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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 811-21460
Pioneer Series Trust II
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: December 31
Date of reporting period: January 1, 2010 through June 30, 2010
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer AMT-Free
Municipal Fund
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Semiannual Report | June 30, 2010
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Ticker Symbols:
Class A PBMFX
Class B PBMUX
Class C MNBCX
Class Y PBYMX
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Prices and Distributions 8
Performance Update 9
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 31
Notes to Financial Statements 39
Trustees, Officers and Service Providers 48
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe have begun to recover over the past
year from one of their most tumultuous periods in history. This is a welcome
relief, and we are generally optimistic about the prospects for the economy
going forward. Still, challenges remain. Unemployment is high; consumer demand
and loan growth are weak; and housing has not returned to normal.
At Pioneer, we have long advocated the benefits of investing for the long term.
This strategy has generally performed well for many investors. Those who
remained invested in the market during the downturn have most likely seen their
portfolios start to recover over the past year, as the Dow Jones Industrial
Average climbed back from the depressed levels we saw in early 2009. Many bond
investors have similarly seen a strong rebound, with a broad-based recovery
occurring across many different fixed-income asset classes. The riskiest asset
classes, such as high-yield bonds, outperformed other fixed-income asset
classes during most of 2009.
At Pioneer, we are not changing the approach to investing that we have used for
more than 80 years. We remain focused on company fundamentals and risk
management. Our investment process is based on careful research into individual
companies, quantitative analysis, and active portfolio management. This
three-pillared process, which we apply to each of our portfolios, is supported
by an integrated team approach and is designed to carefully balance risk and
reward. While we see potential opportunities for making money in many corners
of the markets around the globe, it takes research and experience to separate
solid investment opportunities from speculation.
Following this difficult period, many investors are rethinking their approach
to investing and risk management. Some are questioning whether the basic
investment principles they were taught in the past are still useful in today's
markets. Complicating matters is that financial markets remain unpredictable.
Our advice, as always, is to work closely with a trusted financial advisor to
discuss your goals and work together to develop an investment strategy that
meets your individual needs. There is no single best strategy that works for
every investor.
2 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
www.pioneerinvestments.com. We greatly appreciate your trust in us and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 3
Portfolio Management Discussion | 6/30/10
In the following interview, Pioneer AMT-Free Municipal Fund's lead portfolio
manager, David Eurkus, outlines the investment environment for tax-free bonds
during the Fund's most recent semiannual period ended June 30, 2010, the Fund's
performance, his investment strategy and his outlook going forward.
Q How did the Fund perform during the six months ended June 30, 2010?
A For the six months ended June 30, 2010, Pioneer AMT-Free Municipal Fund's
Class A shares produced a 4.25% return at net asset value, while the Fund's
benchmark, the Barclays Capital Municipal Bond Index (the Barclays Index),
returned 3.31%. Over the same period, the average return of the 257 funds
in Lipper's General Municipal Debt Category was 3.02%. Lipper, Inc. is an
independent monitor of mutual fund performance.
Q Could you describe the investment environment for tax-exempt bonds during the
six months ended June 30, 2010?
A Over the six-month period, the municipal bond market continued to recover
from the severe disruptions in financial markets that took place in 2008,
though the recovery progressed at a slower pace than during 2009. We
continued to witness a high level of inflows from the money market sector
into municipal bond funds because of near-zero interest rate levels for
very short-term investment vehicles. Tax-exempt bonds also continued to
benefit from reduced municipal supply, based in part on the Build America
Bonds (BAB) program (created as part of 2009's large government stimulus
package), which allows state and local governments to obtain subsidized
financing in the taxable market.
The U.S. economy continued to recover from the recent recession, though
growth was slow and the environment difficult in light of a grim employment
outlook. Ongoing high foreclosure rates in the housing market and a credit
squeeze on small- and medium-sized businesses also posed challenges to
economic expansion. In addition, the global economy grew more problematic
during the six-month period, as a number of European countries were forced
to seek assistance from the European Central Bank and the International
Monetary Fund, and to commit to slashing their budgets going forward.
The severe budgetary difficulties experienced by several E.U. countries
spurred a flight to quality into U.S. Treasuries during the period, sending
Treasury prices higher and their yields lower. Municipal bonds also
performed well based on a favorable supply/demand dynamic, despite sluggish
tax revenues and a resulting squeeze on the budgets of state, county and
4 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
local governments. By the close of the six-month period (June 30, 2010),
long-term municipal bonds were yielding 103% to Treasury issues of
comparable maturity. Additionally, municipal default rates, despite the
budgetary issues in many states, remained historically low.
Q Can you discuss your overall investment strategy for the Fund during the six
months ended June 30, 2010?
A Our principal strategy for the Fund's portfolio is to purchase and hold
discounted long-term municipal bonds, as such investments offer the highest
yields in the tax-exempt marketplace. We also believe that longer-term
issues offer the most attractive value over time. The Fund continues to
have a strong focus on sectors vital to communities nationwide, whether the
U.S. economy is growing or contracting. Those sectors include health care/
hospitals, public and private education, transportation, power and energy.
During the six-month period, we continued to maintain a strong focus on
overall portfolio quality. As of June 30, 2010, approximately 16% of the
Fund's portfolio was rated AAA or the equivalent, and approximately 64% was
rated A or better. In addition, the Fund is broadly diversified among a
wide range of municipal bond sectors.
Q What were the most significant contributors to and detractors from Fund
performance during the six months ended June 30, 2010?
A Because we continue to be comfortable with bond positions already built into
the Fund's portfolio over the last two years--and with the Fund's long-
duration stance--we did not make any significant purchases or sales over
the period. As the tax-exempt market has performed well in the current
environment, our broadly diversified, long-duration stance in a portfolio
where many issues were originally purchased at a discount, contributed
strongly to the Fund's outperformance of the Barclays Index and its Lipper
peers during the six months ended June 30, 2010. The Fund has also
benefited from previous investments in health care/hospital bonds, which
are staging a recovery following a long period of uncertainty over the
details contained in Federal health care legislation, now signed into law.
Lastly, the Fund's credit stance, emphasizing A-rated and Baa-rated credits
as often undervalued securities, contributed to benchmark-relative
performance, as lower-rated investment-grade issues outperformed
higher-quality municipal bonds.
On the negative side, the Fund's holdings in California detracted slightly
from returns, as the state's weak economy and budgetary problems negatively
affected the performance of many California-based municipal issues. We are
comfortable, however, with the Fund's positions within California, as we
believe that the economy there has bottomed and is beginning a very gradual
recovery.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 5
Q What is your outlook?
A We believe that the U.S. economy will continue to grow, though at a modest
rate. Inflation seems to be under control, and based on its regular series
of statements, the Federal Reserve Board will most likely refrain from
raising short-term interest rates for the foreseeable future. We remain
optimistic regarding the prospects for the tax-exempt market, as municipal
yields continue to look attractive on a tax-equivalent basis compared with
Treasuries. As stated, the BAB program should continue to provide a boost
to the market for existing tax-exempt bonds. Additionally, the possibility
of higher Federal taxes in the future has made municipal bonds look even
more attractive to many investors.
The Fund intends to continue to hold select long-term tax-exempt bonds that
we believe have the strongest opportunity to perform well, and will seek to
avoid municipals that could falter due to budgetary problems on the part of
their issuers. We will continue to monitor the Fund's holdings closely to
ensure their integrity and quality, and the timely payment of principal and
interest on our investments. The Fund remains broadly diversified, with
only very limited exposure to general obligation bonds, which are more tied
to states' general revenues. The vast majority of Fund holdings are in
bonds with dedicated revenue streams, which we also continue to monitor
closely.
Going forward, we will continue to look for opportunities to lock in
attractive yields from high-quality, long-term tax-free bonds. We believe
that Pioneer AMT-Free Municipal Fund continues to be a suitable vehicle for
appropriate long-term investors seeking high income free from Federal
taxes.
Please refer to the Schedule of Investments on pages 15-30 for a full listing
of Fund securities.
When interest rates rise, the prices of fixed-income securities in the Fund
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise. Investments in the
Fund are subject to possible loss due to the financial failure of issuers of
underlying securities and their inability to meet their debt obligations.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
Past performance is not guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of fund management as of the date of this report.
These opinions should not be relied upon for any other purposes.
6 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
Portfolio Summary | 6/30/10
Portfolio Quality
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(As a percentage of total investment portfolio)
[The following data was represented as a pie chart in the printed material]
AAA 16.4%
AA 24.3%
A 23.1%
BBB 28.9%
BB & Lower 7.1%
Commercial Paper 0.2%
Sector Distribution
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(As a percentage of total investment portfolio)
[The following data was represented as a pie chart in the printed material]
Insured 35.1%
Health 26.4%
Various Revenues 9.3%
Special Revenues 6.8%
Education 4.6%
Water & Sewer 3.4%
General Obligation 2.9%
Transportation 2.8%
Pollution Control Revenue 2.6%
Escrowed 2.3%
Housing 1.9%
Power 1.7%
Reserves 0.2%
10 Largest Holdings*
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(As a percentage of total long-term holdings)
1. California Statewide Communities Development Authority, 5.0%, 8/15/47 1.84%
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2. California State, 4.25%, 8/1/33 1.83
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3. Massachusetts State Housing Finance Agency, 5.4%, 12/1/28 1.55
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4. North Carolina Eastern Municipal Power, 6.0%, 1/1/22 1.52
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5. Dallas County Texas Utility & Reclamation, 5.375%, 2/15/29 1.52
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6. Public Authority For Colorado Energy, 6.5%, 11/15/38 1.47
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7. Dallas-Fort Worth Texas International Airport, 6.0%, 11/1/14 1.37
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8. New Jersey Transportation, 0.0%, 12/15/27 1.34
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9. Tampa-Hillsborough County Florida, 4.0%, 7/1/34 1.29
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10. Philadelphia Hospital, 5.0%, 7/1/34 1.23
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* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 7
Prices and Distributions | 6/30/10
Net Asset Value per Share
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Class 6/30/10 12/31/09
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A $13.11 $12.86
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B $13.02 $12.78
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C $13.01 $12.77
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Y $13.08 $12.84
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Distributions per Share: 1/1/10-6/30/10
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Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
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A $0.2930 $ -- $ --
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B $0.2337 $ -- $ --
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C $0.2391 $ -- $ --
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Y $0.3094 $ -- $ --
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Index Definitions
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The Barclays Capital Municipal Bond Index is a broad measure of the municipal
bond market. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" charts
shown on pages 9-12.
8 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
Performance Update | 6/30/10 Class A Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer AMT-Free Municipal Fund at public offering price,
compared to that of the Barclays Capital Municipal Bond Index.
Average Annual Total Returns
(As of June 30, 2010)
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Net Asset Public Offering
Period Value (NAV) Price (POP)
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10 Years 5.49% 5.00%
5 Years 3.47 2.51
1 Year 14.29 9.11
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Expense Ratio
(Per prospectus dated May 1, 2010)
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Gross Net
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0.88% 0.82%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer
AMT-Free Barclays Capital
Municipal Fund Municipal Bond Index
6/00 9,550 10,000
10,582 10,998
6/02 11,242 11,759
12,416 12,786
6/04 12,431 12,883
13,735 13,945
6/06 13,895 14,068
14,535 14,728
6/08 14,676 15,205
14,250 15,779
6/10 16,286 17,295
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through May 1, 2012 for Class A shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer AMT-Free Municipal Fund was created through the reorganization of
predecessor fund, Safeco Municipal Bond Fund, on December 10, 2004. The
performance shown for Class A shares of the Fund for periods prior to December
10, 2004, includes the performance of the predecessor fund's Class A shares,
which has been restated to reflect differences in any applicable sales charges
(but not differences in expenses). If all the expenses of the Fund were
reflected, the performance would be lower.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 9
Performance Update | 6/30/10 Class B Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer AMT-Free Municipal Fund, compared to that of the
Barclays Capital Municipal Bond Index.
Average Annual Total Returns
(As of June 30, 2010)
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If If
Period Held Redeemed
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10 Years 4.63% 4.63%
5 Years 2.59 2.59
1 Year 13.26 9.26
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Expense Ratio
(Per prospectus dated May 1, 2010)
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Gross Net
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1.71% 1.71%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer
AMT-Free Barclays Capital
Municipal Fund Municipal Bond Index
6/00 10,000 10,000
11,016 10,998
6/02 11,603 11,759
12,711 12,786
6/04 12,629 12,883
13,838 13,945
6/06 13,910 14,068
14,418 14,728
6/08 14,420 15,205
13,881 15,779
6/10 15,722 17,295
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Class B shares reflect the deduction of the maximum applicable
contingent deferred sales charge (CDSC). The maximum CDSC is 4.0% and declines
over five years.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer AMT-Free Municipal Fund was created through the reorganization of
predecessor fund, Safeco Municipal Bond Fund, on December 10, 2004. The
performance shown for Class B shares of the Fund for periods prior to December
10, 2004, includes the performance of the predecessor fund's Class B shares,
which has been restated to reflect differences in any applicable sales charges
(but not differences in expenses). If all the expenses of the Fund were
reflected, the performance would be lower.
10 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
Performance Update | 6/30/10 Class C Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer AMT-Free Municipal Fund, compared to that of the
Barclays Capital Municipal Bond Index.
Average Annual Total Returns
(As of June 30, 2010)
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If If
Period Held Redeemed
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Life-of-Class
(10/1/2003) 3.32% 3.32%
5 Years 2.67 2.67
1 Year 13.35 13.35
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Expense Ratio
(Per prospectus dated May 1, 2010)
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Gross Net
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1.64% 1.64%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer
AMT-Free Barclays Capital
Municipal Fund Municipal Bond Index
10/03 10,000 10,000
6/04 10,061 10,119
10,992 10,952
6/06 11,049 11,049
11,474 11,568
6/08 11,496 11,942
11,065 12,393
6/10 12,542 13,584
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not
reflect the 1% front-end sales charge in effect prior to February 1, 2004. If
you paid a 1% sales charge, your returns would be lower than those shown above.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
Pioneer AMT-Free Municipal Fund was created through the reorganization of
predecessor fund, Safeco Municipal Bond Fund, on December 10, 2004. The
performance shown for Class C shares of the Fund for periods prior to December
10, 2004, includes the performance of the predecessor fund's Class C shares,
which has been restated to reflect differences in any applicable sales charges
(but not differences in expenses). If all the expenses of the Pioneer fund were
reflected, the performance would be lower.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 11
Performance Update | 6/30/10 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer AMT-Free Municipal Fund, compared to that of the
Barclays Capital Municipal Bond Index.
Average Annual Total Returns
(As of June 30, 2010)
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If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 5.58% 5.58%
5 Years 3.65 3.65
1 Year 14.50 14.50
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
0.58% 0.55%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer
AMT-Free Barclays Capital
Municipal Fund Municipal Bond Index
6/00 10,000 10,000
11,084 10,998
6/02 11,775 11,759
13,005 12,786
6/04 13,022 12,883
14,387 13,945
6/06 14,554 14,068
15,251 14,728
6/08 15,442 15,205
15,030 15,779
6/10 17,208 17,295
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for periods prior to the inception of Class Y shares on
November 10, 2006, reflects the NAV performance of the Fund's Class A shares.
The performance does not reflect differences in expenses, including the Rule
12b-1 fees applicable to Class A shares. Since fees for Class A shares are
generally higher than those of Class Y shares, the performance for Class Y
shares prior to its inception would have been higher than that shown. Class Y
shares are not subject to sales charges and are available for limited groups of
eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Pioneer AMT-Free Municipal Fund was created through the reorganization of
predecessor Safeco Municipal Bond Fund on December 10, 2004. The performance
shown for Class A shares of the Fund for periods prior to December 10, 2004,
includes the net asset value performance of the predecessor fund's Class A
shares prior to the reorganization, which has not been restated to reflect
differences in expenses, including 12b-1 fees applicable to Class A shares. If
all the expenses of the Fund were reflected, the performance would be lower.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through May 1, 2011, for Class Y shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
12 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer AMT-Free Municipal Fund
Based on actual returns from January 1, 2010, through June 30, 2010.
- --------------------------------------------------------------------------------
Share Class A B C Y
- --------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 1/1/10
- --------------------------------------------------------------------------------
Ending Account $1,042.50 $1,037.30 $1,037.80 $1,043.20
Value on 6/30/10
- --------------------------------------------------------------------------------
Expenses Paid $4.15 $8.49 $8.08 $2.79
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.82%, 1.68%,
1.60% and 0.55%, for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 13
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer AMT-Free Municipal Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from January 1, 2010, through June 30, 2010.
- --------------------------------------------------------------------------------
Share Class A B C Y
- --------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 1/1/10
- --------------------------------------------------------------------------------
Ending Account $1,020.73 $1,016.46 $1,016.86 $1,022.07
Value on 6/30/10
- --------------------------------------------------------------------------------
Expenses Paid $4.11 $8.40 $8.00 $2.76
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.82%, 1.68%,
1.60% and 0.55%, for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
14 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
Schedule of Investments | 6/30/10 (unaudited)
- ---------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Shares Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
COMMON STOCK -- 0.2%
TRANSPORTATION -- 0.2%
Airlines -- 0.2%
209,297 Delta Air Lines, Inc.* $ 2,459,240
------------
TOTAL COMMON STOCK
(Cost $4,839,444) $ 2,459,240
- ---------------------------------------------------------------------------------------------------------
Principal
Amount($)
- ---------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.3%
Alabama -- 0.9%
5,000,000 NR/NR Alabama Drinking Water Finance Authority,
4.0%, 8/15/28 $ 4,513,550
3,000,000 A+/A1 Birmingham AL Waterworks & Sewer,
4.375%, 1/1/32 2,797,740
1,500,000 NR/NR Sylacauga Alabama Health Care Authority,
6.0%, 8/1/35 1,224,135
------------
$ 8,535,425
- ---------------------------------------------------------------------------------------------------------
Arkansas -- 0.0%
250,000 A+/WR Arkansas State Development Finance
Authority, 4.0%, 12/1/11 $ 260,898
------------
$ 260,898
- ---------------------------------------------------------------------------------------------------------
Arizona -- 4.9%
6,300,000 AA-/Aa3 Arizona Board Regents Certificates
Partners, 4.0%, 6/1/31 $ 5,525,415
7,145,000 A+/NR Arizona Health Facilities Authority
Revenue, 5.5%, 1/1/38 7,228,096
1,000,000 A/A1 Maricopa County Arizona, 5.0%, 6/1/35 1,000,730
7,155,000 AA/Aa2 Maricopa County Arizona High School
District, 3.5%, 7/1/25 6,708,099
10,000,000 AA/Aa3 Phoenix Arizona Civic Import Corp., 5.5%,
7/1/43 8,801,800
4,000,000 AA/Aa3 Phoenix Arizona Civic Import Corp., District
Revenue, 0.0%, 7/1/25 3,794,440
8,005,000 AA/Aa3 Phoenix Arizona Civic Import Corp., District
Revenue, 0.0%, 7/1/26 7,537,028
530,000 NR/Baa3 Pima County Arizona Industrial, 6.375%,
7/1/31 490,822
964,000 NR/Baa3 Pima County, Arizona Industrial
Development Authority, 6.75%, 7/1/31 934,087
3,470,000 AA/Aa3 Pima County Industrial Development
Authority, 5.0%, 7/1/20 3,796,041
------------
$ 45,816,558
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 15
Schedule of Investments | 6/30/10 (unaudited) (continued)
- ---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount($) Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
California -- 18.0%
4,000,000 A/A3 Alameda Corridor Transportation Authority,
4.75%, 10/1/25 $ 3,965,440
3,500,000 A/A2 Alameda County California Redevelopment
Agency, 4.375%, 8/1/30 2,938,285
5,000,000 A/A1 Anaheim California Public Financing
Authority Lease, 4.25%, 9/1/35 4,206,700
2,000,000 A/NR California Health Facilities Financing
Authority, 5.0%, 3/1/33 1,908,540
2,000,000 A/A2 California Health Facilities, 5.625%,
7/1/32 2,048,500
4,000,000 BBB-/Baa2 California Municipal Finance Asset,
5.25%, 2/1/37 3,521,880
1,470,000 NR/Baa1 California Municipal Finance Authority,
5.875%, 10/1/34 1,510,807
20,000,000 A/A1 California State, 4.25%, 8/1/33 16,914,600
10,000,000 AA-/A1 California Statewide, 5.75%, 7/1/47 10,259,600
4,875,000 NR/Baa2 California Statewide Communities
Development Authority, 5.0%, 5/15/30 4,599,124
5,125,000 NR/Baa2 California Statewide Communities
Development Authority, 5.0%, 5/15/38 4,659,804
20,955,000 BBB+/Baa2 California Statewide Communities
Development Authority, 5.0%, 8/15/47 17,016,298
4,000,000 A-/NR California Statewide Communities
Development Authority, 5.75%, 8/15/38 3,988,640
10,000,000 A+/Aa3 California Statewide Community, 5.25%,
11/15/48 9,688,300
9,000,000 AAA/Aaa Foothill/Eastern Corridor, 0.0%, 1/1/26 4,674,960
2,375,000 AAA/Aaa Foothill-Eastern Transportation, 0.0%,
1/1/18 1,924,938
1,000,000 NR/Aa3 Franklin-McKinley California School
District, 6.0%, 7/1/16 1,192,130
2,100,000 AA-/WR Fresno Joint Powers Financing Authority
Lease Revenue, 4.75%, 9/1/28 2,100,735
15,000,000 BBB/Baa3 Golden State Tobacco Security Corp.,
California, 5.125%, 6/1/47 9,654,000
2,500,000 BBB+/Baa2 Inglewood California Redevelopment
Agency Tax Allocation, 4.75%, 5/1/38 1,953,450
2,500,000 AA-/Aa2 Los Angeles University School District,
4.25%, 1/1/28 2,341,250
3,000,000 A/A2 Long Beach California Finance Authority,
5.5%, 11/15/37 2,873,070
3,000,000 NR/WR Los Angeles County California Certificates
of Participation, 4.75%, 3/1/23 2,920,980
3,000,000 A+/NR Los Angeles County Sanitation Districts
Financing Authority Revenue, 4.5%,
10/1/35 2,722,050
The accompanying notes are an integral part of these financial statements.
16 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
- ---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount($) Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
California -- (continued)
1,175,000 NR/Aa2 Lucia Mar University School District, 0.0%,
8/1/20 $ 687,916
4,000,000 A-/NR Madera California Irrigation District Water,
5.5%, 1/1/33 4,116,280
3,680,000 A+/Baa1 Madera California Public, 4.375%,
3/1/31 3,321,752
3,000,000 AAA/Aa3 Modesto California Wastewater Revenue,
4.25%, 11/1/36 2,653,950
1,785,000 AAA/Aa3 Oakland California University School
District, 4.375%, 8/1/31 1,628,188
1,600,000 A+/WR Oxnard California School District, 4.375%,
8/1/33 1,453,504
7,000,000 BBB/NR Pittsburg California Redevelopment
Agency, 6.5%, 9/1/28 7,711,340
3,815,000 BBB/NR Pittsburg California Redevelopment
Agency, 4.25%, 9/1/34 2,878,265
2,180,000 A/Baa1 Pomona Unified School District, 6.55%,
8/1/29 2,565,598
2,095,000 A-/NR Redding California Redevelopment, 4.5%,
9/1/26 1,787,978
1,500,000 A-/NR Redding California Redevelopment, 5.0%,
9/1/36 1,294,260
3,000,000 A-/Aaa Rialto California Redevelopment Agency
Tax Allocation, 6.25%, 9/1/37 3,055,260
2,500,000 A/A1 San Francisco California City & County
Airports Common International, 4.5%,
5/1/32 2,418,775
10,865,000 A/A2 San Jose California Redevelopment
Agency Tax, 4.9%, 8/1/33 9,743,297
1,500,000 A/A1 Santa Cruz County California,
Redevelopment Agency Tax Allocation,
6.625%, 9/1/29 1,631,370
1,505,000 A+/Aa3 Santa Maria California Joint, 0.0%,
8/1/27 516,606
3,600,000 A+/Aa2 Saugus California University School
District, 0.0%, 8/1/23 1,724,940
------------
$168,773,360
- ---------------------------------------------------------------------------------------------------------
Colorado -- 3.4%
3,000,000 NR/NR Colorado Educational & Cultural Facilities
Authority, 5.5%, 6/1/37 $ 1,787,700
2,750,000 AA-/Aa3 Colorado Health Facilities Revenue,
5.25%, 11/15/35 2,758,690
2,500,000 A-/A3 Colorado Health Facilities Revenue,
5.25%, 6/1/36 2,380,950
10,000 NR/Aa2 Colorado Housing Finance Authority,
Series B-3, 6.55%, 5/1/25 10,365
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 17
Schedule of Investments | 6/30/10 (unaudited) (continued)
- ---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount($) Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
Colorado -- (continued)
6,555,000 A-/A3 Colorado Springs Colorado Hospital
Revenue, 6.375%, 12/15/30 $ 6,651,293
5,220,000 AAA/Aa2 Colorado Water & Power Development
Authority, 4.375%, 8/1/35 5,200,164
12,500,000 A/A2 Public Authority For Colorado Energy,
6.5%, 11/15/38 13,580,625
------------
$ 32,369,787
- ---------------------------------------------------------------------------------------------------------
Connecticut -- 0.4%
1,000,000 NR/NR Connecticut State Health & Education,
5.5%, 7/1/17 $ 1,002,740
2,470,000 B+/NR Mohegan Tribe Indians Connecticut,
6.25%, 1/1/31 (144A) 2,025,079
1,500,000 B+/NR Mohegan Tribe Indians Connecticut,
5.25%, 1/1/33 1,075,050
------------
$ 4,102,869
- ---------------------------------------------------------------------------------------------------------
District of Columbia -- 1.8%
10,000,000 BBB/Baa3 District of Columbia Tobacco Settlement
Financing Corp., 6.75%, 5/15/40 $ 9,872,500
8,000,000 NR/A1 District of Columbia, 4.25%, 6/1/37 6,894,800
------------
$ 16,767,300
- ---------------------------------------------------------------------------------------------------------
Florida -- 5.8%
5,000,000 A+/A2 Citizens Property Insurance Co., 5.0%,
6/1/16 $ 5,159,150
540,000 NR/NR County of Madison Florida, 6.0%, 7/1/25 484,699
5,000,000 A-/A2 County of Miami-Dade, 5.5%, 10/1/41 5,082,900
1,000,000 NR/Aa2 Dade County Florida General, 7.7%,
10/1/12 1,140,710
8,000,000 AA/Aa1 Escambia County Florida Health Facilities,
5.25%, 11/15/32 8,145,360
3,000,000 NR/Baa1 Escambia County Health, 6.0%, 8/15/36 3,002,010
1,000,000 AA+/NR Florida State Department Children and
Families Certificates, 5.0%, 10/1/25 1,022,620
970,000 AA-/Aa3 Highlands County Health, 5.0%,
11/15/24 984,550
1,000,000 NR/A3 Hillsborough County Florida, 5.25%,
10/1/24 1,007,940
5,435,000 BB/NR Lee County Florida Industrial Development
Authority, 4.75%, 6/15/14 5,365,541
2,000,000 BB/NR Lee County Florida Industrial Development
Authority, 5.375%, 6/15/37 1,608,300
2,025,000 NR/NR Miami Beach Florida Health Facilities,
5.375%, 11/15/28 1,751,362
500,000 NR/Ba2 Miami Beach Health Facilities Authority,
6.7%, 11/15/19 509,140
The accompanying notes are an integral part of these financial statements.
18 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
- ---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount($) Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
Florida -- (continued)
7,500,000 NR/Baa1 Tallahassee Florida Health, 6.375%,
12/1/30 $ 7,513,050
13,865,000 A-/A3 Tampa-Hillsborough County Florida, 4.0%,
7/1/34 11,963,831
------------
$ 54,741,163
- ---------------------------------------------------------------------------------------------------------
Georgia -- 1.6%
5,750,000 A/A3 Burke County Development, 7.0%,
1/1/23 $ 6,793,223
4,000,000 NR/A2 Houston County Georgia Hospital Authority
Revenue, 5.0%, 10/1/42 3,727,680
5,000,000 A+/A2 Main Street Natural Gas Inc., Georgia,
5.5%, 9/15/28 4,767,400
------------
$ 15,288,303
- ---------------------------------------------------------------------------------------------------------
Illinois -- 4.2%
4,000,000 NR/Caa2 Chicago Illinois O'Hare International
Airport, 5.5%, 12/1/30 $ 2,928,160
4,580,000 NR/A3 Illinois Development Finance Authority
Revenue, 5.25%, 10/1/24 4,689,920
5,000,000 NR/Baa2 Illinois Finance Authority, 6.5%, 4/1/39 5,206,650
1,000,000 BBB+/Baa2 Illinois Finance Authority, 5.25%, 5/1/40 999,930
2,000,000 AAA/NR Illinois Finance Authority, 6.0%, 8/15/25 2,093,900
4,000,000 BBB/NR Illinois Finance Authority, 5.5%, 8/15/30 3,723,640
10,000,000 AAA/A2 Metropolitan Pier & Expo, 5.25%,
6/15/42 10,045,900
5,000,000 AAA/Aaa Metropolitan Pier & Expo, 7.0%, 7/1/26 6,719,400
20,000,000 0.00 AAA/A2 Metropolitan Pier & Exposition Authority
Illinois Dedicated State Tax, Floating Rate
Note, 6/15/39 3,471,000
------------
$ 39,878,500
- ---------------------------------------------------------------------------------------------------------
Indiana -- 2.7%
2,000,000 AA/Aa2 Indiana Bond Bank, 5.5%, 2/1/29 $ 2,146,940
1,000,000 A-/NR Indiana Finance Authority, 5.125%,
3/1/30 954,040
1,000,000 A-/NR Indiana Finance Authority, 5.375%,
3/1/34 970,610
2,000,000 BB/Ba2 Indiana Finance Authority, 6.0%, 12/1/26 2,041,220
5,000,000 A+/A2 Indiana Health & Educational Facility
Authority, 4.75%, 2/15/34 4,525,500
8,000,000 A+/A2 Indiana Health & Educational Facility
Authority, 5.0%, 2/15/39 7,415,280
4,135,000 BBB/WR Indiana State Development Finance,
5.75%, 10/1/11 4,213,482
1,180,000 AA/NR Indianapolis Local Public Improvement
Board Revenue, 6.75%, 2/1/14 1,288,289
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 19
Schedule of Investments | 6/30/10 (unaudited) (continued)
- ---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount($) Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
Indiana -- (continued)
500,000 AA/Aa1 Indianapolis Local Public Improvement
Board Revenue, 6.0%, 1/10/20 $ 579,440
1,000,000 BBB+/Aa3 Lawrence Township Metropolitan School
District Revenue, 6.75%, 7/5/13 1,094,270
------------
$ 25,229,071
- ---------------------------------------------------------------------------------------------------------
Kansas -- 0.0%
300,000 AA/Aa3 Kansas Development Finance Authority,
5.0%, 6/1/11 $ 312,498
------------
$ 312,498
- ---------------------------------------------------------------------------------------------------------
Kentucky -- 0.0%
435,000 NR/Baa1 Kentucky Economic Development Finance,
6.625%, 10/1/28 $ 440,681
------------
$ 440,681
- ---------------------------------------------------------------------------------------------------------
Louisiana -- 2.4%
215,000 NR/NR Louisiana Public Facilities Authority
Revenue, 6.25%, 10/1/11 $ 212,743
10,000,000 NR/Baa1 Louisiana Public Facilities Authority, 5.5%,
5/15/47 8,862,200
5,000,000 AA/Aa1 Louisiana State Gas & Fuels Tax, 4.5%,
5/1/41 4,798,450
1,085,000 NR/NR Louisiana Local Government Environment
Community, 5.25%, 12/1/18 1,103,554
8,000,000 BBB+/Baa1 St John Baptist Parish Louisiana Revenue,
5.125%, 6/1/37 7,540,080
------------
$ 22,517,027
- ---------------------------------------------------------------------------------------------------------
Massachusetts -- 7.3%
4,000,000 NR/Aa2 City of Pittsfield Massachusetts, 5.0%,
3/1/19 $ 4,578,320
550,000 BBB/Baa2 Massachusetts Development Finance
Agency, 5.15%, 10/1/14 564,938
1,680,000 BBB/NR Massachusetts Development Finance
Agency, 5.25%, 10/1/29 1,613,018
3,320,000 BBB/NR Massachusetts Development Finance
Agency, 5.25%, 10/1/37 3,071,133
1,100,000 BBB/Baa2 Massachusetts Development Finance
Agency, 5.625%, 10/1/24 1,106,292
1,000,000 BBB/Baa2 Massachusetts Development Finance
Agency, 5.7%, 10/1/34 981,860
2,635,000 NR/NR Massachusetts Development Finance
Agency, 6.25%, 10/15/17 2,488,837
4,750,000 BBB+/Baa1 Massachusetts Health & Educational
Facilities Authority Revenue, 6.625%,
7/1/32 4,787,193
The accompanying notes are an integral part of these financial statements.
20 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
- ---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount($) Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
1,000,000 BBB/Baa2 Massachusetts Health & Educational
Facilities Authority Revenue, 6.75%,
7/1/16 $ 1,044,740
1,145,000 BBB+/NR Massachusetts Health & Educational
Facilities Authority, 6.25%, 10/1/31 1,156,908
2,150,000 BBB/Baa2 Massachusetts Health & Educational
Facilities Authority, 6.25%, 7/1/22 2,171,006
2,000,000 BBB+/Baa1 Massachusetts Health & Educational
Facilities Authority, 6.5%, 7/1/21 2,027,220
2,500,000 BB-/NR Massachusetts Health & Educational
Facilities, 5.5%, 7/1/40 1,873,575
500,000 BBB-/NR Massachusetts State Development
Finance Agency, 5.5%, 1/1/35 433,640
3,990,000 A/WR Massachusetts State Development
Finance Agency, 5.75%, 1/1/42 4,407,873
1,600,000 BBB/NR Massachusetts State Health & Educational
Facilities Authority, 5.45%, 11/15/23 1,526,656
4,500,000 NR/NR Massachusetts State Health &
Educational, 4.625%, 8/15/28 3,654,225
1,550,000 BBB-/Baa3 Massachusetts State Health &
Educational, 5.25%, 7/15/18 1,493,859
2,120,000 BBB/Baa2 Massachusetts State Health &
Educational, 5.625%, 7/1/20 2,088,984
40,000 AA/Aa2 Massachusetts State Health &
Educational, 6.0%, 7/1/18 41,948
200,000 AA/Aa2 Massachusetts State Health and
Educational Facilities, 5.75%, 7/1/32 204,416
3,750,000 BBB+/Baa1 Massachusetts State Health, 5.25%,
7/1/38 3,422,700
14,675,000 A/Baa1 Massachusetts State Housing Finance
Agency, 5.4%, 12/1/28 14,306,804
4,690,000 AA+/Aa1 Massachusetts State Water Authority,
4.0%, 8/1/46 4,420,325
4,940,000 AAA/Aaa Massachusetts Water Pollution Abatement
Revenue, 3.5%, 8/1/26 4,853,550
------------
$ 68,320,020
- ---------------------------------------------------------------------------------------------------------
Maryland -- 1.0%
3,000,000 BBB-/Baa3 Frederick County Maryland, 5.625%,
9/1/38 $ 2,797,680
2,000,000 BBB+/A3 Maryland Economic Development Corp.,
6.2%, 1/9/22 2,284,880
2,000,000 NR/Baa3 Maryland Health, 5.75%, 7/1/38 1,896,320
1,000,000 NR/NR Maryland State Economic Development,
5.0%, 12/1/16 813,560
660,000 NR/NR Maryland State Economic Development,
5.0%, 12/1/16 536,950
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 21
Schedule of Investments | 6/30/10 (unaudited) (continued)
- ---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount($) Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
Maryland -- (continued)
1,000,000 NR/NR Maryland State Economic Development,
5.0%, 12/1/31 $ 728,900
------------
$ 9,058,290
- ---------------------------------------------------------------------------------------------------------
Michigan -- 1.7%
3,000,000 AAA/Aa3 Detroit Michigan Sewer District, 6.25%,
7/1/36 $ 3,276,000
1,500,000 BB/NR John Tolfree Health System, 6.0%,
9/15/23 1,264,335
1,490,000 NR/NR Meridian Michigan Economic Development
Corp., 5.25%, 7/1/26 1,171,244
3,340,000 NR/NR Michigan Public Educational Facilities
Authority Revenue, 5.875%, 6/1/37 2,689,869
2,000,000 NR/NR Michigan State Hospital Finance Authority,
5.25%, 11/15/25 1,700,220
1,000,000 NR/NR Michigan State Hospital Finance Authority,
5.5%, 11/15/35 782,830
5,000,000 AA/Aa1 Michigan State Hospital Finance Authority,
5.5%, 11/15 5,144,350
6,485,000 NR/NR Wayne Charter Escrow, 0.00%,
12/1/15 (c) -
------------
$ 16,028,848
- ---------------------------------------------------------------------------------------------------------
Minnesota -- 0.6%
5,000,000 A/A1 Becker Minnesota Pollution Control
Revenue Northern States Power "A"
Conversions, 8.5%, 4/1/30 $ 5,462,750
------------
$ 5,462,750
- ---------------------------------------------------------------------------------------------------------
Missouri -- 0.1%
80,000 NR/Aaa Missouri State Environmental Improvement
& Energy Resources, 5.125%, 1/1/20 $ 86,625
420,000 NR/Aaa Missouri State Environmental Improvement
& Energy Resources, 5.125%, 1/1/20 465,473
------------
$ 552,098
- ---------------------------------------------------------------------------------------------------------
Mississippi -- 1.4%
1,800,000 NR/WR Columbus Mississippi Industrial
Development Revenue, 5.9%, 12/1/11 $ 1,793,142
2,750,000 BBB/Baa3 County of Warren Mississippi, 5.8%,
5/1/34 2,772,303
7,950,000 BBB-/Ba1 Lowndes County Mississippi Solid Waste
Disposal & Pollution Control Revenue,
6.8%, 4/1/22 8,500,697
------------
$ 13,066,142
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
- ---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount($) Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
Montana -- 0.3%
2,785,000 A-/Baa1 Forsyth Montana Pollution Control
Revenue, 5.0%, 3/1/31 $ 2,770,602
------------
$ 2,770,602
- ---------------------------------------------------------------------------------------------------------
North Carolina -- 1.9%
1,000,000 NR/WR North Carolina Capital Facilities Finance
Agency Student Revenue, 5.0%, 6/1/27 $ 941,150
1,000,000 NR/WR North Carolina Capital Facilities Finance
Agency Student Revenue, 5.0%, 6/1/32 909,480
2,000,000 NR/NR North Carolina Capital Facilities Finance,
4.5%, 10/1/26 1,561,440
12,000,000 A-/Baa1 North Carolina Eastern Municipal Power,
6.0%, 1/1/22 14,110,560
250,000 AA+/Aa1 North Carolina Infrastructure Finance
Corp., 5.0%, 10/1/11 263,933
------------
$ 17,786,563
- ---------------------------------------------------------------------------------------------------------
North Dakota -- 0.3%
3,000,000 NR/WR Grand Forks North Dakota Health Care
Systems, 7.125%, 8/15/24 $ 3,055,170
------------
$ 3,055,170
- ---------------------------------------------------------------------------------------------------------
New Hampshire -- 1.3%
3,750,000 A-/NR New Hampshire Health & Education
Facilities, 5.0%, 10/1/17 $ 3,496,500
5,000,000 A-/NR New Hampshire Health & Education
Facilities, 5.0%, 10/1/32 4,626,600
2,250,000 A+/A2 New Hampshire Health & Education
Facilities Authority Revenue, 5.75%,
10/1/31 2,292,570
2,000,000 BBB+/Baa1 New Hampshire Health & Educational
Facilities Authority Revenue, 5.75%,
7/1/22 2,005,660
------------
$ 12,421,330
- ---------------------------------------------------------------------------------------------------------
New Jersey -- 2.5%
1,250,000 BBB/Baa3 Camden County New Jersey Import
Authority, 5.75%, 2/15/34 $ 1,235,588
475,000 NR/NR New Jersey Economic Development
Authority, 5.3%, 11/1/26 398,630
450,000 NR/NR New Jersey Economic Development
Authority, 5.375%, 11/1/36 346,163
610,000 NR/NR New Jersey Economic Development
Authority, 5.75%, 1/1/25 540,722
850,000 BB/Ba2 New Jersey Health Care Facilities, 5.125%,
7/1/14 849,635
30,000,000 AA+/Aa1 New Jersey Transportation, 0.0%,
12/15/27 12,390,000
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 23
Schedule of Investments | 6/30/10 (unaudited) (continued)
- ---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount($) Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
New Jersey -- (continued)
2,115,000 BBB-/Baa3 New Jersey Health Care Facilities Financing
Authority, 5.25%, 7/1/30 $ 1,920,209
3,500,000 NR/NR New Jersey Health Care Facilities Financing
Authority, 7.25%, 7/1/27 2,803,605
4,500,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
5.0%, 6/1/41 2,936,115
------------
$ 23,420,667
- ---------------------------------------------------------------------------------------------------------
New Mexico -- 0.1%
1,000,000 A-/NR Dona Ana County New Mexico Pilt
Revenue, 5.25%, 12/1/25 $ 1,010,940
------------
$ 1,010,940
- ---------------------------------------------------------------------------------------------------------
Nevada -- 0.5%
5,000,000 A-/A3 Reno Nevada Hospital Revenue, 5.25%,
6/1/41 $ 4,579,800
------------
$ 4,579,800
- ---------------------------------------------------------------------------------------------------------
New York -- 3.0%
2,500,000 BBB+/Baa2 Albany Individual Development, 5.25%,
11/15/32 $ 2,370,675
1,000,000 NR/Caa1 Albany Individual Development, 6.0%,
7/1/19 878,050
10,000,000 AAA/Aa1 New York City Municipal Finance Water &
Sewer System Revenue, 4.25%, 6/15/39 9,736,400
5,515,000 A/WR New York State Dormitory Authority,
5.24%, 7/1/24 5,760,197
1,295,000 AA-/Aa3 New York State Dormitory Authority
Revenue, 7.5%, 5/15/11 1,369,851
5,250,000 AA-/Aa3 New York State Dormitory Authority
Revenue, 7.5%, 5/15/13 6,116,198
1,500,000 AA-/Aa2 Port Authority of NY & NJ, Ninety Third
Series, 6.125%, 6/1/94 1,796,670
------------
$ 28,028,041
- ---------------------------------------------------------------------------------------------------------
Ohio -- 2.6%
6,000,000 BBB/Baa3 Buckeye Ohio Tobacco Settlement, 6.5%,
6/1/47 $ 4,707,360
10,000,000 BBB/Baa3 Buckeye Tobacco Settlement Finance,
5.75%, 6/1/34 7,448,500
5,350,000 BBB/Baa3 Buckeye Tobacco Settlement Finance,
5.125%, 6/1/24 4,508,766
1,500,000 NR/NR Cuyahoga County Ohio Health, 6.0%,
5/15/37 1,299,900
1,500,000 NR/NR Cuyahoga County Ohio Health, 6.0%,
5/15/37 1,245,630
The accompanying notes are an integral part of these financial statements.
24 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
- ---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount($) Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
Ohio -- (continued)
5,000,000 NR/Baa1 Lake County Ohio Hospital Municipal,
6.0%, 8/15/43 $ 4,989,600
------------
$ 24,199,756
- ---------------------------------------------------------------------------------------------------------
Oklahoma -- 1.8%
5,590,000 A/Baa1 McGee Creek Authority Water Revenue,
6.0%, 1/1/23 $ 6,102,379
9,055,000 A/A3 Tulsa Airports Improvement Trust, 7.05%,
6/1/17 10,723,655
------------
$ 16,826,034
- ---------------------------------------------------------------------------------------------------------
Oregon -- 0.0%
185,000 BB+/NR Klamath Falls Inter-Community Hospital
Authority Revenue, 6.125%, 9/1/22 $ 175,633
------------
$ 175,633
- ---------------------------------------------------------------------------------------------------------
Pennsylvania -- 5.5%
3,000,000 BB-/B1 Allegheny County Pennsylvania Hospital
Development Authority, 5.375%,
11/15/40 $ 2,260,470
3,370,000 NR/Ca Allentown Pennsylvania Area Hospital
Authority, 6.0%, 11/15/16 3,232,066
1,000,000 CCC/NR Columbia County Pennsylvania Hospital
Authority, 5.8%, 6/1/19 958,330
10,000,000 A/Baa2 Lehigh County Pennsylvania Industrial
Development Authority Pollution Control,
4.75%, 2/15/27 9,954,000
1,000,000 BBB/NR Montgomery County Pennsylvania
Industrial, 5.0%, 12/1/24 978,850
1,000,000 BBB/NR Montgomery County Pennsylvania
Industrial, 5.0%, 12/1/30 940,240
5,000,000 BBB+/A3 Northampton County Pennsylvania General
Purpose Authority Revenue, 5.5%,
8/15/40 4,934,450
11,500,000 0.82 BBB/WR Pennsylvania State Higher Education,
Floating Rate Note, 7/1/39 6,885,625
1,000,000 BBB-/Baa3 Pennsylvania Higher Educational, 6.0%,
7/1/43 1,005,970
6,000,000 AA/Aa2 Philadelphia Pennsylvania Hospital, 4.5%,
7/1/37 5,790,780
13,900,000 BBB/Baa3 Philadelphia Pennsylvania Hospital, 5.0%,
7/1/34 11,339,759
65,000 A+/NR Sayre Pennsylvania Health Care Facilities
Authority, 5.75%, 12/1/21 66,685
460,000 B-/NR Scranton-Lackawanna Pennsylvania Health
& Welfare, 6.05%, 7/1/10 459,982
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 25
Schedule of Investments | 6/30/10 (unaudited) (continued)
- ---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount($) Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
Pennsylvania -- (continued)
3,000,000 A/A2 Southeastern Pennsylvania Transportation
Authority Pennsylvania, 4.75%, 3/1/29 $ 2,999,820
------------
$ 51,807,027
- ---------------------------------------------------------------------------------------------------------
Puerto Rico -- 1.2%
1,500,000 AAA/Aa3 Puerto Rico Highway, 4.95%, 7/1/26 $ 1,515,330
75,000 NR/Baa3 Puerto Rico Public Buildings Authority
Revenue, 5.25%, 7/1/33 86,202
925,000 BBB-/A3 Puerto Rico Public Buildings Authority
Revenue, 5.25%, 7/1/33 922,549
14,625,000 AA-/Aa2 Puerto Rico Sales Tax, 0.0%, 8/1/40 2,261,318
5,000,000 AA-/Aa2 Puerto Rico Sales Tax Financing, 5.25%,
8/1/57 5,037,700
20,000,000 AA-/Aa2 Puerto Rico Sales Tax Financing, 0.0%,
11/15/27 1,121,600
------------
$ 10,944,699
- ---------------------------------------------------------------------------------------------------------
Rhode Island -- 0.5%
65,000 A-/A3 Rhode Island State Health & Educational
Building Corp., 6.375%, 8/15/21 $ 67,293
5,200,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
6.25%, 6/1/42 4,925,596
------------
$ 4,992,889
- ---------------------------------------------------------------------------------------------------------
South Carolina -- 0.5%
5,000,000 AAA/Aa3 Scago Educational Facilities Corp. For
School Project, 4.375%, 12/1/31 $ 4,551,400
------------
$ 4,551,400
- ---------------------------------------------------------------------------------------------------------
South Dakota -- 0.0%
65,000 NR/Aaa South Dakota Conservancy District
Revenue, 5.625%, 8/1/17 $ 65,258
------------
$ 65,258
- ---------------------------------------------------------------------------------------------------------
Tennessee -- 1.9%
1,000,000 BBB+/Baa1 Johnson City Tennessee Health &
Education, 5.5%, 7/1/36 $ 956,100
1,000,000 NR/A1 Knox County Health Facility, 6.375%,
4/15/22 1,074,850
4,000,000 NR/A1 Knox County Health Facility, 6.5%,
4/15/31 4,257,520
12,960,000 NR/NR Sumner County Tennessee Health
Educational, 5.5%, 11/1/46 11,144,304
------------
$ 17,432,774
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
- ---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount($) Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
Texas -- 5.1%
1,500,000 AAA/Aaa County of Harris Texas, 5.0%, 10/1/24 $ 1,697,190
3,605,000 AAA/Aaa Crowley Texas Independent School District,
3.5%, 8/1/36 3,172,400
14,000,000 BBB+/A3 Dallas County Texas Utility & Reclamation,
5.375%, 2/15/29 14,033,880
13,885,000 CCC+/Caa2 Dallas-Fort Worth Texas International
Airport, 6.0%, 11/1/14 12,711,440
20,000 NR/A1 Lower Colorado River Authority, 5.25%,
5/15/21 22,169
3,000,000 BBB-/Baa2 Richardson Texas Hospital Authority, 6.0%,
12/1/34 2,845,500
1,000,000 BBB/NR Seguin Texas Higher Education Facilities,
5.0%, 9/1/23 990,420
4,910,000 NR/Baa3 Texas Private Activities, 7.0%, 6/30/40 4,940,835
3,255,000 BBB/NR Texas State Public Finance Authority,
6.2%, 2/15/40 3,266,393
3,500,000 6.20 AA+/Aa1 Texas State, Floating Rate Note, 9/30/11 3,682,420
350,000 AAA/Aaa University of Texas, 5.25%, 8/15/13 395,360
20,000 NR/Aaa Whitehouse Texas Independent School
District, 4.8%, 2/15/12 20,068
------------
$ 47,778,075
- ---------------------------------------------------------------------------------------------------------
Utah -- 0.1%
500,000 BBB-/NR Utah State Charter Schools, 5.75%,
7/15/20 $ 493,620
------------
$ 493,620
- ---------------------------------------------------------------------------------------------------------
Virginia -- 3.6%
10,000,000 A/Baa1 Chesapeake Bay Bridge and Tunnel
Common Virginia Revenue, 5.5%, 7/1/25 $ 10,687,200
1,500,000 NR/Baa1 Prince William County Virginia Industrial
Development Authority Hospital Revenue,
5.2%, 10/1/26 1,454,280
3,925,000 NR/Baa1 Prince William County Virginia Industrial
Development Authority Hospital Revenue,
5.35%, 10/1/36 3,708,144
13,990,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
5.0%, 6/1/47 8,987,456
500,000 AA+/Aa1 Virginia Commonwealth Transportation
Board, 5.0%, 5/15/12 541,750
140,000 AA/Aa2 Virginia Resources Authority, 5.0%,
5/1/20 141,785
7,500,000 BBB+/Baa1 Washington County Industrial, 7.75%,
7/1/38 8,530,125
------------
$ 34,050,740
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 27
Schedule of Investments | 6/30/10 (unaudited) (continued)
- ---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount($) Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
Vermont -- 0.1%
1,295,000 NR/WR Vermont Educational & Health Buildings,
5.0%, 7/1/24 $ 1,170,071
------------
$ 1,170,071
- ---------------------------------------------------------------------------------------------------------
Washington -- 6.1%
5,755,000 A-/WR Centralia Washington Electric Revenue,
4.25%, 12/1/26 $ 5,576,077
10,000,000 AA/NR FYI Properties, 5.5%, 6/1/39 10,532,300
10,850,000 AAA/NR King County Washington Housing
Authority, 5.5%, 5/1/38 11,282,807
4,000,000 A+/Aa3 King County Washington Public Hospital,
5.25%, 12/1/37 4,130,560
2,923,000 AA+/NR Seattle Washington Housing Authority,
6.6%, 8/20/38 2,982,249
10,500,000 BBB/Baa3 Tobacco Settlement Authority Washington,
6.625%, 6/1/32 10,244,745
6,290,000 NR/NR Vancouver Washington Housing Authority,
5.65%, 3/1/31 4,955,073
2,500,000 NR/NR Washington State Housing, 5.25%,
1/1/17 2,189,464
5,000,000 AAA/Aa2 Washington State Health Care Facilities,
5.25%, 10/1/33 5,181,300
------------
$ 57,074,575
- ---------------------------------------------------------------------------------------------------------
Wisconsin -- 1.2%
1,430,000 NR/A1 Adams-Friendship School District, 6.5%,
4/1/16 $ 1,714,127
2,450,000 A/Aa3 Village of Weston Wisconsin, 3.95%,
2/1/13 2,580,267
2,000,000 NR/A3 Wisconsin Health & Education, 5.625%,
4/15/39 2,011,020
4,685,000 NR/A3 Wisconsin State Health & Educational
Facilities Authority, 5.6%, 2/15/29 4,626,016
------------
$ 10,931,430
- ---------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $932,382,008) $923,088,682
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
- ---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount($) Rate (b) Ratings Value
- ---------------------------------------------------------------------------------------------------------
MUTUAL FUND -- 1.4%
DIVERSIFIED FINANCIALS -- 1.4%
Diversified Financial Services -- 1.4%
13,000,000 BlackRock Liquidity Funds TempCash
Portfolio $ 13,000,000
- ---------------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUND
(Cost $13,000,000) $ 13,000,000
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.9%
(Cost $950,221,452) (a) $938,547,922
- ---------------------------------------------------------------------------------------------------------
OTHER ASSETS AND
LIABILITIES -- 0.1% $ 783,978
- ---------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $939,331,911
=========================================================================================================
* Non-income producing security.
NR Not rated by either S&P or Moody's.
WR Withdrawn Rating.
(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
June 30, 2010, the value of these securities amounted to $2,025,079 or
0.2% of total net assets.
(a) At June 30, 2010, the net unrealized loss on investments based on cost
for federal income tax purposes of $947,596,040 was as follows:
Aggregate gross unrealized loss for all investments in which there is an
excess of value over tax cost $34,046,143
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (43,094,261)
-----------
Net unrealized loss $(9,048,118)
===========
(b) Debt obligation with a variable interest rate. Rate shown is rate at
period end.
(c) Security is in default and is non-income producing.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended June 30, 2010 aggregated $73,245,141 and $86,951,930,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 29
Schedule of Investments | 6/30/10 (unaudited) (continued)
The following is a summary of the inputs used as of June 30, 2010, in valuing
the Fund's assets:
- ---------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
- ---------------------------------------------------------------------------------
Common Stocks $ 2,459,240 $ -- $-- $ 2,459,240
Municipal Bonds -- 923,088,682 -- 923,088,682
Mutual Fund 13,000,000 -- -- 13,000,000
- ---------------------------------------------------------------------------------
Total $15,459,240 $ 923,088,682 $-- $938,547,922
=================================================================================
The accompanying notes are an integral part of these financial statements.
30 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
Statement of Assets and Liabilities | 6/30/10 (unaudited)
ASSETS:
Investment in securities, at value (cost $950,221,452) $938,547,922
Cash 685,755
Receivables --
Investment securities sold 901,815
Fund shares sold 570,019
Interest 13,150,693
Other 48,488
- --------------------------------------------------------------------------
Total assets $953,904,692
- --------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 12,650,586
Fund shares repurchased 529,956
Dividends 1,144,644
Due to Pioneer Investment Management, Inc. 2,352
Due to affiliates 145,318
Accrued expenses 99,925
- --------------------------------------------------------------------------
Total liabilities $ 14,572,781
- --------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $954,652,472
Undistributed net investment income 3,390,470
Accumulated net realized loss on investments (7,037,501)
Net unrealized loss on investments (11,673,530)
- --------------------------------------------------------------------------
Total net assets $939,331,911
==========================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $801,549,008/61,120,607 shares) $ 13.11
Class B (based on $11,523,261/884,709 shares) $ 13.02
Class C (based on $41,075,994/3,156,440 shares) $ 13.01
Class Y (based on $85,183,648/6,510,728 shares) $ 13.08
MAXIMUM OFFERING PRICE:
Class A ($13.11 [divided by] 95.50%) $ 13.73
==========================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 31
Statement of Operations (unaudited)
For the Six Months Ended 6/30/10
INVESTMENT INCOME:
Interest $21,361,473
- -----------------------------------------------------------------------------------------
Total investment income $21,361,473
- -----------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,815,038
Transfer agent fees
Class A 160,416
Class B 5,000
Class C 6,799
Class Y 1,221
Distribution fees
Class A 858,093
Class B 49,769
Class C 176,255
Shareholder communications expense 69,678
Administrative reimbursements 121,655
Custodian fees 6,659
Registration fees 35,715
Professional fees 62,903
Printing expense 26,034
Fees and expenses of nonaffiliated trustees 9,200
Miscellaneous 51,861
- -----------------------------------------------------------------------------------------
Total expenses $ 3,456,296
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (107,637)
- -----------------------------------------------------------------------------------------
Net expenses $ 3,348,659
- -----------------------------------------------------------------------------------------
Net investment income $18,012,814
- -----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $ 1,740,450
- -----------------------------------------------------------------------------------------
Change in net unrealized gain on investments $12,821,549
- -----------------------------------------------------------------------------------------
Net gain on investments $14,561,999
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $32,574,813
=========================================================================================
The accompanying notes are an integral part of these financial statements.
32 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
Statement of Changes in Net Assets
For the Six Months Ended 6/30/10 and the Year Ended 12/31/09, respectively
- --------------------------------------------------------------------------------------------
Six Months
Year Ended
6/30/10 Year Ended
(unaudited) 12/31/09
- --------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 18,012,814 $ 23,906,163
Net realized gain (loss) on investments 1,740,450 (9,884,318)
Change in net unrealized gain on investments 12,821,549 86,797,248
- --------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 32,574,813 $100,819,093
- --------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.29 and $0.61 per share, respectively) $(15,418,165) $(21,744,438)
Class B ($0.23 and $0.50 per share, respectively) (178,749) (245,171)
Class C ($0.24 and $0.50 per share, respectively) (651,720) (888,890)
Class Y ($0.31 and $0.63 per share, respectively) (1,442,971) (1,096,135)
Net realized gain:
Class A ($0.00 and $0.01 per share, respectively) -- (179,999)
Class B ($0.00 and $0.01 per share, respectively) -- (2,201)
Class C ($0.00 and $0.01 per share, respectively) -- (9,574)
Class Y ($0.00 and $0.01 per share, respectively) -- (9,025)
- --------------------------------------------------------------------------------------------
Total distributions to shareowners $(17,691,605) $(24,175,433)
- --------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 39,859,714 $ 56,636,262
Shares issued in reorganization 417,600,371 73,975,006
Reinvestment of distributions 12,156,291 15,054,845
Cost of shares repurchased (78,988,980) (80,759,552)
- --------------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund share
transactions $390,627,396 $ 64,906,561
- --------------------------------------------------------------------------------------------
Net increase in net assets $405,510,604 $141,550,221
NET ASSETS:
Beginning of period 533,821,307 392,271,086
- --------------------------------------------------------------------------------------------
End of period $939,331,911 $533,821,307
- --------------------------------------------------------------------------------------------
Undistributed net investment income $ 3,390,470 $ 3,069,261
- --------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 33
Statement of Changes in Net Assets (continued)
- ---------------------------------------------------------------------------------------------------------
'10 Shares '10 Amount
(unaudited) (unaudited) '09 Shares '09 Amount
- ---------------------------------------------------------------------------------------------------------
Class A
Shares sold 1,796,832 $ 23,613,109 3,355,816 $40,839,914
Reinvestment of distributions 868,913 11,335,583 1,176,375 14,458,732
Shares issued in reorganization of
Pioneer AMT-Free CA Municipal Fund -- -- 5,703,207 68,324,416
Shares issued in reorganization of
Pioneer Intermediate Tax Free
Income Fund 594,920 7,710,163 -- --
Shares issued in reorganization of
Pioneer Tax Free Income Fund 25,471,046 330,104,753 -- --
Less shares repurchased (4,891,204) (63,723,979) (5,362,126) (66,299,212)
- ---------------------------------------------------------------------------------------------------------
Net increase 23,840,507 $309,039,629 4,873,272 $57,323,850
=========================================================================================================
Class B
Shares sold 18,703 $ 243,263 79,753 $ 951,989
Reinvestment of distributions 9,868 127,813 8,871 107,840
Shares issued in reorganization of
Pioneer AMT-Free CA Municipal Fund -- -- 65,510 779,574
Shares issued in reorganization of
Pioneer Tax Free Income Fund 605,286 7,790,030 -- --
Less shares repurchased (205,955) (2,667,212) (185,481) (2,273,278)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) 427,902 $ 5,493,894 (31,347) $ (433,875)
=========================================================================================================
Class C
Shares sold 282,573 $ 3,664,958 612,081 $ 7,427,598
Reinvestment of distributions 30,009 388,630 34,716 424,409
Shares issued in reorganization of
Pioneer AMT-Free CA Municipal Fund -- -- 409,673 4,871,016
Shares issued in reorganization of
Pioneer Intermediate Tax Free
Income Fund 5,168 66,460 -- --
Shares issued in reorganization of
Pioneer Tax Free Income Fund 1,066,656 13,717,192 -- --
Less shares repurchased (297,543) (3,847,739) (386,538) (4,717,655)
- ---------------------------------------------------------------------------------------------------------
Net increase 1,086,863 $ 13,989,501 669,932 $ 8,005,368
=========================================================================================================
Class Y
Shares sold 945,378 $ 12,338,384 599,149 $ 7,416,761
Reinvestment of distributions 23,397 304,265 5,216 63,864
Shares issued in reorganization of
Pioneer Intermediate Tax Free
Income Fund 626,916 8,106,024 -- --
Shares issued in reorganization of
Pioneer Tax Free Income Fund 3,875,155 50,105,749 -- --
Less shares repurchased (670,659) (8,750,050) (599,847) (7,469,407)
- ---------------------------------------------------------------------------------------------------------
Net increase 4,800,187 $ 62,104,372 4,518 $ 11,218
=========================================================================================================
The accompanying notes are an integral part of these financial statements.
34 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
Financial Highlights
Six Months
Ended Year
6/30/10 Ended
(unaudited) 12/31/09
Class A
Net asset value, beginning of period $ 12.86 $ 10.90
- ---------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.27 $ 0.59
Net realized and unrealized gain (loss) on investments 0.27 1.99
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.54 $ 2.58
Distributions to shareowners:
Net investment income (0.29) (0.61)
Net realized gain -- (0.01)
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.25 $ 1.96
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.11 $ 12.86
===================================================================================================
Total return* 4.25% 24.01%
Ratio of net expenses to average net assets+ 0.82%** 0.82%
Ratio of net investment income to average net assets+ 4.57%** 4.94%
Portfolio turnover rate 20%** 18%
Net assets, end of period (in thousands) $801,549 $479,599
Ratios with no waiver of fees by the Adviser and no reduction for fees
paid indirectly:
Net expenses 0.85%** 0.88%
Net investment income 4.54%** 4.88%
Ratios with waiver of fees by the Adviser and reduction for fees paid
indirectly:
Net expenses 0.82%** 0.82%
Net investment income 4.57%** 4.94%
===================================================================================================
Year Year Year Year
Ended Ended Ended Ended
12/31/08 12/31/07 12/31/06 12/31/05
Class A
Net asset value, beginning of period $ 13.50 $ 14.11 $ 14.13 $ 14.38
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.60 $ 0.62 $ 0.53 $ 0.54
Net realized and unrealized gain (loss) on investments (2.54) (0.42) 0.18 0.14
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.94) $ 0.20 $ 0.71 $ 0.68
Distributions to shareowners:
Net investment income (0.59) (0.61) (0.61) (0.64)
Net realized gain (0.07) (0.20) (0.12) (0.29)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.60) $ (0.61) $ (0.02) $ (0.25)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.90 $ 13.50 $ 14.11 $ 14.13
===========================================================================================================================
Total return* (14.85)% 1.40% 5.20% 4.81%
Ratio of net expenses to average net assets+ 0.82% 0.82% 0.86% 0.87%
Ratio of net investment income to average net assets+ 4.66% 4.45% 4.48% 4.42%
Portfolio turnover rate 27% 18% 8% 12%
Net assets, end of period (in thousands) $353,257 $451,219 $471,084 $16,033
Ratios with no waiver of fees by the Adviser and no reduction for fees
paid indirectly:
Net expenses 0.88% 0.85% 0.96% 1.16%
Net investment income 4.60% 4.42% 4.38% 4.13%
Ratios with waiver of fees by the Adviser and reduction for fees paid
indirectly:
Net expenses 0.82% 0.82% 0.86% 0.87%
Net investment income 4.66% 4.45% 4.48% 4.42%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 35
Financial Highlights (continued)
Six Months
Ended Year
6/30/10 Ended
(unaudited) 12/31/09
Class B
Net asset value, beginning of period $ 12.78 $10.83
- -----------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.20 $ 0.50
Net realized and unrealized gain (loss) on investments 0.27 1.96
- -----------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.47 $ 2.46
Distributions to shareowners:
Net investment income (0.23) (0.50)
Net realized gain -- (0.01)
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.24 $ 1.95
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.02 $12.78
===============================================================================================
Total return* 3.73% 22.97%
Ratio of net expenses to average net assets+ 1.68%** 1.71%
Ratio of net investment income to average net assets+ 3.70%** 4.06%
Portfolio turnover rate 20%** 18%
Net assets, end of period (in thousands) $11,523 $5,838
Ratios with no waiver of fees by the Adviser and no reduction for fees
paid indirectly:
Net expenses 1.68%** 1.71%
Net investment income 3.70%** 4.06%
Ratios with waiver of fees by the Adviser and reduction for fees paid
indirectly:
Net expenses 1.68%** 1.71%
Net investment income 3.70%** 4.06%
===============================================================================================
Year Year Year Year
Ended Ended Ended Ended
12/31/08 12/31/07 12/31/06 12/31/05
Class B
Net asset value, beginning of period $ 13.41 $14.03 $14.07 $14.34
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.48 $ 0.48 $ 0.46 $ 0.45
Net realized and unrealized gain (loss) on investments (2.52) (0.41) 0.14 0.12
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (2.04) $ 0.07 $ 0.60 $ 0.57
Distributions to shareowners:
Net investment income (0.47) (0.49) (0.52) (0.55)
Net realized gain (0.07) (0.20) (0.12) (0.29)
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.58) $(0.62) $(0.04) $(0.27)
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.83 $13.41 $14.03 $14.07
==================================================================================================================
Total return* (15.60%) 0.46% 4.36% 4.02%
Ratio of net expenses to average net assets+ 1.72% 1.72% 1.69% 1.41%
Ratio of net investment income to average net assets+ 3.76% 3.55% 3.62% 3.90%
Portfolio turnover rate 27% 18% 8% 12%
Net assets, end of period (in thousands) $ 5,286 $6,737 $6,228 $2,369
Ratios with no waiver of fees by the Adviser and no reduction for fees
paid indirectly:
Net expenses 1.72% 1.78% 1.69% 1.68%
Net investment income 3.76% 3.49% 3.62% 3.63%
Ratios with waiver of fees by the Adviser and reduction for fees paid
indirectly:
Net expenses 1.72% 1.72% 1.69% 1.41%
Net investment income 3.76% 3.55% 3.62% 3.90%
==================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
36 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
Six Months
Ended Year
6/30/10 Ended
(unaudited) 12/31/09
Class C
Net asset value, beginning of period $ 12.77 $ 10.83
- ------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.22 $ 0.47
Net realized and unrealized gain (loss) on investments 0.26 1.98
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.48 $ 2.45
Distributions to shareowners:
Net investment income (0.24) (0.50)
Net realized gain -- (0.01)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.24 $ 1.94
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.01 $ 12.77
============================================================================================================
Total return* 3.78% 22.93%
Ratio of net expenses to average net assets+ 1.60%** 1.64%
Ratio of net investment income to average net assets+ 3.79%** 4.08%
Portfolio turnover rate 20%** 18%
Net assets, end of period (in thousands) $41,076 $26,422
Ratios assuming no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 1.60%** 1.64%
Net investment income 3.79%** 4.08%
Ratios with waiver of fees by the Adviser and reduction for fees paid
indirectly:
Net expenses 1.60%** 1.64%
Net investment income 3.79%** 4.08%
============================================================================================================
Year Year Year Year
Ended Ended Ended Ended
12/31/08 12/31/07 12/31/06 12/31/05
Class C
Net asset value, beginning of period $ 13.42 $ 14.02 $ 14.04 $14.34
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.45 $ 0.45 $ 0.44 $ 0.44
Net realized and unrealized gain (loss) on investments ( 2.48) (0.35) 0.18 0.09
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (2.03) $ 0.10 $ 0.62 $ 0.53
Distributions to shareowners:
Net investment income ( 0.49) (0.50) (0.52) (0.54)
Net realized gain ( 0.07) (0.20) (0.12) (0.29)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.59) $ (0.60) $ (0.02) $(0.30)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.83 $ 13.42 $ 14.02 $14.04
===================================================================================================================
Total return* (15.56)% 0.67% 4.52% 3.78%
Ratio of net expenses to average net assets+ 1.65% 1.58% 1.65% 1.38%
Ratio of net investment income to average net assets+ 3.85% 3.66% 3.58% 3.87%
Portfolio turnover rate 27% 18% 8% 12%
Net assets, end of period (in thousands) $15,157 $12,620 $ 5,891 $1,183
Ratios assuming no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 1.65% 1.58% 1.65% 1.63%
Net investment income 3.85% 3.66% 3.58% 3.62%
Ratios with waiver of fees by the Adviser and reduction for fees paid
indirectly:
Net expenses 1.65% 1.58% 1.65% 1.38%
Net investment income 3.85% 3.66% 3.58% 3.87%
===================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 37
Financial Highlights (continued)
Six Months
Ended Year
6/30/10 Ended
(unaudited) 12/31/09
Class Y
Net asset value, beginning of period $ 12.84 $ 10.89
- ------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.26 $ 0.63
Net realized and unrealized gain (loss) on investments 0.29 1.96
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.55 $ 2.59
Distributions to shareowners:
Net investment income (0.31) (0.63)
Net realized gain -- (0.01)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.24 $ 1.95
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.08 $ 12.84
============================================================================================================
Total return* 4.32% 24.22%
Ratio of net expenses to average net assets+ 0.55%** 0.58%
Ratio of net investment income to average net assets+ 4.81%** 5.17%
Portfolio turnover rate 20%** 18%
Net assets, end of period (in thousands) $85,184 $21,963
Ratios assuming no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 0.55%** 0.58%
Net investment income 4.81%** 5.17%
Ratios with waiver of fees by the Adviser and reduction for fees paid indirectly:
Net expenses 0.55%** 0.58%
Net investment income 4.81%** 5.17%
============================================================================================================
Year Year 11/10/06
Ended Ended to
12/31/08 12/31/07 12/31/06 (a)
Class Y
Net asset value, beginning of period $ 13.48 $ 14.09 $ 14.17
- ------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.62 $ 0.67 $ 0.09
Net realized and unrealized gain (loss) on investments (2.51) (0.44) (0.06)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.89) $ 0.23 $ 0.03
Distributions to shareowners:
Net investment income (0.63) (0.64) (0.11)
Net realized gain (0.07) (0.20) --
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.59) $ (0.61) $ (0.08)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.89 $ 13.48 $ 14.09
========================================================================================================================
Total return* (14.56)% 1.67% 0.21%(b)
Ratio of net expenses to average net assets+ 0.58% 0.54% 0.60%**
Ratio of net investment income to average net assets+ 4.90% 4.73% 4.49%**
Portfolio turnover rate 27% 18% 8%**
Net assets, end of period (in thousands) $18,571 $23,331 $28,693
Ratios assuming no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 0.58% 0.54% 0.60%**
Net investment income 4.90% 4.73% 4.49%**
Ratios with waiver of fees by the Adviser and reduction for fees paid indirectly:
Net expenses 0.58% 0.54% 0.60%**
Net investment income 4.90% 4.73% 4.49%**
========================================================================================================================
(a) Class Y Shares were first publicly offered November 10, 2006.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
38 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
Notes to Financial Statements | 6/30/10 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer AMT-Free Municipal Fund (the Fund) is one of three series of portfolios
comprising Pioneer Series Trust II, a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is to seek
a high level of current income exempt from federal income tax as is consistent
with the relative stability of capital.
The Fund offers three classes of shares designated as Class A, Class C and
Class Y shares. Effective as of the close of business on December 31, 2009,
Class B shares are no longer offered to new or existing shareholders, except
that dividends and/or capital gain distributions may continue to be reinvested
in Class B shares, and shareholders may exchange their Class B shares for Class
B shares of other Pioneer funds, as permitted by existing exchange privileges.
Each class of shares represents an interest in the same portfolio of
investments of the Fund and has identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of
different dividends from net investment income earned by each class. The
Amended and Restated Declaration of Trust of the Fund gives the Board the
flexibility to specify either per share voting or dollar-weighted voting when
submitting matters for shareholder approval. Under per share voting, each share
of a class of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares. Class B shares convert to Class A shares
approximately eight years after the date of purchase.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making the Fund more susceptible to
any economic, political, or regulatory developments or other risks affecting
those industries and sectors. The Fund's prospectuses contain unaudited
information regarding the Fund's principal risks. Please refer to those
documents when considering the Fund's principal risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 39
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses, and gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Fixed income
securities with remaining maturity of more than sixty days are valued at
prices supplied by independent pricing services, which consider such factors
as market prices, market events, quotations from one or more brokers,
Treasury spreads, yields, maturities and ratings. Valuations may be
supplemented by dealers and other sources, as required. Securities for which
independent pricing services are unable to supply prices or for which market
prices and/or quotations are not readily available or are considered to be
unreliable are valued using fair value methods pursuant to procedures adopted
by the Board of Trustees and may include yield equivalents or a pricing
matrix.
The Fund may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset value.
Thus, the valuation of the Fund's securities may differ from exchange prices.
At June 30, 2010 there were no securities that were valued using fair value
methods. Inputs used in the valuation of a security using fair value methods
include credit ratings, the financial condition of the company current market
conditions and comparable securities. Short-term fixed income securities with
remaining maturities of sixty days or less generally are valued at amortized
cost. Mutual funds are valued at net asset value.
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis over
the life of the respective security with a corresponding increase or decrease
in the cost basis of the security. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
40 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal tax provision is required. Tax years for
the prior three fiscal years remain subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
The tax character of current year distributions payable will be determined at
the end of the current taxable year. The tax character of distributions paid
during the year ended December 31, 2009 was follows:
- --------------------------------------------------------------------------------
2009
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 323,596
Tax-exempt income 23,651,944
Long-term capital gain 199,893
- --------------------------------------------------------------------------------
Total $24,175,433
================================================================================
The following shows the components of distributable earnings on a federal
income tax basis at December 31, 2009:
- --------------------------------------------------------------------------------
2009
- --------------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 443,849
Capital loss carryforward (8,777,951)
Unrealized appreciation 4,665,921
- --------------------------------------------------------------------------------
Total $(3,668,181)
================================================================================
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A., (UniCredit),
earned approximately $36,846 in underwriting commissions on the sale of Class
A shares during the six months ended June 30, 2010.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 41
on its respective percentage of adjusted net assets at the beginning of the
day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund, respectively
(see Note 4). Class Y shares do not pay distribution fees. All expenses and
fees paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
The Fund declares, as daily dividends, substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily dividends.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class B, Class C and Class Y shares
can reflect different transfer agent and distribution expense rates.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary
of UniCredit, manages the Fund's portfolio. Management fees are calculated
daily at the annual rate of 0.50% of the Fund's average daily net assets up to
$250 million; 0.45% of the next $500 million; and 0.40% of the excess over $750
million. For the six months ended June 30, 2010, the effective management fee
(excluding waivers and/or assumption of expenses) was equivalent to 0.46% of
the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund
to the extent required to reduce Fund expenses to 0.82% and 0.55% of the
average daily net assets attributable to Class A and Class Y shares,
respectively. These limitations are in effect through June, 1, 2012 for Class A
shares and through June 1, 2011 for Class Y shares. There can be no assurance
that PIM will extend the expense limit agreement for a class of shares beyond
the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$12,429 in management fees, administrative costs and certain other
reimbursements payable to PIM at June 30, 2010.
42 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
3.Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the six months ended June 30, 2010, such out-of-pocket expenses by class of
shares were as follows:
- --------------------------------------------------------------------------------
Shareholder Communications:
- --------------------------------------------------------------------------------
Class A $58,413
Class B 2,122
Class C 3,814
Class Y 5,329
- --------------------------------------------------------------------------------
Total $69,678
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $57,667 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at June 30, 2010.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B and Class C
shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the
average daily net assets attributable to Class B and Class C shares. The fee for
Class B and Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class C
shares. Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $75,222 in distribution fees payable to PFD at June 30, 2010.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase (within 12 months for purchases made on or after
April 1, 2009). Class B shares that are redeemed within five years of purchase
are subject to a CDSC at declining rates beginning at 4.00%, based on the lower
of cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%, based on the lower
of cost or market value of shares being redeemed. Shares
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 43
purchased as part of an exchange remain subject to any CDSC that applied to the
original purchase of those shares. There is no CDSC for Class Y shares.
Proceeds from the CDSCs are paid to PFD. For the six months ended June 30,
2010, CDSCs in the amount of $12,206 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned
on cash held by PIMSS. For the six months ended June 30, 2010, the Fund's
expenses were not reduced under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a $165 million committed, unsecured revolving line of
credit facility. Borrowings are used solely for temporary or emergency
purposes. The Fund may borrow up to the lesser of the amount available under
the facility or the limits set for borrowing by the Fund's prospectus and the
1940 Act. Interest on borrowings is payable at the higher of the London
Interbank Offered Rate (LIBOR) on the borrowing date plus 1.25% on an
annualized basis or the Federal Funds Rate on the borrowing date plus 1.25% on
an annualized basis. The Funds pay an annual commitment fee for this facility.
The commitment fee is allocated among participating Funds based on an
allocation schedule set forth in the credit agreement. For the six months ended
June 30, 2010, the Fund had no borrowings under this agreement.
7. Reorganization Information
Pioneer AMT-Free CA Municipal Fund was reorganized into Pioneer AMT-Free
Municipal Fund on June 12, 2009. The purpose of this transaction was to combine
two funds (managed by PIM) with similar investment objectives and strategies.
This tax-free reorganization was accomplished by exchanging the assets and
stated liabilities of Pioneer AMT-Free CA Municipal Fund for shares of Pioneer
AMT-Free Municipal Fund. Shareowners holding Class A, Class B and Class C
shares of Pioneer AMT-Free CA Municipal Fund received Class A, Class B and
Class C shares, respectively, of Pioneer AMT-Free Municipal Fund in the
reorganization. The investment portfolio of Pioneer AMT-Free CA Municipal Fund,
with a fair value of $72,747,025 and an identified cost of $84,821,239 at June
12, 2009, was the principal asset acquired by Pioneer AMT-Free Municipal Fund.
For financial reporting purposes, assets received and shares issued by Pioneer
AMT-Free Municipal Fund were recorded at fair value; however, the cost basis of
the investments received from Pioneer AMT-Free CA Municipal Fund was carried
forward to align ongoing reporting of Pioneer AMT-Free Municipal Fund's
realized and unrealized gains and losses
44 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
with amounts distributable to shareowners for tax purposes. The following
charts show the details of the reorganization as of that Closing Date:
- ---------------------------------------------------------------------------------------------------------
Pioneer AMT-Free Pioneer AMT-Free Pioneer AMT-Free
Municipal Fund CA Municipal Fund Municipal Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- ---------------------------------------------------------------------------------------------------------
Net Assets
Class A $400,815,520 $ 68,324,416 $469,139,936
Class B $ 5,743,770 $ 779,574 $ 6,523,344
Class C $ 18,143,923 $ 4,871,016 $ 23,014,939
Class Y $ 19,582,373 $ -- $ 19,582,373
- ---------------------------------------------------------------------------------------------------------
Total Net Assets $444,285,586 $ 73,975,006 $518,260,592
- ---------------------------------------------------------------------------------------------------------
Shares Outstanding
Class A 33,459,729 6,442,737 39,162,936
Class B 482,564 73,910 548,075
Class C 1,525,803 462,799 1,935,477
Class Y 1,637,397 -- 1,637,397
Shares Issued in
Reorganization
Class A 5,703,207
Class B 65,510
Class C 409,673
- ---------------------------------------------------------------------------------------------------------
Unrealized Accumulated
Depreciation On Loss On
Closing Date Closing Date
- ---------------------------------------------------------------------------------------------------------
Pioneer AMT-Free CA Municipal Fund $(12,074,214) $ (461,259)
Assuming the reorganization had been completed on January 1, 2009, the
beginning of the annual reporting period for Pioneer AMT-Free Municipal Fund,
Pioneer AMT-Free Municipal Fund's pro forma results of operations for the year
ended December 31, 2009, are as follows:
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net investment income $ 25,775,244
Net gain on investments $ 84,796,536
Net increase in net assets resulting from operations $110,571,780
Pioneer Tax Free Income Fund and Pioneer Intermediate Tax Free Income Fund were
reorganized into Pioneer AMT-Free Municipal Fund on March 5, 2010. The purpose
of this transaction was to combine three funds (managed by PIM) with similar
investment objectives and strategies. This tax-free reorganization was
accomplished by exchanging the assets and stated liabilities of Pioneer Tax
Free Income Fund and Pioneer Intermediate Tax Free Income Fund for shares of
Pioneer AMT-Free Municipal Fund. Shareowners holding Class A, Class B, Class C
and Class Y shares of Pioneer Tax Free Income Fund received Class A, Class B,
Class C and Class Y shares, respectively, of Pioneer AMT-Free Municipal Fund in
the reorganization. Shareowners holding Class A, Class C and Class Y shares of
Pioneer Intermediate Tax Free Income
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 45
Fund received Class A, Class C and Class Y shares, respectively, of Pioneer
AMT-Free Municipal Fund in the reorganization. The investment portfolio of
Pioneer Tax Free Income Fund, with a fair value of $379,164,310 and an
identified cost of $406,499,798 at March 5, 2010 and the investment portfolio
of Pioneer Intermediate Tax Free Income Fund, with a fair value of $15,394,263
and an identified cost of $14,594,363 at March 5, 2010, were the principal
assets acquired by Pioneer AMT-Free Municipal Fund in the respective
reorganizations. For financial reporting purposes, assets received and shares
issued by Pioneer AMT-Free Municipal Fund were recorded at fair value; however,
the cost basis of the investments received from Pioneer Tax Free Income Fund
and Pioneer Intermediate Tax Free Income Fund were carried forward to align
ongoing reporting of Pioneer AMT-Free Municipal Fund's realized and unrealized
gains and losses with amounts distributable to shareowners for tax purposes.
The following charts show the details of the reorganization as of that Closing
Date:
- -------------------------------------------------------------------------------------------------------------------------
Pioneer
Intermediate
Pioneer AMT-Free Pioneer Tax Free Tax Free Pioneer AMT-Free
Municipal Fund Income Fund Income Fund Municipal Fund
(Pre-Reorganization) (Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- -------------------------------------------------------------------------------------------------------------------------
Net Assets
Class A $ 476,945,445 $ 330,104,753 $ 7,710,163 $ 814,760,361
Class B $ 5,413,460 $ 7,790,030 $ -- $ 13,203,490
Class C $ 26,433,776 $ 13,717,192 $ 66,460 $ 40,217,428
Class Y $ 22,111,557 $ 50,105,749 $ 8,106,024 $ 80,323,330
- -------------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 530,904,238 $ 401,717,724 $ 15,882,647 $ 948,504,609
- -------------------------------------------------------------------------------------------------------------------------
Shares Outstanding
Class A 36,814,211 31,542,771 805,790 62,880,177
Class B 420,588 749,140 -- 1,025,874
Class C 2,055,785 1,330,179 6,939 3,127,609
Class Y 1,710,161 4,805,238 847,542 6,212,232
Shares Issued in
Reorganization
Class A 26,065,966
Class B 605,286
Class C 1,071,824
Class Y 4,502,071
- -------------------------------------------------------------------------------------------------------------------------
Unrealized
Appreciation Accumulated
(Depreciation) On Gain (Loss) On
Closing Date Closing Date
- -------------------------------------------------------------------------------------------------------------------------
Pioneer Tax Free
Income Fund $(27,335,488) $(111,461,671)
Pioneer Intermediate
Tax Free Income
Fund $ 799,900 $ 322,967
46 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
Assuming the reorganization had been completed on January 1, 2010, the
beginning of the annual reporting period for Pioneer AMT-Free Municipal Fund,
Pioneer AMT-Free Municipal Fund's pro forma results of operations for the six
months ended June 30, 2010, are as follows:
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net investment income $21,505,846
Net gain on investments $18,291,635
Net increase in net assets resulting from operations $39,797,481
8. Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
subsequent events and transactions for potential recognition or disclosure and
has determined that there were no subsequent events requiring recognition or
disclosure.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 47
Trustees, Officers and Service Providers
Trustees
John F. Cogan, Jr., Chairman
David R. Bock
Mary K. Bush
Benjamin M. Friedman
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Officers
John F. Cogan, Jr., President
Daniel K. Kingsbury, Executive
Vice President
Mark E. Bradley, Treasurer
Christopher J. Kelley, Secretary
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at http://www.sec.gov.
48 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
This page for your notes.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 49
This page for your notes.
50 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
This page for your notes.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10 51
This page for your notes.
52 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/10
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
- --------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
- --------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
Pioneer Growth Opportunities Fund
- --------------------------------------------------------------------------------
Semiannual Report | June 30, 2010
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A PGOFX
Class B GOFBX
Class C GOFCX
Class R PGRRX
Class Y GROYX
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 27
Notes to Financial Statements 36
Trustees, Officers and Service Providers 45
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe have begun to recover over the past
year from one of their most tumultuous periods in history. This is a welcome
relief, and we are generally optimistic about the prospects for the economy
going forward. Still, challenges remain. Unemployment is high; consumer demand
and loan growth are weak; and housing has not returned to normal.
At Pioneer, we have long advocated the benefits of investing for the long term.
This strategy has generally performed well for many investors. Those who
remained invested in the market during the downturn have most likely seen their
portfolios start to recover over the past year, as the Dow Jones Industrial
Average climbed back from the depressed levels we saw in early 2009. Many bond
investors have similarly seen a strong rebound, with a broad-based recovery
occurring across many different fixed-income asset classes. The riskiest asset
classes, such as high-yield bonds, outperformed other fixed-income asset
classes during most of 2009.
At Pioneer, we are not changing the approach to investing that we have used for
more than 80 years. We remain focused on company fundamentals and risk
management. Our investment process is based on careful research into individual
companies, quantitative analysis, and active portfolio management. This
three-pillared process, which we apply to each of our portfolios, is supported
by an integrated team approach and is designed to carefully balance risk and
reward. While we see potential opportunities for making money in many corners
of the markets around the globe, it takes research and experience to separate
solid investment opportunities from speculation.
Following this difficult period, many investors are rethinking their approach
to investing and risk management. Some are questioning whether the basic
investment principles they were taught in the past are still useful in today's
markets. Complicating matters is that financial markets remain unpredictable.
Our advice, as always, is to work closely with a trusted financial advisor to
discuss your goals and work together to develop an investment strategy that
meets your individual needs. There is no single best strategy that works for
every investor.
2 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
www.pioneerinvestments.com. We greatly appreciate your trust in us and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 3
Portfolio Management Discussion | 6/30/10
In the following interview, Brian Stack, portfolio manager of Pioneer Growth
Opportunities Fund, discusses the factors that influenced the Fund's
performance during the six-month period ended June 30, 2010.
Q Please discuss the market backdrop over the six months ended June 30, 2010.
A After delivering a strong performance through the first four months of the
year, the U.S. stock market reversed course over the last two months of the
period and finished the six months ended June 30, 2010, in the red.
When the year began, investors remained optimistic due to an environment
characterized by improving economic growth and rising corporate earnings
estimates. That favorable backdrop provided fertile ground for the market
to build on its rally of 2009. By mid-way through the second quarter of
2010, however, the news flow started to turn negative. Economic growth
began to slow around the world, putting earnings estimates into question.
Investors also had to weigh the effects of the sovereign debt crisis in
Europe, the prospect of reduced government spending, and the oil spill in
the Gulf of Mexico. The result was a spate of profit-taking that drove
stocks into negative territory on a year-to-date basis by the end of June.
Smaller stocks held up relatively well in this environment, since small-cap
investors tend to be influenced more by company-specific developments than
by broader macroeconomic factors. While the Russell 1000 Growth Index -- a
measure of large-cap performance -- returned -7.65% over the six months
ended June 30, 2010, the small-cap Russell 2000 Index (-1.95%) fared much
better. In a reflection of reduced investor risk appetites over the
six-month period, however, growth stocks underperformed the broader market.
The Fund's benchmark, the Russell 2000 Growth Index, returned -2.31% for
the six-month period.
Q How did the Fund perform in that environment over the six months ended June
30, 2010?
A The Fund's Class A shares returned -3.25% at net asset value during the
six-month period ended June 30, 2010, underperforming the -2.31% return of
the Fund's benchmark, the Russell 2000 Growth Index. Over the same period,
the average return of the 547 funds in Lipper's Small Cap Growth Funds
category was -2.50%.
We continue to employ a disciplined investment style for the Fund known as
"GARP," which stands for "Growth at a Reasonable Price." Simply put,
4 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
GARP means that while we are looking for the best growth stocks in the
small-cap space, we are also very conscious of valuation. We believe this
approach creates a positive balance of risk and reward since it identifies
not just stocks whose growth trends provide ample upside, but also those
whose reasonable valuations provide a measure of downside protection.
Q In what areas did your stock selection process help and hurt the Fund's
performance during the six months ended June 30, 2010?
A On a sector level, our stock picks generated the largest margin of
outperformance for the Fund in health care, but that was offset by
underperformance in consumer discretionary, consumer staples, and
information technology.
The Fund's best individual performer over the six-month period was a health
care stock, Cardiome Pharma. The life sciences company received approval
from the European Union to market an arterial fibrillation drug it had
developed in conjunction with Merck. The approval triggered a payment of
$50 million from Merck, fueling a rise in Cardiome's share price from the
mid-$4 range at the beginning of the period to $8.15 by the end of June.
The Fund also benefited from the strong performance of an investment in
Polypore, which makes components used in hybrid vehicles, one of the
fastest-growing areas of the auto market. The Fund's position in Finisar
was the third-largest positive contributor to the Fund's performance over
the period. A maker of optical components that enable high speed data
networking, the company benefited from rapidly growing demand and improving
profit margins.
The Fund's performance was also helped by merger and acquisitions activity
during the first half of the year. American Italian Pasta received a buyout
offer from the private label food giant Ralcorp, and the stock rose 52% in
response. Additionally, Psychiatric Solutions, which provides behavioral
health programs to children, agreed to be acquired by Universal Health
Services. The stock appreciated 55% during the six-month period ended June
30, 2010.
The Fund's largest performance detractor was Chiquita Brands International,
which lost ground on concerns about weak sales in Europe. We believe the
cause of the stock's weakness is transitory, and we think investors are
missing the more important long-term issue -- that the company's growth and
profit profile have improved due to better operating efficiency, decreased
debt and product line expansion. We have maintained the Fund's position in
Chiquita.
The software maker TiVo also detracted from the Fund's performance during
the six-month period ended June 30, 2010. The stock soared in the first
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 5
quarter of 2010 after a court found that satellite broadcaster DISH
Networks had infringed upon TiVo's patents. The finding would have enabled
TiVo to collect a large and ongoing royalty stream from DISH. In May 2010,
however, DISH was granted an appeal, and TiVo's stock fell from $18 to $7.
The stock is currently valued at a level that reflects only TiVo's non-DISH
revenue streams. We believe that TiVo has a high likelihood of prevailing
when the appeal is heard in the fall, and the stock remains in the Fund's
portfolio.
The Fund's underweight position in consumer discretionary stocks weighed on
its performance over the six months ended June 30, 2010. The positioning
reflected our concerns that high unemployment, low wage growth, and
consumers' efforts to reduce debt would dampen the recovery in
discretionary spending. The positioning weighed most heavily on Fund
performance in the first four months of the period, but it began to add
significant value in May and June once retail stocks fell from their
earlier highs. That the Fund was able to avoid the downturn in retail helps
illustrate the importance, we think, of maintaining a focus on fundamentals
and valuations rather than "chasing" short-term winners.
Q What is your take on the current economic environment?
A Looking first at the broader investment backdrop, we do not expect a sharp,
"V-shaped" economic recovery. Instead, we foresee a sustained period of
more modest, below-trend economic growth. Nevertheless, we believe that
there are still many opportunities to make money within the Fund's
investable universe. We are especially focused on companies with
identifiable drivers of growth, such as innovative products or other
stock-specific catalysts that should allow them to prosper even in the
absence of economic tailwinds.
One such company is Polypore, which is capitalizing on the growing
popularity of hybrid vehicles. Another stock we see as having a strong
growth catalyst is AGA Medical, a medical device maker that is focused on
treating structural heart defects. The company has new products coming to
the market in the year ahead, yet its stock barely discounts the value of
its current, commercialized products. We also see opportunity in DexCom,
which is in the early stages of rolling out a superior glucose monitoring
device that we believe will capture a growing share of the large market in
diabetes care.
The sheer number of stocks in the small-cap space, together with the lower
level of research coverage compared to large caps, means there will always
be opportunities for bottom-up investors to find value in companies with
compelling growth stories. We believe our GARP investment style is well
suited to capitalizing on those opportunities as they arise.
6 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
Please refer to the Schedule of Investments on pages 17-26 for a full listing
of Fund securities.
Investments in small companies may offer the potential for higher returns, but
are also subject to greater short-term price fluctuations than larger, more
established companies. Investing in foreign and/or emerging markets securities
involves risks relating to interest rates, currency exchange rates, economic,
and political conditions. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making it more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 7
Portfolio Summary | 6/30/10
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 79.3%
Temporary Cash Investments 20.7%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of total equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Information Technology 26.6%
Health Care 24.9%
Industrials 16.4%
Consumer Discretionary 12.4%
Financials 5.6%
Consumer Staples 5.5%
Energy 4.8%
Utilities 1.7%
Materials 1.5%
Telecommunication Services 0.6%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Exterran Holdings, Inc. 2.27%
2. Orbital Sciences Corp. 1.70
3. Calpine Corp. 1.67
4. DexCom, Inc. 1.67
5. Chiquita Brands International, Inc. 1.66
6. Lincare Holdings, Inc. 1.62
7. Gymboree Corp. 1.58
8. Cubist Pharmaceuticals, Inc. 1.50
9. Sapient Corp. 1.47
10. Haemonetics Corp. 1.45
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
8 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
Prices and Distributions | 6/30/10
Net Asset Value per Share
- --------------------------------------------------------------------------------
Class 6/30/10 12/31/09
- --------------------------------------------------------------------------------
A $ 22.07 $ 22.81
- --------------------------------------------------------------------------------
B $ 18.86 $ 19.60
- --------------------------------------------------------------------------------
C $ 19.08 $ 19.81
- --------------------------------------------------------------------------------
R $ 22.02 $ 22.80
- --------------------------------------------------------------------------------
Y $ 22.69 $ 23.39
- --------------------------------------------------------------------------------
Distributions per Share: 1/1/10-6/30/10
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- --------------------------------------------------------------------------------
A $ -- $ -- $ --
- --------------------------------------------------------------------------------
B $ -- $ -- $ --
- --------------------------------------------------------------------------------
C $ -- $ -- $ --
- --------------------------------------------------------------------------------
R $ -- $ -- $ --
- --------------------------------------------------------------------------------
Y $ -- $ -- $ --
- --------------------------------------------------------------------------------
Index Definitions
- --------------------------------------------------------------------------------
The Russell 2000 Growth Index measures the performance of U.S. small-cap growth
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, charges or expenses. You
cannot invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" charts on
pages 10-14.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 9
Performance Update | 6/30/10 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Growth Opportunities Fund at public offering price,
compared to that of the Russell 2000 Growth Index.
Average Annual Total Returns
(As of June 30, 2010)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
10 Years 2.13% 1.52%
5 Years -0.90 -2.06
1 Year 16.04 9.37
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.35% 1.35%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Growth Russell 2000
Opportunities Fund Growth Index
6/00 9425 10000
11571 7666
6/02 9245 5749
8259 5789
6/04 10941 7615
12164 7941
6/06 12803 9100
14499 10631
6/08 11730 9479
10022 7124
6/10 11630 8404
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Pioneer Growth Opportunities Fund was created through the reorganization of
predecessor Safeco Growth Opportunities Fund on December 10, 2004. The
performance shown for Class A shares of the Fund for periods prior to December
10, 2004, is based on the performance of the predecessor fund's Class A shares,
which has been restated to reflect differences in any applicable sales charges
(but not differences in expenses). If all the expenses of the Fund were
reflected, the performance shown would be lower.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds and can be rescinded at any time. See the
prospectus and financial statements for complete details.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
Performance Update | 6/30/10 Class B Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Growth Opportunities Fund, compared to that of the
Russell 2000 Growth Index.
Average Annual Total Returns
(As of June 30, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 1.12% 1.12%
5 Years -2.14 -2.14
1 Year 14.58 10.58
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
2.58% 2.58%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Growth Russell 2000
Opportunities Fund Growth Index
6/00 10000 10000
12213 7666
6/02 9687 5749
8587 5789
6/04 11290 7615
12453 7941
6/06 12967 9100
14521 10631
6/08 11587 9479
9752 7124
6/10 11174 8404
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Class B shares reflect the deduction of the maximum applicable CDSC.
The maximum CDSC is 4.0% and declines over five years.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Pioneer Growth Opportunities Fund was created through the reorganization of
predecessor Safeco Growth Opportunities Fund on December 10, 2004. The
performance shown for Class B shares of the Fund for periods prior to December
10, 2004, is based on the performance of the predecessor fund's Class B shares,
which has been restated to reflect differences in any applicable sales charges
(but not differences in expenses). If all the expenses of the Fund were
reflected, the performance shown would be lower.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds and can be rescinded at any time. See the
prospectus and financial statements for complete details.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 11
Performance Update | 6/30/10 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Growth Opportunities Fund, compared to that of the
Russell 2000 Growth Index.
Average Annual Total Returns
(As of June 30, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 1.22% 1.22%
5 Years -1.96 -1.96
1 Year 14.87 14.87
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
2.39% 2.39%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Growth Russell 2000
Opportunities Fund Growth Index
6/00 10000 10000
12204 7666
6/02 9682 5749
8587 5789
6/04 11290 7615
12463 7941
6/06 13021 9100
14594 10631
6/08 11664 9479
9825 7124
6/10 11286 8404
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Pioneer Growth Opportunities Fund was created through the reorganization of
predecessor Safeco Growth Opportunities Fund on December 10, 2004. The
performance shown for Class C shares of the Fund for periods prior to December
10, 2004, is based on the performance of the predecessor fund's Class C shares,
which has been restated to reflect differences in any applicable sales charges
(but not differences in expenses). This adjustment has the effect of reducing
the previously reported performance of the predecessor fund. If all the
expenses of the Fund were reflected, the performance shown would be lower.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers, Fund performance would be lower. Waivers
may not be in effect for all funds and can be rescinded at any time. See the
prospectus and financial statements for complete details.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
Performance Update | 6/30/10 Class R Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Growth Opportunities Fund, compared to that of the
Russell 2000 Growth Index.
Average Annual Total Returns
(As of June 30, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 1.31% 1.31%
5 Years -1.99 -1.99
1 Year 15.58 15.58
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.58% 1.58%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Growth Russell 2000
Opportunities Fund Growth Index
6/00 10000 10000
12218 7666
6/02 9713 5749
8634 5789
6/04 11381 7615
12591 7941
6/06 13186 9100
14765 10631
6/08 11732 9479
9852 7124
6/10 11387 8404
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance for periods from December 10, 2004, to the inception of Class R
shares on August 3, 2009, is based on the performance of the Fund's Class A
shares, reduced to reflect the higher distribution and service fees for Class R
shares. Class R shares are not subject to sales charges and are available for
limited groups of eligible investors, including institutional investors. All
results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Pioneer Growth Opportunities Fund was created through the reorganization of
predecessor Safeco Growth Opportunities Fund on December 10, 2004. The
performance shown for Class R shares for periods prior to December 10, 2004, is
based on the performance of the predecessor fund's Class A shares, which has
been restated to reflect any differences in any applicable sales charges. This
adjustment has the effect of reducing the previously reported performance of
predecessor fund. If all the expenses of the Fund were reflected, the
performance shown would be lower.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers, Fund performance would be lower. Waivers
may not be in effect for all funds and can be rescinded at any time. See the
prospectus and financial statements for complete details.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 13
Performance Update | 6/30/10 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Growth Opportunities Fund, compared to that of the
Russell 2000 Growth Index.
Average Annual Total Returns
(As of June 30, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 2.38% 2.38%
5 Years -0.39 -0.39
1 Year 16.66 16.66
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
0.77% 0.77%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Growth Russell 2000
Opportunities Fund Growth Index
6/00 10000 10000
12279 7666
6/02 9811 5749
8764 5789
6/04 11610 7615
12908 7941
6/06 13634 9100
15537 10631
6/08 12624 9479
10849 7124
6/10 12656 8404
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for periods from December 10, 2004, to the inception of Class
Y shares on September 23, 2005, reflects the NAV performance of the Fund's
Class A shares. The performance does not reflect differences in expenses,
including the Rule 12b-1 fees applicable to Class A shares. Since fees for
Class A shares are generally higher than those of Class Y shares, the
performance for Class Y shares prior to their inception would have been higher
than that shown. Class Y shares are not subject to sales charges and are
available for limited groups of eligible investors, including institutional
investors. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Pioneer Growth Opportunities Fund was created through the reorganization of
predecessor Safeco Growth Opportunities Fund on December 10, 2004. The
performance for Class Y shares for periods prior to December 10, 2004, is based
on the performance of the predecessor fund's Class A shares, which has been
restated to reflect any differences in any applicable sales charges. This
adjustment has the effect of reducing the previously reported performance of
predecessor fund. If all the expenses of the Fund were reflected, the
performance shown would be lower.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers, Fund performance would be lower. Waivers
may not be in effect for all funds and can be rescinded at any time. See the
prospectus and financial statements for complete details.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Growth Opportunities Fund
Based on actual returns from January 1, 2010, through June 30, 2010.
- -------------------------------------------------------------------------------------------------------
Share Class A B C R Y
- -------------------------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 1/01/10
- -------------------------------------------------------------------------------------------------------
Ending Account $ 967.50 $ 962.20 $ 963.20 $ 965.80 $ 970.10
Value on 6/30/10
- -------------------------------------------------------------------------------------------------------
Expenses Paid $ 6.24 $ 11.68 $ 11.10 $ 8.19 $ 3.66
During Period*
- -------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.28%, 2.40%,
2.28%, 1.68% and 0.75% for Class A, Class B, Class C, Class R, and Class Y
shares, respectively, multiplied by the average account value over the
period, multiplied by 181/365 (to reflect the one-half year period).
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Growth Opportunities Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from January 1, 2010, through June 30, 2010.
- -------------------------------------------------------------------------------------------------------
Share Class A B C R Y
- -------------------------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 1/01/10
- -------------------------------------------------------------------------------------------------------
Ending Account $ 1,018.45 $ 1,012.89 $ 1,013.49 $ 1,016.46 $ 1,021.08
Value on 6/30/10
- -------------------------------------------------------------------------------------------------------
Expenses Paid $ 6.41 $ 11.98 $ 11.38 $ 8.40 $ 3.76
During Period*
- -------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.28%, 2.40%,
2.28%, 1.68% and 0.75% for Class A, Class B, Class C, Class R, and Class Y
shares, respectively, multiplied by the average account value over the
period, multiplied by 181/365 (to reflect the one-half year period).
16 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
Schedule of Investments | 6/30/10 (unaudited)
- -------------------------------------------------------------------
Shares Value
- -------------------------------------------------------------------
COMMON STOCKS -- 96.0%
ENERGY -- 4.6%
Oil & Gas Equipment & Services -- 2.6%
474,500 Exterran Holdings, Inc.*(b) $ 12,246,845
375,986 Newpark Resources, Inc.* 2,274,715
------------
$ 14,521,560
- -------------------------------------------------------------------
Oil & Gas Exploration & Production -- 2.0%
111,700 Cabot Oil & Gas Corp. $ 3,498,444
174,659 Carrizo Oil & Gas, Inc.*(b) 2,712,454
96,300 Comstock Resources, Inc.* 2,669,436
32,700 Whiting Petroleum Corp.*(b) 2,564,334
------------
$ 11,444,668
------------
Total Energy $ 25,966,228
- -------------------------------------------------------------------
MATERIALS -- 1.4%
Diversified Metals & Mining -- 1.1%
580,400 Globe Specialty Metals, Inc.* $ 5,995,532
- -------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 0.3%
32,100 CF Industries Holdings, Inc.* $ 2,036,745
------------
Total Materials $ 8,032,277
- -------------------------------------------------------------------
CAPITAL GOODS -- 10.1%
Aerospace & Defense -- 4.8%
176,500 DigitalGlobe, Inc.* $ 4,641,950
394,900 Hexcel Corp.* 6,124,899
581,100 Orbital Sciences Corp.* 9,163,947
142,328 TransDigm Group, Inc.* 7,262,998
------------
$ 27,193,794
- -------------------------------------------------------------------
Construction & Engineering -- 1.8%
223,800 KBR, Inc. (b) $ 4,552,092
342,731 MYR Group, Inc.*(b) 5,720,180
------------
$ 10,272,272
- -------------------------------------------------------------------
Electrical Component & Equipment -- 1.2%
289,700 Polypore International, Inc.* $ 6,587,778
- -------------------------------------------------------------------
Industrial Machinery -- 1.3%
258,000 Altra Holdings, Inc.* $ 3,359,160
146,600 Kennametal, Inc. 3,728,038
------------
$ 7,087,198
- -------------------------------------------------------------------
Trading Companies & Distributors -- 1.0%
439,400 Titan Machinery, Inc.*(b) $ 5,769,322
------------
Total Capital Goods $ 56,910,364
- -------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 17
Schedule of Investments | 6/30/10 (unaudited) (continued)
- ------------------------------------------------------------------
Shares Value
- ------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 4.5%
Diversified Support Services -- 2.3%
183,000 Copart, Inc.* $ 6,553,230
339,000 Healthcare Services Group, Inc. 6,424,050
------------
$ 12,977,280
- ------------------------------------------------------------------
Office Services & Supplies -- 0.3%
118,500 Sykes Enterprises, Inc.* $ 1,686,255
- ------------------------------------------------------------------
Research & Consulting Services -- 1.9%
177,800 CoStar Group, Inc.*(b) $ 6,898,640
119,600 Verisk Analytics, Inc.* 3,576,040
------------
$ 10,474,680
------------
Total Commercial Services & Supplies $ 25,138,215
- ------------------------------------------------------------------
TRANSPORTATION -- 1.2%
Air Freight & Couriers -- 0.6%
292,200 UTI Worldwide, Inc. (b) $ 3,617,436
- ------------------------------------------------------------------
Airlines -- 0.6%
74,800 Allegiant Travel Co. (b) $ 3,193,212
------------
Total Transportation $ 6,810,648
- ------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 2.6%
Apparel, Accessories & Luxury Goods -- 0.8%
123,400 The Warnaco Group, Inc.* $ 4,459,676
- ------------------------------------------------------------------
Footwear -- 0.4%
93,000 Wolverine World Wide, Inc. $ 2,345,460
- ------------------------------------------------------------------
Housewares & Specialties -- 0.7%
99,300 Tupperware Brands Corp. $ 3,957,105
- ------------------------------------------------------------------
Leisure Products -- 0.7%
961,800 Leapfrog Enterprises, Inc.*(b) $ 3,866,436
------------
Total Consumer Durables & Apparel $ 14,628,677
- ------------------------------------------------------------------
CONSUMER SERVICES -- 5.3%
Casinos & Gaming -- 2.1%
505,700 Scientific Games Corp.* $ 4,652,440
175,100 WMS Industries, Inc.* 6,872,675
------------
$ 11,525,115
- ------------------------------------------------------------------
Education Services -- 3.2%
107,600 American Public Education, Inc.* $ 4,702,120
334,235 Grand Canyon Education, Inc.*(b) 7,831,126
26,500 Strayer Education, Inc. (b) 5,509,085
------------
$ 18,042,331
------------
Total Consumer Services $ 29,567,446
- ------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
- ------------------------------------------------------------------------
Shares Value
- ------------------------------------------------------------------------
MEDIA -- 0.9%
Movies & Entertainment -- 0.9%
996,500 CKX, Inc.* $ 4,972,535
------------
Total Media $ 4,972,535
- ------------------------------------------------------------------------
RETAILING -- 3.2%
Apparel Retail -- 2.0%
199,900 Gymboree Corp.* $ 8,537,729
69,100 J. Crew Group, Inc.*(b) 2,543,571
------------
$ 11,081,300
- ------------------------------------------------------------------------
Internet Retail -- 1.2%
928,900 Orbitz Worldwide, Inc.* $ 3,539,109
392,200 Vitacost.com, Inc.*(b) 3,525,878
------------
$ 7,064,987
------------
Total Retailing $ 18,146,287
- ------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 5.3%
Packaged Foods & Meats -- 3.8%
108,522 American Italian Pasta Co.*(b) $ 5,737,558
740,200 Chiquita Brands International, Inc.*(b) 8,993,430
252,800 Green Mountain Coffee Roasters, Inc.*(b) 6,496,960
------------
$ 21,227,948
- ------------------------------------------------------------------------
Soft Drinks -- 0.9%
1,119,900 Heckmann Corp.*(b) $ 5,196,336
- ------------------------------------------------------------------------
Tobacco -- 0.6%
884,959 Alliance One International, Inc.*(b) $ 3,150,454
------------
Total Food, Beverage & Tobacco $ 29,574,738
- ------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 16.0%
Health Care Distributors -- 1.1%
119,900 Henry Schein, Inc.*(b) $ 6,582,510
- ------------------------------------------------------------------------
Health Care Equipment -- 5.1%
612,753 Abiomed, Inc.*(b) $ 5,931,449
185,306 ArthroCare Corp.*(b) 5,679,629
781,044 DexCom, Inc.*(b) 9,028,869
263,900 Insulet Corp.*(b) 3,971,695
320,300 MAKO Surgical Corp.* 3,987,735
------------
$ 28,599,377
- ------------------------------------------------------------------------
Health Care Facilities -- 0.6%
101,300 Psychiatric Solutions, Inc.* $ 3,314,536
- ------------------------------------------------------------------------
Health Care Services -- 5.3%
206,993 Air Methods Corp.* $ 6,158,042
68,700 DaVita, Inc.* 4,289,628
105,000 HMS Holdings Corp.* 5,693,100
190,939 IPC The Hospitalist Co., Inc.*(b) 4,792,569
The accompanying notes are an integral part of these financial statements.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 19
Schedule of Investments | 6/30/10 (unaudited) (continued)
- ---------------------------------------------------------------------
Shares Value
- ---------------------------------------------------------------------
Health Care Services -- (continued)
269,150 Lincare Holdings, Inc.*(b) $ 8,750,067
------------
$ 29,683,406
- ---------------------------------------------------------------------
Health Care Supplies -- 3.3%
326,800 AGA Medical Holdings Corp.*(b) $ 4,147,092
488,300 Endologix, Inc.* 2,211,999
146,700 Haemonetics Corp.* 7,851,384
164,100 Inverness Medical Innovations, Inc.*(b) 4,374,906
------------
$ 18,585,381
- ---------------------------------------------------------------------
Health Care Technology -- 0.6%
148,700 MedAssets, Inc.* $ 3,431,996
------------
Total Health Care Equipment & Services $ 90,197,206
- ---------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 7.9%
Biotechnology -- 5.0%
217,700 Advanced Magnetics, Inc.*(b) $ 7,477,995
91,600 Alexion Pharmaceuticals, Inc.* 4,689,004
286,900 BioMarin Pharmaceutical, Inc.*(b) 5,439,624
394,600 Cubist Pharmaceuticals, Inc.*(b) 8,128,760
148,000 Myriad Genetics, Inc.* 2,212,600
------------
$ 27,947,983
- ---------------------------------------------------------------------
Life Sciences Tools & Services -- 1.0%
248,000 Parexel International Corp.*(b) $ 5,376,640
- ---------------------------------------------------------------------
Pharmaceuticals -- 1.9%
165,411 Ardea Biosciences, Inc.*(b) $ 3,400,850
918,110 Cardiome Pharma Corp.*(b) 7,482,597
------------
$ 10,883,447
------------
Total Pharmaceuticals & Biotechnology $ 44,208,070
- ---------------------------------------------------------------------
BANKS -- 1.5%
Regional Banks -- 1.5%
233,382 Home Bancshares, Inc. $ 5,323,443
143,288 Orrstown Financial Services, Inc. (b) 3,170,963
------------
$ 8,494,406
------------
Total Banks $ 8,494,406
- ---------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.0%
Consumer Finance -- 0.8%
238,398 Ezcorp, Inc.* $ 4,422,283
- ---------------------------------------------------------------------
Investment Banking & Brokerage -- 0.6%
278,570 E*Trade Financial Corp.* $ 3,292,697
- ---------------------------------------------------------------------
Specialized Finance -- 0.6%
134,900 MSCI, Inc.* $ 3,696,260
------------
Total Diversified Financials $ 11,411,240
- ---------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
- ---------------------------------------------------------------------
Shares Value
- ---------------------------------------------------------------------
INSURANCE -- 1.0%
Property & Casualty Insurance -- 1.0%
187,400 Axis Capital Holdings, Ltd. $ 5,569,528
------------
Total Insurance $ 5,569,528
- ---------------------------------------------------------------------
REAL ESTATE -- 0.8%
Real Estate Services -- 0.8%
188,100 Altisource Portfolio Solutions SA* $ 4,749,525
------------
Total Real Estate $ 4,749,525
- ---------------------------------------------------------------------
SOFTWARE & SERVICES -- 17.2%
Application Software -- 9.6%
427,533 Aspen Technology, Inc.* $ 4,655,834
89,800 Blackboard, Inc.*(b) 3,352,234
299,600 Bottomline Technologies, Inc.* 3,903,788
99,152 Concur Technologies, Inc.*(b) 4,231,807
228,400 Informatica Corp.* 5,454,192
415,000 Nuance Communications, Inc.*(b) 6,204,250
375,975 Solarwinds, Inc.*(b) 6,030,639
157,900 Solera Holdings, Inc. 5,715,980
119,233 The Ultimate Software Group, Inc.*(b) 3,917,996
413,349 TIBCO Software, Inc.* 4,984,989
786,873 TiVo, Inc.*(b) 5,807,123
------------
$ 54,258,832
- ---------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.3%
123,491 SPS Commerce, Inc.* $ 1,434,965
- ---------------------------------------------------------------------
Internet Software & Services -- 4.1%
226,900 Archipelago Learning, Inc.* $ 2,593,467
1,037,100 Art Technology Group, Inc.* 3,546,882
215,722 Dealertrack Holdings, Inc.* 3,548,627
440,600 Dice Holdings, Inc.* 3,048,952
199,800 LogMeIn, Inc.* 5,240,754
104,400 VistaPrint NV*(b) 4,957,956
------------
$ 22,936,638
- ---------------------------------------------------------------------
IT Consulting & Other Services -- 2.3%
226,800 Gartner Group, Inc.* $ 5,273,100
785,600 Sapient Corp. (b) 7,965,984
------------
$ 13,239,084
- ---------------------------------------------------------------------
Systems Software -- 0.9%
500,404 DemandTec, Inc.*(b) $ 3,377,727
107,300 Fortinet, Inc.*(b) 1,764,012
------------
$ 5,141,739
------------
Total Software & Services $ 97,011,258
- ---------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 21
Schedule of Investments | 6/30/10 (unaudited) (continued)
- -------------------------------------------------------------------------
Shares Value
- -------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 4.7%
Communications Equipment -- 2.6%
1,083,400 Brocade Communications Systems, Inc.* $ 5,590,344
286,147 Finisar Corp.*(b) 4,263,590
159,300 Polycom, Inc.* 4,745,547
------------
$ 14,599,481
- -------------------------------------------------------------------------
Electronic Equipment & Instruments -- 1.4%
261,200 Flir Systems, Inc.* $ 7,598,308
- -------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.7%
430,800 TTM Technologies, Inc.*(b) $ 4,092,600
------------
Total Technology Hardware & Equipment $ 26,290,389
- -------------------------------------------------------------------------
SEMICONDUCTORS -- 3.6%
1,059,800 Anadigics, Inc.* $ 4,620,728
148,700 Hittite Microwave Corp.* 6,652,838
280,500 Microsemi Corp.* 4,103,715
180,469 Netlogic Microsystems, Inc.*(b) 4,908,757
------------
$ 20,286,038
------------
Total Semiconductors $ 20,286,038
- -------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.6%
Alternative Carriers -- 0.6%
499,600 Premiere Global Services, Inc.* $ 3,167,464
------------
Total Telecommunication Services $ 3,167,464
- -------------------------------------------------------------------------
UTILITIES -- 1.6%
Independent Power Producer & Energy Traders -- 1.6%
710,000 Calpine Corp.* $ 9,034,752
------------
Total Utilities $ 9,034,752
- -------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $496,266,949) $540,167,291
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
Principal
Amount ($)
- -------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 25.0%
Securities Lending Collateral -- 25.0% (c)
Certificates of Deposit:
4,079,416 Bank of Nova Scotia, 0.47%, 9/7/10 $ 4,079,416
4,079,416 Barclays, 0.30%, 7/23/10 4,079,416
4,487,357 CBA Financial, 0.56%, 1/3/11 4,487,357
4,079,416 Deutschebank, 0.30%, 7/19/10 4,079,416
2,447,649 DnB NOR Bank ASA NY, 0.49%, 8/26/10 2,447,649
4,079,421 Rabobank Nederland NY, 0.23%, 7/6/10 4,079,421
The accompanying notes are an integral part of these financial statements.
22 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
- ------------------------------------------------------------------------------
Principal
Amount ($) Value
- ------------------------------------------------------------------------------
Certificates of Deposit -- (continued):
4,079,416 Royal Bank of Canada, 0.26%, 1/21/11 $ 4,079,416
4,079,416 Svenska NY, 0.265%, 7/19/10 4,079,416
------------
$ 31,411,507
- ------------------------------------------------------------------------------
Commercial Paper:
2,447,649 American Honda Finance, 0.38%, 5/4/11 $ 2,447,649
1,631,766 American Honda Finance, 0.38%, 4/15/11 1,631,766
539,690 Caterpillar Financial Services, 0.47%, 8/20/10 539,690
4,080,176 Federal Home Loan Bank, 0.31%, 6/1/11 4,080,176
1,631,538 NABPP, 0.28%, 7/19/10 1,631,538
2,038,802 PARFIN, 0.39%, 8/11/10 2,038,802
4,079,257 SOCNAM, 0.28%, 7/6/10 4,079,257
3,261,322 CHARF, 0.46%, 8/23/10 3,261,322
2,445,752 CLIPPR, 0.45%, 9/1/10 2,445,752
1,697,910 FAIRPP, 0.50%, 8/16/10 1,697,910
2,038,066 FASCO, 0.46%, 9/2/10 2,038,066
1,874,889 FASCO, 0.45%, 9/9/10 1,874,889
2,855,467 SRCPP, 0.26%, 7/7/10 2,855,467
2,862,263 STRAIT, 0.43%, 8/23/10 2,862,263
1,968,036 TBLLC, 0.40%, 8/9/10 1,968,036
4,078,594 Varfun, 0.29%, 7/26/10 4,078,594
3,688,255 CME, Inc., 1.00%, 8/6/10 3,688,255
1,224,058 GE Capital Corp., 0.64%, 8/20/10 1,224,058
441,578 GE Capital Corp., 0.40%, 10/21/10 441,578
444,626 GE Capital Corp., 0.35%, 10/6/10 444,626
2,039,499 GE, 0.37%, 1/26/11 2,039,499
407,590 GE Capital Corp., 0.33%, 6/6/11 407,590
454,868 John Deere Capital Corp., 0.32%, 7/16/10 454,868
3,449,732 JPMorgan Chase & Co., 0.57%, 9/24/10 3,449,732
4,624,901 Santander, 0.30%, 7/23/10 4,624,901
4,079,416 Toyota Motor Credit Corp., 0.35%, 1/10/11 4,079,416
2,447,794 Wachovia, 0.64%, 3/22/11 2,447,794
1,142,358 Wal-Mart Stores, Inc., 0.22%, 7/1/10 1,142,358
1,631,492 WFC, 0.60%, 12/2/10 1,631,492
4,079,416 WSTPAC, 0.39%, 11/5/10 4,079,416
------------
$ 69,686,760
- ------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
5,118,035 Barclays, 0.1%, 7/1/10 $ 5,118,035
10,198,535 Deutsche Bank, 0.3%, 7/1/10 10,198,535
12,238,247 RBS Securities, Inc., 0.5%, 7/1/10 12,238,247
------------
$ 27,554,817
- ------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 23
Schedule of Investments | 6/30/10 (unaudited) (continued)
- ------------------------------------------------------------------------
Shares Value
- ------------------------------------------------------------------------
Money Market Mutual Funds
6,119,123 Blackrock Liquidity Temp Cash Fund $ 6,119,123
6,119,123 Dreyfus Preferred Money Market Fund 6,119,123
-------------
$ 12,238,246
-------------
Total Securities Lending Collateral $ 140,891,330
- ------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $140,891,330) $ 140,891,330
- ------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 121.0%
(Cost $637,158,279) (a) $ 681,058,621
- ------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (21.0)% $(118,172,693)
- ------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 562,885,928
========================================================================
* Non-income producing security.
(a) At June 30, 2010, the net unrealized gain on investments based on cost
for federal income tax purposes of $643,321,869 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $67,923,637
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (30,186,885)
-----------
Net unrealized gain $37,736,752
===========
(b) At June 30, 2010, the following securities were out on loan:
- ---------------------------------------------------------------------
Shares Security Value
- ---------------------------------------------------------------------
606,600 Abiomed, Inc.* $ 5,871,888
310,300 AGA Medical Holdings Corp.* 3,937,707
74,000 Allegiant Travel Co. 3,159,060
76,500 Alliance One International, Inc.* 272,340
177,000 Advanced Magnetics, Inc.* 6,079,950
7,500 American Italian Pasta Co.* 396,525
64,300 Ardea Biosciences, Inc.* 1,322,008
70,000 ArthroCare Corp.* 2,145,500
273,800 BioMarin Pharmaceutical, Inc.* 5,191,248
87,000 Blackboard, Inc.* 3,247,710
295,800 Cardiome Pharma Corp.* 2,410,770
58,400 Carrizo Oil & Gas, Inc.* 906,952
372,800 Chiquita Brands International, Inc.* 4,529,520
99,100 Concur Technologies, Inc.* 4,229,588
174,200 CoStar Group, Inc.* 6,758,960
1,600 Cubist Pharmaceuticals, Inc.* 32,960
The accompanying notes are an integral part of these financial statements.
24 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
- ----------------------------------------------------------------------
Shares Security Value
- ----------------------------------------------------------------------
454,200 DemandTec, Inc.* $ 3,065,850
297,100 DexCom, Inc.* 3,434,476
469,600 Exterran Holdings, Inc.* 12,120,376
283,100 Finisar Corp.* 4,218,190
9,600 Fortinet, Inc.* 157,824
176,600 Grand Canyon Education, Inc.* 4,137,738
116,700 Green Mountain Coffee Roasters, Inc.* 2,999,190
571,000 Heckmann Corp.* 2,649,440
252,700 Insulet Corp.* 3,803,135
6,800 Inverness Medical Innovations, Inc.* 181,288
48,200 IPC The Hospitalist Co., Inc.* 1,209,820
38,300 J. Crew Group, Inc.* 1,409,823
80,700 KBR, Inc. 1,641,438
64,600 Leapfrog Enterprises, Inc.* 259,692
154,985 Lincare Holdings, Inc.* 5,038,563
3,300 MYR Group, Inc.* 55,077
72,300 Netlogic Microsystems, Inc.* 1,966,560
120,500 Nuance Communications, Inc.* 1,801,475
102,600 Orrstown Financial Services, Inc. 2,270,538
5,300 Parexel International Corp.* 114,904
237,400 Sapient Corp. 2,407,236
82,600 Henry Schein, Inc.* 4,534,740
313,800 Solarwinds, Inc.* 5,033,352
26,000 Strayer Education, Inc. 5,405,140
372,500 Titan Machinery, Inc.* 4,890,925
23,900 TiVo, Inc.* 176,382
10,900 TTM Technologies, Inc.* 103,550
34,800 The Ultimate Software Group, Inc.* 1,143,528
100,000 UTI Worldwide, Inc. 1,238,000
99,200 VistaPrint NV* 4,711,008
300,000 Vitacost.com, Inc.* 2,697,000
7,600 Whiting Petroleum Corp.* 595,992
- ----------------------------------------------------------------------
Total $135,964,935
======================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 25
Schedule of Investments | 6/30/10 (unaudited) (continued)
(c) Securities lending collateral is managed by Credit Suisse AG, New York
Branch.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended June 30, 2010 aggregated $338,327,603 and $423,892,748,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of June 30, 2010, in valuing
the Fund's assets:
- ----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
- ----------------------------------------------------------------------------------------------
Common Stocks $540,167,291 $ -- $ -- $540,167,291
Temporary Cash Investments -- 128,633,084 -- 128,653,084
Money Market Mutual Funds 12,238,246 -- -- 12,238,246
- ----------------------------------------------------------------------------------------------
Total $552,405,537 $128,633,084 $ -- $681,058,621
==============================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
Statement of Assets and Liabilities | 6/30/10 (unaudited)
ASSETS:
Investment in securities (including securities loaned of $135,964,935)
(cost $637,158,279) $681,058,621
Cash 7,534,702
Receivables --
Investment securities sold 16,946,052
Fund shares sold 222,026
Dividends 103,426
Other 50,209
- ----------------------------------------------------------------------------------------
Total assets $705,915,036
- ----------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 1,460,725
Fund shares repurchased 408,729
Upon return of securities loaned 140,891,330
Due to affiliates 215,410
Accrued expenses 52,914
- ----------------------------------------------------------------------------------------
Total liabilities $143,029,108
- ----------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $754,499,906
Accumulated net investment loss (3,125,501)
Accumulated net realized loss on investments (232,388,819)
Net unrealized gain on investments 43,900,342
- ----------------------------------------------------------------------------------------
Total net assets $562,885,928
========================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $430,730,121/19,512,575 shares) $ 22.07
Class B (based on $29,993,212/1,590,135 shares) $ 18.86
Class C (based on $44,131,336/2,313,010 shares) $ 19.08
Class R (based on $9,805,229/445,302 shares) $ 22.02
Class Y (based on $48,226,030/2,125,048 shares) $ 22.69
MAXIMUM OFFERING PRICE:
Class A ($22.07[divided by]94.25%) $ 23.42
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 27
Statement of Operations (unaudited)
For the Six Months Ended 6/30/10
INVESTMENT INCOME:
Dividends $ 993,318
Interest and other income 37,209
Income from securities loaned, net 169,774
- ---------------------------------------------------------------------------------------
Total investment income $ 1,200,301
- ---------------------------------------------------------------------------------------
EXPENSES:
Management fees $2,044,191
Transfer agent fees
Class A 481,849
Class B 100,075
Class C 48,825
Class R 3,877
Class Y 2,029
Distribution fees
Class A 586,240
Class B 186,279
Class C 244,669
Class R 26,739
Shareholder communications expense 310,194
Administrative reimbursements 94,798
Custodian fees 17,248
Registration fees 40,439
Professional fees 66,026
Printing expense 33,998
Fees and expenses of nonaffiliated trustees 9,590
Miscellaneous 28,736
- ---------------------------------------------------------------------------------------
Total expenses $ 4,325,802
- ---------------------------------------------------------------------------------------
Net expenses $ 4,325,802
- ---------------------------------------------------------------------------------------
Net investment loss $ (3,125,501)
- ---------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $ 51,753,374
- ---------------------------------------------------------------------------------------
Change in net unrealized gain on investments $(65,878,203)
- ---------------------------------------------------------------------------------------
Net loss on investments $(14,124,829)
- ---------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(17,250,330)
=======================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
Statement of Changes in Net Assets
For the Six Months Ended 6/30/10 and the Year Ended 12/31/09, respectively
- ------------------------------------------------------------------------------------------------
Six Months
Ended
6/30/10 Year Ended
(unaudited) 12/31/09
- ------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment loss $ (3,125,501) $ (1,892,735)
Net realized gain (loss) on investments 51,753,374 (3,524,564)
Change in net unrealized gain (loss) on investments (65,878,203) 122,119,969
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $(17,250,330) $116,702,670
- ------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 32,522,399 $ 26,185,688
Shares issued in reorganization -- 384,615,214
Cost of shares repurchased (99,744,680) (95,667,556)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Fund
share transactions $(67,222,281) $315,133,346
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(84,472,611) $431,836,016
NET ASSETS:
Beginning of period 647,358,539 215,522,523
- ------------------------------------------------------------------------------------------------
End of period $562,885,928 $647,358,539
- ------------------------------------------------------------------------------------------------
Accumulated net investment loss $ (3,125,501) $ --
- ------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 29
Statement of Changes in Net Assets (continued)
- --------------------------------------------------------------------------------------------------------
'10 Shares '10 Amount '09 Shares '09 Amount
(unaudited) (unaudited)
- --------------------------------------------------------------------------------------------------------
Class A
Shares sold 978,086 $ 23,615,946 896,454 $ 18,157,940
Shares issued in reorganization -- -- 10,825,861 228,425,673
Less shares repurchased (1,800,327) (42,479,184) (2,134,952) (42,790,352)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) (822,241) $(18,863,238) 9,587,363 $203,793,261
========================================================================================================
Class B
Shares sold 67,498 $ 1,400,503 92,304 $ 1,649,214
Shares issued in reorganization -- -- 2,212,262 40,263,167
Less shares repurchased (568,845) (11,571,594) (295,984) (5,485,978)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) (501,347) $(10,171,091) 2,008,582 $ 36,426,403
========================================================================================================
Class C
Shares sold 160,253 $ 3,340,738 167,011 $ 3,082,984
Shares issued in reorganization -- -- 2,627,567 48,320,960
Less shares repurchased (366,414) (7,546,978) (325,032) (6,147,991)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) (206,161) $ (4,206,240) 2,469,546 $ 45,255,953
========================================================================================================
Class R (a)
Shares sold 94,064 $ 2,233,706 53,300 $ 1,167,112
Shares issued in reorganization -- -- 459,269 9,690,575
Less shares repurchased (110,021) (2,589,657) (51,310) (1,125,982)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) (15,957) $ (355,951) 461,259 $ 9,731,705
========================================================================================================
Class Y
Shares sold 78,961 $ 1,931,506 104,241 $ 2,128,438
Shares issued in reorganization -- -- 2,682,484 57,914,839
Less shares repurchased (1,461,996) (35,557,267) (1,877,580) (40,117,253)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) (1,383,035) $(33,625,761) 909,145 $ 19,926,024
========================================================================================================
(a) Class R shares commenced operations on August 3, 2009.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/10 Ended Ended Ended Ended Ended
(unaudited) 12/31/09 12/31/08 12/31/07 12/31/06 12/31/05
- -----------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 22.81 $ 15.95 $ 25.24 $ 28.81 $ 31.16 $ 29.80
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment loss $ (0.11) $ (0.07) $ (0.07) $ (0.20) $ (0.02) $ (0.12)
Net realized and unrealized gain (loss) on investments (0.63) 6.93 (8.91) (1.01) 1.45 1.48
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.74) $ 6.86 $ (8.98) $ (1.21) $ 1.43 $ 1.36
Distributions to shareowners:
Net realized gain -- -- (0.31) (2.36) (3.78) --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.74) $ 6.86 $ (9.29) $ (3.57) $ (2.35) $ 1.36
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 22.07 $ 22.81 $ 15.95 $ 25.24 $ 28.81 $ 31.16
===================================================================================================================================
Total return* (3.25)% 43.01% (35.39)% (3.90)% 4.78% 4.56%
Ratio of net expenses to average net assets+ 1.28%** 1.35% 1.28% 1.17% 1.28% 1.26%
Ratio of net investment loss to average net assets+ (0.89)%** (0.53)% (0.29)% (0.65)% (0.39)% (0.56)%
Portfolio turnover rate 111%** 140% 221% 104% 99% 83%
Net assets, end of period (in thousands) $430,730 $463,880 $171,415 $339,870 $428,128 $ 53,000
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for
fees paid indirectly:
Net expenses 1.28%** 1.35% 1.28% 1.17% 1.28% 1.26%
Net investment loss (0.89)%** (0.53)% (0.29)% (0.65)% (0.39)% (0.56)%
Ratios with waiver of fees and assumption of
expenses by the Adviser and reduction for
fees paid indirectly:
Net expenses 1.28%** 1.35% 1.28% 1.16% 1.28% 1.26%
Net investment loss (0.89)%** (0.53)% (0.28)% (0.64)% (0.39)% (0.56)%
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 31
Financial Highlights (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/10 Ended Ended Ended Ended Ended
(unaudited) 12/31/09 12/31/08 12/31/07 12/31/06 12/31/05
- ------------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 19.60 $ 13.90 $ 22.42 $ 26.19 $ 28.94 $ 27.94
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment loss $ (0.24) $ (0.11) $ (0.39) $ (0.48) $ (0.48) $ (0.16)
Net realized and unrealized gain (loss) on investments (0.50) 5.81 (7.82) (0.93) 1.51 1.16
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.74) $ 5.70 $ (8.21) $ (1.41) $ 1.03 $ 1.00
Distributions to shareowners:
Net realized gain -- -- (0.31) (2.36) (3.78) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.74) $ 5.70 $ (8.52) $ (3.77) $ (2.75) $ 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.86 $ 19.60 $ 13.90 $ 22.42 $ 26.19 $ 28.94
====================================================================================================================================
Total return* (3.78)% 41.01% (36.41)% (5.06)% 3.74% 3.58%
Ratio of net expenses to average net assets+ 2.40%** 2.58% 2.84% 2.40% 2.40% 2.37%
Ratio of net investment loss to average net assets+ (2.02)%** (1.54)% (1.86)% (1.88)% (1.67)% (1.72)%
Portfolio turnover rate 111%** 140% 221% 104% 99% 83%
Net assets, end of period (in thousands) $29,993 $40,989 $ 1,153 $ 2,385 $ 3,145 $ 3,503
Ratios with no waiver of fees and assumption
of expenses by the Adviser and no reduction
for fees paid indirectly:
Net expenses 2.40%** 2.58% 2.84% 2.40% 2.40% 2.37%
Net investment loss (2.02)%** (1.54)% (1.86)% (1.88)% (1.67)% (1.72)%
Ratios with waiver of fees and assumption
of expenses by the Adviser and reduction for
fees paid indirectly:
Net expenses 2.40%** 2.58% 2.82% 2.37% 2.38% 2.37%
Net investment loss (2.02)%** (1.54)% (1.84)% (1.85)% (1.65)% (1.71)%
====================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/10 Ended Ended Ended Ended Ended
(unaudited) 12/31/09 12/31/08 12/31/07 12/31/06 12/31/05
- ------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 19.81 $ 14.02 $ 22.57 $ 26.32 $ 29.01 $ 27.94
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment loss $ (0.20) $ (0.09) $ (0.27) $ (0.46) $ (0.36) $ (0.16)
Net realized and unrealized gain (loss) on investments (0.53) 5.88 (7.97) (0.93) 1.45 1.23
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.73) $ 5.79 $ (8.24) $ (1.38) $ 1.09 $ 1.07
Distributions to shareowners:
Net realized gain -- -- (0.31) (2.36) (3.78) --
Redemption fees -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.73) $ 5.79 $ (8.55) $ (3.75) $ (2.69) $ 1.07
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 19.08 $ 19.81 $ 14.02 $ 22.57 $ 26.32 $ 29.01
====================================================================================================================================
Total return* (3.68)% 41.30% (36.30)% (4.96)% 3.93% 3.83%
Ratio of net expenses to average net assets+ 2.28%** 2.39% 2.65% 2.22% 2.27% 2.02%
Ratio of net investment loss to average net assets+ (1.90)%** (1.33)% (1.64)% (1.70)% (1.52)% (1.36)%
Portfolio turnover rate 111%** 140% 221% 104% 99% 83%
Net assets, end of period (in thousands) $44,131 $49,914 $ 696 $ 1,042 $ 1,381 $ 887
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for
fees paid indirectly:
Net expenses 2.28%** 2.39% 2.65% 2.22% 2.27% 2.02%
Net investment loss (1.90)%** (1.33)% (1.64)% (1.70)% (1.52)% (1.36)%
Ratios with waiver of fees and assumption of
expenses by the Adviser and reduction for
fees paid indirectly:
Net expenses 2.28%** 2.39% 2.64% 2.20% 2.26% 2.02%
Net investment loss (1.90)%** (1.33)% (1.63)% (1.68)% (1.51)% (1.36)%
====================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 33
Financial Highlights (continued)
- -----------------------------------------------------------------------------------------------
Six Months
Ended
6/30/10 8/3/09 to
(unaudited) 12/31/09 (a)
- -----------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 22.80 $ 20.45
- -----------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.16) $ (0.04)
Net realized and unrealized gain (loss) on investments (0.62) 2.39
- -----------------------------------------------------------------------------------------------
Net decrease from investment operations $ (0.78) $ 2.35
- -----------------------------------------------------------------------------------------------
Net decrease in net asset value $ (0.78) $ 2.35
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $ 22.02 $ 22.80
===============================================================================================
Total return* (3.42)% 11.49%(b)
Ratio of net expenses to average net assets+ 1.68%** 1.58%* *
Ratio of net investment income to average net assets+ (1.30)%** (0.49)%**
Portfolio turnover rate 111%** 140%**
Net assets, end of period (in thousands) $ 9,805 $ 10,515
Ratios with reduction for fees paid indirectly:
Net expenses 1.68%** 1.58%* *
Net investment loss (1.30)%** (0.49)%**
===============================================================================================
(a) Class R shares were first publicly offered on August 3, 2009.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at each end of each period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year 9/23/05
6/30/10 Ended Ended Ended Ended to
(unaudited) 12/31/09 12/31/08 12/31/07 12/31/06 12/31/05 (a)
- ------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 23.39 $ 16.26 $ 25.59 $ 29.05 $ 31.19 $ 30.48
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment gain (loss) $ (0.06) $ 0.01(c) $ 0.05 $ (0.06) $ 0.01 $ (0.01)
Net realized and unrealized gain (loss) on investments (0.64) 7.12 (9.07) (1.04) 1.63 0.72
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.70) $ 7.13 $ (9.02) $ (1.10) $ 1.64 $ 0.71
Distributions to shareowners:
Net realized gain -- -- (0.31) (2.36) (3.78) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.70) $ 7.13 $ (9.33) $ (3.46) $ (2.14) $ 0.71
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 22.69 $ 23.39 $ 16.26 $ 25.59 $ 29.05 $ 31.19
====================================================================================================================================
Total return* (2.99)% 43.85% (35.06)% (3.48)% 5.46% 4.66%(b)
Ratio of net expenses to average net assets+ 0.75%** 0.77% 0.79% 0.71% 0.72% 0.78%**
Ratio of net investment income (loss) to
average net assets+ (0.38)%** (0.04)% 0.23% (0.19)% 0.00% (0.15)%**
Portfolio turnover rate 111%** 140% 221% 104% 99% 83%
Net assets, end of period (in thousands) $ 48,226 $ 82,061 $ 42,259 $75,001 $139,415 $ 215,755
Ratios with waiver of fees and assumption of
expenses by the Adviser and reduction for
fees paid indirectly:
Net expenses 0.75%** 0.77% 0.79% 0.71% 0.70% 0.77%**
Net investment income (loss) ( 0.38)%** 0.04% 0.23% (0.19)% 0.02% (0.14)%**
====================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
(a) Class Y shares were first offered September 23, 2005.
(b) Not annualized.
(c) The amount shown for share outstanding does not correspond with the net
investment loss on the Statement of Operations for the period due to the
timing of sales and repurchases of shares.
The accompanying notes are an integral part of these financial statements.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 35
Notes to Financial Statements | 6/30/10 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Growth Opportunities Fund (the Fund) is one of three series comprising
Pioneer Series Trust II, a Delaware statutory trust. The Fund is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is growth of capital.
The Fund offers four classes of shares designated as Class A, Class C, Class R,
and Class Y shares. Class R shares were first publicly offered on August 3,
2009. Class Y shares were first publicly offered on September 23, 2005.
Effective as of the close of business on December 31, 2009, Class B shares are
no longer offered to new or existing shareholders, except that dividends and/or
capital gain distributions may continue to be reinvested in Class B shares, and
shareholders may exchange their Class B shares for Class B shares of other
Pioneer funds, as permitted by existing exchange privileges. Each class of
shares represents an interest in the same portfolio of investments of the Fund
and has identical rights (based on relative net asset values) to assets and
liquidation proceeds. Share classes can bear different rates of class-specific
fees and expenses such as transfer agent and distribution fees. Differences in
class-specific fees and expenses will result in differences in net investment
income and, therefore, the payment of different dividends from net investment
income earned by each class. The Amended and Restated Declaration of Trust of
the Fund gives the Board the flexibility to specify either per share voting or
dollar-weighted voting when submitting matters for shareholder approval. Under
per share voting, each share of a class of the Fund is entitled to one vote.
Under dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y shares. Class B shares
convert to Class A shares approximately eight years after the date of purchase.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making the Fund more susceptible to
any economic, political, or regulatory developments or other risks affecting
those industries and sectors. The Fund's prospectuses contain unaudited
information regarding the Fund's principal risks. Please refer to those
documents when considering the Fund's principal risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
36 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses, and gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities that have traded on an exchange are fair
valued at the last sale price on the principal exchange where they are
traded. Securities that have not traded on the date of valuation, or
securities for which sale prices are not available, generally are fair valued
at the mean between the last bid and asked prices. Securities for which
market prices and/or quotations are not readily available or are considered
to be unreliable are valued using fair value methods pursuant to procedures
adopted by the Board of Trustees.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times.
The Fund may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset value.
Thus, the valuation of the Fund's securities may differ from exchange prices.
At June 30, 2010, there were no securities that were valued using fair value
methods. Inputs used in the valuation of a security using fair value methods
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. Short-term fixed income
securities with remaining maturities of sixty days or less generally are fair
valued at amortized cost. Money market mutual funds are valued at net asset
value.
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in the
exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis. Dividend and
interest income are reported net of unrecoverable foreign taxes withheld at
the applicable country rates.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 37
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in market price of those securities but are included with
the net realized and unrealized gain or loss on investments.
C. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal tax provision is required. Tax years for
the prior three fiscal years remain subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
The tax character of current year distributions payable will be determined at
the end of the current taxable year. There were no distributions paid during
the fiscal year ended December 31, 2009.
The following shows the components of distributable earnings on a federal
income tax basis at December 31, 2009.
- --------------------------------------------------------------------------------
2009
- --------------------------------------------------------------------------------
Distributable earnings:
Capital loss carryforward $ (275,619,602)
Post-October loss deferred (2,359,001)
Unrealized appreciation 103,614,955
- --------------------------------------------------------------------------------
Total $ (174,363,648)
- --------------------------------------------------------------------------------
38 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
D. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned approximately $14,901 in underwriting commissions on the sale of Class
A shares during the six months ended June 30, 2010.
E. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning of
the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, Class C and Class R shares of the Fund,
respectively (see Note 4). Class Y shares do not pay distribution fees. All
expenses and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3.)
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class B, Class C, Class R and Class Y
shares can reflect different transfer agent and distribution expense rates.
F. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors. When entering into a securities loan transaction,
the Fund typically receives cash collateral from the borrower equal to at
least the fair value of the securities loaned, which is invested in temporary
investments. Credit Suisse AG, New York Branch, as the Fund's securities
lending agent, manages the Fund's securities lending collateral. The income
earned on the investment of collateral is shared with the borrower and the
lending agent in payment of any rebate due to the borrower with respect to
the securities loan, and in compensation for the lending agent's services to
the Fund. The Fund also continues to receive payments in lieu of dividends or
interest on the securities loaned. Gain or loss on the value of the loaned
securities that may occur during the term of the loan will be for the account
of the Fund. The amount of the collateral is required to be adjusted daily to
reflect any price fluctuation in the fair value of the loaned securities. If
the required market value of the collateral is less than the fair value of
the loaned securities, the borrower is required to deliver additional
collateral for the account of the Fund prior to the close of business on that
day. The Fund has the
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 39
right, under the lending agreement, to terminate the loan and recover the
securities from the borrower with prior notice. The Fund is required to
return the cash collateral to the borrower and could suffer a loss if the
value of the collateral, as invested, has declined.
G. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian or a subcustodian of the Fund. The Fund's
investment adviser, Pioneer Investment Management, Inc. (PIM), is responsible
for determining that the value of the collateral remains at least equal to
the repurchase price.
H. Option Writing
The funds may buy and sell put and call options, or write put and covered
call options on portfolio securities in order to produce incremental earning
or protect against changes in the value of portfolio securities. The funds
generally purchase put options or write covered call options to hedge against
adverse movements in the value of portfolio holdings. When an option is
written, the Fund receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price, upon the exercise of the
option. When the Fund writes an option, an amount equal to the premium
received by the Fund is recorded as a liability and is subsequently adjusted
to the current fair value of the option written. Premiums received from
writing options that expire unexercised are treated by the Fund on the
expiration date as realized gains from investments. The difference between
the premium and the amount paid on effecting a closing purchase transaction,
including brokerage commissions, is also treated as a realized gain, or, if
the premium is less than the amount paid for the closing purchase
transaction, as a realized loss. If a call option is exercised, the premium
is added to the proceeds from the sale of the underlying security in
determining whether the Fund has realized a gain or loss. The Fund as writer
of an option bears the market risk of an unfavorable change in the price of
the security underlying the written option. For the six months ended June 30,
2010 there were no transactions in written options.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.65% of
the Fund's average daily net assets.
40 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.45% of the average daily net assets
attributable to Class A shares. Class B, Class C, Class R and Class Y shares do
not have expense limitations. The expense limitation is in effect through
September 1, 2011 for Class A shares. There can be no assurance that PIM will
extend the expense limitation agreement beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to Affiliates" reflected on the Statement of Assets and Liabilities is
$10,591 in management fees, administrative costs and certain other
reimbursements payable to PIM at June 30, 2010.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the six months ended June 30, 2010 such out-of-pocket expenses by class of
shares were as follows:
- --------------------------------------------------------------------------------
Shareholder Communications:
- --------------------------------------------------------------------------------
Class A $183,663
Class B 22,580
Class C 82,400
Class R 19,350
Class Y 2,201
- --------------------------------------------------------------------------------
Total $310,194
- --------------------------------------------------------------------------------
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $199,663 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at June 30, 2010.
4. Distribution and Service Plans
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B, Class C
and Class R shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the
average daily net assets attributable to Class A shares as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class A shares. Pursuant to the Plan, the Fund also pays PFD
1.00% of the average daily net assets attributable to Class B and Class C
shares. The fee for Class B and Class C shares consists of a 0.25% service fee
and a 0.75%
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 41
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class
C shares. Pursuant to the Plan, the Fund further pays PFD 0.50% of the average
daily net assets attributable to Class R shares for distribution services.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $5,156 in distribution fees payable to PFD at June 30, 2010.
The Fund also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Fund a
service fee of up to 0.25% of the Fund's average daily net assets attributable
to Class R shares held by such plans.
In addition, redemptions of each class of shares (except Class R and Class Y
shares) may be subject to a contingent deferred sales charge (CDSC). A CDSC of
1.00% may be imposed on redemptions of certain net asset value purchases of
Class A shares within 18 months of purchase (within 12 months for purchases
made on or after April 1, 2009). Class B shares that are redeemed within five
years of purchase are subject to a CDSC at declining rates beginning at 4.00%,
based on the lower of cost or market value of shares being redeemed.
Redemptions of Class C shares within one year of purchase are subject to a CDSC
of 1.00%, based on the lower of cost or market value of shares being redeemed.
Shares purchased as part of an exchange remain subject to any CDSC that applied
to the original purchase of those shares. There is no CDSC for Class R or Class
Y shares. Proceeds from the CDSCs are paid to PFD. For the six months ended
June 30, 2010, CDSCs in the amount of $19,767 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses, due to interest earned
on cash held by PIMSS. For the six months ended June 30, 2010, the Fund's
expenses were not reduced under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a $165 million committed, unsecured revolving line of
credit facility. Borrowings are used solely for temporary or emergency
purposes. The Fund may borrow up to the lesser of the amount available under
the facility or the limits set for borrowing by the Fund's prospectus and the
1940 Act. Interest on borrowings is payable at the higher of the London
Interbank Offered Rate (LIBOR) on the borrowing date plus 1.25% on an
annualized basis or the Federal Funds Rate on the borrowing date plus 1.25% on
an annualized basis. The Funds pay an annual commitment fee for this facility.
42 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
The commitment fee is allocated among participating Funds based on an
allocation schedule set forth in the credit agreement. For the six months ended
June 30, 2010, the Fund had no borrowings under this agreement.
7. Reorganization Information
Pioneer Small Cap Value Fund was reorganized into Pioneer Growth Opportunities
Fund on August 28, 2009. The purpose of this transaction was to combine two
funds (managed by PIM) with similar investment objectives and strategies. This
tax-free reorganization was accomplished by exchanging the assets and stated
liabilities of Pioneer Small Cap Value Fund for shares of Pioneer Growth
Opportunities Fund.
Shareowners holding Class A, Class B, Class C, Class R and Class Y shares of
Pioneer Small Cap Value Fund received Class A, Class B, Class C, Class R and
Class Y shares, respectively, of Pioneer Growth Opportunities Fund in the
reorganization. The investment portfolio of Pioneer Small Cap Value Fund, with
a fair value of $398,937,998 and an identified cost of $401,928,323 at August
28, 2009, was the principal asset acquired by Pioneer Growth Opportunities
Fund. For financial reporting purposes, assets received and shares issued by
Pioneer Growth Opportunities Fund were recorded at fair value; however, the
cost basis of the investments received from Pioneer Small Cap Value Fund was
carried forward to align ongoing reporting of Pioneer Growth Opportunities
Fund's realized and unrealized gains and losses with amounts distributable to
shareowners for tax purposes. The following charts show the details of the
reorganization as of that Closing Date:
- -----------------------------------------------------------------------------------------
Pioneer Growth Pioneer Small Pioneer Growth
Opportunities Fund Cap Value Fund Opportunities Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- -----------------------------------------------------------------------------------------
Net Assets
Class A $218,381,748 $228,425,673 $446,807,421
Class B $ 1,648,142 $ 40,263,167 $ 41,911,309
Class C $ 1,422,914 $ 48,320,960 $ 49,743,874
Class R $ 15,967 $ 9,690,575 $ 9,706,542
Class Y $ 44,450,812 $ 57,914,839 $102,365,651
- -----------------------------------------------------------------------------------------
Total Net Assets $265,919,583 $384,615,214 $650,534,797
- -----------------------------------------------------------------------------------------
Shares Outstanding
Class A 10,352,091 12,876,615 21,177,952
Class B 90,538 2,656,995 2,302,800
Class C 77,379 2,968,545 2,704,946
Class R 757 553,775 460,026
Class Y 2,058,821 3,144,680 4,741,305
Shares Issued in
Reorganization
Class A -- -- 10,825,861
Class B -- -- 2,212,262
Class C -- -- 2,627,567
Class R -- -- 459,269
Class Y -- -- 2,682,484
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
43
- -----------------------------------------------------------------------------------------
Unrealized Accumulated
Appreciation On Loss On
Closing Date Closing Date
- -----------------------------------------------------------------------------------------
Pioneer Small Cap Value Fund $ (2,990,325) $(185,381,897)
Assuming the reorganization had been completed on January 1, 2009, the
beginning of the annual reporting period for Pioneer Growth Opportunities Fund,
Pioneer Growth Opportunities Fund's pro forma results of operations for the
year ended December 31, 2009, are as follows:
Net investment loss $ (2,904,210)
Net gain on investments 186,349,060
- --------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 183,444,850
- --------------------------------------------------------------------------------
8. Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure and has
determined that there were no subsequent events requiring recognition or
disclosure in the financial statements.
44 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
Trustees, Officers and Service Providers
Trustees
John F. Cogan, Jr., Chairman
David R. Bock
Mary K. Bush
Benjamin M. Friedman
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Officers
John F. Cogan, Jr., President
Daniel K. Kingsbury, Executive
Vice President
Mark E. Bradley, Treasurer
Christopher J. Kelley, Secretary
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at http://www.sec.gov.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 45
This page for your notes.
46 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
This page for your notes.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 47
This page for your notes.
48 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
This page for your notes.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 49
This page for your notes.
50 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
This page for your notes.
Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10 51
This page for your notes.
52 Pioneer Growth Opportunities Fund | Semiannual Report | 6/30/10
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
- --------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
- --------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
Pioneer Tax Free
Money Market Fund
- --------------------------------------------------------------------------------
Semiannual Report | June 30, 2010
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A TTAXX
Class Y PTYXX*
* Effective March 24, 2010, Class Y shares of the Fund were liquidated.
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Performance Update 8
Comparing Ongoing Fund Expenses 9
Schedule of Investments 11
Financial Statements 15
Notes to Financial Statements 20
Trustees, Officers and Service Providers 24
Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe have begun to recover over the past year
from one of their most tumultuous periods in history. This is a welcome relief,
and we are generally optimistic about the prospects for the economy going
forward. Still, challenges remain. Unemployment is high; consumer demand and
loan growth are weak; and housing has not returned to normal.
At Pioneer, we have long advocated the benefits of investing for the long term.
This strategy has generally performed well for many investors. Those who
remained invested in the market during the downturn have most likely seen their
portfolios start to recover over the past year, as the Dow Jones Industrial
Average climbed back from the depressed levels we saw in early 2009. Many bond
investors have similarly seen a strong rebound, with a broad-based recovery
occurring across many different fixed-income asset classes. The riskiest asset
classes, such as high-yield bonds, outperformed other fixed-income asset classes
during most of 2009.
At Pioneer, we are not changing the approach to investing that we have used for
more than 80 years. We remain focused on company fundamentals and risk
management. Our investment process is based on careful research into individual
companies, quantitative analysis, and active portfolio management. This
three-pillared process, which we apply to each of our portfolios, is supported
by an integrated team approach and is designed to carefully balance risk and
reward. While we see potential opportunities for making money in many corners of
the markets around the globe, it takes research and experience to separate solid
investment opportunities from speculation.
Following this difficult period, many investors are rethinking their approach to
investing and risk management. Some are questioning whether the basic investment
principles they were taught in the past are still useful in today's markets.
Complicating matters is that financial markets remain unpredictable. Our advice,
as always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs. There is no single best strategy that works for every
investor.
2 Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
www.pioneerinvestments.com. We greatly appreciate your trust in us and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10 3
Portfolio Management Discussion | 6/30/10
In the following interview, Pioneer Tax Free Money Market Fund Portfolio Manager
Seth Roman outlines the investment environment for tax-free money market
securities during the six months ended June 30, 2010, the Fund's performance,
his investment strategy, and his outlook going forward.
Q How did the Fund perform during the six months ended June 30, 2010?
A For the six-month period ended June 30, 2010, the Fund's Class A shares
posted a return of 0.00% at net asset value, while the average return of the
99 funds in Lipper's Tax-Exempt Money Market Funds category was 0.01% over
the same period.
Q Could you describe the investment environment for tax-exempt money funds
during the time period?
A In the first half of 2010, with U.S. economic progress mixed and job growth
reemerging only very slowly, the Federal Reserve Board (the Fed) kept its
benchmark Federal funds rate at a target range between 0.00% and 0.25%, and
continued to state that it would do so "for an extended period." With
government stimulus's seemingly having run its course, leading economic
indicators appeared to peak during the second quarter of 2010, and
corporations remained cautious in their spending and hiring. During the
six-month period ended June 30, 2010, state and local governments' budget
woes increased. Unlike the Federal government, states and municipalities must
balance their budgets annually; this obligation has become much more
difficult for states and municipalities to fulfill after a sustained period
of reduced tax revenue throughout much of the United States. California and
many other states are faced with serious fiscal stress. Internationally,
Greece's budget crisis negatively affected the global bond market, and the
European Central Bank worked to prevent the fiscal crisis there from
spreading to other European countries, especially Spain, Portugal, Italy and
Ireland. In response to the budgetary problems in Europe, the three-month
London Interbank Offered Rate (LIBOR) rose from 0.25% as of December 31,
2009, to 0.53% at June 30, 2010. Tax-free money market rates, however,
remained fairly flat over the same period.
Q What was the investment strategy for the Fund during the six months ended
June 30, 2010?
A We continued to maintain broad diversification within the Fund's portfolio,
both on a regional and national basis, with AAA-rated credits in revenue
issues. As we pursued our nationally-focused diversification strategy for the
Fund, we strongly emphasize high-quality and safety of principal.
4 Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10
In a difficult period for the tax-exempt money markets, we continued to
take an extremely cautious approach in managing Fund assets, in particular
avoiding issues tied to economically troubled state governments such as
those of California, Illinois, New York and New Jersey. During the six-month
period ended June 30, 2010, the Fund invested principally in high-quality
daily and weekly floating-rate securities. These floating-rate securities
are extremely liquid, with yields that adjust daily or weekly based on
market conditions, providing us with strategic flexibility and the Fund
with some measure of yield. From time to time, we took advantage of
opportunities to purchase longer-term issues for the Fund -- though only
those of the highest quality -- to pick up additional yield.
Q What is your outlook?
A Though the U.S. economy continues to struggle, we think that a "double-dip"
recession is unlikely. With overseas markets such as China and Brazil
slowing, it seems reasonable to believe that the U.S. economy will also grow
more slowly during the second half of 2010.
In the coming months, we will continue to look for opportunities to extend
the Fund's maturity, though with extreme caution. Because budgets for
several states and many municipalities are severely strained, we will
continue to examine credit quality carefully. In addition, we will monitor
market movements strictly and seek to take advantage of any upward movement
in short-term yields, while maintaining the highest-quality portfolio for
the Fund.
Please refer to the Schedule of Investments on pages 11-14 for a full listing of
Fund securities.
Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Fund. Fund shares are
not federally insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board or any other government agency. When interest rates rise, the
prices of fixed income securities in the Fund will generally fall. Conversely,
when interest rates fall, the prices of fixed income securities in the Fund will
generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations. Investing in foreign and/or emerging markets securities
involves risks relating to interest rates, currency exchange rates, economic,
and political conditions. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making it more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10 5
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes.
6 Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10
Portfolio Summary | 6/30/10
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[The following data was represented as a pie chart in the printed material]
Medical 26.5%
Higher Education 23.6%
Development 10.0%
General 7.0%
Water 7.0%
Government 6.4%
Utilities 6.0%
Diversified 4.5%
Education 3.4%
Airport 3.3%
School District 2.3%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of debt holdings)*
1. Syracuse New York Industrial Development Agency, Floating Rate Note, 12/1/37 4.73%
2. Southeast Alabama Gas District, Floating Rate Note, 8/1/27 4.21
3. Jackson County Mississippi, Floating Rate Note, 6/1/23 3.99
4. Connecticut State Health, Floating Rate Note, 7/1/36 3.99
5. Harris County Texas Health, Floating Rate Note, 12/1/41 3.96
6. Mississippi Business, 0.16%, 12/1/30 3.57
7. Wake County North Carolina, Floating Rate Note, 4/1/21 3.57
8. Boston Massachusetts Water & Sewer Communities Revenue, Floating Rate Note, 11/1/24 3.57
9. Metropolitan Washington Airports Authority, Floating Rate Note, 10/1/39 3.52
10. County of King Washington, Floating Rate Note, 1/1/40 3.36
* This list excludes temporary cash and derivative instruments. Portfolio
holdings will vary for other periods. The holdings listed should not be
considered recommendations to buy or sell any securities listed.
Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10 7
Performance Update | 6/30/10
Share Prices
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net Asset Value per Share 6/30/10 12/31/09
- --------------------------------------------------------------------------------
Class A shares $ 1.00 $ 1.00
Class Y shares+ N/A $ 1.00
Distributions per Share
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Income Short-Term Long-Term
(1/1/10-6/30/10) Dividends Capital Gains Capital Gains
- --------------------------------------------------------------------------------
Class A shares $ 0.0001 $ - $ -
Class Y shares+ $ - $ - $ -
Yields**
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Per Share 7-Day Annualized 7-Day Effective*
- --------------------------------------------------------------------------------
Class A shares 0.01% 0.01%
Class Y shares+ N/A N/A
Expense Ratio
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(Per Prospectus dated May 1, 2010) Gross Net
- --------------------------------------------------------------------------------
Class A shares 0.75% 0.75%
Class Y shares+ N/A N/A
* Assumes daily compounding of dividends.
** Please contact Pioneer to obtain the Fund's current yield.
+ Effective March 24, 2010, Class Y shares of the Fund were liquidated.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance does not
guarantee future results. Investment returns will fluctuate, and there can be no
guarantee the Fund will be able to maintain a stable net asset value of $1.00
per share. An investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the Fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
Pioneer Tax Free Money Market was created through the reorganization of the
predecessor fund, Safeco Tax Free Money Market Fund, on December 10, 2004.
Performance does not reflect the deduction of taxes that a shareowner would pay
on Fund distributions or the redemption of Fund shares.
8 Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Tax Free Money Market Fund
Based on actual returns from January 1, 2010, through June 30, 2010.**
Share Class A Y
- ----------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00
Value on 1/1/10
- ----------------------------------------------------------------
Ending Account $ 1,000.00 $ 1,000.00
Value on 6/30/10**
- ----------------------------------------------------------------
Expenses Paid $ 1.34 $ 0.70
During Period*
- ----------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.27% and
0.31%, for Class A and Class Y shares, respectively, multiplied by the
average account value over the period, multiplied by 181/365 (83/365 for
Class Y shares) (to reflect the one-half year period).
** Through 3/24/10 for Class Y shares.
Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10 9
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Tax Free Money Market Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from January 1, 2010, through June 30, 2010.**
Share Class A Y
- ----------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00
Value on 1/1/10
- ----------------------------------------------------------------
Ending Account $ 1.023.46 $ 1,010.66
Value on 6/30/10**
- ----------------------------------------------------------------
Expenses Paid $ 1.35 $ 0.71
During Period*
- ----------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.27% and
0.31%, for Class A and Class Y shares, respectively, multiplied by the
average account value over the period, multiplied by 181/365 (83/365 for
Class Y shares) (to reflect the one-half year period).
** Through 3/24/10 for Class Y shares.
10 Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10
Schedule of Investments | 6/30/10 (unaudited)
- ----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount Rate (b) Ratings Value
- ----------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 93.8%
Government -- 6.3%
$ 1,700,000 0.16 AAA/Aaa Wake County North Carolina, Floating Rate
Note, 4/1/21 $ 1,700,000
1,485,000 0.31 AA+/NR Washington State Putters-Series, Floating Rate
Note, 7/1/13 1,485,000
-----------
$ 3,185,000
- ----------------------------------------------------------------------------------------------------
Municipal Airport -- 3.3%
1,675,000 0.18 AAA/Aaa Metropolitan Washington Airports Authority,
Floating Rate Note, 10/1/39 $ 1,675,000
- ----------------------------------------------------------------------------------------------------
Municipal Development -- 9.9%
1,900,000 0.13 AA/Aa1 Jackson County Mississippi, Floating Rate
Note, 6/1/23 $ 1,900,000
275,000 0.15 AAA/Aaa Loudoun County Virginia Industrial Development
Authority, Floating Rate Note, 2/15/38 275,000
1,700,000 AA/Aa1 Mississippi Business, 0.16%, 12/1/30 1,700,000
600,000 0.23 AA-/A2 Mobile Industrial Development, Floating Rate
Note, 4/1/15 600,000
500,000 0.18 AA/Aa1 Port Arthur Texas Naval District, Floating Rate
Note, 10/1/24 500,000
-----------
$ 4,975,000
- ----------------------------------------------------------------------------------------------------
Municipal Education -- 2.4%
800,000 0.40 AA-/NA Illinois Financial Authority Revenue, Floating
Rate Note, 9/1/41 $ 800,000
430,000 0.16 AAA/Aaa New Hampshire Health & Education, Floating
Rate Note, 1/1/28 430,000
-----------
$ 1,230,000
- ----------------------------------------------------------------------------------------------------
Municipal General -- 5.0%
1,000,000 NR/Aa1 Colorado Educational & Cultural Facilities
Authority, 0.4%, 2/1/39 $ 1,000,000
1,500,000 AA+/MIG1 State of Texas, 2.5%, 8/31/10 1,505,062
-----------
$ 2,505,062
- ----------------------------------------------------------------------------------------------------
Municipal Higher Education -- 23.4%
950,000 0.18 NR/NR Athens-Clarke County Georgia, Floating Rate
Note, 8/1/33 $ 950,000
200,000 0.22 AAA/Aaa Connecticut State Health, Floating Rate
Note, 7/1/37 200,000
1,900,000 0.08 AAA/Aaa Connecticut State Health, Floating Rate
Note, 7/1/36 1,900,000
495,000 0.18 AA/NR Kent County Delaware Student, Floating Rate
Note, 7/1/36 495,000
The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10 11
Schedule of Investments | 6/30/10 (unaudited) (continued)
- ------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount Rate (b) Ratings Value
- ------------------------------------------------------------------------------------------------------
Municipal Higher Education -- continued
$ 1,120,000 0.23 AA/Aa2 Maryland State Health & Higher Educational
Facilities Authority Revenue, Floating Rate
Note, 7/1/36 $ 1,120,000
400,000 0.08 AAA/Aaa Massachusetts State Health & Educational,
Floating Rate Note, 11/1/49 400,000
2,250,000 0.13 AAA/Aa1 Syracuse New York Industrial Development
Agency, Floating Rate Note, 12/1/37 2,250,000
760,000 0.24 AA/Aa2 University of Minnesota, Floating Rate
Note, 12/1/36 760,000
200,000 AAA/Aaa University of Texas, 1.1%, 7/1/37 200,000
530,000 AAA/Aaa University of Texas, 4.0%, 7/1/10 530,000
335,000 0.20 AAA/Aaa University of Texas, Floating Rate Note, 8/1/34 335,000
1,000,000 0.15 AA+/Aa1 Virginia College Building Authority, Floating Rate
Note, 2/1/26 1,000,000
615,000 NR/Aa1 Virginia College Building Authority,
0.8%, 3/1/39 615,000
1,000,000 0.24 AAA/Aaa Wisconsin State Health & Educational Facilities,
Floating Rate Note, 12/1/33 1,000,000
-----------
$11,755,000
- ------------------------------------------------------------------------------------------------------
Municipal Medical -- 26.3%
370,000 AAA/Aaa Connecticut State Health & Educational Facility
Authority, 0.18%, 7/1/36 $ 370,000
570,000 0.22 AAA/Aaa Connecticut State Health & Educational Facility
Authority, Floating Rate Note, 7/1/25 570,000
920,000 0.28 AA-/Aa1 Elmhurst Illinois, Floating Rate Note, 7/1/18 920,000
1,885,000 0.12 AA/Aaa Harris County Texas Health, Floating Rate
Note, 12/1/41 1,885,000
500,000 0.12 AA/Aaa Harris County Texas Health, Floating Rate
Note, 12/1/41 500,000
1,300,000 0.15 AAA/Aaa Loudoun County Virginia Industrial Development
Authority, Floating Rate Note, 2/15/38 1,300,000
600,000 0.18 AAA/Aaa Loudoun County Virginia Industrial Development
Authority, Floating Rate Note, 2/15/38 600,000
400,000 0.27 AA/Aa1 Minneapolis & St Paul, Floating Rate
Note, 11/15/34 400,000
950,000 NR/Aa1 Minneapolis & St Paul Housing &
Redevelopment Authority, 0.2%, 11/15/35 950,000
800,000 NR/Aa1 Minneapolis & St Paul Housing &
Redevelopment Authority, 0.2%, 11/15/35 800,000
700,000 0.32 AAA/Aaa New Hampshire Health & Education, Floating
Rate Note, 10/1/23 700,000
1,440,000 0.25 NR/Aa2 North Carolina Medical Care Communities,
Floating Rate Note, 6/1/15 1,440,000
The accompanying notes are an integral part of these financial statements.
12 Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10
- ----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount Rate (b) Ratings Value
- ----------------------------------------------------------------------------------------------------
Municipal Medical -- continued
$ 700,000 0.33 NR/Aa1 Nueces County Texas Health Facilities
Development Corporate Revenue, Floating Rate
Note, 7/1/15 $ 700,000
375,000 0.23 AA-/NR Oregon State Facilities Authority Revenue,
Floating Rate Note, 8/1/34 375,000
500,000 0.23 AA-/NR Oregon State Facilities Authority Revenue,
Floating Rate Note, 8/1/34 500,000
600,000 0.23 AAA/Aaa University Hospitals & Clinics Authority, Floating
Rate Note, 4/1/29 600,000
100,000 0.14 AA+/Aa2 Michigan University, Floating Rate
Note, 12/1/37 100,000
500,000 0.15 AA+/Aa1 Weber County Utah Hospital Revenue, Floating
Rate Note, 2/15/31 500,000
-----------
$13,210,000
- ----------------------------------------------------------------------------------------------------
Municipal School District -- 4.3%
1,140,000 0.13 AAA/Aaa Chicago Board of Education, Floating Rate
Note, 3/1/31 $ 1,140,000
1,000,000 NR/MIG1 Town of Weston Massachusetts, 1.5%, 2/4/11 1,007,265
-----------
$ 2,147,265
- ----------------------------------------------------------------------------------------------------
Municipal Utilities -- 5.9%
870,000 0.20 AA/Aa2 Gainsville Florida Utilities, Floating Rate
Note, 10/1/38 $ 870,000
2,100,000 1.40 NR/Aa2 Southeast Alabama Gas District, Floating Rate
Note, 8/1/27 2,100,000
-----------
$ 2,970,000
- ----------------------------------------------------------------------------------------------------
Municipal Water -- 7.0%
1,700,000 0.28 AA-/Aa2 Boston Massachusetts Water & Sewer
Communities Revenue, Floating Rate
Note, 11/1/24 $ 1,700,000
200,000 0.20 AAA/Aaa Columbia South Carolina Water, Floating Rate
Note, 2/1/38 200,000
1,600,000 0.20 AAA/Aa1 County of King Washington, Floating Rate
Note, 1/1/40 1,600,000
-----------
$ 3,500,000
- ----------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $47,152,327) $47,152,327
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10 13
Schedule of Investments | 6/30/10 (unaudited) (continued)
- -------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount Rate (b) Ratings Value
- -------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 5.4%
COMMERCIAL PAPER -- 0.9%
$ 445,000 A-1+/P-1 University of Michigan, 0.26%, 7/7/10 $ 445,000
-----------
$ 445,000
- -------------------------------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET MUTUAL
FUND -- 4.5%
2,255,000 BlackRock Liquidity Funds Temp Cash Portfolio $ 2,255,000
- -------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT MONEY MARKET
MUTUAL FUND $ 2,255,000
- -------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $2,700,000) $ 2,700,000
- -------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.2%
(Cost $49,852,327) (a) $49,852,327
- -------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 0.8% $ 424,963
- -------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.00% $50,264,963
=================================================================================================
NR Not Rated by either S&P or Moody's.
(a) At June 30, 2010, cost for federal income tax purposes was $49,852,327.
(b) Debt obligation with a variable interest rate. Rate shown is rate at period
end.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of June 30, 2010, in valuing
the Fund's assets:
- ----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
- ----------------------------------------------------------------------------------------
Municipal bonds $ -- $47,152,327 $-- $47,152,327
Commercial paper -- 445,000 -- 445,000
Money market mutual fund 2,255,000 -- -- 2,255,000
- ----------------------------------------------------------------------------------------
Total $2,255,000 $47,597,327 $-- $49,852,327
========================================================================================
The accompanying notes are an integral part of these financial statements.
14 Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10
Statement of Assets and Liabilities | 6/30/10 (unaudited)
ASSETS:
Investment in securities (cost $49,852,327) $ 49,852,327
Cash 179,222
Receivables --
Investment securities sold 180,000
Fund shares sold 9,676
Interest 84,264
Due from Pioneer Investment Management, Inc. 27,351
Other 28,250
- ----------------------------------------------------------------------
Total assets $ 50,361,090
- ----------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 5,694
Dividends 20,887
Due to affiliates 9,754
Auditing 17,015
Custodian 13,671
Printing 7,249
Insurance 10,494
Legal 7,166
Accrued expenses 4,197
- ----------------------------------------------------------------------
Total liabilities $ 96,127
- ----------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 50,301,789
Distributions in excess of net investment income (27,103)
Accumulated net realized loss on investments (9,723)
- ----------------------------------------------------------------------
Total net assets $ 50,264,963
======================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $50,264,963/50,264,998 shares) $ 1.00
======================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10 15
Statement of Operations (unaudited)
For the Six Months Ended 6/30/10
INVESTMENT INCOME:
Interest $ 75,141
- ------------------------------------------------------------------------------------
Total investment income $ 75,141
- ------------------------------------------------------------------------------------
EXPENSES:
Management fees $120,143
Transfer agent fees and expenses 7,532
Distribution fees 33,194
Shareholder communications expense 2,471
Administrative reimbursements 9,321
Registration fees 28,915
Professional fees 35,067
Printing expense 8,131
Fees and expenses of nonaffiliated trustees 6,462
Miscellaneous 1,528
- ------------------------------------------------------------------------------------
Total expenses $ 252,764
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (167,113)
- ------------------------------------------------------------------------------------
Net expenses $ 85,651
- ------------------------------------------------------------------------------------
Net investment loss $ (10,510)
- ------------------------------------------------------------------------------------
REALIZED GAIN ON INVESTMENTS
Net realized gain on investments $ 12,029
- ------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 1,519
====================================================================================
The accompanying notes are an integral part of these financial statements.
16 Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10
Statements of Changes in Net Assets
For the Six Months Ended 6/30/10 and the Year Ended 12/31/09, respectively
- ------------------------------------------------------------------------------------------------
Six Months Ended
6/30/10 Year Ended
(unaudited) 12/31/09
- ------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ (10,510) $ 41,347
Net realized gain on investments 12,029 5,212
- ------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 1,519 $ 46,559
- ------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.0001 and $0.0001 per share, respectively) $ (2,181) $ (7,169)
Class Y ($0.0001 and $0.0002 per share, respectively) (742) (17,763)
- ------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (2,923) $ (24,932)
- ------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 28,180,113 $157,719,458
Reinvestment of distributions 4,467 7,171
Cost of shares repurchased (66,291,892) (243,527,086)
- ------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ (38,107,312) $(85,800,457)
- ------------------------------------------------------------------------------------------------
Net decrease in net assets $ (38,108,716) $(85,778,830)
NET ASSETS:
Beginning of period 88,373,679 174,152,509
- ------------------------------------------------------------------------------------------------
End of period $ 50,264,963 $ 88,373,679
- ------------------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (27,103) $ (13,670)
- ------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10 17
Statements of Changes in Net Assets (continued)
- ----------------------------------------------------------------------------------------------------
'10 Shares '10 Amount '09 Shares '09 Amount
(unaudited) (unaudited)
- ----------------------------------------------------------------------------------------------------
Class A
Shares sold 19,879,920 $ 19,879,920 90,223,403 $ 90,223,402
Reinvestment of distributions 4,467 4,467 7,169 7,169
Less shares repurchased (13,758,169) (13,758,169) (116,430,862) (116,430,862)
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) 6,126,218 $ 6,126,218 (26,200,290) $(26,200,291)
====================================================================================================
Class Y*
Shares sold 8,300,193 $ 8,300,193 67,496,056 $ 67,496,056
Reinvestment of distributions -- -- 2 2
Less shares repurchased (52,533,723) (52,533,723) (127,096,224) (127,096,224)
- ----------------------------------------------------------------------------------------------------
Net decrease (44,233,530) $(44,233,530) (59,600,166) $(59,600,166)
====================================================================================================
* On March 24, 2010, Class Y was liquidated.
The accompanying notes are an integral part of these financial statements.
18 Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10
Financial Highlights
- ------------------------------------------------------------------------------------------------------
Six Months
Ended Year
6/30/10 Ended
(unaudited) 12/31/09
- ------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 1.0000 $ 1.0000
- ------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.0001 $ 0.0001
- ------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $(0.0001) $(0.0001)
Net realized and unrealized gain on investments $ -- $ --
- ------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.0000 $ 1.0000
======================================================================================================
Total return* 0.00% 0.01%
Ratio of net expenses to average net assets+ 0.27%** 0.41%
Ratio of net investment income (loss) to average net assets+ (0.02)%** 0.02%
Net assets, end of period (in thousands) $ 50,265 $ 44,138
Ratios with no waiver of fees and assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 0.87%** 0.80%
Net investment income (loss) (0.61)%** (0.37)%
Ratios with waiver of fees and assumption of expenses by the Adviser
and reduction for fees paid indirectly:
Net expenses 0.27%** 0.41%
Net investment income (loss) (0.02)%** 0.02%
======================================================================================================
- -----------------------------------------------------------------------------------------------------------------
Year Year Year
Ended Ended Ended
12/31/08 12/31/07 12/31/06
- -----------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 1.0000 $ 1.0000 $ 1.0000
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.0157 $(0.0299) $ 0.0270
- -----------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $(0.0157) $ 0.0299 $(0.0270)
Net realized and unrealized gain on investments $ 0.0000 $ 0.0003 $ --
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.0000 $ 1.0003 $ 1.0000
=================================================================================================================
Total return* 1.58% 3.03% 2.76%
Ratio of net expenses to average net assets+ 0.72% 0.65% 0.75%
Ratio of net investment income (loss) to average net assets+ 1.56% 2.96% 2.82%
Net assets, end of period (in thousands) $ 70,331 $ 71,568 $ 72,854
Ratios with no waiver of fees and assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 0.72% 0.65% 0.75%
Net investment income (loss) 1.56% 2.96% 2.82%
Ratios with waiver of fees and assumption of expenses by the Adviser
and reduction for fees paid indirectly:
Net expenses 0.72% 0.64% 0.75%
Net investment income (loss) 1.56% 2.96% 2.82%
=================================================================================================================
- -------------------------------------------------------------------------------------
Year
Ended
12/31/05
- -------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 1.0000
- -------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.0126
- -------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $(0.0126)
Net realized and unrealized gain on investments $ --
- -------------------------------------------------------------------------------------
Net asset value, end of period $ 1.0000
=====================================================================================
Total return* 1.28%
Ratio of net expenses to average net assets+ 0.78%
Ratio of net investment income (loss) to average net assets+ 1.75%
Net assets, end of period (in thousands) $ 31,232
Ratios with no waiver of fees and assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 0.81%
Net investment income (loss) 1.72%
Ratios with waiver of fees and assumption of expenses by the Adviser
and reduction for fees paid indirectly:
Net expenses 0.78%
Net investment income (loss) 1.75%
=====================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10 19
Notes to Financial Statements | 6/30/10 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Tax Free Money Market Fund (the Fund) is one of three series comprising
Pioneer Series Trust II, a Delaware statutory trust. The Fund is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is to provide current
income, exempt from federal income tax, as is consistent with the preservation
of capital.
The Fund offers one class of shares -- Class A shares. Class Y shares were first
publicly offered on September 23, 2005. Class Y shares were liquidated on March
24, 2010. Each class of shares represents an interest in the same portfolio of
investments of the Fund and have identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investments income and, therefore, the payment of
different dividends from net investment income earned by each class. The Amended
and Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per share voting, each share of a class
of the fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There was no
distribution plan for Class Y shares.
The Fund's prospectuses contain unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks. Investments in the Fund are subject to possible loss due to the
financial failure of underlying issuers and their inability to meet their debt
obligations.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
periods. Actual results could differ from those estimates.
20 Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Securities are valued at
amortized cost, which approximates fair market value. Mutual funds are valued
at net asset value. Investments purchased at a discount or premium are valued
by amortizing the difference between the original purchase price and maturity
value of the issue over the period to maturity. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years remain subject to examination by tax
authorities.
The tax character of current year distributions payable will be determined at
the end of the current taxable year. The tax character of distributions paid
during the year ended December 31, 2009 was as follows:
- ------------------------------------------
2009
- ------------------------------------------
Distributions paid from:
Ordinary income $ --
Tax exempt income 24,932
- ------------------------------------------
Total $24,932
==========================================
The following shows the components of distributable earnings on a federal
income tax basis at December 31, 2009:
- ---------------------------------------------
2009
- ---------------------------------------------
Distributable earnings:
Capital loss carryforward $ (21,752)
Dividend payable (13,670)
- ---------------------------------------------
Total $ (35,422)
=============================================
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Fund declares as daily dividends substantially all of its net investment
income. All dividends are paid on a monthly basis. Short-term capital gain
distributions, if any, may be declared with the daily dividends.
Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10 21
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning of
the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A shares of the Fund (see Note 4). Class Y shares do
not pay distribution fees. All expenses and fees paid to the transfer agent,
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), for its
services, are allocated among the classes of shares based on the number of
accounts in each class and the ratable allocation of related out-of-pocket
expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A and Class Y shares can reflect
different transfer agent and distribution expense rates.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly-owned indirect subsidy of
UniCredit, S.p.A. (UniCredit), manages the Fund's portfolio. Management fees
are calculated daily at the annual rate of 0.40% of the Fund's average daily
net assets up to $1 billion and 0.35% on assets over $1 billion. For the six
months ended June 30, 2010, the effective (excluding waivers and/or
reimbursement of expenses) management fee was equivalent to a rate of 0.30% of
average daily net assets.
PIM may limit the Fund's expenses or waive a portion of its management fee in
an effort to maintain a net asset value of $1.00 per share. From time to time,
PIM and its affiliates may limit the expenses of one or more classes for the
purpose of avoiding a negative yield or increasing its yield during the period
of the limitation. These expense limitation policies are voluntary and
temporary and may be revised or terminated by PIM at any time without notice.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to Affiliates" reflected on the Statement of Assets and Liabilities is
$595 in management fees, administrative cost and certain other reimbursements
payable to PIM at June 30, 2010.
22 Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the six months ended June 30, 2010, such out-of-pocket expenses by class of
shares were as follows:
- ---------------------------------------------
Shareholder Communications:
- ---------------------------------------------
Class A $2,471
- ---------------------------------------------
Total $2,471
=============================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $8,952 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at June 30, 2010.
4. Distribution Plan
The Fund has adopted a Distribution plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940, with respect to its Class A shares. Pursuant to
the Plan, the Fund pays Pioneer Funds Distributor, Inc. (PFD), 0.15% of the
average daily net assets attributable to Class A shares as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class A shares. Included in "Due to Affiliates" reflected on the
Statement of Assets and Liabilities is $207 in distribution fees payable to PFD
at June 30, 2010.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses, due to interest earned
on cash held by PIMSS. There were no such offsets for the six months ended June
30, 2010.
6. Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure and has
determined that there were no subsequent events requiring recognition or
disclosure in the financial statements.
Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10 23
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham Christopher J. Kelley, Secretary
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at http://www.sec.gov.
24 Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10
This page for your notes.
Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10 25
This page for your notes.
26 Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10
This page for your notes.
Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10 27
This page for your notes.
28 Pioneer Tax Free Money Market Fund | Semiannual Report | 6/30/10
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
- --------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
- --------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust II
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date August 27, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date August 27, 2010
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date August 27, 2010
* Print the name and title of each signing officer under his or her signature.