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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22014
Pioneer Diversified High Income Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: April 30
Date of reporting period: May 1, 2012 through October 31, 2012
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer Diversified
High Income Trust
--------------------------------------------------------------------------------
Semiannual Report | October 31, 2012
--------------------------------------------------------------------------------
Ticker Symbol: HNW
[LOGO] PIONEER
Invesments(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 45
Financial Highlights 49
Notes to Financial Statements 51
Trustees, Officers and Service Providers 61
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 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 the end of the third quarter, 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 three quarters 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.
2 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
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 Diversified High Income Trust | Semiannual Report | 10/31/12 3
Portfolio Management Discussion | 10/31/12
Market demands for higher yields available in the credit-sensitive sectors
remained strong for most of the six months ended October 31, 2012, despite
periodic concerns about economic weakness in the U.S., slowing growth in China
and sovereign-debt problems in Europe. As a consequence, high-yield corporate
bonds and other credit-linked securities continued to generate healthy returns.
In the following interview, Andrew Feltus discusses the factors that affected
the Pioneer Diversified High Income Trust's performance during the six months
ended October 31, 2012. Mr. Feltus, senior vice president and portfolio manager
at Pioneer, and a member of Pioneer's fixed-income team, is responsible for the
day-to-day management of the Trust.
Q How did the Trust perform during the six months ended October 31, 2012?
A Pioneer Diversified High Income Trust produced a total return of 8.03% at
net asset value, and 6.84% at market price during the six months ended
October 31, 2012. During the same period, the Trust's custom benchmark
returned 5.84%. The custom benchmark is based on equal weightings of the
Bank of America Merrill Lynch Global High Yield and Emerging Markets Plus
Index, which returned 7.93%, and the Credit Suisse Leveraged Loan Index,
which returned 3.75%. 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 6.50%.
Unlike the Trust, the custom benchmark does not use leverage. While the use
of leverage can increase investment opportunity, it also can increase
investment risk.
The shares of the Trust were selling at a 2.0% premium to net asset value
on October 31, 2012.
On October 31, 2012, the standardized 30-day SEC yield on the Trust's
shares was 10.04%.
Q How would you describe the investment environment during the six months
ended October 31, 2012?
A Credit-sensitive, high-yielding bonds outperformed the higher-quality
sectors of the fixed-income market during the six months ended October 31,
2012. The period's only downturn in the credit sectors came in May 2012,
the first month of the period, when the sovereign-debt problems in Greece,
Spain, and several other European nations fed investors' fears about the
potential contagion effects that a recession in Europe could have
4 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
on the world economy. The concerns were compounded further when some
corporations in the United States began announcing disappointing profits.
Amid the worries about economic weakness, corporate bonds and other
credit-sensitive securities produced lackluster results through much of the
summer of 2012, until the announcements by major 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 long-term 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 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 (October 31, 2012), outperforming
higher-quality securities.
While economic benchmarks did not signal robust growth, evidence of
improving economic conditions and progress in new-job creation were
sufficient to dampen investors' fears that the world economy might fall
into a double-dip recession. U.S. high-yield bonds performed very well
during the market rally, but the strongest returns came from emerging
market debt, which rebounded sharply after producing lackluster returns
earlier in the period.
Q How did you manage the Trust in the prevailing market environment during
the six months ended October 31, 2012, and how did the Trust's positioning
influence its performance during the period?
A Domestic high-yield corporate bonds represented the largest component of
the Trust's total investment portfolio during the period, and those
investments helped to drive the Trust's outperformance of its customized
benchmark. The Trust also had exposure to emerging market debt, a
positioning which also aided relative performance during the period, as the
asset class performed very well (apart from Argentina). The Trust's
exposures to event-linked (so-called "catastrophe") bonds issued by
property-and-casualty companies, and to bank loans, also made positive
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 5
contributions to absolute returns during the period. The Trust's
catastrophe bonds tended to be a drag on benchmark-relative performance,
however, as their returns trailed those generated by domestic high-yield
bonds and emerging market investments. In what was a generally rising
market during the period, the Trust's use of leverage had a positive impact
on the Trust's total return as well as its dividend yield*.
At the end of the six-month period, on October 31, 2012, 32.5% of the
Trust's total investment portfolio was allocated to U.S. high-yield
corporate bonds, and another 1.8% was allocated to U.S. investment-grade
corporates. In addition, 19.8% of the Trust's total investment portfolio
was invested in floating-rate bank loans, 18.7% was invested in catastrophe
bonds, 12.6% was held in emerging market debt, and 9.6% of the Trust's
total investment portfolio was allocated to international high-yield
investments.
Regarding the Trust's currency positioning, 96.4% of the Trust's currency-
related holdings were in U.S. dollar-denominated investments.
Q What were some of the individual investments that affected the Trust's
performance during the six months ended October 31, 2012?
A The Trust's investments in the emerging markets generally were very
successful during the period. Among individual holdings in the emerging
markets, the Trust's top performers were the debt of MIE Holdings, a
Chinese energy company; Bio Pappel, a Mexican packaging company; and
Vedanta Resources, an Indian metals and mining corporation. In addition,
the Trust holdings in securities issued by Cemex, the Mexico-based global
building materials corporation, appreciated during the period after the
company strengthened its balance sheet by spinning off part of its U.S.
operations. Among the Trust's U.S. holdings, the debt of packaging company
BWAY gained in value when the company received a buyout proposal from
private-equity investors. In Europe, the Trust's investment in the bonds of
Basell Finance, a subsidiary of the Dutch chemical company LyondellBasell,
fared well as the company improved its finances and appeared to be moving
toward a potential investment-grade rating.
Among the Trust's disappointing investments during the six-month period
were holdings of the securities of KV Pharmaceutical, a U.S. company that
encountered unexpected competition when other drug companies started
producing a combination drug product for which KV believed it had exclusive
production rights. The FDA had granted KV market exclusivity for one of its
drugs in 2011, but the company's pricing strategy led to a backlash from
the OB/GYN community, and the FDA stated that it would not prevent
compounding pharmacies from selling a much cheaper version of the drug.
* Dividends are not guaranteed.
6 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
The Trust's exposure to Argentina also detracted from results during the
period. The Trust's holdings of the debt of two Argentinian companies,
Banco Macro and Edenor, declined in value when the market reacted
negatively to some of the Argentinian national government's policies,
particularly the nationalization of energy firm YPF, a subsidiary of
Spanish firm Repsol.
Q Did the use of derivatives affect the Trust performance during the six
months ended October 31, 2012?
A During the period, the Trust invested in some currency forward contracts,
which were used to reduce the risks of changes in the relative values of
currencies. The contracts had a slightly positive effect on the Trust's
performance.
Q Did the level of leverage employed by the Trust change over the six months
ended October 31, 2012?
A At the end of the six months, 29.3% of the Trust's total managed assets
were financed by leverage, compared with 30.0% of the Trust's total managed
assets leveraged at the start of the period on May 1, 2012. The decrease
was due to fluctuations in the value of securities in which the Trust had
invested.
Q What is your investment outlook?
A The short-term outlook is clouded by uncertainties about whether the United
States' elected leaders in Washington can reach an agreement on solving the
approaching "fiscal cliff" scenario. At the conclusion of the national
elections, the President and the Congress faced three significant financial
challenges: potentially increasing the nation's debt ceiling;
sequestration, which calls for unspecified, but deep and automatic across-
the-board spending cuts in the absence of some budget agreement; and the
expiration of the Bush-era tax cuts. The automatic spending cuts and the
expiration of the Bush-era tax cuts both were scheduled to occur at the end
of 2012.
If there is a successful resolution to the debate over the looming policy
issues, we believe we should see less volatility in the markets and a
return to a focus on fundamental investment principles. While the U.S.
economy's growth, as measured by gross domestic product (GDP), clearly
slowed in the first and second quarters of 2012, we believe the prospects
for improving conditions are good. In fact, estimated GDP growth for the
third quarter recently was revised upward to roughly 2.7%. The more
accommodative policy stances taken by the major central banks in the U.S.,
Europe, China and Japan also should help to encourage economic expansion
and an improvement in corporate profits.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 7
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.
In addition to our emphasis on corporate bonds in the Trust's portfolio, we
continue to favor having some Trust exposures to bank loans and catastrophe
bonds, both of which feature floating interest rates. Although the two
groups did not perform as well as high-yield bonds during the past six
months ended October 31, 2012, we believe their prospects should improve
over the next two-to-three years, especially if interest rates start to
rise and floating-rate securities start paying out higher yields.
Catastrophe bonds also may fare well in the shorter term, as they were not
seriously affected by the recent hurricane season. Even October's
devastating Hurricane Sandy did not have a major impact on catastrophe
bonds, as private insurers did not bear most of the effects of the damage
inflicted on the U.S. East Coast.
Please refer to the Schedule of Investments on pages 13-44 for a full listing of
Trust securities.
8 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
Investments in high-yield or lower-rated securities are subject to greater-than-
average risk. The Trust may invest in securities of issuers that are in default
or that are in bankruptcy.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
When interest rates rise, the prices of debt securities in the Trust will
generally fall. Conversely, when interest rates fall the prices of debt
securities in the Trust generally will rise. Investments in the Trust are
subject to possible loss due to the financial failure of the issuers of the
underlying securities and the issuers' inability to meet their debt obligations.
The Trust may invest up to 50% of its total assets in illiquid securities.
Illiquid securities may be difficult to dispose of at a fair price at the times
when the Trust believes it is desirable to do so and their market price is
generally more volatile than that of more liquid securities. Illiquid securities
also are more difficult to value, and investment of the Trust's assets in
illiquid securities may restrict the Trust's ability to take advantage of market
opportunities.
The Trust is authorized to borrow from banks and issue debt securities, which
are forms of leverage. Leverage creates significant risks, including the risk
that the Trust's incremental income or capital appreciation will not be
sufficient to cover the cost of leverage, which may adversely affect the return
for shareholders.
Risks of investing in the Trust are discussed in greater detail in the Trust's
original offering prospectus and in shareowner reports issued from time to time.
These risks may increase share price volatility.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 9
Portfolio Summary | 10/31/12
Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Corporate Bonds & Notes 73.3%
Senior Secured Floating Rate Loan Interests 19.8%
Convertible Bonds & Notes 1.9%
Sovereign Debt Obligations 1.2%
Asset Backed Securities 0.9%
Temporary Cash Investments 0.5%
Preferred Stocks 0.5%
Collateralized Mortgage Obligations 0.5%
Temporary Cash Investments 0.5%
Common Stocks 0.4%
Commercial Mortgage-Backed Securities 0.3%
Convertible Preferred Stock 0.2%
Portfolio Quality
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on Standard & Poor's
ratings (S&P))
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
B 44.7%
BB 18.5%
CCC 16.8%
NR 15.8%
BBB 2.3%
CC 0.5%
C 0.5%
AAA 0.4%
A 0.3%
AA 0.2%
D 0.0%*
*Amount less than 0.1%
Bond ratings are ordered highest to lowest in portfolio. Based on S&P's
measures, AAA (highest possible rating) through BBB are considered investment
grade; BB or lower ratings are considered non- investment grade. Cash
equivalents and some bonds may not be rated.
The portfolio is actively managed, and current holdings may be different.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. Alliance One International, Inc., 10.0%, 7/15/16 0.90%
--------------------------------------------------------------------------------
2. Successor X, Ltd., 14.916%, 1/7/14 (144A) 0.89
--------------------------------------------------------------------------------
3. Successor X, Ltd., 16.416%, 1/7/14 (144A) 0.89
--------------------------------------------------------------------------------
4. Montana Re, Ltd., 16.81%, 1/8/14 (144A) 0.89
--------------------------------------------------------------------------------
5. Queen Street IV Capital, Ltd., 7.606%, 4/9/15 (144A) 0.85
--------------------------------------------------------------------------------
6. AMC Entertainment, Inc., 9.75%, 12/1/20 0.83
--------------------------------------------------------------------------------
7. Lodestone Re Ltd., 7.356%, 1/8/14 (144A) 0.79
--------------------------------------------------------------------------------
8. Lodestone Re, Ltd., 8.356%, 5/17/13 (144A) 0.77
--------------------------------------------------------------------------------
9. Townsquare Radio LLC / Townsquare Radio, Inc., 9.0%, 4/1/19 (144A) 0.77
--------------------------------------------------------------------------------
10. INEOS Group Holdings SA, 7.875%, 2/15/16 (144A) 0.74
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
10 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
Prices and Distributions | 10/31/12
Market Value per Common Share
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--------------------------------------------------------------------------------
10/31/12 4/30/12
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$20.49 $20.13
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Premium 2.0% 3.2%
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Net Asset Value per Common Share
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--------------------------------------------------------------------------------
10/31/12 4/30/12
--------------------------------------------------------------------------------
$20.09 $19.51
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Distributions per Common Share
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Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
5/1/12 - 10/31/12 $0.96 $ -- $ --
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Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 11
Performance Update | 10/31/12
Investment Returns
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The mountain chart on the right shows the change in market value, plus
reinvested dividends and distributions, of a $10,000 investment made in common
shares of Pioneer Diversified High Income Trust, compared to that of the
combined (50%/50%) Bank of America Merrill Lynch Global High Yield and Emerging
Markets Plus Index (BofA ML Global HY and EMP Index) and the Credit Suisse (CS)
Leveraged Loan Index.
Average Annual Total Returns
(As of October 31, 2012)
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Net Asset Market
Period Value (NAV) Price
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Life-of-Trust
(5/30/07) 8.54% 8.02%
5 Years 9.06 11.89
1 Year 15.06 14.62
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
50% BofA ML Global
Pioneer Diversified HY and EMP Index
High Income Trust 50% CS Leveraged Loan Index
5/31/2007 $ 10,000 $ 10,000
10/31/2007 $ 8,661 $ 10,034
10/31/2008 $ 6,149 $ 7,683
10/31/2009 $ 9,362 $ 10,570
10/31/2010 $ 12,687 $ 12,116
10/31/2011 $ 13,259 $ 12,532
10/31/2012 $ 15,197 $ 14,010
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV due to such factors as interest rate changes
and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Closed-end funds, unlike open-end funds, are not continuously offered. There is
a one-time public offering and, once issued, shares of closed-end funds are sold
in the open market through a stock exchange and frequently trade at prices lower
than their NAV. NAV per common share is total assets less total liabilities,
which includes bank borrowing, divided by the number of common shares
outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends are
assumed to be reinvested at prices obtained under the Trust's dividend
reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions.
The BofA ML Global High Yield and Emerging Markets Plus Index tracks the
performance of the below- and border-line investment-grade global debt markets
denominated in the major developed market currencies. The Index includes
sovereign issuers rated BBB1 and lower along with corporate issues rated BB1 and
lower. There are no restrictions on issuer country of domicile. The CS Leveraged
Loan Index is designed to mirror the investible universe of the U.S.
dollar-denominated leveraged loan market. The CS Leveraged Loan Index consists
of tradable term loans with at least one year to maturity and rated BBB or
lower.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Trust returns, do not reflect any fees, expenses or sales charges. The
indices do not employ leverage. It is not possible to invest directly in an
index.
12 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
Schedule of Investments | 10/31/12 (Consolidated) (unaudited)
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES --
1.2% of Net Assets
938,861(a) CCC/Caa1 Aircraft Finance Trust, Series 1999-1A,
Class A1, 0.694%, 5/15/24 (144A) $ 431,876
2,581(a) B-/Ba3 Aircraft Finance Trust, Series 1999-1A,
Class A2, 0.714%, 5/15/24 (144A) 2,323
450,000(a) AA+/A2 Bear Stearns Asset Backed Securities Trust,
Series 2004-BO1, Class M3, 1.261%,
10/25/34 376,602
100,000 BB/NR CarNow Auto Receivables Trust, Series
2012-1A, Class D, 6.9%, 11/15/16 (144A) 100,281
699,000(a) CCC/Caa2 Carrington Mortgage Loan Trust, Series
2007-FRE1, Class A2, 0.411%, 2/25/37 536,986
434,612(a) CC/NR Countrywide Asset-Backed Certificates,
Series 2007-SD1, Class A1, 0.661%,
3/25/47 (144A) 208,314
122,846(a) B-/B3 GSAMP Trust, Series 2006-HE8, Class A2B,
0.341%, 1/25/37 114,188
234,373 NR/NR Westgate Resort LLC, Series 2012 -- 2A
Class C, 9.0%, 1/20/25 $ 236,717
--------------------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $1,955,562) $ 2,007,287
--------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 0.7% of Net Assets
176,664(b) BB-/NR GSR Mortgage Loan Trust, Series 2004-3F,
Class B1, 5.743%, 2/25/34 $ 151,166
882,946(a) AAA/Ba2 Impac CMB Trust, Series 2004-9, Class 1A1,
0.971%, 1/25/35 777,275
100,575(a) D/NR WaMu Mortgage Pass Through Certificates,
Series 2006-AR16, Class 3A1, 4.889%,
12/25/36 89,537
100,000(b) NR/NR Vericrest Opportunity Loan Transferee, Series
2012-NL1A, Class A2, 8.112%, 3/25/49
(144A) $ 101,583
--------------------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $1,100,678) $ 1,119,561
--------------------------------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED
SECURITIES -- 0.5% of Net Assets
250,000(b) BB+/Baa3 Bear Stearns Commercial Mortgage Securities,
Series 2006-PW12, Class AJ, 5.751%,
9/11/38 $ 228,830
250,000(b) NR/Baa3 COMM 2012-CCRE2 Mortgage Trust, Series
2012-CR2, Class E, 4.858%, 8/15/45
(144A) 227,230
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 13
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED
SECURITIES -- (continued)
175,033(a) NR/Ba1 JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2006-FL2A, Class G,
0.574%, 11/15/18 (144A) $ 147,337
200,000(a) BBB+/A3 Morgan Stanley Capital I, Inc., Series
2007-XLF9, Class C, 0.914%, 12/15/20
(144A) $ 185,778
--------------------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL MORTGAGE-BACKED
SECURITIES
(Cost $741,045) $ 789,175
--------------------------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE
LOAN INTERESTS -- 27.8% of
Net Assets*
AUTOMOBILES & COMPONENTS -- 1.9%
Auto Parts & Equipment -- 0.6%
138,370 B+/Ba3 Federal-Mogul Corp., Tranche B Term Loan,
2.148%, 12/29/14 $ 130,457
70,597 B+/Ba3 Federal-Mogul Corp., Tranche C Term Loan,
2.148%, 12/28/15 66,559
157,600 B+/B1 Metaldyne LLC, Term Loan, 5.25%,
5/18/17 158,388
283,575 B+/Ba3 TI Group Automotive Systems LLC, Term Loan,
6.75%, 3/14/18 288,183
222,079 BB/Ba2 Tomkins LLC, Term Loan B-1, 4.25%,
9/29/16 223,578
142,463 B+/Ba2 UCI International, Inc., (United Components)
Term Loan, 5.5%, 7/26/17 143,887
-----------------
$ 1,011,052
--------------------------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.9%
1,481,250 BB/Ba2 Chrysler Group LLC, Tranche B Term Loan,
6.0%, 5/24/17 $ 1,517,455
--------------------------------------------------------------------------------------------------------------------------
Tires & Rubber -- 0.4%
575,000 BB/Ba1 Goodyear Tire & Rubber Co., Extended
Second Lien Term Loan, 4.75%, 4/30/19 $ 581,469
-----------------
Total Automobiles & Components $ 3,109,976
--------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 3.6%
Aerospace & Defense -- 1.6%
893,680 B/B3 API Technologies Corp., Term Loan, 8.75%,
6/27/16 $ 889,212
605,843 B/B2 DAE Aviation Holdings, Inc., Tranche B-1
Term Loan, 7.25%, 7/31/14 605,843
197,831 BB-/B1 Hunter Defense Technologies, Inc., Term
Loan, 5.5%, 8/22/14 175,739
The accompanying notes are an integral part of these financial statements.
14 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Aerospace & Defense -- (continued)
574,557 B/B2 Standard Aero, Ltd., Tranche B-2 Term Loan,
7.25%, 7/31/14 $ 574,557
325,298 BB-/B1 TASC, Inc., New Tranche B Term Loan,
4.5%, 12/18/15 325,908
-----------------
$ 2,571,259
--------------------------------------------------------------------------------------------------------------------------
Building Products -- 0.6%
1,047,188 B+/B1 Goodman Global, Inc., First Lien Initial
Term Loan, 5.75%, 10/28/16 $ 1,051,697
--------------------------------------------------------------------------------------------------------------------------
Construction & Farm Machinery &
Heavy Trucks -- 1.0%
370,000 BB/Ba2 Manitowoc Co., Inc., Term Loan B, 5.25%,
11/13/17 $ 372,775
650,000 B+/Ba2 Navistar International Corp., Tranche B,
Term Loan, 7.0%, 8/17/17 655,281
553,000 BB-/B2 Waupaca Foundry, Inc. Term Loan, 8.5%,
6/29/17 559,913
-----------------
$ 1,587,969
--------------------------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.3%
565,000 BB-/Ba2 WireCo WorldGroup, Inc., Term Loan,
6.0%, 2/15/17 $ 572,062
--------------------------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.1%
198,110 BBB-/Ba2 AWAS Finance Luxembourg 2012 SA, Term
Loan, 4.75%, 7/16/18 $ 200,339
-----------------
Total Capital Goods $ 5,983,326
--------------------------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL
SERVICES -- 1.0%
Commercial Printing -- 0.1%
203,635 BB-/Ba3 Cenveo Corp., Facility Term Loan B,
6.625%, 12/21/16 $ 204,653
--------------------------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 0.8%
1,065,566 CCC/Caa2 Synagro Technologies, Inc., First Lien Term
Loan, 2.4%, 4/2/14 $ 927,709
293,650 B+/B1 Waste Industries USA, Inc., Term Loan B,
4.75%, 3/17/17 294,751
-----------------
$ 1,222,460
--------------------------------------------------------------------------------------------------------------------------
Security & Alarm Services -- 0.1%
207,389 B+/B1 Protection One, Inc., Term Loan, 5.75%,
3/21/19 $ 208,512
-----------------
Total Commercial & Professional Services $ 1,635,625
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 15
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.1%
Textiles -- 0.1%
149,625 B/Ba3 Klockner Pentaplast of America, Inc.,
(Kleopatra Aquisition Corp), Term Loan B-1,
6.75%, 12/21/16 $ 151,308
-----------------
Total Consumer Durables & Apparel $ 151,308
--------------------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.6%
Hotels, Resorts & Cruise Lines -- 0.5%
875,000 NR/Ba2 Seven Sea Cruises, Inc., Term Loan B,
6.25%, 12/21/18 $ 891,406
--------------------------------------------------------------------------------------------------------------------------
Restaurants -- 0.7%
548,622 B+/B1 Landry's, Inc., Term Loan B, 6.5%, 4/24/18 $ 555,365
552,225 B/Ba3 NPC International, Inc., 2012 Term Loan,
5.25%, 12/28/18 561,889
-----------------
$ 1,117,254
--------------------------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.4%
273,625 B/Ba3 Monitronics International, Inc., Term Loan,
5.5%, 3/23/18 $ 276,248
435,273 B+/B1 Wash MultiFamily Laundry Systems LLC,
Term Loan, 7.0%, 8/28/14 435,273
-----------------
$ 711,521
-----------------
Total Consumer Services $ 2,720,181
--------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.6%
Other Diversified Financial Services -- 0.6%
147,789 B-/B3 BNY ConvergEX Group LLC, Second Lien (EZE)
Term Loan, 8.75%, 12/18/17 $ 138,737
352,211 B-/B3 BNY ConvergEX Group LLC, Second Lien (TOP)
Term Loan, 8.75%, 12/18/17 330,638
432,825 NR/B2 Houghton Mifflin Co., Term Loan,
7.25%, 11/22/13 440,400
72,253 NR/NR Long Haul Holdings, Ltd., Facility Term
Loan A, 0.0%, 1/12/13 32,514
57,668 NR/NR PT Bakrie & Brothers Tbk, Facility Term
Loan B, 0.0%, 1/12/13 25,950
-----------------
Total Diversified Financials $ 968,239
--------------------------------------------------------------------------------------------------------------------------
ENERGY -- 1.4%
Coal & Consumable Fuels -- 0.5%
570,688 B+/B2 Preferred Proppants LLC, Initial Term
Loan B, 7.5%, 12/15/16 $ 541,440
450,000 NR/NR PT Bumi Resources Tbk, Term Loan,
11.219%, 8/7/13 393,750
-----------------
$ 935,190
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.3%
281,192 NR/B3 Aquilex Holdings LLC, Term Loan, 8.75%,
4/1/16 $ 282,246
117,648 B-/B2 Hudson Products Holdings, Inc., Term Loan,
9.0%, 8/24/15 $ 117,354
-----------------
$ 399,600
--------------------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.6%
304,833 BB-/NR Chesapeake Energy Corp., Term Loan,
8.5%, 12/2/17 $ 305,933
650,000 B+/B1 Samson Investment Co., Initial Term
Loan, 6.0%, 9/25/18 656,805
-----------------
$ 962,738
-----------------
Total Energy $ 2,297,528
--------------------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.1%
Packaged Foods & Meats -- 0.1%
239,690 B/Ba3 Del Monte Foods Co., Initial Term Loan,
4.5%, 3/8/18 $ 239,690
-----------------
Total Food, Beverage & Tobacco $ 239,690
--------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.9%
Health Care Equipment & Services -- 0.1%
243,163 BB-/Ba2 Kinetic Concepts, Inc., Dollar Term Loan B-1,
7.0%, 5/4/18 $ 246,810
--------------------------------------------------------------------------------------------------------------------------
Health Care Facilities -- 1.2%
353,646 B/B1 Ardent Medical Services, Inc., Term Loan,
6.5%, 9/15/15 $ 354,530
983,916 BB/Ba3 CHS/Community Health Systems, Inc.,
Extended Term Loan, 3.862%, 1/25/17 989,447
198,040 BB/Ba3 HCA, Inc., Tranche B-2 Term Loan, 3.612%,
3/31/17 198,623
82,579 BB/Ba3 HCA, Inc., Tranche B-3 Term Loan, 3.462%,
5/1/18 82,779
325,000 NR/B3 KIndred Healthcare, Inc., Incremental Term
Loan, 5.25%, 6/1/18 321,138
-----------------
$ 1,946,517
--------------------------------------------------------------------------------------------------------------------------
Health Care Services -- 1.7%
384,375 B+/B2 AccentCare, Inc., Term Loan, 6.5%,
12/22/16 $ 318,070
345,706 B/B1 Gentiva Health Services, Inc., Term Loan
B-1, 6.5%, 8/17/16 341,528
631,715 B+/Ba3 Inventiv Health, Inc., Consolidated Term
Loan, 6.5%, 8/4/16 617,765
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 17
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Health Care Services (continued)
403,850 NR/NR National Mentor Holdings, Inc., Tranche
B-1 Term Loan, 6.5%, 2/9/17 $ 405,028
243,289 B/B2 National Specialty Hospitals, Inc., Initial
Term Loan, 8.25%, 2/3/17 239,640
180,556 BB-/Ba1 Sun Healthcare Group, Inc., Term Loan,
8.75%, 10/18/16 180,330
345,625 B/Ba3 Valitas Health Services, Inc., Term Loan B,
5.75%, 6/2/17 345,625
493,750 NR/B3 Virtual Radiologic Corp., Term Loan B,
7.75%, 12/22/16 440,980
-----------------
$ 2,888,966
--------------------------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.4%
241,331 BB-/Ba3 Alere, Inc., Term Loan B, 4.75%, 6/30/17 $ 243,254
369,075 B+/B1 Bausch & Lomb, Inc., Parent Term Loan,
5.25%, 5/17/19 373,689
-----------------
$ 616,943
--------------------------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.5%
243,754 BB-/Ba3 IMS Health, Inc., Tranche B Dollar Term Loan,
4.5%, 8/26/17 $ 245,539
365,000 CCC/Caa3 Medical Card System, Inc., Term Loan,
12.25%, 9/17/15 297,475
25,510 B/NR Physician Oncology Services LP, Delayed
Draw Term Loan, 7.75%, 1/31/17 24,745
209,980 B/B2 Physician Oncology Services LP, Effective
Date Term Loan, 7.75%, 1/31/17 203,681
-----------------
$ 771,440
-----------------
Total Health Care Equipment & Services $ 6,470,676
--------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.5%
Household Products -- 0.2%
393,990 B+/Ba3 SRAM LLC, First Lien Term Loan, 5.75%,
6/7/18 $ 397,930
--------------------------------------------------------------------------------------------------------------------------
Personal Products -- 0.3%
215,357 BB-/Ba3 NBTY, Inc., Term Loan B-1, 4.25%, 10/2/17 $ 216,743
244,406 BB-/Ba3 Revlon Consumer Products Corp., Term
Loan B, 4.75%, 11/19/17 245,285
-----------------
$ 462,028
-----------------
Total Household & Personal Products $ 859,958
--------------------------------------------------------------------------------------------------------------------------
INSURANCE -- 1.8%
Insurance Brokers -- 1.3%
1,368,444 B/B2 Alliant Holdings I, Inc., Term Loan,
3.362%, 8/21/14 $ 1,366,733
The accompanying notes are an integral part of these financial statements.
18 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Insurance Brokers -- (continued)
682,536 B+/B1 HUB International, Ltd., 2017 Initial Term
Loan, 4.712%, 6/13/17 $ 687,229
97,000 B/B1 U.S.I. Holdings Corp., New Term Loan
Series C, 7.0%, 5/5/14 97,485
-----------------
$ 2,151,447
--------------------------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.5%
750,000 CCC+/B3 AmWINS Group, Inc., Second Lien, Term
Loan, 9.25%, 12/6/19 $ 753,281
-----------------
Total Insurance $ 2,904,728
--------------------------------------------------------------------------------------------------------------------------
MATERIALS -- 2.3%
Commodity Chemicals -- 0.1%
199,000 BB-/B1 Taminco Global Chemical Corp., Tranche B-1
Dollar Term Loan, 5.25%, 2/15/19 $ 201,322
--------------------------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.2%
343,875 B+/B2 Univar, Inc., Term Loan B, 5.0%, 6/30/17 $ 341,105
--------------------------------------------------------------------------------------------------------------------------
Forest Products -- 0.9%
1,500,000 B+/Ba3 Ainsworth Lumber Co., Ltd., Term Loan,
5.25%, 6/26/14 $ 1,492,500
--------------------------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 0.3%
517,014 B/B1 Tank Holding Corp., Initial Term Loan,
5.5%, 7/9/19 $ 519,493
--------------------------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.3%
459,188 B/B2 Exopack LLC/Cello-Foil Products, Inc.,
Term Loan B, 6.5%, 5/31/17 $ 457,848
--------------------------------------------------------------------------------------------------------------------------
Precious Metals & Minerals -- 0.1%
192,375 BB-/B1 Fairmount Minerals, Ltd., Tranche B Term
Loan, 5.25%, 3/15/17 $ 192,667
--------------------------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.4%
250,000 BB+/Ba1 Chemtura Corp., Facility Term Loan, 5.5%,
8/29/16 $ 253,437
344,239 BB+/Ba1 Huntsman International LLC, Extended
Term B Loan, 2.795%, 4/19/17 343,808
-----------------
$ 597,245
-----------------
Total Materials $ 3,802,180
--------------------------------------------------------------------------------------------------------------------------
MEDIA -- 1.9%
Advertising -- 0.6%
975,029 B+/Ba3 Affinion Group, Inc., Tranche B Term
Loan, 5.0%, 7/16/15 $ 920,793
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 19
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Broadcasting -- 0.9%
534,881 NR/NR FoxCo Aquisition Stb, LLC, Initial Term Loan,
5.5%, 7/14/17 $ 542,904
404,958 BB-/Ba3 TWCC Holding Corp., 2011 Term Loan,
4.25%, 2/13/17 408,332
471,717 B+/B2 Univision Communications, Inc., Extended
First Lien Term Loan, 4.462%, 3/31/17 462,871
-----------------
$ 1,414,107
--------------------------------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.1%
177,555 B/B1 WideOpenWest Finance LLC, Term Loan,
6.25%, 7/17/18 $ 179,472
--------------------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.3%
141,501 NR/Ba1 Cinedigm Digital Funding I LLC, Term Loan,
5.25%, 4/29/16 $ 142,386
552,933 CCC/Caa1 Lodgenet Interactive Corp., Closing Date
Term Loan, 8.5%, 4/4/14 430,827
-----------------
$ 573,213
-----------------
Total Media $ 3,087,585
--------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY
& LIFE SCIENCES -- 1.7%
Biotechnology -- 0.9%
491,250 BB/B2 Aptalis Pharma, Inc., Term Loan B-1,
5.5%, 2/10/17 $ 493,706
183,207 BBB-/Ba3 Warner Chilcott Co., LLC, Term Loan B-2,
4.25%, 3/15/18 184,123
139,149 BBB-/Ba3 Warner Chilcott Corp., Term Loan B-1,
4.25%, 3/15/18 139,845
366,414 BBB-/Ba3 Warner Chilcott Corp., Term Loan B-1,
4.25%, 3/15/18 368,246
251,910 BBB-/Ba3 WC Luxco S.a.r.l., Term Loan B-3, 4.25%,
3/15/18 253,169
-----------------
$ 1,439,089
--------------------------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.8%
1,310,265 BB-/Ba3 Catalent Pharma, Inc., Dollar Term Loan,
4.212%, 9/15/16 $ 1,316,817
-----------------
Total Pharmaceuticals, Biotechnology
& Life Sciences $ 2,755,906
--------------------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.1%
Real Estate Development -- 0.1%
193,750 B-/B1 Ozburn-Hessey Holding Co., LLC, First Lien
Term Loan, 8.25%, 4/8/16 $ 190,844
-----------------
Total Real Estate $ 190,844
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
RETAILING -- 0.5%
Computer & Electronics Retail -- 0.5%
888,750 B/B2 Targus Group International, Inc., Term Loan,
11.0%, 5/24/16 $ 893,194
-----------------
Total Retailing $ 893,194
--------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.8%
Semiconductor Equipment -- 0.8%
595,121 BB-/B1 Aeroflex, Inc., Tranche B Term Loan,
5.75%, 5/19/18 $ 597,167
765,247 B/B1 Freescale Semiconductor, Inc., Tranche B
Term Loan, 4.465%, 12/1/16 749,941
-----------------
Total Semiconductors &
Semiconductor Equipment $ 1,347,108
--------------------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 2.6%
Application Software -- 1.6%
461,104 CCC+/B1 Allen Systems Group, Inc., Term Loan B,
9.5%, 11/21/15 $ 442,083
676,600 B/Ba3 Expert Global Solutions, Inc., Advance
First Lien Term Loan B, 8.0%, 4/3/18 683,366
952,382 BB+/Baa2 Nuance Communications, Inc., Term Loan C,
3.22%, 3/31/16 955,656
500,000 CCC+/Caa1 Vertafore, Inc., Second Lien Term Loan,
9.75%, 10/29/17 501,250
-----------------
$ 2,582,355
--------------------------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.1%
213,214 BBB-/Ba2 Vantiv LLC, Tranche B Term Loan, 3.75%,
3/27/19 $ 213,881
--------------------------------------------------------------------------------------------------------------------------
Internet Software & Services -- 0.1%
246,250 BB+/Ba3 Autotrader.com, Inc., Tranche B-1 Term
Loan, 4.0%, 12/15/16 $ 248,020
--------------------------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.8%
1,347,567 BB/NR SunGuard Data Systems, Inc., Tranche C Term
Loan, 3.969%, 2/28/17 $ 1,354,297
-----------------
Total Software & Services $ 4,398,553
--------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.4%
Communications Equipment -- 0.1%
243,149 BB/Ba3 CommScope, Inc., Tranche 1 Term Loan,
4.25%, 1/14/18 $ 245,276
--------------------------------------------------------------------------------------------------------------------------
Electronic Components -- 0.3%
477,897 B/B2 Scitor Corp., Term Loan, 5.0%, 2/15/17 $ 476,104
-----------------
Total Technology Hardware & Equipment $ 721,380
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 21
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.8%
Air Freight & Logistics -- 0.8%
439,482 B/B1 Ceva Group Plc, Dollar Tranche B Pre-Funded
L/C Term Loan, 0.262%, 8/31/16 $ 421,903
919,588 B-/Ba3 Ceva Group Plc, U.S. Tranche B Term Loan,
5.313%, 8/31/16 882,804
-----------------
Total Transportation $ 1,304,707
--------------------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.2%
Electric Utilities -- 0.2%
629,720 CCC/Caa1 Texas Competitive Electric Holdings Co., LLC,
2017 Term Loan, 4.938%, 10/10/17 $ 409,318
-----------------
Total Utilities $ 409,318
--------------------------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING
RATE LOAN INTERESTS
(Cost $46,484,217) $ 46,252,010
--------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES --
103.0% of Net Assets
AUTOMOBILES & COMPONENTS -- 1.3%
Auto Parts & Equipment -- 1.3%
350,000 B/Caa1 International Automotive Components Group
SA, 9.125%, 6/1/18 (144A) $ 337,313
160,000 CCC/Caa1 Stanadyne Holdings, Inc., 10.0%, 8/15/14 149,400
500,000(d) CCC-/Caa3 Stanadyne Holdings, Inc., 12.0%, 2/15/15 331,875
1,174,000 B+/B1 Tower Automotive Holdings USA LLC / TA
Holdings Finance, Inc., 10.625%,
9/1/17 (144A) 1,275,257
-----------------
Total Automobiles & Components $ 2,093,845
--------------------------------------------------------------------------------------------------------------------------
BANKS -- 1.8%
Diversified Banks -- 0.9%
400,000(b)(e) BB+/B1 ABN Amro North American Holding Preferred
Capital Repackage Trust I, 6.523%,
12/29/49 (144A) $ 400,000
525,000 B/B3 Banco de Galicia y Buenos Aires, 8.75%,
5/4/18 (144A) 406,875
500,000(b) NR/Caa3 Banco Macro SA, 9.75%, 12/18/36 357,500
BRL 350,000 AAA/NR International Finance Corp., 9.25%,
3/15/13 174,690
200,000 NR/NR Turkiye IS Bankasi AS, 6.0%, 10/24/22 204,000
-----------------
$ 1,543,065
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Regional Banks -- 0.9%
600,000(b)(e) BBB/Baa3 PNC Financial Services Group, Inc.,
8.25%, 5/29/49 $ 621,422
750,000 BBB-/NR UBS AG/Stamford CT, 7.625%, 8/17/22 808,805
-----------------
$ 1,430,227
-----------------
Total Banks $ 2,973,292
--------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 8.0%
Aerospace & Defense -- 1.0%
600,000 B/B3 ADS Tactical, Inc., 11.0%, 4/1/18 (144A) $ 591,000
1,170,000 B-/B2 DynCorp International, Inc., 10.375%,
7/1/17 1,029,600
90,000 B/B1 GeoEye, Inc., 9.625%, 10/1/15 100,125
-----------------
$ 1,720,725
--------------------------------------------------------------------------------------------------------------------------
Building Products -- 0.8%
850,000 C/Caa3 New Enterprise Stone & Lime Co., Inc.,
11.0%, 9/1/18 $ 620,500
300,000 BB-/B2 USG Corp., 7.875%, 3/30/20 (144A) 327,000
365,000 BB-/B2 USG Corp., 9.75%, 8/1/14 (144A) 399,675
-----------------
$ 1,347,175
--------------------------------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.9%
900,000 B+/B1 Empresas ICA S.A.B. de C.V., 8.9%,
2/4/21 (144A) $ 972,000
500,000 NR/NR OAS Investments GMBH, 8.25%,
10/19/19 505,000
-----------------
$ 1,477,000
--------------------------------------------------------------------------------------------------------------------------
Construction & Farm Machinery &
Heavy Trucks -- 1.3%
458,000 B+/B3 American Railcar Industries, Inc., 7.5%,
3/1/14 $ 462,580
750,000 B+/B1 Lonking Holdings, Ltd., 8.5%, 6/3/16
(144A) 742,500
660,000 CCC+/B2 Navistar International Corp., 8.25%,
11/1/21 617,925
300,000 NR/NR OSX 3 Leasing BV, 9.25%, 3/20/15
(144A) 312,000
-----------------
$ 2,135,005
--------------------------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.5%
750,000 B/B3 WireCo WorldGroup, Inc., 9.5%, 5/15/17 $ 795,000
--------------------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.4%
455,000 B+/B2 JB Poindexter & Co., Inc., 9.0%, 4/1/22
(144A) $ 466,944
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 23
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- (continued)
EUR 90,000 BB-/Ba3 Mark IV Europe Lux SCA / Mark IV USA SCA,
8.875%, 12/15/17 (144A) $ 123,088
-----------------
$ 590,032
--------------------------------------------------------------------------------------------------------------------------
Industrial Machinery -- 1.2%
500,000(f) NR/WR Indalex Holding Corp., 11.5%, 2/1/14 $ 1,900
335,000 B/Caa2 Liberty Tire Recycling, 11.0%, 10/1/16
(144A) 331,650
875,000 CCC+/Caa2 Mueller Water Products, Inc., 7.375%,
6/1/17 901,250
665,000 B+/NR WPE International Cooperatief UA, 10.375%,
9/30/20 (144A) 571,900
150,000 B/B3 Xerium Technologies, Inc., 8.875%, 6/15/18 126,750
-----------------
$ 1,933,450
--------------------------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 1.9%
1,090,000 B-/B3 INTCOMEX, Inc., 13.25%, 12/15/14 $ 1,113,162
1,090,000 B-/B3 TRAC Intermodal LLC / TRAC Intermodal Corp.,
11.0%, 8/15/19 (144A) 1,104,988
1,000,000 B/B1 WESCO Distribution, Inc., 7.5%, 10/15/17 1,013,750
-----------------
$ 3,231,900
-----------------
Total Capital Goods $ 13,230,287
--------------------------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL
SERVICES -- 0.2%
Environmental & Facilities Services -- 0.2%
210,000 BB-/B3 Casella Waste Systems, Inc., 11.0%,
7/15/14 $ 221,865
EUR 107,128 CCC-/Caa2 New Reclamation Group Pty., Ltd., 8.125%,
2/1/13 (144A) 118,044
700,000(f) NR/WR Old AII, Inc., 10.0%, 12/15/16 70
-----------------
Total Commercial & Professional Services $ 221,935
--------------------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 3.3%
Homebuilding -- 1.1%
530,000 CCC/Caa3 Beazer Homes USA, Inc., 9.125%, 6/15/18 $ 555,837
200,000 BB-/Ba3 Corporacion GEO SAB de CV, 8.875%,
3/27/22 (144A) 211,500
630,000 NR/Ba3 Desarrolladora Homex SAB de CV, 9.5%,
12/11/19 (144A) 629,244
500,000 NR/Ba3 Urbi Desarrollos Urbanos SAB de CV,
9.75%, 2/3/22 (144A) 465,000
-----------------
$ 1,861,581
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 1.4%
500,000 CCC+/Caa2 Reynolds Group Issuer, Inc., 9.0%, 4/15/19 $ 506,250
475,000 CCC+/Caa2 Reynolds Group Issuer, Inc., 9.875%,
8/15/19 497,563
1,000,000 CCC+/B3 Yankee Candle Co., Inc., 9.75%, 2/15/17 1,038,750
350,000(g) CCC+/Caa1 YCC Holdings LLC / Yankee Finance, Inc.,
10.25%, 2/15/16 361,812
-----------------
$ 2,404,375
--------------------------------------------------------------------------------------------------------------------------
Leisure Products -- 0.8%
EUR 275,000 CCC/Caa2 Heckler & Koch GmbH, 9.5%, 5/15/18
(144A) $ 306,587
1,000,000 B/B2 Icon Health & Fitness, Inc., 11.875%,
10/15/16 (144A) 955,000
-----------------
$ 1,261,587
-----------------
Total Consumer Durables & Apparel $ 5,527,543
--------------------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 4.4%
Business Services -- 0.7%
750,000 B/B1 Sitel LLC / Sitel Finance Corp., 11.0%,
8/1/17 (144A) $ 754,688
600,000 B-/Caa2 Sitel LLC / Sitel Finance Corp., 11.5%,
4/1/18 429,000
-----------------
$ 1,183,688
--------------------------------------------------------------------------------------------------------------------------
Casinos & Gaming -- 1.9%
500,000(f) NR/WR Buffalo Thunder Development Authority,
9.375%, 12/15/14 (144A) $ 175,000
EUR 1,155,000 B-/Caa2 Codere Finance Luxembourg SA, 8.25%,
6/15/15 (144A) 1,220,287
500,000 B-/Caa2 Codere Finance Luxembourg SA, 9.25%,
2/15/19 (144A) 376,250
90,000 NR/NR Little Traverse Bay Bands of Odawa Indians,
9.0%, 8/31/20 (144A) 83,700
1,615,000(f)(h) NR/WR Mashantucket Western Pequot Tribe, 8.5%,
11/15/15 (144A) 193,800
EUR 500,000 B-/B3 Peermont Global, Ltd., 7.75%, 4/30/14
(144A) 625,489
450,000 BB-/B1 Scientific Games International, Inc., 9.25%,
6/15/19 500,625
-----------------
$ 3,175,151
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 25
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.5%
400,000 CCC+/B2 Seven Seas Cruises S de RL LLC, 9.125%,
5/15/19 $ 415,500
325,000 B+/B3 Viking Cruises, Ltd., 8.5%, 10/15/22 335,563
-----------------
$ 751,063
--------------------------------------------------------------------------------------------------------------------------
Restaurants -- 0.9%
1,235,000(d) B-/Caa1 Burger King Capital Holdings LLC, 0.0%,
4/15/19 (144A) $ 1,028,137
400,000 B/B3 Burger King Corp., 9.875%, 10/15/18 463,000
-----------------
$ 1,491,137
--------------------------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.4%
150,000 B/B2 Avis Budget Car Rental LLC / Avis Budget
Finance, Inc., 9.625%, 3/15/18 $ 167,062
500,000 B-/B3 StoneMor Operating LLC, 10.25%, 12/1/17 505,000
-----------------
$ 672,062
-----------------
Total Consumer Services $ 7,273,101
--------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 6.6%
Asset Management & Custody Banks -- 0.4%
590,000 BBB-/Baa3 Janus Capital Group, Inc., 6.7%, 6/15/17 $ 677,440
--------------------------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.3%
610,000 NR/NR Tarjeta Naranja SA, 9.0%, 1/28/17 (144A) $ 536,800
--------------------------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.2%
450,000(b) BB+/Ba2 Goldman Sachs Capital II, 4.0%, 6/1/43 $ 355,680
--------------------------------------------------------------------------------------------------------------------------
Multi-Sector Holdings -- 0.4%
600,000 B/B2 Constellation Enterprises LLC, 10.625%,
2/1/16 (144A) $ 634,500
--------------------------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 2.1%
EUR 500,000(a) B/NR ATLAS VI Capital, Ltd., 9.721%, 4/6/13
(144A) $ 644,740
EUR 500,000(a) B-/NR ATLAS VI Capital, Ltd., 10.481%, 4/7/14
(144A) 654,333
1,750,000(a) BB-/NR Lodestone Re, Ltd., 8.356%, 5/17/13
(144A) 1,787,450
300,000(e) BB/NR Magnesita Finance, Ltd., 8.625%,
4/29/49 (144A) 316,542
-----------------
$ 3,403,065
--------------------------------------------------------------------------------------------------------------------------
Reinsurance -- 2.0%
1,500,000(a) BB+/NR Caelus Re II, Ltd., 6.5%, 5/24/13 (144A) $ 1,534,350
1,800,000(a) BB/NR Lodestone Re Ltd., 7.356%, 1/8/14
(144A) 1,824,480
-----------------
$ 3,358,830
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Specialized Finance -- 1.2%
500,000 BB+/Baa3 Capital One Capital V, 10.25%, 8/15/39 $ 515,000
1,000,000(a) BB+/NR Kibou, Ltd., 5.356%, 2/16/15 (144A) 1,023,800
425,000 B+/B2 National Money Mart Co., 10.375%,
12/15/16 474,406
-----------------
$ 2,013,206
-----------------
Total Diversified Financials $ 10,979,521
--------------------------------------------------------------------------------------------------------------------------
ENERGY -- 10.9%
Coal & Consumable Fuels -- 1.2%
850,000 B+/B1 Bumi Capital Pte, Ltd., 12.0%, 11/10/16
(144A) $ 726,750
1,000,000 B/Caa1 Foresight Energy LLC / Foresight Energy
Corp., 9.625%, 8/15/17 (144A) 1,032,500
400,000 CCC+/B2 James River Coal Co., 7.875%, 4/1/19 260,000
-----------------
$ 2,019,250
--------------------------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 1.3%
1,000,000 CCC+/Caa1 Ocean Rig UDW, Inc., 9.5%, 4/27/16
(144A) $ 1,025,000
302,000 B-/B3 Offshore Group Investments, Ltd., 11.5%,
8/1/15 331,822
500,000 B+/B2 Pioneer Energy Services Corp., 9.875%,
3/15/18 541,250
320,000 NR/B1 Shelf Drill Holdings, Ltd., 8.625%, 11/1/18 321,600
-----------------
$ 2,219,672
--------------------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 1.6%
1,358,000 B+/B1 American Petroleum Tankers Parent LLC / AP
Tankers Co., 10.25%, 5/1/15 $ 1,419,110
448,000 B/B3 Expro Finance Luxembourg SCA, 8.5%,
12/15/16 (144A) 459,200
330,000 B/Caa1 Forbes Energy Services, Ltd., 9.0%,
6/15/19 306,075
65,067(f) NR/NR Nexus 1 Pte., Ltd., 10.5%, 4/9/12 (144A) 65
NOK 1,000,000(a) NR/NR Transocean Drilling Norway AS, 9.05%,
2/24/16 185,946
NOK 1,000,000 NR/NR Transocean Norway Drilling AS, 11.0%,
2/24/16 185,945
-----------------
$ 2,556,341
--------------------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 6.2%
505,000 B+/B1 Berry Petroleum Co., 10.25%, 6/1/14 $ 563,075
100,000 B-/B3 Comstock Resources, Inc., 7.75%, 4/1/19 101,500
500,000 B-/B3 Comstock Resources, Inc., 9.5%, 6/15/20 535,000
920,000 NR/NR Forest Oil Corp., 7.5%, 9/15/20 940,700
570,000 NR/NR Gulfport Energy Corp., 7.75%, 11/1/20 558,600
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 27
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- (continued)
650,000 CCC+/B3 Halcon Resources Corp., 9.75%, 7/15/20
(144A) $ 685,750
444,000 B/B2 Linn Energy LLC / Linn Energy Finance Corp.,
11.75%, 5/15/17 488,400
455,000 B-/Caa1 Midstates Petroleum Co., Inc., 10.75%,
10/1/20 482,300
800,000 B+/NR MIE Holdings Corp., 9.75%, 5/12/16 (144A) 848,000
200,000 NR/NR National JSC Naftogaz of Ukraine, 9.5%,
9/30/14 203,760
1,440,000 B-/Caa1 Northern Oil & Gas, Inc., 8.0%, 6/1/20 1,490,400
NOK 2,500,000 NR/NR Norwegian Energy Co., AS, 12.9%, 11/20/14 429,560
535,000 B-/B3 PDC Energy, Inc., 7.75%, 10/15/22 (144A) 544,363
280,000 CCC+/Caa1 PetroBakken Energy, Ltd., 8.625%,
2/1/20 (144A) 285,600
480,000 B-/Caa1 QR Energy LP / QRE Finance Corp., 9.25%,
8/1/20 (144A) 498,000
240,000 CCC/Caa1 Quicksilver Resources, Inc., 7.125%, 4/1/16 208,800
700,000 B-/B3 Resolute Energy Corp., 8.5%, 5/1/20 (144A) 721,000
472,000 BB-/B3 Rosetta Resources, Inc., 9.5%, 4/15/18 520,970
200,000 B-/B3 Samson Investment Co., 9.75%,
2/15/20 (144A) 211,000
-----------------
$ 10,316,778
--------------------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.6%
600,000 B/B2 EP Energy LLC / EP Energy Finance, Inc.,
9.375%, 5/1/20 (144A) $ 663,000
450,000(b) BB/Ba1 Southern Union Co., 3.33%, 11/1/66 370,687
-----------------
$ 1,033,687
-----------------
Total Energy $ 18,145,728
--------------------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 5.0%
Agricultural Products -- 0.7%
1,127,000 B/B3 Southern States Cooperative, Inc., 11.25%,
5/15/15 (144A) $ 1,176,306
--------------------------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 3.1%
225,000 B/(P)B2 Agrokor DD, 8.875%, 2/1/20 (144A) $ 232,875
EUR 200,000 B/B2 Agrokor DD, 9.875%, 5/1/19 (144A) 276,771
650,000 BB/B1 Bertin SA / Bertin Finance Ltd., 10.25%,
10/5/16 (144A) 710,125
500,000 B+/B1 CFG Investment SAC, 9.75%, 7/30/19
(144A) 432,500
491,000 B+/B2 Corporacion Pesquera Inca SAC, 9.0%,
2/10/17 (144A) 527,825
750,000 B/B3 FAGE Dairy Industry SA/FAGE USA Dairy
Industry, Inc., 9.875%, 2/1/20 (144A) 750,000
The accompanying notes are an integral part of these financial statements.
28 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- (continued)
224,421(f)(h) NR/NR Independencia International, Ltd., 12.0%,
12/30/16 (144A) $ 1,010
600,000 B+/B2 Marfrig Holding Europe BV, 8.375%,
5/9/18 (144A) 519,000
475,000 B+/B2 Marfrig Overseas, Ltd., 9.5%, 5/4/20 (144A) 420,375
700,000 B+/B2 Marfrig Overseas, Ltd., 9.625%, 11/16/16
(144A) 693,000
200,000 B+/B2 Minerva Luxembourg SA, 12.25%,
2/10/22 (144A) 238,000
300,000 B-/Caa1 Pilgrim's Pride Corp., 7.875%, 12/15/18 295,500
-----------------
$ 5,096,981
--------------------------------------------------------------------------------------------------------------------------
Tobacco -- 1.2%
2,015,000 B-/B3 Alliance One International, Inc., 10.0%,
7/15/16 $ 2,080,488
-----------------
Total Food, Beverage & Tobacco $ 8,353,775
--------------------------------------------------------------------------------------------------------------------------
GOVERNMENT -- 0.2%
400,000 B/NR Province of Salta Argentina, 9.5%,
3/16/22 (144A) $ 328,296
-----------------
Total Government $ 328,296
--------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.8%
Health Care Equipment & Services -- 1.0%
915,000 CCC+/Caa2 Accellent, Inc., 10.0%, 11/1/17 $ 699,975
875,000 B+/B2 Physio-Control International, Inc., 9.875%,
1/15/19 (144A) 958,125
-----------------
$ 1,658,100
--------------------------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.5%
600,000 B-/B3 Kindred Healthcare, Inc., 8.25%, 6/1/19 $ 588,000
200,000 CCC+/(P)Caa1 United Surgical Partners, 9.0%, 4/1/20 219,000
26,000(i) CCC+/Caa1 Vanguard Health Systems, Inc., 0.0%,
2/1/16 18,200
-----------------
$ 825,200
--------------------------------------------------------------------------------------------------------------------------
Health Care Services -- 2.3%
378,000 B-/Caa1 BioScrip, Inc., 10.25%, 10/1/15 $ 404,460
476,000 CCC/Caa2 Gentiva Health Services, Inc., 11.5%,
9/1/18 443,870
1,000,000 CCC+/Caa2 Rural / Metro Corp., 10.125%,
7/15/19 (144A) 932,500
796,459 CCC+/B3 Surgical Care Affiliates, Inc., 8.875%,
7/15/15 (144A) 812,388
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 29
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Health Care Services -- (continued)
1,170,000 CCC+/Caa1 Surgical Care Affiliates, Inc., 10.0%,
7/15/17 (144A) $ 1,205,100
-----------------
$ 3,798,318
--------------------------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.8%
750,000 B/Caa1 Bausch & Lomb, Inc., 9.875%, 11/1/15 $ 768,750
500,000 B-/Caa1 Immucor, Inc., 11.125%, 8/15/19 555,000
-----------------
$ 1,323,750
--------------------------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.2%
275,000 NR/NR Emdeon, Inc., 11.0%, 12/31/19 $ 312,125
-----------------
Total Health Care Equipment & Services $ 7,917,493
--------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.2%
Personal Products -- 0.2%
300,000 B/B2 Revlon Consumer Products Corp., 9.75%,
11/15/15 $ 316,125
-----------------
Total Household & Personal Products $ 316,125
--------------------------------------------------------------------------------------------------------------------------
INSURANCE -- 24.9%
Insurance Brokers -- 2.2%
250,000 CCC/Caa2 Alliant Holdings I, Inc., 11.0%, 5/1/15
(144A) $ 257,750
1,000,000 CCC+/Caa2 HUB International, Ltd., 8.125%,
10/15/18 (144A) 1,027,500
GBP 475,000 NR/Caa1 Towergate Finance Plc, 10.5%,
2/15/19 (144A) 727,844
827,000(a) CCC/Caa1 USI Holdings Corp., 4.31%, 11/15/14
(144A) 802,190
804,000 CCC/Caa2 USI Holdings Corp., 9.75%, 5/15/15
(144A) 816,060
-----------------
$ 3,631,344
--------------------------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 1.2%
1,000,000(b) BB/Baa3 Liberty Mutual Group, Inc., 7.0%,
3/15/37 (144A) $ 990,000
670,000(b) BB/Baa3 Liberty Mutual Group, Inc., 10.75%,
6/15/58 (144A) 998,300
-----------------
$ 1,988,300
--------------------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.0%+
80,000(b)(e) BB+/Ba2 White Mountains Insurance Group, Ltd.,
7.506%, 5/29/49 (144A) $ 83,112
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Reinsurance -- 21.5%
EUR 750,000 NR/NR ATLAS Reinsurance VII, 3.65%, 1/7/16 $ 972,262
250,000 NR/NR ATLAS Reinsurance VII, 11.75%, 11/10/16 250,000
400,000(a) NR/B1 Combine Re, Ltd., 10.106%, 1/7/15
(144A) 423,320
750,000(a) NR/NR Combine Re, Ltd., 17.856%, 1/7/15
(144A) 787,350
500,000(a) BB-/NR Compass Re, Ltd., 10.356%, 1/8/15
(144A) 518,250
500,000(a) B+/NR Compass Re, Ltd., 11.356%, 1/8/15
(144A) 517,800
1,000,000(a) BB+/NR Foundation Re III, Ltd., 5.106%,
2/25/15 1,017,100
1,000,000(a) BB/NR Foundation Re III, Ltd., 5.856%, 2/3/14
(144A) 1,016,900
750,000(a) NR/B1 GlobeCat, Ltd., 6.359%, 1/2/13 (144A) 750,300
350,000(a) NR/B3 GlobeCat, Ltd., 9.609%, 1/2/13 (144A) 354,235
1,300,000(a) B-/NR Ibis Re II, Ltd., 13.606%, 2/5/15 (144A) 1,378,650
500,000(a) BB-/NR Ibis Re, Ltd., 6.306%, 5/3/13 (144A) 512,750
1,000,000(a) B/NR Ibis Re, Ltd., 9.356%, 5/3/13 (144A) 989,800
1,000,000(b) BB-/NR Loma Reinsurance, Ltd., 9.977%, 12/21/12
(144A) 1,004,700
750,000(a) B/NR Montana Re, Ltd., 10.16%, 12/7/12 (144A) 755,925
1,000,000(a) B/NR Montana Re, Ltd., 12.31%, 1/8/14 (144A) 1,021,800
750,000(a) CCC+/NR Montana Re, Ltd., 13.66%, 12/7/12 (144A) 756,000
2,000,000(a) NR/NR Montana Re, Ltd., 16.81%, 1/8/14 (144A) 2,047,200
725,000 NR/NR Mythen Re, Ltd., 11.75%, 11/10/16 725,000
1,500,000(a) NR/B2 Mythen, Ltd., 11.407%, 5/7/15 (144A) 1,596,150
500,000(a) NR/NR Pelican Re, Ltd., 13.856%, 4/13/15 (144A) 532,350
1,200,000(a) BB-/NR Queen Street II Capital, Ltd., 7.606%, 4/9/14
(144A) 1,210,680
1,000,000(a) B+/NR Queen Street III Capital, Ltd., 4.856%,
7/28/14 (144A) 996,500
2,000,000(a) BB-/NR Queen Street IV Capital, Ltd., 7.606%,
4/9/15 (144A) 1,975,000
250,000 NR/NR Queen Street VII Capital, Ltd., 8.6%, 4/8/16 250,000
250,000(a) NR/NR Residential Reinsurance 2010, Ltd., 7.356%,
6/6/13 (144A) 256,950
1,250,000(a) NR/NR Residential Reinsurance 2010, Ltd., 10.856%,
6/6/13 (144A) 1,307,125
250,000(a) B-/NR Residential Reinsurance 2010, Ltd., 13.086%,
6/6/13 (144A) 265,175
1,250,000(a) B-/NR Residential Reinsurance 2011, Ltd., 12.106%,
6/6/15 (144A) 1,289,000
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 31
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
1,000,000(a) NR/NR Residential Reinsurance 2012, Ltd., 22.106%,
6/6/16 (144A) $ 882,800
500,000(a) B-/NR Successor X, Ltd., 9.856%, 4/4/13 (144A) 499,750
500,000(a) NR/B2 Successor X, Ltd., 11.106%, 1/27/15
(144A) 522,850
1,500,000(a) B-/NR Successor X, Ltd., 11.356%, 11/10/15
(144A) 1,481,250
1,250,000(a) NR/NR Successor X, Ltd., 11.856%, 4/4/13 (144A) 1,246,125
2,000,000(a) B-/NR Successor X, Ltd., 14.916%, 1/7/14 (144A) 2,054,000
2,000,000(a) NR/NR Successor X, Ltd., 16.416%, 1/7/14 (144A) 2,048,600
1,000,000(a) NR/NR Successor X, Ltd., 16.606%, 1/27/15 (144A) 1,018,300
500,000(a) NR/NR Successor X, Ltd., 16.856%, 4/4/13 (144A) 497,000
-----------------
$ 35,728,947
-----------------
Total Insurance $ 41,431,703
--------------------------------------------------------------------------------------------------------------------------
MATERIALS -- 13.5%
Aluminum -- 0.0%+
670(g) CCC+/B3 Noranda Aluminum Acquisition Corp.,
4.73%, 5/15/15 $ 633
--------------------------------------------------------------------------------------------------------------------------
Commodity Chemicals -- 0.5%
300,000 BB+/WR Basell Finance Co., BV, 8.1%,
3/15/27 (144A) $ 402,000
EUR 250,000 CCC/Caa1 KP Germany Erste GmbH, 11.625%,
7/15/17 (144A) 345,963
-----------------
$ 747,963
--------------------------------------------------------------------------------------------------------------------------
Construction Materials -- 0.8%
865,000 C/Caa3 AGY Holding Corp., 11.0%, 11/15/14 $ 397,900
389,000 B-/NR Cemex Espana Luxembourg, 9.875%,
4/30/19 (144A) 419,148
400,000 B-/NR Cemex Finance LLC, 9.5%, 12/14/16
(144A) 424,500
100,000 B-/NR Cemex SAB de CV, 9.0%, 1/11/18 (144A) 103,750
-----------------
$ 1,345,298
--------------------------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 1.1%
EUR 1,375,000 CCC+/Caa1 INEOS Group Holdings SA, 7.875%,
2/15/16 (144A) $ 1,700,042
275,000 CC/Caa1 Momentive Performance Materials, Inc.,
9.0%, 1/15/21 189,750
-----------------
$ 1,889,792
--------------------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.5%
300,000 CCC+/Caa1 Midwest Vanadium Pty., Ltd., 11.5%,
2/15/18 (144A) $ 180,000
The accompanying notes are an integral part of these financial statements.
32 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- (continued)
650,000 CCC+/Caa1 Mirabela Nickel, Ltd., 8.75%, 4/15/18
(144A) $ 533,000
550,000 CCC+/B3 Molycorp, Inc., 10.0%, 6/1/20 (144A) 529,375
400,000 B+/B1 Mongolian Mining Corp., 8.875%,
3/29/17 (144A) 408,000
750,000 BB/Ba3 Vedanta Resources Plc, 9.5%, 7/18/18
(144A) 811,875
-----------------
$ 2,462,250
--------------------------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 1.7%
531,327(g) CCC+/Caa1 Ardagh Finance SA, 11.125%, 6/1/18
(144A) $ 547,267
EUR 255,000 B+/Ba3 Ardagh Glass Finance Plc, 9.25%,
7/1/16 (144A) 357,841
EUR 250,000 CCC+/B3 Ardagh Glass Finance Plc, 8.75%,
2/1/20 (144A) 331,380
175,000 CCC+/B3 BWAY Holdings Co., 10.0%, 6/15/18 194,250
1,237,660(g) CCC+/Caa1 BWAY Parent Co., Inc., 10.125%, 11/1/15 1,349,049
-----------------
$ 2,779,787
--------------------------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.7%
750,103(d) NR/NR Bio Pappel SAB de CV, 7.0%, 8/27/16 $ 693,845
500,000 B-/Caa1 Pretium Packaging LLC / Pretium Finance,
Inc., 11.5%, 4/1/16 512,500
-----------------
$ 1,206,345
--------------------------------------------------------------------------------------------------------------------------
Paper Products -- 1.9%
500,000 B+/B1 Appleton Papers, Inc., 10.5%, 6/15/15
(144A) $ 530,000
200,000 CCC+/B3 Appleton Papers, Inc., 11.25%, 12/15/15 207,500
260,000 BB/Ba3 Clearwater Paper Corp., 10.625%, 6/15/16 286,325
580,000 CCC+/Caa2 Exopack Holdings Corp., 10.0%, 6/1/18 536,500
186,000 B+/B1 Grupo Papelero Scribe SA de CV, 8.875%,
4/7/20 (144A) 162,564
344,000 B+/B3 Mercer International, Inc., 9.5%, 12/1/17 366,360
392,000 BB/B1 Resolute Forest Products, 10.25%,
10/15/18 446,880
545,000 BB/Ba2 Sappi Papier Holding GmbH, 8.375%,
6/15/19 (144A) 574,975
-----------------
$ 3,111,104
--------------------------------------------------------------------------------------------------------------------------
Precious Metals & Minerals -- 0.3%
500,000 BB-/Ba3 ALROSA Finance SA, 8.875%,
11/17/14 (144A) $ 554,400
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 33
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Steel -- 5.0%
750,000 B+/B3 AM Castle & Co., 12.75%, 12/15/16 $ 858,750
250,000 BB-/B2 APERAM, 7.375%, 4/1/16 (144A) 217,500
350,000 B/Caa1 Atkore International, Inc., 9.875%, 1/1/18 350,000
450,000 B/B3 Essar Steel Algoma, Inc., 9.375%,
3/15/15 (144A) 424,125
1,245,000 CCC/Caa2 Essar Steel Algoma, Inc., 9.875%,
6/15/15 (144A) 971,100
250,000 B+/B1 Evraz Group SA, 8.875%, 4/24/13 (144A) 257,502
250,000 B+/B1 Evraz Group SA, 9.5%, 4/24/18 (144A) 282,023
900,000 B+/B3 Ferrexpo Finance Plc, 7.875%,
4/7/16 (144A) 864,000
900,000 NR/B2 Metinvest BV, 8.75%, 2/14/18 (144A) 863,775
600,000 NR/B2 Metinvest BV, 10.25%, 5/20/15 (144A) 612,540
850,000 B/B2 Optima Specialty Steel, Inc., 12.5%,
12/15/16 (144A) 909,500
750,000 CCC+/Caa2 Ryerson, Inc., 9.0%, 10/15/17 (144A) 765,000
920,000 CCC+/Caa1 Ryerson, Inc., 12.0%, 11/1/15 947,600
EUR 50,000 CCC/Caa2 Zlomrex International Finance SA, 8.5%,
2/1/14 (144A) 52,178
-----------------
$ 8,375,593
-----------------
Total Materials $ 22,473,165
--------------------------------------------------------------------------------------------------------------------------
MEDIA -- 6.2%
Advertising -- 1.2%
1,100,000 NR/B3 Good Sam Enterprises LLC, 11.5%, 12/1/16 $ 1,172,875
716,000 B/B3 MDC Partners, Inc., 11.0%, 11/1/16 780,440
-----------------
$ 1,953,315
--------------------------------------------------------------------------------------------------------------------------
Broadcasting -- 3.2%
1,139,556(g) CCC+/Caa3 Intelsat Bermuda, Ltd., 11.5%, 2/4/17 $ 1,199,383
125,000(g) CCC+/Caa3 Intelsat Luxembourg SA, 11.5%,
2/4/17 (144A) 131,562
400,000 B+/B1 Nara Cable Funding, Ltd., 8.875%,
12/1/18 (144A) 433,362
430,000 B-/B3 Telesat Canada / Telesat LLC, 12.5%,
11/1/17 477,300
1,655,000 B/B3 Townsquare Radio LLC / Townsquare
Radio, Inc., 9.0%, 4/1/19 (144A) 1,787,400
990,000 CCC+/Caa1 Truven Health Analytics, Inc., 10.625%,
6/1/20 (144A) 1,061,775
EUR 200,000 B+/B1 TVN Finance Corp., II AB, 10.75%,
11/15/17 (144A) 281,632
-----------------
$ 5,372,414
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Cable -- 0.1%
74,584 B/B2 CCH II LLC / CCH II Capital Corp., 13.5%,
11/30/16 $ 80,178
--------------------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 1.2%
1,710,000 CCC+/Caa1 AMC Entertainment, Inc., 9.75%, 12/1/20 $ 1,919,475
200,000 CCC+/Caa1 Production Resource Group, Inc., 8.875%,
5/1/19 142,000
-----------------
$ 2,061,475
--------------------------------------------------------------------------------------------------------------------------
Publishing -- 0.5%
600,000 CCC/Caa3 Cengage Learning Acquisitions, Inc.,
10.5%, 1/15/15 (144A) $ 511,500
245,000 B/Caa1 Interactive Data Corp., 10.25%, 8/1/18 274,400
-----------------
$ 785,900
-----------------
Total Media $ 10,253,282
--------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY
& LIFE SCIENCES -- 1.2%
Biotechnology -- 0.8%
300,000 B/Caa1 ConvaTec Healthcare E SA, 10.5%,
12/15/18 (144A) $ 325,500
1,043,000 B+/Caa2 Lantheus Medical Imaging, Inc., 9.75%,
5/15/17 962,168
-----------------
$ 1,287,668
--------------------------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.1%
130,297 B/Caa1 Catalent Pharma Solutions, Inc., 9.5%,
4/15/15 $ 133,717
--------------------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.3%
1,215,000(f) NR/NR KV Pharmaceutical Co., 12.0%, 3/15/15 $ 605,981
-----------------
Total Pharmaceuticals, Biotechnology
& Life Sciences $ 2,027,366
--------------------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.3%
Diversified REIT's -- 0.1%
200,000 B+/Ba3 CNL Lifestyle Properties, Inc., 7.25%,
4/15/19 $ 189,500
--------------------------------------------------------------------------------------------------------------------------
Real Estate Operating Companies -- 0.2%
410,000 B/NR IRSA Inversiones y Representaciones SA,
8.5%, 2/2/17 (144A) $ 340,300
-----------------
Total Real Estate $ 529,800
--------------------------------------------------------------------------------------------------------------------------
RETAILING -- 1.0%
Distributors -- 1.0%
1,438,000 B+/B2 Minerva Overseas II, Ltd., 10.875%,
11/15/19 (144A) $ 1,660,890
-----------------
Total Retailing $ 1,660,890
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 35
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.4%
Semiconductor Equipment -- 0.2%
465,000 B+/Caa1 MEMC Electronic Materials, Inc., 7.75%,
4/1/19 $ 347,006
--------------------------------------------------------------------------------------------------------------------------
Semiconductors -- 0.2%
500,000 NR/NR Advanced Micro Devices, 7.5%, 8/15/22 $ 397,500
-----------------
Total Semiconductors &
Semiconductor Equipment $ 744,506
--------------------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.1%
Application Software -- 0.3%
689,000 CC/Caa2 Allen Systems Group, Inc., 10.5%,
11/15/16 (144A) $ 496,080
--------------------------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.3%
404,000 B-/Caa1 First Data Corp., 8.25%, 1/15/21 (144A) $ 404,000
91,000 B-/Caa1 First Data Corp., 9.875%, 9/24/15 92,934
-----------------
$ 496,934
--------------------------------------------------------------------------------------------------------------------------
Systems Software -- 0.5%
938,504(g)(h) NR/NR Pegasus Solutions, Inc., 13.0%,
4/15/14 (144A) $ 825,883
-----------------
Total Software & Services $ 1,818,897
--------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.3%
Computer Storage & Peripherals -- 0.3%
415,000 BBB/Baa3 Seagate Technology International, Inc.,
10.0%, 5/1/14 (144A) $ 450,275
-----------------
Total Technology Hardware & Equipment $ 450,275
--------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.6%
Alternative Carriers -- 0.7%
750,000 BB-/WR PAETEC Holding Corp., 8.875%, 6/30/17 $ 808,125
350,000 NR/WR PAETEC Holding Corp., 9.875%, 12/1/18 399,875
-----------------
$ 1,208,000
--------------------------------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- 0.5%
388,000 CCC+/B3 Cincinnati Bell, Inc., 8.75%, 3/15/18 $ 391,880
300,000 BB/Ba2 Frontier Communications Corp., 8.75%,
4/15/22 345,750
-----------------
$ 737,630
--------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.4%
300,000 NR/Caa1 Digicel Group, Ltd., 10.5%, 4/15/18 (144A) $ 331,500
750,000 B-/B2 NII Capital Corp., 10.0%, 8/15/16 744,375
The accompanying notes are an integral part of these financial statements.
36 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication
Services -- (continued)
1,115,000 BB/Ba3 Vimpel Communications Via VIP Finance
Ireland Ltd. OJSC, 9.125%, 4/30/18 (144A) $ 1,305,699
-----------------
$ 2,381,574
-----------------
Total Telecommunication Services $ 4,327,204
--------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 3.0%
Air Freight & Logistics -- 0.7%
1,329,000 CCC+/Caa1 CEVA Group Plc, 11.5%, 4/1/18 (144A) $ 1,142,940
--------------------------------------------------------------------------------------------------------------------------
Airlines -- 1.1%
109,515 BB+/Ba2 Continental Airlines 1998-1 Class B Pass
Through Trust, 6.748%, 3/15/17 $ 114,608
250,000 BB+/Ba3 Delta Air Lines 2010-1 Class B Pass
Through Trust, 6.375%, 1/2/16 257,500
1,000,000 B-/NR Gol Finance, 9.25%, 7/20/20 (144A) 925,000
500,000 BB-/NR TAM Capital 3, Inc., 8.375%, 6/3/21 (144A) 552,500
-----------------
$ 1,849,608
--------------------------------------------------------------------------------------------------------------------------
Airport Services -- 0.3%
558,000 B/B3 Aeropuertos Argentina 2000 SA, 10.75%,
12/1/20 (144A) $ 520,335
--------------------------------------------------------------------------------------------------------------------------
Marine -- 0.3%
525,000 B+/B3 Navios South American Logistics, Inc./Navios
Logistics Finance US, Inc., 9.25%, 4/15/19 $ 497,438
--------------------------------------------------------------------------------------------------------------------------
Railroads -- 0.2%
293,732(g) CCC/Caa3 Florida East Coast Holdings Corp.,
10.5%, 8/1/17 $ 281,983
--------------------------------------------------------------------------------------------------------------------------
Trucking -- 0.4%
425,000 B+/Caa1 Swift Services Holdings, Inc., 10.0%,
11/15/18 $ 455,812
300,000 B/B3 Syncreon Global Ireland, Ltd., 9.5%,
5/1/18 (144A) 313,125
-----------------
$ 768,937
-----------------
Total Transportation $ 5,061,241
--------------------------------------------------------------------------------------------------------------------------
UTILITIES -- 1.8%
Electric Utilities -- 0.7%
750,000 CCC+/NR Cia de Energia Electrica en Alta Tension
Transener SA, 9.75%, 8/15/21 (144A) $ 322,500
419,000 NR/Caa1 Empresa Distrbuidora Y Comercializadora
Norte, 9.75%, 10/25/22 (144A) 193,788
225,000 BB+/Ba1 PNM Resources, Inc., 9.25%, 5/15/15 257,062
240,000 CCC/Caa1 Texas Competitive Electric Holdings Co., LLC /
TCEH Finance, Inc., 11.5%, 10/1/20
(144A) 171,600
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 37
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
Electric Utilities -- (continued)
510,000 CC/Caa3 Texas Competitive Electric Holdings Co., LLC /
TCEH Finance, Inc., 15.0%, 4/1/21 $ 147,900
-----------------
$ 1,092,850
--------------------------------------------------------------------------------------------------------------------------
Gas Utilities -- 0.5%
1,135,000 B/B3 Transportadora de Gas del Sur SA, 7.875%,
5/14/17 (144A) $ 885,300
--------------------------------------------------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 0.6%
500,000 BB-/Ba3 InterGen NV, 9.0%, 6/30/17 (144A) $ 473,750
500,000 NR/B2 Star Energy Geothermal Wayang Windu, Ltd.,
11.5%, 2/12/15 (144A) 540,650
-----------------
$ 1,014,400
-----------------
Total Utilities $ 2,992,550
--------------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES
(Cost $171,962,811) $ 171,249,864
--------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS & NOTES --
2.7% of Net Assets
DIVERSIFIED FINANCIALS -- 0.1%
Asset Management & Custody Banks -- 0.1%
120,000 BBB/NR Apollo Investment Corp., 5.75%, 1/15/16 $ 123,150
-----------------
Total Diversified Financials $ 123,150
--------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT &
SERVICES -- 1.0%
Health Care Equipment & Services -- 0.7%
1,040,000(d) B+/NR Hologic, Inc., 2.0%, 12/15/37 $ 1,168,050
--------------------------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.3%
405,000 B/NR LifePoint Hospitals, Inc., 3.5%, 5/15/14 $ 416,138
--------------------------------------------------------------------------------------------------------------------------
Health Care Services -- 0.0%+
15,000 B+/B2 Omnicare, Inc., 3.25%, 12/15/35 $ 14,803
-----------------
Total Health Care Equipment & Services $ 1,598,991
--------------------------------------------------------------------------------------------------------------------------
MATERIALS -- 1.0%
Diversified Chemicals -- 0.9%
1,900,000(j) B+/NR Hercules, Inc., 6.5%, 6/30/29 $ 1,565,125
--------------------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.1%
100,000 BB/NR Vedanta Resources Jersey, Ltd., 5.5%,
7/13/16 $ 99,250
-----------------
Total Materials $ 1,664,375
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
38 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
--------------------------------------------------------------------------------------------------------------------------
MEDIA -- 0.4%
Movies & Entertainment -- 0.4%
659,000 B-/NR Live Nation Entertainment, Inc., 2.875%,
7/15/27 $ 651,586
-----------------
Total Media $ 651,586
--------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.2%
Semiconductors -- 0.2%
150,000 NR/NR JA Solar Holdings Co., Ltd., 4.5%, 5/15/13 $ 141,656
250,000 NR/NR ReneSola, Ltd., 4.125%, 3/15/18 (144A) 123,125
271,000 NR/NR Suntech Power Holdings Co., Ltd., 3.0%,
3/15/13 127,370
-----------------
Total Semiconductors &
Semiconductor Equipment $ 392,151
--------------------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS & NOTES
(Cost $3,613,850) $ 4,430,253
--------------------------------------------------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATIONS --
1.7% of Net Assets
Brazil -- 0.7%
BRL 1,750,000 BBB/Baa2 Brazilian Government International Bond,
10.25%, 1/10/28 $ 1,116,379
--------------------------------------------------------------------------------------------------------------------------
Mexico -- 0.4%
MXN 8,870,000 A-/Baa1 Mexican Bonos, 7.75%, 11/13/42 $ 773,398
--------------------------------------------------------------------------------------------------------------------------
Ukraine -- 0.6%
900,000 B+/B2 Ukraine Government International Bond,
6.75%, 11/14/17 (144A) $ 971,396
--------------------------------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATIONS
(Cost $2,538,991) $ 2,861,173
--------------------------------------------------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.5% of Net Assets
AUTOMOBILES & COMPONENTS -- 0.1%
Auto Parts & Equipment -- 0.1%
5,787 Lear Corp. $ 246,526
-----------------
Total Automobiles & Components $ 246,526
--------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.0%+
Other Diversified Financial Services -- 0.0%+
731(k) BTA Bank JSC (G.D.R.) $ 1,139
-----------------
Total Diversified Financials $ 1,139
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 39
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------------------------------------
ENERGY -- 0.1%
Oil & Gas Drilling -- 0.0%
1,109(k) Rowan Companies, Plc $ 35,166
--------------------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.1%
NOK 19,571(k) Sevan Marine ASA $ 51,497
-----------------
Total Energy $ 86,663
--------------------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.1%
Diversified Metals & Mining -- 0.1%
371,096(c)(h)(k) Blaze Recycling and Metals LLC Class A Units $ 166,993
--------------------------------------------------------------------------------------------------------------------------
Forest Products -- 0.0%
CAD 13,963(k) Ainsworth Lumber Co., Ltd. $ 37,695
-----------------
Total Materials $ 204,688
--------------------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.0%
Systems Software -- 0.0%
2,114(h)(k) Perseus Holding Corp. $ 5,285
-----------------
Total Software & Services $ 5,285
--------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.2%
Marine -- 0.2%
247,509(h)(k) Horizon Lines, Inc. $ 326,712
-----------------
Total Transportation $ 326,712
--------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,258,134) $ 871,013
--------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK --
0.3% of Net Assets
DIVERSIFIED FINANCIALS -- 0.3%
Other Diversified Financial Services -- 0.3%
470(e) Bank of America Corp., 7.25% $ 523,923
-----------------
Total Diversified Financials $ 523,923
--------------------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $382,900) $ 523,923
--------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 0.7% of
Net Assets
DIVERSIFIED FINANCIALS -- 0.7%
Other Diversified Financial Services -- 0.7%
40,675(b) GMAC Capital Trust I, 8.125% $ 1,063,245
-----------------
Total Diversified Financials $ 1,063,245
--------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
40 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
--------------------------------------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.0%
Data Processing & Outsourced Services -- 0.0%
1,110(h)(k) Perseus Holding Corp., 14.0% $ 59,940
-----------------
Total Software & Services $ 59,940
--------------------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $933,996) $ 1,123,185
--------------------------------------------------------------------------------------------------------------------------
Principal
Amount
--------------------------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS --
1.4% -- of Net Assets
TIME DEPOSITS: 0.7%
EUR 117,599 Citibank, London, -0.019%, 11/1/12 $ 152,544
NOK 6,243,085 BBHGrandCayman, 0.35%, 11/1/12 1,094,510
-----------------
Total Time Deposits $ 1,247,054
--------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT: 0.7%
1,135,000 JPMorgan Chase Bank, .3%, dated
11/1/12, repurchase price of $1,135,000
plus accrued interest on 11/1/12
collateralized by $9,792,221 Federal
National Mortgage Association,
2.5% -- 4.0%, 5/1/22 -- 7/1/30 $ 1,135,000
--------------------------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $2,382,054) $ 2,382,054
--------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 140.5%
(Cost $233,354,238) (l) $ 233,609,498
--------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (40.5)% $ (67,314,982)
--------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS -- 100.0% $ 166,294,516
==========================================================================================================================
+ Amount rounds to less than 0.1%.
NR Security not rated by S&P or Moody's.
WR Rating withdrawn by either S&P or Moody's.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
October 31, 2012, the value of these securities amounted to
$114,678,167, or 69.0% of total net assets applicable to common
shareowners.
* Senior secured floating rate loan interests in which the Trust invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending plus a premium. These base lending rates are
generally (i) the lending rate offered by one or more major European
banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime
rate offered by one or more major United States banks, (iii) the
certificate of deposit or (iv) other base lending rates used by
commercial lenders. The interest rate shown is the rate accruing at
October 31, 2012.
(a) Floating rate note. The rate shown is the coupon rate at October 31,
2012.
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 41
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
(b) The interest rate is subject to change periodically. The interest is
shown is the rate at October 31, 2012.
(c) Security is valued using fair value methods (other than prices supplied
by independent pricing services). (See Note 1A).
(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 October
31, 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 $3,941,784. The aggregate fair value of
$1,579,623 represents 0.9% of total net assets applicable to common
shareowners.
(i) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(j) Security is priced as a unit.
(k) Non-income producing.
(l) At October 31, 2012, the net unrealized gain on investments based on
cost for federal tax purposes of $235,017,125 was as follows:
Aggregate gross unrealized gain for all investments in which there
is an excess of value over tax cost $ 12,656,314
Aggregate gross unrealized loss for all investments in which there
is an excess of tax cost over value (14,063,941)
-------------
Net unrealized loss $ (1,407,627)
=============
For financial reporting purposes net unrealized loss on investments was $812,782
and cost of investments aggregated $234,422,280.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended October 31, 2012 aggregated $37,758,236 and $23,178,211,
respectively.
Glossary of Terms:
(G.D.R.) Global Depositary Receipt
Principal amounts are denominated in U.S. dollars unless otherwise noted.
BRL -- Brazilian Real
EUR -- Euro
GBP -- Great British Pound
NOK -- Norwegian Krone
MXN -- Mexican Peso
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) as
level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
42 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
The following is a summary of the inputs used as of October 31, 2012, in valuing
the Trust's investments:
------------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------------------------
Asset backed securities $ -- $ 2,007,287 -- $ 2,007,287
Collateralized mortgage obligations -- 1,119,561 -- 1,119,561
Commercial mortgage-backed
securities -- 789,175 -- 789,175
Senior secured floating rate
loan interests -- 46,252,010 -- 46,252,010
Corporate bonds & notes
Auto parts & equipment -- 2,093,845 -- 2,093,845
All other -- 169,156,019 -- 169,156,019
Convertible bonds & notes -- 4,430,253 -- 4,430,253
Sovereign debt obligations -- 2,861,173 -- 2,861,173
Common stocks
Diversified metals & mining -- -- $166,993 166,993
Systems software -- 5,285 -- 5,285
All other 698,735 -- -- 698,735
Convertible preferred stock: 523,923 -- -- 523,923
Preferred stocks
Data processing & outsourced services -- 59,940 -- 59,940
All other 1,063,245 -- -- 1,063,245
Temporary cash investments
Time deposits -- 1,247,054 -- 1,247,054
Repurchase agreement -- 1,135,000 -- 1,135,000
------------------------------------------------------------------------------------------------------------
Total Investments in
Securities -- Assets $ 2,285,903 $231,156,602 $166,993 $233,609,498
============================================================================================================
Other Financial Instruments -- (143,927) -- (143,927)
------------------------------------------------------------------------------------------------------------
* Other Financial Instruments include the unrealized depreciation on forward
foreign currency contracts and unrealized the depreciation on unfunded loan
commitments.
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 43
Schedule of Investments | 10/31/12 (Consolidated) (unaudited) (continued)
The following is a reconciliation of assets valued using significant
unobservable inputs (level 3):
---------------------------------------------------------------------------------------------------------------------------------
Change in
Balance Realized Unrealized Accrued Transfers Transfers Balance
as of gain appreciation discounts/ in to out of as of
4/30/12 (loss)(1) (depreciation)(1) Purchases Sales premiums Level 3* Level 3* 10/31/12
---------------------------------------------------------------------------------------------------------------------------------
Convertible bonds &
notes
Marine $296,699 $ (328,430) $432,867 $21,875 $(429,276) $6,265 $ -- $ -- $ --
Common stocks
Diversified Metals
& Mining 244,923 -- (77,930) -- -- -- -- -- 166,993
---------------------------------------------------------------------------------------------------------------------------------
Total $541,622 $ (328,430) $354,937 $21,875 $(429,276) $6,265 $ -- $ -- $ 166,993
=================================================================================================================================
* Transfers are calculated on the beginning of period values.
(1) Realized gain (loss) on these securities is included in the realized gain
(loss) from investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized gain (loss) from investments in the Statement of
Operations.
The net change in unrealized appreciation of Level 3 investments still held at
year end is $(77,930)
During the six months ended October 31, 2012, there were no transfers between
Levels 1, 2, and 3.
The accompanying notes are an integral part of these financial statements.
44 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
Statement of Assets and Liabilities | 10/31/12 (Consolidated) (unaudited)
ASSETS:
Investments in securities, at value (cost $233,354,238) $233,609,498
Foreign currencies, at value 27,240
Receivables --
Interest receivable 4,364,271
Appreciation on unfunded loan commitment - net 7,730
Reinvestment of distributions 41,124
Prepaid expenses 6,837
Other assets 242,200
-------------------------------------------------------------------------------------------------------------
Total assets $238,298,900
-------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Notes payable $ 69,000,000
Investment securities purchased 2,013,069
Interest expense payable 57,745
Administration - fee payable 33,446
Forward foreign currency portfolio hedge contracts - net 143,927
Due to custodian (cost $(457,748)) 451,302
Due to affiliates 180,600
Accrued expenses 124,995
-------------------------------------------------------------------------------------------------------------
Total liabilities $ 72,004,384
-------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $193,534,976
Undistributed net investment income 1,228,038
Accumulated net realized loss on investments and foreign currency transactions (28,622,711)
Net unrealized gain on investments and unfunded loan commitment 262,630
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (108,417)
-------------------------------------------------------------------------------------------------------------
Net assets applicable to shareowners $166,294,516
=============================================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $166,294,516/8,277,477 common shares $ 20.09
=============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 45
Statement of Operations (Consolidated) (unaudited)
For the six months ended 10/31/12
INVESTMENT INCOME:
Interest $10,751,235
Dividends (net of foreign taxes withheld $33) 60,352
Facility and other fees 143,598
-------------------------------------------------------------------------------------------------------------
Total Investment income $ 10,955,185
-------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 985,435
Administrative reimbursements 55,634
Transfer agent fees and expenses 8,632
Shareholder communications expense 5,543
Custodian fees 13,807
Registration fees 8,828
Professional fees 46,512
Printing expenses 14,569
Trustees' fees 3,822
Pricing fees 15,298
Miscellaneous 32,914
-------------------------------------------------------------------------------------------------------------
Net operating expenses $ 1,190,994
-------------------------------------------------------------------------------------------------------------
Interest expense $ 400,530
-------------------------------------------------------------------------------------------------------------
Net operating expenses and interest expense $ 1,591,524
-------------------------------------------------------------------------------------------------------------
Net investment income $ 9,363,661
-------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (577,391)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 213,546 $ (363,845)
-------------------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments and unfunded loan commitment $ 3,834,047
Unfunded loan commitments 9,021
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (73,954) $ 3,769,114
-------------------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $ 3,405,269
-------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 12,768,930
=============================================================================================================
The accompanying notes are an integral part of these financial statements.
46 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
Statements of Changes in Net Assets (Consolidated)
-------------------------------------------------------------------------------------------------------------
Six Months
Ended
10/31/12 Year Ended
(unaudited) 4/30/12
-------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 9,363,661 $ 17,329,304
Net realized loss on investments and foreign currency transactions (363,845) (3,968,113)
Change in net unrealized gain (loss) on investments
and foreign currency transactions 3,769,114 (9,604,483)
-------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 12,768,930 $ 3,756,708
-------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income ($0.96 and $1.96 per share, respectively) $ (7,939,051) $ (16,161,281)
-------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (7,939,051) $ (16,161,281)
-------------------------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Conversion $ (366) $ --
Reinvestment of distributions $ 319,448 $ 668,357
-------------------------------------------------------------------------------------------------------------
Net increase in net assets from Trust share transactions $ 319,082 $ 668,357
-------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 5,148,961 $ (11,736,216)
NET ASSETS:
Beginning of period 161,145,555 172,881,771
-------------------------------------------------------------------------------------------------------------
End of period $166,294,516 $ 161,145,555
-------------------------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net investment income $ 1,228,038 $ (196,572)
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 47
Statement of Cash Flows (Consolidated) (unaudited)
For the six months ended 10/31/12
Cash Flows From Operating Activities
Net increase in net assets resulting from operations $ 12,768,930
-------------------------------------------------------------------------------------------------------------
Adjustments to reconcile the net increase in net assets resulting from
operations to net cash provided by operating activities
Purchase of investments securities $ (37,758,236)
Proceeds from disposition of investment securities 23,542,056
Decrease in receivable for investments sold 1,362,793
Increase in Interest and foreign tax reclaim receivable (337,104)
Decrease in prepaid expenses 6,528
Increase in other assets (242,200)
Decrease in accrued interest payable 57,745
Decrease in payable for investments purchased 261,281
Increase Due to affiliates and administration fees (3,441)
Increase in accrued expenses (7,719)
Increase in other liabilities (1,363,636)
Change in unrealized appreciation of investments 3,843,068
Change in unrealized depreciation of foreign currency contracts and
other denominated foreign currencies (73,954)
Net realized loss from investments (577,391)
Net realized gain of foreign currency contracts and other foreign denominated currencies 213,546
-------------------------------------------------------------------------------------------------------------
Net cash and foreign currency provided by operating activities $ 1,692,266
-------------------------------------------------------------------------------------------------------------
Cash flows Used Financing Activities:
Conversion $ (366)
-------------------------------------------------------------------------------------------------------------
Reinvestment of distributions $ 319,448
-------------------------------------------------------------------------------------------------------------
Cash dividends paid to common shareholders $ (7,939,051)
-------------------------------------------------------------------------------------------------------------
Net cash flow used in financing activities $ (7,619,969)
-------------------------------------------------------------------------------------------------------------
Cash and Foreign Currency
Beginning of the period $ 5,503,641
-------------------------------------------------------------------------------------------------------------
End of period $ (424,062)
=============================================================================================================
The accompanying notes are an integral part of these financial statements.
48 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------------
Six Months For the
Ended Year Year Period from
10/31/12 Ended Ended Year Year 5/30/07(b)
(Unaudited) 4/30/12 4/30/11 Ended Ended to
(Consolidated) (Consolidated) (Consolidated) 4/30/10 4/30/09 4/30/08
--------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 19.51 $ 21.01 $ 20.17 $ 13.94 $ 22.02 $ 23.88(c)
--------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment
operations:(a)
Net investment income $ 1.13 $ 2.10 $ 2.03 $ 1.76 $ 2.10 $ 1.77
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions 0.41 (1.64) 0.73 6.48 (7.67) (1.80)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ 1.54 $ 0.46 $ 2.76 $ 8.24 $ (5.57) $ (0.03)
--------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income (0.96) (1.96) (1.92) (1.69) (2.47) (1.78)
Tax return of capital -- -- -- (0.32) (0.04) --
Capital charge with respect to issuance
of shares -- -- -- -- -- (0.05)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.58 $ (1.50) $ 0.84 $ 6.23 $ (8.08) $ (1.86)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period(d) $ 20.09 $ 19.51 $ 21.01 $ 20.17 $ 13.94 $ 22.02
--------------------------------------------------------------------------------------------------------------------------------
Market value, end of period(d) $ 20.49 $ 20.13 $ 21.95 $ 20.46 $ 13.23 $ 20.47
================================================================================================================================
Total return at market value(e) 6.84% 1.35% 17.95% 73.25% (23.11)% (10.67)%
Ratios to average net assets
Net operating expenses 1.47%(f) 1.48% 1.62% 1.39% 1.38% 0.99%(f)
Interest expense 0.49%(f) 0.56% 0.58% 0.83% 1.14% 0.33%(f)
Net expenses 1.96%(f) 2.04% 2.20% 2.22% 2.52% 1.32%(f)
Net investment income 11.54%(f) 10.75% 10.02% 9.84% 12.27% 8.48%(f)
Portfolio turnover 10% 24% 30% 24% 25% 21%(f)
Net assets, end of period (in thousands) $166,295 $161,146 $172,881 $165,281 $113,812 $179,515
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 49
Financial Highlights (continued)
--------------------------------------------------------------------------------------------------------------------------------
Six Months For the
Ended Year Year Period from
10/31/12 Ended Ended Year Year 5/30/07(b)
(Unaudited) 4/30/12 4/30/11 Ended Ended to
(Consolidated) (Consolidated) (Consolidated) 4/30/10 4/30/09 4/30/08
--------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets before
waivers and reimbursements of expenses
Net operating expenses 1.47%(f) 1.48% 1.64% 1.61% 1.68% 1.29(f)
Interest expense 0.49%(f) 0.56% 0.58% 0.83% 1.14% 0.33(f)
Net expenses 1.96%(f) 2.04% 2.22% 2.44% 2.82% 1.62(f)
Net investment income 11.54%(f) 10.75% 10.00% 9.62% 11.97% 8.18(f)
================================================================================================================================
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Trust shares were first publicly offered on May 24, 2007 and commenced
operations on May 30, 2007.
(c) Net asset value immediately after the closing of the first public offering
was $23.83.
(d) Net asset value and market value are published in Barron's on Saturday, The
Wall Street Journal on Monday and The New York Times on Monday and
Saturday.
(e) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
market value on the last day of the periods reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Past
performance is not a guarantee of future results.
(f) Annualized.
The accompanying notes are an integral part of these financial statements.
50 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
Notes to Financial Statements | 10/31/12 (Consolidated) (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Diversified High Income Trust (the Trust) was organized as a Delaware
statutory trust on January 30, 2007. Prior to commencing operations on May 30,
2007, the Trust had no operations other than matters relating to its
organization and registration as a diversified, closed-end management investment
company under the Investment Company Act of 1940, as amended. The investment
objective of the Trust is to provide a high level of current income and the
Trust may, as a secondary objective, also seek capital appreciation to the
extent that it is consistent with its investment objective.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the reporting
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. Senior floating rate loan interests (senior loans) for which
no reliable price quotes are available will be valued by Loan Pricing
Corporation through the use of pricing matrices to determine valuations.
Fixed income securities with remaining maturities of more than sixty days
are valued at prices supplied by independent pricing services, which
consider such factors as market prices, market events, quotations from one
or more brokers, Treasury spreads, yields, maturities and ratings.
Valuations may be supplemented by dealers and other sources, as required.
Equity securities that have traded on an exchange are valued at the last
sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices. Short-term fixed income securities
with remaining maturities of sixty days or less generally are valued at
amortized cost. Money market mutual funds are valued at net asset value.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 51
Trading in foreign securities is substantially completed each day at
various times prior to the close of the NYSE. The values of such securities
used in computing the net asset value of the Trust's shares are determined
as of such times.
Securities or loans for which independent pricing services are unable to
supply prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued using fair value
methods pursuant to procedures adopted by the Board of Trustees. The Trust
may use fair value methods if it is determined that a significant event has
occurred after the close of the exchange or market on which the security
trades and prior to the determination of the Trust's net asset value.
Examples of a significant event might include political or economic news,
corporate restructurings, natural disasters, terrorist activity or trading
halts. Thus, the valuation of the Trust's securities may differ from
exchange prices.
At October 31, 2012, one security was valued using fair value methods (in
addition to securities valued using prices supplied by independent pricing
services) representing 0.1% of net assets. Inputs used when applying fair
value methods to value a security may include credit ratings, the financial
condition of the company, current market conditions and comparable
securities.
Discounts and premiums on debt securities are accreted or amortized,
respectively, daily, into interest income on an effective yield to maturity
basis with a corresponding increase or decrease in the cost basis of the
security. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
Interest income, including interest on income bearing cash accounts, is
recorded on an accrual basis, net of unrecoverable foreign taxes withheld
at the applicable country rates.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Trust becomes aware of the ex-dividend
data in the exercise of reasonable diligence.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
52 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
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.
The tax character of current year distributions payable to shareowners will
be determined at the end of the current taxable year. The tax character of
distribution paid during the year ended April 30, 2012 was as follows:
--------------------------------------------------------------------------------
2012
--------------------------------------------------------------------------------
Distribution paid from:
Ordinary income $16,161,281
--------------------------------------------------------------------------------
Total $16,161,281
================================================================================
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 53
The following shows the components of distributable earnings (losses) on a
federal income tax basis at April 30, 2012:
--------------------------------------------------------------------------------
2012
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,342,759
Capital loss carryforward (25,908,321)
Post-October loss deferred (2,052,913)
Dividends payable (1,321,798)
Unrealized depreciation (4,130,066)
--------------------------------------------------------------------------------
Total $(32,070,339)
================================================================================
The difference between book-basis and tax-basis unrealized appreciation is
primarily attributable to the tax deferral of losses on wash sales, the
realization for tax purposes of unrealized gains on investments in passive
foreign investment companies, the book/tax differences in the accrual of
income on securities in default, the difference between book and tax
amortization methods for premiums and discounts on fixed income securities
and other temporary book/tax differences.
E. Risks
Information regarding the Trust's principal risks is contained in the
Trust's original offering prospectus, with additional information included
in the Trust's shareowner reports issued from time to time. Please refer to
those documents when considering the Trust's principal risks. At times, the
Trust's investments may represent industries or industry sectors that are
interrelated or have common risks, making the Trust more susceptible to any
economic, political, or regulatory developments or other risks affecting
those industries and sectors.
The Trust invests in below investment grade (high yield) debt securities,
floating rate loans and event-linked bonds sometimes referred to as
"catastrophe" bonds or "insurance-linked" bonds. The Trust may invest in
securities and other obligations of any credit quality, including those
that are rated below investment grade, or are unrated but are determined by
the investment adviser to be of equivalent credit quality. Below investment
grade securities are commonly referred to as "junk bonds" and are
considered speculative with respect to the issuer's capacity to pay
interest and repay principal. These securities involve greater risk of
loss, are subject to greater price volatility, and are less liquid,
especially during periods of economic uncertainty or change, than higher
rated debt securities. The Trust may invest in securities of issuers that
are in default or that are in bankruptcy.
54 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
The Trust's investments in certain foreign markets or countries with
limited developing markets may subject the Trust to a greater degree of
risk than would investments in a developed market. These risks include
disruptive political or economic conditions and the possible imposition of
adverse governmental laws or currency exchange restrictions.
F. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value
of the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Trust's custodian or a subcustodian of the
Trust. The Trust's investment adviser, Pioneer Investment Management, Inc.
(PIM), is responsible for determining that the value of the collateral
remains at least equal to the repurchase price.
G. 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 Diversified High Income Trust | Semiannual Report | 10/31/12 55
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 0.85% of the
Trust's average daily managed assets. "Managed assets" means (a) the total
assets of the Trust, including any form of investment leverage, minus (b) all
accrued liabilities incurred in the normal course of operations, which shall not
include any liabilities or obligations attributable to investment leverage
obtained through (i) indebtedness of any type (including, without limitation,
borrowing through a credit facility of the issuance of debt securities), (ii)
the issuance of preferred stock or other similar preference securities, and/or
(iii) any other means. For the six months ended October 31, 2012, the net
management fee was 0.85% of the Trust's average daily managed assets, which was
equivalent to 0.60% of the Trust's average daily net assets.
In addition, under PIM's management and administration agreements, certain other
services and costs are paid by PIM and reimbursed by the Trust. At October 31,
2012 $214,046 was payable to PIM related to
56 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
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 May 1, 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 SSB 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 had 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 at negotiated rates.
In addition, the Trust reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareowner communications activities such as proxy and
statement mailings and outgoing phone calls.
4. Basis for Consolidation for the Pioneer Diversified High Income Trust
The consolidated financial statements of the Trust include the accounts of Blaze
Holding DHINCT, Inc. ("the Subsidiary"). All intercompany accounts and
transactions have been eliminated in consolidation. The Subsidiary, a Delaware
corporation, was incorporated on February 10, 2011 and is wholly-owned and
controlled by the Trust. It is intended that the Trust will remain the sole
shareholder of, and will continue to control, the Subsidiary. The Subsidiary
acts as an investment vehicle for the Trust's interest in Blaze Recycling and
Metals LLC, Class A Units. As of October 31, 2012, the Subsidiary represented
approximately $166,993 or approximately 0.1% of the net assets of the Trust.
5. Expense Offset Arrangement
The Trust has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Trust's custodian expenses. For the six months ended October 31, 2012, the
Trust expenses were not reduced under such arrangement.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 57
6. Forward Foreign Currency Contracts
During the six months ended October 31, 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 October 31, 2012 was
$4,525,625. At October 31, 2012, the Trust had no outstanding settlement
contracts.
Open portfolio hedges at October 31, 2012, were as follows:
--------------------------------------------------------------------------------
Net
Contracts In Net
to Receive/ Exchange Settlement Unrealized
Currency (Deliver) For US$ Date US$ Value Loss
--------------------------------------------------------------------------------
EUR (2,556,000) $(3,187,690) 03/28/13 $(3,318,265) $(130,576)
GBP (404,000) (638,192) 12/14/12 (651,544) (13,351)
--------------------------------------------------------------------------------
Total $(143,927)
================================================================================
7. Loan Agreement
Effective February 3, 2012, the Trust extended the maturity of its existing
Revolving Credit Facility (the Credit Agreement) with the Bank of Nova Scotia;
the size of the Credit Agreement remains at $75 million.
At October 31, 2012, the Trust had a borrowing outstanding under the Credit
Agreement totaling $69,000,000. The interest rate charged at October 31, 2012
was 1.12%. During the six months ended October 31, 2012, the average daily
balance was $69,000,000 at a weighted average interest rate of 1.14%. With
respect to the loan, interest expense of $400,530 is included in the Statement
of Operations.
The Trust is required to maintain 300% asset coverage with respect to amounts
outstanding under the Credit Agreement. Asset coverage is calculated by
subtracting the Trust's total liabilities, not including any bank loans and
senior securities, from the Trust's total assets and dividing such amount by the
principal amount of the borrowings outstanding. As of the date indicated below,
the Trust's debt outstanding and asset coverage were as follows:
--------------------------------------------------------------------------------
Total Amount Asset coverage
of Debt Per $1,000 of
Date Outstanding Indebtedness
--------------------------------------------------------------------------------
October 31, 2012 $69,000,000 $3,410
================================================================================
8. Unfunded Loan Commitments
As of October 31, 2012, the Trust had no unfunded loan commitments.
58 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
However, the Trust had the following bridge loan commitments outstanding as of
October 31, 2012
--------------------------------------------------------------------------------
Unrealized
Borrower Par Cost Value Gain (Loss)
--------------------------------------------------------------------------------
Cequel Communications LLC $650,000 $ 650,000 $ 653,250 $3,250
Hamilton Sundstrand Corp., Term Loan 500,000 500,000 502,500 2,500
DuPont Peformance Coating 900,000 1,165,095 1,166,715 1,620
--------------------------------------------------------------------------------
Total $7,370
================================================================================
9. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the six months ended
October 31, 2012 and the year ended April 30, 2011 were as follows:
--------------------------------------------------------------------------------
10/31/2012 4/30/12
--------------------------------------------------------------------------------
Shares outstanding at beginning of year 8,261,236 8,227,194
Reinvestment of distributions 16,241 34,042
--------------------------------------------------------------------------------
Shares outstanding at end of year 8,277,477 8,261,236
================================================================================
10. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of October 31, 2012 were as follows:
------------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as
Hedging Instruments Asset Derivatives 2012 Liabilities Derivatives 2012
Under Accounting ---------------------- -----------------------------
Standards Codification Balance Sheet Balance Sheet
(ASC) 815 Location Value Location Value
------------------------------------------------------------------------------------------------
Forward Exchange Contracts Receivables $ -- Payables $ (143,927)
------------------------------------------------------------------------------------------------
Total $ -- $ (143,927)
------------------------------------------------------------------------------------------------
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 59
The effect of derivative instruments on the Statement of Operations for the six
months ended October 31, 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 Exchange Contracts Net realized gain on forward $213,546
foreign currency contracts and
other assets and liabilities
denominated in foreign
currencies
------------------------------------------------------------------------------------------------
Forward Exchange Contracts Change in net unrealized gain $(73,954)
(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 November 5, 2012 a dividend from
undistributed net investment income of $0.16 per common share payable November
30, 2012, to shareowners of record on November 16, 2012.
Results of Shareholder Meeting (unaudited)
At the annual meeting of shareowners held on September 18, 2012, shareowners of
Pioneer Diversified High Income Trust were asked to consider the proposal
described below. A report of the total votes cast by the Trust's shareholders
follows:
Proposal 1 -- To elect Class II Trustees.
------------------------------------------------------------------------------------------------
Nominee For Withheld
------------------------------------------------------------------------------------------------
Thomas J. Perna 4,873,236 174,174
Marguerite A. Piret 4,850,955 196,455
60 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
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.
Legal Counsel
Bingham McCutchen LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc
Shareowner Services and Transfer Agent
American Stock Transfer & Trust Company
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at http://www.sec.gov.
* Chief Executive Officer of the Trust
** Chief Financial and Accounting Officer of the Trust
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 61
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62 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
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Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 63
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Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12 67
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68 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/12
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
Invesments(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 21398-05-1212
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 Diversified High Income Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date December 28, 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 December 28, 2012
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 28, 2012
* Print the name and title of each signing officer under his or her signature.