Pioneer Floating Rate Fund T2 2024 Market Performance and Commentary

Morningstar LSTA US Credit Performance Index provides broad and comprehensive total return metrics for the US syndicated term loan universe. Indices are unmanaged and their returns assume reinvestment of dividends and do not reflect fees or expenses. It is not possible to invest directly in an index.

The portfolio is actively managed and the current information is subject to change. The sectors/holdings discussed should not be considered recommendations to buy or sell securities.

Glossary of frequently used terms

Advanced Repayment Obligation (usually only applies to municipal bond funds) – A bond issued to retire or prepay another bond outstanding more than 90 days before the original bond’s maturity date.

Base Point – A unit of measure used to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% (1/100 of a percent) or 0.0001 in decimal form. In most cases, it refers to changes in interest rates and bond yields.

Beta – measures an investment’s sensitivity to market movements relative to an index. A beta of 1 indicates that the security’s price has moved with the market. A beta of less than 1 means that the security has been less volatile than the market. A beta greater than 1 indicates that the security’s price has been more volatile than the market.

Breakeven(s) – The difference(s) between the yield on a nominal bond and an inflation-linked bond with the same maturity.

Transport– The cost or benefit of owning that asset.

Correlation – The extent to which assets or asset class prices have moved relative to each other. The correlation ranges from -1 (always moving in opposite directions) to 0 (absolutely independent) to 1 (always moving together).

Credit margins (or spread) – Yield differences between Treasuries and other types of fixed income securities with similar maturities. Credit risk transfer securities– Securities that transfer some of the risk associated with credit losses in pools of conventional residential mortgage loans from the government-sponsored entities (GSEs), Fannie Mae and Freddie Mac, to the private sector.

Dot Plot – The Fed’s “dot” chart/projection is a quarterly chart that summarizes the outlook for the federal funds rate for each of the FOMC members. Duration – A measure of the price sensitivity (principal value) of a fixed income investment to a change in interest rates, expressed as a number of years.

Dividend yield – It refers to a stock’s annual dividend payments to shareholders, expressed as a percentage of the stock’s current price. Excess return – is the investment performance generated by a security or portfolio that exceeds the “risk-free” performance of a security generally perceived by the market to be risk-free, such as a certificate of deposit or a government bond.

First Link– The first debt paid when a borrower defaults on the property or asset used as collateral. First liens have priority of payment over all other liens. (For example, a person who holds a first mortgage on a property has a first lien.)

Floor– An agreed rate in the lower range of rates associated with a floating rate product (used in derivative contracts and loan agreements). nuggets of gold – An economy that is not too hot or too cold, in other words supports moderate economic growth and has low inflation, which allows for a market-friendly monetary policy.

hedge– An investment used to help reduce the risk of adverse movements in the price of an asset. Normally, a hedge consists of taking an offsetting position in a related security to help protect against a rapid price change, such as purchasing a put or call option contract ) on a share in which the investor already owns shares.

Insurance-related securities – Investments sponsored by property and casualty insurers to help mitigate the risk of having to pay claims from natural disasters.

Liquidity premium‒ Any form of additional compensation that is necessary to encourage investment in assets that cannot be readily and efficiently converted into cash at fair market value.

Interest rate coverage ratio‒ A ratio of debt to profitability used to determine how easily a company can pay interest on outstanding debt. Credit margin – Interest rates above LIBOR charged to borrowers by banks.

Loan-to-value ratio (LTV).‒ A measure that compares the amount of a mortgage to the appraised value of the property. The higher the down payment, the lower the LTV rate.

Ratio of municipal yield to treasury (municipal bond funds only) – A measure of municipal bond valuation. The higher the municipal-treasury ratio, the more attractive municipalities are to treasuries.

Marking to market ‒ It involves recording the price or value of a security, portfolio or account to reflect current market value rather than book value.

Prepayment risk – The risk involved in the premature return of principal on a fixed income security. When the principal is returned early, future interest payments will not be paid on that portion of the principal.

Actual yield – The return on an investment once inflation is taken into account.

Reinsurance — coverage provided to insurance companies.

Online rate – The premium/coupon paid by the reinsurance company for coverage.

Standard deviation – A statistical measure of a portfolio’s historical volatility; a lower standard deviation historically indicates lower volatility. Sharpe ratio – A measure of risk-adjusted return that describes how much excess return an investor receives in exchange for the volatility of holding a riskier asset.

Spread sectors ‒ Non-government sectors of the fixed income market that offer higher returns with higher risk than government investments.

Tail risk – The additional risk that an asset or portfolio of assets will move more than 3 standard deviations from the current price over and above the risk of a normal distribution.

Fiscal equivalent return ‒ The pre-tax yield that a taxable bond must have in order for its yield to equal that of a tax-free municipal bond. Subordinated Capital/Financing – The financing ranked behind that held by secured creditors in terms of repayment order. Subordinated financing can be a combination of debt and equity instruments. Equity components may include options and warrants. Debt components may include asset-backed securities.

Yield curve (curve)- A yield curve is a line that shows the interest rates, at a fixed point in time, of bonds of equal credit quality but with different maturity dates.

Yield to Maturity – The expected total return on a bond if the bond is held until the end of its life.

Yield to Worst (YTW) – The lowest potential yield that can be received on a bond without the issuer effectively defaulting.

The views expressed are those of Amundi US and are current as of June 30, 2024. These views may change at any time based on market or other conditions, and Amundi US disclaims any responsibility to update such views. These opinions cannot be relied upon as investment advice, and because investment decisions for strategies are based on many factors, they cannot be relied upon as an indication of intent to trade on behalf of any strategy or portfolio.

A word about risk

Market prices of securities may rise or fall, sometimes rapidly or unpredictably, due to general market conditions, such as actual or perceived adverse economic, political or regulatory conditions, recessions, inflation, changes in interest rates or currency, lack of liquidity in bond markets, the spread of infectious diseases or other public health problems, or negative investor sentiment. Floating rate investments are debt securities and other instruments with interest rates that periodically adjust or “float” based on a specified interest rate or other reference. Debt securities rated below investment grade are commonly referred to as “junk bonds” and are considered speculative. Debt securities below investment grade carry a greater risk of loss, are subject to greater price volatility and are less liquid, particularly during periods of economic uncertainty or change, than higher rated debt securities. The Fund may invest in high-yield securities of any rating, including securities that are in default at the time of purchase. Investments in the Fund are subject to possible loss due to the financial failure of the issuers of the underlying securities and their inability to honor their debt obligations. Floating rate securities are generally less sensitive to interest rate changes, but may decline in value if interest rates do not rise as much or as quickly as prevailing interest rates. Unlike fixed rate securities, floating rate securities generally will not increase in value if interest rates fall. Changes in interest rates will also affect the amount of interest income the Fund earns on its variable rate investments. Investing in foreign and/or emerging market securities involves risks related to interest rates, foreign exchange rates, economic and political conditions.

Before investing, consider the product’s investment objectives, risks, fees and expenses. Contact your financial professional or Amundi Asset Management US for a prospectus or summary prospectus containing this information. Read it carefully.

Individuals are encouraged to seek advice from their financial, legal, tax and other appropriate professionals before making any investment or financial decisions or purchasing any financial, securities or investment product or service, including any product or service described in these materials. Amundi US does not provide investment advice or investment recommendations.

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