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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, 2013 through October 31, 2013
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Diversified
High Income Trust
--------------------------------------------------------------------------------
Semiannual Report | October 31, 2013
--------------------------------------------------------------------------------
Ticker Symbol: HNW
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Schedule of Investments 13
Financial Statements 43
Financial Highlights 47
Notes to Financial Statements 49
Trustees, Officers and Service Providers 60
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 1
President's Letter
Dear Shareowner,
When we look at the U.S. economy heading into the final quarter of 2013, we
continue to see slow, but steady, growth. Employment has also been rising
steadily, but only modestly. Consumer incomes, savings, wealth, and
debt-servicing capacity have been solid buttresses for the recovering housing
and auto industries. Industrial activity is growing only modestly, but current
corporate profits are generally solid and balance sheets appear able to support
needed capital spending and dividend* payouts. The scaled-back "fiscal cliff"
tax increases and spending cuts have meaningfully cut the budget deficit without
driving the economy into recession. In addition, we feel that continuing slack
in labor markets and capacity utilization offers the potential for continuing
growth without bottlenecks and rising inflation.
After observing the strengthening economic trends, the Federal Reserve (the Fed)
hinted that it might begin scaling back its "QE" quantitative easing program
later in 2013 and could terminate its bond purchases altogether sometime in
2014. In September, however, the Fed surprised many market participants by
deciding not to start scaling back QE yet. The Fed has also said that short-term
interest rates are likely to remain near zero for some time to come, given that
inflation remains subdued and unemployment remains too high.
As September ended, Congress had not yet passed a continuing resolution to
prevent a government shutdown, nor had it raised the debt ceiling, and a quick
resolution to the impasse appeared unlikely. The U.S. government's partial
shutdown in October rattled the markets to a degree, but did not immediately
have a significant negative impact on the economy or capital markets.
There are certainly risks and uncertainties that continue to plague the global
economy as we head into the final months of the year. The European economy
remains weak, though it is beginning to show signs of stabilization, and a
number of countries in the emerging markets have experienced difficulties.
Still, a potential ending of the European recession, continuing economic
improvement in Japan in response to the new government's easing policies, and a
"soft landing" of 7% growth in China could very well result in an improving
global outlook over the remainder of 2013 and in 2014.
There are also geopolitical worries abroad and the aforementioned political
fights at home, and while most of the widely recognized risks we've outlined may
already be "priced into" the market, we believe investors should continue to
expect market volatility.
* Dividends are not guaranteed.
2 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
The Fed's aggressive monetary policies and fears about economic growth had
helped drive long-term Treasury yields to unsustainably low levels; the return
to more normal levels has resulted in disappointing returns for bond investors
during the first nine months of 2013, but the stock market has delivered
double-digit returns to equity investors who were willing to brave the "wall of
worry".
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. Our advice, as
always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs, keeping in mind that there is no single best strategy that
works for every investor.
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in global equity and bond markets, using in-depth research in an effort to
identify undervalued individual securities, and using thoughtful risk management
to construct portfolios which seek to balance potential risks and reward in an
ever-changing world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 3
Portfolio Management Discussion | 10/31/13
The environment for investing in fixed-income securities generally, including
the credit-sensitive sectors, became more unsettled during the six-month period
ended October 31, 2013, although signs of stabilization appeared late in the
period. In the following interview, Andrew Feltus, Charles Melchreit and
Jonathan Sharkey discuss the factors that affected the performance of Pioneer
Diversified High Income Trust during the six-month period. Mr. Feltus, a senior
vice president and portfolio manager at Pioneer, Mr. Melchreit, a senior vice
president and portfolio manager at Pioneer, and Mr. Sharkey, a senior vice
president and portfolio manager at Pioneer, all are members of Pioneer's
Fixed-Income Team and are responsible for the day-to-day management of the
Trust.
Q How did the Trust perform during the six-month period ended October 31,
2013?
A Pioneer Diversified High Income Trust returned 2.91% at net asset value and
2.91% at market price during the six-month period ended October 31, 2013.
During the same six-month period, the Trust's custom benchmark returned
1.48%. The custom benchmark is based on equal weightings of the Bank of
America Merrill Lynch (BofA ML) Global High Yield and Emerging Markets Plus
(GHY and EMP) Index, which returned 1.07% during the six-month period, and
the Credit Suisse Leveraged Loan Index, which returned 1.89%. Unlike the
Trust, the custom benchmark does not use leverage. While the use of leverage
increases investment opportunity, it also increases investment risk. During
the same six-month period, the average return (at market price) of the 36
closed-end funds in Lipper's High Current Yield Closed End Funds category
(which may or may not be leveraged) was 2.39%.
The shares of the Trust were selling at a 5.51% premium to net asset value
at the end of the period on October 31, 2013.
On October 31, 2013, the Trust's standard 30-day SEC yield was 8.44*.
* The 30-day SEC yield is a standardized formula that is based on the
hypothetical annualized earning power (investment income only) of the
Trust's portfolio securities during the period indicated.
4 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
Q How would you describe the investment environment for fixed-income investors
during the six-month period ended October 31, 2013?
A Although the period started amid general optimism about prospects for
continued improving conditions in both the domestic and global economies,
market conditions became more challenging during the period amid uncertainty
over how long the easy money policies of the U.S. Federal Reserve System
(the Fed) would continue, and whether political bickering in Washington
might undermine the economic recovery.
Interest rates rose during the summer of 2013, although short-term rates
remained low by historical standards. The rising interest-rate environment
negatively affected most fixed-income investments, with U.S. Treasuries
significantly underperforming. Investment-grade corporate bonds posted
negative returns during the six-month period, but U.S. high-yield corporate
bonds were able to deliver modestly positive returns. Although most fixed-
income securities produced disappointing results, floating-rate securities
such as bank loans and event-linked bonds tended to hold up better and ended
the period in positive territory.
Elsewhere, emerging markets investments and currencies were especially
affected by market conditions, as investors saw those securities as
particularly vulnerable to rising interest rates. On currency markets, the
U.S. dollar (USD) remained strong, while the euro rose against most other
currencies, including the USD. The Japanese yen depreciated during the
six-month period.
Near the end of the six-month period, a series of perceived positive
developments affected sentiment in the bond market, and Treasuries even
staged a modest improvement in performance. The first development was the
growing expectation that U.S. Federal Reserve System (Fed) Vice Chairman
Janet Yellen would be nominated to succeed Ben Bernanke as chairman--an
expectation that was later confirmed by President Obama's official
nomination of Ms. Yellen to succeed Mr. Bernanke. Ms. Yellen is not viewed
by most as someone who would move aggressively to end the Fed's
accommodative policies. Second, the Fed met in mid-September and announced
that it would not yet begin tapering its quantitative easing program--to the
relief of the bond market. Finally, the debates in Washington over U.S.
fiscal policy and raising the government's debt ceiling rattled the capital
markets in general, but also led to a brief comeback in the values of
Treasury securities, which were seen as the safest asset class during a time
of uncertainty.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 5
With these factors in the background, the high-yield bond market stabilized
and then rose briskly during the final month of the period. In October
alone, the BofA ML GHY and EMP Index returned 2.51%.
Despite the volatility in the fixed-income market, the economic fundamentals
in the United States continued to strengthen, with non-farm payrolls adding
an average of 160,000 new jobs per month over the six-month period.
Corporate profits remained strong, while companies continued to generate new
cash flows. In fact, stock prices maintained their upward climb, with the
Standard & Poor's 500 Index returning 11.15% (non annualized) for the six
months ended October 31, 2013.
Q How did you manage the Trust's portfolio in that environment during the
six-month period ended October 31, 2013, and how did your investment
decisions affect the Trust's performance?
A Our focus on the credit sectors, especially domestic high-yield corporate
bonds, helped the Trust's performance considerably during the period. The
emphasis on credit in the Trust's portfolio also included significant
exposures to floating-rate debt, including bank loans and event-linked bonds
issued by property and casualty insurers. Because the interest rates on such
securities increase as market interest rates rise, they tend to be more
resilient during periods when rates rise and bond prices decline. At the end
of the six-month period on October 31, 2013, more than one-third of the
Trust's total investment portfolio was invested in floating-rate securities
and U.S. high-yield corporate debt accounted for more than 32% of the
Trust's total investment portfolio.
Positive security selection results also made a significant contribution to
the Trust's performance during the six-month period. Among the better
performers in the Trust's portfolio were bonds that bounced back after the
issuing companies of the securities underwent corporate restructurings.
Those holdings included the bonds of CEVA, a logistics and shipping company
significantly involved in shipping to Europe, and of KB Pharmaceuticals, a
specialty pharmaceuticals firm. While emerging markets corporate debt in
general produced poor results during the period, one notable exception was
the portfolio's investment in bonds of Transporte Energia, an energy company
based in Argentina.
Event-linked bonds also performed well during the period, helped by a mild
storm season that resulted in relatively few weather-related property
insurance claims. Holdings of event-linked bonds in the Trust's portfolio
that fared well included bonds issued by Altair Reinsurance.
6 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
Some of the holdings in the Trust's portfolio did perform poorly during the
period, however, including bonds issued by Codere, a Spanish casino company
with significant operations in Latin America, and by mining company Mirabela
Nickel. A floating-rate loan issued to Preferred Proppants, a company
supplying materials for natural gas drilling operations, also detracted from
results.
Q How did the level of leverage in the Trust change during the six-month
period ended October 31, 2013?
A At the end of the six-month period, 29.0% of the Trust's total managed
assets were financed by leverage, which remained constant, compared with
28.7% of assets at the start of the fiscal period on May 1, 2013. The
increase was due to a decrease in the value of securities in which the Trust
had invested.
Q What is your investment outlook?
A We are relatively optimistic about the prospects for continued economic
expansion and we believe U.S. credit markets are well positioned to
outperform Treasuries. Monetary policy remains accommodative and recent
corrections in the prices of some credit-linked securities have increased
their value relative to alternative investments, especially given that
default rates remain low by historical standards. We believe corporate bonds
and other credit-sensitive securities have the potential to deliver
moderately positive returns.
The U.S. economy showed its resilience in 2013, continuing to strengthen
despite several tax hikes as well as increases in market interest rates. In
this durable economic recovery, American corporations have been able to
continue to grow their profits and clean up their financial balance sheets.
The nation's job market has shown improvement, the housing industry has been
able to recover, and inflation remains under control. Default rates for
corporate debt remain low by historical standards. Corporate bonds are not
inexpensive, however, and we believe investors will need to pay close
attention to company fundamentals when selecting individual securities.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 7
We have doubts, however, about the potential of European corporate bonds to
be able to sustain their recent rally. We have a more positive view about
emerging markets debt, where relative values appear attractive but investors
will need to be highly selective in choosing individual bonds in the
emerging markets.
Going forward, we expect to keep the Trust's portfolio well diversified**
among different sectors, including high-yield corporate bonds, event-linked
bonds, floating-rate bank loans and emerging markets debt.
Please refer to the Schedule of Investments on pages 13-42 for a full listing of
Trust securities.
Investments in high-yield or lower-rated securities are subject to greater-than-
average risk. The Trust may invest in securities of issuers that are in default
or that are in bankruptcy.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
When interest rates rise, the prices of debt securities in the Trust will
generally fall. Conversely, when interest rates fall the prices of debt
securities in the Trust generally will rise. Investments in the Trust are
subject to possible loss due to the financial failure of the issuers of the
underlying securities and the issuers' inability to meet their debt obligations.
The Trust may invest up to 50% of its total assets in illiquid securities.
Illiquid securities may be difficult to dispose of at a fair price at the times
when the Trust believes it is desirable to do so and their market price is
generally more volatile than that of more liquid securities. Illiquid securities
also are more difficult to value, and investment of the Trust's assets in
illiquid securities may restrict the Trust's ability to take advantage of market
opportunities.
The Trust is authorized to borrow from banks and issue debt securities, which
are forms of leverage. Leverage creates significant risks, including the risk
that the Trust's incremental income or capital appreciation will not be
sufficient to cover the cost of leverage, which may adversely affect the return
for shareholders.
** Diversification does not assure a profit nor protect against loss in a
declining market.
8 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
Risks of investing in the Trust are discussed in greater detail in the Trust's
original offering prospectus and in shareowner reports issued from time to time.
These risks may increase share price volatility.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 9
Portfolio Summary | 10/31/13
Portfolio Diversification
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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 71.3%
Senior Secured Floating Rate Loan Interests 17.6%
Preferred Stocks 3.0%
Convertible Bonds & Notes 2.0%
Sovereign Debt Obligations 1.9%
Collateralized Mortgage Obligations 1.4%
Asset Backed Securities 1.0%
Temporary Cash Investments 0.9%
Common Stocks 0.5%
Convertible Preferred Stock 0.2%
Commercial Mortgage-Backed Securities 0.2%
Right/Warrant 0.0%*
* Amount is less than 0.1%
Portfolio Quality
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on Standard & Poor's
ratings (S&P))
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
A 0.4%
BBB 3.4%
BB 17.5%
B 47.5%
CCC 15.7%
CC 1.1%
D 0.2%
NR 14.2%
Bond ratings are ordered highest to lowest in portfolio. Based on Standard &
Poor's measures, AAA (highest possible rating) through BBB are considered
investment grade; BB or lower ratings are considered non-investment grade. Cash
equivalents and some bonds may not be rated.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)**
1. Fixed Income Trust Series 2013-A, 0.0%, 10/15/97 (144A) 1.48%
--------------------------------------------------------------------------------
2. Altair Re, 0.0%, 0.90
--------------------------------------------------------------------------------
3. Queen Street IV Capital, Ltd., 7.53%, 4/9/15 (144A) 0.89
--------------------------------------------------------------------------------
4. Montana Re, Ltd., 16.658%, 1/8/14 (144A) 0.88
--------------------------------------------------------------------------------
5. Successor X, Ltd., 16.094%, 1/7/14 (144A) 0.88
--------------------------------------------------------------------------------
6. Successor X, Ltd., 14.594%, 1/7/14 (144A) 0.88
--------------------------------------------------------------------------------
7. AMC Entertainment, Inc., 9.75%, 12/1/20 0.84
--------------------------------------------------------------------------------
8. MetroCat Re, Ltd., 4.53%, 8/5/16 (144A) 0.78
--------------------------------------------------------------------------------
9. Townsquare Radio LLC / Townsquare Radio, Inc., 9.0%, 4/1/19 (144A) 0.76
--------------------------------------------------------------------------------
10. Sector Re V, Ltd., 0.0%, 3/1/18 (144A) 0.73
--------------------------------------------------------------------------------
** This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
10 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
Prices and Distributions | 10/31/13
Market Value per Common Share
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10/31/13 4/30/13
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Market Value $21.43 $21.82
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Premium 5.5% 5.4%
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Net Asset Value per Common Share
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--------------------------------------------------------------------------------
10/31/13 4/30/13
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$20.31 $20.70
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Distributions per Common Share
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--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
5/1/13 - 10/31/13 $0.96 $ -- $ --
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The data shown above represents past performance, which is no guarantee of
future results.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 11
Performance Update | 10/31/13
Investment Returns
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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 during the periods shown,
compared to that of the combined (50%/50%) Bank of America Merrill Lynch Global
High Yield and Emerging Markets Plus Index (BofA ML Global HY and EMP Index) and
the Credit Suisse (CS) Leveraged Loan Index.
Average Annual Total Returns
(As of October 31, 2013)
--------------------------------------------------------------------------------
Net Asset Market
Period Value (NAV) Price
--------------------------------------------------------------------------------
Life-of-Trust
(5/30/07) 9.04% 9.16%
5 Years 18.40 23.34
1 Year 11.81 15.57
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Market Value of $10,000 Investment
Pioneer Diversified 50% BofA ML Global HY and EMP Index
High Income Trust 50% CS Leveraged Loan Index
5/31/2007 $ 10,000 $ 10,000
10/31/2007 $ 8,709 $ 10,034
10/31/2008 $ 6,287 $ 7,683
10/31/2009 $ 9,362 $ 10,570
10/31/2010 $ 12,686 $ 12,116
10/31/2011 $ 13,258 $ 12,532
10/31/2012 $ 15,196 $ 14,010
10/31/2013 $ 17,562 $ 14,996
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV due to such factors as interest rate changes
and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Closed-end funds, unlike open-end funds, are not continuously offered. There is
a one-time public offering and, once issued, shares of closed-end funds are sold
in the open market through a stock exchange and frequently trade at prices lower
than their NAV. NAV per common share is total assets less total liabilities,
which includes bank borrowing, divided by the number of common shares
outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends are
assumed to be reinvested at prices obtained under the Trust's dividend
reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions.
The BofA ML Global High Yield and Emerging Markets Plus Index is an unmanaged
index that tracks the performance of the below-and border-line investment-grade
global debt markets denominated in the major developed market currencies. The
Index includes sovereign issuers rated BBB1 and lower along with corporate
issues rated BB1 and lower. There are no restrictions on issuer country of
domicile. The CS Leveraged Loan Index is unmanaged and is designed to mirror the
investible universe of the U.S. dollar-denominated leveraged loan market. The
CS Leveraged Loan Index consists of tradable term loans with at least one year
to maturity and rated BBB or lower.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Trust returns, do not reflect any fees, expenses or sales charges. The
indices do not use leverage. It is not possible to invest directly in an index.
12 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
Schedule of Investments | 10/31/13 (unaudited)
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Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES --
1.4% of Net Assets
834,806(a) CCC/Caa3 Aircraft Finance Trust, Series 1999-1A,
Class A1, 0.654%, 5/15/24 (144A) $ 358,967
10(a) B-/Ba3 Aircraft Finance Trust, Series 1999-1A,
Class A2, 0.674%, 5/15/24 (144A) 9
100,000 BB/NR CarNow Auto Receivables Trust, Series
2012-1A, Class D, 6.9%, 11/15/16 (144A) 102,610
81,268 BB+/Ba2 Continental Airlines 1998-1 Class B Pass
Through Trust, 6.748%, 3/15/17 85,941
250,000 BBB-/Ba2 Delta Air Lines 2010-1 Class B Pass
Through Trust, 6.375%, 1/2/16 264,375
85,628(a) B-/B3 GSAMP Trust, Series 2006-HE8, Class A2B,
0.3%, 1/25/37 81,422
940,000 NR/Ba2 Nations Equipment Finance Funding I LLC,
Series 2013-1A, Class C, 5.5%, 5/20/21 (144A) 909,450
154,727 BB/NR Westgate Resorts LLC, Series 2012-2A, Class C,
9.0%, 1/20/25 (144A) 156,056
378,927 NR/NR Westgate Resorts LLC, Series 2012-BA, Class A,
9.5%, 2/20/25 (144A) 378,030
---------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $2,346,176) $ 2,336,860
---------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 2.0% of Net Assets
679,722(a) CCC/Caa2 Carrington Mortgage Loan Trust, Series
2007-FRE1, Class A2, 0.37%, 2/25/37 $ 610,033
200,000(b) CCC/B3 Credit Suisse First Boston Mortgage
Securities Corp., Series 2004-C4, Class E,
5.135%, 10/15/39 (144A) 180,373
300,000 NR/NR Extended Stay America Trust, Series 2013-ESHM,
Class M, 7.625%, 12/5/19 (144A) 315,459
215,623 CCC/Caa3 Global Mortgage Securitization, Ltd., Series
2005-A, Class B3, 5.25%, 4/25/32 179,574
375,000(a) NR/Ba2 GS Mortgage Securities Corp. II, Series
2013-KYO, Class E, 3.773%, 11/8/29 (144A) 375,041
161,172(b) B/NR GSR Mortgage Loan Trust, Series 2004-3F,
Class B1, 5.712%, 2/25/34 157,057
239,990 NR/NR Homeowner Assistance Program Reverse
Mortgage Loan Trust, Series 2013-RM1, Class A,
4.0%, 5/26/53 (144A) 234,302
806,102(a) B/Ba3 Impac CMB Trust, Series 2004-9, Class 1A1,
0.93%, 1/25/35 708,096
556,571(b) BB/NR LB-UBS Commercial Mortgage Trust, Series
2006-C1, Class AJ, 5.276%, 2/15/41 554,497
---------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $3,292,355) $ 3,314,432
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 13
Schedule of Investments | 10/31/13 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED
SECURITIES -- 0.3% of Net Assets
150,000(b) NR/Ba1 Bear Stearns Commercial Mortgage Securities
Trust, Series 2005-PWR7, Class B, 5.214%,
2/11/41 $ 151,793
250,000(b) NR/Baa3 COMM 2012-CCRE2 Mortgage Trust, Series
2012-CR2, Class E, 4.858%, 8/15/45 (144A) 232,535
150,600(a) NR/Ba1 JPMorgan Chase Commercial Mortgage Securities
Corp., Series 2006-FL2A, Class G, 0.534%,
11/15/18 (144A) 143,031
---------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL MORTGAGE-BACKED
SECURITIES
(Cost $486,087) $ 527,359
---------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 24.4% of Net Assets*
AUTOMOBILES & COMPONENTS -- 2.4%
Auto Parts & Equipment -- 1.2%
118,388 B/B1 Federal-Mogul Corp., Tranche B Term Loan,
2.118%, 12/29/14 $ 117,373
69,856 B/B1 Federal-Mogul Corp., Tranche C Term Loan,
2.118%, 12/28/15 69,257
248,125 B+/B1 Metaldyne LLC, USD Term Loan, 5.0%,
12/18/18 250,090
281,448 NR/NR TI Group Automotive Systems LLC, Additional
Term Loan, 5.5%, 3/28/19 284,879
214,478 BB/Ba2 Tomkins LLC, Term Loan B-2, 3.75%, 9/29/16 215,497
975,106 B+/B1 Tower Automotive Holdings USA, LLC, Refinancing
First Lien Term Loan, 4.75%, 4/23/20 989,123
141,013 B/Ba2 UCI International, Inc., (United Components)
Term Loan, 5.5%, 7/26/17 141,894
---------------
$ 2,068,113
---------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.9%
1,466,250 BB/Ba1 Chrysler Group LLC, Tranche B Term Loan,
4.25%, 5/24/17 $ 1,481,417
---------------------------------------------------------------------------------------------------------
Tires & Rubber -- 0.3%
575,000 BB/Ba1 Goodyear Tire & Rubber Co., Second Lien Term
Loan, 4.75%, 4/30/19 $ 581,289
---------------
Total Automobiles & Components $ 4,130,819
---------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 3.0%
Aerospace & Defense -- 1.2%
320,000(i) CCC+/Caa1 Consolidated Precision Products Corp., Second
Lien Term Loan, 0.0%, 4/23/21 $ 324,000
833,630 B-/B2 DAE Aviation Holdings, Inc., Tranche B-1 Loan,
6.25%, 11/2/18 840,403
The accompanying notes are an integral part of these financial statements.
14 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Aerospace & Defense -- (continued)
192,527 B/B3 Hunter Defense Technologies, Inc., Term Loan,
3.52%, 8/22/14 $ 185,307
377,913 B/B2 Standard Aero, Ltd., Tranche B-2 Loan, 6.25%,
11/2/18 380,984
322,004 BB-/B1 TASC, Inc., New Tranche B Term Loan, 4.5%,
12/18/15 309,526
---------------
$ 2,040,220
---------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy
Trucks -- 0.6%
94,295 BB/Ba2 Manitowoc Co., Inc., Term Loan B, 4.25%,
11/13/17 $ 94,589
390,000 BB-/Ba3 Navistar, Inc., Tranche B, Term Loan, 5.75%,
8/17/17 397,129
468,510 B+/B2 Waupaca Foundry, Inc. Term Loan, 4.5%,
6/29/17 470,852
---------------
$ 962,570
---------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.3%
559,350 BB-/Ba2 WireCo WorldGroup, Inc., Term Loan, 6.0%,
2/15/17 $ 562,846
---------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.9%
423,483 BBB/Ba2 AWAS Finance Luxembourg 2012 SA, Term
Loan, 3.5%, 7/16/18 $ 424,807
1,098,879 B+/Ba3 WESCO Distribution, Inc., Tranche B-1 Loan,
4.5%, 12/12/19 1,107,395
---------------
$ 1,532,202
---------------
Total Capital Goods $ 5,097,838
---------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL
SERVICES -- 0.2%
Commercial Printing -- 0.1%
132,667 NR/NR Cenveo Corp., Term Loan B, 6.25%, 2/13/17 $ 134,574
---------------------------------------------------------------------------------------------------------
Security & Alarm Services -- 0.1%
205,306 B+/B1 Protection One, Inc., 2012 Term Loan, 4.25%,
3/21/19 $ 205,819
---------------
Total Commercial & Professional Services $ 340,393
---------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.1%
Textiles -- 0.1%
127,435 NR/Ba3 Klockner Pentaplast of America, Inc., Term
Loan B-1, 5.75%, 12/21/16 $ 128,232
---------------
Total Consumer Durables & Apparel $ 128,232
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 15
Schedule of Investments | 10/31/13 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.2%
Hotels, Resorts & Cruise Lines -- 0.5%
864,063 BB-/Ba2 Seven Sea Cruises S. DE R.L., Term B-1 Loan,
4.75%, 12/21/18 $ 873,783
---------------------------------------------------------------------------------------------------------
Restaurants -- 0.7%
538,972 B+/B1 Landry's, Inc., (fka Landry's Restaurants, Inc.),
Term Loan B, 4.75%, 4/24/18 $ 543,913
544,825 B/Ba3 NPC International, Inc., Term Loan, 4.5%,
12/28/18 550,274
---------------
$ 1,094,187
---------------
Total Consumer Services $ 1,967,970
---------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.3%
Other Diversified Financial Services -- 0.3%
423,907 B/B1 WideOpenWest Finance LLC, Term Loan B,
4.75%, 4/1/19 $ 427,695
---------------
Total Diversified Financials $ 427,695
---------------------------------------------------------------------------------------------------------
ENERGY -- 1.5%
Coal & Consumable Fuels -- 0.5%
566,375(c) B+/Caa1 Preferred Proppants LLC, Initial Term Loan B,
11.75%, 12/15/16 $ 385,135
420,000 NR/NR PT Bumi Resources Tbk, Term Loan, 18.174%,
11/7/14 420,000
---------------
$ 805,135
---------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.0%
400,000 BB-/Ba3 Chesapeake Energy Corp., Term Loan, 5.75%,
12/2/17 $ 409,475
685,000 B-/B2 Fieldwood Energy LLC, Closing Date Second Lien
Term Loan, 8.375%, 9/30/20 698,343
650,000 B/B1 Samson Investment Co., Second Initial Term
Loan, 6.0%, 9/25/18 656,704
---------------
$ 1,764,522
---------------
Total Energy $ 2,569,657
---------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.7%
Packaged Foods & Meats -- 0.7%
232,449 B/B1 Del Monte Foods Co., Initial Term Loan, 4.0%,
3/8/18 $ 233,117
940,000 B-/NR New HB Acquisition LLC, Term B Loan, 6.75%,
4/9/20 968,200
---------------
Total Food, Beverage & Tobacco $ 1,201,317
---------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT &
SERVICES -- 3.9%
Health Care Equipment & Services -- 0.2%
240,732 BB-/Ba2 Kinetic Concepts, Inc., Dollar D-1 Term Loan,
4.5%, 5/4/18 $ 242,989
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Health Care Facilities -- 1.0%
983,916 BB/Ba2 CHS/Community Health Systems, Inc., Extended
Term Loan, 3.761%, 1/25/17 $ 988,698
82,579 BB/Ba3 HCA, Inc., Tranche B-4 Term Loan, 2.918%,
5/1/18 82,859
198,040 BB/NR HCA, Inc., Tranche B-5 Term Loan, 2.998%,
3/31/17 198,721
323,377 B+/Ba3 Kindred Healthcare, Inc., Term B-1 Loan,
4.25%, 6/1/18 323,983
---------------
$ 1,594,261
---------------------------------------------------------------------------------------------------------
Health Care Services -- 2.3%
377,708 B+/B2 AccentCare, Inc., Term Loan, 6.5%, 12/22/16 $ 169,969
625,000 B/B2 Bioscrip, Inc., Delayed Draw Term Loan, 6.5%,
7/31/20 371,250
625,000 B/B2 Bioscrip, Inc., Initial Term B Loan, 6.5%, 7/31/20 618,750
800,000 B/B2 Gentiva Health Services, Inc., Initial Term B Loan,
6.5%, 10/18/19 797,124
341,123 B/B2 Inventiv Health, Inc., Consolidated Term Loan,
7.5%, 8/4/16 336,646
399,753 B+/B2 National Mentor Holdings, Inc., Tranche B-1 Term
Loan, 6.5%, 2/9/17 403,501
294,319 D/NR Rural/Metro Corp., Delayed Draw Term Loan,
3.0%, 3/1/14 217,791
463,838 B/NR Surgical Care Affiliates LLC, Class C Term Loan,
4.25%, 6/29/18 460,938
283,225 B/B2 Valitas Health Services, Inc., Term Loan B,
5.75%, 6/2/17 273,313
488,750 NR/B3 Virtual Radiologic Corp., Term Loan B, 7.25%,
12/22/16 321,761
---------------
$ 3,971,043
---------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.1%
238,893 B+/NR Alere, Inc., Term Loan B, 5.5%, 6/30/17 $ 240,685
---------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.3%
240,945 BB-/Ba3 IMS Health, Inc., Tranche B-1 Dollar Term Loan,
3.75%, 9/1/17 $ 242,564
349,772 CCC/Caa3 Medical Card System, Inc., Term Loan, 0.0%,
9/17/15 334,032
---------------
$ 576,596
---------------
Total Health Care Equipment & Services $ 6,625,574
---------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.9%
Household Products -- 0.5%
427,338 BB-/B1 SRAM LLC, First Lien Term Loan, 4.0%, 4/10/20 $ 425,736
431,978 B-/B2 Wash MultiFamily Laundry Systems LLC, U.S.
Term Loan, 5.25%, 2/21/19 434,138
---------------
$ 859,874
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 17
Schedule of Investments | 10/31/13 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Personal Products -- 0.4%
270,887 B/Ba3 Monitronics International, Inc., Term Loan B,
4.25%, 3/23/18 $ 273,483
215,357 BB-/NR NBTY, Inc., B-2 Term Loan, 3.5%, 10/1/17 217,084
208,828 B+/Ba2 Revlon Consumer Products Corp., Replacement
Term Loan, 4.0%, 11/20/17 210,427
---------------
$ 700,994
---------------
Total Household & Personal Products $ 1,560,868
---------------------------------------------------------------------------------------------------------
INSURANCE -- 1.0%
Multi-Line Insurance -- 0.4%
575,650 B-/B1 Alliant Holdings I LLC, Initial Term Loan, 5.0%,
12/20/19 $ 579,514
---------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.6%
593,765 CCC/Caa2 Confie Seguros Holding II Co., Second Lien
Term Loan, 10.25%, 5/8/19 $ 598,466
451,588 B/B1 USI, Inc., Initial Term Loan, 5.0%, 12/27/19 454,297
---------------
$ 1,052,763
---------------
Total Insurance $ 1,632,277
---------------------------------------------------------------------------------------------------------
MATERIALS -- 1.1%
Commodity Chemicals -- 0.1%
197,011 BB-/B1 Taminco Global Chemical Corp., Tranche B-2
Dollar Term Loan, 4.25%, 2/15/19 $ 198,489
---------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.2%
300,187 B+/B2 Univar, Inc., Term Loan B, 5.0%, 6/30/17 $ 295,778
---------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.0%+
72,253(c) NR/NR Long Haul Holdings, Ltd., Facility Term Loan A,
0.0%, 1/12/13 $ 28,179
57,668(c) NR/NR PT Bakrie & Brothers Tbk, Facility Term Loan B,
0.0%, 1/20/13 $ 22,490
---------------
$ 50,669
---------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 0.3%
485,958 B/B1 Tank Holding Corp., Initial Term Loan, 5.5%, 7/9/19 $ 485,350
---------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.2%
253,702 B/B2 Exopack LLC/Cello-Foil Products, Inc., Term
Loan B, 5.0%, 5/31/17 $ 253,702
---------------------------------------------------------------------------------------------------------
Paper Products -- 0.0%+
100,000 NR/NR Exopack LLC/Cello-Foil Products, Inc., USD Term
Loan, 0.0%, 5/8/19 $ 101,376
---------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.3%
189,170 BB+/Ba1 Chemtura Corp., New Term Loan, 3.5%, 8/29/16 $ 190,589
344,239 BB+/Ba2 Huntsman International LLC, Extended Term B
Loan, 2.718%, 4/19/17 344,729
---------------
$ 535,318
---------------
Total Materials $ 1,920,682
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
MEDIA -- 1.6%
Advertising -- 0.6%
965,046 B-/B2 Affinion Group, Inc., Tranche B Term Loan, 6.5%,
10/9/16 $ 955,999
---------------------------------------------------------------------------------------------------------
Broadcasting -- 0.9%
508,246 B/B2 FoxCo Acquisition Sub LLC, Initial Term Loan,
5.5%, 7/14/17 $ 511,105
150,000 CCC+/Caa2 Learfield Communications, Inc., Initial Second
Lien Term Loan, 8.75%, 10/8/21 153,375
404,958 B+/Ba3 TWCC Holding Corp., Term Loan, 3.5%, 2/13/17 406,873
469,359 B+/B2 Univision Communications, Inc., Converted
Extended First-Lien Term Loan, 4.5%, 3/1/20 471,632
---------------
$ 1,542,985
---------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.1%
107,798 NR/Baa3 Cinedigm Digital Funding I LLC, Term Loan,
3.75%, 2/28/18 $ 108,202
335,394 NR/NR Lodgenet Interactive Corp., Closing Date Term
Loan, 6.75%, 3/28/18 160,989
---------------
$ 269,191
---------------
Total Media $ 2,768,175
---------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 1.1%
Biotechnology -- 0.3%
486,250 B+/B2 Aptalis Pharma, Inc., Term B Loan, 6.0%,
10/2/20 $ 490,302
---------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.8%
1,296,627 BB-/B3 Catalent Pharma, Inc., Dollar Term Loan,
3.668%, 9/15/16 $ 1,302,137
---------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 1,792,439
---------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.1%
Real Estate Development -- 0.1%
194,513 B-/B2 Ozburn-Hessey Holding Co., LLC, First Lien Term
Loan, 6.75%, 5/23/19 $ 195,242
---------------
Total Real Estate $ 195,242
---------------------------------------------------------------------------------------------------------
RETAILING -- 0.5%
Computer & Electronics Retail -- 0.5%
847,634 B/B2 Targus Group International, Inc., Term Loan,
12.0%, 5/24/16 $ 762,871
---------------
Total Retailing $ 762,871
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 19
Schedule of Investments | 10/31/13 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.3%
Semiconductor Equipment -- 0.3%
561,549 BB-/B1 Aeroflex, Inc., Tranche B-1 Term Loan, 4.5%,
11/9/19 $ 566,814
---------------
Total Semiconductors & Semiconductor
Equipment $ 566,814
---------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 2.5%
Application Software -- 1.9%
700,000 NR/NR Applied Systems, Inc., Second Lien Term Loan,
8.25%, 6/8/17 $ 707,000
621,853 B-/Ba3 Expert Global Solutions, Inc., Advance First Lien
Term Loan B, 8.5%, 4/3/18 631,181
428,475 NR/B2 Houghton Mifflin Co., Term Loan, 5.25%,
5/22/18 431,957
942,894 BB+/NR Nuance Communications, Inc., Term Loan C,
2.92%, 8/7/19 943,629
500,000 CCC+/Caa1 Vertafore, Inc., Second Lien Term Loan, 9.75%,
10/29/17 510,500
---------------
$ 3,224,267
---------------------------------------------------------------------------------------------------------
Internet Software & Services -- 0.1%
243,750 BB+/Ba3 Autotrader.com, Inc., Tranche B-1 Term Loan,
4.0%, 12/15/16 $ 245,781
---------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.5%
823,970 BB/Ba3 SunGuard Data Systems, Inc., Tranche C Term
Loan, 3.924%, 2/28/17 $ 827,046
---------------
Total Software & Services $ 4,297,094
---------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE &
EQUIPMENT -- 0.4%
Communications Equipment -- 0.1%
240,680 BB/Ba3 CommScope, Inc., Tranche 2 Term Loan, 3.75%,
1/14/18 $ 241,507
---------------------------------------------------------------------------------------------------------
Electronic Components -- 0.3%
477,897 B/B2 Scitor Corp., Term Loan, 5.0%, 2/15/17 $ 479,390
---------------
Total Technology Hardware & Equipment $ 720,897
---------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.5%
Integrated Telecommunication
Services -- 0.5%
782,433 BB/Ba3 West Corp., Term B-8 Loan, 3.75%, 6/30/18 $ 786,039
---------------
Total Telecommunication Services $ 786,039
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.8%
Air Freight & Logistics -- 0.8%
439,482 B/B1 Ceva Group Plc, Dollar Tranche B Pre-Funded
L/C, 0.148%, 8/31/16 $ 423,825
919,588 CCC+/B2 Ceva Group Plc, U.S. Tranche B Term Loan,
5.209%, 8/31/16 896,024
---------------
Total Transportation $ 1,319,849
---------------------------------------------------------------------------------------------------------
UTILITIES -- 0.3%
Electric Utilities -- 0.3%
629,720 CCC-/Caa3 Texas Competitive Electric Holdings Co.,
LLC, 2017 Term Loan, 4.766%, 10/10/17 $ 421,650
---------------
Total Utilities $ 421,650
---------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING
RATE LOAN INTERESTS
(Cost $41,707,166) $ 41,234,392
---------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES --
98.9% of Net Assets
AUTOMOBILES & COMPONENTS -- 0.6%
Auto Parts & Equipment -- 0.6%
350,000 B/Caa1 International Automotive Components Group
SA, 9.125%, 6/1/18 (144A) $ 360,500
275,000 B/B3 Pittsburgh Glass Works LLC, 8.0%,
11/15/18 (144A) 280,500
290,000 B+/B2 Stackpole International Intermediate Co.
SA / Stackpole International Powder Meta,
7.75%, 10/15/21 (144A) $ 301,600
---------------
Total Automobiles & Components $ 942,600
---------------------------------------------------------------------------------------------------------
BANKS -- 1.5%
Diversified Banks -- 1.2%
525,000 CCC+/B3 Banco de Galicia y Buenos Aires, 8.75%,
5/4/18 (144A) $ 514,558
500,000(b) NR/Caa3 Banco Macro SA, 9.75%, 12/18/36 407,000
200,000 NR/Ba1 Turkiye IS Bankasi AS, 6.0%, 10/24/22 (144A) 192,000
750,000 BBB-/NR UBS AG/Stamford CT, 7.625%, 8/17/22 855,079
---------------
$ 1,968,637
---------------------------------------------------------------------------------------------------------
Regional Banks -- 0.3%
600,000(b)(d) BBB/Baa3 PNC Financial Services Group, Inc.,
4.483% $ 598,800
---------------
Total Banks $ 2,567,437
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 21
Schedule of Investments | 10/31/13 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 7.1%
Aerospace & Defense -- 0.9%
600,000 B-/Caa1 ADS Tactical, Inc., 11.0%, 4/1/18 (144A) $ 540,000
870,000 B-/B2 DynCorp International, Inc., 10.375%, 7/1/17 915,675
---------------
$ 1,455,675
---------------------------------------------------------------------------------------------------------
Building Products -- 0.7%
850,000 CC/Caa3 New Enterprise Stone & Lime Co., Inc.,
11.0%, 9/1/18 $ 456,875
300,000 BB-/B2 USG Corp., 7.875%, 3/30/20 (144A) 330,000
365,000 BB-/B2 USG Corp., 9.75%, 8/1/14 (144A) 386,900
---------------
$ 1,173,775
---------------------------------------------------------------------------------------------------------
Construction & Engineering -- 1.1%
900,000 B/B2 Empresas ICA S.A.B. de C.V., 8.9%,
2/4/21 (144A) $ 877,500
1,000,000 BB-/B1 OAS Investments GMBH, 8.25%,
10/19/19 (144A) 990,000
---------------
$ 1,867,500
---------------------------------------------------------------------------------------------------------
Construction & Farm Machinery
& Heavy Trucks -- 0.9%
360,000 B-/B3 Meritor, Inc., 6.75%, 6/15/21 $ 363,600
660,000 CCC-/B3 Navistar International Corp., 8.25%, 11/1/21 674,025
160,000 CCC-/Caa2 Stanadyne Holdings, Inc., 10.0%, 8/15/14 156,000
500,000(e) CC/Ca Stanadyne Holdings, Inc., 12.0%, 2/15/15 300,000
---------------
$ 1,493,625
---------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.5%
750,000 B-/B3 WireCo WorldGroup, Inc., 9.5%, 5/15/17 $ 776,250
---------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.3%
455,000 B+/B2 JB Poindexter & Co., Inc., 9.0%, 4/1/22 (144A) $ 482,300
EUR 80,000 BB-/Ba3 Mark IV Europe Lux SCA / Mark IV USA SCA,
8.875%, 12/15/17 (144A) 116,318
---------------
$ 598,618
---------------------------------------------------------------------------------------------------------
Industrial Machinery -- 1.4%
450,000 B/B2 Cleaver-Brooks, Inc., 8.75%, 12/15/19 (144A) $ 489,375
500,000(c) NR/WR Indalex Holding Corp., 11.5%, 2/1/14 3,750
335,000 B-/Caa2 Liberty Tire Recycling, 11.0%, 10/1/16 (144A) 341,700
875,000 B/Caa1 Mueller Water Products, Inc., 7.375%, 6/1/17 901,250
665,000 B-/NR WPE International Cooperatief UA, 10.375%,
9/30/20 (144A) 465,500
150,000 B/B3 Xerium Technologies, Inc., 8.875%, 6/15/18 156,750
---------------
$ 2,358,325
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 1.3%
1,052,000 CCC/Caa1 INTCOMEX, Inc., 13.25%, 12/15/14 $ 1,020,440
1,090,000 B-/B3 TRAC Intermodal LLC / TRAC Intermodal
Corp., 11.0%, 8/15/19 1,239,875
$ 2,260,315
---------------
Total Capital Goods $ 11,984,083
---------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL
SERVICES -- 0.8%
Diversified Support Services -- 0.8%
345,000 NR/Caa1 Monitronics Escrow Corp., 9.125%, 4/1/20 (144A) $ 365,700
750,000 B+/B3 NANA Development Corp., 9.5%, 3/15/19 (144A) 772,500
260,000 B-/B3 TMS International Corp., 7.625%,
10/15/21 (144A) 271,700
---------------
$ 1,409,900
---------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 0.0%+
700,000(c) NR/WR Old AII, Inc., 10.0%, 12/15/16 $ 70
---------------
Total Commercial & Professional Services $ 1,409,970
---------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.8%
Home Furnishings -- 0.3%
535,000 B+/B3 Tempur Sealy International, Inc.,
6.875%, 12/15/20 $ 571,112
---------------------------------------------------------------------------------------------------------
Homebuilding -- 0.5%
530,000 CCC/Caa2 Beazer Homes USA, Inc., 9.125%, 6/15/18 $ 565,775
605,000(c) NR/C Desarrolladora Homex SAB de CV, 9.5%,
12/11/19 (144A) 99,825
500,000(c) NR/Ca Urbi Desarrollos Urbanos SAB de CV, 9.75%,
2/3/22 (144A) 80,000
---------------
$ 745,600
---------------------------------------------------------------------------------------------------------
Leisure Products -- 1.0%
EUR 275,000 CCC+/Caa2 Heckler & Koch GmbH, 9.5%, 5/15/18 (144A) $ 366,120
1,000,000 CCC+/Caa1 Icon Health & Fitness, Inc., 11.875%,
10/15/16 (144A) 901,250
375,000(f) CCC+/Caa2 PC Nextco Holdings LLC / PC Nextco
Finance, Inc., 8.75%, 8/15/19 (144A) 387,188
---------------
$ 1,654,558
---------------
Total Consumer Durables & Apparel $ 2,971,270
---------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 4.9%
Business Services -- 0.8%
750,000 B/B2 Sitel LLC / Sitel Finance Corp., 11.0%,
8/1/17 (144A) $ 815,625
500,000 B-/Caa2 Sitel LLC / Sitel Finance Corp., 11.5%, 4/1/18 433,750
---------------
$ 1,249,375
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 23
Schedule of Investments | 10/31/13 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Casinos & Gaming -- 1.4%
500,000(c) NR/WR Buffalo Thunder Development Authority,
9.375%, 12/15/14 (144A) $ 185,000
EUR 1,155,000 CC/Ca Codere Finance Luxembourg SA, 8.25%,
6/15/15 (144A) 851,438
90,000 NR/NR Little Traverse Bay Bands of Odawa Indians,
9.0%, 8/31/20 (144A) 88,200
712,691 NR/NR Mashantucket Western Pequot Tribe,
6.5%, 7/1/36 94,432
EUR 500,000 CCC/Caa1 Peermont Global, Ltd., 7.75%, 4/30/14 (144A) 676,028
450,000 B+/B2 Scientific Games International, Inc.,
9.25%, 6/15/19 485,437
---------------
$ 2,380,535
---------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.9%
720,000(f) B-/B3 MISA Investments, Ltd., 8.625%, 8/15/18 (144A) $ 745,200
400,000 CCC+/B2 Seven Seas Cruises S de RL LLC,
9.125%, 5/15/19 439,500
325,000 B+/B3 Viking Cruises, Ltd., 8.5%, 10/15/22 (144A) $ 364,000
---------------
$ 1,548,700
---------------------------------------------------------------------------------------------------------
Leisure Facilities -- 0.7%
EUR 800,000 B+/B3 Cirsa Funding Luxembourg SA, 8.75%,
5/15/18 (144A) $ 1,144,152
---------------------------------------------------------------------------------------------------------
Restaurants -- 0.9%
1,235,000(e) B-/Caa1 Burger King Capital Holdings LLC, 0.0%,
4/15/19 (144A) $ 1,096,062
400,000 B/B3 Burger King Corp., 9.875%, 10/15/18 448,500
---------------
$ 1,544,562
---------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.2%
315,000 B-/B3 StoneMor Partners LP / Cornerstone Family
Services of WV, 7.875%, 6/1/21 (144A) $ 326,813
---------------
Total Consumer Services $ 8,194,137
---------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.1%
Asset Management & Custody Banks -- 0.4%
590,000 BBB-/Baa3 Janus Capital Group, Inc., 6.7%, 6/15/17 $ 666,513
---------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.9%
445,000 B+/B1 Jefferies Finance LLC / JFIN Co-Issuer Corp.,
7.375%, 4/1/20 (144A) $ 457,237
610,000 NR/NR Tarjeta Naranja SA, 9.0%, 1/28/17 (144A) 606,950
440,000 B+/B3 TMX Finance LLC / TitleMax Finance Corp.,
8.5%, 9/15/18 (144A) 467,500
---------------
$ 1,531,687
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.2%
450,000(a)(d) BB+/Ba2 Goldman Sachs Capital II, 4.0%, 12/1/49 $ 331,875
---------------------------------------------------------------------------------------------------------
Multi-Sector Holdings -- 0.3%
600,000 B/B3 Constellation Enterprises LLC, 10.625%,
2/1/16 (144A) $ 510,000
---------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.3%
425,000 B+/B2 National Money Mart Co., 10.375%, 12/15/16 $ 442,000
---------------
Total Diversified Financials $ 3,482,075
---------------------------------------------------------------------------------------------------------
ENERGY -- 14.6%
Coal & Consumable Fuels -- 1.2%
850,000 CC/Ca Bumi Capital Pte, Ltd., 12.0%, 11/10/16 (144A) $ 518,500
400,000 CCC/Caa2 James River Coal Co., 7.875%, 4/1/19 132,000
400,000 B-/Caa1 Mongolian Mining Corp., 8.875%, 3/29/17 (144A) 327,000
300,000 B-/Caa1 Murray Energy Corp., 8.625%, 6/15/21 (144A) 321,000
715,000 B-/Caa1 Penn Virginia Corp., 8.5%, 5/1/20 758,794
---------------
$ 2,057,294
---------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 1.6%
645,000 B/B3 Hercules Offshore, Inc., 8.75%, 7/15/21 (144A) $ 709,500
1,000,000 CCC+/Caa3 Ocean Rig UDW, Inc., 9.5%, 4/27/16 (144A) 1,062,500
500,000 B+/B2 Pioneer Energy Services Corp., 9.875%, 3/15/18 537,500
320,000 B+/B1 Shelf Drill Holdings, Ltd., 8.625%, 11/1/18 (144A) 344,800
---------------
$ 2,654,300
---------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.9%
448,000 B/B1 Expro Finance Luxembourg SCA, 8.5%,
12/15/16 (144A) $ 469,280
690,000 B/Caa1 Forbes Energy Services, Ltd., 9.0%, 6/15/19 696,900
330,000 B/B3 Seitel, Inc., 9.5%, 4/15/19 340,312
---------------
$ 1,506,492
---------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 10.7%
520,000 CCC+/Caa1 Athlon Holdings LP / Athlon Finance Corp.,
7.375%, 4/15/21 (144A) $ 543,400
505,000 BB-/B1 Berry Petroleum Co., 10.25%, 6/1/14 530,250
100,000 B-/B3 Comstock Resources, Inc., 7.75%, 4/1/19 104,500
500,000 B-/B3 Comstock Resources, Inc., 9.5%, 6/15/20 555,000
515,000 B+/B3 Energy XXI Gulf Coast, Inc., 7.5%,
12/15/21 (144A) 538,175
600,000 B/B2 EP Energy LLC / EP Energy Finance, Inc.,
9.375%, 5/1/20 693,000
292,010(f) B/B3 EPE Holdings LLC / EP Energy Bond Co.,
Inc., 8.875%, 12/15/17 (144A) 305,881
920,000 B-/B3 Forest Oil Corp., 7.5%, 9/15/20 913,100
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 25
Schedule of Investments | 10/31/13 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Oil & Gas Exploration &
Production -- (continued)
360,000 B/NR GeoPark Latin America, Ltd., Agencia en Chile,
7.5%, 2/11/20 (144A) $ 366,300
570,000 CCC+/B3 Gulfport Energy Corp., 7.75%, 11/1/20 604,200
165,000 CCC+/Caa1 Halcon Resources Corp., 9.25%, 2/15/22 (144A) 174,900
890,000 CCC+/Caa1 Halcon Resources Corp., 9.75%, 7/15/20 967,875
680,000 B-/Caa1 Lightstream Resources, Ltd., 8.625%,
2/1/20 (144A) 681,700
220,000 B-/Caa1 Memorial Production Partners LP / Memorial
Production Finance Corp., 7.625%, 5/1/21 (144A) 223,300
410,000 B-/Caa1 Memorial Production Partners LP / Memorial
Production Finance Corp., 7.625%, 5/1/21 416,150
600,000 B-/Caa1e Midstates Petroleum Co., Inc., 9.25%, 6/1/21 618,000
455,000 B-/Caa1e Midstates Petroleum Co., Inc., 10.75%, 10/1/20 491,400
800,000 B+/NR MIE Holdings Corp., 9.75%, 5/12/16 (144A) 844,000
200,000 NR/NR National JSC Naftogaz of Ukraine, 9.5%, 9/30/14 188,500
1,440,000 B-/Caa1 Northern Oil & Gas, Inc., 8.0%, 6/1/20 1,490,400
535,000 B-/B3 PDC Energy, Inc., 7.75%, 10/15/22 580,475
750,000 B/Caa1 PetroQuest Energy, Inc., 10.0%, 9/1/17 772,500
480,000 B-/Caa1 QR Energy LP / QRE Finance Corp., 9.25%, 8/1/20 502,800
240,000 CCC-/Caa3 Quicksilver Resources, Inc., 7.125%, 4/1/16 228,000
700,000 B-/B3 Resolute Energy Corp., 8.5%, 5/1/20 735,000
870,000 B-/B3 RKI Exploration & Production LLC / RKI Finance
Corp., 8.5%, 8/1/21 (144A) 904,800
472,000 B+/B2 Rosetta Resources, Inc., 9.5%, 4/15/18 509,760
700,000 CCC+/B3 Samson Investment Co., 10.25%, 2/15/20 (144A) 756,000
1,170,000 CCC+/Caa1 Sanchez Energy Corp., 7.75%, 6/15/21 (144A) 1,193,400
335,000 CCC+/Caa1 Talos Production LLC / Talos Production
Finance, Inc., 9.75%, 2/15/18 (144A) 338,350
CAD 315,000 B/NR Trilogy Energy Corp., 7.25%, 12/13/19 (144A) 311,387
---------------
$ 18,082,503
---------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.2%
450,000(a) BB/Ba1 Energy Transfer Partners LP, 3.259%,
11/1/66 (144A) $ 407,250
---------------
Total Energy $ 24,707,839
---------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 7.4%
Agricultural Products -- 1.1%
900,000 CCC+/Caa1 Pinnacle Operating Corp., 9.0%, 11/15/20 (144A) $ 940,500
520,000 B/B2 Southern States Cooperative, Inc., 10.0%,
8/15/21 (144A) 507,000
500,000 B/NR Tonon Bioenergia SA, 9.25%, 1/24/20 (144A) 458,750
---------------
$ 1,906,250
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 5.3%
225,000 B/B2 Agrokor DD, 8.875%, 2/1/20 (144A) $ 244,147
EUR 200,000 B/B2 Agrokor DD, 9.875%, 5/1/19 (144A) 307,100
650,000 BB/Ba3 Bertin SA / Bertin Finance, Ltd., 10.25%,
10/5/16 (144A) 724,750
500,000 B+/B1 CFG Investment SAC, 9.75%, 7/30/19 (144A) 477,500
305,000 B/B1 Chiquita Brands International, Inc. / Chiquita
Brands LLC, 7.875%, 2/1/21 (144A) 330,925
491,000 B+/B2 Corporacion Pesquera Inca SAC, 9.0%,
2/10/17 (144A) 491,000
1,100,000 B/B3 FAGE Dairy Industry SA/FAGE USA Dairy
Industry, Inc., 9.875%, 2/1/20 (144A) 1,190,750
224,421(c) NR/NR Independencia International, Ltd., 12.0%,
12/30/16 (144A) 281
800,000 B/B2 Marfrig Holding Europe BV, 8.375%,
5/9/18 (144A) 754,000
700,000 B/B2 Marfrig Holding Europe BV, 11.25%,
9/20/21 (144A) 695,625
475,000 B/B2 Marfrig Overseas, Ltd., 9.5%, 5/4/20 (144A) 458,375
700,000 B/NR MHP SA, 8.25%, 4/2/20 (144A) 600,250
1,600,000 BB-/B1 Minerva Luxembourg SA, 7.75%, 1/31/23 (144A) 1,552,000
200,000 BB-/B1 Minerva Luxembourg SA, 12.25%, 2/10/22 (144A) 224,000
600,000 B+/B2 Pesquera Exalmar SAA, 7.375%, 1/31/20 (144A) 552,000
300,000 BB-/Caa1 Pilgrim's Pride Corp., 7.875%, 12/15/18 327,750
---------------
$ 8,930,453
---------------------------------------------------------------------------------------------------------
Tobacco -- 1.0%
1,645,000 B-/Caa1 Alliance One International, Inc., 9.875%,
7/15/21 (144A) $ 1,579,200
---------------
Total Food, Beverage & Tobacco $ 12,415,903
---------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.4%
Health Care Equipment & Services -- 1.1%
915,000 CCC+/Caa2 Accellent, Inc., 10.0%, 11/1/17 $ 869,250
831,000 B+/B2 Physio-Control International, Inc., 9.875%,
1/15/19 (144A) 926,565
---------------
$ 1,795,815
---------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.5%
600,000 B-/B3 Kindred Healthcare, Inc., 8.25%, 6/1/19 $ 645,000
200,000 CCC+/Caa1 United Surgical Partners International,
9.0%, 4/1/20 224,000
---------------
$ 869,000
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 27
Schedule of Investments | 10/31/13 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Health Care Services -- 1.0%
476,000 B/B2 Gentiva Health Services, Inc., 11.5%, 9/1/18 $ 493,850
1,170,000 CCC+/Caa1 Surgical Care Affiliates, Inc., 10.0%,
7/15/17 (144A) 1,210,950
---------------
$ 1,704,800
---------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.6%
455,000 NR/Caa1 Bausch & Lomb, Inc., 9.875%, 11/1/15 $ 455,000
500,000 B-/Caa2 Immucor, Inc., 11.125%, 8/15/19 561,250
---------------
$ 1,016,250
---------------------------------------------------------------------------------------------------------
Health Care Technology -- 0.2%
275,000 CCC+/Caa1 Emdeon, Inc., 11.0%, 12/31/19 $ 316,250
---------------
Total Health Care Equipment & Services $ 5,702,115
---------------------------------------------------------------------------------------------------------
INSURANCE -- 25.7%
Insurance Brokers -- 0.5%
GBP 475,000 NR/Caa2 Towergate Finance Plc, 10.5%, 2/15/19 (144A) $ 808,220
---------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.6%
1,000,000(b) BB/Baa3 Liberty Mutual Group, Inc., 7.0%, 3/15/37 (144A) $ 1,040,000
---------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 2.1%
6,000,000(e)(g)(h) BBB/NR Fixed Income Trust Series 2013-A, 0.0%,
10/15/97 (144A) $ 3,421,927
80,000(b)(d) BB+/Ba2 White Mountains Insurance Group, Ltd.,
7.506% (144A) 82,336
---------------
$ 3,504,263
---------------------------------------------------------------------------------------------------------
Reinsurance -- 22.5%
250,000(a) BB+/NR Armor Re, Ltd., 4.25%, 5/14/14 (144A) $ 253,675
EUR 750,000(a) BB/NR ATLAS Reinsurance VII, 3.65%, 1/7/16 (144A) 1,028,310
EUR 500,000(a) B-/NR ATLAS VI Capital, Ltd., 10.5%, 4/7/14 (144A) 671,340
1,000,000(a) BB+/NR Bosphorus 1 Re, Ltd., 2.53%, 5/3/16 (144A) 997,800
900,000(a) NR/Ba2 Combine Re, Ltd., 10.03%, 1/7/15 (144A) 975,240
750,000(a) NR/NR Combine Re, Ltd., 17.78%, 1/7/15 (144A) 837,825
500,000(a) BB-/NR Compass Re, Ltd., 10.28%, 1/8/15 (144A) 524,900
500,000(a) B+/NR Compass Re, Ltd., 11.28%, 1/8/15 (144A) 528,000
1,000,000(a) BB+/NR Foundation Re III, Ltd., 5.03%, 2/25/15 1,029,600
1,000,000(a) BB/NR Foundation Re III, Ltd., 5.78%, 2/3/14 (144A) 1,010,100
1,300,000(a) B-/NR Ibis Re II, Ltd., 13.53%, 2/5/15 (144A) 1,393,470
500,000(a) BB+/NR Kibou, Ltd., 5.28%, 2/16/15 (144A) 514,900
1,750,000(a) BB-/NR MetroCat Re, Ltd., 4.53%, 8/5/16 (144A) 1,808,450
1,000,000(a) B/NR Montana Re, Ltd., 12.158%, 1/8/14 (144A) 1,016,300
2,000,000(a) NR/NR Montana Re, Ltd., 16.658%, 1/8/14 (144A) 2,046,000
The accompanying notes are an integral part of these financial statements.
28 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
975,000(a) B-/NR Mythen Re, Ltd., 11.843%, 11/10/16 (144A) $ 997,522
500,000(a) B+/NR Mythen Re, Ltd. Series 2012-2 Class A,
8.613%, 1/5/17 (144A) 520,000
1,500,000(a) NR/B2 Mythen Re, Ltd., 11.105%, 5/7/15 (144A) 1,633,350
1,250,000(a) NR/NR Pelican Re, Ltd., 6.03%, 5/15/17 (144A) 1,277,000
1,200,000(a) BB-/NR Queen Street II Capital, Ltd., 7.53%,
4/9/14 (144A) 1,215,120
2,000,000(a) BB-/NR Queen Street IV Capital, Ltd., 7.53%,
4/9/15 (144A) 2,061,400
250,000(a) B/NR Queen Street VII Re, Ltd., 8.63%, 4/8/16 (144A) 257,025
1,250,000(a) B-/NR Residential Reinsurance 2011, Ltd.,
12.03%, 6/6/15 (144A) 1,353,625
250,000(a) NR/NR Residential Reinsurance 2012, Ltd.,
12.78%, 12/6/16 (144A) 274,800
1,250,000(a) NR/NR Residential Reinsurance 2012, Ltd.,
19.03%, 12/6/16 (144A) 1,381,500
1,000,000(a) NR/NR Residential Reinsurance 2012, Ltd.,
22.03%, 6/6/16 (144A) 1,141,700
1,000,000(i) NR/NR Sector Re V, Ltd., 0.0%, 12/1/17 (144A) 1,261,200
1,500,000(i) NR/NR Sector Re V, Ltd., 0.0%, 3/1/18 (144A) 1,702,350
500,000(a) NR/B2 Successor X, Ltd., 11.03%, 1/27/15 (144A) 526,900
1,500,000(a) B-/NR Successor X, Ltd., 11.28%, 11/10/15 (144A) 1,557,750
2,000,000(a) B-/NR Successor X, Ltd., 14.594%, 1/7/14 (144A) 2,031,400
2,000,000(a) NR/NR Successor X, Ltd., 16.094%, 1/7/14 (144A) 2,037,000
1,000,000(a) NR/NR Successor X, Ltd., 16.53%, 1/27/15 (144A) 1,045,700
1,000,000(a) B+/NR Tar Heel Re, Ltd., 8.53%, 5/9/16 (144A) 1,059,900
$ 37,971,152
---------------
Total Insurance $ 43,323,635
---------------------------------------------------------------------------------------------------------
MATERIALS -- 12.2%
Commodity Chemicals -- 0.5%
300,000 BBB-/WR Basell Finance Co. BV, 8.1%, 3/15/27 (144A) $ 391,778
EUR 250,000 CCC/B3 KP Germany Erste GmbH, 11.625%,
7/15/17 (144A) $ 395,001
---------------
$ 786,779
---------------------------------------------------------------------------------------------------------
Construction Materials -- 0.5%
389,000 B+/NR Cemex Espana Luxembourg, 9.875%,
4/30/19 (144A) $ 439,570
100,000 B+/NR Cemex SAB de CV, 9.0%, 1/11/18 (144A) 108,750
300,000(d) BB/NR Magnesita Finance, Ltd., 8.625% (144A) 294,000
---------------
$ 842,320
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 29
Schedule of Investments | 10/31/13 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.9%
EUR 926,278 B-/Caa1 INEOS Group Holdings SA, 7.875%,
2/15/16 (144A) $ 1,275,728
275,000 CC/Caa1 Momentive Performance Materials, Inc.,
9.0%, 1/15/21 243,375
---------------
$ 1,519,103
---------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.7%
590,000 B/B3 Boart Longyear Management Pty, Ltd.,
7.0%, 4/1/21 (144A) $ 438,075
330,000 BB-/B1 Boart Longyear Management Pty, Ltd.,
10.0%, 10/1/18 (144A) 338,250
300,000 CCC/Caa2 Midwest Vanadium Pty., Ltd., 11.5%,
2/15/18 (144A) 252,000
650,000(c) D/Ca Mirabela Nickel, Ltd., 8.75%, 4/15/18 (144A) 227,500
550,000 CCC+/B3 Molycorp, Inc., 10.0%, 6/1/20 544,500
180,000 B/Caa1 Prince Mineral Holding Corp., 11.5%,
12/15/19 (144A) 199,800
750,000 BB/Ba3 Vedanta Resources Plc, 9.5%, 7/18/18 (144A) 833,400
---------------
$ 2,833,525
---------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 0.9%
592,081(f) CCC+/Caa1 Ardagh Finance SA, 11.125%, 6/1/18 (144A) $ 651,289
EUR 250,000 CCC+/B3 Ardagh Glass Finance Plc, 8.75%, 2/1/20 (144A) 353,233
EUR 255,000 B+/Ba3 Ardagh Glass Finance Plc, 9.25%, 7/1/16 (144A) 364,068
175,000 CCC+/Caa1 BWAY Holdings Co., 10.0%, 6/15/18 190,750
---------------
$ 1,559,340
---------------------------------------------------------------------------------------------------------
Paper Packaging -- 1.3%
606,510(e) NR/NR Bio Pappel SAB de CV, 10.0%, 8/27/16 $ 615,607
500,000 B-/Caa1 Pretium Packaging LLC / Pretium Finance, Inc.,
11.5%, 4/1/16 540,000
500,000 CCC+/Caa2 Reynolds Group Issuer, Inc., 9.0%, 4/15/19 535,000
475,000 CCC+/Caa2 Reynolds Group Issuer, Inc., 9.875%, 8/15/19 525,469
---------------
$ 2,216,076
---------------------------------------------------------------------------------------------------------
Paper Products -- 1.8%
200,000 CCC+/B3 Appvion, Inc., 11.25%, 12/15/15 $ 227,000
580,000 B-/Caa2 Exopack Holdings Corp., 10.0%, 6/1/18 626,400
186,000 B+/B1 Grupo Papelero Scribe SA de CV, 8.875%,
4/7/20 (144A) 181,815
344,000 B/B3 Mercer International, Inc., 9.5%, 12/1/17 373,240
840,000 BB-/Ba3 Resolute Forest Products, Inc., 5.875%,
5/15/23 (144A) 764,400
545,000 BB/Ba2 Sappi Papier Holding GmbH, 8.375%,
6/15/19 (144A) 576,338
The accompanying notes are an integral part of these financial statements.
30 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Paper Products -- (continued)
255,000 B-/Caa1 Unifrax I LLC / Unifrax Holding Co., 7.5%,
2/15/19 (144A) $ 257,550
---------------
$ 3,006,743
---------------------------------------------------------------------------------------------------------
Precious Metals & Minerals -- 0.3%
500,000 BB-/Ba3 ALROSA Finance SA, 8.875%, 11/17/14 (144A) $ 537,000
---------------------------------------------------------------------------------------------------------
Steel -- 4.3%
750,000 B/Caa1 AM Castle & Co., 12.75%, 12/15/16 $ 847,500
250,000 B+/B3 APERAM, 7.375%, 4/1/16 (144A) 257,500
315,000 B/Caa1 Atkore International, Inc., 9.875%, 1/1/18 340,200
450,000(c) B/B3 Essar Steel Algoma, Inc., 9.375%, 3/15/15 (144A) 432,000
950,000 CCC/Caa2 Essar Steel Algoma, Inc., 9.875%, 6/15/15 (144A) 745,750
250,000 B+/B1 Evraz Group SA, 9.5%, 4/24/18 (144A) 274,375
900,000 B/Caa1 Ferrexpo Finance Plc, 7.875%, 4/7/16 (144A) 867,375
900,000 NR/Caa1 Metinvest BV, 8.75%, 2/14/18 (144A) 812,250
600,000 NR/Caa1 Metinvest BV, 10.25%, 5/20/15 (144A) 600,000
585,000 B/B2 Optima Specialty Steel, Inc., 12.5%,
12/15/16 (144A) 643,500
750,000 B-/B3 Permian Holdings, Inc., 10.5%, 1/15/18 (144A) 740,625
750,000 CCC+/NR Ryerson, Inc., 9.0%, 10/15/17 783,750
---------------
$ 7,344,825
---------------
Total Materials $ 20,645,711
---------------------------------------------------------------------------------------------------------
MEDIA -- 5.4%
Advertising -- 0.7%
1,100,000 B-/B3 Good Sam Enterprises LLC, 11.5%, 12/1/16 $ 1,199,000
---------------------------------------------------------------------------------------------------------
Broadcasting -- 2.2%
400,000 CCC+/Caa2 Intelsat Luxembourg SA, 7.75%, 6/1/21 (144A) $ 422,000
EUR 150,000 B+/B1 Nara Cable Funding II, Ltd., 8.5%, 3/1/20 (144A) 235,421
200,000 B+/B1 Nara Cable Funding, Ltd., 8.875%,
12/1/18 (144A) 213,500
1,655,000 B/B3 Townsquare Radio LLC / Townsquare Radio,
Inc., 9.0%, 4/1/19 (144A) 1,770,850
990,000 CCC+/Caa1 Truven Health Analytics, Inc., 10.625%, 6/1/20 1,122,412
---------------
$ 3,764,183
---------------------------------------------------------------------------------------------------------
Cable -- 0.2%
EUR 200,000 B+/B1 Nara Cable Funding, Ltd., 8.875%,
12/1/18 (144A) $ 292,832
---------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 1.6%
1,710,000 CCC+/Caa1 AMC Entertainment, Inc., 9.75%, 12/1/20 $ 1,953,675
600,000 B/B2 Gibson Brands, Inc., 8.875%, 8/1/18 (144A) 627,000
200,000 CCC+/Caa1 Production Resource Group, Inc., 8.875%, 5/1/19 150,000
---------------
$ 2,730,675
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 31
Schedule of Investments | 10/31/13 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Publishing -- 0.7%
855,000 BB/Ba1 Gannett Co., Inc., 6.375%, 10/15/23 (144A) $ 902,025
245,000 B-/B3 Interactive Data Corp., 10.25%, 8/1/18 270,725
$ 1,172,750
---------------
Total Media $ 9,159,440
---------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.7%
Biotechnology -- 0.7%
300,000 B/B3 ConvaTec Healthcare E SA, 10.5%,
12/15/18 (144A) $ 339,750
1,043,000 B/Caa2 Lantheus Medical Imaging, Inc., 9.75%, 5/15/17 938,700
---------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 1,278,450
---------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.4%
Diversified REIT's -- 0.1%
200,000 B/Ba3 CNL Lifestyle Properties, Inc., 7.25%, 4/15/19 $ 208,000
---------------------------------------------------------------------------------------------------------
Real Estate Operating Companies -- 0.3%
410,000 CCC+/NR IRSA Inversiones y Representaciones SA,
8.5%, 2/2/17 (144A) $ 401,800
---------------
Total Real Estate $ 609,800
---------------------------------------------------------------------------------------------------------
RETAILING -- 0.6%
Department Stores -- 0.6%
625,000 B/NR Grupo Famsa SAB de CV, 7.25%, 6/1/20 (144A) $ 625,000
350,000 CCC+/Caa2 Neiman Marcus Group, Inc., 8.0%,
10/15/21 (144A) 358,313
---------------
Total Retailing $ 983,313
---------------------------------------------------------------------------------------------------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT -- 0.3%
Semiconductors -- 0.3%
500,000 B/B2 Advanced Micro Devices, Inc., 7.5%, 8/15/22 $ 485,000
---------------
Total Semiconductors &
Semiconductor Equipment $ 485,000
---------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.3%
Application Software -- 0.3%
415,000 B-/B3 Interface Security Systems Holdings, Inc. /
Interface Security Systems LLC, 9.25%,
1/15/18 (144A) $ 435,750
---------------------------------------------------------------------------------------------------------
Data Processing & Outsourced
Services -- 0.4%
404,000 B-/Caa1 First Data Corp., 8.25%, 1/15/21 (144A) $ 430,260
250,000 B-/Caa1 First Data Corp., 10.625%, 6/15/21 (144A) 268,437
---------------
$ 698,697
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Systems Software -- 0.6%
1,064,473(f)(g) NR/NR Pegasus Solutions, Inc., 13.0%, 4/15/14 (144A) $ 989,960
---------------
Total Software & Services $ 2,124,407
---------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.4%
Integrated Telecommunication Services -- 0.7%
388,000 CCC+/Caa1 Cincinnati Bell, Inc., 8.75%, 3/15/18 $ 411,280
300,000 BB-/Ba2 Frontier Communications Corp., 8.75%, 4/15/22 342,750
350,000 NR/WR PAETEC Holding Corp., 9.875%, 12/1/18 392,000
---------------
$ 1,146,030
---------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.7%
300,000 NR/Caa1 Digicel Group, Ltd., 10.5%, 4/15/18 (144A) $ 324,000
750,000 CCC/Caa2 NII Capital Corp., 10.0%, 8/15/16 585,000
250,000 NR/NR Unison Ground Lease Funding LLC, 5.78%,
3/15/20 (144A) 241,655
1,115,000 BB/Ba3 Vimpel Communications Via VIP Finance
Ireland, Ltd., OJSC, 9.125%, 4/30/18 (144A) 1,301,762
RUB 14,400,000 BB/Ba3 VimpelCom Holdings BV, 9.0%, 2/13/18 (144A) 453,183
---------------
$ 2,905,600
---------------
Total Telecommunication Services $ 4,051,630
---------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 3.8%
Airlines -- 0.8%
1,000,000 B-/NR Gol Finance, 9.25%, 7/20/20 (144A) $ 892,500
500,000 BB-/NR TAM Capital 3, Inc., 8.375%, 6/3/21 (144A) 515,000
---------------
$ 1,407,500
---------------------------------------------------------------------------------------------------------
Airport Services -- 0.3%
590,960 CCC+/B3 Aeropuertos Argentina 2000 SA, 10.75%,
12/1/20 (144A) $ 585,050
---------------------------------------------------------------------------------------------------------
Highways & Railtracks -- 0.2%
MXN 4,500,000 BBB/NR Red de Carreteras de Occidente SAPIB de
CV, 9.0%, 6/10/28 (144A) $ 303,672
---------------------------------------------------------------------------------------------------------
Marine -- 0.6%
500,000 BB-/NR Far East Capital, Ltd. SA, 8.0%, 5/2/18 (144A) $ 452,500
525,000 B+/B3 Navios South American Logistics, Inc. / Navios
Logistics Finance U.S., Inc., 9.25%, 4/15/19 568,313
---------------
$ 1,020,813
---------------------------------------------------------------------------------------------------------
Railroads -- 0.2%
310,254(f) CCC/Caa3 Florida East Coast Holdings Corp., 10.5%, 8/1/17 $ 322,664
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 33
Schedule of Investments | 10/31/13 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Trucking -- 1.7%
650,000 BB-/Ba3 Aeropuertos Dominicanos Siglo XXI SA, 9.25%,
11/13/19 (144A) $ 643,500
1,000,000 B-/B2 Jack Cooper Holdings Corp., 9.25%,
6/1/20 (144A) 1,070,000
425,000 B+/B3 Swift Services Holdings, Inc., 10.0%, 11/15/18 476,000
- 550,000 B-/WR Syncreon Global Ireland, Ltd., 9.5%,
5/1/18 (144A) 598,125
---------------
$ 2,787,625
---------------
Total Transportation $ 6,427,324
---------------------------------------------------------------------------------------------------------
UTILITIES -- 1.9%
Electric Utilities -- 1.3%
750,000 CCC/NR Cia de Energia Electrica en Alta Tension
Transener SA, 9.75%, 8/15/21 (144A) $ 450,000
625,000 NR/Caa1 DTEK Finance Plc, 7.875%, 4/4/18 (144A) 562,500
419,000 NR/Caa3 Empresa Distrbuidora Y Comercializadora Norte,
9.75%, 10/25/22 (144A) 268,160
460,000(b) NR/Ba1 Enel S.p.A., 8.75%, 9/24/73 (144A) 498,318
225,000 BBB-/Ba1 PNM Resources, Inc., 9.25%, 5/15/15 250,875
240,000 CCC-/Caa3 Texas Competitive Electric Holdings Co.,
LLC / TCEH Finance, Inc., 11.5%, 10/1/20 (144A) 171,000
---------------
$ 2,200,853
---------------------------------------------------------------------------------------------------------
Gas Utilities -- 0.6%
1,135,000 CCC+/B3 Transportadora de Gas del Sur SA, 7.875%,
5/14/17 (144A) $ 1,075,413
---------------
Total Utilities $ 3,276,266
---------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES
(Cost $164,626,708) $ 166,742,405
---------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS
& NOTES -- 2.7% of Net Assets
DIVERSIFIED FINANCIALS -- 0.1%
Asset Management & Custody Banks -- 0.1%
120,000 BBB/NR Apollo Investment Corp., 5.75%, 1/15/16 $ 127,050
---------------
Total Diversified Financials $ 127,050
---------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.0%
Health Care Equipment & Services -- 0.7%
1,040,000(e) B+/NR Hologic, Inc., 2.0%, 12/15/37 $ 1,220,700
---------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.3%
405,000 B/NR LifePoint Hospitals, Inc., 3.5%, 5/15/14 $ 437,653
---------------------------------------------------------------------------------------------------------
Health Care Services -- 0.0%+
15,000 B+/B2 Omnicare, Inc., 3.25%, 12/15/35 $ 15,947
---------------
Total Health Care Equipment & Services $ 1,674,300
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
MATERIALS -- 1.0%
Diversified Chemicals -- 1.0%
1,900,000(j) B+/NR Hercules, Inc., 6.5%, 6/30/29 $ 1,653,000
---------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.0%+
100,000 BB/NR Vedanta Resources Jersey, Ltd., 5.5%, 7/13/16 $ 101,550
---------------
Total Materials $ 1,754,550
---------------------------------------------------------------------------------------------------------
MEDIA -- 0.4%
Movies & Entertainment -- 0.4%
659,000 B/NR Live Nation Entertainment, Inc., 2.875%, 7/15/27 $ 674,651
---------------
Total Media $ 674,651
---------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.1%
Biotechnology -- 0.1%
250,000 NR/NR Corsicanto, Ltd., 3.5%, 1/15/32 $ 172,344
---------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 172,344
---------------------------------------------------------------------------------------------------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT -- 0.1%
Semiconductors -- 0.1%
250,000 NR/NR ReneSola, Ltd., 4.125%, 3/15/18 (144A) $ 197,813
---------------
Total Semiconductors &
Semiconductor Equipment $ 197,813
---------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS & NOTES
(Cost $3,598,744) $ 4,600,708
---------------------------------------------------------------------------------------------------------
SOVEREIGN DEBT
OBLIGATIONS -- 2.6% of Net Assets
Argentina -- 0.2%
400,000 CCC+/NR Province of Salta Argentina, 9.5%, 3/16/22 (144A) $ 385,000
---------------------------------------------------------------------------------------------------------
Brazil -- 0.2%
BRL 750,000 BBB/Baa2 Brazilian Government International Bond,
10.25%, 1/10/28 $ 336,417
---------------------------------------------------------------------------------------------------------
Ghana -- 0.6%
GHS 600,000 NR/NR Ghana Government Bond, 19.24%, 5/30/16 $ 270,609
GHS 300,000 NR/NR Ghana Government Bond, 21.0%, 10/26/15 $ 139,109
GHS 150,000 NR/NR Ghana Government Bond, 26.0%, 6/5/17 $ 78,984
500,000 B/B1 Republic of Ghana, 7.875%, 8/7/23 (144A) 496,250
---------------
$ 984,952
---------------------------------------------------------------------------------------------------------
Mexico -- 0.5%
MXN 9,370,000 A-/Baa1 Mexican Bonos, 7.5%, 6/3/27 $ 41,951
MXN 9,370,000 A-/Baa1 Mexican Bonos, 7.75%, 11/13/42 714,005
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 35
Schedule of Investments | 10/31/13 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
---------------------------------------------------------------------------------------------------------
Mexico -- (continued)
MXN 299,351 A-/Baa1 Mexican Udibonos, 3.5%, 12/14/17 $ 25,167
---------------
$ 781,123
---------------------------------------------------------------------------------------------------------
Nigeria -- 0.6%
NGN 79,000,000 NR/NR Nigeria Government Bond, 16.0%, 6/29/19 $ 569,815
NGN 57,000,000(i) NR/NR Nigeria Treasury Bill, 0.0%, 2/6/14 347,522
NGN 28,000,000(i) NR/NR Nigeria Treasury Bill, 0.0%, 4/10/14 167,240
---------------
$ 1,084,577
---------------------------------------------------------------------------------------------------------
Ukraine -- 0.5%
100,000 B/Caa1 Ukraine Government International Bond,
6.75%, 11/14/17 (144A) $ 89,500
800,000 B/Caa1 Ukraine Government International Bond,
9.25%, 7/24/17 (144A) 765,000
---------------
$ 854,500
---------------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATIONS
(Cost $4,628,550) $ 4,426,569
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Shares
---------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.7% of Net Assets
DIVERSIFIED FINANCIALS -- 0.0%+
Other Diversified Financial Services -- 0.0%+
731(k) BTA Bank JSC (G.D.R.) (144A) $ 593
---------------
Total Diversified Financials $ 593
---------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.0%+
Systems Software -- 0.0%+
2,114(g)(k) Perseus Holding Corp. $ 5,285
---------------
Total Software & Services $ 5,285
---------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.7%
Air Freight & Logistics -- 0.5%
- 943(k) CEVA Holdings LLC $ 872,562
---------------------------------------------------------------------------------------------------------
Marine -- 0.2%
247,509(g)(k) Horizon Lines, Inc., Class A $ 314,336
---------------
Total Transportation $ 1,186,898
---------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,555,677) $ 1,192,776
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
---------------------------------------------------------------------------------------------------------
S&P/Moody's
Shares Ratings Value
---------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK --
0.3% of Net Assets
DIVERSIFIED FINANCIALS -- 0.3%
Other Diversified Financial Services -- 0.3%
470(d) Bank of America Corp., 7.25% $ 506,425
---------------
Total Diversified Financials $ 506,425
---------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $382,900) $ 506,425
---------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 4.2% of Net Assets
BANKS -- 0.3%
Diversified Banks -- 0.3%
500(b)(d) AgStar Financial Services ACA, 6.75% (144A) $ 499,500
---------------
Total Banks $ 499,500
---------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.6%
Other Diversified Financial Services -- 0.6%
40,675(b) GMAC Capital Trust I, 8.125% $ 1,092,530
---------------
Total Diversified Financials $ 1,092,530
---------------------------------------------------------------------------------------------------------
INSURANCE -- 3.2%
Reinsurance -- 3.2%
2,000,000(k) Altair Re $ 2,092,000
15,000(k) Lorenz Re, Ltd. 1,662,900
1,500,000(k) Pangaea Re 1,583,700
---------------
$ 5,338,600
---------------
Total Insurance $ 5,338,600
---------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.1%
Data Processing & Outsourced
Services -- 0.1%
1,110(g)(k) Perseus Holding Corp., 14.0% (144A) $ 91,020
---------------
Total Software & Services $ 91,020
---------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $6,433,996) $ 7,021,650
---------------------------------------------------------------------------------------------------------
RIGHT/WARRANT -- 0.0%+ of Net Assets
AUTOMOBILES & COMPONENTS -- 0.0%+
Auto Parts & Equipment -- 0.0%+
86(k) Lear Corp., Expires 11/9/14 $ 13,334
---------------
Total Automobiles & Components $ 13,334
---------------------------------------------------------------------------------------------------------
TOTAL RIGHT/WARRANT
(Cost $4,645) $ 13,334
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 37
Schedule of Investments | 10/31/13 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS --
1.3% -- of Net Assets
REPURCHASE AGREEMENT: 1.3%
2,140,000 Bank of Nova Scotia, 0.1%, dated 11/1/13,
repurchase price of $2,140,000 plus accrued
interest on 11/1/13 collateralized by the
following: $1,993,872 Federal National
Mortgage Association, 4.0%, 3/1/42-10/1/43
and $188,934 Freddie Mac Giant, 3.5%,
8/1/26-10/1/26. $ 2,140,000
----------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $2,140,000) $ 2,140,000
----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 138.8%
(Cost -- $231,203,004) (l) 234,056,910
----------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (38.8)% $ (65,403,329)
----------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHAREOWNERS -- 100.0% $ 168,653,581
==========================================================================================================
+ Amount rounds to less than 0.1%.
NR Security not rated by S&P or Moody's.
WR Rating withdrawn by either S&P or Moody's.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
October 31, 2013, the value of these securities amounted to
$124,996,345, or 74.1% of total net assets applicable to common
shareowners.
* Senior secured floating rate loan interests in which the Trust invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending plus a premium. These base lending rates
are generally (i) the lending rate offered by one or more major
European banks, such as LIBOR (London InterBank Offered Rate), (ii)
the prime rate offered by one or more major United States banks, (iii)
the certificate of deposit or (iv) other base lending rates used by
commercial lenders. The interest rate shown is the rate accruing at
October 31, 2013.
(a) Floating rate note. The rate shown is the coupon rate at October 31,
2013.
(b) The interest rate is subject to change periodically. The interest is
shown is the rate at October 31, 2013.
(c) Security is in default and is non income producing.
(d) Security is perpetual in nature and has no stated maturity date.
(e) Debt obligation initially issued at one coupon which converts to a
higher coupon at a specific date. The rate shown is the rate at
October 31, 2013.
(f) Payment in Kind (PIK) security which may pay interest in the form of
additional principal amount.
The accompanying notes are an integral part of these financial statements.
38 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
(g) Indicates a security that has been deemed illiquid. As of October 31,
2013 the aggregate cost of illiquid securities in the Trust's
portfolio was $5,155,425. As of that date, the aggregate value of
illiquid securities in the Trust's portfolio of $4,836,717 represented
2.9% of total net assets applicable to common shareowners.
(h) Security is valued using fair value methods (other than prices
supplied by independent pricing services). See Notes to Financial
Statements -- Note 1A.
(i) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(j) Security is priced as a unit.
(k) Non-income producing.
(l) At October 31, 2013, the net unrealized appreciation on investments
based on cost for federal tax purposes of $233,307,427 was as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 10,282,601
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (9,533,118)
----------------
Net unrealized appreciation $ 749,483
================
For financial reporting purposes net unrealized appreciation on investments was
$2,853,906 and cost of investments aggregated $231,203,004.
(m) Distributions of Investments by country of issue, as a percentage of
total investments in securities, is as follows:
United States 59.9%
Cayman Islands 11.0
Luxembourg 4.1
Ireland 3.6
Bermuda 3.6
Argentina 2.0
United Kingdom 1.9
Netherlands 1.8
Canada 1.8
Mexico 1.6
Brazil 1.2
Other (individually less than 1%) 7.5
------
100.0%
======
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended October 31, 2013 aggregated $38,280,959 and $39,896,130,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 39
Schedule of Investments | 10/31/13 (unaudited) (continued)
Glossary of Terms:
(G.D.R.) Global Depositary Receipt
Principal amounts are denominated in U.S. dollars unless otherwise noted.
BRL -- Brazilian Real
CAD -- Canadian Dollar
EUR -- Euro
GBP -- Great British Pound
GHS -- Ghanaian Cedis
MXN -- Mexican Peso
NGN -- Nigeria Naira
RUB -- Russian Rubles
Various inputs are used in determining the value of the Trust's investments.
These inputs are summarized in the three broad levels below.
Level 1 -- quoted prices in active markets for identical securities.
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 -- significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans are categorized as Level 2, and securities valued using fair
value methods (other than prices supplied by independent pricing services) as
level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
40 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
The following is a summary of the inputs used as of October 31, 2013, in valuing
the Trust's investments.
----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------
Asset Backed Securities -- 2,336,860 -- 2,336,860
Collateralized Mortgage Obligations -- 3,314,432 -- 3,314,432
Commercial Mortgage-Backed
Securities -- 527,359 -- 527,359
Senior Secured Floating Rate
Loan Interests -- 41,234,392 -- 41,234,392
Corporate Bonds & Notes
Reinsurance -- 35,007,602 2,963,550 37,971,152
Property & Casualty Insurance -- 82,336 3,421,927 3,504,263
All Other -- 125,266,990 -- 125,266,990
Convertible Bonds & Notes -- 4,600,708 -- 4,600,708
Sovereign Debt Obligations -- 4,426,569 -- 4,426,569
Common Stocks
Air Freight & Logistics -- 872,562 -- 872,562
Systems Software -- 5,285 -- 5,285
All Other 314,929 -- -- 314,929
Convertible Preferred Stock: 506,425 -- -- 506,425
Preferred Stocks
Reinsurance -- -- 5,338,600 5,338,600
Data Processing &
Outsourced Services -- 91,020 -- 91,020
All Other 1,592,030 -- -- 1,592,030
Right/Warrant 13,334 -- -- 13,334
Temporary Cash Investments
Repurchase Agreement -- 2,140,000 -- 2,140,000
----------------------------------------------------------------------------------------------
Total Investments in Securities $2,426,718 $219,906,115 $11,724,077 $234,056,910
==============================================================================================
Other Financial Instruments
Forward Foreign Currency
Contracts $ -- $ (111,516) $ -- $ (111,516)
----------------------------------------------------------------------------------------------
Total Other Financial Instruments $ -- $ (111,516) $ -- $ (111,516)
==============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 41
Schedule of Investments | 10/31/13 (unaudited) (continued)
The following is a reconciliation of assets valued using significant
unobservable inputs (level 3):
-------------------------------------------------------------------------------------------------------------------------------
Change in
Balance Realized Unrealized Accrued Transfers Transfers Balance
as of gain appreciation discounts/ in to out of as of
4/30/13 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* Level 3* 10/31/13
-------------------------------------------------------------------------------------------------------------------------------
Corporate Bonds
& Notes
Property &
Casualty
Insurance $3,754,107 $ -- $(332,179) $ -- $ -- $ -- $ -- $ -- $ 3,421,927
Reinsurance 2,588,700 -- 374,850 -- -- -- -- -- 2,963,550
Preferred Stocks
Reinsurance** 3,509,600 -- 329,000 1,500,000 -- -- -- -- 5,338,600
-------------------------------------------------------------------------------------------------------------------------------
Total $9,852,407 $ -- $ 371,671 $1,500,000 $ -- $ -- $ -- $ -- $11,724,077
===============================================================================================================================
* Transfers are calculated on the beginning of period value.
** Lorenz Re was a common stock at 4/30/13.
(1) Realized gain (loss) on these securities is included in the realized gain
(loss) from investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) from investments in the
Statement of Operations.
Net change in unrealized appreciation of Level 3 investments still held and
considered Level 3 at 10/31/13: $371,671.
The following table presents additional information about valuation techniques
and inputs used for investments that were measured at fair value and categorized
as Level 3 at October 31, 2013:
Fair Value Valuation Unobservable Value/
4/30/13 Technique(s) Input Range
===============================================================================================================
Corporate Bonds & Notes $2,963,550 Third Party Vendor Broker $113.49-126.12
Quote per bond
---------------------------------------------------------------------------------------------------------------
Corporate Bonds & Notes** $3,421,927 Market Yield premium 1.05%
Comparables
---------------------------------------------------------------------------------------------------------------
Preferred Stocks $5,338,600 Third Party Vendor Broker $1.046-110.86
Quote per share
---------------------------------------------------------------------------------------------------------------
** Fixed Income Trust Series: The significant unobservable input used in the
fair value measurement of corporate bonds and notes is yield premium.
Significant increases (decreases) in this input could result in a
significantly higher (lower) fair value measurement.
The accompanying notes are an integral part of these financial statements.
42 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
Statement of Assets and Liabilities | 10/31/13 (unaudited)
ASSETS:
Investments in securities, at value (cost $231,203,004) $234,056,910
Cash 112,680
Foreign currencies, at value(cost $539,231) 537,651
Receivables --
Investment securities sold 772,051
Interest receivable 3,895,378
Reinvestment of distributions 54,932
Prepaid expenses 61,575
----------------------------------------------------------------------------------
Total assets $239,491,177
----------------------------------------------------------------------------------
LIABILITIES:
Payables --
Notes payable $ 69,000,000
Investment securities purchased 1,385,490
Due to affiliates 170,387
Administration fee payable 54,828
Net unrealized depreciation on forward foreign currency contracts 111,516
Accrued expenses 115,375
----------------------------------------------------------------------------------
Total liabilities $ 70,837,596
----------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $194,038,775
Undistributed net investment income 1,283,844
Accumulated net realized loss on investments and foreign
currency transactions (29,413,909)
Net unrealized appreciation on investments 2,853,906
Net unrealized depreciation on forward foreign currency
contracts and other assets and liabilities denominated
in foreign currencies (109,035)
----------------------------------------------------------------------------------
Net assets applicable to common shareowners $168,653,581
----------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $168,653,581/8,302,343 common shares $ 20.31
==================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 43
Statement of Operations (unaudited)
For the Six Months Ended 10/31/13
INVESTMENT INCOME:
Interest $ 9,677,405
Dividends 68,486
Facility and other fees 114,157
----------------------------------------------------------------------------------------
Total Investment income $ 9,860,048
----------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,011,252
Administrative reimbursements 55,328
Transfer agent fees and expenses 2,468
Shareowner communication expense 4,450
Custodian fees 21,552
Registration fees 1,153
Professional fees 29,104
Printing expenses 9,786
Trustees' fees 3,312
Pricing fees 13,480
Miscellaneous 32,829
----------------------------------------------------------------------------------------
Net operating expenses $ 1,184,714
----------------------------------------------------------------------------------------
Interest expense $ 384,511
----------------------------------------------------------------------------------------
Net operating expenses and interest expense $ 1,569,225
----------------------------------------------------------------------------------------
Net investment income $ 8,290,823
----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on:
Investments $ (1,771,890)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (207,481) $ (1,979,371)
----------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ (1,571,467)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (1,375) $ (1,572,842)
----------------------------------------------------------------------------------------
Net loss on investments $ (3,552,213)
----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 4,738,610
========================================================================================
The accompanying notes are an integral part of these financial statements.
44 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------
Six Months
Ended
10/31/13 Year Ended
(unaudited) 4/30/13
----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 8,290,823 $ 18,526,936
Net realized gain (loss) on investments and foreign
currency transactions (1,979,371) 334,053
Change in unrealized appreciation (depreciation) on
investments and foreign currency transactions (1,572,842) 7,932,614
----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 4,738,610 $ 26,793,603
----------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income ($0.96 and $2.04 per
share, respectively) $ (7,963,782) $ (16,884,599)
----------------------------------------------------------------------------------------
Total distributions to common shareowners $ (7,963,782) $ (16,884,599)
----------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 232,667 $ 591,527
----------------------------------------------------------------------------------------
Net increase in net assets from Trust
share transactions $ 232,667 $ 591,527
----------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (2,992,505) $ 10,500,531
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period 171,646,086 161,145,555
----------------------------------------------------------------------------------------
End of period $168,653,581 $ 171,646,086
----------------------------------------------------------------------------------------
Undistributed net investment income $ 1,283,844 $ 956,803
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 45
Statement of Cash Flows (unaudited)
For the Six Months Ended October 31, 2013
Cash Flows From Operating Activities
Net increase in net assets resulting from operations $ 4,738,610
----------------------------------------------------------------------------------------------
Adjustments to reconcile Net Increase in net assets resulting from operations
to Net Cash and Foreign Currency provided by Operating Activities
Purchase of investments securities $ (313,485,480)
Proceeds from disposition of investment securities 316,049,163
Net accretion and amortization of discount/premium on corporate
debt obligations and short term investments (638,361)
Decrease in receivable for investments sold 837,708
Decrease in Interest and foreign tax reclaim receivable 173,529
Increase in prepaid expenses (61,564)
Increase in other assets 69,159
Decrease in accrued interest payable (3,700)
Decrease in payable for investments purchased (2,140,526)
Increase in due to affiliates (13,820)
Increase in administrative fee payable (4,593)
Decrease in accrued expenses (19,754)
Decrease in due to custodian (1,380,263)
Increase in reinvestment of distributions (11,339)
Change in unrealized depreciation of investments 1,571,467
Change in unrealized depreciation of foreign currency transactions 1,375
Net realized loss from investments 1,771,890
Net realized loss of foreign currency contracts and other foreign
denominated currencies 207,481
----------------------------------------------------------------------------------------------
Net cash and foreign currency provided by operating activities $ 7,660,982
----------------------------------------------------------------------------------------------
Cash flows Used Financing Activities:
Reinvestment of distributions $ 232,667
Cash dividends paid to common shareholders (7,963,782)
----------------------------------------------------------------------------------------------
Net cash flow used in financing activities $ (7,731,115)
----------------------------------------------------------------------------------------------
Cash and Foreign Currency
Beginning of the period $ 720,464
----------------------------------------------------------------------------------------------
End of period $ 650,331
==============================================================================================
Cash Flow Information
Cash paid for interest $ 446,861
----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
46 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Year
Ended Year Ended Ended Year Year
10/31/13 Ended 4/30/12 4/30/11 Ended Ended
(unaudited) 4/30/13 (Consolidated) (Consolidated) 4/30/10 4/30/09
------------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 20.70 $ 19.51 $ 21.01 $ 20.17 $ 13.94 $ 22.02
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 1.00 $ 2.24 $ 2.10 $ 2.03 $ 1.76 $ 2.10
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (0.43) 0.99 (1.64) 0.73 6.48 (7.67)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.57 $ 3.23 $ 0.46 $ 2.76 $ 8.24 $ (5.57)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income (0.96) (2.04) (1.96) (1.92) (1.69) (2.47)
Tax return of capital -- -- -- -- (0.32) (0.04)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.39) $ 1.19 $ (1.50) $ 0.84 $ 6.23 $ (8.08)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period(b) $ 20.31 $ 20.70 $ 19.51 $ 21.01 $ 20.17 $ 13.94
------------------------------------------------------------------------------------------------------------------------------------
Market value, end of period(b) $ 21.43 $ 21.82 $ 20.13 $ 21.95 $ 20.46 $ 13.23
====================================================================================================================================
Total return at market value(c) 2.91% 19.98% 1.35% 17.95% 73.25% (23.11)%
Ratios to average net assets
Net operating expenses 1.41%(d) 1.49% 1.48% 1.62% 1.39% 1.38%
Interest expense 0.45%(d) 0.48% 0.56% 0.58% 0.83% 1.14%
Total expenses 1.86%(d) 1.97% 2.04% 2.20% 2.22% 2.52%
Net investment income 9.85%(d) 11.26% 10.75% 10.02% 9.84% 12.27%
Portfolio turnover 17% 34% 24% 30% 24% 25%
Net assets, end of period (in thousands) $168,654 $171,646 $161,146 $172,881 $165,281 $ 114
The accompanying notes are an integral part of these financial statements.
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 47
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Year
Ended Year Ended Ended Year Year
10/31/13 Ended 4/30/12 4/30/11 Ended Ended
(unaudited) 4/30/13 (Consolidated) (Consolidated) 4/30/10 4/30/09
------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets before waivers and
reimbursements of expenses
Net operating expenses 1.41%(d) 1.49% 1.48% 1.64% 1.61% 1.68%
Interest expense 0.45%(d) 0.48% 0.56% 0.58% 0.83% 1.14%
Net expenses 1.86%(d) 1.97% 2.04% 2.22% 2.44% 2.82%
Net investment income 9.85%(d) 11.26% 10.75% 10.00% 9.62% 11.97%
====================================================================================================================================
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Net asset value and market value are published in Barron's on Saturday, The
Wall Street Journal on Monday and The New York Times on Monday and Saturday.
(c) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
market value on the last day of the periods reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Past
performance is not a guarantee of future results.
(d) Annualized.
The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for the Trust's common shares.
The accompanying notes are an integral part of these financial statements.
48 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
Notes to Financial Statements | 10/31/13 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Diversified High Income Trust (the Trust) was organized as a Delaware
statutory trust on January 30, 2007. Prior to commencing operations on May 30,
2007, the Trust had no operations other than matters relating to its
organization and registration as a diversified, closed-end management investment
company under the Investment Company Act of 1940, as amended. The investment
objective of the Trust is to provide a high level of current income and the
Trust may, as a secondary objective, also seek capital appreciation to the
extent that it is consistent with its investment objective.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the reporting
year. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Investments in loan
interests are valued in accordance with guidelines established by the Board
of Trustees at the mean between the last available bid and asked prices from
one or more brokers or dealers as obtained from Loan Pricing Corporation, an
independent pricing service. If price information is not available from Loan
Pricing Corporation, or if the price information is deemed to be unreliable,
price information will be obtained from an alternative loan interest pricing
service. If no reliable price quotes are available from either the primary
or alternative pricing service, broker quotes will be solicited.
Fixed-income securities with remaining maturities of more than sixty days
are valued at prices supplied by independent pricing services, which
consider such factors as market prices, market events, quotations from one
or more brokers, Treasury spreads, yields, maturities and ratings.
Valuations may be supplemented by dealers and other sources, as required.
Equity securities that have traded on an exchange are valued at the last
sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices. Short-term
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 49
fixed income securities with remaining maturities of sixty days or less
generally are valued at amortized cost. Shares of money market mutual funds
are valued at such funds' net asset value.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Trust's shares are determined as of
such times.
Securities or loan interests for which independent pricing services are
unable to supply prices or for which market prices and/or quotations are not
readily available or are considered to be unreliable are valued at the
direction or with the approval of the Valuation Committee using fair value
methods pursuant to procedures adopted by the Board of Trustees . The
Valuation Committee is comprised of certain members of the Board of
Trustees. Inputs used when applying fair value methods to value a security
may include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Trust may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Trust's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Trust's securities may differ significantly from exchange prices and
such difference could be material. Pioneer Investment Management, Inc.,
(PIM), the Trust's investment adviser, is responsible for monitoring
developments that may impact fair valued securities and for discussing and
assessing fair values on an ongoing basis, and at least quarterly, with the
Valuation Committee.
At October 31, 2013, one security was valued using fair value methods (in
addition to securities valued using prices supplied by independent pricing
services), representing 2.0% of net assets.
Discounts and premiums on debt securities are accreted or amortized,
respectively, daily, into interest income on an effective yield to maturity
basis with a corresponding increase or decrease in the cost basis of the
security. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
Interest income, including interest on income bearing cash accounts, is
recorded on an accrual basis, net of unrecoverable foreign taxes withheld at
the applicable country rates.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Trust becomes aware of the ex-dividend data in
the exercise of reasonable diligence.
50 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Trust are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the Statement of Operations from the
effects of changes in the market prices of those securities but are included
with the net realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Trust may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized gains or losses are recorded in
the Trust's financial statements. The Trust records realized gains and
losses at the time a portfolio hedge is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contracts and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 5).
D. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
October 31, 2013, the Trust did not accrue any interest and penalties with
respect to uncertain tax positions, which if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax returns filed
within the prior three years remain subject to examination by federal and
state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 51
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable to common and
preferred shareowners will be determined at the end of the current taxable
year. The tax character of distributions paid during the year ended April
30, 2013 was as follows:
----------------------------------------------------------------------------
2013
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $16,884,599
----------------------------------------------------------------------------
Total $16,884,599
============================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at April 30, 2013:
----------------------------------------------------------------------------
2013
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 2,655,775
Capital loss carryforward (27,137,926)
Unrealized appreciation 2,322,129
----------------------------------------------------------------------------
Total $ (22,160,022)
============================================================================
The difference between book-basis and tax-basis unrealized appreciation is
primarily attributable to the tax deferral of losses on wash sales, the
realization for tax purposes of unrealized gains on investments in passive
foreign investment companies, the book/tax difference in the accrual of
income on securities in default, the difference between book and tax
amortization methods for premiums and discounts on fixed income securities
and other temporary book/tax differences.
E. Risks
Information regarding the Trust's principal risks is contained in the
Trust's original offering prospectus, with additional information included
in the Trust's shareowner reports issued from time to time. Please refer to
those documents when considering the Trust's principal risks. At times, the
Trust's investments may represent industries or industry sectors that are
interrelated or have common risks, making the Trust more susceptible to any
economic, political, or regulatory developments or other risks affecting
those industries and sectors.
The Trust invests in below investment grade (high yield) debt securities,
floating rate loans and event-linked bonds sometimes referred to as
"catastrophe" bonds or "insurance-linked" bonds. The Trust may invest in
52 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
securities and other obligations of any credit quality, including those that
are rated below investment grade, or are unrated but are determined by the
investment adviser to be of equivalent credit quality. Below investment
grade securities are commonly referred to as "junk bonds" and are considered
speculative with respect to the issuer's capacity to pay interest and repay
principal. Below investment grade securities, including floating rate loans,
involve greater risk of loss, are subject to greater price volatility, and
are less liquid and more difficult to value, especially during periods of
economic uncertainty or change, than higher rated debt securities. The Trust
may invest in securities of issuers that are in default or that are in
bankruptcy. The value of collateral, if any, securing a floating rate loan
can decline or may be insufficient to meet the issuer's obligations or may
be difficult to liquidate. No active trading market may exist for many
floating rate loans, and many loans are subject to restrictions on resale.
Any secondary market may be subject to irregular trading activity and
extended settlement periods .Additionally, the Trust may invest in
"event-linked" bonds, which sometimes are referred to as "insurance-linked"
or "catastrophe" bonds. The return of principal and the payment of interest
on event-linked bonds are contingent on the nonoccurrence of a pre-defined
"trigger" event, such as a hurricane or an earthquake of a specific
magnitude. In addition to the specified trigger events, event-linked bonds
may expose the Trust to other risks, including but not limited to issuer
(credit) default, adverse regulatory or jurisdictional interpretations and
adverse tax consequences.
The Trust's investments in certain foreign markets or countries with limited
The Trust's investments in certain foreign markets or countries with limited
developing markets may subject the Trust to a greater degree of risk than
would investments in a developed market. These risks include disruptive
political or economic conditions and the possible imposition of adverse
governmental laws or currency exchange restrictions.
F. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value
of the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Trust's custodian or a sub-custodian of the Trust. PIM is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
G. Automatic Dividend Reinvestment Plan
All common shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 53
distributions (collectively, dividends) in full and fractional common shares
of the Trust in lieu of cash. Shareowners may elect not to participate in
the Plan. Shareowners not participating in the Plan receive all dividends
and capital gain distributions in cash. Participation in the Plan is
completely voluntary and may be terminated or resumed at any time without
penalty by notifying American Stock Transfer & Trust Company, the agent for
shareowners in administering the Plan (the Plan Agent), in writing prior to
any dividend record date; otherwise such termination or resumption will be
effective with respect to any subsequently declared dividend or other
distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate in
the Plan on the shareowner's behalf. If the firm or nominee does not offer
the Plan, dividends will be paid in cash to the shareowner of record. A firm
or nominee may reinvest a shareowner's cash dividends in common shares of
the Trust on terms that differ from the terms of the Plan.
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional unissued
but authorized common shares from the Trust or (ii) by purchase of
outstanding common shares on the New York Stock Exchange or elsewhere. If,
on the payment date for any dividend, the net asset value per common share
is equal to or less than the market price per share plus estimated brokerage
trading fees (market premium), the Plan Agent will invest the dividend
amount in newly issued common shares. The number of newly issued common
shares to be credited to each account will be determined by dividing the
dollar amount of the dividend by the net asset value per common share on the
date the shares are issued, provided that the maximum discount from the then
current market price per share on the date of issuance does not exceed 5%.
If, on the payment date for any dividend, the net asset value per common
share is greater than the market value (market discount), the Plan Agent
will invest the dividend amount in common shares acquired in open-market
purchases. There are no brokerage charges with respect to newly issued
common shares. However, each participant will pay a pro rata share of
brokerage trading fees incurred with respect to the Plan Agent's open-market
purchases. Participating in the Plan does not relieve shareowners from any
federal, state or local taxes which may be due on dividends paid in any
taxable year. Shareowners holding Plan shares in a brokerage account may not
be able to transfer the shares to another broker and continue to participate
in the Plan.
54 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit), manages
the Trust's portfolio. Management fees payable under the Trust's Advisory
Agreement with PIM are calculated daily at the annual rate of 0.85% of the
Trust's average daily managed assets. "Managed assets" means (a) the total
assets of the Trust, including any form of investment leverage, minus (b) all
accrued liabilities incurred in the normal course of operations, which shall not
include any liabilities or obligations attributable to investment leverage
obtained through (i) indebtedness of any type (including, without limitation,
borrowing through a credit facility or the issuance of debt securities), (ii)
the issuance of preferred stock or other similar preference securities, and/or
(iii) any other means. For the period ended October 31, 2013, the net management
fee was 0.85% of the Trust's average daily managed assets, which was equivalent
to 1.20 % of the Trust's average daily net assets.
In addition, under PIM's management and administration agreements, certain other
services and costs are paid by PIM and reimbursed by the Trust. At October 31,
2013 $225,215 was payable to PIM related to management costs, administrative
costs and certain other reimbursements and is included in "Due to affiliates"
and "Administration fee" on the Statement of Assets and Liabilities.
3. Transfer Agents
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly owned
indirect subsidiary of UniCredit, through a sub-transfer agency agreement with
American Stock Transfer & Trust Company, provides substantially all transfer
agent and shareowner services related to the Trust at negotiated rates.
In addition, the Trust reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareowner communications activities such as proxy and
statement mailings and outgoing phone calls.
4. Expense Offset Arrangement
The Trust has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Trust's custodian expenses. For the six months ended October 31, 2013, the
Trust expenses were not reduced under such arrangement.
5. Forward Foreign Currency Contracts
At October 31, 2013, the Trust had entered into various forward foreign currency
contracts that obligate the Trust to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 55
settlement date of a forward foreign currency contract, the Trust may close out
such contract by entering into an offsetting contract. The average value of
contracts open during the six months ended October 31, 2013 was $8,387,958.
As of October 31, 2013, outstanding forward foreign currency contracts were as
follows:
--------------------------------------------------------------------------------------------
Net
Contracts In Unrealized
to Receive/ Exchange Settlement Appreciation/
Currency (Deliver) For USD Date Value (Depreciation)
--------------------------------------------------------------------------------------------
EUR
(European Dollar) (450,000) (595,143) 11/06/13 $ (611,486) $ (16,343)
EUR
(European Dollar) (3,540,000) (4,772,554) 11/06/13 (4,810,358) (37,804)
EUR
(European Dollar) (800,000) (1,104,432) 4/24/14 (1,087,412) 17,021
EUR
(European Dollar) (1,000,000) (1,306,588) 4/25/14 (1,359,268) (52,680)
GBP
(Pound Sterling) (460,000) (710,338) 11/15/13 (738,191) (27,853)
NGN
(Nigerian Naira) 28,000,000 167,174 12/05/13 174,138 6,964
PHP
(Philippine Peso) 25,000,000 579,777 12/27/13 578,956 (821)
--------------------------------------------------------------------------------------------
Total $(111,516)
============================================================================================
6. Assets and Liabilities Offsetting
Financial instruments subject to an enforceable master netting agreement have
been offset on the Statements of Assets and Liabilities. The following charts
show gross assets and liabilities as of October 31, 2013.
Assets:
------------------------------------------------------------------------------------------------
Gross Gross Amounts
Amounts Net Not Offset in the
Offset Amounts of Statement of
in the Assets Assets and Liabilities
Gross Statement Presented --------------------------
Amounts of of In the Cash
Recognized Assets and Assets and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
------------------------------------------------------------------------------------------------
Forward
Foreign
Currency
Contracts $ 23,985 $ (23,985) $ -- $ -- $ -- $ --
------------------------------------------------------------------------------------------------
Repurchase
agreements $2,140,000 $ -- $ 2,140,000 $ (2,140,000)* $ -- $ --
------------------------------------------------------------------------------------------------
$2,163,985 $ (23,985) $ 2,140,000 $ (2,140,000)* $ -- $ --
------------------------------------------------------------------------------------------------
* The actual collateral pledged is more than the amount reported due to
over-collateralization.
56 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
Liabilities:
------------------------------------------------------------------------------------------------
Gross Gross Amounts
Amounts Net Not Offset in the
Offset Amounts of Statement of
in the Assets Assets and Liabilities
Gross Statement Presented --------------------------
Amounts of of In the Cash
Recognized Assets and Assets and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
------------------------------------------------------------------------------------------------
Forward
Foreign
Currency
Contracts $135,501 $ (23,985) $111,516 $ -- $ -- $111,516
------------------------------------------------------------------------------------------------
Repurchase
agreements $ -- $ -- $ -- $ -- $ -- $ --
------------------------------------------------------------------------------------------------
$135,501 $ (23,985) $111,516 $ -- $ -- $111,516
------------------------------------------------------------------------------------------------
7. Loan Agreement
Effective February 1, 2013, the Trust extended the maturity of its existing
Revolving Credit Facility (the Credit Agreement) with the Bank of Nova Scotia;
the amount of the facility remains at $75 million.
At October 31, 2013, the Trust had a borrowing outstanding under the Credit
Agreement totaling $69,000,000. The interest rate charged at October 31, 2013
was 1.078%. During the six months ended October 31, 2013, the average daily
balance was $69,000,000 at a weighted average interest rate of 1.089%. With
respect to the loan, interest expense of $384,511 is included in the Statement
of Operations.
The Trust is required to maintain 300% asset coverage with respect to amounts
outstanding under the Credit Agreement. Asset coverage is calculated by
subtracting the Trust's total liabilities, not including any bank loans and
senior securities, from the Trust's total assets and dividing such amount by the
principal amount of the borrowings outstanding. As of the date indicated below,
the Trust's debt outstanding and asset coverage were as follows:
--------------------------------------------------------------------------------
Total Amount Asset coverage
of Debt Per $1,000 of
Date Outstanding Indebtedness
--------------------------------------------------------------------------------
October 31, 2013 $69,000,000 $3,444
================================================================================
8. Unfunded Loan Commitments
As of October 31, 2013, the Trust had no unfunded loan commitments. The Trust
had the following partially funded loan commitment outstanding as of October 31,
2013:
--------------------------------------------------------------------------------
Unrealized
Borrower Par Cost Value Appreciation
--------------------------------------------------------------------------------
Rural / Metro Corp. $294,319 $215,763 $217,791 $2,028
--------------------------------------------------------------------------------
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 57
9. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the periods ended
October 31, 2013 and April 30, 2013 were as follows:
--------------------------------------------------------------------------------
10/31/13 4/30/13
--------------------------------------------------------------------------------
Shares outstanding at beginning of period 8,290,790 8,261,236
Reinvestment of distributions 11,553 29,554
--------------------------------------------------------------------------------
Shares outstanding at end of period 8,302,343 8,290,790
================================================================================
10. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of October 31, 2013 were as follows:
----------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives 2013 Liabilities Derivatives 2013
Hedging Instruments ------------------------ ------------------------------
Under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
----------------------------------------------------------------------------------
Forward Foreign Net unrealized $ -- Net unrealized $111,516
Currency Contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts currency contracts
----------------------------------------------------------------------------------
Total $ -- $111,516
----------------------------------------------------------------------------------
The effect of derivative instruments on the Statement of Operations for the six
months ended October 31, 2013 was as follows:
-------------------------------------------------------------------------------------------------
Change in
Derivatives Not Realized Unrealized
Accounted for as Gain or Appreciation or
Hedging Instruments (Loss) on (Depreciation)
Under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
-------------------------------------------------------------------------------------------------
Forward Foreign Net realized gain (loss) on $(199,072)
Currency contracts forward foreign currency
contracts and other assets
and liabilities denominated
in foreign currencies
-------------------------------------------------------------------------------------------------
Forward Foreign Change in net unrealized $(5,471)
Currency Contracts appreciation (depreciation) on
forward foreign currency
contracts and other assets
and liabilities denominated in
foreign currencies
-------------------------------------------------------------------------------------------------
58 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
11. Subsequent Events
The Board of Trustees of the Trust declared on November 5, 2013 a dividend from
undistributed net investment income of $0.16 per common share payable November
29, 2013, to shareowners of record on November 18, 2013.
ADDITIONAL INFORMATION (unaudited)
During the period, there have been no material changes in the Trust's investment
objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust which has not been
approved by the shareowners. During the period, there have been no changes in
the principal risk factors associated with investment in the Trust. There were
no changes in the persons who are primarily responsible for the day-to-day
management of the Trust's portfolio.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its common
shares in the open market.
Results of Shareholder Meeting (unaudited)
At the annual meeting of shareowners held on September 24, 2013, shareowners of
Pioneer Diversified High Income Trust were asked to consider the proposals
described below. A report of the total votes cast by the Trust's shareholders
follows:
Proposal 1 -- To elect Class III Trustee.
--------------------------------------------------------------------------------
Nominee For Withheld
--------------------------------------------------------------------------------
Daniel K. Kingsbury 7,388,514.000 234,965.000
David R. Bock 7,387,228.000 236,251.000
Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13 59
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman John F. Cogan, Jr., President*
David R. Bock Daniel K. Kingsbury, Executive
Benjamin M. Friedman Vice President
Margaret B.W. Graham Mark E. Bradley, Treasurer**
Daniel K. Kingsbury Christopher J. Kelley, Secretary
Marguerite A. Piret
Investment Adviser and Administrator Pioneer
Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Legal Counsel
Bingham McCutchen LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc
Shareowner Services and Transfer Agent
American Stock Transfer & Trust Company
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at http://www.sec.gov.
* Chief Executive Officer of the Trust
** Chief Financial and Accounting Officer of the Trust
60 Pioneer Diversified High Income Trust | Semiannual Report | 10/31/13
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15(th) Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
web site us.pioneerinvestments.com.
The Trust files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2013 Pioneer Investments 21398-06-1213
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Funds audit committee of the Board of Trustees has considered whether
the provision of non-audit services that were rendered to the Affiliates
(as defined) that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to semi-annual reporting
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to semi-annual reporting
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to semi-annual reporting
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Diversified High Income Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date December 30, 2013
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date December 30, 2013
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 30, 2013
* Print the name and title of each signing officer under his or her signature.