Pioneer High Income Fund Faces Liquidation Amid Financial Challenges

Pioneer High Income Fund has been impacted by the liquidation of the Pioneer closed end funds. As a finance expert with experience at Bloomberg, I can confirm that the fund has been affected by this event, but there is no further information provided in the article.

The Pioneer High Income Fund, Inc. (PHT), a high-yield closed-end fund (CEF) with an asset under management (AUM) of $250 million, has been impacted by a significant corporate action: liquidation. This decision, approved by shareholders on August 20, 2025, will see the fund cease trading on the NYSE by September 25, 2025, and distribute liquidation proceeds to shareholders on or about September 30, 2025 [1].

The liquidation decision stems from a failed attempt to replace the fund's former parent company, Amundi, with Texas-based Victory Capital. The acquisition was initially announced in 2024 but did not close until 2025. Shareholders were asked to approve a new investment advisory agreement with Victory Capital, but the vote did not gain sufficient approvals. Consequently, the fund entered an interim agreement with Victory Capital, which allowed the new manager to manage the fund for up to 150 days. After considering various options, the Board approved and recommended the liquidation of the fund [1].

For shareholders, this liquidation means that PHT will cease to exist on September 25, 2025. Given the fund's discount to net asset value (NAV) has narrowed to only -1.3%, there is little upside potential. However, the fund retains all its downside risk, as its holdings have a duration of close to 3 years [1]. The fund experienced a deep drawdown of roughly -10% in April 2025, with half of it stemming from the discount to NAV widening. This underscores the risk associated with holding the fund until liquidation [1].

Given these factors, savvy investors are advised to sell their shares now, as the liquidation has been approved and the timeline is clear. The fund's discount to NAV is minimal, and the downside risk is significant. There is no compelling reason to hold onto the shares, given the potential for further market risk-off events.

References:
[1] https://seekingalpha.com/article/4816785-pht-only-downside-during-the-approved-liquidation