R^,9,8U;,VJA4?U%.0AK4<@V58R&.P+,)*-G@4R_%5Q`B-O`L@38HDHILX
M\M[-^0S+O,ZL%]<9?+]:E!%,*;*P2$16QB+,RAIVCFJQH;JXR$M:AU5VGMZK
M`LAO5YSB$$>H#2N,K^I:E'$
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MTZMHQ(=C4(69[%L1%/(%85%X/.T4W7*B1_%`F86U.6Q>AB6R7DCQ,AR[%B'*
M9A>ME2NA)'5:5:\V>O+1[VQH2&.KIE'#S6"90LM$%@P;;\N'HWO>
M!M`0R[>_H<2PL*R+[$^KL=JZED?IJ<;6#549Q97MK:R]B60GFW_C55#*=;"D
M7Z:L$&*R@