0001388126-15-000001.txt : 20151230 0001388126-15-000001.hdr.sgml : 20151230 20151230140200 ACCESSION NUMBER: 0001388126-15-000001 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20151031 FILED AS OF DATE: 20151230 DATE AS OF CHANGE: 20151230 EFFECTIVENESS DATE: 20151230 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: 151313124 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, 2017 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, 2015 through October 31, 2015 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, 2015 -------------------------------------------------------------------------------- Ticker Symbol: HNW [LOGO] PIONEER Investments(R) visit us: us.pioneerinvestments.com Table of Contents President's Letter 2 Portfolio Management Discussion 4 Portfolio Summary 11 Prices and Distributions 12 Performance Update 13 Schedule of Investments 14 Financial Statements 45 Financial Highlights 49 Notes to Financial Statements 51 Approval of Investment Advisory Agreement 66 Trustees, Officers and Service Providers 70
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 1 President's Letter Dear Shareholder, Through the first three quarters of 2015, global markets experienced pockets of higher-than-average volatility due to significant cross-currents from different geographic regions. All year, investors focused on the Federal Reserve System's (the Fed's) deliberations over when to begin normalizing interest rates. However, while there were signs of gradual economic improvement in the U.S., economies abroad increasingly diverged. In June, for example, investors grew concerned about the debt crisis in Greece. That news, in turn, was followed by evidence of an economic slowdown in China, which only served to exacerbate existing worries about growth trends in the emerging markets, a segment of the global economy already being negatively impacted by slumping commodity prices, including the price of crude oil, which has been in near-steady decline for almost a year. Through September 30, 2015, the pockets of height ened market volatility alluded to above had resulted in the Standard & Poor's 500 Index turning in a negative (-5.27%) return over the first nine months of the year. However, the S&P 500 recovered nicely in October, returning 8.43% for the month, which boosted the index's year-to-date return into positive territory, at 2.71%. Despite the headwinds still vexing the global economy, our longer-term view of the U.S. economy has remained positive. Economic conditions in the U.S. have generally been constructive, based largely on improvements in employment statistics and an uptick in the housing sector, which has aided the consumer side of the economy, where household spending has been rising modestly. U.S. consumers also stand to benefit, potentially, from lower energy prices as the winter weather approaches. We continue to believe the U.S. economy remains on a slow, steady growth trend, and that it is unlikely to be disrupted by a slow pace of interest-rate normalization by the Fed. Pioneer Investments believes that investors in today's environment can potentially benefit from the consistent and disciplined investment approach we have used since our founding in 1928. We focus on identifying value across global markets using proprietary research, careful risk management, and a long-term perspective. Our ongoing goal is to produce compelling returns consistent with the stated objectives of our investment products, and with our shareowners' expectations. We believe our shareowners can benefit from the experience and tenure of our investment teams as well as the insights generated from our extensive research process. 2 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 As always, and particularly during times of market uncertainty, we encourage you to work with your financial advisor to develop an overall investment plan that addresses both your short- and long-term goals, and to implement such a plan in a disciplined manner. We greatly appreciate your trust in us in the past and look forward to continuing to serve you in the future. Sincerely, /s/ Lisa M. Jones Lisa M. Jones President and CEO Pioneer Investment Management USA Inc. November 2, 2015 Any information in this shareowner report regarding market or economic trends or the factors influencing the Fund'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 | 10/31/15 3 Portfolio Management Discussion | 10/31/15 A series of developments contributed to growing investor concerns about weakening global economic growth trends during the six-month period ended October 31, 2015, which, in turn, undercut the performance of credit-sensitive investments. In the following interview, Andrew Feltus, Charles Melchreit, Jonathan Sharkey and Chin Liu discuss the factors that affected the performance of Pioneer Diversified High Income Trust during the six-month period. Mr. Feltus, Director of High Yield and Bank Loans, a senior vice president and a portfolio manager at Pioneer; Mr. Melchreit, Director of Investment-Grade Management, a senior vice president and a portfolio manager at Pioneer; Mr. Sharkey, a senior vice president and a portfolio manager at Pioneer; and Mr. Liu, a vice president and a portfolio manager at Pioneer, are responsible for the day-to-day management of the Trust. Note: Mr. Liu became a portfolio manager on the Trust in September 2015. Q How did the Trust perform during the six-month period ended October 31, 2015? A Pioneer Diversified High Income Trust returned -2.83% at net asset value and -7.75% at market price during the six-month period ended October 31, 2015. During the same six-month period, the Trust's custom benchmark returned -1.92%. The custom benchmark is based on equal weights of the Bank of America Merrill Lynch (BofA ML) Global High Yield and Emerging Markets Plus (GHY and EMP) Index, which returned -2.38% at net asset value during the six-month period, and the Credit Suisse (CS) Leveraged Loan Index, which returned -1.47%. 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 six-month period, the Trust's use of leverage was the biggest detractor from benchmark-relative performance. During the same six-month period, the average return (at market price) of the 31 closed end funds in Lipper's High Current Yield Closed End Funds Category (which may or may not be leveraged) was -7.94%, and the average return (at market price) of the 22 closed end funds in Lipper's Loan Participation Closed End Funds Category (which may or may not be leveraged) was -7.43%. The shares of the Trust were selling at a 10.1% discount to net asset value at the end of the period on October 31, 2015. On October 31, 2015, the 30-day SEC yield on the Trust's shares was 7.08%*. * 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 | 10/31/15 Q How would you describe the investment environment during the six-month period ended October 31, 2015? A High-yield, credit-sensitive bonds tended to drop in price during the period as investors wrestled with the risks associated with three principal developments: a renewed debt crisis in Greece; slowing economic growth trends in China; and declines in the prices of oil and other commodities. The combination of events exacerbated growing market worries about potential weakening in the global economy. High-yield corporate bonds struggled during much of the period, although they did rally in the final month after the U.S. Federal Reserve System (the Fed) opted not to raise short-term interest rates in September. While the delay by the Fed to raise rates helped the performance of higher-yielding bonds, it did little to help the performance of floating-rate securities, the yields of which move up and down with interest rates. Meanwhile, insurance-linked securities turned in solid performance during the period, as a mild storm season led to a relatively small amount of insurance claim filings. Q Could you review your principal investment strategies in managing the Trust's portfolio during the six-month period ended October 31, 2015? A During the period, we maintained an emphasis on credit-linked debt in the Trust's portfolio, while continuing to reduce the allocation to high-yield corporate bonds and placing a greater focus on floating-rate instruments, including bank loans and insurance-linked securities. Over the longer term, we think creating a more balanced weighting in the portfolio between higher-yielding, fixed-coupon debt and floating-rate securities is a proper investment approach. In fact, as 2015 progressed and the Fed made clear that it was contemplating tightening monetary policy by raising the influential Federal funds rate, the strategic migration of the portfolio to a more balanced approach seemed to make increasing sense, even though the Fed did not actually raise rates before the end of the six-month period. At period end, roughly 48% of the Trust's total investment portfolio was allocated to floating-rate instruments, with 52% allocated to fixed-rate investments. With regard to specific asset classes, more than 64% of the Trust's total investment portfolio was held in corporate bonds and notes as of October 31, 2015, while senior secured bank loans, at 23% of the Trust's total investment portfolio, represented the portfolio's second-largest asset allocation. Within the allocation to corporate bonds and notes was a 17% position in insurance-linked securities, which included quota-share instruments and event-linked securities. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 5 Q What were the primary reasons for the Trust's underperformance of its customized benchmark during the six-month period ended October 31, 2015? A The main reason for the Trust's underperformance of its benchmark during the period was the use of leverage, or borrowed funds. The use of leverage increases the Trust's risk and has the effect of exaggerating the size of the high-yield market's moves on the portfolio. In down markets, when securities are underperforming and bond prices are falling, as was the case during the six-month period, the use of leverage can and will negatively impact the Trust's benchmark-relative performance. With regard to specific asset classes, U.S. high-yield (29% weighting) was the worst-performing area of the Trust's portfolio during the period, primarily due to security selection results in energy, metals and mining, and industrials, as all of those sectors struggled for a number of reasons, including declining oil prices and oversupply due to concerns about global economic growth. The Trust's domestic high-yield portfolio did recover somewhat, however, during the aforementioned market rally over the final month of the period. In addition, the portfolio's allocation to emerging markets debt detracted slightly from relative returns, even though emerging markets debt outperformed U.S. high yield during the period. Declining oil and energy prices took their toll on emerging markets corporates as the period progressed, given that the energy sector represents roughly 40% of all emerging markets corporate bond issues. The Trust's exposure to the emerging markets stood at less than 10% as of period end. Individual securities held in the portfolio that detracted from the Trust's relative performance during the period included bank loans to Fieldwood Energy, an energy exploration-and-production (E&P) company, and Essar Steel. Performance from the Trust's allocation to insurance-linked securities was solid during the period, but poor results from one insurance-linked holding did hurt relative returns, as MultiCat Mexico - a catastrophe bond sponsored by the Mexican government - suffered likely principal loss resulting from the landfall of Hurricane Patricia on Mexico's Pacific coast. Within domestic high yield, the biggest underperformers in the Trust's portfolio were E&P companies Penn Virginia and Halcon Resources. Q Which of your strategies or individual investments made positive contri- butions to the Trust's benchmark-relative returns during the six-month period ended October 31, 2015? A The portfolio's allocation to insurance-linked securities made the biggest positive contribution to relative returns during the period, even after allowing for the negative performance hit the Trust experienced from the MultiCat Mexico bond holding mentioned earlier. Historically, 6 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 insurance-linked securities have had little-to-no correlation to the credit-sensitive sectors, and the asset class once again proved to be a good buffer against credit-market volatility over the six-month period, as claims received by property-and-casualty insurers were relatively light. Other factors contributing to the Trust's relative performance during the period included security selection results among the portfolio's floating-rate bank-loan holdings, the Trust's minimal foreign currency exposure, and an allocation to European high-yield bonds. The bank-loan asset class, in general, benefited from persistent investor demand during the early part the period, backed by heavy new issuance of collateralized loan obligations (CLOs). Also aiding the performance of bank loans during the period was the expectation that the Fed, eventually, would begin to increase interest rates, a move that has the potential to drive up the prices of existing bank loans selling at discounts, at the same time that loan coupons would rise. European high-yield bonds, which often have less direct exposure to price trends of oil and other commodities, tended to hold up well during the period, especially when compared with the performance of domestic high-yield securities. Finally, the Trust's exposure to non-U.S. dollar (USD) currencies is at its lowest level for quite some time, and the positioning aided relative returns as the USD outperformed most developed and emerging markets currencies over the six-month period. As for individual positions, high-yield securities in the portfolio that contributed positively to the Trust's relative results during the period included bonds issued by Title Max, a U.S. corporation that provides automobile loans, and by two Russian wireless communication providers: MTS of Russia and VimpelCom. Bank loans held in the Trust's portfolio that contributed to relative performance during the period included loans to Virtual Radiological, a corporation that provides remote diagnostic imaging services to health care providers, and loans to Appvion, a diversified paper-and-printing company. Also, several insurance-linked positions in the Trust's portfolio had positive effects on relative returns, including insurance-linked securities issued by Exeter Segregated Account, and by Pangaea Reinsurance. Q How did the level of leverage in the Trust change over the six-month period ended October 31, 2015? A At the end of the six-month period, on October 31, 2015, 31.1% of the Trust's total managed assets were financed by leverage (or borrowed funds), compared with 29.5% of the Trust's total managed assets financed by leverage at the start of the period on May 1, 2015. While the amount of Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 7 borrowed funds employed by the Trust during the period did not increase or decrease, the percentage increase was due to a decrease in the values of securities in which the Trust had invested. Q Did the Trust have any investments in derivative securities during the six- month period ended October 31, 2015? If so, did those investments have any effect on the Trust's performance? A Yes, we invested in some forward currency transactions as part of our overall strategy to emphasize the U.S. dollar in the Trust's portfolio, relative to other currencies. The strategy was highly successful, and the Trust's use of the forward currency transactions had a positive impact on benchmark-relative performance as the U.S. dollar appreciated against most foreign currencies over the course of the period. Q What were major factors affecting the Trust's dividend, or yield, during the six-month period ended October 31, 2015? A The Trust's dividend** was stable during the six-month period, although shareholders should continue to be mindful that, given the current low- interest-rate environment, we often have no choice but to reinvest assets at lower interest rates as older portfolio investments either reach maturity, are called back by issuers, or are sold. In addition, the Trust has drawn on accumulated net investment income in paying its dividend in recent periods, but these reserves will be depleted over time. At the same time, however, we think any Fed action to raise short-term interest rates has the longer-term potential to increase interest income paid by the floating-rate securities held in the Trust's portfolio. Q Do you have any closing thoughts for investors? A The Fed, as of the date of this report, seemed poised to begin raising short-term interest rates in the near future, given that the domestic economy appeared to be strengthening and the labor market was on the cusp of meeting the Fed's target of a 5% or lower unemployment rate. Any monetary tightening by the Fed has the potential to have a positive effect on floating-rate investments, whose coupons rise and fall with interest-rate movements. Most bank loans were selling at a discount as of period end, and an increase in short-term rates would likely attract more investors to the bank-loan market. That, in turn, could lead to price appreciation. Meanwhile, the market for insurance-linked securities has shown some signs of price stabilization, while coupon rates also appear to be firming. As of period end, the Trust has some - albeit limited - duration exposure in its portfolio, but we have maintained a short-duration position relative to the benchmark. (Duration is a measure of the sensitivity of the price, or ** Dividends are not guaranteed. 8 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 the value of principal, of a fixed-income investment to a change in interest rates, expressed as a number of years.) Most of the duration in the Trust's portfolio comes from its high-yield bond positions, however, and those securities tend to have more spread compared with other long-duration securities, and so they could fare better when rates are rising, a factor that could mitigate any negative, duration-related effects of a Fed interest-rate increase on the Trust's performance. (Credit spreads are commonly defined as the differences in yield between Treasuries and other types of fixed-income securities with similar maturities.) In managing the Trust, we seek to maintain a balanced portfolio with significant exposures to floating-rate debt such as bank loans and insurance-linked securities, as well as to fixed-rate corporate bonds and notes. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 9 Please refer to the Schedule of Investments on pages 14-44 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 a significant amount of its total assets in illiquid securities. Illiquid securities may be difficult to dispose of at a price reflective of their value at the times when the Trust believes it is desirable to do so and the market price of illiquid securities is generally more volatile than that of more liquid securities. Illiquid securities 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 for investments purchased with the proceeds of leverage will not be sufficient to cover the cost of the leverage, which may adversely affect the return for shareholders. The Trust is required to maintain certain regulatory and other asset coverage requirements in connection with its use of leverage. In order to maintain required asset coverage levels, the Trust may be required to reduce the amount of leverage employed by the Trust, alter the composition of its investment portfolio or take other actions at what might be inopportune times in the market. Such actions could reduce the net earnings or returns to shareowners over time, which is likely to result in a decrease in the market value of the Trust's shares. Risks of investing in the Trust are discussed in greater detail in the Trust's original offering prospectus and in shareowner reports issued from time to time. These risks may increase share price volatility. Any information in this shareholder report regarding market or economic trends or the factors influencing the Fund'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. 10 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 Portfolio Summary | 10/31/15 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 64.4% Senior Secured Floating Rate Loan Interests 22.9% U.S. Government And Agency Obligations 4.4% Convertible Bonds & Notes 2.0% Collateralized Mortgage Obligations 2.0% Preferred Stocks 1.2% Asset Backed Securities 1.2% Sovereign Debt Obligations 0.9% Commercial Paper 0.5% Convertible Preferred Stocks 0.3% Common Stocks 0.2%
* Includes investments in Insurance Linked Securities totaling 17.0% of total investment portfolio. 10 Largest Holdings -------------------------------------------------------------------------------- (As a percentage of total long-term holdings)**
1. Fixed Income Trust, Series 2013-A, 0.00%, 10/15/97 (144A) 2.14% --------------------------------------------------------------------------------------------------------- 2. Pangaea Re Segregated Account (Kane SAC, Ltd.), Series 2015-1, Variable Rate Notes, 2/1/19 1.73 --------------------------------------------------------------------------------------------------------- 3. U.S. Treasury Notes, 0.09%, 7/31/16 1.52 --------------------------------------------------------------------------------------------------------- 4. Exeter Segregated Account (Kane SAC, Ltd.), Variable Rate Notes, 1/7/16 1.51 --------------------------------------------------------------------------------------------------------- 5. U.S. Treasury Notes, 0.073%, 10/31/16 1.50 --------------------------------------------------------------------------------------------------------- 6. U.S. Treasury Notes, 0.089%, 4/30/16 1.44 --------------------------------------------------------------------------------------------------------- 7. Lahinch Segregated Account (Kane SAC, Ltd.), Variable Rate Notes, 6/15/16 1.01 --------------------------------------------------------------------------------------------------------- 8. PI-6 Segregated Account (Kane SAC, Ltd.), Series C, Variable Rate Notes, 7/7/16 1.01 --------------------------------------------------------------------------------------------------------- 9. Queen Street X Re, Ltd., 5.811%, 6/8/18 (144A) (Cat Bond) 1.00 --------------------------------------------------------------------------------------------------------- 10. Gator Re, Ltd., 6.746%, 1/9/17 (144A) (Cat Bond) 0.93 ---------------------------------------------------------------------------------------------------------
** This list excludes temporary cash investments and derivative instruments. The portfolio is actively managed, and current holdings may be different. The holdings listed should not be considered recommendations to buy or sell any security listed. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 11 Prices and Distributions | 10/31/15 Market Value per Common Share --------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 10/31/15 4/30/15 -------------------------------------------------------------------------------- Market Value $15.27 $17.42 -------------------------------------------------------------------------------- (Discount) (10.1)% (5.6)% --------------------------------------------------------------------------------
Net Asset Value per Common Share --------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 10/31/15 4/30/15 -------------------------------------------------------------------------------- Net Asset Value $16.98 $18.39 --------------------------------------------------------------------------------
Distributions per Common Share* --------------------------------------------------------------------------------
-------------------------------------------------------------------------------- Net Investment Short-Term Long-Term Income Capital Gains Capital Gains -------------------------------------------------------------------------------- 5/1/15 - 10/31/15 $0.81 $ -- $ -- --------------------------------------------------------------------------------
The data shown above represents past performance, which is no guarantee of future results. * The amount of distributions made to shareholders during the period was in excess of the net investment income earned by the Trust during the period. The Trust has accumulated undistributed net investment income which is part of the Trust's NAV. A portion of this accumulated net investment income was distributed to shareowners during the period. A decrease in distributions may have a negative effect on the market value of the Trust's shares. 12 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 Performance Update | 10/31/15 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, 2015) -------------------------------------------------------------------------------- 50% BofA ML Global HY and Net EMP Index Asset 50% CS Value Market Leveraged Period (NAV) Price Loan Index -------------------------------------------------------------------------------- Life-of-Trust (5/30/07) 7.29% 5.37% 5.27% 5 Years 6.54 4.13 4.87 1 Year -2.63 -16.84 -1.40 --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL] Value of $10,000 Investment
Pioneer Diversified 50% BofA ML Global HY and EMP Index High Income Trust 50% CS Leveraged Loan Index 5/07 $10,000 $10,000 10/07 $ 8,661 $10,070 10/08 $ 6,149 $ 7,712 10/09 $ 9,362 $10,619 10/10 $12,687 $12,151 10/11 $13,259 $12,577 10/12 $15,197 $14,022 10/13 $17,562 $15,003 10/14 $18,676 $15,628 10/15 $15,532 $15,410
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent month-end performance results. Current performance may be lower or higher than the performance data quoted. Performance data shown represents past performance. Past performance is no guarantee of future results. Investment return and market price will fluctuate, and your shares may trade below NAV due to such factors as interest rate changes and the perceived credit quality of borrowers. Total investment return does not reflect broker sales charges or commissions. All performance is for common shares of the Trust. Shares of closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and, once issued, shares of closed-end funds are bought and sold in the open market through a stock exchange and frequently trade at prices lower than their NAV. NAV per common share is total assets less total liabilities, which include preferred shares or borrowings, as applicable, divided by the number of common shares outstanding. When NAV is lower than market price, dividends are assumed to be reinvested at the greater of NAV or 95% of the market price. When NAV is higher, dividends are assumed to be reinvested at prices obtained through open-market purchases under the Trust's dividend reinvestment plan. The performance table and graph do not reflect the deduction of fees and taxes that a shareowner would pay on Trust distributions or the sale of Trust shares. Had these fees and taxes been reflected, performance would have been lower. The 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. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 13 Schedule of Investments | 10/31/15 (unaudited)
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- ASSET BACKED SECURITIES -- 1.8% of Net Assets 656,321(a) Aircraft Finance Trust, Series 1999-1A, Class A1, 0.676%, 5/15/24 (144A) $ 175,566 200,000 Ascentium Equipment Receivables LLC, Series 2015-1A, Class E, 5.92%, 6/12/23 (144A) 199,119 81,268 Continental Airlines Pass Through Trust, Series 1998-1, Class B, 6.748%, 3/15/17 84,365 250,000 Delta Air Lines Pass Through Trust, Series 2010-1, Class B, 6.375%, 1/2/16 (144A) 251,875 290,000(b) GMAT Trust, Series 2013-1A, Class M, 5.0%, 11/25/43 (144A) 276,813 135,842 Monty Parent Issuer LLC, Series 2013-LTR1, Class B, 4.25%, 11/20/28 (144A) 135,842 923,666 Nations Equipment Finance Funding I LLC, Series 2013-1A, Class C, 5.5%, 5/20/21 (144A) 927,850 400,000(c) VOLT XXXVII LLC, Series 2015-NP11, Class A2, 4.375%, 7/25/45 (144A) 395,717 28,154 Westgate Resorts LLC, Series 2012-2A, Class C, 9.0%, 1/20/25 (144A) 28,274 ----------------------------------------------------------------------------------------------- TOTAL ASSET BACKED SECURITIES (Cost $2,694,761) $ 2,475,421 ----------------------------------------------------------------------------------------------- COLLATERALIZED MORTGAGE OBLIGATIONS -- 2.8% of Net Assets 375,000(a) BAMLL Commercial Mortgage Securities Trust, Series 2014-INLD, Class F, 2.736%, 12/15/29 (144A) $ 346,974 150,000(b) Bear Stearns Commercial Mortgage Securities Trust, Series 2005-PWR7, Class B, 5.214%, 2/11/41 149,867 260,000(a) CFCRE Mortgage Trust, Series 2015-RUM, Class E, 4.796%, 7/15/30 (144A) 260,272 500,000(b) Citigroup Commercial Mortgage Trust, Series 2014-GC23, Class E, 3.208%, 7/10/47 (144A) 325,961 300,000(b) COMM Mortgage Trust, Series 2007-C9, Class H, 5.796%, 12/10/49 (144A) 269,948 250,000(b) COMM Mortgage Trust, Series 2012-CR2, Class E, 4.855%, 8/15/45 (144A) 241,205 500,000(a) CSMC Trust, Series 2015-SAND, Class F, 4.896%, 8/15/30 (144A) 500,076 115,766(a) EQTY Mezzanine Trust, Series 2014-INMZ, Class M, 4.944%, 5/8/31 (144A) 114,652 170,000(a) EQTY Mortgage Trust, Series 2014-INNS, Class E, 3.645%, 5/8/31 (144A) 168,294 76,836 Global Mortgage Securitization, Ltd., Series 2004-A, Class B1, 5.25%, 11/25/32 (144A) 59,756 142,983 Global Mortgage Securitization, Ltd., Series 2005-A, Class B3, 5.25%, 4/25/32 105,988
The accompanying notes are an integral part of these financial statements. 14 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- COLLATERALIZED MORTGAGE OBLIGATIONS -- (continued) 137,938 Homeowner Assistance Program Reverse Mortgage Loan Trust, Series 2013-RM1, Class A, 4.0%, 5/26/53 (144A) $ 135,738 150,000 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class AJ, 5.623%, 5/12/45 147,679 150,600(a) JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-FL2A, Class G, 0.556%, 11/15/18 (144A) 144,123 556,571(b) LB-UBS Commercial Mortgage Trust, Series 2006-C1, Class AJ, 5.276%, 2/15/41 558,006 400,000(b) Wachovia Bank Commercial Mortgage Trust, Series 2007-C34, Class AJ, 5.947%, 5/15/46 412,914 ----------------------------------------------------------------------------------------------- COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $3,982,275) $ 3,941,453 ----------------------------------------------------------------------------------------------- SENIOR SECURED FLOATING RATE LOAN INTERESTS -- 32.2% of Net Assets*(a) AUTOMOBILES & COMPONENTS -- 2.9% Auto Parts & Equipment -- 1.5% 496,241 Crowne Group LLC, First Lien Initial Term Loan, 6.0%, 9/30/20 $ 494,226 185,525 Federal-Mogul Corp., Tranche C Term Loan, 4.75%, 4/15/21 170,103 162,519 Key Safety Systems, Inc., Initial Term Loan, 4.75%, 8/29/21 161,096 253,390 MPG Holdco I, Inc., Initial Term Loan, 3.75%, 10/20/21 252,462 179,545 TI Group Automotive Systems LLC, Initial US Term Loan, 4.5%, 6/30/22 178,423 901,604 Tower Automotive Holdings USA LLC, Refinancing Term Loan, 4.0%, 4/23/20 895,593 --------------- $ 2,151,903 ----------------------------------------------------------------------------------------------- Automobile Manufacturers -- 1.0% 1,436,250 Chrysler Group LLC, Term Loan B, 3.5%, 5/24/17 $ 1,435,499 ----------------------------------------------------------------------------------------------- Tires & Rubber -- 0.4% 479,167 Goodyear Tire & Rubber Co., Second Lien Term Loan, 3.75%, 4/30/19 $ 480,856 --------------- Total Automobiles & Components $ 4,068,258 ----------------------------------------------------------------------------------------------- CAPITAL GOODS -- 3.8% Aerospace & Defense -- 0.3% 126,314 TASC, Inc., First Lien Term Loan, 7.0%, 5/22/20 $ 126,787 233,229 Vencore, Inc. (fka SI Organization, Inc.), Initial First Lien Term Loan, 5.75%, 11/23/19 232,573
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 15 Schedule of Investments | 10/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- Aerospace & Defense -- (continued) 157,600 WP CPP Holdings LLC, Second Lien Term Loan B-1, 8.75%, 4/30/21 $ 151,296 --------------- $ 510,656 ----------------------------------------------------------------------------------------------- Building Products -- 1.3% 915,196 Builders FirstSource, Inc., Term Loan B, 6.0%, 7/29/22 $ 911,907 500,000 Quanex Building Products Corp., Initial Term Loan, 5.25%, 11/2/22 494,062 398,224 Unifrax Holding Co., New Term B Dollar Loan, 4.25%, 11/28/18 395,072 --------------- $ 1,801,041 ----------------------------------------------------------------------------------------------- Construction Machinery & Heavy Trucks -- 0.3% 390,000 Navistar, Inc., Tranche B Term Loan, 6.5%, 8/7/20 $ 378,788 ----------------------------------------------------------------------------------------------- Electrical Components & Equipment -- 0.4% 518,191 WireCo WorldGroup, Inc., Term Loan, 6.0%, 2/15/17 $ 517,543 ----------------------------------------------------------------------------------------------- Industrial Conglomerates -- 0.8% 495,915 Doosan Infracore International, Inc. (Doosan Holdings Europe, Ltd.), Tranche B Term Loan, 4.5%, 5/28/21 $ 497,568 103,660 Faenza Acquisition GmbH (CeramTec Acquisition Corp.), Dollar Term B-3 Loan, 4.25%, 8/30/20 103,822 342,497 Faenza Acquisition GmbH (CeramTec Acquisition Corp.), Initial Dollar Term B-1 Loan, 4.25%, 8/30/20 343,032 35,208 Faenza Acquisition GmbH (CeramTec Acquisition Corp.), Initial Dollar Term B-2 Loan, 4.25%, 8/30/20 35,263 89,694 Filtration Group Corp., Initial Second Lien Term Loan, 8.25%, 11/22/21 89,620 10,659 Kleopatra Holdings 2 SCA, Initial German Borrower Dollar Term Loan, 5.0%, 4/28/20 10,685 24,941 Kleopatra Holdings 2 SCA, Initial US Borrower Dollar Term Loan, 5.0%, 4/28/20 25,004 --------------- $ 1,104,994 ----------------------------------------------------------------------------------------------- Industrial Machinery -- 0.3% Xerium Technologies, Inc., New Term Loan, 5.75%, 5/17/19 $ 474,703 ----------------------------------------------------------------------------------------------- Trading Companies & Distributors -- 0.4% 305,106 AWAS Finance Luxembourg 2012 SA, Term Loan, 3.5%, 7/16/18 $ 304,534 284,593 WESCO Distribution, Inc., Tranche B-1 Loan, 3.75%, 12/12/19 284,860 --------------- $ 589,394 --------------- Total Capital Goods $ 5,377,119 -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 16 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- COMMERCIAL & PROFESSIONAL SERVICES -- 0.8% Environmental & Facilities Services -- 0.3% 500,000 Granite Acquisition, Inc., Second Lien Term B Loan, 8.25%, 12/19/22 $ 462,500 ----------------------------------------------------------------------------------------------- Research & Consulting Services -- 0.3% 338,143 Wyle Services Corp., Term Loan, 5.0%, 5/23/21 $ 337,365 ----------------------------------------------------------------------------------------------- Security & Alarm Services -- 0.2% 120,230 Monitronics International, Inc., 2013 Term Loan B, 4.25%, 3/23/18 $ 119,689 127,569 Protection One, Inc., 2012 Term Loan, 5.0%, 7/1/21 127,043 --------------- $ 246,732 --------------- Total Commercial & Professional Services $ 1,046,597 ----------------------------------------------------------------------------------------------- CONSUMER DURABLES & APPAREL -- 0.3% Home Furnishings -- 0.1% 73,155 Tempur Pedic International, Inc., New Term B Loan, 3.5%, 3/18/20 $ 73,323 ----------------------------------------------------------------------------------------------- Leisure Products -- 0.2% 300,000 Bombardier Recreational Products, Inc., Term B Loan, 3.75%, 1/30/19 $ 300,187 --------------- Total Consumer Durables & Apparel $ 373,510 ----------------------------------------------------------------------------------------------- CONSUMER SERVICES -- 1.5% Casinos & Gaming -- 0.2% 297,750 Scientific Games International, Inc., Initial Term B-2 Loan, 6.0%, 10/1/21 $ 291,562 ----------------------------------------------------------------------------------------------- Leisure Facilities -- 0.1% 131,127 Fitness International LLC, Term B Loan, 5.5%, 7/1/20 $ 124,844 ----------------------------------------------------------------------------------------------- Restaurants -- 0.7% 400,493 Landry's, Inc. (fka Landry's Restaurants, Inc.), Term Loan B, 4.0%, 4/24/18 $ 401,430 535,575 NPC International, Inc., Term Loan, 4.0%, 12/28/18 530,219 --------------- $ 931,649 ----------------------------------------------------------------------------------------------- Specialized Consumer Services -- 0.5% 750,000 KC MergerSub, Inc., First Lien Initial Term Loan, 6.0%, 8/12/22 $ 742,500 --------------- Total Consumer Services $ 2,090,555 ----------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIALS -- 0.3% Consumer Finance -- 0.1% 215,168 Trans Union LLC, Term B-2 Loan, 3.5%, 4/9/21 $ 212,855 ----------------------------------------------------------------------------------------------- Specialized Finance -- 0.2% 248,750 DBRS, Ltd., Initial Term Loan, 6.25%, 3/4/22 $ 248,750 --------------- Total Diversified Financials $ 461,605 -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 17 Schedule of Investments | 10/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- ENERGY -- 1.0% Coal & Consumable Fuels -- 0.1% 352,500 PT Bumi Resources Tbk, Term Loan, 18.0%, 11/7/15 $ 114,563 ----------------------------------------------------------------------------------------------- Integrated Oil & Gas -- 0.3% 498,750 TerraForm AP Acquisition Holdings LLC, Term Loan, 5.0%, 6/27/22 $ 488,775 ----------------------------------------------------------------------------------------------- Oil & Gas Drilling -- 0.3% 444,680 Jonah Energy LLC, Initial Second Lien Term Loan, 7.5%, 5/12/21 $ 350,185 38,138(d) Offshore Group Investment, Ltd. (Vantage Delaware Holdings LLC), Second Lien Term Loan, 5.75%, 3/28/19 11,378 --------------- $ 361,563 ----------------------------------------------------------------------------------------------- Oil & Gas Equipment & Services -- 0.3% 544,223 FR Dixie Acquisition Corp., Term Loan, 5.75%, 12/18/20 $ 408,167 --------------- Total Energy $ 1,373,068 ----------------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING -- 0.3% Food Distributors -- 0.3% 400,000 AdvancePierre Foods, Inc., Second Lien Term Loan, 9.5%, 10/10/17 $ 397,000 --------------- Total Food & Staples Retailing $ 397,000 ----------------------------------------------------------------------------------------------- FOOD, BEVERAGE & TOBACCO -- 0.3% Packaged Foods & Meats -- 0.3% 476,386 Dole Food Co., Inc., Tranche B Term Loan, 4.5%, 11/1/18 $ 477,081 --------------- Total Food, Beverage & Tobacco $ 477,081 ----------------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SERVICES -- 3.5% Health Care Equipment -- 0.5% 500,000 Concentra, Inc., Initial Second Lien Term Loan, 9.0%, 6/1/23 $ 502,500 235,926 Kinetic Concepts, Inc., Dollar E-1 Term Loan, 4.5%, 5/4/18 236,220 --------------- $ 738,720 ----------------------------------------------------------------------------------------------- Health Care Facilities -- 1.5% 264,429 CHS/Community Health Systems, Inc., Incremental 2018 Term F Loan, 3.575%, 12/31/18 $ 263,726 248,160 CHS/Community Health Systems, Inc., Incremental 2019 Term G Loan, 3.75%, 12/31/19 247,423 456,604 CHS/Community Health Systems, Inc., Incremental 2021 Term H Loan, 4.0%, 1/27/21 456,002 194,080 HCA, Inc., Tranche B-5 Term Loan, 2.94%, 3/31/17 194,268
The accompanying notes are an integral part of these financial statements. 18 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- Health Care Facilities -- (continued) 317,734 Kindred Healthcare, Inc., Incremental Term Loan, 4.25%, 4/9/21 $ 317,334 298,473 Steward Health Care System LLC, Term Loan, 6.75%, 4/10/20 296,138 402,326 Surgical Care Affiliates, Inc., Initial Term Loan, 4.25%, 3/17/22 402,580 --------------- $ 2,177,471 ----------------------------------------------------------------------------------------------- Health Care Services -- 0.9% 208,835 Bioscrip, Inc., Delayed Term Loan, 6.5%, 7/31/20 $ 192,128 348,058 Bioscrip, Inc., Initial Term B Loan, 6.5%, 7/31/20 320,213 350,000 HC Group Holdings III, Inc., Initial First Lien Term Loan, 6.0%, 4/7/22 351,459 201,925 National Mentor Holdings, Inc., Tranche B Term Loan, 4.25%, 1/31/21 198,896 277,085 Valitas Health Services, Inc., Term Loan B, 6.0%, 6/2/17 221,668 --------------- $ 1,284,364 ----------------------------------------------------------------------------------------------- Health Care Supplies -- 0.2% 249,375 Alere, Inc., Term Loan B, 4.25%, 6/20/22 $ 249,842 ----------------------------------------------------------------------------------------------- Health Care Technology -- 0.4% 237,043 IMS Health, Inc., Tranche B-1 Dollar Term Loan, 3.5%, 3/17/21 $ 236,283 335,022 Medical Card System, Inc., Term Loan, 12.0%, 3/17/17 321,621 --------------- $ 557,904 --------------- Total Health Care Equipment & Services $ 5,008,301 ----------------------------------------------------------------------------------------------- HOUSEHOLD & PERSONAL PRODUCTS -- 0.8% Household Products -- 0.6% 443,333 Dollar Tree, Inc., Term B-1 Loan, 3.5%, 7/6/22 $ 444,639 374,192 SRAM LLC, First Lien Term Loan, 4.0%, 4/10/20 353,612 --------------- $ 798,251 ----------------------------------------------------------------------------------------------- Personal Products -- 0.2% 100,000 Atrium Innovations, Inc., Second Lien Term Loan, 7.75%, 8/13/21 $ 87,667 215,357 NBTY, Inc., B-2 Term Loan, 3.5%, 10/1/17 213,930 --------------- $ 301,597 --------------- Total Household & Personal Products $ 1,099,848 -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 19 Schedule of Investments | 10/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- INSURANCE -- 2.6% Life & Health Insurance -- 0.4% 138,889 Integro, Ltd., Delayed Draw Term Loan, 5.75%, 10/31/22 $ 134,722 361,111 Integro, Ltd., Term Loan, 5.75%, 10/31/22 350,278 --------------- $ 485,000 ----------------------------------------------------------------------------------------------- Multi-Line Insurance -- 0.1% 167,750 Alliant Holdings I LLC, Term Loan B, 4.5%, 8/12/22 $ 166,230 ----------------------------------------------------------------------------------------------- Property & Casualty Insurance -- 2.1% 746,149 Confie Seguros Holding II Co., First Lien Term Loan B, 5.75%, 11/9/18 $ 748,014 593,765 Confie Seguros Holding II Co., Second Lien Term Loan, 10.25%, 5/8/19 587,827 746,250 Hyperion Insurance Group, Ltd., Term B Loan, 5.5%, 4/29/22 749,360 938,758 USI, Inc., Initial Term Loan, 4.25%, 12/27/19 930,544 --------------- $ 3,015,745 --------------- Total Insurance $ 3,666,975 ----------------------------------------------------------------------------------------------- MATERIALS -- 1.8% Diversified Chemicals -- 0.2% 275,000 Univar USA, Inc., Initial Dollar Term Loan, 4.25%, 7/1/22 $ 271,071 ----------------------------------------------------------------------------------------------- Diversified Metals & Mining -- 0.0%+ 75,256(d)(j) PT Bakrie & Brothers Tbk, Facility Term Loan B, 8.0%, 11/25/14 $ 24,458 ----------------------------------------------------------------------------------------------- Metal & Glass Containers -- 0.8% 391,021 Tank Holding Corp., Initial Term Loan, 6.5%, 3/16/22 $ 388,870 748,125 Tekni-Plex, Inc., USD Term Loan, 4.5%, 6/1/22 745,787 --------------- $ 1,134,657 ----------------------------------------------------------------------------------------------- Paper Packaging -- 0.3% 490,684 Caraustar Industries, Inc., Incremental Term Loan, 8.0%, 5/1/19 $ 490,889 ----------------------------------------------------------------------------------------------- Paper Products -- 0.3% 287,111 Appvion, Inc., Term Commitment, 5.75%, 6/28/19 $ 272,038 79,339 Exopack Holdings SA, USD Term Loan, 4.5%, 5/8/19 79,289 --------------- $ 351,327 ----------------------------------------------------------------------------------------------- Specialty Chemicals -- 0.0%+ 23,810 Chemtura Corp., New Term Loan, 3.5%, 8/29/16 $ 23,790 -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 20 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- Steel -- 0.2% 495,000 Essar Steel Algoma, Inc., Initial Term Loan, 7.5%, 8/16/19 $ 272,869 --------------- Total Materials $ 2,569,061 ----------------------------------------------------------------------------------------------- MEDIA -- 3.7% Advertising -- 0.6% 945,654 Affinion Group, Inc., Tranche B Term Loan, 6.75%, 4/30/18 $ 910,586 ----------------------------------------------------------------------------------------------- Broadcasting -- 1.0% 291,667 Hubbard Radio LLC, Term Loan, 4.25%, 5/27/22 $ 286,745 315,000 Learfield Communications, Inc., Initial Second Lien Term Loan, 8.75%, 10/8/21 313,228 297,000 MediArena Acquisition BV (fka AP NMT Acquisition BV), First Lien Dollar Term B Loan, 6.75%, 8/13/21 286,358 459,811 Univision Communications, Inc., Replacement First Lien Term Loan, 4.0%, 3/1/20 457,001 --------------- $ 1,343,332 ----------------------------------------------------------------------------------------------- Cable & Satellite -- 0.2% 310,709 WideOpenWest Finance LLC, Replacement Term B Loan, 4.5%, 4/1/19 $ 306,793 ----------------------------------------------------------------------------------------------- Movies & Entertainment -- 0.0%+ 45,328 Cinedigm Digital Funding I LLC, Term Loan, 3.75%, 2/28/18 $ 45,271 ----------------------------------------------------------------------------------------------- Publishing -- 1.9% 511,252 Cengage Learning Acquisitions, Inc., Term Loan, 7.0%, 3/31/20 $ 509,015 324,188 Houghton Mifflin Holdings, Inc., Term Loan, 4.0%, 5/28/21 321,756 742,481 Interactive Data Corp., Term Loan, 4.75%, 5/2/21 743,252 130,228 Lee Enterprises, Inc., First Lien Term Loan, 7.25%, 3/31/19 128,678 933,375 McGraw-Hill School Education Holdings LLC, Term B Loan, 6.25%, 12/18/19 934,250 --------------- $ 2,636,951 --------------- Total Media $ 5,242,933 ----------------------------------------------------------------------------------------------- PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 2.1% Biotechnology -- 0.7% 1,047,375 Lantheus Medical Imaging, Inc., Term Loan, 7.0%, 6/30/22 $ 979,296 ----------------------------------------------------------------------------------------------- Life Sciences Tools & Services -- 1.0% 1,000,000 Albany Molecular Research, Inc., Term Loan B, 5.75%, 7/16/21 $ 1,001,250
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 21 Schedule of Investments | 10/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- Life Sciences Tools & Services -- (continued) 427,759 Catalent Pharma Solutions, Inc., Dollar Term Loan, 4.25%, 5/20/21 $ 427,855 --------------- $ 1,429,105 ----------------------------------------------------------------------------------------------- Pharmaceuticals -- 0.4% 550,000 Concordia Healthcare Corp., Initial Dollar Term Loan, 4.25%, 10/21/21 $ 530,406 --------------- Total Pharmaceuticals, Biotechnology & Life Sciences $ 2,938,807 ----------------------------------------------------------------------------------------------- REAL ESTATE -- 0.2% Retail REIT -- 0.2% 276,683 DTZ U.S. Borrower LLC, First Lien Initial Term Loan, 4.25%, 11/4/21 $ 274,565 --------------- Total Real Estate $ 274,565 ----------------------------------------------------------------------------------------------- RETAILING -- 1.0% Automotive Retail -- 0.5% 656,250 CWGS Group LLC, Term Loan, 5.25%, 2/20/20 $ 656,660 ----------------------------------------------------------------------------------------------- Computer & Electronics Retail -- 0.4% 718,579 Targus Group International, Inc., Term Loan, 14.75%, 5/24/16 $ 538,934 ----------------------------------------------------------------------------------------------- Specialty Stores -- 0.1% 157,692 Petsmart, Inc., Tranche B-1 Loan, 4.25%, 3/11/22 $ 157,853 --------------- Total Retailing $ 1,353,447 ----------------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.3% Semiconductor Equipment -- 0.3% 471,611 VAT Lux II S.a.r.l., Term Loan, 4.25%, 2/11/21 $ 471,218 --------------- Total Semiconductors & Semiconductor Equipment $ 471,218 ----------------------------------------------------------------------------------------------- SOFTWARE & SERVICES -- 2.0% Application Software -- 0.9% 497,533 Epiq Systems, Inc., Term Loan, 4.5%, 8/27/20 $ 495,046 210,670 Expert Global Solutions, Inc., Advance First Lien Term Loan B, 8.5%, 4/3/18 209,221 500,000 Vertafore, Inc., Second Lien Term Loan, 9.75%, 10/27/17 501,750 --------------- $ 1,206,017 ----------------------------------------------------------------------------------------------- IT Consulting & Other Services -- 1.1% 246,875 Evergreen Skills Lux S.a r.l., First Lien Initial Term Loan, 5.75%, 4/28/21 $ 206,449 625,000 Sitel Worldwide Corp., First Lien Term B-1 Loan, 6.5%, 9/18/21 617,969
The accompanying notes are an integral part of these financial statements. 22 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- IT Consulting & Other Services -- (continued) 772,637 SunGard Data Systems, Inc., Tranche C Term Loan, 3.945%, 2/28/17 $ 773,309 --------------- $ 1,597,727 --------------- Total Software & Services $ 2,803,744 ----------------------------------------------------------------------------------------------- TECHNOLOGY HARDWARE & EQUIPMENT -- 0.4% Communications Equipment -- 0.1% 89,329 CommScope, Inc., Tranche 4 Term Loan, 3.25%, 1/14/18 $ 88,980 ----------------------------------------------------------------------------------------------- Electronic Components -- 0.3% 457,700 Mirion Technologies (Finance) LLC (Mirion Technologies, Inc.), First Lien Initial Term Loan, 5.75%, 3/31/22 $ 458,501 --------------- Total Technology Hardware & Equipment $ 547,481 ----------------------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES -- 0.9% Integrated Telecommunication Services -- 0.6% 497,500 GCI Holdings, Inc., Term B Loan, 4.0%, 2/2/22 $ 499,987 500,000 Securus Technologies Holdings, Inc., Term Loan B2, 5.25%, 4/30/20 390,000 --------------- $ 889,987 ----------------------------------------------------------------------------------------------- Wireless Telecommunication Services -- 0.3% 333,333 Syniverse Holdings, Inc., Initial Term Loan, 4.0%, 4/23/19 $ 305,209 166,667 Syniverse Holdings, Inc., Tranche B Term Loan, 4.0%, 4/23/19 152,604 --------------- $ 457,813 --------------- Total Telecommunication Services $ 1,347,800 ----------------------------------------------------------------------------------------------- TRANSPORTATION -- 1.2% Air Freight & Logistics -- 0.1% 190,613 Ozburn-Hessey Holding Co., LLC, Term Loan, 6.75%, 5/23/19 $ 189,779 ----------------------------------------------------------------------------------------------- Marine -- 0.8% 622,129 Commercial Barge Line Co., Initial First Lien Term Loan, 7.5%, 9/22/19 $ 619,407 474,507 Navios Maritime Partners LP, Term Loan, 5.25%, 6/27/18 471,541 --------------- $ 1,090,948 ----------------------------------------------------------------------------------------------- Trucking -- 0.3% 497,468 YRC Worldwide, Inc., Initial Term Loan, 8.25%, 2/13/19 $ 477,570 --------------- Total Transportation $ 1,758,297 -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 23 Schedule of Investments | 10/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- UTILITIES -- 0.5% Electric Utilities -- 0.5% 447,790 Atlantic Power Limited Partnership, Term Loan, 4.75%, 2/24/21 $ 448,069 280,050 Star West Generation LLC, Advance Term Loan B, 4.25%, 3/13/20 275,850 --------------- Total Utilities $ 723,919 ----------------------------------------------------------------------------------------------- TOTAL SENIOR SECURED FLOATING RATE LOAN INTERESTS (Cost $46,630,537) $ 45,471,189 ----------------------------------------------------------------------------------------------- CORPORATE BONDS & NOTES -- 90.5% of Net Assets AUTOMOBILES & COMPONENTS -- 0.9% Auto Parts & Equipment -- 0.9% 350,000 International Automotive Components Group SA, 9.125%, 6/1/18 (144A) $ 353,500 220,000 Pittsburgh Glass Works LLC, 8.0%, 11/15/18 (144A) 229,130 640,000 Stackpole International Intermediate Co., SA / Stackpole International Powder, 7.75%, 10/15/21 (144A) 716,800 --------------- Total Automobiles & Components $ 1,299,430 ----------------------------------------------------------------------------------------------- BANKS -- 2.4% Diversified Banks -- 2.4% 525,000 Banco de Galicia y Buenos Aires, 8.75%, 5/4/18 (144A) $ 536,157 400,000(b) Banco Macro SA, 9.75%, 12/18/36 398,000 200,000(b)(e) Banco Santander SA, 6.375% 195,500 325,000(b)(e) Bank of America Corp., 6.25% 329,566 350,000(b)(e) ING Groep NV, 6.5% 336,656 200,000(b)(e) Royal Bank of Scotland Group Plc, 7.5% 207,000 200,000 Sberbank of Russia Via SB Capital SA, 5.25%, 5/23/23 (144A) 176,250 245,000 Trade & Development Bank of Mongolia LLC, 9.375%, 5/19/20 (144A) 244,440 750,000 UBS AG / Stamford CT, 7.625%, 8/17/22 867,435 --------------- Total Banks $ 3,291,004 ----------------------------------------------------------------------------------------------- CAPITAL GOODS -- 4.1% Aerospace & Defense -- 1.0% 400,000 ADS Tactical, Inc., 11.0%, 4/1/18 (144A) $ 410,000 680,000 DynCorp International, Inc., 10.375%, 7/1/17 537,200 435,000 LMI Aerospace, Inc., 7.375%, 7/15/19 427,387 --------------- $ 1,374,587 ----------------------------------------------------------------------------------------------- Agricultural & Farm Machinery -- 0.3% 475,000 Titan International, Inc., 6.875%, 10/1/20 $ 401,375 -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 24 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- Building Products -- 0.2% 300,000 USG Corp., 7.875%, 3/30/20 (144A) $ 316,500 ----------------------------------------------------------------------------------------------- Construction & Engineering -- 0.2% 900,000 Empresas ICA S.A.B. de CV, 8.9%, 2/4/21 (144A) $ 249,750 ----------------------------------------------------------------------------------------------- Construction Machinery & Heavy Trucks -- 0.3% 360,000 Meritor, Inc., 6.75%, 6/15/21 $ 355,500 ----------------------------------------------------------------------------------------------- Electrical Components & Equipment -- 0.5% 750,000 WireCo WorldGroup, Inc., 9.5%, 5/15/17 $ 682,500 ----------------------------------------------------------------------------------------------- Industrial Conglomerates -- 0.3% 455,000 JB Poindexter & Co., Inc., 9.0%, 4/1/22 (144A) $ 481,163 ----------------------------------------------------------------------------------------------- Industrial Machinery -- 0.8% 560,000 Apex Tool Group LLC, 7.0%, 2/1/21 (144A) $ 450,800 450,000 Cleaver-Brooks, Inc., 8.75%, 12/15/19 (144A) 433,170 217,120(f)(g) Liberty Tire Recycling LLC, 11.0% (11.0% PIK 0.0% cash), 3/31/21 (144A) 138,957 150,000 Xerium Technologies, Inc., 8.875%, 6/15/18 153,000 --------------- $ 1,175,927 ----------------------------------------------------------------------------------------------- Trading Companies & Distributors -- 0.5% 150,000 H&E Equipment Services, Inc., 7.0%, 9/1/22 $ 152,250 544,000 TRAC Intermodal LLC / TRAC Intermodal Corp., 11.0%, 8/15/19 590,240 --------------- $ 742,490 --------------- Total Capital Goods $ 5,779,792 ----------------------------------------------------------------------------------------------- COMMERCIAL & PROFESSIONAL SERVICES -- 1.7% Commercial Printing -- 0.7% 340,000 Cenveo Corp., 6.0%, 8/1/19 (144A) $ 298,350 700,000 Multi-Color Corp., 6.125%, 12/1/22 (144A) 719,250 --------------- $ 1,017,600 ----------------------------------------------------------------------------------------------- Diversified Support Services -- 1.0% 950,000 NANA Development Corp., 9.5%, 3/15/19 (144A) $ 874,000 260,000 TMS International Corp., 7.625%, 10/15/21 (144A) 237,900 280,000 Transfield Services, Ltd., 8.375%, 5/15/20 (144A) 285,600 --------------- $ 1,397,500 --------------- Total Commercial & Professional Services $ 2,415,100 ----------------------------------------------------------------------------------------------- CONSUMER DURABLES & APPAREL -- 1.8% Home Furnishings -- 0.4% 535,000 Tempur Sealy International, Inc., 6.875%, 12/15/20 $ 572,450 -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 25 Schedule of Investments | 10/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- Homebuilding -- 0.7% 350,000 Brookfield Residential Properties, Inc., 6.375%, 5/15/25 (144A) $ 336,000 605,000(d) Desarrolladora Homex SAB de CV, 9.5%, 12/11/19 (144A) 12,100 250,000 KB Home, 7.0%, 12/15/21 253,125 340,000 KB Home, 7.625%, 5/15/23 345,100 --------------- $ 946,325 ----------------------------------------------------------------------------------------------- Leisure Products -- 0.7% 1,000,000 Icon Health & Fitness, Inc., 11.875%, 10/15/16 (144A) $ 993,750 --------------- Total Consumer Durables & Apparel $ 2,512,525 ----------------------------------------------------------------------------------------------- CONSUMER SERVICES -- 2.7% Casinos & Gaming -- 1.1% 806,032(d)(f) Mashantucket Western Pequot Tribe, 6.5% (5.5% PIK 1.0% cash), 7/1/36 $ 4,030 365,000 MGM Resorts International, 6.0%, 3/15/23 370,475 100,000 Scientific Games International, Inc., 6.25%, 9/1/20 69,500 1,200,000 Scientific Games International, Inc., 10.0%, 12/1/22 1,062,000 --------------- $ 1,506,005 ----------------------------------------------------------------------------------------------- Hotels, Resorts & Cruise Lines -- 0.4% 245,000 Viking Cruises, Ltd., 6.25%, 5/15/25 (144A) $ 240,713 325,000 Viking Cruises, Ltd., 8.5%, 10/15/22 (144A) 353,437 --------------- $ 594,150 ----------------------------------------------------------------------------------------------- Leisure Facilities -- 0.4% EUR 566,487 Cirsa Funding Luxembourg SA, 8.75%, 5/15/18 (144A) $ 631,298 ----------------------------------------------------------------------------------------------- Specialized Consumer Services -- 0.8% 890,000 Constellis Holdings LLC / Constellis Finance Corp., 9.75%, 5/15/20 (144A) $ 805,450 315,000 StoneMor Partners LP / Cornerstone Family Services of WV, 7.875%, 6/1/21 326,025 --------------- $ 1,131,475 --------------- Total Consumer Services $ 3,862,928 ----------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIALS -- 1.9% Consumer Finance -- 0.8% 445,000 Jefferies Finance LLC / JFIN Co-Issuer Corp., 7.375%, 4/1/20 (144A) $ 436,100 406,687 Tarjeta Naranja SA, 9.0%, 1/28/17 (144A) 403,637 440,000 TMX Finance LLC / TitleMax Finance Corp., 8.5%, 9/15/18 (144A) 345,400 --------------- $ 1,185,137 -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 26 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- Investment Banking & Brokerage -- 0.2% 450,000(b)(e) Goldman Sachs Capital II, 4.0% $ 324,000 ----------------------------------------------------------------------------------------------- Specialized Finance -- 0.9% 750,000(a) Bosphorus, Ltd., 3.579%, 8/17/18 (144A) $ 743,625 375,000(f) Igloo Holdings Corp., 8.25% (9.0% PIK 8.25% cash), 12/15/17 (144A) 377,812 175,000 Nationstar Mortgage LLC / Nationstar Capital Corp., 6.5%, 7/1/21 160,125 --------------- $ 1,281,562 --------------- Total Diversified Financials $ 2,790,699 ----------------------------------------------------------------------------------------------- ENERGY -- 10.1% Coal & Consumable Fuels -- 0.2% 400,000(d) James River Coal Co., 7.875%, 4/1/19 $ 208 715,000 Penn Virginia Corp., 8.5%, 5/1/20 207,350 --------------- $ 207,558 ----------------------------------------------------------------------------------------------- Integrated Oil & Gas -- 0.3% MXN 540,000 Petroleos Mexicanos, 7.19%, 9/12/24 (144A) $ 30,708 325,000 YPF SA, 8.875%, 12/19/18 (144A) 335,562 --------------- $ 366,270 ----------------------------------------------------------------------------------------------- Oil & Gas Drilling -- 0.4% 730,000 Ocean Rig UDW, Inc., 7.25%, 4/1/19 (144A) $ 339,450 320,000 Shelf Drill Holdings, Ltd., 8.625%, 11/1/18 (144A) 245,600 --------------- $ 585,050 ----------------------------------------------------------------------------------------------- Oil & Gas Equipment & Services -- 0.4% 330,000(a) FTS International, Inc., 7.837%, 6/15/20 (144A) $ 229,361 425,000 McDermott International, Inc., 8.0%, 5/1/21 (144A) 365,500 --------------- $ 594,861 ----------------------------------------------------------------------------------------------- Oil & Gas Exploration & Production -- 5.7% 100,000 Comstock Resources, Inc., 7.75%, 4/1/19 $ 21,000 137,000 Comstock Resources, Inc., 9.5%, 6/15/20 30,140 750,000 EP Energy LLC / EP Energy Finance, Inc., 9.375%, 5/1/20 652,500 360,000 GeoPark Latin America, Ltd., Agencia en Chile, 7.5%, 2/11/20 (144A) 247,500 570,000 Gulfport Energy Corp., 7.75%, 11/1/20 564,300 330,000 Halcon Resources Corp., 8.875%, 5/15/21 110,756 705,000 Halcon Resources Corp., 9.75%, 7/15/20 239,700 630,000 Memorial Production Partners LP / Memorial Production Finance Corp., 7.625%, 5/1/21 422,100 600,000 Midstates Petroleum Co., Inc., 9.25%, 6/1/21 108,000 350,000 MIE Holdings Corp., 7.5%, 4/25/19 (144A) 203,870
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 27 Schedule of Investments | 10/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- Oil & Gas Exploration & Production -- (continued) 285,000 Noble Energy, Inc., 5.875%, 6/1/24 $ 286,181 1,330,000 Northern Oil & Gas, Inc., 8.0%, 6/1/20 1,099,910 450,000 Novatek OAO via Novatek Finance, Ltd., 4.422%, 12/13/22 (144A) 402,840 535,000 PDC Energy, Inc., 7.75%, 10/15/22 537,675 750,000 PetroQuest Energy, Inc., 10.0%, 9/1/17 652,500 240,000(d) Quicksilver Resources, Inc., 7.125%, 4/1/16 120 375,000 Rice Energy, Inc., 6.25%, 5/1/22 339,375 310,000 RSP Permian, Inc., 6.625%, 10/1/22 (144A) 306,900 1,170,000 Sanchez Energy Corp., 7.75%, 6/15/21 930,150 300,000 WPX Energy, Inc., 7.5%, 8/1/20 280,500 650,000 WPX Energy, Inc., 8.25%, 8/1/23 611,000 --------------- $ 8,047,017 ----------------------------------------------------------------------------------------------- Oil & Gas Refining & Marketing -- 0.4% 669,000 Calumet Specialty Products Partners LP / Calumet Finance Corp., 6.5%, 4/15/21 $ 622,170 ----------------------------------------------------------------------------------------------- Oil & Gas Storage & Transportation -- 2.7% 450,000(a) Energy Transfer Partners LP, 3.318%, 11/1/66 $ 312,750 950,000 Genesis Energy LP / Genesis Energy Finance Corp., 6.75%, 8/1/22 926,250 480,000 Global Partners LP / GLP Finance Corp., 7.0%, 6/15/23 (144A) 451,200 170,000 PBF Logistics LP / PBF Logistics Finance Corp., 6.875%, 5/15/23 (144A) 158,100 925,000 Sunoco LP / Sunoco Finance Corp., 6.375%, 4/1/23 (144A) 931,937 520,000 Western Refining Logistics LP / WNRL Finance Corp., 7.5%, 2/15/23 530,400 725,000 Williams Cos., Inc., 5.75%, 6/24/44 530,612 --------------- $ 3,841,249 --------------- Total Energy $ 14,264,175 ----------------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING -- 1.0% Food Distributors -- 0.7% 900,000 JBS Investments GmbH, 7.25%, 4/3/24 (144A) $ 924,750 ----------------------------------------------------------------------------------------------- Food Retail -- 0.3% 460,000 Tops Holding LLC / Tops Markets II Corp., 8.0%, 6/15/22 (144A) $ 476,100 --------------- Total Food & Staples Retailing $ 1,400,850 ----------------------------------------------------------------------------------------------- FOOD, BEVERAGE & TOBACCO -- 8.6% Agricultural Products -- 1.0% 900,000 Pinnacle Operating Corp., 9.0%, 11/15/20 (144A) $ 873,000
The accompanying notes are an integral part of these financial statements. 28 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- Agricultural Products -- (continued) 520,000 Southern States Cooperative, Inc., 10.0%, 8/15/21 (144A) $ 452,400 225,000 Tonon Luxembourg SA, 10.5%, 5/14/24 (144A) 148,500 --------------- $ 1,473,900 ----------------------------------------------------------------------------------------------- Packaged Foods & Meats -- 6.3% 225,000 Agrokor DD, 8.875%, 2/1/20 (144A) $ 240,660 EUR 200,000 Agrokor DD, 9.875%, 5/1/19 (144A) 236,019 650,000 Bertin SA / Bertin Finance, Ltd., 10.25%, 10/5/16 (144A) 686,562 500,000 CFG Investment SAC, 9.75%, 7/30/19 (144A) 285,500 136,000 Chiquita Brands International, Inc. / Chiquita Brands LLC, 7.875%, 2/1/21 144,330 1,100,000 FAGE Dairy Industry SA / FAGE USA Dairy Industry, Inc., 9.875%, 2/1/20 (144A) 1,146,750 515,000 Marfrig Holding Europe BV, 6.875%, 6/24/19 (144A) 469,938 800,000 Marfrig Holding Europe BV, 8.375%, 5/9/18 (144A) 782,000 700,000 Marfrig Holding Europe BV, 11.25%, 9/20/21 (144A) 668,850 475,000 Marfrig Overseas, Ltd., 9.5%, 5/4/20 (144A) 475,000 700,000 MHP SA, 8.25%, 4/2/20 (144A) 603,960 1,600,000 Minerva Luxembourg SA, 7.75%, 1/31/23 (144A) 1,580,000 200,000 Minerva Luxembourg SA, 12.25%, 2/10/22 (144A) 216,000 600,000 Pesquera Exalmar SAA, 7.375%, 1/31/20 (144A) 438,000 640,000 Post Holdings, Inc., 6.75%, 12/1/21 (144A) 662,400 200,000 Post Holdings, Inc., 7.75%, 3/15/24 (144A) 213,000 --------------- $ 8,848,969 ----------------------------------------------------------------------------------------------- Soft Drinks -- 0.3% 355,000 Cott Beverages, Inc., 5.375%, 7/1/22 $ 353,225 ----------------------------------------------------------------------------------------------- Tobacco -- 1.0% 1,645,000 Alliance One International, Inc., 9.875%, 7/15/21 $ 1,416,756 --------------- Total Food, Beverage & Tobacco $ 12,092,850 ----------------------------------------------------------------------------------------------- EQUIPMENT & SERVICES -- 2.0% Health Care Facilities -- 0.5% 700,000 Kindred Healthcare, Inc., 6.375%, 4/15/22 $ 661,500 ----------------------------------------------------------------------------------------------- Health Care Services -- 1.0% 425,000 BioScrip, Inc., 8.875%, 2/15/21 $ 328,313 990,000 Truven Health Analytics, Inc., 10.625%, 6/1/20 1,037,025 --------------- $ 1,365,338 ----------------------------------------------------------------------------------------------- Health Care Supplies -- 0.3% 500,000 Immucor, Inc., 11.125%, 8/15/19 $ 512,500 -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 29 Schedule of Investments | 10/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- Health Care Technology -- 0.2% 275,000 Emdeon, Inc., 11.0%, 12/31/19 $ 292,875 --------------- Total Health Care Equipment & Services $ 2,832,213 ----------------------------------------------------------------------------------------------- HOUSEHOLD & PERSONAL PRODUCTS -- 0.8% Household Products -- 0.6% EUR 350,000(a) Hydra Dutch Holdings 2BV, 5.451%, 4/15/19 (144A) $ 364,565 460,000 Springs Industries, Inc., 6.25%, 6/1/21 457,700 --------------- $ 822,265 ----------------------------------------------------------------------------------------------- Products -- 0.2% 345,000 Monitronics International, Inc., 9.125%, 4/1/20 $ 300,150 --------------- Total Household & Personal Products $ 1,122,415 ----------------------------------------------------------------------------------------------- INSURANCE -- 26.9% Insurance Brokers -- 0.0%+ GBP 10,489(a) Towergate Finance Plc, 8.5%, 3/2/20 (144A) $ 16,929 ----------------------------------------------------------------------------------------------- Life & Health Insurance -- 0.1% GBP 59,442 TIG FINCO Plc, 8.75%, 4/2/20 (144A) $ 84,749 ----------------------------------------------------------------------------------------------- Property & Casualty Insurance -- 3.0% 6,000,000(c)(g) Fixed Income Trust, Series 2013-A, 0.0%, 10/15/97 (144A) $ 4,225,383 80,000(b)(e) White Mountains Insurance Group, Ltd., 7.506% (144A) 80,800 --------------- $ 4,306,183 ----------------------------------------------------------------------------------------------- Reinsurance -- 23.8% 1,563,217(h) Altair Re II, Ltd. (Willis Securities, Inc.), Variable Rate Notes, 6/30/16 $ 110,519 1,000,000(h) Altair Re III, Ltd. (Willis Securities, Inc.), Variable Rate Notes, 6/30/17 1,051,300 EUR 750,000(a) ATLAS Reinsurance VII, Ltd., 3.65%, 1/7/16 (144A) (Cat Bond) 819,544 1,000,000(a) Bosphorus Re, Ltd., 2.566%, 5/3/16 (144A) (Cat Bond) 997,900 800,000(h) Carnoustie Segregated Account (Kane SAC, Ltd.), Variable Rate Notes, 2/19/16 877,040 1,750,000(a) East Lane Re VI, Ltd., 2.816% , 3/14/18 (144A) (Cat Bond) 1,734,950 2,740,500(h) Exeter Segregated Account (Kane SAC, Ltd.), Variable Rate Notes, 1/7/16 2,981,116 1,000,000(h) Fairfield Segregated Account (Kane SAC, Ltd.), Variable Rate Notes, 2/2/16 985,300 2,000,000(a) Gator Re, Ltd., 6.746%, 1/9/17 (144A) (Cat Bond) 1,844,800 1,500,000(a) Ibis Re II, Ltd., 4.066%, 6/28/16 (144A) (Cat Bond) 1,513,950 2,000,000(h) Lahinch Segregated Account (Kane SAC, Ltd.), Variable Rate Notes, 6/15/16 2,005,800
The accompanying notes are an integral part of these financial statements. 30 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
---------------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ---------------------------------------------------------------------------------------------------- Reinsurance -- (continued) 1,750,000(a) Longpoint Re, Ltd. III, 4.266%, 5/18/16 (144A) (Cat Bond) $ 1,762,075 1,450,000(h) Lorenz Re, Ltd. (Prime, Ltd.), Variable Rates Notes, 3/31/18 1,549,905 1,000,000(a) Merna Reinsurance V, Ltd., 2.066%, 4/7/17 (144A) (Cat Bond) 998,400 750,000(a) MetroCat Re, Ltd., 4.566%, 8/5/16 (144A) (Cat Bond) 763,350 2,000,000(a)(d) MultiCat Mexico, Ltd., Class A, 7.566%, 12/4/15 (144A) (Cat Bond) 80,000 3,000,000(h) Pangaea Re Segregated Account (Kane SAC, Ltd.), Series 2015-1, Variable Rates Notes, 2/1/19 3,421,500 2,004,948(h) PI-6 Segregated Account (Kane SAC, Ltd.), Series C, Variable Rate Notes, 7/7/16 1,997,530 1,000,000(a) Queen Street VIII Re, Ltd., 6.561%, 6/8/16 (144A) (Cat Bond) 1,000,300 2,000,000(a) Queen Street X Re, Ltd., 5.811%, 6/8/18 (144A) (Cat Bond) 1,970,000 1,000,000(a) Residential Reinsurance 2012, Ltd., 22.061%, 6/6/16 (144A) (Cat Bond) 1,094,800 5,731(h) Sector Re V, Ltd. (Swiss Re), Series 3, Class C, Variable Rate Notes, 12/1/17 (144A) 24,598 2,582(h) Sector Re V, Ltd. (Swiss Re), Series 4, Class A, Variable Rate Notes, 3/30/19 (144A) 60,718 1,000,000(h) Silverton Re, Ltd. (Aon Benfield Securities, Inc.), Variable Rate Notes, 9/16/16 (144A) 20,000 1,000,000(h) Silverton Re, Ltd. (Aon Benfield Securities, Inc.), Variable Rate Notes, 9/18/17 (144A) 1,159,400 1,000,000(h) St. Andrews Segregated Account (Kane SAC, Ltd.), Variable Rate Notes, 1/22/16 1,072,600 JPY 150,799,195(h) Tralee Segregated Account (Kane SAC, Ltd.), Variable Rate Notes, 7/20/17 1,248,299 500,000(a) Vitality Re VI, Ltd., 2.166%, 1/8/18 (144A) (Cat Bond) 502,850 --------------- $ 33,648,544 --------------- Total Insurance $ 38,056,405 ---------------------------------------------------------------------------------------------------- MATERIALS -- 7.9% Commodity Chemicals -- 0.4% 300,000 Basell Finance Co., BV, 8.1%, 3/15/27 (144A) $ 384,346 175,000 Hexion US Finance Corp., 6.625%, 4/15/20 148,313 --------------- $ 532,659 ---------------------------------------------------------------------------------------------------- Construction Materials -- 0.4% 389,000 Cemex Espana Luxembourg, 9.875%, 4/30/19 (144A) $ 414,771 300,000(e) Magnesita Finance, Ltd., 8.625% (144A) 184,500 --------------- $ 599,271 ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 31 Schedule of Investments | 10/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- Diversified Chemicals -- 0.4% 55,000 Blue Cube Spinco, Inc., 9.75%, 10/15/23 (144A) $ 59,263 55,000 Blue Cube Spinco, Inc., 10.0%, 10/15/25 (144A) 59,675 660,000 Evolution Escrow Issuer LLC, 7.5%, 3/15/22 (144A) 466,950 --------------- $ 585,888 ----------------------------------------------------------------------------------------------- Diversified Metals & Mining -- 1.0% 109,000 Boart Longyear Management Pty, Ltd., 10.0%, 10/1/18 (144A) $ 92,650 300,000 FMG Resources August 2006 Pty, Ltd., 9.75%, 3/1/22 (144A) 298,500 409,276 Mirabela Nickel, Ltd., 9.5%, 6/24/19 204,638 180,000 Prince Mineral Holding Corp., 11.5%, 12/15/19 (144A) 151,200 750,000 Vedanta Resources Plc, 9.5%, 7/18/18 (144A) 705,000 --------------- $ 1,451,988 ----------------------------------------------------------------------------------------------- Gold -- 0.1% 85,000 IAMGOLD Corp., 6.75%, 10/1/20 (144A) $ 64,175 ----------------------------------------------------------------------------------------------- Metal & Glass Containers -- 0.3% 261,325(f) Ardagh Finance Holdings SA, 8.625% (8.625% PIK 0.0% cash), 6/15/19 (144A) $ 273,738 EUR 150,000 Horizon Holdings I SASU, 7.25%, 8/1/23 (144A) 171,708 --------------- $ 445,446 ----------------------------------------------------------------------------------------------- Paper Packaging -- 2.2% 580,000 Exopack Holding Corp., 10.0%, 6/1/18 (144A) $ 574,200 500,000 Reynolds Group Issuer, Inc., 9.0%, 4/15/19 511,250 475,000 Reynolds Group Issuer, Inc., 9.875%, 8/15/19 499,937 EUR 1,365,000 SIG Combibloc Holdings SCA, 7.75%, 2/15/23 (144A) 1,585,770 --------------- $ 3,171,157 ----------------------------------------------------------------------------------------------- Paper Products -- 1.2% 675,000 Appvion, Inc., 9.0%, 6/1/20 (144A) $ 273,375 500,000 Mercer International, Inc., 7.0%, 12/1/19 510,000 840,000 Resolute Forest Products, Inc., 5.875%, 5/15/23 625,800 255,000 Unifrax I LLC / Unifrax Holding Co., 7.5%, 2/15/19 (144A) 246,075 --------------- $ 1,655,250 ----------------------------------------------------------------------------------------------- Specialty Chemicals -- 0.3% 410,000 A Schulman, Inc., 6.875%, 6/1/23 (144A) $ 406,925 ----------------------------------------------------------------------------------------------- Steel -- 1.6% 500,000 Cliffs Natural Resources, Inc., 8.25%, 3/31/20 (144A) $ 447,500 250,000 Evraz Group SA, 9.5%, 4/24/18 (144A) 265,817 190,000 JMC Steel Group, Inc., 8.25%, 3/15/18 (144A) 129,200
The accompanying notes are an integral part of these financial statements. 32 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- Steel -- (continued) 499,000 Optima Specialty Steel, Inc., 12.5%, 12/15/16 (144A) $ 444,110 850,000 Ryerson, Inc., 9.0%, 10/15/17 741,625 350,000 United States Steel Corp., 7.5%, 3/15/22 270,375 --------------- $ 2,298,627 --------------- Total Materials $ 11,211,386 ----------------------------------------------------------------------------------------------- MEDIA -- 3.2% Broadcasting -- 0.2% 400,000 Intelsat Luxembourg SA, 7.75%, 6/1/21 $ 236,000 ----------------------------------------------------------------------------------------------- Movies & Entertainment -- 2.2% 1,710,000 AMC Entertainment, Inc., 9.75%, 12/1/20 $ 1,799,775 600,000 Gibson Brands, Inc., 8.875%, 8/1/18 (144A) 526,500 225,000 Regal Entertainment Group, 5.75%, 2/1/25 221,062 625,000 WMG Acquisition Corp., 6.75%, 4/15/22 (144A) 578,519 --------------- $ 3,125,856 ----------------------------------------------------------------------------------------------- Publishing -- 0.8% 855,000 Gannett Co., Inc., 6.375%, 10/15/23 $ 923,400 250,000 MPL 2 Acquisition Canco, Inc., 9.875%, 8/15/18 (144A) 262,500 --------------- $ 1,185,900 --------------- Total Media $ 4,547,756 ----------------------------------------------------------------------------------------------- PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 1.1% Biotechnology -- 0.2% 300,000 ConvaTec Healthcare E SA, 10.5%, 12/15/18 (144A) $ 310,125 ----------------------------------------------------------------------------------------------- Pharmaceuticals -- 0.9% 208,000 DPx Holdings BV, 7.5%, 2/1/22 (144A) $ 212,160 650,000 Endo Finance LLC / Endo, Ltd. / Endo Finco, Inc., 6.0%, 7/15/23 (144A) 650,000 EUR 250,000 VRX Escrow Corp., 4.5%, 5/15/23 222,469 235,000 VRX Escrow Corp., 5.875% , 5/15/23 (144A) 197,841 --------------- $ 1,282,470 --------------- Total Pharmaceuticals, Biotechnology & Life Sciences $ 1,592,595 ----------------------------------------------------------------------------------------------- REAL ESTATE -- 1.3% Real Estate Operating Companies -- 0.3% 410,000 IRSA Inversiones y Representaciones SA, 8.5%, 2/2/17 (144A) $ 410,000 ----------------------------------------------------------------------------------------------- Specialized REIT -- 1.0% 1,520,000 Communications Sales & Leasing, Inc. / CSL Capital LLC, 8.25%, 10/15/23 $ 1,405,240 --------------- Total Real Estate $ 1,815,240 -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 33 Schedule of Investments | 10/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- RETAILING -- 1.8% Automotive Retail -- 0.7% 1,100,000 DriveTime Automotive Group, Inc. / DT Acceptance Corp., 8.0%, 6/1/21 (144A) $ 1,023,000 ----------------------------------------------------------------------------------------------- Computer & Electronics Retail -- 0.1% 235,000 Rent-A-Center, Inc., 6.625%, 11/15/20 $ 220,900 ----------------------------------------------------------------------------------------------- Department Stores -- 0.9% 300,000 Argos Merger Sub, Inc., 7.125%, 3/15/23 (144A) $ 315,750 625,000 Grupo Famsa SAB de CV, 7.25%, 6/1/20 (144A) 567,187 350,000 Neiman Marcus Group, Ltd., LLC, 8.0%, 10/15/21 (144A) 363,563 --------------- $ 1,246,500 ----------------------------------------------------------------------------------------------- Specialty Stores -- 0.1% 85,000 Outerwall, Inc., 6.0%, 3/15/19 $ 84,575 --------------- Total Retailing $ 2,574,975 ----------------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.4% Semiconductors -- 0.4% 85,000 Advanced Micro Devices, Inc., 6.75%, 3/1/19 $ 65,450 235,000 Advanced Micro Devices, Inc., 7.0%, 7/1/24 164,500 400,000 Advanced Micro Devices, Inc., 7.5%, 8/15/22 290,000 --------------- Total Semiconductors & Semiconductor Equipment $ 519,950 ----------------------------------------------------------------------------------------------- SOFTWARE & SERVICES -- 0.6% Data Processing & Outsourced Services -- 0.6% 162,000 First Data Corp., 10.625%, 6/15/21 $ 180,832 404,000 First Data Corp., 8.25%, 1/15/21 (144A) 423,695 225,000 NeuStar, Inc., 4.5%, 1/15/23 193,500 --------------- Total Software & Services $ 798,027 ----------------------------------------------------------------------------------------------- TECHNOLOGY HARDWARE & EQUIPMENT -- 0.4% Communications Equipment -- 0.2% 280,000 CommScope Technologies Finance LLC, 6.0%, 6/15/25 (144A) $ 284,200 ----------------------------------------------------------------------------------------------- Electronic Equipment & Instruments -- 0.2% 315,000 Zebra Technologies Corp., 7.25%, 10/15/22 (144A) $ 343,744 --------------- Total Technology Hardware & Equipment $ 627,944 ----------------------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES -- 2.5% Integrated Telecommunication Services -- 1.3% 300,000 Frontier Communications Corp., 8.75%, 4/15/22 $ 288,750 290,000 Frontier Communications Corp., 11.0%, 9/15/25 (144A) 303,955
The accompanying notes are an integral part of these financial statements. 34 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- Integrated Telecommunication Services -- (continued) 750,000 GCI, Inc., 6.875% , 4/15/25 $ 772,500 600,000 Windstream Corp., 7.5%, 6/1/22 498,750 --------------- $ 1,863,955 ----------------------------------------------------------------------------------------------- Wireless Telecommunication Services -- 1.2% 250,000 Altice Finco SA, 8.125%, 1/15/24 (144A) $ 248,750 300,000 Altice SA, 7.75%, 5/15/22 (144A) 288,750 200,000 Mobile Telesystems OJSC via MTS International Funding, Ltd., 5.0%, 5/30/23 (144A) 184,750 340,000 Sprint Corp., 7.125%, 6/15/24 298,563 275,000 Sprint Corp., 7.25%, 9/15/21 252,656 250,000 Unison Ground Lease Funding LLC, 5.78%, 3/15/20 (144A) 247,180 RUB 14,100,000 VimpelCom Holdings BV, 9.0%, 2/13/18 (144A) 207,846 --------------- $ 1,728,495 --------------- Total Telecommunication Services $ 3,592,450 ----------------------------------------------------------------------------------------------- TRANSPORTATION -- 3.7% Airlines -- 0.9% 545,000 Gol LuxCo SA, 8.875%, 1/24/22 (144A) $ 274,544 155,000 Intrepid Aviation Group Holdings LLC / Intrepid Finance Co., 6.875%, 2/15/19 (144A) 134,656 450,000 Intrepid Aviation Group Holdings LLC / Intrepid Finance Co., 8.25%, 7/15/17 (144A) 445,500 500,000 TAM Capital 3, Inc., 8.375%, 6/3/21 (144A) 402,500 --------------- $ 1,257,200 ----------------------------------------------------------------------------------------------- Airport Services -- 0.9% 488,040 Aeropuertos Argentina 2000 SA, 10.75%, 12/1/20 (144A) $ 503,852 800,000 Aguila 3 SA, 7.875% , 1/31/18 (144A) 818,000 --------------- $ 1,321,852 ----------------------------------------------------------------------------------------------- Highways & Railtracks -- 0.2% MXN 4,500,000 Red de Carreteras de Occidente SAPIB de CV, 9.0%, 6/10/28 (144A) $ 266,445 ----------------------------------------------------------------------------------------------- Marine -- 0.4% 500,000 Far East Capital, Ltd., SA, 8.0%, 5/2/18 $ 306,490 375,000 Navios South American Logistics, Inc. / Navios Logistics Finance US, Inc., 7.25%, 5/1/22 (144A) 315,469 --------------- $ 621,959 ----------------------------------------------------------------------------------------------- Railroads -- 0.6% 377,991(f) AAF Holdings LLC / AAF Finance Co., 12.0% (12.75% PIK 12.0% cash), 7/1/19 (144A) $ 395,946
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 35 Schedule of Investments | 10/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- Railroads -- (continued) 485,000 Florida East Coast Holdings Corp., 6.75%, 5/1/19 (144A) $ 488,516 --------------- $ 884,462 ----------------------------------------------------------------------------------------------- Trucking -- 0.7% 1,000,000 Jack Cooper Holdings Corp., 10.25%, 6/1/20 (144A) $ 907,500 --------------- Total Transportation $ 5,259,418 ----------------------------------------------------------------------------------------------- UTILITIES -- 2.7% Electric Utilities -- 0.8% 375,000 ContourGlobal Power Holdings SA, 7.125%, 6/1/19 (144A) $ 374,062 460,000(b) Enel S.p.A., 8.75%, 9/24/73 (144A) 530,150 290,000 PPL Energy Supply LLC, 6.5%, 6/1/25 (144A) 257,375 --------------- $ 1,161,587 ----------------------------------------------------------------------------------------------- Gas Utilities -- 0.4% 492,450 Transportadora de Gas del Sur SA, 9.625%, 5/14/20 (144A) $ 488,757 ----------------------------------------------------------------------------------------------- Independent Power Producers & Energy Traders -- 1.5% 560,000 NRG Energy, Inc., 6.25%, 5/1/24 $ 501,200 1,065,000 Terraform Global Operating LLC, 9.75%, 8/15/22 (144A) 953,175 200,000 TerraForm Power Operating LLC, 5.875%, 2/1/23 (144A) 184,500 585,000 TerraForm Power Operating LLC, 6.125%, 6/15/25 (144A) 526,500 --------------- $ 2,165,375 --------------- Total Utilities $ 3,815,719 ----------------------------------------------------------------------------------------------- TOTAL CORPORATE BONDS & NOTES (Cost $137,445,093) $ 128,075,846 ----------------------------------------------------------------------------------------------- CONVERTIBLE BONDS & NOTES -- 2.8% of Net Assets DIVERSIFIED FINANCIALS -- 0.1% Asset Management & Custody Banks -- 0.1% 120,000 Apollo Investment Corp., 5.75%, 1/15/16 $ 120,450 --------------- Total Diversified Financials $ 120,450 ----------------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SERVICES -- 1.2% Health Care Equipment -- 1.2% 1,040,000(c) Hologic, Inc., 2.0%, 12/15/37 $ 1,772,550 --------------- Total Health Care Equipment & Services $ 1,772,550 -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 36 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
----------------------------------------------------------------------------------------------- Principal Amount USD ($) Value ----------------------------------------------------------------------------------------------- MATERIALS -- 1.3% Diversified Chemicals -- 1.2% 1,900,000(i) Hercules, Inc., 6.5%, 6/30/29 $ 1,748,000 ----------------------------------------------------------------------------------------------- Diversified Metals & Mining -- 0.1% 100,000 Vedanta Resources Jersey, Ltd., 5.5%, 7/13/16 $ 94,630 --------------- Total Materials $ 1,842,630 ----------------------------------------------------------------------------------------------- PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 0.2% Biotechnology -- 0.2% 250,000 Corsicanto, Ltd., 3.5%, 1/15/32 $ 224,687 --------------- Total Pharmaceuticals, Biotechnology & Life Sciences $ 224,687 ----------------------------------------------------------------------------------------------- TOTAL CONVERTIBLE BONDS & NOTES (Cost $2,597,092) $ 3,960,317 ----------------------------------------------------------------------------------------------- U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 6.2% of Net Assets 3,000,000(a) U.S. Treasury Notes, 0.09%, 7/31/16 $ 3,000,432 2,975,000(a) U.S. Treasury Notes, 0.073%, 10/31/16 2,974,459 2,850,000(a) U.S. Treasury Notes, 0.089%, 4/30/16 2,850,342 ----------------------------------------------------------------------------------------------- TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS (Cost $8,824,633) $ 8,825,233 ----------------------------------------------------------------------------------------------- SOVEREIGN DEBT OBLIGATIONS -- 1.3% of Net Assets Argentina -- 0.4% 305,920 Province of Salta Argentina, 9.5%, 3/16/22 (144A) $ 299,801 230,000 Provincia de Buenos Aires, 9.95%, 6/9/21 (144A) 236,900 --------------- $ 536,701 ----------------------------------------------------------------------------------------------- Ireland -- 0.3% 450,000 Vnesheconombank Via VEB Finance Plc, 6.902%, 7/9/20 (144A) $ 459,144 ----------------------------------------------------------------------------------------------- Mexico -- 0.4% MXN 8,870,000 Mexican Bonos, 7.75%, 11/13/42 $ 603,122 MXN 319,897 Mexican Udibonos, 3.5%, 12/14/17 20,574 --------------- $ 623,696 ----------------------------------------------------------------------------------------------- Zambia -- 0.2% 300,000 Zambia Government International Bond, 5.375%, 9/20/22 (144A) $ 222,000 ----------------------------------------------------------------------------------------------- TOTAL SOVEREIGN DEBT OBLIGATIONS (Cost $1,974,476) $ 1,841,541 -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 37 Schedule of Investments | 10/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------- Shares Value ----------------------------------------------------------------------------------------------- COMMON STOCKS -- 0.3% of Net Assets CAPITAL GOODS -- 0.0%+ Industrial Machinery -- 0.0%+ 10,289(g)(j) Liberty Tire Recycling LLC $ 103 --------------- Total Capital Goods $ 103 ----------------------------------------------------------------------------------------------- INSURANCE -- 0.0%+ Insurance Brokers -- 0.0%+ GBP 10,233(g)(j) TopCo., Ltd. $ 2,526 GBP 475(g)(j) Towergate Finance Plc 117 --------------- $ 2,643 --------------- Total Insurance $ 2,643 ----------------------------------------------------------------------------------------------- TRANSPORTATION -- 0.3% Air Freight & Logistics -- 0.3% 943(j) CEVA Holdings LLC $ 424,489 --------------- Total Transportation $ 424,489 ----------------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $916,150) $ 427,235 ----------------------------------------------------------------------------------------------- CONVERTIBLE PREFERRED STOCKS -- 0.4% of Net Assets DIVERSIFIED FINANCIALS -- 0.4% Other Diversified Financial Services -- 0.4% 470 Bank of America Corp., 7.25% $ 519,350 --------------- Total Diversified Financials $ 519,350 ----------------------------------------------------------------------------------------------- ENERGY -- 0.0%+ Oil & Gas Exploration & Production -- 0.0%+ 200 Halcon Resources Corp., 5.75% $ 25,550 --------------- Total Energy $ 25,550 ----------------------------------------------------------------------------------------------- TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $524,900) $ 544,900 ----------------------------------------------------------------------------------------------- PREFERRED STOCKS -- 1.6% of Net Assets BANKS -- 0.4% Diversified Banks -- 0.4% 500(b) AgStar Financial Services ACA, 6.75% (144A) $ 531,531 --------------- Total Banks $ 531,531 ----------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIALS -- 0.7% Other Diversified Financial Services -- 0.7% 40,675(b) GMAC Capital Trust I, 8.125% $ 1,050,635 --------------- Total Diversified Financials $ 1,050,635 -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 38 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
----------------------------------------------------------------------------------------------- Shares Value ----------------------------------------------------------------------------------------------- INSURANCE -- 0.5% Insurance Brokers -- 0.5% GBP 452,745(g)(j) Towergate Finance Plc, Class B $ 684,548 ----------------------------------------------------------------------------------------------- Reinsurance -- 0.0%+ 15,000(h)(j) Lorenz Re, Ltd. (Aon Benefield Securities, Inc.), Variable Rate Notes $ 37,500 --------------- Total Insurance $ 722,048 ----------------------------------------------------------------------------------------------- TOTAL PREFERRED STOCKS (Cost $2,106,323) $ 2,304,214 ----------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------- Principal Amount USD ($) ----------------------------------------------------------------------------------------------- TEMPORARY CASH INVESTMENTS -- 0.7% of Net Assets COMMERCIAL PAPER -- 0.7% 515,000 Societe Generale, 0.05%, 11/2/15 $ 514,996 515,000 Prudential Funding LLC, 0.07%, 11/2/15 514,995 --------------- $ 1,029,991 ----------------------------------------------------------------------------------------------- TOTAL TEMPORARY CASH INVESTMENTS (Cost $1,029,998) $ 1,029,991 ----------------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES -- 140.6% (Cost -- $208,726,238) (k)(l) $ 198,897,340 ----------------------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES -- (40.6)% $ (57,421,591) ----------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHAREOWNERS -- 100.0% $ 141,475,749 ===============================================================================================
REIT Real Estate Investment Trust. (144A) Security is exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold normally to qualified institutional buyers in a transaction exempt from registration. At October 31, 2015, the value of these securities amounted to $80,403,358, or 56.8% of total net assets applicable to common shareowners. (Cat Bond) Catastrophe or Event-linked bond. At October 31, 2015, the value of these securities amounted to $15,082,919, or 10.7% of total net assets applicable to common shareowners. See Notes to Financial Statements -- Note 1F. + Amount rounds to less than 0.1%. The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 39 Schedule of Investments | 10/31/15 (unaudited) (continued) * Senior secured floating rate loan interests in which the Trust invests generally pay interest at rates that are periodically redetermined by reference to a base lending plus a premium. These base lending rates are generally (i) the lending rate offered by one or more major European banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime rate offered by one or more major United States banks, (iii) the rate of a certificate of deposit or (iv) other base lending rates used by commercial lenders. The interest rate shown is the rate accruing at October 31, 2015. (a) Floating rate note. The rate shown is the coupon rate at October 31, 2015. (b) The interest rate is subject to change periodically. The interest rate shown is the rate at October 31, 2015. (c) 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, 2015. (d) Security is in default. (e) Security is perpetual in nature and has no stated maturity date. (f) Payment in Kind (PIK) security which may pay interest in the form of additional principal amount. (g) Security is valued using fair value methods (other than prices supplied by independent pricing services). See Notes to Financial Statements -- Note 1A. (h) Structured reinsurance investment. At October 31, 2015, the value of these securities amounted to $18,603,125, or 13.1% of total net assets applicable to common shareowners. See Notes to Financial Statements -- Note 1F. (i) Security is priced as a unit. (j) Non-income producing. (k) At October 31, 2015, the net unrealized depreciation on investments based on cost for federal tax purposes of $210,804,330 was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost $ 6,355,587 Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value (18,262,577) ------------ Net unrealized depreciation $(11,906,990) ============
For financial reporting purposes net unrealized depreciation on investments was $9,828,898 and cost of investments aggregated $208,726,238. (l) Distributions of Investments by country of issue, as a percentage of total investments in securities, is as follows:
United States 68.0% Bermuda 8.6 Luxembourg 5.0 Cayman Islands 4.1 Ireland 2.4 Netherlands 1.9 Argentina 1.8 Canada 1.4 Other (individually less than 1%) 6.8 ----- 100.0% =====
The accompanying notes are an integral part of these financial statements. 40 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 Purchases and sales of securities (excluding temporary cash investments) for the six months ended October 31, 2015 aggregated $31,474,188 and $37,820,070, respectively. Principal amounts are denominated in U.S. dollars unless otherwise noted. EUR -- Euro GBP -- Great British Pound JPY -- Japanese Yen MXN -- Mexican Peso RUB -- Russian Ruble Various inputs are used in determining the value of the Trust's investments. These inputs are summarized in the three broad levels below. Level 1 -- quoted prices in active markets for identical securities. Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). See Notes to Financial Statements -- Note 1A. Level 3 -- significant unobservable inputs (including the Trust's own assumptions in determining fair value of investments). See Notes to Financial Statements -- Note 1A. The following is a summary of the inputs used as of October 31, 2015, in valuing the Trust's investments.
------------------------------------------------------------------------------------------- Level 1 Level 2 Level 3 Total ------------------------------------------------------------------------------------------- Asset Backed Securities $ -- $ 2,475,421 $ -- $ 2,475,421 Collateralized Mortgage Obligations -- 3,941,453 -- 3,941,453 Senior Secured Floating Rate Loan Interests -- 45,471,189 -- 45,471,189 Corporate Bonds & Notes Capital Goods Industrial Machinery -- 1,036,970 138,957 1,175,927 Insurance Property & Casualty Insurance -- 80,800 4,225,383 4,306,183 Reinsurance -- 15,082,919 18,565,625 33,648,544 All Other Corporate Bonds & Notes -- 88,945,192 -- 88,945,192 Convertible Bonds & Notes -- 3,960,317 -- 3,960,317 U.S. Government and Agency Obligations -- 8,825,233 -- 8,825,233 Sovereign Debt Obligations -- 1,841,541 -- 1,841,541 Common Stocks Capital Goods Industrial Machinery -- -- 103 103 Insurance Insurance Brokers -- -- 2,643 2,643 Transportation Air Freight & Logistics -- 424,489 -- 424,489 Convertible Preferred Stocks Energy Oil & Gas Exploration & Production -- 25,550 -- 25,550
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 41 Schedule of Investments | 10/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------- Level 1 Level 2 Level 3 Total ----------------------------------------------------------------------------------------- All Other Convertible Preferred Stocks $ 519,350 $ -- $ -- $ 519,350 Preferred Stocks Banks Diversified Banks -- 531,531 -- 531,531 Insurance Insurance Brokers -- -- 684,548 684,548 Reinsurance -- -- 37,500 37,500 All Other Preferred Stocks 1,050,635 -- -- 1,050,635 Commercial Paper -- 1,029,991 -- 1,029,991 ----------------------------------------------------------------------------------------- Total Investments In Securities $1,569,985 $173,672,596 $23,654,759 $198,897,340 ========================================================================================= Other Financial Instruments Assets: Unrealized appreciation on forward foreign currency contracts $ -- $ 8,359 $ -- $ 8,359 Liabilities: Unrealized depreciation on forward foreign currency contracts -- (117,602) -- (117,602) ----------------------------------------------------------------------------------------- Total Other Financial Instruments $ -- $ (109,243) $ -- $ (109,243) =========================================================================================
The following is a summary of the fair valuation of certain of the Trust's assets and liabilities as of October 31, 2015:
------------------------------------------------------------------------------------- Level 1 Level 2 Level 3 Total ------------------------------------------------------------------------------------- Assets: Foreign currencies, at value (cost $2,021,080) $ -- $ 1,998,032 $ -- $ 1,998,032 Liabilities: Outstanding borrowings -- (64,000,000) -- (64,000,000) ------------------------------------------------------------------------------------- Total $ -- $ (62,001,968) $ -- $ (62,001,968) =====================================================================================
The accompanying notes are an integral part of these financial statements. 42 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 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 4/30/15 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* Level 3* 10/31/15 ----------------------------------------------------------------------------------------------------------------------------------- Collateralized Mortgage Obligations $ 165,062 $ (29,812) $ 460 $ -- $ -- $ 28 $ -- $(135,738) $ -- Corporate Bonds & Notes Capital Goods Industrial Machinery 239,330 4,677 (60,932) 10,120 (56,000) 1,762 -- -- 138,957 Insurance Insurance Brokers 16,096 -- -- -- -- -- -- (16,096) -- Life & Health Insurance 500,600 -- 2,250 -- -- -- -- (502,850) -- Property & Casualty Insurance 4,354,042 -- (128,659) -- -- -- -- -- 4,225,383 Reinsurance 22,537,165 (248,629) (702,804) 3,140,981 (6,271,020) 109,932 -- -- 18,565,625 Common Stocks Capital Goods Industrial Machinery 103 -- -- -- -- -- -- -- 103 Insurance Insurance Brokers 2,540 -- 103 -- -- -- -- -- 2,643 Reinsurance 1,019,800 -- -- -- (1,019,800) -- -- -- -- Preferred Stocks Insurance Insurance Brokers 671,036 -- 13,512 -- -- -- -- -- 684,548 Reinsurance 941,821 -- -- -- (904,321) -- -- -- 37,500 ----------------------------------------------------------------------------------------------------------------------------------- Total $30,447,595 $(273,764) $(876,070) $3,151,101 $(8,251,141) $111,722 $ -- $(654,684) $23,654,759 ===================================================================================================================================
* Transfers are calculated on the beginning of period value. For the six months ended October 31, 2015, there were no transfers between Levels 1 and 2. For the six months ended October 31, 2015 securities with aggregate market value of $654,684 transferred from Level 3 to Level 2 as there were observable inputs available to determine their value. (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. The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 43 Schedule of Investments | 10/31/15 (unaudited) (continued) Net change in unrealized appreciation of Level 3 investments still held and considered Level 3 at October 31, 2015: $69,107. The following table presents additional information about valuation techniques and inputs used for investments categorized as Level 3 at October 31, 2015. These amounts exclude valuations provided by a broker.
------------------------------------------------------------------------------------------------------ Fair Value Valuation Unobservable Asset Type 10/31/15 Technique (s) Input Value/Range ------------------------------------------------------------------------------------------------------ Corporate Bonds $4,364,340 Market Comparables EBITDA Multiples(1) 5.0x to 6.5x Yield Premium(2) 1.05% ------------------------------------------------------------------------------------------------------ Common Stocks $ 2,746 Market Comparables EBITDA 5.0x to 6.5x Multiples(1) ------------------------------------------------------------------------------------------------------ Preferred Stocks $ 684,548 Market Comparables EBITDA 5.0x to 5.5x Multiples(1) ------------------------------------------------------------------------------------------------------
(1) An increase in this unobservable input would result in a higher fair value measurement, while a decrease would result in a lower fair value measurement. (2) An increase in this unobservable input would result in a lower fair value measurement, while a decrease would result in a higher fair value measurement. The accompanying notes are an integral part of these financial statements. 44 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 Statement of Assets and Liabilities | 10/31/15 (unaudited)
ASSETS: Investments in securities, at value (cost $208,726,238) $ 198,897,340 Cash 4,090,952 Foreign currencies, at value (cost $2,021,090) 1,998,032 Receivables -- Investment securities sold 464,050 Interest receivable 2,749,754 Unrealized appreciation on forward foreign currency contracts 8,359 Prepaid expenses 3,930 --------------------------------------------------------------------------------------- Total assets $ 208,212,417 --------------------------------------------------------------------------------------- LIABILITIES: Payables -- Outstanding borrowings $ 64,000,000 Investment securities purchased 2,278,179 Trustees' fees 679 Unrealized depreciation on forward foreign currency contracts 117,602 Due to affiliates 147,916 Administration fee payable 85,021 Interest expense payable 2,681 Accrued expenses 104,590 --------------------------------------------------------------------------------------- Total liabilities $ 66,736,668 --------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHAREOWNERS: Paid-in capital $ 194,643,780 Distributions in excess of net investment income (983,303) Accumulated net realized loss on investments and foreign currency transactions (42,222,244) Net unrealized depreciation on investments (9,828,898) Net unrealized depreciation on forward foreign currency contracts and other assets and liabilities denominated in foreign currencies (133,586) --------------------------------------------------------------------------------------- Net assets applicable to common shareowners $ 141,475,749 --------------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE: No par value (unlimited number of shares authorized) Based on $141,475,749 / 8,332,790 common shares $ 16.98 =======================================================================================
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 45 Statement of Operations (unaudited) For the Six Months Ended 10/31/15
INVESTMENT INCOME: Interest $ 7,514,080 Dividends 86,532 Loan facility and other income 79,696 ------------------------------------------------------------------------------------------- Total investment income $ 7,680,308 ------------------------------------------------------------------------------------------- EXPENSES: Management fees $ 908,233 Administrative expense 70,286 Transfer agent fees and expenses 5,704 Shareholder communications expense 5,147 Custodian fees 24,180 Professional fees 43,973 Printing expenses 6,304 Trustees' fees 4,001 Pricing fees 16,882 Interest expense 343,300 Miscellaneous 15,778 ------------------------------------------------------------------------------------------- Net operating expenses $ 1,443,788 ------------------------------------------------------------------------------------------- Net investment income $ 6,236,520 ------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized loss on: Investments $(2,261,707) Forward foreign currency contracts and other assets and liabilities denominated in foreign currencies (116,479) $ (2,378,186) ------------------------------------------------------------------------------------------- Change in net unrealized appreciation (depreciation) on: Investments $(9,064,541) Forward foreign currency contracts and other assets and liabilities denominated in foreign currencies 155,578 $ (8,908,963) ------------------------------------------------------------------------------------------- Net realized and unrealized loss on investments and foreign currency transactions $(11,287,149) ------------------------------------------------------------------------------------------- Net decrease in net assets resulting from operations $ (5,050,629) ===========================================================================================
The accompanying notes are an integral part of these financial statements. 46 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 Statements of Changes in Net Assets
------------------------------------------------------------------------------------------- Six Months Ended 10/31/15 Year Ended (unaudited) 4/30/15 ------------------------------------------------------------------------------------------- FROM OPERATIONS: Net investment income $ 6,236,520 $ 15,171,206 Net realized loss on investments and foreign currency transactions (2,378,186) (7,185,833) Change in net unrealized depreciation on investments and foreign currency transactions (8,908,963) (6,329,324) ------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ (5,050,629) $ 1,656,049 ------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREOWNERS: Net investment income and previously undistributed net investment income ($0.81 and $1.83 per share, respectively) $ (6,749,560) $ (15,241,784) ------------------------------------------------------------------------------------------- Total distributions to common shareowners $ (6,749,560) $ (15,241,784) ------------------------------------------------------------------------------------------- FROM TRUST SHARE TRANSACTIONS: Reinvestment of distributions $ -- $ 250,324 ------------------------------------------------------------------------------------------- Net increase in net assets applicable to common shareowners from Trust share transactions $ -- $ 250,324 ------------------------------------------------------------------------------------------- Net decrease in net assets applicable to common shareowners $ (11,800,189) $ (13,335,411) NET ASSETS APPLICABLE TO COMMON SHAREOWNERS: Beginning of period 153,275,938 166,611,349 ------------------------------------------------------------------------------------------- End of period $ 141,475,749 $ 153,275,938 ------------------------------------------------------------------------------------------- Distributions in excess of net investment income $ (983,303) $ (470,263) ===========================================================================================
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 47 Statement of Cash Flows (unaudited) For the Six Months Ended 10/31/15
Cash Flows From Operating Activities: Net decrease in net assets resulting from operations $ (5,050,629) ----------------------------------------------------------------------------------------------- Adjustments to reconcile net decrease in net assets resulting from operations to net cash and foreign currencies from operating activities: Inflation indexed bond income $ (55) Purchases of investment securities (34,194,089) Proceeds from disposition and maturity of investment securities 39,394,552 Net sales of temporary cash investments 425,006 Net accretion and amortization of discount/premium on investment securities (314,904) Decrease in interest receivable 13,556 Increase in prepaid expenses (3,930) Decrease in due to affiliates (3,439) Increase in trustees' fees payable 305 Increase in administration fee payable 14,583 Decrease in accrued expenses payable (16,487) Decrease in interest expense payable (3,181) Change in unrealized depreciation on investments 9,064,541 Change in unrealized appreciation on forward foreign currency contracts and foreign currency (155,482) Net realized loss on investments 2,261,707 ----------------------------------------------------------------------------------------------- Net cash and foreign currencies from operating activities $ 11,432,054 ----------------------------------------------------------------------------------------------- Cash Flows Used in Financing Activities: Decrease in due to custodian $ (1,318,932) Distributions to common shareholders (6,749,560) ----------------------------------------------------------------------------------------------- Net cash and foreign currencies used in financing activities $ (8,068,492) ----------------------------------------------------------------------------------------------- Effect of Foreign Exchange Fluctuations on Cash: Effect of foreign exchange fluctuations on cash $ (2,311) ----------------------------------------------------------------------------------------------- Cash and Foreign Currencies: Beginning of the period $ 2,727,733 ----------------------------------------------------------------------------------------------- End of the period $ 6,088,984 =============================================================================================== Cash Flow Information: Cash paid for interest $ 346,481 -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 48 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------ Six Months Year Year Ended Year Year Year Ended Ended 10/31/15 Ended Ended Ended 4/30/12 4/30/11 (unaudited) 4/30/15 4/30/14 4/30/13 (Consolidated) (Consolidated) ------------------------------------------------------------------------------------------------------------------------------------ Per Share Operating Performance Net asset value, beginning of period $ 18.39 $ 20.03 $ 20.70 $ 19.51 $ 21.01 $ 20.17 ------------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from investment operations: (a) Net investment income $ 0.75 $ 1.82 $ 1.98 $ 2.24 $ 2.10 $ 2.03 Net realized and unrealized gain (loss) on investments and foreign currency transactions (1.35) (1.63) (0.36) 0.99 (1.64) 0.73 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) from investment operations $ (0.60) $ 0.19 $ 1.62 $ 3.23 $ 0.46 $ 2.76 ------------------------------------------------------------------------------------------------------------------------------------ Distributions to common shareowners from: Net investment income and previously undistributed net investment income $ (0.81)* $ (1.83)* $ (2.29)* $ (2.04) $ (1.96) $ (1.92) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net asset value $ (1.41) $ (1.64) $ (0.67) $ 1.19 $ (1.50) $ 0.84 ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period (b) $ 16.98 $ 18.39 $ 20.03 $ 20.70 $ 19.51 $ 21.01 ------------------------------------------------------------------------------------------------------------------------------------ Market value, end of period (b) $ 15.27 $ 17.42 $ 20.85 $ 21.82 $ 20.13 $ 21.95 ==================================================================================================================================== Total return at market value (c) (7.75)%(d) (7.90)% 7.12% 19.98% 1.35% 17.95% Ratios to average net assets of common shareowners: Total expenses plus interest expense (e)(f) 1.93%(g) 1.85% 1.86% 1.97% 2.04% 2.20% Net investment income available to common shareowners 8.33%(g) 9.52% 9.88% 11.26% 10.75% 10.02% Portfolio turnover 16% 48% 38% 34% 24% 30% Net assets of common shareowners, end of period (in thousands) $141,476 $153,276 $166,611 $171,646 $161,146 $172,882
The accompanying notes are an integral part of these financial statements. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 49 Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------ Six Months Year Year Ended Year Year Year Ended Ended 10/31/15 Ended Ended Ended 4/30/12 4/30/11 (unaudited) 4/30/15 4/30/14 4/30/13 (Consolidated) (Consolidated) ------------------------------------------------------------------------------------------------------------------------------------ Total amount of debt outstanding (in thousands) $64,000 $64,000 $67,000 $69,000 $69,000 $69,000 Asset coverage per indebtedness (in thousands) $ 3,211 $ 3,395 $ 3,487 $ 3,488 $ 3,335 $ 3,506 ====================================================================================================================================
* The amount of distributions made to shareowners during the period were in excess of the net investment income earned by the Trust during the period. The Trust has accumulated undistributed net investment income which is part of the Trust's NAV. A portion of the accumulated net investment income was distributed to shareowners during the period. A decrease in distributions may have a negative effect on the market value of the Trust's shares. (a) The per common share data presented above is based upon the average common shares outstanding for the periods presented. (b) Net asset value and market value are published in Barron's on Saturday, The Wall Street Journal on Monday and The New York Times on Monday and Saturday. (c) Total investment return is calculated assuming a purchase of common shares at the current market value on the first day and a sale at the current market value on the last day of the periods reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Past performance is not a guarantee of future results. (d) Not annualized. (e) Expense ratios do not reflect the effect of distribution payments to preferred shareowners. (f) Includes interest expense of 0.46%, 0.43%, 0.45%, 0.48%, 0.56% and 0.58%, respectively. (g) Annualized. The accompanying notes are an integral part of these financial statements. 50 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 Notes to Financial Statements | 10/31/15 (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 seek a high level of current income and the Trust may, as a secondary objective, also seek capital appreciation to the extent that it is consistent with its investment objective. The Trust's financial statements have been prepared in conformity with U.S. generally accepted accounting principles that require the management of the Trust to, among other things, make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income, expenses and gain or loss on investments during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements: A. Security Valuation Security transactions are recorded as of trade date. Fixed-income securities 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. Senior floating rate loan interests (senior loans) 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. Event-linked bonds are valued at the bid price obtained from an independent third party pricing service. Other insurance-linked securities may be valued at the bid price obtained from an independent pricing service, or through a third party using a pricing matrix, insurance industry valuation models, or other fair value methods or techniques to provide an estimated value of the instrument. 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 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 51 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. 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 New York Stock Exchange (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 senior loans for which independent pricing services are unable to supply prices or for which market prices and/or quotations are not readily available or are considered to be unreliable are valued by a fair valuation team comprised of certain personnel of Pioneer Investment Management, Inc. (PIM), the Trust's investment adviser, pursuant to procedures adopted by the Trust's Board of Trustees. PIM's fair valuation team uses fair value methods approved by the Valuation Committee of the Board of Trustees. PIM's valuation team is responsible for monitoring developments that may impact fair valued securities and for discussing and assessing fair value on an ongoing basis, and at least quarterly, with the Valuation Committee of the Board of Trustees. Inputs used when applying fair value methods to value a security may include credit ratings, the financial condition of the company, current market conditions and comparable securities. The Trust may use fair value methods if it is determined that a significant event has occurred after the close of the exchange or market on which the security trades and prior to the determination of the Trust's net asset value. Examples of a significant event might include political or economic news, corporate restructurings, natural disasters, terrorist activity or trading halts. Thus, the valuation of the Trust's securities may differ significantly from exchange prices and such differences could be material. At October 31, 2015, seven securities were valued using fair value methods (in addition to securities valued using prices supplied by independent pricing services, broker-dealers or through a third party insurance industry valuation model) representing 3.6% of net assets. The value of these fair valued securities are $5,051,634. B. Investment Income and Transactions Dividend income is recorded on the ex-dividend date, except that certain dividends from foreign securities where the ex-dividend date may have passed are recorded as soon as the Trust becomes aware of the ex-dividend date in the exercise of reasonable diligence. 52 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 Interest income, including interest on income bearing cash accounts, is recorded on an accrual basis, net of unrecoverable foreign taxes withheld at the applicable country rates. Discounts and premiums on purchase prices of debt securities are accreted or amortized, respectively, daily, into interest income on an effective yield to maturity basis with a corresponding increase or decrease in the cost basis of the security. Premiums and discounts related to certain mortgage-backed securities are amortized or accreted in proportion to the monthly paydowns. Gains and losses on sales of investments are calculated on the identified cost method for both financial reporting and federal income tax purposes. C. Foreign Currency Translation The books and records of the Trust are maintained in U.S. dollars. Amounts denominated in foreign currencies are translated into U.S. dollars using current exchange rates. Net realized gains and losses on foreign currency transactions, if any, represent, among other things, the net realized gains and losses on foreign currency contracts, disposition of foreign currencies and the difference between the amount of income accrued and the U.S. dollars actually received. Further, the effects of changes in foreign currency exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in the market price of those securities but are included with the net realized and unrealized gain or loss on investments. D. Forward Foreign Currency Contracts The Trust may enter into forward foreign currency contracts (contracts) for the purchase or sale of a specific foreign currency at a fixed price on a future date. All contracts are marked to market daily at the applicable exchange rates, and any resulting unrealized appreciation or depreciation are recorded in the Trust's financial statements. The Trust records realized gains and losses at the time a contract is offset by entry into a closing transaction or extinguished by delivery of the currency. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of the contracts and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar (see Note 5). E. Federal Income Taxes It is the Trust's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net taxable income and net realized capital gains, if any, to its shareowners. Therefore, no federal income tax provision is required. As of Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 53 April 30, 2015, the Trust did not accrue any interest or penalties with respect to uncertain tax positions, which if applicable, would be recorded as an income tax expense in the Statement of Operations. Tax returns filed within the prior three years remain subject to examination by federal and state tax authorities. 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 and tax purposes. Capital accounts within the financial statements are adjusted for permanent book/tax differences to reflect tax character, but are not adjusted for temporary differences. The tax character of current year distributions payable to shareholders will be determined at the end of the current taxable year. The tax character of distributions paid to shareowners during the year ended April 30, 2015 was as follows:
--------------------------------------------------------------------------- 2015 --------------------------------------------------------------------------- Distributions paid from: Ordinary income $15,241,784 --------------------------------------------------------------------------- Total $15,241,784 ===========================================================================
The following shows the components of distributable earnings (losses) on a federal income tax basis at April 30, 2015:
--------------------------------------------------------------------------- 2015 --------------------------------------------------------------------------- Distributable earnings: Undistributed ordinary income $ 1,318,771 Capital loss carryforward (33,249,374) Late year loss deferrals (6,572,661) Other book/tax temporary differences (1,811,057) Unrealized depreciation (1,053,521) --------------------------------------------------------------------------- Total $(41,367,842) ===========================================================================
The difference between book-basis and tax-basis unrealized depreciation is primarily attributable to the realization for tax purposes of unrealized gains on investments in passive foreign investment companies, the book/tax differences in the accrual of income on securities in default, the difference between book and tax amortization methods and discounts on fixed income securities and book/tax temporary differences. 54 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 F. Insurance Linked Securities Event-linked bonds are floating rate debt obligations for which the return of principal and the payment of interest are contingent on the non-occurrence of a pre-defined "trigger" event, such as a hurricane or an earthquake of a specific magnitude. The trigger event's magnitude may be based on losses to a company or industry, industry indexes or readings of scientific instruments, or may be based on specified actual losses. If a trigger event, as defined within the terms of an event-linked bond occurs, the fund may lose a portion or all of its accrued interest and/or principal invested in such event-linked bond. The fund is entitled to receive principal and interest payments so long as no trigger event occurs of the description and magnitude specified by the instrument. In addition to the specified trigger events, event-linked bonds may expose the Fund to other risks, including but not limited to issuer (credit) default, adverse regulatory or jurisdictional interpretations and adverse tax consequences. The Fund's investments in ILS may include special purpose vehicles ("SPVs") or similar instruments structured to comprise a portion of a reinsurer's catastrophe-oriented business, known as quota share instruments (sometimes referred to as reinsurance sidecars), or to provide reinsurance relating to specific risks to insurance or reinsurance companies through a collateralized instrument, known as collateralized reinsurance. Structured reinsurance investments also may include industry loss warranties ("ILWs"), are subject to the same risks as event-linked bonds. In addition, because quota share instruments represent an interest in a basket of underlying reinsurance contracts, the Fund has limited transparency into the individual underlying contracts and therefore must rely upon the risk assessment and sound underwriting practices of the issuer. Accordingly, it may be more difficult for PIM to fully evaluate the underlying risk profile of the Fund's investment in quota share instruments and therefore place the Fund's assets at greater risk of loss than if PIM had more complete information. Quota share instruments and other structured reinsurance instruments generally will be considered illiquid securities by the Fund. These securities may be impossible or difficult to purchase, sell or unwind. Illiquid securities also may be difficult to value. If the Fund is forced to sell an illiquid asset, the Fund may be forced to sell at a loss. G. Risks Information regarding the Trust's principal risks is contained in the Trust's original offering prospectus, with additional information included in the Trust's shareowner reports issued from time to time. Please refer to those documents when considering the Trust's principal risks. At times, the Trust's investments may represent industries or industry sectors that are interrelated Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 55 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 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. The Trust's investments in certain foreign markets or countries with limited developing markets may subject the Trust to a greater degree of risk than in a developed market. These risks include disruptive political or economic conditions and the possible imposition of adverse governmental laws or currency exchange restrictions. H. Repurchase Agreements Repurchase agreements are arrangements under which the Trust purchases securities from a broker-dealer or a bank, called the counterparty, upon the agreement of the counterparty to repurchase the securities from the Trust at a later date, and at a specific price, which is typically higher than the purchase price paid by the Trust. The securities purchased serve as the Trust's collateral for the obligation of the counterparty to repurchase the securities. The value of the collateral, including accrued interest, is required to be equal to or in excess of the repurchase price. The collateral for all repurchase agreements is held in safekeeping in the customer-only account of the Trust's custodian or a subcustodian of the Trust. The Trust's investment adviser, PIM is responsible for determining that the value of the collateral remains at least equal to the repurchase price. In the event of a default by the counterparty, the Trust is entitled to sell the securities, but the Trust may not be able to sell them for the price at which they were purchased, thus causing a loss to the Trust. 56 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 Additionally, if the counterparty becomes insolvent, there is some risk that the Trust will not have a right to the securities, or the immediate right to sell the securities. I. Automatic Dividend Reinvestment Plan All common shareowners whose shares are registered in their own names automatically participate in the Automatic Dividend Reinvestment Plan (the Plan), under which participants receive all dividends and capital gain distributions (collectively, dividends) in full and fractional common shares of the Trust in lieu of cash. Shareowners may elect not to participate in the Plan. Shareowners not participating in the Plan receive all dividends and capital gain distributions in cash. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notifying American Stock Transfer & Trust Company, the agent for shareowners in administering the Plan (the Plan Agent), in writing prior to any dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution. If a shareowner's shares are held in the name of a brokerage firm, bank or other nominee, the shareowner can ask the firm or nominee to participate in the Plan on the shareowner's behalf. If the firm or nominee does not offer the Plan, dividends will be paid in cash to the shareowner of record. A firm or nominee may reinvest a shareowner's cash dividends in common shares of the Trust on terms that differ from the terms of the Plan. Whenever the Trust declares a dividend on common shares payable in cash, participants in the Plan will receive the equivalent in common shares acquired by the Plan Agent either (i) through receipt of additional unissued but authorized common shares from the Trust or (ii) by purchase of outstanding common shares on the New York Stock Exchange or elsewhere. If, on the payment date for any dividend, the net asset value per common share is equal to or less than the market price per share plus estimated brokerage trading fees (market premium), the Plan Agent will invest the dividend amount in newly issued common shares. The number of newly issued common shares to be credited to each account will be determined by dividing the dollar amount of the dividend by the net asset value per common share on the date the shares are issued, provided that the maximum discount from the then current market price per share on the date of issuance does not exceed 5%. If, on the payment date for any dividend, the net asset value per common share is greater than the market value (market discount), the Plan 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, Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 57 each participant will pay a pro rata share of brokerage trading fees incurred with respect to the Plan Agent's open-market purchases. Participating in the Plan does not relieve shareowners from any federal, state or local taxes which may be due on dividends paid in any taxable year. Shareowners holding Plan shares in a brokerage account may be able to transfer the shares to another broker and continue to participate in the Plan. 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 six months ended October 31, 2015, the net management fee was 0.85% (annualized) of the Trust's average daily managed assets, which was equivalent to 1.21% (annualized) 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, 2015, $232,937 was payable to PIM related to management costs, administrative costs and certain other services is included in "Due to affiliates" and "Administration fee payable" on the Statement of Assets and Liabilities. 3. Transfer Agent Prior to November 2, 2015, 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 (AST), provided substantially all transfer agent and shareowner services related to the Trust's common shares at negotiated rates. In addition, the Trust reimbursed PIMSS for out-of-pocket expenses incurred by PIMSS related to shareowner communications activities such as proxy and statement mailings and outgoing calls. Effective November 2, 2015, AST serves as the transfer agent with respect to the Trust's common shares. The Trust pays AST an annual fee, as is agreed to from time to time by the Trust and AST, for providing such services. 58 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 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, 2015, the Trust expenses were not reduced under such arrangement. 5. Forward Foreign Currency Contracts At October 31, 2015, the Trust had entered into various forward foreign currency contracts that obligate the Trust to deliver or take delivery of currencies at specified future maturity dates. Alternatively, prior to the settlement date of a forward foreign currency contract, the Trust may close out such contract by entering into an offsetting contract. The average value of contracts open during the six months ended October 31, 2015 was $(172,873). Open foreign currency contracts at October 31, 2015, were as follows:
------------------------------------------------------------------------------------------------- In Net Currency Currency Exchange Settlement Unrealized Sold Deliver Purchased for Counterparty Date Appreciation ------------------------------------------------------------------------------------------------- Japanese 150,799,195 USD 1,258,023 Brown Brothers 11/25/15 $8,359 Yen (JPY) Harriman & Co. ------------------------------------------------------------------------------------------------- Total $8,359 =================================================================================================
---------------------------------------------------------------------------------------------- In Net Currency Currency Exchange Settlement Unrealized Sold Deliver Purchased for Counterparty Date Depreciation ---------------------------------------------------------------------------------------------- British 122,786 USD 189,278 Brown Brothers 12/29/15 $ (122) Pound Harriman & Co. Sterling (GBP) British 123,264 USD 188,729 Citibank NA 11/3/15 (1,449) Pound Sterling (GBP) Euro (EUR) 6,010,882 USD 6,541,502 Societe General 4/27/16 (99,703) Mexican 6,340,000 USD 373,806 Societe General 11/23/15 (9,777) Peso (MXN) Russian 5,515,000 USD 84,577 JP Morgan 11/06/15 (1,715) Ruble Chase Bank (RUB) USD 540,694 Euro (EUR) 485,000 Societe General 4/27/16 (4,836) ---------------------------------------------------------------------------------------------- Total $(117,602) ==============================================================================================
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 59 6. Assets and Liabilities Offsetting The Trust has entered into an International Swaps and Derivatives Association, Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with substantially all its derivative counterparties. An ISDA Master Agreement is a bilateral agreement between the Trust and a counterparty that governs the trading of certain OTC derivatives and typically contains, among other things, close-out and set-off provisions which apply upon the occurrence of event of a default and/or termination event as defined under the relevant ISDA Master Agreement. The ISDA Master Agreement may also give a party the right to terminate all transactions traded under such agreement if, among other things, there is deterioration in the credit quality of the other party. Upon an event of default or a termination of the ISDA Master Agreement, the non-defaulting party has the right to close out all transactions under such agreement and to net amounts owed under each transaction to determine one net amount payable by one party to the other. The right to close out and net payments across all transactions under the ISDA Master Agreement could result in a reduction of the Trust's credit risk to its counterparty equal to any amounts payable by the Trust under the applicable transactions, if any. However, the Trust's right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific ISDA counterparty is subject. The collateral requirements for derivatives transactions under an ISDA Master Agreement are governed by a credit support annex to the ISDA Master Agreement. Collateral requirements are generally determined at the close of business each day and are typically based on changes in market values for each transaction under an ISDA Master Agreement and netted into one amount for such agreement. Generally, the amount of collateral due from or to a counterparty is subject to threshold (a "minimum transfer amount") before a transfer is required, which may vary by counterparty. Collateral pledged for the benefit of the Trust and/or counterparty is held in segregated accounts by the Trust's custodian and cannot be sold, re-pledged, assigned or otherwise used while pledged. Cash that has been segregated to cover the Trust's collateral obligations, if any, will be reported separately in the Statement of Assets and Liabilities as "Futures collateral", "Swap collateral " or "Deposit with broker." Securities pledged by the Trust as collateral, if any, are identified as such in the Schedule of Investments. Financial instruments subject to an enforceable master netting agreement such as an ISDA Master Agreement have been offset on the Statement of Assets and Liabilities. The following charts show gross assets and liabilities of the Trust as of October 31, 2015: 60 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
----------------------------------------------------------------------------------------------------- Derivative Assets Subject to Derivatives Non-Cash Cash Net Amount Master Netting Available Collateral Collateral of Derivative Counterparty Agreement for Offset Received (a) Received (a) Assets (b) ----------------------------------------------------------------------------------------------------- Brown Brothers $8,359 $(122) $ -- $ -- $8,237 Harriman & Co. ----------------------------------------------------------------------------------------------------- Total $8,359 $(122) $ -- $ -- $8,237 =====================================================================================================
------------------------------------------------------------------------------------------------------ Derivative Liabilities Subject to Derivatives Non-Cash Cash Net Amount Master Netting Available for Collateral Collateral of Derivative Counterparty Agreement Offset Pledged (a) Pledged (a) Liabilities (c) ------------------------------------------------------------------------------------------------------ Brown Brothers $ 122 $ (122) $ -- $ -- $ -- Harriman & Co. Citibank NA 1,449 -- -- -- 1,449 JP Morgan Chase 1,715 -- -- -- 1,715 Bank Societe General 114,316 -- -- -- 114,316 ------------------------------------------------------------------------------------------------------ Total $ 117,602 $ (122) $ -- $ -- $117,480 ======================================================================================================
(a) The amount presented here may be less than the total amount of collateral received/pledged as the net amount of derivative assets and liabilities cannot be less than $0. (b) Represents the net amount due from the counterparty in the event of default. (c) Represents the net amount payable to the counterparty in the event of default. 7. Bridge Loan Commitments Bridge loans are designed to provide temporary or "bridge" financing to a borrower pending the sale of identified assets or the arrangement of longer-term loans or the issuance and sale of debt obligations. As of October 31, 2015, the Trust had one bridge loan commitment of $1,085,000, which could be extended at the option of the borrower, pursuant to the following loan agreement:
-------------------------------------------------------------------------------------- Unrealized Appreciation Borrower Par Cost Value (Depreciation) -------------------------------------------------------------------------------------- Charter Communications $1,085,000 $1,085,000 $1,085,000 $ -- ======================================================================================
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 61 8. Trust Shares There are an unlimited number of common shares of beneficial interest authorized. Transactions in common shares of beneficial interest for the six months ended October 31, 2015 and the year ended April 30, 2015 were as follows:
-------------------------------------------------------------------------------- 10/31/15 (unaudited) 4/30/15 -------------------------------------------------------------------------------- Shares outstanding at beginning of period 8,332,790 8,320,167 Reinvestment of distributions -- 12,623 -------------------------------------------------------------------------------- Shares outstanding at end of period 8,332,790 8,332,790 ================================================================================
9. Additional Disclosures about Derivative Instruments and Hedging Activities The Trust's use of derivatives subjects it to the following risks: Interest rate risk relates to the fluctuations in the value of interest-bearing securities due to changes in the prevailing levels of market interest rates. Credit risk relates to the ability of the issuer of a financial instrument to make further principal or interest payments on an obligation or commitment that it has to the Trust. Foreign exchange rate risk relates to fluctuations in the value of an asset or liability due to changes in currency exchange rates. Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. Commodity risk relates to the risk that the value of a commodity or commodity index will fluctuate based on increases or decreases in the commodities market and factors specific to a particular industry or commodity. The fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) by risk exposure at October 31, 2015 was as follows: 62 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15
------------------------------------------------------------------------------------- Statement of Assets and Liabilities Interest Credit Foreign Equity Commodity Caption Rate Risk Risk Exchange Risk Risk Risk ------------------------------------------------------------------------------------- Assets: Unrealized appreciation on forward foreign currency contracts $ -- $ -- $8,359 $ -- $ -- ------------------------------------------------------------------------------------- Total Value $ -- $ -- $8,359 $ -- $ -- ===================================================================================== Liabilities: Unrealized depreciation on forward foreign currency contracts $ -- $ -- $(117,602) $ -- $ -- ------------------------------------------------------------------------------------- Total Value $ -- $ -- $(117,602) $ -- $ -- =====================================================================================
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations by risk exposure at October 31, 2015 was as follows:
------------------------------------------------------------------------------------- Statement of Operations Interest Credit Foreign Equity Commodity Caption Rate Risk Risk Exchange Risk Risk Risk ------------------------------------------------------------------------------------- Net realized gain (loss): Forward foreign currency contracts $ -- $ -- $(10,030) $ -- $ -- ------------------------------------------------------------------------------------- Total Value $ -- $ -- $(10,030) $ -- $ -- ===================================================================================== Change in net unrealized appreciation (depreciation) on: Unrealized appreciation on forward foreign currency contracts $ -- $ -- $(157,793) $ -- $ -- ------------------------------------------------------------------------------------- Total Value $ -- $ -- $(157,793) $ -- $ -- =====================================================================================
10. Margin Loan Financing The Trust has entered into credit agreement with the Bank of Nova Scotia. There is a $75 million borrowing limit. At October 31, 2015, the Trust had a borrowing outstanding under the credit agreement totaling $64,000,000. The interest rate charged at October 31, 2015 was 1.06%. During the six months ended October 31, 2015, the average daily balance was $64,000,000 at an average interest rate of 1.06%. With respect to the credit agreement, interest expense of $343,300 is included in the Statement of Operations. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 63 The Trust is required to maintain 300% asset coverage with respect to amounts outstanding under the credit agreement. Asset coverage is calculated by subtracting the Trust's total liabilities not including any bank loans and senior securities, from the Trust's total assets and dividing such amount by the principal amount of the borrowing outstanding. 11. Subsequent Events A monthly dividend was declared on November 3, 2015 from undistributed and accumulated net investment income of $0.1150 per common share payable November 30, 2015, to common shareowners of record on November 18, 2015. ADDITIONAL INFORMATION During the period, there have been no material changes in the Trust's investment objective or fundamental policies that have not been approved by the shareowners. There have been no changes in the Trust's charter or By-Laws that would delay or prevent a change in control of the Trust which has not been approved by the shareowners. During the period, there have been no changes in the principal risk factors associated with investment in the Trust. There were no changes in the persons who are primarily responsible for the day-to-day management of the Trust's portfolio. Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Trust may purchase, from time to time, its common shares in the open market. PIM, the Trust's investment adviser, is currently an indirect, wholly owned subsidiary of UniCredit. On November 11, 2015, UniCredit announced that it signed a binding master agreement with Banco Santander and affiliates of Warburg Pincus and General Atlantic (the "Private Equity Firms") with respect to Pioneer Investments ("Pioneer") and Santander Asset Management ("SAM") (the "Transaction"). The Transaction, as previously announced by UniCredit, will establish a holding company, with the name Pioneer Investments, to be owned by UniCredit (50%) and the Private Equity Firms (50% between them). The holding company will control Pioneer's U.S. operations, including PIM. The holding company also will own 66.7% of Pioneer's and SAM's combined operations outside the U.S., while Banco Santander will own directly the remaining 33.3% stake. The closing of the Transaction is expected to happen in 2016, subject to certain regulatory and other approvals. 64 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 Under the Investment Company Act of 1940, completion of the Transaction will cause the Trust's current investment advisory agreement with PIM to terminate. Accordingly, the Trust's Board of Trustees will be asked to approve a new investment advisory agreement. If approved by the Board, the Trust's new investment advisory agreement will be submitted to the shareholders of the Trust for their approval. Results of Shareholder Meeting (unaudited) At the annual meeting of shareowners held on September 22, 2015, 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 three Class II Trustees and two Class III Trustees.
-------------------------------------------------------------------------------- Nominee For Withheld -------------------------------------------------------------------------------- Class II Thomas J. Perna 6,473,199 216,006 Marguerite A. Piret 6,447,738 241,467 Fred J. Ricciardi 6,476,335 212,870 Class III Lisa M. Jones 6,458,071 231,134 Lorraine H. Monchak 6,450,240 238,965
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 65 Approval of Investment Advisory Agreement Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to Pioneer Diversified High Income Trust (the Trust) pursuant to an investment advisory agreement between PIM and the Trust. In order for PIM to remain the investment adviser of the Trust, the Trustees of the Trust must determine annually whether to renew the investment advisory agreement for the Trust. The contract review process began in January 2015 as the Trustees of the Trust agreed on, among other things, an overall approach and timeline for the process. Contract review materials were provided to the Trustees in March 2015 and July 2015. Supplemental contract review materials were provided to the Trustees in September 2015. In addition, the Trustees reviewed and discussed the Trust's performance at regularly scheduled meetings throughout the year, and took into account other information related to the Trust provided to the Trustees at regularly scheduled meetings, in connection with the review of the Trust's investment advisory agreement. In March 2015, the Trustees, among other things, discussed the memorandum provided by Trust counsel that summarized the legal standards and other considerations that are relevant to the Trustees in their deliberations regarding the renewal of the investment advisory agreement, and reviewed and discussed the qualifications of the investment management teams, as well as the level of investment by the Trust's portfolio managers in the Trust. In July 2015, the Trustees, among other things, reviewed the Trust's management fee and total expense ratios, the financial statements of PIM and its parent companies, the profitability analyses provided by PIM, and possible economies of scale. The Trustees also reviewed the profitability of the institutional business of PIM and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with PIM, "Pioneer"), as compared to that of PIM's fund management business, and considered the differences between the fees and expenses of the Trust and the fees and expenses of Pioneer's institutional accounts, as well as the different services provided by PIM to the Trust and by Pioneer to the institutional accounts. The Trustees further considered contract review materials in September 2015. At a meeting held on September 15, 2015, based on their evaluation of the information provided by PIM and third parties, the Trustees of the Trust, including the Independent Trustees voting separately, unanimously approved the renewal of the investment advisory agreement for another year. In approving the renewal of the investment advisory agreement, the Trustees considered various factors that they determined were relevant, including the factors described below. The Trustees did not identify any single factor as the controlling factor in determining to approve the renewal of the agreement. 66 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 Nature, Extent and Quality of Services The Trustees considered the nature, extent and quality of the services that had been provided by PIM to the Trust, taking into account the investment objective and strategy of the Trust. The Trustees also reviewed PIM's investment approach for the Trust and its research process. The Trustees considered the resources of PIM and the personnel of PIM who provide investment management services to the Trust. They also reviewed the amount of non-Trust assets managed by the portfolio managers of the Trust. The Trustees considered the non-investment resources and personnel of PIM involved in PIM's services to the Trust, including PIM's compliance and legal resources and personnel. The Trustees noted the substantial attention and high priority given by PIM's senior management to the Pioneer fund complex. The Trustees considered that PIM supervises and monitors the performance of the Trust's service providers and provides the Trust with personnel (including Trust officers) and other resources that are necessary for the Trust's business management and operations. The Trustees also considered that, as administrator, PIM is responsible for the administration of the Trust's business and other affairs. The Trustees considered the fees paid to PIM for the provision of administration services. Based on these considerations, the Trustees concluded that the nature, extent and quality of services that had been provided by PIM to the Trust were satisfactory and consistent with the terms of the investment advisory agreement. Performance of the Trust In considering the Trust's performance, the Trustees regularly review and discuss throughout the year data prepared by PIM and information comparing the Trust's performance with the performance of its peer group of funds as classified by each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of the Trust's benchmark index. They also discuss the Trust's performance with PIM on a regular basis. The Trustees' regular reviews and discussions were factored into the Trustees' deliberations concerning the renewal of the advisory agreement. The Trustees indicated that the Trust's performance, when considered in connection with the various other factors, was consistent with the renewal of the investment advisory agreement. Management Fee and Expenses The Trustees considered information showing the fees and expenses of the Trust in comparison to the management fees and the expense ratios of a peer group of funds selected on the basis of criteria determined by the Independent Trustees for this purpose using data provided by Strategic Insight Mutual Fund Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 67 Research and Consulting, LLC (Strategic Insight), an independent third party. In all quintile rankings referred to below, first quintile is most favorable to the Trust's shareowners. The Trustees considered that the Trust's management fee (based on managed assets) for the most recent fiscal year was in the second quintile relative to the management fees paid by other funds in its Strategic Insight peer group for the comparable period. The Trustees considered that the expense ratio (based on managed assets) of the Trust's common shares for the most recent fiscal year was in the second quintile relative its Strategic Insight peer group for the comparable period. The Trustees reviewed management fees charged by Pioneer to institutional and other clients, including publicly offered European funds sponsored by affiliates of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory capacity), and unaffiliated foreign and domestic separate accounts. The Trustees also considered PIM's costs in providing services to the Trust and Pioneer's costs in providing services to the other clients and considered the differences in management fees and profit margins for Trust and non-Trust services. In evaluating the fees associated with Pioneer's client accounts, the Trustees took into account the respective demands, resources and complexity associated with the Trust and client accounts. The Trustees noted that, in some instances, the fee rates for those clients were lower than the management fee for the Trust and considered that, under the investment advisory agreement with the Trust, PIM performs additional services for the Trust that it does not provide to those other clients or services that are broader in scope, including oversight of the Trust's other service providers and activities related to compliance and the extensive regulatory and tax regimes to which the Trust is subject. The Trustees also considered the different entrepreneurial risks associated with PIM's management of the Trust and Pioneer's management of the other client accounts. The Trustees concluded that the management fee payable by the Trust to PIM was reasonable in relation to the nature and quality of the services provided by PIM to the Trust. Profitability The Trustees considered information provided by PIM regarding the profitability of PIM with respect to the advisory services provided by PIM to the Trust, including the methodology used by PIM in allocating certain of its costs to the management of the Trust. The Trustees also considered PIM's profit margin in connection with the overall operation of the Trust. They further reviewed the financial results realized by PIM and its affiliates from 68 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 non-fund businesses. The Trustees considered PIM's profit margins with respect to the Trust in comparison to the limited industry data available and noted that the profitability of any adviser was affected by numerous factors, including its organizational structure and method for allocating expenses. The Trustees concluded that PIM's profitability with respect to the management of the Trust was not unreasonable. Economies of Scale The Trustees considered the extent to which PIM may realize economies of scale or other efficiencies in managing and supporting the Trust. Since the Trust is a closed-end fund that has not raised additional capital, the Trustees concluded that economies of scale were not a relevant consideration in the renewal of the investment advisory agreement. Other Benefits The Trustees considered the other benefits to PIM from its relationship with the Trust. The Trustees considered the character and amount of fees paid by the Trust, other than under the investment advisory agreement, for services provided by PIM and its affiliates. The Trustees further considered the revenues and profitability of PIM's businesses other than the fund business. Pioneer is the principal U.S. asset management business of Pioneer Global Asset Management, the worldwide asset management business of UniCredit Group, which manages over $150 billion in assets (including the Funds). Pioneer and the Funds receive reciprocal intangible benefits from the relationship, including mutual brand recognition and, for the Funds, direct and indirect access to the resources of a large global asset manager. The Trustees concluded that any such benefits received by Pioneer as a result of its relationship with the Funds were reasonable and their consideration of the advisory agreement between the Trust and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of any such intangible benefits. Conclusion After consideration of the factors described above as well as other factors, the Trustees, including all of the Independent Trustees, concluded that the investment advisory agreement between PIM and the Trust, including the fees payable thereunder, was fair and reasonable and voted to approve the proposed renewal of the investment advisory agreement for the Trust. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 69 Trustees, Officers and Service Providers Trustees Officers Thomas J. Perna, Chairman Lisa M. Jones, President and Chief David R. Bock Executive Officer Benjamin M. Friedman Mark E. Bradley, Treasurer and Margaret B.W. Graham Chief Financial Officer Lisa M. Jones Christopher J. Kelley, Secretary and Lorraine H. Monchak Chief Legal Officer Marguerite A. Piret Fred J. Ricciardi Kenneth J. Taubes Investment Adviser and Administrator Pioneer Investment Management, Inc. Custodian and Sub-Administrator Brown Brothers Harriman & Co. Principal Underwriter Pioneer Funds Distributor, Inc. Legal Counsel Morgan, Lewis & Bockius LLP Transfer Agent American Stock Transfer & Trust Company Proxy Voting Policies and Procedures of the Fund are available without charge, upon request, by calling our toll free number (1-800-225-6292). Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is publicly available to shareowners at us.pioneerinvestments.com. This information is also available on the Securities and Exchange Commission's web site at www.sec.gov. 70 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 This page for your notes. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 71 This page for your notes. 72 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 This page for your notes. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 73 This page for your notes. 74 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 This page for your notes. Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 75 76 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/15 How to Contact Pioneer We are pleased to offer a variety of convenient ways for you to contact us for assistance or information. You can call American Stock Transfer & Trust Company (AST) for: -------------------------------------------------------------------------------- Account Information 1-800-710-0935 Or write to AST: -------------------------------------------------------------------------------- For Write to General inquiries, lost dividend checks, American Stock change of address, lost stock certificates, Transfer & Trust stock transfer Operations Center 6201 15th Ave. Brooklyn, NY 11219 Dividend reinvestment plan (DRIP) American Stock Transfer & Trust Wall Street Station P.O. Box 922 New York, NY 10269-0560 Website www.amstock.com For additional information, please contact your investment advisor or visit our web site us.pioneerinvestments.com. The Trust files a complete schedule of investments with the Securities and Exchange Commission for the first and third quarters for each fiscal year on Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's web site at www.sec.gov. The filed form may also be viewed and copied at the Commission's Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330. [LOGO] PIONEER Investments(R) Pioneer Investment Management, Inc. 60 State Street Boston, MA 02109 us.pioneerinvestments.com Securities offered through Pioneer Funds Distributor, Inc. 60 State Street, Boston, MA 02109 Underwriter of Pioneer Mutual Funds, Member SIPC (C) 2015 Pioneer Investments 21398-08-1215 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. Not applicable. (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. Not applicable. (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. Not applicable. (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. Not applicable. (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. Not applicable. (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. Not applicable. (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. Not applicable. (h) Disclose whether the registrants audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrants investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. The Fund's audit committee of the Board of Trustees has considered whether the provision of non-audit services that were rendered to the Affiliates (as defined) that were not pre- approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS (a) If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act (17 CFR 240.10A-3), state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has such a committee, however designated, identify each committee member. If the entire board of directors is acting as the registrant's audit committee as specified in Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state. N/A (b) If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption from the listing standards for audit committees. N/A ITEM 6. SCHEDULE OF INVESTMENTS. File Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period as set forth in 210.1212 of Regulation S-X [17 CFR 210.12-12], unless the schedule is included as part of the report to shareholders filed under Item 1 of this Form. Included in Item 1 ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. A closed-end management investment company that is filing an annual report on this Form N-CSR must, unless it invests exclusively in non-voting securities, describe the policies and procedures that it uses to determine how to vote proxies relating to portfolio securities, including the procedures that the company uses when a vote presents a conflict between the interests of its shareholders, on the one hand, and those of the company's investment adviser; principal underwriter; or any affiliated person (as defined in Section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules thereunder) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the company's investment adviser, or any other third party, that the company uses, or that are used on the company's behalf, to determine how to vote proxies relating to portfolio securities. Not applicable to semi-annual report. 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 report. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. (a) If the registrant is a closed-end management investment company, in the following tabular format, provide the information specified in paragraph (b) of this Item with respect to any purchase made by or on behalf of the registrant or any affiliated purchaser, as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares or other units of any class of the registrant's equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. 781). During the period covered by this report, there were no purchases made by or on behalf of the registrant or any affiliated purchaser as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934 (the Exchange Act), of shares of the registrants equity securities that are registered by the registrant pursuant to Section 12 of the Exchange Act. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Describe any material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15)) of Schedule 14A (17 CFR 240.14a-101), or this Item. There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant's board of directors since the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A) in its definitive proxy statement, or this item. ITEM 11. CONTROLS AND PROCEDURES. (a) Disclose the conclusions of the registrant's principal executive and principal financials officers, or persons performing similar functions, regarding the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)). The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures are effective based on the evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. (b) Disclose any change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that occured during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. There were no significant changes in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. The registrant's principal executive officer and principal financial officer, however, voluntarily are reporting the following information: In August of 2006 the registrant's investment adviser enhanced its internal procedures for reporting performance information required to be included in prospectuses. Those enhancements involved additional internal controls over the appropriateness of performance data generated for this purpose. Such enhancements were made following an internal review which identified prospectuses relating to certain classes of shares of a limited number of registrants where, inadvertently, performance information not reflecting the deduction of applicable sales charges was included. Those prospectuses were revised, and the revised prospectuses were distributed to shareholders. ITEM 12. EXHIBITS. (a) File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit. (2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) , exactly as set forth below: Filed herewith. SIGNATURES [See General Instruction F] Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Pioneer Diversified High Income Trust By (Signature and Title)* /s/ Lisa M. Jones Lisa M. Jones, President & Chief Executive Officer Date December 30, 2015 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Lisa M. Jones Lisa M. Jones, President & Chief Executive Officer Date December 30, 2015 By (Signature and Title)* /s/ Mark Bradley Mark Bradley, Treasurer & Chief Accounting & Financial Officer Date December 30, 2015 * Print the name and title of each signing officer under his or her signature. EX-99 2 cert.txt CERTIFICATIONS -------------- I, Lisa M. Jones, 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, 2015 /s/ Lisa M. Jones Lisa M. Jones President and Chief Executive Officer 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, 2015 /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, 2015 (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, 2015 /s/ Lisa M. Jones Lisa M. Jones President and Chief Executive 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. 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, 2015 (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, 2015 /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 CodeofEthics.txt CODE OF ETHICS FOR SENIOR OFFICERS POLICY This Code of Ethics for Senior Officers (this "Code") sets forth the policies, practices and values expected to be exhibited by Senior Officers of the Pioneer Funds (collectively, the "Funds" and each, a "Fund"). This Code does not apply generally to officers and employees of service providers to the Funds, including Pioneer Investment Management, Inc. ("Pioneer"), unless such officers and employees are also Senior Officers. The term "Senior Officers" shall mean the principal executive officer, principal financial officer, principal accounting officer and controller of the Funds, although one person may occupy more than one such office. Each Senior Officer is identified by title in Exhibit A to this Code. The Chief Compliance Officer ("CCO") of the Pioneer Funds is primarily responsible for implementing and monitoring compliance with this Code, subject to the overall supervision of the Board of Trustees of the Funds (the "Board"). The CCO has the authority to interpret this Code and its applicability to particular situations. Any questions about this Code should be directed to the CCO or his or her designee. PURPOSE The purposes of this Code are to: . Promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; . Promote full, fair, accurate, timely and understandable disclosure in reports and documents that the Fund files with, or submits to, the Securities and Exchange Commission ("SEC") and in other public communications made by the Fund; ------------------------------------------------------------------------------- 1 Last revised January 17, 2014 . Promote compliance with applicable laws and governmental rules and regulations; . Promote the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and . Establish accountability for adherence to the Code. Each Senior Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. RESPONSIBILITIES OF SENIOR OFFICERS Conflicts of Interest A "conflict of interest" occurs when a Senior Officer's private interests interfere in any way - or even appear to interfere - with the interests of or his/her service to a Fund. A conflict can arise when a Senior Officer takes actions or has interests that may make it difficult to perform his or her Fund work objectively and effectively. Conflicts of interest also arise when a Senior Officer or a member of his/her family receives improper personal benefits as a result of the Senior Officer's position with the Fund. Certain conflicts of interest arise out of the relationships between Senior Officers and the Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940, as amended (the "ICA"), and the Investment Advisers Act of 1940, as amended (the "IAA"). For example, Senior Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Funds because of their status as "affiliated persons" of the Funds. The Fund's and Pioneer's compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace such policies and procedures, and such conflicts fall outside of the parameters of this Code. Although typically not presenting an opportunity for improper personal benefit, conflicts arise as a result of the contractual relationship between the Fund and Pioneer because the Senior Officers are officers or employees of both. As a result, this Code recognizes that Senior Officers will, in the normal course of their duties (whether formally for a Fund or for Pioneer, or for both), be involved in establishing policies and implementing decisions that will have different effects on Pioneer and the Fund. The participation of Senior Officers in such activities is inherent in the contractual relationship between a Fund and Pioneer and is consistent with the performance by the Senior Officers of their duties as officers of the Fund and, if addressed in conformity with the provisions of the ICA and the IAA, will be deemed to have been handled ethically. In addition, it is recognized by the Board that Senior Officers may also be officers of investment companies other than the Pioneer Funds. Other conflicts of interest are covered by this Code, even if such conflicts of interest are not subject to provisions of the ICA or the IAA. In reading the following examples of conflicts of interest under this Code, Senior Officers should keep in mind that such a list cannot ever be exhaustive or cover every possible ------------------------------------------------------------------------------- 2 Last revised January 17, 2014 scenario. It follows that the overarching principle is that the personal interest of a Senior Officer should not be placed improperly before the interest of a Fund. Each Senior Officer must: . Not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by a Fund whereby the Senior Officer would benefit personally to the detriment of the Fund; . Not cause a Fund to take action, or fail to take action, for the individual personal benefit of the Senior Officer rather than the benefit of the Fund; and . Report at least annually any affiliations or other relationships that give rise to conflicts of interest. Any material conflict of interest situation should be approved by the CCO, his or her designee or the Board. Examples of these include: . Service as a director on the board of any public or private company; . The receipt of any gift with a value in excess of an amount established from time to time by Pioneer's Business Gift and Entertainment Policy from any single non-relative person or entity. Customary business lunches, dinners and entertainment at which both the Senior Officer and the giver are present, and promotional items of insignificant value are exempt from this prohibition; . The receipt of any entertainment from any company with which a Fund has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; . Any ownership interest in, or any consulting or employment relationship with, any of a Fund's service providers other than its investment adviser, principal underwriter, administrator or any affiliated person thereof; and . A direct or indirect financial interest in commissions, transaction charges or spreads paid by a Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Senior Officer's employment, such as compensation or equity ownership. ------------------------------------------------------------------------------- 3 Last revised January 17, 2014 Corporate Opportunities Senior Officers may not (a) take for themselves personally opportunities that are discovered through the use of a Fund's property, information or position; (b) use a Fund's property, information, or position for personal gain; or (c) compete with a Fund. Senior Officers owe a duty to the Funds to advance their legitimate interests when the opportunity to do so arises. Confidentiality Senior Officers should maintain the confidentiality of information entrusted to them by the Funds, except when disclosure is authorized or legally mandated. Confidential information includes all non-public information that might be of use to competitors, or harmful to the Funds, if disclosed. Fair dealing with Fund shareholders, suppliers, and competitors Senior Officers should endeavor to deal fairly with the Funds' shareholders, suppliers, and competitors. Senior Officers should not take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other unfair-dealing practice. Senior Officers should not knowingly misrepresent or cause others to misrepresent facts about a Fund to others, whether within or outside the Fund, including to the Board, the Funds' auditors or to governmental regulators and self-regulatory organizations. Compliance with Law Each Senior Officer must not knowingly violate any law, rule and regulation applicable to his or her activities as an officer of the Funds. In addition, Senior Officers are responsible for understanding and promoting compliance with the laws, rules and regulations applicable to his or her particular position and by persons under the Senior Officer's supervision. Senior Officers should endeavor to comply not only with the letter of the law, but also with the spirit of the law. Disclosure Each Senior Officer should familiarize himself or herself with the disclosure requirements generally applicable to the Funds. Each Senior Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers of the Funds and Pioneer with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents a Fund files with, or submits to, the SEC and in other public communications made by the Funds. INITIAL AND ANNUAL CERTIFICATIONS Upon becoming a Senior Officer the Senior Officer is required to certify that he or she has received, read, and understands this Code. On an annual basis, each Senior Officer must certify that he or she has complied with all of the applicable requirements of this Code. ------------------------------------------------------------------------------- 4 Last revised January 17, 2014 ADMINISTRATION AND ENFORCEMENT OF THE CODE Report of Violations Pioneer relies on each Senior Officer to report promptly if he or she knows of any conduct by a Senior Officer in violation of this Code. All violations or suspected violations of this Code must be reported to the CCO or a member of Pioneer's Legal and Compliance Department. Failure to do so is itself a violation of this Code. Investigation of Violations Upon notification of a violation or suspected violation, the CCO or other members of Pioneer's Compliance Department will take all appropriate action to investigate the potential violation reported. If, after such investigation, the CCO believes that no violation has occurred, the CCO and Compliance Department is not required to take no further action. Any matter the CCO believes is a violation will be reported to the Independent Trustees. If the Independent Trustees concur that a violation has occurred, they will inform and make a recommendation to the full Board. The Board shall be responsible for determining appropriate action. The Funds, their officers and employees, will not retaliate against any Senior Officer for reports of potential violations that are made in good faith and without malicious intent. The CCO or his or her designee is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. The CCO or his or her designee shall make inquiries regarding any potential conflict of interest. Violations and Sanctions Compliance with this Code is expected and violations of its provisions will be taken seriously and could result in disciplinary action. In response to violations of the Code, the Board may impose such sanctions as it deems appropriate within the scope of its authority over Senior Officers, including termination as an officer of the Funds. Waivers from the Code The Independent Trustees will consider any approval or waiver sought by any Senior Officer. The Independent Trustees will be responsible for granting waivers, as appropriate. Any change to or waiver of this Code will, to the extent required, be disclosed as provided by SEC rules. OTHER POLICIES AND PROCEDURES This Code shall be the sole Code of Ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. The Funds', Pioneer's, and Pioneer Funds Distributor, Inc.'s Codes of Ethics under Rule 17j-1 under the ICA and Rule 204A-1 of the IAA are separate requirements applying to the Senior Officers and others, and are not a part of this Code. To the extent any other policies and procedures of the Funds, Pioneer or Pioneer ------------------------------------------------------------------------------- 5 Last revised January 17, 2014 Fund Distributor, Inc. overlap or conflict with the provisions of the this Code, they are superseded by this Code. SCOPE OF RESPONSIBILITIES A Senior Officer's responsibilities under this Code are limited to Fund matters over which the Senior Officer has direct responsibility or control, matters in which the Senior Officer routinely participates, and matters with which the Senior Officer is otherwise involved. In addition, a Senior Officer is responsible for matters of which the Senior Officer has actual knowledge. AMENDMENTS This Code other than Exhibit A may not be amended except in a writing that is specifically approved or ratified by a majority vote of the Board, including a majority of the Independent Trustees. CONFIDENTIALITY All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Board and their counsel or to Pioneer's Legal and Compliance Department. INTERNAL USE This Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Fund, as to any fact, circumstance, or legal conclusion. ------------------------------------------------------------------------------- 6 Last revised January 17, 2014 EXHIBIT A - SENIOR OFFICERS OF THE PIONEER FUNDS President (Principal Executive Officer) Treasurer (Principal Financial Officer) Code of Ethics for Senior Officers -------------------------------------------------------------------------------