Form N-CSRS PIONEER HIGH INCOME FUND For: Sep 30

December 3, 2021 8:01 AM EST

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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 811-21043

 

Pioneer High Income Fund, Inc.

(Exact name of registrant as specified in charter)

 

60 State Street, Boston, MA 02109

(Address of principal executive offices) (ZIP code)

 

Terrence J. Cullen, Amundi Asset Management, Inc.,

60 State Street, Boston, MA 02109

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code:  (617) 742-7825

Date of fiscal year end:  March 31, 2022

 

Date of reporting period:  April 1, 2021 through September 30, 2021

 

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.

 

 

Pioneer

High Income Fund, Inc.

Semiannual Report | September 30, 2021

Ticker Symbol: PHT

April 21, 2021, the Pioneer High Income Trust redomiciled from a Delaware statutory trust to a Maryland corporation and was renamed Pioneer High Income Fund, Inc .

Paper copies of the Fund’s shareholder reports are no longer sent by mail, unless you specifically request paper copies of the reports from the Fund’s or from your financial intermediary, such as a broker-dealer, bank or insurance company. Instead, the reports are available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held within the Pioneer Fund complex if you invest directly.

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visit us: www.amundi.com/us

 
 

 

   
Table of Contents  
President’s Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Schedule of Investments 13
Financial Statements 36
Notes to Financial Statements 42
Additional Information 62
Approval of Renewal of Investment Management Agreement 63
Directors, Officers and Service Providers 68

 

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President’s Letter

Dear Shareholders,

The past year and a half has created unprecedented challenges for investors, as the COVID-19 pandemic has not only dominated the headlines since March 2020, but has also led to significant changes in government and central-bank policies, both in the US and abroad, and affected the everyday lives of each of us. As we move into the final months of 2021, the situation, while improved, has continued to evolve.

Widespread distribution of the COVID-19 vaccines approved for emergency use in late 2020 led to a general decline in virus-related hospitalizations in the US and had a positive effect on overall market sentiment during the first half of this calendar year. The passage of two additional fiscal stimulus packages by US lawmakers last December and January also helped drive a strong market rally. However, the emergence of highly infectious variants of the virus has caused a recent spike in cases and hospitalizations, especially outside of the US. That development has contributed to a slowdown in the global economic recovery, as some foreign governments have reinstated strict virus-containment measures that had been relaxed after the rollout of the vaccines.

In the US, while performance of most asset classes, especially equities, has been positive for the year to date, volatility has been high, and the third quarter of 2021 saw negative returns for several stock market indices. Investors’ concerns over global supply chain issues, rising inflation, “hawkish” signals concerning less-accommodative future monetary policies from the Federal Reserve System (Fed), and partisan debates in Washington, DC over future spending and tax policies, are among the many factors that have led to greater uncertainty and an increase in market volatility.

Despite those concerns and some of the recent difficulties that have affected the economy and the markets, we believe the distribution of the COVID-19 vaccines has provided a potential light at the end of the pandemic tunnel. With that said, the long-term impact on the global economy from COVID-19, while currently unknown, is likely to be considerable, as it is clear that several industries have already felt greater effects than others, and could continue to struggle for quite some time.

After leaving our offices in March of 2020 due to COVID-19, we have re-opened our US locations and our employees have returned to the office as of mid-October. I am proud of the careful planning that has taken place.

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Throughout the pandemic, our business has continued to operate without any disruption, and we all look forward to regaining a bit of normalcy after so many months of remote working.

Since 1928, Amundi US’s investment process has been built on a foundation of fundamental research and active management, principles which have guided our investment decisions for more than 90 years. We believe active management – that is, making active investment decisions – can help mitigate the risks during periods of market volatility.

At Amundi US, active management begins with our own fundamental, bottom-up research process. Our team of dedicated research analysts and portfolio managers analyzes each security under consideration, communicating directly with the management teams of the companies issuing the securities and working together to identify those securities that best meet our investment criteria for our family of funds. Our risk management approach begins with each and every security, as we strive to carefully understand the potential opportunity, while considering any and all risk factors.

Today, as investors, we have many options. It is our view that active management can serve shareholders well, not only when markets are thriving, but also during periods of market stress.

As you consider your long-term investment goals, we encourage you to work with your financial professional to develop an investment plan that paves the way for you to pursue both your short-term and long-term goals.

We greatly appreciate the trust you have placed in us and look forward to continuing to serve you in the future.

Sincerely,

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Lisa M. Jones

Head of the Americas, President and CEO of US

Amundi Asset Management US, Inc.

November 2021

Any information in this shareowner report regarding market or economic trends or the factors influencing the Fund’s historical or future performance are statements of opinion as of the date of this report. Past performance is no guarantee of future results.

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Portfolio Management Discussion | 9/30/21

Note to Shareholders: On April 21, 2021, Pioneer High Income Trust redomiciled from a Delaware statutory trust to a Maryland corporation and was renamed Pioneer High Income Fund, Inc. The redomiciling did not result in any change to the investment adviser, investment objective and strategies, portfolio management team, policies and procedures or the members of the Board overseeing the Fund. Please see Note 9. Redomiciling, for more information about the redomiciling.

In the following interview, Andrew Feltus discusses the factors that affected the performance of Pioneer High Income Fund, Inc. during the six-month period ended September 30, 2021. Mr. Feltus, Co-Director of High Yield, a senior vice president, and a portfolio manager at Amundi Asset Management US, Inc. (Amundi US), is responsible for the daily management of the Fund. Mr. Feltus, Co-Director of High Yield and a portfolio manager at Amundi US, is responsible for the day-to-day management of the Fund, along with Matthew Shulkin, a vice president and a portfolio manager at Amundi US, and Kenneth Monaghan, Co-Director of High Yield and a portfolio manager at Amundi US.

QHow did the Fund perform during the six-month period ended September 30, 2021?
APioneer High Income Fund, Inc. returned 5.30% at net asset value (NAV) and 8.88% at market price during the six-month period ended September 30, 2021. During the same six-month period, the Fund’s benchmark, the ICE Bank of America US High Yield Index (the ICE BofA Index), returned 3.74%. The ICE BofA Index is an unmanaged, commonly accepted measure of the performance of high-yield securities. Unlike the Fund, the ICE BofA Index 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 NAV of the 45 closed end funds in Morningstar’s High Yield Bond Closed End Funds category (which may or may not be leveraged) was 4.22%, while the same closed end fund Morningstar category’s average return at market price was 7.55%.

The shares of the Fund were selling at a 1.2% premium to NAV on September 30, 2021, while the Fund’s shares were selling at a discount to NAV of 2.1% on March 31, 2021.

On September 30, 2021, the standardized 30-day SEC yield of the Fund’s shares was 6.06%*.

*The 30-day SEC yield is a standardized formula that is based on the hypothetical annualized earning power (investment income only) of the Fund’s portfolio securities during the period indicated.

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QHow would you describe the investment environment for high-yield debt during the six-month period ended September 30, 2021?
AEntering the period back in April, investors had focused their attention on positive developments pertaining to the distribution of COVID-19 vaccines, a broader economic reopening from the pandemic-induced shutdowns and restrictions, and the US government’s most recent fiscal stimulus package approved at the beginning of the calendar year. The continued dovish posture of the US Federal Reserve System (Fed) on monetary policy lent further support to the markets and helped drive an increased appetite for riskier assets such as high-yield bonds, as Federal Open Market Committee (FOMC) members hinted at a desire to remain “on the sidelines” with regard to major policy changes until at least 2023.

The Fed based its projection on the view that near-term increases in inflation above the usual 2% target would be transitory, and not structural. The Fed also messaged that it would look at average inflation over time, rather than feeling compelled to raise interest rates based on an isolated uptick in prices for certain goods and services.

However, the “reflation trade” wobbled during June 2021, as market participants navigated around growing apprehension over the spread of COVID-19 variants and a somewhat “hawkish” FOMC meeting that month. Treasury-market investors reacted to the updated Fed “dot plot” displaying FOMC member forecasts that pointed to a median federal funds target rate of 0.625% by year-end 2023, or 50 basis points (bps) higher than the March 2021 forecast. The Treasury yield curve saw short-end yields rise and long-end yields decline, while longer-term inflation expectations moved lower. The movement suggested investors’ doubts regarding the Fed’s long-term commitment to its current average inflation-targeting framework. (The Fed’s “dot” plot/projection is a quarterly chart summarizing the outlook for the federal funds rate for each FOMC meeting participant. A basis point is equal to 1/100th of a percentage point.)

The hawks prevailed during the September FOMC debate as to when to start tapering the asset purchases the Fed had implemented shortly after the outset of the pandemic, and at what pace. The FOMC signaled, and Fed Chair Powell affirmed, that tapering could begin as early as November and be completed by the middle of next year.

Returns for high-yield corporate bonds finished the six-month period in comfortably positive territory, and roughly in line with the performance of their investment-grade counterparts. Performance within the high-

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yield universe was led by energy issues, which benefited from rising oil and gas prices. Within the high-yield market, lower-rated issues generally outperformed higher-rated credits for the six-month period. For example, CCC-rated bonds returned 5.14%, while BB-rated bonds returned 4.00%.

QWhat factors affected the Fund’s performance relative to its benchmark during the six-month period ended September 30, 2021?
AIn broad terms, the Fund carries leveraged exposure to the high-yield market, and the use of leverage boosted benchmark-relative performance as high-yield securities posted a positive return for the six-month period.

In addition, the portfolio’s holdings were tilted toward sectors featuring issuers with exposure to the economic recovery. While that aspect of the Fund’s positioning had a negative performance impact in the immediate wake of the COVID-19 crisis, it has boosted relative returns ever since riskier assets began rebounding in the second quarter of 2020, including over the past six months. The strongest-performing sectors over the six-month period were those that had experienced the greatest negative effects of the pandemic in early 2020, namely energy, airlines, and leisure-related companies.

At the sector level, the biggest positive contributors to the Fund’s relative performance for the period came from the aforementioned “recovery” sectors, led by the portfolio’s exposure to leisure, where good security selection results offset a small performance drag from an underweight allocation to the sector versus the benchmark. Positive security selection results within transportation as well as a modest overweight to the sector also boosted the Fund’s relative returns, while the benefits from an overweight to energy offset the minor negative effects of security selection within that strong-performing sector.

The most significant detractors from the Fund’s relative performance at the sector level came from both an overweight allocation to, and security selection results within, basic industries. Within utilities, the portfolio’s overweight position in Talen Energy was a negative, and offset the small positive contribution from the Fund’s underweight allocation to the sector. Finally, both selection results within financial services as well as an overweight allocation to the sector detracted from the Fund’s relative performance for the six-month period.

In terms of individual holdings, leading positive contributors to the Fund’s performance for the six-month period included overweights to the bonds of Baytex Energy, a Canadian exploration & production company, Codere, a casino operator in South America and Europe, and

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Energy Transfer, the large US operator of diversified midstream properties. The portfolio positions that detracted the most from the Fund’s benchmark-relative returns during the period included Credito Real, the Mexico-based financial services company, Occidental Petroleum, a large exploration & production company that experienced a ratings downgrade to “high yield” in 2020, and the aforementioned Talen Energy, a US merchant power company in the utilities sector.

QDid the Fund’s distributions** to shareholders change during the six-month period ended September 30, 2021?
ANo, the Fund’s monthly distributions to shareholders remained unchanged over the course of the six-month period.
QHow did the level of leverage in the Fund change during the six-month period ended September 30, 2021?
AThe Fund employs leverage through a credit agreement.

As of September 30, 2021, 31.0% of the Fund’s total managed assets were financed by leverage, or borrowed funds, compared with 30.5% of the Fund’s total managed assets financed by leverage at the start of the six-month period on April 1, 2021. During the six-month period, the Fund increased the absolute amount of funds borrowed by a total of $4 million, to $127 million as of September 30, 2021. The percentage of the Fund’s total managed assets financed by leverage increased during the six-month period due to the increase in the absolute amount of funds borrowed by the Fund.

QDid the Fund have any exposure to derivative securities during the six-month period ended September 30, 2021? If so, did the investments have a material effect on the Fund’s performance?
AYes, we invested the Fund’s portfolio in forward foreign currency contracts (currency forwards) and over-the-counter currency call options during the six-month period, which had a slight positive impact on relative performance.
QWhat is your investment outlook?
AWe believe the US economy could be poised to perform well in the coming months. While COVID-19-driven economic support programs have been waning or, like the Fed’s asset purchases, are scheduled to end, consumers have still demonstrated high savings rates, which has

** Distributions are not guaranteed.

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contributed to pent-up demand. Some of the negative factors still affecting economic conditions as of period-end included labor shortages and supply chain difficulties, which have been constraining global as well as domestic growth.

During the six-month period, the functionality of the high-yield market continued to normalize after the severe dislocations experienced at the outset of the pandemic, and as the economy gradually recovered from the worst of the COVID-19 situation. In addition, by the close of the period, the sectors that had felt the biggest negative effects of the pandemic had regained traction. As a result, we believe the securities within those sectors are no longer priced to enable them to generate outsized performance compared to the overall market.

In our view, high-yield spreads could remain range-bound, or possibly tighten slightly, in the coming months. However, we do not expect high-yield spreads to narrow to new record levels. (Credit spreads are commonly defined as the differences in yield between Treasuries and other types of fixed-income securities with similar maturities.)

On the policy front, the Fed seems likely to begin tapering its Treasury and mortgage-backed security purchases before the end of this year, and may begin to increase its short-term federal funds rate target range sometime in late 2022 or early 2023. We believe issuers of high-yield debt could experience positive financial performance over the next year, but we would not be surprised if the market were to experience periods of volatility as investors digest the Fed’s anticipated policy shifts.

Please refer to the Schedule of Investments on pages 13–35 for a full listing of Fund securities.

All investments are subject to risk, including the possible loss of principal. In the past several years, financial markets have experienced increased volatility and heightened uncertainty. The market prices of securities may go up or down, sometimes rapidly or unpredictably, due to general market conditions, such as real or perceived adverse economic, political, or regulatory conditions, recessions, inflation, changes in interest or currency rates, lack of liquidity in the bond markets, the spread of infectious illness or other public health issues or adverse investor sentiment. These conditions may continue, recur, worsen or spread.

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Investments in high-yield or lower-rated securities are subject to greater-than-average risk.

The Fund may invest in securities of issuers that are in default or that are in bankruptcy.

The Fund may invest in insurance-linked securities. The return of principal and the payment of interest and/or dividends on insurance linked securities are contingent on the non-occurrence of a pre-defined “trigger” event, such as a hurricane or an earthquake of a specific magnitude.

Investing in foreign and/or emerging markets securities involves risks relating to interest rates, currency exchange rates, economic, and political conditions.

When interest rates rise, the prices of fixed-income securities held by the Fund will generally fall. Conversely, when interest rates fall the prices of fixed-income securities held by the Fund will generally rise.

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 meet their debt obligations.

The Fund may invest up to 50% of its total assets in illiquid securities. Illiquid securities may be difficult to dispose of at a price reflective of their value at the times when the Fund believes it is desirable to do so, and the market price of illiquid securities is generally more volatile than that of more liquid securities. Illiquid securities are also more difficult to value and investment of the Fund’s assets in illiquid securities may restrict the Fund’s ability to take advantage of market opportunities.

The Fund employs leverage through a credit agreement. Leverage creates significant risks, including the risk that the Fund’s incremental income or capital appreciation for investments purchased with the proceeds of leverage will not be sufficient to cover the cost of leverage, which may adversely affect the return for shareowners.

The Fund is required to meet certain regulatory and other asset coverage requirements in connection with its use of leverage. In order to maintain required asset coverage levels, the Fund may be required to reduce the amount of leverage employed by the Fund, alter the composition of its investment portfolio or take other actions at what might be inopportune times in the market. Such actions could reduce the net earnings or returns to shareowners over time, which is likely to result in a decrease in the market value of the Fund’s shares.

These risks may increase share price volatility.

Any information in this shareowner report regarding market or economic trends or the factors influencing the Fund’s historical or future performance are statements of opinion as of the date of this report. Past performance is no guarantee of future results.

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Portfolio Summary | 9/30/21

Portfolio Diversification

 

(As a percentage of total investments)*

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10 Largest Holdings  
(As a percentage of total investments)*  
1. Hanover Insurance Group, Inc., 7.625%, 10/15/25 1.13%
2. Liberty Mutual Insurance Co., 7.697%, 10/15/97 (144A) 1.13
3. Connecticut Avenue Securities Trust, Series 2019-HRP1, Class B1, 9.336%  
  (1 Month USD LIBOR + 925 bps), 11/25/39 (144A) 1.07
4. Liberty Mutual Group, Inc., 10.75% (3 Month USD LIBOR + 712 bps),  
  6/15/58 (144A) 1.06
5. Alliance Data Systems Corp., 7.0%, 1/15/26 (144A) 1.06
6. Prime Security Services Borrower LLC/Prime Finance, Inc.,  
  6.25%, 1/15/28 (144A) 1.05
7. Pegasus Hava Tasimaciligi AS, 9.25%, 4/30/26 (144A) 1.02
8. Baytex Energy Corp., 8.75%, 4/1/27 (144A) 1.01
9. Hercules LLC, 6.5%, 6/30/29 0.98
10. Uniti Group LP/Uniti Fiber Holdings, Inc./CSL Capital LLC,  
  7.875%, 2/15/25 (144A) 0.95

 

*Excludes temporary cash investments and all derivative contracts except for options purchased. The Fund is actively managed, and current holdings may be different. The holdings listed should not be considered recommendations to buy or sell any securities.

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Prices and Distributions | 9/30/21

Market Value per Share^

  9/30/21 3/31/21
Market Value $9.76 $9.37
Discount/Premium 1.2% (2.1)%

 

     
Net Asset Value per Share^  
 
  9/30/21 3/31/21
Net Asset Value $9.64 $9.57

 

     
Distributions per Share*: 4/1/21 – 9/30/21  
 
Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
$0.4350 $ — $ —

 

Yields    
  9/30/21 3/31/21
30-Day SEC Yield 6.06% 6.40%

 

The data shown above represents past performance, which is no guarantee of future results.

^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. Net asset value and market value are published daily on the Fund’s website at www.amundi.com/us.
*The amount of distributions made to shareowners during the period was in excess of the net investment income earned by the Fund during the period.

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Performance Update | 9/30/21

Investment Returns

 

The mountain chart on the right shows the change in market value, including reinvestment of dividends and distributions, of a $10,000 investment made in common shares of Pioneer High Income Fund, Inc. during the periods shown, compared to that of the ICE BofA U.S. High Yield Index.

       
Average Annual Total Returns  
(As of September 30, 2021)  
  Net   ICE BofA
  Asset   U.S. High
  Value Market Yield
Period (NAV) Price Index
10 years 7.56% 4.72% 7.30%
5 years 7.72    7.74    6.35   
1 year 21.42    34.51    11.46   

 

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Call 1-800-225-6292 or visit www.amundi.com/us 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 Fund.

Shares of 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 bought and 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 include preferred shares or borrowings, as applicable, 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 through open-market purchases under the Fund’s dividend reinvestment plan.

The performance table and graph do not reflect the deduction of fees and taxes that a shareowner would pay on Fund distributions or the sale of Fund shares. Had these fees and taxes been reflected, performance would have been lower.

The ICE Bank of America U.S. High Yield Index is an unmanaged, commonly accepted measure of the performance of high yield securities. Index returns are calculated monthly, assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees, expenses or sales charges. The Index does not employ leverage. It is not possible to invest directly in the Index.

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Schedule of Investments | 9/30/21 (unaudited)

       
Shares     Value
    UNAFFILIATED ISSUERS — 144.7%%  
    COMMON STOCKS — 1.2% of Net Assets
    Energy Equipment & Services — 0.8%  
  87,626(a) FTS International, Inc. $ 2,155,599
    Total Energy Equipment & Services $ 2,155,599
    Oil, Gas & Consumable Fuels — 0.4%  
  21(a) Amplify Energy Corp. $ 112
  802,650^+(a) PetroQuest Energy, Inc. 341,126
  12,271(a) Summit Midstream Partners LP 436,234
  7,997^+(a) Superior Energy Services, Inc. 351,868
    Total Oil, Gas & Consumable Fuels $ 1,129,340
    Specialty Retail — 0.0%†  
  68,241^+(a) Targus Cayman SubCo, Ltd. $ 104,409
    Total Specialty Retail $ 104,409
    TOTAL COMMON STOCKS  
    (Cost $3,780,787) $ 3,389,348
    CONVERTIBLE PREFERRED STOCK — 0.8% of  
    Net Assets  
    Banks — 0.8%  
  1,600(b) Wells Fargo & Co., 7.5% $ 2,371,200
    Total Banks $ 2,371,200
    TOTAL CONVERTIBLE PREFERRED STOCK  
    (Cost $2,022,424) $ 2,371,200
    PREFERRED STOCKS — 1.3% of Net Assets  
    Banks — 0.1%  
  9,421(c) GMAC Capital Trust I, 5.91% (3 Month USD LIBOR +  
    579 bps), 2/15/40 $ 237,786
    Total Banks $ 237,786
    Diversified Financial Services — 1.1%  
  3,000(b)(c) Compeer Financial ACA, 6.75% (USD LIBOR +  
    458 bps) (144A) $ 3,195,000
    Total Diversified Financial Services $ 3,195,000
    Internet — 0.1%  
  129,055 MYT Holding LLC $ 136,153
    Total Internet $ 136,153
    TOTAL PREFERRED STOCKS  
    (Cost $3,456,406) $ 3,568,939

 

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments | 9/30/21 (unaudited)

(continued)

Principal    
Amount    
USD ($)   Value
  COLLATERALIZED MORTGAGE OBLIGATIONS —  
  2.3% of Net Assets  
4,100,000(d) Connecticut Avenue Securities Trust, Series 2019-HRP1,  
  Class B1, 9.336% (1 Month USD LIBOR +  
  925 bps), 11/25/39 (144A) $ 4,355,342
260,000(d) Freddie Mac Stacr Remic Trust, Series 2021-DNA1,  
  Class B2, 4.8% (SOFR30A +  
  475 bps), 1/25/51 (144A) 265,828
450,000(d) Freddie Mac Stacr Remic Trust, Series 2021-HQA3,  
  Class B2, 6.3% (SOFR30A +  
  625 bps), 9/25/41 (144A) 453,900
1,350,000(d) STACR Trust, Series 2018-HRP2, Class B2, 10.586% (1  
  Month USD LIBOR + 1,050 bps), 2/25/47 (144A) 1,562,167
  TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS  
  (Cost $6,351,608) $ 6,637,237
  COMMERCIAL MORTGAGE-BACKED
  SECURITIES — 3.5% of Net Assets  
500,000(d) Capital Funding Mortgage Trust, Series 2020-9, Class B,  
  15.9% (1 Month USD LIBOR +  
  1,490 bps), 11/19/22 (144A) $ 500,000
605,000(d) Capital Funding Mortgage Trust, Series 2021-8, Class B,  
  14.35% (1 Month USD LIBOR +  
  1,310 bps), 6/22/23 (144A) 605,000
1,500,000(d) Capital Funding Mortgage Trust, Series 2021-19, Class B,  
  16.46% (1 Month USD LIBOR +  
  1,521 bps), 11/6/23 (144A) 1,500,270
1,643,918(c) FREMF Mortgage Trust, Series 2019-KJ24, Class B, 7.6%,  
  10/25/27 (144A) 1,423,778
1,500,000(d) FREMF Mortgage Trust, Series 2019-KS12, Class C, 6.983%  
  (1 Month USD LIBOR + 690 bps), 8/25/29 1,227,234
1,139,489(d) FREMF Mortgage Trust, Series 2020-KF74, Class C, 6.333%  
  (1 Month USD LIBOR + 625 bps), 1/25/27 (144A) 1,126,369
1,500,000(d) FREMF Mortgage Trust, Series 2020-KF83, Class C, 9.083%  
  (1 Month USD LIBOR + 900 bps), 7/25/30 (144A) 1,522,387
97,828 L1C 3/8L1 LLC, Series 2019-1, Class B, 8.5%,  
  11/1/22 (144A) 98,461
2,500,000 Wells Fargo Commercial Mortgage Trust, Series 2015-C28,  
  Class E, 3.0%, 5/15/48 (144A) 1,835,015
  TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES  
  (Cost $10,358,729) $ 9,838,514
  CONVERTIBLE CORPORATE BONDS — 2.2% of  
  Net Assets  
  Banks — 0.0%†  
IDR1,422,679,000^ PT Bakrie & Brothers Tbk, 12/22/22 $ 9,940
  Total Banks $ 9,940

 

The accompanying notes are an integral part of these financial statements.

14 Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21

 

  

Principal    
Amount    
USD ($)   Value
  Chemicals — 1.4%  
4,000,000(e) Hercules LLC, 6.5%, 6/30/29 $ 4,015,000
  Total Chemicals $ 4,015,000
  Entertainment — 0.5%  
655,000(f) DraftKings, Inc., 3/15/28 (144A) $ 576,728
849,000 IMAX Corp., 0.5%, 4/1/26 (144A) 829,307
  Total Entertainment $ 1,406,035
  Pharmaceuticals — 0.2%  
1,300,000 Tricida, Inc., 3.5%, 5/15/27 $ 573,300
  Total Pharmaceuticals $ 573,300
  REITs — 0.1%  
235,000 Summit Hotel Properties, Inc., 1.5%, 2/15/26 $ 246,816
  Total REITs $ 246,816
  TOTAL CONVERTIBLE CORPORATE BONDS  
  (Cost $5,622,547) $ 6,251,091
  CORPORATE BONDS — 127.2% of Net Assets  
  Advertising — 2.6%  
200,000 Clear Channel International BV, 6.625%, 8/1/25 (144A) $ 208,250
2,090,000 Clear Channel Outdoor Holdings, Inc., 7.5%,  
  6/1/29 (144A) 2,173,600
900,000 Clear Channel Outdoor Holdings, Inc., 7.75%,  
  4/15/28 (144A) 947,250
2,485,000 Midas OpCo Holdings LLC, 5.625%, 8/15/29 (144A) 2,571,354
1,445,000 Summer BC Bidco B LLC, 5.5%, 10/31/26 (144A) 1,480,980
  Total Advertising $ 7,381,434
  Aerospace & Defense — 2.0%  
2,150,000 Bombardier, Inc., 6.0%, 2/15/28 (144A) $ 2,174,188
960,000 Bombardier, Inc., 7.125%, 6/15/26 (144A) 1,010,400
1,210,000 Howmet Aerospace, Inc., 6.875%, 5/1/25 1,415,724
745,000 Kratos Defense & Security Solutions, Inc., 6.5%, 11/30/25  
  (144A) 772,006
228,000 Triumph Group, Inc., 8.875%, 6/1/24 (144A) 250,800
  Total Aerospace & Defense $ 5,623,118
  Airlines — 3.3%  
1,455,000 Delta Air Lines, Inc., 3.75%, 10/28/29 $ 1,481,086
355,000 Delta Air Lines, Inc., 7.375%, 1/15/26 418,088
1,380,000 Mileage Plus Holdings LLC/Mileage Plus Intellectual  
  Property Assets, Ltd., 6.5%, 6/20/27 (144A) 1,500,264
3,960,000 Pegasus Hava Tasimaciligi AS, 9.25%, 4/30/26 (144A) 4,177,800
EUR 2,000,000 Transportes Aereos Portugueses SA, 5.625%,  
  12/2/24 (144A) 1,905,460
  Total Airlines $ 9,482,698

 

The accompanying notes are an integral part of these financial statements.

Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21 15

 

 

 

Schedule of Investments | 9/30/21 (unaudited)

(continued)

Principal    
Amount    
USD ($)   Value
  Auto Manufacturers — 2.0%  
1,650,000 Ford Motor Credit Co. LLC, 3.815%, 11/2/27 $ 1,711,875
1,399,000 General Motors Co., 6.125%, 10/1/25 1,638,624
2,260,000 JB Poindexter & Co., Inc., 7.125%, 4/15/26 (144A) 2,378,650
  Total Auto Manufacturers $ 5,729,149
  Auto Parts & Equipment — 1.9%  
2,000,000 American Axle & Manufacturing, Inc., 6.5%, 4/1/27 $ 2,085,000
1,798,000 Dealer Tire LLC/DT Issuer LLC, 8.0%, 2/1/28 (144A) 1,882,357
1,195,000 Goodyear Tire & Rubber Co., 9.5%, 5/31/25 1,311,513
  Total Auto Parts & Equipment $ 5,278,870
  Banks — 3.3%  
825,000 Access Bank Plc, 10.5%, 10/19/21 (144A) $ 826,922
600,000(b)(c) Bank of America Corp., 6.5% (3 Month USD LIBOR +  
  417 bps) 671,400
1,800,000(b)(c) Barclays Plc, 7.75% (5 Year USD Swap Rate + 484 bps) 1,962,000
700,000(b)(c) Credit Suisse Group AG, 7.5% (5 Year USD Swap Rate +  
  460 bps) (144A) 764,750
815,000 Freedom Mortgage Corp., 6.625%, 1/15/27 (144A) 792,588
1,931,000 Freedom Mortgage Corp., 8.125%, 11/15/24 (144A) 1,957,551
1,680,000 Freedom Mortgage Corp., 8.25%, 4/15/25 (144A) 1,713,600
675,000(b)(c) Intesa Sanpaolo S.p.A., 7.7% (5 Year USD Swap Rate +  
  546 bps) (144A) 765,315
  Total Banks $ 9,454,126
  Building Materials — 1.9%  
1,333,000 Builders FirstSource, Inc., 6.75%, 6/1/27 (144A) $ 1,412,980
470,000 Cornerstone Building Brands, Inc., 6.125%, 1/15/29 (144A) 499,375
745,000 CP Atlas Buyer, Inc., 7.0%, 12/1/28 (144A) 746,862
424,000 Koppers, Inc., 6.0%, 2/15/25 (144A) 433,540
2,062,000 Patrick Industries, Inc., 7.5%, 10/15/27 (144A) 2,221,805
  Total Building Materials $ 5,314,562
  Chemicals — 4.9%  
1,455,000 Hexion, Inc., 7.875%, 7/15/27 (144A) $ 1,553,213
1,355,000 LSF11 A5 Holdco LLC, 6.625%, 10/15/29 (144A) 1,355,000
2,250,000 LYB Finance Co. BV, 8.1%, 3/15/27 (144A) 2,947,431
470,000 Olin Corp., 9.5%, 6/1/25 (144A) 585,738
440,000 Olympus Water US Holding Corp., 6.25%, 10/1/29 (144A) 436,018
2,316,000 Rain CII Carbon LLC/CII Carbon Corp., 7.25%,  
  4/1/25 (144A) 2,373,900
1,340,000 Trinseo Materials Operating SCA/Trinseo Materials  
  Finance, Inc., 5.125%, 4/1/29 (144A) 1,350,050
2,030,000 Tronox, Inc., 4.625%, 3/15/29 (144A) 2,019,850
1,290,000 Tronox, Inc., 6.5%, 5/1/25 (144A) 1,354,074
  Total Chemicals $ 13,975,274

 

The accompanying notes are an integral part of these financial statements.

16 Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21

 

 

Principal    
Amount    
USD ($)   Value
    Commercial Services — 5.9%  
  495,000 Allied Universal Holdco LLC/Allied Universal Finance  
    Corp., 6.0%, 6/1/29 (144A) $ 488,461
  350,000 Allied Universal Holdco LLC/Allied Universal Finance  
    Corp., 6.625%, 7/15/26 (144A) 370,048
  1,905,000 Allied Universal Holdco LLC/Allied Universal Finance  
    Corp., 9.75%, 7/15/27 (144A) 2,066,925
  950,000 APX Group, Inc., 6.75%, 2/15/27 (144A) 1,010,135
  790,000 Atento Luxco 1 SA, 8.0%, 2/10/26 (144A) 863,122
  2,116,000 Garda World Security Corp., 6.0%, 6/1/29 (144A) 2,058,022
  2,059,000 Garda World Security Corp., 9.5%, 11/1/27 (144A) 2,220,899
  319,000 Herc Holdings, Inc., 5.5%, 7/15/27 (144A) 334,596
  915,000 NESCO Holdings II, Inc., 5.5%, 4/15/29 (144A) 949,038
  4,155,000 Prime Security Services Borrower LLC/Prime Finance,  
    Inc., 6.25%, 1/15/28 (144A) 4,295,356
  1,093,000 Sotheby’s, 7.375%, 10/15/27 (144A) 1,155,847
  862,000 Verscend Escrow Corp., 9.75%, 8/15/26 (144A) 908,333
    Total Commercial Services $ 16,720,782
    Computers — 1.3%  
  555,000 Dell International LLC/EMC Corp., 7.125%,  
    6/15/24 (144A) $ 567,562
  1,810,000 Diebold Nixdorf, Inc., 8.5%, 4/15/24 1,848,462
  175,000 Diebold Nixdorf, Inc., 9.375%, 7/15/25 (144A) 191,517
  980,000 NCR Corp., 5.0%, 10/1/28 (144A) 1,001,374
    Total Computers $ 3,608,915
    Diversified Financial Services — 9.8%  
  4,055,000 Alliance Data Systems Corp., 7.0%, 1/15/26 (144A) $ 4,338,850
  2,150,000 ASG Finance Designated Activity Co., 7.875%,  
    12/3/24 (144A) 2,117,750
  1,244,305(g) Avation Capital SA, 8.25% (9.0% PIK or 8.25% cash),  
    10/31/26 (144A) 1,051,438
  340,000 Credito Real SAB de CV SOFOM ER, 8.0%, 1/21/28 (144A) 291,681
  3,105,000 Credito Real SAB de CV SOFOM ER, 9.5%, 2/7/26 (144A) 2,848,993
EUR 480,000 Garfunkelux Holdco 3 SA, 6.75%, 11/1/25 (144A) 580,391
GBP 820,000 Garfunkelux Holdco 3 SA, 7.75%, 11/1/25 (144A) 1,154,252
  2,147,628(g) Global Aircraft Leasing Co., Ltd., 6.5% (7.25% PIK or 6.50%  
    cash), 9/15/24 (144A) 2,110,045
  1,130,000 Jefferies Finance LLC/JFIN Co.-Issuer Corp., 5.0%,  
    8/15/28 (144A) 1,146,950
  1,020,000 Nationstar Mortgage Holdings, Inc., 5.125%,  
    12/15/30 (144A) 1,034,096
  845,000 Nationstar Mortgage Holdings, Inc., 6.0%, 1/15/27 (144A) 881,969
  160,000 OneMain Finance Corp., 6.625%, 1/15/28 184,000
  460,000 OneMain Finance Corp., 8.875%, 6/1/25 499,100

 

The accompanying notes are an integral part of these financial statements.

Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21 17

 

 

 

Schedule of Investments | 9/30/21 (unaudited)

(continued)

Principal    
Amount    
USD ($)   Value
  Diversified Financial Services — (continued)
1,290,000 Oxford Finance LLC/Oxford Finance Co.-Issuer II, Inc.,  
  6.375%, 12/15/22 (144A) $ 1,294,837
755,000 PHH Mortgage Corp., 7.875%, 3/15/26 (144A) 768,212
3,415,000 Provident Funding Associates LP/PFG Finance Corp.,  
  6.375%, 6/15/25 (144A) 3,474,762
1,225,000 United Wholesale Mortgage LLC, 5.5%, 4/15/29 (144A) 1,189,357
2,395,000 VistaJet Malta Finance Plc/XO Management Holding, Inc.,  
  10.5%, 6/1/24 (144A) 2,601,569
  Total Diversified Financial Services $ 27,568,252
  Electric — 1.9%  
825,000 Cemig Geracao e Transmissao SA, 9.25%, 12/5/24 (144A) $ 934,313
1,010,000(c) Enel S.p.A., 8.75% (5 Year USD Swap Rate +  
  588 bps), 9/24/73 (144A) 1,151,400
676,000 NRG Energy, Inc., 6.625%, 1/15/27 700,302
1,001,273 NSG Holdings LLC/NSG Holdings, Inc., 7.75%,  
  12/15/25 (144A) 1,077,620
1,520,000 Talen Energy Supply LLC, 7.625%, 6/1/28 (144A) 1,425,000
354,000 Talen Energy Supply LLC, 10.5%, 1/15/26 (144A) 194,700
6,000 Vistra Operations Co. LLC, 5.625%, 2/15/27 (144A) 6,210
  Total Electric $ 5,489,545
  Electrical Components & Equipment — 0.5%
750,000 WESCO Distribution, Inc., 7.125%, 6/15/25 (144A) $ 802,373
520,000 WESCO Distribution, Inc., 7.25%, 6/15/28 (144A) 575,900
  Total Electrical Components & Equipment $ 1,378,273
  Electronics — 0.1%  
380,000 TTM Technologies, Inc., 4.0%, 3/1/29 (144A) $ 380,646
  Total Electronics $ 380,646
  Energy-Alternate Sources — 0.6%  
1,575,000 Renewable Energy Group, Inc., 5.875%, 6/1/28 (144A) $ 1,628,156
  Total Energy-Alternate Sources $ 1,628,156
  Engineering & Construction — 1.4%  
3,010,000 Artera Services LLC, 9.033%, 12/4/25 (144A) $ 3,265,850
475,000 Brundage-Bone Concrete Pumping Holdings, Inc.,  
  6.0%, 2/1/26 (144A) 495,187
704,038(h) Stoneway Capital Corp., 10.0%, 3/1/27 (144A) 179,537
  Total Engineering & Construction $ 3,940,574
  Entertainment — 6.1%  
768,000 AMC Entertainment Holdings, Inc., 10.5%, 4/24/26 (144A) $ 824,640
2,264,138(g) AMC Entertainment Holdings, Inc., 12.0% (12.0% PIK or  
  10.0% cash), 6/15/26 (144A) 2,190,554
1,085,000 Caesars Entertainment, Inc., 8.125%, 7/1/27 (144A) 1,219,269

 

The accompanying notes are an integral part of these financial statements.

18 Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21

 

 

 

Principal    
Amount    
USD ($)   Value
    Entertainment — (continued)  
EUR 870,400 Cirsa Finance International S.a.r.l., 6.25%,  
    12/20/23 (144A) $ 1,022,802
  380,000 International Game Technology Plc, 4.125%,  
    4/15/26 (144A) 394,961
  395,000 International Game Technology Plc, 6.25%,  
    1/15/27 (144A) 446,350
  656,000 International Game Technology Plc, 6.5%, 2/15/25 (144A) 732,063
  1,265,000 Lions Gate Capital Holdings LLC, 5.5%, 4/15/29 (144A) 1,307,719
  1,880,000 Mohegan Gaming & Entertainment, 8.0%, 2/1/26 (144A) 1,958,734
  1,910,000 Scientific Games International, Inc., 7.0%, 5/15/28 (144A) 2,060,412
  1,910,000 Scientific Games International, Inc., 7.25%,  
    11/15/29 (144A) 2,146,148
  571,000 Scientific Games International, Inc., 8.25%,  
    3/15/26 (144A) 605,974
  2,035,000 SeaWorld Parks & Entertainment, Inc., 5.25%,  
    8/15/29 (144A) 2,079,159
    Total Entertainment $ 16,988,785
    Environmental Control — 0.9%  
  1,691,000 Covanta Holding Corp., 6.0%, 1/1/27 $ 1,752,941
  818,000 Tervita Corp., 11.0%, 12/1/25 (144A) 928,430
    Total Environmental Control $ 2,681,371
    Food — 2.5%  
  531,000 Albertsons Cos., Inc./Safeway, Inc./New Albertsons  
    LP/Albertsons LLC, 7.5%, 3/15/26 (144A) $ 573,480
  1,412,000 FAGE International SA/FAGE USA Dairy Industry,  
    Inc., 5.625%, 8/15/26 (144A) 1,451,677
  2,795,000 Frigorifico Concepcion SA, 7.7%, 7/21/28 (144A) 2,892,853
  775,000 JBS USA LUX SA/JBS USA Finance, Inc., 6.75%,  
    2/15/28 (144A) 840,883
  625,000 JBS USA LUX SA/JBS USA Food Co./JBS USA Finance,  
    Inc., 6.5%, 4/15/29 (144A) 698,437
  460,000 United Natural Foods, Inc., 6.75%, 10/15/28 (144A) 497,950
    Total Food $ 6,955,280
    Forest Products & Paper — 2.2%  
  2,035,000 Mercer International, Inc., 5.125%, 2/1/29 $ 2,078,244
  831,000 Schweitzer-Mauduit International, Inc., 6.875%, 10/1/26  
    (144A) 864,304
  3,290,000 Sylvamo Corp., 7.0%, 9/1/29 (144A) 3,366,065
    Total Forest Products & Paper $ 6,308,613
    Healthcare-Products — 0.8%  
  2,011,000 Varex Imaging Corp., 7.875%, 10/15/27 (144A) $ 2,262,777
    Total Healthcare-Products $ 2,262,777

 

The accompanying notes are an integral part of these financial statements.

Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21 19

 

 

 

Schedule of Investments | 9/30/21 (unaudited)

(continued)

     
Principal    
Amount    
USD ($)   Value
  Healthcare-Services — 5.0%  
610,000 AHP Health Partners, Inc., 5.75%, 7/15/29 (144A) $ 616,100
1,425,000 Auna SAA, 6.5%, 11/20/25 (144A) 1,496,250
1,340,000 Centene Corp., 4.625%, 12/15/29 1,460,600
580,000 CHS/Community Health Systems, Inc., 5.625%,  
  3/15/27 (144A) 607,335
265,000 CHS/Community Health Systems, Inc., 6.0%,  
  1/15/29 (144A) 280,900
580,000 Legacy LifePoint Health LLC, 6.75%, 4/15/25 (144A) 609,906
385,000 LifePoint Health, Inc., 5.375%, 1/15/29 (144A) 374,413
2,640,000 Prime Healthcare Services, Inc., 7.25%, 11/1/25 (144A) 2,831,400
2,396,000 Surgery Center Holdings, Inc., 10.0%, 4/15/27 (144A) 2,587,680
725,000 US Acute Care Solutions LLC, 6.375%, 3/1/26 (144A) 767,594
2,500,000 US Renal Care, Inc., 10.625%, 7/15/27 (144A) 2,656,250
  Total Healthcare-Services $ 14,288,428
  Home Builders — 1.9%  
475,000 Beazer Homes USA, Inc., 6.75%, 3/15/25 $ 488,656
1,155,000 Beazer Homes USA, Inc., 7.25%, 10/15/29 1,271,944
1,680,000 Brookfield Residential Properties, Inc./Brookfield  
  Residential US LLC, 4.875%, 2/15/30 (144A) 1,713,600
790,000 KB Home, 7.5%, 9/15/22 835,859
1,035,000 KB Home, 7.625%, 5/15/23 1,102,275
  Total Home Builders $ 5,412,334
  Housewares — 0.1%  
250,000 CD&R Smokey Buyer, Inc., 6.75%, 7/15/25 (144A) $ 264,062
  Total Housewares $ 264,062
  Insurance — 5.5%  
3,800,000 Hanover Insurance Group, Inc., 7.625%, 10/15/25 $ 4,623,134
3,075,000(c) Liberty Mutual Group, Inc., 10.75% (3 Month USD LIBOR +  
  712 bps), 6/15/58 (144A) 4,343,252
3,000,000 Liberty Mutual Insurance Co., 7.697%, 10/15/97 (144A) 4,620,759
1,100,000 MetLife, Inc., 10.75%, 8/1/39 1,913,260
  Total Insurance $ 15,500,405
  Internet — 0.1%  
205,000 Expedia Group, Inc., 6.25%, 5/1/25 (144A) $ 236,280
  Total Internet $ 236,280
  Iron & Steel — 2.3%  
485,000 Allegheny Technologies, Inc., 4.875%, 10/1/29 $ 486,819
270,000 Allegheny Technologies, Inc., 5.125%, 10/1/31 272,079
1,840,000 Cleveland-Cliffs, Inc., 6.75%, 3/15/26 (144A) 1,961,900
155,000 Cleveland-Cliffs, Inc., 9.875%, 10/17/25 (144A) 177,863

 

The accompanying notes are an integral part of these financial statements.

20 Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21

 

 

 

       
Principal    
Amount    
USD ($)   Value
    Iron & Steel — (continued)  
  1,470,000 Commercial Metals Co., 5.375%, 7/15/27 $ 1,542,625
  1,860,000 TMS International Corp., 6.25%, 4/15/29 (144A) 1,943,700
    Total Iron & Steel $ 6,384,986
    Leisure Time — 2.7%  
  215,000 Carnival Corp., 7.625%, 3/1/26 (144A) $ 229,513
EUR 280,000 Carnival Corp., 7.625%, 3/1/26 (144A) 349,621
  285,000 Carnival Corp., 10.5%, 2/1/26 (144A) 330,386
EUR 731,000 Carnival Plc, 1.0%, 10/28/29 656,714
  1,295,000 NCL Corp., Ltd., 5.875%, 3/15/26 (144A) 1,327,375
  360,000 NCL Finance, Ltd., 6.125%, 3/15/28 (144A) 373,500
  745,000 Royal Caribbean Cruises, Ltd., 5.5%, 4/1/28 (144A) 761,993
  270,000 Royal Caribbean Cruises, Ltd., 9.125%, 6/15/23 (144A) 293,437
  380,000 Royal Caribbean Cruises, Ltd., 11.5%, 6/1/25 (144A) 433,580
  2,790,000 Viking Cruises, Ltd., 6.25%, 5/15/25 (144A) 2,796,975
    Total Leisure Time $ 7,553,094
    Lodging — 2.6%  
  535,000 Boyd Gaming Corp., 4.75%, 6/15/31 (144A) $ 551,719
  880,000 Boyd Gaming Corp., 8.625%, 6/1/25 (144A) 953,700
  950,000 Hilton Domestic Operating Co., Inc., 3.75%, 5/1/29 (144A) 959,500
  910,000 Hilton Domestic Operating Co., Inc., 4.0%, 5/1/31 (144A) 923,650
  815,000 Hyatt Hotels Corp., 5.375%, 4/23/25 910,015
  390,000 Hyatt Hotels Corp., 5.75%, 4/23/30 467,729
  35,000 Marriott International, Inc., 5.75%, 5/1/25 40,013
  1,700,000 MGM Resorts International, 6.0%, 3/15/23 1,797,240
  725,000 Travel + Leisure Co., 6.625%, 7/31/26 (144A) 825,608
    Total Lodging $ 7,429,174
    Machinery-Construction & Mining — 0.3%
  955,000 Terex Corp., 5.0%, 5/15/29 (144A) $ 989,619
    Total Machinery-Construction & Mining $ 989,619
    Machinery-Diversified — 0.4%  
  1,113,000 Maxim Crane Works Holdings Capital LLC, 10.125%,  
    8/1/24 (144A) $ 1,139,434
    Total Machinery-Diversified $ 1,139,434
    Media — 3.6%  
  480,000 Audacy Capital Corp., 6.75%, 3/31/29 (144A) $ 483,802
  1,255,000 CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%,  
    6/1/33 (144A) 1,277,239
  2,050,000 Cengage Learning, Inc., 9.5%, 6/15/24 (144A) 2,097,847
  825,000 CSC Holdings LLC, 5.0%, 11/15/31 (144A) 791,752

 

The accompanying notes are an integral part of these financial statements.

Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21 21

 

 

 

Schedule of Investments | 9/30/21 (unaudited)

(continued)

     
Principal    
Amount    
USD ($)   Value
  Media — (continued)  
1,404,000 Diamond Sports Group LLC/Diamond Sports Finance  
  Co., 6.625%, 8/15/27 (144A) $ 614,250
303,000 Gray Television, Inc., 5.875%, 7/15/26 (144A) 312,772
1,057,000 Gray Television, Inc., 7.0%, 5/15/27 (144A) 1,133,632
3,530,000 Mav Acquisition Corp., 8.0%, 8/1/29 (144A) 3,372,138
  Total Media $ 10,083,432
  Mining — 4.3%  
940,000 Arconic Corp., 6.125%, 2/15/28 (144A) $ 996,419
1,665,000 Coeur Mining, Inc., 5.125%, 2/15/29 (144A) 1,598,483
3,440,000 Eldorado Gold Corp., 6.25%, 9/1/29 (144A) 3,400,887
375,000 First Quantum Minerals, Ltd., 6.875%, 3/1/26 (144A) 390,000
705,000 First Quantum Minerals, Ltd., 6.875%, 10/15/27 (144A) 745,978
1,750,000 First Quantum Minerals, Ltd., 7.25%, 4/1/23 (144A) 1,780,625
692,000 Hudbay Minerals, Inc., 6.125%, 4/1/29 (144A) 724,763
2,184,000 Joseph T Ryerson & Son, Inc., 8.5%, 8/1/28 (144A) 2,421,510
  Total Mining $ 12,058,665
  Multi-National — 0.3%  
IDR 10,330,000,000 Inter-American Development Bank, 7.875%, 3/14/23 $ 755,164
  Total Multi-National $ 755,164
  Oil & Gas — 12.6%  
2,430,000 Aethon United BR LP/Aethon United Finance Corp.,  
  8.25%, 2/15/26 (144A) $ 2,624,400
1,105,000 Ascent Resources Utica Holdings LLC/ARU Finance  
  Corp., 5.875%, 6/30/29 (144A) 1,127,100
4,000,000 Baytex Energy Corp., 8.75%, 4/1/27 (144A) 4,130,000
1,402,000 Cenovus Energy, Inc., 6.75%, 11/15/39 1,904,223
2,085,000 Colgate Energy Partners III LLC, 7.75%, 2/15/26 (144A) 2,194,462
330,000 Endeavor Energy Resources LP/EER Finance, Inc., 6.625%,  
  7/15/25 (144A) 347,737
830,000 Hilcorp Energy I LP/Hilcorp Finance Co., 6.0%,  
  2/1/31 (144A) 852,825
1,010,000 MEG Energy Corp., 5.875%, 2/1/29 (144A) 1,032,725
1,535,000 MEG Energy Corp., 7.125%, 2/1/27 (144A) 1,611,458
1,280,000 Murphy Oil Corp., 6.375%, 7/15/28 1,353,600
2,000,000 Neptune Energy Bondco Plc, 6.625%, 5/15/25 (144A) 2,057,500
2,010,000 Occidental Petroleum Corp., 4.4%, 4/15/46 2,001,538
571,000 PBF Holding Co. LLC/PBF Finance Corp., 9.25%,  
  5/15/25 (144A) 541,023
1,245,000 Petroleos Mexicanos, 6.875%, 10/16/25 (144A) 1,363,275
1,100,000 Precision Drilling Corp., 6.875%, 1/15/29 (144A) 1,148,890
1,010,000 Rockcliff Energy II LLC, 5.5%, 10/15/29 (144A) 1,025,150
2,269,000 Shelf Drilling Holdings, Ltd., 8.25%, 2/15/25 (144A) 1,781,165

 

The accompanying notes are an integral part of these financial statements.

22 Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21

 

 

 

       
Principal    
Amount    
USD ($)   Value
    Oil & Gas — (continued)  
  1,015,000 Shelf Drilling Holdings, Ltd., 8.875%, 11/15/24 (144A) $ 1,040,375
  2,120,000 Tap Rock Resources LLC, 7.0%, 10/1/26 (144A) 2,178,300
  2,075,000 Tullow Oil Plc, 10.25%, 5/15/26 (144A) 2,166,840
  2,015,000 Vine Energy Holdings LLC, 6.75%, 4/15/29 (144A) 2,176,200
  1,000,000 YPF SA, 6.95%, 7/21/27 (144A) 737,500
ARS 15,750,000 YPF SA, 16.5%, 5/9/22 (144A) 151,534
    Total Oil & Gas $ 35,547,820
    Oil & Gas Services — 2.0%  
  385,000 Archrock Partners LP/Archrock Partners Finance Corp.,  
    6.25%, 4/1/28 (144A) $ 397,512
  2,583,000 Archrock Partners LP/Archrock Partners Finance Corp.,  
    6.875%, 4/1/27 (144A) 2,712,150
  1,940,000 Exterran Energy Solutions LP/EES Finance Corp., 8.125%,  
    5/1/25 1,852,700
  703,000 USA Compression Partners LP/USA Compression  
    Finance Corp., 6.875%, 9/1/27 743,451
    Total Oil & Gas Services $ 5,705,813
    Packaging & Containers — 0.5%  
  1,500,000 Greif, Inc., 6.5%, 3/1/27 (144A) $ 1,569,585
    Total Packaging & Containers $ 1,569,585
    Pharmaceuticals — 4.5%  
  895,000 AdaptHealth LLC, 5.125%, 3/1/30 (144A) $ 895,456
  1,005,000 Bausch Health Americas, Inc., 8.5%, 1/31/27 (144A) 1,077,863
  535,000 Bausch Health Cos., Inc., 7.0%, 1/15/28 (144A) 548,214
  535,000 Bausch Health Cos., Inc., 7.25%, 5/30/29 (144A) 546,369
  1,970,000 Endo, DAC/Endo Finance LLC/Endo Finco, Inc.,  
    6.0%, 6/30/28 (144A) 1,432,151
  1,376,000 Endo, DAC/Endo Finance LLC/Endo Finco, Inc.,  
    9.5%, 7/31/27 (144A) 1,379,055
EUR 1,165,000 Grifols Escrow Issuer, 3.88%, 10/15/28 (144A) 1,364,465
  1,180,000 Mozart Debt Merger Sub, Inc., 3.88%, 4/1/29 (144A) 1,180,000
  520,000 Mozart Debt Merger Sub, Inc., 5.25%, 10/1/29 (144A) 520,000
  965,000 P&L Development LLC/PLD Finance Corp., 7.75%,  
    11/15/25 (144A) 1,002,346
  579,000 Par Pharmaceutical, Inc., 7.5%, 4/1/27 (144A) 589,856
  2,080,000 Teva Pharmaceutical Finance Netherlands III BV, 2.8%,  
    7/21/23 2,067,603
    Total Pharmaceuticals $ 12,603,378
    Pipelines — 7.2%  
  910,000 DCP Midstream Operating LP, 5.6%, 4/1/44 $ 1,060,150
  1,175,000(c) DCP Midstream Operating LP, 5.85% (3 Month USD  
    LIBOR + 385 bps), 5/21/43 (144A) 1,092,750

 

The accompanying notes are an integral part of these financial statements.

Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21 23

 

 

 

Schedule of Investments | 9/30/21 (unaudited)

(continued)

     
Principal    
Amount    
USD ($)   Value
  Pipelines — (continued)  
1,210,000 Delek Logistics Partners LP/Delek Logistics Finance  
  Corp., 6.75%, 5/15/25 $ 1,240,262
1,060,000 Delek Logistics Partners LP/Delek Logistics Finance  
  Corp., 7.125%, 6/1/28 (144A) 1,128,900
1,524,000(d) Energy Transfer LP, 3.143% (3 Month USD LIBOR +  
  302 bps), 11/1/66 1,256,995
1,965,000(b)(c) Energy Transfer LP, 7.125% (5 Year CMT Index + 531 bps) 2,046,056
925,000 EnLink Midstream Partners LP, 4.15%, 6/1/25 953,240
248,000 EnLink Midstream Partners LP, 5.05%, 4/1/45 226,300
270,000 EnLink Midstream Partners LP, 5.45%, 6/1/47 260,507
717,000 EnLink Midstream Partners LP, 5.6%, 4/1/44 684,735
770,000 Genesis Energy LP/Genesis Energy Finance Corp.,  
  8.0%, 1/15/27 781,704
421,000 Global Partners LP/GLP Finance Corp., 7.0%, 8/1/27 438,893
1,760,000 Harvest Midstream I LP, 7.5%, 9/1/28 (144A) 1,874,664
1,150,000 NuStar Logistics LP, 6.375%, 10/1/30 1,265,000
1,850,000 ONEOK, Inc., 6.875%, 9/30/28 2,307,343
1,272,000 PBF Logistics LP/PBF Logistics Finance Corp., 6.875%,  
  5/15/23 1,240,200
1,801,000 Williams Cos., Inc., 5.75%, 6/24/44 2,367,688
  Total Pipelines $ 20,225,387
  REITs — 2.0%  
1,363,000 MPT Operating Partnership LP/MPT Finance Corp.,  
  4.625%, 8/1/29 $ 1,462,499
230,000 Uniti Group LP/Uniti Fiber Holdings, Inc./CSL Capital  
  LLC, 6.0%, 1/15/30 (144A) 227,988
3,676,000 Uniti Group LP/Uniti Fiber Holdings, Inc./CSL Capital  
  LLC, 7.875%, 2/15/25 (144A) 3,884,062
  Total REITs $ 5,574,549
  Retail — 3.7%  
1,240,000 AAG FH LP/AAG FH Finco, Inc., 9.75%, 7/15/24 (144A) $ 1,227,600
520,000 Ambience Merger Sub, Inc., 7.125%, 7/15/29 (144A) 518,700
589,000 Asbury Automotive Group, Inc., 4.75%, 3/1/30 614,769
1,625,000 Bath & Body Works, Inc., 6.625%, 10/1/30 (144A) 1,844,375
1,045,000 Golden Nugget, Inc., 6.75%, 10/15/24 (144A) 1,046,358
470,000 IRB Holding Corp., 7.0%, 6/15/25 (144A) 498,200
1,365,000 LCM Investments Holdings II LLC, 4.875%, 5/1/29 (144A) 1,400,586
615,000 Macy’s Retail Holdings LLC, 5.875%, 4/1/29 (144A) 667,275
880,000 Party City Holdings, Inc., 8.75%, 2/15/26 (144A) 920,700
475,000 PetSmart, Inc./PetSmart Finance Corp., 7.75%,  
  2/15/29 (144A) 518,344
275,000 SRS Distribution, Inc., 6.125%, 7/1/29 (144A) 283,250
798,000 Staples, Inc., 7.5%, 4/15/26 (144A) 809,970
  Total Retail $ 10,350,127

 

The accompanying notes are an integral part of these financial statements.

24 Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21

 

 

 

     
Principal    
Amount    
USD ($)   Value
  Software — 0.5%  
1,350,000 Rackspace Technology Global, Inc., 5.375%,  
  12/1/28 (144A) $ 1,326,375
  Total Software $ 1,326,375
  Telecommunications — 5.3%  
1,495,000 Altice France Holding SA, 6.0%, 2/15/28 (144A) $ 1,425,729
1,169,000 Altice France Holding SA, 10.5%, 5/15/27 (144A) 1,274,210
270,000 Altice France SA, 5.125%, 1/15/29 (144A) 264,600
1,075,000 Cincinnati Bell, Inc., 8.0%, 10/15/25 (144A) 1,120,365
559,000 CommScope Technologies LLC, 6.0%, 6/15/25 (144A) 567,111
910,000 CommScope, Inc., 4.75%, 9/1/29 (144A) 911,138
119,296 Digicel International Finance, Ltd./Digicel international  
  Holdings, Ltd., 8.0%, 12/31/26 (144A) 115,420
298,833 Digicel International Finance, Ltd./Digicel international  
  Holdings, Ltd., 8.75%, 5/25/24 (144A) 309,292
163,968(g) Digicel International Finance, Ltd./Digicel international  
  Holdings, Ltd., 13.0% (7.0% PIK or 6.0% cash),
  12/31/25 (144A) 165,198
1,050,000 LogMeIn, Inc., 5.5%, 9/1/27 (144A) 1,069,562
1,700,000 Lumen Technologies, Inc., 5.625%, 4/1/25 1,848,750
3,080,000 Sprint Corp., 7.125%, 6/15/24 3,505,656
41,000 Sprint Corp., 7.625%, 3/1/26 49,610
2,385,000 Windstream Escrow LLC/Windstream Escrow Finance  
  Corp., 7.75%, 8/15/28 (144A) 2,491,013
  Total Telecommunications $ 15,117,654
  Transportation — 3.6%  
2,640,000 Carriage Purchaser, Inc., 7.875%, 10/15/29 (144A) $ 2,632,146
1,375,000 Danaos Corp., 8.5%, 3/1/28 (144A) 1,519,375
820,000 Seaspan Corp., 5.5%, 8/1/29 (144A) 836,580
1,500,000 Seaspan Corp., 6.5%, 4/29/26 (144A) 1,612,500
1,240,000 Watco Cos., LLC/Watco Finance Corp., 6.5%,  
  6/15/27 (144A) 1,326,800
2,055,000 Western Global Airlines LLC, 10.375%, 8/15/25 (144A) 2,301,580
  Total Transportation $ 10,228,981
  Trucking & Leasing — 0.3%  
690,000 Fortress Transportation & Infrastructure Investors LLC,  
  9.75%, 8/1/27 (144A) $ 781,425
  Total Trucking & Leasing $ 781,425
  TOTAL CORPORATE BONDS  
  (Cost $335,286,764) $ 359,277,371

 

The accompanying notes are an integral part of these financial statements.

Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21 25

 

 

 

Schedule of Investments | 9/30/21 (unaudited)

(continued)

     
Principal    
Amount    
USD ($)   Value
  FOREIGN GOVERNMENT BONDS — 1.4% of  
  Net Assets  
  Bahrain — 0.4%  
1,055,000 Bahrain Government International Bond, 5.625%,  
  9/30/31 (144A) $ 1,044,450
  Total Bahrain $ 1,044,450
  Mexico — 0.7%  
MXN 38,420,700 Mexican Bonos, 8.0%, 12/7/23 $ 1,927,176
  Total Mexico $ 1,927,176
  Nigeria — 0.1%  
475,000 Nigeria Government International Bond, 7.375%,  
  9/28/33 (144A) $ 478,800
  Total Nigeria $ 478,800
  Russia — 0.2%  
452,400(i) Russian Government International Bond, 7.5%, 3/31/30 $ 524,784
  Total Russia $ 524,784
  TOTAL FOREIGN GOVERNMENT BONDS  
  (Cost $3,912,161) $ 3,975,210
 

 

Face    
Amount    
USD ($)    
  INSURANCE-LINKED SECURITIES — 0.4% of  
  Net Assets#  
  Collateralized Reinsurance — 0.1%  
  Multiperil – U.S. — 0.0%†  
500,000+(j) Dingle Re 2019, 2/1/23 $ 10,263
  Multiperil – Worldwide — 0.1%  
500,000+(a)(j) Cypress Re 2017, 1/31/23 $ 50
54,000+(j) Limestone Re, 3/1/23 (144A) 21,260
277,770+(a)(j) Oyster Bay Re 2018, 1/31/23 252,104
400,000+(a)(j) Resilience Re, 10/10/21 (144A)
    $ 273,414
  Total Collateralized Reinsurance $ 283,677
  Reinsurance Sidecars — 0.3%  
  Multiperil – U.S. — 0.1%  
1,000,000+(a)(j) Carnoustie Re 2017, 11/30/22 $ 131,800
500,000+(a)(k) Harambee Re 2018, 12/31/22 500
600,000+(k) Harambee Re 2019, 12/31/22 2,160
    $ 134,460

 

The accompanying notes are an integral part of these financial statements.

26 Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21

 

 

 

     
Face    
Amount    
USD ($)   Value
  Multiperil – Worldwide — 0.2%  
3,037+(k) Alturas Re 2019-2, 3/10/23 $ 4,026
24,550+(k) Alturas Re 2019-3, 9/12/23 12,454
162,311+(j) Alturas Re 2020-1A, 3/10/23 (144A) 23,081
29,558+(k) Alturas Re 2020-2, 3/10/23 25,444
1,167,977+(a)(j) Berwick Re 2018-1, 12/31/22 90,285
834,446+(a)(j) Berwick Re 2019-1, 12/31/22 99,716
849+(j) Limestone Re 2018, 3/1/23
500,000+(a)(k) Lorenz Re 2018, 7/1/22 3,824
499,318+(a)(k) Lorenz Re 2019, 6/30/22 38,847
500,000+(a)(j) Merion Re 2018-2, 12/31/22 82,750
1,000,000+(a)(j) Pangaea Re 2016-2, 11/30/22 1,783
500,000+(a)(j) Pangaea Re 2018-1, 12/31/22 10,527
1,000,000+(a)(j) Pangaea Re 2018-3, 7/1/22 20,743
409,624+(a)(j) Pangaea Re 2019-1, 2/1/23 8,535
735,313+(a)(j) Pangaea Re 2019-3, 7/1/23 26,450
300,000+(a)(j) Sector Re V, 12/1/23 (144A) 57,718
20,000+(j) Sector Re V, 12/1/24 (144A) 57,310
250,000+(j) Sussex Re 2020-1, 12/31/22 9,900
500,000+(j) Versutus Re 2018, 12/31/22
441,274+(j) Versutus Re 2019-A, 12/31/22
58,727+(j) Versutus Re 2019-B, 12/31/22
253,645+(a)(j) Woburn Re 2018, 12/31/22 17,891
244,914+(a)(j) Woburn Re 2019, 12/31/22 63,638
    $ 654,922
  Total Reinsurance Sidecars $ 789,382
  TOTAL INSURANCE-LINKED SECURITIES  
  (Cost $1,868,684) $ 1,073,059
 

 

Principal    
Amount    
USD ($)    
  SENIOR SECURED FLOATING RATE LOAN
  INTERESTS — 4.3% of Net Assets*(d)
  Aerospace & Defense — 0.6%  
1,140,000 Grupo Aeroméxico, SAB De CV, DIP Tranche 1 Term  
  Loan, 9.0% (LIBOR + 800 bps), 12/30/21 $ 1,148,550
503,599(g) Grupo Aeroméxico, SAB De CV, DIP Tranche 2 Term  
  Loan, 0.0% (15.5% PIK 0% Cash), 12/30/21 516,818
  Total Aerospace & Defense $ 1,665,368
  Airlines — 0.1%  
375,000 AAdvantage Loyality IP, Ltd., Initial Term Loan, 5.5%  
  (LIBOR + 475 bps), 4/20/28 $ 388,045
  Total Airlines $ 388,045

 

The accompanying notes are an integral part of these financial statements.

Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21 27

 

 

 

Schedule of Investments | 9/30/21 (unaudited)

(continued)

     
Principal    
Amount    
USD ($)   Value
  Diversified & Conglomerate Service — 0.9%
1,418,394 First Brands Group LLC, First Lien 2021 Term Loan, 6.0%  
  (LIBOR + 500 bps), 3/30/27 $ 1,434,705
1,075,157 Team Health Holdings, Inc., Initial Term Loan, 3.75%  
  (LIBOR + 275 bps), 2/6/24 1,051,350
  Total Diversified & Conglomerate Service $ 2,486,055
  Entertainment & Leisure — 0.9%  
2,647,125 Enterprise Development Authority, Term B Loan,  
  5.0% (LIBOR + 425 bps), 2/28/28 $ 2,656,985
  Total Entertainment & Leisure $ 2,656,985
  Healthcare, Education & Childcare — 0.1%
199,000 Surgery Center Holdings, Inc., 2021 New Term Loan,  
  4.5% (LIBOR + 375 bps), 8/31/26 $ 199,567
  Total Healthcare, Education & Childcare $ 199,567
  Machinery - 0.4%  
1,140,000 Grinding Media, Inc., First Lien Initial Term  
  Loan, 9/21/28 $ 1,134,300
  Total Machinery $ 1,134,300
  Securities & Trusts — 0.6%  
1,377,847 Spectacle Gary Holdings LLC, Closing Date Term Loan,  
  11.0% (LIBOR + 900 bps), 12/23/25 $ 1,501,853
99,850 Spectacle Gary Holdings LLC, Delayed Draw Term Loan,  
  11.0% (LIBOR + 900 bps), 12/23/25 108,836
  Total Securities & Trusts $ 1,610,689
  Telecommunications — 0.7%  
1,960,000 Commscope, Inc., Initial Term Loan, 3.334% (LIBOR +  
  325 bps), 4/6/26 $ 1,952,957
  Total Telecommunications $ 1,952,957
  TOTAL SENIOR SECURED FLOATING RATE LOAN INTERESTS  
  (Cost $11,691,426) $ 12,093,966

 

Shares    
  RIGHTS/WARRANTS — 0.1% of Net Assets  
  Health Care Providers & Services — 0.0%†  
1,819,798(l) ANR, Inc., 3/31/23 $ 4,549
  Total Health Care Providers & Services $ 4,549
  Oil, Gas & Consumable Fuels — 0.0%†  
354(a)(m) Alpha Metallurgical Resources, Inc., 7/26/23 $ 6,354
  Total Oil, Gas & Consumable Fuels $ 6,354

 

The accompanying notes are an integral part of these financial statements.

28 Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21

 

 

 

             
Shares           Value
  Transportation — 0.1%        
10,071^(a)(n) Syncreon Group, 10/1/24     $ 207,463
  Total Transportation       $ 207,463
  TOTAL RIGHTS/WARRANTS      
  (Cost $308,610)       $ 218,366
Number of       Strike Expiration  
Contracts Description Counterparty Amount Price Date  
  OVER THE COUNTER (OTC) CURRENCY PUT  
  OPTIONS PURCHASED — 0.0%†    
3,500,000 Put EUR Bank of EUR 31,099 EUR 1.15 2/15/22 $ 35,039
  Call USD America NA        
1,650,000 Put EUR JPMorgan EUR 23,405 EUR 1.17 2/4/22 26,856
  Call USD Chase Bank NA        
            $ 61,895
  TOTAL OVER THE COUNTER (OTC) CURRENCY PUT
  OPTIONS PURCHASED        
  (Premiums paid $54,504)     $ 61,895
  TOTAL OPTIONS PURCHASED      
  (Premiums paid $54,504)     $ 61,895
  TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS — 144.7%  
  (Cost $384,714,650)(n)(o)     $ 408,756,196
  OVER THE COUNTER (OTC) CURRENCY CALL  
  OPTIONS WRITTEN — (0.0)%†      
(3,500,000) Call EUR Bank of EUR 31,099 EUR 1.20 2/15/22 $ (10,350)
  Put USD America NA        
(1,650,000) Call EUR JPMorgan EUR 23,405 EUR 1.25 2/4/22 (398)
  Put USD Chase Bank NA        
            $ (10,748)
  TOTAL OVER THE COUNTER (OTC) CURRENCY CALL  
  OPTIONS WRITTEN        
  (Premiums received $(54,504))     $ (10,748)
  OTHER ASSETS AND LIABILITIES — (44.7)%   $(126,219,014)
  NET ASSETS — 100.0%       $ 282,526,434

 

bps Basis Points.
CMT Constant Maturity Treasury Index.
FREMF Freddie Mac Multifamily Fixed-Rate Mortgage Loans.
LIBOR London Interbank Offered Rate.
REIT Real Estate Investment Trust.

 

The accompanying notes are an integral part of these financial statements.

Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21 29

 

 

 

Schedule of Investments | 9/30/21 (unaudited)

(continued)

(144A)Security is exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold normally to qualified institutional buyers in a transaction exempt from registration. At September 30, 2021, the value of these securities amounted to $309,075,256, or 109.4% of net assets.
Amount rounds to less than 0.1%.
*Senior secured floating rate loan interests in which the Fund invests generally pay interest at rates that are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates are generally (i) the lending rate offered by one or more major European banks, such as LIBOR, (ii) the prime rate offered by one or more major United States banks, (iii) the rate of a certificate of deposit or (iv) other base lending rates used by commercial lenders. The interest rate shown is the rate accruing at September 30, 2021.
+Security that used significant unobservable inputs to determine its value.
^Security is valued using fair value methods (other than supplied by independent pricing services). See Notes to Financial Statements — Note 1A.
(a)Non-income producing security.
(b)Security is perpetual in nature and has no stated maturity date.
(c)The interest rate is subject to change periodically. The interest rate and/or reference index and spread shown at September 30, 2021.
(d)Floating rate note. Coupon rate, reference index and spread shown at September 30, 2021.
(e) Security is priced as a unit.
(f)Security issued with a zero coupon. Income is recognized through accretion of discount.
(g)Payment-in-kind (PIK) security which may pay interest in the form of additional principal amount.
(h)Security is in default.
(i)Debt obligation initially issued at one coupon which converts to a higher coupon at a specific date. The rate shown is the rate at September 30, 2021.
(j)Issued as participation notes..
(k)Issued as preference shares.
(l)ANR, Inc., 3/31/23 warrants are exercisable into 1,819,798 shares.
(m)Alpha Metallurgical Resources, Inc., 7/26/23 warrants are exercisable into 354 shares.
(n) Syncreon Group, 10/1/24 warrants are exercisable into 10,071 shares.
(o)Distributions of investments by country of issue, as a percentage of long-term holdings based on country of domicile, is as follows:
United States74.7 %
Canada7.1  
Luxembourg2.5  
Mexico1.7  
Bermuda1.4  
Netherlands1.3  
Turkey1.0  
Other (individually less than 1%)

10.3

 
 100.0 %
 

#Securities are restricted as to resale.

 

The accompanying notes are an integral part of these financial statements.

30 Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21

 

 

 

Restricted Securities Acquisition date Cost Value
Alturas Re 2019-2 12/19/2018 $ 3,037 $ 4,026
Alturas Re 2019-3 6/26/2019 24,550 12,454
Alturas Re 2020-1A 12/27/2019 162,311 23,081
Alturas Re 2020-2 1/1/2020 29,558 25,444
Berwick Re 2018-1 1/10/2018 170,602 90,285
Berwick Re 2019-1 12/31/2018 99,709 99,716
Carnoustie Re 2017 1/3/2017 237,757 131,800
Cypress Re 2017 1/24/2017 1,681 50
Dingle Re 2019 3/4/2019 10,263
Harambee Re 2018 12/19/2017 18,030 500
Harambee Re 2019 12/20/2018 2,160
Limestone Re 6/20/2018 359 21,260
Limestone Re 2018 6/20/2018 849
Lorenz Re 2018 6/26/2018 95,484 3,824
Lorenz Re 2019 6/26/2019 157,592 38,847
Merion Re 2018-2 12/28/2017 20,576 82,750
Oyster Bay Re 2018 1/17/2018 247,922 252,104
Pangaea Re 2016-2 5/31/2016 1,783
Pangaea Re 2018-1 12/26/2017 71,503 10,527
Pangaea Re 2018-3 5/31/2018 240,862 20,743
Pangaea Re 2019-1 1/9/2019 4,301 8,535
Pangaea Re 2019-3 7/25/2019 22,059 26,450
Resilience Re 4/13/2017 1,307
Sector Re V 12/4/2018 94,450 57,718
Sector Re V 1/1/2020 20,000 57,310
Sussex Re 2020-1 1/23/2020 9,900
Versutus Re 2018 1/31/2018
Versutus Re 2019-A 1/28/2019
Versutus Re 2019-B 12/24/2018
Woburn Re 2018 3/20/2018 89,024 17,891
Woburn Re 2019 1/30/2019 55,161 63,638
Total Restricted Securities     $1,073,059
% of Net assets     0.4%

 

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS    
  In         Unrealized
Currency Exchange Currency     Settlement Appreciation
Purchased for Sold Deliver Counterparty Date (Depreciation)
NOK 7,300,000 EUR (719,559) Bank of 1/10/22 $ (903)
        America NA    
USD 2,271,584 EUR (1,933,000) Bank of 11/24/21 30,336
        America NA    
EUR 6,045,000 USD (7,122,758) Citibank NA 10/27/21 (117,701)
EUR 2,900,000 USD (3,411,223) Citibank NA 12/21/21 (46,287)
NOK 7,300,000 EUR (713,441) JPMorgan Chase 10/5/21 8,815
        Bank NA    
TOTAL FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS   $(125,740)

 

The accompanying notes are an integral part of these financial statements.

Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21 31

 

 

 

Schedule of Investments | 9/30/21 (unaudited)

(continued)

Principal amounts are denominated in U.S. dollars ("USD") unless otherwise noted.

ARS— Argentine Peso
EUR— Euro
GBP— Great British Pound
IDR— Indonesian Rupiah
MXN— Mexican Peso
NOK— Norwegian Krone

 

Purchases and sales of securities (excluding temporary cash investments) for the six months ended September 30, 2021, aggregated $82,542,238 and $72,055,403, respectively.

The Fund is permitted to engage in purchase and sale transactions (“cross trades”) with certain funds and accounts for which Amundi Asset Management US, Inc. (the “Adviser”) serves as the Fund’s investment adviser, as set forth in Rule 17a-7 under the Investment Company Act of 1940, pursuant to procedures adopted by the Board of Directors. Under these procedures, cross trades are effected at current market prices. During the six months ended September 30, 2021, the Fund did not engage in any cross trade activity.

At September 30, 2021, the net unrealized appreciation on investments based on cost for federal tax purposes of $385,008,670 was as follows:

Aggregate gross unrealized appreciation for all investments in which  
there is an excess of value over tax cost $ 31,956,406
Aggregate gross unrealized depreciation for all investments in which  
there is an excess of tax cost over value (8,290,864)
Net unrealized appreciation $ 23,665,542

 

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels below.

Level 1 –unadjusted 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 Fund’s own assumptions in determining fair value of investments). See Notes to Financial Statements — Note 1A.

 

The accompanying notes are an integral part of these financial statements.

32 Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21

 

 

 

The following is a summary of the inputs used as of September 30, 2021, in valuing the Fund’s investments:

  Level 1 Level 2 Level 3 Total
Common Stocks        
Oil, Gas & Consumable        
Fuels $ 436,346 $ — $ 692,994 $ 1,129,340
Specialty Retail 104,409 104,409
All Other Common Stock 2,155,599 2,155,599
Convertible Preferred Stock 2,371,200 2,371,200
Preferred Stocks        
Diversified Financial        
Services 3,195,000 3,195,000
Internet 136,153 136,153
All Other Preferred Stock 237,786 237,786
Collateralized Mortgage        
Obligations 6,637,237 6,637,237
Commercial Mortgage-Backed        
Securities 9,838,514 9,838,514
Convertible Corporate Bonds 6,251,091 6,251,091
Corporate Bonds 359,277,371 359,277,371
Foreign Government Bonds 3,975,210 3,975,210
Insurance-Linked Securities        
Collateralized Reinsurance        
Multiperil - U.S. 10,263 10,263
Multiperil - Worldwide 273,414 273,414
Reinsurance Sidecars        
Multiperil - U.S. 134,460 134,460
Multiperil - Worldwide 654,922 654,922
Senior Secured Floating Rate        
Loan Interests 12,093,966 12,093,966
Rights/Warrants        
Health Care Providers &        
Services 4,549 4,549
Transportation 207,463 207,463
All Other Right/Warrant 6,354 6,354
Over The Counter (OTC)        
Currency Put Option        
Purchased 61,895 61,895
Total Investments        
in Securities $ 5,207,285 $401,678,449 $ 1,870,462 $408,756,196

 

The accompanying notes are an integral part of these financial statements.

Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21 33

 

 

 

Schedule of Investments | 9/30/21 (unaudited)

(continued)

  Level 1 Level 2 Level 3 Total
Other Financial Instruments        
Credit agreement(a) $ — $ (127,000,000) $ — $ (127,000,000)
Over The Counter (OTC)        
Currency Call Option        
Written (10,748) (10,748)
Net unrealized        
depreciation on        
forward foreign        
currency exchange        
contracts (125,740) (125,740)
Total Other        
Financial Instruments $ — $(127,136,488) $ — $(127,136,488)

 

(a)The Fund may hold liabilities in which the fair value approximates the carrying amount for financial statement purposes.

The accompanying notes are an integral part of these financial statements.

34 Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21

 

 

 

      Change in            
  Balance Realized unrealized     Accrued Transfers Transfers Balance
  as of gain appreciation     discounts/ into out of as of
  3/31/21 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* Level 3* 9/30/21
Common Stocks                  
Oil, Gas &                  
Consumable                  
Fuels $ 599,029 $ — $ 93,965 $ — $ — $ — $ — $ — $ 692,994
Specialty Retail 104,409 104,409
Insurance-Linked                  
Securities                  
Collateralized                  
Reinsurance                  
Multiperil –                  
U.S. 10,263 10,263
Multiperil –                  
Worldwide 385,906 (457) (9,136) (102,899) 273,414
Reinsurance                  
Sidecars                  
Multiperil –                  
U.S. 138,640 3,216 (7,396) 134,460
Multiperil –                  
Worldwide 815,472 (33,874) (52,688) (73,988) 654,922
Total $2,053,719 $(34,331) $ 35,357 $ $(184,283) $ — $ — $ — $1,870,462

 

(1)Realized gain (loss) on these securities is included in the realized gain (loss) from investments in unaffiliated issuers on the Statement of Operations.
(2)Unrealized appreciation (depreciation) on these securities is included in the change in unrealized appreciation (depreciation) from investments in unaffiliated issuers on the Statement of Operations.
*Transfers are calculated on the beginning of period value. During the six months ended September 30, 2021, there were no transfers in or out of Level 3.
   
Net change in unrealized appreciation (depreciation) of Level 3 investments still held and  
considered Level 3 at September 30, 2021: $47,750

 

The accompanying notes are an integral part of these financial statements.

Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21 35

 

 

 

Statement of Assets and Liabilities | 9/30/21

(unaudited)

ASSETS:  
Investments in unaffiliated issuers, at value (cost $384,714,650) $ 408,756,196
Foreign currencies, at value (cost $1,276,062) 1,257,241
Receivables —  
Investment securities sold 3,691,518
Interest 6,959,324
Other assets 14,760
Total assets $ 420,679,039
LIABILITIES:  
Overdraft due to custodian $ 2,989,423
Payables —  
Credit agreement 127,000,000
Investment securities purchased 7,854,446
Interest expense 76,369
Directors’ fees 63
Written options outstanding (net premiums received $(54,504)) 10,748
Net unrealized depreciation on forward foreign currency exchange contracts 125,740
Accrued expenses 95,816
Total liabilities $ 138,152,605
NET ASSETS:  
Paid-in capital $ 372,573,499
Distributable earnings (loss) (90,047,065)
Net assets $ 282,526,434
NET ASSET VALUE PER SHARE:  
No par value  
Based on $282,526,434/29,298,625 shares $ 9.64

 

The accompanying notes are an integral part of these financial statements.

36 Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21

 

  

Statement of Operations (unaudited)

FOR THE SIX MONTHS ENDED 9/30/21

INVESTMENT INCOME:    
Interest from unaffiliated issuers $13,783,707  
Dividends from unaffiliated issuers (net of foreign taxes    
withheld $309) 357,431  
Total investment income   $14,141,138
EXPENSES:    
Management fees $ 1,227,554  
Administrative expense 37,383  
Transfer agent fees 9,401  
Shareowner communications expense 13,002  
Custodian fees 9,451  
Professional fees 258,388  
Printing expense 20,714  
Pricing fees 13,941  
Directors’ fees 7,649  
Interest expense 635,400  
Miscellaneous 165,598  
Total expenses   $ 2,398,481
Net investment income   $11,742,657
REALIZED AND UNREALIZED GAIN (LOSS)    
ON INVESTMENTS:    
Net realized gain (loss) on:    
Investments in unaffiliated issuers $ 1,479,078  
Written options 28,368  
Forward foreign currency exchange contracts (153,998)  
Other assets and liabilities denominated in    
foreign currencies (75,274) $ 1,278,174
Change in net unrealized appreciation (depreciation) on:    
Investments in unaffiliated issuers $ 1,661,333  
Written options 14,037  
Forward foreign currency exchange contracts 46,848  
Other assets and liabilities denominated in    
foreign currencies (7,048) $ 1,715,170
Net realized and unrealized gain (loss) on investments   $ 2,993,344
Net increase in net assets resulting from operations   $14,736,001

 

The accompanying notes are an integral part of these financial statements.

Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21 37

 

 

 

Statements of Changes in Net Assets

  Six Months  
  Ended Year
  9/30/21 Ended
  (unaudited) 3/31/21
FROM OPERATIONS:    
Net investment income (loss) $ 11,742,657 $ 23,425,268
Net realized gain (loss) on investments 1,278,174 (18,610,050)
Change in net unrealized appreciation (depreciation)    
on investments 1,715,170 87,597,081
Net increase (decrease) in net assets resulting    
from operations $ 14,736,001 $ 92,412,299
DISTRIBUTIONS TO SHAREOWNERS:    
($0.44 and $0.84 per share, respectively) $ (12,730,512) $ (24,408,529)
Total distributions to shareowners $ (12,730,512) $ (24,408,529)
FROM FUND SHARE TRANSACTIONS:    
Reinvestment of distributions $ 655,797 $ —
Net increase (decrease) in net assets resulting from    
Fund share transactions $ 655,797 $ —
Net increase (decrease) in net assets $ 2,661,286 $ 68,003,770
NET ASSETS:    
Beginning of year $279,865,148 $211,861,378
End of year $282,526,434 $279,865,148

 

  Six Months Six Months    
  Ended Ended    
  9/30/21 9/30/21 Year Ended Year Ended
  Shares Amount 3/31/21 3/31/21
  (unaudited) (unaudited) Shares Amount
FUND SHARE TRANSACTION        
Shares sold $ — $ —
Reinvestment of distributions 66,854 655,797
Less shares repurchased
Net increase 66,854 $655,797 $ —

 

The accompanying notes are an integral part of these financial statements.

38 Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21

 

 

Statement of Cash Flows

FOR THE SIX MONTHS ENDED 9/30/21

Cash Flows From Operating Activities:  
Net increase in net assets resulting from operations $ 14,736,001
Adjustments to reconcile net increase in net assets resulting from operations  
to net cash, restricted cash and foreign currencies from operating activities:  
Purchases of investment securities $(86,850,271)
Proceeds from disposition and maturity of investment securities 68,687,696
Net (accretion) and amortization of discount/premium on investment securities (440,762)
Change in unrealized appreciation on investments in unaffiliated issuers (1,661,333)
Change in unrealized appreciation on forward foreign currency exchange contracts (46,848)
Change in unrealized depreciation on other assets and liabilities denominated  
in foreign currencies 18,996
Change in unrealized appreciation on written options (14,037)
Net realized gain on investments (1,479,078)
Increase in interest receivable (280,347)
Increase in other assets (9,955)
Decrease in due to affiliates (191,539)
Decrease in Directors' fees payable (54)
Increase in accrued expenses payable 8,865
Proceeds from sale of written options 31,100
Realized gains on written options (28,368)
Net cash, restricted cash and foreign currencies from operating activities $ (7,519,934)
Cash Flows Used in Financing Activities:  
Decrease in due to custodian $ 2,989,423
Borrowings received 4,000,000
Distributions to shareowners $(12,730,512)
Reinvestment of distributions 655,797
Increase in interest expense payable 76,331
Net cash, restricted cash and foreign currencies used in financing activities $ (5,008,961)
Effect of Foreign Exchange Fluctuations on Cash:  
Effect of foreign exchange fluctuations on cash $ (18,996)
Cash, restricted cash and foreign currencies:  
Beginning of the year* $ 13,805,132
End of the year* $ 1,257,241
Cash Flow Information:  
Cash paid for interest $ 559,069

 

*The following table provides a reconciliation of cash, restricted cash and foreign currencies reported within Statement of Assets and Liabilities that sum to the total of the same such amounts shown in the Statement of Cash Flows:
     
  Six Months Year
  Ended 9/30/21 Ended
  (unaudited) 3/31/21
Cash $ — $13,721,537
Foreign currencies, at value 1,257,241 83,595
Swaps collateral
Due from broker for swaps
Total cash, restricted cash and foreign currencies    
shown in the Statement of Cash Flows $1,257,241 $13,805,132

 

The accompanying notes are an integral part of these financial statements.

Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21 39

 

 

 

Financial Highlights

  Six Months          
  Ended Year Year Year Year Year
  9/30/21 Ended Ended Ended Ended Ended
  (unaudited) 3/31/21 3/31/20 3/31/19 3/31/18 3/31/17*
Per Share Operating Performance            
Net asset value, beginning of period $9.57 $7.25 $9.91 $10.52 $10.70 $9.34
Increase (decrease) from investment operations: (a)            
Net investment income $0.40 $0.80 $0.81 $0.80 $0.85 $0.95
Net realized and unrealized gain (loss) on investments 0.11 2.36 (2.66) (0.62) (0.25) 1.38
Net increase (decrease) from investment operations $0.51 $3.16 ($1.85) $0.18 $0.60 $2.33
Distributions to shareowners from:            
Net investment income and previously undistributed            
net investment income $ (0.44)** $ (0.84)** ($0.81) ($0.79) ($0.78) $ (0.97)**
Net increase (decrease) in net asset value $0.07 $2.32 ($2.66) ($0.61) ($0.18) $1.36
Net asset value, end of period $9.64 $9.57 $7.25 $9.91 $10.52 $10.70
Market value, end of period $9.76 $9.37 $6.42 $8.95 $9.39 $9.87
Total return at net asset value (b) 5.30%(c) 46.08% (19.93)% 2.79% 6.38% 26.13%
Total return at market value (b) 8.88%(c) 61.52% (21.49)% 4.00% 2.94% 8.23%
Ratios to average net assets of shareowners:            
Total expenses plus interest expense (d)(e) 1.69%(f) 1.60% 2.35% 2.41% 2.14% 2.10%
Net investment income available to shareowners 8.27%(f) 9.10% 8.17% 7.93% 7.88% 9.36%
Portfolio turnover rate 18%(c) 50% 36% 33% 29% 48%
Net assets, end of period (in thousands) $282,526 $279,865 $211,861 $289,556 $307,410 $312,757

 

The accompanying notes are an integral part of these financial statements.

40 Pioneer High Income Fund, Inc. | Semiannual Report | 9/30/21

 

 

 

             
  Six Months
  Ended Year Year Year Year Year
  9/30/21 Ended Ended Ended Ended Ended
  (unaudited) 3/31/21 3/31/20 3/31/19 3/31/18 3/31/17*
Total amount of debt outstanding (in thousands) $127,000 $123,000 $ 99,000 $125,000