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▇▇▇▇ and ▇▇▇▇ LLP
December 10, 2004
Pioneer High Yield Fund
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Safeco Taxable Bond Trust
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Ladies and Gentlemen:
This opinion is being delivered to you in connection with the Agreement and Plan
of Reorganization (the "Agreement") made as of October 29, 2004 by and between
Pioneer High Yield Fund, a Delaware statutory trust, on behalf of its sole
series, Pioneer High Yield Fund ("Acquiring Fund"), and Safeco Taxable Bond
Trust, a Delaware statutory trust, on behalf of its series, Safeco High-Yield
Bond Fund ("Acquired Fund"). Pursuant to the Agreement, Acquiring Fund will
acquire all of the assets of Acquired Fund in exchange solely for (i) the
assumption by Acquiring Fund of all of the Assumed Liabilities, as defined in
the Agreement (the "Acquired Fund Liabilities"), and (ii) the issuance of
Investor Class shares of beneficial interest of Acquiring Fund (the "Acquiring
Fund Shares") to Acquired Fund, followed by the distribution by Acquired Fund,
in liquidation of Acquired Fund, of the Acquiring Fund Shares to the
shareholders of Acquired Fund and the termination of Acquired Fund (the
foregoing together constituting the "Transaction"). All section references,
unless otherwise indicated, are to the United States Internal Revenue Code of
1986, as amended (the "Code").
In rendering this opinion, we have examined and relied upon (i) the prospectuses
for Acquiring Fund dated March 1, 2004, as supplemented on July 1, 2004; (ii)
the statement of additional information for Acquiring Fund dated March 1, 2004;
(iii) the prospectus for Acquired Fund dated April 30, 2004, as supplemented on
August 2, 2004 and August 3, 2004; (iv) the statement of additional information
for Acquired Fund dated April 30, 2004, as revised on August 19, 2004; (v) the
Notice of Meeting of Shareholders Scheduled for December 8, 2004 and the
accompanying proxy statement and prospectus on Form N-14 (the "Proxy
Statement"); (vi) the Agreement; (vii) the tax representation certificates
delivered pursuant to the Agreement and relevant to this opinion (the
"Representation Certificates"); and (viii) such other documents as we deemed
necessary or relevant to our analysis.
In our examination of documents, we have assumed the authenticity of original
documents, the accuracy of copies, the genuineness of signatures, and the legal
capacity of signatories. We have assumed that all parties to the Agreement and
BALTIMORE BEIJING BERLIN BOSTON BRUSSELS LONDON
MUNICH NEW YORK NORTHERN VIRGINIA OXFORD WALTHAM WASHINGTON
Pioneer High Yield Fund
Safeco Taxable Bond Fund
December 10, 2004
Page 2
to any other documents examined by us have acted, and will act, in accordance
with the terms of such Agreement and documents and that the Transaction will be
consummated pursuant to the terms and conditions set forth in the Agreement
without the waiver or modification of any such terms and conditions.
Furthermore, we have assumed that all representations contained in the
Agreement, as well as those representations contained in the Representation
Certificates are, on the date hereof, and will be, at the consummation of the
Transaction, true and complete in all material respects, and that any
representation made in any of the documents referred to herein "to the knowledge
and belief" (or similar qualification) of any person or party is, and at the
consummation of the Transaction will be, correct without such qualification. We
have also assumed that as to all matters for which a person or entity has
represented that such person is not a party to, does not have, or is not aware
of any plan, intention, understanding, or agreement, there is no such plan,
intention, understanding, or agreement. We have not attempted to verify
independently any of the above assumptions or representations.
The conclusions expressed herein represent our judgment regarding the proper
treatment of the Transaction under the income tax laws of the United States
based upon the Code, case law, Treasury Regulations, and the rulings and other
pronouncements of the Internal Revenue Service (the "Service") in effect on the
date of this opinion. No assurances can be given that such laws will not be
amended or otherwise changed after the consummation of the Transaction or that
such changes will not affect the conclusions expressed herein. Nevertheless, we
undertake no responsibility to advise you of any developments after the
consummation of the Transaction in the application or interpretation of the
income tax laws of the United States.
Our opinion represents our best judgment regarding how a court would decide if
presented with the issues addressed herein and is not binding upon the Service
or any court. Moreover, our opinion does not provide any assurance that a
position taken in reliance on such opinion will not be challenged by the Service
and does not constitute any representation or warranty that such position, if so
challenged, will not be rejected by a court.
This opinion addresses only the specific United States federal income tax
consequences of the Transaction set forth below, and does not address any other
federal, state, local, or foreign income, estate, gift, transfer, sales, or
other tax consequences that may result from the Transaction or any other action
(including any action taken in connection with the Transaction).
On the basis of and subject to the foregoing and in reliance upon the
representations, facts and assumptions described above, we are of the opinion
that the acquisition by Acquiring Fund of the assets of Acquired Fund solely in
exchange for the issuance of Acquiring Fund Shares to Acquired Fund and the
assumption of the Acquired Fund Liabilities by Acquiring Fund, followed by the
distribution by Acquired Fund, in liquidation of Acquired Fund, of Acquiring
Fund Shares to Acquired Fund shareholders in exchange for their Acquired Fund
Shares and the termination of Acquired Fund, will constitute a "reorganization"
within the meaning of Section 368(a) of the Code. No opinion is expressed or
implied regarding the tax consequences of any other aspects of the Transaction
except as expressly set forth above.
Pioneer High Yield Fund
Safeco Taxable Bond Fund
December 10, 2004
Page 3
This opinion is being delivered to you solely in connection with the closing
condition set forth in Section 8.5 of the Agreement. This opinion is intended
solely for the benefit of you and the shareholders of the Acquired Fund and it
may not be relied upon for any other purpose or by any other person or entity,
and may not be made available to any other person or entity, without our prior
written consent.
Very truly yours,
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▇▇▇▇ AND ▇▇▇▇ LLP
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇, Partner
▇▇▇▇▇ ▇. ▇▇▇▇, Partner