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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, 2011 through February 29, 2012
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer Short Term Income Fund
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Semiannual Report | February 29, 2012
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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 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 41
Notes to Financial Statements 49
Approval of Investment Advisory Agreement 58
Trustees, Officers and Service Providers 62
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 1
President's Letter
Dear Shareowner,
Last year was difficult for investors, although bond investors experienced a
much smoother ride than equity investors. The year was characterized by
higher-than-usual volatility in the equity markets triggered by a series of
major events, including the nuclear disaster in Japan, the European financial
crisis, and political gridlock in Washington D.C. The Standard & Poor's 500
Index dropped 21% from its May high to its October low, only to finish the year
virtually flat. The Barclays Capital Aggregate Bond Index, by contrast, was up
7.8% for the year.
As we ended 2011, some positive trends were developing in the U.S. economy.
Consumption, the most important driver of economic growth, rose 2.3% in the
fourth quarter, up nicely from 0.7% in the second and third quarters. Year-
over-year retail sales grew 4% over the last six months of 2011, and auto sales
reached their highest level of the year. There were improvements in broad
economic data, including employment and rising consumer confidence. Initial
jobless claims trended in the right direction, with the final weekly report of
2011 falling to a three-and-a-half year low.
While we expect moderate economic growth in the U.S. in 2012, there are still
reasons for investors to remain cautious. The central issue remains Europe,
which faces weak or possibly declining economic growth. The greatest risk to
our outlook for 2012 is the possible contagion effects of the European
sovereign-debt and banking crises. The European Union must find a comprehensive
solution that includes ensuring funding for troubled sovereigns, achieving
workable fiscal and economic integration, and improving labor competitiveness
in southern Europe. Further setbacks in Europe could lead to further market
volatility, while tangible progress could help the equity markets make up last
year's lackluster results.
Pioneer's investment professionals focus on finding good opportunities to
invest in both equity and bond markets using the same disciplined investment
approach we have used since 1928. Our strategy 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
2 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
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.
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.
*Diversification does not assure a profit or protect against loss in a
declining market.
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 | Semiannual Report | 2/29/12 3
Portfolio Management Discussion | 2/29/12
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 six-month period ended February 29, 2012. Mr.
Schlanger, vice president and portfolio manager at Pioneer, and Mr. Melchreit,
vice president and portfolio manager at Pioneer, are responsible for the
day-to-day management of the Fund.
Q How would you describe the market environment for fixed-income investors
during the six-month period ended February 29, 2012?
A As the period opened in the summer of 2011, credit markets were focused on
headlines coming out of Europe with respect to the sovereign-debt crisis
there. The concern at the time was that the problems would spread from
Ireland and Greece to other nations, including Spain, Portugal and Italy,
with potentially vast repercussions on the banking system. Adding to
unease, investors also monitored worrisome signs of slowing economic growth
in the United States. Despite the political brinksmanship surrounding
raising the U.S. debt ceiling in August 2011 and a subsequent downgrade of
the country's credit rating by Standard & Poor's, U.S. Treasury securities
actually were the principal beneficiary of the uncertain economic backdrop
as investors continued to view those securities as the safest alternative.
As 2011 drew to a close, however, investors became more comfortable that
the United States was not on the verge of heading back into recession. The
U.S. Federal Reserve Board (the Fed) was partly responsible for the
improved sentiment, as the central bank had in September, through its
"Operation Twist," initiated bond purchases with the aim of keeping
longer-term interest rates low. U.S. employment and household income data
strengthened late in 2011, suggesting that the foundation was being built
for sustained economic growth. Further spurring confidence in business
conditions, the Fed announced in late January 2012 that it intended to keep
short-term rates anchored near zero through late 2014. The net result of
the multiple positive developments was strong outperformance by
credit-sensitive sectors over the first two months of 2012, as investors'
fears of a return to recession largely dissipated.
With short-term rates anchored near zero and the Fed engaging in bond
purchases farther out on the yield curve, interest rates on securities with
maturities of more than two years generally fell during the six-month
period. For example, while the two-year Treasury yield rose by 10 basis
points (0.10%) during the period, from 0.20% to 0.30%, the five-year
Treasury yield fell by 10 basis points, from 0.96% to 0.86%, and the
10-year Treasury yield fell by 25 basis points (0.25%) from 2.23% to 1.98%.
4 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
Q How did the Fund perform in that environment during the six months ended
February 29, 2012?
A Pioneer Short Term Income Fund's Class A shares returned 1.89% at net asset
value during the six months ended February 29, 2012, while the Fund's
benchmark, the Barclays Capital 1-to-3 Year Government/Credit Index (the
Barclays Index), returned 0.40%. During the same period, the average return
of the 257 mutual funds in Lipper's Short Investment-Grade Debt Funds
category was 1.15%. As of February 29, 2012, the Fund's SEC yield was 2.33%
with fees waived and 1.94% without fees waived.
Q Could you review your principal investment strategies in managing the Fund
during the six-month period ended February 29, 2012, and the effects of
your investment decisions on the Fund's performance?
A As we always do when managing the Fund, we focused on identifying relative
value among fixed-income sectors and carefully evaluating the risk/
reward profiles of individual issues within each sector. In that vein, we
maintained very light Fund exposure to U.S. Treasury issues, reflecting our
view that Treasuries have not been valued attractively compared with
credit-sensitive sectors given their negative "real" yields (the yield
after taking inflation into account). That decision helped the Fund's
returns relative to the Barclays Index during the period, as
credit-sensitive sectors outperformed for the full six months ended
February 29, 2012.
In broad terms, the largest contributor to the Fund's relative return was a
substantial portfolio weighting of more than half of the Fund's assets to
sectors that are not included in the Barclays Index. They included a
variety of "pass-through" sectors, such as residential and commercial
mortgage-backed securities, as well as asset-backed securities like those
backed by home equity loans, auto loans and credit card receivables. The
Fund's second-largest exposure during the period was to corporate debt
issues, which also outperformed Treasuries during the six-month period.
Within corporates, the Fund's overall emphasis on lower-rated securities,
especially among industrial issuers, added to benchmark-relative
performance. An overweighting of financial issues also helped the Fund's
returns during the period.
On the downside, issuer selection within financials was a modest constraint
on the Fund's returns. While the Fund did not hold a position in MF Global,
the portfolio's exposure to investment banking-related holdings suffered in
the wake of headlines pursuant to the firm's bankruptcy.
With respect to the Fund's yield curve positioning, we maintained a
somewhat "barbelled" posture, with the portfolio's very short-term holdings
balanced by exposure to maturities in the five-year range. The strategy
worked well for the Fund during the period as rates fell and prices rose
farther out on the curve. In implementing the Fund's barbell strategy, we
substituted
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 5
municipal variable rate demand notes for U.S. Treasuries, which further
helped benchmark-relative returns given the very low yields available on
Treasuries.
The Fund's overall duration (a standard measure of price sensitivity to
changes in market interest rates) at the end of February 2012 was 1.22
years, compared with 1.89 years for the Barclays Index. The Fund maintained
a below-market overall duration and corresponding interest-rate sensitivity
throughout the six-month period. The Fund's duration positioning was a
modest constraint on overall returns, as rates fell over the full course of
the six-month period.
Q What is your assessment of the current climate for fixed-income investing?
A While U.S. economic growth appears to be trending in the 2% to 3% range, with
central banks around the globe acting to ensure high levels of liquidity,
we believe there is some potential for growth to surprise on the upside.
The jobs picture has brightened to a degree, leaving improvement in the
housing situation as the last remaining lynchpin necessary for investors to
anticipate a more robust overall recovery. Moreover, even absent factors
that would lead to dramatic interest rate increases, given the current
extraordinarily low rate levels, we believe there is more room for rates to
rise than there is for them to fall. As a result, we are comfortable with
maintaining the Fund's overall duration and interest-rate sensitivity at a
level below that of the benchmark Barclays Index.
The Fed has made clear its intention to maintain very low short rates for
the foreseeable future. As this is a short-term portfolio, we typically
focus the Fund's holdings on issues with maturities ranging from overnight
commercial paper to the five-year range. With the zero-to-five year
positions on the yield curve still relatively steep, we expect to maintain
the Fund's somewhat barbelled positioning, with substantial portfolio
exposure to five-year issues balanced by positions in short-term,
floating-rate paper. We believe 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
investment guidelines.
With U.S. Treasury yields at very low levels, we expect to continue to look
at other, more credit-sensitive sectors for opportunities. We view current
fundamentals as supportive of corporate issues, given a strengthening
economy, high levels of cash on company balance sheets and a favorable
financing environment. However, with credit spreads having narrowed closer
to historical norms, we view corporate valuations as a neutral factor
overall, and we are being selective in adding to the Fund's
credit-sensitive exposure. (Credit spreads represent the differences in
yield between Treasuries and other fixed-income securities with similar
maturities.)
6 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
We will continue to monitor macroeconomic factors that may have the
potential to affect the markets, while remaining principally focused on
adding value to the Fund at the level of individual security selection. As
always, we will seek to provide a high level of current income for
investors, while striving to reduce the effect of interest rate changes on
the Fund's share price.
Please refer to the Schedule of Investments on pages 16-40 for a full listing
of Fund securities.
When interest rates rise, the prices of fixed-income securities in the Fund
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of 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.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 7
Portfolio Summary | 2/29/12
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Government Securities 35.4%
U.S. Corporate Bonds 24.1%
Collateralized Mortgage Obligations 20.7%
Asset Backed Securities 13.0%
Temporary Cash Investments 3.2%
Municipal Bonds 2.0%
Senior Floating Rate Loans 1.5%
Foreign Government Bonds 0.1%
Portfolio Quality
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on S&P ratings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
AAA 41.9%
AA 9.4%
A 15.0%
BBB 18.0%
BB 6.4%
B 4.0%
CCC 0.6%
Not Rated 4.1%
Cash and equivalents 0.6%
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 Bill, 0.125%, 9/30/13 5.08%
2. Fannie Mae Grantor Trust, Floating Rate Note, 10/25/40 2.26
3. Residential Asset Securities, 0.66%, 5/25/33 1.04
4. New Century Home Equity Loan Trust, 0.5126%, 6/25/35 0.99
5. Lehman ABS Manufactured Housing Contract Trust, 0.648%, 6/15/33 0.83
6. Government National Mortgage Association, Floating Rate Note, 1/20/16 0.81
7. Banc of America Mortgage, Floating Rate Note, 9/25/33 0.77
8. New Jersey Economic Development Authority, 1.247%, 6/15/13 0.77
9. Thornburg Mortgage Securities Trust, Floating Rate Note, 9/25/44 0.76
10. Impac Cmb Trust, Floating Rate Note, 9/25/34 0.74
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
8 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
Prices and Distributions | 2/29/12
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/29/12 8/31/11
--------------------------------------------------------------------------------
A $9.67 $9.64
--------------------------------------------------------------------------------
B $9.66 $9.63
--------------------------------------------------------------------------------
C $9.64 $9.62
--------------------------------------------------------------------------------
Y $9.65 $9.63
--------------------------------------------------------------------------------
Distributions per Share: 9/1/11-2/29/12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.1508 $ -- $ --
--------------------------------------------------------------------------------
B $0.1078 $ -- $ --
--------------------------------------------------------------------------------
C $0.1150 $ -- $ --
--------------------------------------------------------------------------------
Y $0.1679 $ -- $ --
--------------------------------------------------------------------------------
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 10-13.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 9
Performance Update | 2/29/12 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 February 29, 2012)
-------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
-------------------------------------------------------------------------------
Life-of-Class
(7/8/04) 3.36% 3.02%
5 Years 3.76 3.24
1 Year 2.35 -0.22
-------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
-------------------------------------------------------------------------------
Gross Net
-------------------------------------------------------------------------------
0.99% 0.90%
-------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Short Term Barclays Capital One- to Three-Year
Income Fund Government/Credit Index
7/04 $ 9,750 $10,000
2/05 $ 9,816 $10,062
2/06 $ 9,986 $10,294
2/07 $10,438 $10,810
2/08 $10,960 $11,732
2/09 $10,504 $12,009
2/10 $11,774 $12,581
2/11 $12,264 $12,830
2/12 $12,552 $13,055
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 1/1/13 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.
10 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
Performance Update | 2/29/12 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 February 29, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(7/8/04) 2.45% 2.45%
5 Years 2.81 2.81
1 Year 1.43 -0.55
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.87% 1.80%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Short Term Barclays Capital One- to Three-Year
Income Fund Government/Credit Index
7/04 $10,000 $10,000
2/05 $10,031 $10,062
2/06 $10,121 $10,294
2/07 $10,489 $10,810
2/08 $10,905 $11,732
2/09 $10,355 $12,009
2/10 $11,516 $12,581
2/11 $11,877 $12,830
2/12 $12,047 $13,055
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 1/1/13 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.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 11
Performance Update | 2/29/12 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 February 29, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(7/8/04) 2.52% 2.52%
5 Years 2.91 2.91
1 Year 1.49 1.49
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.67% 1.67%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Short Term Barclays Capital One- to Three-Year
Income Fund Government/Credit Index
7/04 $10,000 $10,000
2/05 $10,042 $10,062
2/06 $10,110 $10,294
2/07 $10,486 $10,810
2/08 $10,920 $11,732
2/09 $10,379 $12,009
2/10 $11,537 $12,581
2/11 $11,925 $12,830
2/12 $12,102 $13,055
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.
12 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
Performance Update | 2/29/12 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 February 29, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(7/8/04) 3.70% 3.70%
5 Years 4.05 4.05
1 Year 2.62 2.62
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.54% 0.54%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Short Term Barclays Capital One- to Three-Year
Income Fund Government/Credit Index
7/04 $5,000,000 $5,000,000
2/05 $5,057,307 $5,031,162
2/06 $5,156,324 $5,146,787
2/07 $5,414,585 $5,404,881
2/08 $5,701,140 $5,865,962
2/09 $5,471,510 $6,004,495
2/10 $6,157,941 $6,290,306
2/11 $6,436,466 $6,415,007
2/12 $6,604,899 $6,527,462
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.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 13
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 September 1, 2011, through February 29, 2012.
--------------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 9/1/11
--------------------------------------------------------------------------------------
Ending Account Value $1,018.90 $1,014.40 $1,014.10 $1,019.70
(after expenses)
on 2/29/12
--------------------------------------------------------------------------------------
Expenses Paid $ 4.52 $ 9.02 $ 8.41 $ 2.91
During Period*
--------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.80%,
1.68% and 0.58% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 182/366 (to reflect the one-half year period).
14 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
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 September 1, 2011, through February 29, 2012.
--------------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 9/1/11
--------------------------------------------------------------------------------------
Ending Account Value $1,020.39 $1,015.91 $1,016.51 $1,021.98
(after expenses)
on 2/29/12
--------------------------------------------------------------------------------------
Expenses Paid $ 4.52 $ 9.02 $ 8.42 $ 2.92
During Period*
--------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.80%,
1.68% and 0.58% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 182/366 (to reflect the one-half year period).
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 15
Schedule of Investments | 2/29/12 (unaudited)
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 14.4%
AUTOMOBILES & COMPONENTS -- 1.6%
Auto Parts & Equipment -- 0.5%
1,000,000 AAA/NR Ford Auto Securitization, 2.431%,
11/17/14 $ 1,018,331
-----------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 1.1%
567,000 AA-/Aa2 AmeriCredit Automobile Receivables Trust,
6.24%, 6/8/16 $ 625,625
100,000 BBB/Baa1 AmeriCredit Automobile Receivables Trust,
4.04%, 7/10/17 101,037
100,000 AA+/Aaa AmeriCredit Automobile Receivables Trust,
9.79%, 4/15/14 107,042
107,561 A/NR Santander Drive Auto Receivables Trust,
1.89%, 5/15/13 106,598
285,000 NR/Aa1 Santander Drive Auto Receivables Trust,
2.44%, 1/15/16 286,436
432,388 BBB/NR Santander Drive Auto Receivables Trust,
3.35%, 6/15/17 431,848
500,000 A/A1 Santander Drive Auto Receivables Trust,
3.78%, 11/15/17 500,802
------------
$ 2,159,388
------------
Total Automobiles & Components $ 3,177,719
-----------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 0.5%
Food Retail -- 0.5%
715,000 BBB-/Baa1 Dominos Pizza Master Issuer LLC, 5.261%,
4/25/37 716,341
200,000 BB/Aaa Dominos Pizza Master Issuer LLC, 7.629%,
4/25/37 200,422
------------
Total Food & Drug Retailing $ 916,763
-----------------------------------------------------------------------------------------------------
BANKS -- 7.1%
Diversified Banks -- 0.2%
140,919 0.35 AAA/Aa1 Wells Fargo Home Equity Trust, Floating
Rate Note, 4/25/37 $ 136,444
158,815 AAA/NR Wells Fargo Home Equity Trust, 0.6415%,
12/25/35 151,511
------------
$ 287,955
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 6.9%
15,472 0.44 A+/Aa1 ACE 2005-HE7 A2C, Floating Rate Note,
11/25/35 $ 15,394
164,451 0.46 AAA/Aaa Ameriquest Mortgage Securities, Inc.,
Floating Rate Note, 8/25/35 157,544
448,395 AAA/Aa1 Ameriquest Mortgage Securities, Inc.,
0.5625%, 11/25/34 401,242
504,175 0.81 AAA/Aaa Bayview Financial Acquisition, Floating
Rate Note, 5/28/44 465,194
The accompanying notes are an integral part of these financial statements.
16 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
201,088 0.83 AAA/Aaa Bayview Financial Acquisition, Floating
Rate Note, 8/28/44 $ 192,740
412,249 AA/Aa2 Bear Stearns Asset Backed Securities
Trust, 0.8271%, 6/25/35 379,070
124,682 0.37 BB+/Baa1 Bear Stearns Asset Backed Security,
Floating Rate Note, 12/25/36 122,855
300,000 BB/A2 Bear Stearns Asset Backed Securities
Trust, 1.244%, 10/25/34 203,774
415,777 4.66 AAA/A1 Bear Stearns Asset Backed Securities
Trust, Floating Rate Note, 12/25/36 380,019
423,935 NR/A1 Bombardier Capital Mortgage
Securitization Corp., 6.65%, 4/15/28 444,316
47,116 0.31 BBB+/Ba1 Carrington Mortgage Loan Trust, Floating
Rate Note, 1/25/37 46,801
52,008 0.49 AAA/Aa1 Carrington Mortgage Loan Trust, Floating
Rate Note, 12/25/35 51,612
1,183,228 0.67 AA+/Aa1 Citigroup Mortgage Loan Trust, Floating
Rate Note, 7/25/35 1,156,588
452,933 AAA/Aa3 Citigroup Mortgage Loan Trust, Inc.,
0.6615%, 8/25/35 421,755
600,000 AA/NR CNH Wholesale Master NoteTrust,
8.7783%, 7/15/15 616,968
318,317 0.31 CCC/Caa2 Countrywide Asset Backed Certificates,
Floating Rate Note, 4/25/32 150,494
237,658 0.80 AAA/Baa2 Countrywide Asset-Backed Certificates,
Floating Rate Note, 1/25/36 224,504
221,777 0.63 A/Ba1 Countrywide Asset-Backed Certificates,
Floating Rate Note, 7/25/37 212,753
406,305 5.07 AAA/B2 Countrywide Asset-Backed Certificates,
Floating Rate Note, 12/25/35 366,420
388,901 BBB/Baa3 Countrywide Home Equity Loan Trust,
0.5371%, 11/15/28 371,354
140,404 5.68 BB/Ba1 CWL 2006-15 A2, Floating Rate Note,
10/25/46 137,901
1,050,000 AAA/Aa2 First NLC Trust, 0.74719%, 9/25/35 980,622
160,959 NR/Aa2 Greenpoint Manufactured Housing, 7.59%,
11/15/28 162,741
64,344 AA+/Baa2 GSAA Trust, 0.47625%, 6/25/35 62,568
75,423 0.66 A/A2 GSAMP Trust, Floating Rate Note,
3/25/35 71,241
13,805 0.00 AAA/Aaa GSAMP Trust, Floating Rate Note,
8/25/36 13,684
631,199 A+/B1 HEMT 2004-6 M2, 5.321%, 4/25/35 435,241
109,021 BB/A2 IXIS Real Estate Capital Trust, 0.5526%,
2/25/36 92,945
160,663 AAA/Aaa Leaf II Receivables, 3.45%, 11/20/12 160,309
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 17
Schedule of Investments | 2/29/12 (unaudited) (continued)
------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
1,703,844 AA+/A2 Lehman ABS Manufactured Housing
Contract Trust, 0.648%, 6/15/33 $ 1,627,086
461,743 CCC+/Caa3 Local Insight Media Finance LLC, 5.88%,
10/23/37 175,462
550,000 BBB+/Baa3 Madison Avenue Manufactured Housing,
2.4626%, 3/25/32 489,688
146,785 AAA/B1 Morgan Stanley Home Equity Loan Trust,
0.5326%, 9/25/35 115,032
260,766 0.45 AAA/Aa3 Option One Mortgage Loan Trust, Floating
Rate Note, 11/25/35 247,227
222,310 0.32 BBB/Aa3 Option One Mortgage Loan Trust, Floating
Rate Note, 2/25/38 218,044
761,886 AA/Baa2 Popular ABS Mortgage Pass Through Trust,
5.181%, 9/25/34 511,891
109,670 0.58 AAA/Aaa RAAC Series, Floating Rate Note, 6/25/35 109,108
237,750 0.67 AA+/A3 RASC 2005-KS7 M1, Floating Rate Note,
8/25/35 226,849
103,058 1.21 BBB-/Ba2 SAST 2002-1 M1, Floating Rate Note,
1/25/32 71,085
158,813 0.34 AA/Aaa Structured Asset Securities Co., Floating
Rate Note, 1/25/37 156,597
495,349 4.44 B+/Baa2 Structured Asset Securities Co., Floating
Rate Note, 2/25/35 493,882
123,054 BBB/Aa1 Structured Asset Securities Corp.,
0.2626%, 2/25/37 119,322
245,752 0.78 AA/A3 SVHE 2005-3 M2, Floating Rate Note,
6/25/35 233,040
413,526 AAA/A2 Wachovia Mortgage Loan Trust, 0.5826%,
10/25/35 392,911
------------
$ 13,685,873
------------
Total Banks $ 13,973,828
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.2%
Asset Management & Custody Banks -- 0.2%
499,680 0.65 B/B3 SPSAC 1998-1 A1, Floating Rate Note,
3/25/28 $ 339,405
------------------------------------------------------------------------------------------------------
Consumer Finance -- 1.3%
500,000 BBB+/Baa2 Citibank Credit Card Issuance Trust,
6.3%, 6/20/14 $ 508,450
200,000 NR/A1 Navistar Financial Corp., Owner Trust,
4.08%, 3/19/18 200,170
800,000 NR/A2 Navistar Financial Dealer Note Master
Trust, 1.99322%, 11/25/16 800,006
206,296 AA/Baa1 RFMS2 2003-HI1 M1, 5.27%, 4/25/28 191,728
380,000 0.63 AAA/Aaa SLMA 2004-10 A6B, Floating Rate Note,
4/27/26 365,940
The accompanying notes are an integral part of these financial statements.
18 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
Consumer Finance -- (continued)
560,340 0.49 AA+/A3 Specialty Underwriting & Residual,
Floating Rate Note, 9/25/36 $ 551,342
------------
$ 2,617,636
-----------------------------------------------------------------------------------------------------
Diversified Finance Services -- 1.5%
112,937 0.00 AA/Aa2 Asset Backed Securities Corp., Floating
Rate Note, 4/25/35 $ 110,054
350,000 A/NR DT Auto Owner Trust, 3.46%, 1/15/14 350,886
325,000 BBB/NR DT Auto Owner Trust, 4.89%, 1/17/17 328,333
51,764 AA/NR DT Auto Owner Trust, 5.92%, 10/15/15 52,600
363,000 AAA/Aaa Home Equity Asset Trust, 0.75719%,
11/25/35 355,105
181,410 AA/A1 Home Equity Asset Trust, 0.76875%,
8/25/35 173,911
225,753 0.77 AAA/A1 Home Equity Asset Trust, Floating Rate
Note, 7/25/36 218,177
77,450 0.33 B-/Ba1 JPMorgan Mortgage Acquisition, Floating
Rate Note, 5/25/24 77,352
471,925 AAA/A2 Sierra Receivables Funding Co., 5.84%,
5/20/18 475,230
570,657 A+/Baa3 Sierra Receivables Funding Co.,
1.18625%, 9/20/19 560,136
367,564 AAA/Aaa SVO VOI Mortgage Corp., 5.25%, 2/20/21 375,165
------------
$ 3,076,949
-----------------------------------------------------------------------------------------------------
Specialized Finance -- 2.2%
665,982 0.59 AAA/Aaa Aegis Asset Backed Securities, Floating
Rate Note, 9/25/34 $ 599,201
473,859 0.53 AA/Baa3 Aegis Asset Backed Securities, Floating
Rate Note, 3/25/12 408,929
698,709 AAA/Aaa Conseco Finance, Inc., 7.05%, 4/15/32 714,281
130,958 6.64 AAA/Aaa Conseco Finance, Inc., Floating Rate Note,
11/15/32 132,086
397,595 5.32 NR/Baa1 Irwin Home Equity Corp., Floating Rate
Note, 6/25/35 376,502
25,863 AA+/Aa1 Master Asset Backed Security Trust,
0.67375%, 5/25/35 25,243
162,497 0.61 AAA/Aaa New Century Home Equity Loan, Floating
Rate Note, 3/25/35 149,253
1,975,107 AAA/Aa1 New Century Home Equity Loan Trust,
0.5126%, 6/25/35 1,936,171
------------
$ 4,341,666
------------
Total Diversified Financials $ 10,375,656
-----------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $29,626,536) $ 28,443,966
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 19
Schedule of Investments | 2/29/12 (unaudited) (continued)
--------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
--------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 28.1%
BANKS -- 19.3%
Thrifts & Mortgage Finance -- 19.3%
390,000 NR/NR American General Mortgage Loan,
5.75%, 9/25/48 $ 395,249
472,731 0.71 NR/A1 Banc of America Alternative Loan Trust,
Floating Rate Note, 12/25/33 449,427
367,205 NR/B2 Banc of America Alternative Loan Trust,
5.25%, 5/25/19 372,909
133,246 BB/B2 Banc of America Fund,
0.2658%, 5/20/47 131,737
172,192 CCC/B1 Banc of America Fund, 5.75%, 10/25/35 173,595
152,624 AAA/Aaa Bayview Commercial Asset Trust,
2.25625%, 4/25/38 151,457
3,008,847 AAA/Ba3 Bayview Commercial Asset Trust,
2.65868%, 7/25/37 216,035
2,109,544 AA/Ba3 Bayview Commercial Asset Trust,
2.83149%, 9/25/37 195,133
123,087 3.31 AAA/A2 Bear Stearns Adjustable Rate Mortgage
Trust, Floating Rate Note, 11/25/34 120,767
721,149 AAA/Aaa Cendant Mortgage Corp.,
6.25%, 3/25/32 719,129
2,873 5.73 AAA/Aaa Citigroup Commercial Mortgage, Floating
Rate Note, 3/15/49 2,873
230,779 A+/Aaa Citigroup Commercial Mortgage Trust,
0.4183%, 4/15/22 217,810
340,764 AAA/Aa2 CMLTI 2003-UP3 A1, 7.0%, 9/25/33 354,843
265,866 3.08 CC/NR CMLTI 2005-1 2A1A, Floating Rate Note,
4/25/35 171,135
312,916 NR/NR CMLTI 2005-9 2SX2, 5.5%, 11/25/35 43,881
72,857 1.18 NR/WR CMOT 44 F, Floating Rate Note, 7/1/18 73,840
539,257 AAA/Aaa Commercial Mortgage Pass Through
Certificates, 0.31875%, 12/15/20 524,661
370,430 A+/A1 Commercial Mortgage Pass Through
Certificates, 0.39875%, 6/15/22 360,104
373,663 0.71 B-/NR Countrywide Alternative Loan Trust,
Floating Rate Note, 8/25/18 348,500
381,413 0.71 AAA/Ba1 Countrywide Alternative Loan Trust,
Floating Rate Note, 9/25/34 364,565
604,947 AAA/B2 Countrywide Alternative Loan Trust,
4.75%, 10/25/33 609,654
1,359,029 BB/NR Countrywide Home Loans, Inc.,
5.5%, 10/25/32 1,377,120
429,844 1.51 AAA/NR Deutsche Mortgage Securities, Inc.,
Floating Rate Note, 10/25/47 429,844
The accompanying notes are an integral part of these financial statements.
20 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
163,402 AAA/Aa3 Downey Savings & Loan,
0.83625%, 7/19/44 $ 116,997
23,000,000 BBB/A3 Extended Stay America Trust,
1.165%, 1/5/16 217,672
173,143 CCC/NR First Horizon Asset Securities, Inc.,
6.0%, 5/25/36 163,849
86,029 2.75 AAA/Aa1 First Horizon Mortgage Pass-Through Trust,
Floating Rate Note, 2/25/34 82,366
180,870 AAA/Aaa First Union-Lehman Brothers-Bank of
America, 6.778%, 11/18/35 185,295
182,072 AA+/Aaa GE Business Loan Trust,
0.6165%, 4/15/31 170,228
342,326 AA/Aaa GE Business Loan Trust,
0.4765%, 5/15/32 307,502
445,000 Aa3/Aa3 GE Capital Commercial Mortgage Corp.,
5.704%, 7/10/37 452,135
250,000 5.31 BBB+/Baa2 GMAC Commercial Mortgage Securities,
Inc., Floating Rate Note, 5/10/36 245,653
150,000 5.30 B+/NR GMAC Commercial Mortgage Securities,
Inc., Floating Rate Note, 5/10/40 138,145
250,000 AAA/Aaa GS Mortgage Securities Corp., II,
1.26008%, 3/6/20 245,900
350,000 NR/NR GS Mortgage Securities Corp., II,
4.209%, 2/10/21 335,195
295,022 AAA/Ba3 GSR Mortgage Loan Trust,
4.1408%, 6/25/34 287,280
415,180 AAA/NR GSR Mortgage Loan Trust,
2.5125%, 8/25/33 405,782
299,194 BB+/NR GSR Mortgage Loan Trust,
5.25%, 7/25/35 286,777
499,107 NR/A3 GSR Mortgage Loan Trust, 5.5%, 3/25/35 499,882
624,100 2.71 AAA/BB GSR Mortgage Loan Trust, Floating Rate
Note, 9/25/35 565,745
63,204 2.03 CCC/C Impac Cmb Trust, Floating Rate Note,
11/25/34 19,333
1,846,641 0.87 AAA/Baa2 Impac Cmb Trust, Floating Rate Note,
9/25/34 1,442,805
236,286 NR/Ba1 JPMorgan Chase Commercial Mortgage
Securities Corp., 0.5465%, 11/15/18 203,314
250,000 A-/Aa3 JPMorgan Chase Commercial Mortgage
Securities Corp., 0.34205%, 5/15/47 229,629
400,686 NR/Aaa JPMorgan Chase Commercial Mortgage
Securities Corp., 5.45%, 12/12/43 413,681
904,826 NR/Aaa JPMorgan Chase Commercial Mortgage
Securities Corp., 5.819%, 6/12/43 934,153
409,694 AAA/A2 JPMorgan Mortgage Trust,
2.657%, 2/25/34 412,004
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 21
Schedule of Investments | 2/29/12 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
42,179 AAA/A3 JPMorgan Mortgage Trust,
4.479228%, 2/25/35 $ 42,386
179,402 A-/NR JPMorgan Mortgage Trust, 5.5%, 1/25/35 179,545
631,732 2.11 AAA/Aa3 JPMorgan Mortgage Trust, Floating Rate
Note, 10/25/33 637,692
144,176 2.59 CCC/B1 JPMorgan Mortgage Trust, Floating Rate
Note, 11/25/35 141,567
162,526 NR/B2 JPMorgan Mortgage Trust, 6.0%, 8/25/36 16,172
466,761 0.75 BB/B2 LBSBC 2005- 2 A M2, Floating Rate Note,
9/25/30 179,703
650,000 BBB+/NR LB-UBS Commercial Mortgage Trust,
5.616%, 10/15/35 639,933
176,747 AAA/Aaa LB-UBS Commercial Mortgage Trust,
4.664%, 7/15/30 180,579
400,000 AA/A1 LB-UBS Commercial Mortgage Trust,
5.873%, 7/15/35 401,183
939,326 AA-/Aaa Lehman Brothers, Floating Rate Note,
5.56%, 9/15/21 (144A) 897,215
115,644 A-/NR Master Alternative Loans Trust,
4.5%, 1/25/15 115,551
295,213 6.90 A-/NR Master Seasoned Securities Trust, Floating
Rate Note, 9/25/32 310,004
51,807 AAA/Aaa Merrill Lynch Mortgage Trust,
4.556%, 6/12/43 52,075
17,899 5.44 AAA/Aaa Merrill Lynch/Countrywide Communities,
Floating Rate Note, 2/12/39 17,901
297,808 0.49 AAA/Baa2 MLCC Mortgage Investors, Inc., Floating
Rate Note, 4/25/29 264,295
700,000 NR/NR Morgan Stanley Reremic Trust,
5.0%, 11/26/36 677,005
302,138 NR/Aa3 PHH Mortgage Capital, 6.6%, 12/25/27 294,928
295,000 A+/NR Prudential Commercial Mortgage Trust,
4.706%, 2/11/36 291,346
973,398 B+/B2 RAAC Series, 6.0%, 1/25/32 997,032
464,643 6.22 A/Aaa Residential Asset Mortgage Products, Inc.,
Floating Rate Note, 5/25/18 474,974
2,278,038 AAA/NR Residential Asset Securities,
0.66%, 5/25/33 2,029,500
492,573 B/NR Residential Asset Securities,
5.5%, 7/25/35 443,298
578,665 BBB+/NR Residential Asset Securitization,
5.75%, 12/25/34 593,459
580,692 NR/Aaa Salomon Brothers Mortgage Securities VII,
Inc., 7.0722%, 5/18/32 595,684
The accompanying notes are an integral part of these financial statements.
22 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
223,232 0.62 AAA/Baa3 SEMT 2004-10 A2, Floating Rate Note,
11/20/34 $ 197,945
616,195 AAA/B1 SEMT 2005-1 A2, 5.8325%, 2/20/35 515,648
295,680 0.92 AAA/Baa1 Sequoia Mortgage Trust, Floating Rate
Note, 9/20/33 278,630
429,729 AAA/Baa1 Sequoia Mortgage Trust,
0.45625%, 1/20/35 335,394
339,555 AAA/A3 Sequoia Mortgage Trust,
0.74969%, 1/20/35 268,109
407,616 AAA/Baa3 Sequoia Mortgage Trust,
1.816457%, 8/20/34 396,114
1,177,326 AA+/Aaa Structured Asset Mortgage Investments,
Inc., 0.75625%, 8/26/35 1,168,584
737,595 4.16 CCC/Caa3 Structured Asset Mortgage Investments,
Inc., Floating Rate Note, 5/25/45 425,018
335,955 AAA/A3 Structured Asset Securities Corp.,
2.6671%, 10/25/33 321,197
1,391,586 AAA/Baa1 Structured Asset Securities Corp.,
2.5615%, 7/25/33 1,239,124
359,542 AAA/B2 Thornburg Mortgage Securities Trust,
1.7542%, 3/25/44 328,291
382,972 AAA/Ba1 Thornburg Mortgage Securities Trust,
4.1376%, 3/25/44 381,200
1,689,943 0.60 AAA/A2 Thornburg Mortgage Securities Trust,
Floating Rate Note, 9/25/44 1,475,790
228,074 1.67 AAA/A1 Thornburg Mortgage Securities, Inc.,
Floating Rate Note, 3/25/44 219,929
500,000 AA-/NR Wachovia Bank Commercial Mortgage
Trust, 5.606%, 4/15/35 502,005
84,463,189 0.01 AAA/Aaa Wachovia Bank Commercial Mortgage
Trust, Floating Rate Note, 6/15/45 70,189
650,000 BBB/NR WAMU Commercial Mortgage Securities
Trust, 5.3%, 5/25/36 654,066
126,451 AAA/A1 Wells Fargo Mortgage Backed Securities,
5.0%, 11/25/36 127,749
703,498 2.74 NR/Ba3 Wells Fargo Mortgage Backed Securities,
Floating Rate Note, 1/25/35 608,907
708,617 5.01 NR/Ba2 Wells Fargo Mortgage Backed Securities,
Floating Rate Note, 4/25/35 707,412
51,340 5.04 CC/Aaa Wells Fargo Mortgage Backed Securities,
Floating Rate Note, 9/25/35 50,242
406,407 AAA/Ba2 Wells Fargo Mortgage Backed Securities
Trust, 4.75%, 12/25/18 419,954
783,134 NR/B1 Wells Fargo Mortgage Backed Securities
Trust, 5.75%, 3/25/36 775,253
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 23
Schedule of Investments | 2/29/12 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
151,834 CCC/B1 Wells Fargo Mortgage Backed Securities
Trust, 6.0%, 8/25/36 $ 151,421
------------
$ 38,256,788
------------
Total Banks $ 38,256,788
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.4%
Asset Management & Custody Banks -- 0.2%
161,126 4.67 NR/NR Jefferies & Co., Inc., Floating Rate Note,
5/26/37 $ 157,350
-----------------------------------------------------------------------------------------------------
Diversified Finance Services -- 4.4%
210,000 A+/Baa2 American Tower Trust, 5.9568%, 4/15/14 $ 222,647
331,300 2.92 AAA/Aaa Banc of America Mortgage, Floating Rate
Note, 7/25/33 327,684
1,532,349 2.87 AAA/A2 Banc of America Mortgage, Floating Rate
Note, 9/25/33 1,510,832
95,977 2.87 NR/Ba3 Banc of America Mortgage Securities,
Floating Rate Note, 5/25/35 95,478
162,695 0.97 A+/Baa1 Bear Stearns Alt-A Trust, Floating Rate
Note, 11/25/34 149,128
650,000 BBB+/Aa2 Credit Suisse Mortgage Capital
Certificates, 0.318%, 2/15/22 604,500
600,000 NR/NR Credit Suisse Mortgage Capital
Certificates, 4.25%, 6/25/50 561,941
348,422 NR/Aaa Credit Suisse Mortgage Capital
Certificates, 5.268%, 2/15/40 348,194
230,874 B-/Aaa MLMI 2005-A2 A4, 4.48%, 2/25/35 228,537
89,188 AAA/Aaa Morgan Stanley Capital,
0.346%, 10/15/20 88,180
250,000 BBB-/Baa2 Morgan Stanley Capital,
0.919%, 12/15/20 226,149
359,997 AAA/Aaa Morgan Stanley Capital,
0.779%, 12/15/20 349,991
412,857 5.50 AAA/B2 RALI 2004-QS16 1A1, Floating Rate Note,
12/25/34 416,981
284,568 AAA/Baa2 Residential Accredit Loans, Inc.,
4.5%, 4/25/34 287,138
302,603 0.81 AAA/Ba1 Residential Accredit Loans, Inc., Floating
Rate Note, 1/25/34 287,843
943,312 4.25 AAA/Baa3 Residential Accredit Loans, Inc., Floating
Rate Note, 1/25/34 955,551
950,000 AAA/Baa3 Residential Accredit Loans, Inc.,
4.0%, 7/25/33 938,188
275,969 AAA/Aa1 Residential Accredit Loans, Inc.,
5.75%, 10/25/33 277,892
630,859 0.81 AAA/Baa1 Residential Accredit Loans, Inc., Floating
Rate Note, 10/25/17 591,543
The accompanying notes are an integral part of these financial statements.
24 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
Diversified Finance Services -- (continued)
93,605 NR/Ba1 Residential Accredit Loans, Inc.,
5.0%, 7/25/18 $ 95,362
237,354 AAA/Aa1 Structured Adjustable Rate Mortgage Loan
Trust, 0.63%, 1/25/35 234,728
106,115 NR/NR Vericrest Opportunity Loan Transferee,
5.926%, 12/26/50 106,797
------------
$ 8,905,284
-----------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.4%
241,788 AAA/Aaa Banc of America Commercial Mortgage,
Inc., 5.381%, 1/15/49 $ 241,572
460,000 NR/A3 Morgan Stanley Dean Witter Capital, Inc.,
6.79%, 7/15/33 476,229
------------
$ 717,801
-----------------------------------------------------------------------------------------------------
Specialized Finance -- 0.4%
156,520 0.33 A/Aaa Indymac Index Mortgage Loan Trust,
Floating Rate Note, 2/25/37 $ 152,230
700,000 AAA/Aaa Permanent Master Issuer Plc,
1.967%, 7/15/42 700,141
------------
$ 852,371
------------
Total Diversified Financials $ 10,632,806
-----------------------------------------------------------------------------------------------------
REAL ESTATE -- 2.3%
Mortgage Real Estate Investment Trust -- 2.3%
924,726 5.01 AAA/Aaa American Home Mortgage Investment
Corp., Floating Rate Note, 10/25/34 $ 926,329
351,962 AAA/B1 American Home Mortgage Investment
Trust, 2.465%, 6/25/45 316,917
164,778 BBB/NR Credit Suisse First Boston Mortgage,
5.25%, 10/25/19 166,749
97,004 AAA/NR Credit Suisse First Boston Mortgage,
5.5%, 6/25/33 96,941
385,465 AAA/A2 Credit Suisse First Boston Mortgage,
7.5%, 5/25/32 397,501
214,968 1.58 AA+/Aa2 Credit Suisse First Boston Mortgage,
Floating Rate Note, 12/25/33 203,637
750,000 CCC-/B1 Credit Suisse First Boston Mortgage
Securities Corp., 6.448%, 9/15/34 739,991
1,405,075 AAA/Aaa CS First Boston Mortgage Security,
7.13%, 11/15/30 1,442,405
338,714 1.75 AA+/WR CS First Boston Mortgage Security,
Floating Rate Note, 8/25/33 309,923
------------
$ 4,600,393
------------
Total Real Estate $ 4,600,393
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 25
Schedule of Investments | 2/29/12 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
GOVERNMENT -- 1.1%
140,249 AAA/Aaa Freddie Mac, 4.5%, 8/15/17 $ 142,478
429,454 AAA/Aaa Freddie Mac, 5.5%, 10/15/35 458,299
107,910 NR/Aa1 Freddie Mac REMICS, 3.25%, 6/15/17 108,805
858,711 NR/Aa1 Freddie Mac REMICS, 4.0%, 6/15/22 883,161
10,461 AAA/Aa1 Freddie Mac REMICS, 5.0%, 8/15/31 10,484
371,717 NR/Aa1 Freddie Mac REMICS, 5.0%, 11/15/28 373,846
95,621 NR/NR Freddie Mac REMICS, 5.5%, 3/15/32 99,093
4,864 NR/NR Freddie Mac REMICS, 5.5%, 8/15/29 4,865
------------
$ 2,081,031
------------
Total Government $ 2,081,031
-----------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $57,664,731) $ 55,571,018
-----------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 30.8%
ENERGY -- 1.6%
Oil & Gas Equipment & Services -- 0.5%
2,134,000 11.99 NR/NR Sevan Marine ASA, Floating Rate Note,
10/24/12 (144A) $ 229,434
739,000 BBB/Baa2 Weatherford International, Ltd., Bermuda,
5.15%, 3/15/13 764,555
------------
$ 993,989
-----------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.6%
250,000 A/Aa3 Ras Laffan LNG 3, 4.5%, 9/30/12 (144A) $ 253,750
250,000 A/Aa3 Ras Laffan LNG 3, 5.5%, 9/30/14 (144A) 268,438
500,000 BBB-/Baa2 TNK-BP Finance SA, 7.5%,
3/13/13 (144A) 527,750
------------
$ 1,049,938
-----------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.5%
250,000 BBB-/Baa3 Plains All American Pipeline LP / PAA
Finance Corp., 4.25%, 9/1/12 $ 253,669
750,000 BBB-/Baa2 Williams Partners LP, 3.8%, 2/15/15 793,487
------------
$ 1,047,156
------------
Total Energy $ 3,091,083
-----------------------------------------------------------------------------------------------------
MATERIALS -- 1.0%
Construction Materials -- 0.2%
360,000 BBB+/Baa1 CRH America, Inc., 5.3%, 10/15/13 $ 377,848
-----------------------------------------------------------------------------------------------------
Gold -- 0.2%
500,000 A-/Baa1 Barrick Gold Corp., 1.75%, 5/30/14 $ 510,045
-----------------------------------------------------------------------------------------------------
Industrial Gases -- 0.3%
500,000 BBB/Baa2 Airgas, Inc., 2.85%, 10/1/13 $ 512,801
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
----------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.3%
536,000 BBB/Baa2 Cytec Industries, Inc., 4.6%, 7/1/13 $ 552,651
------------
Total Materials $ 1,953,345
----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.8%
Trading Companies & Distributors -- 0.8%
440,000 BBB/Baa1 GATX Corp., 4.75%, 10/1/12 $ 448,222
1,000,000 BBB/Baa2 Glencore Funding LLC, 6.0%,
4/15/14 (144A) 1,048,304
------------
$ 1,496,526
------------
Total Capital Goods $ 1,496,526
----------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.2%
Office Services & Supplies -- 0.2%
350,000 BBB+/A2 Pitney Bowes, Inc., 4.625%, 10/1/12 $ 357,175
------------
Total Commercial Services & Supplies $ 357,175
----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.2%
Railroads -- 0.2%
480,000 BBB/Baa3 CSX Corp., 6.3%, 3/15/12 $ 480,709
------------
Total Transportation $ 480,709
----------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.6%
Automobile Manufacturers -- 0.6%
1,000,000 BBB/Baa2 Hyundai Motor Manufacturer,
4.5%, 4/15/15 $ 1,043,605
100,000 BBB+/Baa1 Nissan Motor Acceptance Corp.,
4.5%, 1/30/15 (144A) 105,600
------------
$ 1,149,205
----------------------------------------------------------------------------------------------------
Motorcycle Manufacturers -- 0.0%
175,000 BBB+/Baa1 Harley-Davidson Financial Services, Inc.,
3.875%, 3/15/16 $ 182,287
------------
Total Automobiles & Components $ 1,331,492
----------------------------------------------------------------------------------------------------
MEDIA -- 0.4%
Broadcasting -- 0.4%
750,000 BBB/Baa2 Discovery Communications LLC,
3.7%, 6/1/15 $ 803,932
------------
Total Media $ 803,932
----------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.3%
Brewers -- 0.3%
500,000 BBB+/NR SABMiller Holdings, Inc., 1.85%, 1/15/15 $ 508,121
------------
Total Food, Beverage & Tobacco $ 508,121
----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.8%
Health Care Equipment -- 0.3%
510,000 A/Baa1 St Jude Medical, Inc., 2.5%, 1/15/16 $ 528,572
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 27
Schedule of Investments | 2/29/12 (unaudited) (continued)
-------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-------------------------------------------------------------------------------------------------------
Health Care Services -- 0.5%
1,000,000 BBB+/Baa3 Express Scripts, Inc., 3.125%, 5/15/16 $ 1,033,801
------------
Total Health Care Equipment & Services $ 1,562,373
-------------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 1.0%
Life Sciences Tools & Services -- 1.0%
500,000 BBB+/Baa2 Agilent Technologies, Inc., 2.5%, 7/15/13 $ 508,467
620,000 BBB+/NR Agilent Technologies, Inc., 5.5%, 9/14/15 700,048
750,000 BBB/Ba1 Life Technologies Co., 3.375%, 3/1/13 764,489
------------
$ 1,973,004
------------
Total Pharmaceuticals & Biotechnology $ 1,973,004
-------------------------------------------------------------------------------------------------------
BANKS -- 3.9%
Diversified Banks -- 2.6%
750,000 A+/Aa3 Barclays Bank Plc, 2.5%, 1/23/13 $ 756,465
500,000 A/Aa3 BBVA US Senior SAU, 3.25%, 5/16/14 492,157
1,000,000 1.05 AA-/Aa2 HSBC Bank Plc, Floating Rate Note,
8/12/13 (144A) 996,308
1,000,000 1.33 A+/Aa3 Santander US Debt SA, Floating Rate
Note, 3/30/12 (144A) 999,542
500,000 A+/Aa3 Santander US Debt SA Unipersonal,
2.485%, 1/18/13 492,031
500,000 A+/A2 Standard Chartered Plc, 3.85%,
4/27/15 (144A) 518,435
820,000 A/A3 Wachovia Corp., 5.25%, 8/1/14 885,266
------------
$ 5,140,204
-------------------------------------------------------------------------------------------------------
Regional Banks -- 1.1%
300,000 BBB+/A2 American Express Bank FSB,
5.5%, 4/16/13 $ 314,876
500,000 A-/A2 BB&T Corp., 5.7%, 4/30/14 549,682
275,000 BBB+/Baa1 KeyBank NA, 5.8%, 7/1/14 297,602
500,000 BBB+/Baa1 KeyCorp, 3.75%, 8/13/15 526,887
215,000 BBB+/Baa1 KeyCorp, 6.5%, 5/14/13 227,905
275,000 8.25 BBB/Baa3 PNC Financial Services Group, Inc.,
Floating Rate Note, 5/29/49 283,136
------------
$ 2,200,088
-------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.2%
500,000 AAA/Aaa Swedbank Hypotek AB, 0.758%, 3/28/14 $ 496,884
------------
Total Banks $ 7,837,176
-------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 9.4%
Asset Management & Custody Banks -- 0.2%
300,000 AA-/A1 Franklin Resources, 3.125%, 5/20/15 $ 315,114
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
-------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-------------------------------------------------------------------------------------------------------
Consumer Finance -- 1.7%
950,000 B+/B1 Ally Financial, Inc., 6.8750%, 8/28/12 $ 966,625
380,000 A+/A1 American Honda Finance, Inc.,
6.7%, 10/1/13 (144A) 411,883
500,000 A+/A1 American Honda Finance Corp.,
2.375%, 3/18/13 508,944
1,350,000 BB+/Ba1 Ford Motor Credit Co., LLC, 7.5%, 8/1/12 1,379,885
100,000 AA+/Aaa John Deere Capital Corp.,
2.875%, 6/19/12 100,793
------------
$ 3,368,130
-------------------------------------------------------------------------------------------------------
Diversified Finance Services -- 4.0%
500,000 A-/Baa1 Bank of America Corp., 3.7%, 9/1/15 $ 499,491
250,000 6.66 BB+/NR Caelus Re II, Ltd., Floating Rate Note,
5/24/13 248,600
1,000,000 BBB+/Baa1 Citigroup, Inc., 5.0%, 9/15/14 1,041,053
165,000 2.90 A-/A3 Citigroup, Inc., Floating Rate Note,
3/16/12 165,009
500,000 AA+/Aa2 General Electric Capital Corp.,
0.92675%, 4/7/14 498,678
1,000,000 AA+/Aa2 General Electric Capital Corp.,
1.875%, 9/16/13 1,013,547
1,000,000 AA+/Aa2 General Electric Capital Corp.,
1.101%, 12/20/13 991,820
500,000 0.94 A/Aa3 JPMorgan Chase & Co., Floating Rate
Note, 2/26/13 503,039
500,000 A/Aa3 JPMorgan Chase & Co., 4.0%, 2/25/21 499,805
500,000 6.33 BB/NR Lodestone Re, Ltd., Floating Rate Note,
5/17/13 (144A) 494,800
500,000 6.07 BB/NR Lodestone Re, Ltd., Floating Rate Note,
1/8/14 482,850
250,000 9.83 BB-/NR Loma Reinsurance, Ltd., Floating Rate
Note, 12/21/12 255,250
250,000 7.60 BB-/NR Queen Street II Capital, Ltd., Floating Rate
Note, 4/9/14 244,825
250,000 6.76 BB/NR Residential Reinsurance 2010, Ltd.,
Floating Rate Note, 6/6/13 (144A) 248,325
250,000 6.25 BB/NR Residential Reinsurance 2010, Ltd.,
Floating Rate Note, 6/6/13 245,925
250,000 9.00 B+/NR Residential Reinsurance 2011, Ltd.,
Floating Rate Note, 6/6/15 251,050
250,000 BBB-/NR Vita Capital IV, Ltd.,
3.136967%, 1/15/16 249,075
------------
$ 7,933,142
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 29
Schedule of Investments | 2/29/12 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 3.0%
340,000 A-/A1 Goldman Sachs Group, Inc.,
3.7%, 8/1/15 $ 346,759
1,000,000 A-/A1 Goldman Sachs Group, Inc.,
1.3105%, 2/7/14 976,553
500,000 A-/Baa1 Merrill Lynch & Co., Inc., 6.05%, 8/15/12 509,710
898,000 A-/Baa1 Merrill Lynch & Co., 5.45%, 2/5/13 922,250
275,000 A-/A2 Morgan Stanley Co., 3.1%, 11/9/18 245,678
1,000,000 A-/A2 Morgan Stanley Co., 4.0%, 9/22/20 985,276
500,000 A-/A2 Morgan Stanley Co., 5.0%, 8/31/25 497,548
800,000 2.88 A-/A2 Morgan Stanley Co., Floating Rate Note,
5/14/13 801,135
250,000 4.76 B+/NR Queen Street III Capital, Floating Rate
Note, 7/28/14 244,850
500,000 A-/Baa1 TD Ameritrade Holding, 2.95%, 12/1/12 508,267
------------
$ 6,038,026
-----------------------------------------------------------------------------------------------------
Specialized Finance -- 0.5%
500,000 BBB/Baa1 Banque PSA Finance, 3.375%, 4/4/14 $ 494,404
500,000 A/A2 National Rural Utilities, 5.4%, 10/15/13 530,496
------------
$ 1,024,900
------------
Total Diversified Financials $ 18,679,312
-----------------------------------------------------------------------------------------------------
INSURANCE -- 4.3%
Life & Health Insurance -- 0.7%
50,000 A+/A1 Allstate Life Global, 5.375%, 4/30/13 $ 52,696
500,000 A-/NR Jefferson-Pilot Corp., 4.75%, 1/30/14 521,232
250,000 A-/Baa2 Lincoln National Corp., 4.3%, 6/15/15 264,717
500,000 BBB/A3 Principal Financial Group, Inc.,
7.875%, 5/15/14 562,266
------------
$ 1,400,911
-----------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.9%
500,000 BBB/Baa3 Genworth Financial, Inc., 5.75%, 6/15/14 $ 516,182
410,000 BBB-/Baa2 Liberty Mutual Group, 7.3%,
6/15/14 (144A) 436,565
550,000 AA-/Aa3 Metropolitan Life Global Funding, Inc.,
2.5%, 1/11/13 556,480
250,000 A/A2 Metropolitan Life, Inc., 7.7%, 11/1/15 284,614
------------
$ 1,793,841
-----------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 1.7%
980,000 BBB+/Baa2 Berkley WR, 5.875%, 2/15/13 $ 1,006,023
1,291,000 BBB-/Baa2 OneBeacon US Holdings, Inc.,
5.875%, 5/15/13 1,331,685
500,000 BBB/Baa3 White Mountains Re Group, Ltd.,
6.375%, 3/20/17 522,932
The accompanying notes are an integral part of these financial statements.
30 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
-------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- (continued)
500,000 BBB+/Baa2 XL Capital, Ltd., 5.25%, 9/15/14 $ 529,301
------------
$ 3,389,941
-------------------------------------------------------------------------------------------------------
Reinsurance -- 1.0%
500,000 7.19 BB+/NR Blue Fin, Ltd., Floating Rate Note, 4/10/12 $ 501,200
250,000 5.11 BB+/NR Foundation Re III, Ltd., Floating Rate Note,
2/25/15 244,275
250,000 5.88 BB/A2 Foundation Re III, Ltd., Floating Rate Note,
2/3/14 (Cat Bond) 246,425
250,000 12.03 NR/B3 Globecat, Ltd., Floating Rate Note,
1/2/13 (Cat Bond) (144A) 241,200
350,000 0.00 B-/NR Successor X, Ltd., Floating Rate Note,
1/7/14 348,005
300,000 9.41 B/NR Successor X, Ltd., Floating Rate Note,
2/25/14 292,110
------------
$ 1,873,215
------------
Total Insurance $ 8,457,908
-------------------------------------------------------------------------------------------------------
REAL ESTATE -- 2.4%
Diversified Real Estate Activities -- 0.2%
350,000 A-/A2 Westfield Group, 5.4%, 10/1/12 $ 358,501
-------------------------------------------------------------------------------------------------------
Diversified Real Estate Investment Trust -- 0.6%
685,000 BBB+/Baa1 Dexus Finance Pty, Ltd.,
7.125%, 10/15/14 $ 737,518
350,000 BBB/Baa2 Digital Realty Trust LP, 4.5%, 7/15/15 365,173
------------
$ 1,102,691
-------------------------------------------------------------------------------------------------------
Office Real Estate Investment Trust -- 0.2%
385,000 BBB/Baa2 Mack-Cali Realty LP, 5.125%, 2/15/14 $ 399,957
-------------------------------------------------------------------------------------------------------
Retail Real Estate Investment Trust -- 0.2%
500,000 BB+/Baa3 Developers Diversified Realty,
5.375%, 10/15/12 $ 504,816
-------------------------------------------------------------------------------------------------------
Specialized Real Estate Investment Trust -- 1.2%
1,000,000 BBB/Baa2 HCP, Inc., 2.7%, 2/1/14 $ 1,011,683
525,000 BBB-/Baa2 Hospitality Properties Trust,
6.75%, 2/15/13 536,364
780,000 BBB-/Baa2 Hospitality Properties Trust,
7.875%, 8/15/14 857,121
------------
$ 2,405,168
------------
Total Real Estate $ 4,771,133
-------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.5%
Computer Hardware -- 0.5%
500,000 BBB+/A3 Hewlett-Packard Co., 2.35%, 3/15/15 $ 511,637
470,000 BBB+/A3 Hewlett-Packard Co., 2.625%, 12/9/14 487,338
------------
$ 998,975
------------
Total Technology Hardware & Equipment $ 998,975
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 31
Schedule of Investments | 2/29/12 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
----------------------------------------------------------------------------------------------------
SEMICONDUCTORS -- 0.4%
750,000 BBB/Baa1 Maxim Integrated Products, Inc.,
3.45%, 6/14/13 $ 771,752
------------
Total Semiconductors $ 771,752
----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.0%
Integrated Telecommunication Services -- 1.5%
490,000 BBB/Baa2 British Telecommunication,
5.15%, 1/15/13 $ 508,707
550,000 NR/WR GTP Towers Issuer LLC,
4.436%, 2/15/15 (144A) 565,235
750,000 BBB/Baa2 Telecom Italia Capital SA,
4.95%, 9/30/14 756,563
500,000 BBB+/Baa1 Telefonica Emisiones SAU,
3.992%, 2/16/16 503,024
590,000 A-/WR Verizon Virginia, Inc., 4.625%, 3/15/13 613,238
------------
$ 2,946,767
----------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.5%
500,000 NR/A2 Crown Castle Towers LLC, 3.214%,
8/15/15 (144A) $ 513,107
500,000 NR/A2 GTP Acquisition Partners I LLC,
4.347%, 6/15/16 501,298
------------
$ 1,014,405
------------
Total Telecommunication Services $ 3,961,172
----------------------------------------------------------------------------------------------------
UTILITIES -- 1.0%
Electric Utilities -- 0.8%
500,000 BBB+/Baa1 FPL Group Capital, Inc., 2.55%, 11/15/13 $ 507,475
1,000,000 A-/A3 Iberdrola Finance Ireland, Ltd., 3.8%,
9/11/14 (144A) 1,027,791
------------
$ 1,535,266
----------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.2%
500,000 BBB+/Baa1 Midamerican Energy Holdings Co.,
5.95%, 5/15/37 $ 504,615
------------
Total Utilities $ 2,039,881
----------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $60,065,823) $ 61,075,069
----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 19.7%
249,635 AAA/Aaa Fannie Mae Benchmark Remic,
5.45%, 12/25/20 $ 270,664
4,599,970 4.44 NR/Aa1 Fannie Mae Grantor Trust, Floating Rate
Note, 10/25/40 4,416,594
1,237,090 3.98 AAA/Aaa Fannie Mae Grantor Trust, Floating Rate
Note, 7/25/43 1,321,272
552,378 NR/NR Fannie Mae REMICS, 3.0%, 1/25/21 574,531
The accompanying notes are an integral part of these financial statements.
32 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
--------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
--------------------------------------------------------------------------------------------
U.S. Government and Agency Obligations -- (continued)
123,192 AAA/Aaa Fannie Mae REMICS, 5.69%, 1/25/32 $ 127,425
532,792 NR/NR Fannie Mae REMICS, 6.0%, 3/25/35 565,462
278,491 NR/NR Fannie Mae REMICS, 6.25%, 6/25/44 280,028
316,979 AAA/NR Fannie Mae Whole Loan,
3.17454%, 6/25/35 331,838
333,823 AAA/NR Fannie Mae Whole Loan,
3.49029%, 4/25/45 353,500
1,184,967 3.81 AAA/Aaa Fannie Mae Whole Loan, Floating Rate
Note, 7/25/42 1,202,167
257,878 AAA/Aaa Fannie Mae, 6.0%, 6/25/29 288,995
226,384 AAA/Aaa Federal Home Loan Mortgage Corp.,
4.5%, 9/1/12 231,049
220,551 AAA/Aaa Federal Home Loan Mortgage Corp.,
5.0%, 2/1/21 237,829
300,703 AAA/Aaa Federal Home Loan Mortgage Corp.,
5.505%, 12/1/31 302,775
8,921 AAA/Aaa Federal Home Loan Mortgage Corp.,
5.79%, 11/1/31 9,398
126,929 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.064%, 11/1/40 129,685
601,000 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.134%, 10/1/31 609,799
8,282 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.303%, 7/1/18 8,571
626,848 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.44%, 10/1/36 669,522
42,828 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.5%, 7/1/16 - 6/1/17 46,494
5,741 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.533%, 11/1/25 6,021
3,274 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.571%, 4/1/29 3,455
3,809 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.837%, 4/1/28 4,033
9,005 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.985%, 5/1/25 9,089
2,140 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.035%, 4/1/29 2,157
4,777 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.142%, 1/1/28 5,085
172,267 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.245%, 8/1/31 175,890
1,654 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.25%, 8/1/31 1,667
107,359 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.393%, 11/1/24 109,244
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 33
Schedule of Investments | 2/29/12 (unaudited) (continued)
----------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
----------------------------------------------------------------------------------------------
U.S. Government and Agency Obligations -- (continued)
21,701 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.484%, 2/1/27 $ 22,065
37,152 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.652%, 4/1/25 37,277
68,740 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.680%, 1/1/25 69,251
2,351 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.936%, 2/1/33 2,484
894,370 AAA/Aaa Federal National Mortgage Association,
4.0%, 5/1/24 945,976
1,799,395 AAA/Aaa Federal National Mortgage Association,
4.5%, 7/1/19 1,939,306
132,770 AAA/Aaa Federal National Mortgage Association,
5.0%, 7/1/15 143,191
102,677 AAA/Aaa Federal National Mortgage Association,
5.469%, 7/1/36 110,012
461,000 AAA/Aaa Federal National Mortgage Association,
5.5%, 8/1/23 - 12/1/35 501,904
374,485 AAA/Aaa Federal National Mortgage Association,
6.0%, 2/1/34 - 4/1/38 415,482
429,501 AAA/Aaa Federal National Mortgage Association,
6.339%, 12/1/36 452,026
603,418 AAA/Aaa Federal National Mortgage Association,
6.5%, 8/1/13 - 7/1/32 690,199
607,716 AAA/Aaa Federal National Mortgage Association,
7.0%, 4/1/12 - 1/1/36 683,151
88,419 AAA/Aaa Federal National Mortgage Association,
7.243%, 12/1/28 94,009
96,734 AAA/Aaa Federal National Mortgage Association,
7.405%, 10/1/29 101,811
233,222 AAA/Aaa Federal National Mortgage Association,
7.586%, 10/1/29 247,464
64,378 AAA/Aaa Federal National Mortgage Association,
8.0%, 4/1/14 67,545
2,000,000 NR/NR Government National Mortgage
Association, 1.0959%, 8/16/52 162,174
4,323,151 NR/NR Government National Mortgage
Association, 1.35404%, 3/16/51 224,419
16,573,443 AAA/Aa1 Government National Mortgage
Association, 1.524, 2/16/52 1,008,776
3,425,734 NR/NR Government National Mortgage
Association, 1.762244%, 3/15/52 269,201
104,754 AAA/Aa1 Government National Mortgage
Association, 3.084% 4/16/22 105,122
812,063 AAA/Aa1 Government National Mortgage
Association, 4.009%, 5/16/37 850,722
The accompanying notes are an integral part of these financial statements.
34 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
----------------------------------------------------------------------------------------------------
U.S. Government and Agency Obligations -- (continued)
350,000 AAA/Aa1 Government National Mortgage
Association, 4.549%, 6/16/28 $ 371,317
603,983 AAA/Aaa Government National Mortgage
Association, 5.0%, 8/15/19 663,417
3,490,533 AAA/Aaa Government National Mortgage
Association, 6.0%, 5/20/13 - 11/15/36 3,847,699
178,891 AAA/Aaa Government National Mortgage
Association, 6.5%, 5/15/31 - 10/15/37 206,459
8,303 AAA/Aaa Government National Mortgage
Association, 7.0%, 11/15/13 8,602
132,069 AAA/Aaa Government National Mortgage
Association, 7.5%, 6/15/14 - 10/15/36 155,657
1,458,440 5.00 NR/NR Government National Mortgage
Association, Floating Rate Note, 1/20/16 1,578,298
17,828,665 0.71 NR/NR Government National Mortgage
Association, Floating Rate Note, 11/16/51 809,100
9,950,000 AA+/Aaa U.S. Treasury Bill, 0.125%, 9/30/13 9,926,668
------------
$ 39,005,023
----------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(Cost $38,765,135) $ 39,005,023
----------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BOND -- 0.1%
250,000 A/A1 Korea Development Bank, 5.3%, 1/17/13 $ 256,936
----------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BOND
(Cost $249,643) $ 256,936
----------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 3.0%
MISCELLANEOUS -- 0.9%
200,000 AAA/Aa1 City of Carrollton Texas, 4.5%, 8/15/12 $ 203,994
1,500,000 A+/A1 New Jersey Economic Development
Authority, 1.247%, 6/15/13 1,500,105
------------
Total Miscellaneous $ 1,704,099
----------------------------------------------------------------------------------------------------
GOVERNMENT -- 2.1%
Municipal Development -- 0.1%
250,000 AA-/Aa2 Massachusetts Development Finance
Agency, 3.0%, 2/15/36 $ 266,688
----------------------------------------------------------------------------------------------------
Municipal General -- 0.2%
500,000 AA/Aa1 OH INFRA-TXB-2-BABS, 3.0%, 6/15/15 $ 524,130
----------------------------------------------------------------------------------------------------
Municipal Higher Education -- 0.5%
690,000 NR/A2 Massachusetts Health & Educational
Facilities Authority, 2.7%, 10/1/37 $ 715,999
200,000 AA-/Aa2 New York State Dormitory Authority,
3.0%, 7/1/13 206,840
------------
$ 922,839
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 35
Schedule of Investments | 2/29/12 (unaudited) (continued)
-------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-------------------------------------------------------------------------------------------------
Municipal Housing -- 0.1%
200,000 NR/Aa3 Oregon Housing & Communities,
1.15%, 1/1/13 $ 200,970
-------------------------------------------------------------------------------------------------
Municipal Pollution -- 0.5%
1,000,000 BBB+/Baa1 Power County Idaho Pollution Control,
5.625%, 10/1/14 $ 1,000,390
-------------------------------------------------------------------------------------------------
Municipal Transportation -- 0.7%
300,000 BBB/A2 Massachusetts Port Authority,
5.0%, 7/1/14 $ 311,274
475,000 BBB/A2 Massachusetts Port Authority,
5.0%, 7/1/16 507,970
500,000 NR/NR North Texas Tollway Authority,
2.441%, 9/1/13 512,505
------------
$ 1,331,749
------------
Total Government $ 4,246,766
-------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $5,861,479) $ 5,950,865
-------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN INTERESTS -- 2.5%**
MATERIALS -- 0.2%
Metal & Glass Containers -- 0.1%
210,492 4.50 B/Ba3 BWAY Holding Co., Replacement B Term
Loan, 2/9/18 $ 210,757
19,404 4.50 B/Ba3 ICL Industrial Containers ULC,
Replacement C Term Loan, 2/9/18 19,428
------------
$ 230,185
-------------------------------------------------------------------------------------------------
Paper Packaging -- 0.1%
227,175 3.12 BBB/Ba2 Graphic Packaging International, Inc.,
Incremental Term Loan, 5/16/14 $ 227,655
------------
Total Materials $ 457,840
-------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.1%
Construction & Farm Machinery & Heavy Trucks -- 0.1%
149,625 5.50 BB/Ba2 Terex Corp., U.S. Term Loan, 4/28/17 $ 151,215
------------
Total Capital Goods $ 151,215
-------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.1%
Environmental & Facilities Services -- 0.1%
172,704 2.26 B-/Caa1 Synagro Technologies, Inc., Term Loan
First Lien, 4/2/14 $ 156,513
------------
Total Commercial Services & Supplies $ 156,513
-------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.6%
Auto Parts & Equipment -- 0.1%
284,789 3.50 BBB-/Baa3 Delphi Automotive LLP, Tranche B Term
Loan, 3/31/17 $ 285,382
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
---------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
---------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.5%
925,350 6.00 BB/Ba2 Chrysler Group LLC, Tranche B Term Loan,
4/28/17 $ 930,555
------------
Total Automobiles & Components $ 1,215,937
---------------------------------------------------------------------------------------------------
MEDIA -- 0.3%
Movies & Entertainment -- 0.3%
352,859 5.25 NR/Ba1 Christie/AIX, Inc., Term Loan, 4/29/16 $ 349,330
196,500 4.50 BB-/Ba2 Live Nation Entertainment, Inc., Term B
Loan, 10/20/16 196,909
------------
$ 546,239
------------
Total Media $ 546,239
---------------------------------------------------------------------------------------------------
RETAILING -- 0.1%
Automotive Retail -- 0.1%
248,125 4.00 BB+/Ba3 Autotrader.com, Inc., Tranche B-1 Term
Loan, 12/15/16 $ 248,642
------------
Total Retailing $ 248,642
---------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.3%
Health Care Facilities -- 0.2%
377,472 4.08 BB/Ba3 CHS/Community Health Systems, Inc.,
Non-Extended Term Loan, 7/25/14 $ 372,821
---------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.1%
195,150 3.76 BB-/B1 Bausch & Lomb, Inc., Parent Term Loan,
4/24/15 $ 194,676
47,623 3.49 BB-/B1 Bausch & Lomb, Inc., Delayed Draw Term
Loan, 4/24/15 47,507
------------
$ 242,183
------------
Total Health Care Equipment & Services $ 615,004
---------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Investment Banking & Brokerage -- 0.0%
143,080 5.25 B+/Ba2 LPL Holdings, Inc., 2017 Term Loan,
6/28/17 $ 144,511
------------
Total Diversified Financials $ 144,511
---------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.3%
Data Processing & Outsourced Services -- 0.2%
214,285 4.25 BBB-/Ba1 Fidelity National, Inc., Term B Loan,
7/18/16 $ 215,846
---------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.1%
271,555 2.00 BB/Ba3 Sungard Data Systems, Inc., Tranche A
U.S. Term Loan, 2/28/14 $ 270,690
------------
Total Software & Services $ 486,536
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 37
Schedule of Investments | 2/29/12 (unaudited) (continued)
---------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
---------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.3%
Integrated Telecommunication Services -- 0.3%
39,435 3.25 B+/B1 Telesat Canada, Inc., U.S. Term II Loan,
10/31/14 $ 39,438
459,067 3.25 B+/B1 Telesat Canada, Inc., U.S. Term I Loan,
10/31/14 459,103
------------
$ 498,541
------------
Total Telecommunication Services $ 498,541
---------------------------------------------------------------------------------------------------
UTILITIES -- 0.2%
Independent Power Producer & Energy Traders -- 0.2%
431,738 4.25 BB+/Ba1 AES Corp., Initial Term Loan, 5/17/18 $ 432,682
------------
Total Utilities $ 432,682
---------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE
LOAN INTERESTS
(Cost $4,887,691) $ 4,953,660
---------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 0.7%
Certificate of Deposit -- 0.2%
500,000 Intesa Sanpaolo S.p.A./New York,
2.375%, 12/21/12 $ 490,940
------------
Total Certificate of Deposit $ 490,940
---------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.5%
950,000 JPMorgan, Inc., 0.19%, dated 2/29/12,
repurchase price of $950,000 plus
accrued interest on 3/2/12 collateralized
by $969,002 Federal National Mortgage
Association (ARM), 2.058 - 6.306%,
12/1/19 - 1/1/42 $ 950,000
------------
Total Repurchase Agreement $ 950,000
---------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $1,435,577) $ 1,440,940
---------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN
SECURITIES -- 99.3%
(Cost $198,556,615) (a) $196,697,477
---------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 0.7% $ 1,435,504
---------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $198,132,981
===================================================================================================
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
February 29, 2012, the value of these securities amounted to $9,783,682
or 4.9% of total net assets.
The accompanying notes are an integral part of these financial statements.
38 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
** 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 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 February 29, 2012, the net unrealized loss on investments based on
cost for federal income tax purposes of $199,102,589 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 2,560,846
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (4,965,958)
-----------
Net unrealized loss $(2,405,112)
===========
(b) Debt obligation with a variable interest rate. Rate shown is rate at end
of period.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended February 29, 2012 were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government Securities $20,996,923 $64,060,501
Other Long-Term Securities $19,940,832 $55,692,028
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 (other than prices supplied by independent pricing services) are
categorized as Level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 39
Schedule of Investments | 2/29/12 (unaudited) (continued)
----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------
Asset Backed Securities $ -- $ 28,443,966 $ -- $ 28,443,966
Collateralized Mortgage Obligations -- 55,571,018 -- 55,571,018
Corporate Bonds -- 61,075,069 -- 61,075,069
U.S. Government Agency Obligations -- 39,005,023 -- 39,005,023
Foreign Government Bond -- 256,936 -- 256,936
Municipal Bonds -- 5,950,865 -- 5,950,865
Senior Floating Rate Loan Interests -- 4,953,660 -- 4,953,660
Certificate of Deposit -- 490,940 -- 490,940
Repurchase Agreement -- 950,000 -- 950,000
----------------------------------------------------------------------------------------------
Total $ -- $ 196,697,477 $ -- $196,697,477
==============================================================================================
Other financial instruments* $8,034 $ (14,845) $ -- $ (6,811)
----------------------------------------------------------------------------------------------
* Other financial instruments include futures contracts and foreign exchange
contracts
Following is a reconciliation of assets using significant unobservable inputs
(Level 3):
------------------------------------------------------------------------------
Collateralized
Mortgage
Obligations
------------------------------------------------------------------------------
Balance as of 8/31/11 $ 11,893
Realized gain (loss)(1) --
Change in unrealized appreciation (depreciation)(2) --
Net purchases (sales) (11,893)
Transfers in and out of Level 3** --
------------------------------------------------------------------------------
Balance as of 2/29/12 $ --
==============================================================================
(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 beginning of period values.
The accompanying notes are an integral part of these financial statements.
40 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
Statement of Assets and Liabilities | 2/29/12 (unaudited)
ASSETS:
Investment in securities (cost $198,556,615) $196,697,477
Cash 820,300
Futures Collateral 27,300
Foreign currencies, at value (cost $30,038) 31,623
Receivables --
Paydown 7,614
Variation Margin 9,188
Fund shares sold 402,974
Dividends and interest 1,101,339
Due from Pioneer Investment Management, Inc. 36,042
Other 53,684
--------------------------------------------------------------------------------------
Total assets $199,187,542
--------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 587,784
Dividends 345,654
Forward foreign currency portfolio hedge contracts, open-net 14,845
Due to affiliates 53,542
Accrued expenses 52,736
--------------------------------------------------------------------------------------
Total liabilities $ 1,054,561
--------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $209,289,568
Distributions in excess of net investment income (450,321)
Accumulated net realized loss on investments and foreign currency
transactions (8,842,259)
Net unrealized loss on investments (1,859,138)
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (12,903)
Net unrealized gain on futures contracts 8,034
--------------------------------------------------------------------------------------
Total net assets $198,132,981
--------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $51,657,997/5,344,343 shares) $ 9.67
Class B (based on $2,225,798/230,348 shares) $ 9.66
Class C (based on $23,760,229/2,463,794 shares) $ 9.64
Class Y (based on $120,488,957/12,482,179 shares) $ 9.65
MAXIMUM OFFERING PRICE:
Class A ($9.67 [divided by] 97.5%) $ 9.92
======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 41
Statement of Operations (unaudited)
For the Six Months Ended 2/29/12
INVESTMENT INCOME:
Interest $3,826,764
Income from securities loaned, net 4,564
------------------------------------------------------------------------------------------------------
Total investment income $3,831,328
------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 408,863
Transfer agent fees and expenses
Class A 42,669
Class B 3,859
Class C 7,363
Class Y 756
Distribution fees
Class A 71,755
Class B 14,897
Class C 119,118
Shareholder communications expense 122,500
Administrative reimbursements 29,643
Custodian fees 8,374
Registration fees 41,071
Professional fees 35,694
Printing expense 15,855
Fees and expenses of nonaffiliated trustees 3,225
Miscellaneous 28,453
------------------------------------------------------------------------------------------------------
Total expenses $ 954,095
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (120,717)
------------------------------------------------------------------------------------------------------
Net expenses $ 833,378
------------------------------------------------------------------------------------------------------
Net investment income $2,997,950
======================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FOREIGN CURRENCY TRANSACTIONS, AND FUTURES CONTRACTS:
Net realized gain (loss) on:
Investments $ 449,376
Futures contracts (277,647)
Class actions 7,501
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies 10,412 $ 189,642
------------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $ 520,661
Futures contracts 224,034
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (3,456) $ 741,239
------------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $ 930,881
------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $3,928,831
======================================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
Statements of Changes in Net Assets
---------------------------------------------------------------------------------------------
Six Months
Ended
2/29/12 Year Ended
(unaudited) 8/31/11
---------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 2,997,950 $ 7,088,982
Net realized gain on investments and foreign currency
transactions 189,642 87,545
Change in net unrealized gain (loss) on investments and
foreign currency transactions 741,239 (2,439,237)
---------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 3,928,831 $ 4,737,290
---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.15 and $0.27 per share, respectively) $ (910,390) $ (3,827,795)
Class B ($0.11 and $0.19 per share, respectively) (33,312) (74,048)
Class C ($0.12 and $0.20 per share, respectively) (287,097) (426,011)
Class Y ($0.17 and $0.31 per share, respectively) (2,108,100) (3,782,100)
---------------------------------------------------------------------------------------------
Total distributions to shareowners $ (3,338,899) $ (8,109,954)
---------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 47,227,406 $153,559,108
Reinvestment of distributions 1,345,168 4,247,668
Cost of shares repurchased (110,621,705) (165,847,870)
---------------------------------------------------------------------------------------------
Net decrease in net assets resulting from Fund share
transactions $(62,049,131) $ (8,041,094)
---------------------------------------------------------------------------------------------
Net decrease in net assets $(61,459,199) $(11,413,758)
NET ASSETS:
Beginning of period 259,592,180 271,005,938
---------------------------------------------------------------------------------------------
End of period $198,132,981 $259,592,180
---------------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (450,321) $ (109,372)
---------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 43
Statements of Changes in Net Assets (continued)
---------------------------------------------------------------------------------------------------
'12 Shares '12 Amount '11 Shares '11 Amount
(unaudited) (unaudited)
---------------------------------------------------------------------------------------------------
CLASS A
Shares sold 2,071,482 $ 19,886,113 10,891,548 $105,896,019
Reinvestment of distributions 83,809 805,345 370,009 3,597,147
Less shares repurchased (8,644,754) (83,278,315) (12,813,982) (124,286,825)
---------------------------------------------------------------------------------------------------
Net decrease (6,489,463) $(62,586,857) (1,552,425) $(14,793,659)
===================================================================================================
CLASS B
Shares sold or exchanged 93,936 $ 903,948 137,813 $ 1,340,132
Reinvestment of distributions 3,245 31,167 6,848 66,599
Less shares repurchased (144,095) (1,383,801) (361,999) (3,517,699)
---------------------------------------------------------------------------------------------------
Net decrease (46,914) $ (448,686) (217,338) $ (2,110,968)
===================================================================================================
CLASS C
Shares sold 558,400 $ 5,352,219 1,567,864 $ 15,197,252
Reinvestment of distributions 25,353 243,088 35,685 346,249
Less shares repurchased (559,572) (5,367,551) (1,271,046) (12,337,637)
---------------------------------------------------------------------------------------------------
Net increase 24,181 $ 227,756 332,503 $ 3,205,864
===================================================================================================
CLASS Y
Shares sold 2,197,147 $ 21,085,126 3,205,058 $ 31,125,705
Reinvestment of distributions 27,667 265,568 24,505 237,673
Less shares repurchased (2,143,431) (20,592,038) (2,651,263) (25,705,709)
---------------------------------------------------------------------------------------------------
Net increase 81,383 $ 758,656 578,300 $ 5,657,669
===================================================================================================
The accompanying notes are an integral part of these financial statements.
44 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
Financial Highlights
---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended
2/29/12 Year Ended
(unaudited) 8/31/11
---------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.64 $ 9.75
---------------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.13 $ 0.23
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.05 (0.07)
---------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.18 $ 0.16
Distributions to shareowners:
Net investment income (0.15) (0.27)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.03 $ (0.11)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.67 $ 9.64
=================================================================================================================================
Total return* 1.89% 1.69%
Ratio of net expenses to average net assets+ 0.90%** 0.90%
Ratio of net investment income to average net assets+ 2.92%** 2.48%
Portfolio turnover rate 39%** 54%
Net assets, end of period (in thousands) $51,658 $114,080
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Net expenses 1.32%** 0.99%
Net investment income 2.50%** 2.39%
Ratios with waiver of fees and assumption of expenses by the Adviser and
reduction for fees paid indirectly:
Net expenses 0.90%** 0.90%
Net investment income 2.92%** 2.48%
=================================================================================================================================
--------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
8/31/10 8/31/09 8/31/08 8/31/07
--------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.40 $ 9.52 $ 9.76 $ 9.75
--------------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.31 $ 0.37 $ 0.45 $ 0.43
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.36 (0.03) (0.24) 0.02
--------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.67 $ 0.34 $ 0.21 $ 0.45
Distributions to shareowners:
Net investment income (0.32) (0.46) (0.45) (0.44)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.35 $ (0.12) $ (0.24) $ 0.01
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.75 $ 9.40 $ 9.52 $ 9.76
================================================================================================================================
Total return* 7.19% 3.90% 2.18% 4.68%
Ratio of net expenses to average net assets+ 0.90% 0.90% 0.91% 0.91%
Ratio of net investment income to average net assets+ 2.78% 3.59% 4.60% 4.27%
Portfolio turnover rate 42% 43% 34% 78%
Net assets, end of period (in thousands) $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 1.06% 1.15% 1.00% 1.00%
Net investment income 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%
Net investment income 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.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 45
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended
2/29/12 Year Ended
(unaudited) 8/31/11
----------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 9.63 $ 9.75
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.10 $ 0.14
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.04 (0.07)
----------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.14 $ 0.07
Distributions to shareowners:
Net investment income (0.11) (0.19)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.03 $ (0.12)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.66 $ 9.63
==================================================================================================================================
Total return* 1.44% 0.68%
Ratio of net expenses to average net assets+ 1.80%** 1.80%
Ratio of net investment income to average net assets+ 2.06%** 1.64%
Portfolio turnover rate 39%** 54%
Net assets, end of period (in thousands) $ 2,226 $ 2,671
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Net expenses 1.90%** 1.87%
Net investment income 1.96%** 1.57%
Ratios with waiver of fees and assumption of expenses by the Adviser and
reduction for fees paid indirectly:
Net expenses 1.80%** 1.80%
Net investment income 2.06%** 1.64%
==================================================================================================================================
Year Ended Year Ended Year Ended Year Ended
8/31/10 8/31/09 8/31/08 8/31/07
Class B
Net asset value, beginning of period $ 9.39 $ 9.50 $ 9.75 $ 9.75
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.22 $ 0.28 $ 0.36 $ 0.34
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.37 (0.01) (0.25) 0.01
----------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.59 $ 0.27 $ 0.11 $ 0.35
Distributions to shareowners:
Net investment income (0.23) (0.38) (0.36) (0.35)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.36 $ (0.11) $ (0.25) $ --
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.75 $ 9.39 $ 9.50 $ 9.75
==================================================================================================================================
Total return* 6.35% 3.06% 1.16% 3.64%
Ratio of net expenses to average net assets+ 1.80% 1.80% 1.80% 1.82%
Ratio of net investment income to average net assets+ 2.37% 3.15% 3.72% 3.37%
Portfolio turnover rate 42% 43% 34% 78%
Net assets, end of period (in thousands) $ 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 1.88% 1.95% 1.85% 1.88%
Net investment income 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%
Net investment income 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.
** Annualized.
The accompanying notes are an integral part of these financial statements.
46 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended
2/29/12 Year Ended
(unaudited) 8/31/11
----------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.62 $ 9.73
----------------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.10 $ 0.16
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.04 (0.07)
----------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.14 $ 0.09
Distributions to shareowners:
Net investment income (0.12) (0.20)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.02 $ (0.11)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.64 $ 9.62
==================================================================================================================================
Total return* 1.41% 0.93%
Ratio of net expenses to average net assets+ 1.68%** 1.67%
Ratio of net investment income to average net assets+ 2.05%** 1.61%
Portfolio turnover rate 39%** 54%
Net assets, end of period (in thousands) $ 23,760 $23,464
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Net expenses 1.68%** 1.67%
Net investment income 2.05%** 1.61%
Ratios with waiver of fees and assumption of expenses by the Adviser and
reduction for fees paid indirectly:
Net expenses 1.68%** 1.67%
Net investment income 2.05%** 1.61%
==================================================================================================================================
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
8/31/10 8/31/09 8/31/08 8/31/07
-----------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.38 $ 9.49 $ 9.74 $ 9.73
-----------------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.23 $ 0.29 $ 0.37 $ 0.34
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.36 (0.01) (0.25) 0.01
-----------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.59 $ 0.28 $ 0.12 $ 0.35
Distributions to shareowners:
Net investment income (0.24) (0.39) (0.37) (0.35)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.35 $ (0.11) $ (0.25) $ --
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.73 $ 9.38 $ 9.49 $ 9.75
===================================================================================================================================
Total return* 6.32% 3.14% 1.25% 3.79%
Ratio of net expenses to average net assets+ 1.70% 1.79% 1.73% 1.72%
Ratio of net investment income to average net assets+ 2.27% 2.74% 3.77% 3.45%
Portfolio turnover rate 42% 43% 34% 78%
Net assets, end of period (in thousands) $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 1.70% 1.79% 1.73% 1.72%
Net investment income 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 1.70% 1.79% 1.73% 1.71%
Net investment income 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.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 47
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended
2/29/12 Year Ended
(unaudited) 8/31/11
----------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.63 $ 9.74
----------------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.15 $ 0.27
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.04 (0.07)
----------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.19 $ 0.20
Distributions to shareowners:
Net investment income (0.17) (0.31)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.02 $ (0.11)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.65 $ 9.63
==================================================================================================================================
Total return* 1.97% 2.06%
Ratio of net expenses to average net assets+ 0.58%** 0.54%
Ratio of net investment income to average net assets+ 3.14%** 2.78%
Portfolio turnover rate 39%** 54%
Net assets, end of period (in thousands) $120,489 $119,377
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Net expenses 0.58%** 0.54%
Net investment income 3.14%** 2.78%
Ratios with waiver of fees and assumption of expenses by the Adviser and
reduction for fees paid indirectly:
Net expenses 0.58%** 0.54%
Net investment income 3.14%** 2.78%
==================================================================================================================================
----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
8/31/10 8/31/09 8/31/08 8/31/07
----------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.38 $ 9.51 $ 9.76 $ 9.76
----------------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.34 $ 0.40 $ 0.48 $ 0.45
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.37 (0.04) (0.24) 0.02
----------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.71 $ 0.36 $ 0.24 $ 0.47
Distributions to shareowners:
Net investment income (0.35) (0.49) (0.49) (0.47)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.36 $ (0.13) $ (0.25) $ --
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.74 $ 9.38 $ 9.51 $ 9.76
==================================================================================================================================
Total return* 7.64% 4.11% 2.45% 4.96%
Ratio of net expenses to average net assets+ 0.57% 0.63% 0.55% 0.53%
Ratio of net investment income to average net assets+ 3.52% 4.36% 4.98% 4.68%
Portfolio turnover rate 42% 43% 34% 78%
Net assets, end of period (in thousands) $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 0.57% 0.63% 0.55% 0.53%
Net investment income 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 0.57% 0.63% 0.55% 0.53%
Net investment income 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.
** Annualized.
The accompanying notes are an integral part of these financial statements.
48 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
Notes to Financial Statements | 2/29/12 (unaudited)
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.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting 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:
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 49
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. Short-term fixed income securities with remaining
maturities of sixty days or less generally are valued at amortized cost.
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. Examples
of a significant event might include political or economic news, corporate
restructurings, natural disasters, terrorist activity or trading halts. Thus,
the valuation of the Fund's securities may differ from exchange prices.
At February 29 2012, no securities were valued using fair value methods
(other than 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.
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.
50 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
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
federal and state tax authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
The tax character of current year distributions payable will be determined at
the end of the current taxable year. The tax character of distributions paid
during the year ended August 31, 2011 was as follows:
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 51
----------------------------------------------------------------------------
2011
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $8,109,954
----------------------------------------------------------------------------
Total $8,109,954
============================================================================
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 $2,977 in underwriting commissions on the sale of Class A shares
during the six months ended February 29 2012. During the six months ended
February 29, 2012, the Fund recognized gains of $7,501 in settlement of class
action lawsuits from several different companies, as reflected on the
Statement of Operations.
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).
52 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
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.
G. Risks
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.
H. 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 as well as any fluctuation in
foreign currency exchange rates where applicable. The use of futures
contracts involves, to varying degrees, elements of market, interest rate,
currency exchange rate 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
six months ended February 29, 2012 was 46.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 53
At February 29, 2012, open futures contracts were as follows.
--------------------------------------------------------------------------------
Number of
Contracts Settlement Unrealized
Type Long/(Short) Month Value Gain
--------------------------------------------------------------------------------
US 5 Yr Note (45) 6/12 $5,173,219 $8,034
--------------------------------------------------------------------------------
Total (45) $5,173,219 $8,034
I. 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.
J. Securities Lending
The Fund may lend 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 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. At February 29, 2012 the Fund had no securities on loan.
54 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
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. Fees waived and expenses reimbursed during the six months
ended February 29, 2012 are reflected on the Statement of Operations. These
expense limitations are in effect through January 1, 2013 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
$2,321 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 29, 2012.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the six months ended February 29, 2012, such out-of-pocket expenses by
class of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $101,641
Class B 1,240
Class C 7,051
Class Y 12,568
--------------------------------------------------------------------------------
Total $122,500
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $50,158 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 29, 2012.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 55
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 $1,063 in distribution fees payable to PFD at February 29,
2012.
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 six months ended February 29
2012, CDSCs in the amount of $6,940 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS, which
may result in a reduction in the Fund's total expenses due to interest earned
on cash held by PIMSS. For the six months ended February 29 2012, the Fund's
expenses were not reduced under such arrangements.
6. Forward Foreign Currency Contracts
At February 29, 2012, 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 six months ended February 29, 2012 was $294,928.
There were no open
56 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
settlement hedges at February 29, 2012. Open portfolio hedges at February 29,
2012 were as follows:
------------------------------------------------------------------------------------------------
Net Net
Contracts to In Exchange Settlement Unrealized
Currency deliver For Date Value Loss
------------------------------------------------------------------------------------------------
NOK (Norwegian Krone) (1,250,000) $208,520 4/10/12 $(223,365) $(14,845)
7. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of February 29, 2012 were as follows:
--------------------------------------------------------------------------------------------------
Derivatives not
accounted for as
hedging instruments
under Accounting
Standards Codification
(ASC) 815 Asset Derivatives 2012 Liabilities Derivatives 2012
--------------------------------------------------------------------------------------------------
Balance Sheet Balance Sheet
Location Value Location Value
--------------------------------------------------------------------------------------------------
Foreign Exchange Contracts Receivables $ -- Payables $(14,845)
--------------------------------------------------------------------------------------------------
Futures Contracts Receivables $ -- Payables $ 8,034*
--------------------------------------------------------------------------------------------------
Total $ -- $ (6,811)*
--------------------------------------------------------------------------------------------------
* 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.
The effect of derivative instruments on the Statement of Operations for the six
months ended February 29, 2012 was as follows:
------------------------------------------------------------------------------------------------------
Derivatives not Change in
accounted for as Location of Gain Realized Gain Unrealized
hedging instruments or (Loss) On or (Loss) Gain or (Loss)
under Accounting Derivatives on Derivatives on Derivatives
Standards Codification Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
------------------------------------------------------------------------------------------------------
Foreign Exchange Net realized gain (loss) on forward $ 13,697
Contracts foreign currency contracts and other
assets and liabilities denominated in
foreign currencies
Foreign Exchange Change in unrealized gain (loss) on $ (5,187)
Contracts forward foreign currency contracts
and other assets and liabilities
denominated in foreign currencies
Futures Contracts Net realized gain (loss) on futures $(277,647)
contracts
Futures Contracts Change in net realized gain (loss) on $224,034
futures contracts
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 57
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Short Term Income Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether
to renew the investment advisory agreement for the Fund.
The contract review process began in March 2011 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the
process. In July 2011, the Trustees approved the format of the contract review
materials and submitted their formal request to PIM to furnish information
necessary to evaluate the terms of the investment advisory agreement. The
contract review materials were provided to the Trustees in July 2011 and
September 2011. After reviewing and discussing the materials, the Trustees
submitted a request for additional information to PIM, and materials were
provided in response to this request. Meetings of the Independent Trustees of
the Fund were held in July, September, October, and November, 2011 to review
and discuss the contract review materials. In addition, the Trustees took into
account the information related to the Fund provided to the Trustees at each
regularly scheduled meeting.
At a meeting held on November 29, 2011, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for
the Fund, its research process and its process for trade execution. The
Trustees considered the resources of PIM and the personnel of PIM who provide
investment management services to the Fund. The Trustees considered the
non-investment resources and personnel of PIM involved in PIM's services to the
Fund, including PIM's compliance and legal resources and personnel. The
Trustees also considered the substantial attention and high priority given by
PIM's senior management to the Pioneer fund complex. In addition, the Trustees
considered PIM's plans to increase resources in its investment management
function and other enhancements to PIM's advisory capabilities.
58 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory
agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
performance of its peer group of funds as classified by Morningstar, Inc.
(Morningstar), an independent provider of investment company data, and with the
performance of the Fund's benchmark index. The Trustees considered that the
Fund's annualized total return was in the third quintile of its Morningstar
category for the one and five year periods ended June 30, 2011 and in the
second quintile of its Morningstar category for the three year period ended
June 30, 2011. (In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Fund's shareowners. Thus,
highest relative performance would be first quintile and lowest relative
expenses would also be first quintile.) The Trustees also considered that the
Fund's twelve month average gross portfolio yield (using month end 30 day
effective yields) exceeded the twelve month average yield of the Fund's
benchmark index. The Trustees concluded that the investment performance of the
Fund was satisfactory.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund
in comparison to the management fees and expense ratios of its peer group of
funds as classified by Morningstar and also to the expense ratios of a peer
group of funds selected on the basis of criteria determined by the Independent
Trustees for this purpose using data provided by Strategic Insight Mutual Trust
Research and Consulting, LLC (Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2011 was in the second quintile relative to the management fees
paid by other funds in its Morningstar peer group for the comparable period.
The Trustees also considered that the Fund's expense ratio for the twelve
months ended June 30, 2011 was in the fourth quintile relative to its Strategic
Insight peer group for the comparable period. The Trustees considered the
impact of the Fund's transfer agency and other non-management fee expenses on
the Fund's expense ratio. They noted the Fund's small asset size compared to
most of the
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 59
other funds in its peer group and considered that non-management fee operating
expenses and transfer agency expenses generally are spread over a smaller asset
base than the other funds in the peer group, which results in these fees being
significantly higher as a percentage of assets. The Trustees considered the
effect to which PIM was waiving fees and/or reimbursing expenses in order to
limit the ordinary operating expenses of the Fund. The Trustees also noted that
the Fund's expense ratio was less than five basis points higher than the median
expense ratio of its peer group.
The Trustees reviewed gross and net management fees charged by PIM to its
institutional and other clients, including publicly offered European funds,
U.S. registered investment companies (in a sub-advisory capacity), and
unaffiliated foreign and domestic separate accounts. The Trustees also
considered PIM's costs in providing services to the Fund and to its other
clients and considered the differences in management fees and profit margins
for PIM's Fund and non-Fund services. In evaluating the fees associated with
PIM's client accounts, the Trustees took into account the respective demands,
resources and complexity associated with the Fund and client accounts. The
Trustees noted that in some instances the fee rates for those clients were
lower than the management fee for the Fund and considered that, under the
investment advisory agreement with the Fund, PIM performs additional services
for the Fund that it does not provide to those other clients or services that
are broader in scope, including oversight of the Fund's other service providers
and activities related to compliance and the extensive regulatory and tax
regimes to which the Fund is subject. The Trustees also considered the
different entrepreneurial risks associated with PIM's management of the Fund
and the other client accounts. The Trustees concluded that the management fee
payable by the Fund to PIM was reasonable in relation to the nature and quality
of the services provided by PIM.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
60 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with funds and fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify, rarely identifiable on a Fund-by-Fund basis, and that, among other
factors that may be relevant, are the following: fee levels, expense
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Funds. The Trustees noted that
profitability also may be an indicator of the availability of any economies of
scale, although profitability may vary for other reasons particularly, for
example during the recent difficult periods for financial markets, as the level
of services was maintained notwithstanding a significant decline in PIM's fee
revenues from the Funds. Accordingly, the Trustees concluded that economies of
scale, if any, were being appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with
the Fund. The Trustees considered the character and amount of fees paid by the
Fund, other than under the investment advisory agreement, for services provided
by PIM and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. The Trustees
considered the intangible benefits to PIM by virtue of its relationship with
the Fund and the other Pioneer funds. The Trustees concluded that the receipt
of these benefits was reasonable in the context of the overall relationship
between PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 61
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham Christopher J. Kelley, Secretary
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at us.pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at www.sec.gov.
62 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
This page for your notes.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 63
This page for your notes.
64 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
This page for your notes.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 65
This page for your notes.
66 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
This page for your notes.
Pioneer Short Term Income Fund | Semiannual Report | 2/29/12 67
This page for your notes.
68 Pioneer Short Term Income Fund | Semiannual Report | 2/29/12
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 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.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
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AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
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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.
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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.
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(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Short Term Income Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date April 27, 2012
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 April 27, 2012
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date April 27, 2012
* Print the name and title of each signing officer under his or her signature.