OMB APPROVAL
OMB Number: 3235-0570
Expires: August 31, 2013
Estimated average burden
hours per response.....18.9
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21043
Pioneer High Income Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: March 31
Date of reporting period: April 1, 2012 through September 30, 2012
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer High
Income Trust
--------------------------------------------------------------------------------
Semiannual Report | September 30, 2012
--------------------------------------------------------------------------------
Ticker Symbol: PHT
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Schedule of Investments 13
Financial Statements 38
Notes to Financial Statements 43
Trustees, Officers and Service Providers 54
Pioneer High Income Trust | Semiannual Report | 9/30/12 1
President's Letter
Dear Shareowner,
The U.S. stock market rallied sharply through the third quarter of 2012 amid a
sluggish, but nonetheless growing, U.S. economy. We have been cautiously
optimistic about the U.S. from the start of the year, and the economic data
continue to be encouraging. The housing and auto sectors are benefitting from
record-low interest rates. The climate for consumer and business credit has
improved, and inflation appears to be subdued. While corporate profits slowed in
the third quarter, many U.S. companies continue to have strong balance sheets
and to pay attractive dividends* compared to fixed-income securities.
All of these factors contributed to gains for investors who owned riskier
assets, including equities and higher-yielding corporate bonds. Year to date
through September 30, 2012, the Standard & Poor's 500 Index returned 16.35%. In
fixed income, the Bank of America Merrill Lynch High Yield Master II Index was
up by 12.02% during the same period, while the Barclays Capital Aggregate Bond
Index gained 3.99%. Treasury bonds, by contrast, generated a comparatively
sluggish return of 1.70%, as measured by the Barclays Capital Intermediate
Treasuries Index.
Despite this generally positive picture during the first nine months of 2012,
investors face powerful macroeconomic challenges in the months ahead. These
include the threat of a so-called "fiscal cliff" in the U.S. budget process
after the November elections, the European sovereign-debt crisis, and slowing
growth in both Europe and China. Investors can continue to count on market
volatility tied to these factors, although we remain optimistic that the
underlying economic trends are moving in the right direction.
At Pioneer, we have long advocated the benefits of staying diversified** and
investing for the long term. And while diversification alone does not assure a
profit or protect against loss in a declining market, we believe in actively
seeking out opportunities in undervalued securities and sectors around the
globe. Our advice, as always, is to work closely with a trusted financial
advisor to discuss your goals and work together to develop an investment
strategy that meets your individual needs. There is no single best strategy that
works for every investor.
* Dividends are not guaranteed.
** Diversification does not assure a profit or protect against loss in a
declining market.
2 Pioneer High Income Trust | Semiannual Report | 9/30/12
Pioneer's investment professionals focus on finding good opportunities in both
equity and bond markets using the same disciplined investment approach we have
used since 1928. Our strategy is to identify undervalued individual securities
with the greatest potential for success, carefully weighing risk against reward.
Our teams of investment professionals continually monitor and analyze the
relative valuations of different sectors and securities globally to help build
portfolios that we believe can help you achieve your investment goals.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer High Income Trust | Semiannual Report | 9/30/12 3
Portfolio Management Discussion | 9/30/12
Higher-yielding investments performed well during the six-month period ended
September 30, 2012 as interventions by major central banks around the world
eased immediate worries about the underpinnings of the global economic recovery.
In the following interview, Andrew Feltus discusses the factors that influenced
the performance of Pioneer High Income Trust during the six-month period ended
September 30, 2012. Mr. Feltus, senior vice president and portfolio manager at
Pioneer and a member of Pioneer's fixed-income team, is responsible for
day-to-day management of the Trust.
Q How did Pioneer High Income Trust perform during the six-month period
ended September 30, 2012?
A Pioneer High Income Trust returned 6.41% at net asset value and 17.61% at
market price during the six-month period ended September 30, 2012. During
the same six-month period, the Trust's benchmark, the Bank of America
Merrill Lynch (BofA ML) High Yield Master II Index, returned 6.53%. The
BofA ML High Yield Master II Index is a commonly accepted measure of the
performance of high-yield securities. During the same six-month period,
the average return (at market price) of the 38 closed-end funds in
Lipper's High Current Yield Closed End Funds category (which may or may
not be leveraged), was 10.27%.
The shares of the Trust were selling at a 36.9% premium to net asset value
at the end of the six-month period.
Unlike the Trust, the BofA ML High Yield Master II does not use leverage.
While the use of leverage can increase investment opportunity, it also can
increase investment risk.
On September 30, 2012, the standardized 30-day SEC yield on the Trust's
shares was 11.75%.
Q How would you describe the investment environment during the six-month
period ended September 30, 2012?
A The six months ended September 30, 2012, saw a continuance of the pattern
of alternating periods when risky asset classes moved in and out of favor
in the capital markets, while the general market trend favored investments
in securities that would benefit from a growing economy. As the pattern
persisted, global economic events seemed to have as much of an influence
on market trends as domestic issues, with investors closely watching
developments in China and Europe as well as in the United States. At the
start of the period, on April 1, 2012, high-yield bonds and other
perceived riskier asset classes remained in favor with the market, but
sentiment
4 Pioneer High Income Trust | Semiannual Report | 9/30/12
abruptly changed as evidence mounted that growth in China and the rest of
Asia was slowing, and that the sovereign-debt problems of several European
nations had not been solved. In the U.S., fears about the strength of the
economic recovery were exacerbated when some corporations began announcing
disappointing profit growth. Corporate bonds and other credit-sensitive
securities fell out of favor in the spring of 2012, amid renewed fears
about a potential global economic slowdown.
The market downturn continued through much of the summer of 2012, until
the announcements by central banks--particularly the European Central Bank
(ECB) and the U.S. Federal Reserve System (the Fed)--of their intentions
to inject more liquidity into the global financial system in an effort to
stimulate economic growth and encourage job creation. The ECB announced in
August 2012 that it could become more active in buying the short-term debt
of peripheral European nations, including Greece and Spain, in an effort
to keep borrowing rates low for national governments on the Continent.
Shortly after that, the Fed announced its third round of quantitative
easing ("QE3") in an effort to encourage lower interest rates through the
purchasing of mortgage-backed securities in the open market. Additionally,
monetary authorities in China announced that they also were lowering
short-term interest rates and easing credit conditions.
The combination of the central banks' announcements helped trigger a sharp
rally in the financial markets, and high-yield and other credit-sensitive
securities rallied through the end of the period (September 30, 2012),
outperforming higher-quality securities.
Q How did you manage the Trust in the prevailing market environment during
the six-month period ended September 30, 2012, and how did the Trust's
positioning influence its performance during the period?
A The Trust's management team consistently pursues a low-turnover strategy,
maintaining a portfolio of well-seasoned investments. Domestic high-yield
corporate bonds represented the largest component of the Trust's total
investment portfolio during the six-month period ended September 30, 2012.
The Trust's positioning helped to mute the effects of the market
volatility we experienced during the six-month period, with the Trust's
portfolio holding up relatively well when the market turned downward, but
not registering as many gains when the market rallied. With the added help
from the use of leverage, the Trust handily outperformed the benchmark
BofA ML High Yield Master II Index during the six-month period, and
continued to deliver above-average income.
At the end of the period on September 30, 2012, domestic high-yield
corporate bonds accounted for 56% of the Trust's total investment
portfolio, with international high-yield debt representing another 12%.
Bank loans represented 5% of the Trust's total investment portfolio, and
emerging
Pioneer High Income Trust | Semiannual Report | 9/30/12 5
markets and convertible bonds each represented 4% of the Trust's total
investment portfolio. Cash and cash-equivalents represented nearly 6% of
the Trust's total investment portfolio at period-end. The Trust also had
exposures to investment-grade corporate bonds, and event-linked
("catastrophe") bonds issued by insurance companies, among other asset
classes. The Trust's cash position was at higher-than-average levels at
period-end.
Q What individual securities or investment decisions had the most influence
on the Trust's performance, either positive or negative, during the
six-month period ended September 30, 2012?
A Some of the Trust's best individual performers during the six-month period
were bond holdings that appreciated after the issuing companies were
acquired and their old debt was retired. They included the securities of
theater chain AMC, which was acquired by foreign investors, and the debt
of packaging company BWAY, which was the subject of a buyout deal from a
private equity investor. Additionally, two issuers--fast food chain Burger
King and satellite communications company Intelsat--strengthened their
finances by deciding to go public, which resulted in gains for the Trust's
investments in the two companies.
By sector, the Trust's holdings of bonds of homebuilders performed well
during the six-month period, as the group recovered after housing sales
and construction trends appeared to bottom out and stabilize. The debt of
Beazer Homes USA was a standout for the Trust in the homebuilding group.
The Trust's securities in health care generally recovered during the
six-month period, as most of the group bounced back from the price losses
experienced in 2011, when investors were more concerned about
uncertainties created by passage of the U.S. Affordable Care Act. A
notable example of an outperformer in the Trust's portfolio was the debt
of Kindred Health Care, a home health care provider.
Despite the overall benchmark-relative outperformance during the six-month
period, the Trust's portfolio did have some disappointing investments,
particularly in the more cyclical areas of the economy (that is, groups
that are highly exposed to changes in the economic cycle). A weakening
demand for coal hurt the values of the Trust's bond holdings of coal
producers such as James River Coal and Bumi Capital, the latter of which
operates primarily in Indonesia. Similarly, the Trust's holdings in both
stainless steel producer Aperam, based in Europe, and steel producer Essar
Steel, operating in the U.S. and Canada, were affected by slowing economic
trends. The Trust's positions in the bonds of several other metals
producers also underperformed during the six-month period as base metal
prices declined. Similarly, returns from the Trust's holdings of chemical
companies tended to be weak.
6 Pioneer High Income Trust | Semiannual Report | 9/30/12
The Trust had one investment that defaulted during the six-month period:
KV Pharmaceutical. The company failed to meet its debt obligations as a
result of difficulties in enforcing its exclusivity production rights for
a drug product. The Trust's KV investment was 0.18% of the Trust's total
net assets, however, and did not have a significant impact on performance.
Q How did the level of leverage in the Trust change over the six months
ended September 30, 2012?
A At the end of the six-month period, 28.1% of the Trust's total managed
assets were financed by leverage, compared with 28.5% at the start of the
period on April 1, 2012. The change was due to fluctuations in the values
of securities in which the Trust had invested.
Q What is your investment outlook?
A The fundamentals supporting both the economy and corporate profits appear
solid, but in the short term, we expect that the capital markets will be
highly affected by events that occur as the U.S. government approaches the
so-called "fiscal cliff" budget scenario at the end of 2012. Congress is
not expected to take any action until sometime after the November
elections on three significant financial challenges: the nation's debt
ceiling; sequestration, which calls for unspecified, but deep,
across-the-board spending cuts in the absence of a budget agreement; and
the automatic end of the Bush-era tax cuts. If Congress and the President
cannot come to an agreement, the "fiscal cliff" would be reached.
Obviously, the outcome of the November elections will have a major
influence on how all three issues will be approached.
If there were a successful resolution to the nation's immediate debt,
spending and tax issues, we believe we would see less market volatility
and a return by investors to focusing on fundamental investment
principles. While the nation's economic growth, as measured by gross
domestic product, clearly slowed in the first and second quarters of 2012,
we think the prospects for improving economic conditions are good. The
more accommodative stances by the major central banks in the U.S., Europe,
China and Japan should help to encourage economic expansion as well as an
improvement in corporate profits. We think those factors should encourage
a higher level of economic growth, especially if the U.S. manages to avoid
the "fiscal cliff."
In an environment of extremely low interest rates, we think there should
be continuing investor appetite for corporate bonds and other
credit-sensitive securities that offer yield premiums over high-grade
debt. Nevertheless, the currently low absolute level of interest rates
does limit the total-return potential of fixed-income investments in
general.
Pioneer High Income Trust | Semiannual Report | 9/30/12 7
In this environment, we plan to remain cautious and be particularly
selective in choosing investments for the Trust. We expect to continue to
maintain a larger-than-normal cash position in the Trust's portfolio,
which should give us the flexibility to move aggressively should
investment opportunities present themselves.
As we enter the final quarter of 2012, the Trust's dividend yield remains
solid, although investors should be aware that any increase in short-term
interest rates could increase the Trust's borrowing costs and have an
effect on the dividend yield.
Please refer to the Schedule of Investments on pages 13-37 for a full listing of
Trust securities.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk.
The Trust may invest in securities of issuers that are in default or that are in
bankruptcy.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
When interest rates rise, the prices of fixed-income securities in the Trust
will generally fall. Conversely, when interest rates fall the prices of
fixed-income securities in the Trust will generally rise.
Investments in the Trust are subject to possible loss due to the financial
failure of the issuers of the underlying securities and their inability to meet
their debt obligations.
The Trust may invest up to 50% of its total assets in illiquid securities.
Illiquid securities may be difficult to dispose of at a fair price at the times
when the Trust believes it is desirable to do so, and their market price is
generally more volatile than that of more liquid securities. Illiquid securities
are also more difficult to value and investment of the Trust's assets in
illiquid securities may restrict the Trust's ability to take advantage of market
opportunities.
The Trust currently uses leverage through the issuance of preferred shares.
Leverage creates significant risks, including the risk that the Trust's income
or capital appreciation will not be sufficient to cover the cost of leverage,
which may adversely affect the return for the holders of common shares. Since
February of 2008, regularly scheduled auctions for the Trust's preferred shares
have failed and preferred shareowners have not been able to sell their shares at
auction. The Board of Trustees of the Trust has considered, and continues to
consider, this issue.
The Trust is required to maintain certain regulatory and rating agency asset
coverage requirements in connection with its outstanding preferred shares. In
order to maintain required asset coverage levels, the Trust may be required to
alter the composition of its investment portfolio or take other actions, such as
8 Pioneer High Income Trust | Semiannual Report | 9/30/12
redeeming preferred shares with the proceeds from portfolio transactions, at
what might be inopportune times in the market. Such actions could reduce the net
earnings or returns to holders of the Trust's common shares over time.
Risks of investing in the Trust are discussed in greater detail in the Trust's
original offering documents relating to its common shares and shareowner reports
issued from time to time.
These risks may increase share price volatility.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes.
Pioneer High Income Trust | Semiannual Report | 9/30/12 9
Portfolio Summary | 9/30/12
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Corporate Bonds & Notes 77.2%
Temporary Cash Investments 5.7%
Senior Secured Floating Rate Loan Interests 4.5%
Convertible Bonds & Notes 4.3%
Tax Exempt Obligations 3.2%
Common Stocks 1.8%
Preferred Stocks 0.7%
Sovereign Debt Obligations 0.7%
Asset Backed Securities 0.7%
Convertible Preferred Stock 0.4%
Collateralized Mortgage Obligations 0.4%
Municipal Collateralized Debt Obligation 0.4%
Rights/Warrants 0.0%*
* Amounts to less than 0.1%
Portfolio Maturity
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
2-5 years 36.0%
5-7 years 30.4%
10-20 years 12.2%
7-10 years 12.9%
0-2 years 6.8%
20+ years 1.7%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Allmerican Financial Corp., 7.625%, 10/15/25 1.30%
--------------------------------------------------------------------------------
2. Chrysler Group LLC/CG Co-Issuer, Inc., 8.0%, 6/15/19 1.27
--------------------------------------------------------------------------------
3. Southern States Cooperative, Inc., 11.25%, 5/15/15 (144A) 1.17
--------------------------------------------------------------------------------
4. Charlotte Special Facilities Revenue, 5.6%, 7/1/27 1.15
--------------------------------------------------------------------------------
5. Mueller Water Products, Inc., 7.375%, 6/1/17 1.06
--------------------------------------------------------------------------------
6. HUB International, Ltd., 8.125%, 10/15/18 (144A) 0.99
--------------------------------------------------------------------------------
7. Intelsat Bermuda, Ltd., 11.5%, 2/4/17 0.98
--------------------------------------------------------------------------------
8. New Jersey Economic Development Authority Revenue, 7.0%, 11/15/30 0.91
--------------------------------------------------------------------------------
9. Liberty Mutual Group, Inc., 10.75%, 6/15/58 0.89
--------------------------------------------------------------------------------
10. Stanadyne Holdings, Inc., 10%, 8/15/14 0.89
--------------------------------------------------------------------------------
* This list excludes temporary cash investments. The portfolio is actively
managed, and current holdings may be different. The holdings listed
should not be considered recommendations to buy or sell any security
listed.
10 Pioneer High Income Trust | Semiannual Report | 9/30/12
Prices and Distributions | 9/30/12
Market Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9/30/12 3/31/12
--------------------------------------------------------------------------------
$18.66 $16.66
--------------------------------------------------------------------------------
Premium 36.9% 23.9%
--------------------------------------------------------------------------------
Net Asset Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9/30/12 3/31/12
--------------------------------------------------------------------------------
$13.63 $13.45
--------------------------------------------------------------------------------
Distributions per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term
Dividends Capital Gains Capital Gains
--------------------------------------------------------------------------------
4/1/12 - 9/30/12 $0.8250 $ -- $ --
--------------------------------------------------------------------------------
Pioneer High Income Trust | Semiannual Report | 9/30/12 11
Performance Update | 9/30/12
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in market value, plus
reinvested dividends and distributions, of a $10,000 investment made in common
shares of Pioneer High Income Trust, compared to that of the Bank of America
Merrill Lynch High Yield Master II Index.
Average Annual Total Returns
(As of September 30, 2012)
--------------------------------------------------------------------------------
Net Asset Market
Period Value (NAV) Price
--------------------------------------------------------------------------------
Life-of-Class
(4/25/02) 12.15% 15.07%
5 Years 10.71 16.46
1 Year 21.76 26.02
-------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Market Value of $10,000 Investment
Pioneer High Bank of America Merrill Lynch High Yield
Income Trust Master II Index
9/30/2002 $ 10,000 $ 10,000
9/30/2003 $ 13,197 $ 12,930
9/30/2004 $ 15,870 $ 14,527
9/30/2005 $ 17,625 $ 15,500
9/30/2006 $ 21,311 $ 16,730
9/30/2007 $ 22,254 $ 18,023
9/30/2008 $ 15,941 $ 15,926
9/30/2009 $ 25,027 $ 19,486
9/30/2010 $ 33,574 $ 23,094
9/30/2011 $ 37,869 $ 23,399
9/30/2012 $ 47,721 $ 27,831
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV, due to such factors as interest rate
changes and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Closed-end funds, unlike open-end funds, are not continuously offered. There is
a one-time public offering and, once issued, shares of closed-end funds are sold
in the open market through a stock exchange and frequently trade at prices lower
than their NAV. NAV per common share is total assets less total liabilities,
which includes preferred shares, divided by the number of common shares
outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends are
assumed to be reinvested at prices obtained under the Trust's dividend
reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the sale of Trust shares.
Index comparison begins April 30, 2002. The Bank of America Merrill Lynch High
Yield Master II Index is a commonly accepted measure of the performance of high
yield securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Trust returns, do not reflect any fees, expenses or sales
charges. The Index does not employ leverage. It is not possible to invest
directly in the Index.
12 Pioneer High Income Trust | Semiannual Report | 9/30/12
Schedule of Investments | 9/30/12 (Consolidated) (unaudited)
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 1.0% of Net Assets
BANKS -- 0.3%
Thrifts & Mortgage Finance -- 0.3%
196,743(a) CCC/Caa3 Amortizing Residential Collateral Trust,
Series 2002-BC1, Class M1, 1.492%, 1/25/32 $ 99,332
280,000(a) CCC/Caa3 Bear Stearns Asset Backed Securities Trust,
Series 2007-2, Class A3, 0.667%, 1/25/47 119,017
125,000 BB/NR CarNow Auto Receivables Trust, Series 2012-1A,
Class D, 6.9%, 11/15/16 (144A) 125,406
417,006(a) CCC/Caa1 Citigroup Mortgage Loan Trust, Inc., Series
2007-AHL3, Class A3A, 0.277%, 7/25/45 326,494
148,353(a) AAA/Caa2 FBR Securitization Trust, Series 2005-4,
Class AV24, 0.917%, 10/25/35 98,956
250,000(b) CCC/B3 Security National Mortgage Loan Trust,
Series 2007-1A, Class 1A3, 6.55%,
4/25/37 (144A) 230,684
--------------
Total Banks $ 999,889
----------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.1%
Hotels, Resorts, Cruise lines -- 0.1%
500,000 BB/NR Westgate Resorts LLC, Series 2012-2A, Class C,
9.0%, 1/20/25 (144A) $ 502,500
--------------
Total Consumer Services $ 502,500
----------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.6%
Airlines -- 0.6%
1,538,846(a) CCC/Caa1 Aircraft Finance Trust, Series 1999-1A,
Class A1, 0.701%, 5/15/24 (144A) $ 707,869
4,372(a) B-/Ba3 Aircraft Finance Trust, Series 1999-1A,
Class A2, 0.721%, 5/15/24 (144A) 4,153
784,707(a) B-/Caa2 Aviation Capital Group Trust, Series 2000-1A,
Class A1, 0.701%, 11/15/25 (144A) 376,659
1,719,817(a) CCC+/Caa2 Lease Investment Flight Trust, Series 1,
Class A1, 0.611%, 7/15/31 1,104,983
--------------
Total Transportation $ 2,193,664
----------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $3,601,662) $ 3,696,053
----------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.5%
of Net Assets
BANKS -- 0.4%
Thrifts & Mortgage Finance -- 0.4%
1,504,000(a) CCC/Caa2 Carrington Mortgage Loan Trust, Series
2007-FRE1, Class A2, 0.417%, 2/25/37 $ 1,146,696
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 13
Schedule of Investments | 9/30/12 (Consolidated) (unaudited) (continued)
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
327,898(a) D/NR WaMu Mortgage Pass Through Certificates,
Series 2006-AR16, Class 3A1, 4.909%,
12/25/36 $ 292,922
--------------
Total Banks $ 1,439,618
----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Investment Banking & Brokerage -- 0.1%
500,000(b) BBB-/NR Bear Stearns Commercial Mortgage Securities,
Series 2001-TOP2, Class D, 6.94%,
2/15/35 (144A) $ 496,519
--------------
Total Diversified Financials $ 496,519
----------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $2,064,176) $ 1,936,137
----------------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN INTERESTS -- 6.2%
of Net Assets*
AUTOMOBILES & COMPONENTS -- 0.5%
Auto Parts & Equipment -- 0.5%
1,861,650 B+/B1 Metaldyne LLC, Term Loan, 5.25%, 5/18/17 $ 1,891,902
--------------
Total Automobiles & Components $ 1,891,902
----------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.8%
Aerospace & Defense -- 0.8%
3,080,975 B/B3 API Technologies Corp., Term Loan,
8.75%, 6/27/16 $ 3,104,083
--------------
Total Capital Goods $ 3,104,083
----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.4%
Other Diversified Financial Services -- 0.4%
443,368 B-/B3 BNY ConvergEX Group LLC, Second Lien
(EZE) Term Loan, 8.75%, 12/18/17 $ 413,994
1,056,633 B-/B3 BNY ConvergEX Group LLC, Second Lien (TOP)
Term Loan, 8.75%, 12/18/17 986,631
126,444 NR/NR Long Haul Holdings, Ltd., Facility Term Loan A,
0.0%, 1/12/13 56,900
100,918 NR/NR PT Bakrie & Brothers Tbk, Facility Term Loan B,
0.0%, 1/12/13 45,413
--------------
Total Diversified Financials $ 1,502,938
----------------------------------------------------------------------------------------------------------------
ENERGY -- 0.7%
Coal & Consumable Fuels -- 0.1%
750,000 NR/NR PT Bumi Resources Tbk, Term Loan,
11.228%, 8/7/13 $ 656,250
----------------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 0.2%
668,388 NR/B3 Aquilex Holdings LLC, Term Loan, 8.75%,
4/1/16 $ 670,894
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer High Income Trust | Semiannual Report | 9/30/12
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.4%
1,540,000 BB-/NR Chesapeake Energy Corp., Term Loan,
8.5%, 12/2/17 $ 1,547,058
--------------
Total Energy $ 2,874,202
----------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.3%
Packaged Foods & Meats -- 0.3%
1,300,000 BB-/B2 Pierre Foods, Inc., Second Lien Term Loan,
11.25%, 9/29/17 $ 1,313,813
--------------
Total Food, Beverage & Tobacco $ 1,313,813
----------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.5%
Health Care Services -- 0.2%
750,141 B/B2 National Specialty Hospitals, Inc., Initial Term
Loan, 8.25%, 2/3/17 $ 735,138
----------------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.3%
1,277,500 CCC/Caa3 Medical Card System, Inc., Term Loan,
12.0%, 9/17/15 $ 990,062
--------------
Total Health Care Equipment & Services $ 1,725,200
----------------------------------------------------------------------------------------------------------------
INSURANCE -- 1.1%
Insurance Brokers -- 1.1%
4,175,000 CCC+/B3 AmWINS Group, Inc., Second Lien, Term
Loan, 9.25%, 12/6/19 $ 4,187,178
--------------
Total Insurance $ 4,187,178
----------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.2%
Steel -- 0.2%
800,000 B/B1 Essar Steel Algoma, Inc., Term Loan, 7.5%,
9/20/14 $ 808,000
--------------
Total Materials $ 808,000
----------------------------------------------------------------------------------------------------------------
RETAILING -- 0.4%
Computer & Electronics Retail -- 0.4%
1,481,250 B/B2 Targus Group International, Inc., Term Loan,
11.0%, 5/24/16 $ 1,488,656
--------------
Total Retailing $ 1,488,656
----------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.1%
Application Software -- 1.1%
1,700,000 B+/B1 Applied Systems, Inc., Second Lien Term
Loan, 9.5%, 6/8/17 $ 1,701,063
2,500,000 CCC+/Caa1 Vertafore, Inc., Second Lien Term Loan,
9.75%, 10/29/17 2,512,500
--------------
Total Software & Services $ 4,213,563
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 15
Schedule of Investments | 9/30/12 (Consolidated) (unaudited) (continued)
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.2%
Electric Utilities -- 0.2%
1,316,443 CCC/Caa1 Texas Competitive Electric Holdings Co. LLC,
2017 Term Loan, 4.938%, 10/10/17 $ 910,197
--------------
Total Utilities $ 910,197
----------------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE LOAN INTERESTS
(Cost $24,373,479) $ 24,019,732
----------------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES -- 106.0% of Net Assets
AUTOMOBILES & COMPONENTS -- 4.6%
Auto Parts & Equipment -- 2.8%
1,140,000 B/Caa1 International Automotive Components Group
SA, 9.125%, 6/1/18 (144A) $ 1,094,400
4,760,000 CCC/Caa1 Stanadyne Holdings, Inc., 10.0%, 8/15/14 4,438,700
1,500,000(d) CCC-/Caa3 Stanadyne Holdings, Inc., 12.0%, 2/15/15 991,875
309,000 BB-/B1 Tomkins LLC/Tomkins, Inc., 9.0%, 10/1/18 344,535
3,579,000 B+/B1 Tower Automotive Holdings USA LLC / TA
Holdings Finance, Inc., 10.625%,
9/1/17 (144A) 3,856,373
--------------
$ 10,725,883
----------------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 1.8%
6,000,000 B/B2 Chrysler Group LLC/CG Co-Issuer, Inc., 8.0%,
6/15/19 $ 6,360,000
500,000 B/B2 Chrysler Group LLC/CG Co-Issuer, Inc.,
8.25%, 6/15/21 532,500
--------------
$ 6,892,500
--------------
Total Automobiles & Components $ 17,618,383
----------------------------------------------------------------------------------------------------------------
BANKS -- 1.1%
Diversified Banks -- 0.3%
1,265,000(b)(e) BB+/B1 ABN Amro North American Holding Preferred
Capital Repackage Trust I, 6.523% (144A) $ 1,170,125
----------------------------------------------------------------------------------------------------------------
Regional Banks -- 0.8%
1,225,000(b)(e) BBB/Baa3 PNC Financial Services Group, Inc., 8.25%, $ 1,271,486
1,790,000(b)(e) BBB+/Baa1 State Street Capital Trust III, 5.379% 1,790,233
--------------
$ 3,061,719
--------------
Total Banks $ 4,231,844
----------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 9.4%
Aerospace & Defense -- 1.9%
3,300,000 B/B3 ADS Tactical, Inc., 11.0%, 4/1/18 (144A) $ 3,291,750
4,139,000 B-/B2 DynCorp International, Inc., 10.375%, 7/1/17 3,569,887
295,000 B/B1 GeoEye, Inc., 9.625%, 10/1/15 328,925
--------------
$ 7,190,562
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Trust | Semiannual Report | 9/30/12
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
Building Products -- 0.9%
2,212,130 NR/NR Industrias Unidas SA de C.V., 11.5%,
11/15/16 $ 1,614,995
2,375,000 C /Caa3 New Enterprise Stone & Lime Co., Inc.,
11.0%, 9/1/18 1,710,000
--------------
$ 3,324,995
----------------------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.4%
1,500,000 B+/B1 Abengoa Finance SAU, 8.875%,
11/1/17 (144A) $ 1,387,500
----------------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.3%
363,000 B+/B3 American Railcar Industries, Inc., 7.5%, 3/1/14 $ 368,445
774,000 B+/B3 Manitowoc Co., Inc., 9.5%, 2/15/18 866,880
--------------
$ 1,235,325
----------------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.5%
2,000,000 B/B3 WireCo WorldGroup, Inc., 9.5%, 5/15/17 $ 2,140,000
----------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.2%
605,000 B+/B2 JB Poindexter & Co., Inc., 9.0%, 4/1/22 (144A) $ 605,000
----------------------------------------------------------------------------------------------------------------
Industrial Machinery -- 3.2%
3,180,000(f) NR/WR Indalex Holding Corp., 11.5%, 2/1/14 $ 12,084
1,080,000 B/Caa2 Liberty Tire Recycling, 11.0%, 10/1/16 (144A) 1,047,600
5,170,000 CCC+/Caa2 Mueller Water Products, Inc., 7.375%, 6/1/17 5,299,250
2,440,000 B+/NR WPE International Cooperatief UA, 10.375%,
9/30/20 (144A) 2,074,000
4,500,000 B/B3 Xerium Technologies, Inc., 8.875%, 6/15/18 3,982,500
--------------
$ 12,415,434
----------------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 2.0%
1,790,000 B-/B3 INTCOMEX, Inc., 13.25%, 12/15/14 $ 1,825,800
2,510,000 B-/B3 TRAC Intermodal LLC / TRAC Intermodal
Corp., 11.0%, 8/15/19 (144A) 2,622,950
3,370,000 B/B1 WESCO Distribution, Inc., 7.5%, 10/15/17 3,428,975
--------------
$ 7,877,725
--------------
Total Capital Goods $ 36,176,541
----------------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 0.3%
Environmental & Facilities Services -- 0.3%
892,000 CCC+/B3 Brickman Group Holdings, Inc., 9.125%,
11/1/18 (144A) $ 914,300
315,000 BB-/B3 Casella Waste Systems, Inc., 11.0%, 7/15/14 333,900
2,180,000(f) NR/WR Old AII, Inc., 10.0%, 12/15/16 22
--------------
Total Commercial & Professional Services $ 1,248,222
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 17
Schedule of Investments | 9/30/12 (Consolidated) (unaudited) (continued)
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 5.0%
Homebuilding -- 1.1%
3,115,000 CCC/Caa3 Beazer Homes USA, Inc., 9.125%, 6/15/18 $ 3,146,150
750,000 CCC/Caa3 Beazer Homes USA, Inc., 9.125%, 5/15/19 753,750
400,000 NR/Ba3 Urbi Desarrollos Urbanos SAB de CV, 9.75%,
2/3/22 (144A) 352,000
--------------
$ 4,251,900
----------------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 2.7%
1,435,000 B/B2 Jarden Corp., 7.5%, 5/1/17 $ 1,643,075
3,000,000 CCC+/Caa2 Reynolds Group Holdings, Ltd., 9.0%, 4/15/19 3,060,000
1,430,000 CCC+/Caa2 Reynolds Group Holdings, Ltd., 9.875%,
8/15/19 1,521,162
107,000 CCC+/B3 Yankee Candle Co., Inc., 8.5%, 2/15/15 108,338
2,500,000 CCC+/B3 Yankee Candle Co., Inc., 9.75%, 2/15/17 2,625,000
1,425,000(g) CCC+/Caa1 YCC Holdings LLC / Yankee Finance, Inc.,
10.25%, 2/15/16 1,474,875
--------------
$ 10,432,450
----------------------------------------------------------------------------------------------------------------
Leisure Products -- 1.2%
EUR 800,000 CCC/Caa2 Heckler & Koch GmbH, 9.5%, 5/15/18 (144A) $ 868,761
4,000,000 B/B2 Icon Health & Fitness, Inc., 11.875%,
10/15/16 (144A) 3,745,000
--------------
$ 4,613,761
--------------
Total Consumer Durables & Apparel $ 19,298,111
----------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 5.2%
Business Services -- 0.7%
1,750,000 B/B1 Sitel LLC / Sitel Finance Corp., 11.0%,
8/1/17 (144A) $ 1,758,750
1,100,000 B-/Caa2 Sitel LLC / Sitel Finance Corp., 11.5%, 4/1/18 797,500
--------------
$ 2,556,250
----------------------------------------------------------------------------------------------------------------
Casinos & Gaming -- 1.2%
1,650,000(f) NR/WR Buffalo Thunder Development Authority,
9.375%, 12/15/14 (144A) $ 594,000
2,255,000 B-/Caa2 Codere Finance Luxembourg SA, 9.25%,
2/15/19 (144A) 1,849,100
1,475,000 NR/NR Little Traverse Bay Bands of Odawa Indians,
9.0%, 8/31/20 (144A) 1,371,750
1,375,000(f)(h) NR/WR Mashantucket Western Pequot Tribe, 8.5%,
11/15/15 (144A) 123,750
740,000 CCC/Caa2 Shingle Springs Tribal Gaming Authority,
9.375%, 6/15/15 (144A) 610,500
--------------
$ 4,549,100
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Trust | Semiannual Report | 9/30/12
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
Education Services -- 0.1%
555,000 CCC-/B3 Cambium Learning Group, Inc.,
9.75%, 2/15/17 $ 410,700
----------------------------------------------------------------------------------------------------------------
Hotels, Resorts, Cruise lines -- 0.5%
250,000(b) BB-/NR Embarcadero Reinsurance Ltd., 7.341%, $ 252,575
2/13/15 (144A)
1,500,000 CCC+/B2 Seven Seas Cruises S de RL LLC, 9.125%,
5/15/19 $ 1,560,000
--------------
1,812,575
----------------------------------------------------------------------------------------------------------------
Restaurants -- 1.8%
4,055,000(d) B-/Caa1 Burger King Capital Holdings LLC, 0.0%,
4/15/19 (144A) $ 3,355,512
1,400,000 B/B3 Burger King Corp., 9.875%, 10/15/18 1,624,000
2,000,000 CCC+/Caa1 Wok Acquisition Corp., 10.25%,
6/30/20 (144A) 2,115,000
--------------
$ 7,094,512
----------------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.9%
500,000 B/B2 Avis Budget Car Rental LLC / Avis Budget
Finance, Inc., 9.625%, 3/15/18 $ 555,000
3,000,000 B-/B3 StoneMor Operating LLC, 10.25%, 12/1/17 3,000,000
--------------
$ 3,555,000
--------------
Total Consumer Services $ 19,978,137
----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.1%
Asset Management & Custody Banks -- 0.3%
975,000 BBB-/Baa3 Janus Capital Group, Inc., 6.7%, 6/15/17 $ 1,103,519
----------------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.5%
2,325,000(b) BB+/Ba2 Goldman Sachs Capital II, 4.0%, 6/1/43 $ 1,751,097
----------------------------------------------------------------------------------------------------------------
Multi-Sector Holdings -- 0.6%
2,200,000 B/B2 Constellation Enterprises LLC, 10.625%,
2/1/16 (144A) $ 2,310,000
----------------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.1%
250,000(a) BB/NR East Lane Re V, Ltd., 9.091%, 3/16/16 (144A) $ 268,225
----------------------------------------------------------------------------------------------------------------
Reinsurance -- 0.2%
800,000(a) BB/NR Lodestone Re, Ltd., 7.341%, 1/8/14 (144A) $ 807,520
----------------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.4%
500,000 BB+/Baa3 Capital One Capital V, 10.25%, 8/15/39 $ 515,000
450,000(a) BB+/NR Kibou, Ltd., 5.341%, 2/16/15 (144A) 457,920
695,000 B+/B2 National Money Mart Co., 10.375%, 12/15/16 776,662
--------------
$ 1,749,582
--------------
Total Diversified Financials $ 7,989,943
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 19
Schedule of Investments | 9/30/12 (Consolidated) (unaudited) (continued)
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
ENERGY -- 14.5%
Coal & Consumable Fuels -- 2.4%
1,350,000 B+ /B1 Bumi Capital Pte, Ltd., 12.0%, 11/10/16
(144A) $ 1,134,000
3,890,000 B/Caa1 Foresight Energy LLC / Foresight Energy Corp.,
9.625%, 8/15/17 (144A) 4,026,150
2,125,000 B-/B2 James River Coal Co., 7.875%, 4/1/19 1,216,562
1,166,000 B/B3 Murray Energy Corp., 10.25%, 10/15/15
(144A) 1,142,680
1,550,000 B/B2 Penn Virginia Resource Partners LP / Penn
Virginia Resource Finance Corp. II, 8.375%,
6/1/20 (144A) 1,600,375
--------------
$ 9,119,767
----------------------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.7%
2,466,000 BB-/B1 Northern Tier Energy LLC / Northern Tier
Finance Corp., 10.5%, 12/1/17 $ 2,700,270
----------------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 1.4%
500,000 B-/Caa1 Hercules Offshore, Inc., 10.5%, 10/15/17
(144A) $ 526,875
1,700,000 CCC+/Caa1 Ocean Rig UDW, Inc., 9.5%, 4/27/16 1,751,000
1,085,000 B-/B3 Offshore Group Investments, Ltd., 11.5%,
8/1/15 1,198,925
1,900,000 B+/B2 Pioneer Energy Services Corp., 9.875%,
3/15/18 2,066,250
--------------
$ 5,543,050
----------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 2.4%
4,073,000 B+/B1 American Petroleum Tankers Parent LLC / AP
Tankers Co., 10.25%, 5/1/15 $ 4,276,650
408,000(i) NR/NR DP Producer AS, 0.0%, 12/5/11 8,160
1,847,000 B/B3 Expro Finance Luxembourg SCA, 8.5%,
12/15/16 (144A) 1,902,410
1,260,000 B/Caa1 Forbes Energy Services, Ltd., 9.0%, 6/15/19 1,222,200
650,000(j) CCC/Caa2 Green Field Energy Services, Inc., 13.0%,
11/15/16 (144A) 637,000
238,581(f) NR/NR Nexus 1 Pte., Ltd., 10.5%, 4/9/12 (144A) 239
NOK 3,000,000(a) NR/NR Transocean Drilling Norway AS, 9.05%,
2/24/16 555,313
NOK 3,500,000 NR/NR Transocean Norway Drilling AS, 11.0%,
2/24/16 647,865
--------------
$ 9,249,837
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Trust | Semiannual Report | 9/30/12
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 5.2%
775,000 B+/B1 Berry Petroleum Co., 10.25%, 6/1/14 $ 867,031
500,000 B-/B3 Comstock Resources, Inc., 7.75%, 4/1/19 502,500
1,830,000 B-/B3 Comstock Resources, Inc., 9.5%, 6/15/20 1,967,250
390,000 BB/B1 Denbury Resources, Inc., 9.75%, 3/1/16 419,250
1,475,000 CCC+/B3 Halcon Resources Corp., 9.75%, 7/15/20
(144A) 1,508,188
678,000 B /B2 Linn Energy LLC / Linn Energy Finance Corp.,
11.75%, 5/15/17 755,970
1,050,000 B-/Caa1 Midstates Petroleum Co., Inc. / Midstates
Petroleum Co., LLC, 10.75%, 10/1/20
(144A) 1,094,625
2,400,000 B+/NR MIE Holdings Corp., 9.75%, 5/12/16 (144A) 2,478,000
NOK 2,000,000 NR/NR Norwegian Energy Co., AS, 10.25%, 4/27/16 357,038
NOK 5,000,000 NR/NR Norwegian Energy Co., AS, 12.9%, 11/20/14 852,397
1,110,000 B-/Caa1 QR Energy LP / QRE Finance Corp., 9.25%,
8/1/20 (144A) 1,132,200
3,380,000 CCC/Caa1 Quicksilver Resources, Inc., 7.125%, 4/1/16 2,889,900
2,200,000 B-/B3 Resolute Energy Corp., 8.5%, 5/1/20 (144A) 2,255,000
1,497,000 BB-/B3 Rosetta Resources, Inc., 9.5%, 4/15/18 1,654,185
1,500,000 B-/B3 Samson Investment Co., 9.75%,
2/15/20 (144A) 1,545,000
--------------
$ 20,278,534
----------------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 1.0%
1,000,000 B+/B1 Coffeyville Resources LLC, 10.875%,
4/1/17 (144A) $ 1,120,000
2,215,000 BB+/Ba1 Tesoro Corp., 9.75%, 6/1/19 2,563,863
--------------
$ 3,683,863
----------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.4%
350,000(b) BB+/Baa3 Enterprise Products Operating LLC,
8.375%, 8/1/66 $ 394,625
3,450,000 B/B2 EP Energy LLC / EP Energy Finance, Inc.,
9.375%, 5/1/20 (144A) 3,760,500
1,524,000(b) BB/Ba1 Southern Union Co., 3.462%, 11/1/66 1,215,390
--------------
$ 5,370,515
--------------
Total Energy $ 55,945,836
----------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.8%
Agricultural Products -- 1.5%
5,622,000 B/B3 Southern States Cooperative, Inc., 11.25%,
5/15/15 (144A) $ 5,860,935
----------------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 2.4%
775,000 BB/B1 Bertin SA / Bertin Finance Ltd., 10.25%,
10/5/16 (144A) $ 829,250
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 21
Schedule of Investments | 9/30/12 (Consolidated) (unaudited) (continued)
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- (continued)
1,250,000 B+/B1 CFG Investment SAC, 9.75%, 7/30/19 (144A) $ 987,500
2,500,000 B /B3 FAGE Dairy Industry SA/FAGE USA Dairy
Industry, Inc., 9.875%, 2/1/20 (144A) 2,456,250
500,000 B+/B2 Marfrig Overseas, Ltd., 9.625%, 11/16/16
(144A) 492,500
400,000 B+/B2 Minerva Luxembourg SA, 12.25%, 2/10/22
(144A) 461,480
4,000,000 B-/Caa1 Pilgrim's Pride Corp., 7.875%, 12/15/18 3,810,000
--------------
$ 9,036,980
----------------------------------------------------------------------------------------------------------------
Tobacco -- 0.9%
3,450,000 B-/B3 Alliance One International, Inc., 10.0%,
7/15/16 $ 3,570,750
--------------
Total Food, Beverage & Tobacco $ 18,468,665
----------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 7.6%
Health Care Equipment & Services -- 1.8%
3,000,000 CCC+/Caa2 Accellent, Inc., 10.0%, 11/1/17 $ 2,535,000
4,000,000 B+/B2 Physio-Control International, Inc., 9.875%,
1/15/19 (144A) 4,380,000
--------------
$ 6,915,000
----------------------------------------------------------------------------------------------------------------
Health Care Facilities -- 1.2%
535,000 B-/B3 HCA, Inc., 6.25%, 2/15/13 $ 542,356
84,000 BB/B2 HCA, Inc., 9.875%, 2/15/17 90,300
3,475,000 B-/B3 Kindred Healthcare, Inc., 8.25%, 6/1/19 3,379,438
600,000 CCC+/Caa1 United Surgical Partners International,
Inc., 9.0%, 4/1/20 (144A) 651,000
62,000(k) CCC+/Caa1 Vanguard Health Systems, Inc., 0.0%, 2/1/16 43,400
--------------
$ 4,706,494
----------------------------------------------------------------------------------------------------------------
Health Care Services -- 3.2%
1,987,000 B-/Caa1 BioScrip, Inc., 10.25%, 10/1/15 $ 2,140,992
2,527,000 CCC/Caa2 Gentiva Health Services, Inc., 11.5%, 9/1/18 2,384,856
- 3,925,000 CCC+/Caa1 Rural / Metro Corp., 10.125%, 7/15/19 (144A) 3,895,563
3,725,000 CCC+/Caa1 Surgical Care Affiliates, Inc., 10.0%,
7/15/17 (144A) 3,836,750
--------------
$ 12,258,161
----------------------------------------------------------------------------------------------------------------
Health Care Supplies -- 1.1%
1,000,000 B/Caa1 Bausch & Lomb, Inc., 9.875%, 11/1/15 $ 1,028,750
3,000,000 B-/Caa1 Immucor, Inc., 11.125%, 8/15/19 3,390,000
--------------
$ 4,418,750
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Trust | Semiannual Report | 9/30/12
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.3%
900,000 CCC+/Caa1 Emdeon, Inc., 11.0%, 12/31/19 (144A) $ 1,021,500
--------------
Total Health Care Equipment & Services $ 29,319,905
----------------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.5%
Personal Products -- 0.5%
700,000 CCC+/Caa1 Monitronics International, Inc., 9.125%,
4/1/20 $ 728,000
1,050,000 B/B2 Revlon Consumer Products Corp., 9.75%,
11/15/15 1,110,375
--------------
Total Household & Personal Products $ 1,838,375
----------------------------------------------------------------------------------------------------------------
INSURANCE -- 9.8%
Insurance Brokers -- 3.8%
3,305,000 CCC/Caa2 Alliant Holdings I, Inc., 11.0%, 5/1/15
(144A) $ 3,404,150
4,900,000 CCC+/Caa2 HUB International Ltd., 8.125%,
10/15/18 (144A) 4,961,250
GBP 1,625,000 NR/Caa1 Towergate Finance Plc, 10.5%, 2/15/19
(144A) 2,451,512
2,286,000(a) CCC/Caa1 USI Holdings Corp., 4.31%, 11/15/14
(144A) 2,211,705
1,610,000 CCC/Caa2 USI Holdings Corp., 9.75%, 5/15/15 (144A) 1,628,112
--------------
$ 14,656,729
----------------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 1.6%
3,075,000(b) BB/Baa3 Liberty Mutual Group, Inc., 10.75%,
6/15/58 (144A) $ 4,458,750
1,100,000 BBB/Baa2 MetLife, Inc., 10.75%, 8/1/39 1,633,500
--------------
$ 6,092,250
----------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 1.8%
5,300,000 BBB-/Baa3 Allmerican Financial Corp., 7.625%, 10/15/25 $ 6,512,937
265,000(b)(e) BB+/Ba2 White Mountains Insurance Group, Ltd.,
7.506%, 5/29/49 (144A) 270,077
--------------
$ 6,783,014
----------------------------------------------------------------------------------------------------------------
Reinsurance -- 2.6%
250,000(a) B-/NR Blue Fin Ltd., 14.091%, 5/28/13 (144A) $ 259,500
250,000(a) NR/B1 Combine Re, Ltd., 10.091%, 1/7/15 (144A) 262,525
1,000,000(a) NR/NR Combine Re, Ltd., 17.841%, 1/7/15 (144A) 1,051,100
250,000(a) BB-/NR Compass Re, Ltd., 10.341%, 1/8/15 (144A) 258,775
250,000(a) B+/NR Compass Re, Ltd., 11.341%, 1/8/15 (144A) 257,925
350,000(a) BB+/NR Foundation Re III, Ltd., 5.091%, 2/25/15 354,865
250,000(a) BB-/NR Ibis Re II, Ltd., 8.441%, 2/5/15 (144A) 257,200
400,000(a) B-/NR Ibis Re II, Ltd., 13.591%, 2/5/15 (144A) 418,200
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 23
Schedule of Investments | 9/30/12 (Consolidated) (unaudited) (continued)
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
700,000(b) BB-/NR Loma Reinsurance, Ltd., 9.977%,
12/21/12 (144A) $ 703,360
300,000(a) CCC+/NR Montana Re, Ltd., 13.66%, 12/7/12 (144A) 300,060
500,000(a) B/NR Mystic Re, Ltd., 12.091%, 3/12/15 (144A) 528,800
600,000(a) NR/B2 Mythen, Ltd., 11.407%, 5/7/15 (144A) 631,260
1,250,000(a) NR/NR Pelican Re, Ltd., 13.841%, 4/13/15 (144A) 1,251,500
500,000(a) BB-/NR Queen Street II Capital, Ltd., 7.591%,
4/9/14 (144A) 502,050
250,000(a) B+/NR Queen Street V Re, Ltd., 8.591%,
4/9/15 (144A) 250,850
250,000(a) B/NR Queen Street VI Re, Ltd., 10.441%,
4/9/15 (144A) 253,500
250,000(a) NR/NR Residential Reinsurance 2011, Ltd.,
8.991%, 12/6/15 (144A) 247,425
450,000(a) B-/NR Residential Reinsurance 2011, Ltd.,
12.091%, 6/6/15 (144A) 459,810
250,000(a) NR/NR Residential Reinsurance 2011, Ltd., 13.25%,
12/6/15 (144A) 251,775
250,000(a) BB-/NR Residential Reinsurance 2012, Ltd., 8.091%,
6/6/16 (144A) 254,225
250,000(a) BB-/NR Residential Reinsurance 2012, Ltd., 10.091%,
6/6/16 (144A) 262,525
400,000(a) NR/NR Residential Reinsurance 2012, Ltd., 22.091%,
6/6/16 (144A) 399,400
500,000(a) NR/NR Successor X, Ltd., 13.0%, 2/25/14 (144A) 511,150
250,000(a) NR/NR Successor X, Ltd., 16.591%, 1/27/15 (144A) 253,325
--------------
$ 10,181,105
--------------
Total Insurance $ 37,713,098
----------------------------------------------------------------------------------------------------------------
MATERIALS -- 19.4%
Aluminum -- 0.0%+
694(g) CCC+/B3 Noranda Aluminum Acquisition Corp.,
4.73%, 5/15/15 $ 659
----------------------------------------------------------------------------------------------------------------
Commodity Chemicals -- 1.7%
3,250,000 BB+/WR Basell Finance Co., BV, 8.1%, 3/15/27 (144A) $ 4,387,500
2,600,000 CCC+/NR Hexion US Finance Corp., 9.0%, 11/15/20 2,320,500
--------------
$ 6,708,000
----------------------------------------------------------------------------------------------------------------
Construction Materials -- 1.6%
5,690,000 CC/Caa3 AGY Holding Corp., 11.0%, 11/15/14 $ 2,802,325
3,000,000 B-/Caa2 Texas Industries, Inc., 9.25%, 8/15/20 3,180,000
--------------
$ 5,982,325
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Trust | Semiannual Report | 9/30/12
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 1.5%
2,625,000 CCC+/Caa1 INEOS Group Holdings PLC, 8.5%,
2/15/16 (144A) $ 2,480,625
EUR 550,000 CCC+/Caa1 INEOS Group Holdings SA, 7.875%,
2/15/16 (144A) 655,587
1,597,000 B/B2 Kinove German Bondco GmbH, 9.625%,
6/15/18 (144A) 1,748,715
EUR 950,000 NR/Caa1 Momentive Performance Materials, Inc.,
9.5%, 1/15/21 891,252
--------------
$ 5,776,179
----------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.1%
2,000,000 B/B3 Global Brass and Copper, Inc., 9.5%,
6/1/19 (144A) $ 2,170,000
3,000,000 CCC+/Caa1 Midwest Vanadium Pty., Ltd., 11.5%,
2/15/18 (144A) 1,830,000
2,775,000 CCC+/Caa1 Mirabela Nickel, Ltd., 8.75%, 4/15/18 (144A) 2,081,250
1,200,000 CCC+/B3 Molycorp, Inc., 10.0%, 6/1/20 (144A) 1,188,000
900,000 B+/B1 Mongolian Mining Corp., 8.875%,
3/29/17 (144A) 911,250
--------------
$ 8,180,500
----------------------------------------------------------------------------------------------------------------
Forest Products -- 0.8%
4,000,000 B-/B3 Millar Western Forest Products, Ltd.,
8.5%, 4/1/21 $ 3,240,000
----------------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 2.4%
1,677,876(g) CCC+/Caa1 Ardagh Finance SA, 11.125%, 6/1/18
(144A) $ 1,669,487
EUR 2,250,000 CCC+/B3 Ardagh Glass Finance Plc, 8.75%,
2/1/20 (144A) 2,891,587
1,450,000 CCC+/B3 BWAY Holdings Co., 10.0%, 6/15/18 1,631,250
2,817,201(g) CCC+/Caa1 BWAY Parent Co., Inc., 10.125%, 11/1/15 2,972,147
--------------
$ 9,164,471
----------------------------------------------------------------------------------------------------------------
Paper Packaging -- 2.0%
2,000,000 CCC /Caa1 Berry Plastics Corp., 9.5%, 5/15/18 $ 2,195,000
2,657,034(d) NR/NR Bio Pappel SAB de CV, 7.0%, 8/27/16 2,338,190
2,500,000 B-/Caa1 Pretium Packaging LLC / Pretium Finance,
Inc., 11.5%, 4/1/16 2,556,250
500,000 BB-/B1 Sealed Air Corp., 8.125%, 9/15/19 (144A) 556,250
--------------
$ 7,645,690
----------------------------------------------------------------------------------------------------------------
Paper Products -- 2.0%
2,000,000 B+/B1 Appleton Papers, Inc., 10.5%, 6/15/15 (144A) $ 2,125,000
600,000 CCC+/B3 Appleton Papers, Inc., 11.25%, 12/15/15 600,000
405,000 BB/Ba3 Clearwater Paper Corp., 10.625%, 6/15/16 446,513
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 25
Schedule of Investments | 9/30/12 (Consolidated) (unaudited) (continued)
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
Paper Products -- (continued)
2,220,000 CCC+/Caa2 Exopack Holdings Corp., 10.0%, 6/1/18 $ 2,131,200
776,000 B+/B3 Mercer International, Inc., 9.5%, 12/1/17 830,320
1,469,000 BB-/B1 Resolute Forest Products, 10.25%, 10/15/18 1,670,987
--------------
$ 7,804,020
----------------------------------------------------------------------------------------------------------------
Steel -- 5.3%
2,450,000 B+/B3 AM Castle & Co., 12.75%, 12/15/16 $ 2,768,500
1,200,000 BB-/B2 APERAM, 7.375%, 4/1/16 (144A) 1,026,000
1,960,000 B/Caa1 Atkore International, Inc., 9.875%, 1/1/18 1,906,100
2,400,000 BBB-/Ba1 CSN Islands VIII Corp., 9.75%, 12/16/13
(144A) 2,595,000
4,660,000 CCC/Caa2 Essar Steel Algoma, Inc., 9.875%, 6/15/15
(144A) 3,693,050
500,000 B+/B3 Ferrexpo Finance Plc, 7.875%, 4/7/16 (144A) 472,500
2,915,000 B/B2 Optima Specialty Steel, Inc., 12.5%,
12/15/16 (144A) 3,075,325
3,750,000(e) CCC+/Caa2 Ryerson, Inc., 0.0% (144A) 3,834,375
1,250,000 B/B3 Severstal Columbus LLC, 10.25%, 2/15/18 1,250,000
--------------
$ 20,620,850
--------------
Total Materials $ 75,122,694
----------------------------------------------------------------------------------------------------------------
MEDIA -- 7.8%
Advertising -- 1.6%
2,900,000 NR/B3 Good Sam Enterprises LLC, 11.5%, 12/1/16 $ 3,074,000
2,690,000 B/B3 MDC Partners, Inc., 11.0%, 11/1/16 2,932,100
--------------
$ 6,006,100
----------------------------------------------------------------------------------------------------------------
Broadcasting -- 3.7%
4,638,075(g) CCC+/Caa3 Intelsat Bermuda, Ltd., 11.5%, 2/4/17 $ 4,916,359
375,000(g) CCC+/Caa3 Intelsat Luxembourg SA, 11.5%, 2/4/17
(144A) 397,500
EUR 1,200,000 B+/B1 Nara Cable Funding, Ltd., 8.875%,
12/1/18 (144A) 1,411,095
800,000 B-/B3 Telesat Canada / Telesat LLC, 12.5%, 11/1/17 890,000
3,805,000 B/B3 Townsquare Radio LLC / Townsquare Radio,
Inc., 9.0%, 4/1/19 (144A) 4,090,375
2,380,000 CCC+/Caa1 Truven Health Analytics, Inc., 10.625%,
6/1/20 (144A) 2,546,600
--------------
$ 14,251,929
----------------------------------------------------------------------------------------------------------------
Cable -- 0.7%
1,096,054 B/B2 CCH II LLC / CCH II Capital Corp., 13.5%,
11/30/16 $ 1,189,218
1,500,000 B-/Caa1 Ono Finance II Plc, 10.875%,
7/15/19 (144A) 1,275,000
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Trust | Semiannual Report | 9/30/12
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
Cable -- (continued)
EUR 350,000 B-/Caa1 Ono Finance II Plc, 11.125%,
7/15/19 (144A) $ 383,457
--------------
$ 2,847,675
----------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.9%
2,765,000 CCC+ /Caa1 AMC Entertainment, Inc., 9.75%, 12/1/20 $ 3,114,082
600,000 CCC+/Caa1 Production Resource Group, Inc.,
8.875%, 5/1/19 420,000
--------------
$ 3,534,082
----------------------------------------------------------------------------------------------------------------
Publishing -- 0.9%
1,400,000 CCC/Caa3 Cengage Learning Acquisitions, Inc., 10.5%,
1/15/15 (144A) $ 1,167,250
400,000 B/Caa1 Interactive Data Corp., 10.25%, 8/1/18 448,000
2,200,000(h) B-/B3 MPL 2 Acquisition Canco, Inc., 9.875%,
8/15/18 (144A) 1,969,000
--------------
$ 3,584,250
--------------
Total Media $ 30,224,036
----------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 2.5%
Biotechnology -- 1.4%
1,400,000 B/Caa1 ConvaTec Healthcare E SA, 10.5%,
12/15/18 (144A) $ 1,519,000
4,104,000 B+/Caa2 Lantheus Medical Imaging, Inc.,
9.75%, 5/15/17 3,868,020
--------------
$ 5,387,020
----------------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.9%
3,432,664 B/Caa1 Catalent Pharma Solutions, Inc., 9.5%, 4/15/15 $ 3,497,026
----------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.2%
2,020,000(f) NR/NR KV Pharmaceutical Co., 12.0%, 3/15/15 $ 686,800
--------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 9,570,846
----------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.7%
Diversified REIT's -- 0.3%
1,500,000 B+/Ba3 CNL Lifestyle Properties, Inc., 7.25%, 4/15/19 $ 1,421,250
----------------------------------------------------------------------------------------------------------------
Real Estate Operating Companies -- 0.4%
1,479,000 B-/B3 Forest City Enterprises, Inc., 7.625%, 6/1/15 $ 1,478,076
--------------
Total Real Estate $ 2,899,326
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 27
Schedule of Investments | 9/30/12 (Consolidated) (unaudited) (continued)
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
RETAILING -- 0.8%
Distributors -- 0.8%
2,862,000 B+/B2 Minerva Overseas II, Ltd., 10.875%,
11/15/19 (144A) $ 3,162,510
--------------
Total Retailing $ 3,162,510
----------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.4%
Semiconductor Equipment -- 0.4%
1,895,000 B+/Caa1 MEMC Electronic Materials, Inc., 7.75%, 4/1/19 $ 1,553,900
----------------------------------------------------------------------------------------------------------------
Semiconductors -- 0.0%+
CNY 1,000,000 NR/NR LDK Solar Co., Ltd., 10.0%, 2/28/14 $ 47,137
--------------
Total Semiconductors & Semiconductor
Equipment $ 1,601,037
----------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 2.6%
Application Software -- 0.5%
2,960,000 CC /Caa2 Allen Systems Group, Inc., 10.5%,
11/15/16 (144A) $ 1,924,000
----------------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 1.1%
1,783,000 B-/Caa1 First Data Corp., 8.25%, 1/15/21 (144A) $ 1,778,542
399,000 B-/Caa1 First Data Corp., 9.875%, 9/24/15 406,980
1,783,000 B-/Caa1 First Data Corp., 12.625%, 1/15/21 1,847,634
--------------
$ 4,033,156
----------------------------------------------------------------------------------------------------------------
Systems Software -- 1.0%
4,560,951(g)(h) NR/NR Pegasus Solutions, Inc., 13.0%, 4/15/14 (144A) $ 4,013,637
--------------
Total Software & Services $ 9,970,793
----------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.2%
Computer Storage & Peripherals -- 0.2%
580,000 BBB/Baa3 Seagate Technology International, Inc.,
10.0%, 5/1/14 (144A) $ 636,550
--------------
Total Technology Hardware & Equipment $ 636,550
----------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 1.6%
Alternative Carriers -- 0.5%
1,000,000 BB-/WR PAETEC Holding Corp., 8.875%, 6/30/17 $ 1,085,000
600,000 NR/WR PAETEC Holding Corp., 9.875%, 12/1/18 687,000
--------------
$ 1,772,000
----------------------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- 0.9%
3,539,000 CCC+/B3 Cincinnati Bell, Inc., 8.75%, 3/15/18 $ 3,592,085
----------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.2%
725,000 BB/Ba3 Vimpel Communications Via VIP Finance Ireland,
Ltd., OJSC, 9.125%, 4/30/18 (144A) $ 829,908
--------------
Total Telecommunication Services $ 6,193,993
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Trust | Semiannual Report | 9/30/12
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 2.6%
Air Freight & Logistics -- 1.2%
4,601,000 CCC+/Caa1 CEVA Group PLC, 11.5%, 4/1/18 (144A) $ 4,048,880
720,000 CCC+/B3 CEVA Group PLC, 11.625%, 10/1/16 (144A) 738,000
--------------
$ 4,786,880
----------------------------------------------------------------------------------------------------------------
Airlines -- 0.3%
779,000 BB-/Ba2 Delta Air Lines, Inc., 9.5%, 9/15/14 (144A) $ 817,950
500,000 B-/NR Gol Finance, 9.25%, 7/20/20 (144A) 459,000
--------------
$ 1,276,950
----------------------------------------------------------------------------------------------------------------
Marine -- 0.1%
295,000 B+/B3 Navios South American Logistics, Inc./Navios
Logistics Finance US, Inc., 9.25%, 4/15/19 $ 277,300
----------------------------------------------------------------------------------------------------------------
Railroads -- 0.2%
1,057,439(g) CCC/Caa3 Florida East Coast Holdings Corp., 10.5%,
8/1/17 $ 946,408
----------------------------------------------------------------------------------------------------------------
Trucking -- 0.8%
1,375,000 B+/Caa1 Swift Services Holdings, Inc., 10.0%, 11/15/18 $ 1,488,437
1,430,000 B/B3 Syncreon Global Ireland, Ltd., 9.5%,
5/1/18 (144A) 1,490,775
--------------
$ 2,979,212
--------------
Total Transportation $ 10,266,750
----------------------------------------------------------------------------------------------------------------
UTILITIES -- 2.5%
Electric Utilities -- 0.8%
310,000 NR/Caa1 Empresa Distrbuidora Y Comercializadora Norte,
9.75%, 10/25/22 (144A) $ 155,000
885,000 B-/Caa3 Energy Future Holdings Corp., 10.0%, 1/15/20 975,712
1,000,000 BB+/Ba1 PNM Resources, Inc., 9.25%, 5/15/15 1,145,000
350,000 CCC/Caa1 Texas Competitive Electric Holdings Co. LLC /
TCEH Finance, Inc., 11.5%, 10/1/20 (144A) 273,875
2,105,000 CC/Caa3 Texas Competitive Electric Holdings Co. LLC /
TCEH Finance, Inc., 15.0%, 4/1/21 778,850
--------------
$ 3,328,437
----------------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy Traders -- 0.9%
1,800,000 BB-/Ba3 InterGen NV, 9.0%, 6/30/17 (144A) $ 1,732,500
1,500,000 NR/B2 Star Energy Geothermal Wayang Windu Ltd.,
11.5%, 2/12/15 (144A) 1,612,500
--------------
$ 3,345,000
----------------------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.8%
3,164,155 NR/NR Ormat Funding Corp., 8.25%, 12/30/20 $ 3,005,948
--------------
Total Utilities $ 9,679,385
----------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES
(Cost $403,651,088) $ 409,154,980
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 29
Schedule of Investments | 9/30/12 (Consolidated) (unaudited) (continued)
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS & NOTES -- 6.0% of Net Assets
DIVERSIFIED FINANCIALS -- 0.1%
Asset Management & Custody Banks -- 0.1%
400,000 BBB/NR Apollo Investment Corp., 5.75%, 1/15/16 $ 412,000
--------------
Total Diversified Financials $ 412,000
----------------------------------------------------------------------------------------------------------------
ENERGY -- 1.4%
Coal & Consumable Fuels -- 0.5%
1,905,000 B+/NR Massey Energy Co., 3.25%, 8/1/15 $ 1,757,363
----------------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.6%
2,265,000(d) NR/NR Hercules Offshore, Inc., 3.375%, 6/1/38 $ 2,270,662
----------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.3%
1,340,000 BB-/Ba3 Chesapeake Energy Corp., 2.5%, 5/15/37 $ 1,203,487
--------------
Total Energy $ 5,231,512
----------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.6%
Health Care Equipment & Services -- 0.8%
2,837,000(d) B+/NR Hologic, Inc., 2.0%, 12/15/37 $ 3,180,986
----------------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.7%
1,985,000 B/Ba3 LifePoint Hospitals, Inc., 3.25%, 8/15/25 $ 1,994,925
780,000 B/NR LifePoint Hospitals, Inc., 3.5%, 5/15/14 847,762
--------------
$ 2,842,687
----------------------------------------------------------------------------------------------------------------
Health Care Services -- 0.1%
361,000 B+/B2 Omnicare, Inc., 3.25%, 12/15/35 $ 356,488
--------------
Total Health Care Equipment & Services $ 6,380,161
----------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.9%
Diversified Chemicals -- 0.9%
4,000,000(j) B+/NR Hercules, Inc., 6.5%, 6/30/29 $ 3,312,500
--------------
Total Materials $ 3,312,500
----------------------------------------------------------------------------------------------------------------
MEDIA -- 0.5%
Movies & Entertainment -- 0.5%
1,832,000 B-/NR Live Nation Entertainment, Inc.,
2.875%, 7/15/27 $ 1,797,650
--------------
Total Media $ 1,797,650
----------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.4%
Semiconductors -- 0.4%
500,000 NR/NR JA Solar Holdings Co., Ltd., 4.5%, 5/15/13 $ 475,000
750,000 NR/NR ReneSola, Ltd., 4.125%, 3/15/18 (144A) 377,813
1,569,000 NR/NR Suntech Power Holdings Co., Ltd., 3.0%, 3/15/13 776,655
--------------
Total Semiconductors & Semiconductor
Equipment $ 1,629,468
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer High Income Trust | Semiannual Report | 9/30/12
----------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 1.1%
Alternative Carriers -- 1.1%
3,025,000 BB-/B2 Tw Telecom, Inc., 2.375%, 4/1/26 $ 4,280,375
--------------
Total Telecommunication Services $ 4,280,375
----------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS & NOTES
(Cost $17,708,931) $ 23,043,666
----------------------------------------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATIONS -- 0.9% of Net Assets
Argentina -- 0.3%
1,200,000 B/B2 City of Buenos Aires, 12.5%, 4/6/15 (144A) $ 1,212,000
----------------------------------------------------------------------------------------------------------------
Russia -- 0.6%
1,867,600(d) BBB/Baa1 Russian Government International Bond,
7.5%, 3/31/30 $ 2,357,845
----------------------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATIONS
(Cost $2,518,596) $ 3,569,845
----------------------------------------------------------------------------------------------------------------
TAX EXEMPT OBLIGATIONS -- 4.4% of Net Assets
Indiana -- 0.4%
1,650,000 NR/Baa3 East Chicago Indiana Exempt Facilities Revenue,
7.0%, 1/1/14 $ 1,660,329
----------------------------------------------------------------------------------------------------------------
New Jersey -- 1.2%
4,525,000 B/B3 New Jersey Economic Development Authority
Revenue, 7.0%, 11/15/30 $ 4,542,331
----------------------------------------------------------------------------------------------------------------
New York -- 0.9%
3,475,000 BB/B2 New York City Industrial Development Agency
Revenue, 7.625%, 12/1/32 $ 3,543,180
----------------------------------------------------------------------------------------------------------------
North Carolina -- 1.9%
1,670,000 NR/NR Charlotte North Carolina Special Facilities
Revenue, 7.75%, 2/1/28 $ 1,672,705
6,300,000 NR/NR Charlotte Special Facilities Revenue,
5.6%, 7/1/27 5,763,555
--------------
$ 7,436,260
----------------------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT OBLIGATIONS
(Cost $12,914,357) $ 17,182,100
----------------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT OBLIGATION --
0.5% of Net Assets
3,300,000(b)(h) NR/NR Non-Profit Preferred Funding Trust I, 6.75%,
9/15/37 (144A) $ 2,084,115
----------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED
DEBT OBLIGATION
(Cost $3,293,476) $ 2,084,115
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 31
Schedule of Investments | 9/30/12 (Consolidated) (unaudited) (continued)
----------------------------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 2.4% of Net Assets
AUTOMOBILES & COMPONENTS -- 0.3%
Auto Parts & Equipment -- 0.3%
29,909 Lear Corp. $ 1,130,261
--------------
Total Automobiles & Components $ 1,130,261
----------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.1%
Building Products -- 0.1%
894(c)(h)(l) Panolam Holdings Co. $ 522,096
--------------
Total Capital Goods $ 522,096
----------------------------------------------------------------------------------------------------------------
ENERGY -- 0.4%
Oil & Gas Drilling -- 0.1%
13,045(l) Rowan Companies Plc $ 440,530
----------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.0%
45,178(f)(l) Sevan Marine ASA $ 120,706
----------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.3%
3,032,541(l) Norse Energy Corp., ASA $ 1,059,125
--------------
Total Energy $ 1,620,361
----------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.8%
Diversified Chemicals -- 0.6%
46,580 Lyondell Basell Industries NV $ 2,406,323
----------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.2%
1,391,615(c)(h)(l) Blaze Recycling and Metals LLC Class A Units $ 626,227
3,402 Freeport-McMoRan Copper & Gold, Inc., Class B 134,651
--------------
$ 760,878
--------------
Total Materials $ 3,167,201
----------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 0.2%
Pharmaceuticals -- 0.2%
17,818 Teva Pharmaceutical Industries, Ltd. (A.D.R.) $ 737,844
--------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 737,844
----------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.0%+
Systems Software -- 0.0%+
10,942(h)(l) Perseus Holding Corp. $ 27,355
--------------
Total Software & Services $ 27,355
----------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.6%
Airlines -- 0.3%
97,564(l) Delta Air Lines, Inc. $ 893,686
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer High Income Trust | Semiannual Report | 9/30/12
----------------------------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------------------------
Marine -- 0.3%
877,784(h)(l) Horizon Lines, Inc. $ 1,211,342
--------------
Total Transportation $ 2,105,028
----------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $10,036,205) $ 9,310,146
----------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK -- 0.5% of Net Assets
DIVERSIFIED FINANCIALS -- 0.5%
Other Diversified Financial Services -- 0.5%
1,880(e) Bank of America Corp., 7.25% $ 2,049,200
--------------
Total Diversified Financials $ 2,049,200
----------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $1,383,242) $ 2,049,200
----------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 1.0% of Net Assets
DIVERSIFIED FINANCIALS -- 0.9%
Other Diversified Financial Services -- (continued) -- 0.9%
132,750(b) GMAC Capital Trust I, 8.125% $ 3,333,352
--------------
Total Diversified Financials $ 3,333,352
----------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.1%
Data Processing & Outsourced Services -- 0.1%
5,745(h)(l) Perseus Holding Corp., 14.0% $ 310,230
--------------
Total Software & Services $ 310,230
----------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $3,322,424) $ 3,643,582
----------------------------------------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.0% of Net Assets
ENERGY -- 0.0%+
Oil & Gas Equipment & Services -- 0.0%+
650(h)(l) Green Field Energy Services, Inc., Expires
11/15/21 (144A) $ 20,150
----------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.0%+
131,055(l) Norse Energy Corp., ASA, Expires 6/16/15 $ 458
--------------
Total Energy $ 20,608
----------------------------------------------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $23,773) $ 20,608
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 33
Schedule of Investments | 9/30/12 (Consolidated) (unaudited) (continued)
----------------------------------------------------------------------------------------------------------------
Principal
Amount Value
----------------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 7.9% -- of Net Assets
TIME DEPOSITS: 7.9%
EUR 185,101 Citibank London, -0.014%, 10/1/12 $ 238,142
GBP 86,238 Citibank London, 0.054%, 10/1/12 139,265
NOK 7,848,079 JPMorgan Chase London, 0.03%, 10/1/12 1,370,771
28,658,000 Bank of New York Mellon Grand Cayman,
0.03%, 10/1/12 28,658,000
--------------
$ 30,406,178
----------------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $30,406,178) $ 30,406,178
----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 137.3%
(Cost $515,297,587) (m)(n) $ 530,116,342
----------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.8% $ 6,934,353
----------------------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (39.1)% $(151,002,854)
----------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS --100.0% $ 386,047,841
----------------------------------------------------------------------------------------------------------------
NR Security not rated by S&P or Moody's.
WR Rating Withdrawn.
(144A)Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
September 30, 2012, the value of these securities amounted to
$203,124,630, or 52.6% of total net assets applicable to common
shareowners.
* Senior secured floating rate loan interests in which the Trust invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending plus a premium. These base lending rates are
generally (i) the lending rate offered by one or more major European
banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime rate
offered by one or more major United States banks, (iii) the certificate of
deposit or (iv) other base lending rates used by commercial lenders. The
interest rate shown is the rate accruing at September 30, 2012.
+ Amount rounds to less than 0.1%.
(a) Floating rate note. The rate shown is the coupon rate at September 30,
2012.
(b) The interest rate is subject to change periodically. The interest is shown
is the rate at September 30, 2012.
(c) Security is valued using fair value methods.
(d) Debt obligation initially issued at one coupon which converts to a higher
coupon at a specific date. The rate shown is the rate at September 30,
2012.
(e) Security is perpetual in nature and has no stated maturity date.
(f) Security is in default and is non-income producing.
(g) Payment-in-kind (PIK) security which may pay interest in the form of
additional principal amount.
(h) Indicates a security that has been deemed as illiquid. The aggregate cost
of illiquid securities is $15,936,254. The aggregate fair value of
$10,907,902 represents 2.8% of total net assets applicable to common
shareowners.
The accompanying notes are an integral part of these financial statements.
34 Pioneer High Income Trust | Semiannual Report | 9/30/12
(i) The company is scheduled for approval of a reorganization plan.
(j) Security is priced as a unit.
(k) Security issued with a zero coupon. Income is recognized through accretion
of discount.
(l) Non-income producing.
(m) At September 30, 2012, the net unrealized gain on investments based on
cost for federal tax purposes of $517,814,033 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $45,923,322
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (33,621,013)
-----------
Net unrealized gain $12,302,309
===========
For financial reporting purposes net unrealized gain on investments was
$14,818,755 and cost of investments aggregated $515,297,587.
(n) Distributions of Investments by country of issue, as a percentage of total
investments in securities, is as follows:
United States 78.7%
Cayman Islands 4.3
Luxembourg 2.9
Canada 2.5
United Kingdom 2.2
Netherlands 2.0
Ireland 1.5
Other (individually less than 1%) 5.9
------
100.0%
======
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended September 30, 2012 aggregated $59,789,147 and $21,337,589,
respectively.
Glossary of Terms:
(A.D.R.) American Depositary Receipt
Principal amounts are denominated in U.S. dollars unless otherwise noted.
EUR -- Euro
CNY -- Chinese Yuan Renminbi
GBP -- Great British Pound
NOK -- Norwegian Krone
Various inputs are used in determining the value of the Trust's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speeds
credit risks, etc.)
Level 3 - significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments)
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans are categorized as Level 2, and securities valued using fair
value methods (other than prices supplied by independent pricing services) are
categorized as Level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 35
Schedule of Investments | 9/30/12 (Consolidated) (unaudited) (continued)
The following is a summary of the inputs used as of September 30, 2012, in
valuing the Trust's instruments:
----------------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------------------------
Asset Backed Securities $ -- $ 3,696,053 $ -- $ 3,696,053
Collateralized Mortgage
Obligations -- 1,936,137 -- 1,936,137
Senior Secured Floating Rate
Loan Interests -- 24,019,732 -- 24,019,732
Tax Exempt Obligations -- 17,182,100 -- 17,182,100
Corporate Bonds & Notes
Auto Parts & Equipment -- 10,725,883 -- 10,725,883
All Other -- 398,429,097 -- 398,429,097
Convertible Bonds & Notes -- 23,043,666 -- 23,043,666
Municipal Collateralized
Debt Obligation -- 2,084,115 -- 2,084,115
Sovereign Debt Obligations -- 3,569,845 -- 3,569,845
Common Stocks
Diversified Metals & Mining 134,651 -- 626,227 760,878
Building Products -- -- 522,096 522,096
Systems Software -- 27,355 -- 27,355
All Other 7,999,817 -- -- 8,134,468
Convertible Preferred Stock 2,049,200 -- -- 2,049,200
Preferred Stocks
Data Processing & Outsourced
Services -- 310,230 -- 310,230
All Other 3,333,352 -- -- 3,333,352
Rights/Warrants
Oil & Gas Exploration & Production -- 458 -- 458
All Other 20,150 -- -- 20,150
Temporary Cash Investments
Time Deposits -- 30,406,178 -- 30,406,178
----------------------------------------------------------------------------------------------------------------
Total $ 13,537,170 $ 515,430,849 $ 1,148,323 $ 530,116,342
----------------------------------------------------------------------------------------------------------------
Other Financial Instruments -- (198,441) -- (198,441)
================================================================================================================
* Other Financial Instruments include net unrealized appreciation on foreign
exchange contracts and unrealized depreciation on unfunded loan
commitments.
The accompanying notes are an integral part of these financial statements.
36 Pioneer High Income Trust | Semiannual Report | 9/30/12
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
------------------------------------------------------------------------------------------------------------------------------------
Change in
Balance Realized Unrealized Accrued Transfers Transfers Balance
as of gain appreciation discounts/ in to out of as of
3/31/12 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* Level 3* 9/30/12
------------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES
Environmental &
Facilities
Services $ 133,492 $(1,220,357) $ 1,141,508 $ -- $ (54,643) $ -- $ -- $ -- $ --
CONVERTIBLE BONDS &
NOTES
Marine 1,052,235 -- 1,496,604 -- (2,547,307) (1,532) -- -- --
COMMON STOCKS
Building Products 438,060 -- 84,036 -- -- -- -- -- 522,096
Diversified Metals
& Mining 918,466 -- (292,239) -- -- -- -- -- 626,227
------------------------------------------------------------------------------------------------------------------------------------
Total Investment
Ending balance $2,542,253 $(1,220,357) $ 2,429,909 $ -- $(2,601,950) $ (1,532) $ -- $ -- $1,148,323
====================================================================================================================================
* Transfers are calculated on the end of period value.
(1) Realized gain (loss) on these securities is included in the realized gain
(loss) from investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized gain (loss) from investments in the Statement of
Operations.
Net change in unrealized appreciation of Level 3 investments still held and
considered Level 3 at 9/30/12: $(208,203)
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 37
Statement of Assets and Liabilities | 9/30/12 (Consolidated) (unaudited)
ASSETS:
Investments in securities, at value (cost $515,297,587) $530,116,342
Cash 287
Receivables:
Interest and withholding tax reclaim receivable 12,645,716
Dividends receivable 34,075
Reinvestment of distributions 288,206
Appreciation on unfunded loan commitments - net 19,750
Prepaid expenses 34,863
Other assets 120,203
-------------------------------------------------------------------------------------------------------------
Total assets $543,259,442
-------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased $ 5,584,000
Administration fee 32,551
Forward foreign currency portfolio hedge contracts - net 218,191
Due to custodian(Cost $44,882) 334
Due to affiliates 237,580
Accrued expenses 133,609
Other liabilities 2,482
-------------------------------------------------------------------------------------------------------------
Total liabilities $ 6,208,747
-------------------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 6,040
shares, including dividends payable of $2,854 $151,002,854
-------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $403,266,571
Undistributed net investment income 14,158,753
Accumulated net realized loss on investments and foreign
currency transactions (46,041,508)
Net unrealized gain on investments 14,838,505
Net unrealized loss on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (174,480)
-------------------------------------------------------------------------------------------------------------
Net assets applicable to common shareowners $386,047,841
=============================================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $386,047,841/28,315,387 common shares $ 13.63
=============================================================================================================
The accompanying notes are an integral part of these financial statements.
38 Pioneer High Income Trust | Semiannual Report | 9/30/12
Statement of Operations (Consolidated) (unaudited)
INVESTMENT INCOME:
Interest $25,974,155
Dividends (net of foreign taxes withheld $11,700) 278,489
Facility and other fees 446,625
-------------------------------------------------------------------------------------------------------------
Total Investment income $ 26,699,269
-------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,583,988
Administration reimbursements 62,039
Transfer agent fees and expenses 22,502
Shareholder communications expenses 7,585
Auction agent fees 189,660
Custodian fees 12,197
Registration fees 12,903
Professional fees 61,838
Printing expenses 18,988
Trustees' fees 10,120
Pricing fees 12,378
Miscellaneous 48,751
-------------------------------------------------------------------------------------------------------------
Total expenses $ 2,042,949
-------------------------------------------------------------------------------------------------------------
Net investment income $ 24,656,320
-------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain from:
Investments $ 3,371,835
Forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies 397,253 $ 3,769,088
-------------------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) from:
Investments $ (407,891)
Forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (42,561) $ (450,452)
-------------------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $ 3,318,636
-------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM NET INVESTMENT INCOME: $ (120,571)
-------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners resulting from operations $ 27,854,385
=============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 39
Statement of Changes in Net Assets (Consolidated)
-------------------------------------------------------------------------------------------------------------
Six Months
Ended Year
9/30/12 Ended
(unaudited) 3/31/12
-------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 24,656,320 $ 47,727,570
Net realized gain on investments and foreign currency transactions 3,769,088 9,841,877
Change in net unrealized gain (loss) on investments and
foreign currency transactions (450,452) (36,254,125)
Distributions to preferred shareowners from net
investment income (120,571) (177,707)
-------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners resulting from operations $ 27,854,385 $ 21,137,615
-------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income ($0.83 and $1.65 per
share, respectively) $ (23,311,805) $ (46,381,043)
-------------------------------------------------------------------------------------------------------------
Total distributions to common shareowners $ (23,311,805) $ (46,381,043)
-------------------------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Conversion $ 267,751 $ --
-------------------------------------------------------------------------------------------------------------
Reinvestment of distributions $ 1,719,743 $ 3,412,875
-------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners from Trust share transactions $ 1,987,494 $ 3,412,875
-------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners $ 6,530,074 $ (21,830,553)
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period 379,517,767 401,348,320
-------------------------------------------------------------------------------------------------------------
End of period $ 386,047,841 $ 379,517,767
-------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 14,158,753 $ 12,934,809
=============================================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer High Income Trust | Semiannual Report | 9/30/12
Financial Highlights
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year
9/30/12 Ended Ended Year Year Year
(unaudited) 3/31/12 3/31/11 Ended Ended Ended
(Consolidated) (Consolidated)(Consolidated) 3/31/10 3/31/09 3/31/08
-----------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 13.45 $ 14.33 $ 13.23 $ 7.07 $ 13.41 $ 16.63
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 0.87 $ 1.70 $ 1.68 $ 1.65 $ 1.82 $ 1.90
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 0.14 (0.92) 1.09 6.17 (6.38) (2.73)
-----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to preferred
shareowners from:
Net investment income (0.00)(b) (0.01) (0.02) (0.01) (0.13) (0.22)
Net realized gains -- -- -- -- -- (0.07)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.01 $ 0.77 $ 2.75 $ 7.81 $ (4.69) $ (1.12)
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income (0.83) (1.65) (1.65) (1.65) (1.65) (1.65)
Net realized gains -- -- -- -- -- (0.45)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.18 $ (0.88) $ 1.10 $ 6.16 $ (6.34) $ (3.22)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period(c) $ 13.63 $ 13.45 $ 14.33 $ 13.23 $ 7.07 $ 13.41
===================================================================================================================================
Market value, end of period(c) $ 18.66 $ 16.66 $ 16.55 $ 15.38 $ 8.03 $ 13.15
===================================================================================================================================
Total return at market value(d) 17.61% 11.53% 20.12% 119.69% (27.74)% (15.37)%
Ratios to average net assets of common
shareowners:
Net expenses (e) 1.08%(f) 1.05% 1.11% 1.23% 1.25% 1.02%
Net investment income before preferred
share dividends 13.09%(f) 12.66% 12.43% 14.92% 17.03% 12.36%
Preferred share dividends 0.06%(f) 0.05% 0.12% 0.13% 1.22% 1.45%
Net investment income available
to common shareowners 13.03%(f) 12.61% 12.31% 14.79% 15.81% 10.91%
Portfolio turnover 4% 24% 10% 15% 19% 15%
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Trust | Semiannual Report | 9/30/12 41
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year
9/30/12 Ended Ended Year Year Year
(unaudited) 3/31/12 3/31/11 Ended Ended Ended
(Consolidated) (Consolidated)(Consolidated)3/31/10 3/31/09 3/31/08
-----------------------------------------------------------------------------------------------------------------------------------
Net assets of common shareowners, end of period (in $ 386,048 $ 379,518 $ 401,348 $ 367,087 $ 194,057 $365,199
thousands)
Preferred shares outstanding (in thousands) $ 151,003 $ 151,000 $ 151,000 $ 151,000 $ 151,000 $151,000
Asset coverage per preferred share, end of period $ 88,916 $ 87,835 $ 91,450 $ 85,777 $ 57,131 $ 85,481
Average market value per preferred share (g) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per $ 25,001 $ 25,001 $ 25,001 $ 25,001 $ 25,002 $ 25,018
preferred share
Ratios to average net assets of common shareowners
before waivers and reimbursement of expenses
Net expenses (e) 1.08%(f) 1.05% 1.11% 1.23% 1.25% 1.02%
Net investment income before preferred share
dividends 13.09%(f) 12.66% 12.43% 14.92% 17.03% 12.36%
Preferred share dividends 0.06%(f) 0.05% 0.12% 0.13% 1.22% 1.45%
Net investment income available to common
shareowners 13.03%(f) 12.61% 12.31% 14.79% 15.81% 10.91%
===================================================================================================================================
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Amount is less than $0.01 per common share.
(c) 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.
(d) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
market value on the last day of the periods reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment return does not reflect brokerage commissions. Past
performance is not a guarantee of future results.
(e) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(f) Annualized.
(g) Market value is redemption value without an active market.
The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for the Trust's common shares.
The accompanying notes are an integral part of these financial statements.
42 Pioneer High Income Trust | Semiannual Report | 9/30/12
Notes to Financial Statements | 9/30/12 (Consolidated) (unaudited)
1. Organization and Significant Accounting Policies
Pioneer High Income Trust (the Trust) was organized as a Delaware statutory
trust on January 30, 2002. Prior to commencing operations on April 26, 2002, the
Trust had no operations other than matters relating to its organization and
registration as a diversified, closed-end management investment company under
the Investment Company Act of 1940, as amended. The investment objective of the
Trust is to seek a high level of current income and the Trust may, as a
secondary objective, also seek capital appreciation to the extent that it is
consistent with its investment objective.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Investments in loan
interests are valued in accordance with guidelines established by the
Board of Trustees at the mean between the last available bid and asked
prices from one or more brokers or dealers as obtained from Loan Pricing
Corporation. Loan interests for which no reliable price quotes are
available will be valued by Loan Pricing Corporation through the use of
pricing matrices to determine valuations. Fixed-income securities with
remaining maturity of more than sixty days are valued at prices supplied
by independent pricing services, which consider such factors as market
prices, market events, quotations from one or more brokers, Treasury
spreads, yields, maturities and ratings. Valuations may be supplemented by
dealers and other sources, as required. Equity securities that have traded
on an exchange are valued at the last sale price on the principal exchange
where they are traded. Equity securities that have not traded on the date
of valuation or securities for which sale prices are not available,
generally are valued using the mean between the last bid and asked prices.
Short-term fixed income securities with remaining maturities of sixty days
or less generally are valued at amortized cost. Money market mutual funds
are valued at net asset value.
Pioneer High Income Trust | Semiannual Report | 9/30/12 43
Trading in foreign securities is substantially completed each day at
various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Trust's shares are
determined as of such times.
Securities or loan interests for which independent pricing services are
unable to supply prices or for which market prices and/or quotations are
not readily available or are considered to be unreliable are valued using
fair value methods pursuant to procedures adopted by the Board of
Trustees. The Trust may use fair value methods if it is determined that a
significant event has occurred after the close of the exchange or market
on which the security trades and prior to the determination of the Trust's
net asset value. Examples of a significant event might include political
or economic news, corporate restructurings, natural disasters, terrorist
activity or trading halts. Thus, the valuation of the Trust's securities
may differ from exchange prices.
At September 30, 2012, three securities were valued using fair value
methods (in addition to securities valued using prices supplied by
independent pricing services) representing 0.3% of net assets applicable
to common shareowners. Inputs used when applying fair value methods to
value a security may include credit ratings, the financial condition of
the company, current market conditions and comparable securities.
Discounts and premiums on debt securities are accreted or amortized,
respectively, daily, into interest income on an effective yield to
maturity basis with a corresponding increase or decrease in the cost basis
of the security. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly
paydowns. Interest income, including interest on income bearing cash
accounts, is recorded on an accrual basis, net of unrecoverable foreign
taxes withheld at the applicable country rates.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Trust becomes aware of the ex-dividend
data in the exercise of reasonable diligence.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
44 Pioneer High Income Trust | Semiannual Report | 9/30/12
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on
foreign currency contracts, disposition of foreign currencies and the
difference between the amount of income accrued and the U.S. dollars
actually received. Further, the effects of changes in foreign currency
exchange rates on investments are not segregated in the Statement of
Operations from the effects of changes in market prices of those
securities but are included with the net realized and unrealized gain or
loss on investments.
C. Forward Foreign Currency Contracts
The Trust may enter into forward foreign currency contracts (contracts)
for the purchase or sale of a specific foreign currency at a fixed price
on a future date. All contracts are marked to market daily at the
applicable exchange rates, and any resulting unrealized gains or losses
are recorded in the Trust's financial statements. The Trust records
realized gains and losses at the time a portfolio hedge is offset by entry
into a closing transaction or extinguished by delivery of the currency.
Risks may arise upon entering into these contracts from the potential
inability of counterparties to meet the terms of the contracts and from
unanticipated movements in the value of foreign currencies relative to the
U.S. dollar (see Note 6).
D. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareowners. Therefore, no federal income tax provision is
required. Tax years for the prior three fiscal years remain subject to
examination by federal and state tax authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Trust's distributions may
be shown in the accompanying financial statements as from or in excess of
net investment income or as from net realized gain (loss) on investment
and foreign currency transactions, or as from paid-in capital, depending
on the type of book/tax differences that may exist.
Pioneer High Income Trust | Semiannual Report | 9/30/12 45
The tax character of current year distributions payable to common and
preferred shareowners will be determined at the end of the current taxable
year. The tax character of distribution paid during the year ended March
31, 2012 was as follows:
---------------------------------------------------------------------------------
2012
---------------------------------------------------------------------------------
Distribution paid from:
Ordinary income $ 46,558,750
---------------------------------------------------------------------------------
Total $ 46,558,750
=================================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at March 31, 2012:
---------------------------------------------------------------------------------
2012
---------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 15,214,430
Capital loss carryforward (48,456,697)
Post-October loss deferred (1,362,566)
Dividends payable (3,035)
Unrealized appreciation 12,846,558
---------------------------------------------------------------------------------
Total $ (21,761,310)
=================================================================================
The difference between book-basis and tax-basis unrealized appreciation is
primarily attributable to the tax deferral of losses on wash sales, the
realization for tax purposes of unrealized gains on certain foreign
currency contracts, the difference between book and tax amortization
methods for premiums and discounts on fixed income securities, the accrual
of income on securities in default, and other book/tax temporary
differences.
E. Risks
Information regarding the Trust's principal risks is contained in the
Trust's original offering prospectus, with additional information included
in the Trust's shareowner reports issued from time to time. Please refer
to those documents when considering the Trust's principal risks. At times,
the Trust's investments may represent industries or industry sectors that
are interrelated or have common risks, making the Trust more susceptible
to any economic, political, or regulatory developments or other risks
affecting those industries and sectors.
46 Pioneer High Income Trust | Semiannual Report | 9/30/12
Under normal market conditions, the Trust invests at least 80% of its
assets in below investment grade (high-yield) debt securities, loans and
preferred stocks. Because the Trust's investments are concentrated in
high-yield securities, the Trust is subject to risks of such securities.
Below investment grade securities are commonly referred to as "junk bonds"
and are considered speculative with respect to the issuer's capacity to
pay interest and repay principal. The Trust's investments in certain
foreign markets or countries with limited developing markets may subject
the Trust to a greater degree of risk than in a developed market. These
risks include disruptive political or economic conditions and the possible
imposition of adverse governmental laws or currency exchange restrictions.
F. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value
of the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Trust's custodian or a subcustodian of the
Trust. The Trust's investment adviser, Pioneer Investment Management, Inc.
(PIM), is responsible for determining that the value of the collateral
remains at least equal to the repurchase price.
G. Automatic Dividend Reinvestment Plan
All common shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional common
shares of the Trust in lieu of cash. Shareowners may elect not to
participate in the Plan. Shareowners not participating in the Plan receive
all dividends and capital gain distributions in cash. Participation in the
Plan is completely voluntary and may be terminated or resumed at any time
without penalty by notifying American Stock Transfer & Trust Company, the
agent for shareowners in administering the Plan (the Plan Agent), in
writing prior to any dividend record date; otherwise such termination or
resumption will be effective with respect to any subsequently declared
dividend or other distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate
in the Plan on the shareowner's behalf. If the firm or nominee does not
offer the Plan, dividends will be paid in cash to the shareowner of
record. A firm or nominee may reinvest a shareowner's cash dividends in
common shares of the Trust on terms that differ from the terms of the
Plan.
Pioneer High Income Trust | Semiannual Report | 9/30/12 47
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional
unissued but authorized common shares from the Trust or (ii) by purchase
of outstanding common shares on the New York Stock Exchange or elsewhere.
If, on the payment date for any dividend, the net asset value per common
share is equal to or less than the market price per share plus estimated
brokerage trading fees (market premium), the Plan Agent will invest the
dividend amount in newly issued common shares. The number of newly issued
common shares to be credited to each account will be determined by
dividing the dollar amount of the dividend by the net asset value per
common share on the date the shares are issued, provided that the maximum
discount from the then current market price per share on the date of
issuance does not exceed 5%. If, on the payment date for any dividend, the
net asset value per common share is greater than the market value (market
discount), the Plan Agent will invest the dividend amount in common shares
acquired in open-market purchases. There are no brokerage charges with
respect to newly issued common shares. However, each participant will pay
a pro rata share of brokerage trading fees incurred with respect to the
Plan Agent's open-market purchases. Participating in the Plan does not
relieve shareowners from any federal, state or local taxes which may be
due on dividends paid in any taxable year. Shareowners holding Plan shares
in a brokerage account may not be able to transfer the shares to another
broker and continue to participate in the Plan.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit), manages
the Trust's portfolio. Management fees payable under the Trust's Advisory
Agreement with PIM are calculated daily at the annual rate of 0.60% of the
Trust's average daily managed assets. "Managed assets" means (a) the total
assets of the Trust, including any form of investment leverage, minus (b) all
accrued liabilities incurred in the normal course of operations, which shall not
include any liabilities or obligations attributable to investment leverage
obtained through (i) indebtedness of any type (including, without limitation,
borrowing through a credit facility of the issuance of debt securities), (ii)
the issuance of preferred stock or other similar preference securities, and/or
(iii) any other means. For the period ended September 30, 2012, the net
management fee was 0.60% of the Trust's average daily managed assets, which was
equivalent to 0.84% of the Trust's average daily net assets attributable to the
common shareowners.
48 Pioneer High Income Trust | Semiannual Report | 9/30/12
In addition, under PIM's management and administration agreements, certain other
services and costs are paid by PIM and reimbursed by the Trust. At September 30,
2012, $270,131 was payable to PIM related to management costs, administrative
costs and certain other reimbursements and is included in "Due to affiliates"
and "Administration fee" on the Statement of Assets and Liabilities.
Effective April 2, 2012, PIM has retained Brown Brothers Harriman & Co. (BBH) to
provide certain administrative and accounting services to the Trust on its
behalf. For such services, PIM pays BBH a monthly fee at an annual rate of
0.025% of the Trust's average daily managed assets subject to a minimum monthly
fee of $6,250. Previously, PIM had retained State Street Bank and Trust Company
(State Street) to provide such services. PIM paid State Street a monthly fee at
an annual rate of 0.07% of the Trust's average daily managed assets in excess up
to $500 million, subject to a minimum monthly fee of $10,000. Neither BBH nor
State Street received compensation directly from the Trust for providing such
services.
3. Transfer Agents
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly owned
indirect subsidiary of UniCredit, through a sub-transfer agency agreement with
American Stock Transfer & Trust Company, provides substantially all transfer
agent and shareowner services related to the Trust's common shares at negotiated
rates. Deutsche Bank Trust Company Americas (Deutsche Bank) is the transfer
agent, registrar, dividend paying agent and auction agent with respect to the
Trust's Auction Market Preferred Shares (AMPS). The Trust pays Deutsche Bank an
annual fee, as is agreed to from time to time by the Trust and Deutsche Bank,
for providing such services.
In addition, the Trust reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareowner communications activities such as proxy and
statement mailings and outgoing phone calls.
4. Basis for Consolidation for the Pioneer High Income Trust
The consolidated financial statements of the Trust include the accounts of Blaze
Holding HINCT, Inc. ("the Subsidiary"). All intercompany accounts and
transactions have been eliminated in consolidation. The Subsidiary, a Delaware
corporation, was incorporated on February 10, 2011 and is wholly-owned and
controlled by the Trust. It is intended that the Trust will remain the sole
shareholder of, and will continue to control, the Subsidiary. The Subsidiary
acts as an investment vehicle for the Trust's interest in Blaze Recycling and
Metals LLC, Class A Units. As of September 30, 2012, the Subsidiary represented
approximately $626,227 or approximately 0.2% of the net assets applicable to the
common shareholders of the Trust.
Pioneer High Income Trust | Semiannual Report | 9/30/12 49
5. Expense Offset Arrangement
The Trust has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Trust's custodian expenses. For the six months ended September 30, 2012, the
Trust expenses were not reduced under such arrangement.
6. Forward Foreign Currency Contracts
During the six months ended September 30, 2012, the Trust entered into various
forward foreign currency contracts that obligate the Trust to deliver or take
delivery of currencies at specified future maturity dates. Alternatively, prior
to the settlement date of a forward foreign currency contract, the Trust may
close out such contract by entering into an offsetting contract. The average
value of contracts open during the six months ended September 30, 2012 was
$8,667,932. At September 30, 2012, the Trust had no outstanding settlement
contracts.
Open portfolio hedges at September 30, 2012, were as follows:
--------------------------------------------------------------------------------------
Net
Contracts In Net
to Receive/ Exchange Settlement Unrealized
Currency (Deliver) for US$ Date US$ Value (Loss)
--------------------------------------------------------------------------------------
EURO (European Dollar) (3,932,000) $(4,903,755) 03/28/13 $(5,063,213) $ (159,458)
GBP (Pound Sterling) (1,057,000) (1,645,814) 03/28/13 (1,704,547) (58,733)
--------------------------------------------------------------------------------------
Total $ (218,191)
======================================================================================
7. Unfunded Loan Commitments
As of September 30, 2012, the Trust had unfunded loan commitments of $3,950,000
(excluding unrealized appreciation on this commitment of $19,750 as of September
30, 2012) which could be extended at the option of the borrower, pursuant to the
following loan agreements:
--------------------------------------------------------------------------------------------
Unrealized
Borrower Par Cost Value Gain
--------------------------------------------------------------------------------------------
Cequel Communications LLC $ 1,500,000 $ 1,500,000 $ 1,507,500 $ 7,500
Hamilton Sundstrand Corp., Term Loan $ 2,450,000 $ 2,450,000 $ 2,462,250 $ 12,250
--------------------------------------------------------------------------------------------
Total $ 19.750
============================================================================================
There were no bridge loan commitments outstanding at September 30, 2012.
8. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
50 Pioneer High Income Trust | Semiannual Report | 9/30/12
Transactions in common shares of beneficial interest for the periods ended
September 30, 2012 and March 31, 2012 were as follows:
--------------------------------------------------------------------------------
9/30/12 3/31/12
--------------------------------------------------------------------------------
Shares outstanding at beginning of period 28,213,163 27,999,225
Reinvestment of distributions 102,224 213,938
--------------------------------------------------------------------------------
Shares outstanding at end of period 28,315,387 28,213,163
================================================================================
The Trust may classify or reclassify any unissued shares of beneficial interest
into one or more series of preferred shares of beneficial interest. As of
September 30, 2012, there were 6,010 AMPS as follows: Series M7-2,020, Series
W28-2,020 and Series TH7-2,000.
Dividends on Series M7 and Series TH7 are cumulative at a rate which is to be
reset every seven days based on the results of an auction. Dividends on Series
W28 are also cumulative at a rate to be reset every 28 days based on the results
of an auction. An auction fails if there are more AMPS offered for sale than
there are buyers. When an auction fails, the dividend rate for the period will
be the maximum rate on the auction dates described in the prospectus for the
AMPS. Preferred shareowners are not able to sell their AMPS at an auction if the
auction fails. Since February 2008, the Trust's auctions related to the AMPS
have failed. The maximum rate for each 7-day series is 150% of the 7 day
commercial paper rate. The maximum rate for the 28-day series is 150% of the 30
day commercial paper rate. Dividend rates on AMPS ranged from 0.075% to 0.227%
during the six months ended September 30, 2012.
The Trust may not declare dividends or make other distributions on its common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, the Trust does not comply with the asset coverage
ratios described in the prospectus for the AMPS.
The AMPS are redeemable at the option of the Trust, in whole or in part, on any
dividend payment date at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared. The AMPS are also subject to mandatory
redemption at $25,000 per share plus any accumulated or unpaid dividends,
whether or not declared, if certain requirements relating to the composition of
the assets and liabilities of the Trust as set forth in the Statement of
Preferences are not satisfied.
The holders of AMPS have voting rights equal to the holders of the Trust's
common shares (one vote per share) and will vote together with holders of the
common shares as a single class. Holders of AMPS are also entitled to elect two
of the Trust's Trustees. In addition, the Investment Company Act of 1940, as
amended, requires that along with approval by shareowners that might otherwise
be required, the approval of the holders of a majority of any
Pioneer High Income Trust | Semiannual Report | 9/30/12 51
outstanding preferred shares, voting separately as a class, would be required to
(a) adopt any plan of reorganization that would adversely affect the preferred
shares and (b) take any action requiring a vote of security holders, including,
among other things, changes in the Trust's subclassification as a closed-end
management investment company or changes in its fundamental investment
restrictions.
9. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of September 30, 2012 were as follows:
Derivatives Not
Accounted for as
Hedging Instruments
Under Accounting Asset Derivatives 2012 Liabilities Derivatives 2012
---------------------------------------------------------------
Standards Codification Balance Sheet Balance Sheet
(ASC) 815 Location Value Location Value
Forward Foreign
Currency Contracts Receivables $-- Payables $ (218,191)
-----------------------------------------------------------------------------------------
Total $-- $ (218,191)
=========================================================================================
The effect of derivative instruments on the Statement of Operations for the six
months ended September 30, 2012 was as follows:
-------------------------------------------------------------------------------------
Derivatives Not Change in
Accounted for as Realized Unrealized
Hedging Instruments Gain on Gain or (Loss)
Under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
-------------------------------------------------------------------------------------
Forward Foreign Net realized gain or loss on $397,253
Currency Contracts forward foreign currency
contracts and other assets
and liabilities denominated
in foreign currencies
Forward Foreign Change in net unrealized $(42,561)
Currency Contracts gain or loss on forward
foreign currency contracts
and other assets and
liabilities denominated in
foreign currencies
11. Subsequent Events
The Board of Trustees of the Trust declared on October 4, 2013 a dividend from
undistributed net investment income of $0.095 per common share payable October
31, 2012, to common shareowners of record on October 16, 2012.
Subsequent to September 30, 2012, dividends declared and paid on preferred
shares totaled $25,018 in aggregate for the three outstanding preferred share
series through November 7, 2012.
52 Pioneer High Income Trust | Semiannual Report | 9/30/12
ADDITIONAL INFORMATION (unaudited)
During the period, there have been no material changes in the Trust's investment
objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust which has not been
approved by the shareowners. During the period, there have been no changes in
the principal risk factors associated with investment in the Trust. There were
no changes in the persons who are primarily responsible for the day-to-day
management of the Trust's portfolio.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its common
shares in the open market.
Results of Shareholder Meeting (unaudited)
At the annual meeting of shareowners held on September 18, 2012, shareowners of
Pioneer High Income Trust were asked to consider the proposals described below.
Mr. Perna was elected by the holders of common and preferred shares of the Trust
and Ms. Piret was elected by the holders of preferred shares of the Trust. The
September 18, 2012 meeting was adjourned until October 23, 2012 to provide the
fund's preferred shareholders additional time to cast their votes. A report of
the total votes cast by the Trust's shareholders follows:
Proposal 1 -- To elect Class I Trustee.
--------------------------------------------------------------------------------
Nominee For Withheld
--------------------------------------------------------------------------------
Thomas J. Perna 24,647,303.177 635,849.533
Marguerite A. Piret 3,439.000 118.000
Pioneer High Income Trust | Semiannual Report | 9/30/12 53
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman John F. Cogan, Jr., President*
David R. Bock Daniel K. Kingsbury, Executive
John F. Cogan, Jr. Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer**
Margaret B.W. Graham Christopher J. Kelley, Secretary
Daniel K. Kingsbury
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at http://www.sec.gov.
* Chief Executive Officer of the Trust
** Chief Financial and Accounting Officer of the Trust
54 Pioneer High Income Trust | Semiannual Report | 9/30/12
This page for your notes.
Pioneer High Income Trust | Semiannual Report | 9/30/12 55
This page for your notes.
56 Pioneer High Income Trust | Semiannual Report | 9/30/12
This page for your notes.
Pioneer High Income Trust | Semiannual Report | 9/30/12 57
This page for your notes.
58 Pioneer High Income Trust | Semiannual Report | 9/30/12
This page for your notes.
Pioneer High Income Trust | Semiannual Report | 9/30/12 59
This page for your notes.
60 Pioneer High Income Trust | Semiannual Report | 9/30/12
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
web site us.pioneerinvestments.com.
The Trust files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] Pioneer
Investment(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(c) 2012 Pioneer Investments 19432-06-1112
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
The registrant has a separately-designated standing audit
committe eestablished in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Information not required in semi annual reports on form NCSR.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Information not required in semi annual reports on form NCSR.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
During the period covered by this report, there were no purchases
made by or on behalf of the registrant or any affiliated purchaser
as defined in Rule 10b-18(a)(3) under the Securities Exchange Act
of 1934 (the Exchange Act), of shares of the registrants equity
securities that are registered by the registrant pursuant to
Section 12 of the Exchange Act.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer High Income Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date November 29, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date November 29, 2012
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date November 29, 2012
* Print the name and title of each signing officer under his or her signature.