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, Amundi Pioneer Asset 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, 2019
Date of reporting period: January 1, 2019 through December 31, 2019
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 STOCKHOLDERS.
Pioneer AMT-Free
Municipal Fund
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Annual Report | December 31, 2019
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Ticker Symbols:
Class A PBMFX
Class C MNBCX
Class Y PBYMX
Beginning in February 2021, as permitted by regulations adopted by the
Securities and Exchange Commission, paper copies of the Fund's shareholder
reports like this one will no longer be sent by mail, unless you specifically
request paper copies of the reports from the Fund or from your financial
intermediary, such as a broker-dealer, bank or insurance company. Instead, the
reports will be made available on the Fund's website, and you will be notified
by mail each time a report is posted and provided with a website link to access
the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. You may elect
to receive shareholder reports and other communications electronically by
contacting your financial intermediary or, if you invest directly with the
Fund, by calling 1-800-225-6292.
You may elect to receive all future reports in paper free of charge. If you
invest directly with the Fund, you can inform the Fund that you wish to
continue receiving paper copies of your shareholder reports by calling
1-800-225-6292. If you invest through a financial intermediary, you can contact
your financial intermediary to request that you continue to receive paper
copies of your shareholder reports. Your election to receive reports in paper
will apply to all funds held in your account if you invest through your
financial intermediary or all funds held within the Pioneer Fund complex if you
invest directly.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.com/us
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 33
Notes to Financial Statements 40
Report of Independent Registered Public Accounting Firm 49
Additional Information 51
Approval of Investment Management Agreement 52
Trustees, Officers and Service Providers 57
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 1
President's Letter
Dear Shareholders,
As we enter 2020 and welcome a new decade, history has taught us the importance
of taking a long-term horizon when investing, which has typically proven to be
a prudent approach to generating solid returns over time. Since 1928, our
investment process has been built on a foundation of fundamental research and
active management, principles which have guided our investment decisions for
more than 90 years. We believe active management --that is, making active
investment decisions -- can help mitigate the potential risks during periods of
market volatility. In today's global economy, investment risk can materialize
from a number of factors, including a slowing economy, changing U.S. Federal
Reserve interest-rate policy, oil price shocks, and political and geopolitical
factors.
At Amundi Pioneer, active management begins with our own fundamental, bottom-up
research process. Our team of dedicated research analysts and portfolio
managers analyze each security under consideration, communicating directly with
the management teams of the companies issuing the securities and working
together to identify those securities that best meet our investment criteria
for our family of funds. Our risk management approach begins with each and
every security, as we strive to carefully understand the potential opportunity,
while considering any and all risk factors.
Today, as investors, we have many options. It is our view that active
management can serve shareholders well, not only when markets are thriving, but
also during periods of market stress. As you consider your long-term investment
goals, we encourage you to work with your financial advisor to develop an
investment plan that paves the way for you to pursue both your short and long
term goals.
2 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
December 31, 2019
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. Past performance is no
guarantee of future results.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 3
Portfolio Management Discussion | 12/31/19
In the following interview, Lead Portfolio Manager David Eurkus outlines the
investment environment for tax-free bonds during the 12-month period ended
December 31, 2019, and the factors that affected the performance of Pioneer
AMT-Free Municipal Fund during the period. Mr. Eurkus, a Managing Director,
Director of Municipals, and a portfolio manager at Amundi Pioneer Asset
Management, Inc. (Amundi Pioneer), is responsible for the day-to-day management
of the Fund, along with Jonathan Chirunga, a Managing Director, Deputy Director
of Municipals, and a portfolio manager at Amundi Pioneer.
Q How did the Fund perform during the 12-month period ended December 31,
2019?
A Pioneer AMT-Free Municipal Fund's Class A shares returned 9.57% at net
asset value during the 12-month period ended December 31, 2019, while the
Fund's benchmark, the Bloomberg Barclays Municipal Bond Index (the
Bloomberg Barclays Index), returned 7.54%. During the same 12-month
period, the average return of the 174 mutual funds in Morningstar's
Municipal National Long Funds Category was 8.37%.
Q How would you describe the investment environment for tax-exempt bonds
during the 12-month period ended December 31, 2019?
A The investment environment for municipal bonds was extremely favorable
over the past 12 months as tax-exempt bonds experienced their sixth
straight year of positive performance. The strong returns for municipals
derived from steady declines in medium- and longer-term U.S. Treasury
rates, the U.S. Federal Reserve's (Fed's) shift from monetary tightening
in 2018 (interest-rate hikes) to a more accommodative stance in early
2019, and then to interest-rate cuts over the second half of the 12-month
period, strong demand for tax-free bonds combined with limited supply, and
a lack of inflationary pressures. The continuing and significant effects
on the municipal market from the Federal tax overhaul legislation passed
in late 2017 was another large contributing factor to the solid
performance of municipals over the 12-month period, as they outperformed
Treasury bonds of comparable maturities for the Fund's full fiscal year.
Fixed-income yields declined and spreads between the yields of higher- and
lower- rated municipal bonds narrowed during the 12-month period on
investor concerns over how U.S./China trade tensions would hurt the
already slowing global economy. In addition to the Fed's pivoting from
monetary tightening to easing and eventually to cutting interest rates
three
4 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
times between July and October 2019 to bolster the U.S. economy, other
global central banks reacted to trade- and "Brexit"-related worries by
taking similar actions to help stimulate economic activity in non-U.S.
regions.
During the 12-month period, the municipal market benefited from record
investor demand as inflows to tax-free mutual funds surged and remained
strong, hitting $92 billion for 2019, which represented the highest
absolute level of inflows since 1992. As noted, the tax legislation passed
in 2017 has also boosted the performance of tax-free bonds given that the
law eliminated the tax exemption on investors' income earned from advance
refunding bonds, which is now considered taxable income. (An advance
refunding bond is issued to retire, or pre-refund, another outstanding
bond more than 90 days in advance of the original bond's maturity date.)
The provision in the 2017 tax law pertaining to advance refunding bonds
has effectively removed approximately one-quarter of the prior municipal
supply from the marketplace. That, in turn, has helped to boost tax-free
bond prices. The 2017 tax law also reduced allowable state and local tax
(SALT) deductions on Federal income tax returns, capping them at $10,000
annually. That provision in the law has affected many investors, but
particularly those in higher-tax states, where demand for municipal
investments has increased.
State and local governments enjoyed strong tax collections and revenues
over the 12-month period, but reduced federal spending on infrastructure
has forced municipalities to finance more of their own infrastructure
projects. However, much of the spending has been cash-based rather than
done with municipal financing, due to state officials' concerns that the
U.S. economy could be on the verge of a recession, and that has negatively
affected municipal supply.
Lastly, while the tax-exempt bond market continued to receive support from
demand by its traditional investors, it also benefited from other factors,
including interest from non-traditional buyers, such as global insurance
companies looking for relative safety, a low default rate, and attractive
valuations versus taxable bonds.
Q What were your principal investment strategies in managing the Fund's
portfolio during the 12-month period ended December 31, 2019?
A Our focus remained the same during the 12-month period, which is to keep
the portfolio fully invested in securities that have a variety of coupon
structures in the longer-term municipal market, as those investments offer
higher yield potential in the tax-exempt marketplace. We believe that,
over the long term, our broadly diversified* strategy positions the Fund
for strong performance relative to its benchmark and its municipal fund
peers.
* Diversification does not assure a profit nor protect against loss.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 5
The Fund also continues to have a strong focus on sectors that are vital
to the national as well as regional economies. The sectors include health
care/hospitals, public and private education, power/energy, and
transportation.
During the 12-month period, we maintained our emphasis on overall
portfolio quality. As of the close of the period, roughly 28% of the
portfolio's holdings were rated "AAA" or the equivalent, and approximately
83% were rated "A" or better. In addition, the Fund's investments remain
broadly diversified across a wide range of municipal bond sectors.
Q What were the most significant contributors to and detractors from the
Fund's benchmark-relative performance during the 12-month period ended
December 31, 2019?
A The Fund's investments in sales tax/motor vehicle excise tax bonds from
Puget Sound, Washington, education bonds from New York State, and Virginia
general obligation bonds were key positive contributors to
benchmark-relative returns during the 12-month period.
Detractors from the Fund's benchmark-relative performance during the
12-month period included holdings of Massachusetts and Maryland revenue
bonds as well as Central Texas transportation bonds.
Q What was the status of the Fund's distributions to shareholders during the
12-month period ended December 31, 2019?
A The Fund's distributions** remained relatively stable over the 12-month
period, beginning at 0.34 cents per share in January 2019 and ending at
0.33 cents per share in December 2019.
Q Did the Fund have any exposure to derivative investments during the
12-month period ended December 31, 2019?
A No, the Fund had no derivatives exposure during the 12-month period.
Q What is your outlook?
A Given uncertainties regarding the level of global economic activity going
forward, anticipation of the UK's "Brexit" from the European Union,
worries over global monetary and fiscal policies, and the upcoming 2020
U.S. elections, we look for trading in the municipal bond market to be
relatively range-bound over the coming months. At the same time, we remain
bullish regarding the longer-term prospects for municipals: tax-exempt
bonds have the second-lowest default rate of any fixed-income class
** Distributions are not guaranteed.
6 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
after U.S. Treasuries, the low-inflation outlook has remained intact, and
we believe that the current supply/demand imbalance in the municipal
market will persist, which should support municipal bond prices.
We will continue to hold select, longer-term tax-exempt bonds in the
Fund's portfolio, bonds that we believe have the strongest opportunity to
perform well over time. We will also continue to monitor the Fund's
holdings to ensure continued strength in credit quality as well as the
timely payment of principal and interest. The Fund remains broadly
diversified, and the vast majority of the portfolio's holdings are in
bonds with dedicated revenue streams, which we also continue to monitor
closely.
We believe that Pioneer AMT-Free Municipal Fund continues to be a suitable
vehicle for appropriate, long-term investors seeking income that is free
from federal income taxes.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 7
Please refer to the Schedule of Investments on pages 17-32 for a full listing
of Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
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.
The value of municipal securities can be adversely affected by changes in the
financial condition of municipal issuers, lower revenues, and regulatory and
political developments.
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.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Amundi Pioneer Asset Management, Inc.,
for a prospectus or summary prospectus containing this information. Read it
carefully.
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. Past performance is no
guarantee of future results.
8 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
Portfolio Summary | 12/31/19
Sector Diversification
--------------------------------------------------------------------------------
(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
General Obligation 28.4%
Education Revenue 26.9%
Health Revenue 13.4%
Water Revenue 9.7%
Transportation Revenue 6.9%
Tobacco Revenue 6.1%
Development Revenue 5.3%
Utilities Revenue 2.1%
Other Revenue 0.5%
Pollution Control Revenue 0.5%
Power Revenue 0.1%
Facilities Revenue 0.1%
State Diversification
--------------------------------------------------------------------------------
(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Massachusetts 19.14%
Texas 8.99%
Florida 8.27%
Virginia 8.07%
California 8.01%
Washington 6.37%
Pennsylvania 4.64%
New York 4.42%
Georgia 3.58%
Maryland 3.00%
North Carolina 2.83%
Illinois 2.59%
Oregon 2.14%
Minnesota 2.03%
Ohio 1.82%
Arizona 1.44%
Colorado 1.41%
District of Columbia 1.29%
Rhode Island 1.05%
New Jersey 1.02%
South Carolina 1.02%
New Hampshire 0.97%
Maine 0.87%
Missouri 0.73%
Michigan 0.70%
Louisiana 0.55%
Utah 0.55%
Connecticut 0.40%
North Dakota 0.39%
Delaware 0.39%
Puerto Rico 0.34%
Mississippi 0.34%
Indiana 0.26%
Nebraska 0.17%
Oklahoma 0.17%
Other 0.04%
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 9
Portfolio Summary | 12/31/19 (continued)
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investments)*
1. Massachusetts Health & Educational Facilities Authority, Massachusetts
Institute of Technology, Series K, 5.5%, 7/1/32 1.88%
--------------------------------------------------------------------------------------------------------
2. Central Puget Sound Regional Transit Authority, Series S-1, 5.0%, 11/1/46 1.87
--------------------------------------------------------------------------------------------------------
3. Tobacco Settlement Financing Corp., Senior, Series B-1, 5.0%, 6/1/47 1.45
--------------------------------------------------------------------------------------------------------
4. New York State Dormitory Authority, Columbia University, Series A-2, 5.0%, 10/1/46 1.20
--------------------------------------------------------------------------------------------------------
5. Virginia Public Building Authority, Series A, 3.0%, 8/1/38 1.14
--------------------------------------------------------------------------------------------------------
6. Massachusetts Development Finance Agency, Broad Institute, 4.0%, 4/1/41 1.10
--------------------------------------------------------------------------------------------------------
7. Brookhaven Development Authority, 4.0%, 7/1/49 1.04
--------------------------------------------------------------------------------------------------------
8. University of Virginia, Series A-1, 4.0%, 4/1/45 1.01
--------------------------------------------------------------------------------------------------------
9. Golden State Tobacco Securitization Corp., Asset-Backed, Series A-2, 5.0%, 6/1/47 0.96
--------------------------------------------------------------------------------------------------------
10. State of Washington, Series 2015-D, 5.0%, 7/1/30 0.94
--------------------------------------------------------------------------------------------------------
* Excludes temporary cash investments and all derivative contracts except
for options purchased. The Fund is actively managed, and current holdings
may be different. The holdings listed should not be considered
recommendations to buy or sell any securities.
10 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
Prices and Distributions | 12/31/19
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 12/31/19 12/31/18
--------------------------------------------------------------------------------
A $15.17 $14.23
--------------------------------------------------------------------------------
C $15.04 $14.11
--------------------------------------------------------------------------------
Y $15.13 $14.19
--------------------------------------------------------------------------------
Distributions per Share: 1/1/19 - 12/31/19
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.4080 $ -- $ --
--------------------------------------------------------------------------------
C $0.2939 $ -- $ --
--------------------------------------------------------------------------------
Y $0.4460 $ -- $ --
--------------------------------------------------------------------------------
Index Definition
--------------------------------------------------------------------------------
The Bloomberg 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 12-14.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 11
Performance Update | 12/31/19 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer AMT-Free Municipal Fund at public
offering price during the periods shown, compared to that of the Bloomberg
Barclays Municipal Bond Index.
Average Annual Total Returns
(As of December 31, 2019)
------------------------------------------------------
Net Public BBG
Asset Offering Barclays
Value Price Municipal
Period (NAV) (POP) Bond Index
------------------------------------------------------
10 years 5.35% 4.86% 4.34%
5 years 3.98 3.02 3.53
1 year 9.57 4.64 7.54
------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2019)
------------------------------------------------------
Gross
------------------------------------------------------
0.81%
------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer AMT-Free Municipal Bond
Municipal Fund Index
12/09 $ 9,550 $10,000
12/10 $ 9,756 $10,238
12/11 $10,900 $11,333
12/12 $12,303 $12,102
12/13 $11,647 $11,793
12/14 $13,233 $12,860
12/15 $13,829 $13,285
12/16 $13,760 $13,318
12/17 $14,662 $14,043
12/18 $14,676 $14,223
12/19 $16,080 $15,295
Call 1-800-225-6292 or visit www.amundipioneer.com/us 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. POP
returns reflect deduction of maximum 4.50% sales charge. NAV returns would have
been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
Performance Update | 12/31/19 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer AMT-Free Municipal Fund during the
periods shown, compared to that of the Bloomberg Barclays Municipal Bond
Index.
Average Annual Total Returns
(As of December 31, 2019)
------------------------------------------------------
BBG
Barclays
If If Municipal
Period Held Redeemed Bond Index
------------------------------------------------------
10 years 4.54% 4.54% 4.34%
5 years 3.20 3.20 3.53
1 year 8.74 8.74 7.54
------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2019)
------------------------------------------------------
Gross
------------------------------------------------------
1.57%
------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer AMT-Free Municipal Bond
Municipal Fund Index
12/09 $10,000 $10,000
12/10 $10,126 $10,238
12/11 $11,223 $11,333
12/12 $12,573 $12,102
12/13 $11,813 $11,793
12/14 $13,319 $12,860
12/15 $13,817 $13,285
12/16 $13,642 $13,318
12/17 $14,422 $14,043
12/18 $14,336 $14,223
12/19 $15,588 $15,295
Call 1-800-225-6292 or visit www.amundipioneer.com/us 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. NAV returns would have been lower had sales charges
been reflected. All results are historical and assume the reinvestment of
dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 13
Performance Update | 12/31/19 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer AMT-Free Municipal Fund during the
periods shown, compared to that of the Bloomberg Barclays Municipal Bond
Index.
Average Annual Total Returns
(As of December 31, 2019)
------------------------------------------------------
Net BBG
Asset Barclays
Value Municipal
Period (NAV) Bond Index
------------------------------------------------------
10 years 5.62% 4.34%
5 years 4.26 3.53
1 year 9.87 7.54
------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2019)
------------------------------------------------------
Gross Net
------------------------------------------------------
0.65% 0.55%
------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Bloomberg Barclays
Pioneer AMT-Free Municipal Bond
Municipal Fund Index
12/09 $5,000,000 $5,000,000
12/10 $5,118,803 $5,118,947
12/11 $5,735,119 $5,666,681
12/12 $6,451,542 $6,050,884
12/13 $6,156,598 $5,896,355
12/14 $7,010,104 $6,430,044
12/15 $7,350,921 $6,642,312
12/16 $7,332,280 $6,658,791
12/17 $7,833,677 $7,021,588
12/18 $7,860,978 $7,111,608
12/19 $8,637,154 $7,647,493
Call 1-800-225-6292 or visit www.amundipioneer.com/us for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results
are historical and assume the reinvestment of dividends and capital gains.
Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through May 1, 2020, for Class Y shares. There can be no assurance that
Amundi 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.
Please refer to the financial highlights for more current expense ratios.
14 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
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 July 1, 2019 through December 31, 2019.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 7/1/19
--------------------------------------------------------------------------------
Ending Account $1,034.66 $1,030.32 $1,035.34
Value on 12/31/19
--------------------------------------------------------------------------------
Expenses Paid $4.15 $7.98 $2.82
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.81%, 1.56%
and 0.55%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 15
Comparing Ongoing Fund Expenses (continued)
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 July 1, 2019 through December 31, 2019.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 7/1/19
--------------------------------------------------------------------------------
Ending Account $1,021.12 $1,017.34 $1,022.43
Value on 12/31/19
--------------------------------------------------------------------------------
Expenses Paid $4.13 $7.93 $2.80
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.81%, 1.56%
and 0.55%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
16 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
Schedule of Investments | 12/31/19
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 98.1%
MUNICIPAL BONDS -- 98.0% of Net Assets(a)
Arizona -- 1.4%
5,680,000 Arizona Department of Transportation State Highway
Fund Revenue, 5.0%, 7/1/30 $ 6,949,934
135,000(b) City of Mesa, Utility System Revenue, 3.25%, 7/1/29 146,838
9,865,000 City of Mesa, Utility System Revenue, 3.25%, 7/1/29 10,503,660
9,000 County of Pima, Industrial Development Authority,
Arizona Charter Schools Project, Series C,
6.75%, 7/1/31 9,108
1,000,000 Maricopa County Pollution Control Corp., Southern
California Education Co., Series A, 5.0%, 6/1/35 1,014,540
--------------
Total Arizona $ 18,624,080
-------------------------------------------------------------------------------------------------------------------
California -- 7.9%
10,000,000(c) Alameda Corridor Transportation Authority, California
Revenue Capital Appreciation Senior Lien, Series A,
10/1/31 (NATL Insured) $ 7,646,400
12,595,000(c) Anaheim Public Financing Authority, Public
Improvements Project, Series C, 9/1/36
(AGM Insured) 8,043,167
5,250,000(d) Beverly Hills Unified School District CA, 3.0%, 8/1/44 5,400,832
20,000,000(c) California County Tobacco Securitization Agency,
Capital Appreciation, Stanislaus County,
Subordinated, Series A, 6/1/46 4,258,400
36,350,000(c) California County Tobacco Securitization Agency,
Capital Appreciation, Stanislaus County,
Subordinated, Series D, 6/1/55 1,518,340
6,400,000 California Educational Facilities Authority, Stanford
University, Series U-A, 5.0%, 5/1/45 9,623,168
3,575,000(b) California Statewide Communities Development
Authority, Sutter Health, Series A, 6.0%, 8/15/42 3,688,006
5,000,000 City of San Francisco, Public Utilities Commission
Water Revenue, Series A, 4.0%, 11/1/33 5,549,650
7,000,000 City of San Francisco, Public Utilities Commission
Water Revenue, Series A, 4.0%, 11/1/34 7,754,460
5,000,000(d) Coast Community College District, Election 2012,
Series D, 5.0%, 8/1/31 6,266,150
12,000,000 Golden State Tobacco Securitization Corp.,
Asset-Backed, Series A-2, 5.0%, 6/1/47 12,405,000
3,000,000 Long Beach Bond Finance Authority, Series A,
5.5%, 11/15/37 4,243,290
2,180,000(d) Pomona Unified School District, Series A, 6.55%,
8/1/29 (NATL Insured) 2,823,383
5,000,000(d) San Diego Unified School District, Series R2,
0.0%, 7/1/40 5,117,100
3,500,000 San Francisco City & County Airport Commission-
San Francisco International Airport, Series B,
5.0%, 5/1/47 4,165,770
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 17
Schedule of Investments | 12/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
California -- (continued)
1,500,000(b)(d) San Jose Evergreen Community College District,
Election of 2010, Series A, 5.0%, 8/1/41 $ 1,649,805
7,000,000(d) State of California, 3.0%, 10/1/49 7,161,210
5,000,000 University of California, Series AV, 5.0%, 5/15/35 6,179,550
--------------
Total California $ 103,493,681
-------------------------------------------------------------------------------------------------------------------
Colorado -- 1.4%
2,500,000 Regional Transportation District, Denver Trans
Partners, 6.0%, 1/15/26 $ 2,547,100
1,250,000 Regional Transportation District, Denver Trans
Partners, 6.0%, 1/15/34 1,270,900
1,000,000 Regional Transportation District, Denver Trans
Partners, 6.0%, 1/15/41 1,015,380
2,000,000 Regional Transportation District, Denver Trans
Partners, 6.5%, 1/15/30 2,040,680
5,000,000 University of Colorado, Series A-2, 4.0%, 6/1/38 5,689,200
5,000,000 University of Colorado, Series A-2, 4.0%, 6/1/39 5,659,250
--------------
Total Colorado $ 18,222,510
-------------------------------------------------------------------------------------------------------------------
Connecticut -- 0.4%
3,000,000(d) Metropolitan District, 3.0%, 3/1/29 $ 3,103,350
2,000,000 Mohegan Tribal Finance Authority, Connecticut Tribal
Economic Development, 7.0%, 2/1/45 (144A) 2,041,920
--------------
Total Connecticut $ 5,145,270
-------------------------------------------------------------------------------------------------------------------
Delaware -- 0.4%
4,975,000 Delaware State Economic Development Authority,
Facility-Indian River Power, 5.375%, 10/1/45 $ 5,062,709
--------------
Total Delaware $ 5,062,709
-------------------------------------------------------------------------------------------------------------------
District of Columbia -- 1.3%
10,000,000 District of Columbia Tobacco Settlement Financing
Corp., Asset-Backed, 6.75%, 5/15/40 $ 10,525,000
84,000,000(c) District of Columbia Tobacco Settlement Financing
Corp., Asset-Backed, Series C, 6/15/55 6,133,680
--------------
Total District of Columbia $ 16,658,680
-------------------------------------------------------------------------------------------------------------------
Florida -- 8.1%
1,000,000 Central Florida Expressway Authority, 5.0%, 7/1/39 $ 1,194,700
2,000,000 Central Florida Expressway Authority, Senior Lien,
5.0%, 7/1/38 2,400,720
2,615,000 City of Tampa, Baycare Health Care, Series A,
5.0%, 11/15/46 3,031,543
6,145,000 County of Hillsborough FL, 3.0%, 8/1/41 6,284,983
4,500,000 County of Hillsborough, Utility Revenue, 3.0%, 8/1/37 4,706,910
10,000,000 County of Miami-Dade FL Water & Sewer System
Revenue, 3.0%, 10/1/49 9,871,500
10,000,000 County of Miami-Dade FL Water & Sewer System
Revenue, 4.0%, 10/1/49 11,106,100
The accompanying notes are an integral part of these financial statements.
18 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
Florida -- (continued)
2,500,000 County of Orange, Water Utility System Revenue,
3.0%, 10/1/32 $ 2,601,400
4,645,000 County of Orange, Water Utility System Revenue,
3.0%, 10/1/34 4,812,731
3,000,000 Escambia County Health Facilities Authority, Baptist
Hospital, Inc. Project, Series A, 6.0%, 8/15/36 3,084,000
1,390,000 Florida Development Finance Corp., Renaissance
Charter School, Series A, 6.0%, 9/15/30 1,417,452
5,000,000 Florida's Turnpike Enterprise, Department
Transportation, Series A, 4.0%, 7/1/30 5,493,300
6,850,000 JEA Water & Sewer System Revenue, Series A,
4.0%, 10/1/34 7,697,414
3,400,000(b) St. Johns County Industrial Development Authority,
Presbyterian Retirement, Series A, 6.0%, 8/1/45 3,496,832
4,925,000(d) State of Florida, 4.0%, 6/1/35 5,719,304
8,000,000(d) State of Florida, Capital Outlay, Series A,
3.0%, 6/1/29 8,424,080
8,000,000(d) State of Florida, Capital Outlay, Series C,
3.0%, 6/1/30 8,468,080
4,645,000(d) State of Florida, Department Transportation
Right of Way, 3.25%, 7/1/37 4,939,261
10,660,000(d) State of Florida, Department Transportation
Right of Way, 4.0%, 7/1/39 12,054,541
--------------
Total Florida $ 106,804,851
-------------------------------------------------------------------------------------------------------------------
Georgia -- 3.5%
1,500,000 Brookhaven Development Authority, 3.0%, 7/1/46 $ 1,501,725
1,000,000 Brookhaven Development Authority, 4.0%, 7/1/44 1,111,960
12,000,000 Brookhaven Development Authority, 4.0%, 7/1/49 13,385,040
8,000,000(d) City of Atlanta, Public Improvement, 4.5%, 12/1/29 9,168,880
2,040,000(d) County of Fulton, Library Bond, 3.25%, 7/1/37 2,163,604
2,870,000(d) County of Fulton, Library Bond, 3.5%, 7/1/39 3,076,611
4,790,000(d) County of Fulton, Library Bond, 4.0%, 7/1/40 5,297,213
2,000,000 Main Street Natural Gas, Inc., Series A,
4.0%, 5/15/39 2,120,240
5,000,000 Metropolitan Atlanta Rapid Transit Authority,
Series C, 3.5%, 7/1/38 5,368,800
2,750,000 Private Colleges & Universities Authority, Emory
University, Series A, 5.0%, 10/1/43 3,094,850
--------------
Total Georgia $ 46,288,923
-------------------------------------------------------------------------------------------------------------------
Illinois -- 2.5%
1,000,000 Illinois Finance Authority, American Water Capital
Corp., Project, 5.25%, 5/1/40 $ 1,007,390
1,000,000 Illinois Finance Authority, Art Institute Of Chicago,
4.0%, 3/1/38 1,096,990
1,500,000 Illinois Finance Authority, Art Institute Of Chicago,
5.0%, 3/1/30 1,789,320
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 19
Schedule of Investments | 12/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
Illinois -- (continued)
5,000,000 Illinois Finance Authority, Centegra Health System,
Series A, 5.0%, 9/1/42 $ 5,616,150
1,500,000 Illinois Finance Authority, Northwestern Memorial
Healthcare, 4.0%, 7/15/36 1,677,660
2,175,000 Illinois Finance Authority, Northwestern Memorial
Healthcare, 4.0%, 7/15/37 2,424,168
3,000,000 Illinois Finance Authority, Northwestern Memorial
Healthcare, 4.0%, 7/15/47 3,279,450
8,540,000 Illinois Finance Authority, Presence Health Network,
Series C, 5.0%, 2/15/33 10,298,728
1,000,000 Illinois Finance Authority, Presence Health Network,
Series C, 5.0%, 2/15/36 1,190,310
4,130,000(e) Metropolitan Pier & Exposition Authority, Mccormick
Place Convention, 7.0%, 7/1/26 5,070,194
--------------
Total Illinois $ 33,450,360
-------------------------------------------------------------------------------------------------------------------
Indiana -- 0.3%
3,000,000 Indiana University, Series A, 4.0%, 6/1/42 $ 3,241,680
85,000 Indianapolis Local Public Improvement Bond Bank,
Series B, 6.0%, 1/10/20 85,072
--------------
Total Indiana $ 3,326,752
-------------------------------------------------------------------------------------------------------------------
Louisiana -- 0.5%
6,000,000 Jefferson Parish Hospital Service District No. 2, East
Jefferson General Hospital, 6.375%, 7/1/41 $ 6,110,820
400,000(b) Louisiana State Citizens Property Insurance Corp.,
5.0%, 6/1/24 436,772
500,000(b) Louisiana State Citizens Property Insurance Corp.,
5.0%, 6/1/24 (AGM Insured) 546,970
--------------
Total Louisiana $ 7,094,562
-------------------------------------------------------------------------------------------------------------------
Maine -- 0.9%
4,500,000 Maine Health & Higher Educational Facilities
Authority, Maine General Medical Center,
6.75%, 7/1/36 $ 4,769,730
3,040,000 Maine Health & Higher Educational Facilities
Authority, Maine General Medical Center,
6.95%, 7/1/41 3,221,549
2,745,000 University of Maine, 5.0%, 3/1/25 (AGM Insured) 3,280,055
--------------
Total Maine $ 11,271,334
-------------------------------------------------------------------------------------------------------------------
Maryland -- 2.9%
900,000(f) Maryland Economic Development Corp., Senior
Lien-Chesapeake Bay, Series A, 5.0%, 12/1/16 $ 562,500
400,000(f) Maryland Economic Development Corp., Senior
Lien-Chesapeake Bay, Series B, 5.0%, 12/1/16 250,000
6,250,000(b) Maryland Health & Higher Educational Facilities
Authority, Ascension Health, Series B, 5.0%, 11/15/51 6,705,062
5,000,000(d) State of Maryland, Series A, 5.0%, 3/15/29 6,190,000
The accompanying notes are an integral part of these financial statements.
20 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
Maryland -- (continued)
6,000,000 Washington Suburban Sanitary Commission,
3.0%, 6/1/47 $ 6,148,620
5,175,000 Washington Suburban Sanitary Commission,
Consolidated Public Improvement, 3.0%, 6/1/35 5,392,247
5,180,000 Washington Suburban Sanitary Commission,
Consolidated Public Improvement, 3.0%, 6/1/37 5,338,663
3,880,000 Washington Suburban Sanitary Commission,
Consolidated Public Improvement, Second Series,
4.0%, 6/1/43 4,132,627
3,735,000 Washington Suburban Sanitary Commission,
Consolidated Public Improvement, Second Series,
4.0%, 6/1/44 3,973,517
--------------
Total Maryland $ 38,693,236
-------------------------------------------------------------------------------------------------------------------
Massachusetts -- 18.8%
3,485,000(d) Cape Cod Regional Technical High School District,
School Project Loan Chapter 70 B, 4.0%, 11/15/37 $ 3,905,291
3,485,000(d) Cape Cod Regional Technical High School District,
School Project Loan Chapter 70 B, 4.0%, 11/15/38 3,893,860
1,475,000(d) City of Attleboro, Municipal Purpose Loan,
3.125%, 2/15/35 1,543,071
1,520,000(d) City of Attleboro, Municipal Purpose Loan,
3.25%, 2/15/36 1,605,059
1,565,000(d) City of Attleboro, Municipal Purpose Loan,
3.25%, 2/15/37 1,650,058
1,055,000(d) City of Beverly, 3.125%, 10/15/39 1,102,032
2,000,000(d) City of Boston, Series A, 5.0%, 3/1/39 2,517,840
1,375,000(d) City of Cambridge, Municipal Purpose Loan,
4.0%, 2/15/26 1,651,141
5,075,000(d) City of Cambridge, Municipal Purpose Loan,
Series A, 3.0%, 2/15/35 5,275,615
1,300,000(d) Concord & Carlisle Regional School District,
3.0%, 3/15/29 1,337,713
1,300,000(d) Concord & Carlisle Regional School District,
3.0%, 3/15/31 1,332,149
1,300,000(d) Concord & Carlisle Regional School District,
3.0%, 3/15/33 1,328,821
7,175,000(c) Massachusetts Bay Transportation Authority,
Series A, 7/1/28 6,065,602
5,000,000(c) Massachusetts Department of Transportation,
Series A, 1/1/28 (NATL Insured) 4,273,050
4,200,000 Massachusetts Development Finance Agency,
Agency Williams College, Series P, 5.0%, 7/1/43 4,700,934
1,000,000 Massachusetts Development Finance Agency,
Babson College, 5.0%, 10/1/21 1,064,620
1,000,000 Massachusetts Development Finance Agency,
Babson College, 5.0%, 10/1/22 1,063,240
1,500,000 Massachusetts Development Finance Agency,
Berklee College Music, 5.0%, 10/1/35 1,803,840
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 21
Schedule of Investments | 12/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
1,000,000 Massachusetts Development Finance Agency,
Berkshire Health System, Series G, 5.0%, 10/1/30 $ 1,051,780
4,000,000 Massachusetts Development Finance Agency,
Boston University, Series X, 5.0%, 10/1/48 4,453,680
12,690,000 Massachusetts Development Finance Agency, Broad
Institute, 4.0%, 4/1/41 14,172,953
2,000,000 Massachusetts Development Finance Agency, Broad
Institute, 5.0%, 4/1/37 2,448,840
6,255,000(b) Massachusetts Development Finance Agency, Broad
Institute, Inc., Series A, 5.375%, 4/1/41 6,585,764
1,000,000(b) Massachusetts Development Finance Agency,
Foxborough Regional Charter School, Series A,
7.0%, 7/1/42 1,030,010
5,000,000 Massachusetts Development Finance Agency,
Harvard University, Series A, 4.0%, 7/15/36 5,727,200
5,175,000 Massachusetts Development Finance Agency,
Harvard University, Series A, 5.0%, 7/15/40 7,411,221
5,000,000 Massachusetts Development Finance Agency,
Lawrence General Hospital, Series A, 5.5%, 7/1/44 5,543,450
4,000,000 Massachusetts Development Finance Agency,
Lowell General Hospital, Series G, 5.0%, 7/1/44 4,374,160
400,000 Massachusetts Development Finance Agency,
Milford Regional Medical Center, Series F,
5.625%, 7/15/36 428,936
500,000 Massachusetts Development Finance Agency,
Milford Regional Medical Center, Series F,
5.75%, 7/15/43 534,400
2,000,000 Massachusetts Development Finance Agency,
Northeastern University, 4.0%, 10/1/35 2,094,560
450,000 Massachusetts Development Finance Agency,
Northeastern University, Series A, 5.0%, 3/1/39 507,105
9,930,000 Massachusetts Development Finance Agency,
Partners Healthcare System, 5.0%, 7/1/31 11,566,663
2,700,000 Massachusetts Development Finance Agency,
Partners Healthcare System, Series O, 4.0%, 7/1/45 2,871,855
8,000,000 Massachusetts Development Finance Agency,
Partners Healthcare System, Series S, 4.0%, 7/1/35 9,079,840
5,000,000 Massachusetts Development Finance Agency,
Partner's Healthcare System, Series S-1,
4.0%, 7/1/41 5,476,250
400,000(b) Massachusetts Development Finance Agency, Tufts
Medical, Series I, 6.75%, 1/1/36 422,500
600,000(b) Massachusetts Development Finance Agency, Tufts
Medication Center, Series, 6.75%, 1/1/36 633,582
125,000(b) Massachusetts Development Finance Agency, Tufts
University, Series Q, 4.0%, 8/15/38 144,403
875,000 Massachusetts Development Finance Agency, Tufts
University, Series Q, 4.0%, 8/15/38 944,221
The accompanying notes are an integral part of these financial statements.
22 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
1,000,000 Massachusetts Development Finance Agency,
UMass Memorial, Series H, 5.125%, 7/1/26 $ 1,057,980
6,600,000 Massachusetts Development Finance Agency,
WGBH Educational Foundation, Series A, 5.75%,
1/1/42 (AMBAC Insured) 9,812,022
4,080,000(c) Massachusetts Development Finance Agency,
WGBH Educational Foundation, Series B,
1/1/38 (AGC Insured) 2,513,606
1,585,000 Massachusetts Development Finance Agency,
Whitehead Institute Biomedical Research,
5.0%, 6/1/25 1,668,086
835,000 Massachusetts Development Finance Agency, Woods
Hole Oceanographic Institution, 5.0%, 6/1/38 1,017,197
1,000,000 Massachusetts Development Finance Agency, Woods
Hole Oceanographic Institution, 5.0%, 6/1/43 1,200,910
500,000 Massachusetts Development Finance Agency, Woods
Hole Oceanographic Institution, 5.0%, 6/1/48 600,200
2,500,000 Massachusetts Development Finance Agency,
Worcester Polytechnic Institute, 4.0%, 9/1/49 2,607,775
1,250,000 Massachusetts Development Finance Agency,
Worcester Polytechnic Institute, 5.0%, 9/1/50 1,351,075
2,000,000(g) Massachusetts Health & Educational Facilities
Authority, Harvard University, Series R, 1.3%, 11/1/49 2,000,000
2,335,000(b) Massachusetts Health & Educational Facilities
Authority, Massachusetts Eye And Ear Infirmary,
Series C, 5.375%, 7/1/35 2,383,988
16,950,000 Massachusetts Health & Educational Facilities
Authority, Massachusetts Institute of Technology,
Series K, 5.5%, 7/1/32 24,224,601
2,000,000 Massachusetts Health & Educational Facilities Authority,
Northeastern University, Series T-2, 4.125%, 10/1/37 2,090,720
1,000,000 Massachusetts Port Authority, Series B, 5.0%, 7/1/32 1,093,810
1,000,000 Massachusetts Port Authority, Series B, 5.0%, 7/1/33 1,085,630
3,000,000 Massachusetts Port Authority, Series C, 5.0%, 7/1/33 3,449,070
1,960,000(b) Massachusetts State College Building Authority,
Series A, 5.0%, 5/1/28 (ST INTERCEPT Insured) 2,135,067
2,015,000(b) Massachusetts State College Building Authority,
Series A, 5.0%, 5/1/28 (ST INTERCEPT Insured) 2,197,176
2,420,000 Massachusetts Water Resources Authority, General,
Series B, 5.25%, 8/1/36 (AGM Insured) 3,522,455
1,600,000(d) Town of Lexington, Municipal Purpose Loan,
3.125%, 2/1/36 1,756,560
1,150,000(d) Town of Lexington, Municipal Purpose Loan,
3.125%, 2/1/37 1,253,845
1,635,000(d) Town of Lexington, Municipal Purpose Loan,
3.25%, 2/1/38 1,788,134
1,305,000(d) Town of Nantucket, 2.0%, 12/15/27 1,366,309
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 23
Schedule of Investments | 12/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
5,000,000(d) Town of Natick, Municipal Purpose Loan,
4.0%, 7/15/37 $ 5,591,050
1,955,000(d) Town of Norwood, Municipal Purpose Loan,
2.125%, 7/15/30 1,975,039
2,000,000(d) Town of Plymouth, Municipal Purpose Loan,
3.0%, 5/1/31 2,108,120
1,535,000(d) Town of Plymouth, Municipal Purpose Loan,
3.375%, 5/1/32 1,620,822
1,265,000(d) Town of Plymouth, Municipal Purpose Loan,
3.5%, 5/1/35 1,339,306
3,500,000(d) Town of Plymouth, Municipal Purpose Loan,
3.5%, 5/1/44 3,706,675
2,635,000(d) Town of Plymouth, Municipal Purpose Loan,
5.0%, 5/1/29 3,306,135
4,160,000(d) Town of Stoughton, Municipal Purpose Loan,
3.0%, 10/15/37 4,320,243
1,000,000(d) Town of Wellesley, Municipal Purpose Loan,
4.0%, 6/1/41 1,085,320
4,000,000(d) Town of Wellesley, Municipal Purpose Loan,
4.0%, 6/1/45 4,324,160
4,500,000(d) Town of Wilmington, School, 4.0%, 3/15/37 4,687,695
2,500,000 University of Massachusetts Building Authority,
Series 1, 5.0%, 11/1/39 2,731,700
4,160,000 Woods Hole Marthas Vineyard & Nantucket
Steamship Authority, Series A, 4.0%, 3/1/28
(ST GTD Insured) 4,699,968
--------------
Total Massachusetts $ 247,289,758
-------------------------------------------------------------------------------------------------------------------
Michigan -- 0.7%
2,870,000 Michigan Public Educational Facilities Authority,
Limited Obligation-David Ellis-West Project,
5.875%, 6/1/37 $ 3,112,027
5,000,000 University of Michigan, 5.0%, 4/1/36 5,960,400
--------------
Total Michigan $ 9,072,427
-------------------------------------------------------------------------------------------------------------------
Minnesota -- 2.0%
5,000,000 City of Rochester, Health Care Facilities, Mayo
Clinic, 4.0%, 11/15/48 $ 5,548,200
3,000,000 City of Rochester, Mayo Clinic, Series B,
5.0%, 11/15/29 3,908,070
5,350,000 City of Rochester, Mayo Clinic, Series B,
5.0%, 11/15/36 7,532,693
3,000,000(d) State of Minnesota, Series B, 3.0%, 10/1/36 3,133,380
2,875,000 University of Minnesota, Series A, 5.0%, 4/1/33 3,415,989
600,000 University of Minnesota, Series B, 4.0%, 1/1/20 600,000
1,000,000 University of Minnesota, Series B, 4.0%, 1/1/29 1,096,050
860,000 University of Minnesota, Series B, 4.0%, 1/1/30 940,427
--------------
Total Minnesota $ 26,174,809
-------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
Mississippi -- 0.3%
2,750,000 County of Warren, International Paper Co., Series A,
5.8%, 5/1/34 $ 2,788,858
1,600,000(g) Mississippi Business Finance Corp., Chevron
USA, Inc. Project, Series G, 1.6%, 12/1/30 1,600,000
--------------
Total Mississippi $ 4,388,858
-------------------------------------------------------------------------------------------------------------------
Missouri -- 0.7%
2,500,000 Health & Educational Facilities Authority of the
State of Missouri, CoxHealth Hospital, Series A,
5.0%, 11/15/35 $ 2,852,050
4,000,000 Health & Educational Facilities Authority of the
State of Missouri, Mercy Health, Series F,
4.0%, 11/15/45 4,275,880
2,000,000 Missouri Development Finance Board, City of
Independence-Annual Appropriation Sewer System,
5.25%, 11/1/42 2,264,380
75,000 Missouri State Environmental Improvement &
Energy Resources Authority, Unrefunded Balance-
St. Revolving, 5.125%, 1/1/20 75,000
--------------
Total Missouri $ 9,467,310
-------------------------------------------------------------------------------------------------------------------
Nebraska -- 0.2%
2,000,000(b) University of Nebraska, University Nebraska Lincoln
Student, Series A, 3.0%, 7/1/35 $ 2,223,620
--------------
Total Nebraska $ 2,223,620
-------------------------------------------------------------------------------------------------------------------
New Hampshire -- 1.0%
4,000,000 New Hampshire Health & Education Facilities
Authority Act, Catholic Medical Centre,
3.75%, 7/1/40 $ 4,261,680
7,850,000(b) New Hampshire Health & Education Facilities
Authority Act, Wentworth Douglas Hospital, Series A,
6.5%, 1/1/41 8,260,320
--------------
Total New Hampshire $ 12,522,000
-------------------------------------------------------------------------------------------------------------------
New Jersey -- 1.0%
5,000,000 New Jersey Educational Facilities Authority, Princeton
University, Series B, 5.0%, 7/1/27 $ 6,223,600
3,000,000 New Jersey Educational Facilities Authority, Princeton
University, Series B, 5.0%, 7/1/39 3,167,700
2,000,000(b) New Jersey Transportation Trust Fund Authority,
Transportation System, Series A, 5.5%, 6/15/41 2,125,900
1,640,000(d) Township of Plainsboro, General Improvement,
2.0%, 8/1/24 1,699,680
--------------
Total New Jersey $ 13,216,880
-------------------------------------------------------------------------------------------------------------------
New York -- 4.3%
1,745,000(d) Massapequa Union Free School District,
2.0%, 10/1/32 $ 1,683,105
1,785,000(d) Massapequa Union Free School District,
2.0%, 10/1/33 1,711,547
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 25
Schedule of Investments | 12/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
New York -- (continued)
5,030,000 New York State Dormitory Authority, Columbia
University, 5.0%, 10/1/41 $ 5,237,287
10,000,000 New York State Dormitory Authority, Columbia
University, Series A-2, 5.0%, 10/1/46 15,543,500
5,515,000 New York State Dormitory Authority, Insured-FIT
Student Housing Corp., 5.25%, 7/1/24
(NATL Insured) 6,201,893
4,500,000 New York State Dormitory Authority, New York
University, Series A, 4.0%, 7/1/36 5,063,445
1,000,000 New York State Dormitory Authority, Series A,
4.0%, 7/1/35 1,147,950
5,015,000 New York State Dormitory Authority, Series A,
5.0%, 3/15/31 5,863,488
3,250,000 New York State Dormitory Authority, Trustees of
Columbia University, 5.0%, 10/1/45 4,912,960
5,000,000 New York State Urban Development Corp.,
3.0%, 3/15/49 5,029,650
1,500,000 Port Authority of New York & New Jersey,
Consolidated Ninety-Third Series, 6.125%, 6/1/94 1,793,535
2,925,000(d) White Plains City School District, 2.0%, 5/15/28
(ST AID WITHHLDG Insured) 2,976,480
--------------
Total New York $ 57,164,840
-------------------------------------------------------------------------------------------------------------------
North Carolina -- 2.8%
3,000,000 City of Charlotte, Storm Water Revenue,
4.0%, 12/1/43 $ 3,261,120
5,000,000 City of Fayetteville, Public Works Commission
Revenue, 4.0%, 3/1/44 5,483,850
10,000,000 North Carolina Turnpike Authority, Series A,
4.0%, 1/1/35 11,510,700
5,000,000(d) State of North Carolina, Series A, 5.0%, 6/1/28 6,089,700
9,615,000(d) State of North Carolina, St. Public Improvement
Connecourt, Series A, 3.0%, 6/1/35 10,198,823
--------------
Total North Carolina $ 36,544,193
-------------------------------------------------------------------------------------------------------------------
North Dakota -- 0.4%
5,000,000 County of McLean, Great River Energy, Series B,
5.15%, 7/1/40 $ 5,088,450
--------------
Total North Dakota $ 5,088,450
-------------------------------------------------------------------------------------------------------------------
Ohio -- 1.8%
50,000,000(c) Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, 2nd Subordinated, Series C, 6/1/52 $ 2,625,000
10,000,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 5.75%, 6/1/34 10,025,000
9,890,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 6.5%, 6/1/47 10,001,262
800,000 County of Lake, Lake Hospital, Series S,
6.0%, 8/15/43 802,968
--------------
Total Ohio $ 23,454,230
-------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
Oklahoma -- 0.2%
2,030,000 McGee Creek Authority, Oklahoma Water Revenue,
6.0%, 1/1/23 (NATL Insured) $ 2,166,558
--------------
Total Oklahoma $ 2,166,558
-------------------------------------------------------------------------------------------------------------------
Oregon -- 2.1%
1,800,000 City of Portland, Sewer System Revenue, First Lien,
Series A, 2.0%, 6/15/29 $ 1,840,176
5,000,000(d) Clackamas County School District No. 7J Lake
Oswego, School District, 4.0%, 6/1/43
(SCH-BD GTY Insured) 5,552,300
3,000,000(d) Deschutes & Jefferson Counties School District
No. 2J Redmond, 3.0%, 6/15/32
(SCH-BD GTY Insured) 3,074,370
2,000,000(c)(d) Multnomah County School District No. 40, Deferred
Interest, Series B, 6/15/30 (SCH-BD GTY Insured) 1,602,120
2,000,000(c)(d) Multnomah County School District No. 40, Deferred
Interest, Series B, 6/15/31 (SCH-BD GTY Insured) 1,543,280
1,715,000(c)(d) Multnomah County School District No. 40, Deferred
Interest, Series B, 6/15/32 (SCH-BD GTY Insured) 1,273,199
2,000,000 Oregon Health & Science University, Series A,
5.0%, 7/1/42 2,380,100
1,500,000 Oregon Health & Science University, Series B,
5.0%, 7/1/28 1,820,925
7,030,000(d) State of Oregon, Series J, 5.0%, 8/1/42 8,503,769
--------------
Total Oregon $ 27,590,239
-------------------------------------------------------------------------------------------------------------------
Pennsylvania -- 4.5%
825,000 Chester County Industrial Development Authority,
Collegium Charter School, Series A,
5.125%, 10/15/37 $ 892,402
175,000 Chester County Industrial Development Authority,
Collegium Charter School, Series A,
5.25%, 10/15/47 187,915
4,095,000 Dauphin County General Authority, Pinnacle Health
System Project, 5.0%, 6/1/42 4,351,429
3,725,000 Delaware County Industrial Development Authority,
Chester Charter School Arts Project, Series A,
5.125%, 6/1/46 (144A) 4,025,384
605,000 Pennsylvania Higher Educational Facilities Authority,
4.0%, 12/1/44 681,103
2,500,000 Pennsylvania Higher Educational Facilities Authority,
4.0%, 12/1/48 2,805,575
1,000,000(b) Pennsylvania Higher Educational Facilities Authority,
Edinboro University Foundation, 6.0%, 7/1/43 1,024,120
4,750,000 Pennsylvania Higher Educational Facilities Authority,
Thomas Jefferson University, 5.0%, 9/1/39 5,415,048
1,000,000 Pennsylvania Higher Educational Facilities Authority,
University Properties, Inc., East Stroudsburg,
5.0%, 7/1/42 1,010,330
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 27
Schedule of Investments | 12/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
Pennsylvania -- (continued)
1,000,000 Pennsylvania Housing Finance Agency,
3.35%, 10/1/45 $ 1,036,700
2,000,000 Pennsylvania Housing Finance Agency,
3.4%, 10/1/49 2,055,160
2,000,000 Pennsylvania Turnpike Commission, Series A-1,
5.0%, 12/1/42 2,383,100
5,000,000 Pennsylvania Turnpike Commission, Series A-1,
5.0%, 12/1/47 5,891,700
2,500,000 Philadelphia Authority for Industrial Development,
Childrens Hospital Philadelphia, 4.0%, 7/1/35 2,820,575
3,750,000 Philadelphia Authority for Industrial Development,
Childrens Hospital Philadelphia, 4.0%, 7/1/36 4,222,575
2,500,000 Philadelphia Authority for Industrial Development,
Childrens Hospital Philadelphia, 4.0%, 7/1/37 2,793,225
2,500,000 Philadelphia Authority for Industrial Development,
Childrens Hospital Philadelphia, 5.0%, 7/1/42 2,863,700
3,000,000 Philadelphia Authority for Industrial Development,
Thomas Jefferson University, Series A, 4.0%, 9/1/42 3,240,540
3,680,000 Swarthmore Borough Authority, Swarthmore College,
5.0%, 9/15/39 4,572,069
5,015,000 Swarthmore Borough Authority, Swarthmore College,
5.0%, 9/15/44 6,183,294
1,195,000 Swarthmore Borough Authority, Swarthmore College,
5.0%, 9/15/45 1,466,659
--------------
Total Pennsylvania $ 59,922,603
-------------------------------------------------------------------------------------------------------------------
Puerto Rico -- 0.3%
7,000,000(d)(f) Commonwealth of Puerto Rico, Series A,
8.0%, 7/1/35 $ 4,445,000
--------------
Total Puerto Rico $ 4,445,000
-------------------------------------------------------------------------------------------------------------------
Rhode Island -- 1.0%
5,140,000 Rhode Island Health & Educational Building Corp.,
Brown University, Series A, 4.0%, 9/1/37 $ 5,719,895
3,750,000(g) Tender Option Bond Trust Receipts/Certificates,
Series 2019-XM0721, 0.0%, 9/1/47 (144A) 5,375,700
20,000,000(c) Tobacco Settlement Financing Corp., Asset-Backed,
Series B, 6/1/52 2,425,600
--------------
Total Rhode Island $ 13,521,195
-------------------------------------------------------------------------------------------------------------------
South Carolina -- 1.0%
5,000,000 City of Charleston SC Waterworks & Sewer System
Revenue, 4.0%, 1/1/49 $ 5,715,250
1,000,000 SCAGO Educational Facilities Corp. for Pickens
School District, 3.25%, 12/1/28 1,073,150
5,675,000 South Carolina Transportation Infrastructure Bank,
Series A, 3.0%, 10/1/33 5,876,009
500,000(d) State of South Carolina, St. Economic Development,
Series A, 5.0%, 4/1/20 504,250
--------------
Total South Carolina $ 13,168,659
-------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
Texas -- 8.8%
3,550,000(c) Central Texas Regional Mobility Authority, Capital
Appreciation, 1/1/26 $ 3,169,546
3,000,000(c) Central Texas Regional Mobility Authority, Capital
Appreciation, 1/1/27 2,610,180
7,100,000(c) Central Texas Regional Mobility Authority, Capital
Appreciation, Senior Lien, 1/1/25 6,508,925
2,500,000(b) Central Texas Regional Mobility Authority, Sub Lien,
6.75%, 1/1/41 2,639,125
5,000,000 City of Austin TX Airport System Revenue,
5.0%, 11/15/49 6,121,650
5,080,000(d) Eagle Mountain & Saginaw Independent School
District, 3.0%, 8/15/29 (PSF-GTD Insured) 5,300,624
1,000,000 Harris County Cultural Education Facilities Finance
Corp., YMCA Greater Houston Area, 5.0%, 6/1/28 1,059,830
500,000 Harris County Cultural Education Facilities Finance
Corp., YMCA Greater Houston Area, 5.0%, 6/1/33 525,890
2,750,000(b) Houston Higher Education Finance Corp., Rice
University Project, Series A, 5.0%, 5/15/35 2,790,233
3,290,000(g) Lower Neches Valley Authority Industrial Development
Corp., Exxonmobil, 1.59%, 11/1/38 3,290,000
5,000,000(d) Lubbock-Cooper Independent School District,
4.0%, 2/15/49 (PSF-GTD Insured) 5,366,950
2,000,000 New Hope Cultural Education Facilities Finance
Corp., Cardinal Bay, Inc., Village On The Park,
4.75%, 7/1/51 1,987,060
2,000,000 North Texas Tollway Authority, First Tier, Series D,
5.0%, 1/1/38 2,137,200
4,000,000 North Texas Tollway Authority, Second Tier, Series A,
5.0%, 1/1/30 4,635,720
5,000,000 North Texas Tollway Authority, Second Tier, Series A,
5.0%, 1/1/35 5,733,400
7,525,000(d) State of Texas, Highway Improvement, 5.0%, 4/1/29 8,665,941
1,995,000 Texas Department of Housing & Community Affairs,
Series A, 3.5%, 7/1/34 (GNMA/FNMA Insured) 2,182,789
2,495,000 Texas Department of Housing & Community Affairs,
Series A, 3.8%, 7/1/39 (GNMA/FNMA Insured) 2,710,169
4,000,000 Texas Municipal Gas Acquisition & Supply Corp. III,
5.0%, 12/15/31 4,316,960
10,410,000 Texas Private Activity Bond Surface Transportation
Corp., Senior Lien-LBJ Infrastructure, 7.0%, 6/30/40 10,683,367
2,755,000(b) Texas State Public Finance Authority Charter School
Finance Corp., Education-Cosmos Foundation, Inc.,
Series A, 6.2%, 2/15/40 2,771,337
5,000,000 Texas Water Development Board, 4.0%, 10/15/44 5,700,300
5,000,000 Texas Water Development Board, State Water
Implementation Fund, Series A, 4.0%, 4/15/48 5,559,050
5,000,000 Texas Water Development Board, State Water
Implementation Fund, Series B, 5.0%, 4/15/49 6,141,150
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 29
Schedule of Investments | 12/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
Texas -- (continued)
5,000,000 University of Texas System, Financing System,
Series A, 5.0%, 8/15/24 $ 5,867,750
5,000,000 University of Texas System, Financing System,
Series A, 5.0%, 8/15/49 7,632,050
--------------
Total Texas $ 116,107,196
-------------------------------------------------------------------------------------------------------------------
Utah -- 0.5%
1,000,000 Salt Lake City Corp. Airport Revenue, Series B,
5.0%, 7/1/34 $ 1,208,600
110,000 Utah Charter School Finance Authority, North Davis
Preparatory, 5.75%, 7/15/20 111,207
4,835,000 Utah Transit Authority, Series A, 5.0%, 6/15/31 5,729,040
--------------
Total Utah $ 7,048,847
-------------------------------------------------------------------------------------------------------------------
Virginia -- 7.9%
3,000,000(d) City of Alexandria VA, 3.0%, 7/15/46
(ST AID WITHHLDG Insured) $ 3,081,450
1,170,000(d) City of Manassas, 2.0%, 7/1/31 1,140,165
5,000,000(d) City of Richmond VA, 3.0%, 7/15/35 5,261,250
1,500,000(d) County of Arlington, 4.0%, 8/15/35 1,697,580
10,000,000(d) County of Fairfax, Series A, 4.0%, 10/1/33
(ST AID WITHHLDG Insured) 11,340,800
5,000,000 County of Henrico, Water & Sewer Revenue,
5.0%, 5/1/46 5,925,150
18,490,000 Tobacco Settlement Financing Corp., Senior,
Series B-1, 5.0%, 6/1/47 18,674,900
4,000,000(b) University of Virginia, Series A, 5.0%, 6/1/37 4,524,000
7,075,000 University of Virginia, Series A, 5.0%, 4/1/42 8,557,425
5,000,000(b) University of Virginia, Series A, 5.0%, 6/1/43 5,655,000
12,000,000 University of Virginia, Series A-1, 4.0%, 4/1/45 13,107,000
5,000,000 Upper Occoquan Sewage Authority, 4.0%, 7/1/41 5,419,700
5,000,000 Virginia Commonwealth Transportation Board,
3.0%, 5/15/37 5,212,200
14,105,000 Virginia Public Building Authority, Series A,
3.0%, 8/1/38 14,688,383
--------------
Total Virginia $ 104,285,003
-------------------------------------------------------------------------------------------------------------------
Washington -- 6.2%
16,000,000 Central Puget Sound Regional Transit Authority,
Series S-1, 5.0%, 11/1/46 $ 24,152,000
10,250,000 City of Seattle, Municipal Light & Power Revenue
Improvement, Series A, 4.0%, 1/1/48 11,245,685
10,000,000 King County Housing Authority, Birch Creek Apartments
Project, 5.5%, 5/1/38 (CNTY GTD Insured) 10,025,500
3,000,000(d) King County Issaquah School District No. 411,
4.5%, 12/1/30 (SCH-BD GTY Insured) 3,393,690
1,500,000 Public Utility District No. 1 of Franklin County,
Series A, 5.0%, 9/1/38 1,648,965
The accompanying notes are an integral part of these financial statements.
30 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
-------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------------------------------
Washington -- (continued)
10,390,000(d) State of Washington, Series 2015-D, 5.0%, 7/1/30 $ 12,148,819
5,000,000(d) State of Washington, Series 2017-A, 5.0%, 8/1/30 6,060,800
5,000,000(d) State of Washington, Series A, 5.0%, 8/1/36 5,616,650
6,685,000 University of Washington, Series B, 5.0%, 6/1/28 7,984,898
--------------
Total Washington $ 82,277,007
-------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $1,194,817,948) $1,291,276,630
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
Shares
-------------------------------------------------------------------------------------------------------------------
CLAIM -- 0.1% of Net Assets
200(h) CMS Liquidating Trust $ 500,000
--------------
TOTAL CLAIM
(Cost $640,000) $ 500,000
-------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED
ISSUERS -- 98.1%
(Cost $1,195,457,948) $1,291,776,630
-------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.9% $ 25,640,429
-------------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $1,317,417,059
===================================================================================================================
(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 December 31, 2019, the value of
these securities amounted to $11,443,004, or 0.9% of net
assets.
AGC Assured Guaranty Corp.
AGM Assured Guarantee Municipal.
AMBAC Ambac Assurance Corp.
CNTY GTD County Guaranteed.
FNMA Federal National Mortgage Association.
GNMA Government National Mortgage Association.
NATL National Public Finance Guarantee Corp.
PSF-GTD Permanent School Fund Guaranteed.
SCH-BD GTY School Board Guaranty.
ST AID WITHHDG State Aid Withholding.
ST GTD State Guaranteed.
ST INTERCEPT State Aid Intercept.
+ Amount rounds to less than 0.1%.
(a) Consists of Revenue Bonds unless otherwise indicated.
(b) Pre-refunded bonds have been collateralized by U.S. Treasury
or U.S. Government Agency securities which are held in escrow
to pay interest and principal on the tax exempt issue and to
retire the bonds in full at the earliest refunding date.
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 31
Schedule of Investments | 12/31/19 (continued)
(c) Security issued with a zero coupon. Income is recognized
through accretion of discount.
(d) Represents a General Obligation Bond.
(e) Escrow to maturity.
(f) Security is in default.
(g) The interest rate is subject to change periodically. The
interest rate and/or reference index and spread shown at
December 31, 2019.
(h) Non-income producing security.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended December 31, 2019, aggregated $286,930,095 and $119,535,678,
respectively.
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Amundi Pioneer Asset
Management, Inc. (the "Adviser") serves as the Fund's investment adviser, as
set forth in Rule 17a-7 under the Investment Company Act of 1940, pursuant to
procedures adopted by the Board of Trustees. Under these procedures, cross
trades are effected at current market prices. During the year ended December
31, 2019, the Fund did not engage in any cross trade activity.
At December 31, 2019, the net unrealized appreciation on investments based on
cost for federal tax purposes of $1,195,072,781 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $98,283,745
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (1,579,896)
-----------
Net unrealized appreciation $96,703,849
===========
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels 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
risks, 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 following is a summary of the inputs used as of December 31, 2019, in
valuing the Fund's investments:
----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------
Municipal Bonds $ -- $1,291,276,630 $ -- $1,291,276,630
Claim -- 500,000 -- 500,000
----------------------------------------------------------------------------------------
Total Investments
in Securities $ -- $1,291,776,630 $ -- $1,291,776,630
========================================================================================
During the year ended December 31, 2019, there were no transfers between Levels
1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
32 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
Statement of Assets and Liabilities | 12/31/19
ASSETS:
Investments in unaffiliated issuers, at value (cost $1,195,457,948) $1,291,776,630
Cash 9,464,753
Receivables --
Investment securities sold 610,000
Fund shares sold 4,006,796
Interest 14,154,559
Due from the Adviser 42,524
Other assets 40,086
----------------------------------------------------------------------------------------------
Total assets $1,320,095,348
==============================================================================================
LIABILITIES:
Payables --
Fund shares repurchased $ 931,522
Distributions 1,327,246
Transfer agent fees 185,374
Due to affiliates 106,889
Accrued expenses 127,258
----------------------------------------------------------------------------------------------
Total liabilities $ 2,678,289
==============================================================================================
NET ASSETS:
Paid-in capital $1,219,488,806
Distributable earnings 97,928,253
----------------------------------------------------------------------------------------------
Net assets $1,317,417,059
==============================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $634,233,406/41,812,191 shares) $ 15.17
Class C (based on $30,293,764/2,014,651 shares) $ 15.04
Class Y (based on $652,889,889/43,161,182 shares) $ 15.13
MAXIMUM OFFERING PRICE PER SHARE:
Class A (based on $15.17 net asset value per share/
100%-4.50% maximum sales charge) $ 15.88
==============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 33
Statement of Operations
FOR THE YEAR ENDED 12/31/19
INVESTMENT INCOME:
Interest from unaffiliated issuers $42,276,448
---------------------------------------------------------------------------------------------------
Total investment income $ 42,276,448
===================================================================================================
EXPENSES:
Management fees $ 5,332,784
Administrative expense 363,690
Transfer agent fees
Class A 231,162
Class C 15,221
Class Y 630,285
Distribution fees
Class A 1,529,140
Class C 309,979
Shareowner communications expense 75,560
Custodian fees 14,925
Registration fees 91,404
Professional fees 116,050
Printing expense 46,930
Pricing fees 43,532
Trustees' fees 56,701
Insurance expense 14,283
Miscellaneous 83,650
---------------------------------------------------------------------------------------------------
Total expenses $ 8,955,296
Less fees waived and expenses reimbursed by the Adviser (424,887)
---------------------------------------------------------------------------------------------------
Net expenses $ 8,530,409
---------------------------------------------------------------------------------------------------
Net investment income $ 33,746,039
---------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $ 789,515
---------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers $ 74,711,747
---------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ 75,501,262
---------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $109,247,301
===================================================================================================
The accompanying notes are an integral part of these financial statements.
34 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------------------------
Year Year
Ended Ended
12/31/19 12/31/18
-----------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 33,746,039 $ 34,616,395
Net realized gain (loss) on investments 789,515 939,313
Change in net unrealized appreciation (depreciation)
on investments 74,711,747 (36,185,345)
-----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 109,247,301 $ (629,637)
-----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Class A ($0.41 and $0.41 per share, respectively) $ (16,812,083) $ (17,760,328)
Class C ($0.29 and $0.30 per share, respectively) (620,136) (912,319)
Class Y ($0.45 and $0.45 per share, respectively) (16,986,756) (16,525,147)
-----------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (34,418,975) $ (35,197,794)
-----------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sales of shares $ 382,852,617 $ 286,624,878
Reinvestment of distributions 18,884,895 19,644,431
Cost of shares repurchased (232,951,397) (531,559,261)
-----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ 168,786,115 $ (225,289,952)
-----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 243,614,441 $ (261,117,383)
NET ASSETS:
Beginning of year $1,073,802,618 $1,334,920,001
-----------------------------------------------------------------------------------------------------------
End of year $1,317,417,059 $1,073,802,618
===========================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 35
Statements of Changes in Net Assets (continued)
-----------------------------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
12/31/19 12/31/19 12/31/18 12/31/18
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------------------
Class A
Shares sold 5,261,670 $ 78,481,864 2,580,767 $ 36,742,481
Reinvestment of distributions 915,734 13,624,242 1,012,132 14,405,517
Less shares repurchased (5,415,686) (80,228,115) (6,709,019) (95,520,365)
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) 761,718 $ 11,877,991 (3,116,120) $ (44,372,367)
=================================================================================================================
Class C
Shares sold 390,390 $ 5,772,808 291,123 $ 4,119,681
Reinvestment of distributions 33,837 498,297 53,350 753,501
Less shares repurchased (722,962) (10,646,512) (1,579,787) (22,317,473)
-----------------------------------------------------------------------------------------------------------------
Net decrease (298,735) $ (4,375,407) (1,235,314) $ (17,444,291)
=================================================================================================================
Class Y
Shares sold 20,257,790 $ 298,597,945 17,279,189 $ 245,762,716
Reinvestment of distributions 320,129 4,762,356 315,850 4,485,413
Less shares repurchased (9,617,667) (142,076,770) (29,019,039) (413,721,423)
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) 10,960,252 $ 161,283,531 (11,424,000) $(163,473,294)
=================================================================================================================
The accompanying notes are an integral part of these financial statements.
36 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/19 12/31/18 12/31/17 12/31/16* 12/31/15*
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 14.23 $ 14.64 $ 14.12 $ 14.60 $ 14.49
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) (a) $ 0.40 $ 0.41 $ 0.41 $ 0.40 $ 0.44
Net realized and unrealized gain (loss) on investments 0.95 (0.41) 0.51 (0.46) 0.20
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.35 $ -- $ 0.92 $ (0.06) $ 0.64
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.41) $ (0.40) $ (0.40) $ (0.42) $ (0.53)
Net realized gain -- (0.01) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.41) $ (0.41) $ (0.40) $ (0.42) $ (0.53)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.94 $ (0.41) $ 0.52 $ (0.48) $ 0.11
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.17 $ 14.23 $ 14.64 $ 14.12 $ 14.60
====================================================================================================================================
Total return (b) 9.57% 0.10% 6.56% (0.50)% 4.51%
Ratio of net expenses to average net assets 0.81% 0.81% 0.80% 0.81% 0.82%
Ratio of net investment income (loss) to average net assets 2.70% 2.88% 2.80% 2.73% 3.08%
Portfolio turnover rate 10% 16% 20% 18% 21%
Net assets, end of period (in thousands) $634,233 $584,127 $646,525 $690,991 $709,616
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.81% 0.81% 0.80% 0.81% 0.83%
Net investment income (loss) to average net assets 2.70% 2.88% 2.80% 2.73% 3.07%
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 37
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/19 12/31/18 12/31/17 12/31/16* 12/31/15*
------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 14.11 $ 14.51 $ 14.00 $ 14.48 $ 14.37
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) (a) $ 0.29 $ 0.30 $ 0.29 $ 0.29 $ 0.33
Net realized and unrealized gain (loss) on investments 0.93 (0.40) 0.51 (0.46) 0.20
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.22 $ (0.10) $ 0.80 $ (0.17) $ 0.53
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.29) $ (0.29) $ (0.29) $ (0.31) $ (0.42)
Net realized gain -- (0.01) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.29) $ (0.30) $ (0.29) $ (0.31) $ (0.42)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.93 $ (0.40) $ 0.51 $ (0.48) $ 0.11
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.04 $ 14.11 $ 14.51 $ 14.00 $ 14.48
====================================================================================================================================
Total return (b) 8.74% (0.60)% 5.72% (1.27)% 3.74%
Ratio of net expenses to average net assets 1.56% 1.57% 1.55% 1.56% 1.56%
Ratio of net investment income (loss) to average net assets 1.95% 2.13% 2.05% 1.98% 2.33%
Portfolio turnover rate 10% 16% 20% 18% 21%
Net assets, end of period (in thousands) $30,294 $32,636 $51,506 $61,832 $54,752
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
The accompanying notes are an integral part of these financial statements.
38 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/19 12/31/18 12/31/17 12/31/16* 12/31/15*
------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 14.19 $ 14.60 $ 14.08 $ 14.56 $ 14.44
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) (a) $ 0.44 $ 0.45 $ 0.44 $ 0.44 $ 0.48
Net realized and unrealized gain (loss) on investments 0.95 (0.41) 0.51 (0.46) 0.21
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.39 $ 0.04 $ 0.95 $ (0.02) $ 0.69
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.45) $ (0.44) $ (0.43) $ (0.46) $ (0.57)
Net realized gain -- (0.01) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.45) $ (0.45) $ (0.43) $ (0.46) $ (0.57)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.94 $ (0.41) $ 0.52 $ (0.48) $ 0.12
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.13 $ 14.19 $ 14.60 $ 14.08 $ 14.56
====================================================================================================================================
Total return (b) 9.87% 0.35% 6.84% (0.25)% 4.86%
Ratio of net expenses to average net assets 0.55% 0.55% 0.55% 0.55% 0.55%
Ratio of net investment income (loss) to average net assets 2.94% 3.13% 3.04% 2.98% 3.34%
Portfolio turnover rate 10% 16% 20% 18% 21%
Net assets, end of period (in thousands) $652,890 $457,039 $636,889 $374,674 $276,778
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.62% 0.65% 0.63% 0.64% 0.64%
Net investment income (loss) to average net assets 2.87% 3.03% 2.96% 2.89% 3.25%
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) 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.
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 39
Notes to Financial Statements | 12/31/19
1. Organization and Significant Accounting Policies
Pioneer AMT-Free Municipal Fund (the "Fund") is one of two series comprising
Pioneer Series Trust II (the "Trust"), 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 C, Class K
and Class Y shares. Class K shares had not commenced operations as of December
31, 2019. 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 of
Trustees the flexibility to specify either per-share voting or dollar-weighted
voting when submitting matters for shareowner approval. Under per-share voting,
each share of a class of the Fund is entitled to one vote. Under
dollar-weighted voting, a shareowner'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.
Amundi Pioneer Asset Management, Inc., an indirect, wholly owned subsidiary of
Amundi and Amundi's wholly owned subsidiary, Amundi USA, Inc., serves as the
Fund's investment adviser (the "Adviser"). Amundi Pioneer Distributor, Inc., an
affiliate of Amundi Pioneer Asset Management, Inc., serves as the Fund's
distributor (the "Distributor").
In August 2018, the Securities and Exchange Commission ("SEC") released a
Disclosure Update and Simplification Final Rule. The Final Rule amends
Regulation S-X disclosures requirements to conform them to U.S. Generally
Accepted Accounting Principles ("U.S. GAAP") for investment companies. The
Fund's financial statements were prepared in compliance with the new amendments
to Regulation S-X.
During March 2017, the Financial Accounting Standards Board (FASB) issued an
Accounting Standard Update, ASU 2017-08, Receivables-Nonrefundable Fees and
Other Costs (Subtopic 310-20), Premium Amortization on Purchased
40 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
Callable Debt Securities ("ASU 2017-08"), which shortens the amortization
period for purchased non-contingently callable debt securities held at a
premium. ASU 2017-08 specifies that the premium amortization period ends at the
earliest call date, for certain purchased non-contingently callable debt
securities. ASU 2017-08 is effective for fiscal years, and interim periods
within those fiscal years, beginning after December 15, 2018. The Fund has
adopted ASU 2017-08 as of December 31, 2019. The implementation of ASU 2017-08
did not have a material impact on the Fund's Financial Statements.
The Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. U.S. GAAP requires the management of the
Fund to make estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of income,
expenses and gain or loss on investments during the reporting period. Actual
results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements:
A. Security Valuation
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 are valued by using 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, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to
supply prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such funds' net asset value. Shares of
exchange-listed closed-end funds are valued by using the last sale price
on the principal exchange where they are traded.
Securities for which independent pricing services or broker-dealers 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 a
fair valuation team
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 41
comprised of certain personnel of the Adviser pursuant to procedures
adopted by the Fund's Board of Trustees. The Adviser's fair valuation team
uses fair value methods approved by the Valuation Committee of the Board
of Trustees. The Adviser's fair valuation team 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 of the Board of Trustees.
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. 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.
At December 31, 2019, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services, broker-dealers or using a third party insurance industry pricing
model).
B. Investment Income and Transactions
Interest income, including interest on income-bearing cash accounts, is
recorded on the accrual basis. Dividend and interest income are reported
net of unrecoverable foreign taxes withheld at the applicable country
rates and net of income accrued on defaulted securities.
Interest and dividend income payable by delivery of additional shares is
reclassified as PIK (payment-in-kind) income upon receipt and is included
in interest and dividend income, respectively.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income and net realized capital gains,
if any, to its shareowners. Therefore, no provision for federal income
taxes is required. As of December 31, 2019, the Fund did not accrue any
interest or penalties
42 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
with respect to uncertain tax positions, which, if applicable, would be
recorded as an income tax expense on the Statement of Operations. Tax
returns filed within the prior three 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. GAAP. Distributions in excess of net investment
income or net realized gains are temporary over distributions 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.
At December 31, 2019, the Fund was permitted to carry forward indefinitely
$1,480,241 of long-term losses.
The tax character of distributions paid during the years ended December
31, 2019 and December 31, 2018, were as follows:
--------------------------------------------------------------------------
2019 2018
--------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 485,535 $ 1,319,418
Tax-exempt income 33,933,440 32,702,074
Long-term capital gain -- 1,176,302
--------------------------------------------------------------------------
Total $34,418,975 $35,197,794
==========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at December 31, 2019:
--------------------------------------------------------------------------
2019
--------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 2,704,645
Capital Loss Carryforward (1,480,241)
Net unrealized appreciation 96,703,849
--------------------------------------------------------------------------
Total $97,928,253
==========================================================================
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales, tax treatment of
premium and amortization, and tax adjustments on defaulted bonds.
D. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Distributor earned $24,421 in underwriting commissions on the sale of
Class A shares during the year ended December 31, 2019.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 43
E. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset
value attributable to Class A 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 Fund's transfer agent 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 C and Class Y shares can
reflect different transfer agent and distribution expense rates.
F. Risks
The value of securities held by the Fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real
or perceived adverse economic, political or regulatory conditions,
inflation, changes in interest rates, lack of liquidity in the bond
markets or adverse investor sentiment. In the past several years,
financial markets have experienced increased volatility, depressed
valuations, decreased liquidity and heightened uncertainty. These
conditions may continue, recur, worsen or spread. A general rise in
interest rates could adversely affect the price and liquidity of
fixed-income securities and could also result in increased redemptions
from the Fund.
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 investments
in foreign markets and countries with limited developing markets may
subject the Fund to a greater degree of risk than investments in a
developed market. These risks include disruptive political or economic
conditions and the imposition of adverse governmental laws or currency
exchange restrictions.
The municipal bond market can be susceptible to unusual volatility,
particularly for lower-rated and unrated securities. Liquidity can be
reduced unpredictably in response to overall economic conditions or credit
44 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
tightening. Municipal issuers may be adversely affected by rising health
care costs, increasing unfunded pension liabilities, and by the phasing
out of federal programs providing financial support. Unfavorable
conditions and developments relating to projects financed with municipal
securities can result in lower revenues to issuers of municipal
securities, potentially resulting in defaults. Issuers often depend on
revenues from these projects to make principal and interest payments. The
value of municipal securities can also be adversely affected by changes in
the financial condition of one or more individual municipal issuers or
insurers of municipal issuers, regulatory and political developments, tax
law changes or other legislative actions, and by uncertainties and public
perceptions concerning these and other factors. Municipal securities may
be more susceptible to downgrades or defaults during recessions or similar
periods of economic stress. In recent years, an increasing number of
municipal issuers in the United States have defaulted on obligations and
commenced insolvency proceedings. Financial difficulties of municipal
issuers may continue or get worse. To the extent the Fund invests
significantly in a single state, including California, Florida,
Massachusetts, Texas, Virginia and Washington, or in securities the
payments on which are dependent upon a single project or source of
revenues, or that relate to a sector or industry, including health care
facilities, education, transportation, special revenues and pollution
control, the Fund will be more susceptible to associated risks and
developments.
With the increased use of technologies such as the Internet to conduct
business, the Fund is susceptible to operational, information security and
related risks. While the Fund's Adviser has established business
continuity plans in the event of, and risk management systems to prevent,
limit or mitigate, such cyber-attacks, there are inherent limitations in
such plans and systems, including the possibility that certain risks have
not been identified. Furthermore, the Fund cannot control the
cybersecurity plans and systems put in place by service providers to the
Fund such as Brown Brothers Harriman & Co., the Fund's custodian and
accounting agent, and DST Asset Manager Solutions, Inc., the Fund's
transfer agent. In addition, many beneficial owners of Fund shares hold
them through accounts at broker-dealers, retirement platforms and other
financial market participants over which neither the Fund nor Amundi
Pioneer exercises control. Each of these may in turn rely on service
providers to them, which are also subject to the risk of cyber-attacks.
Cybersecurity failures or breaches at Amundi Pioneer or the Fund's service
providers or intermediaries have the ability to cause disruptions and
impact business operations, potentially resulting in financial losses,
interference with the Fund's ability to calculate its net asset value,
impediments to trading, the inability of Fund shareowners to effect share
purchases, redemptions or exchanges or receive distributions, loss of or
unauthorized access to private shareowner information and violations of
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 45
applicable privacy and other laws, regulatory fines, penalties,
reputational damage, or additional compliance costs. Such costs and losses
may not be covered under any insurance. In addition, maintaining vigilance
against cyber-attacks may involve substantial costs over time, and system
enhancements may themselves be subject to cyber-attacks.
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
The Adviser manages the Fund's portfolio. Effective October 1, 2018, 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 of the
Fund's average daily net assets, 0.40% of the next $1.25 billion of the Fund's
average daily net assets, and 0.35% of the Fund's average daily net assets over
$2 billion. Prior to October 1, 2018, Management fees were 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 of the Fund's average daily net
assets, and 0.40% of the Fund's average daily net assets over $750 million. For
the year ended December 31, 2019, the effective management fee (excluding
waivers and/or assumptions of expenses) was equivalent to 0.44% of the Fund's
average daily net assets.
The Adviser has contractually agreed to limit ordinary operating expenses
(ordinary operating expenses means all fund expenses other than extraordinary
expenses, such as litigation, taxes, brokerage commissions and acquired fund
fees and expenses) of the Fund to the extent required to reduce Fund expenses
to 0.55% of the average daily net assets attributable to Class Y shares. This
expense limitation is in effect through May 1, 2020. Prior to May 1, 2019, the
Adviser contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 0.82% of the average daily net assets
attributable to Class A shares. Fees waived and expenses reimbursed during the
year ended December 31, 2019, are reflected on the Statement of Operations.
There can be no assurance that the Adviser will extend the expense limitation
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
$81,096 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at December 31, 2019.
46 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
3. Transfer Agent
DST Asset Manager Solutions, Inc. serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings, and outgoing phone calls. For the year
ended December 31, 2019, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------------
Shareowner Communications:
--------------------------------------------------------------------------------
Class A $49,444
Class C 1,567
Class Y 24,549
--------------------------------------------------------------------------------
Total $75,560
================================================================================
4. Distribution Plan
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A and Class C
shares. Pursuant to the Plan, the Fund pays the Distributor 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 the
Distributor 1.00% of the average daily net assets attributable to Class C
shares. The fee for 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 C shares.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $25,793 in distribution fees payable to the Distributor, at
December 31, 2019.
In addition, redemptions of Class A and Class C 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. 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 the
Distributor. For the year ended December 31, 2019, CDSCs in the amount of
$20.79 were paid to the Distributor.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 47
5. 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 credit
facility or the limits set for borrowing by the Fund's prospectus and the 1940
Act. The Fund participates in a credit facility that is in the amount of
$250 million. Under such facility, depending on the type of loan, interest on
borrowings is payable at the London Interbank Offered Rate ("LIBOR") plus a
credit spread. The Fund also pays 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 year
ended December 31, 2019, the Fund had no borrowings under the credit facility.
48 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust II and the Shareholders of
Pioneer AMT-Free Municipal Fund:
--------------------------------------------------------------------------------
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Pioneer
AMT-Free Municipal Fund (the "Fund") (one of the funds constituting Pioneer
Series Trust II (the "Trust")), including the schedule of investments, as of
December 31, 2019, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, the financial highlights for each of the three years in the
period then ended and the related notes (collectively referred to as the
"financial statements"). The financial highlights for the periods ended
December 31, 2015 and December 31, 2016 were audited by another independent
registered public accounting firm whose report, dated February 22, 2017,
expressed an unqualified opinion on those financial highlights. In our opinion,
the financial statements present fairly, in all material respects, the
financial position of Pioneer AMT-Free Municipal Fund (one of the funds
constituting Pioneer Series Trust II) at December 31, 2019, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and its financial highlights for each
of the three years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust's management.
Our responsibility is to express an opinion on the Fund's financial statements
based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required
to be independent with respect to the Trust in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Trust is not required to have,
nor were we engaged to perform, an audit of the Trust's internal control over
financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting, but not for the
purpose of expressing an opinion on the effectiveness of the Trust's internal
control over financial reporting. Accordingly, we express no such opinion.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 49
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of December 31, 2019, by correspondence with the custodian and
brokers. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.
/s/ Ernst & Young LLP
We have served as the auditor of one or more Amundi Pioneer investment
companies since 2017.
Boston, Massachusetts
February 26, 2020
50 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
ADDITIONAL INFORMATION (unaudited)
Qualified interest income is exempt from nonresident alien (NRA) tax
withholding. The percentage of the Fund's ordinary income distributions derived
from qualified interest income was 100%.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 51
Approval of Investment Management Agreement
Amundi Pioneer Asset Management, Inc. ("APAM") serves as the investment adviser
to Pioneer AMT-Free Municipal Fund (the "Fund") pursuant to an investment
management agreement between APAM and the Fund. In order for APAM to remain the
investment adviser of the Fund, the Trustees of the Fund must determine
annually whether to renew the investment management agreement for the Fund.
The contract review process began in January 2019 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the
process. Contract review materials were provided to the Trustees in March 2019,
July 2019 and September 2019. In addition, the Trustees reviewed and discussed
the Fund's performance at regularly scheduled meetings throughout the year, and
took into account other information related to the Fund provided to the
Trustees at regularly scheduled meetings, in connection with the review of the
Fund's investment management agreement.
In March 2019, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment management agreement, and reviewed and
discussed the qualifications of the investment management teams for the Fund,
as well as the level of investment by the Fund's portfolio managers in the
Fund. In July 2019, the Trustees, among other things, reviewed the Fund's
management fees and total expense ratios, the financial statements of APAM and
its parent companies, profitability analyses provided by APAM, and analyses
from APAM as to possible economies of scale. The Trustees also reviewed the
profitability of the institutional business of APAM and APAM's affiliate,
Amundi Pioneer Institutional Asset Management, Inc. ("APIAM" and, together with
APAM, "Amundi Pioneer"), as compared to that of APAM's fund management
business, and considered the differences between the fees and expenses of the
Fund and the fees and expenses of APAM's and APIAM's institutional accounts, as
well as the different services provided by APAM to the Fund and by APAM and
APIAM to the institutional accounts. The Trustees further considered contract
review materials, including additional materials received in response to the
Trustees' request, in September 2019.
At a meeting held on September 17, 2019, based on their evaluation of the
information provided by APAM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment management agreement for another year. In
52 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
approving the renewal of the investment management agreement, the Trustees
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by APAM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed APAM's investment approach
for the Fund and its research process. The Trustees considered the resources of
APAM and the personnel of APAM who provide investment management services to
the Fund. They also reviewed the amount of non-Fund assets managed by the
portfolio managers of the Fund. They considered the non-investment resources
and personnel of APAM that are involved in APAM's services to the Fund,
including APAM's compliance, risk management, and legal resources and
personnel. The Trustees noted the substantial attention and high priority given
by APAM's senior management to the Pioneer Fund complex.
The Trustees considered that APAM supervises and monitors the performance of
the Fund's service providers and provides the Fund with personnel (including
Fund officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
APAM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to APAM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by APAM to the Fund were
satisfactory and consistent with the terms of the investment management
agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and
discuss throughout the year data prepared by APAM and information comparing the
Fund's performance with the performance of its peer group of funds, as
classified by Morningstar, Inc. (Morningstar), and the performance of the
Fund's benchmark index. They also discuss the Fund's performance with APAM on a
regular basis. The Trustees' regular reviews and discussions were factored into
the Trustees' deliberations concerning the renewal of the investment management
agreement.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 53
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund
in comparison to the management fees of its peer group of funds as classified
by Morningstar and also to the expense ratios of a peer group of funds selected
on the basis of criteria determined by the Independent Trustees for this
purpose using data provided by Strategic Insight Mutual Fund Research and
Consulting, LLC (Strategic Insight), an independent third party. The peer group
comparisons referred to below are organized in quintiles. Each quintile
represents one-fifth of the peer group. In all peer group comparisons referred
to below, first quintile is most favorable to the Fund's shareowners. The
Trustees noted that they separately review and consider the impact of the
Fund's transfer agency and Fund- and APAM-paid expenses for sub-transfer agency
and intermediary arrangements, and that the results of the most recent such
review were considered in the consideration of the Fund's expense ratio.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the third quintile relative to the management fees paid by
other funds in its Morningstar category for the comparable period. The Trustees
also considered the breakpoints in the management fee schedule and the reduced
fee rates above certain asset levels. The Trustees considered that the expense
ratio of the Fund's Class A shares for the most recent fiscal year was in the
third quintile relative to its Strategic Insight peer group for the comparable
period. The Trustees noted that APAM had agreed to waive fees and/or reimburse
expenses in order to limit the ordinary operating expenses of the Fund.
The Trustees reviewed management fees charged by APAM and APIAM to
institutional and other clients, including publicly offered European funds
sponsored by APAM's affiliates, unaffiliated U.S. registered investment
companies (in a sub-advisory capacity), and unaffiliated foreign and domestic
separate accounts. The Trustees also considered APAM's costs in providing
services to the Fund and APAM's and APIAM's costs in providing services to the
other clients and considered the differences in management fees and profit
margins for fund and non-fund services. In evaluating the fees associated with
APAM's and APIAM's client accounts, the Trustees took into account the
respective demands, resources and complexity associated with the Fund and other
client accounts. The Trustees noted that, in some instances, the fee rates for
those clients were lower than the management fee for the Fund and considered
that, under the investment management agreement with the Fund, APAM performs
additional services for the Fund that it does not provide to those other
clients or services that are broader in scope, including oversight of the
Fund's other service providers and activities related to compliance and the
54 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
extensive regulatory and tax regimes to which the Fund is subject. The Trustees
also considered the entrepreneurial risks associated with APAM's management of
the Fund.
The Trustees concluded that the management fee payable by the Fund to APAM was
reasonable in relation to the nature and quality of the services provided by
APAM.
Profitability
The Trustees considered information provided by APAM regarding the
profitability of APAM with respect to the advisory services provided by APAM to
the Fund, including the methodology used by APAM in allocating certain of its
costs to the management of the Fund. The Trustees also considered APAM's profit
margin in connection with the overall operation of the Fund. They further
reviewed the financial results, including the profit margins, realized by APAM
and APIAM from non-fund businesses. The Trustees considered APAM's profit
margins in comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that APAM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered APAM's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with the Fund and Fund shareholders. The
Trustees noted the breakpoints in the management fee schedule. The Trustees
recognize that economies of scale are difficult to identify and quantify, and
that, among other factors that may be relevant, are the following: fee levels,
expense subsidization, investment by APAM in research and analytical
capabilities and APAM's commitment and resource allocation to the Fund. The
Trustees noted that profitability also may be an indicator of the availability
of any economies of scale, although profitability may vary for other reasons
including due to reductions in expenses. The Trustees concluded that economies
of scale, if any, were being appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits that APAM enjoys from its
relationship with the Fund. The Trustees considered the character and amount of
fees paid or to be paid by the Fund, other than under the investment management
agreement, for services provided by APAM and its affiliates. The Trustees
further considered the revenues and profitability of APAM's
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 55
businesses other than the Fund business. To the extent applicable, the Trustees
also considered the benefits to the Fund and to APAM and its affiliates from
the use of "soft" commission dollars generated by the Fund to pay for research
and brokerage services.
The Trustees considered that Amundi Pioneer is the principal U.S. asset
management business of Amundi, which is one of the largest asset managers
globally. Amundi's worldwide asset management business manages over $1.6
trillion in assets (including the Pioneer Funds). The Trustees considered
that APAM's relationship with Amundi creates potential opportunities for APAM,
APIAM and Amundi that derive from APAM's relationships with the Fund, including
Amundi's ability to market the services of APAM globally. The Trustees noted
that APAM has access to additional research and portfolio management
capabilities as a result of its relationship with Amundi and Amundi's enhanced
global presence that may contribute to an increase in the resources available
to APAM. The Trustees considered that APAM and the Fund receive reciprocal
intangible benefits from the relationship, including mutual brand recognition
and, for the Fund, direct and indirect access to the resources of a large
global asset manager. The Trustees concluded that any such benefits received by
APAM as a result of its relationship with the Fund were reasonable.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including the Independent Trustees, concluded that the investment
management agreement for the Fund, including the fees payable thereunder, was
fair and reasonable and voted to approve the proposed renewal of the investment
management agreement.
56 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
Trustees, Officers and Service Providers
Investment Adviser and Administrator
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Transfer Agent
DST Asset Manager Solutions, 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 www.amundipioneer.com/us. This information is also available on
the Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their
principal occupations and other directorships they have held during at least
the past five years. Trustees who are interested persons of the Fund within the
meaning of the 1940 Act are referred to as Interested Trustees. Trustees who
are not interested persons of the Fund are referred to as Independent Trustees.
Each of the Trustees serves as a Trustee of each of the 45 U.S. registered
investment portfolios for which Amundi Pioneer serves as investment adviser
(the "Pioneer Funds"). The address for all Trustees and all officers of the
Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 57
Independent Trustees
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (68) Trustee since 2006. Private investor (2004 - 2008 and 2013 - Director, Broadridge
Chairman of the Board Serves until a successor present); Chairman (2008 - 2013) and Chief Financial Solutions, Inc.
and Trustee trustee is elected or earlier Executive Officer (2008 - 2012), Quadriserv, (investor communications
retirement or removal. Inc. (technology products for securities and securities processing
lending industry); and Senior Executive Vice provider for financial
President, The Bank of New York (financial services industry) (2009 -
and securities services) (1986 - 2004) present); Director,
Quadriserv, Inc. (2005 -
2013); and Commissioner,
New Jersey State Civil
Service Commission
(2011 - 2015)
------------------------------------------------------------------------------------------------------------------------------------
John E. Baumgardner, Trustee since 2019. Of Counsel (2019 - present), Partner Chairman, The Lakeville
Jr. (68) Serves until a successor (1983-2018), Sullivan & Cromwell LLP Journal Company, LLC,
Trustee trustee is elected or earlier (law firm). (privately-held community
retirement or removal. newspaper group)
(2015-present)
------------------------------------------------------------------------------------------------------------------------------------
Diane Durnin (62) Trustee since 2019. Managing Director - Head of Product None
Trustee Serves until a successor Strategy and Development, BNY Mellon
trustee is elected or earlier Investment Management (2012-2018); Vice
retirement or removal. Chairman - The Dreyfus Corporation
(2005 - 2018): Executive Vice President
Head of Product, BNY Mellon Investment
Management (2007-2012); Executive Director -
Product Strategy, Mellon Asset Management
(2005-2007); Executive Vice President Head
of Products, Marketing and Client Service,
Dreyfus Corporation (2000-2005); and Senior
Vice President Strategic Product and
Business Development, Dreyfus Corporation
(1994-2000)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (75) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon
Trustee Serves until a successor Economy, Harvard University (1972 - present) Institutional Funds
trustee is elected or earlier Investment Trust and Mellon
retirement or removal. Institutional Funds Master
Portfolio (oversaw 17
portfolios in fund complex)
(1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
58 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (62) Trustee since 2017. Chief Investment Officer, 1199 SEIU Funds None
Trustee (Advisory Trustee from (healthcare workers union pension funds)
2014 - 2017). Serves until (2001 - present); Vice President -
a successor trustee is International Investments Group, American
elected or earlier retirement International Group, Inc. (insurance
or removal. company) (1993 - 2001); Vice President -
Corporate Finance and Treasury Group,
Citibank, N.A. (1980 - 1986 and 1990 -
1993); Vice President - Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer of
debt securities) (1988 - 1990); Mortgage
Strategies Group, Shearson Lehman Hutton,
Inc. (investment bank) (1987 - 1988); and
Mortgage Strategies Group, Drexel Burnham
Lambert, Ltd. (investment bank)
(1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (71) Trustee since 2004. President and Chief Executive Officer, Director of New America High
Trustee Serves until a successor Metric Financial Inc. (formerly known as Income Fund, Inc.
trustee is elected or earlier Newbury Piret Company) (investment banking (closed-end investment
retirement or removal. firm) (1981 - present) company) (2004 - present);
and Member, Board of
Governors, Investment
Company Institute
(2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (72) Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a successor (2012 - present); Executive Vice President,
trustee is elected or earlier BNY Mellon (financial and investment company
retirement or removal. services) (1969 - 2012); Director, BNY
International Financing Corp. (financial
services) (2002 - 2012); Director, Mellon
Overseas Investment Corp. (financial
services) (2009 - 2012); Director,
Financial Models (technology) (2005-2007);
Director, BNY Hamilton Funds, Ireland
(offshore investment companies) (2004-2007);
Chairman/Director, AIB/BNY Securities
Services, Ltd., Ireland (financial services)
(1999-2006); and Chairman, BNY Alternative
Investment Services, Inc. (financial
services) (2005-2007)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 59
Interested Trustees
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (57)* Trustee since 2017. Director, CEO and President of Amundi None
Trustee, President and Serves until a successor Pioneer Asset Management USA, Inc. (since
Chief Executive Officer trustee is elected or earlier September 2014); Director, CEO and President
retirement or removal of Amundi Pioneer Asset Management, Inc.
(since September 2014); Director, CEO and
President of Amundi Pioneer Distributor,
Inc. (since September 2014); Director, CEO
and President of Amundi Pioneer
Institutional Asset Management, Inc. (since
September 2014); Chair, Amundi Pioneer Asset
Management USA, Inc., Amundi Pioneer
Distributor, Inc. and Amundi Pioneer
Institutional Asset Management, Inc.
(September 2014 - 2018); Managing Director,
Morgan Stanley Investment Management
(2010 - 2013); Director of Institutional
Business, CEO of International, Eaton Vance
Management (2005 - 2010); and Director of
Amundi USA, Inc. (since 2017)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (61)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a successor 2008) and Chief Investment Officer, U.S.
trustee is elected or earlier (since 2010) of Amundi Pioneer Asset
retirement or removal Management USA, Inc.; Director and
Executive Vice President and Chief
Investment Officer, U.S. of Amundi Pioneer
(since 2008); Executive Vice President and
Chief Investment Officer, U.S. of Amundi
Pioneer Institutional Asset Management, Inc.
(since 2009); Portfolio Manager of Amundi
Pioneer (since 1999); and Director of Amundi
USA, Inc. (since 2017)
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers or
directors of the Fund's investment adviser and certain of its affiliates.
60 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
Fund Officers
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (55) Since 2004. Serves at the Vice President and Associate General Counsel None
Secretary and Chief discretion of the Board of Amundi Pioneer since January 2008;
Legal Officer Secretary and Chief Legal Officer of all of
the Pioneer Funds since June 2010; Assistant
Secretary of all of the Pioneer Funds from
September 2003 to May 2010; and Vice
President and Senior Counsel of Amundi
Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (58) Since 2010. Serves at the Fund Governance Director of Amundi Pioneer None
Assistant Secretary discretion of the Board since December 2006 and Assistant Secretary
of all the Pioneer Funds since June 2010;
Manager - Fund Governance of Amundi Pioneer
from December 2003 to November 2006; and
Senior Paralegal of Amundi Pioneer from
January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (57) Since 2010. Serves at the Assistant General Counsel of Amundi Pioneer None
Assistant Secretary discretion of the Board since May 2013 and Assistant Secretary of
all the Pioneer Funds since June 2010; and
Counsel of Amundi Pioneer from June 2007 to
May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (60) Since 2008. Serves at the Vice President - Fund Treasury of Amundi None
Treasurer and Chief discretion of the Board Pioneer; Treasurer of all of the Pioneer
Financial and Funds since March 2008; Deputy Treasurer of
Accounting Officer Amundi Pioneer from March 2004 to February
2008; and Assistant Treasurer of all of the
Pioneer Funds from March 2004 to
February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (54) Since 2004. Serves at the Director - Fund Treasury of Amundi Pioneer; None
Assistant Treasurer discretion of the Board and Assistant Treasurer of all of the
Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (61) Since 2004. Serves at the Senior Manager - Fund Treasury of Amundi None
Assistant Treasurer discretion of the Board Pioneer; and Assistant Treasurer of all of
the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19 61
Fund Officers (continued)
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
John Malone (48) Since 2018. Serves at the Managing Director, Chief Compliance Officer None
Chief Compliance Officer discretion of the Board of Amundi Pioneer Asset Management; Amundi
Pioneer Institutional Asset Management,
Inc.; and the Pioneer Funds since September
2018; and Chief Compliance Officer of Amundi
Pioneer Distributor, Inc. since
January 2014.
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (48) Since 2006. Serves at the Vice President - Amundi Pioneer Asset None
Anti-Money Laundering discretion of the Board Management; and Anti-Money Laundering
Officer Officer of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
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68 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/19
How to Contact Amundi 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
FactFoneSM for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 219427
Kansas City, MO 64121-9427
Our toll-free fax 1-800-225-4240
Our internet e-mail address us.askamundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com/us
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year as
an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form
N-PORT by visiting the Commission's web site at https://www.sec.gov.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com/us
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
[C] 2020 Amundi Pioneer Asset Management 18644-14-0220
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 12(a)(1), 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)).
Mr. David R. Bock, 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.
The audit fees for the Trust were $38,500
payable to Ernst & Young LLP for the year ended
December 31, 2019 and $38,500
for the year ended December 31, 2018.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no audit-related services in 2019 or 2018.
(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.
The tax fees for the Trust were $8,028
payable to Ernst & Young LLP for the year ended
December 31, 2019 and $8,028
for the year ended December 31, 2018.
(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.
Pioneer Disciplined Value Fund:
Other Fees
There were no other fees in 2019 or 2018.
(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 Amudi Pioneer Asset Management, Inc, the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Trust's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Trust. For the
years ended December 31 2019 and 2018, there were no
services provided to an affiliate that required the
Trust's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants 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 registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Trust were $8,028
payable to Ernst & Young LLP for the year ended
December 31, 2019 and $8,028 for the year
ended December 31, 2018.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants 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 registrant's 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 of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
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 registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's 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 registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
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 registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
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 registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R 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 and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
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.
Item 12. Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies.
(a) If the registrant is a closed-end management investment company,
provide the following dollar amounts of income and compensation related
to the securities lending activities of the registrant during its most
recent fiscal year:
N/A
(1) Gross income from securities lending activities;
N/A
(2) All fees and/or compensation for each of the following securities
lending activities and related services: any share of revenue generated
by the securities lending program paid to the securities lending agent(s)
(revenue split); fees paid for cash collateral management services
(including fees deducted from a pooled cash collateral reinvestment
vehicle) that are not included in the revenue split; administrative
fees that are not included in the revenue split; fees for
indemnification that are not included in the revenue split; rebates
paid to borrowers; and any other fees relating to the securities lending
program that are not included in the revenue split, including a description
of those other fees;
N/A
(3) The aggregate fees/compensation disclosed pursuant to paragraph (2); and
N/A
(4) Net income from securities lending activities (i.e., the dollar amount in
paragraph (1) minus the dollar amount in paragraph (3)).
If a fee for a service is included in the revenue split, state that the fee
is included in the revenue split.
N/A
(b) If the registrant is a closed-end management investment company, describe
the services provided to the registrant by the securities lending agent in
the registrants most recent fiscal year.
N/A
ITEM 13. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) 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.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
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/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date March 3, 2020
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/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date March 3, 2020
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date March 3, 2020
* Print the name and title of each signing officer under his or her signature.