0001388126-13-000001.txt : 20131227 0001388126-13-000001.hdr.sgml : 20131227 20131227143419 ACCESSION NUMBER: 0001388126-13-000001 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20131031 FILED AS OF DATE: 20131227 DATE AS OF CHANGE: 20131227 EFFECTIVENESS DATE: 20131227 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: 131300577 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: January 31, 2014 Estimated average burden hours per response.....20.6 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, 2013 through October 31, 2013 Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. Pioneer Diversified High Income Trust -------------------------------------------------------------------------------- Semiannual Report | October 31, 2013 -------------------------------------------------------------------------------- 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 10 Prices and Distributions 11 Performance Update 12 Schedule of Investments 13 Financial Statements 43 Financial Highlights 47 Notes to Financial Statements 49 Trustees, Officers and Service Providers 60
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 1 President's Letter Dear Shareowner, When we look at the U.S. economy heading into the final quarter of 2013, we continue to see slow, but steady, growth. Employment has also been rising steadily, but only modestly. Consumer incomes, savings, wealth, and debt-servicing capacity have been solid buttresses for the recovering housing and auto industries. Industrial activity is growing only modestly, but current corporate profits are generally solid and balance sheets appear able to support needed capital spending and dividend* payouts. The scaled-back "fiscal cliff" tax increases and spending cuts have meaningfully cut the budget deficit without driving the economy into recession. In addition, we feel that continuing slack in labor markets and capacity utilization offers the potential for continuing growth without bottlenecks and rising inflation. After observing the strengthening economic trends, the Federal Reserve (the Fed) hinted that it might begin scaling back its "QE" quantitative easing program later in 2013 and could terminate its bond purchases altogether sometime in 2014. In September, however, the Fed surprised many market participants by deciding not to start scaling back QE yet. The Fed has also said that short-term interest rates are likely to remain near zero for some time to come, given that inflation remains subdued and unemployment remains too high. As September ended, Congress had not yet passed a continuing resolution to prevent a government shutdown, nor had it raised the debt ceiling, and a quick resolution to the impasse appeared unlikely. The U.S. government's partial shutdown in October rattled the markets to a degree, but did not immediately have a significant negative impact on the economy or capital markets. There are certainly risks and uncertainties that continue to plague the global economy as we head into the final months of the year. The European economy remains weak, though it is beginning to show signs of stabilization, and a number of countries in the emerging markets have experienced difficulties. Still, a potential ending of the European recession, continuing economic improvement in Japan in response to the new government's easing policies, and a "soft landing" of 7% growth in China could very well result in an improving global outlook over the remainder of 2013 and in 2014. There are also geopolitical worries abroad and the aforementioned political fights at home, and while most of the widely recognized risks we've outlined may already be "priced into" the market, we believe investors should continue to expect market volatility. * Dividends are not guaranteed. 2 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 The Fed's aggressive monetary policies and fears about economic growth had helped drive long-term Treasury yields to unsustainably low levels; the return to more normal levels has resulted in disappointing returns for bond investors during the first nine months of 2013, but the stock market has delivered double-digit returns to equity investors who were willing to brave the "wall of worry". At Pioneer, we have long advocated the benefits of staying diversified and investing for the long term. And while diversification does not assure a profit or protect against loss in a declining market, we believe there are still opportunities for prudent investors to earn attractive returns. 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, keeping in mind that there is no single best strategy that works for every investor. Pioneer's investment teams have, since 1928, sought out attractive opportunities in global equity and bond markets, using in-depth research in an effort to identify undervalued individual securities, and using thoughtful risk management to construct portfolios which seek to balance potential risks and reward in an ever-changing world. We encourage 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 | Semiannual Report | 10/31/13 3 Portfolio Management Discussion | 10/31/13 The environment for investing in fixed-income securities generally, including the credit-sensitive sectors, became more unsettled during the six-month period ended October 31, 2013, although signs of stabilization appeared late in the period. In the following interview, Andrew Feltus, Charles Melchreit and Jonathan Sharkey discuss the factors that affected the performance of Pioneer Diversified High Income Trust during the six-month period. Mr. Feltus, a senior vice president and portfolio manager at Pioneer, Mr. Melchreit, a senior vice president and portfolio manager at Pioneer, and Mr. Sharkey, a senior vice president and portfolio manager at Pioneer, all are members of Pioneer's Fixed-Income Team and are responsible for the day-to-day management of the Trust. Q How did the Trust perform during the six-month period ended October 31, 2013? A Pioneer Diversified High Income Trust returned 2.91% at net asset value and 2.91% at market price during the six-month period ended October 31, 2013. During the same six-month period, the Trust's custom benchmark returned 1.48%. The custom benchmark is based on equal weightings of the Bank of America Merrill Lynch (BofA ML) Global High Yield and Emerging Markets Plus (GHY and EMP) Index, which returned 1.07% during the six-month period, and the Credit Suisse Leveraged Loan Index, which returned 1.89%. Unlike the Trust, the custom benchmark does not use leverage. While the use of leverage increases investment opportunity, it also increases investment risk. During the same six-month period, the average return (at market price) of the 36 closed-end funds in Lipper's High Current Yield Closed End Funds category (which may or may not be leveraged) was 2.39%. The shares of the Trust were selling at a 5.51% premium to net asset value at the end of the period on October 31, 2013. On October 31, 2013, the Trust's standard 30-day SEC yield was 8.44*. * The 30-day SEC yield is a standardized formula that is based on the hypothetical annualized earning power (investment income only) of the Trust's portfolio securities during the period indicated. 4 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 Q How would you describe the investment environment for fixed-income investors during the six-month period ended October 31, 2013? A Although the period started amid general optimism about prospects for continued improving conditions in both the domestic and global economies, market conditions became more challenging during the period amid uncertainty over how long the easy money policies of the U.S. Federal Reserve System (the Fed) would continue, and whether political bickering in Washington might undermine the economic recovery. Interest rates rose during the summer of 2013, although short-term rates remained low by historical standards. The rising interest-rate environment negatively affected most fixed-income investments, with U.S. Treasuries significantly underperforming. Investment-grade corporate bonds posted negative returns during the six-month period, but U.S. high-yield corporate bonds were able to deliver modestly positive returns. Although most fixed- income securities produced disappointing results, floating-rate securities such as bank loans and event-linked bonds tended to hold up better and ended the period in positive territory. Elsewhere, emerging markets investments and currencies were especially affected by market conditions, as investors saw those securities as particularly vulnerable to rising interest rates. On currency markets, the U.S. dollar (USD) remained strong, while the euro rose against most other currencies, including the USD. The Japanese yen depreciated during the six-month period. Near the end of the six-month period, a series of perceived positive developments affected sentiment in the bond market, and Treasuries even staged a modest improvement in performance. The first development was the growing expectation that U.S. Federal Reserve System (Fed) Vice Chairman Janet Yellen would be nominated to succeed Ben Bernanke as chairman--an expectation that was later confirmed by President Obama's official nomination of Ms. Yellen to succeed Mr. Bernanke. Ms. Yellen is not viewed by most as someone who would move aggressively to end the Fed's accommodative policies. Second, the Fed met in mid-September and announced that it would not yet begin tapering its quantitative easing program--to the relief of the bond market. Finally, the debates in Washington over U.S. fiscal policy and raising the government's debt ceiling rattled the capital markets in general, but also led to a brief comeback in the values of Treasury securities, which were seen as the safest asset class during a time of uncertainty. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 5 With these factors in the background, the high-yield bond market stabilized and then rose briskly during the final month of the period. In October alone, the BofA ML GHY and EMP Index returned 2.51%. Despite the volatility in the fixed-income market, the economic fundamentals in the United States continued to strengthen, with non-farm payrolls adding an average of 160,000 new jobs per month over the six-month period. Corporate profits remained strong, while companies continued to generate new cash flows. In fact, stock prices maintained their upward climb, with the Standard & Poor's 500 Index returning 11.15% (non annualized) for the six months ended October 31, 2013. Q How did you manage the Trust's portfolio in that environment during the six-month period ended October 31, 2013, and how did your investment decisions affect the Trust's performance? A Our focus on the credit sectors, especially domestic high-yield corporate bonds, helped the Trust's performance considerably during the period. The emphasis on credit in the Trust's portfolio also included significant exposures to floating-rate debt, including bank loans and event-linked bonds issued by property and casualty insurers. Because the interest rates on such securities increase as market interest rates rise, they tend to be more resilient during periods when rates rise and bond prices decline. At the end of the six-month period on October 31, 2013, more than one-third of the Trust's total investment portfolio was invested in floating-rate securities and U.S. high-yield corporate debt accounted for more than 32% of the Trust's total investment portfolio. Positive security selection results also made a significant contribution to the Trust's performance during the six-month period. Among the better performers in the Trust's portfolio were bonds that bounced back after the issuing companies of the securities underwent corporate restructurings. Those holdings included the bonds of CEVA, a logistics and shipping company significantly involved in shipping to Europe, and of KB Pharmaceuticals, a specialty pharmaceuticals firm. While emerging markets corporate debt in general produced poor results during the period, one notable exception was the portfolio's investment in bonds of Transporte Energia, an energy company based in Argentina. Event-linked bonds also performed well during the period, helped by a mild storm season that resulted in relatively few weather-related property insurance claims. Holdings of event-linked bonds in the Trust's portfolio that fared well included bonds issued by Altair Reinsurance. 6 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 Some of the holdings in the Trust's portfolio did perform poorly during the period, however, including bonds issued by Codere, a Spanish casino company with significant operations in Latin America, and by mining company Mirabela Nickel. A floating-rate loan issued to Preferred Proppants, a company supplying materials for natural gas drilling operations, also detracted from results. Q How did the level of leverage in the Trust change during the six-month period ended October 31, 2013? A At the end of the six-month period, 29.0% of the Trust's total managed assets were financed by leverage, which remained constant, compared with 28.7% of assets at the start of the fiscal period on May 1, 2013. The increase was due to a decrease in the value of securities in which the Trust had invested. Q What is your investment outlook? A We are relatively optimistic about the prospects for continued economic expansion and we believe U.S. credit markets are well positioned to outperform Treasuries. Monetary policy remains accommodative and recent corrections in the prices of some credit-linked securities have increased their value relative to alternative investments, especially given that default rates remain low by historical standards. We believe corporate bonds and other credit-sensitive securities have the potential to deliver moderately positive returns. The U.S. economy showed its resilience in 2013, continuing to strengthen despite several tax hikes as well as increases in market interest rates. In this durable economic recovery, American corporations have been able to continue to grow their profits and clean up their financial balance sheets. The nation's job market has shown improvement, the housing industry has been able to recover, and inflation remains under control. Default rates for corporate debt remain low by historical standards. Corporate bonds are not inexpensive, however, and we believe investors will need to pay close attention to company fundamentals when selecting individual securities. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 7 We have doubts, however, about the potential of European corporate bonds to be able to sustain their recent rally. We have a more positive view about emerging markets debt, where relative values appear attractive but investors will need to be highly selective in choosing individual bonds in the emerging markets. Going forward, we expect to keep the Trust's portfolio well diversified** among different sectors, including high-yield corporate bonds, event-linked bonds, floating-rate bank loans and emerging markets debt. Please refer to the Schedule of Investments on pages 13-42 for a full listing of Trust securities. Investments in high-yield or lower-rated securities are subject to greater-than- average risk. The Trust may invest in securities of issuers that are in default or that are in bankruptcy. Investing in foreign and/or emerging markets securities involves risks relating to interest rates, currency exchange rates, economic, and political conditions. When interest rates rise, the prices of 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. ** Diversification does not assure a profit nor protect against loss in a declining market. 8 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 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. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 9 Portfolio Summary | 10/31/13 Portfolio Diversification -------------------------------------------------------------------------------- (As a percentage of total investment portfolio) [THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Corporate Bonds & Notes 71.3% Senior Secured Floating Rate Loan Interests 17.6% Preferred Stocks 3.0% Convertible Bonds & Notes 2.0% Sovereign Debt Obligations 1.9% Collateralized Mortgage Obligations 1.4% Asset Backed Securities 1.0% Temporary Cash Investments 0.9% Common Stocks 0.5% Convertible Preferred Stock 0.2% Commercial Mortgage-Backed Securities 0.2% Right/Warrant 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 FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
A 0.4% BBB 3.4% BB 17.5% B 47.5% CCC 15.7% CC 1.1% D 0.2% NR 14.2%
Bond ratings are ordered highest to lowest in portfolio. Based on Standard & Poor'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. 10 Largest Holdings -------------------------------------------------------------------------------- (As a percentage of total long-term holdings)**
1. Fixed Income Trust Series 2013-A, 0.0%, 10/15/97 (144A) 1.48% -------------------------------------------------------------------------------- 2. Altair Re, 0.0%, 0.90 -------------------------------------------------------------------------------- 3. Queen Street IV Capital, Ltd., 7.53%, 4/9/15 (144A) 0.89 -------------------------------------------------------------------------------- 4. Montana Re, Ltd., 16.658%, 1/8/14 (144A) 0.88 -------------------------------------------------------------------------------- 5. Successor X, Ltd., 16.094%, 1/7/14 (144A) 0.88 -------------------------------------------------------------------------------- 6. Successor X, Ltd., 14.594%, 1/7/14 (144A) 0.88 -------------------------------------------------------------------------------- 7. AMC Entertainment, Inc., 9.75%, 12/1/20 0.84 -------------------------------------------------------------------------------- 8. MetroCat Re, Ltd., 4.53%, 8/5/16 (144A) 0.78 -------------------------------------------------------------------------------- 9. Townsquare Radio LLC / Townsquare Radio, Inc., 9.0%, 4/1/19 (144A) 0.76 -------------------------------------------------------------------------------- 10. Sector Re V, Ltd., 0.0%, 3/1/18 (144A) 0.73 --------------------------------------------------------------------------------
** This list excludes temporary cash investments and derivative instruments. The portfolio is actively managed, and current holdings may be different. The holdings listed should not be considered recommendations to buy or sell any security listed. 10 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 Prices and Distributions | 10/31/13 Market Value per Common Share --------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 10/31/13 4/30/13 -------------------------------------------------------------------------------- Market Value $21.43 $21.82 -------------------------------------------------------------------------------- Premium 5.5% 5.4% --------------------------------------------------------------------------------
Net Asset Value per Common Share --------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 10/31/13 4/30/13 -------------------------------------------------------------------------------- $20.31 $20.70 --------------------------------------------------------------------------------
Distributions per Common Share --------------------------------------------------------------------------------
-------------------------------------------------------------------------------- Net Investment Short-Term Long-Term Income Capital Gains Capital Gains -------------------------------------------------------------------------------- 5/1/13 - 10/31/13 $0.96 $ -- $ -- --------------------------------------------------------------------------------
The data shown above represents past performance, which is no guarantee of future results. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 11 Performance Update | 10/31/13 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 during the periods shown, 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 October 31, 2013) -------------------------------------------------------------------------------- Net Asset Market Period Value (NAV) Price -------------------------------------------------------------------------------- Life-of-Trust (5/30/07) 9.04% 9.16% 5 Years 18.40 23.34 1 Year 11.81 15.57 --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS 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 5/31/2007 $ 10,000 $ 10,000 10/31/2007 $ 8,709 $ 10,034 10/31/2008 $ 6,287 $ 7,683 10/31/2009 $ 9,362 $ 10,570 10/31/2010 $ 12,686 $ 12,116 10/31/2011 $ 13,258 $ 12,532 10/31/2012 $ 15,196 $ 14,010 10/31/2013 $ 17,562 $ 14,996
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 is an unmanaged index that 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 unmanaged and 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 use leverage. It is not possible to invest directly in an index. 12 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 Schedule of Investments | 10/31/13 (unaudited)
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- ASSET BACKED SECURITIES -- 1.4% of Net Assets 834,806(a) CCC/Caa3 Aircraft Finance Trust, Series 1999-1A, Class A1, 0.654%, 5/15/24 (144A) $ 358,967 10(a) B-/Ba3 Aircraft Finance Trust, Series 1999-1A, Class A2, 0.674%, 5/15/24 (144A) 9 100,000 BB/NR CarNow Auto Receivables Trust, Series 2012-1A, Class D, 6.9%, 11/15/16 (144A) 102,610 81,268 BB+/Ba2 Continental Airlines 1998-1 Class B Pass Through Trust, 6.748%, 3/15/17 85,941 250,000 BBB-/Ba2 Delta Air Lines 2010-1 Class B Pass Through Trust, 6.375%, 1/2/16 264,375 85,628(a) B-/B3 GSAMP Trust, Series 2006-HE8, Class A2B, 0.3%, 1/25/37 81,422 940,000 NR/Ba2 Nations Equipment Finance Funding I LLC, Series 2013-1A, Class C, 5.5%, 5/20/21 (144A) 909,450 154,727 BB/NR Westgate Resorts LLC, Series 2012-2A, Class C, 9.0%, 1/20/25 (144A) 156,056 378,927 NR/NR Westgate Resorts LLC, Series 2012-BA, Class A, 9.5%, 2/20/25 (144A) 378,030 --------------------------------------------------------------------------------------------------------- TOTAL ASSET BACKED SECURITIES (Cost $2,346,176) $ 2,336,860 --------------------------------------------------------------------------------------------------------- COLLATERALIZED MORTGAGE OBLIGATIONS -- 2.0% of Net Assets 679,722(a) CCC/Caa2 Carrington Mortgage Loan Trust, Series 2007-FRE1, Class A2, 0.37%, 2/25/37 $ 610,033 200,000(b) CCC/B3 Credit Suisse First Boston Mortgage Securities Corp., Series 2004-C4, Class E, 5.135%, 10/15/39 (144A) 180,373 300,000 NR/NR Extended Stay America Trust, Series 2013-ESHM, Class M, 7.625%, 12/5/19 (144A) 315,459 215,623 CCC/Caa3 Global Mortgage Securitization, Ltd., Series 2005-A, Class B3, 5.25%, 4/25/32 179,574 375,000(a) NR/Ba2 GS Mortgage Securities Corp. II, Series 2013-KYO, Class E, 3.773%, 11/8/29 (144A) 375,041 161,172(b) B/NR GSR Mortgage Loan Trust, Series 2004-3F, Class B1, 5.712%, 2/25/34 157,057 239,990 NR/NR Homeowner Assistance Program Reverse Mortgage Loan Trust, Series 2013-RM1, Class A, 4.0%, 5/26/53 (144A) 234,302 806,102(a) B/Ba3 Impac CMB Trust, Series 2004-9, Class 1A1, 0.93%, 1/25/35 708,096 556,571(b) BB/NR LB-UBS Commercial Mortgage Trust, Series 2006-C1, Class AJ, 5.276%, 2/15/41 554,497 --------------------------------------------------------------------------------------------------------- TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $3,292,355) $ 3,314,432 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 13 Schedule of Investments | 10/31/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- COMMERCIAL MORTGAGE-BACKED SECURITIES -- 0.3% of Net Assets 150,000(b) NR/Ba1 Bear Stearns Commercial Mortgage Securities Trust, Series 2005-PWR7, Class B, 5.214%, 2/11/41 $ 151,793 250,000(b) NR/Baa3 COMM 2012-CCRE2 Mortgage Trust, Series 2012-CR2, Class E, 4.858%, 8/15/45 (144A) 232,535 150,600(a) NR/Ba1 JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-FL2A, Class G, 0.534%, 11/15/18 (144A) 143,031 --------------------------------------------------------------------------------------------------------- TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (Cost $486,087) $ 527,359 --------------------------------------------------------------------------------------------------------- SENIOR SECURED FLOATING RATE LOAN INTERESTS -- 24.4% of Net Assets* AUTOMOBILES & COMPONENTS -- 2.4% Auto Parts & Equipment -- 1.2% 118,388 B/B1 Federal-Mogul Corp., Tranche B Term Loan, 2.118%, 12/29/14 $ 117,373 69,856 B/B1 Federal-Mogul Corp., Tranche C Term Loan, 2.118%, 12/28/15 69,257 248,125 B+/B1 Metaldyne LLC, USD Term Loan, 5.0%, 12/18/18 250,090 281,448 NR/NR TI Group Automotive Systems LLC, Additional Term Loan, 5.5%, 3/28/19 284,879 214,478 BB/Ba2 Tomkins LLC, Term Loan B-2, 3.75%, 9/29/16 215,497 975,106 B+/B1 Tower Automotive Holdings USA, LLC, Refinancing First Lien Term Loan, 4.75%, 4/23/20 989,123 141,013 B/Ba2 UCI International, Inc., (United Components) Term Loan, 5.5%, 7/26/17 141,894 --------------- $ 2,068,113 --------------------------------------------------------------------------------------------------------- Automobile Manufacturers -- 0.9% 1,466,250 BB/Ba1 Chrysler Group LLC, Tranche B Term Loan, 4.25%, 5/24/17 $ 1,481,417 --------------------------------------------------------------------------------------------------------- Tires & Rubber -- 0.3% 575,000 BB/Ba1 Goodyear Tire & Rubber Co., Second Lien Term Loan, 4.75%, 4/30/19 $ 581,289 --------------- Total Automobiles & Components $ 4,130,819 --------------------------------------------------------------------------------------------------------- CAPITAL GOODS -- 3.0% Aerospace & Defense -- 1.2% 320,000(i) CCC+/Caa1 Consolidated Precision Products Corp., Second Lien Term Loan, 0.0%, 4/23/21 $ 324,000 833,630 B-/B2 DAE Aviation Holdings, Inc., Tranche B-1 Loan, 6.25%, 11/2/18 840,403
The accompanying notes are an integral part of these financial statements. 14 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Aerospace & Defense -- (continued) 192,527 B/B3 Hunter Defense Technologies, Inc., Term Loan, 3.52%, 8/22/14 $ 185,307 377,913 B/B2 Standard Aero, Ltd., Tranche B-2 Loan, 6.25%, 11/2/18 380,984 322,004 BB-/B1 TASC, Inc., New Tranche B Term Loan, 4.5%, 12/18/15 309,526 --------------- $ 2,040,220 --------------------------------------------------------------------------------------------------------- Construction & Farm Machinery & Heavy Trucks -- 0.6% 94,295 BB/Ba2 Manitowoc Co., Inc., Term Loan B, 4.25%, 11/13/17 $ 94,589 390,000 BB-/Ba3 Navistar, Inc., Tranche B, Term Loan, 5.75%, 8/17/17 397,129 468,510 B+/B2 Waupaca Foundry, Inc. Term Loan, 4.5%, 6/29/17 470,852 --------------- $ 962,570 --------------------------------------------------------------------------------------------------------- Electrical Components & Equipment -- 0.3% 559,350 BB-/Ba2 WireCo WorldGroup, Inc., Term Loan, 6.0%, 2/15/17 $ 562,846 --------------------------------------------------------------------------------------------------------- Trading Companies & Distributors -- 0.9% 423,483 BBB/Ba2 AWAS Finance Luxembourg 2012 SA, Term Loan, 3.5%, 7/16/18 $ 424,807 1,098,879 B+/Ba3 WESCO Distribution, Inc., Tranche B-1 Loan, 4.5%, 12/12/19 1,107,395 --------------- $ 1,532,202 --------------- Total Capital Goods $ 5,097,838 --------------------------------------------------------------------------------------------------------- COMMERCIAL & PROFESSIONAL SERVICES -- 0.2% Commercial Printing -- 0.1% 132,667 NR/NR Cenveo Corp., Term Loan B, 6.25%, 2/13/17 $ 134,574 --------------------------------------------------------------------------------------------------------- Security & Alarm Services -- 0.1% 205,306 B+/B1 Protection One, Inc., 2012 Term Loan, 4.25%, 3/21/19 $ 205,819 --------------- Total Commercial & Professional Services $ 340,393 --------------------------------------------------------------------------------------------------------- CONSUMER DURABLES & APPAREL -- 0.1% Textiles -- 0.1% 127,435 NR/Ba3 Klockner Pentaplast of America, Inc., Term Loan B-1, 5.75%, 12/21/16 $ 128,232 --------------- Total Consumer Durables & Apparel $ 128,232 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 15 Schedule of Investments | 10/31/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- CONSUMER SERVICES -- 1.2% Hotels, Resorts & Cruise Lines -- 0.5% 864,063 BB-/Ba2 Seven Sea Cruises S. DE R.L., Term B-1 Loan, 4.75%, 12/21/18 $ 873,783 --------------------------------------------------------------------------------------------------------- Restaurants -- 0.7% 538,972 B+/B1 Landry's, Inc., (fka Landry's Restaurants, Inc.), Term Loan B, 4.75%, 4/24/18 $ 543,913 544,825 B/Ba3 NPC International, Inc., Term Loan, 4.5%, 12/28/18 550,274 --------------- $ 1,094,187 --------------- Total Consumer Services $ 1,967,970 --------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIALS -- 0.3% Other Diversified Financial Services -- 0.3% 423,907 B/B1 WideOpenWest Finance LLC, Term Loan B, 4.75%, 4/1/19 $ 427,695 --------------- Total Diversified Financials $ 427,695 --------------------------------------------------------------------------------------------------------- ENERGY -- 1.5% Coal & Consumable Fuels -- 0.5% 566,375(c) B+/Caa1 Preferred Proppants LLC, Initial Term Loan B, 11.75%, 12/15/16 $ 385,135 420,000 NR/NR PT Bumi Resources Tbk, Term Loan, 18.174%, 11/7/14 420,000 --------------- $ 805,135 --------------------------------------------------------------------------------------------------------- Oil & Gas Exploration & Production -- 1.0% 400,000 BB-/Ba3 Chesapeake Energy Corp., Term Loan, 5.75%, 12/2/17 $ 409,475 685,000 B-/B2 Fieldwood Energy LLC, Closing Date Second Lien Term Loan, 8.375%, 9/30/20 698,343 650,000 B/B1 Samson Investment Co., Second Initial Term Loan, 6.0%, 9/25/18 656,704 --------------- $ 1,764,522 --------------- Total Energy $ 2,569,657 --------------------------------------------------------------------------------------------------------- FOOD, BEVERAGE & TOBACCO -- 0.7% Packaged Foods & Meats -- 0.7% 232,449 B/B1 Del Monte Foods Co., Initial Term Loan, 4.0%, 3/8/18 $ 233,117 940,000 B-/NR New HB Acquisition LLC, Term B Loan, 6.75%, 4/9/20 968,200 --------------- Total Food, Beverage & Tobacco $ 1,201,317 --------------------------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SERVICES -- 3.9% Health Care Equipment & Services -- 0.2% 240,732 BB-/Ba2 Kinetic Concepts, Inc., Dollar D-1 Term Loan, 4.5%, 5/4/18 $ 242,989 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 16 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Health Care Facilities -- 1.0% 983,916 BB/Ba2 CHS/Community Health Systems, Inc., Extended Term Loan, 3.761%, 1/25/17 $ 988,698 82,579 BB/Ba3 HCA, Inc., Tranche B-4 Term Loan, 2.918%, 5/1/18 82,859 198,040 BB/NR HCA, Inc., Tranche B-5 Term Loan, 2.998%, 3/31/17 198,721 323,377 B+/Ba3 Kindred Healthcare, Inc., Term B-1 Loan, 4.25%, 6/1/18 323,983 --------------- $ 1,594,261 --------------------------------------------------------------------------------------------------------- Health Care Services -- 2.3% 377,708 B+/B2 AccentCare, Inc., Term Loan, 6.5%, 12/22/16 $ 169,969 625,000 B/B2 Bioscrip, Inc., Delayed Draw Term Loan, 6.5%, 7/31/20 371,250 625,000 B/B2 Bioscrip, Inc., Initial Term B Loan, 6.5%, 7/31/20 618,750 800,000 B/B2 Gentiva Health Services, Inc., Initial Term B Loan, 6.5%, 10/18/19 797,124 341,123 B/B2 Inventiv Health, Inc., Consolidated Term Loan, 7.5%, 8/4/16 336,646 399,753 B+/B2 National Mentor Holdings, Inc., Tranche B-1 Term Loan, 6.5%, 2/9/17 403,501 294,319 D/NR Rural/Metro Corp., Delayed Draw Term Loan, 3.0%, 3/1/14 217,791 463,838 B/NR Surgical Care Affiliates LLC, Class C Term Loan, 4.25%, 6/29/18 460,938 283,225 B/B2 Valitas Health Services, Inc., Term Loan B, 5.75%, 6/2/17 273,313 488,750 NR/B3 Virtual Radiologic Corp., Term Loan B, 7.25%, 12/22/16 321,761 --------------- $ 3,971,043 --------------------------------------------------------------------------------------------------------- Health Care Supplies -- 0.1% 238,893 B+/NR Alere, Inc., Term Loan B, 5.5%, 6/30/17 $ 240,685 --------------------------------------------------------------------------------------------------------- Health Care Technology -- 0.3% 240,945 BB-/Ba3 IMS Health, Inc., Tranche B-1 Dollar Term Loan, 3.75%, 9/1/17 $ 242,564 349,772 CCC/Caa3 Medical Card System, Inc., Term Loan, 0.0%, 9/17/15 334,032 --------------- $ 576,596 --------------- Total Health Care Equipment & Services $ 6,625,574 --------------------------------------------------------------------------------------------------------- HOUSEHOLD & PERSONAL PRODUCTS -- 0.9% Household Products -- 0.5% 427,338 BB-/B1 SRAM LLC, First Lien Term Loan, 4.0%, 4/10/20 $ 425,736 431,978 B-/B2 Wash MultiFamily Laundry Systems LLC, U.S. Term Loan, 5.25%, 2/21/19 434,138 --------------- $ 859,874 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 17 Schedule of Investments | 10/31/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Personal Products -- 0.4% 270,887 B/Ba3 Monitronics International, Inc., Term Loan B, 4.25%, 3/23/18 $ 273,483 215,357 BB-/NR NBTY, Inc., B-2 Term Loan, 3.5%, 10/1/17 217,084 208,828 B+/Ba2 Revlon Consumer Products Corp., Replacement Term Loan, 4.0%, 11/20/17 210,427 --------------- $ 700,994 --------------- Total Household & Personal Products $ 1,560,868 --------------------------------------------------------------------------------------------------------- INSURANCE -- 1.0% Multi-Line Insurance -- 0.4% 575,650 B-/B1 Alliant Holdings I LLC, Initial Term Loan, 5.0%, 12/20/19 $ 579,514 --------------------------------------------------------------------------------------------------------- Property & Casualty Insurance -- 0.6% 593,765 CCC/Caa2 Confie Seguros Holding II Co., Second Lien Term Loan, 10.25%, 5/8/19 $ 598,466 451,588 B/B1 USI, Inc., Initial Term Loan, 5.0%, 12/27/19 454,297 --------------- $ 1,052,763 --------------- Total Insurance $ 1,632,277 --------------------------------------------------------------------------------------------------------- MATERIALS -- 1.1% Commodity Chemicals -- 0.1% 197,011 BB-/B1 Taminco Global Chemical Corp., Tranche B-2 Dollar Term Loan, 4.25%, 2/15/19 $ 198,489 --------------------------------------------------------------------------------------------------------- Diversified Chemicals -- 0.2% 300,187 B+/B2 Univar, Inc., Term Loan B, 5.0%, 6/30/17 $ 295,778 --------------------------------------------------------------------------------------------------------- Diversified Metals & Mining -- 0.0%+ 72,253(c) NR/NR Long Haul Holdings, Ltd., Facility Term Loan A, 0.0%, 1/12/13 $ 28,179 57,668(c) NR/NR PT Bakrie & Brothers Tbk, Facility Term Loan B, 0.0%, 1/20/13 $ 22,490 --------------- $ 50,669 --------------------------------------------------------------------------------------------------------- Metal & Glass Containers -- 0.3% 485,958 B/B1 Tank Holding Corp., Initial Term Loan, 5.5%, 7/9/19 $ 485,350 --------------------------------------------------------------------------------------------------------- Paper Packaging -- 0.2% 253,702 B/B2 Exopack LLC/Cello-Foil Products, Inc., Term Loan B, 5.0%, 5/31/17 $ 253,702 --------------------------------------------------------------------------------------------------------- Paper Products -- 0.0%+ 100,000 NR/NR Exopack LLC/Cello-Foil Products, Inc., USD Term Loan, 0.0%, 5/8/19 $ 101,376 --------------------------------------------------------------------------------------------------------- Specialty Chemicals -- 0.3% 189,170 BB+/Ba1 Chemtura Corp., New Term Loan, 3.5%, 8/29/16 $ 190,589 344,239 BB+/Ba2 Huntsman International LLC, Extended Term B Loan, 2.718%, 4/19/17 344,729 --------------- $ 535,318 --------------- Total Materials $ 1,920,682 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 18 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- MEDIA -- 1.6% Advertising -- 0.6% 965,046 B-/B2 Affinion Group, Inc., Tranche B Term Loan, 6.5%, 10/9/16 $ 955,999 --------------------------------------------------------------------------------------------------------- Broadcasting -- 0.9% 508,246 B/B2 FoxCo Acquisition Sub LLC, Initial Term Loan, 5.5%, 7/14/17 $ 511,105 150,000 CCC+/Caa2 Learfield Communications, Inc., Initial Second Lien Term Loan, 8.75%, 10/8/21 153,375 404,958 B+/Ba3 TWCC Holding Corp., Term Loan, 3.5%, 2/13/17 406,873 469,359 B+/B2 Univision Communications, Inc., Converted Extended First-Lien Term Loan, 4.5%, 3/1/20 471,632 --------------- $ 1,542,985 --------------------------------------------------------------------------------------------------------- Movies & Entertainment -- 0.1% 107,798 NR/Baa3 Cinedigm Digital Funding I LLC, Term Loan, 3.75%, 2/28/18 $ 108,202 335,394 NR/NR Lodgenet Interactive Corp., Closing Date Term Loan, 6.75%, 3/28/18 160,989 --------------- $ 269,191 --------------- Total Media $ 2,768,175 --------------------------------------------------------------------------------------------------------- PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 1.1% Biotechnology -- 0.3% 486,250 B+/B2 Aptalis Pharma, Inc., Term B Loan, 6.0%, 10/2/20 $ 490,302 --------------------------------------------------------------------------------------------------------- Life Sciences Tools & Services -- 0.8% 1,296,627 BB-/B3 Catalent Pharma, Inc., Dollar Term Loan, 3.668%, 9/15/16 $ 1,302,137 --------------- Total Pharmaceuticals, Biotechnology & Life Sciences $ 1,792,439 --------------------------------------------------------------------------------------------------------- REAL ESTATE -- 0.1% Real Estate Development -- 0.1% 194,513 B-/B2 Ozburn-Hessey Holding Co., LLC, First Lien Term Loan, 6.75%, 5/23/19 $ 195,242 --------------- Total Real Estate $ 195,242 --------------------------------------------------------------------------------------------------------- RETAILING -- 0.5% Computer & Electronics Retail -- 0.5% 847,634 B/B2 Targus Group International, Inc., Term Loan, 12.0%, 5/24/16 $ 762,871 --------------- Total Retailing $ 762,871 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 19 Schedule of Investments | 10/31/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.3% Semiconductor Equipment -- 0.3% 561,549 BB-/B1 Aeroflex, Inc., Tranche B-1 Term Loan, 4.5%, 11/9/19 $ 566,814 --------------- Total Semiconductors & Semiconductor Equipment $ 566,814 --------------------------------------------------------------------------------------------------------- SOFTWARE & SERVICES -- 2.5% Application Software -- 1.9% 700,000 NR/NR Applied Systems, Inc., Second Lien Term Loan, 8.25%, 6/8/17 $ 707,000 621,853 B-/Ba3 Expert Global Solutions, Inc., Advance First Lien Term Loan B, 8.5%, 4/3/18 631,181 428,475 NR/B2 Houghton Mifflin Co., Term Loan, 5.25%, 5/22/18 431,957 942,894 BB+/NR Nuance Communications, Inc., Term Loan C, 2.92%, 8/7/19 943,629 500,000 CCC+/Caa1 Vertafore, Inc., Second Lien Term Loan, 9.75%, 10/29/17 510,500 --------------- $ 3,224,267 --------------------------------------------------------------------------------------------------------- Internet Software & Services -- 0.1% 243,750 BB+/Ba3 Autotrader.com, Inc., Tranche B-1 Term Loan, 4.0%, 12/15/16 $ 245,781 --------------------------------------------------------------------------------------------------------- IT Consulting & Other Services -- 0.5% 823,970 BB/Ba3 SunGuard Data Systems, Inc., Tranche C Term Loan, 3.924%, 2/28/17 $ 827,046 --------------- Total Software & Services $ 4,297,094 --------------------------------------------------------------------------------------------------------- TECHNOLOGY HARDWARE & EQUIPMENT -- 0.4% Communications Equipment -- 0.1% 240,680 BB/Ba3 CommScope, Inc., Tranche 2 Term Loan, 3.75%, 1/14/18 $ 241,507 --------------------------------------------------------------------------------------------------------- Electronic Components -- 0.3% 477,897 B/B2 Scitor Corp., Term Loan, 5.0%, 2/15/17 $ 479,390 --------------- Total Technology Hardware & Equipment $ 720,897 --------------------------------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES -- 0.5% Integrated Telecommunication Services -- 0.5% 782,433 BB/Ba3 West Corp., Term B-8 Loan, 3.75%, 6/30/18 $ 786,039 --------------- Total Telecommunication Services $ 786,039 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 20 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 0.8% Air Freight & Logistics -- 0.8% 439,482 B/B1 Ceva Group Plc, Dollar Tranche B Pre-Funded L/C, 0.148%, 8/31/16 $ 423,825 919,588 CCC+/B2 Ceva Group Plc, U.S. Tranche B Term Loan, 5.209%, 8/31/16 896,024 --------------- Total Transportation $ 1,319,849 --------------------------------------------------------------------------------------------------------- UTILITIES -- 0.3% Electric Utilities -- 0.3% 629,720 CCC-/Caa3 Texas Competitive Electric Holdings Co., LLC, 2017 Term Loan, 4.766%, 10/10/17 $ 421,650 --------------- Total Utilities $ 421,650 --------------------------------------------------------------------------------------------------------- TOTAL SENIOR SECURED FLOATING RATE LOAN INTERESTS (Cost $41,707,166) $ 41,234,392 --------------------------------------------------------------------------------------------------------- CORPORATE BONDS & NOTES -- 98.9% of Net Assets AUTOMOBILES & COMPONENTS -- 0.6% Auto Parts & Equipment -- 0.6% 350,000 B/Caa1 International Automotive Components Group SA, 9.125%, 6/1/18 (144A) $ 360,500 275,000 B/B3 Pittsburgh Glass Works LLC, 8.0%, 11/15/18 (144A) 280,500 290,000 B+/B2 Stackpole International Intermediate Co. SA / Stackpole International Powder Meta, 7.75%, 10/15/21 (144A) $ 301,600 --------------- Total Automobiles & Components $ 942,600 --------------------------------------------------------------------------------------------------------- BANKS -- 1.5% Diversified Banks -- 1.2% 525,000 CCC+/B3 Banco de Galicia y Buenos Aires, 8.75%, 5/4/18 (144A) $ 514,558 500,000(b) NR/Caa3 Banco Macro SA, 9.75%, 12/18/36 407,000 200,000 NR/Ba1 Turkiye IS Bankasi AS, 6.0%, 10/24/22 (144A) 192,000 750,000 BBB-/NR UBS AG/Stamford CT, 7.625%, 8/17/22 855,079 --------------- $ 1,968,637 --------------------------------------------------------------------------------------------------------- Regional Banks -- 0.3% 600,000(b)(d) BBB/Baa3 PNC Financial Services Group, Inc., 4.483% $ 598,800 --------------- Total Banks $ 2,567,437 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 21 Schedule of Investments | 10/31/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- CAPITAL GOODS -- 7.1% Aerospace & Defense -- 0.9% 600,000 B-/Caa1 ADS Tactical, Inc., 11.0%, 4/1/18 (144A) $ 540,000 870,000 B-/B2 DynCorp International, Inc., 10.375%, 7/1/17 915,675 --------------- $ 1,455,675 --------------------------------------------------------------------------------------------------------- Building Products -- 0.7% 850,000 CC/Caa3 New Enterprise Stone & Lime Co., Inc., 11.0%, 9/1/18 $ 456,875 300,000 BB-/B2 USG Corp., 7.875%, 3/30/20 (144A) 330,000 365,000 BB-/B2 USG Corp., 9.75%, 8/1/14 (144A) 386,900 --------------- $ 1,173,775 --------------------------------------------------------------------------------------------------------- Construction & Engineering -- 1.1% 900,000 B/B2 Empresas ICA S.A.B. de C.V., 8.9%, 2/4/21 (144A) $ 877,500 1,000,000 BB-/B1 OAS Investments GMBH, 8.25%, 10/19/19 (144A) 990,000 --------------- $ 1,867,500 --------------------------------------------------------------------------------------------------------- Construction & Farm Machinery & Heavy Trucks -- 0.9% 360,000 B-/B3 Meritor, Inc., 6.75%, 6/15/21 $ 363,600 660,000 CCC-/B3 Navistar International Corp., 8.25%, 11/1/21 674,025 160,000 CCC-/Caa2 Stanadyne Holdings, Inc., 10.0%, 8/15/14 156,000 500,000(e) CC/Ca Stanadyne Holdings, Inc., 12.0%, 2/15/15 300,000 --------------- $ 1,493,625 --------------------------------------------------------------------------------------------------------- Electrical Components & Equipment -- 0.5% 750,000 B-/B3 WireCo WorldGroup, Inc., 9.5%, 5/15/17 $ 776,250 --------------------------------------------------------------------------------------------------------- Industrial Conglomerates -- 0.3% 455,000 B+/B2 JB Poindexter & Co., Inc., 9.0%, 4/1/22 (144A) $ 482,300 EUR 80,000 BB-/Ba3 Mark IV Europe Lux SCA / Mark IV USA SCA, 8.875%, 12/15/17 (144A) 116,318 --------------- $ 598,618 --------------------------------------------------------------------------------------------------------- Industrial Machinery -- 1.4% 450,000 B/B2 Cleaver-Brooks, Inc., 8.75%, 12/15/19 (144A) $ 489,375 500,000(c) NR/WR Indalex Holding Corp., 11.5%, 2/1/14 3,750 335,000 B-/Caa2 Liberty Tire Recycling, 11.0%, 10/1/16 (144A) 341,700 875,000 B/Caa1 Mueller Water Products, Inc., 7.375%, 6/1/17 901,250 665,000 B-/NR WPE International Cooperatief UA, 10.375%, 9/30/20 (144A) 465,500 150,000 B/B3 Xerium Technologies, Inc., 8.875%, 6/15/18 156,750 --------------- $ 2,358,325 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 22 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Trading Companies & Distributors -- 1.3% 1,052,000 CCC/Caa1 INTCOMEX, Inc., 13.25%, 12/15/14 $ 1,020,440 1,090,000 B-/B3 TRAC Intermodal LLC / TRAC Intermodal Corp., 11.0%, 8/15/19 1,239,875 $ 2,260,315 --------------- Total Capital Goods $ 11,984,083 --------------------------------------------------------------------------------------------------------- COMMERCIAL & PROFESSIONAL SERVICES -- 0.8% Diversified Support Services -- 0.8% 345,000 NR/Caa1 Monitronics Escrow Corp., 9.125%, 4/1/20 (144A) $ 365,700 750,000 B+/B3 NANA Development Corp., 9.5%, 3/15/19 (144A) 772,500 260,000 B-/B3 TMS International Corp., 7.625%, 10/15/21 (144A) 271,700 --------------- $ 1,409,900 --------------------------------------------------------------------------------------------------------- Environmental & Facilities Services -- 0.0%+ 700,000(c) NR/WR Old AII, Inc., 10.0%, 12/15/16 $ 70 --------------- Total Commercial & Professional Services $ 1,409,970 --------------------------------------------------------------------------------------------------------- CONSUMER DURABLES & APPAREL -- 1.8% Home Furnishings -- 0.3% 535,000 B+/B3 Tempur Sealy International, Inc., 6.875%, 12/15/20 $ 571,112 --------------------------------------------------------------------------------------------------------- Homebuilding -- 0.5% 530,000 CCC/Caa2 Beazer Homes USA, Inc., 9.125%, 6/15/18 $ 565,775 605,000(c) NR/C Desarrolladora Homex SAB de CV, 9.5%, 12/11/19 (144A) 99,825 500,000(c) NR/Ca Urbi Desarrollos Urbanos SAB de CV, 9.75%, 2/3/22 (144A) 80,000 --------------- $ 745,600 --------------------------------------------------------------------------------------------------------- Leisure Products -- 1.0% EUR 275,000 CCC+/Caa2 Heckler & Koch GmbH, 9.5%, 5/15/18 (144A) $ 366,120 1,000,000 CCC+/Caa1 Icon Health & Fitness, Inc., 11.875%, 10/15/16 (144A) 901,250 375,000(f) CCC+/Caa2 PC Nextco Holdings LLC / PC Nextco Finance, Inc., 8.75%, 8/15/19 (144A) 387,188 --------------- $ 1,654,558 --------------- Total Consumer Durables & Apparel $ 2,971,270 --------------------------------------------------------------------------------------------------------- CONSUMER SERVICES -- 4.9% Business Services -- 0.8% 750,000 B/B2 Sitel LLC / Sitel Finance Corp., 11.0%, 8/1/17 (144A) $ 815,625 500,000 B-/Caa2 Sitel LLC / Sitel Finance Corp., 11.5%, 4/1/18 433,750 --------------- $ 1,249,375 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 23 Schedule of Investments | 10/31/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Casinos & Gaming -- 1.4% 500,000(c) NR/WR Buffalo Thunder Development Authority, 9.375%, 12/15/14 (144A) $ 185,000 EUR 1,155,000 CC/Ca Codere Finance Luxembourg SA, 8.25%, 6/15/15 (144A) 851,438 90,000 NR/NR Little Traverse Bay Bands of Odawa Indians, 9.0%, 8/31/20 (144A) 88,200 712,691 NR/NR Mashantucket Western Pequot Tribe, 6.5%, 7/1/36 94,432 EUR 500,000 CCC/Caa1 Peermont Global, Ltd., 7.75%, 4/30/14 (144A) 676,028 450,000 B+/B2 Scientific Games International, Inc., 9.25%, 6/15/19 485,437 --------------- $ 2,380,535 --------------------------------------------------------------------------------------------------------- Hotels, Resorts & Cruise Lines -- 0.9% 720,000(f) B-/B3 MISA Investments, Ltd., 8.625%, 8/15/18 (144A) $ 745,200 400,000 CCC+/B2 Seven Seas Cruises S de RL LLC, 9.125%, 5/15/19 439,500 325,000 B+/B3 Viking Cruises, Ltd., 8.5%, 10/15/22 (144A) $ 364,000 --------------- $ 1,548,700 --------------------------------------------------------------------------------------------------------- Leisure Facilities -- 0.7% EUR 800,000 B+/B3 Cirsa Funding Luxembourg SA, 8.75%, 5/15/18 (144A) $ 1,144,152 --------------------------------------------------------------------------------------------------------- Restaurants -- 0.9% 1,235,000(e) B-/Caa1 Burger King Capital Holdings LLC, 0.0%, 4/15/19 (144A) $ 1,096,062 400,000 B/B3 Burger King Corp., 9.875%, 10/15/18 448,500 --------------- $ 1,544,562 --------------------------------------------------------------------------------------------------------- Specialized Consumer Services -- 0.2% 315,000 B-/B3 StoneMor Partners LP / Cornerstone Family Services of WV, 7.875%, 6/1/21 (144A) $ 326,813 --------------- Total Consumer Services $ 8,194,137 --------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIALS -- 2.1% Asset Management & Custody Banks -- 0.4% 590,000 BBB-/Baa3 Janus Capital Group, Inc., 6.7%, 6/15/17 $ 666,513 --------------------------------------------------------------------------------------------------------- Consumer Finance -- 0.9% 445,000 B+/B1 Jefferies Finance LLC / JFIN Co-Issuer Corp., 7.375%, 4/1/20 (144A) $ 457,237 610,000 NR/NR Tarjeta Naranja SA, 9.0%, 1/28/17 (144A) 606,950 440,000 B+/B3 TMX Finance LLC / TitleMax Finance Corp., 8.5%, 9/15/18 (144A) 467,500 --------------- $ 1,531,687 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 24 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Investment Banking & Brokerage -- 0.2% 450,000(a)(d) BB+/Ba2 Goldman Sachs Capital II, 4.0%, 12/1/49 $ 331,875 --------------------------------------------------------------------------------------------------------- Multi-Sector Holdings -- 0.3% 600,000 B/B3 Constellation Enterprises LLC, 10.625%, 2/1/16 (144A) $ 510,000 --------------------------------------------------------------------------------------------------------- Specialized Finance -- 0.3% 425,000 B+/B2 National Money Mart Co., 10.375%, 12/15/16 $ 442,000 --------------- Total Diversified Financials $ 3,482,075 --------------------------------------------------------------------------------------------------------- ENERGY -- 14.6% Coal & Consumable Fuels -- 1.2% 850,000 CC/Ca Bumi Capital Pte, Ltd., 12.0%, 11/10/16 (144A) $ 518,500 400,000 CCC/Caa2 James River Coal Co., 7.875%, 4/1/19 132,000 400,000 B-/Caa1 Mongolian Mining Corp., 8.875%, 3/29/17 (144A) 327,000 300,000 B-/Caa1 Murray Energy Corp., 8.625%, 6/15/21 (144A) 321,000 715,000 B-/Caa1 Penn Virginia Corp., 8.5%, 5/1/20 758,794 --------------- $ 2,057,294 --------------------------------------------------------------------------------------------------------- Oil & Gas Drilling -- 1.6% 645,000 B/B3 Hercules Offshore, Inc., 8.75%, 7/15/21 (144A) $ 709,500 1,000,000 CCC+/Caa3 Ocean Rig UDW, Inc., 9.5%, 4/27/16 (144A) 1,062,500 500,000 B+/B2 Pioneer Energy Services Corp., 9.875%, 3/15/18 537,500 320,000 B+/B1 Shelf Drill Holdings, Ltd., 8.625%, 11/1/18 (144A) 344,800 --------------- $ 2,654,300 --------------------------------------------------------------------------------------------------------- Oil & Gas Equipment & Services -- 0.9% 448,000 B/B1 Expro Finance Luxembourg SCA, 8.5%, 12/15/16 (144A) $ 469,280 690,000 B/Caa1 Forbes Energy Services, Ltd., 9.0%, 6/15/19 696,900 330,000 B/B3 Seitel, Inc., 9.5%, 4/15/19 340,312 --------------- $ 1,506,492 --------------------------------------------------------------------------------------------------------- Oil & Gas Exploration & Production -- 10.7% 520,000 CCC+/Caa1 Athlon Holdings LP / Athlon Finance Corp., 7.375%, 4/15/21 (144A) $ 543,400 505,000 BB-/B1 Berry Petroleum Co., 10.25%, 6/1/14 530,250 100,000 B-/B3 Comstock Resources, Inc., 7.75%, 4/1/19 104,500 500,000 B-/B3 Comstock Resources, Inc., 9.5%, 6/15/20 555,000 515,000 B+/B3 Energy XXI Gulf Coast, Inc., 7.5%, 12/15/21 (144A) 538,175 600,000 B/B2 EP Energy LLC / EP Energy Finance, Inc., 9.375%, 5/1/20 693,000 292,010(f) B/B3 EPE Holdings LLC / EP Energy Bond Co., Inc., 8.875%, 12/15/17 (144A) 305,881 920,000 B-/B3 Forest Oil Corp., 7.5%, 9/15/20 913,100
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 25 Schedule of Investments | 10/31/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Oil & Gas Exploration & Production -- (continued) 360,000 B/NR GeoPark Latin America, Ltd., Agencia en Chile, 7.5%, 2/11/20 (144A) $ 366,300 570,000 CCC+/B3 Gulfport Energy Corp., 7.75%, 11/1/20 604,200 165,000 CCC+/Caa1 Halcon Resources Corp., 9.25%, 2/15/22 (144A) 174,900 890,000 CCC+/Caa1 Halcon Resources Corp., 9.75%, 7/15/20 967,875 680,000 B-/Caa1 Lightstream Resources, Ltd., 8.625%, 2/1/20 (144A) 681,700 220,000 B-/Caa1 Memorial Production Partners LP / Memorial Production Finance Corp., 7.625%, 5/1/21 (144A) 223,300 410,000 B-/Caa1 Memorial Production Partners LP / Memorial Production Finance Corp., 7.625%, 5/1/21 416,150 600,000 B-/Caa1e Midstates Petroleum Co., Inc., 9.25%, 6/1/21 618,000 455,000 B-/Caa1e Midstates Petroleum Co., Inc., 10.75%, 10/1/20 491,400 800,000 B+/NR MIE Holdings Corp., 9.75%, 5/12/16 (144A) 844,000 200,000 NR/NR National JSC Naftogaz of Ukraine, 9.5%, 9/30/14 188,500 1,440,000 B-/Caa1 Northern Oil & Gas, Inc., 8.0%, 6/1/20 1,490,400 535,000 B-/B3 PDC Energy, Inc., 7.75%, 10/15/22 580,475 750,000 B/Caa1 PetroQuest Energy, Inc., 10.0%, 9/1/17 772,500 480,000 B-/Caa1 QR Energy LP / QRE Finance Corp., 9.25%, 8/1/20 502,800 240,000 CCC-/Caa3 Quicksilver Resources, Inc., 7.125%, 4/1/16 228,000 700,000 B-/B3 Resolute Energy Corp., 8.5%, 5/1/20 735,000 870,000 B-/B3 RKI Exploration & Production LLC / RKI Finance Corp., 8.5%, 8/1/21 (144A) 904,800 472,000 B+/B2 Rosetta Resources, Inc., 9.5%, 4/15/18 509,760 700,000 CCC+/B3 Samson Investment Co., 10.25%, 2/15/20 (144A) 756,000 1,170,000 CCC+/Caa1 Sanchez Energy Corp., 7.75%, 6/15/21 (144A) 1,193,400 335,000 CCC+/Caa1 Talos Production LLC / Talos Production Finance, Inc., 9.75%, 2/15/18 (144A) 338,350 CAD 315,000 B/NR Trilogy Energy Corp., 7.25%, 12/13/19 (144A) 311,387 --------------- $ 18,082,503 --------------------------------------------------------------------------------------------------------- Oil & Gas Storage & Transportation -- 0.2% 450,000(a) BB/Ba1 Energy Transfer Partners LP, 3.259%, 11/1/66 (144A) $ 407,250 --------------- Total Energy $ 24,707,839 --------------------------------------------------------------------------------------------------------- FOOD, BEVERAGE & TOBACCO -- 7.4% Agricultural Products -- 1.1% 900,000 CCC+/Caa1 Pinnacle Operating Corp., 9.0%, 11/15/20 (144A) $ 940,500 520,000 B/B2 Southern States Cooperative, Inc., 10.0%, 8/15/21 (144A) 507,000 500,000 B/NR Tonon Bioenergia SA, 9.25%, 1/24/20 (144A) 458,750 --------------- $ 1,906,250 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 26 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Packaged Foods & Meats -- 5.3% 225,000 B/B2 Agrokor DD, 8.875%, 2/1/20 (144A) $ 244,147 EUR 200,000 B/B2 Agrokor DD, 9.875%, 5/1/19 (144A) 307,100 650,000 BB/Ba3 Bertin SA / Bertin Finance, Ltd., 10.25%, 10/5/16 (144A) 724,750 500,000 B+/B1 CFG Investment SAC, 9.75%, 7/30/19 (144A) 477,500 305,000 B/B1 Chiquita Brands International, Inc. / Chiquita Brands LLC, 7.875%, 2/1/21 (144A) 330,925 491,000 B+/B2 Corporacion Pesquera Inca SAC, 9.0%, 2/10/17 (144A) 491,000 1,100,000 B/B3 FAGE Dairy Industry SA/FAGE USA Dairy Industry, Inc., 9.875%, 2/1/20 (144A) 1,190,750 224,421(c) NR/NR Independencia International, Ltd., 12.0%, 12/30/16 (144A) 281 800,000 B/B2 Marfrig Holding Europe BV, 8.375%, 5/9/18 (144A) 754,000 700,000 B/B2 Marfrig Holding Europe BV, 11.25%, 9/20/21 (144A) 695,625 475,000 B/B2 Marfrig Overseas, Ltd., 9.5%, 5/4/20 (144A) 458,375 700,000 B/NR MHP SA, 8.25%, 4/2/20 (144A) 600,250 1,600,000 BB-/B1 Minerva Luxembourg SA, 7.75%, 1/31/23 (144A) 1,552,000 200,000 BB-/B1 Minerva Luxembourg SA, 12.25%, 2/10/22 (144A) 224,000 600,000 B+/B2 Pesquera Exalmar SAA, 7.375%, 1/31/20 (144A) 552,000 300,000 BB-/Caa1 Pilgrim's Pride Corp., 7.875%, 12/15/18 327,750 --------------- $ 8,930,453 --------------------------------------------------------------------------------------------------------- Tobacco -- 1.0% 1,645,000 B-/Caa1 Alliance One International, Inc., 9.875%, 7/15/21 (144A) $ 1,579,200 --------------- Total Food, Beverage & Tobacco $ 12,415,903 --------------------------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SERVICES -- 3.4% Health Care Equipment & Services -- 1.1% 915,000 CCC+/Caa2 Accellent, Inc., 10.0%, 11/1/17 $ 869,250 831,000 B+/B2 Physio-Control International, Inc., 9.875%, 1/15/19 (144A) 926,565 --------------- $ 1,795,815 --------------------------------------------------------------------------------------------------------- Health Care Facilities -- 0.5% 600,000 B-/B3 Kindred Healthcare, Inc., 8.25%, 6/1/19 $ 645,000 200,000 CCC+/Caa1 United Surgical Partners International, 9.0%, 4/1/20 224,000 --------------- $ 869,000 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 27 Schedule of Investments | 10/31/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Health Care Services -- 1.0% 476,000 B/B2 Gentiva Health Services, Inc., 11.5%, 9/1/18 $ 493,850 1,170,000 CCC+/Caa1 Surgical Care Affiliates, Inc., 10.0%, 7/15/17 (144A) 1,210,950 --------------- $ 1,704,800 --------------------------------------------------------------------------------------------------------- Health Care Supplies -- 0.6% 455,000 NR/Caa1 Bausch & Lomb, Inc., 9.875%, 11/1/15 $ 455,000 500,000 B-/Caa2 Immucor, Inc., 11.125%, 8/15/19 561,250 --------------- $ 1,016,250 --------------------------------------------------------------------------------------------------------- Health Care Technology -- 0.2% 275,000 CCC+/Caa1 Emdeon, Inc., 11.0%, 12/31/19 $ 316,250 --------------- Total Health Care Equipment & Services $ 5,702,115 --------------------------------------------------------------------------------------------------------- INSURANCE -- 25.7% Insurance Brokers -- 0.5% GBP 475,000 NR/Caa2 Towergate Finance Plc, 10.5%, 2/15/19 (144A) $ 808,220 --------------------------------------------------------------------------------------------------------- Multi-Line Insurance -- 0.6% 1,000,000(b) BB/Baa3 Liberty Mutual Group, Inc., 7.0%, 3/15/37 (144A) $ 1,040,000 --------------------------------------------------------------------------------------------------------- Property & Casualty Insurance -- 2.1% 6,000,000(e)(g)(h) BBB/NR Fixed Income Trust Series 2013-A, 0.0%, 10/15/97 (144A) $ 3,421,927 80,000(b)(d) BB+/Ba2 White Mountains Insurance Group, Ltd., 7.506% (144A) 82,336 --------------- $ 3,504,263 --------------------------------------------------------------------------------------------------------- Reinsurance -- 22.5% 250,000(a) BB+/NR Armor Re, Ltd., 4.25%, 5/14/14 (144A) $ 253,675 EUR 750,000(a) BB/NR ATLAS Reinsurance VII, 3.65%, 1/7/16 (144A) 1,028,310 EUR 500,000(a) B-/NR ATLAS VI Capital, Ltd., 10.5%, 4/7/14 (144A) 671,340 1,000,000(a) BB+/NR Bosphorus 1 Re, Ltd., 2.53%, 5/3/16 (144A) 997,800 900,000(a) NR/Ba2 Combine Re, Ltd., 10.03%, 1/7/15 (144A) 975,240 750,000(a) NR/NR Combine Re, Ltd., 17.78%, 1/7/15 (144A) 837,825 500,000(a) BB-/NR Compass Re, Ltd., 10.28%, 1/8/15 (144A) 524,900 500,000(a) B+/NR Compass Re, Ltd., 11.28%, 1/8/15 (144A) 528,000 1,000,000(a) BB+/NR Foundation Re III, Ltd., 5.03%, 2/25/15 1,029,600 1,000,000(a) BB/NR Foundation Re III, Ltd., 5.78%, 2/3/14 (144A) 1,010,100 1,300,000(a) B-/NR Ibis Re II, Ltd., 13.53%, 2/5/15 (144A) 1,393,470 500,000(a) BB+/NR Kibou, Ltd., 5.28%, 2/16/15 (144A) 514,900 1,750,000(a) BB-/NR MetroCat Re, Ltd., 4.53%, 8/5/16 (144A) 1,808,450 1,000,000(a) B/NR Montana Re, Ltd., 12.158%, 1/8/14 (144A) 1,016,300 2,000,000(a) NR/NR Montana Re, Ltd., 16.658%, 1/8/14 (144A) 2,046,000
The accompanying notes are an integral part of these financial statements. 28 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Reinsurance -- (continued) 975,000(a) B-/NR Mythen Re, Ltd., 11.843%, 11/10/16 (144A) $ 997,522 500,000(a) B+/NR Mythen Re, Ltd. Series 2012-2 Class A, 8.613%, 1/5/17 (144A) 520,000 1,500,000(a) NR/B2 Mythen Re, Ltd., 11.105%, 5/7/15 (144A) 1,633,350 1,250,000(a) NR/NR Pelican Re, Ltd., 6.03%, 5/15/17 (144A) 1,277,000 1,200,000(a) BB-/NR Queen Street II Capital, Ltd., 7.53%, 4/9/14 (144A) 1,215,120 2,000,000(a) BB-/NR Queen Street IV Capital, Ltd., 7.53%, 4/9/15 (144A) 2,061,400 250,000(a) B/NR Queen Street VII Re, Ltd., 8.63%, 4/8/16 (144A) 257,025 1,250,000(a) B-/NR Residential Reinsurance 2011, Ltd., 12.03%, 6/6/15 (144A) 1,353,625 250,000(a) NR/NR Residential Reinsurance 2012, Ltd., 12.78%, 12/6/16 (144A) 274,800 1,250,000(a) NR/NR Residential Reinsurance 2012, Ltd., 19.03%, 12/6/16 (144A) 1,381,500 1,000,000(a) NR/NR Residential Reinsurance 2012, Ltd., 22.03%, 6/6/16 (144A) 1,141,700 1,000,000(i) NR/NR Sector Re V, Ltd., 0.0%, 12/1/17 (144A) 1,261,200 1,500,000(i) NR/NR Sector Re V, Ltd., 0.0%, 3/1/18 (144A) 1,702,350 500,000(a) NR/B2 Successor X, Ltd., 11.03%, 1/27/15 (144A) 526,900 1,500,000(a) B-/NR Successor X, Ltd., 11.28%, 11/10/15 (144A) 1,557,750 2,000,000(a) B-/NR Successor X, Ltd., 14.594%, 1/7/14 (144A) 2,031,400 2,000,000(a) NR/NR Successor X, Ltd., 16.094%, 1/7/14 (144A) 2,037,000 1,000,000(a) NR/NR Successor X, Ltd., 16.53%, 1/27/15 (144A) 1,045,700 1,000,000(a) B+/NR Tar Heel Re, Ltd., 8.53%, 5/9/16 (144A) 1,059,900 $ 37,971,152 --------------- Total Insurance $ 43,323,635 --------------------------------------------------------------------------------------------------------- MATERIALS -- 12.2% Commodity Chemicals -- 0.5% 300,000 BBB-/WR Basell Finance Co. BV, 8.1%, 3/15/27 (144A) $ 391,778 EUR 250,000 CCC/B3 KP Germany Erste GmbH, 11.625%, 7/15/17 (144A) $ 395,001 --------------- $ 786,779 --------------------------------------------------------------------------------------------------------- Construction Materials -- 0.5% 389,000 B+/NR Cemex Espana Luxembourg, 9.875%, 4/30/19 (144A) $ 439,570 100,000 B+/NR Cemex SAB de CV, 9.0%, 1/11/18 (144A) 108,750 300,000(d) BB/NR Magnesita Finance, Ltd., 8.625% (144A) 294,000 --------------- $ 842,320 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 29 Schedule of Investments | 10/31/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Diversified Chemicals -- 0.9% EUR 926,278 B-/Caa1 INEOS Group Holdings SA, 7.875%, 2/15/16 (144A) $ 1,275,728 275,000 CC/Caa1 Momentive Performance Materials, Inc., 9.0%, 1/15/21 243,375 --------------- $ 1,519,103 --------------------------------------------------------------------------------------------------------- Diversified Metals & Mining -- 1.7% 590,000 B/B3 Boart Longyear Management Pty, Ltd., 7.0%, 4/1/21 (144A) $ 438,075 330,000 BB-/B1 Boart Longyear Management Pty, Ltd., 10.0%, 10/1/18 (144A) 338,250 300,000 CCC/Caa2 Midwest Vanadium Pty., Ltd., 11.5%, 2/15/18 (144A) 252,000 650,000(c) D/Ca Mirabela Nickel, Ltd., 8.75%, 4/15/18 (144A) 227,500 550,000 CCC+/B3 Molycorp, Inc., 10.0%, 6/1/20 544,500 180,000 B/Caa1 Prince Mineral Holding Corp., 11.5%, 12/15/19 (144A) 199,800 750,000 BB/Ba3 Vedanta Resources Plc, 9.5%, 7/18/18 (144A) 833,400 --------------- $ 2,833,525 --------------------------------------------------------------------------------------------------------- Metal & Glass Containers -- 0.9% 592,081(f) CCC+/Caa1 Ardagh Finance SA, 11.125%, 6/1/18 (144A) $ 651,289 EUR 250,000 CCC+/B3 Ardagh Glass Finance Plc, 8.75%, 2/1/20 (144A) 353,233 EUR 255,000 B+/Ba3 Ardagh Glass Finance Plc, 9.25%, 7/1/16 (144A) 364,068 175,000 CCC+/Caa1 BWAY Holdings Co., 10.0%, 6/15/18 190,750 --------------- $ 1,559,340 --------------------------------------------------------------------------------------------------------- Paper Packaging -- 1.3% 606,510(e) NR/NR Bio Pappel SAB de CV, 10.0%, 8/27/16 $ 615,607 500,000 B-/Caa1 Pretium Packaging LLC / Pretium Finance, Inc., 11.5%, 4/1/16 540,000 500,000 CCC+/Caa2 Reynolds Group Issuer, Inc., 9.0%, 4/15/19 535,000 475,000 CCC+/Caa2 Reynolds Group Issuer, Inc., 9.875%, 8/15/19 525,469 --------------- $ 2,216,076 --------------------------------------------------------------------------------------------------------- Paper Products -- 1.8% 200,000 CCC+/B3 Appvion, Inc., 11.25%, 12/15/15 $ 227,000 580,000 B-/Caa2 Exopack Holdings Corp., 10.0%, 6/1/18 626,400 186,000 B+/B1 Grupo Papelero Scribe SA de CV, 8.875%, 4/7/20 (144A) 181,815 344,000 B/B3 Mercer International, Inc., 9.5%, 12/1/17 373,240 840,000 BB-/Ba3 Resolute Forest Products, Inc., 5.875%, 5/15/23 (144A) 764,400 545,000 BB/Ba2 Sappi Papier Holding GmbH, 8.375%, 6/15/19 (144A) 576,338
The accompanying notes are an integral part of these financial statements. 30 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Paper Products -- (continued) 255,000 B-/Caa1 Unifrax I LLC / Unifrax Holding Co., 7.5%, 2/15/19 (144A) $ 257,550 --------------- $ 3,006,743 --------------------------------------------------------------------------------------------------------- Precious Metals & Minerals -- 0.3% 500,000 BB-/Ba3 ALROSA Finance SA, 8.875%, 11/17/14 (144A) $ 537,000 --------------------------------------------------------------------------------------------------------- Steel -- 4.3% 750,000 B/Caa1 AM Castle & Co., 12.75%, 12/15/16 $ 847,500 250,000 B+/B3 APERAM, 7.375%, 4/1/16 (144A) 257,500 315,000 B/Caa1 Atkore International, Inc., 9.875%, 1/1/18 340,200 450,000(c) B/B3 Essar Steel Algoma, Inc., 9.375%, 3/15/15 (144A) 432,000 950,000 CCC/Caa2 Essar Steel Algoma, Inc., 9.875%, 6/15/15 (144A) 745,750 250,000 B+/B1 Evraz Group SA, 9.5%, 4/24/18 (144A) 274,375 900,000 B/Caa1 Ferrexpo Finance Plc, 7.875%, 4/7/16 (144A) 867,375 900,000 NR/Caa1 Metinvest BV, 8.75%, 2/14/18 (144A) 812,250 600,000 NR/Caa1 Metinvest BV, 10.25%, 5/20/15 (144A) 600,000 585,000 B/B2 Optima Specialty Steel, Inc., 12.5%, 12/15/16 (144A) 643,500 750,000 B-/B3 Permian Holdings, Inc., 10.5%, 1/15/18 (144A) 740,625 750,000 CCC+/NR Ryerson, Inc., 9.0%, 10/15/17 783,750 --------------- $ 7,344,825 --------------- Total Materials $ 20,645,711 --------------------------------------------------------------------------------------------------------- MEDIA -- 5.4% Advertising -- 0.7% 1,100,000 B-/B3 Good Sam Enterprises LLC, 11.5%, 12/1/16 $ 1,199,000 --------------------------------------------------------------------------------------------------------- Broadcasting -- 2.2% 400,000 CCC+/Caa2 Intelsat Luxembourg SA, 7.75%, 6/1/21 (144A) $ 422,000 EUR 150,000 B+/B1 Nara Cable Funding II, Ltd., 8.5%, 3/1/20 (144A) 235,421 200,000 B+/B1 Nara Cable Funding, Ltd., 8.875%, 12/1/18 (144A) 213,500 1,655,000 B/B3 Townsquare Radio LLC / Townsquare Radio, Inc., 9.0%, 4/1/19 (144A) 1,770,850 990,000 CCC+/Caa1 Truven Health Analytics, Inc., 10.625%, 6/1/20 1,122,412 --------------- $ 3,764,183 --------------------------------------------------------------------------------------------------------- Cable -- 0.2% EUR 200,000 B+/B1 Nara Cable Funding, Ltd., 8.875%, 12/1/18 (144A) $ 292,832 --------------------------------------------------------------------------------------------------------- Movies & Entertainment -- 1.6% 1,710,000 CCC+/Caa1 AMC Entertainment, Inc., 9.75%, 12/1/20 $ 1,953,675 600,000 B/B2 Gibson Brands, Inc., 8.875%, 8/1/18 (144A) 627,000 200,000 CCC+/Caa1 Production Resource Group, Inc., 8.875%, 5/1/19 150,000 --------------- $ 2,730,675 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 31 Schedule of Investments | 10/31/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Publishing -- 0.7% 855,000 BB/Ba1 Gannett Co., Inc., 6.375%, 10/15/23 (144A) $ 902,025 245,000 B-/B3 Interactive Data Corp., 10.25%, 8/1/18 270,725 $ 1,172,750 --------------- Total Media $ 9,159,440 --------------------------------------------------------------------------------------------------------- PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 0.7% Biotechnology -- 0.7% 300,000 B/B3 ConvaTec Healthcare E SA, 10.5%, 12/15/18 (144A) $ 339,750 1,043,000 B/Caa2 Lantheus Medical Imaging, Inc., 9.75%, 5/15/17 938,700 --------------- Total Pharmaceuticals, Biotechnology & Life Sciences $ 1,278,450 --------------------------------------------------------------------------------------------------------- REAL ESTATE -- 0.4% Diversified REIT's -- 0.1% 200,000 B/Ba3 CNL Lifestyle Properties, Inc., 7.25%, 4/15/19 $ 208,000 --------------------------------------------------------------------------------------------------------- Real Estate Operating Companies -- 0.3% 410,000 CCC+/NR IRSA Inversiones y Representaciones SA, 8.5%, 2/2/17 (144A) $ 401,800 --------------- Total Real Estate $ 609,800 --------------------------------------------------------------------------------------------------------- RETAILING -- 0.6% Department Stores -- 0.6% 625,000 B/NR Grupo Famsa SAB de CV, 7.25%, 6/1/20 (144A) $ 625,000 350,000 CCC+/Caa2 Neiman Marcus Group, Inc., 8.0%, 10/15/21 (144A) 358,313 --------------- Total Retailing $ 983,313 --------------------------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.3% Semiconductors -- 0.3% 500,000 B/B2 Advanced Micro Devices, Inc., 7.5%, 8/15/22 $ 485,000 --------------- Total Semiconductors & Semiconductor Equipment $ 485,000 --------------------------------------------------------------------------------------------------------- SOFTWARE & SERVICES -- 1.3% Application Software -- 0.3% 415,000 B-/B3 Interface Security Systems Holdings, Inc. / Interface Security Systems LLC, 9.25%, 1/15/18 (144A) $ 435,750 --------------------------------------------------------------------------------------------------------- Data Processing & Outsourced Services -- 0.4% 404,000 B-/Caa1 First Data Corp., 8.25%, 1/15/21 (144A) $ 430,260 250,000 B-/Caa1 First Data Corp., 10.625%, 6/15/21 (144A) 268,437 --------------- $ 698,697 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 32 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Systems Software -- 0.6% 1,064,473(f)(g) NR/NR Pegasus Solutions, Inc., 13.0%, 4/15/14 (144A) $ 989,960 --------------- Total Software & Services $ 2,124,407 --------------------------------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES -- 2.4% Integrated Telecommunication Services -- 0.7% 388,000 CCC+/Caa1 Cincinnati Bell, Inc., 8.75%, 3/15/18 $ 411,280 300,000 BB-/Ba2 Frontier Communications Corp., 8.75%, 4/15/22 342,750 350,000 NR/WR PAETEC Holding Corp., 9.875%, 12/1/18 392,000 --------------- $ 1,146,030 --------------------------------------------------------------------------------------------------------- Wireless Telecommunication Services -- 1.7% 300,000 NR/Caa1 Digicel Group, Ltd., 10.5%, 4/15/18 (144A) $ 324,000 750,000 CCC/Caa2 NII Capital Corp., 10.0%, 8/15/16 585,000 250,000 NR/NR Unison Ground Lease Funding LLC, 5.78%, 3/15/20 (144A) 241,655 1,115,000 BB/Ba3 Vimpel Communications Via VIP Finance Ireland, Ltd., OJSC, 9.125%, 4/30/18 (144A) 1,301,762 RUB 14,400,000 BB/Ba3 VimpelCom Holdings BV, 9.0%, 2/13/18 (144A) 453,183 --------------- $ 2,905,600 --------------- Total Telecommunication Services $ 4,051,630 --------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 3.8% Airlines -- 0.8% 1,000,000 B-/NR Gol Finance, 9.25%, 7/20/20 (144A) $ 892,500 500,000 BB-/NR TAM Capital 3, Inc., 8.375%, 6/3/21 (144A) 515,000 --------------- $ 1,407,500 --------------------------------------------------------------------------------------------------------- Airport Services -- 0.3% 590,960 CCC+/B3 Aeropuertos Argentina 2000 SA, 10.75%, 12/1/20 (144A) $ 585,050 --------------------------------------------------------------------------------------------------------- Highways & Railtracks -- 0.2% MXN 4,500,000 BBB/NR Red de Carreteras de Occidente SAPIB de CV, 9.0%, 6/10/28 (144A) $ 303,672 --------------------------------------------------------------------------------------------------------- Marine -- 0.6% 500,000 BB-/NR Far East Capital, Ltd. SA, 8.0%, 5/2/18 (144A) $ 452,500 525,000 B+/B3 Navios South American Logistics, Inc. / Navios Logistics Finance U.S., Inc., 9.25%, 4/15/19 568,313 --------------- $ 1,020,813 --------------------------------------------------------------------------------------------------------- Railroads -- 0.2% 310,254(f) CCC/Caa3 Florida East Coast Holdings Corp., 10.5%, 8/1/17 $ 322,664 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 33 Schedule of Investments | 10/31/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Trucking -- 1.7% 650,000 BB-/Ba3 Aeropuertos Dominicanos Siglo XXI SA, 9.25%, 11/13/19 (144A) $ 643,500 1,000,000 B-/B2 Jack Cooper Holdings Corp., 9.25%, 6/1/20 (144A) 1,070,000 425,000 B+/B3 Swift Services Holdings, Inc., 10.0%, 11/15/18 476,000 - 550,000 B-/WR Syncreon Global Ireland, Ltd., 9.5%, 5/1/18 (144A) 598,125 --------------- $ 2,787,625 --------------- Total Transportation $ 6,427,324 --------------------------------------------------------------------------------------------------------- UTILITIES -- 1.9% Electric Utilities -- 1.3% 750,000 CCC/NR Cia de Energia Electrica en Alta Tension Transener SA, 9.75%, 8/15/21 (144A) $ 450,000 625,000 NR/Caa1 DTEK Finance Plc, 7.875%, 4/4/18 (144A) 562,500 419,000 NR/Caa3 Empresa Distrbuidora Y Comercializadora Norte, 9.75%, 10/25/22 (144A) 268,160 460,000(b) NR/Ba1 Enel S.p.A., 8.75%, 9/24/73 (144A) 498,318 225,000 BBB-/Ba1 PNM Resources, Inc., 9.25%, 5/15/15 250,875 240,000 CCC-/Caa3 Texas Competitive Electric Holdings Co., LLC / TCEH Finance, Inc., 11.5%, 10/1/20 (144A) 171,000 --------------- $ 2,200,853 --------------------------------------------------------------------------------------------------------- Gas Utilities -- 0.6% 1,135,000 CCC+/B3 Transportadora de Gas del Sur SA, 7.875%, 5/14/17 (144A) $ 1,075,413 --------------- Total Utilities $ 3,276,266 --------------------------------------------------------------------------------------------------------- TOTAL CORPORATE BONDS & NOTES (Cost $164,626,708) $ 166,742,405 --------------------------------------------------------------------------------------------------------- CONVERTIBLE BONDS & NOTES -- 2.7% of Net Assets DIVERSIFIED FINANCIALS -- 0.1% Asset Management & Custody Banks -- 0.1% 120,000 BBB/NR Apollo Investment Corp., 5.75%, 1/15/16 $ 127,050 --------------- Total Diversified Financials $ 127,050 --------------------------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SERVICES -- 1.0% Health Care Equipment & Services -- 0.7% 1,040,000(e) B+/NR Hologic, Inc., 2.0%, 12/15/37 $ 1,220,700 --------------------------------------------------------------------------------------------------------- Health Care Facilities -- 0.3% 405,000 B/NR LifePoint Hospitals, Inc., 3.5%, 5/15/14 $ 437,653 --------------------------------------------------------------------------------------------------------- Health Care Services -- 0.0%+ 15,000 B+/B2 Omnicare, Inc., 3.25%, 12/15/35 $ 15,947 --------------- Total Health Care Equipment & Services $ 1,674,300 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 34 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- MATERIALS -- 1.0% Diversified Chemicals -- 1.0% 1,900,000(j) B+/NR Hercules, Inc., 6.5%, 6/30/29 $ 1,653,000 --------------------------------------------------------------------------------------------------------- Diversified Metals & Mining -- 0.0%+ 100,000 BB/NR Vedanta Resources Jersey, Ltd., 5.5%, 7/13/16 $ 101,550 --------------- Total Materials $ 1,754,550 --------------------------------------------------------------------------------------------------------- MEDIA -- 0.4% Movies & Entertainment -- 0.4% 659,000 B/NR Live Nation Entertainment, Inc., 2.875%, 7/15/27 $ 674,651 --------------- Total Media $ 674,651 --------------------------------------------------------------------------------------------------------- PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 0.1% Biotechnology -- 0.1% 250,000 NR/NR Corsicanto, Ltd., 3.5%, 1/15/32 $ 172,344 --------------- Total Pharmaceuticals, Biotechnology & Life Sciences $ 172,344 --------------------------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.1% Semiconductors -- 0.1% 250,000 NR/NR ReneSola, Ltd., 4.125%, 3/15/18 (144A) $ 197,813 --------------- Total Semiconductors & Semiconductor Equipment $ 197,813 --------------------------------------------------------------------------------------------------------- TOTAL CONVERTIBLE BONDS & NOTES (Cost $3,598,744) $ 4,600,708 --------------------------------------------------------------------------------------------------------- SOVEREIGN DEBT OBLIGATIONS -- 2.6% of Net Assets Argentina -- 0.2% 400,000 CCC+/NR Province of Salta Argentina, 9.5%, 3/16/22 (144A) $ 385,000 --------------------------------------------------------------------------------------------------------- Brazil -- 0.2% BRL 750,000 BBB/Baa2 Brazilian Government International Bond, 10.25%, 1/10/28 $ 336,417 --------------------------------------------------------------------------------------------------------- Ghana -- 0.6% GHS 600,000 NR/NR Ghana Government Bond, 19.24%, 5/30/16 $ 270,609 GHS 300,000 NR/NR Ghana Government Bond, 21.0%, 10/26/15 $ 139,109 GHS 150,000 NR/NR Ghana Government Bond, 26.0%, 6/5/17 $ 78,984 500,000 B/B1 Republic of Ghana, 7.875%, 8/7/23 (144A) 496,250 --------------- $ 984,952 --------------------------------------------------------------------------------------------------------- Mexico -- 0.5% MXN 9,370,000 A-/Baa1 Mexican Bonos, 7.5%, 6/3/27 $ 41,951 MXN 9,370,000 A-/Baa1 Mexican Bonos, 7.75%, 11/13/42 714,005
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 35 Schedule of Investments | 10/31/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value --------------------------------------------------------------------------------------------------------- Mexico -- (continued) MXN 299,351 A-/Baa1 Mexican Udibonos, 3.5%, 12/14/17 $ 25,167 --------------- $ 781,123 --------------------------------------------------------------------------------------------------------- Nigeria -- 0.6% NGN 79,000,000 NR/NR Nigeria Government Bond, 16.0%, 6/29/19 $ 569,815 NGN 57,000,000(i) NR/NR Nigeria Treasury Bill, 0.0%, 2/6/14 347,522 NGN 28,000,000(i) NR/NR Nigeria Treasury Bill, 0.0%, 4/10/14 167,240 --------------- $ 1,084,577 --------------------------------------------------------------------------------------------------------- Ukraine -- 0.5% 100,000 B/Caa1 Ukraine Government International Bond, 6.75%, 11/14/17 (144A) $ 89,500 800,000 B/Caa1 Ukraine Government International Bond, 9.25%, 7/24/17 (144A) 765,000 --------------- $ 854,500 --------------------------------------------------------------------------------------------------------- TOTAL SOVEREIGN DEBT OBLIGATIONS (Cost $4,628,550) $ 4,426,569 --------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- Shares --------------------------------------------------------------------------------------------------------- COMMON STOCKS -- 0.7% of Net Assets DIVERSIFIED FINANCIALS -- 0.0%+ Other Diversified Financial Services -- 0.0%+ 731(k) BTA Bank JSC (G.D.R.) (144A) $ 593 --------------- Total Diversified Financials $ 593 --------------------------------------------------------------------------------------------------------- SOFTWARE & SERVICES -- 0.0%+ Systems Software -- 0.0%+ 2,114(g)(k) Perseus Holding Corp. $ 5,285 --------------- Total Software & Services $ 5,285 --------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 0.7% Air Freight & Logistics -- 0.5% - 943(k) CEVA Holdings LLC $ 872,562 --------------------------------------------------------------------------------------------------------- Marine -- 0.2% 247,509(g)(k) Horizon Lines, Inc., Class A $ 314,336 --------------- Total Transportation $ 1,186,898 --------------------------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $1,555,677) $ 1,192,776 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 36 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
--------------------------------------------------------------------------------------------------------- S&P/Moody's Shares Ratings Value --------------------------------------------------------------------------------------------------------- CONVERTIBLE PREFERRED STOCK -- 0.3% of Net Assets DIVERSIFIED FINANCIALS -- 0.3% Other Diversified Financial Services -- 0.3% 470(d) Bank of America Corp., 7.25% $ 506,425 --------------- Total Diversified Financials $ 506,425 --------------------------------------------------------------------------------------------------------- TOTAL CONVERTIBLE PREFERRED STOCK (Cost $382,900) $ 506,425 --------------------------------------------------------------------------------------------------------- PREFERRED STOCKS -- 4.2% of Net Assets BANKS -- 0.3% Diversified Banks -- 0.3% 500(b)(d) AgStar Financial Services ACA, 6.75% (144A) $ 499,500 --------------- Total Banks $ 499,500 --------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIALS -- 0.6% Other Diversified Financial Services -- 0.6% 40,675(b) GMAC Capital Trust I, 8.125% $ 1,092,530 --------------- Total Diversified Financials $ 1,092,530 --------------------------------------------------------------------------------------------------------- INSURANCE -- 3.2% Reinsurance -- 3.2% 2,000,000(k) Altair Re $ 2,092,000 15,000(k) Lorenz Re, Ltd. 1,662,900 1,500,000(k) Pangaea Re 1,583,700 --------------- $ 5,338,600 --------------- Total Insurance $ 5,338,600 --------------------------------------------------------------------------------------------------------- SOFTWARE & SERVICES -- 0.1% Data Processing & Outsourced Services -- 0.1% 1,110(g)(k) Perseus Holding Corp., 14.0% (144A) $ 91,020 --------------- Total Software & Services $ 91,020 --------------------------------------------------------------------------------------------------------- TOTAL PREFERRED STOCKS (Cost $6,433,996) $ 7,021,650 --------------------------------------------------------------------------------------------------------- RIGHT/WARRANT -- 0.0%+ of Net Assets AUTOMOBILES & COMPONENTS -- 0.0%+ Auto Parts & Equipment -- 0.0%+ 86(k) Lear Corp., Expires 11/9/14 $ 13,334 --------------- Total Automobiles & Components $ 13,334 --------------------------------------------------------------------------------------------------------- TOTAL RIGHT/WARRANT (Cost $4,645) $ 13,334 ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 37 Schedule of Investments | 10/31/13 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------- Principal Amount S&P/Moody's USD ($) Ratings Value ---------------------------------------------------------------------------------------------------------- TEMPORARY CASH INVESTMENTS -- 1.3% -- of Net Assets REPURCHASE AGREEMENT: 1.3% 2,140,000 Bank of Nova Scotia, 0.1%, dated 11/1/13, repurchase price of $2,140,000 plus accrued interest on 11/1/13 collateralized by the following: $1,993,872 Federal National Mortgage Association, 4.0%, 3/1/42-10/1/43 and $188,934 Freddie Mac Giant, 3.5%, 8/1/26-10/1/26. $ 2,140,000 ---------------------------------------------------------------------------------------------------------- TOTAL TEMPORARY CASH INVESTMENTS (Cost $2,140,000) $ 2,140,000 ---------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES -- 138.8% (Cost -- $231,203,004) (l) 234,056,910 ---------------------------------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES -- (38.8)% $ (65,403,329) ---------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHAREOWNERS -- 100.0% $ 168,653,581 ==========================================================================================================
+ Amount rounds to less than 0.1%. NR Security not rated by S&P or Moody's. WR Rating withdrawn by either S&P or Moody's. (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 October 31, 2013, the value of these securities amounted to $124,996,345, or 74.1% of total net assets applicable to common shareowners. * Senior secured floating rate loan interests in which the Trust invests generally pay interest at rates that are periodically redetermined by reference to a base lending plus a premium. These base lending rates are generally (i) the lending rate offered by one or more major European banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime rate offered by one or more major United States banks, (iii) the certificate of deposit or (iv) other base lending rates used by commercial lenders. The interest rate shown is the rate accruing at October 31, 2013. (a) Floating rate note. The rate shown is the coupon rate at October 31, 2013. (b) The interest rate is subject to change periodically. The interest is shown is the rate at October 31, 2013. (c) Security is in default and is non income producing. (d) Security is perpetual in nature and has no stated maturity date. (e) Debt obligation initially issued at one coupon which converts to a higher coupon at a specific date. The rate shown is the rate at October 31, 2013. (f) Payment in Kind (PIK) security which may pay interest in the form of additional principal amount. The accompanying notes are an integral part of these financial statements. 38 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 (g) Indicates a security that has been deemed illiquid. As of October 31, 2013 the aggregate cost of illiquid securities in the Trust's portfolio was $5,155,425. As of that date, the aggregate value of illiquid securities in the Trust's portfolio of $4,836,717 represented 2.9% of total net assets applicable to common shareowners. (h) Security is valued using fair value methods (other than prices supplied by independent pricing services). See Notes to Financial Statements -- Note 1A. (i) Security issued with a zero coupon. Income is recognized through accretion of discount. (j) Security is priced as a unit. (k) Non-income producing. (l) At October 31, 2013, the net unrealized appreciation on investments based on cost for federal tax purposes of $233,307,427 was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost $ 10,282,601 Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value (9,533,118) ---------------- Net unrealized appreciation $ 749,483 ================
For financial reporting purposes net unrealized appreciation on investments was $2,853,906 and cost of investments aggregated $231,203,004. (m) Distributions of Investments by country of issue, as a percentage of total investments in securities, is as follows:
United States 59.9% Cayman Islands 11.0 Luxembourg 4.1 Ireland 3.6 Bermuda 3.6 Argentina 2.0 United Kingdom 1.9 Netherlands 1.8 Canada 1.8 Mexico 1.6 Brazil 1.2 Other (individually less than 1%) 7.5 ------ 100.0% ======
Purchases and sales of securities (excluding temporary cash investments) for the six months ended October 31, 2013 aggregated $38,280,959 and $39,896,130, respectively. The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 39 Schedule of Investments | 10/31/13 (unaudited) (continued) Glossary of Terms: (G.D.R.) Global Depositary Receipt Principal amounts are denominated in U.S. dollars unless otherwise noted. BRL -- Brazilian Real CAD -- Canadian Dollar EUR -- Euro GBP -- Great British Pound GHS -- Ghanaian Cedis MXN -- Mexican Peso NGN -- Nigeria Naira RUB -- Russian Rubles Various inputs are used in determining the value of the Trust's investments. These inputs are summarized in the three broad levels below. Level 1 -- quoted prices in active markets for identical securities. Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds credit risks, etc.). See Notes to Financial Statements -- Note 1A. Level 3 -- significant unobservable inputs (including the Trust's own assumptions in determining fair value of investments). See Notes to Financial Statements -- Note 1A. 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) as level 3. See Notes to Financial Statements -- Note 1A. The accompanying notes are an integral part of these financial statements. 40 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 The following is a summary of the inputs used as of October 31, 2013, in valuing the Trust's investments.
---------------------------------------------------------------------------------------------- Level 1 Level 2 Level 3 Total ---------------------------------------------------------------------------------------------- Asset Backed Securities -- 2,336,860 -- 2,336,860 Collateralized Mortgage Obligations -- 3,314,432 -- 3,314,432 Commercial Mortgage-Backed Securities -- 527,359 -- 527,359 Senior Secured Floating Rate Loan Interests -- 41,234,392 -- 41,234,392 Corporate Bonds & Notes Reinsurance -- 35,007,602 2,963,550 37,971,152 Property & Casualty Insurance -- 82,336 3,421,927 3,504,263 All Other -- 125,266,990 -- 125,266,990 Convertible Bonds & Notes -- 4,600,708 -- 4,600,708 Sovereign Debt Obligations -- 4,426,569 -- 4,426,569 Common Stocks Air Freight & Logistics -- 872,562 -- 872,562 Systems Software -- 5,285 -- 5,285 All Other 314,929 -- -- 314,929 Convertible Preferred Stock: 506,425 -- -- 506,425 Preferred Stocks Reinsurance -- -- 5,338,600 5,338,600 Data Processing & Outsourced Services -- 91,020 -- 91,020 All Other 1,592,030 -- -- 1,592,030 Right/Warrant 13,334 -- -- 13,334 Temporary Cash Investments Repurchase Agreement -- 2,140,000 -- 2,140,000 ---------------------------------------------------------------------------------------------- Total Investments in Securities $2,426,718 $219,906,115 $11,724,077 $234,056,910 ============================================================================================== Other Financial Instruments Forward Foreign Currency Contracts $ -- $ (111,516) $ -- $ (111,516) ---------------------------------------------------------------------------------------------- Total Other Financial Instruments $ -- $ (111,516) $ -- $ (111,516) ==============================================================================================
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 41 Schedule of Investments | 10/31/13 (unaudited) (continued) The following is a reconciliation of assets valued using significant unobservable inputs (level 3):
------------------------------------------------------------------------------------------------------------------------------- Change in Balance Realized Unrealized Accrued Transfers Transfers Balance as of gain appreciation discounts/ in to out of as of 4/30/13 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* Level 3* 10/31/13 ------------------------------------------------------------------------------------------------------------------------------- Corporate Bonds & Notes Property & Casualty Insurance $3,754,107 $ -- $(332,179) $ -- $ -- $ -- $ -- $ -- $ 3,421,927 Reinsurance 2,588,700 -- 374,850 -- -- -- -- -- 2,963,550 Preferred Stocks Reinsurance** 3,509,600 -- 329,000 1,500,000 -- -- -- -- 5,338,600 ------------------------------------------------------------------------------------------------------------------------------- Total $9,852,407 $ -- $ 371,671 $1,500,000 $ -- $ -- $ -- $ -- $11,724,077 ===============================================================================================================================
* Transfers are calculated on the beginning of period value. ** Lorenz Re was a common stock at 4/30/13. (1) Realized gain (loss) on these securities is included in the realized gain (loss) from investments in the Statement of Operations. (2) Unrealized appreciation (depreciation) on these securities is included in the change in unrealized appreciation (depreciation) from investments in the Statement of Operations. Net change in unrealized appreciation of Level 3 investments still held and considered Level 3 at 10/31/13: $371,671. The following table presents additional information about valuation techniques and inputs used for investments that were measured at fair value and categorized as Level 3 at October 31, 2013:
Fair Value Valuation Unobservable Value/ 4/30/13 Technique(s) Input Range =============================================================================================================== Corporate Bonds & Notes $2,963,550 Third Party Vendor Broker $113.49-126.12 Quote per bond --------------------------------------------------------------------------------------------------------------- Corporate Bonds & Notes** $3,421,927 Market Yield premium 1.05% Comparables --------------------------------------------------------------------------------------------------------------- Preferred Stocks $5,338,600 Third Party Vendor Broker $1.046-110.86 Quote per share ---------------------------------------------------------------------------------------------------------------
** Fixed Income Trust Series: The significant unobservable input used in the fair value measurement of corporate bonds and notes is yield premium. Significant increases (decreases) in this input could result in a significantly higher (lower) fair value measurement. The accompanying notes are an integral part of these financial statements. 42 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 Statement of Assets and Liabilities | 10/31/13 (unaudited)
ASSETS: Investments in securities, at value (cost $231,203,004) $234,056,910 Cash 112,680 Foreign currencies, at value(cost $539,231) 537,651 Receivables -- Investment securities sold 772,051 Interest receivable 3,895,378 Reinvestment of distributions 54,932 Prepaid expenses 61,575 ---------------------------------------------------------------------------------- Total assets $239,491,177 ---------------------------------------------------------------------------------- LIABILITIES: Payables -- Notes payable $ 69,000,000 Investment securities purchased 1,385,490 Due to affiliates 170,387 Administration fee payable 54,828 Net unrealized depreciation on forward foreign currency contracts 111,516 Accrued expenses 115,375 ---------------------------------------------------------------------------------- Total liabilities $ 70,837,596 ---------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHAREOWNERS: Paid-in capital $194,038,775 Undistributed net investment income 1,283,844 Accumulated net realized loss on investments and foreign currency transactions (29,413,909) Net unrealized appreciation on investments 2,853,906 Net unrealized depreciation on forward foreign currency contracts and other assets and liabilities denominated in foreign currencies (109,035) ---------------------------------------------------------------------------------- Net assets applicable to common shareowners $168,653,581 ---------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE: No par value (unlimited number of shares authorized) Based on $168,653,581/8,302,343 common shares $ 20.31 ==================================================================================
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 43 Statement of Operations (unaudited) For the Six Months Ended 10/31/13
INVESTMENT INCOME: Interest $ 9,677,405 Dividends 68,486 Facility and other fees 114,157 ---------------------------------------------------------------------------------------- Total Investment income $ 9,860,048 ---------------------------------------------------------------------------------------- EXPENSES: Management fees $ 1,011,252 Administrative reimbursements 55,328 Transfer agent fees and expenses 2,468 Shareowner communication expense 4,450 Custodian fees 21,552 Registration fees 1,153 Professional fees 29,104 Printing expenses 9,786 Trustees' fees 3,312 Pricing fees 13,480 Miscellaneous 32,829 ---------------------------------------------------------------------------------------- Net operating expenses $ 1,184,714 ---------------------------------------------------------------------------------------- Interest expense $ 384,511 ---------------------------------------------------------------------------------------- Net operating expenses and interest expense $ 1,569,225 ---------------------------------------------------------------------------------------- Net investment income $ 8,290,823 ---------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized loss on: Investments $ (1,771,890) Forward foreign currency contracts and other assets and liabilities denominated in foreign currencies (207,481) $ (1,979,371) ---------------------------------------------------------------------------------------- Change in net unrealized appreciation (depreciation) on: Investments $ (1,571,467) Forward foreign currency contracts and other assets and liabilities denominated in foreign currencies (1,375) $ (1,572,842) ---------------------------------------------------------------------------------------- Net loss on investments $ (3,552,213) ---------------------------------------------------------------------------------------- Net increase in net assets resulting from operations $ 4,738,610 ========================================================================================
The accompanying notes are an integral part of these financial statements. 44 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 Statements of Changes in Net Assets
---------------------------------------------------------------------------------------- Six Months Ended 10/31/13 Year Ended (unaudited) 4/30/13 ---------------------------------------------------------------------------------------- FROM OPERATIONS: Net investment income $ 8,290,823 $ 18,526,936 Net realized gain (loss) on investments and foreign currency transactions (1,979,371) 334,053 Change in unrealized appreciation (depreciation) on investments and foreign currency transactions (1,572,842) 7,932,614 ---------------------------------------------------------------------------------------- Net increase in net assets resulting from operations $ 4,738,610 $ 26,793,603 ---------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREOWNERS: Net investment income ($0.96 and $2.04 per share, respectively) $ (7,963,782) $ (16,884,599) ---------------------------------------------------------------------------------------- Total distributions to common shareowners $ (7,963,782) $ (16,884,599) ---------------------------------------------------------------------------------------- FROM TRUST SHARE TRANSACTIONS: Reinvestment of distributions $ 232,667 $ 591,527 ---------------------------------------------------------------------------------------- Net increase in net assets from Trust share transactions $ 232,667 $ 591,527 ---------------------------------------------------------------------------------------- Net increase (decrease) in net assets $ (2,992,505) $ 10,500,531 NET ASSETS APPLICABLE TO COMMON SHAREOWNERS: Beginning of period 171,646,086 161,145,555 ---------------------------------------------------------------------------------------- End of period $168,653,581 $ 171,646,086 ---------------------------------------------------------------------------------------- Undistributed net investment income $ 1,283,844 $ 956,803 ========================================================================================
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 45 Statement of Cash Flows (unaudited) For the Six Months Ended October 31, 2013
Cash Flows From Operating Activities Net increase in net assets resulting from operations $ 4,738,610 ---------------------------------------------------------------------------------------------- Adjustments to reconcile Net Increase in net assets resulting from operations to Net Cash and Foreign Currency provided by Operating Activities Purchase of investments securities $ (313,485,480) Proceeds from disposition of investment securities 316,049,163 Net accretion and amortization of discount/premium on corporate debt obligations and short term investments (638,361) Decrease in receivable for investments sold 837,708 Decrease in Interest and foreign tax reclaim receivable 173,529 Increase in prepaid expenses (61,564) Increase in other assets 69,159 Decrease in accrued interest payable (3,700) Decrease in payable for investments purchased (2,140,526) Increase in due to affiliates (13,820) Increase in administrative fee payable (4,593) Decrease in accrued expenses (19,754) Decrease in due to custodian (1,380,263) Increase in reinvestment of distributions (11,339) Change in unrealized depreciation of investments 1,571,467 Change in unrealized depreciation of foreign currency transactions 1,375 Net realized loss from investments 1,771,890 Net realized loss of foreign currency contracts and other foreign denominated currencies 207,481 ---------------------------------------------------------------------------------------------- Net cash and foreign currency provided by operating activities $ 7,660,982 ---------------------------------------------------------------------------------------------- Cash flows Used Financing Activities: Reinvestment of distributions $ 232,667 Cash dividends paid to common shareholders (7,963,782) ---------------------------------------------------------------------------------------------- Net cash flow used in financing activities $ (7,731,115) ---------------------------------------------------------------------------------------------- Cash and Foreign Currency Beginning of the period $ 720,464 ---------------------------------------------------------------------------------------------- End of period $ 650,331 ============================================================================================== Cash Flow Information Cash paid for interest $ 446,861 ----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 46 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------ Six Months Year Year Ended Year Ended Ended Year Year 10/31/13 Ended 4/30/12 4/30/11 Ended Ended (unaudited) 4/30/13 (Consolidated) (Consolidated) 4/30/10 4/30/09 ------------------------------------------------------------------------------------------------------------------------------------ Per Share Operating Performance Net asset value, beginning of period $ 20.70 $ 19.51 $ 21.01 $ 20.17 $ 13.94 $ 22.02 ------------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from investment operations:(a) Net investment income $ 1.00 $ 2.24 $ 2.10 $ 2.03 $ 1.76 $ 2.10 Net realized and unrealized gain (loss) on investments and foreign currency transactions (0.43) 0.99 (1.64) 0.73 6.48 (7.67) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) from investment operations $ 0.57 $ 3.23 $ 0.46 $ 2.76 $ 8.24 $ (5.57) ------------------------------------------------------------------------------------------------------------------------------------ Distributions to common shareowners from: Net investment income (0.96) (2.04) (1.96) (1.92) (1.69) (2.47) Tax return of capital -- -- -- -- (0.32) (0.04) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net asset value $ (0.39) $ 1.19 $ (1.50) $ 0.84 $ 6.23 $ (8.08) ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period(b) $ 20.31 $ 20.70 $ 19.51 $ 21.01 $ 20.17 $ 13.94 ------------------------------------------------------------------------------------------------------------------------------------ Market value, end of period(b) $ 21.43 $ 21.82 $ 20.13 $ 21.95 $ 20.46 $ 13.23 ==================================================================================================================================== Total return at market value(c) 2.91% 19.98% 1.35% 17.95% 73.25% (23.11)% Ratios to average net assets Net operating expenses 1.41%(d) 1.49% 1.48% 1.62% 1.39% 1.38% Interest expense 0.45%(d) 0.48% 0.56% 0.58% 0.83% 1.14% Total expenses 1.86%(d) 1.97% 2.04% 2.20% 2.22% 2.52% Net investment income 9.85%(d) 11.26% 10.75% 10.02% 9.84% 12.27% Portfolio turnover 17% 34% 24% 30% 24% 25% Net assets, end of period (in thousands) $168,654 $171,646 $161,146 $172,881 $165,281 $ 114
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 47 Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------ Six Months Year Year Ended Year Ended Ended Year Year 10/31/13 Ended 4/30/12 4/30/11 Ended Ended (unaudited) 4/30/13 (Consolidated) (Consolidated) 4/30/10 4/30/09 ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets before waivers and reimbursements of expenses Net operating expenses 1.41%(d) 1.49% 1.48% 1.64% 1.61% 1.68% Interest expense 0.45%(d) 0.48% 0.56% 0.58% 0.83% 1.14% Net expenses 1.86%(d) 1.97% 2.04% 2.22% 2.44% 2.82% Net investment income 9.85%(d) 11.26% 10.75% 10.00% 9.62% 11.97% ====================================================================================================================================
(a) The per common share data presented above is based upon the average common shares outstanding for the periods presented. (b) Net asset value and market value are published in Barron's on Saturday, The Wall Street Journal on Monday and The New York Times on Monday and Saturday. (c) Total investment return is calculated assuming a purchase of common shares at the current market value on the first day and a sale at the current market value on the last day of the periods reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Past performance is not a guarantee of future results. (d) Annualized. The information above represents the audited operating performance data for a share of common stock outstanding, total investment return, ratios to average net assets and other supplemental data for the periods indicated. This information has been determined based upon financial information provided in the financial statements and market value data for the Trust's common shares. The accompanying notes are an integral part of these financial statements. 48 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 Notes to Financial Statements | 10/31/13 (unaudited) 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, an independent pricing service. If price information is not available from Loan Pricing Corporation, or if the price information is deemed to be unreliable, price information will be obtained from an alternative loan interest pricing service. If no reliable price quotes are available from either the primary or alternative pricing service, broker quotes will be solicited. 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 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 49 fixed income securities with remaining maturities of sixty days or less generally are valued at amortized cost. Shares of money market mutual funds are valued at such funds' net asset value. Trading in foreign securities is substantially completed each day at various times prior to the close of the 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 loan interests for which independent pricing services are unable to supply prices or for which market prices and/or quotations are not readily available or are considered to be unreliable are valued at the direction or with the approval of the Valuation Committee using fair value methods pursuant to procedures adopted by the Board of Trustees . The Valuation Committee is comprised of certain members of the Board of Trustees. Inputs used when applying fair value methods to value a security may include credit ratings, the financial condition of the company, current market conditions and comparable securities. The Trust may use fair value methods if it is determined that a significant event has occurred after the close of the exchange or market on which the security trades and prior to the determination of the Trust's net asset value. Examples of a significant event might include political or economic news, corporate restructurings, natural disasters, terrorist activity or trading halts. Thus, the valuation of the Trust's securities may differ significantly from exchange prices and such difference could be material. Pioneer Investment Management, Inc., (PIM), the Trust's investment adviser, is responsible for monitoring developments that may impact fair valued securities and for discussing and assessing fair values on an ongoing basis, and at least quarterly, with the Valuation Committee. At October 31, 2013, one security was valued using fair value methods (in addition to securities valued using prices supplied by independent pricing services), representing 2.0% of net assets. 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. 50 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 Gains and losses on sales of investments are calculated on the identified cost method for both financial reporting and federal income tax purposes. B. Foreign Currency Translation The books and records of the Trust are maintained in U.S. dollars. Amounts denominated in foreign currencies are translated into U.S. dollars using current exchange rates. Net realized gains and losses on foreign currency transactions, if any, represent, among other things, the net realized gains and losses on foreign currency contracts, disposition of foreign currencies and the difference between the amount of income accrued and the U.S. dollars actually received. Further, the effects of changes in foreign currency exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in the 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 5). 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. As of October 31, 2013, the Trust did not accrue any interest and penalties with respect to uncertain tax positions, which if applicable, would be recorded as an income tax expense in the Statement of Operations. Tax returns filed within the prior three years remain subject to examination by federal and state tax authorities. The amount and character of income and capital gain distributions to shareowners are determined in accordance with federal income tax rules, which may differ from U.S. generally accepted accounting principles. Distributions in excess of net investment income or net realized gains are temporary overdistributions for financial statement purposes resulting from Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 51 differences in the recognition or classification of income or distributions for financial statement and tax purposes. Capital accounts within the financial statements are adjusted for permanent book/tax differences to reflect tax character, but are not adjusted for temporary differences. The tax character of current year distributions payable to common and preferred shareowners will be determined at the end of the current taxable year. The tax character of distributions paid during the year ended April 30, 2013 was as follows:
---------------------------------------------------------------------------- 2013 ---------------------------------------------------------------------------- Distributions paid from: Ordinary income $16,884,599 ---------------------------------------------------------------------------- Total $16,884,599 ============================================================================
The following shows the components of distributable earnings (losses) on a federal income tax basis at April 30, 2013:
---------------------------------------------------------------------------- 2013 ---------------------------------------------------------------------------- Distributable earnings: Undistributed ordinary income $ 2,655,775 Capital loss carryforward (27,137,926) Unrealized appreciation 2,322,129 ---------------------------------------------------------------------------- Total $ (22,160,022) ============================================================================
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 difference 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. 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 52 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 securities and other obligations of any credit quality, including those that are rated below investment grade, or are unrated but are determined by the investment adviser to be of equivalent credit quality. Below investment grade securities are commonly referred to as "junk bonds" and are considered speculative with respect to the issuer's capacity to pay interest and repay principal. Below investment grade securities, including floating rate loans, involve greater risk of loss, are subject to greater price volatility, and are less liquid and more difficult to value, especially during periods of economic uncertainty or change, than higher rated debt securities. The Trust may invest in securities of issuers that are in default or that are in bankruptcy. The value of collateral, if any, securing a floating rate loan can decline or may be insufficient to meet the issuer's obligations or may be difficult to liquidate. No active trading market may exist for many floating rate loans, and many loans are subject to restrictions on resale. Any secondary market may be subject to irregular trading activity and extended settlement periods .Additionally, the Trust may invest in "event-linked" bonds, which sometimes are referred to as "insurance-linked" or "catastrophe" bonds. The return of principal and the payment of interest on event-linked bonds are contingent on the nonoccurrence of a pre-defined "trigger" event, such as a hurricane or an earthquake of a specific magnitude. In addition to the specified trigger events, event-linked bonds may expose the Trust to other risks, including but not limited to issuer (credit) default, adverse regulatory or jurisdictional interpretations and adverse tax consequences. The Trust's investments in certain foreign markets or countries with limited 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 sub-custodian of the Trust. PIM is responsible for determining that the value of the collateral remains at least equal to the repurchase price. G. Automatic Dividend Reinvestment Plan All common shareowners whose shares are registered in their own names automatically participate in the Automatic Dividend Reinvestment Plan (the Plan), under which participants receive all dividends and capital gain Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 53 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 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. 54 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 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 or the issuance of debt securities), (ii) the issuance of preferred stock or other similar preference securities, and/or (iii) any other means. For the period ended October 31, 2013, the net management fee was 0.85% of the Trust's average daily managed assets, which was equivalent to 1.20 % 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 October 31, 2013 $225,215 was payable to PIM related to management costs, administrative costs and certain other reimbursements and is included in "Due to affiliates" and "Administration fee" on the Statement of Assets and Liabilities. 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. Expense Offset Arrangement The Trust has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Trust's custodian expenses. For the six months ended October 31, 2013, the Trust expenses were not reduced under such arrangement. 5. Forward Foreign Currency Contracts At October 31, 2013, the Trust had entered into various forward foreign currency contracts that obligate the Trust to deliver or take delivery of currencies at specified future maturity dates. Alternatively, prior to the Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 55 settlement date of a forward foreign currency contract, the Trust may close out such contract by entering into an offsetting contract. The average value of contracts open during the six months ended October 31, 2013 was $8,387,958. As of October 31, 2013, outstanding forward foreign currency contracts were as follows:
-------------------------------------------------------------------------------------------- Net Contracts In Unrealized to Receive/ Exchange Settlement Appreciation/ Currency (Deliver) For USD Date Value (Depreciation) -------------------------------------------------------------------------------------------- EUR (European Dollar) (450,000) (595,143) 11/06/13 $ (611,486) $ (16,343) EUR (European Dollar) (3,540,000) (4,772,554) 11/06/13 (4,810,358) (37,804) EUR (European Dollar) (800,000) (1,104,432) 4/24/14 (1,087,412) 17,021 EUR (European Dollar) (1,000,000) (1,306,588) 4/25/14 (1,359,268) (52,680) GBP (Pound Sterling) (460,000) (710,338) 11/15/13 (738,191) (27,853) NGN (Nigerian Naira) 28,000,000 167,174 12/05/13 174,138 6,964 PHP (Philippine Peso) 25,000,000 579,777 12/27/13 578,956 (821) -------------------------------------------------------------------------------------------- Total $(111,516) ============================================================================================
6. Assets and Liabilities Offsetting Financial instruments subject to an enforceable master netting agreement have been offset on the Statements of Assets and Liabilities. The following charts show gross assets and liabilities as of October 31, 2013. Assets:
------------------------------------------------------------------------------------------------ Gross Gross Amounts Amounts Net Not Offset in the Offset Amounts of Statement of in the Assets Assets and Liabilities Gross Statement Presented -------------------------- Amounts of of In the Cash Recognized Assets and Assets and Financial Collateral Net Description Assets Liabilities Liabilities Instruments Received Amount ------------------------------------------------------------------------------------------------ Forward Foreign Currency Contracts $ 23,985 $ (23,985) $ -- $ -- $ -- $ -- ------------------------------------------------------------------------------------------------ Repurchase agreements $2,140,000 $ -- $ 2,140,000 $ (2,140,000)* $ -- $ -- ------------------------------------------------------------------------------------------------ $2,163,985 $ (23,985) $ 2,140,000 $ (2,140,000)* $ -- $ -- ------------------------------------------------------------------------------------------------
* The actual collateral pledged is more than the amount reported due to over-collateralization. 56 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 Liabilities:
------------------------------------------------------------------------------------------------ Gross Gross Amounts Amounts Net Not Offset in the Offset Amounts of Statement of in the Assets Assets and Liabilities Gross Statement Presented -------------------------- Amounts of of In the Cash Recognized Assets and Assets and Financial Collateral Net Description Assets Liabilities Liabilities Instruments Received Amount ------------------------------------------------------------------------------------------------ Forward Foreign Currency Contracts $135,501 $ (23,985) $111,516 $ -- $ -- $111,516 ------------------------------------------------------------------------------------------------ Repurchase agreements $ -- $ -- $ -- $ -- $ -- $ -- ------------------------------------------------------------------------------------------------ $135,501 $ (23,985) $111,516 $ -- $ -- $111,516 ------------------------------------------------------------------------------------------------
7. Loan Agreement Effective February 1, 2013, the Trust extended the maturity of its existing Revolving Credit Facility (the Credit Agreement) with the Bank of Nova Scotia; the amount of the facility remains at $75 million. At October 31, 2013, the Trust had a borrowing outstanding under the Credit Agreement totaling $69,000,000. The interest rate charged at October 31, 2013 was 1.078%. During the six months ended October 31, 2013, the average daily balance was $69,000,000 at a weighted average interest rate of 1.089%. With respect to the loan, interest expense of $384,511 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 -------------------------------------------------------------------------------- October 31, 2013 $69,000,000 $3,444 ================================================================================
8. Unfunded Loan Commitments As of October 31, 2013, the Trust had no unfunded loan commitments. The Trust had the following partially funded loan commitment outstanding as of October 31, 2013:
-------------------------------------------------------------------------------- Unrealized Borrower Par Cost Value Appreciation -------------------------------------------------------------------------------- Rural / Metro Corp. $294,319 $215,763 $217,791 $2,028 --------------------------------------------------------------------------------
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 57 9. Trust Shares There are an unlimited number of common shares of beneficial interest authorized. Transactions in common shares of beneficial interest for the periods ended October 31, 2013 and April 30, 2013 were as follows:
-------------------------------------------------------------------------------- 10/31/13 4/30/13 -------------------------------------------------------------------------------- Shares outstanding at beginning of period 8,290,790 8,261,236 Reinvestment of distributions 11,553 29,554 -------------------------------------------------------------------------------- Shares outstanding at end of period 8,302,343 8,290,790 ================================================================================
10. Additional Disclosures about Derivative Instruments and Hedging Activities: Values of derivative instruments as of October 31, 2013 were as follows:
---------------------------------------------------------------------------------- Derivatives Not Accounted for as Asset Derivatives 2013 Liabilities Derivatives 2013 Hedging Instruments ------------------------ ------------------------------ Under Accounting Statement of Assets Statement of Assets Standards Codification and Liabilities and Liabilities (ASC) 815 Location Value Location Value ---------------------------------------------------------------------------------- Forward Foreign Net unrealized $ -- Net unrealized $111,516 Currency Contracts appreciation on depreciation on forward foreign forward foreign currency contracts currency contracts ---------------------------------------------------------------------------------- Total $ -- $111,516 ----------------------------------------------------------------------------------
The effect of derivative instruments on the Statement of Operations for the six months ended October 31, 2013 was as follows:
------------------------------------------------------------------------------------------------- Change in Derivatives Not Realized Unrealized Accounted for as Gain or Appreciation or Hedging Instruments (Loss) on (Depreciation) Under Accounting Location of Gain or (Loss) Derivatives on Derivatives Standards Codification on Derivatives Recognized Recognized Recognized (ASC) 815 in Income in Income in Income ------------------------------------------------------------------------------------------------- Forward Foreign Net realized gain (loss) on $(199,072) Currency contracts forward foreign currency contracts and other assets and liabilities denominated in foreign currencies ------------------------------------------------------------------------------------------------- Forward Foreign Change in net unrealized $(5,471) Currency Contracts appreciation (depreciation) on forward foreign currency contracts and other assets and liabilities denominated in foreign currencies -------------------------------------------------------------------------------------------------
58 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 11. Subsequent Events The Board of Trustees of the Trust declared on November 5, 2013 a dividend from undistributed net investment income of $0.16 per common share payable November 29, 2013, to shareowners of record on November 18, 2013. ADDITIONAL INFORMATION (unaudited) During the period, there have been no material changes in the Trust's investment objective or fundamental policies that have not been approved by the shareowners. There have been no changes in the Trust's charter or By-Laws that would delay or prevent a change in control of the Trust which has not been approved by the shareowners. During the period, there have been no changes in the principal risk factors associated with investment in the Trust. There were no changes in the persons who are primarily responsible for the day-to-day management of the Trust's portfolio. Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Trust may purchase, from time to time, its common shares in the open market. Results of Shareholder Meeting (unaudited) At the annual meeting of shareowners held on September 24, 2013, shareowners of Pioneer Diversified High Income Trust were asked to consider the proposals described below. A report of the total votes cast by the Trust's shareholders follows: Proposal 1 -- To elect Class III Trustee.
-------------------------------------------------------------------------------- Nominee For Withheld -------------------------------------------------------------------------------- Daniel K. Kingsbury 7,388,514.000 234,965.000 David R. Bock 7,387,228.000 236,251.000
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 59 Trustees, Officers and Service Providers Trustees Officers Thomas J. Perna, Chairman John F. Cogan, Jr., President* David R. Bock Daniel K. Kingsbury, Executive Benjamin M. Friedman Vice President Margaret B.W. Graham Mark E. Bradley, Treasurer** Daniel K. Kingsbury Christopher J. Kelley, Secretary Marguerite A. Piret Investment Adviser and Administrator Pioneer Investment Management, Inc. Custodian and Sub-Administrator Brown Brothers Harriman & Co. Legal Counsel Bingham McCutchen LLP Transfer Agent Pioneer Investment Management Shareholder Services, Inc Shareowner Services and Transfer Agent American Stock Transfer & Trust Company Proxy Voting Policies and Procedures of the Fund are available without charge, upon request, by calling our toll free number (1-800-225-6292). Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is publicly available to shareowners at us.pioneerinvestments.com. This information is also available on the Securities and Exchange Commission's web site at http://www.sec.gov. * Chief Executive Officer of the Trust ** Chief Financial and Accounting Officer of the Trust 60 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 How to Contact Pioneer We are pleased to offer a variety of convenient ways for you to contact us for assistance or information. You can call American Stock Transfer & Trust Company (AST) for: -------------------------------------------------------------------------------- Account Information 1-800-710-0935 Or write to AST: -------------------------------------------------------------------------------- For Write to General inquiries, lost dividend checks, American Stock change of address, lost stock certificates, Transfer & Trust stock transfer Operations Center 6201 15(th) Ave. Brooklyn, NY 11219 Dividend reinvestment plan (DRIP) American Stock Transfer & Trust Wall Street Station P.O. Box 922 New York, NY 10269-0560 Website www.amstock.com For additional information, please contact your investment advisor or visit our web site us.pioneerinvestments.com. The Trust files a complete schedule of investments with the Securities and Exchange Commission for the first and third quarters for each fiscal year on Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's web site at www.sec.gov. The filed form may also be viewed and copied at the Commission's Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330. [LOGO] PIONEER Investments(R) Pioneer Investment Management, Inc. 60 State Street Boston, MA 02109 us.pioneerinvestments.com Securities offered through Pioneer Funds Distributor, Inc. 60 State Street, Boston, MA 02109 Underwriter of Pioneer Mutual Funds, Member SIPC (C) 2013 Pioneer Investments 21398-06-1213 ITEM 2. CODE OF ETHICS. (a) Disclose whether, as of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, explain why it has not done so. The registrant has adopted, as of the end of the period covered by this report, a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer and controller. (b) For purposes of this Item, the term "code of ethics" means written standards that are reasonably designed to deter wrongdoing and to promote: (1) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; (2) Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant; (3) Compliance with applicable governmental laws, rules, and regulations; (4) The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and (5) Accountability for adherence to the code. (c) The registrant must briefly describe the nature of any amendment, during the period covered by the report, to a provision of its code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item. The registrant must file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless the registrant has elected to satisfy paragraph (f) of this Item by posting its code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by undertaking to provide its code of ethics to any person without charge, upon request, pursuant to paragraph (f)(3) of this Item. The registrant has made no amendments to the code of ethics during the period covered by this report. (d) If the registrant has, during the period covered by the report, granted a waiver, including an implicit waiver, from a provision of the code of ethics to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this Item, the registrant must briefly describe the nature of the waiver, the name of the person to whom the waiver was granted, and the date of the waiver. Not applicable. (e) If the registrant intends to satisfy the disclosure requirement under paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from, a provision of its code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item by posting such information on its Internet website, disclose the registrant's Internet address and such intention. Not applicable. (f) The registrant must: (1) File with the Commission, pursuant to Item 12(a)(1), a copy of its code of ethics that applies to the registrant's principal executive officer,principal financial officer, principal accounting officer or controller, or persons performing similar functions, as an exhibit to its annual report on this Form N-CSR (see attachment); (2) Post the text of such code of ethics on its Internet website and disclose, in its most recent report on this Form N-CSR, its Internet address and the fact that it has posted such code of ethics on its Internet website; or (3) Undertake in its most recent report on this Form N-CSR to provide to any person without charge, upon request, a copy of such code of ethics and explain the manner in which such request may be made. See Item 10(2) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. (a) (1) Disclose that the registrant's board of trustees has determined that the registrant either: (i) Has at least one audit committee financial expert serving on its audit committee; or (ii) Does not have an audit committee financial expert serving on its audit committee. The registrant's Board of Trustees has determined that the registrant has at least one audit committee financial expert. (2) If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is "independent." In order to be considered "independent" for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the board of trustees, or any other board committee: (i) Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or (ii) Be an "interested person" of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)). Ms. Marguerite A. Piret, an independent trustee, is such an audit committee financial expert. (3) If the registrant provides the disclosure required by paragraph (a)(1) (ii) of this Item, it must explain why it does not have an audit committee financial expert. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. N/A (b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A (c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A (d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A (e) (1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. PIONEER FUNDS APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES PROVIDED BY THE INDEPENDENT AUDITOR SECTION I - POLICY PURPOSE AND APPLICABILITY The Pioneer Funds recognize the importance of maintaining the independence of their outside auditors. Maintaining independence is a shared responsibility involving Pioneer Investment Management, Inc ("PIM"), the audit committee and the independent auditors. The Funds recognize that a Fund's independent auditors: 1) possess knowledge of the Funds, 2) are able to incorporate certain services into the scope of the audit, thereby avoiding redundant work, cost and disruption of Fund personnel and processes, and 3) have expertise that has value to the Funds. As a result, there are situations where it is desirable to use the Fund's independent auditors for services in addition to the annual audit and where the potential for conflicts of interests are minimal. Consequently, this policy, which is intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and procedures to be followed by the Funds when retaining the independent audit firm to perform audit, audit-related tax and other services under those circumstances, while also maintaining independence. Approval of a service in accordance with this policy for a Fund shall also constitute approval for any other Fund whose pre-approval is required pursuant to Rule 210.2-01(c)(7)(ii). In addition to the procedures set forth in this policy, any non-audit services that may be provided consistently with Rule 210.2-01 may be approved by the Audit Committee itself and any pre-approval that may be waived in accordance with Rule 210.2-01(c)(7)(i)(C) is hereby waived. Selection of a Fund's independent auditors and their compensation shall be determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY ---------------- -------------------------------- ------------------------------------------------- SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES CATEGORY ---------------- -------------------------------- ------------------------------------------------- I. AUDIT Services that are directly o Accounting research assistance SERVICES related to performing the o SEC consultation, registration independent audit of the Funds statements, and reporting o Tax accrual related matters o Implementation of new accounting standards o Compliance letters (e.g. rating agency letters) o Regulatory reviews and assistance regarding financial matters o Semi-annual reviews (if requested) o Comfort letters for closed end offerings ---------------- -------------------------------- ------------------------------------------------- II. Services which are not o AICPA attest and agreed-upon procedures AUDIT-RELATED prohibited under Rule o Technology control assessments SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments and are related extensions of o Enterprise security architecture the audit services support the assessment audit, or use the knowledge/expertise gained from the audit procedures as a foundation to complete the project. In most cases, if the Audit-Related Services are not performed by the Audit firm, the scope of the Audit Services would likely increase. The Services are typically well-defined and governed by accounting professional standards (AICPA, SEC, etc.) ---------------- -------------------------------- ------------------------------------------------- ------------------------------------- ------------------------------------ AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE REPORTING POLICY ------------------------------------- ------------------------------------ o "One-time" pre-approval o A summary of all such for the audit period for all services and related fees pre-approved specific service reported at each regularly subcategories. Approval of the scheduled Audit Committee independent auditors as meeting. auditors for a Fund shall constitute pre approval for these services. ------------------------------------- ------------------------------------ o "One-time" pre-approval o A summary of all such for the fund fiscal year within services and related fees a specified dollar limit (including comparison to for all pre-approved specified dollar limits) specific service subcategories reported quarterly. o Specific approval is needed to exceed the pre-approved dollar limit for these services (see general Audit Committee approval policy below for details on obtaining specific approvals) o Specific approval is needed to use the Fund's auditors for Audit-Related Services not denoted as "pre-approved", or to add a specific service subcategory as "pre-approved" ------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED ----------------------- --------------------------- ----------------------------------------------- SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES DESCRIPTION ----------------------- --------------------------- ----------------------------------------------- III. TAX SERVICES Services which are not o Tax planning and support prohibited by the Rule, o Tax controversy assistance if an officer of the Fund o Tax compliance, tax returns, excise determines that using the tax returns and support Fund's auditor to provide o Tax opinions these services creates significant synergy in the form of efficiency, minimized disruption, or the ability to maintain a desired level of confidentiality. ----------------------- --------------------------- ----------------------------------------------- ------------------------------------- ------------------------- AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE REPORTING POLICY ------------------------------------- ------------------------- ------------------------------------- ------------------------- o "One-time" pre-approval o A summary of for the fund fiscal year all such services and within a specified dollar limit related fees (including comparison to specified dollar limits) reported quarterly. o Specific approval is needed to exceed the pre-approved dollar limits for these services (see general Audit Committee approval policy below for details on obtaining specific approvals) o Specific approval is needed to use the Fund's auditors for tax services not denoted as pre-approved, or to add a specific service subcategory as "pre-approved" ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED ----------------------- --------------------------- ----------------------------------------------- SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES DESCRIPTION ----------------------- --------------------------- ----------------------------------------------- IV. OTHER SERVICES Services which are not o Business Risk Management support prohibited by the Rule, o Other control and regulatory A. SYNERGISTIC, if an officer of the Fund compliance projects UNIQUE QUALIFICATIONS determines that using the Fund's auditor to provide these services creates significant synergy in the form of efficiency, minimized disruption, the ability to maintain a desired level of confidentiality, or where the Fund's auditors posses unique or superior qualifications to provide these services, resulting in superior value and results for the Fund. ----------------------- --------------------------- ----------------------------------------------- --------------------------------------- ------------------------ AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE REPORTING POLICY ------------------------------------- -------------------------- o "One-time" pre-approval o A summary of for the fund fiscal year within all such services and a specified dollar limit related fees (including comparison to specified dollar limits) reported quarterly. o Specific approval is needed to exceed the pre-approved dollar limits for these services (see general Audit Committee approval policy below for details on obtaining specific approvals) o Specific approval is needed to use the Fund's auditors for "Synergistic" or "Unique Qualifications" Other Services not denoted as pre-approved to the left, or to add a specific service subcategory as "pre-approved" ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED ----------------------- ------------------------- ----------------------------------------------- SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES DESCRIPTION ----------------------- ------------------------- ----------------------------------------------- PROHIBITED SERVICES Services which result 1. Bookkeeping or other services in the auditors losing related to the accounting records or independence status financial statements of the audit under the Rule. client* 2. Financial information systems design and implementation* 3. Appraisal or valuation services, fairness* opinions, or contribution-in-kind reports 4. Actuarial services (i.e., setting actuarial reserves versus actuarial audit work)* 5. Internal audit outsourcing services* 6. Management functions or human resources 7. Broker or dealer, investment advisor, or investment banking services 8. Legal services and expert services unrelated to the audit 9. Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible ----------------------- ------------------------- ----------------------------------------------- ------------------------------------------- ------------------------------ AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE REPORTING POLICY ------------------------------------------- ------------------------------ o These services are not to be o A summary of all performed with the exception of the(*) services and related services that may be permitted fees reported at each if they would not be subject to audit regularly scheduled procedures at the audit client (as Audit Committee meeting defined in rule 2-01(f)(4)) level will serve as continual the firm providing the service. confirmation that has not provided any restricted services. ------------------------------------------- ------------------------------
-------------------------------------------------------------------------------- GENERAL AUDIT COMMITTEE APPROVAL POLICY: o For all projects, the officers of the Funds and the Fund's auditors will each make an assessment to determine that any proposed projects will not impair independence. o Potential services will be classified into the four non-restricted service categories and the "Approval of Audit, Audit-Related, Tax and Other Services" Policy above will be applied. Any services outside the specific pre-approved service subcategories set forth above must be specifically approved by the Audit Committee. o At least quarterly, the Audit Committee shall review a report summarizing the services by service category, including fees, provided by the Audit firm as set forth in the above policy. -------------------------------------------------------------------------------- (2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. N/A (f) If greater than 50 percent, disclose the percentage of hours expended on the principal accountants engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. N/A (g) Disclose the aggregate non-audit fees billed by the registrants accountant for services rendered to the registrant, and rendered to the registrants investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant. N/A (h) Disclose whether the registrants audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrants investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. The Funds audit committee of the Board of Trustees has considered whether the provision of non-audit services that were rendered to the Affiliates (as defined) that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS (a) If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act (17 CFR 240.10A-3), state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has such a committee, however designated, identify each committee member. If the entire board of directors is acting as the registrant's audit committee as specified in Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state. N/A (b) If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption from the listing standards for audit committees. N/A ITEM 6. SCHEDULE OF INVESTMENTS. File Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period as set forth in 210.1212 of Regulation S-X [17 CFR 210.12-12], unless the schedule is included as part of the report to shareholders filed under Item 1 of this Form. Included in Item 1 ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. A closed-end management investment company that is filing an annual report on this Form N-CSR must, unless it invests exclusively in non-voting securities, describe the policies and procedures that it uses to determine how to vote proxies relating to portfolio securities, including the procedures that the company uses when a vote presents a conflict between the interests of its shareholders, on the one hand, and those of the company's investment adviser; principal underwriter; or any affiliated person (as defined in Section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules thereunder) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the company's investment adviser, or any other third party, that the company uses, or that are used on the company's behalf, to determine how to vote proxies relating to portfolio securities. Not applicable to semi-annual reporting ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. (a) If the registrant is a closed-end management investment company that is filing an annual report on this Form N-CSR,provide the following information: (1) State the name, title, and length of service of the person or persons employed by or associated with the registrant or an investment adviser of the registrant who are primarily responsible for the day-to-day management of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio Manager's business experience during the past 5 years. Not applicable to semi-annual reporting ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. (a) If the registrant is a closed-end management investment company, in the following tabular format, provide the information specified in paragraph (b) of this Item with respect to any purchase made by or on behalf of the registrant or any affiliated purchaser, as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares or other units of any class of the registrant's equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. 781). Not applicable to semi-annual reporting ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Describe any material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15)) of Schedule 14A (17 CFR 240.14a-101), or this Item. There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant's board of directors since the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A) in its definitive proxy statement, or this item. ITEM 11. CONTROLS AND PROCEDURES. (a) Disclose the conclusions of the registrant's principal executive and principal financials officers, or persons performing similar functions, regarding the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)). The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures are effective based on the evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. (b) Disclose any change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that occured during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. There were no significant changes in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. The registrant's principal executive officer and principal financial officer, however, voluntarily are reporting the following information: In August of 2006 the registrant's investment adviser enhanced its internal procedures for reporting performance information required to be included in prospectuses. Those enhancements involved additional internal controls over the appropriateness of performance data generated for this purpose. Such enhancements were made following an internal review which identified prospectuses relating to certain classes of shares of a limited number of registrants where, inadvertently, performance information not reflecting the deduction of applicable sales charges was included. Those prospectuses were revised, and the revised prospectuses were distributed to shareholders. ITEM 12. EXHIBITS. (a) File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit. (2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) , exactly as set forth below: Filed herewith. SIGNATURES [See General Instruction F] Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Pioneer Diversified High Income Trust By (Signature and Title)* /s/ John F. Cogan, Jr. John F. Cogan, Jr, President Date December 30, 2013 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 December 30, 2013 By (Signature and Title)* /s/ Mark Bradley Mark Bradley, Treasurer & Chief Accounting & Financial Officer Date December 30, 2013 * Print the name and title of each signing officer under his or her signature.
EX-99 2 cert.txt CERTIFICATIONS -------------- I, John F. Cogan, Jr., certify that: 1. I have reviewed this report on Form N-CSR of Pioneer Diversified High Income Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 30, 2013 /s/ John F. Cogan, Jr. John F. Cogan, Jr. President CERTIFICATIONS -------------- I, Mark Bradley, certify that: 1. I have reviewed this report on Form N-CSR of Pioneer Diversified High Income Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 30, 2013 /s/ Mark Bradley Mark Bradley Treasurer & Chief Accounting & Financial Officer SECTION 906 CERTIFICATION Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of Pioneer Diversified High Income Trust (the "Trust"), hereby certifies, to the best of his knowledge, that the Trust's Report on Form N-CSR for the period ended October 31, 2013 (the "Report") fully complies with the requirements of Section 13 (a) or 15 (d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust. Dated: December 30, 2013 /s/ John F. Cogan, Jr. John F. Cogan, Jr. President This certification is being furnished solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Report or a separate disclosure document. A signed original of this written statement required by section 906 has been provided to the Fund and will be retained by the Fund and furnished to the SEC or its staff upon request. SECTION 906 CERTIFICATION Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of Pioneer Diversified High Income Trust (the "Trust"), hereby certifies, to the best of his knowledge, that the Trust's Report on Form N-CSR for the period ended October 31, 2013 (the "Report") fully complies with the requirements of Section 13 (a) or 15 (d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust. Dated: December 30, 2013 /s/ Mark Bradley Mark Bradley Treasurer & Chief Accounting & Financial Officer This certification is being furnished solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Report or a separate disclosure document. A signed original of this written statement required by section 906 has been provided to the Fund and will be retained by the Fund and furnished to the SEC or its staff upon request. EX-99 3 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! 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