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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21460
Pioneer Series Trust II
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: December 31
Date of reporting period: January 1, 2013 through June 30, 2013
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer AMT-Free
Municipal Fund
--------------------------------------------------------------------------------
Semiannual Report | June 30, 2013
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Ticker Symbols:
Class A PBMFX
Class B PBMUX
Class C MNBCX
Class Y PBYMX
[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 31
Notes to Financial Statements 39
Trustees, Officers and Service Providers 46
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 1
President's Letter
Dear Shareowner,
When we look at the U.S. economy as we head into the second half of 2013, we
continue to see slow, but ongoing, growth. Employment has been steadily rising.
Consumer incomes, savings, wealth, and debt-servicing capacity have been solid
buttresses for the recovering housing and auto industries. Industrial activity
is growing only modestly, but current corporate profits are generally solid and
balance sheets appear able to support needed capital spending and dividend*
payouts. The scaled-back "fiscal cliff" tax increases and spending cuts have
meaningfully cut the budget deficit without, it seems, driving the economy back
into recession. In addition, we feel that continuing slack in labor markets and
capacity utilization offers the potential for continuing growth without
bottlenecks and rising inflation.
After observing the strengthening economic trends, the Federal Reserve (the Fed)
has hinted that it may begin to scale back its bond purchases (currently $85
billion per month in quantitative easing, or "QE") later in 2013, and could
terminate the purchases altogether sometime in 2014, depending on subsequent
economic data releases. Pioneer believes that, barring an external shock, modest
economic growth can be sustained at least over the next couple of years without
continuous, aggressive intervention from the Fed.
The Fed has also said that short-term interest rates are likely to remain near
zero for some time to come. Given that inflation remains subdued and
unemployment remains high, there is no urgency about raising rates.
While inflation is not a near-term concern, the Fed's aggressive monetary
policies helped investors drive long-term Treasury yields to unsustainably low
levels. A return to more normal levels in response to expectations of a stronger
economy and the potential for less QE resulted in disappointing returns for bond
investors during the first half of 2013, but the stock market rewarded
shareholders who were undaunted by the double-barreled threat of the "fiscal
cliff " and debt-ceiling debates at the beginning of 2013.
The Standard & Poor's 500 Index, a broad measure of the U.S. stock market,
returned 13.82% during the first six months of 2013, while the Barclays
Aggregate Bond Index, which tracks the performance of a higher-quality U.S. bond
universe, returned -2.44%. Investors showed a rising preference for
higher-yielding corporate paper over government bonds during the first half of
2013, helping the Bank of America Merrill Lynch High Yield Master II Index,
which measures the performance of high-yield corporate bonds, to post a 1.50%
return for the six months ended June 30, 2013. Three-month Treasury bills,
generally regarded as essentially "risk free" by the markets, returned 0.03% in
the first half of 2013.
* Dividends are not guaranteed.
2 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
There are certainly risks and uncertainties that continue to plague the global
economy. Europe remains in recession and a number of countries in the emerging
markets have experienced difficulties. Still, a potential ending of the European
recession, continuing economic improvement in Japan in response to the new
government's quantitative easing policies, and a "soft landing" of 7% growth in
China could very well result in an improving global outlook over the remainder
of 2013.
There are also geopolitical worries abroad and political fights at home, and
while most of the widely recognized risks we've outlined may already be "priced
in" to the market, we believe investors should continue to expect market
volatility.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification alone does not assure a
profit or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. 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, keeping in mind that there is no single best strategy that
works for every investor.
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in global equity and bond markets, using in-depth research to identify
undervalued individual securities, and using thoughtful risk management to
construct portfolios which balance potential risks and rewards in an
ever-changing world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 3
Portfolio Management Discussion | 6/30/13
In the following interview, portfolio manager David Eurkus reviews the market
environment for municipal investments and the performance of AMT-Free Municipal
Fund during the six months ended June 30, 2013. Mr. Eurkus, a senior vice
president and a portfolio manager at Pioneer, manages the Fund along with
Jonathan Chirunga, a vice president and a portfolio manager at Pioneer. Mr.
Chirunga was named as a portfolio manager on the Fund on May 17, 2013, replacing
Timothy Pynchon.
Q How did the Fund perform during the six months ended June 30, 2013?
A Pioneer AMT-Free Municipal Fund's Class A shares returned -4.16% at net
asset value during the six months ended June 30, 2013, while the Fund's
benchmark, the Barclays Municipal Bond Index (the Barclays Index), returned
-2.69%. During the same period, the average return of the 262 mutual funds
in Lipper's General Municipal Debt Funds category was -3.54%.
Q How would you describe the investment environment for tax-exempt bonds
during the six months ended June 30, 2013?
A The municipal bond market experienced two distinctly different environments
during the first six months of 2013. At the beginning of the year,
tax-exempt issues were continuing to benefit from economic conditions that
were conducive to gradual declines in taxable and tax-exempt interest rates.
The U.S. economy maintained its growth trend, though at a moderate pace, and
we saw no significant inflationary pressures on the domestic front. The U.S.
Federal Reserve Board (the Fed) once again stated that short-term interest
rates would remain near zero, with no indications that it would engage in
monetary tightening anytime soon. With Europe still gripped by recession and
investors worried about a significant economic slowdown in China, the only
major economy in growth mode at the time was that of the United States.
In April 2013, however, it became apparent that conditions for the bond
markets would soon change. Fed officials began to hint that the central
bank's program of monthly asset purchases, known as quantitative easing
(QE), might be tapered in the relative near term if the U.S. economy
continued to improve. In response to that news, many investors--concerned
that the Fed would taper QE too quickly, allow long-term interest rates to
rise and thus cut the economic recovery short--began to
4 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
sell out of stocks and bonds. Redemptions in the tax-exempt mutual fund
market soon picked up, and then continued through much of the remainder of
the six-month period. Additional comments later in the period by Fed
Chairman Bernanke, which reaffirmed the Fed's intentions, gave additional
momentum to both the redemptions and the bond market sell-off. By the close
of the second quarter (June 30), the municipal bond market had experienced
its worst sell-off in 25 years. Right around that same time, Fed officials
attempted to reassure investors with regard to any potential tapering of QE
by stating that any slowdown of bond purchases would be dependent on
continued positive U.S. economic data releases; but, by then, the damage had
been done.
Q How would you describe your overall investment strategy for the Fund during
the six months ended June 30, 2013?
A Our principal investment strategy for the portfolio is to purchase and hold
discounted long-term municipal bonds, as those types of investments offer
the highest yields in the tax-exempt marketplace. We believe that, over the
long term, our broadly diversified* strategy will enable the Fund to
outperform its benchmark and its Lipper peers. The Fund also continues to
have a strong focus on sectors vital to municipalities nationwide. The
sectors include health care/hospitals, power and energy, public and private
education, and transportation.
Q What were the most significant contributors to and detractors from the
Fund's performance relative to the benchmark Barclays Index during the six
months ended June 30, 2013?
A During a very difficult six-month period for municipal bond investing, and
especially for long-duration tax-exempt bonds, many of the Fund's longer-
maturity holdings detracted from benchmark-relative performance. (Duration
is a measure of a portfolio's price-sensitivity to changes in interest
rates.) One example of the portfolio's positioning that detracted from
performance was the Fund's holdings of non-callable bonds issued by the
Massachusetts Health & Education Authority for the Massachusetts Institute
of Technology, with a duration of 25 years. The bonds had contributed
significantly to the Fund's performance over the prior three years, but had
a negative impact on performance during the first six months of 2013. The
Fund did, however, own a few longer-maturity municipals that contributed to
relative returns during the period, with the largest contribution coming
from a position in a revenue bond issued by the Pennsylvania State Higher
Education Facilities Authority.
* Diversification does not assure a profit nor protect against loss in a
declining market.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 5
Q What is your outlook for the municipal market for the remainder of 2013?
A We feel that the sharp adjustment that took place in the taxable and
tax-exempt bond markets during the second quarter of 2013 was very much
overdone, and that it has created an unusual buying opportunity within the
municipal market. Because long-term tax-free rates rose by such a large
degree, and so quickly, yields on investment-grade municipal securities have
moved higher than those of taxable bonds of similar maturity. Because
tax-exempt bond yields are now so much higher, we believe we may see a
substantial reduction in municipal issuance as states, cities and agencies
will most likely be reluctant or even unable to pay higher coupon rates on
potential new issues or on refinancings. We believe that a resulting lack of
municipal supply would be constructive for the tax-exempt market going
forward, and we already have been seeing increased market demand as taxable
bond buyers enter the municipal market seeking attractive tax-equivalent
yields.
The Fund will continue to hold select long-term tax-exempt bonds that we
believe have the strongest opportunity to perform well over time. We will
also continue to closely monitor the Fund's holdings to ensure their
integrity and quality as well as the timely payment of principal and
interest on the investments. The Fund remains broadly diversified across
many municipal bond sectors as of June 30, 2013, and the vast majority of
the portfolio's holdings are allocated to bonds with dedicated revenue
streams.
We believe that Pioneer AMT-Free Municipal Fund continues to be a suitable
option for long-term investors seeking high income that is free from federal
taxes.
6 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
Please refer to the Schedule of Investments on pages 16-30 for a full listing of
Fund securities.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making the Fund more susceptible to
any economic, political, or regulatory developments or other risks affecting
those industries and sectors.
A portion of income may be subject to local, state, federal and/or alternative
minimum tax. Capital gains, if any, are subject to capital gains tax.
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 opinions should not
be relied upon for any other purposes.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 7
Portfolio Summary | 6/30/13
Portfolio Quality
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
AAA 9.7%
AA 25.1%
A 26.5%
BBB 25.5%
BB 2.8%
B 4.5%
CCC 0.1%
Not Rated 5.8%
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.
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Health 23.1%
Insured 21.3%
Education 11.9%
Special Revenues 9.9%
Power 7.1%
Pollution Control Revenue 6.1%
Transportation 5.7%
General Obligation 5.5%
Various Revenues 3.5%
Escrowed 2.3%
Housing 1.9%
Water & Sewer 1.7%
10 Largest Holdings*
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
1. Massachusetts Health & Educational Facilities Authority, 5.5%, 7/1/32 1.77%
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2. Public Authority for Colorado Energy, 6.5%, 11/15/38 1.75
-----------------------------------------------------------------------------------------
3. North Carolina Eastern Municipal Power Agency, 6.0%, 1/1/22 1.75
-----------------------------------------------------------------------------------------
4. Texas Private Activity Bond Surface Transportation Corp., 7.0%, 6/30/40 1.46
-----------------------------------------------------------------------------------------
5. Golden State Tobacco Securitization Corp., 5.125%, 6/1/47 1.36
-----------------------------------------------------------------------------------------
6. California Statewide Communities Development Authority, 5.75%, 7/1/47 1.33
-----------------------------------------------------------------------------------------
7. Phoenix Civic Improvement Corp., 7/1/43 1.26
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8. Tobacco Settlement Authority of Washington, 6.625%, 6/1/32 1.25
-----------------------------------------------------------------------------------------
9. Dallas County Utility & Reclamation District, 5.375%, 2/15/29 1.24
-----------------------------------------------------------------------------------------
10. FYI Properties, 5.5%, 6/1/39 1.24
-----------------------------------------------------------------------------------------
* 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 AMT-Free Municipal Fund | Semiannual Report | 6/30/13
Prices and Distributions | 6/30/13
Net Asset Value per Share
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--------------------------------------------------------------------------------
Class 6/30/13 12/31/12
--------------------------------------------------------------------------------
A $13.70 $14.56
--------------------------------------------------------------------------------
B $13.58 $14.46
--------------------------------------------------------------------------------
C $13.59 $14.44
--------------------------------------------------------------------------------
Y $13.66 $14.52
--------------------------------------------------------------------------------
Distributions per Share: 1/1/13-6/30/13
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2660 $ -- $ --
--------------------------------------------------------------------------------
B $0.1990 $ -- $ --
--------------------------------------------------------------------------------
C $0.2099 $ -- $ --
--------------------------------------------------------------------------------
Y $0.2850 $ -- $ --
--------------------------------------------------------------------------------
Index Definition
--------------------------------------------------------------------------------
The Barclays Municipal Bond Index is an unmanaged, broad measure of the
municipal bond market. Index returns are calculated monthly, assume reinvestment
of dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. 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 shown on pages 10-13.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 9
Performance Update | 6/30/13 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer AMT-Free Municipal Fund at public offering price,
compared to that of the Barclays Municipal Bond Index.
Average Annual Total Returns
(As of June 30, 2013)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
10 Years 4.50% 4.03%
5 Years 5.62 4.65
1 Year 1.08 -3.45
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2013)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.83% 0.82%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer AMT-Free Barclays Municipal
Municipal Fund Bond Index
6/30/2003 $ 9,550 $ 10,000
6/30/2004 $ 9,564 $ 10,076
6/30/2005 $ 10,567 $ 10,906
6/30/2006 $ 10,690 $ 11,002
6/30/2007 $ 11,183 $ 11,519
6/30/2008 $ 11,291 $ 11,891
6/30/2009 $ 10,963 $ 12,340
6/30/2010 $ 12,530 $ 13,526
6/30/2011 $ 12,889 $ 13,996
6/30/2012 $ 14,680 $ 15,382
6/30/2013 $ 14,839 $ 15,418
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.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Pioneer AMT-Free Municipal Fund acquired the assets and liabilities of
predecessor fund Safeco Municipal Bond Fund on December 10, 2004. The
performance shown for Class A shares of the Fund for periods prior to December
10, 2004, is based on the performance of the predecessor fund's Class A shares,
which has been restated to reflect differences in any applicable sales charges
(but not differences in expenses). If all the expenses of the Fund were
reflected, the performance of the Fund's Class A shares would be lower than the
performance shown.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through May 1, 2014, for Class A shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
Performance Update | 6/30/13 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer AMT-Free Municipal Fund, compared to that of the
Barclays Municipal Bond Index.
Average Annual Total Returns
(As of June 30, 2013)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 3.60% 3.60%
5 Years 4.65 4.65
1 Year -0.06 -3.95
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2013)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.75% 1.72%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer AMT-Free Barclays Municipal
Municipal Fund Bond Index
6/30/2003 $ 10,000 $ 10,000
6/30/2004 $ 9,936 $ 10,076
6/30/2005 $ 10,887 $ 10,906
6/30/2006 $ 10,943 $ 11,002
6/30/2007 $ 11,343 $ 11,519
6/30/2008 $ 11,345 $ 11,891
6/30/2009 $ 10,921 $ 12,340
6/30/2010 $ 12,369 $ 13,526
6/30/2011 $ 12,622 $ 13,996
6/30/2012 $ 14,247 $ 15,382
6/30/2013 $ 14,239 $ 15,418
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 Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). The maximum CDSC is 4% and declines over five years. For more complete
information, please see the prospectus.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Pioneer AMT-Free Municipal Fund acquired the assets and liabilities of
predecessor fund Safeco Municipal Bond Fund on December 10, 2004. The
performance shown for Class B shares of the Fund for periods prior to December
10, 2004, is based on the performance of the predecessor fund's Class B shares,
which has been restated to reflect differences in any applicable sales charges
(but not differences in expenses). If all the expenses of the Fund were
reflected, the performance of the Fund's Class B shares would be lower than the
performance shown.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through May 1, 2014, for Class B shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 11
Performance Update | 6/30/13 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer AMT-Free Municipal Fund, compared to that of the
Barclays Municipal Bond Index.
Average Annual Total Returns
(As of June 30, 2013)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(10/1/2003) 3.83% 3.83%
5 Years 4.77 4.77
1 Year 0.31 0.31
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2013)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.58%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer AMT-Free Barclays Municipal
Municipal Fund Bond Index
10/31/2003 $ 10,000 $ 10,000
6/30/2004 $ 10,061 $ 10,119
6/30/2005 $ 10,992 $ 10,952
6/30/2006 $ 11,049 $ 11,049
6/30/2007 $ 11,474 $ 11,568
6/30/2008 $ 11,496 $ 11,942
6/30/2009 $ 11,065 $ 12,393
6/30/2010 $ 12,542 $ 13,584
6/30/2011 $ 12,801 $ 14,056
6/30/2012 $ 14,468 $ 15,448
6/30/2013 $ 14,513 $ 15,484
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.
Pioneer AMT-Free Municipal Fund acquired the assets and liabilities of
predecessor fund Safeco Municipal Bond Fund on December 10, 2004. The
performance shown for Class C shares of the Fund for periods prior to December
10, 2004, is based on the performance of the predecessor fund's Class C shares,
which has been restated to reflect differences in any applicable sales charges
(but not differences in expenses). If all the expenses of the Fund were
reflected, the performance of the Fund's Class C shares would be lower than the
performance shown.
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 AMT-Free Municipal Fund | Semiannual Report | 6/30/13
Performance Update | 6/30/13 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer AMT-Free Municipal Fund, compared to that of the
Barclays Municipal Bond Index.
Average Annual Total Returns
(As of June 30, 2013)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 4.67% 4.67%
5 Years 5.86 5.86
1 Year 1.28 1.28
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2013)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.58% 0.55%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer AMT-Free Barclays Municipal
Municipal Fund Bond Index
6/30/2003 $ 5,000,000 $ 5,000,000
6/30/2004 $ 5,006,229 $ 5,037,875
6/30/2005 $ 5,531,321 $ 5,452,842
6/30/2006 $ 5,595,464 $ 5,501,110
6/30/2007 $ 5,863,354 $ 5,759,382
6/30/2008 $ 5,936,831 $ 5,945,605
6/30/2009 $ 5,778,326 $ 6,170,019
6/30/2010 $ 6,615,904 $ 6,763,099
6/30/2011 $ 6,828,880 $ 6,998,142
6/30/2012 $ 7,794,266 $ 7,690,987
6/30/2013 $ 7,893,655 $ 7,709,098
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.
Pioneer AMT-Free Municipal Fund acquired the assets and liabilities of
predecessor Safeco Municipal Bond Fund on December 10, 2004. The performance
shown for Class Y shares of the Fund for periods prior to December 10, 2004, is
based on the net asset value performance of the predecessor fund's Class A
shares, which has not been restated to reflect differences in expenses,
including 12b-1 fees applicable to Class A shares. If all the expenses of the
Fund were reflected, the performance of the Fund's Class Y shares would be lower
than the performance shown.
Performance shown for the period between December 10, 2004, and the inception of
Class Y shares on November 10, 2006, reflects the NAV performance of Pioneer
AMT-Free Municipal Fund's Class A shares. The performance does not reflect
differences in expenses, including the Rule 12b-1 fees applicable to Class A
shares. Since fees for Class A shares are generally higher than those of Class Y
shares, the performance of Class Y shares for the period between December 10,
2004, and the inception of Class Y shares on November 10, 2006, would have been
higher than that shown. Class Y shares are not subject to sales charges and are
available for limited groups of eligible investors, including institutional
investors. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through May 1, 2014, for Class Y shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 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 AMT-Free Municipal Fund
Based on actual returns from January 1, 2013, through June 30, 2013.
----------------------------------------------------------------------------------------------------------
Share Class A B C Y
----------------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 1/1/13
----------------------------------------------------------------------------------------------------------
Ending Account $ 958.40 $ 952.30 $ 955.00 $ 959.60
Value on 6/30/13
----------------------------------------------------------------------------------------------------------
Expenses Paid $ 3.98 $ 8.33 $ 7.61 $ 2.67
During Period*
----------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.82%, 1.72%,
1.57% and 0.55%, for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
14 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer AMT-Free Municipal Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from January 1, 2013, through June 30, 2013.
----------------------------------------------------------------------------------------------------------
Share Class A B C Y
----------------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 1/1/13
----------------------------------------------------------------------------------------------------------
Ending Account $1,020.73 $1,016.27 $1,017.01 $1,022.07
Value on 6/30/13
----------------------------------------------------------------------------------------------------------
Expenses Paid $ 4.11 $ 8.60 $ 7.85 $ 2.76
During Period*
----------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.82%, 1.72%,
1.57% and 0.55%, for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 15
Schedule of Investments | 6/30/13 (unaudited)
--------------------------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.1%
Commercial Services & Supplies -- 0.1%
Research & Consulting Services -- 0.1%
200 Center For Medical Science, Inc. (144A)* $ 640,000
--------------------------------------------------------------------------------------------------------------
Total Commercial Services & Supplies $ 640,000
--------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $640,000) $ 640,000
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited)
--------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 99.0%
Alabama -- 0.2%
1,500,000 NR/NR Sylacauga Health Care Authority,
6.0%, 8/1/35 $ 1,471,140
--------------------------------------------------------------------------------------------------------------
Arizona -- 4.3%
5,145,000 AA-/NR Arizona Health Facilities Authority,
5.5%, 1/1/38 $ 5,427,924
1,000,000 A/A1 Maricopa County Pollution Control
Corp., 5.0%, 6/1/35 1,040,900
4,000,000 AA/Aa3 Phoenix Civic Improvement Corp.,
7/1/25 4,594,800
8,005,000 AA/Aa3 Phoenix Civic Improvement Corp.,
7/1/26 9,140,029
10,000,000 AA/Aa3 Phoenix Civic Improvement Corp.,
7/1/43 10,817,400
3,470,000 AA/Aa2 Pima County Industrial Development
Authority, 5.0%, 7/1/20 3,851,006
500,000 BBB-/NR Pima County Industrial Development
Authority, 6.1%, 6/1/45 492,370
949,000 NR/Baa3 Pima County Industrial Development
Authority, 6.75%, 7/1/31 949,152
---------------
$ 36,313,581
--------------------------------------------------------------------------------------------------------------
California -- 12.5%
10,000,000 A/A3 Alameda Corridor Transportation
Authority, 0.0%, 10/1/31 (b) $ 3,896,000
410,000 AA-/A2 Anaheim Public Financing Authority,
0.0%, 9/1/22 (b) 278,410
13,865,000 AA-/A2 Anaheim Public Financing Authority,
0.0%, 9/1/23 (b) 9,088,646
12,595,000 AA-/A2 Anaheim Public Financing Authority,
0.0%, 9/1/36 (b) 3,178,726
3,520,000 CCC/NR California County Tobacco Securitization
Agency, 0.0%, 6/1/33 (b) 797,069
1,000,000 AAA/Aaa California Educational Facilities Authority,
5.25%, 4/1/40 1,207,870
2,000,000 A/A3 California Health Facilities Financing
Authority, 5.625%, 7/1/32 2,061,720
The accompanying notes are an integral part of these financial statements.
16 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
California -- (continued)
4,000,000 BBB/Baa2 California Municipal Finance
Authority, 5.25%, 2/1/37 $ 4,031,000
4,875,000 NR/Baa2 California Statewide Communities
Development Authority, 5.0%, 5/15/30 4,905,908
4,125,000 NR/Baa2 California Statewide Communities
Development Authority, 5.0%, 5/15/38 4,021,586
6,455,000 BBB+/Baa2 California Statewide Communities
Development Authority, 5.0%, 8/15/47 6,492,439
10,000,000 AA-/Aa3 California Statewide Communities
Development Authority, 5.25%,
11/15/48 10,136,700
4,000,000 NR/Baa1 California Statewide Communities
Development Authority, 5.375%,
12/1/37 4,089,760
10,000,000 AA-/A1 California Statewide Communities
Development Authority, 5.75%,
7/1/47 11,098,200
4,000,000 A/NR California Statewide Communities
Development Authority, 5.75%,
8/15/38 4,235,960
1,000,000 NR/A1 Franklin-Mckinley School District,
6.0%, 7/1/16 1,138,710
2,100,000 BBB-/WR Fresno Joint Powers Financing Authority,
4.75%, 9/1/28 1,921,983
15,000,000 B-/B3 Golden State Tobacco Securitization
Corp., 5.125%, 6/1/47 11,606,250
3,000,000 A-/Baa2 Long Beach Bond Finance Authority,
5.5%, 11/15/37 3,166,170
2,180,000 A/Baa1 Pomona Unified School District,
6.55%, 8/1/29 2,670,740
1,000,000 BBB+/NR Redding Redevelopment Agency,
4.5%, 9/1/26 958,000
3,000,000 A-/NR Rialto Redevelopment Agency,
6.25%, 9/1/37 3,144,870
1,500,000 AA-/Aa1 San Jose Evergreen Community College
District, 5.0%, 8/1/41 1,585,215
2,085,000 NR/Aa2 San Juan Unified School District,
5.0%, 8/1/25 2,314,121
1,500,000 A/Ba1 Santa Cruz County Redevelopment
Agency, 6.625%, 9/1/29 1,695,930
1,405,000 A+/Aa3 Santa Maria Joint Union High School
District, 0.0%, 8/1/27 (b) 683,434
3,500,000 A+/Aa2 Saugus Union School District, 0.0%,
8/1/23 (b) 2,273,250
3,750,000 BB+/B3 Tobacco Securitization Authority of
Southern California, 5.0%, 6/1/37 3,091,388
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 17
Schedule of Investments | 6/30/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
California -- (continued)
1,125,000 B+/B2 Tobacco Securitization Authority
of Southern California, 5.125%, 6/1/46 $ 903,161
---------------
$ 106,673,216
--------------------------------------------------------------------------------------------------------------
Colorado -- 4.3%
2,750,000 5.25 AA-/Aa3 Colorado Health Facilities Authority,
Floating Rate Note, 11/15/35 $ 2,910,682
15,000,000 A/Baa1 E-470 Public Highway Authority,
0.0%, 9/1/23 (b) 9,368,400
5,000,000 A/Baa1 E-470 Public Highway Authority, 0.0%,
9/1/27 (b) 2,385,300
12,500,000 A-/Baa2 Public Authority for Colorado Energy,
6.5%, 11/15/38 14,916,623
2,500,000 NR/Baa3 Regional Transportation District,
6.0%, 1/15/26 2,825,450
1,250,000 NR/Baa3 Regional Transportation District,
6.0%, 1/15/34 1,359,775
1,000,000 NR/Baa3 Regional Transportation District,
6.0%, 1/15/41 1,094,100
2,000,000 NR/Baa3 Regional Transportation District,
6.5%, 1/15/30 2,263,720
---------------
$ 37,124,050
--------------------------------------------------------------------------------------------------------------
Connecticut -- 1.0%
4,795,000 AAA/Aaa Connecticut State Health &
Educational Facility Authority,
5.0%, 7/1/42 $ 5,068,651
1,000,000 NR/NR Connecticut State Health &
Educational Facility Authority,
5.5%, 7/1/17 1,001,710
2,470,000 B/NR Mohegan Tribe of Indians of
Connecticut, 6.25%, 1/1/31 2,470,543
---------------
$ 8,540,904
--------------------------------------------------------------------------------------------------------------
Delaware -- 0.6%
5,000,000 NR/Baa3 Delaware State Economic
Development Authority, 5.375%,
10/1/45 $ 4,868,850
--------------------------------------------------------------------------------------------------------------
District of Columbia -- 2.1%
10,000,000 BBB/Baa1 District of Columbia Tobacco
Settlement Financing Corp.,
6.75%, 5/15/40 $ 10,174,600
7,950,000 NR/A1 District of Columbia, 4.25%, 6/1/37 7,449,945
---------------
$ 17,624,545
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Florida -- 3.8%
7,500,000 NR/Baa1 City of Tallahassee Florida,
6.375%, 12/1/30 $ 7,507,275
520,000 NR/NR County of Madison Florida,
6.0%, 7/1/25 486,226
5,000,000 A/A2 County of Miami-Dade Florida
Aviation Revenue, 5.5%, 10/1/41 5,297,650
4,885,000 A/Aa3 County of Miami-Dade Florida, 5.0%,
6/1/22 5,152,405
3,000,000 NR/Baa1 Escambia County Health Facilities
Authority, 6.0%, 8/15/36 3,203,820
1,390,000 NR/NR Florida Development Finance Corp.,
6.0%, 9/15/30 1,418,356
1,830,000 A+/Aa3 Greater Orlando Aviation Authority,
5.0%, 10/1/25 2,041,640
1,525,000 BB/NR Lee County Industrial Development
Authority Florida, 4.75%, 6/15/14 1,546,808
2,000,000 BB/NR Lee County Industrial Development
Authority Florida, 5.375%, 6/15/37 1,861,320
3,400,000 NR/NR St. Johns County Industrial Development
Authority, 6.0%, 8/1/45 3,590,332
---------------
$ 32,105,832
--------------------------------------------------------------------------------------------------------------
Georgia -- 1.6%
5,750,000 A/Baa1 Burke County Development Authority,
7.0%, 1/1/23 $ 6,747,510
5,000,000 A-/Baa2 Main Street Natural Gas, Inc., 5.5%,
9/15/28 5,618,750
1,500,000 A/A2 Municipal Electric Authority of Georgia,
5.625%, 1/1/26 1,715,775
---------------
$ 14,082,035
--------------------------------------------------------------------------------------------------------------
Illinois -- 3.4%
3,000,000 NR/NR Illinois Finance Authority, 5.1%,
8/15/31 $ 3,082,260
1,580,000 NR/A2 Illinois Finance Authority, 5.25%,
10/1/24 (Pre-Refunded) 1,676,080
1,000,000 BBB+/Baa1 Illinois Finance Authority, 5.25%,
5/1/40 1,009,650
4,000,000 BBB-/NR Illinois Finance Authority, 5.5%,
8/15/30 4,136,760
1,600,000 AA-/A3 Illinois Finance Authority, 6.0%,
8/15/25 1,655,920
1,000,000 NR/NR Illinois Finance Authority, 6.125%,
5/15/27 1,016,950
5,000,000 NR/Baa3 Illinois Finance Authority, 6.5%,
4/1/39 5,372,600
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 19
Schedule of Investments | 6/30/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Illinois -- (continued)
20,000,000 AAA/Baa1 Metropolitan Pier & Exposition
Authority, 0.0%, 6/15/39 (b) $ 4,707,200
5,000,000 AA+/#Aaa Metropolitan Pier & Exposition
Authority, 7.0%, 7/1/26
(Pre-Refunded) 6,781,700
---------------
$ 29,439,120
--------------------------------------------------------------------------------------------------------------
Indiana -- 2.5%
3,500,000 NR/Baa2 Delaware County Hospital Authority
Indiana, 5.0%, 8/1/24 $ 3,647,770
2,000,000 AA/Aa2 Indiana Bond Bank, 5.5%, 2/1/29 2,215,480
2,000,000 BB-/B1 Indiana Finance Authority,
6.0%, 12/1/26 2,046,440
5,000,000 AA-/A1 Indiana Health & Educational
Facilities Financing Authority,
4.75%, 2/15/34 4,903,050
7,000,000 AA-/A1 Indiana Health & Educational
Facilities Financing Authority,
5.0%, 2/15/39 7,003,010
500,000 AA/Aa1 Indianapolis Local Public
Improvement Bond Bank,
6.0%, 1/10/20 565,145
335,000 AA/NR Indianapolis Local Public
Improvement Bond Bank,
6.75%, 2/1/14 (Pre-Refunded) 347,385
260,000 A-/A1 Lawrence Township Metropolitan
School District, 6.75%, 7/5/13 260,302
---------------
$ 20,988,582
--------------------------------------------------------------------------------------------------------------
Louisiana -- 2.8%
6,000,000 BBB-/Baa3 Jefferson Parish Hospital Service
District No. 2, 6.375%, 7/1/41 $ 6,432,600
615,000 BBB+/Baa1 Louisiana Local Government
Environmental Facilities &
Community Development
Authority, 5.25%, 12/1/18 616,267
10,000,000 NR/Baa1 Louisiana Public Facilities
Authority, 5.5%, 5/15/47 10,277,900
400,000 A-/A3 Louisiana State Citizens
Property Insurance Corp.,
5.0%, 6/1/24 432,260
500,000 AA-/A2 Louisiana State Citizens Property
Insurance Corp., 5.0%, 6/1/24 546,230
3,000,000 BBB/Baa2 Parish of St. John the Baptist
Louisiana, 5.125%, 6/1/37 3,007,470
3,000,000 A-/A3 Tobacco Settlement Financing Corp.
Louisiana, 5.875%, 5/15/39 2,992,500
---------------
$ 24,305,227
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Maine -- 1.0%
4,500,000 NR/Baa3 Maine Health & Higher Educational
Facilities Authority, 6.75%, 7/1/36 $ 5,087,295
3,040,000 NR/Baa3 Maine Health & Higher Educational
Facilities Authority, 6.95%, 7/1/41 3,468,154
---------------
$ 8,555,449
--------------------------------------------------------------------------------------------------------------
Maryland -- 1.5%
3,000,000 BB+/Ba2 County of Frederick Maryland,
5.625%, 9/1/38 $ 2,774,130
400,000 NR/NR Maryland Economic Development
Corp., 5.0%, 12/1/16 347,988
900,000 NR/NR Maryland Economic Development
Corp., 5.0%, 12/1/16 782,973
1,000,000 NR/NR Maryland Economic Development
Corp., 5.0%, 12/1/31 659,720
1,200,000 BB/NR Maryland Economic Development
Corp., 5.75%, 9/1/25 1,269,540
2,000,000 A/A3 Maryland Economic Development
Corp., 6.2%, 9/1/22 2,375,820
4,400,000 NR/Baa3 Maryland Health & Higher Educational
Facilities Authority, 5.75%, 7/1/38 4,432,736
---------------
$ 12,642,907
--------------------------------------------------------------------------------------------------------------
Massachusetts -- 12.0%
4,000,000 NR/Aa2 City of Pittsfield Massachusetts,
5.0%, 3/1/19 $ 4,610,280
2,000,000 NR/A2 Massachusetts Development
Finance Agency, 4.0%, 10/1/35 1,892,520
2,500,000 A+/Aa3 Massachusetts Development
Finance Agency, 4.0%, 9/1/49 2,180,350
1,000,000 A-/A3 Massachusetts Development
Finance Agency, 5.0%, 10/1/21 1,164,770
1,000,000 A-/A3 Massachusetts Development
Finance Agency, 5.0%, 10/1/22 1,143,720
1,000,000 A-/A3 Massachusetts Development
Finance Agency, 5.0%, 10/1/30 1,039,700
4,000,000 A/A1 Massachusetts Development
Finance Agency, 5.0%, 10/1/48 4,133,720
1,585,000 AA+/Aa1 Massachusetts Development
Finance Agency, 5.0%, 6/1/25 1,766,070
4,200,000 AA+/Aa1 Massachusetts Development
Finance Agency, 5.0%, 7/1/43 4,504,164
4,000,000 BBB+/NR Massachusetts Development
Finance Agency, 5.0%, 7/1/44 3,795,000
1,250,000 A+/A1 Massachusetts Development
Finance Agency, 5.0%, 9/1/50 1,284,175
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 21
Schedule of Investments | 6/30/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
1,000,000 A-/Baa1 Massachusetts Development
Finance Agency, 5.125%, 7/1/26 $ 1,049,180
235,000 BBB/Baa2 Massachusetts Development
Finance Agency, 5.15%, 10/1/14 239,143
1,680,000 BBB/NR Massachusetts Development
Finance Agency, 5.25%, 10/1/29 1,710,610
3,320,000 BBB/NR Massachusetts Development
Finance Agency, 5.25%, 10/1/37 3,332,284
1,980,000 AA-/A1 Massachusetts Development
Finance Agency, 5.375%, 4/1/41 2,090,939
500,000 BBB-/NR Massachusetts Development
Finance Agency, 5.5%, 1/1/35 475,220
1,100,000 BBB/Baa2 Massachusetts Development
Finance Agency, 5.625%, 10/1/24 1,119,206
1,000,000 BBB/Baa2 Massachusetts Development
Finance Agency, 5.7%, 10/1/34 1,010,260
6,185,000 A/WR Massachusetts Development
Finance Agency, 5.75%, 1/1/42 6,992,885
2,635,000 NR/NR Massachusetts Development
Finance Agency, 6.25%, 10/15/17 2,835,524
1,000,000 BBB/NR Massachusetts Development
Finance Agency, 6.75%, 1/1/36 1,127,760
1,000,000 BBB/NR Massachusetts Development
Finance Agency, 7.0%, 7/1/42 1,118,270
2,000,000 NR/A2 Massachusetts Health & Educational
Facilities Authority, 4.125%, 10/1/37 1,925,600
4,500,000 BB/NR Massachusetts Health & Educational
Facilities Authority, 4.625%, 8/15/28 4,034,700
3,750,000 BBB+/Baa1 Massachusetts Health & Educational
Facilities Authority, 5.25%, 7/1/38 3,814,312
1,550,000 BBB-/Baa3 Massachusetts Health & Educational
Facilities Authority, 5.25%, 7/15/18 1,551,906
2,335,000 BBB-/Baa3 Massachusetts Health & Educational
Facilities Authority, 5.375%, 7/1/35 2,386,230
12,000,000 AAA/Aaa Massachusetts Health & Educational
Facilities Authority, 5.5%, 7/1/32 14,892,240
1,000,000 AA-/Aa3 Massachusetts Port Authority, 5.0%,
7/1/32 1,077,370
1,000,000 AA-/Aa3 Massachusetts Port Authority, 5.0%,
7/1/33 1,073,450
7,000,000 AA+/Aa2 Massachusetts School Building Authority,
5.0%, 8/15/29 7,733,600
3,975,000 AA/Aa2 Massachusetts State College Building
Authority, 5.0%, 5/1/28 4,327,066
2,000,000 AAA/NR Town of Chatham Massachusetts,
3.5%, 6/15/37 1,781,340
The accompanying notes are an integral part of these financial statements.
22 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
4,500,000 AA+/NR Town of Wilmington Massachusetts,
4.0%, 3/15/37 $ 4,313,205
2,500,000 AA-/Aa2 University of Massachusetts Building
Authority, 5.0%, 11/1/39 2,671,025
---------------
$ 102,197,794
--------------------------------------------------------------------------------------------------------------
Michigan -- 1.4%
3,000,000 AA-/Aa3 City of Detroit Michigan Water Supply
System Revenue, 6.25%, 7/1/36 $ 3,104,190
1,500,000 BB-/NR John Tolfree Health System Corp.,
6.0%, 9/15/23 1,446,645
1,405,000 NR/NR Meridian Economic Development Corp.
Michigan, 5.25%, 7/1/26 1,370,746
3,235,000 NR/NR Michigan Public Educational Facilities
Authority, 5.875%, 6/1/37 2,969,115
2,000,000 NR/NR Michigan State Hospital Finance
Authority, 5.25%, 11/15/25 1,929,300
1,000,000 NR/NR Michigan State Hospital Finance
Authority, 5.5%, 11/15/35 918,070
---------------
$ 11,738,066
--------------------------------------------------------------------------------------------------------------
Mississippi -- 1.4%
7,950,000 BBB-/Baa3 County of Lowndes Mississippi,
6.8%, 4/1/22 $ 9,047,816
2,750,000 BBB/Baa3 County of Warren Mississippi,
5.8%, 5/1/34 2,966,728
---------------
$ 12,014,544
--------------------------------------------------------------------------------------------------------------
Missouri -- 0.0%+
80,000 NR/Aaa Missouri State Environmental
Improvement & Energy Resources
Authority, 5.125%, 1/1/20 $ 80,306
--------------------------------------------------------------------------------------------------------------
New Hampshire -- 1.2%
1,500,000 NR/A2 New Hampshire Health & Education
Facilities Authority, 4.0%, 10/1/33 $ 1,338,390
5,000,000 A-/NR New Hampshire Health & Education
Facilities Authority, 5.0%, 10/1/32 5,166,000
3,750,000 A-/NR New Hampshire Health & Education
Facilities Authority, 5.0%, 10/1/37 3,815,850
---------------
$ 10,320,240
--------------------------------------------------------------------------------------------------------------
New Jersey -- 1.5%
1,250,000 BBB/Baa3 Camden County Improvement
Authority, 5.75%, 2/15/34 $ 1,270,275
475,000 NR/NR New Jersey Economic Development
Authority, 5.3%, 11/1/26 437,998
450,000 NR/NR New Jersey Economic Development
Authority, 5.375%, 11/1/36 382,064
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 23
Schedule of Investments | 6/30/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
New Jersey -- (continued)
3,000,000 AAA/Aaa New Jersey Educational Facilities
Authority, 5.0%, 7/1/39 $ 3,240,090
5,115,000 BBB-/Baa3 New Jersey Health Care Facilities
Financing Authority, 5.25%, 7/1/30 5,181,290
2,000,000 A+/A1 New Jersey Transportation Trust
Fund Authority, 5.5%, 6/15/41 2,154,780
---------------
$ 12,666,497
--------------------------------------------------------------------------------------------------------------
New Mexico -- 0.1%
1,000,000 A/NR County of Dona Ana New Mexico,
5.25%, 12/1/25 $ 1,016,420
--------------------------------------------------------------------------------------------------------------
New York -- 2.5%
2,500,000 A-/A3 Albany Industrial Development Agency,
5.25%, 11/15/32 $ 2,586,725
6,000,000 AAA/Aaa New York State Dormitory Authority,
5.0%, 10/1/41 6,433,680
5,515,000 A/WR New York State Dormitory Authority,
5.25%, 7/1/24 6,046,811
1,000,000 BBB-/Baa3 Port Authority of New York & New Jersey,
6.0%, 12/1/36 1,117,140
3,400,000 BBB-/Baa3 Port Authority of New York & New Jersey,
6.0%, 12/1/42 3,786,784
1,500,000 AA-/Aa3 Port Authority of New York & New Jersey,
6.125%, 6/1/94 1,694,655
---------------
$ 21,665,795
--------------------------------------------------------------------------------------------------------------
North Carolina -- 1.9%
12,000,000 A-/Baa1 North Carolina Eastern Municipal
Power Agency, 6.0%, 1/1/22 $ 14,645,280
2,250,000 A+/A1 North Carolina Medical Care
Commission, 4.0%, 11/1/46 1,903,320
---------------
$ 16,548,600
--------------------------------------------------------------------------------------------------------------
Ohio -- 4.3%
10,000,000 B-/B3 Buckeye Tobacco Settlement Financing
Authority, 5.75%, 6/1/34 $ 8,165,900
6,000,000 B-/B3 Buckeye Tobacco Settlement Financing
Authority, 6.5%, 6/1/47 5,285,160
2,000,000 AAA/Aaa City of Cincinnati Ohio Water System
Revenue, 5.0%, 12/1/36 2,143,280
2,250,000 AAA/Aaa City of Cincinnati Ohio Water System
Revenue, 5.0%, 12/1/37 2,407,860
1,500,000 NR/NR County of Cuyahoga Ohio, 6.0%,
5/15/37 1,502,445
1,500,000 NR/NR County of Cuyahoga Ohio, 6.0%,
5/15/42 1,497,840
5,000,000 NR/A3 County of Lake Ohio, 6.0%, 8/15/43 5,304,650
The accompanying notes are an integral part of these financial statements.
24 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Ohio -- (continued)
10,000,000 AA/A2 JobsOhio Beverage System,
5.0%, 1/1/38 $ 10,344,200
---------------
$ 36,651,335
--------------------------------------------------------------------------------------------------------------
Oklahoma -- 1.9%
5,590,000 A/Baa1 McGee Creek Authority, 6.0%, 1/1/23 $ 6,291,880
10,645,000 A/NR Oklahoma Municipal Power Authority,
4.0%, 1/1/47 9,584,119
---------------
$ 15,875,999
--------------------------------------------------------------------------------------------------------------
Oregon -- 0.9%
3,000,000 NR/Aa1 Deschutes & Jefferson Counties School
District No 2J Redmond Oregon,
3.0%, 6/15/32 $ 2,487,030
1,000,000 AA+/NR Marion County School District No 5
Cascade, 4.0%, 6/15/19 1,119,030
2,000,000 AA+/NR Multnomah County School District
No 40, 0.0%, 6/15/30 (b) 881,260
2,000,000 AA+/NR Multnomah County School District
No 40, 0.0%, 6/15/31 (b) 836,460
1,715,000 AA+/NR Multnomah County School District
No 40, 0.0%, 6/15/32 (b) 666,055
1,735,000 A+/A1 Oregon Health & Science University,
4.0%, 7/1/31 1,687,183
---------------
$ 7,677,018
--------------------------------------------------------------------------------------------------------------
Pennsylvania -- 4.8%
2,190,000 NR/WR Allentown Area Hospital Authority,
6.0%, 11/15/16 (Pre-Refunded) $ 2,332,722
10,000,000 A/Baa2 Lehigh County Industrial Development
Authority, 4.75%, 2/15/27 1 10,064,600
1,000,000 BBB/NR Montgomery County Industrial
Development Authority Pennsylvania,
5.0%, 12/1/24 1,021,770
1,000,000 BBB/NR Montgomery County Industrial
Development Authority Pennsylvania,
5.0%, 12/1/30 1,004,010
3,000,000 BBB+/A3 Northampton County General Purpose
Authority, 5.5%, 8/15/40 3,097,080
1,000,000 BBB-/Baa3 Pennsylvania Higher Educational
Facilities Authority, 5.0%, 7/1/42 934,780
1,000,000 BB+/Baa3 Pennsylvania Higher Educational
Facilities Authority, 6.0%, 7/1/43 1,053,680
11,500,000 0.84 BBB+/WR Pennsylvania Higher Educational
Facilities Authority, Floating Rate
Note, 7/1/39 8,594,985
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 25
Schedule of Investments | 6/30/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Pennsylvania -- (continued)
5,000,000 A-/A3 Pennsylvania Turnpike Commission,
5.3%, 12/1/41 $ 5,192,050
2,000,000 AA/Aa2 Philadelphia Hospitals & Higher
Education Facilities Authority,
4.5%, 7/1/37 2,016,780
5,000,000 BB+/Ba1 Philadelphia Hospitals & Higher
Education Facilities Authority,
5.0%, 7/1/34 4,676,050
1,000,000 AA-/A2 Sports & Exhibition Authority of
Pittsburgh and Allegheny County,
5.0%, 2/1/30 1,041,740
---------------
$ 41,030,247
--------------------------------------------------------------------------------------------------------------
Puerto Rico -- 0.0%+
75,000 NR/Baa3 Puerto Rico Public Buildings Authority,
5.25%, 7/1/33 (Pre-Refunded) $ 78,688
--------------------------------------------------------------------------------------------------------------
Rhode Island -- 0.6%
5,200,000 BB/Ba1 Tobacco Settlement Financing Corp.
Rhode Island, 6.25%, 6/1/42 $ 5,148,000
--------------------------------------------------------------------------------------------------------------
South Carolina -- 1.1%
8,265,000 AA-/Aa3 South Carolina State Public Service
Authority, 5.0%, 12/1/43 $ 8,652,381
500,000 AA+/Aaa State of South Carolina, 5.0%,
4/1/20 601,290
---------------
$ 9,253,671
--------------------------------------------------------------------------------------------------------------
South Dakota -- 0.1%
65,000 NR/Aaa South Dakota Conservancy District,
5.625%, 8/1/17 (Pre-Refunded) $ 65,279
1,000,000 AA-/A1 South Dakota Health & Educational
Facilities Authority, 5.0%, 7/1/42 1,007,870
---------------
$ 1,073,149
--------------------------------------------------------------------------------------------------------------
Tennessee -- 0.5%
4,000,000 AA/Aa1 Metropolitan Government of Nashville &
Davidson County Tennessee, 4.0%,
7/1/24 $ 4,305,520
--------------------------------------------------------------------------------------------------------------
Texas -- 7.4%
7,100,000 BBB-/Baa2 Central Texas Regional Mobility
Authority, 0.0%, 1/1/25 (b) $ 3,959,173
3,000,000 BBB-/Baa2 Central Texas Regional Mobility
Authority, 0.0%, 1/1/26 (b) 1,551,810
3,000,000 BBB-/Baa2 Central Texas Regional Mobility
Authority, 0.0%, 1/1/27 (b) 1,452,930
2,500,000 BB+/Baa3 Central Texas Regional Mobility
Authority, 6.75%, 1/1/41 2,731,850
8,285,000 AA+/Aa2 Dallas Area Rapid Transit, 5.25%,
12/1/29 9,631,892
The accompanying notes are an integral part of these financial statements.
26 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Texas -- (continued)
10,000,000 BBB+/A3 Dallas County Utility & Reclamation
District, 5.375%, 2/15/29 $ 10,458,100
580,000 AA-/NR Eagle Mountain & Saginaw Independent
School District, 3.375%, 8/15/32 495,987
1,000,000 NR/Baa3 Harris County Cultural Education
Facilities Finance Corp., 5.0%, 6/1/28 1,035,580
1,000,000 NR/Baa3 Harris County Cultural Education
Facilities Finance Corp., 5.0%, 6/1/33 1,003,070
390,000 AAA/Aaa Houston Higher Education Finance
Corp., 5.0%, 5/15/40 417,596
2,000,000 A-/A2 North Texas Tollway Authority, 5.0%,
1/1/38 2,041,680
3,000,000 A+/A1 Richardson Hospital Authority, 6.0%,
12/1/34 3,049,980
1,000,000 BBB/NR Seguin Higher Education Facilities Corp.,
5.0%, 9/1/23 (Pre-Refunded) 1,050,980
5,000,000 AA+/Aaa State of Texas, 5.0%, 8/1/27 5,647,800
4,000,000 BBB/A3 Texas Municipal Gas Acquisition &
Supply Corp III, 5.0%, 12/15/31 3,976,080
10,410,000 NR/Baa3 Texas Private Activity Bond Surface
Transportation Corp., 7.0%, 6/30/40 12,170,019
2,255,000 BBB/NR Texas State Public Finance Authority
Charter School Finance Corp.,
6.2%, 2/15/40 2,483,386
---------------
$ 63,157,913
--------------------------------------------------------------------------------------------------------------
Utah -- 0.2%
1,115,000 AA-/NR South Davis Recreational District,
4.0%, 1/1/24 $ 1,195,191
500,000 BBB-/NR Utah State Charter School Finance
Authority, 5.75%, 7/15/20 526,270
---------------
$ 1,721,461
--------------------------------------------------------------------------------------------------------------
Vermont -- 0.1%
1,295,000 BBB-/Baa Vermont Educational & Health Buildings
Financing Agency, 5.0%, 7/1/24 $ 1,194,689
--------------------------------------------------------------------------------------------------------------
Virginia -- 4.6%
5,000,000 A/Baa1 Chesapeake Bay Bridge & Tunnel
District, 5.5%, 7/1/25 $ 5,452,750
1,500,000 NR/WR Prince William County Industrial
Development Authority, 5.2%,
10/1/26 (Pre-Refunded) 1,548,240
3,925,000 NR/WR Prince William County Industrial
Development Authority, 5.35%,
10/1/36 (Pre-Refunded) 4,052,759
13,990,000 B-/B2 Tobacco Settlement Financing Corp.
Virginia, 5.0%, 6/1/47 10,035,027
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 27
Schedule of Investments | 6/30/13 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Virginia -- (continued)
4,000,000 AAA/Aaa University of Virginia, 5.0%, 6/1/37 $ 4,393,680
5,000,000 AAA/Aaa University of Virginia, 5.0%, 6/1/43 5,431,750
7,500,000 BBB+/Baa1 Washington County Industrial
Development Authority Virginia,
7.75%, 7/1/38 8,701,275
---------------
$ 39,615,481
--------------------------------------------------------------------------------------------------------------
Washington -- 8.2%
1,000,000 A+/NR City of Richland Washington Electric
Revenue, 4.0%, 11/1/42 $ 870,260
10,000,000 AA+/Aa1 City of Seattle Washington, 4.0%,
9/1/37 9,580,300
10,000,000 AA/NR FYI Properties, 5.5%, 6/1/39 10,610,700
1,000,000 AA+/Aa1 King & Snohomish Counties School
District No. 417 Northshore, 5.0%,
12/1/30 1,090,080
1,000,000 AA+/Aa1 King & Snohomish Counties School
District No. 417 Northshore, 5.0%,
12/1/31 1,085,350
10,000,000 AAA/NR King County Housing Authority,
5.5%, 5/1/38 10,552,000
3,000,000 A/A2 King County Public Hospital District No. 1,
5.25%, 12/1/37 3,134,310
1,000,000 AA+/Aa1 Pierce County School District No. 3
Puyallup, 5.0%, 12/1/23 1,166,350
10,500,000 BBB/Baa1 Tobacco Settlement Authority of
Washington, 6.625%, 6/1/32 10,629,990
5,600,000 AA+/Aaa University of Washington, 5.0%, 6/1/37 5,973,352
1,000,000 AA/Aa2 Washington Health Care Facilities
Authority, 4.25%, 10/1/37 893,910
2,400,000 BBB/Baa2 Washington Health Care Facilities
Authority, 6.125%, 8/15/37 2,519,544
4,000,000 NR/WR Washington Health Care Facilities
Authority, 6.5%, 11/15/33 (Pre-Refunded) 4,337,600
5,000,000 5.25 AA/Aa2 Washington Health Care Facilities
Authority, Floating Rate Note, 10/1/33 5,174,700
2,045,000 NR/NR Washington State Housing Finance
Commission, 5.25%, 1/1/17 2,034,346
---------------
$ 69,652,792
--------------------------------------------------------------------------------------------------------------
Wisconsin -- 0.6%
1,430,000 NR/A1 Adams-Friendship Area School District,
6.5%, 4/1/16 $ 1,629,442
3,000,000 A+/NR Wisconsin Health & Educational Facilities
Authority, 5.125%, 8/15/35 3,079,980
---------------
$ 4,709,422
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
--------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Wyoming -- 0.1%
1,000,000 A+/NR County of Laramie Wyoming,
5.0%, 5/1/37 $ 1,001,220
--------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $820,863,988) $ 845,130,305
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN
SECURITIES -- 99.1%
(Cost $821,503,988) (a) $ 845,770,305
--------------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.9% $ 7,856,793
--------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 853,627,098
==============================================================================================================
(Pre-Refunded) Pre-refunded bonds have been collateralized by U.S. Treasury
securities which are held in escrow and used to pay principal
and interest on the tax-exempt issue and to retire the bonds in
full at the earliest refunding date.
+ Amount rounds to less than 0.1%.
* Non-income producing security.
NR Not rated by either S&P or Moody's.
WR Withdrawn rating.
(144A) Security is exempt from registration under Rule 144A of the
Securities Act of 1933. Such securities may be resold normally
to qualified institutional buyers in a transaction exempt from
registration. At June 30, 2013, the value of these securities
amounted to $640,000 or 0.1% of total net assets.
(a) At June 30, 2013, the net unrealized gain on investments based
on cost for federal income tax purposes of $819,005,222 was as
follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 46,897,717
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (20,132,634)
------------
Net unrealized gain $ 26,765,083
============
(b) Security is issued with a zero coupon. Income is earned through
accretion of discount.
(c) Debt obligation with a variable interest rate. Rate shown is
rate at end of period.
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.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes to
Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 29
Schedule of Investments | 6/30/13 (unaudited) (continued)
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) as Level 3. See
Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of June 30, 2013, in valuing
the Fund's investments:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Common Stocks $ -- $ 640,000 $ -- $ 640,000
Municipal Bonds -- 845,130,305 -- 845,130,305
--------------------------------------------------------------------------------
Total $ -- $845,770,305 $ -- $845,770,305
================================================================================
During the six months ended June 30, 2013, there were no transfers between
Levels 1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
30 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
Statement of Assets and Liabilities | 6/30/13 (unaudited)
ASSETS:
Investment in securities (cost $821,503,988) $ 845,770,305
Receivables --
Fund share sold 379,835
Interest 11,463,573
Due from Pioneer Investment Management, Inc. 53,646
Prepaid expenses 50,803
-------------------------------------------------------------------------------
Total assets $ 857,718,162
===============================================================================
LIABILITIES:
Payables --
Fund shares repurchased $ 1,903,238
Dividends 841,776
Due to custodian 629,453
Due to affiliates 655,223
Accrued expenses 61,374
-------------------------------------------------------------------------------
Total liabilities $ 4,091,064
===============================================================================
NET ASSETS:
Paid-in capital $ 936,214,179
Undistributed net investment income 11,274,940
Accumulated net realized loss on investments (118,128,338)
Net unrealized appreciation on investments 24,266,317
-------------------------------------------------------------------------------
Total net assets $ 853,627,098
===============================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (Based on $736,314,446/53,745,550 shares) $ 13.70
Class B (Based on $2,511,164/184,933 shares) $ 13.58
Class C (Based on $43,456,385/3,198,135 shares) $ 13.59
Class Y (Based on $71,345,103/5,224,586 shares) $ 13.66
MAXIMUM OFFERING PRICE:
Class A ($13.70 (divided by) 95.5%) $ 14.35
===============================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 31
Statement of Operations (unaudited)
For the Six Months Ended 6/30/13
INVESTMENT INCOME:
Interest $ 22,349,404
-----------------------------------------------------------------------------------------------
Total investment income $ 22,349,404
===============================================================================================
EXPENSES:
Management fees $ 2,117,079
Transfer agent fees
Class A 128,354
Class B 1,712
Class C 3,605
Class Y 950
Distribution fees
Class A 1,001,669
Class B 15,394
Class C 229,408
Shareholder communication expense 173,377
Administrative reimbursements 137,486
Custodian fees 6,306
Registration fees 37,836
Professional fees 33,247
Printing expense 7,270
Fees and expenses of nonaffiliated trustees 17,370
Miscellaneous 51,809
-----------------------------------------------------------------------------------------------
Total expenses $ 3,962,872
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. $ (58,092)
-----------------------------------------------------------------------------------------------
Net expenses $ 3,904,780
-----------------------------------------------------------------------------------------------
Net investment income $ 18,444,624
-----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on Investments $ 8,106,528
-----------------------------------------------------------------------------------------------
Change in net unrealized depreciation on Investments $ (63,481,462)
-----------------------------------------------------------------------------------------------
Net loss on investments $ (55,374,934)
-----------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (36,930,310)
===============================================================================================
The accompanying notes are an integral part of these financial statements.
32 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------
Six Months
Ended Year
6/30/13 Ended
(unaudited) 12/31/12
-----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 18,444,624 $ 39,977,490
Net realized gain on investments 8,106,528 3,042,934
Change in net unrealized appreciation (depreciation)
on investments (63,481,462) 67,864,836
-----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (36,930,310) $ 110,885,260
-----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.27 and $0.54 per share, respectively) $ (14,955,872) $ (30,629,957)
Class B ($0.20 and $0.41 per share, respectively) (43,194) (113,799)
Class C ($0.21 and $0.43 per share, respectively) (681,566) (1,291,975)
Class Y ($0.28 and $0.58 per share, respectively) (1,686,795) (3,102,624)
-----------------------------------------------------------------------------------------
Total distributions to shareowner $ (17,367,427) $ (35,138,355)
-----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 40,962,991 $ 137,410,078
Reinvestment of distributions 13,329,228 25,159,398
Cost of shares repurchased (105,403,102) (154,665,212)
-----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ (51,110,883) $ 7,904,264
-----------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (105,408,620) $ 83,651,169
NET ASSETS:
Beginning of period 959,035,718 875,384,549
-----------------------------------------------------------------------------------------
End of period $ 853,627,098 $ 959,035,718
=========================================================================================
Undistributed net investment income $ 11,274,940 $ 10,197,743
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 33
Statement of Changes in Net Assets (continued)
-----------------------------------------------------------------------------------------------
'13 Shares '13 Amount
(Unaudited) (Unaudited) '12 Shares '12 Amount
-----------------------------------------------------------------------------------------------
Class A
Shares sold 1,502,579 $ 21,018,229 6,693,162 $ 95,002,400
Reinvestment of distributions 793,793 11,449,349 1,605,264 22,792,630
Less shares repurchased (5,140,084) (73,483,364) (8,972,023) (127,141,766)
-----------------------------------------------------------------------------------------------
Net decrease (2,843,712) $ (41,015,786) (673,597) $ (9,346,736)
===============================================================================================
Class B
Shares sold or exchanged 404 $ 5,793 9,465 $ 134,342
Reinvestment of distributions 2,178 31,239 6,595 92,776
Less shares repurchased (53,956) (706,764) (107,780) (1,580,836)
-----------------------------------------------------------------------------------------------
Net decrease (51,374) $ (669,732) (91,720) $ (1,353,718)
===============================================================================================
Class C
Shares sold 440,595 $ 6,196,514 884,256 $ 12,595,623
Reinvestment of distributions 35,917 513,394 67,268 947,915
Less shares repurchased (401,111) (5,691,743) (675,470) (9,501,376)
-----------------------------------------------------------------------------------------------
Net increase 75,401 $ 1,018,165 276,054 $ 4,042,162
===============================================================================================
Class Y
Shares sold 960,038 $ 13,742,455 2,075,350 $ 29,677,713
Reinvestment of distributions 92,723 1,335,246 92,847 1,326,077
Less shares repurchased (1,769,531) (25,521,231) (1,156,404) (16,441,234)
-----------------------------------------------------------------------------------------------
Net increase (decrease) (716,770) $ (10,443,530) 1,011,793 $ 14,562,556
===============================================================================================
The accompanying notes are an integral part of these financial statements.
34 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/13 Ended Ended Ended Ended Ended
(Unaudited) 12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 14.56 $ 13.40 $ 12.56 $ 12.86 $ 10.90 $ 13.50
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.29 $ 0.61 $ 0.62 $ 0.57 $ 0.59 $ 0.60
Net realized and unrealized gain (loss) on investments (0.88) 1.09 0.82 (0.28) 1.99 (2.54)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.59) $ 1.70 $ 1.44 $ 0.29 $ 2.58 $ (1.94)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.27) (0.54) (0.60) (0.59) (0.61) (0.59)
Net realized gain -- -- -- -- (0.01) (0.07)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.86) $ 1.16 $ 0.84 $ (0.30) $ 1.96 $ (2.60)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.70 $ 14.56 $ 13.40 $ 12.56 $ 12.86 $ 10.90
====================================================================================================================================
Total return* (4.16)% 12.87%(a) 11.73% 2.15% 24.01% (14.85)%
Ratio of net expenses to average net assets+ 0.82%** 0.82% 0.82% 0.82% 0.82% 0.82%
Ratio of net investment income to average net assets+ 3.96%** 4.35% 4.77% 4.55% 4.94% 4.66%
Portfolio turnover rate 18%** 17% 14% 18% 18% 27%
Net assets, end of period (in thousands) $736,315 $824,216 $767,290 $749,235 $479,599 $353,257
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 0.83%** 0.83% 0.87% 0.85% 0.88% 0.88%
Net investment income 3.96%** 4.33% 4.72% 4.52% 4.88% 4.60%
Ratios with waiver of fees and assumption of expenses
by the Adviser and reduction for fees paid indirectly:
Net expenses 0.82%** 0.82% 0.82% 0.82% 0.82% 0.82%
Net investment income 3.96%** 4.35% 4.77% 4.55% 4.94% 4.66%
====================================================================================================================================
(a) If the Fund had not recognized gains in settlement of class action lawsuits
during the year ended December 31, 2012, the total return would have been
12.64%.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period and no sales
charges'. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 35
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/13 Ended Ended Ended Ended Ended
(Unaudited) 12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
----------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 14.46 $13.30 $12.48 $ 12.78 $10.83 $ 13.41
----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.26 $ 0.52 $ 0.55 $ 0.46 $ 0.50 $ 0.48
Net realized and unrealized gain (loss) on investments (0.94) 1.05 0.75 (0.29) 1.96 (2.52)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.68) $ 1.57 $ 1.30 $ 0.17 $ 2.46 $ (2.04)
----------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.20) (0.41) (0.48) (0.47) (0.50) (0.47)
Net realized gain -- -- -- -- (0.01) (0.07)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.88) $ 1.16 $ 0.82 $ (0.30) $ 1.95 $ (2.58)
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.58 $14.46 $13.30 $ 12.48 $12.78 $ 10.83
============================================================================================================================
Total return* (4.77)% 11.94%(a) 10.63% 1.25% 22.97% (15.60)%
Ratio of net expenses to average net assets+ 1.72%** 1.72% 1.72% 1.68% 1.71% 1.72%
Ratio of net investment income to average net assets+ 3.05%** 3.46% 3.93% 3.68% 4.06% 3.76%
Portfolio turnover rate 18%** 17% 14% 18% 18% 27%
Net assets, end of period (in thousands) $ 2,511 $3,418 $4,364 $ 8,169 $5,838 $ 5,286
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 1.74%** 1.75% 1.74% 1.68% 1.71% 1.72%
Net investment income 3.03%** 3.43% 3.90% 3.68% 4.06% 3.76%
Ratios with waiver of fees and assumption of expenses
by the Adviser and reduction for fees paid indirectly:
Net expenses 1.72%** 1.72% 1.72% 1.68% 1.71% 1.72%
Net investment income 3.05%** 3.46% 3.93% 3.68% 4.06% 3.76%
============================================================================================================================
(a) If the Fund had not recognized gains in settlement of class action lawsuits
during the year ended December 31, 2012, the total return would have been
11.81%.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period and no sales
charges'. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
36 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
-------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/13 Ended Ended Ended Ended Ended
(Unaudited) 12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
-------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 14.44 $ 13.29 $ 12.46 $ 12.77 $ 10.83 $ 13.42
-------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.22 $ 0.49 $ 0.51 $ 0.47 $ 0.47 $ 0.45
Net realized and unrealized gain (loss) on investments (0.86) 1.09 0.81 (0.30) 1.98 (2.48)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.64) $ 1.58 $ 1.32 $ 0.17 $ 2.45 $ (2.03)
-------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.21) (0.43) (0.49) (0.48) (0.50) (0.49)
Net realized gain -- -- -- -- (0.01) (0.07)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.85) $ 1.15 $ 0.83 $ (0.31) $ 1.94 $ (2.59)
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.59 $ 14.44 $ 13.29 $ 12.46 $ 12.77 $ 10.83
===============================================================================================================================
Total return* (4.50)% 12.03%(a) 10.84% 1.26% 22.93% (15.56)%
Ratio of net expenses to average net assets+ 1.57%** 1.58% 1.61% 1.60% 1.64% 1.65%
Ratio of net investment income to average net assets+ 3.21%** 3.58% 3.98% 3.78% 4.08% 3.85%
Portfolio turnover rate 18%** 17% 14% 18% 18% 27%
Net assets, end of period (in thousands) $43,456 $45,106 $37,834 $38,548 $26,422 $15,157
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 1.57%** 1.58% 1.61% 1.60% 1.64% 1.65%
Net investment income 3.21%** 3.58% 3.98% 3.78% 4.08% 3.85%
Ratios with waiver of fees and assumption of expenses by
the Adviser and reduction for fees paid indirectly:
Net expenses 1.57%** 1.58% 1.61% 1.60% 1.64% 1.65%
Net investment income 3.21%** 3.58% 3.98% 3.78% 4.08% 3.85%
===============================================================================================================================
(a) If the Fund had not recognized gains in settlement of class action lawsuits
during the year ended December 31, 2012, the total return would have been
11.87%.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period and no sales
charges'. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 37
Financial Highlights (continued)
-------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/13 Ended Ended Ended Ended Ended
(Unaudited) 12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
-------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 14.52 $ 13.37 $ 12.53 $ 12.84 $ 10.89 $ 13.48
-------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.32 $ 0.63 $ 0.67 $ 0.58 $ 0.63 $ 0.62
Net realized and unrealized gain (loss) on investments (0.90) 1.10 0.80 (0.26) 1.96 (2.51)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.58) $ 1.73 $ 1.47 $ 0.32 $ 2.59 $ (1.89)
-------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.28) (0.58) (0.63) (0.63) (0.63) (0.63)
Net realized gain -- -- -- -- (0.01) (0.07)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.86) $ 1.15 $ 0.84 $ (0.31) $ 1.95 $ (2.59)
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.66 $ 14.52 $ 13.37 $ 12.53 $ 12.84 $ 10.89
===============================================================================================================================
Total return* (4.04)% 13.12%(a) 12.04% 2.34% 24.22% (14.56)%
Ratio of net expenses to average net assets+ 0.55%** 0.55% 0.55% 0.55% 0.58% 0.58%
Ratio of net investment income to average net assets+ 4.23%** 4.60% 5.04% 4.81% 5.17% 4.90%
Portfolio turnover rate 18%** 17% 14% 18% 18% 27%
Net assets, end of period (in thousands) $71,345 $86,296 $65,896 $76,959 $21,963 $18,571
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 0.63%** 0.58% 0.57% 0.55% 0.58% 0.58%
Net investment income 4.15%** 4.57% 5.02% 4.80% 5.17% 4.90%
Ratios with waiver of fees and assumption of expenses by
the Adviser and reduction for fees paid indirectly:
Net expenses 0.55%** 0.55% 0.55% 0.55% 0.58% 0.58%
Net investment income 4.23%** 4.60% 5.04% 4.81% 5.17% 4.90%
===============================================================================================================================
(a) If the Fund had not recognized gains in settlement of class action lawsuits
during the year ended December 31, 2012, the total return would have been
12.85%.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
38 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
Notes to Financial Statements | 6/30/13 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer AMT-Free Municipal Fund (the Fund) is one of two series comprising
Pioneer Series Trust II, a Delaware statutory trust. The Fund is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is to seek a high level
of current income exempt from federal income tax as is consistent with the
relative stability of capital.
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 gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 39
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Fixed income
securities with remaining maturity of more than sixty days are valued at
prices supplied by independent pricing services, which consider such factors
as market prices, market events, quotations from one or more brokers,
Treasury spreads, yields, maturities and ratings. Valuations may be
supplemented by dealers and other sources, as required. Equity securities
that have traded on an exchange are valued at the last sale price on the
principal exchange where they are traded. Equity securities that have not
traded on the date of valuation, or securities for which sale prices are not
available, generally are valued using the mean between the last bid and
asked prices. Short-term fixed income securities with remaining maturities
of sixty days or less generally are valued at amortized cost. Shares of
money market mutual funds are valued at such Funds' net asset value.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by or at the
direction or with the approval of the Valuation Committee using fair value
methods pursuant to procedures adopted by the Board of Trustees. The
Valuation Committee is comprised of certain members of 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 significantly from exchange prices and such differences could be
material. Pioneer Investment Management, Inc. (PIM) is responsible for
monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee.
At June 30, 2013, 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.
40 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis over
the life of the respective security with a corresponding increase or
decrease in the cost basis of the security. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no provision for federal income taxes is required.
As of June 30, 2013, the Fund did not have any interest and penalties
related to uncertain tax positions, which, if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax years for the
prior three fiscal years remain subject to examination by federal and state
tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
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 years ended December 31, 2012 was as follows:
----------------------------------------------------------------------------
2012
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 3,293,392
Tax-exempt income 31,844,963
----------------------------------------------------------------------------
Total $35,138,355
============================================================================
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 41
The following shows the components of distributable earnings on a federal
income tax basis at December 31, 2012:
----------------------------------------------------------------------------
2012
----------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 7,698,977
Capital loss carryforward (126,234,866)
Net unrealized gain 90,246,545
----------------------------------------------------------------------------
Total $ (28,289,344)
============================================================================
The difference between book-basis and tax-basis appreciation is attributable
to the tax treatment of premium and amortization.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.,
(UniCredit), earned $27,592 in underwriting commissions on the sale of Class
A shares during the six months ended June 30, 2013.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively (see Note 4). Class Y shares do not pay distribution fees. All
expenses and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net investment
income. All dividends are paid on a monthly basis. Short-term capital gain
distributions, if any, may be declared with the daily dividends.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class B, Class C and Class Y shares
can reflect different transfer agent and distribution expense rates.
42 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
E. Risks
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's prospectus contains
unaudited information regarding the Fund's principal risks. Please refer to
that document when considering the Fund's principal risks.
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 0.50% of
the Fund's average daily net assets up to $250 million; 0.45% of the next $500
million; and 0.40% of the excess over $750 million. For the six months ended
June 30, 2013, the effective management fee (excluding waivers and/or assumption
of expenses) was equivalent to 0.45% of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund to
the extent required to reduce Fund expenses to 0.82%, 1.72%, 1.72% and 0.55% 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 June 30, 2013 are reflected on the Statement of Operations. These
expense limitations are in effect through May 1, 2014. There can be no assurance
that PIM will extend the expense limit agreement for a class of shares beyond
the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$384,296 in management fees, administrative costs and certain other
reimbursements payable to PIM at June 30, 2013.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates. In
addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by PIMSS
related to shareholder communications activities such as proxy and statement
mailings, outgoing phone calls and omnibus relationship contracts.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 43
For the six months ended June 30, 2013, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $116,071
Class B 1,759
Class C 9,875
Class Y 45,672
--------------------------------------------------------------------------------
Total $173,377
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $60,724 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at June 30, 2013.
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 $210,203 in distribution fees payable to PFD at June 30, 2013.
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 five years
of purchase are subject to a CDSC at declining rates beginning at 4.00%, based
on the lower of cost or market value of shares being redeemed. Redemptions of
Class C shares within 12 months 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 June 30, 2013, CDSCs in
the amount of $23,406 were paid to PFD.
44 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended June 30, 2013, the Fund's expenses
were not reduced under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect as of February 15, 2012 is in the amount of $215
million. Under such facility, depending on the type of loan, interest on
borrowings is payable at the London Interbank Offered Rate(LIBOR) plus 0.90% on
an annualized basis, or the Alternate Base Rate, which is the greater of (a) the
facility's administrative agent's daily announced prime rate on the borrowing
date, (b) 2% plus the Federal Funds Rate on the borrowing date and (c) 2% plus
the overnight Euro dollar rate on the borrowing date. The Funds pay an annual
commitment fee to participate in a credit facility. The commitment fee is
allocated among participating Funds based on an allocation schedule set forth in
the credit agreement. For the six months ended June 30, 2013, the Fund had no
borrowings under the credit facility.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 45
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman John F. Cogan, Jr., President*
David R. Bock Daniel K. Kingsbury, Executive
John F. Cogan, Jr. Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer**
Margaret B.W. Graham Christopher J. Kelley, Secretary
Daniel K. Kingsbury
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
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 http://www.sec.gov.
* Chief Executive Officer of the Fund.
** Chief Financial and Accounting Officer of the Fund.
46 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
This page for your notes.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 47
This page for your notes.
48 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
This page for your notes.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 49
This page for your notes.
50 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
This page for your notes.
Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13 51
This page for your notes.
52 Pioneer AMT-Free Municipal Fund | Semiannual Report | 6/30/13
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2013 Pioneer Investments 19451-07-0813
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
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust II
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date August 29, 2013
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date August 29, 2013
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date August 29, 2013
* Print the name and title of each signing officer under his or her signature.