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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 811-21558
Pioneer Short Term Income Fund
(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: August 31
Date of reporting period: September 1, 2010 through August 31, 2011
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.
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Pioneer Short Term
Income Fund
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Annual Report | August 31, 2011
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Ticker Symbols:
Class A STABX
Class B STBBX
Class C PSHCX
Class Y PSHYX
[LOGO]PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 47
Notes to Financial Statements 55
Report of Independent Registered Public Accounting Firm 65
Trustees, Officers and Service Providers 67
Pioneer Short Term Income Fund | Annual Report | 8/31/11 1
President's Letter
Dear Shareowner,
The U.S. economy went through a soft patch in the first half of 2011, and the
second half of the year, so far, has been highlighted by the U.S. government's
battle over the debt ceiling and Standard & Poor's downgrade of the U.S.
Treasury's credit rating from the top rating of "AAA" for the first time in
history. The markets reacted quite negatively to the credit downgrade, and there
is concern about the strength of the global economy going forward.
Pioneer is cautiously optimistic that the U.S. economy will see moderate
economic growth over the balance of 2011, though at a slower pace than we had
expected earlier this year. While housing and employment remain weak, the
private sector shows signs of slow but steady improvement, led by higher capital
investment, solid exports, and improved consumption. At the same time, the risks
to growth remain substantial, including high unemployment, continued delays in
the housing sector's recovery, and the fiscal drag of U.S. federal and state
budget cuts.
The difficult recovery process has been accompanied by wide market swings. While
this is a challenging environment, our investment professionals continue to
focus on finding good opportunities to invest in both equity and bond markets
using the same disciplined approach Pioneer has used since 1928. Our approach is
to identify undervalued individual securities with the greatest potential for
success, carefully weighing risk against reward. Our teams of investment
professionals continually monitor and analyze the relative valuations of
different sectors and securities globally to help build portfolios that we
believe can help you achieve your investment goals.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. The strategy has generally performed well for many
investors. 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 Short Term Income Fund | Annual Report | 8/31/11
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
us.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 opinion 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 Short Term Income Fund | Annual Report | 8/31/11 3
Portfolio Management Discussion | 8/31/11
In the following interview, Richard Schlanger and Charles Melchreit, portfolio
managers of Pioneer Short Term Income Fund, discuss the factors that influenced
the Fund's performance over the 12-month period ended August 31, 2011. Mr.
Schlanger, vice president and portfolio manager, and Mr. Melchreit, vice
president and portfolio manager, are responsible for the day-to-day management
of the Fund.
Q How would you describe the market environment for fixed-income investors
over the 12-month period ended August 31, 2011?
A To say the least, the period was an eventful one for the financial
markets. Investors responded positively to the November 2010 mid-term
elections, which resulted in a divided Congress. The elections were
followed by a budget agreement between the Obama administration and House
Republicans that preserved the Bush-era tax rates. Less encouraging to
global growth prospects were continued concerns over European sovereign
debt and a flare-up of political unrest in the Middle East, which drove
the price of oil higher. Despite the unsettled geopolitical backdrop, the
overall trend for credit-sensitive sectors remained generally positive
well into first quarter of 2011 as investors continued to seek incremental
yield in a low-rate environment.
March 2011 saw a devastating earthquake and tsunami hit Japan, with
resulting disruptions to the global manufacturing supply chain. That event
seemed to mark a turning point for the worse in consumer and investor
sentiment. As the 12-month period progressed, there was increasing concern
over the possibility of a double-dip recession in the U.S. Europe,
meanwhile, struggled to stave off a default by Greece on its sovereign
debt and, more broadly, to salvage the euro as a viable currency. Adding
to the environment of uncertainty, the summer of 2011 saw an intense
debate in Congress hold up a deal to increase the U.S. debt ceiling,
briefly raising the possibility of a default on U.S. government debt.
While the standoff was eventually resolved short of default, within days
Standard & Poor's downgraded the credit rating of the U.S. for the first
time in history, citing "political brinksmanship" and a lack of
predictability with respect to the government's management of the nation's
finances. In a counterintuitive twist, the markets took that development
as in keeping with the general decline in economic conditions, reinforcing
a flight to safety that benefited Treasury prices and drove Treasury
yields to extraordinary lows.
Given moderate inflation and continued concerns over housing and
employment, the Federal Reserve Board (the Fed) maintained the target for
4 Pioneer Short Term Income Fund | Annual Report | 8/31/11
its benchmark short-term interest rate at between 0% and 0.25% over the
course of the 12 months ended August 31, 2011. While short-term rates were
anchored at essentially zero by the Fed, rates farther out on the yield
curve were quite volatile. To illustrate, the five-year Treasury began the
12-month period (September 1, 2010) at 1.33%, reached as high as 2.40% in
February 2011, and then fell to as low as 0.81% late in the period. For
the full 12 months ended August 31, 2011, interest rate changes were quite
modest, as the two-year Treasury yield fell by 27 basis points (bps) from
0.47% to 0.20%, while the five-year Treasury yield fell by 37 bps, from
1.33% to 0.96%. (A basis point is equal to 1/100 of a percentage point, or
0.01%.)
Q How did the Fund perform in that environment over the 12 months ended
August 31, 2011?
A The Fund's Class A shares returned 1.69% at net asset value over the 12
months ended August 31, 2011, while the Fund's benchmark, the Barclays
Capital One- to Three-Year Government/Credit Index (the Barclays Index),
returned 1.74%. Over the same period, the average return of the 245 mutual
funds in Lipper's Short Investment-Grade Debt Funds category was 1.68%.
Q Can you review your primary investment strategies for the Fund during the
12 months ended August 31, 2011, and the impact the strategies had on the
Fund's performance?
A During the 12-month period we continued to follow a disciplined investment
process for the Fund, one that is based on identifying relative value
among fixed-income sectors and carefully evaluating the risk/reward
profile of individual issues. In that vein, the Fund continued to have
relatively light exposure to U.S. Treasury issues during the period,
reflecting our view that Treasuries have not been valued attractively when
compared with credit-sensitive sectors given their very low, or even
negative real yields. The Fund's Treasury positioning was a constraint on
returns relative to the Barclays Index during the period as Treasury
yields continued to trend down from already low levels and investors were
tightly focused on safety for much of the period.
The largest contributing factor to benchmark-relative returns during the
12-month period was the Fund's substantial weighting - as much as half or
more of the Fund's assets - to sectors not included in the Barclays Index
benchmark, specifically, residential and commercial mortgage-backed
securities as well as asset-backed securities. In particular, the Fund's
high-quality commercial mortgage holdings performed well as they continued
to rebound after being beaten down in the aftermath of the financial
crisis. Within retail mortgages, the Fund's position in collateralized
mortgage obligations structured with floating rates acted as a constraint
on benchmark-relative returns over the full 12-month period ended August
31, 2011.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 5
We held the position in the Fund in an attempt to protect against future
increases in interest rate levels given their recent historic lows. Rates
continued to decline, however, and then the Fed announced its intention to
keep short interest rates near zero through 2013, leading to a reduction
in investor interest in floating-rate securities.
The Fund's second-largest exposure during the period was to corporate
issues, which outperformed Treasuries over the full 12 months ended August
31, 2011. Within corporates, the Fund's overall emphasis on lower-rated
issues and our focus on non-bank issuers within the financials sector
contributed to performance.
Early in the period, we took advantage of a sharp increase in negative
investor sentiment surrounding the municipal bond market to begin adding
modest exposure to tax-free municipals in the Fund's portfolio. The fourth
quarter of 2010 saw one of the worst periods for municipal bond
performance in history, resulting in municipal yields that significantly
exceeded Treasury yields, even before taking into account the effect of
taxes. The downward spike in investor sentiment was driven by fears of
widespread municipal defaults given a difficult budgetary climate for many
states as well as the prospect of reduced aid to municipalities coming
from Washington following the November Congressional elections. The
nationally televised prediction by one high-profile analyst in December
2010 of massive municipal defaults in the coming year (2011) also helped
fuel the negative investor sentiment about municipals.
The Fund eventually benefited from its municipal holdings throughout 2011,
however, as municipal supply tailed off and the overblown fears of default
eased.
The Fund's overall duration (a standard measure of a portfolio's price
sensitivity to changes in market interest rates) at the end of August 2011
was 1.2 years, while the benchmark Barclays Index's duration was 1.86
years. The Fund maintained a below-market overall duration and
corresponding interest rate sensitivity throughout the 12-month period
ended August 31, 2011. Having a below-market overall duration was a modest
constraint on the Fund's benchmark-relative returns as rates fell during
the full 12-month period.
Q What is your assessment of the current climate for fixed-income investing?
A The same economic headwinds remain, most notably weak employment growth
and a faltering domestic housing market. In addition, the potential
remains for European debt issues to impact the global economy. We expect
the Fed to do all it can to promote economic activity, and especially jobs
6 Pioneer Short Term Income Fund | Annual Report | 8/31/11
growth, without raising inflation expectations to destructive levels.
However, the effectiveness of the Fed's remaining tools is by no means
assured. Moreover, the prospect that fiscal policy could take up the reins
in the effort to promote more robust economic conditions is not
encouraging given the current political backdrop.
With the Fed on hold, short-term rates likely will be anchored for the
foreseeable future. As a short-term fund, we typically focus the
portfolio's holdings on securities with maturities ranging from overnight
commercial paper to the five-year range. With the yield curve in the zero
to five-year range still relatively steep, we expect to maintain the
Fund's somewhat barbelled positioning, with substantial exposure to
five-year issues balanced by a position in short-term, floating-rate
paper. That posture allows the Fund to garner the incremental income
available out on the yield curve, while maintaining an overall duration
and interest rate sensitivity consistent with the Fund's guidelines.
With Treasury yields at exceptionally low levels, we expect to continue to
look for investment opportunities in other, more credit-sensitive sectors.
That said, given the uncertain prospects for the global economy, as we
evaluate credits we expect to maintain a high-quality bias in the Fund's
portfolio. While we will continue to monitor macroeconomic factors that
have the potential to affect the markets, we will remain principally
focused on adding value to the Fund through individual security selection.
As always, we will seek to have the Fund provide a high level of current
income, while reducing the impact of interest rate changes on the Fund's
share price.
Please refer to the Schedule of Investments on pages 17-46 for a full listing of
Fund securities.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 7
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 the issuers of the underlying
securities and their inability to meet their debt obligations. Prepayment risk
is the chance that mortgage-backed bonds will be paid off early if falling
interest rates prompt homeowners to refinance their mortgages. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation associated with falling interest rates. The securities issued by
U.S. government sponsored entities (i.e. Fannie Mae, Freddie Mac) are neither
guaranteed nor issued by the U.S. government. The portfolio may invest in
mortgage-backed securities, which during times of fluctuating interest rates may
increase or decrease more than other fixed-income securities. Mortgage-backed
securities are also subject to pre- payments. 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.
These risks may increase share price volatility.
Past performance is not a 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 opinion as of the date of this report. These statements should not
be relied upon for any other purposes.
8 Pioneer Short Term Income Fund | Annual Report | 8/31/11
Portfolio Summary | 8/31/11
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
U.S. Government Securities 26.5%
U.S. Corporate Bonds 22.3%
Collateralized Mortgage Obligations 21.8%
Asset Backed Securities 12.8%
Temporary Cash Investments 11.9%
Municipal Bonds 2.9%
Senior Floating Rate Loans 1.7%
Foreign Government Bonds 0.1%
Portfolio Quality
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on S&P ratings)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
AAA 52.9%
BBB 16.6%
A 12.7%
AA 8.1%
BB 5.1%
B & Lower 4.6%
Bond ratings are ordered highest to lowest in portfolio. Based on Standard &
Poor's measures, AAA (highest possible rating) through BBB are considered
investment grade; BB or lower ratings are considered non-investment grade. Cash
equivalents and some bonds may not be rated.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. U.S. Treasury Notes, 0.5%, 5/31/13 5.33%
2. U.S. Treasury Notes, 2.5%, 4/30/15 3.72
3. U.S. Treasury Notes, 1.5%, 7/15/12 1.85
4. U.S. Treasury Notes, 0.5%, 11/30/12 1.84
5. Fannie Mae, Floating Rate Note, 10/25/40 1.73
6. U.S. Treasury Notes, 1.375%, 9/15/12 1.11
7. Indiana State Development Finance, 5.75%, 10/1/11 1.02
8. Yale University, 2.9%, 10/15/14 0.94
9. Fannie Mae, 5.0%, 5/15/29 0.94
10. Government National Mortgage Association, 2.351%, 6/16/50 0.90
* 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.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 9
Prices and Distributions | 8/31/11
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/11 8/31/10
--------------------------------------------------------------------------------
A $ 9.64 $ 9.75
--------------------------------------------------------------------------------
B $ 9.63 $ 9.75
--------------------------------------------------------------------------------
C $ 9.62 $ 9.73
--------------------------------------------------------------------------------
Y $ 9.63 $ 9.74
--------------------------------------------------------------------------------
Distributions per Share: 9/1/10-8/31/11
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ 0.2733 $ -- $ --
--------------------------------------------------------------------------------
B $ 0.1859 $ -- $ --
--------------------------------------------------------------------------------
C $ 0.2002 $ -- $ --
--------------------------------------------------------------------------------
Y $ 0.3094 $ -- $ --
--------------------------------------------------------------------------------
The Barclays Capital One- to Three-Year Government/Credit Index measures the
performance of the short-term (1 to 3 years) government and investment-grade
corporate bond markets. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 11-14.
10 Pioneer Short Term Income Fund | Annual Report | 8/31/11
Performance Update | 8/31/11 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Short Term Income Fund at public offering price,
compared to that of the Barclays Capital One- to Three-Year Government/Credit
Index.
Average Annual Total Returns
(As of August 31, 2011)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
Life-of-Class
(7/8/04) 3.33% 2.96%
5 Years 3.91 3.38
1 Year 1.69 -0.86
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.06% 0.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Barclay Capital
Pioneer Short Term One- to Three-Year
Income Fund Government/Credit Index
7/04 $ 9,750 $10,000
8/04 $ 9,805 $10,078
8/05 $ 9,933 $10,218
8/06 $10,170 $10,534
8/07 $10,645 $11,104
8/08 $10,877 $11,754
8/09 $11,301 $12,361
8/10 $12,114 $12,781
8/11 $12,318 $13,003
Call 1-800-225-6292 or visit us.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.
POP returns reflect deduction of maximum 2.50% sales charge. NAV 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.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 for Class A shares. There can be no assurance that Pioneer
will extend the expense limitations 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 Short Term Income Fund | Annual Report | 8/31/11 11
Performance Update | 8/31/11 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Short Term Income Fund, compared to that of the
Barclays Capital One- to Three-Year Government/Credit Index.
Average Annual Total Returns
(As of August 31, 2011)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(7/8/04) 2.42% 2.42%
5 Years 2.96 2.96
1 Year 0.68 -1.30
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.88% 1.80%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Barclay Capital
Pioneer Short Term One- to Three-Year
Income Fund Government/Credit Index
7/04 $10,000 $10,000
8/04 $10,052 $10,078
8/05 $10,108 $10,218
8/06 $10,265 $10,534
8/07 $10,639 $11,104
8/08 $10,762 $11,754
8/09 $11,092 $12,361
8/10 $11,796 $12,781
8/11 $11,875 $13,003
Call 1-800-225-6292 or visit us.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 Redeemed" results reflect the deduction of the maximum applicable contingent
deferred sales charge (CDSC). The maximum CDSC is 2% and declines over three
years.
"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.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 for Class B shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
12 Pioneer Short Term Income Fund | Annual Report | 8/31/11
Performance Update | 8/31/11 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Short Term Income Fund, compared to that of the
Barclays Capital One- to Three-Year Government/Credit Index.
Average Annual Total Returns
(As of August 31, 2011)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(7/8/04) 2.49% 2.49%
5 Years 3.07 3.07
1 Year 0.93 0.93
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.70% 1.70%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Barclay Capital
Pioneer Short Term One- to Three-Year
Income Fund Government/Credit Index
7/04 $10,000 $10,000
8/04 $10,052 $10,078
8/05 $10,111 $10,218
8/06 $10,260 $10,534
8/07 $10,648 $11,104
8/08 $10,781 $11,754
8/09 $11,121 $12,361
8/10 $11,823 $12,781
8/11 $11,933 $13,003
Call 1-800-225-6292 or visit us.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.
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 Short Term Income Fund | Annual Report | 8/31/11 13
Performance Update | 8/31/11 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer Short Term Income Fund, compared to that of the
Barclays Capital One- to Three-Year Government/Credit Index.
Average Annual Total Returns
(As of August 31, 2011)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(7/8/04) 3.68% 3.68%
5 Years 4.23 4.23
1 Year 2.06 2.06
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.57% 0.57%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $5 Million Investment
Barclay Capital
Pioneer Short Term One- to Three-Year
Income Fund Government/Credit Index
7/04 $5,000,000 $5,000,000
8/04 $5,031,883 $5,039,143
8/05 $5,125,561 $5,109,065
8/06 $5,265,685 $5,266,787
8/07 $5,527,035 $5,552,160
8/08 $5,662,589 $5,876,896
8/09 $5,895,518 $6,180,639
8/10 $6,345,978 $6,390,515
8/11 $6,477,120 $6,501,494
Call 1-800-225-6292 or visit us.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 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.
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.
14 Pioneer Short Term Income Fund | Annual Report | 8/31/11
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 Short Term Income Fund
Based on actual returns from March 1, 2011, through August 31, 2011.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 3/1/11
--------------------------------------------------------------------------------
Ending Account Value $ 1,004.44 $ 1,000.00 $ 1,000.69 $ 1,006.31
(after expenses)
on 8/31/11
--------------------------------------------------------------------------------
Expenses Paid $ 4.55 $ 9.07 $ 8.42 $ 2.73
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.80%,
1.67% and 0.54% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
Pioneer Short Term Income Fund | Annual Report | 8/31/11 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 Short Term Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2011, through August 31, 2011.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 3/1/11
--------------------------------------------------------------------------------
Ending Account Value $ 1,020.67 $ 1,016.13 $ 1,016.79 $ 1,022.48
(after expenses)
on 8/31/11
--------------------------------------------------------------------------------
Expenses Paid $ 4.58 $ 9.15 $ 8.49 $ 2.75
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.80%,
1.67% and 0.54% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
16 Pioneer Short Term Income Fund | Annual Report | 8/31/11
Schedule of Investments | 8/31/11
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 15.4%
MATERIALS -- 2.5%
Aluminum -- 0.3%
597,905 0.89 AAA/Aaa Bayview Financial Acquisition, Floating
Rate Note, 5/28/44 $ 547,890
259,546 0.62 AAA/Aaa Bayview Financial Acquisition, Floating
Rate Note, 8/28/44 248,343
------------
$ 796,233
--------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.1%
491,530 NR/A1 Bombardier Capital Mortgage
Securitization Corp., 6.65%, 4/15/28 $ 518,025
176,906 5.23 BBB+/Aa3 Countryplace Manufactured Housing
Contract Trust, Floating Rate Note,
7/15/37 177,337
283,311 NR/Ba1 Greenpoint Manufactured Housing, 7.59%,
11/15/28 289,110
1,854,760 AA+/Aaa Lehman ABS Manufactured Housing
Contract Trust, 0.648%, 6/15/33 1,764,143
------------
$ 2,748,615
--------------------------------------------------------------------------------------------------------------
Precious Metals & Minerals -- 0.2%
550,000 BBB+/Ba3 Madison Avenue Manufactured Housing,
2.4626%, 3/25/32 $ 537,865
--------------------------------------------------------------------------------------------------------------
Steel -- 0.9%
328,546 0.80 B-/Caa2 Countrywide Asset Backed Certificates,
Floating Rate Note, 4/25/32 $ 164,230
272,228 0.63 AAA/Baa2 Countrywide Asset-Backed Certificates,
Floating Rate Note, 1/25/36 256,014
369,379 0.31 A/Ba1 Countrywide Asset-Backed Certificates,
Floating Rate Note, 7/25/37 359,153
443,738 5.07 AAA/B2 Countrywide Asset-Backed Certificates,
Floating Rate Note, 12/25/35 400,595
195,573 5.68 B+/Ba1 CWL 2006-15 A2, Floating Rate Note,
10/25/46 188,737
1,050,000 AAA/Aa2 First NLC Trust, 0.74719%, 9/25/35 970,347
116,436 B/A2 IXIS Real Estate Capital Trust, 0.5526%,
2/25/36 97,795
------------
$ 2,436,871
------------
Total Materials $ 6,519,584
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 17
Schedule of Investments | 8/31/11 (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 0.4%
Food Retail -- 0.4%
715,000 BBB-/Baa3 Dominos Pizza Master Issuer LLC, 5.261%,
4/25/37 $ 720,363
200,000 BB/Aaa Dominos Pizza Master Issuer LLC, 7.629%,
4/25/37 204,000
------------
Total Food & Drug Retailing $ 924,363
--------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 1.1%
Auto Parts & Equipment -- 0.4%
1,000,000 AAA/NR Ford Auto Securitization, 2.431%,
11/17/14 $ 1,034,168
--------------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.7%
567,000 BBB/Aa2 AmeriCredit Automobile Receivables Trust,
6.24%, 6/8/16 $ 612,848
100,000 BBB/Baa1 AmeriCredit Automobile Receivables Trust,
4.04%, 7/10/17 101,641
138,975 A/NR Santander Drive Auto Receivables Trust,
1.89%, 5/15/13 138,175
285,000 NR/Aa1 Santander Drive Auto Receivables Trust,
2.44%, 1/15/16 286,265
558,004 BBB/NR Santander Drive Auto Receivables Trust,
3.35%, 6/15/17 556,330
------------
$ 1,695,259
------------
Total Automobiles & Components $ 2,729,427
--------------------------------------------------------------------------------------------------------------
BANKS -- 4.3%
Diversified Banks -- 0.1%
173,454 0.35 AAA/Aa1 Wells Fargo Home Equity Trust, Floating
Rate Note, 4/25/37 $ 165,966
179,977 AAA/NR Wells Fargo Home Equity Trust, 0.6415%,
12/25/35 148,634
------------
$ 314,600
--------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 4.2%
65,741 0.44 A+/Aa1 ACE 2005-HE7 A2C, Floating Rate Note,
11/25/35 $ 64,763
180,285 0.46 AAA/Aaa Ameriquest Mortgage Securities, Inc.,
Floating Rate Note, 8/25/35 168,820
485,330 AAA/Aa1 Ameriquest Mortgage Securities, Inc.,
0.5625%, 11/25/34 433,217
491,819 AA/Aa2 Bear Stearns Asset Backed Securities
Trust, 0.8271%, 6/25/35 443,557
192,301 0.37 BB+/Baa1 Bear Stearns Asset Backed Securities
Trust, Floating Rate Note, 12/25/36 188,362
300,000 BB-/A2 Bear Stearns Asset Backed Securities
Trust, 1.244%, 10/25/34 201,331
The accompanying notes are an integral part of these financial statements.
18 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
440,889 4.67 AAA/A1 Bear Stearns Asset Backed Securities,
Inc., Floating Rate Note, 6/25/43 $ 389,324
140,261 0.31 AAA/Ba1 Carrington Mortgage Loan Trust, Floating
Rate Note, 1/25/37 138,194
127,788 0.49 AAA/Aa1 Carrington Mortgage Loan Trust, Floating
Rate Note, 12/25/35 126,117
1,517,081 0.60 AA+/Aa1 Citigroup Mortgage Loan Trust, Inc.,
Floating Rate Note, 7/25/35 1,441,850
581,449 AAA/Aa3 Citigroup Mortgage Loan Trust, Inc.,
0.6615%, 8/25/35 530,657
537,344 BBB/Baa3 Countrywide Home Equity Loan Trust, Inc.,
0.5371%, 11/15/28 506,274
68,041 5.56 AAA/A2 CRMSI 2006-2 A3, Floating Rate Note,
9/25/36 67,915
577,251 0.36 B-/Ba3 First Franklin Mortgage Loan Asset,
Floating Rate Note, 8/25/36 572,328
118,779 AA+/Baa2 GSAA Trust, 0.47625%, 6/25/35 111,965
81,451 AAA/A1 GSAA Trust, 4.316%, 11/25/34 81,463
87,923 0.66 A/A2 GSAMP Trust, Floating Rate Note,
3/25/35 82,738
33,552 0.00 AAA/Aaa GSAMP Trust, Floating Rate Note,
8/25/36 32,932
631,199 A+/B1 HEMT 2004-6 M2, 5.321%, 4/25/35 422,584
300,668 AAA/Aaa LEAF II Receivables, 3.45%, 11/20/12 299,646
462,210 CCC+/Caa3 Local Insight Media Finance LLC, 5.88%,
10/23/37 203,372
154,827 AAA/B1 Morgan Stanley Home Equity Loan Trust,
0.5326%, 9/25/35 121,213
294,714 0.45 AAA/Aa3 Option One Mortgage Loan Trust, Floating
Rate Note, 11/25/35 268,107
279,406 0.32 A/Aa3 Option One Mortgage Loan Trust, Floating
Rate Note, 2/25/38 270,545
60,682 AAA/Baa3 Option One Mortgage Trust, 0.254%,
1/25/37 59,915
23,538 0.71 AA+/Aaa Ownit Mortgage Loan Asset Backed,
Floating Rate Note, 3/25/36 23,410
257,290 4.25 AA/Aa2 PNMAC 2010-NPL1 A, Floating Rate Note,
5/25/50 252,658
761,886 AA/Baa2 Popular ABS Mortgage Pass-Through Trust,
5.181%, 9/25/34 516,739
249,924 0.58 AAA/Aaa RAAC Series, Floating Rate Note, 6/25/35 242,096
240,000 0.67 AA+/A3 RASC 2005-KS7 M1, Floating Rate Note,
8/25/35 225,778
116,968 1.21 BBB/Ba2 SAST 2002-1 M1, Floating Rate Note,
1/25/32 70,060
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 19
Schedule of Investments | 8/31/11 (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
7,590 A-/A3 Structured Asset Securities Corp., 4.67%,
3/25/35 $ 7,590
249,872 0.34 AA/Aaa Structured Asset Securities Corp., Floating
Rate Note, 1/25/37 244,787
1,092,883 4.44 B+/Baa2 Structured Asset Securities Corp., Floating
Rate Note, 2/25/35 1,078,205
163,858 BBB/Aa1 Structured Asset Securities Corp.,
0.2626%, 2/25/37 157,623
273,293 0.78 AA/A3 SVHE 2005-3 M2, Floating Rate Note,
6/25/35 258,375
477,888 AAA/A2 Wachovia Mortgage Loan Trust, 0.5826%,
10/25/35 428,187
------------
$ 10,732,697
------------
Total Banks $ 11,047,297
--------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.6%
Asset Management & Custody Banks -- 0.2%
539,724 0.65 B/B3 SPSAC 1998-1 A1, Floating Rate Note,
3/25/28 $ 278,228
--------------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.6%
200,000 NR/A1 Navistar Financial Corp., Owner Trust,
4.08%, 3/19/18 $ 202,190
229,180 AA/Baa1 RFMS2 2003-HI1 M1, 5.27%, 4/25/28 212,151
380,000 0.63 AAA/Aaa SLMA 2004-10 A6B, Floating Rate Note,
4/27/26 379,772
771,486 0.49 AA+/A3 Specialty Underwriting & Residential,
Floating Rate Note, 9/25/36 754,418
------------
$ 1,548,531
--------------------------------------------------------------------------------------------------------------
Diversified Financial Services -- 1.2%
145,676 0.63 AA/Aa2 Asset Backed Securities Corp., Floating
Rate Note, 4/25/35 $ 140,037
350,000 A/NR DT Auto Owner Trust, 3.46%, 1/15/14 352,349
325,000 BBB/NR DT Auto Owner Trust, 4.89%, 1/17/17 329,245
81,375 AA/NR DT Auto Owner Trust, 5.92%, 10/15/15 83,667
363,000 AAA/Aaa Home Equity Asset Trust, 0.75719%,
11/25/35 343,719
216,277 AA/A1 Home Equity Asset Trust, 0.76875%,
8/25/35 207,139
290,906 0.77 AAA/A1 Home Equity Asset Trust, Floating Rate
Note, 7/25/36 275,930
116,651 0.33 B-/Ba1 JPMorgan Mortgage Acquisition, Floating
Rate Note, 5/25/24 116,558
111,804 AAA/Aaa Nelnet Student Loan Trust, 0.318%,
12/27/16 111,778
The accompanying notes are an integral part of these financial statements.
20 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Diversified Financial Services -- (continued)
70,073 AAA/A2 Sierra Receivables Funding Co., 5.84%,
5/20/18 $ 71,603
663,406 A+/Baa3 Sierra Receivables Funding Co.,
1.18625%, 9/20/19 652,683
459,195 AAA/Aaa SVO VOI Mortgage Corp., 5.25%, 2/20/21 473,045
------------
$ 3,157,753
--------------------------------------------------------------------------------------------------------------
Specialized Finance -- 2.6%
706,777 0.59 AAA/Aaa Aegis Asset Backed Securities, Floating
Rate Note, 9/25/34 $ 635,745
529,844 0.53 AA+/Baa3 Aegis Asset Backed Securities, Floating
Rate Note, 3/25/12 447,064
781,396 AAA/Aaa Conseco Finance, Inc., 7.05%, 4/15/32 798,382
155,138 6.64 AAA/Aaa Conseco Finance, Inc., Floating Rate Note,
11/15/32 156,628
451,255 5.32 NR/Baa1 Irwin Home Equity Corp., Floating Rate
Note, 6/25/35 425,027
36,961 AA+/Aa1 Master Asset Backed Security Trust,
0.67375%, 5/25/35 35,813
162,497 0.61 AAA/Aaa New Century Home Equity Loan Trust,
Floating Rate Note, 3/25/35 135,334
2,247,531 AAA/Aa1 New Century Home Equity Loan Trust,
0.5126%, 6/25/35 2,171,970
2,261,558 0.53 AAA/Aa2 New Century Home Equity Loan Trust,
Floating Rate Note, 9/25/35 2,148,473
------------
$ 6,954,436
------------
Total Diversified Financials $ 11,938,948
--------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.2%
Mortgage Real Estate Investment Trust -- 0.2%
539,249 NR/NR Real Estate Asset Trust, 5.44%, 6/25/31 $ 536,499
------------
Total Real Estate $ 536,499
--------------------------------------------------------------------------------------------------------------
GOVERNMENT -- 2.3%
2,498,030 AAA/Aaa Fannie Mae, 5.0%, 5/15/29 $ 2,557,360
219,080 AAA/Aaa Freddie Mac, 4.5%, 8/15/17 225,518
546,583 AAA/Aaa Freddie Mac, 5.5%, 10/15/35 580,342
183,255 NR/Aa1 Freddie Mac, 3.25%, 6/15/17 186,373
1,206,132 NR/Aa1 Freddie Mac, 4.0%, 6/15/22 1,255,235
59,842 AAA/Aa1 Freddie Mac, 5.0%, 8/15/31 61,132
917,381 NR/Aa1 Freddie Mac, 5.0%, 11/15/28 931,223
72,842 NR/NR Freddie Mac, 5.5%, 8/15/29 73,545
25,270 AAA/Aaa Freddie Mac, 4.0%, 12/15/12 25,389
3,795 AAA/Aaa Freddie Mac, 5.5%, 6/15/32 3,794
3,795 AAA/Aaa Freddie Mac, 6.0%, 6/15/32 3,793
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 21
Schedule of Investments | 8/31/11 (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
GOVERNMENT -- (continued)
11,109 AAA/Aaa Freddie Mac, 6.1%, 9/15/18 $ 11,622
------------
$ 5,915,326
------------
Total Government $ 5,915,326
--------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $41,173,653) $ 39,611,444
--------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 25.9%
BANKS -- 16.5%
Thrifts & Mortgage Finance -- 16.5%
534,157 0.71 NR/A1 Bank of America Alternative Loan Trust,
Floating Rate Note, 12/25/33 $ 505,959
405,451 NR/B2 Bank of America Alternative Loan Trust,
5.25%, 5/25/19 409,951
342,433 CCC/B2 Bank of America Fund, 0.2658%,
5/20/47 323,129
278,262 B-/B1 Bank of America Fund, 5.75%, 10/25/35 277,984
259,529 AAA/Aaa Bayview Commercial Asset Trust,
2.25625%, 4/25/38 254,902
248,683 AAA/Aaa Bayview Commercial Asset Trust,
2.50625%, 7/25/38 246,385
3,518,059 AAA/A1 Bayview Commercial Asset Trust,
2.65868%, 7/25/37 284,963
2,422,795 AA/A3 Bayview Commercial Asset Trust,
2.83149%, 9/25/37 213,206
130,649 3.31 AAA/A2 Bear Stearns Adjustable Rate Mortgage
Trust, Floating Rate Note, 11/25/34 120,345
854,019 AAA/Aaa Cendant Mortgage Corp., 6.25%,
3/25/32 851,287
150,000 3.76 NR/Aaa CFCRE Commercial Mortgage Trust,
Floating Rate Note, 4/15/44 153,189
118,981 5.73 AAA/Aaa Citigroup Commercial Mortgage, Floating
Rate Note, 3/15/49 118,832
416,643 AAA/Aa2 CMLTI 2003-UP3 A1, 7.0%, 9/25/33 434,100
268,622 3.07 CCC/NR CMLTI 2005-1 2A1A, Floating Rate Note,
4/25/35 165,661
384,802 CC/NR CMLTI 2005-9 2SX2, 5.5%, 11/25/35 56,702
78,634 1.18 NR/WR CMOT 44 F, Floating Rate Note, 7/1/18 79,498
100,000 NR/Baa1 Commercial Mortgage Pass-Through
Certificates, 5.605%, 8/9/16 96,802
733,954 AAA/Aaa Commercial Mortgage Pass-Through
Certificates, 0.31875%, 12/15/20 714,833
300,000 A+/A1 Commercial Mortgage Pass-Through
Certificates, 0.39875%, 6/15/22 273,369
The accompanying notes are an integral part of these financial statements.
22 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
446,294 0.71 AAA/NR Countrywide Alternative Loan Trust,
Floating Rate Note, 8/25/18 $ 424,075
439,915 0.71 AAA/Ba1 Countrywide Alternative Loan Trust,
Floating Rate Note, 9/25/34 418,952
716,041 AAA/B2 Countrywide Alternative Loan Trust, 4.75%,
10/25/33 720,213
1,587,037 BB/NA Countrywide Home Loans, Inc., 5.5%,
10/25/32 1,646,217
568,733 1.51 AAA/NR Deutsche Mortgage Securities, Inc.,
Floating Rate Note, 10/25/47 568,200
171,601 AAA/Aa3 Downey Savings & Loan, 0.83625%,
7/19/44 124,148
23,000,000 BBB/Baa2 Extended Stay America Trust, 1.165%,
1/5/16 351,049
221,941 CCC/NR First Horizon Asset Securities, Inc., 6.0%,
5/25/36 213,991
86,953 2.75 AAA/Aa1 First Horizon Mortgage Pass-Through Trust,
Floating Rate Note, 2/25/34 79,038
216,317 AAA/Aaa First Union-Lehman Brothers, Bank of
America, 6.778%, 11/18/35 217,221
201,893 AA+/Aaa GE Business Loan Trust, 0.6165%,
4/15/31 191,546
365,739 AA/Aaa GE Business Loan Trust, 0.4765%,
5/15/32 340,744
445,000 Aa3/Aa3 GE Capital Commercial Mortgage Corp.,
5.704%, 7/10/37 451,959
318,950 AAA/Aaa GECMC 2005-C1 A2, 4.353%, 6/10/48 318,724
250,000 5.31 BBB+/Baa2 GMAC Commercial Mortgage Securities,
Inc., Floating Rate Note, 5/10/36 230,140
150,000 5.30 B+/NR GMAC Commercial Mortgage Securities,
Inc., Floating Rate Note, 5/10/40 136,089
350,000 NR/NR GS Mortgage Securities Corp., II, 4.209%,
2/10/21 346,955
66,253 2.03 CC/C Impac Cmb Trust, Floating Rate Note,
11/25/34 19,131
1,918,156 0.87 AAA/Baa2 Impac Cmb Trust, Floating Rate Note,
9/25/34 1,380,384
277,096 NR/Ba1 JPMorgan Chase Commercial Mortgage
Securities Corp., 0.5465%, 11/15/18 238,362
250,000 A-/Aa3 JPMorgan Chase Commercial Mortgage
Securities Corp., 0.34205%, 5/15/47 224,094
435,000 NR/Aaa JPMorgan Chase Commercial Mortgage
Securities Corp., 5.45%, 12/12/43 439,384
438,923 AAA/A2 JPMorgan Mortgage Trust, 2.657%,
2/25/34 427,986
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 23
Schedule of Investments | 8/31/11 (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
98,994 AAA/Baa2 JPMorgan Mortgage Trust, 4.479228%,
2/25/35 $ 97,767
312,718 A-/NR JPMorgan Mortgage Trust, 5.5%, 1/25/35 311,917
682,397 2.11 AAA/Aa3 JPMorgan Mortgage Trust, Floating Rate
Note, 10/25/33 654,086
220,135 2.86 CCC/B1 JPMorgan Mortgage Trust, Floating Rate
Note, 11/25/35 208,861
221,709 NR/B3 JPMorgan Mortgage Trust, 6.0%, 8/25/36 23,137
569,479 0.75 BB/B2 LBSBC 2005- 2 A M2, Floating Rate Note,
9/25/30 103,303
12,864 AAA/A2 LBSBC 2007- 2 A1, 5.57%, 3/25/37 (e) 11,893
367,885 AAA/Aaa LBUBS 2001-C2 C, 6.975%, 9/15/34 368,135
650,000 BBB+/NR LB-UBS Commercial Mortgage Trust,
5.616%, 10/15/35 628,039
400,000 AA/A1 LB-UBS Commercial Mortgage Trust,
5.873%, 7/15/35 402,348
160,605 AAA/NR Master Alternative Loans Trust, 4.5%,
1/25/15 160,471
360,196 6.90 A-/NR Master Seasoned Securities Trust, Floating
Rate Note, 9/25/32 377,713
68,203 AAA/Aaa Merrill Lynch Mortgage Trust, 4.556%,
6/12/43 68,453
45,575 5.44 AAA/Aaa Merrill Lynch/Countrywide Communities,
Floating Rate Note, 2/12/39 45,534
307,750 0.49 AAA/Baa2 MLCC Mortgage Investors, Inc., Floating
Rate Note, 4/25/29 269,597
700,000 NR/NR Morgan Stanley REMIC Trust, 5.0%,
11/26/36 680,750
349,860 NR/Aa3 PHH Mortgage Capital, 6.6%, 12/25/27 341,081
295,000 A+/NR Prudential Commercial Mortgage Trust,
4.706%, 2/11/36 285,662
1,031,703 BB/B2 RAAC Series, 6.0%, 1/25/32 1,048,716
564,969 6.17 A/Aaa Residential Asset Mortgage Products, Inc.,
Floating Rate Note, 5/25/18 581,433
2,525,076 AAA/NR Residential Asset Securitization, 0.66%,
5/25/33 2,277,015
524,654 AAA/NR Residential Asset Securitization, 5.5%,
7/25/35 488,044
617,495 AA+/NR Residential Asset Securitization, 5.75%,
12/25/34 631,191
1,723,642 AAA/Baa3 Residential Funding Mortgage Securities,
Inc., 5.0%, 5/25/18 1,788,694
580,692 NR/Aaa Salomon Brothers Mortgage Securities VII,
Inc., 7.0722%, 5/18/32 604,348
The accompanying notes are an integral part of these financial statements.
24 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
118,519 0.46 BBB/Baa2 SAMI 2007-AR4 A1, Floating Rate Note,
9/25/47 $ 114,053
226,047 0.62 AAA/Baa3 SEMT 2004-10 A2, Floating Rate Note,
11/20/34 185,220
645,159 AAA/B1 SEMT 2005-1 A2, 5.8325%, 2/20/35 526,522
305,237 0.92 AAA/Baa1 Sequoia Mortgage Trust, Floating Rate
Note, 9/20/33 267,803
442,437 AAA/Baa1 Sequoia Mortgage Trust, 0.45625%,
1/20/35 333,958
353,572 AAA/A3 Sequoia Mortgage Trust, 0.74969%,
1/20/35 272,556
418,281 AAA/Baa3 Sequoia Mortgage Trust, 1.816457%,
8/20/34 350,542
1,374,310 AA+/Aaa Structured Asset Mortgage Investments,
Inc., 0.75625%, 8/26/35 1,357,362
776,046 4.16 CCC/Caa3 Structured Asset Mortgage Investments,
Inc., Floating Rate Note, 5/25/45 449,697
342,337 AAA/A3 Structured Asset Securities Corp.,
2.6671%, 10/25/33 303,596
1,468,549 AAA/Baa1 Structured Asset Securities Corp.,
2.5615%, 7/25/33 1,288,003
376,282 AAA/B2 Thornburg Mortgage Securities Trust,
1.7542%, 3/25/44 316,165
444,873 AAA/Ba1 Thornburg Mortgage Securities Trust,
4.1376%, 3/25/44 428,091
1,864,772 0.60 AAA/A2 Thornburg Mortgage Securities Trust,
Floating Rate Note, 9/25/44 1,700,273
231,043 1.67 AAA/A1 Thornburg Mortgage Securities, Inc.,
Floating Rate Note, 3/25/44 206,337
500,000 A+/NR Wachovia Bank Commercial Mortgage
Trust, 5.606%, 4/15/35 500,716
87,622,547 0.14 AAA/Aaa Wachovia Bank Commercial Mortgage
Trust, Floating Rate Note, 6/15/45 93,493
650,000 BBB/NR WAMU Commercial Mortgage Securities
Trust, 5.3%, 5/25/36 680,968
897,368 NR/Baa1 Wells Fargo Mortgage Backed Securities
Trust, 4.75%, 4/25/20 920,695
162,877 AAA/A1 Wells Fargo Mortgage Backed Securities
Trust, 5.0%, 11/25/36 164,425
90,686 AAA/Baa1 Wells Fargo Mortgage Backed Securities
Trust, 5.5%, 5/25/35 90,085
752,829 2.74 NR/Ba3 Wells Fargo Mortgage Backed Securities
Trust, Floating Rate Note, 1/25/35 665,743
147,174 2.96 AAA/Aa1 Wells Fargo Mortgage Backed Securities
Trust, Floating Rate Note, 10/25/35 141,914
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 25
Schedule of Investments | 8/31/11 (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
876,692 5.01 NR/Ba2 Wells Fargo Mortgage Backed Securities
Trust, Floating Rate Note, 4/25/35 $ 843,301
99,069 5.04 CC/Aaa Wells Fargo Mortgage Backed Securities
Trust, Floating Rate Note, 9/25/35 96,082
533,214 AAA/Ba2 Wells Fargo Mortgage Backed Securities
Trust, 4.75%, 12/25/18 550,420
1,384,000 BB-/B3 Wells Fargo Mortgage Backed Securities
Trust, 5.38429%, 3/25/36 1,347,580
863,530 NR/B1 Wells Fargo Mortgage Backed Securities
Trust, 5.75%, 3/25/36 839,764
410,264 CCC/B1 Wells Fargo Mortgage Backed Securities
Trust, 6.0%, 8/25/36 405,749
------------
$ 42,989,000
------------
Total Banks $ 42,989,000
--------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.8%
Asset Management & Custody Banks -- 0.1%
184,016 4.67 NR/NR Jefferies & Co., Inc., Floating Rate Note,
5/26/37 $ 173,925
--------------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.1%
149,088 AAA/A2 GMAC Mortgage Corp., Loan Trust,
4.7456%, 12/19/33 $ 144,328
--------------------------------------------------------------------------------------------------------------
Diversified Financial Services -- 4.6%
210,000 A+/Baa2 American Tower Trust, 5.9568%, 4/15/14 $ 225,262
353,707 2.92 AAA/Aaa Bank of America Mortgage, Floating Rate
Note, 7/25/33 331,142
1,693,968 2.87 AAA/A2 Bank of America Mortgage, Floating Rate
Note, 9/25/33 1,621,654
470,587 2.87 NR/Ba3 Bank of America Mortgage Securities,
Floating Rate Note, 5/25/35 454,819
596,362 3.21 NR/Baa3 Bank of America Mortgage Securities,
Floating Rate Note, 11/25/33 556,434
177,697 0.97 A+/Baa1 Bear Stearns Alt-A Trust, Floating Rate
Note, 11/25/34 156,089
134,782 NR/Baa3 Citicorp Mortgage Securities, Inc., 5.5%,
3/25/35 134,840
482,196 B/B2 Citicorp Mortgage Securities, Inc., 5.5%,
11/25/35 481,353
650,000 BBB+/A2 Credit Suisse Mortgage Capital
Certificates, 0.318%, 2/15/22 606,590
600,000 NR/NR Credit Suisse Mortgage Capital
Certificates, 4.25%, 6/25/50 570,373
886,103 NR/Aaa Credit Suisse Mortgage Capital
Certificates, 5.268%, 2/15/40 886,307
281,945 B-/Aaa MLMI 2005-A2 A4, 4.48%, 2/25/35 267,619
The accompanying notes are an integral part of these financial statements.
26 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Diversified Financial Services -- (continued)
250,000 BBB-/A3 Morgan Stanley Capital, 0.919%,
12/15/20 $ 228,742
502,171 AAA/Aaa Morgan Stanley DW, 4.25%, 12/13/41 502,730
461,391 5.50 AAA/B2 RALI 2004-QS16 1A1, Floating Rate Note,
12/25/34 466,656
315,736 AAA/Baa2 Residential Accredited Loans, Inc., 4.5%,
4/25/34 316,890
344,012 0.81 AAA/Ba1 Residential Accredited Loans, Inc.,
Floating Rate Note, 1/25/34 327,870
1,073,791 4.25 AAA/Baa3 Residential Accredited Loans, Inc.,
Floating Rate Note, 1/25/34 1,083,765
950,000 AAA/Baa3 Residential Accredited Loans, Inc., 4.0%,
7/25/33 937,926
472,862 AAA/Aa1 Residential Accredited Loans, Inc., 5.75%,
10/25/33 480,621
764,076 0.81 AAA/Baa1 Residential Accredited Loans, Inc.,
Floating Rate Note, 10/25/17 719,921
106,856 NR/Ba1 Residential Accredited Loans, Inc., 5.0%,
7/25/18 108,680
405,481 AAA/Aa1 Structured Adjustable Rate Mortgage Loan
Trust, 0.63%, 1/25/35 398,253
190,129 NR/NR Vericrest Opportunity Loan Transferee,
5.926%, 12/26/50 190,243
------------
$ 12,054,779
--------------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.9%
537,452 AAA/Aaa Banc of America Commercial Mortgage,
Inc., 5.381%, 1/15/49 $ 538,626
675,480 AA/NR Bear Stearns Commercial Mortgage
Securities, 6.63%, 2/15/35 673,636
939,326 AA-/Aaa Lehman Brothers Floating Rate Note,
5.56%, 9/15/21 (144A) 887,709
460,000 NR/A1 Morgan Stanley Dean Witter Capital, Inc.,
6.79%, 7/15/33 462,339
------------
$ 2,562,310
--------------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.1%
253,952 0.33 A/Aaa Indymac Index Mortgage Loan Trust,
Floating Rate Note, 2/25/37 $ 244,817
------------
Total Diversified Financials $ 15,180,159
--------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 2.6%
Mortgage Real Estate Investment Trust -- 2.6%
1,026,497 5.01 AAA/Aaa American Home Mortgage Investment
Corp., Floating Rate Note, 10/25/34 $ 1,026,855
1,176,181 0.56 B/Caa3 American Home Mortgage Investment
Corp., Floating Rate Note, 11/25/45 739,738
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 27
Schedule of Investments | 8/31/11 (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Mortgage Real Estate Investment Trust -- (continued)
382,821 AAA/B1 American Home Mortgage Investment
Trust, 2.465%, 6/25/45 $ 337,354
215,645 BBB/NR Credit Suisse First Boston Mortgage
Securities Corp., 5.25%, 10/25/19 217,753
112,378 AAA/NR Credit Suisse First Boston Mortgage
Securities Corp., 5.5%, 6/25/33 110,303
402,428 AAA/A2 Credit Suisse First Boston Mortgage
Securities Corp., 7.5%, 5/25/32 424,409
245,535 1.58 AA+/Aa2 Credit Suisse First Boston Mortgage
Securities Corp., Floating Rate Note,
12/25/33 233,072
750,000 BB/A3 Credit Suisse First Boston Mortgage
Securities Corp., 6.448%, 9/15/34 748,241
100,000 4.62 A-/A3 Credit Suisse First Boston Mortgage
Securities Corp., Floating Rate Note,
5/15/38 93,357
1,695,378 AAA/Aaa CS First Boston Mortgage Security, 7.13%,
11/15/30 1,734,962
369,107 1.75 AA+/WR CS First Boston Mortgage Security,
Floating Rate Note, 8/25/33 338,386
108,637 1.38 D/Caa3 CS First Boston Mortgage Security,
Floating Rate Note, 9/25/34 46,130
797,577 AAA/NR CSFB 2004-C2 A1, 3.819%, 5/15/36 802,483
------------
$ 6,853,043
------------
Total Real Estate $ 6,853,043
--------------------------------------------------------------------------------------------------------------
GOVERNMENT -- 1.0%
304,761 AAA/Ba3 GSR Mortgage Loan Trust, 4.1408%,
6/25/34 $ 292,873
423,610 AAA/NR GSR Mortgage Loan Trust, 2.5125%,
8/25/33 385,432
354,420 BB+/NR GSR Mortgage Loan Trust, 5.25%,
7/25/35 343,479
929,341 NR/A3 GSR Mortgage Loan Trust, 5.5%, 3/25/35 935,066
678,688 4.01 AAA/BB GSR Mortgage Loan Trust, Floating Rate
Note, 9/25/35 622,859
------------
$ 2,579,709
------------
Total Government $ 2,579,709
--------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $70,729,770) $ 67,601,911
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 26.5%
ENERGY -- 1.4%
Integrated Oil & Gas -- 0.2%
500,000 A/A2 BP Capital Markets Plc, 3.125%,
3/10/12 (b) $ 506,759
--------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.5%
456,000 3.52 NR/NR Sevan Marine ASA, Floating Rate Note,
5/14/13 (144A) $ 319,200
2,134,000 11.99 NR/NR Sevan Marine ASA, Floating Rate Note,
10/24/12 (144A) 290,654
739,000 BBB/Baa2 Weatherford International, Ltd., Bermuda,
5.15%, 3/15/13 778,356
------------
$ 1,388,210
--------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.4%
250,000 A/Aa3 Ras Laffan LNG 3, 4.5%, 9/30/12 (144A) $ 258,750
250,000 A/Aa3 Ras Laffan LNG 3, 5.5%, 9/30/14 (144A) 275,625
500,000 BBB-/Baa2 TNK-BP Finance SA, 7.5%,
3/13/13 (144A) 532,500
------------
$ 1,066,875
--------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.3%
750,000 BBB-/Baa3 Williams Partners LP, 3.8%, 2/15/15 $ 795,885
------------
Total Energy $ 3,757,729
--------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.4%
Industrial Gases -- 0.2%
500,000 BBB/Baa2 Airgas, Inc., 2.85%, 10/1/13 $ 514,259
--------------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.2%
536,000 BBB/Baa2 Cytec Industries, Inc., 4.6%, 7/1/13 $ 564,255
------------
Total Materials $ 1,078,514
--------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.8%
Industrial Conglomerates -- 0.2%
500,000 BBB/Baa2 Tyco Electronics Group SA, 6.0%,
10/1/12 $ 528,205
--------------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.6%
440,000 BBB/Baa1 GATX Corp., 4.75%, 10/1/12 $ 449,456
1,000,000 BBB/Baa2 Glencore Funding LLC, 6.0%,
4/15/14 (144A) 1,039,423
------------
$ 1,488,879
------------
Total Capital Goods $ 2,017,084
--------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.1%
Office Services & Supplies -- 0.1%
350,000 BBB+/A2 Pitney Bowes, Inc., 4.625%, 10/1/12 $ 362,791
------------
Total Commercial Services & Supplies $ 362,791
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 29
Schedule of Investments | 8/31/11 (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.2%
Railroads -- 0.2%
480,000 BBB/Baa3 CSX Corp., 6.3%, 3/15/12 $ 493,794
------------
Total Transportation $ 493,794
--------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.5%
Automobile Manufacturers -- 0.4%
1,000,000 BBB/Baa2 Hyundai Motor Manufacturer, Ltd., 4.5%,
4/15/15 $ 1,045,276
100,000 BBB+/Baa1 Nissan Motor Acceptance Corp., 4.5%,
1/30/15 (144A) 106,468
------------
$ 1,151,744
--------------------------------------------------------------------------------------------------------------
Motorcycle Manufacturers -- 0.1%
175,000 BBB/Baa1 Harley-Davidson Financial Services, Inc.,
3.875%, 3/15/16 $ 183,908
------------
Total Automobiles & Components $ 1,335,652
--------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.4%
Housewares & Specialties -- 0.4%
1,000,000 BBB-/Baa3 Fortune Brands, Inc., 3.0%, 6/1/12 $ 1,013,252
------------
Total Consumer Durables & Apparel $ 1,013,252
--------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.0%
Education Services -- 1.0%
2,415,000 AAA/Aaa Yale University, 2.9%, 10/15/14 $ 2,572,047
------------
Total Consumer Services $ 2,572,047
--------------------------------------------------------------------------------------------------------------
MEDIA -- 0.3%
Broadcasting -- 0.3%
750,000 BBB/Baa2 Discovery Communications LLC, 3.7%,
6/1/15 $ 801,447
------------
Total Media $ 801,447
--------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.4%
Packaged Foods & Meats -- 0.4%
1,000,000 BBB/Baa1 WM Wrigley Jr Co., 3.05%, 6/28/13 $ 1,023,030
------------
Total Food, Beverage & Tobacco $ 1,023,030
--------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.7%
Health Care Equipment -- 0.2%
510,000 A/Baa1 St Jude Medical, Inc., 2.5%, 1/15/16 $ 524,808
--------------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.1%
300,000 BB+/Ba2 Universal Health Services, Inc., 6.75%,
11/15/11 $ 301,500
--------------------------------------------------------------------------------------------------------------
Health Care Services -- 0.4%
1,000,000 BBB+/Baa3 Express Scripts, Inc., 3.125%, 5/15/16 $ 1,022,885
------------
Total Health Care Equipment & Services $ 1,849,193
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 1.6%
Biotechnology -- 0.5%
900,000 BBB+/Baa3 Biogen Idec, Inc., 6.0%, 3/1/13 $ 956,606
285,000 AA-/A2 Genzyme Corp., 3.625%, 6/15/15 306,565
------------
$ 1,263,171
--------------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.9%
500,000 BBB-/Baa2 Agilent Technologies, Inc., 2.5%, 7/15/13 $ 509,726
620,000 BBB-/NR Agilent Technologies, Inc., 5.5%, 9/14/15 690,676
750,000 BBB/Ba1 Life Technologies Co., 3.375%, 3/1/13 770,998
475,000 A/A3 Thermo Fisher Scientific, Inc., 2.15%,
12/28/12 483,682
------------
$ 2,455,082
--------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.2%
500,000 AA/A1 Abbott Laboratories Co., 5.15%,
11/30/12 $ 529,149
------------
Total Pharmaceuticals & Biotechnology $ 4,247,402
--------------------------------------------------------------------------------------------------------------
BANKS -- 3.0%
Diversified Banks -- 1.8%
100,000 7.24 BB+/Ba1 Alfa Div Payment Rights Finance, Floating
Rate Note, 12/15/11 (144A) $ 99,691
750,000 AA-/Aa3 Barclays Bank Plc, 2.5%, 1/23/13 751,043
1,000,000 1.05 AA/Aa2 HSBC Bank Plc, Floating Rate Note,
8/12/13 (144A) 1,003,612
1,000,000 1.33 AA/Aa2 Santander US Debt SA, Floating Rate
Note, 3/30/12 (144A) 997,422
500,000 AA/Aa2 Santander US Debt SA Unipersonal,
2.485%, 1/18/13 490,361
500,000 A/A2 Standard Chartered Plc, 3.85%,
4/27/15 (144A) 513,970
820,000 A+/A2 Wachovia Corp., 5.25%, 8/1/14 877,128
------------
$ 4,733,227
--------------------------------------------------------------------------------------------------------------
Regional Banks -- 1.0%
300,000 BBB+/A2 American Express Bank FSB, 5.5%,
4/16/13 $ 318,451
500,000 A/A2 BB&T Corp., 5.7%, 4/30/14 550,830
500,000 A-/A3 KeyBank NA, 5.5%, 9/17/12 518,635
275,000 BBB+/Baa1 KeyBank NA, 5.8%, 7/1/14 300,442
500,000 BBB+/Baa1 KeyCorp, 3.75%, 8/13/15 515,638
215,000 BBB+/Baa1 KeyCorp, 6.5%, 5/14/13 (b) 231,107
275,000 8.25 BBB/Baa3 PNC Financial Services Group, Inc.,
Floating Rate Note, 5/29/49 281,225
------------
$ 2,716,328
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 31
Schedule of Investments | 8/31/11 (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.2%
500,000 AAA/Aaa Swedbank Hypotek AB, 0.758%, 3/28/14 $ 500,749
------------
Total Banks $ 7,950,304
--------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 8.0%
Asset Management & Custody Banks -- 0.1%
300,000 AA-/A1 Franklin Resources, Inc., 3.125%,
5/20/15 $ 315,805
--------------------------------------------------------------------------------------------------------------
Consumer Finance -- 1.3%
765,000 B+/B1 Ally Financial, Inc., 6.8750%, 8/28/12 $ 780,300
476,000 0.38 BBB+/A2 American Express Credit Corp., Floating
Rate Note, 2/24/12 475,382
380,000 A+/A1 American Honda Finance Corp., 6.7%,
10/1/13 (144A) 420,970
500,000 A+/A1 American Honda Finance Corp., 2.375%,
3/18/13 509,697
1,000,000 BBB/Baa1 Capital One Financial Corp., 4.8%,
2/21/12 1,017,721
100,000 AA+/Aaa John Deere Capital Corp., 2.875%,
6/19/12 102,012
------------
$ 3,306,082
--------------------------------------------------------------------------------------------------------------
Diversified Financial Services -- 4.1%
500,000 BBB+/A2 American Express Corp., 5.25%,
11/21/11 $ 504,572
500,000 A/A2 Bank of America Corp., 3.7%, 9/1/15 492,657
250,000 6.66 BB+/NR Caelus Re II, Ltd., Floating Rate Note,
5/24/13 248,575
1,000,000 A-/Baa1 Citigroup, Inc., 5.0%, 9/15/14 1,026,895
165,000 2.90 A/A3 Citigroup, Inc., Floating Rate Note,
3/16/12 164,167
1,000,000 BBB/Baa1 GATX Corp., 5.5%, 2/15/12 1,017,844
800,000 AA+/Aa2 General Electric Capital Corp., 4.0%,
2/15/12 812,448
500,000 AA+/Aa2 General Electric Capital Corp., 0.92675%,
4/7/14 492,764
1,000,000 AA+/Aa2 General Electric Capital Corp., 1.875%,
9/16/13 1,009,542
1,000,000 AA+/Aa2 General Electric Capital Corp., 1.101%,
12/20/13 1,002,906
500,000 0.94 A+/Aa3 JPMorgan Chase & Co., Floating Rate
Note, 2/26/13 501,233
500,000 A+/Aa3 JPMorgan Chase & Co., 4.0%, 2/25/21 501,670
100,000 AA+/Aaa JPMorgan Chase & Co., 3.125%, 12/1/11 100,705
500,000 6.33 BB/NR Lodestone Re, Ltd., Floating Rate Note,
5/17/13 (144A) 497,700
The accompanying notes are an integral part of these financial statements.
32 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Diversified Financial Services -- (continued)
500,000 6.07 BB/NR Lodestone Re, Ltd., Floating Rate Note,
1/8/14 $ 493,200
250,000 9.83 BB-/NR Loma Reinsurance, Ltd., Floating Rate
Note, 12/21/12 249,900
198,931 BBB/Baa2 Power Receivables Finance LLC, 6.29%,
1/1/12 (144A) 198,993
250,000 7.60 BB-/NR Queen Street II Capital, Ltd., Floating Rate
Note, 4/9/14 247,800
250,000 6.76 BB/NR Residential Reinsurance 2011 Ltd.,
Floating Rate Note, 6/6/13 (144A) 252,325
250,000 6.32 BB/NR Residential Reinsurance 2011, Ltd.,
Floating Rate Note, 6/6/13 250,875
250,000 6.32 B+/NR Residential Reinsurance 2011, Ltd.,
Floating Rate Note, 6/6/15 252,150
250,000 BBB-/NR Vita Capital IV, Ltd., 3.136967%,
1/15/16 250,150
------------
$ 10,569,071
--------------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 2.1%
340,000 A/A1 Goldman Sachs Group, Inc., 3.7%,
8/1/15 $ 343,653
1,000,000 A/A1 Goldman Sachs Group, Inc., 1.3105%,
2/7/14 964,976
898,000 A/A2 Merrill Lynch & Co., 5.45%, 2/5/13 921,346
275,000 A/A2 Morgan Stanley, Inc., 3.1%, 11/9/18 273,927
1,000,000 A/A2 Morgan Stanley, Inc., 4.0%, 9/22/20 995,505
500,000 A/A2 Morgan Stanley, Inc., 5.0%, 8/31/25 (b) 489,808
800,000 2.88 A/A2 Morgan Stanley, Inc., Floating Rate Note,
5/14/13 798,758
250,000 B+/NR Queen Street III Capital Corp., 0.0%,
7/28/14 248,650
500,000 A-/Baa1 TD Ameritrade Holdings, Inc., 2.95%,
12/1/12 509,741
------------
$ 5,546,364
--------------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.4%
500,000 BBB/Baa1 Banque PSA Finance SA, 3.375%,
4/4/14 $ 502,364
500,000 A/A2 National Rural Utilities, Inc., 5.4%,
10/15/13 540,356
------------
$ 1,042,720
------------
Total Diversified Financials $ 20,780,042
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 33
Schedule of Investments | 8/31/11 (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
INSURANCE -- 2.9%
Life & Health Insurance -- 0.5%
50,000 A+/A1 Allstate Life Global Corp., 5.375%,
4/30/13 $ 53,403
500,000 A-/NR Jefferson-Pilot Corp., 4.75%, 1/30/14 531,498
250,000 A-/Baa2 Lincoln National Corp., 4.3%, 6/15/15 263,768
500,000 BBB/A3 Principal Financial Group, Inc., 7.875%,
5/15/14 572,524
------------
$ 1,421,193
--------------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.6%
500,000 BBB/Baa3 Genworth Financial, Inc., 5.75%, 6/15/14 $ 493,200
410,000 BBB-/Baa2 Liberty Mutual Group, Inc., 7.3%,
6/15/14 (144A) 450,078
500,000 AA-/Aa3 Metropolitan Life Global Funding, Inc.,
2.875%, 9/17/12 507,599
------------
$ 1,450,877
--------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 1.0%
980,000 BBB+/Baa2 Berkley (WR), Ltd., 5.875%, 2/15/13 $ 1,019,217
916,000 BBB-/Baa2 OneBeacon US Holdings, Inc., 5.875%,
5/15/13 953,586
500,000 BBB+/Baa2 XL Capital, Ltd., 5.25%, 9/15/14 536,553
------------
$ 2,509,356
--------------------------------------------------------------------------------------------------------------
Reinsurance -- 0.8%
500,000 7.19 BB+/NR Blue Fin, Ltd., Floating Rate Note,
4/10/12 (144A) $ 499,300
250,000 2.40 BB/NR East Lane Re III, Ltd., Floating Rate Note,
3/16/12 252,500
250,000 7.23 BB+/NR Foundation Re III, Ltd., Floating Rate Note,
2/25/15 248,350
250,000 5.81 BB/A2 Foundation Re III, Ltd., Floating Rate Note,
2/3/14 (Cat Bond) 248,200
250,000 12.03 NR/B3 Globecat, Ltd., (Cat Bond) Floating Rate
Note, 1/2/13 (144A) 239,050
350,000 B-/NR Successor X, Ltd., 0.0%, 1/7/14 345,485
300,000 9.41 B/NR Successor X, Ltd., Floating Rate Note,
2/25/14 296,490
------------
$ 2,129,375
------------
Total Insurance $ 7,510,801
--------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 2.0%
Diversified Real Estate Activities -- 0.2%
350,000 A-/A2 Westfield Group, Inc., 5.4%, 10/1/12 $ 363,297
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Diversified Real Estate Investment Trust -- 0.4%
685,000 BBB+/Baa1 Dexus Finance Pty, Ltd., 7.125%,
10/15/14 $ 767,888
350,000 BBB/Baa2 Digital Realty Trust LP, 4.5%, 7/15/15 362,606
------------
$ 1,130,494
--------------------------------------------------------------------------------------------------------------
Office Real Estate Investment Trust -- 0.2%
385,000 BBB/Baa2 Mack-Cali Realty LP, 5.125%, 2/15/14 $ 413,756
--------------------------------------------------------------------------------------------------------------
Retail Real Estate Investment Trust -- 0.5%
500,000 BB+/Baa3 Developers Diversified Realty, Ltd.,
5.375%, 10/15/12 $ 506,003
773,000 A-/A3 Simon Property Group LP, 5.0%, 3/1/12 781,339
------------
$ 1,287,342
--------------------------------------------------------------------------------------------------------------
Specialized Real Estate Investment Trust -- 0.7%
500,000 BBB/Baa2 HCP, Inc., 2.7%, 2/1/14 $ 497,849
525,000 BBB-/Baa2 Hospitality Properties Trust, 6.75%,
2/15/13 542,953
780,000 BBB-/Baa2 Hospitality Properties Trust, 7.875%,
8/15/14 868,432
------------
$ 1,909,234
------------
Total Real Estate $ 5,104,123
--------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.2%
Internet Software & Services -- 0.2%
550,000 NR/A2 GTP Towers Issuer LLC, 4.436%,
2/15/15 (144A) $ 569,360
------------
Total Software & Services $ 569,360
--------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.2%
Office Electronics -- 0.2%
500,000 BBB-/Baa2 Xerox Corp., 5.5%, 5/15/12 $ 516,043
------------
Total Technology Hardware & Equipment $ 516,043
--------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS -- 0.3%
750,000 BBB/Baa1 Maxim Integrated Products, Inc., 3.45%,
6/14/13 $ 775,525
------------
Total Semiconductors $ 775,525
--------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 1.3%
Integrated Telecommunication Services -- 1.0%
1,100,000 BBB-/Baa3 QWEST Corp., 8.875, 3/15/12 $ 1,137,125
750,000 BBB/Baa2 Telecom Italia Capital SA, 4.95%,
9/30/14 739,179
590,000 A-/WR Verizon Virginia, Inc., 4.625%, 3/15/13 620,021
------------
$ 2,496,325
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 35
Schedule of Investments | 8/31/11 (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.3%
500,000 NR/A2 Crown Castle Towers LLC, 3.214%,
8/15/15 (144A) $ 512,381
500,000 NR/A2 GTP Acquisition Partners I LLC, 4.347%,
6/15/16 480,089
------------
$ 992,470
------------
Total Telecommunication Services $ 3,488,795
--------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.8%
Electric Utilities -- 0.6%
500,000 BBB+/Baa1 FPL Group Capital, Inc., 2.55%,
11/15/13 $ 512,407
1,000,000 A-/A3 Iberdrola Finance Ireland, Ltd., 3.8%,
9/11/14 (144A) 1,004,921
------------
$ 1,517,328
--------------------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.2%
500,000 BBB+/Baa1 Midamerican Energy Holdings Co., 5.95%,
5/15/37 $ 510,697
------------
Total Utilities $ 2,028,025
--------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $68,077,286) $ 69,274,953
--------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 31.7%
667,261 NR/NR Fannie Mae, 3.0%, 1/25/21 $ 693,350
331,986 AAA/NR Fannie Mae, 3.17454%, 6/25/35 347,652
347,755 AAA/NR Fannie Mae, 3.49029%, 4/25/45 362,479
318,395 AAA/Aaa Fannie Mae, 5.45%, 12/25/20 342,279
435,000 NR/NR Fannie Mae, 5.503%, 9/25/11 434,823
161,980 AAA/Aaa Fannie Mae, 5.69%, 1/25/32 168,925
591,438 NR/NR Fannie Mae, 6.0%, 3/25/35 636,297
294,613 AAA/Aaa Fannie Mae, 6.0%, 6/25/29 332,787
74,770 NR/NR Fannie Mae, 8.0%, 3/25/17 75,838
4,913,317 4.44 NR/Aa1 Fannie Mae, Floating Rate Note,
10/25/40 4,727,622
1,244,782 3.98 AAA/Aaa Fannie Mae, Floating Rate Note, 7/25/42 1,291,405
1,297,572 3.81 AAA/Aaa Fannie Mae, Floating Rate Note, 7/25/43 1,380,852
80,806 AA+/WR Federal Home Loan Bank, 4.84%,
1/25/12 82,039
284,953 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%,
9/1/12 292,554
325,794 AAA/Aaa Federal Home Loan Mortgage Corp., 5.0%,
9/1/11 - 2/1/21 347,600
305,922 AAA/Aaa Federal Home Loan Mortgage Corp.,
5.505%, 12/1/31 309,184
The accompanying notes are an integral part of these financial statements.
36 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
U.S. Government and Agency Obligations -- (continued)
9,184 AAA/Aaa Federal Home Loan Mortgage Corp.,
5.79%, 11/1/31 $ 9,580
129,895 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.064%, 11/1/40 132,382
611,191 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.134%, 10/1/31 616,032
12,340 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.303%, 7/1/18 13,034
633,102 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.44%, 10/1/36 669,799
51,512 AAA/Aaa Federal Home Loan Mortgage Corp., 6.5%,
7/1/16 - 6/1/17 56,139
6,288 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.533%, 11/1/25 6,603
3,348 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.571%, 4/1/29 3,530
3,901 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.837%, 4/1/28 4,121
9,519 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.985%, 5/1/25 9,565
4,638 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.035%, 4/1/29 4,650
4,911 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.142%, 1/1/28 5,191
176,395 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.245%, 8/1/31 178,806
1,682 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.25%, 8/1/31 1,686
111,006 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.393%, 11/1/24 112,013
22,270 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.484%, 2/1/27 22,576
38,364 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.652%, 4/1/25 38,762
70,922 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.680%, 1/1/25 71,790
2,385 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.936%, 2/1/33 2,511
169,067 AAA/Aaa Federal National Mortgage Association,
5.0%, 7/1/15 176,791
109,161 AAA/Aaa Federal National Mortgage Association,
5.469%, 7/1/36 115,876
311,455 AAA/Aaa Federal National Mortgage Association,
5.5%, 1/1/12 - 12/1/35 342,779
402,682 AAA/Aaa Federal National Mortgage Association,
6.0%, 2/1/34 - 4/1/38 448,842
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 37
Schedule of Investments | 8/31/11 (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
U.S. Government and Agency Obligations -- (continued)
465,574 AAA/Aaa Federal National Mortgage Association,
6.339%, 12/1/36 $ 488,165
698,283 AAA/Aaa Federal National Mortgage Association,
6.5%, 8/1/13 - 7/1/32 787,249
721,838 AAA/Aaa Federal National Mortgage Association,
7.0%, 5/1/12 - 1/1/36 811,992
90,688 AAA/Aaa Federal National Mortgage Association,
7.243%, 12/1/28 95,765
98,838 AAA/Aaa Federal National Mortgage Association,
7.405%, 10/1/29 102,504
239,000 AAA/Aaa Federal National Mortgage Association,
7.586%, 10/1/29 252,141
78,716 AAA/Aaa Federal National Mortgage Association,
8.0%, 4/1/14 83,165
1,229,928 AAA/Aaa Freddie Mac, 4.0%, 5/1/24 1,295,642
904,433 AAA/Aaa Freddie Mac, 4.5%, 7/1/19 973,230
846,857 AAA/Aaa Freddie Mac, 4.5%, 7/1/19 914,979
605,156 AAA/Aaa Freddie Mac, 4.5%, 7/1/19 648,918
222,001 AAA/Aaa Freddie Mac, 5.5%, 8/1/23 241,304
4,604,880 NR/NR Government National Mortgage
Association, 1.35404%, 3/16/51 261,338
17,716,028 AAA/Aa1 Government National Mortgage
Association, 1.524, 2/16/52 1,116,044
3,500,000 NR/NR Government National Mortgage
Association, 1.762244%, 3/15/52 272,703
2,417,626 NR/NR Government National Mortgage
Association, 2.351%, 6/16/50 2,453,481
1,000,000 AAA/Aaa Government National Mortgage
Association, 3.025%, 2/16/30 1,040,363
256,960 AAA/Aa1 Government National Mortgage
Association, 3.084%, 4/16/22 259,284
983,288 AAA/Aaa Government National Mortgage
Association, 4.0%, 4/20/35 1,019,587
95,178 AAA/Aa1 Government National Mortgage
Association, 4.009%, 5/16/37 100,184
350,000 AAA/Aa1 Government National Mortgage
Association, 4.549%, 6/16/28 374,077
652,103 AAA/Aaa Government National Mortgage
Association, 5.0%, 8/15/19 712,699
3,855,695 AAA/Aaa Government National Mortgage
Association, 6.0%, 5/20/13 - 11/15/36 4,238,376
203,393 AAA/Aaa Government National Mortgage
Association, 6.5%, 5/15/31 - 10/15/37 232,378
13,494 AAA/Aaa Government National Mortgage
Association, 7.0%, 11/15/13 14,142
The accompanying notes are an integral part of these financial statements.
38 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
U.S. Government and Agency Obligations -- (continued)
167,215 AAA/Aaa Government National Mortgage
Association, 7.5%, 6/15/14 - 10/15/36 $ 193,139
1,627,397 5.00 NR/NR Government National Mortgage
Association, Floating Rate Note, 1/20/16 1,758,310
17,933,965 0.71 NR/NR Government National Mortgage
Association, Floating Rate Note,
11/16/51 832,839
1,000,000 AA+/Aaa U.S. Treasury Notes, 0.5%, 11/15/13 1,006,250
5,000,000 AA+/Aaa U.S. Treasury Notes, 0.5%, 11/30/12 (b) 5,021,680
14,500,000 AA+/Aaa U.S. Treasury Notes, 0.5%, 5/31/13 (b) 14,578,735
2,000,000 AA+/Aaa U.S. Treasury Notes, 0.625%, 12/31/12 2,012,266
2,000,000 AA+/Aaa U.S. Treasury Notes, 0.625%, 2/28/13 2,013,438
1,000,000 AA+/Aaa U.S. Treasury Notes, 1.25%, 10/31/15 1,023,438
3,000,000 AA+/Aaa U.S. Treasury Notes, 1.375%, 9/15/12 3,038,085
5,000,000 AA+/Aaa U.S. Treasury Notes, 1.5%, 7/15/12 (b) 5,060,155
2,000,000 AA+/Aaa U.S. Treasury Notes, 1.75%, 8/15/12 2,030,782
9,500,000 AA+/Aaa U.S. Treasury Notes, 2.5%, 4/30/15 (b) 10,182,813
------------
$ 82,410,384
--------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(Cost $81,674,532) $ 82,410,384
--------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BOND -- 0.1%
250,000 A/A1 Korea Development Bank, 5.3%, 1/17/13 $ 261,745
--------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BOND
(Cost $249,643) $ 261,745
--------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 3.5%
MISCELLANEOUS -- 0.6%
1,500,000 A+/A1 New Jersey Economic Development
Authority, 1.247%, 6/15/13 $ 1,500,435
------------
Total Miscellaneous $ 1,500,435
--------------------------------------------------------------------------------------------------------------
GOVERNMENT -- 2.9%
Municipal Development -- 1.2%
2,800,000 BBB-/WR Indiana State Development Finance,
5.75%, 10/1/11 $ 2,801,204
250,000 AA-/Aa2 Massachusetts Development Finance
Agency, 3.0%, 2/15/36 267,195
------------
$ 3,068,399
--------------------------------------------------------------------------------------------------------------
Municipal Education -- 0.4%
1,075,000 AA+/Aa1 Virginia Public School Authority, 2.0%,
8/1/12 $ 1,092,480
--------------------------------------------------------------------------------------------------------------
Municipal General -- 0.2%
500,000 AA/Aa1 OH INFRA-TXB-2-BABS, 3.0%, 6/15/15 $ 525,325
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 39
Schedule of Investments | 8/31/11 (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Municipal Higher Education -- 0.3%
690,000 NR/A2 Massachusetts Health & Educational
Facilities Authority, 2.7%, 10/1/37 $ 718,504
200,000 AA-/Aa2 New York State Dormitory Authority, 3.0%,
7/1/13 208,346
------------
$ 926,850
--------------------------------------------------------------------------------------------------------------
Municipal Housing -- 0.1%
200,000 NR/Aa3 Oregon Housing & Communities, 1.15%,
1/1/13 $ 201,032
--------------------------------------------------------------------------------------------------------------
Municipal Pollution -- 0.4%
1,000,000 BBB+/Baa1 Power County Idaho Pollution Control,
5.625%, 10/1/14 $ 999,890
--------------------------------------------------------------------------------------------------------------
Municipal Transportation -- 0.3%
300,000 BBB/A3 Massachusetts Port Authority, 5.0%,
7/1/14 $ 312,600
475,000 BBB/A3 Massachusetts Port Authority, 5.0%,
7/1/16 503,372
------------
$ 815,972
------------
Total Government $ 7,629,948
--------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $9,047,749) $ 9,130,383
--------------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 2.1%**
MATERIALS -- 0.2%
Metal & Glass Containers -- 0.1%
227,324 4.50 BB/Ba2 BWAY Holding Co., Replacement B Term
Loan, 2/23/18 $ 215,389
151,843 6.75 B+/B2 Graham Packaging Co., C Term Loan,
4/5/14 150,830
20,183 4.50 BB/Ba2 ICL Industrial Containers ULC,
Replacement C Term Loan, 2/23/18 19,123
------------
$ 385,342
--------------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.1%
29,775 6.00 B+/B2 Graham Packaging Co., LP, D Term Loan,
9/23/16 $ 29,539
227,175 2.99 BB/Ba2 Graphic Packaging International, Inc.,
Incremental Term Loan, 5/16/14 220,758
------------
$ 250,297
------------
Total Materials $ 635,639
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
40 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.1%
Construction & Farm Machinery & Heavy Trucks -- 0.1%
150,000 5.50 BB/Ba2 Terex Corp., U.S. Term Loan, 4/28/17 $ 147,125
------------
Total Capital Goods $ 147,125
--------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.1%
Environmental & Facilities Services -- 0.1%
173,608 2.21 D/B2 Synagro Technologies, Inc., Term Loan
First Lien, 4/2/14 $ 152,775
------------
Total Commercial Services & Supplies $ 152,775
--------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.5%
Auto Parts & Equipment -- 0.1%
299,342 3.50 BBB-/Baa3 Delphi Automotive LLP, Tranche B Term
Loan, 3/31/17 $ 293,480
--------------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.4%
930,000 6.00 NR/NR Chrysler Group LLC, Tranche B Term Loan,
5/24/17 $ 841,650
92,598 2.96 B/Baa3 Ford Motor Co., Tranche B-2 Term Loan,
12/15/13 91,421
------------
$ 933,071
------------
Total Automobiles & Components $ 1,226,551
--------------------------------------------------------------------------------------------------------------
MEDIA -- 0.2%
Movies & Entertainment -- 0.2%
398,005 5.25 NR/NR Christie/AIX, Inc., Term Loan, 4/29/16 $ 382,085
197,500 4.50 B+/NR Live Nation Entertainment, Inc., Term B
Loan, 11/7/16 187,131
------------
$ 569,216
------------
Total Media $ 569,216
--------------------------------------------------------------------------------------------------------------
RETAILING -- 0.1%
Automotive Retail -- 0.1%
249,375 4.00 NR/NR Autotrader.Com, Inc., Tranche B-1 Term
Loan, 12/15/16 $ 245,634
------------
Total Retailing $ 245,634
--------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.2%
Health Care Facilities -- 0.1%
18,531 2.57 BB-/Ba3 CHS/Community Health Systems, Inc.,
Non-Extended Delay Draw Term Loan ,
7/25/14 $ 17,303
360,416 2.57 BB-/Ba3 CHS/Community Health Systems, Inc.,
Non-Extended Term Loan, 7/25/14 336,538
------------
$ 353,841
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 41
Schedule of Investments | 8/31/11 (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.1%
196,166 3.49 BB-/B1 Bausch & Lomb, Inc., Parent Term Loan,
4/24/15 $ 184,028
47,750 3.47 BB-/B1 Bausch & Lomb, Inc., Delayed Draw Term
Loan, 4/24/15 44,795
------------
$ 228,823
------------
Total Health Care Equipment & Services $ 582,664
--------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Investment Banking & Brokerage -- 0.1%
143,830 5.25 B+/Ba3 LPL Holdings, Inc., 2017 Term Loan,
6/28/17 $ 142,392
------------
Total Diversified Financials $ 142,392
--------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.2%
Data Processing & Outsourced Services -- 0.1%
248,125 5.25 BBB-/Ba1 Fidelity National, Inc., Term B Loan,
7/18/16 $ 245,644
--------------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.1%
380,333 1.96 BB/Ba3 Sungard Data Systems, Inc., Tranche A
U.S. Term Loan, 2/28/14 $ 363,218
------------
Total Software & Services $ 608,862
--------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.2%
Integrated Telecommunication Services -- 0.2%
39,639 3.23 NR/NR Telesat Canada, Inc., U.S. Term II Loan,
10/31/14 $ 37,766
461,458 3.23 NR/NR Telesat Canada, Inc., U.S. Term I Loan,
10/31/14 439,654
------------
$ 477,420
------------
Total Telecommunication Services $ 477,420
--------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.2%
Independent Power Producer & Energy Traders -- 0.2%
433,913 4.25 BB+/Ba1 AES Corp., Initial Term Loan, 6/1/18 $ 419,629
------------
Total Utilities $ 419,629
--------------------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE
LOAN INTERESTS
(Cost $5,375,893) $ 5,207,907
--------------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 14.2%
SECURITIES LENDING COLLATERAL -- 14.2% (c)
Certificates of Deposit:
1,086,755 Bank of America NA, 0.19%, 9/2/11 $ 1,086,755
1,086,755 Bank of Montreal Chicago, 0.18%,
10/20/11 1,086,755
217,351 Bank of Nova Scotia, 0.26%, 9/29/11 217,351
The accompanying notes are an integral part of these financial statements.
42 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Certificates of Deposit -- (continued)
869,404 Bank of Nova Scotia, 0.32%, 6/11/12 $ 869,404
1,086,755 Canadian Imperial Bank of Commerce NY,
0.21%, 10/3/11 1,086,755
1,086,644 DnB NOR Bank ASA NY, 0.22%,
11/14/11 1,086,644
543,372 National Australia Bank NY, 0.27%,
10/19/11 543,372
1,195,580 RaboBank Netherland NV NY, 0.29%,
4/2/12 1,195,580
652,053 Royal Bank of Canada NY, 0.33%,
12/2/11 652,053
1,086,797 Skandinav Enskilda Bank NY, 0.33%,
12/6/11 1,086,797
1,086,755 Westpac Banking Corp., NY, 0.33%,
12/6/11 1,086,755
------------
$ 9,998,221
--------------------------------------------------------------------------------------------------------------
Commercial Paper:
652,008 ABTPP, 0.10%, 9/26/11 $ 652,008
434,702 American Honda Finance, 0.30%,
1/11/12 434,702
652,040 Australia & New Zealand Banking Group,
0.15%, 9/6/11 652,040
1,086,705 CHARFD, 0.14%, 9/13/11 1,086,705
652,036 CHARFD, 0.14%, 9/8/11 652,036
498,818 Federal Farm Credit Bank, 0.18%,
8/20/12 498,818
782,458 General Electric Capital Corp., 0.37%,
4/10/12 782,458
108,594 General Electric Capital Corp., 0.42%,
7/27/12 108,594
119,595 General Electric Capital Corp., 0.48%,
11/21/11 119,595
412,945 JDCCPP, 0.10%, 9/20/11 412,945
978,080 JPMorgan Chase & Co., 0.28%, 7/17/12 978,080
543,286 NABPP, 0.19%, 10/3/11 543,286
977,512 NESCAP, 0.19%, 12/20/11 977,512
868,525 NORDNA, 0.28%, 1/9/12 868,525
696,651 OLDLLC, 0.17%, 10/5/11 696,651
325,971 OLDLLC, 0.17%, 10/7/11 325,971
869,191 PGPP, 0.14%, 11/3/11 869,191
543,378 Royal Bank of Canada NY, 0.30%,
8/17/12 543,378
543,378 SANCPU, 0.64%, 9/1/11 543,378
651,902 Sanofi Aventis, 0.17%, 10/20/11 651,902
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 43
Schedule of Investments | 8/31/11 (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Commercial Paper -- (continued)
434,702 SOCNAM, 0.22%, 9/1/11 $ 434,702
1,086,755 Svenska Handelsbanken, 0.29%,
6/29/12 1,086,755
543,367 TBLLC, 0.12%, 9/7/11 543,367
582,692 TBLLC, 0.17%, 10/12/11 582,692
435,258 TBLLC, 0.18%, 10/5/11 435,258
1,086,755 Toyota Motor Credit Corp., 0.33%, 9/8/11 1,086,755
543,240 VARFUN, 0.19%, 10/19/11 543,240
434,745 Wachovia, 0.38%, 10/15/11 434,745
326,214 Wachovia, 0.40%, 3/1/12 326,214
217,435 Wells Fargo & Co., 0.34%, 1/24/12 217,435
434,697 WMT, 0.08%, 9/7/11 434,697
------------
$ 18,523,635
--------------------------------------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
987,775 BNP Paribas, Inc., 0.06%, 9/1/11 $ 987,775
4,129,541 RBS Securities, Inc., 0.06%, 9/1/11 4,129,541
------------
$ 5,117,316
--------------------------------------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------------------------------------
Money Market Mutual Funds:
1,630,134 Dreyfus Preferred Money Market Fund $ 1,630,134
1,630,134 Fidelity Prime Money Market Fund 1,630,134
------------
$ 3,260,268
------------
Total Securities Lending Collateral $ 36,899,440
--------------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $36,899,440) $ 36,899,440
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 119.4%
(Cost $312,777,966) (a) $310,398,167
--------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES --
(19.4)% $(50,805,987)
--------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $259,592,180
==============================================================================================================
NR Not rated by either S&P or Moody's.
WR Rating withdrawn by either S&P or Moody's.
(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 August
31, 2011, the value of these securities amounted to $10,970,102 or 4.2%
of total net assets.
** Senior floating rate loan interests in which the Fund invests generally
pay interest at rates that are periodically redetermined by reference
to a base lending rate plus a premium. These base lending rates are
generally (i) the lending rate offered by one or more major European
banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime
rate offered by one or more major United
The accompanying notes are an integral part of these financial statements.
44 Pioneer Short Term Income Fund | Annual Report | 8/31/11
States banks, (iii) the certificate of deposit or (iv) other base lending
rates used by commercial lenders. The rate shown is the coupon rate at
period end.
(a) At August 31, 2011, the net unrealized loss on investments based on cost
for federal income tax purposes of $313,323,940 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 3,576,811
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (6,502,584)
-----------
Net unrealized loss $(2,925,773)
===========
(b) At August 31, 2011, the following securities were out on loan:
--------------------------------------------------------------------------------
Principal
Amount ($) Security Value
--------------------------------------------------------------------------------
495,000 BP Capital Markets Plc, 3.125%, 3/10/12 $ 501,691
212,000 KeyCorp., 6.5%, 5/14/13 227,882
450,000 Morgan Stanley, Inc., 5.0%, 8/31/25 440,827
14,500,000 U.S. Treasury Notes, 0.5%, 5/31/13 14,578,735
5,000,000 U.S. Treasury Notes, 0.5%, 11/30/12 5,021,680
5,000,000 U.S. Treasury Notes, 1.5%, 7/15/12 5,060,155
9,500,000 U.S. Treasury Notes, 2.5%, 4/30/15 10,182,813
--------------------------------------------------------------------------------
$36,013,784
================================================================================
(c) Securities lending collateral is managed by Credit Suisse AG, New York
Branch.
(d) Debt obligation with a variable interest rate. Rate shown is rate at end
of period.
(e) Security is valued by management using fair value methods (See Note 1A).
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2011 were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government $ 43,643,414 $50,278,270
Other Long-Term Securities $125,589,576 $96,278,867
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
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)
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods (See
Note 1A) are categorized as Level 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 45
Schedule of Investments | 8/31/11 (continued)
The following is a summary of the inputs used as of August 31, 2011, in valuing
the Fund's assets:
----------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------------
Asset Backed Securities $ -- $ 39,611,444 $ -- $ 39,611,444
Collateralized Mortgage Obligations -- 24,612,911 -- 24,612,911
Collateralized Mortgage Obligations (Banks) -- 42,977,107 11,893 42,989,000
Corporate Bonds -- 69,274,953 -- 69,274,953
U.S. Government Agency Obligations -- 82,410,384 -- 82,410,384
Foreign Government Bond -- 261,745 -- 261,745
Municipal Bonds -- 9,130,383 -- 9,130,383
Senior Floating Rate Loan Interests -- 5,207,907 -- 5,207,907
Temporary Cash Investments -- 28,521,856 -- 28,521,856
Money Market Mutual Funds 3,260,268 -- -- 3,260,268
Repurchase Agreements -- 5,117,316 -- 5,117,316
----------------------------------------------------------------------------------------------------
Total $3,260,268 $307,126,006 $11,893 $310,398,167
====================================================================================================
Other Financial Instruments* $ (216,000) $ (9,658) $ -- $ (225,658)
----------------------------------------------------------------------------------------------------
* Other Financial Instruments include futures and foreign exchange contracts.
Following is a reconciliation of assets using significant unobservable inputs
(Level 3):
--------------------------------------------------------------------------------
Collateralized
Mortgage
Obligations
--------------------------------------------------------------------------------
Balance as of 8/31/10 $ 400,174
Realized gain (loss)(1) --
Change in unrealized appreciation (depreciation)(2) 23,425
Net purchases (sales) --
Paydowns (411,706)
Transfers in and out of Level 3* --
--------------------------------------------------------------------------------
Balance as of 8/31/11 $ 11,893
================================================================================
1 Realized gain (loss) on these securities is included in the net realized
gain (loss) from investments in the Statement of Operations.
2 Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized gain (loss) on investments in the Statement of
Operations.
* Transfers are calculated on the date of transfer.
Net change in unrealized appreciation (depreciation) of
investments still held as of 8/31/11 $23,425
================================================================================
The Fund had no significant transfers between Level 1 and 2 during the year
ended August 31, 2011.
The accompanying notes are an integral part of these financial statements.
46 Pioneer Short Term Income Fund | Annual Report | 8/31/11
Statement of Assets and Liabilities | 8/31/11
ASSETS:
Investment in securities (including securities loaned of $36,013,784) $310,398,167
(cost $312,777,966)
Cash 13,710,685
Futures Collateral 43,200
Foreign currencies, at value (cost $11,731) 11,643
Receivables --
Paydown 4,281
Variation Margin 5,250
Fund shares sold 1,274,366
Dividends and interest 1,513,233
Due from Pioneer Investment Management, Inc. 45,807
Other 44,710
-----------------------------------------------------------------------------------------
Total assets $327,051,342
-----------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 1,786,513
Fund shares repurchased 28,361,641
Dividends 288,508
Forward foreign currency portfolio hedge contracts, open-net 9,658
Upon return of securities loaned 36,899,440
Due to affiliates 32,505
Accrued expenses 80,897
-----------------------------------------------------------------------------------------
Total liabilities $ 67,459,162
-----------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $271,338,699
Distributions in excess of net investment income (109,372)
Accumulated net realized loss on investments, futures contracts and
foreign currency transactions (9,031,901)
Net unrealized loss on investments (2,379,799)
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (9,447)
Net unrealized loss on futures contracts (216,000)
-----------------------------------------------------------------------------------------
Total net assets $259,592,180
-----------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $114,080,165/11,833,806 shares) $ 9.64
Class B (based on $2,671,287/277,262 shares) $ 9.63
Class C (based on $23,463,650/2,439,613 shares) $ 9.62
Class Y (based on $119,377,078/12,400,796 shares) $ 9.63
MAXIMUM OFFERING PRICE:
Class A ($9.64 [divided by] 97.5%) $ 9.89
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 47
Statement of Operations
For the Year Ended 8/31/11
INVESTMENT INCOME:
Interest $ 9,362,223
Income from securities loaned, net 10,615
-----------------------------------------------------------------------------------------------------------
Total investment income $ 9,372,838
-----------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,120,518
Transfer agent fees and expenses
Class A 84,471
Class B 10,777
Class C 15,940
Class Y 1,284
Distribution fees
Class A 341,906
Class B 38,499
Class C 206,750
Shareholder communications expense 226,455
Administrative reimbursements 84,934
Custodian fees 18,245
Registration fees 84,081
Professional fees 69,623
Printing expense 42,488
Fees and expenses of nonaffiliated Trustees 9,809
Miscellaneous 54,714
-----------------------------------------------------------------------------------------------------------
Total expenses $ 2,410,494
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (126,638)
-----------------------------------------------------------------------------------------------------------
Net expenses $ 2,283,856
-----------------------------------------------------------------------------------------------------------
Net investment income $ 7,088,982
===========================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 210,707
Futures contracts (89,521)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (33,641) $ 87,545
-----------------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $ (2,191,392)
Futures contracts (216,000)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (31,845) $ (2,439,237)
-----------------------------------------------------------------------------------------------------------
Net loss on investments and foreign currency transactions $ (2,351,692)
-----------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 4,737,290
===========================================================================================================
The accompanying notes are an integral part of these financial statements.
48 Pioneer Short Term Income Fund | Annual Report | 8/31/11
Statements of Changes in Net Assets
---------------------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/11 8/31/10
---------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 7,088,982 $ 5,743,078
Net realized gain (loss) on investments, futures contracts and
foreign currency transactions 87,545 (403,681)
Change in net unrealized gain (loss) on investments, futures
contracts and foreign currency transactions (2,439,237) 7,008,521
---------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 4,737,290 $ 12,347,918
---------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.27 and $0.32 per share, respectively) $ (3,827,795) $ (1,529,659)
Class B ($0.19 and $0.23 per share, respectively) (74,048) (144,001)
Class C ($0.20 and $0.24 per share, respectively) (426,011) (336,754)
Class Y ($0.31 and $0.35 per share, respectively) (3,782,100) (3,945,313)
---------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (8,109,954) $ (5,955,727)
---------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $153,559,108 $194,603,188
Reinvestment of distributions 4,247,668 1,588,208
Cost of shares repurchased (165,847,870) (63,622,492)
---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Fund
share transactions $ (8,041,094) $132,568,904
---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(11,413,758) $138,961,095
NET ASSETS:
Beginning of year 271,005,938 132,044,843
---------------------------------------------------------------------------------------------------
End of year $259,592,180 $271,005,938
---------------------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (109,372) $ (59,804)
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 49
Statements of Changes in Net Assets (continued)
----------------------------------------------------------------------------------------------
'11 Shares '11 Amount '10 Shares '10 Amount
----------------------------------------------------------------------------------------------
Class A
Shares sold 10,891,548 $105,896,019 16,135,157 $155,975,673
Reinvestment of distributions 370,009 3,597,147 105,459 1,018,000
Less shares repurchased (12,813,982) (124,286,825) (4,933,375) (47,613,013)
----------------------------------------------------------------------------------------------
Net increase (decrease) (1,552,425) $(14,793,659) 11,307,241 $109,380,660
==============================================================================================
Class B
Shares sold or exchanged 137,813 $ 1,340,132 165,531 $ 1,583,923
Reinvestment of distributions 6,848 66,599 12,250 117,431
Less shares repurchased (361,999) (3,517,699) (383,974) (3,683,579)
----------------------------------------------------------------------------------------------
Net decrease (217,338) $ (2,110,968) (206,193) $ (1,982,225)
==============================================================================================
Class C
Shares sold 1,567,864 $ 15,197,252 1,686,258 $ 16,169,023
Reinvestment of distributions 35,685 346,249 26,006 249,635
Less shares repurchased (1,271,046) (12,337,637) (516,830) (4,957,407)
----------------------------------------------------------------------------------------------
Net increase 332,503 $ 3,205,864 1,195,434 $ 11,461,251
==============================================================================================
Class Y
Shares sold 3,205,058 $ 31,125,705 2,190,445 $ 20,874,569
Reinvestment of distributions 24,505 237,673 21,180 203,142
Less shares repurchased (2,651,263) (25,705,709) (764,432) (7,368,493)
----------------------------------------------------------------------------------------------
Net increase 578,300 $ 5,657,669 1,447,193 $ 13,709,218
==============================================================================================
The accompanying notes are an integral part of these financial statements.
50 Pioneer Short Term Income Fund | Annual Report | 8/31/11
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
8/31/11 8/31/10 8/31/09 8/31/08 8/31/07
--------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.75 $ 9.40 $ 9.52 $ 9.76 $ 9.75
--------------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.23 $ 0.31 $ 0.37 $ 0.45 $ 0.43
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (0.07) 0.36 (0.03) (0.24) 0.02
--------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.16 $ 0.67 $ 0.34 $ 0.21 $ 0.45
Distributions to shareowners:
Net investment income (0.27) (0.32) (0.46) (0.45) (0.44)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.11) $ 0.35 $ (0.12) $ (0.24) $ 0.01
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.64 $ 9.75 $ 9.40 $ 9.52 $ 9.76
================================================================================================================================
Total return* 1.69% 7.19% 3.90% 2.18% 4.68%
Ratio of net expenses to average net assets+ 0.90% 0.90% 0.90% 0.91% 0.91%
Ratio of net investment income to average net assets+ 2.48% 2.78% 3.59% 4.60% 4.27%
Portfolio turnover rate 54% 42% 43% 34% 78%
Net assets, end of period (in thousands) $114,080 $130,524 $ 19,544 $ 12,499 $ 13,184
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 0.99% 1.06% 1.15% 1.00% 1.00%
Net investment income 2.39% 2.61% 3.35% 4.51% 4.18%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 0.90% 0.90% 0.90% 0.90% 0.90%
Net investment income 2.48% 2.78% 3.59% 4.61% 4.28%
================================================================================================================================
* 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.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 51
Financial Highlights (continued)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
8/31/11 8/31/10 8/31/09 8/31/08 8/31/07
--------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 9.75 $ 9.39 $ 9.50 $ 9.75 $ 9.75
--------------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.14 $ 0.22 $ 0.28 $ 0.36 $ 0.34
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (0.07) 0.37 (0.01) (0.25) 0.01
--------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.07 $ 0.59 $ 0.27 $ 0.11 $ 0.35
Distributions to shareowners:
Net investment income (0.19) (0.23) (0.38) (0.36) (0.35)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.12) $ 0.36 $ (0.11) $ (0.25) $ --
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.63 $ 9.75 $ 9.39 $ 9.50 $ 9.75
================================================================================================================================
Total return* 0.68% 6.35% 3.06% 1.16% 3.64%
Ratio of net expenses to average net assets+ 1.80% 1.80% 1.80% 1.80% 1.82%
Ratio of net investment income to average net assets+ 1.64% 2.37% 3.15% 3.72% 3.37%
Portfolio turnover rate 54% 42% 43% 34% 78%
Net assets, end of period (in thousands) $ 2,671 $ 4,822 $ 6,582 $ 6,798 $ 8,969
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 1.87% 1.88% 1.95% 1.85% 1.88%
Net investment income 1.57% 2.29% 3.00% 3.67% 3.31%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 1.80% 1.80% 1.80% 1.80% 1.80%
Net investment income 1.64% 2.37% 3.15% 3.72% 3.39%
================================================================================================================================
* 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.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
52 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
8/31/11 8/31/10 8/31/09 8/31/08 8/31/07
--------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.73 $ 9.38 $ 9.49 $ 9.74 $ 9.73
--------------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.16 $ 0.23 $ 0.29 $ 0.37 $ 0.35
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (0.07) 0.36 (0.01) (0.25) 0.01
--------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.09 $ 0.59 $ 0.28 $ 0.12 $ 0.36
Distributions to shareowners:
Net investment income (0.20) (0.24) (0.39) (0.37) (0.35)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.11) $ 0.35 $ (0.11) $ (0.25) $ 0.01
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.62 $ 9.73 $ 9.38 $ 9.49 $ 9.74
================================================================================================================================
Total return* 0.93% 6.32% 3.14% 1.25% 3.79%
Ratio of net expenses to average net assets+ 1.67% 1.70% 1.79% 1.73% 1.72%
Ratio of net investment income to average net assets+ 1.61% 2.27% 2.74% 3.77% 3.45%
Portfolio turnover rate 54% 42% 43% 34% 78%
Net assets, end of period (in thousands) $ 23,464 $ 20,507 $ 8,549 $ 3,441 $ 2,879
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 1.67% 1.70% 1.79% 1.73% 1.72%
Net investment income 1.61% 2.27% 2.74% 3.77% 3.45%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 1.67% 1.70% 1.79% 1.73% 1.71%
Net investment income 1.61% 2.27% 2.74% 3.77% 3.46%
================================================================================================================================
* 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.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 53
Financial Highlights (continued)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
8/31/11 8/31/10 8/31/09 8/31/08 8/31/07
--------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.74 $ 9.38 $ 9.51 $ 9.76 $ 9.76
--------------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.27 $ 0.34 $ 0.40 $ 0.48 $ 0.45
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (0.07) 0.37 (0.04) (0.24) 0.02
--------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.20 $ 0.71 $ 0.36 $ 0.24 $ 0.47
Distributions to shareowners:
Net investment income (0.31) (0.35) (0.49) (0.49) (0.47)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.11) $ 0.36 $ (0.13) $ (0.25) $ --
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.63 $ 9.74 $ 9.38 $ 9.51 $ 9.76
================================================================================================================================
Total return* 2.06% 7.64% 4.11% 2.45% 4.96%
Ratio of net expenses to average net assets+ 0.54% 0.57% 0.63% 0.55% 0.53%
Ratio of net investment income to average net assets+ 2.78% 3.52% 4.36% 4.98% 4.68%
Portfolio turnover rate 54% 42% 43% 34% 78%
Net assets, end of period (in thousands) $119,377 $115,153 $ 97,370 $130,475 $189,724
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Net expenses 0.54% 0.57% 0.63% 0.55% 0.53%
Net investment income 2.78% 3.52% 4.36% 4.98% 4.68%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 0.54% 0.57% 0.63% 0.55% 0.53%
Net investment income 2.78% 3.52% 4.36% 4.98% 4.68%
================================================================================================================================
* 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.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
54 Pioneer Short Term Income Fund | Annual Report | 8/31/11
Notes to Financial Statements | 8/31/11
1. Organization and Significant Accounting Policies
Pioneer Short Term Income Fund (the Fund) is a Delaware statutory trust
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 to the extent consistent with a relatively high
level of stability of principal.
The Fund offers four classes of shares designated as Class A, Class B, 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.
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 underlying issuers and their
inability to meet their debt obligations. The Fund's prospectus contains
unaudited information regarding the Fund's principal risks. Please refer to that
document 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 Short Term Income Fund | Annual Report | 8/31/11 55
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 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.
Senior floating rate loan interests (senior loans) are valued in
accordance with guidelines established by the Board of Trustees at the
mean between the last available bid and asked prices from one or more
brokers or dealers as obtained from Loan Pricing Corporation. Senior loans
for which no reliable price quotes are available will be valued by Loan
Pricing Corporation through the use of pricing matrices to determine
valuations. 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 or loans 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.
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 August 31, 2011, one security, representing less than 0.01% of total
net assets, was valued using fair value methods (in addition to securities
valued using prices supplied by independent pricing services). Inputs used
when applying fair value methods to value a security may 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. Money market mutual funds
are valued at net asset value.
56 Pioneer Short Term Income Fund | Annual Report | 8/31/11
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly
paydowns. All discounts/premiums on debt securities are accreted/amortized
for financial reporting purposes over the life of the respective
securities, and such accretion/amortization is included in interest
income. Interest income, including interest on income bearing cash
accounts, is recorded on the accrual basis, net of unrecoverable foreign
taxes withheld at the applicable country rates.
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. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized gains or losses are recorded
in the Fund's financial statements. The Fund records realized gains and
losses at the time a portfolio hedge is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 6).
D. 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.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 57
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.
Under the recently enacted Regulated Investment Company Modernization Act
of 2010, the Fund will be permitted to carry forward capital losses
incurred in taxable years beginning after December 22, 2010 for an
unlimited period. However, any losses incurred during those future years
will be required to be utilized prior to the losses incurred in
pre-enactment tax years. As a result of this ordering rule, pre-enactment
capital loss carryforwards may be more likely to expire unused.
Additionally, post enactment capital losses that are carried forward will
retain their character as either short-term or long-term capital losses
rather than being considered all short-term as under previous law.
At August 31, 2011, the Fund reclassified $971,404 to decrease
distributions in excess of net investment income, $971,280 to decrease
accumulated net realized loss on investments and foreign currency
transactions and $124 to decrease paid-in capital to reflect permanent
book/tax differences. The reclassification has no impact on the net asset
value of the Fund and is designed to present the Fund's capital accounts
on a tax basis.
At August 31, 2011, the Fund had a net capital loss carryforward of
$8,610,399, of which the following amounts will expire between 2012 and
2019 if not utilized: $1,200,645 in 2012, $628,614 in 2013, $975,752 in
2014, $2,520,831 in 2015, $667,204 in 2016, $566,527 in 2017, $1,062,928
in 2018 and $987,898 in 2019. Included in this amount is $6,944,867 of
capital losses which, as a result of the reorganizations with Regions
Morgan Keegan Select Limited Maturity Fixed Income Fund on May 15, 2009
and may be subject to limitations imposed by the Internal Revenue Code.
The Fund elected to defer $56,729 in capital losses incurred between
November 1, 2010 and August 31, 2011 to its fiscal year ending August 31,
2012.
The tax character of distributions paid during the years ended August 31,
2011 and August 31, 2010 were as follows:
--------------------------------------------------------------------------------
2011 2010
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $8,109,954 $5,955,727
--------------------------------------------------------------------------------
Total $8,109,954 $5,955,727
================================================================================
58 Pioneer Short Term Income Fund | Annual Report | 8/31/11
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2011:
--------------------------------------------------------------------------------
2011
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 134,679
Capital loss carryforward (8,610,399)
Current year post-October loss deferred (56,729)
Current year dividend payable (288,508)
Net unrealized loss (2,925,562)
--------------------------------------------------------------------------------
Total $ (11,746,519)
================================================================================
The difference between book-basis and tax-basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales, the tax
treatment of premium and amortization, the mark-to-market of futures and
forward contracts and adjustments relating to catastrophe bonds.
E. 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 $6,053 in underwriting commissions on the sale of
Class A shares during the year ended August 31, 2011.
F. 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, 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.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 59
G. Futures Contracts
The Fund may enter into futures transactions to hedge against changes in
interest rates, securities prices and currency exchange rates or to seek
to increase total return. Futures contracts are types of derivatives. All
futures contracts entered into by the Fund are traded on a futures
exchange. Upon entering into a futures contract, the Fund is required to
deposit with a broker an amount of cash or securities equal to the minimum
"initial margin" requirements of the associated futures exchange.
Subsequent payments for futures contracts ("variation margin") are paid or
received by the Fund, depending on the daily fluctuation in the value of
the contracts, and are recorded by the Fund as unrealized gains or losses.
When the contract is closed, the Fund realizes a gain or loss equal to the
difference between the opening and closing value of the contract. The use
of futures contracts involves, to varying degrees, elements of market and
counterparty risks, which may exceed the amounts recognized by the Fund.
Changes in value of the contracts may not directly correlate to the
changes in value of the underlying securities. These risks may decrease
the effectiveness of the Fund's hedging strategies and potentially result
in a loss. The average number of contracts open for the year ended August
31, 2011 was 34.
At August 31, 2011, open futures contracts were as follows.
--------------------------------------------------------------------------------
Number of
Contracts Settlement Unrealized
Type Long/(Short) Month Value Loss
--------------------------------------------------------------------------------
US 5 Yr Note (48) 9/11 $5,928,000 $ (216,000)
================================================================================
Total (48) $5,928,000 $ (216,000)
H. 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.
I. 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 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
60 Pioneer Short Term Income Fund | Annual Report | 8/31/11
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 value of the loaned
securities. If the required market value of the collateral is less than
the 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 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.
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 0.40% of
the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 0.90%, 1.80%, 1.80% and 0.79% of the average
daily net assets attributable to Class A, Class B, Class C and Class Y shares,
respectively. Expenses waived and reimbursed during the year ended August 31,
2011 are reflected on the Statement of Operations. These expense limitations are
in effect through January 1, 2012 for Class A, Class B, and Class C shares and
through June 1, 2012 for Class Y shares. There can be no assurance that PIM will
extend the expense limitation agreement for a class of shares beyond the dates
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
$3,366 in management fees, administrative costs and certain other reimbursements
payable to PIM at August 31, 2011.
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.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 61
For the year ended August 31, 2011, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $204,789
Class B 2,231
Class C 11,956
Class Y 7,479
--------------------------------------------------------------------------------
Total $226,455
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $27,462 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at August 31, 2011.
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 $1,677 in distribution fees payable to PFD at August 31, 2011.
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 12 months of purchase. Class B shares that are redeemed within three
years of purchase are subject to a CDSC at declining rates beginning at 2.00%,
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 Y shares. Proceeds
from the CDSCs are paid to PFD. For the year ended August 31, 2011, CDSCs in the
amount of $15,547 were paid to PFD.
62 Pioneer Short Term Income Fund | Annual Report | 8/31/11
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 year ended August 31, 2011, the Fund's expenses were
not reduced under such arrangements.
6. Forward Foreign Currency Contracts
At August 31, 2011, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of contracts open during
the year ended August 31, 2011 was $445,415. There were no open settlement
hedges at August 31, 2011. Open portfolio hedges at August 31, 2011 were as
follows:
---------------------------------------------------------------------------------------------
Net Net
Contracts to In Exchange Settlement Unrealized
Currency deliver For Date Value Loss
---------------------------------------------------------------------------------------------
NOK (Norwegian Krone) (1,550,000) $278,809 10/14/11 $(288,467) $(9,658)
7. Additional Disclosures about Derivative Instruments and Hedging
Activities:
Values of derivative instruments as of August 31, 2011 were as follows:
---------------------------------------------------------------------------------------
Derivatives Asset Derivatives 2011 Liabilities Derivatives 2011
---------------------------------------------------------------------------------------
Balance Sheet Balance Sheet
Location Value Location Value
---------------------------------------------------------------------------------------
Foreign Exchange Contracts Payables $ (9,658)
---------------------------------------------------------------------------------------
Futures Contracts Payables $ (216,000)*
---------------------------------------------------------------------------------------
Total $ (225,658)*
---------------------------------------------------------------------------------------
* Includes cumulative gain (loss) on futures as reported in the Notes to
Financial Statements. Only unsettled receivable/payable for variation
margin is included within the Statement of Assets and Liabilities.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 63
The effect of derivative instruments on the Statement of Operations for the year
ended August 31, 2011 was as follows:
----------------------------------------------------------------------------------------------
Change in
Location of Gain Realized Gain Unrealized
or (Loss) On or (Loss) Gain or (Loss)
Derivatives on Derivatives on Derivatives
Recognized Recognized Recognized
Derivatives in Income in Income in Income
----------------------------------------------------------------------------------------------
Foreign Exchange Net realized gain (loss) on forward $(29,615)
Contracts foreign currency contracts and other
assets and liabilities denominated in
foreign currencies
Foreign Exchange Change in unrealized gain (loss) on $ (31,845)
Contracts forward foreign currency contracts
and other assets and liabilities
denominated in foreign currencies
Futures Contracts Net realized gain (loss) on futures $(89,521)
contracts
Futures Contracts Change in net realized gain (loss) on $ (216,000)
futures contracts
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.
64 Pioneer Short Term Income Fund | Annual Report | 8/31/11
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders of
Pioneer Short Term Income Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Short Term Income Fund (the Fund), including the schedule of investments, as of
August 31, 2011, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of August 31, 2011, by correspondence with the custodian,
brokers and agent banks or by other appropriate auditing procedures where
replies from brokers and agent banks were not received. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Short Term Income Fund at August 31, 2011, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the five
years in the period then ended, in conformity with U.S. generally accepted
accounting principles.
/s/Ernst + Young LLP
Boston, Massachusetts
October 26, 2011
Pioneer Short Term Income Fund | Annual Report | 8/31/11 65
ADDITIONAL INFORMATION (unaudited)
The percentages of the Fund's ordinary income distributions that are exempt from
nonresident alien (NRA) tax withholding resulting from qualified interest income
and qualified short term gains were 92.28% and 0.0%, respectively.
66 Pioneer Short Term Income Fund | Annual Report | 8/31/11
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
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 Funds are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Funds voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at us.pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed on the following pages, together
with their principal occupations for at least the past five years. Trustees who
are interested persons of the Fund within the meaning of the 1940 Act are
referred to as Interested Trustees. Trustees who are not interested persons of
the Fund are referred to as Independent Trustees. Each of the Trustees serves as
a trustee of each of the 56 U.S. registered investment portfolios for which
Pioneer serves as investment adviser (the "Pioneer Funds"). The address for all
Trustees and all officers of the Fund is 60 State Street, Boston, Massachusetts
02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 67
Interested Trustees
--------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
--------------------------------------------------------------------------------
John F. Cogan, Jr. (85)* Chairman of the Board, Trustee since 2004.
Trustee and President Serves until a successor
trustee is elected or
earlier retirement or
removal.
--------------------------------------------------------------------------------
Daniel K. Kingsbury (53)* Trustee and Executive Trustee since 2007.
Vice President Serves until a successor
trustee is elected or
earlier retirement or
removal.
--------------------------------------------------------------------------------
Interested Trustees
------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation(s) Held by this Trustee
------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (85)* Non-Executive Chairman and a director of Pioneer Investment None
Management USA Inc. ("PIM-USA"); Chairman and a director of
Pioneer; Chairman and Director of Pioneer Institutional
Asset Management, Inc. (since 2006); Director of Pioneer
Alternative Investment Management Limited (Dublin);
President and a direc- tor of Pioneer Alternative Investment
Management (Bermuda) Limited and affiliated funds; Deputy
Chairman and a director of Pioneer Global Asset Management
S.p.A. ("PGAM") (until April 2010); Director of PIOGLOBAL
Real Estate Investment Fund (Russia) (until June 2006);
Director of Nano-C, Inc. (since 2003); Director of Cole
Management Inc. (since 2004); Director of Fiduciary
Counseling, Inc.; President and Director of Pioneer Funds
Distributor, Inc. ("PFD") (until May 2006); and President of
all of the Pioneer Funds; and Of Counsel, Wilmer Cutler
Pickering Hale and Dorr LLP
------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (53)* Director, CEO and President of PIM-USA (since February None
2007); Director and President of Pioneer and Pioneer
Institutional Asset Management, Inc. (since February 2007);
Executive Vice Presi- dent of all of the Pioneer Funds
(since March 2007); Director of PGAM (2007 - 2010); Head of
New Europe Division, PGAM (2000 - 2005); and Head of New
Markets Division, PGAM (2005 - 2007)
------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are
officers or directors of the Fund's investment adviser and certain of its
affiliates.
68 Pioneer Short Term Income Fund | Annual Report | 8/31/11
Independent Trustees
--------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
--------------------------------------------------------------------------------
David R. Bock (67) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
--------------------------------------------------------------------------------
Mary K. Bush (63) Trustee Trustee since 2004.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
--------------------------------------------------------------------------------
Independent Trustees
----------------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation(s) Held by this Trustee
----------------------------------------------------------------------------------------------------------------------------------
David R. Bock (67) Managing Partner, Federal City Capital Advisors (corporate advi- Director of Enterprise Com-
sory services company) (1997 - 2004 and 2008 - present); munity Investment, Inc.
Interim Chief Executive Officer, Oxford Analytica, Inc. (privately (privately held affordable
held research and consulting company) (2010); Executive Vice housing finance company)
President and Chief Financial Officer, I-trax, Inc. (publicly traded (1985 - 2010); Director of
health care services company) (2004 - 2007); and Executive Oxford Analytica, Inc. (2008 -
Vice President and Chief Financial Officer, Pedestal Inc. (internet- present); Director of the
based mortgage trading company (2000 - 2002) Swiss Helvetia Fund, Inc.
(closed-end fund) (2010 -
present); and Director of New
York Mortgage Trust (publicly
traded mortgage REIT)
(2004 - 2009)
----------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (63) Chairman, Bush International, LLC (international financial advi- Director of Marriott Interna-
sory firm) (1991 - present); Senior Managing Director, Brock tional, Inc. (2008 - present);
Capital Group, LLC (strategic business advisors) (2010 - Director of Discover Financial
present); Managing Director, Federal Housing Finance Board Services (credit card issuer
(oversight of Federal Home Loan Bank system) (1989 - 1991); and electronic payment ser-
Vice President and Head of International Finance, Federal vices) (2007 - present);
National Mortgage Association (1988 - 1989); U.S. Alternate Former Director of Briggs &
Executive Director, International Monetary Fund (1984 - 1988); Stratton Co. (engine manu-
Executive Assistant to Deputy Secretary of the U.S. Treasury, facturer) (2004 - 2009);
U.S. Treasury Department (1982 - 1984); and Vice President Former Director of UAL
and Team Leader in Corporate Banking, Bankers Trust Co. Corporation (airline holding
(1976 - 1982) company) (2006 - 2010);
Director of ManTech Interna-
tional Corporation (national
----------------------------------------------------------------------------------------------------------------------------------
Pioneer Short Term Income Fund | Annual Report | 8/31/11 69
Independent Trustees (continued)
--------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
--------------------------------------------------------------------------------
Mary K. Bush (continued)
--------------------------------------------------------------------------------
Benjamin M. Friedman (67) Trustee Trustee since 2008.
Serves until a successor
trustee is elected or
earlier retirement or
removal
--------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation(s) Held by this Trustee
---------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (continued) security, defense, and
intelligence technology firm)
(2006 - present); Member,
Board of Governors, Invest-
ment Company Institute
(2007 - present); Member,
Board of Governors, Indepen-
dent Directors Council
(2007 - present) Former
Director of Brady Corporation
(2000 - 2007); Former
Director of Mortgage Guaranty
Insurance Corporation
(1991 - 2006); Former
Director of Millennium Chemi-
cals, Inc. (commodity chemi-
cals) (2002 - 2005); Former
Director, R.J. Reynolds
Tobacco Holdings, Inc.
(tobacco) (1999 - 2005);
and Former Director of
Texaco, Inc. (1997 - 2001)
---------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (67) William Joseph Maier Professor of Political Economy, Harvard Trustee, Mellon Institutional
University (1972 - present) Funds Investment Trust and
Mellon Institutional Funds
Master Portfolio (oversaw 17
portfolios in fund complex)
(1989 - 2008)
---------------------------------------------------------------------------------------------------------------------------------
70 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
--------------------------------------------------------------------------------
Margaret B.W. Graham (64) Trustee Trustee since 2004.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
--------------------------------------------------------------------------------
Thomas J. Perna (60) Trustee Trustee since 2006.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
--------------------------------------------------------------------------------
Marguerite A. Piret (63) Trustee Trustee since 2004.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
--------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation(s) Held by this Trustee
----------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (64) Founding Director, Vice President and Corporate Secretary, The None
Winthrop Group, Inc. (consulting firm) (1982 - present);
Desautels Faculty of Management, McGill University (1999 -
present); and Manager of Research Operations and Organiza-
tional Learning, Xerox PARC, Xerox's Advance Research Center
(1990 - 1994)
----------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (60) Chairman and Chief Executive Officer, Quadriserv, Inc. (technol- Director, Broadridge Financial
ogy products for securities lending industry) (2008 - present); Solutions, Inc. (investor
private investor (2004 - 2008); and Senior Executive Vice Presi- communications and securi-
dent, The Bank of New York (financial and securities services) ties processing provider for
(1986 - 2004) financial services industry)
(2009 - present); and
Director, Quadriserv, Inc.
(2005 - present)
----------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (63) President and Chief Executive Officer, Newbury, Piret & Company, Director of New America High
Inc. (investment banking firm) (1981 - present) Income Fund, Inc. (closed-
end investment company)
(2004 - present); and mem-
ber, Board of Governors,
Investment Company Institute
(2000 - 2006)
----------------------------------------------------------------------------------------------------------------------------------
Pioneer Short Term Income Fund | Annual Report | 8/31/11 71
Fund Officers
--------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
--------------------------------------------------------------------------------
Christopher J. Kelley (46) Secretary Since 2010. Serves at
the discretion of the
Board.
--------------------------------------------------------------------------------
Carol B. Hannigan (50) Assistant Secretary Since 2010. Serves at
the discretion of the
Board.
--------------------------------------------------------------------------------
Thomas Reyes (48) Assistant Secretary Since 2010. Serves at
the discretion of the
Board.
--------------------------------------------------------------------------------
Mark E. Bradley (51) Treasurer Since 2008. Serves at
the discretion of the
Board.
--------------------------------------------------------------------------------
Luis I. Presutti (46) Assistant Treasurer Since 2004. Serves at
the discretion of the
Board.
--------------------------------------------------------------------------------
Gary Sullivan (53) Assistant Treasurer Since 2004. Serves at
the discretion of the
Board.
--------------------------------------------------------------------------------
Fund Officers
-------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation(s) Held by this Officer
-------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (46) Vice President and Associate General Counsel of Pioneer since None
January 2008 and Secretary of all of the Pioneer Funds since
June 2010; Assistant Secretary of all of the Pioneer Funds from
September 2003 to May 2010; and Vice President and Senior
Counsel of Pioneer from July 2002 to December 2007
-------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (50) Fund Governance Director of Pioneer since December 2006 and None
Assistant Secretary of all the Pioneer Funds since June 2010;
Manager - Fund Governance of Pioneer from December 2003 to
November 2006; and Senior Paralegal of Pioneer from January
2000 to November 2003
-------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (48) Counsel of Pioneer since June 2007 and Assistant Secretary of None
all the Pioneer Funds since June 2010; and Vice President and
Counsel at State Street Bank from October 2004 to June 2007
-------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (51) Vice President - Fund Accounting, Administration and Controller- None
ship Services of Pioneer; Treasurer of all of the Pioneer Funds
since March 2008; Deputy Treasurer of Pioneer from March 2004
to February 2008; and Assistant Treasurer of all of the Pioneer
Funds from March 2004 to February 2008
-------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (46) Assistant Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
-------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (53) Fund Accounting Manager - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
-------------------------------------------------------------------------------------------------------------------------
72 Pioneer Short Term Income Fund | Annual Report | 8/31/11
--------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
--------------------------------------------------------------------------------
David F. Johnson (31) Assistant Treasurer Since 2009. Serves at
the discretion of the
Board.
--------------------------------------------------------------------------------
Jean M. Bradley (58) Chief Compliance Since 2010. Serves at
Officer the discretion of the
Board.
--------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation(s) Held by this Officer
------------------------------------------------------------------------------------------------------------------------
David F. Johnson (31) Fund Administration Manager - Fund Accounting, Administration None
and Controllership Services since November 2008; Assistant
Treasurer of all of the Pioneer Funds since January 2009; and
Client Service Manager - Institutional Investor Services at State
Street Bank from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (58) Chief Compliance Officer of Pioneer and of all the Pioneer Funds None
since March 2010; Director of Adviser and Portfolio Compliance
at Pioneer since October 2005; and Senior Compliance Officer
for Columbia Management Advisers, Inc. from October 2003 to
October 2005
-----------------------------------------------------------------------------------------------------------------------
Pioneer Short Term Income Fund | Annual Report | 8/31/11 73
This page for your notes.
74 Pioneer Short Term Income Fund | Annual Report | 8/31/11
This page for your notes.
Pioneer Short Term Income Fund | Annual Report | 8/31/11 75
This page for your notes.
76 Pioneer Short Term Income Fund | Annual Report | 8/31/11
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: us.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 (see attachment);
(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.
Audit Fees
Fees for audit services provided to the Fund, including fees
associated with the annual filing of its Form N-1A, totaled
approximately $38,686 in 2011 and $38,686 in 2010.
(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.
Audit-Related Fees
There were no fees for audit-related services
provided to the Fund during the fiscal years ended August
31, 2011 and 2010.
(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.
Tax Fees
Fees for tax compliance services, primarily for tax returns,
totaled approximately $8,290 and $8,290 in 2011 and
2010, respectively.
(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.
Other Fees
There were no fees for other services
provided to the Fund during the fiscal years ended August
31, 2011 and 2010.
(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.
Non-Audit Services
Beginning with non-audit service contracts entered into on
or after May 6, 2003, the effective date of the new SEC
pre-approval rules, the Fund's audit committee is required
to pre-approve services to affiliates defined by SEC rules
to the extent that the services are determined to have a
direct impact on the operations or financial reporting of the
Fund. For the years ended August 31, 2011 and 2010,
there were no services provided to an affiliate that required
the Fund's audit committee pre-approval.
(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.
The aggregate non-audit fees for the Fund and affiliates, as
previously defined, totaled approximately $8,290 in 2011
and $8,290 in 2010.
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.
(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 Short Term Income Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date October 28, 2011
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 October 28, 2011
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date October 28, 2011
* Print the name and title of each signing officer under his or her signature.