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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21654
Pioneer Floating Rate Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, 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: November 30
Date of reporting period: December 1, 2006 through May 31, 2007
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
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PIONEER
---------
FLOATING
RATE
TRUST
Semiannual
Report
5/31/07
[LOGO]PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Portfolio Summary 4
Prices and Distributions 5
Performance Update 6
Portfolio Management Discussion 7
Schedule of Investments 11
Financial Statements 29
Notes to Financial Statements 33
Trustees, Officers and Service Providers 44
President's
Dear Shareowner,
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Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. Those
were particularly useful guides during the past year, as U.S. and global stock
and bond markets grew strongly during the period.
In the 12 months ending May 31, 2007, global stock markets were supported by
relatively low short-term interest rates and generally strong economies. The
U.S. stock market, as measured by the Standard & Poor's 500 Stock Index, gained
approximately 23% over the 12 month period. International developed and
emerging markets equities performed even better, with MSCI's indexes of those
regions rising approximately 27% and 39%, respectively. The general U.S. bond
market, as measured by the Lehman Brothers Aggregate Bond Index, returned
roughly 7%. The high yield market, as measured by the Merrill Lynch High Yield
Bond Master II Index, returned approximately 13% during the same period.
While still strong, the rate of U.S. economic growth has slowed over the past
year. That was due in large part to a slowdown in new home construction and in
part to the lagging effects of rising energy and commodity prices as well as
rising short-term interest rates. But slowing economic activity is also due in
part to the natural maturation of the cyclical expansion as U.S. factories
approach full utilization and the labor markets approach full employment.
We have enjoyed a cyclical recovery with strong economic growth, and while U.S.
economic growth has slowed, we believe that continuing growth at a slower rate
appears more likely than a recession. The Federal Reserve Board has indicated a
reduced likelihood of future rate hikes, but continues to highlight its
commitment to keeping inflationary pressures contained. This is in keeping with
"best practices" among the world's central banks: low and stable inflation is
believed to be the best backdrop for stable economic growth and low average
unemployment.
In Europe, healthy labor markets are supporting growing consumption and solid
GDP growth, helped by productivity gains and a positive operating environment
for European companies that are finding strong export markets for their goods
and services around the globe. European inflationary pressures appear to be
largely under control, with
2
Letter
the European Central bank remaining strongly vigilant. Japanese economic growth
continues to make progress, and the country has become a more attractive market
as deflationary problems recede. Economic growth in emerging market countries
remains faster than in the developed world as they continue to "catch up."
Leading the way is China, which continues its rise as a world economic power.
Looking forward, we believe that the overall climate for investors generally
will continue to be positive, although valuations are less attractive than they
were a year ago and a correction after a period of strong performance is
possible. Sudden swings in the markets are always to be expected. Just as
staying diversified and invested are important investment principles, it is
also important to pay attention to asset allocation. As always, we encourage
shareholders to work closely with their financial advisor to find the mix of
stocks, bonds and money market assets that is aligned to their particular risk
tolerance and investment objective.
Respectfully,
/s/Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA Inc.
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of the opinion of Trust management 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.
Please consider the Trust's investment objectives, risks, charges and expenses.
Contact your advisor or Pioneer Investments for a prospectus containing this
information. Please read the information carefully.
3
Pioneer Floating Rate Trust
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PORTFOLIO SUMMARY 5/31/07
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL]
Senior Secured Loans 87.2%
Temporary Cash Investment 6.7%
Corporate Bonds 2.6%
Common Stock 1.2%
Claims 1.1%
Convertible Corporate Bonds 1.1%
Warrants 0.1%
Portfolio Quality
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(As a percentage of total investment portfolio; based on S&P ratings)
[THE FOLLOWING DATA WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL]
BB 8.2%
B 66.9%
CCC 6.9%
NR 11.4%
Cash Equivalents 6.6%
10 Largest Holdings
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(As a percentage of long-term holdings)*
1. HCA, Inc., Tranche B Term Loan, 7.6%, 11/18/13 3.02%
2. Univision Communications, Inc., Initial Term Loan, 7.57%, 9/29/14 2.41
3. Seven Media Group, Facility Term Loan A, 2.375% - 8.878%, 12/22/12 2.34
4. Millennium Digital Media Systems, LLC, Facility Term Loan, 8.86% - 8.9%,
6/30/11 1.80
5. Tribune Co., Tranche B Facility Term Loan, 3.0%, 5/17/14 1.71
6. Home Interiors & Gifts, Inc., Initial Term Loan, 10.32% - 12.25%, 3/31/11 1.66
7. Delphi Corp.,Tranche C Second Lien Term Loan, 8.125%, 12/31/07 1.57
8. Sabre, Inc., Initial Term Loan, 7.6% - 7.605%, 9/30/14 1.50
9. Cricket Communications, Inc., Term Loan B-1, 7.6%, 6/16/13 1.43
10. Cequel Communications, LLC, Term Loan, 7.34% - 7.35%, 11/5/13 1.43
* This list excludes temporary cash. 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.
4
Pioneer Floating Rate Trust
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PRICES AND DISTRIBUTIONS
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Share Prices and Distributions
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Market Value 5/31/07 11/30/06
per Common Share $20.31 $18.95
Net Asset Value 5/31/07 11/30/06
per Common Share $19.87 $19.66
Net
Distributions Investment Short-Term Long-Term
per Common Share Income Capital Gains Capital Gains
(12/1/06 - 5/31/07) $1.0350 $ - $0.0038
5
Pioneer Floating Rate Trust
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PERFORMANCE UPDATE 5/31/07
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Investment Returns
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The mountain chart on the right shows the change in market value, including
reinvestment of dividends and distributions, of a $10,000 investment made in
common shares of Pioneer Floating Rate Trust, compared to that of the Credit
Suisse First Boston (CSFB) Leveraged Loan Index.
[THE FOLLOWING DATA WAS REPRESENTED BY A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer Floating Rate Trust CSFB Leveraged Loan Index
12/04 10000 10000
5/05 8945 10225
5/06 10167 10936
5/07 12330 11770
Cumulative Total Returns
(As of May 31, 2007)
Net Asset Market
Period Value (NAV) Price
Life-of-Trust
(12/28/04) 26.58% 23.30%
1 Year 12.55 21.28
Call 1-800-225-6292 or visit 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 Net Asset Value "NAV", due to
such factors as interest rate changes, and the perceived credit quality of
borrowers.
Total investment return does not reflect broker sales charges or
commissions. All performance is for common shares of the Trust.
Closed-end funds, unlike open-end funds, are not continuously offered.
There is a one-time public offering and, once issued, shares of closed-end
funds are sold in the open market through a stock exchange and frequently
trade at prices lower than their NAV. NAV is total assets less total
liabilities, which includes preferred shares, divided by the number of
common shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested
at the greater of NAV or 95% of the market price. When NAV is higher,
dividends are assumed to be reinvested at prices obtained under the Trust's
dividend reinvestment plan.
The performance table and graph do not reflect the deduction of fees and
taxes that a shareowner would pay on Trust distributions or the redemption
of Trust shares.
Index comparison begins on 12/31/04. The CSFB Leveraged Loan Index is a
representative index of tradeable, senior, secured U.S. dollar-denominated
leveraged loans. The index began in January 1992. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Trust
returns, do not reflect any fees, expenses or sales charges. You cannot
invest directly in an Index.
6
Pioneer Floating Rate Trust
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/07
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This semiannual report for Pioneer Floating Rate Trust covers the six-month
period from December 1, 2006 through May 31, 2007. In the report, portfolio
managers Mark Okada and Joseph Dougherty of Highland Capital Management, the
Trust's subadviser, discuss the Trust's investment process, strategy and
outlook.
Q: How did the Trust perform over the six months?
A: For the six-month period ended May 31, 2007, Pioneer Floating Rate Trust
returned 6.54% at net asset value, including reinvestment of dividends.
The market price return over that same period was 12.98%, and the Trust
was selling at a premium of market price to net asset value of 2.21%,
compared to a discount of market price to net asset value of 5.14% a year
ago on May 31, 2006. The Trust's benchmark, the Credit Suisse Leveraged
Loan Index, returned 4.07% for the same period. Unlike open-ended funds, a
closed-end fund's price goes up and down based on market supply and
demand, independent of the fund's net asset value per share.
During the six months, the Federal funds target rate remained unchanged at
5.25%, and the yield on the 3-month London Interbank Offering Rate (LIBOR)
was stable at 5.36%. LIBOR is the rate of interest at which banks borrow
funds from other banks.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher
than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
Q: What was the investment environment like over the six-month period ended May
31, 2007?
A: The investment environment was favorable for floating-rate securities, with
new issue bank loan volume reaching new highs. Bank loan volume totaled
$305 billion through the first five months of 2007, up from $209 billion -
or 46% -- during the comparable time period in 2006, according to Standard
and Poor's Leveraged Commentary and Data (S&PLCD). Default rates were low,
and April
7
Pioneer Floating Rate Trust
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/07 (continued)
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marked the fifth consecutive month without a single default. The April
lagging 12-month default rate hit a new all-time low of 0.44% of
outstanding loans, down from 1.53% a year ago, as tracked by S&PLCD. On
May 31, 2007, the spread (difference in the average yield) of the Credit
Suisse Leveraged Loan Index and the average yield of LIBOR was 244 basis
points. (One basis point equals 0.01%.) However, the weighted average
coupon - or stated rate of interest - during the first half of the fiscal
period was strong, with the spread on the Credit Suisse Leveraged Loan
Index ranging from 7.79% to 7.92% over LIBOR.
Q: What were the principal investment strategies used in managing the Trust?
A: Our strategies were driven by our belief that the economy was healthy and
that the leveraged loan markets would perform well in 2007. We continued
to keep the portfolio fully invested by using available cash to add newly
issued loans that we felt would trade higher in the secondary markets. As
of May 31, 2007 the Trust was well diversified with positions in 194
issuers across 25 industries. As a percentage of total investment
portfolio, approximately 88.3% was in loans, 1.3% in equities, 3.7% was in
bonds and 6.7% in temporary cash investments. Approximately 7.10% of the
Trust was in second lien loans. The largest sector positions in the
portfolio were media and telecommunications, healthcare and information
technology. Some of our core positions included HCA, a corporate operator
of hospitals, and media concerns The Tribune Co., Univision Communications
and Seven Media Group.
On May 31, 2007, 29.7% of the Trust was leveraged, which means that we
borrowed funds at low rates and invested those funds in high-yielding
securities. This leveraging strategy has aided returns. Over the first
half of the fiscal year, short-term rates showed little volatility.
However, should rates decline, the cost of borrowing would also go down,
providing the Trust with a modest amount of additional income. A rise in
short-term interest rates in the future would add to the Trust's borrowing
costs, and the ability to sustain present distribution levels could be
affected.
8
Pioneer Floating Rate Trust
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Q: The monthly income distribution to shareholders was steady at $0.145 per
share each month. What accounted for this consistent income stream?
A: During 2006 the monthly distribution was raised three times, but this year
we have kept the amount relatively stable at approximately $0.145
primarily because of the relatively stable short-term interest-rate
environment.
Q: What is your outlook?
A: The surge of merger and acquisition activity, fueled by a shift in ownership
from public to private markets, should continue to enhance our market's
record new issuance. This should provide a strong backdrop for us - one in
which we will be able to be very selective in purchasing securities for
the Trust. While we do not anticipate a material increase in default
rates, we believe that the current level of 0.44% is statistically
unsustainable. Even a modest rise in defaults should provide some
higher-yielding investment opportunities for the Trust, because the
increase in perceived risk would be rewarded with higher yields.
Information regarding the Trust's principal investment risks is contained
in the Trust's original offering prospectus. Please refer to this document
when considering the Trust's risks.
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.
When interest rates rise, the prices of fixed-income securities in the
Trust will generally fall. Conversely, when interest rates fall the prices
of fixed-income securities in the Trust will generally rise. The floating
rate feature of the Trust means that the Trust will not experience capital
appreciation in a declining interest-rate environment. Investments in the
Trust are subject to possible loss due to the financial failure of issuers
of underlying securities and their inability to meet their debt
obligations.
9
Pioneer Floating Rate Trust
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/07 (continued)
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The Trust may invest in derivative securities, which may include futures
and options. These types of instruments can increase price fluctuation.
The Trust is not limited in the percentage of its assets that may be
invested in floating rate senior loans and securities deemed to be
illiquid. Illiquid securities may be difficult to dispose of at a fair
price at the times when the Trust believes it is desirable to do so and
their market price is generally more volatile than that of more liquid
securities. Illiquid securities are also more difficult to value, and
investment of the Trust's assets in illiquid securities may restrict the
Trust's ability to take advantage of market opportunities.
The Trust may use leverage through the issuance of preferred shares with
an aggregate liquidation preference of up to 331/3% of the Trust's total
assets after such issuance. Leverage creates significant risks, including
the risk that the Trust's income or capital appreciation will not be
sufficient to cover the cost of leverage, which may adversely affect the
return for the holders of common shares.
The Trust is not diversified, which means that it can invest a higher
percentage of its assets in any one issuer than a diversified fund. Being
non-diversified may magnify the Trust's losses from adverse events
affecting a particular issuer.
Any information in this shareowner report regarding market or economic
trends or the factors influencing the Trust's historical or future
performance are statements of the opinion of the Trust's sub-advisors 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 Floating Rate Trust
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SCHEDULE OF INVESTMENTS 5/31/07 (unaudited)
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Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
SENIOR SECURED FLOATING RATE LOAN
INTERESTS - 135.4% of Net Assets*
Aerospace - 6.6%
3,945,910 B+/Ba3 AWAS Capital, Inc., First Lien Term Loan,
7.125%, 3/15/13 $ 3,916,316
3,000,000 B-/B1 DeCrane Aircraft Holdings, Inc., Credit-Linked
Deposit Loan, 10.0%, 2/21/13 3,024,375
1,000,000 B/Ba2 Delta Airlines, Inc., First Lien Term Loan,
7.355%, 4/30/12 1,005,000
2,000,000 B/B2 Delta Airlines, Inc., Second Lien Term Loan,
8.605%, 4/24/14 2,028,000
4,900,000 BB-/Ba2 DynCorp International, LLC (Di Finance), New
Term Loan, 7.625%, 2/11/11 4,944,918
1,294,605 B+/B1 Hunter Defense Holdings, Inc., Term Loan B,
8.625%, 3/10/11 1,299,460
987,500 B/B2 IAP Worldwide Services, Inc., First Lien Term
Loan, 9.688%, 12/30/12 1,002,313
6,000,000 B+/Ba3 Northwest Airlines, Inc., DIP, Term Loan,
7.85%, 8/21/08 6,023,688
67,223 B/Ba3 Travelport, Inc., Synthetic LC Loan,
2.5%, 8/23/13 67,773
682,777 B/Ba3 Travelport, Inc., Tranche B Dollar Term Loan,
2.5%, 8/23/13 688,364
5,000,000 B-/B2 US Airways Group, Inc., Term Loan,
7.85%, 3/21/14 5,038,280
3,000,000 B-/Ba2 Vought Aircraft Industries, Inc., Tranche B
Letter of Credit Deposit Loan,
7.82%, 12/22/10 3,023,751
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$ 32,062,238
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Broadcasting - 11.1%
2,500,000 B/Ba3 Gray Television, Inc., Delayed Draw Term
Loan B, 6.82% - 6.86%, 12/31/14 $ 2,499,998
740,625 B/B1 Montecito Broadcast Group, LLC, First Lien
Term Loan, 7.86%, 1/27/13 745,949
1,000,000 B/B1 NEP II, Inc., Term Loan B, 7.6%, 2/16/14 1,007,031
7,000,000 CCC+/B2 Paxson Communications Corp., First Lien
Term Loan, 8.606%, 1/15/12 7,166,250
4,992,448 B-/B1 Riverdeep Interactive Learning USA, Inc.,
Term Loan, 8.1%, 12/20/13 5,024,689
The accompanying notes are an integral part of these financial statements. 11
Pioneer Floating Rate Trust
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SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
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Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Broadcasting - (continued)
AUD 20,000,000 B-/NR Seven Media Group, Facility Term Loan A,
2.375% - 8.878%, 12/22/12 $ 16,449,546
16,912,752 B/Ba3 Univision Communications, Inc., Initial Term
Loan, 7.57%, 9/29/14 16,910,316
3,838,261 CCC+/Ba3 Young Broadcasting, Inc., Term Loan,
7.875%, 11/3/12 3,865,608
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$ 53,669,387
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Cable/Wireless Video - 8.9%
2,000,000 NR/Ba2 Century Cable Holdings, LLC, Revolver,
2.0%, 3/31/09 $ 1,980,208
10,000,000 B+/B1 Cequel Communications, LLC, Term Loan,
7.34% - 7.35%, 11/5/13 10,017,500
1,800,000 B-/B1 Charter Communications Operating, LLC,
New Term Loan, 7.35%, 3/5/14 1,802,624
2,699,670 B-/B1 Charter Communications Operating, LLC,
Term Loan, 7.32%, 4/28/13 2,703,382
3,000,000 BB-/Ba3 Insight Midwest Holdings, LLC, Term Loan B,
7.35%, 4/7/14 3,022,968
7,000,000 B/B2 Knology, Inc., Term Loan, 7.57% -
7.59%, 6/30/12 7,037,191
12,654,547(a) CCC+/B3 Millennium Digital Media Systems, LLC,
Facility Term Loan, 8.86% - 8.9%, 6/30/11 12,654,547
4,000,000 B-/B1 WideOpenWest Finance, LLC, First Lien Term
Loan, 7.6% - 7.61%, 5/1/13 4,016,668
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$ 43,235,088
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Chemicals - 1.2%
4,000,000 BB-/Ba3 Celanese U.S. Holdings, LLC, Term Loan,
7.099%, 4/2/14 $ 4,027,292
734,905 B+/Ba3 Lucite International U.S. Finco, LLC, Facility
Term Loan B-1, 8.07%, 7/7/13 740,187
135,878 B+/Ba3 Lucite International U.S. Finco, LLC, Facility
Term Loan B-2, 8.07%, 7/7/13 135,538
1,000,000 B/B2 Panda Hereford Ethanol, L.P., Tranche A
Term Loan, 9.07%, 7/28/13 975,000
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$ 5,878,017
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Consumer - Durables - 0.2%
915,161 B/B1 Rexair, LLC, First Lien Term Loan,
9.614%, 6/30/10 $ 915,161
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12 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
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Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Consumer - Non-Durables - 2.1%
2,268,000 B-/B2 Camelbak Products, LLC, First Lien Term
Loan, 9.16%, 8/4/11 $ 2,268,000
997,500 B/B1 GTM Holding, Inc. (GoldToe Investment
Corp.), First Lien Term Loan,
8.09% - 8.11%, 10/30/13 1,004,981
1,000,000 B/B1 Huish Detergents, Inc., Tranche B Term Loan,
7.32%, 4/26/14 1,002,813
4,073,701 CCC+/B2 Spectrum Brands, Inc., Dollar Term Loan B-1,
9.32% - 9.36%, 3/30/13 4,129,715
724,930 CCC+/B2 Spectrum Brands, Inc., Dollar Term Loan B-2,
9.32%, 3/30/13 728,101
201,369 CCC+/B2 Spectrum Brands, Inc., Synthetic LC Loan
5.17%, 3/30/13 204,138
997,500 B/B2 Totes Isotoner Corp., First Lien Term Loan,
7.768% - 9.75%, 1/31/13 1,005,293
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$ 10,343,041
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Consumer - Products - 0.6%
1,000,000 CCC+/Caa1 Solo Cup Co., Second Lien Term Loan,
11.57%, 3/31/12 $ 1,025,000
994,859 CCC+/B1 Solo Cup Co., Term Loan B-1,
8.84% - 8.85%, 2/27/11 1,012,658
1,000,000 B/Ba3 Yankee Candle Co., Inc., Term Loan,
7.35%, 2/6/14 1,006,458
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$ 3,044,116
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Diversified Media - 10.4%
7,537,865 B-/B1 ALM Media Holdings, Inc., First Lien Term
Loan, 7.85%, 3/5/10 $ 7,560,245
9,189,295 B/Ba3 MGM Holdings II, Inc./LOC Acquisition Co.,
Tranche B Term Loan, 8.6%, 4/8/12 9,228,423
995,000 B/Ba3 Nielsen Finance, LLC, Dollar Term Loan,
7.61%, 8/9/13 1,004,562
982,098(a) NR/NR North American Membership Group, Inc.,
First Lien Tranche B Term Loan,
10.59% - 10.605%, 5/18/11 947,724
2,000,000 B/B1 Penton Media Holdings, Inc., First Lien
Term Loan, 7.6% - 7.605%, 2/1/13 2,012,188
3,500,000 B/Caa1 Penton Media Holdings, Inc., Second Lien
Term Loan, 10.355%, 2/1/14 3,535,000
The accompanying notes are an integral part of these financial statements. 13
Pioneer Floating Rate Trust
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SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
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Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Diversified Media - (continued)
3,994,950 B/Ba3 Sunshine Acquisition, Ltd., Facility Term
Loan, 4.97%, 2/3/13 $ 4,020,333
12,000,000 BB-/Ba2 Tribune Co., Tranche B Facility Term Loan,
3.0%, 5/17/14 12,008,568
8,000,000 BB-/NR Tribune Co., Tranche X Term Loan,
2.5%, 5/17/09 8,057,000
753,333 B+/Ba2 Valassis Communications, Inc., Tranche B
Term Loan, 7.1%, 3/2/14 752,674
1,458,750 B/B2 Wallace Theater Corp. (Hollywood Theaters),
First Lien Term Loan, 8.6%, 7/31/09 1,473,338
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$ 50,600,055
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Energy - 7.0%
6,897,962 B-/B3 ATP Oil & Gas Corp., First Lien Term Loan,
8.824% - 8.883%, 3/23/12 $ 6,960,478
1,800,000 B+/B1 Big West Oil, LLC, Initial Advance Loan,
9.5%, 5/15/14 1,811,250
486,486 B/B2 Coffeyville Resources, LLC, Funded Letter of
Credit, 8.36%, 12/28/10 492,973
2,507,230 B/B2 Coffeyville Resources, LLC, Tranche D Term
Loan, 8.36% - 10.25%, 12/28/13 2,541,704
3,000,000 NR/B1 Connacher Finance Corp., Term Loan,
8.6%, 10/20/13 3,026,250
488,759 NR/NR Delphi Acquisition Holding I B.V., Facility Term
Loan B, 7.69%, 1/11/15 496,905
488,759 NR/NR Delphi Acquisition Holding I B.V., Facility Term
Loan C, 8.19%, 1/11/16 497,719
3,000,000 NR/NR Endeavour International Holding B.V., Second
Lien Term Loan, 12.36%, 11/1/11 3,090,000
1,995,000 NR/NR Forest Alaska Operating, LLC, First Lien Term
Loan, 8.82%, 12/8/10 2,009,962
2,550,000 NR/NR III Exploration II, L.P., Initial Draw Term Loan,
8.82% - 8.86%, 10/28/13 2,553,188
2,000,000 NR/NR III Exploration II, L.P., Second Lien Term Loan,
11.82% - 11.86%, 4/29/14 2,005,000
2,000,000 NR/NR Monitor U.S. Finco, Inc., Second Lien Term
Loan, 17.35%, 1/11/15 2,003,126
3,000,000 CCC+/Caa1 Paramount Resources, Ltd., Term Loan,
9.82%, 8/28/12 3,052,500
14 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
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Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Energy - (continued)
356,897 B/Ba3 SemCrude, L.P., U.S. Term Loan,
7.57% - 7.604%, 3/16/11 $ 358,905
1,980,000 B/NR TARH E&P Holdings, L.P., Second Lien Term
Loan, 10.875%, 11/15/08 1,984,950
997,500 BB-/Ba2 Volnay Acquisition Co. I (CGG), Term Loan,
7.35%, 1/12/14 1,007,682
-------------
$ 33,892,592
-------------
Financial - 0.6%
1,000,000 B/B3 ARG Holdings, Inc., Second Lien Term Loan,
12.688%, 11/30/12 $ 1,015,625
1,000,000 NR/Ba2 Concord Re, Ltd., Term Loan,
9.605%, 2/29/12 1,011,250
1,000,000 NR/Ba2 Kepler Holdings, Ltd., Term Loan,
10.82%, 6/30/09 1,010,000
-------------
$ 3,036,875
-------------
Food & Drug - 1.3%
4,049,003 B+/B1 Jean Coutu Group (PJC), Inc., Term Loan B,
9.75%, 7/30/11 $ 4,057,372
1,995,000 B+/Ba3 Roundy's Supermarkets, Inc., Tranche B Term
Loan, 8.09%, 11/3/11 2,012,955
-------------
$ 6,070,327
-------------
Food & Tobacco - 2.6%
997,500 B+/Ba3 Aramark Canada, Ltd., Canadian Term Loan,
7.475%, 1/26/14 $ 1,006,228
13,005 B+/Ba3 Aramark Corp., LC Facility Letter of Credit
Loan, 7.445%, 1/26/14 13,109
181,977 B+/Ba3 Aramark Corp., U.S. Term Loan,
7.471%, 1/26/14 183,425
992,424 B/B1 Chiquita Brands, LLC, Term Loan C,
8.375%, 6/28/12 1,005,553
3,000,000 B+/NR Nellson Nutraceutical, Inc., First Lien Term
Loan, 12.25%, 10/4/09 2,457,000
976,250 B-/Ba2 New World Restaurant Group, Inc., First Lien
Term Loan, 8.35% - 10.25%, 3/31/11 983,572
1,849,624 B+/Ba3 OSI Restaurant Partners, Inc., Term Loan B,
2.25%, 5/9/14 1,864,190
5,000,000 B-/B2 Pinnacle Foods Finance, LLC, Term Loan,
8.099%, 4/2/14 5,043,125
-------------
$ 12,556,202
-------------
The accompanying notes are an integral part of these financial statements. 15
Pioneer Floating Rate Trust
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SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Forest Products/Containers - 0.2%
833,333 B+/Ba3 Newark Group, Inc., Synthetic LC Loan,
7.57%, 3/9/13 $ 844,792
166,667 B+/Ba3 Newark Group, Inc., Term Loan,
7.57%, 3/9/13 168,958
-------------
$ 1,013,750
-------------
Gaming & Leisure - 4.7%
1,085,000(b) B/NR BRE/ESA Mezz5, LLC, Mezzanine D Term
Loan, 8.57%, 7/11/11 $ 1,087,713
5,915,000(b) B/NR BRE/Homestead Mezz4, LLC, Mezzanine D
Term Loan, 8.57%, 7/11/11 5,915,000
5,000,000 B/Caa1 Edge Las Vegas Development, LLC, Second
Lien Term Loan, 14.32%, 6/1/07 5,025,000
400,000 B-/NR Fontainebleu Florida Hotel, LLC, Tranche B
Term Loan, 8.07%, 5/11/08 400,000
666,667 B/NR Fontainebleau Las Vegas, LLC/Fontainebleau
Las Vegas II, LLC, Delayed Draw Term Loan,
3.25%, 5/17/14 672,500
1,333,333 B/NR Fontainebleau Las Vegas, LLC/Fontainebleau
Las Vegas II, LLC, Term Loan,
3.25%, 5/17/14 1,345,000
315,367 B-/B3 Ginn LA Conduit Lender, Inc., First Lien
Tranche A Credit-Linked Deposit,
1.0%, 6/8/11 306,064
684,633 B-/B3 Ginn LA Conduit Lender, Inc., First Lien
Tranche B Term Loan, 3.0%, 6/8/11 664,436
1,966,493 B/B1 Pivotal Promontory, LLC, First Lien Term
Loan, 8.07%, 8/31/10 1,959,610
1,477,462 B/Ba3 Trump Entertainment Resorts Holdings, L.P.,
Facility Term Loan C-1, 7.82% - 7.87%,
5/20/12 1,488,082
1,477,462 B/Ba3 Trump Entertainment Resorts Holdings, L.P.,
Facility Term Loan C-2, 7.86%, 5/20/12 1,488,082
600,000 B-/NR Turnberry/Las Vegas Boulevard, L.P., Tranche
A Term Loan, 8.07%, 5/11/08 600,000
1,803,733 B+/B1 Yellowstone Mountain Club, LLC, First Lien
Term Loan, 7.695%, 9/30/10 1,804,109
-------------
$ 22,755,596
-------------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
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Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Healthcare - 16.1%
5,170,000 B+/Ba3 Alliance Imaging, Inc., Tranche C-1 Term Loan,
7.875%, 12/29/11 $ 5,198,435
3,000,000 B-/B1 Benchmark Medical Holdings, Inc., First Lien
Term Loan B, 3.5%, 4/11/13 2,992,500
987,500 B/B1 Capella Healthcare, Inc., First Lien Term Loan,
8.35%, 11/30/12 997,375
5,384,240 B-/B3 CCS Medical, Inc. (Chronic Care), First Lien
Term Loan, 8.6%, 9/30/12 5,396,860
798,000 B/Ba3 CHG Acquisition Corp., First Lien Term Loan B,
7.82%, 12/20/12 808,973
1,000,000 B/B3 CHG Acquisition Corp., Second Lien Term Loan
C, 11.32%, 12/20/13 1,020,000
200,000 B/Ba3 CHG Acquisition Corp., Synthetic LC Loan,
7.85%, 12/20/12 202,750
1,985,000 B/NR DSI Renal, Inc. (National Renal Institutes,
Inc.), Facility Term Loan, 7.625%, 3/31/13 1,987,481
3,428,571 B+/B1 Fenwal, Inc., Initial First Lien Term Loan,
7.61%, 2/28/14 3,443,571
5,000,000 B/Caa1 FHC Health Systems, Inc., Third Lien Term
Loan, 14.37%, 2/9/11 5,125,000
2,747,143 B/Ba3 Golden Gate National Senior Care, LLC, First
Lien Term Loan, 8.09%, 3/14/11 2,767,175
2,000,000 B/B3 Golden Gate National Senior Care, LLC,
Second Lien Term Loan, 13.09%, 9/14/11 2,040,000
20,947,500 B+/Ba3 HCA, Inc., Tranche B Term Loan,
7.6%, 11/18/13 21,200,336
2,725,793 B/B2 HealthSouth Corp., Term Loan, 7.82% -
7.85%, 3/10/13 2,749,491
697,933 B/Ba2 Iasis Healthcare, LLC, Initial Term Loan,
7.356%, 3/17/14 701,423
63,593 B/Ba2 Iasis Healthcare, LLC, Synthetic LC Loan,
7.34%, 3/17/14 63,911
3,500,000 B+/Ba2 Onex Carestream Finance, L.P., First Lien Term
Loan, 7.32%, 4/30/13 3,514,879
790,698 B+/B2 Reliant Pharmaceuticals, Inc., Initial Term
Loan, 8.59%, 3/31/12 798,605
1,970,623 B/NR Renal Advantage, Inc., Tranche B Term Loan,
7.85%, 10/6/12 1,990,329
429,954 B/Ba2 Rural/Metro Operating Co., LLC, Letter of
Credit Term Loan, 5.17%, 3/4/11 433,178
The accompanying notes are an integral part of these financial statements. 17
Pioneer Floating Rate Trust
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SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Healthcare - (continued)
1,374,845 B/Ba2 Rural/Metro Operating Co., LLC, Term
Loan 1, 7.57% - 7.62%, 3/4/11 $ 1,385,157
1,965,000 B/Ba3 Skilled Healthcare Group, Inc., First Lien
Term Loan, 7.57%, 6/15/12 1,974,212
4,987,500 B+/B2 Talecris Biotherapeutics Holdings Corp.,
First Lien Term Loan, 8.86%, 12/6/13 5,034,273
2,985,000 B/B2 Triumph HealthCare Second Holdings, LLC,
First Lien Term Loan, 8.36%, 7/28/13 3,007,853
211,535 B+/B2 Warner Chilcott Co., Inc., Dovonex Delayed
Draw Term Loan, 7.35%, 1/18/12 212,699
2,136,891 B+/B1 Warner Chilcott Co., Inc., Tranche B
Acquisition Date Term Loan, 7.35% -
7.614%, 1/18/12 2,152,155
592,060 B+/B1 Warner Chilcott Corp., Tranche C Acquisition
Date Term Loan, 7.35%, 1/18/12 596,289
-------------
$ 77,794,910
-------------
Housing - 7.0%
2,422,857 B-/B3 Associated Materials, Inc., Term Loan,
7.85% - 7.88%, 8/29/10 $ 2,422,857
6,126,620 B/B1 Atrium Companies, Inc., Closing Date Term
Loan, 8.1% - 8.59%, 5/31/12 6,085,774
2,500,000 BB+/Ba3 BioMed Realty, L.P., Term Loan,
7.57%, 5/30/10 2,509,375
1,582,218 B+/B1 Champion Home Builders Co., Synthetic LC
Loan, 7.82%, 10/31/12 1,574,307
863,407 B+/B1 Champion Home Builders Co., US Term Loan,
5.25%, 10/31/12 859,090
2,799,785 B/B1 Custom Building Products, Inc., First Lien Term
Loan, 7.6% - 7.614%, 10/20/11 2,805,616
1,320,500 B+/B1 Desa, LLC, Term Loan, 13.0%, 11/26/11 1,262,178
1,000,000 B/B2 Edge Star Partners, LLC (Harmon Koval), First
Lien Term Loan, 9.36%, 6/30/08 1,002,500
4,500,000 B/B3 Edge Star Partners, LLC (Harmon Koval),
Second Lien Term Loan, 15.36%,
11/18/07 4,477,500
5,000,000 B+/B2 LNR Property Corp., Initial Tranche B Term
Loan, 8.11%, 7/12/11 5,033,930
995,000 NR/B1 Orchard Supply Hardware, LLC, Term Loan,
8.125%, 12/21/13 1,004,950
18 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
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Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Housing - (continued)
932,633 B/B1 Playpower, Inc., Tranche B Dollar Term Loan,
8.1%, 6/30/12 $ 941,960
4,000,000 BB-/Ba3 Woodlands Commercial Properties Co., L.P.,
Bridge Loan, 8.11%, 2/28/08 4,005,000
-------------
$ 33,985,037
-------------
Information Technology - 12.3%
5,519,981 B/Ba3 Advanced Micro Devices, Inc., Term Loan,
7.34%, 12/31/13 $ 5,543,502
2,667,562 NR/B1 Applied Systems, Inc., Term Loan, 7.85% -
8.176%, 9/26/13 2,682,567
348,837 BB-/B1 Caritor, Inc., Synthetic LC Loan,
2.0%, 5/18/13 350,363
4,651,163 BB-/B1 Caritor, Inc., Term Loan, 2.0%, 5/18/13 4,671,512
2,977,500 B+/NR DTN, Inc., Tranche C Term Loan, 8.34% -
8.372%, 3/10/13 2,992,388
3,820,000 B/Ba3 GXS Worldwide, Inc., First Lien Term Loan,
10.32% - 10.36%, 7/29/11 3,877,300
2,000,000 B/B3 GXS Worldwide, Inc., Second Lien Term Loan,
14.61%, 1/29/12 2,030,000
2,046,857 B-/B1 Infor Enterprise Solutions Holdings, Inc.,
Delayed Draw Term Loan, 9.1%, 7/28/12 2,062,209
3,000,000 B-/B1 Infor Enterprise Solutions Holdings, Inc., Dollar
Tranche B-1 First Lien Term Commitment
Loan, 8.07%, 7/28/12 3,023,625
3,923,143 B-/B1 Infor Enterprise Solutions Holdings, Inc., Initial
U.S. Term Loan, 9.1%, 7/28/12 3,954,038
788,670(b) B/B2 Inovis International, Inc., Term Loan,
8.82% - 9.25%, 11/15/09 788,670
2,000,000 B/B1 IPC Systems, Inc., Tranche B-1 Term Loan,
7.867%, 5/31/14 2,016,250
1,000,000 B+/B2 Metrologic Instruments, Inc., First Lien Term
Loan, 3.0%, 12/21/13 1,004,258
1,000,000 B+/Caa2 Metrologic Instruments, Inc., Second Lien
Term Loan, 11.84%, 12/21/13 1,013,750
4,000,000 NR/NR NameMedia, Inc., Term Loan,
11.37%, 9/7/08 4,020,000
2,000,000 B/Ba3 Open Solutions, Inc., Term Loan,
7.485%, 1/23/14 2,017,500
The accompanying notes are an integral part of these financial statements. 19
Pioneer Floating Rate Trust
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SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Information Technology - (continued)
944,444 B/B2 Quantum Corp., First Lien Term Loan,
9.34% - 9.35%, 8/22/12 $ 945,625
3,587,500 B/B1 Serena Software, Inc., Term Loan,
7.586%, 3/10/13 3,614,406
1,946,921 B+/B2 Sitel, LLC (ClientLogic), U.S. Term Loan,
7.82% - 9.75%, 1/30/14 1,961,523
6,877,763 B+/Ba3 SunGard Data Systems, Inc. (Solar Capital
Corp.), Term Loan B, 7.36%, 2/28/14 6,942,242
2,925,076 B/B1 Telcordia Technologies, Inc., Term Loan,
8.09% - 8.11%, 9/15/12 2,903,138
1,000,000 B/NR Verint Systems, Inc., Term Loan,
8.09%, 5/25/14 1,003,438
-------------
$ 59,418,304
-------------
Manufacturing - 1.2%
1,000,000 B/B1 FCI USA, Inc., Facility Term Loan B-1,
7.867%, 3/10/14 $ 1,014,196
1,000,000 B/B1 FCI USA, Inc., Facility Term Loan B-5-B,
8.617%, 3/10/14 1,010,000
3,960,000 B/B1 Generac Acquisition Corp., First Lien Term
Loan, 7.826%, 11/11/13 3,936,664
-------------
$ 5,960,860
-------------
Metals & Minerals - 1.7%
3,849,685 BB+/Baa3 Freeport-McMoRan Copper & Gold, Inc.,
Tranche B Term Loan, 7.07%, 3/19/14 $ 3,867,385
4,401,200 B/B3 Murray Energy Corp., Tranche B Term Loan,
8.36%, 1/28/10 4,456,215
-------------
$ 8,323,600
-------------
Retail - 8.3%
9,153,050 B/B1 Blockbuster, Inc., Tranche B Term Loan,
8.63% - 9.07%, 8/20/11 $ 9,206,257
4,919,900 B/B2 Burlington Coat Factory Warehouse Corp.,
Term Loan, 7.61%, 5/28/13 4,915,801
2,848,619 B+/Ba1 Dollarama Group, L.P., Replacement Term
Loan B, 7.355%, 11/18/11 2,871,764
15,765,928(b) CCC/Caa2 Home Interiors & Gifts, Inc., Initial Term Loan,
10.32% - 12.25%, 3/31/11 11,647,080
889,171 B+/B2 MAPCO Express, Inc./MAPCO Family Centers,
Inc., Term Loan, 8.07% - 8.09%, 4/28/11 894,728
20 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
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Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Retail - (continued)
2,000,000 B-/B2 Michaels Stores, Inc., Term Loan,
7.625%, 10/31/13 $ 2,010,928
2,654,261 B+/Ba3 Neiman Marcus Group, Inc., Term Loan,
7.346%, 4/6/13 2,678,211
1,992,494 B/B2 Sally Holdings, LLC, Term Loan B,
7.86%, 11/18/13 2,011,173
4,000,000 B-/Ba3 Toys R Us - Delaware, Inc., Tranche B Term
Loan, 9.61%, 7/19/12 4,094,252
-------------
$ 40,330,194
-------------
Service - 4.4%
2,479,787 B/Ba3 Alliance Laundry Systems, LLC, Term Loan,
7.57% - 7.61%, 1/27/12 $ 2,501,485
4,000,000 B/B1 Inmar, Inc., Term Loan, 7.82%, 4/29/13 4,032,500
1,925,000 B-/B1 Koosharem Corp. (Select Personnel), First
Lien Term Loan, 9.86%, 6/30/12 1,946,656
795,841 B+/B3 Rental Service Corp., Second Lien Initial Term
Loan, 8.85% - 10.75%, 11/30/13 811,559
10,500,000 B+/B1 Sabre, Inc., Initial Term Loan, 7.6% -
7.605%, 9/30/14 10,522,974
997,500 B-/Ba3 Total Safety U.S., Inc., First Lien Tranche B
Term Loan, 8.35%, 12/8/12 1,002,488
705,000 B+/B2 Vanguard Car Rental USA Holding, Inc., Term
Loan, 8.32% - 8.355%, 6/14/13 711,609
-------------
$ 21,529,271
-------------
Telecommunications - 5.5%
EURO 752,152 B/NR Amsterdamse Beheer-EN
Consultingmaatschappij B.V. (Casema),
Casema Term Loan B-1, 6.359%, 9/12/14 $ 1,026,781
EURO 390,705 B/NR Amsterdamse Beheer-EN
Consultingmaatschappij B.V. (Casema),
Casema Term Loan B-2 , 6.359%, 9/12/14 533,361
EURO 1,142,857 B/NR Amsterdamse Beheer-EN
Consultingmaatschappij B.V. (Casema),
Casema Term Loan C, 6.859%, 9/12/15 1,567,363
EURO 857,143 B/NR Amsterdamse Beheer-EN
Consultingmaatschappij B.V. (Casema)
Kabelcom Term Loan B, 6.359%, 9/12/14 1,170,124
The accompanying notes are an integral part of these financial statements. 21
Pioneer Floating Rate Trust
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SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Telecommunications - (continued)
EURO 857,143 B/NR Amsterdamse Beheer-EN
Consultingmaatschappij B.V. (Casema)
Kabelcom Term Loan C, 6.859%, 9/12/15 $ 1,175,699
1,250,000 BB-/B1 Fairpoint Communications, Inc., Replacement
Term Loan B, 7.125%, 2/8/12 1,253,125
517,826 B+/B2 Global Tel Link Corp., Facility Term Loan,
8.85%, 2/14/08 523,004
43,478 B+/B2 Global Tel Link Corp., Synthetic Deposit Loan,
8.86%, 2/13/08 43,913
2,985,000 BB-/Ba2 Intelsat Corp., Tranche B-2 Term Loan,
7.36%, 1/3/14 3,012,984
3,000,000 B-/B1 Level 3 Financing, Inc., Term Loan,
7.605%, 3/13/14 3,015,417
EURO 405,043 BB-/NR Nordic Telephone Company Holdings
APS, Euro Facility Term Loan B-2,
5.716%, 5/2/14 551,433
EURO 515,692 BB-/NR Nordic Telephone Company Holdings
APS, Euro Facility Term Loan C-2,
5.966%, 5/2/15 704,903
1,000,000 B/B1 PAETEC Holding Corp., First Lien Term Loan,
8.82%, 2/28/13 1,013,542
2,000,000 B+/Caa1 Pine Tree Holdings, Inc., (Country Road
Communications), Second Lien Tranche B
Term Loan, 13.15%, 7/15/13 2,030,000
1,485,000 B+/Ba2 Stratos Global Corp./Stratos Funding, L.P.,
Facility Term Loan B, 8.1%, 2/13/12 1,493,662
EURO 2,415,218 B+/Ba2 Wind Telecomunicazione S.p.A., Facility Term
Loan A-1, 6.014%, 5/26/12 3,259,594
EURO 1,500,000 B+/Ba2 Wind Telecomunicazione S.p.A., Facility Term
Loan B-1, 6.514%, 5/27/13 2,032,576
EURO 1,500,000 B+/Ba2 Wind Telecomunicazione S.p.A., Facility Term
Loan C-1, 7.264%, 5/26/14 2,041,829
-------------
$ 26,449,310
-------------
Transportation - 9.7%
4,162,595 B/Ba3 Affinia Group, Inc., Tranche B Term Loan,
8.355%, 11/30/11 $ 4,196,416
9,250,000 NR/B2 Dana Corp., Term Loan, 7.88%, 4/13/08 9,289,747
1,000,000 NR/Ba1 Delphi Corp., Tranche B First Lien Term Loan,
7.625%, 12/31/07 1,005,469
22 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
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Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Transportation - (continued)
11,000,000 NR/Ba3 Delphi Corp., Tranche C Second Lien Term
Loan, 8.125%, 12/31/07 $ 11,041,305
1,000,000 NR/NR Federal-Mogul Corp., DIP Term Loan,
7.07%, 12/31/07 1,002,625
7,968,750 B/Ba3 Ford Motor Co., Term Loan, 8.36%, 12/16/13 8,041,720
2,481,250 BB-/B2 Gainey Corp., Term Loan, 8.07% - 8.1%,
4/20/12 2,492,105
498,750 B/Ba3 General Motors Corp., Secured Term Loan,
7.725%, 11/29/13 503,707
4,000,000 B+/B1 Key Safety Systems, Inc., First Lien Term
Loan, 7.57%, 3/8/14 4,040,000
994,000 B/B2 Lear Corp., First Lien Term Loan B,
7.85% - 7.86%, 4/25/12 997,029
875,000 B-/B2 Quality Distribution, Inc., PF Letter of Credit
Loan, 5.25%, 11/13/09 877,188
1,896,403 B-/B2 Quality Distribution, Inc., Term Loan,
8.32%, 11/13/09 1,901,144
1,772,549 NR/B2 SIRVA Worldwide, Inc., Tranche B Term Loan,
11.6%, 12/1/10 1,731,558
-------------
$ 47,120,013
-------------
Utility - 5.9%
4,500,000 B/NR ANP Funding I, LLC, Tranche A Term Loan,
8.85%, 7/29/10 $ 4,534,727
517,241 NR/B1 Boston Generating, LLC, First Lien Synthetic
LC Loan, 5.225% - 5.241%, 12/20/13 521,336
144,828 NR/B1 Boston Generating, LLC, First Lien Synthetic
Revolving Credit Loan, 7.6% - 7.616%,
12/20/13 145,974
2,332,086 NR/B1 Boston Generating, LLC, First Lien Term Loan,
7.57% - 7.6%, 12/20/13 2,350,549
1,754,777 NR/B1 Coleto Creek Power, L.P., First Lien Synthetic
LC Loan, 5.25%, 6/28/13 1,763,551
4,962,500 NR/B1 Coleto Creek Power, L.P., Second Lien Term
Loan, 9.35%, 6/28/13 4,962,500
3,717,134 NR/B1 Coleto Creek Power, L.P., Term Loan,
8.1%, 6/28/13 3,735,719
1,980,000 NR/NR GBGH, LLC (U.S. Energy), First Lien Term
Loan, 10.859%, 8/7/13 1,984,950
The accompanying notes are an integral part of these financial statements. 23
Pioneer Floating Rate Trust
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SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Utility - (continued)
1,995,000 NR/B1 Kelson Canada, Inc., First Lien Term Loan,
7.6%, 2/13/14 $ 2,004,975
2,711,953 NR/B2 Mach Gen, LLC, First Lien Term Loan B,
7.36%, 2/22/14 2,713,987
281,250 NR/B2 Mach Gen, LLC, Synthetic LC Loan,
7.35%, 2/22/13 281,558
1,140,000 B/NR Reliant Energy, Inc., New Term Loan,
7.695%, 12/1/10 1,147,329
857,143 B/NR Reliant Energy, Inc., Pre-Funded LC,
5.187%, 12/1/10 862,653
1,200,389 NR/Ba3 TPF Generation Holdings, LLC, First Lien Term
Loan, 7.35%, 12/15/13 1,209,392
225,814 NR/Ba3 TPF Generation Holdings, LLC, Synthetic LC
Loan, 7.37%, 12/15/13 227,508
70,788 NR/Ba3 TPF Generation Holdings, LLC, Synthetic
Revolver, 7.37%, 12/15/11 71,319
-------------
$ 28,518,027
-------------
Wireless Communication - 5.8%
6,903,226 B-/B1 American Cellular Corp., Tranche B Term
Loan, 7.32%, 3/15/14 $ 6,949,823
1,000,000 B-/B2 Cellnet Group, Inc., Second Lien Term Loan,
9.59%, 10/22/11 1,012,917
847,187 B-/Ba2 Centennial Cellular Operating Co., New Term
Loan, 7.35% - 7.36%, 2/9/11 854,688
9,925,000 B-/B1 Cricket Communications, Inc., Term Loan B-1,
7.6%, 6/16/13 10,024,250
8,957,494 B-/Ba3 Metro PCS Wireless, Inc., New Tranche B
Term Loan, 5.375% - 7.875%, 11/4/13 9,041,470
-------------
$ 27,883,148
-------------
TOTAL SENIOR SECURED FLOATING RATE
LOAN INTERESTS
(Cost $654,729,126) $ 656,385,119
-------------
24 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
CLAIMS - 1.7% of Net Assets
Aerospace - 1.7%
1,200,000(c) B+/NR Northwest Airlines, Inc., ALPA Pre-petition
Claim, 2.5% $ 798,000
2,500,000(c) B+/NR Northwest Airlines, Inc., EDC Pre-petition
Claim, 5.32% 1,662,500
2,130,600(c) B+/NR Northwest Airlines, Inc., Flight Attendant
Pre-petition Claim, 2.5% 1,416,849
1,500,000(c) B+/NR Northwest Airlines, Inc., GE Pre-petition
Claim, 2.5% 1,110,626
1,264,500(c) B+/NR Northwest Airlines, Inc., IAM Pre-petition
Trade Claim, 2.5% 840,892
2,500,000(c) B+/NR Northwest Airlines, Inc., Mesaba Pre-petition
Claim, 2.5% 1,662,500
1,404,900(c) B+/NR Northwest Airlines, Inc., Retiree Pre-petition
Claim, 2.5% 934,259
-------------
TOTAL CLAIMS
(Cost $8,953,177) $ 8,425,626
-------------
CONVERTIBLE BONDS & NOTES - 1.7% of Net Assets
Cable/Wireless Video - 1.1%
3,000,000 CCC+/NR Charter Communications, Inc.,
5.875%, 11/16/09 $ 5,351,250
-------------
Transportation - 0.6%
120,000 B/Caa1 General Motors Corp., 1.5%, 6/1/09 $ 3,000,000
-------------
TOTAL CONVERTIBLE BONDS & NOTES
(Cost $5,565,583) $ 8,351,250
-------------
CORPORATE NOTES - 4.1% of Net Assets
Cable/Wireless Video - 0.2%
875,000 CCC/Caa3 CCH I Holdings, LLC, 10.0%, 5/15/14 $ 840,000
-------------
Energy - 0.4%
2,000,000(d) B-/NR Secunda International, Ltd.,
13.356%, 9/1/12 $ 2,070,000
-------------
Food & Tobacco - 0.2%
1,000,000 CCC/NR Pinnacle Foods Group, Inc., 9.25%,
4/1/15 (144A) $ 1,015,000
-------------
The accompanying notes are an integral part of these financial statements. 25
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
--------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
Healthcare - 0.6%
2,000,000 B-/NR Pharma V (Duloxetine), 13.0%,
10/15/13 (144A) $ 2,010,000
1,037,651(a)(d) NR/NR Pharma VI (Rotavax), 10.61%,
10/15/14 (144A) 1,037,651
-------------
$ 3,047,651
-------------
Housing - 0.4%
2,000,000(d) B+/B3 Builders FirstSource, Inc., 9.61%, 2/15/12 $ 2,032,500
-------------
Information Technology - 1.2%
400,000(d) B/NR Freescale Semiconductor, Inc., 9.23%,
12/15/14 (144A) $ 400,500
5,000,000(d) BB+/Ba2 NXP BV, 8.106%, 10/15/13 5,150,000
-------------
$ 5,550,500
-------------
Transportation - 1.1%
5,000,000(d) B/Caa1 American Tire Distributors, Inc.,
11.599%, 4/1/12 $ 5,100,000
-------------
TOTAL CORPORATE NOTES
(Cost $18,887,962) $ 19,655,651
-------------
Shares
COMMON STOCK - 1.9% of Net Assets
Utility - 1.9%
196,325(e) Mirant Corp. (144A) $ 9,109,480
-------------
TOTAL COMMON STOCK
(Cost $4,987,782) $ 9,109,480
-------------
WARRANTS - 0.2% of Net Assets
Gaming & Leisure - 0.0%
13,873(b)(e) OpBiz, LLC, Term A, Exp. 8/31/10 $ -
32(b)(e) OpBiz, LLC, Term B, Exp. 8/31/10 -
-------------
$ -
-------------
Wireless Communication - 0.2%
400,000(b)(e) Clearwire Corp., Exp. 8/15/10 (144A) $ 880,000
-------------
TOTAL WARRANTS
(Cost $956,752) $ 880,000
-------------
26 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
TEMPORARY CASH INVESTMENT - 10.3% of Net Assets
Repurchase Agreement - 10.3%
50,000,000 UBS Warburg, Inc., 4.95%, dated 5/31/07,
repurchase price of $50,000,000 plus
accrued interest on 6/1/07 collateralized
by $50,184,000 U.S. Treasury Notes
4.75%, 12/31/08 $ 50,000,000
-------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $50,000,000) $ 50,000,000
-------------
TOTAL INVESTMENTS IN SECURITIES - 155.3%
(Cost $744,080,382) (f) $ 752,807,126
-------------
OTHER ASSETS AND LIABILITIES - (6.9%) $ (33,427,341)
-------------
PREFERRED SHARES AT REDEMPTION
VALUE, INCLUDING DIVIDENDS
PAYABLE - (48.4)% $(234,620,994)
-------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS - 100.0% $ 484,758,791
=============
The accompanying notes are an integral part of these financial statements. 27
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
--------------------------------------------------------------------------------
NR Security not rated by S&P or Moody's.
* Senior secured floating rate loan interests in which the Trust invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending rate plus a premium. These base lending
rates are generally (i) the lending rate offered by one or more major
European banks, such as LIBOR (London InterBank Offered Rate), (ii) the
prime rate offered by one or more major United States banks, (iii) the
certificate of deposit or (iv) other base lending rates used by
commercial lenders. The rate shown is the coupon rate at May 31, 2007.
(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 May
31, 2007, the value of these securities amounted to $14,452,631 or 3.0%
of net assets applicable to common shareowners.
(a) Represents a pay-in-kind security which may pay interest in additional
principal.
(b) Indicates a security that has been deemed illiquid. The aggregate cost
of illiquid securities is $23,522,045. The aggregate value $20,318,463
represents 4.2% of the net assets.
(c) Security is in default and is non-income producing.
(d) Floating Rate Note. The rate shown is the rate at May 31, 2007.
(e) Non-income producing security.
(f) At May 31, 2007, the net unrealized gain on investments based on cost
for federal income tax purposes of $744,109,021 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $13,468,484
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (4,770,379)
-----------
Net unrealized gain $ 8,698,105
===========
For financial reporting purposes net unrealized gain on investments was
$8,726,744 and cost of investments aggregated $744,080,382.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended May 31, 2007, aggregated $472,299,260 and $469,203,291,
respectively.
Glossary of Terms:
DIP - Debtor-In-Possession
LC - Letter of Credit
Principal amounts are denominated in U.S. dollars unless otherwise noted.
AUD - Australian Dollar
EURO - Euro
28 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 5/31/07 (unaudited)
--------------------------------------------------------------------------------
ASSETS:
Investments in securities, at value (cost $744,080,382) $752,807,126
Cash 9,768,827
Foreign currencies, at value (cost $3,350,418) 3,911,518
Receivables -
Investment securities sold 15,856,006
Paydowns 1,224,641
Interest and foreign tax reclaim 6,287,848
Reinvestment of distributions 593,238
Commitment fees 18,746
Unfunded loan commitment 686
Prepaid expenses 28,455
------------
Total assets $790,497,091
------------
LIABILITIES:
Payables -
Investment securities purchased $ 70,573,612
Due to affiliate 471,828
Accrued expenses 71,866
------------
Total liabilities $ 71,117,306
------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 9,380
shares, including dividends payable of $120,994 $234,620,994
------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $462,350,578
Undistributed net investment income 2,603,217
Accumulated net realized gain on investments and foreign
currency transactions 10,477,910
Net unrealized gain on investments 8,748,757
Net unrealized gain on foreign currency assets and liabilities
denominated in foreign currencies 578,329
------------
Net assets applicable to common shareowners $484,758,791
============
NET ASSET VALUE PER SHARE:
No par value, (unlimited number of shares authorized)
Based on $484,758,791/24,399,062 common shares $ 19.87
============
The accompanying notes are an integral part of these financial statements. 29
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
--------------------------------------------------------------------------------
For the Six Months Ended 5/31/07
INVESTMENT INCOME:
Interest (net of foreign taxes withheld $8,154) $30,522,660
Facility and other fees 697,608
-----------
Total investment income $31,220,268
-----------
EXPENSES:
Management fees $ 2,493,554
Administrative fees and reimbursement 268,931
Transfer agent fees and expenses 19,048
Auction agent fees 307,814
Custodian fees 42,373
Registration fees 10,885
Professional fees 47,256
Printing expenses 26,105
Trustees' fees 6,982
Pricing fees 30,708
Miscellaneous 18,521
-----------
Total expenses $ 3,272,177
-----------
Net investment income $27,948,091
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain from:
Investments $ 8,274,405
Foreign currency contracts and other assets and liabilities
denominated in foreign currencies 204,501 $ 8,478,906
----------- -----------
Change in net unrealized gain (loss) on:
Investments $ (549,013)
Unfunded corporate loans (4,756)
Foreign currency contracts and other assets and liabilities
denominated in foreign currencies 633,631 $ 79,862
----------- -----------
Net gain on investments and foreign currency
transactions $ 8,558,768
-----------
DIVIDENDS AND DISTRIBUTIONS TO PREFERRED
SHAREOWNERS FROM:
Net investment income $(6,063,466)
Net realized gains (24,294)
-----------
Total distributions $(6,087,760)
-----------
Net increase in net assets applicable to common
shareowners resulting from operations $30,419,099
===========
30 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
For the Six Months Ended 5/31/07 and the Year Ended 11/30/06
Six Months
Ended Year
5/31/07 Ended
(unaudited) 11/30/06
FROM OPERATIONS:
Net investment income $ 27,948,091 $ 53,438,462
Net realized gain on investments and foreign
currency transactions 8,478,906 2,711,969
Change in net unrealized gain on investments
and foreign currency transactions 79,862 9,747,577
Dividends and distributions to preferred
shareowners from:
Net investment income (6,063,466) (11,248,699)
Net realized gains (24,294) -
------------- -------------
Net increase in net assets applicable to
common shareowners $ 30,419,099 $ 54,649,309
------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO COMMON
SHAREOWNERS:
Net investment income
($1.035 and $1.625 per share, respectively) $ (25,188,611) $ (39,536,640)
Net realized gains
($0.004 and $0.05 per share, respectively) (91,944) (1,178,873)
------------- -------------
Total distributions to common shareowners $ (25,280,555) $ (40,715,513)
------------- -------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 1,365,488 $ -
Preferred share offering expenses charged to
paid-in capital - (2,587)
------------- -------------
Net increase (decrease) in net assets applicable
to common shareowners resulting from Trust
share transactions $ 1,365,488 $ (2,587)
------------- -------------
Net increase in net assets applicable to
common shareowners $ 6,504,032 $ 13,931,209
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS:
Beginning of period 478,254,759 464,323,550
------------- -------------
End of period $ 484,758,791 $ 478,254,759
============= =============
Undistributed net investment income $ 2,603,217 $ 5,907,203
============= =============
The accompanying notes are an integral part of these financial statements. 31
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 5/31/07
--------------------------------------------------------------------------------
Six Months
Ended Year 12/28/04 (b)
5/31/07 Ended to
(unaudited) 11/30/06 11/30/05
Per Common Share Operating Performance
Net asset value, beginning of period $ 19.66 $ 19.08 $ 19.10(c)
-------- -------- --------
Increase (decrease) from investment operations:(a)
Net investment income $ 1.15 $ 2.20 $ 1.33
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 0.35 0.52 (0.05)
Dividends and distributions to preferred shareowners from:
Net investment income (0.25) (0.46) (0.23)
Net realized gains -(d) - -
-------- -------- --------
Net increase from investment operations $ 1.25 $ 2.26 $ 1.05
Distributions to common shareowners from:
Net investment income (1.04) (1.63) (0.92)
Net realized gains -(d) (0.05) -
Capital charge with respect to issuance of:
Common shares - - (0.04)
Preferred shares - -(d) (0.11)
-------- -------- --------
Net increase (decrease) in net asset value $ 0.21 $ 0.58 $ (0.02)
-------- -------- --------
Net asset value, end of period(e) $ 19.87 $ 19.66 $ 19.08
======== ======== ========
Market value, end of period(e) $ 20.31 $ 18.95 $ 17.14
======== ======== ========
Total return(f) 12.98% 20.94% (9.76)%
Ratios to average net assets of common shareowners
Net expenses(g) 1.37%(h) 1.38% 1.23%(h)
Net investment income before preferred share dividends 11.68%(h) 11.37% 7.52%(h)
Preferred share dividends 2.53%(h) 2.39% 1.29%(h)
Net investment income available to common shareowners 9.15%(h) 8.98% 6.23%(h)
Portfolio turnover 57% 75% 61%
Net assets of common shareowners, end of period (in thousands) $484,759 $478,255 $464,324
Preferred shares outstanding (in thousands) $234,500 $234,500 $234,500
Asset coverage per preferred share, end of period $ 76,693 $ 76,000 $ 74,520
Average market value per preferred share $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per preferred share $ 25,013 $ 25,013 $ 25,018
Ratios to average net assets of common shareowners before
reimbursement of organization expenses and excise tax and
expense reductions
Net expenses(g) 1.37%(h) 1.40% 1.24%(h)
Net investment income before preferred share dividends 11.68%(h) 11.35% 7.51%(h)
Preferred share dividends 2.53%(h) 2.39% 1.29%(h)
Net investment income available to common shareowners 9.15%(h) 8.96% 6.22%(h)
(a) The per share data presented above is based upon the average common shares
outstanding for the periods presented.
(b) The Trust common shares were first publicly offered on December 28, 2004.
(c) Net asset value immediately after the closing of the first public offering
was $19.06.
(d) Amount is less than $0.01 per share.
(e) 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.
(f) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
market value on the last day of the periods reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Total
investment return less than a full period is not annualized. Past
performance is not a guarantee of future results.
(g) Expense ratios do not reflect the effect of dividend payments to preferred
shareowners.
(h) Annualized.
The information above represents the operating performance data for a share
of common stock outstanding, total investment return, ratios to average net
assets and other supplemental data for the periods indicated. This
information has been determined based upon financial information provided
in the financial statements and market value data for the Trust's common
shares.
32 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited)
--------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Floating Rate Trust (the "Trust") was organized as a Delaware statutory
trust on October 6, 2004. Prior to commencing operations on December 28, 2004,
the Trust had no operations other than matters relating to its organization and
registration as a non-diversified, closed-end management investment company
under the Investment Company Act of 1940, as amended. The investment objective
of the Trust is to provide a high level of current income. The Trust will, as a
secondary objective, also seek preservation of capital to the extent consistent
with its primary goal of high current income.
The Trust's investments in certain foreign markets or countries with limited
developing markets may subject the Trust to a greater degree of risk than in a
developed market. These risks include disruptive political or economic
conditions and the possible imposition of adverse governmental laws or currency
exchange restrictions.
The Trust invests primarily in senior floating rate loans ("Senior Loans"). The
Trust may also invest in other floating and variable rate instruments,
including second lien loans, and high yield, high risk corporate bonds. The
Trust may invest in Senior Loans and other securities of any credit quality,
including Senior Loans and other investments that are rated below investment
grade, or are unrated but are determined by the investment subadviser to be of
equivalent credit quality. Below investment grade securities are commonly
referred to as "junk bonds" and are considered speculative with respect to the
issuer's capacity to pay interest and repay principal. These securities involve
greater risk of loss, are subject to greater price volatility, and are less
liquid, especially during periods of economic uncertainty or change, than
higher rated debt securities. The Trust may invest in securities of issuers
that are in default or that are in bankruptcy.
The Trust is not limited in the percentage of its assets that may be invested
in Senior Loans and other securities deemed to be illiquid. Illiquid securities
may be difficult to dispose of at a fair price at the times when the Trust
believes it is desirable to do so and their market price is generally more
volatile than that of more liquid securities. Illiquid securities are also more
difficult to value and investment of the Trust's assets in illiquid securities
may restrict the Trust's ability to take advantage of market opportunities.
33
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited) (continued)
--------------------------------------------------------------------------------
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. Please refer to those documents when considering
the Trust's risks. At times, the Trust's investments may represent industries
or industry sectors that are interrelated or have common risks, making it more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors.
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 gains and losses 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 preparation of its financial statements, which are consistent with
those generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. 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. For the
limited number of Senior Loans for which no reliable price quotes are
available, such Senior Loans will be valued by Loan Pricing Corporation
through the use of pricing matrices to determine valuations.
Fixed-income securities are valued at prices supplied by independent
pricing services, which consider such factors as Treasury spreads, yields,
maturities and ratings. Valuations may be supplemented by values obtained
from dealers and other sources, as required. Equity securities are valued
at the last sale price on the principal exchange where they are traded.
Securities or loans for which quotations are not readily available are
valued at their fair values as determined by, or under the direction of,
the Board of Trustees. Trading in foreign securities is substantially
completed
34
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
each day at various times prior to the close of the NYSE. The values of
such securities used in computing the net asset value of the Trust's
shares are determined as of such times. The Trust may also use the fair
value of a security, including a non-U.S. security, when the closing
market price on the primary exchange where the security is traded no
longer accurately reflects the value of the security as of the close of
the exchange. At May 31, 2007, the Trust held no fair valued securities.
Temporary cash investments are valued at amortized cost which approximates
market value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Trust becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Discount and premium on debt
securities are accreted or amortized, respectively, daily, on an effective
yield to maturity basis and are included in interest income. Interest
income, including income on interest bearing cash accounts, is recorded on
an accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between
the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the Statement of Operations from the
effects of changes in market price of those securities but are included
with the net realized and unrealized gain or loss on investments.
35
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited) (continued)
--------------------------------------------------------------------------------
C. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareowners. Therefore, no federal income tax provision is
required.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the source of the Trust's distributions may
be shown in the accompanying financial statements as either from or in
excess of net investment income or net realized gain on investment
transactions, or from paid-in capital, depending on the type of book/tax
differences that may exist.
The tax character of current year distributions paid to common and
preferred shareowners will be determined at the end of the current fiscal
year. Distributions during the year ended November 30, 2006 were as
follows:
--------------------------------------------------------------------------------
2006
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $51,964,212
-----------
Total taxable distribution $51,964,212
===========
--------------------------------------------------------------------------------
The following shows the components of distributable earnings on a
federal income tax basis at November 30, 2006.
--------------------------------------------------------------------------------
2006
--------------------------------------------------------------------------------
Undistributed ordinary income $ 8,165,684
Distributions payable (121,987)
Long-term capital gain 116,226
Unrealized appreciation 9,109,746
-----------
Total $17,269,669
===========
--------------------------------------------------------------------------------
The difference between book basis and tax basis unrealized appreciation is
primarily attributable to the difference between book and tax amortization
methods for premiums and discounts on fixed income securities.
36
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
D. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the repurchase agreement at the time of purchase. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Trust's custodian, or subcustodians. Pioneer Investment
Management, Inc., the Trust's investment adviser is responsible for
determining that the value of the collateral remains at least equal to the
repurchase price.
E. Automatic Dividend Reinvestment Plan
All common shareowners 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.
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
37
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited) (continued)
--------------------------------------------------------------------------------
market price per share on the date of issuance does not exceed 5%. If, on
the payment date for any dividend, the net asset value per common share is
greater than the market value ("market discount"), the Plan Agent will
invest the dividend amount in common shares acquired in open-market
purchases. There are no brokerage charges with respect to newly issued
common shares. However, each participant will pay a pro rata share of
brokerage trading fees incurred with respect to the Plan Agent's
open-market purchases. Participating in the Plan does not relieve
shareowners from any federal, state or local taxes which may be due on
dividends paid in any taxable year. Shareowners holding Plan shares in a
brokerage account may not be able to transfer the shares to another broker
and continue to participate in the Plan.
2. Management Agreement
Pioneer Investment Management, Inc. ("PIM"), a wholly owned indirect subsidiary
of UniCredito Italiano S.p.A. ("UniCredito Italiano") manages the Trust's
portfolio. Management fees payable under the Trust's Advisory Agreement with
PIM are calculated daily at the annual rate of 0.70% of the Trust's average
daily managed assets. "Managed assets" is the average daily value of the
Trust's total assets minus the sum of the Trust's liabilities, which
liabilities exclude debt related to leverage, short-term debt and the aggregate
liquidation preference of any outstanding preferred shares. For the six months
ended May 31, 2007, the net management fee was equivalent to 0.70 % of the
Trust's average daily managed assets, which was equivalent to 1.04% of the
Trust's average daily net assets attributable to the common shareowners.
In addition, under PIM's management and administration agreements, certain
other services and costs are paid by PIM and reimbursed by the Trust. For the
six months ended May 31, 2007, $471,828 was payable to PIM related to
management costs, administrative costs and certain other services and is
included in "Due to affiliate" on the Statement of Assets and Liabilities.
PIM has appointed Princeton Administrators, LLC ("Princeton") to provide
certain administrative and accounting services to the Trust on its behalf. PIM
pays Princeton a monthly fee equal to 0.07% of the Trust's average daily
managed assets up to $500 million and 0.03% for average daily managed assets in
excess of $500 million. Princeton receives no compensation directly from the
Trust.
38
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
PIM has engaged Highland Capital Management, L.P. to act as the Trust's
investment sub-adviser ("Sub-adviser") and manage the Trust's investments. PIM
pays the Sub-adviser a monthly fee at an annual rate of 0.35% of the average
daily value of the Trust managed assets. The fee is paid monthly in arrears.
The Trust does not pay a fee to the Sub-adviser.
Also, PIM has agreed for the first three years of the Trust's investment
operations to limit the Trust's total annual expenses excluding offering costs
for common and preferred shares, interest expense, the cost of defending or
prosecuting any claim or litigation to which the Trust is a party (together
with any amount in judgment or settlement), indemnification expenses or taxes
incurred due to the failure of the Trust to qualify as a regulated investment
company under the Code or any other non-recurring or non-operating expenses; to
0.95% of the Trust's average daily managed assets. The dividend on any
preferred shares is not an expense for this purpose. For the six months ended
May 31, 2007, the Trust's expenses were not reduced under such arrangements.
3. Forward Foreign Currency Contracts
The Trust may enter into contracts that obligate the Trust to deliver
currencies at specified future dates. At the maturity of a contract, the Trust
must make delivery of the foreign currency. Alternatively, prior to the
settlement date of a portfolio hedge, the Trust may close out such contracts by
entering into an offsetting hedge contract. At May 31, 2007, the Trust had no
outstanding portfolio hedges or forward currency settlement contracts.
4. Unfunded Loan Commitments
As of May 31, 2007, the Trust had unfunded loan commitments of approximately
$10,494,000 which could be extended at the option of the borrower, pursuant to
the following loan agreements:
39
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited) (continued)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Unfunded
Commitment
Borrower (in thousands)
--------------------------------------------------------------------------------
American Cellular Corp., Delayed Draw Term Loan $ 97
Big West Oil, LLC, Delayed Advance Loan $ 2,200
Cricket Communications, Inc., Revolver $ 2,000
DeCrane Aircraft Holdings, Inc., First Lien Revolver $ 1,000
Fenwal, Inc., First Lien Delayed Draw Term Loan $ 571
Global Tel Link Corp., Acquisition Synthetic Deposit $ 174
Global Tel Link Corp., Acquisition Term Commitment $ 261
Iasis Healthcare LLC, Delayed Draw Term Loan $ 239
III Exploration II LP, Delayed Draw Term Loan $ 450
Lucite International U.S. Finco, LLC, Facility Term B-2 $ 124
Millennium Digital Media Systems, LLC, Revolver $ 1,719
OSI Restaurant Partners, Inc., Synthetic Revolver $ 150
Reliant Pharmaceuticals, Inc., Delayed Draw Term Loan $ 209
Univision Communications, Inc., Delayed Draw Term Loan $ 1,087
Valassis Communications Inc., Delayed Draw Term Loan $ 213
--------------------------------------------------------------------------------
5. Transfer Agents
Pioneer Investment Management Shareholder Services, Inc. ("PIMSS"), a wholly
owned indirect subsidiary of UniCredito Italiano, through a sub-transfer agency
agreement with American Stock Transfer & Trust Company, provides substantially
all transfer agent and shareowner services related to the Trust's common shares
at negotiated rates. Deutsche Bank Trust Company Americas ("Deutsche Bank") is
the transfer agent, registrar, dividend paying agent and redemption agent with
respect to the Trust's Auction Market Preferred Shares ("AMPS"). The Trust pays
Deutsche Bank an annual fee, as is agreed to from time to time by the Trust and
Deutsche Bank, for providing such services.
6. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized. Of the 24,399,062 common shares of beneficial interest outstanding
at May 31, 2007, PIM owned 5,240 shares.
Transactions in common shares of beneficial interest for the six months ended
May 31, 2007 and the year ended November 30, 2006 were as follows:
40
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
5/2007 11/2006
--------------------------------------------------------------------------------
Shares outstanding at beginning
of period 24,330,240 24,330,240
Reinvestment of distributions 68,822 -
---------- ----------
Shares outstanding at end
of period 24,399,062 24,330,240
========== ==========
--------------------------------------------------------------------------------
The Trust may classify or reclassify any unissued common shares of beneficial
interest into one or more series of preferred shares of beneficial interest. As
of May 31, 2007, there were 9,380 AMPS as follows: Series M7-3,130, Series
W7-3,125 and Series TH7-3,125.
Dividends on Series M7, Series W7 and Series TH7 are cumulative at a rate which
is reset every seven days based on the results of an auction. Dividend rates
ranged from 4.95% to 5.35% during the six months ended May 31, 2007.
The Trust may not declare dividends or make other distributions on its common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, asset coverage with respect to the outstanding
preferred shares would be less than 200%.
The AMPS are redeemable at the option of the Trust, in whole or in part, on any
dividend payment date at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared. The AMPS are also subject to mandatory
redemption at $25,000 per share plus any accumulated or unpaid dividends,
whether or not declared, if certain requirements relating to the composition of
the assets and liabilities of the Trust as set forth in the Agreement and
Declaration of Trust are not satisfied.
The holders of AMPS have voting rights equal to the holders of the Trust's
common shares (one vote per share) and will vote together with holders of the
common shares as a single class. However, holders of AMPS are also entitled to
elect two of the Trust's Trustees. In addition, the Investment Company Act of
1940, as amended, requires that along with approval by shareowners that might
otherwise be required, the approval of the holders of a majority of any
outstanding preferred shares, voting separately as a class, would be required
to (a) adopt any plan of reorganization that would adversely affect the
preferred shares and (b) take any action requiring a vote of security holders,
including, among other things, changes in the Trust's
41
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited) (continued)
--------------------------------------------------------------------------------
subclassification as a closed-end investment company or changes in its
fundamental investment restrictions.
7. New Pronouncements
On July 13, 2006, the Financial Accounting Standards Board ("FASB") released
FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN
48"). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken or expected to be taken in
the course of preparing the Trust's tax returns to determine whether the tax
positions have a "more-likely-than-not" probability of being sustained by the
applicable tax authority. Tax positions deemed to not meet the
more-likely-than-not threshold would be recorded as a tax benefit or expense in
the reporting period in which they are realized. Adoption of FIN 48 is required
for fiscal years beginning after December 15, 2006 and is to be applied to all
open tax years as of no later than November 30, 2007. At this time, management
is evaluating the implications of FIN 48 and any impact in the financial
statements has not been determined.
In addition, in September 2006, Statement of Financial Accounting Standards No.
157 Fair Value Measurements ("SFAS 157") was issued and is effective for fiscal
years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. At this time, management is currently evaluating the
implications of SFAS 157 and its impact on the Trust's financial statement
disclosures, if any, has not yet been determined.
8. Subsequent Event
Subsequent to May 31, 2007, the Board of Trustees of the Trust declared a
dividend from undistributed net investment income of $0.145 per common share
payable June 29, 2007, to common shareowners of record on June 15, 2007.
Subsequent to May 31, 2007, dividends declared and paid on preferred stock
totaled $929,369 in aggregate for the three outstanding preferred share series
through July 6, 2007.
42
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ADDITIONAL INFORMATION (unaudited)
During the period, there were no material changes in the Trust's investment
objective or fundamental policies that have not been approved by the
shareowners. There were no changes in the Trust's charter or By-Laws that would
delay or prevent a change in control of the Trust which have not been approved
by the shareowners. There were 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.
CEO CERTIFICATION DISCLOSURE (unaudited)
The Trust's Chief Executive Officer has submitted to the New York Stock
Exchange the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual. In addition, the Trust has filed with the
Securities and Exchange Commission the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
43
Pioneer Floating Rate Trust
--------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
--------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Margaret B.W. Graham Vincent Nave, Treasurer
Daniel K. Kingsbury Dorothy E. Bourassa, Secretary
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Shareowner Services and Sub-Transfer Agent
American Stock Transfer & Trust Company
Preferred Share Auction/Transfer Agent and Registrar
Deutsche Bank Trust Company Americas
Investment Sub Adviser
Highland Capital Management, L.P.
Sub-Administrator
Princeton Administrators, LLC
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Trust voted proxies relating to portfolio securities during
the most recent 12 months ended June 30, is publicly available to shareowners
at www.pioneerinvestments.com. This information is also available on our web
site and on the Securities and Exchange Commission's web site at
http://www.sec.gov.
44
--------------------------------------------------------------------------------
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
Telecommunications Device for the Deaf (TDD) 1-800-231-5469
Or write to AST:
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Company
Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Company
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 website pioneerinvestments.com.
The Trust files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied
at the Commission's Public Reference Room in Washington, DC. Information
regarding the operations of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.
The Trust's Chief Executive Officer is required by the New York Stock
Exchange's Listing Standards to file annually with the Exchange a
certification that he is not aware of any violation by the Trust of the
Exchange's Corporate Governance Standards applicable to the Trust. The Trust
has signed such certification.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
N/A
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
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 I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
N/A
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Information not required in semi annual reports on form NCSR.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
During the period covered by this report, there were no purchases
made by or on behalf of the registrant or any affiliated purchaser
as defined in Rule 10b-18(a)(3) under the Securities Exchange Act
of 1934 (the Exchange Act), of shares of the registrants equity
securities that are registered by the registrant pursuant to
Section 12 of the Exchange Act.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Floating Rate Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date July 31, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date July 31, 2007
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date July 31, 2007
* Print the name and title of each signing officer under his or her signature.