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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-02864
Pioneer Bond Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: June 30
Date of reporting period: July 1, 2004 through June 30, 2004
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1.REPORTS TO SHAREOWNERS.
PIONEER
-------
BOND
FUND
Annual
Report
6/30/04
[LOGO] PIONEER
Investments(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 8
Schedule of Investments 11
Financial Statements 25
Notes to Financial Statements 34
Report of Independent Registered Public Accounting Firm 40
Trustees, Officers and Service Providers 41
Retirement Plans from Pioneer 48
Programs and Services for Pioneer Shareowners 50
Pioneer Bond Fund
- --------------------------------------------------------------------------------
LETTER TO SHAREOWNERS 6/30/04
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
U.S. equity markets traced a jagged course through the first half of the year,
ending on June 30 only slightly ahead of where they started. Mid-sized and
small-cap indices scored modest gains, while indicators that track large-cap
stocks showed even smaller changes. For bond investors, Treasury issues wound
up the period with higher yields and lower prices than at year-end. The same
was true of corporate issues, whose prices gave ground in the face of rising
interest rates, while high-yield bonds, outstanding performers over recent
quarters, also cooled off.
Although the economic expansion continued to move ahead, investors were
preoccupied with factors that might have undesirable impacts on the economy and
the markets. For one thing, the threat of terrorism is never far from our
minds. For another, the jump in oil prices, attributed to turmoil in the
Mideast and vast demand from China and other developing nations, was a major
factor. The cost of gas or oil for heating our homes, and gasoline for our cars
is a critical component in household budgets. Industry, too, requires energy,
and in many cases petroleum is an essential raw material.
The "jobless" recovery became a job-generating machine for a few months,
followed by a brief slump and a partial rebound. But strong boosts in
employment quickly triggered fears of economic overheating; too much demand for
goods and services, the reasons for aggressive corporate hiring, might trigger
inflation. That would lead to higher interest rates that could choke off the
recovery by causing consumers and businesses to hold back on outlays. In fact,
on June 30, the Federal Reserve Board raised short-term interest rates by
one-quarter percentage point, the first hike in four years.
While there may be further increases, they probably will be gradual; the
Federal Reserve Board would like to keep the expansion intact while keeping
inflation at bay. And even after the Fed's June move, short-term rates remain
near the lowest levels many of us have seen. U.S. businesses, which have done
massive amounts of cost-cutting in recent years, can readily accommodate
somewhat higher borrowing costs. In addition, the federal income tax cuts that
have helped bolster growth over the past several quarters remain in place.
More growth choices from Pioneer
The possibility of higher interest rates and the economy's direction could have
important implications for the way your portfolio is balanced, so an
appointment with your professional financial advisor may well be in order.
When you talk to your advisor, ask to hear about the Pioneer Oak Ridge and
Pioneer Papp Funds. These six additions to our product lineup are designed to
broaden your opportunities to pursue growth. Please consider the Funds'
investment objectives, risks, charges and expenses carefully before investing.
The prospectus contains that and other information about the Fund and should be
read carefully before you invest or send money. To obtain a prospectus and for
other information on any Pioneer fund, contact your investment advisor, call
1-800-225-6292 or visit our web site www.pioneerfunds.com.
Respectfully,
/s/ Osbert M. Hood
- ------------------
Osbert M. Hood
President
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
1
Pioneer Bond Fund
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PORTFOLIO SUMMARY 6/30/04
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Portfolio Maturity
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED DOCUMENT.]
0-1 Year 6.3%
1-3 Years 19.2%
3-4 Years 29.5%
4-6 Years 23.9%
6-8 Years 15.2%
8+ Years 5.9%
Portfolio Quality
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED DOCUMENT.]
U.S. Government and Agency Obligations 44.8%
AA 0.7%
A 2.6%
BBB 28.7%
BB 10.5%
B & Lower 8.3%
Commercial Paper 4.4%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Government National Mortgage Association II, 6.00%, 11/20/33 5.25%
2. Federal Gold Loan Mortgage Corp., 6.0%, 05/01/34 2.98
3. Federal National Mortgage Association, 6.0%, 07/01/33 1.79
4. Federal National Mortgage Association, 6.0%, 4/1/33 1.47
5. Federal Home Loan Mortgage Corp., 6.00%, 03/01/33 1.37
6. Illinova Corp., 7.5%, 6/15/09 1.36
7. Jabil Circuit, Inc., 5.875%, 7/15/10 1.26
8. Government National Mortgage Association II, 5.50%, 03/20/34 1.20
9. Thomas & Betts Corp., 7.25%, 6/1/13 1.19
10. Timken Co., 5.75%, 2/15/10 1.13
* This list excludes money market and derivative instruments. Portfolio
holdings will vary for other periods.
2
Pioneer Bond Fund
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PERFORMANCE UPDATE 6/30/04 CLASS A SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/04 6/30/03
$9.18 $9.41
Distributions per Share Net Investment Short-Term Long-Term
(7/1/03 - 6/30/04) Income Capital Gains Capital Gains
$0.5038 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund at public offering price, compared to that
of the Lehman Brothers Aggregate Bond Index.
Average Annual Total Returns
(as of June 30, 2004)
Net Asset Public Offering
Period Value Price*
10 Years 6.72% 6.22%
5 Years 6.70 5.73
1 Year 2.98 -1.62
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period.
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Lehman
Brothers
Pioneer Aggregate
Bond Fund* Bond Index
6/94 9550 10000
10642 11255
6/96 11070 11819
11854 12783
6/98 13045 14129
13221 14572
6/00 13392 15235
14825 16947
6/02 15944 18410
17759 20325
6/04 18289 20391
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net asset
value. Investment return and principal value fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For performance
data that is current to the most recent month-end, please call 1-800-225-6292 or
visit our web site www.pioneerfunds.com.
The Lehman Brothers Aggregate Bond Index is a widely recognized market
value-weighted measure of government and corporate securities, agency mortgage
pass-through securities, asset-backed securities and commercial mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in the Indexes.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
3
Pioneer Bond Fund
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PERFORMANCE UPDATE 6/30/04 CLASS B SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/04 6/30/03
$9.14 $9.37
Distributions per Share Net Investment Short-Term Long-Term
(7/1/03 - 6/30/04) Income Capital Gains Capital Gains
$0.4174 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
Average Annual Total Returns
(as of June 30, 2004)
If If
Period Held Redeemed*
10 Years 5.85% 5.85%
5 Years 5.82 5.66
1 Year 2.04 -1.86
All returns reflect reinvestment of distributions.
* Reflects deduction of the maximum applicable contingent deferred sales
charge (CDSC) at the end of the period. The maximum CDSC of 4% declines to
zero over six years.
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Lehman
Brothers
Pioneer Aggregate
Bond Fund* Bond Index
6/94 10000 10000
11057 11255
6/96 11405 11819
12117 12783
6/98 13233 14129
13309 14572
6/00 13373 15235
14672 16947
6/02 15666 18410
17302 20325
6/04 17655 20391
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net asset
value. Investment return and principal value fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For performance
data that is current to the most recent month-end, please call 1-800-225-6292 or
visit our web site www.pioneerfunds.com.
The Lehman Brothers Aggregate Bond Index is a widely recognized market
value-weighted measure of government and corporate securities, agency mortgage
pass-through securities, asset-backed securities and commercial mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in the Indexes.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
4
Pioneer Bond Fund
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PERFORMANCE UPDATE 6/30/04 CLASS C SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/04 6/30/03
$9.11 $9.31
Distributions per Share Net Investment Short-Term Long-Term
(7/1/03 - 6/30/04) Income Capital Gains Capital Gains
$0.3930 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
Average Annual Total Returns
(as of June 30, 2004)
If If
Period Held Redeemed*
Life-of-Class
(1/31/96) 4.84% 4.84%
5 Years 5.68 5.68
1 Year 2.11 2.11
All returns reflect reinvestment of distributions.
* The performance of Class C shares does not reflect the 1% front-end sales
charge in effect prior to February 1, 2004. If you paid a 1% sales charge,
your returns would be lower than those shown above. Class C shares held for
less than 1 year are subject to a 1% contingent deferred sales charge.
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Lehman
Brothers
Pioneer Aggregate
Bond Fund* Bond Index
1/96 10000 10000
9700 9813
10294 10613
6/98 11233 11731
11300 12099
6/00 11341 12649
12414 14071
6/02 13226 15286
14585 16875
6/04 14894 16931
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net asset
value. Investment return and principal value fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For performance
data that is current to the most recent month-end, please call 1-800-225-6292 or
visit our web site www.pioneerfunds.com.
The Lehman Brothers Aggregate Bond Index is a widely recognized market
value-weighted measure of government and corporate securities, agency mortgage
pass-through securities, asset-backed securities and commercial mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in the Indexes.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
5
Pioneer Bond Fund
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PERFORMANCE UPDATE 6/30/04 CLASS R SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/04 6/30/03
$9.28 $9.50
Distributions per Share Net Investment Short-Term Long-Term
(7/1/03 - 6/30/04) Income Capital Gains Capital Gains
$0.5158 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
Average Annual Total Returns+
(as of June 30, 2004)
If If
Period Held Redeemed*
10 Years 6.37% 6.37%
5 Years 6.54 6.54
1 Year 3.20 2.20
All returns reflect reinvestment of distributions.
* Reflects deduction 1% CDSC. Shares sold within 18 months of purchase may be
subject to the CDSC.
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment+
Lehman
Brothers
Pioneer Aggregate
Bond Fund* Bond Index
6/94 10000 10000
11093 11255
6/96 11481 11819
12233 12783
6/98 13394 14129
13507 14572
6/00 13613 15235
14994 16947
6/02 16046 18410
17966 20325
6/04 18540 20391
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For performance
data that is current to the most recent month-end, please call 1-800-225-6292
or visit our web site www.pioneerfunds.com.
+ The performance of Class R shares for the period prior to the commencement of
operations of Class R shares on April 1, 2003 is based on the performance of
Class A shares, reduced to reflect the higher distribution and service fees of
Class R shares. For the period after April 1, 2003, the actual performance of
Class R shares is reflected, which performance may be influenced by the
smaller asset size of Class R shares compared to Class A shares.
The Lehman Brothers Aggregate Bond Index is a widely recognized market
value-weighted measure of government and corporate securities, agency mortgage
pass-through securities, asset-backed securities and commercial
mortgage-backed securities. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in the Indexes.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
6
Pioneer Bond Fund
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PERFORMANCE UPDATE 6/30/04 CLASS Y SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/04 6/30/03
$9.12 $9.35
Distributions per Share Net Investment Short-Term Long-Term
(7/1/03 - 6/30/04) Income Capital Gains Capital Gains
$0.5462 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
Average Annual Total Returns
(as of June 30, 2004)
If If
Period Held Redeemed
Life-of-Class
(9/20/01) 7.45% 7.45%
1 Year 3.48 3.48
All returns reflect reinvestment of distributions.
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Lehman
Brothers
Pioneer Aggregate
Bond Fund* Bond Index
9/01 10000 10000
6/02 10507 10383
6/03 11754 11463
6/04 12163 11500
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net asset
value. Investment return and principal value fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For performance
data that is current to the most recent month-end, please call 1-800-225-6292 or
visit our web site www.pioneerfunds.com.
The Lehman Brothers Aggregate Bond Index is a widely recognized market
value-weighted measure of government and corporate securities, agency mortgage
pass-through securities, asset-backed securities and commercial mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in the Indexes.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
7
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/04
- --------------------------------------------------------------------------------
As market interest rates spiked up in the final half of the 12-month period
ending June 30, 2004, high-yield corporate bonds and mortgage-backed securities
provided the best defensive protection, as conditions changed in the U.S.
fixed-income market. In the following discussion, Kenneth J. Taubes discusses
the factors that influenced Pioneer Bond Fund's performance during the 12
months. Mr. Taubes, Director of Pioneer's Fixed Income Group, oversees the team
responsible for daily management of the Fund.
Q: How did the Fund perform during the 12 months ended June 30, 2004?
A: In a challenging period for fixed-income investing, Pioneer Bond Fund
outdistanced both market benchmarks and competitive peer group averages. For
the 12 months, the Fund's Class A shares had a total return of 2.98%, while
Class B and Class C shares returned 2.04% and 2.11%, respectively, all at
net asset value. During the same 12 months, the Lehman Aggregate Bond Index
had a return of 0.32%, while the average return of funds in Lipper's A-Rated
Corporate Debt category was 0.04%. The Fund also continued to deliver a
competitive yield. The standardized 30-day SEC yield on Class A shares on
June 30, for example, was 4.30%.
Q: What were the factors that affected performance?
A: The Fund's performance was helped both by asset allocation and good security
selection. We had the largest overweight positions in the two asset classes
with the best performance during the 12 months: high-yield corporate bonds
and mortgage-backed securities. Throughout the year, we kept the Fund's
high-yield exposure close to the 20% limit of our policy. That strategy
helped substantially as the high-yield market, as measured by the Merrill
Lynch High Yield Master II Index, returned 10.30% for the 12 months. We also
had more than 40% of assets invested in mortgage securities during a period
in which mortgages were the best performing part of the investment-grade
fixed-income market. As a result, typically 60% to 65% of Fund assets were
invested in the two best performing parts of the bond market. Both
high-yield bonds and mortgage-backed securities tend to be more resistant to
the effects of price losses from increasing interest-rates than other bonds
because of their yield advantages. The performance of
8
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
mortgage-backed securities is also helped by the tendency of mortgage
prepayment risk to decline as interest rates rise.
We held our allocation to Treasury securities, the worst performing part of
the bond market, to less than 10% of assets during the period, and focused
our Treasury exposure on inflation-protected Treasuries, which outperformed
standard Treasury securities. Treasuries were the worst performing part of
the fixed-income market. During the 12-month period, the prices of 10-year
Treasuries declined by 7.5%.
Q: What types of security selections had the greatest influence on performance?
A: Several high-yield corporate bonds made significant contributions to
performance. Bonds issued by Corning, which restructured its business to
focus on the production of the material used for flat-screen monitors, did
very well, as did securities of retailer J.C. Penney, which improved its
credit position through restructuring and the sale of its pharmacy chain
division.
Bonds issued by hotel chains also did well as the economy improved and
business travel increased. Among the top performers in the portfolio were
bonds issued by the Hilton, Starwood and John Q. Hammond hotel chains. The
securities of insurance company Allmerica Financial also appreciated in
price during the period as a result of that company's positive restructuring
efforts.
Q: How would you describe the Fund's overall positioning?
A: We kept the Fund positioned to benefit from the improving economy, which
helps support the corporate bond market, while guarding against the threat
of rising interest rates.
At the end of the fiscal year, on June 30, mortgage securities accounted for
44.9% of Fund assets, while corporate high-yield bonds made up 18.5% of the
portfolio. About 30.3% of assets were in investment-grade corporates, and
just 1.4% of assets were invested in Treasuries.
Because rising interest rates tend to undermine bond prices, we shortened
the Fund's duration to lower its sensitivity to changes in interest rates.
Duration, a measure of interest-rate sensitivity,
9
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/04 (continued)
- --------------------------------------------------------------------------------
declined during the period from 4.7 years at the start of the fiscal year to
4.3 years on June 30, 2004.
Average credit quality on June 30, 2004 was A.
Q: What is your outlook for the bond market?
A: We believe the economy is healthy and should continue to grow. Short-term
rates currently are below the rate of inflation and should be expected to
continue to rise in the coming months. The Federal Reserve began to raise
the important Fed Funds rate, the most influential short-term rate, on June
30, and we expect further tightening by the Fed in the months ahead. We
believe market rates on longer-term bonds, which rose in the months leading
up to the June 30 announcement, probably are priced appropriately for
current conditions, but pressure on shorter-term and intermediate-term
interest rates should continue for several more quarters.
The outlook for corporate securities appears good, however, as more
companies gain additional pricing power, which should help them strengthen
their balance sheets. We recently have initiated some positions in the steel
industry, for example, an area we have generally avoided in the past.
In this environment, we anticipate maintaining a focus on corporate bonds
and mortgage-backed securities and expect to maintain the Fund's position to
mute the impact of rising interest rates of short- and intermediate-term
securities by keeping duration relatively short.
Any information in this shareholder report regarding market or economic
trends or the factors influencing the Fund's historical or future
performance are statements of the opinion of Fund management as of the date
of this report. These statements should not be relied upon for any other
purposes. Past performance is no guarantee of future results, and there is
no guarantee that market forecasts discussed will be realized.
10
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/04
- --------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
ASSET BACKED SECURITIES - 2.9%
Diversified Financials - 1.4%
$1,976,000 BBB-/Baa2 PF Export Receivable Master Trust, 6.436%,
6/1/15 (144A) $ 1,948,553
1,425,328 BBB/Baa2 Power Receivables Finance, 6.29%,
1/1/12 (144A) 1,451,369
------------
Total Diversified Financials $ 3,399,922
------------
Real Estate - 0.8%
Real Estate Investment Trusts - 0.8%
2,175,000 BBB-/Baa3 Global Signal Trust, 5.395%, 1/15/34 (144A) $ 2,089,888
------------
Total Real Estate $ 2,089,888
------------
Utilities - 0.7%
Electric Utilities - 0.7%
1,800,000 BBB-/Baa3 Empresa Electric Guacolda, 8.625%, 4/30/13 $ 1,867,894
------------
Total Utilities $ 1,867,894
------------
TOTAL ASSET BACKED SECURITIES
(Cost $7,395,775) $ 7,357,704
------------
COLLATERIZED MORTGAGE OBLIGATIONS - 0.4%
Insurance - 0.4%
Multi-Line Insurance - 0.4%
1,000,000 AAA/Aaa National Realty Finance 1999-A2,
6.48%, 1/15/09 $ 1,079,942
------------
Total Insurance $ 1,079,942
------------
TOTAL COLLATERIZED MORTGAGE OBLIGATIONS
(Cost $1,007,962) $ 1,079,942
------------
CORPORATE BONDS - 46.9%
Energy - 1.6%
Oil & Gas Exploration & Production - 0.4%
1,000,000 BB/Ba3 Cie Generale De Geophysique SA,
10.625%, 11/15/07 $ 1,065,000
------------
Oil & Gas Refining Marketing & Transportation - 1.2%
1,750,000 BBB/Ba1 Magellan Midstream Partners, L.P.,
6.45%, 6/1/14 $ 1,757,861
1,375,000 BB-/Ba2 Semco Energy Inc., 7.125%, 5/15/08 1,409,375
------------
$ 3,167,236
------------
Total Energy $ 4,232,236
------------
The accompanying notes are an integral part of these financial statements. 11
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/04 (continued)
- --------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Materials - 7.7%
Commodity Chemicals - 1.0%
$1,100,000 BBB-/Ba1 Methanex Corp., 8.75%, 8/15/12 $ 1,237,500
1,500,000 BB+/Ba2 Nova Chemicals Ltd., 6.5%, 1/15/12 1,477,500
------------
$ 2,715,000
------------
Diversified Chemical - 0.4%
1,000,000 CCC+/Caa1 Huntsman ICI Chemicals, 10.125%, 7/1/09 (c) $ 1,020,000
------------
Diversified Metals & Mining - 1.1%
2,575,000 BBB/Ba1 Kennametal Inc., 7.2%, 6/15/12 $ 2,723,369
------------
Metal & Glass Containers - 1.2%
1,000,000 BB/Ba3 Ball Corp., 6.875%, 12/15/12 $ 1,015,000
2,000,000 B+/B2 Greif Brothers Corp., 8.875%, 8/1/12 2,152,500
------------
$ 3,167,500
------------
Paper Packaging - 0.8%
1,125,000 BB/Ba2 Abitibi-Consolidated, Inc., 6.95%, 12/15/06 $ 1,152,980
800,000 B/B2 Stone Container Corp., 9.75%, 2/1/11 880,000
------------
$ 2,032,980
------------
Paper Products - 0.5%
1,300,000 BB/Ba2 Bowater Canada Finance, 7.95%, 11/15/11 $ 1,342,870
------------
Specialty Chemicals - 1.8%
500,000 BBB-/Baa3 Ferro Corp., 7.125%, 4/1/28 $ 503,639
2,000,000 BBB-/Baa3 Ferro Corp., 9.125%, 1/1/09 2,296,724
1,750,000 B-/Caa2 OM Group Inc., 9.25%, 12/15/11 1,793,750
------------
$ 4,594,113
------------
Steel - 0.9%
1,400,000 B-/Caa1 Ispat Inland ULC, 9.75%, 4/1/14 (144A) $ 1,442,000
1,000,000 BB/Ba3 International Steel Group, 6.5%, 4/15/14
(144A) 937,500
------------
$ 2,379,500
------------
Total Materials $ 19,975,332
------------
Capital Goods - 5.4%
Aerospace & Defense - 1.1%
1,500,000 BB-/Ba3 L-3 Communication Corp., 7.625%, 6/15/12 $ 1,582,500
500,000 BB-/Ba3 L-3 Communications Corp., 6.125%, 7/15/13 482,500
850,000 BBB-/Baa3 Precision Castparts Corp., 5.6%, 12/15/13 827,513
------------
$ 2,892,513
------------
12 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Building Products - 0.6%
$1,500,000 B+/B2 NCI Building Systems, Inc., 9.25%, 5/1/09 $ 1,575,000
------------
Electrical Components & Equipment - 1.5%
1,000,000 BB-/Ba2 MSW Energy Holdings, 7.375%, 9/1/10 (144A) $ 995,000
2,750,000 BBB-/Ba1 Thomas & Betts Corp., 7.25%, 6/1/13 2,912,852
------------
$ 3,907,852
------------
Industrial Machinery - 2.2%
1,950,000 B/B3 JLG Industries Inc., 8.375%, 6/15/12 (c) $ 1,984,125
800,000 B/B2 The Manitowoc Co., Inc., 10.5%, 8/1/12 916,000
2,775,000 BBB-/Ba1 Timken Co., 5.75%, 2/15/10 2,780,816
------------
$ 5,680,941
------------
Total Capital Goods $ 14,056,306
------------
Transportation - 0.7%
Airlines - 0.7%
1,548,465 A+/A2 Southwest Airlines Co., 7.67%, 1/2/14 $ 1,724,293
------------
Total Transportation $ 1,724,293
------------
Automobiles & Components - 1.8%
Auto Parts & Equipment - 0.1%
150,000 BBB-/Ba1 Lear Corp., 7.96%, 5/15/05 (144A) $ 156,408
------------
Automobile Manufacturers - 1.7%
500,000 BBB/A3 General Motors Capital Corp., 7.5%, 7/15/05 $ 522,308
1,500,000 BBB-/Baa2 Hertz Corp., 6.25%, 3/15/09 1,528,455
360,000 BBB-/Baa2 Hertz Corp., 7.4%, 3/1/11 377,956
2,000,000 BB+/Ba1 Hyundai Motor Co Ltd., 5.3%, 12/19/08 1,968,170
------------
$ 4,396,889
------------
Total Automobiles & Components $ 4,553,297
------------
Hotels, Restaurants & Leisure - 1.3%
1,885,000 BBB-/Ba1 Hilton Hotels, 7.625%, 12/1/12 $ 2,026,375
1,200,000 B/B2 John Q Hamons Hotels, 8.875%, 5/15/12 1,302,000
------------
Total Hotels, Restaurants & Leisure $ 3,328,375
------------
Media - 2.3%
Broadcasting & Cable TV - 1.0%
2,500,000 BBB-/Ba2 Rogers Cable Inc., 7.875%, 5/1/12 $ 2,635,168
------------
Movies & Entertainment - 0.6%
1,250,000 BBB+/Baa1 AOL Time Warner, Inc., 6.875%, 5/1/12 $ 1,350,741
------------
The accompanying notes are an integral part of these financial statements. 13
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/04 (continued)
- --------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Publishing - 0.7%
$1,550,000 BBB-/Baa3 News America Holdings, 8.5%, 2/23/25 $ 1,866,392
------------
Total Media $ 5,852,301
------------
Retailing - 1.6%
Department Stores - 0.7%
850,000 BB+/Ba3 J.C. Penney Co., Inc., 7.125%, 11/15/23 $ 871,250
893,000 BB+/Ba3 J.C. Penney Co., Inc., 9.75%, 6/15/21 919,790
------------
$ 1,791,040
------------
Specialty Stores - 0.9%
580,000 BB/Ba2 Toys R Us, 7.375%, 10/15/18 $ 535,775
1,825,000 BB/Ba2 Toys R Us, 7.875%, 4/15/13 (c) 1,831,844
------------
$ 2,367,619
------------
Total Retailing $ 4,158,659
------------
Food & Drug Retailing - 0.4%
Hypermarkets & Supercenters - 0.4%
1,000,000 AA/Aa2 Wal-Mart Stores, Inc., 8.62%, 1/1/10 $ 1,088,590
------------
Total Food & Drug Retailing $ 1,088,590
------------
Food, Beverage & Tobacco - 0.8%
1,975,000 BBB/Baa2 Altria Group Inc., 7.0%, 11/4/13 $ 2,011,188
------------
Total Food, Beverage & Tobacco $ 2,011,188
------------
Health Care Equipment & Services - 1.7%
Health Care Facilities - 1.0%
2,660,000 BBB-/Ba1 HCA, Inc., 6.3%, 10/1/12 $ 2,661,365
------------
Health Care Supplies - 0.7%
1,874,000 BBB-/Ba1 Bausch & Lomb, 7.125%, 8/1/28 $ 1,876,219
------------
Total Health Care Equipment & Services $ 4,537,584
------------
Banks - 1.2%
Regional Banks - 0.5%
1,250,000 BBB-/Baa3 Hudson United Bank, 7.0%, 5/15/12 $ 1,361,910
------------
Thrifts & Mortgage Finance - 0.7%
1,900,000 BBB-/Baa3 Sovereign Bank, 5.125%, 3/15/13 $ 1,806,148
------------
Total Banks $ 3,168,058
------------
Diversified Financials - 3.0%
Investment Banking & Brokerage - 0.3%
950,000 B+/B1 E*Trade Financial Corp., 8.0%, 6/15/11 (144A) $ 945,250
------------
14 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Other Diversified Finance Services - 1.8%
$2,450,000 A-/Baa3 Brascan Corp., 5.75%, 3/1/10 $ 2,519,786
2,250,000 BBB/Baa3 Glencore Funding LLC, 6.0%, 4/15/14 (144A) 2,086,965
------------
$ 4,606,751
------------
Specialized Finance - 0.9%
2,100,000 BBB-/Baa3 GATX Financial Corp., 8.875%, 6/1/09 $ 2,356,112
------------
Total Diversified Financials $ 7,908,113
------------
Insurance - 5.2%
Life & Health Insurance - 1.7%
1,500,000 B+/B2 Presidential Life Corp., 7.875%, 2/15/09 $ 1,505,625
2,850,000 BB+/Ba1 Provident Companies Inc., 7.0%, 7/15/18 (c) 2,714,072
------------
$ 4,219,697
------------
Multi-Line Insurance - 1.3%
1,700,000 BB/Ba3 Allmerica Financial Corp., 7.625%, 10/15/25 $ 1,598,000
1,950,000 A/Baa1 Loew Corp., 5.25%, 3/15/16 1,817,306
------------
$ 3,415,306
------------
Property & Casualty Insurance - 1.2%
1,325,000 BBB-/Baa3 Arch Capital Group Ltd., 7.35%, 5/1/34 $ 1,333,770
2,010,000 BBB-/NR Kingsway America Inc., 7.5%, 2/1/14 1,975,426
------------
$ 3,309,196
------------
Reinsurance - 1.0%
2,400,000 BBB-/Baa3 Odyssey Re Holdings, 7.65%, 11/1/13 $ 2,579,921
------------
Total Insurance $ 13,524,120
------------
Real Estate - 3.0%
Real Estate Management & Development - 0.8%
2,200,000 BB-/Ba3 Forest City Enterprises, 7.625%, 6/1/15 $ 2,211,000
------------
Real Estate Investment Trusts - 2.2%
1,100,000 BBB-/Baa3 Colonial Reality LP, 6.15%, 4/15/13 $ 1,117,629
935,000 BBB-/Baa3 Health Care REIT, Inc., 8.0%, 9/12/12 1,050,033
1,450,000 BBB-/Baa3 Hospitality Properties Trust, 6.75%, 2/15/13 1,505,357
750,000 BBB/Baa2 Mack-Cali Realty Corp., 4.6%, 6/15/13 694,995
1,250,000 CCC+/B2 Meristar Hospitality Corp., 9.125%, 1/15/11 1,262,500
------------
$ 5,630,514
------------
Total Real Estate $ 7,841,514
------------
The accompanying notes are an integral part of these financial statements. 15
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/04 (continued)
- --------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Technology Hardware & Equipment - 3.9%
Communications Equipment - 0.8%
$2,320,000 BB+/Ba2 Corning Inc., 5.9%, 3/15/14 $ 2,169,200
------------
Computer Hardware - 0.8%
2,000,000 BBB-/Baa3 NCR Corp., 7.125%, 6/15/09 $ 2,187,632
------------
Electronic Manufacturing Services - 1.2%
3,000,000 BB+/Baa3 Jabil Circuit, Inc., 5.875%, 7/15/10 $ 3,098,988
------------
Technology Distributors - 1.1%
2,600,000 BBB-/Baa3 Arrow Electronic Inc., 6.875%, 7/1/13 $ 2,715,859
------------
Total Technology Hardware & Equipment $ 10,171,679
------------
Telecommunication Services - 2.5%
Integrated Telecom Services - 1.6%
2,600,000 BBB+/Baa3 Intelsat Ltd. 6.5%, 11/1/13 $ 2,296,923
2,000,000 BBB+/Baa2 Telecom Italia S.p.A., 5.25%, 11/15/13 (144A) 1,935,692
------------
$ 4,232,615
------------
Wireless Telecommunication Services - 0.9%
2,000,000 BBB/Baa2 AT&T Wireless, 8.125%, 5/1/12 $ 2,312,302
------------
Total Telecommunication Services $ 6,544,917
------------
Utilities - 2.8%
Electric Utilities - 1.0%
1,871,500 BBB-/Baa3 FLP Energy American Wind, 6.639%,
6/20/23 (144A) $ 1,910,876
614,900 BB-/Ba2 FPL Energy Wind Funding, 6.876%,
6/27/17 (144A) 602,602
------------
$ 2,513,478
------------
Multi-Utilities & Unregulated Power - 1.8%
3,045,000 B/B1 Illinova Corp., 7.5%, 6/15/09 $ 3,326,663
750,000 B/B1 Reliant Energy, Inc., 9.5%, 7/15/13 808,125
500,000 B/B1 Reliant Resources Inc., 9.25%, 7/15/10 533,750
------------
$ 4,668,538
------------
Total Utilities $ 7,182,016
------------
TOTAL CORPORATE BONDS
(Cost $118,624,009) $121,858,578
------------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 44.1 %
$2,365,426 Federal Home Loan Mortgage Corp., 5.5%, 12/1/18 $ 2,431,431
764,656 Federal Home Loan Mortgage Corp., 6.0%, 1/1/33 781,955
1,245,612 Federal Home Loan Mortgage Corp., 6.0%, 2/1/33 1,276,127
1,000,753 Federal Home Loan Mortgage Corp., 6.0%, 3/1/33 1,023,967
166,847 Federal Home Loan Mortgage Corp., 6.0%, 3/1/33 170,622
3,275,642 Federal Home Loan Mortgage Corp., 6.0%, 3/1/33 3,351,624
2,628,927 Federal Home Loan Mortgage Corp., 6.0%, 9/1/33 2,688,402
1,712,918 Federal Home Loan Mortgage Corp., 6.0%, 12/1/33 1,751,669
389,705 Federal Home Loan Mortgage Corp., 6.0%, 12/1/33 399,674
516,835 Federal Home Loan Mortgage Corp., 6.0%, 12/1/33 528,527
456,605 Federal Home Loan Mortgage Corp., 6.0%, 1/1/34 466,935
7,154,486 Federal Home Loan Mortgage Corp., 6.0%, 5/1/34 7,316,184
1,345,516 Federal Home Loan Mortgage Corp., 6.0%, 5/1/34 1,375,926
37,214 Federal Home Loan Mortgage Corp., 6.5%, 4/1/31 38,809
255,520 Federal Home Loan Mortgage Corp., 6.5%, 7/1/32 266,513
785,530 Federal Home Loan Mortgage Corp., 6.5%, 7/1/33 822,489
1,298,200 Federal Home Loan Mortgage Corp., 6.5%, 10/1/33 1,358,957
1,331,995 Federal Home Loan Mortgage Corp., 6.5%, 10/1/33 1,395,991
10,215 Federal Home Loan Mortgage Corp., 7.0%, 12/1/30 10,811
24,201 Federal Home Loan Mortgage Corp., 7.0%, 6/1/31 25,592
8,786 Federal Home Loan Mortgage Corp., 7.5%, 7/1/30 9,466
43,729 Federal Home Loan Mortgage Corp.,
REMIC 1145G, 8.0%, 9/15/06 43,896
8,240 Federal Home Loan Mortgage Corp., 10.5%, 4/1/19 9,249
1,823,158 Federal National Mortgage Association,
5.5%, 12/1/18 1,869,240
750,799 Federal National Mortgage Association, 6.0%, 6/1/16 783,431
149,398 Federal National Mortgage Association, 6.0%, 2/1/32 153,183
1,465,648 Federal National Mortgage Association,
6.0%, 10/1/32 1,498,914
324,687 Federal National Mortgage Association,
6.0%, 11/1/32 332,056
1,647,026 Federal National Mortgage Association, 6.0%, 2/1/33 1,684,409
3,539,477 Federal National Mortgage Association, 6.0%, 4/1/33 3,617,657
4,307,677 Federal National Mortgage Association, 6.0%, 7/1/33 4,402,824
2,399,033 Federal National Mortgage Association, 6.0%, 4/1/34 2,452,141
232,595 Federal National Mortgage Association, 6.5%, 5/1/31 242,563
The accompanying notes are an integral part of these financial statements. 17
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/04 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 422,811 Federal National Mortgage Association, 6.5%, 6/1/31 $ 440,927
173,232 Federal National Mortgage Association, 6.5%, 8/1/31 180,656
213,367 Federal National Mortgage Association, 6.5%, 9/1/31 222,511
179,604 Federal National Mortgage Association,
6.5%, 10/1/31 187,301
140,475 Federal National Mortgage Association,
6.5%, 10/1/31 146,495
172,379 Federal National Mortgage Association, 6.5%, 2/1/32 179,767
251,883 Federal National Mortgage Association, 6.5%, 2/1/32 262,459
496,830 Federal National Mortgage Association, 6.5%, 3/1/32 517,691
567,931 Federal National Mortgage Association,
6.5%, 10/1/32 591,778
172,223 Federal National Mortgage Association,
REMIC Series 1995-23D, 7.0%, 10/25/07 179,579
101,446 Federal National Mortgage Association, 7.0%, 7/1/22 107,480
19,486 Federal National Mortgage Association,
7.0%, 12/1/30 20,623
59,796 Federal National Mortgage Association,
7.0%, 12/1/30 63,284
167,658 Federal National Mortgage Association, 7.0%, 4/1/31 177,438
269,490 Federal National Mortgage Association, 7.0%, 8/1/31 284,984
268,376 Federal National Mortgage Association, 7.0%, 9/1/31 283,806
262,196 Federal National Mortgage Association,
7.0%, 12/1/31 277,271
332,253 Federal National Mortgage Association, 7.0%, 1/1/32 351,355
19,659 Federal National Mortgage Association, 7.5%, 8/1/20 21,093
6,354 Federal National Mortgage Association, 7.5%, 4/1/30 6,812
893 Federal National Mortgage Association,
10.0%, 7/1/19 937
31,635 Federal National Mortgage Association,
REMIC Series 1989-19A, 10.3%, 4/25/19 34,792
7,751 Federal National Mortgage Association,
REMIC Series 1989-19B, 10.3%, 4/25/19 9,483
53,777 Federal National Mortgage Association,
11.0%, 6/1/19 60,831
2,291,178 Government National Mortgage Association,
4.5%, 8/15/33 2,156,152
18 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$1,462,744 Government National Mortgage Association,
4.5%, 9/15/33 $ 1,376,541
1,623,747 Government National Mortgage Association,
4.5%, 10/15/33 1,528,055
1,142,702 Government National Mortgage Association,
5.0%, 9/15/33 1,110,305
2,483,930 Government National Mortgage Association,
5.5%, 4/20/34 2,481,861
1,071,648 Government National Mortgage Association,
6.0%, 5/15/17 1,121,919
34,219 Government National Mortgage Association,
6.0%, 3/15/32 35,137
798,607 Government National Mortgage Association,
6.0%, 9/15/32 820,026
59,574 Government National Mortgage Association,
6.0%, 9/15/32 61,171
601,827 Government National Mortgage Association,
6.0%, 10/15/32 617,968
384,128 Government National Mortgage Association,
6.0%, 11/15/32 394,430
743,741 Government National Mortgage Association,
6.0%, 1/15/33 763,439
2,049,650 Government National Mortgage Association,
6.0%, 1/15/33 2,104,771
646,233 Government National Mortgage Association,
6.0%, 2/15/33 663,349
1,427,313 Government National Mortgage Association,
6.0%, 3/15/33 1,465,117
968,673 Government National Mortgage Association,
6.0%, 3/15/33 994,329
1,367,946 Government National Mortgage Association,
6.0%, 3/15/33 1,404,177
2,304,662 Government National Mortgage Association,
6.0%, 3/15/33 2,365,703
1,753,068 Government National Mortgage Association,
6.0%, 3/15/33 1,800,264
The accompanying notes are an integral part of these financial statements. 19
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/04 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$2,218,529 Government National Mortgage Association,
6.0%, 3/15/33 $ 2,278,382
1,291,062 Government National Mortgage Association,
6.0%, 4/15/33 1,325,257
2,431,597 Government National Mortgage Association,
6.0%, 5/15/33 2,496,001
253,591 Government National Mortgage Association,
6.0%, 6/18/33 260,308
937,412 Government National Mortgage Association,
6.0%, 7/15/33 910,836
1,423,707 Government National Mortgage Association,
6.0%, 10/15/33 1,461,415
90,931 Government National Mortgage Association,
6.5%, 2/15/29 95,191
948,280 Government National Mortgage Association,
6.5%, 3/15/29 992,709
173,387 Government National Mortgage Association,
6.5%, 3/15/29 181,510
1,067,822 Government National Mortgage Association,
6.5%, 5/15/29 1,118,493
199,339 Government National Mortgage Association,
6.5%, 3/15/31 208,575
433,854 Government National Mortgage Association,
6.5%, 5/15/31 453,955
70,516 Government National Mortgage Association,
6.5%,6/15/31 73,783
529,132 Government National Mortgage Association,
6.5%, 10/15/31 553,646
716,007 Government National Mortgage Association,
6.5%, 2/15/32 749,018
194,039 Government National Mortgage Association,
6.5%, 5/15/32 202,986
601,983 Government National Mortgage Association,
6.5%, 8/15/32 629,738
637,052 Government National Mortgage Association,
6.5%, 9/15/32 666,423
20 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 26,559 Government National Mortgage Association,
6.5%, 10/15/33 $ 27,800
400,000 Government National Mortgage Association,
6.5%, 1/15/34 418,450
973,541 Government National Mortgage Association,
6.5%, 1/15/34 1,018,445
59,083 Government National Mortgage Association,
7.0%, 12/15/13 62,994
598,987 Government National Mortgage Association,
7.0%, 11/15/28 637,702
261,544 Government National Mortgage Association,
7.0%, 11/15/28 278,449
258,469 Government National Mortgage Association,
7.0%, 4/15/29 274,882
105,487 Government National Mortgage Association,
7.0%, 2/15/30 112,191
55,035 Government National Mortgage Association,
7.0%, 12/15/30 58,533
103,044 Government National Mortgage Association,
7.0%, 3/15/31 109,532
87,695 Government National Mortgage Association,
7.0%, 4/15/31 93,217
241,850 Government National Mortgage Association,
7.0%, 6/15/31 257,076
494,345 Government National Mortgage Association,
7.0%, 6/15/31 525,763
42,743 Government National Mortgage Association,
7.5%, 2/15/26 46,174
158,860 Government National Mortgage Association,
7.5%, 5/15/27 171,519
116,392 Government National Mortgage Association,
7.5%, 8/15/29 125,635
42,490 Government National Mortgage Association,
7.5%, 10/15/29 45,864
38,357 Government National Mortgage Association,
7.5%, 2/15/31 41,340
The accompanying notes are an integral part of these financial statements. 21
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/04 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 1,287,099 Government National Mortgage Association,
7.5%, 12/15/31 $ 1,387,201
25,858 Government National Mortgage Association,
7.75%, 2/15/30 28,167
7,093 Government National Mortgage Association,
9.5%, 5/15/20 8,016
15,705 Government National Mortgage Association,
10.0%, 1/15/06 16,665
7,238 Government National Mortgage Association,
10.0%, 1/15/18 8,087
7,827 Government National Mortgage Association,
10.0%, 1/15/18 8,745
41,293 Government National Mortgage Association,
10.0%, 7/15/20 46,203
802,539 Government National Mortgage Association I,
6.0%, 2/15/29 823,623
96,254 Government National Mortgage Association I,
7.0%, 12/15/30 102,371
488,390 Government National Mortgage Association II,
5.5%, 2/20/34 487,983
2,952,125 Government National Mortgage Association II,
5.5%, 3/20/34 2,949,665
12,566,930 Government National Mortgage Association II,
6.0%, 11/20/33 12,884,069
28,694 Government National Mortgage Association II,
6.5%, 2/20/29 29,966
14,200 Government National Mortgage Association II,
6.5%, 3/20/29 14,830
534,048 Government National Mortgage Association II,
7.0%, 1/20/29 566,781
38,801 Government National Mortgage Association II,
7.0%, 12/20/30 41,219
1,000,000 U.S. Treasury Bonds, 8.0%, 11/15/21 1,310,703
2,310,000 US Treasury Notes, 5.375%, 2/15/31 2,329,762
------------
TOTAL U.S. GOVERNMENT AND AGENGY OBLIGATIONS
(Cost $114,885,536) $114,463,149
------------
22 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
MUNICIPAL BONDS - 0.2%
Government - 0.2%
$ 555,000 Tobacco Settlement Authority Iowa, 6.79%, 6/1/10 $ 551,981
------------
TOTAL MUNICIPAL BONDS
(Cost $555,000) $ 551,981
------------
TEMPORARY CASH INVESTMENTS - 6.5%
Repurchase Agreement - 4.0%
10,500,000 UBS Warburg, 1.25%, dated 6/30/04, repurchase
price of $10,500,000 plus accrued interest on 7/1/04,
collaterized by $10,657,000 U.S. Treasury Note,
2.125%, 10/31/04 $ 10,500,000
------------
Securities Lending Collateral - 2.5%
6,457,325 Securities Lending Investment Fund, 1.29% $ 6,457,325
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $16,957,325) $ 16,957,325
------------
TOTAL INVESTMENT IN SECURITIES - 101.0%
(Cost $259,425,607) (a) (b) $262,268,679
------------
OTHER ASSETS AND LIABILITIES - (1.0)% $ (2,565,718)
------------
TOTAL NET ASSETS - 100.0% $259,702,961
============
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At June
30, 2004 the value of these securities amounted to $16,502,103 or 6.35%
of total net assets.
(a) At June 30, 2004, the net unrealized gain on investment, based on cost
for federal income tax purposes of $259,441,834 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 5,662,245
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (2,835,400)
------------
Net unrealized gain $ 2,826,845
============
The accompanying notes are an integral part of these financial statements. 23
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/04 (continued)
- --------------------------------------------------------------------------------
(b) At June 30, 2004 the Fund had a net capital loss carryforward of
$6,403,162 of which the following amounts will expire between 2008
and 2011, if not utilized.
$142,925 in 2008
$5,098,328 in 2009
$77,493 in 2010
$1,084,416 in 2011
Purchases and sales of securities (excluding temporary cash investments) for
the year ended June 30, 2004, were as follows:
Purchases Sales
------------ ------------
Long-term US Government $115,109,915 $104,587,069
Other Long-term Securities $ 54,776,931 $105,387,716
(c) At June 30, 2004, the following securities were out on loan:
Market
Principal Description Value
- ------------- ------------- ----------
$ 950,000 Huntsman ICI Chemicals, 10.125%, 7/1/09 $ 969,000
862,500 JLG Industries Inc., 8.375%, 6/15/12 877,594
2,707,500 Provident Companies Inc., 7.0%, 7/15/18 2,578,368
1,730,000 Toys R Us, 7.875%, 4/15/13 1,736,488
----------
Total $6,161,450
==========
24 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 6/30/04
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (including securities loaned of
$6,161,450) (cost $259,425,607) $262,268,679
Cash 51,241
Receivables -
Investment securities sold 1,895,151
Fund shares sold 172,915
Interest 2,718,653
Other 781
------------
Total assets $267,107,420
------------
LIABILITIES:
Payables -
Investment securities purchased $ 50,927
Fund shares repurchased 253,435
Dividends 229,477
Upon return of securities loaned 6,457,325
Due to affiliates 334,876
Accrued expenses 78,419
------------
Total liabilities $ 7,404,459
------------
NET ASSETS:
Paid-in capital $262,627,535
Accumulated net investment income 651,743
Accumulated net realized loss on investments (6,419,389)
Net unrealized gain on investments 2,843,072
------------
Total net assets $259,702,961
============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $160,421,189/17,476,461 shares) $ 9.18
============
Class B (based on $57,774,340/6,318,703 shares) $ 9.14
============
Class C (based on $27,544,960/3,022,625 shares) $ 9.11
============
Class R (based on $345,169/37,209 shares) $ 9.28
============
Class Y (based on $13,617,303/1,492,632 shares) $ 9.12
============
MAXIMUM OFFERING PRICE:
Class A ($9.18 [divided by] 95.5%) $ 9.61
============
Class C ($9.11 [divided by] 99.00%) $ 9.20
============
The accompanying notes are an integral part of these financial statements. 25
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 6/30/04
INVESTMENT INCOME:
Interest $15,119,822
Income from securities loaned, net 8,723
-----------
Total investment income $ 15,128,545
------------
EXPENSES:
Management fees $ 1,362,316
Transfer agent fees
Class A 503,146
Class B 253,629
Class C 110,454
Class R 368
Class Y 117
Distribution fees
Class A 419,587
Class B 654,765
Class C 288,922
Class R 685
Administrative fees 50,977
Custodian fees 24,277
Registration fees 115,088
Professional fees 53,046
Printing 32,000
Fees and expenses of nonaffiliated trustees 1,227
Miscellaneous 10,272
-----------
Total expenses $ 3,880,876
Less fees paid indirectly (6,036)
Revision of estimate for printing expenses (47,054)
------------
Net expenses $ 3,827,786
------------
Net investment income $ 11,300,759
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments $ 10,312,487
Change in net unrealized gain on investments (15,238,151)
------------
Net loss on investments $ (4,925,664)
------------
Net increase in net assets resulting from operations $ 6,375,095
============
26 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 6/30/04 and 6/30/03
Year Ended Year Ended
6/30/04 6/30/03
FROM OPERATIONS:
Net investment income $ 11,300,759 $ 12,643,236
Net realized gain on investments 10,312,487 968,973
Change in net unrealized gain on investments (15,238,151) 14,687,945
------------- -------------
Net increase in net assets resulting from
operations $ 6,375,095 $ 28,300,154
------------- -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.50 and $0.46 per share, respectively) $ (9,078,180) $ (8,363,505)
Class B ($0.42 and $0.40 per share, respectively) (2,946,305) (3,314,500)
Class C ($0.39 and $0.40 per share, respectively) (1,231,371) (1,123,049)
Class R ($0.52 and $0.11 per share, respectively) (6,993) (6)
Class Y ($0.55 and $0.54 per share, respectively) (599,222) (321,408)
------------- -------------
Total distributions to shareowners $ (13,862,071) $ (13,122,468)
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 95,479,727 $ 222,515,591
Reinvestment of distributions 10,582,523 10,050,710
Cost of shares repurchased (137,073,994) (175,102,198)
------------- -------------
Net increase (decrease) in net assets resulting
from fund share transactions $ (31,011,744) $ 57,464,103
------------- -------------
Net increase (decrease) in net assets $ (38,498,720) $ 72,641,789
NET ASSETS:
Beginning of year 298,201,681 225,559,892
------------- -------------
End of year (including accumulated undistributed
net investment income of $651,743, and
$1,095,418, respectively) $ 259,702,961 $ 298,201,681
============= =============
The accompanying notes are an integral part of these financial statements. 27
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
For the Years Ended 6/30/04 and 6/30/03
'04 Shares '04 Amount '03 Shares '03 Amount
CLASS A
Shares sold 5,787,118 $ 53,766,418 16,128,548 $ 146,153,233
Reinvestment of distributions 800,528 7,432,884 745,978 6,774,637
Less shares repurchased (8,595,535) (79,398,415) (13,550,753) (122,723,856)
---------- ------------ ----------- -------------
Net increase (decrease) (2,007,889) $(18,199,113) 3,323,773 $ 30,204,014
---------- ------------ ----------- -------------
CLASS B
Shares sold 2,231,993 $ 20,804,787 5,042,987 $ 45,156,069
Reinvestment of distributions 226,473 2,094,447 258,682 2,338,271
Less shares repurchased (4,398,519) (40,683,805) (3,777,499) (33,938,002)
---------- ------------ ----------- -------------
Net increase (decrease) (1,940,053) $(17,784,571) 1,524,170 $ 13,556,338
---------- ------------ ----------- -------------
CLASS C
Shares sold 1,382,221 $ 12,730,696 2,962,634 $ 26,458,900
Reinvestment of distributions 95,400 878,128 84,239 758,804
Less shares repurchased (1,652,312) (15,161,984) (1,894,835) (16,868,680)
---------- ------------ ----------- -------------
Net increase (decrease) (174,691) $ (1,553,160) 1,152,038 $ 10,349,024
---------- ------------ ----------- -------------
CLASS R (a)
Shares sold 42,046 $ 399,828 54 $ 501
Reinvestment of distributions 187 1,754 - -
Less shares repurchased (5,079) (47,919) - -
---------- ------------ ----------- -------------
Net increase 37,154 $ 353,663 54 $ 501
---------- ------------ ----------- -------------
CLASS Y
Shares sold 841,637 $ 7,777,998 525,218 $ 4,746,888
Reinvestment of distributions 19,012 175,310 19,809 178,998
Less shares repurchased (193,348) (1,781,871) (176,436) (1,571,660)
---------- ------------ ----------- -------------
Net increase 667,301 $ 6,171,437 368,591 $ 3,354,226
---------- ------------ ----------- -------------
(a) Class R shares were first publicly offered on April 1, 2003.
28 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/04 6/30/03 6/30/02(a) 6/30/01 6/30/00
CLASS A
Net asset value, beginning of period $ 9.41 $ 8.89 $ 8.78 $ 8.47 $ 8.94
------- -------- -------- ------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.41 $ 0.45 $ 0.52 $ 0.57 $ 0.58
Net realized and unrealized gain (loss) on investments (0.14) 0.53 0.13 0.31 (0.47)
------- -------- -------- ------- --------
Net increase from investment operations $ 0.27 $ 0.98 $ 0.65 $ 0.88 $ 0.11
Distributions to shareowners:
Net investment income (0.50) (0.46) (0.54) (0.57) (0.58)
------- -------- -------- ------- --------
Net increase (decrease) in net asset value $ (0.23) $ 0.52 $ 0.11 $ 0.31 $ (0.47)
------- -------- -------- ------- --------
Net asset value, end of period $ 9.18 $ 9.41 $ 8.89 $ 8.78 $ 8.47
======= ======== ======== ======= ========
Total return* 2.98% 11.38% 7.58% 10.70% 1.30%
Ratio of net expenses to average net assets+ 1.14%(b) 1.20% 1.16% 1.21% 1.18%
Ratio of net investment income to average net assets+ 4.42%(b) 5.02% 5.79% 6.53% 6.68%
Portfolio turnover rate 63% 48% 59% 43% 60%
Net assets, end of period (in thousands) $160,421 $183,338 $143,713 $98,004 $102,349
Ratios with reductions for fees paid indirectly:
Net expenses 1.14%(b) 1.20% 1.16% 1.18% 1.15%
Net investment income 4.42%(b) 5.02% 5.79% 6.56% 6.71%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratio with no reduction for fees paid indirectly.
(a) As a result of a change in accounting principle, the effect due to mandatory
accretion of discounts and amortization of premiums on debt securities
resulted in a reduction of net investment income of $0.02 per share, an
increase in net realized and unrealized gain (loss) on investments of $0.02
per share, and the ratio of net investment income to average net assets
decreased by 0.18%.
(b) Ratios include the revision of estimate for printing expenses.
The accompanying notes are an integral part of these financial statements. 29
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/04 6/30/03 6/30/02(a) 6/30/01 6/30/00
CLASS B
Net asset value, beginning of period $ 9.37 $ 8.87 $ 8.77 $ 8.44 $ 8.91
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.33 $ 0.37 $ 0.44 $ 0.50 $ 0.50
Net realized and unrealized gain (loss) on investments (0.14) 0.53 0.14 0.30 (0.46)
------- ------- ------- ------- -------
Net increase from investment operations $ 0.19 $ 0.90 $ 0.58 $ 0.80 $ 0.04
Distributions to shareowners:
Net investment income (0.42) (0.40) (0.48) (0.47) (0.51)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.23) $ 0.50 $ 0.10 $ 0.33 $ (0.47)
------- ------- ------- ------- -------
Net asset value, end of period $ 9.14 $ 9.37 $ 8.87 $ 8.77 $ 8.44
======= ======= ======= ======= =======
Total return* 2.04% 10.44% 6.78% 9.71% 0.48%
Ratio of net expenses to average net assets+ 1.98%(b) 2.02% 1.95% 2.05% 2.05%
Ratio of net investment income to average net assets+ 3.55%(b) 4.22% 5.02% 5.72% 5.81%
Portfolio turnover rate 63% 48% 59% 43% 60%
Net assets, end of period (in thousands) $57,774 $77,367 $59,729 $38,231 $37,269
Ratios with reduction for fees paid indirectly:
Net expenses 1.98%(b) 2.02% 1.95% 2.04% 2.03%
Net investment income 3.55%(b) 4.22% 5.02% 5.73% 5.83%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratio with no reduction for fees paid indirectly.
(a) As a result of a change in accounting principle, the effect due to mandatory
accretion of discounts and amortization of premiums on debt securities
resulted in a reduction of net investment income of $0.02 per share, an
increase in net realized and unrealized gain (loss) on investments of $0.02
per share, and the ratio of net investment income to average net assets
decreased by 0.18%.
(b) Ratios include the revision of estimate for printing expenses.
30 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/04 6/30/03 6/30/02(a) 6/30/01 6/30/00
CLASS C
Net asset value, beginning of period $ 9.31 $ 8.83 $ 8.73 $ 8.46 $ 8.89
------- ------- ------- ------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.33 $ 0.37 $ 0.44 $ 0.48 $ 0.48
Net realized and unrealized gain (loss) on investments (0.14) 0.51 0.12 0.30 (0.45)
------- ------- ------- ------ ------
Net increase from investment operations $ 0.19 $ 0.88 $ 0.56 $ 0.78 $ 0.03
Distributions to shareowners:
Net investment income (0.39) (0.40) (0.46) (0.51) (0.46)
------- ------- ------- ------ ------
Net increase (decrease) in net asset value $ (0.20) $ 0.48 $ 0.10 $ 0.27 $(0.43)
------- ------- ------- ------ ------
Net asset value, end of period $ 9.11 $ 9.31 $ 8.83 $ 8.73 $ 8.46
======= ======= ======= ====== ======
Total return* 2.11% 10.28% 6.55% 9.46% 0.36%
Ratio of net expenses to average net assets+ 1.97%(b) 2.16% 2.14% 2.18% 2.32%
Ratio of net investment income to average net assets+ 3.59%(b) 4.05% 4.78% 5.56% 5.53%
Portfolio turnover rate 63% 48% 59% 43% 60%
Net assets, end of period (in thousands) $27,545 $29,777 $18,067 $7,377 $6,264
Ratios with reduction for fees paid indirectly:
Net expenses 1.97%(b) 2.16% 2.15% 2.15% 2.30%
Net investment income 3.59%(b) 4.05% 4.77% 5.59% 5.55%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratio with no reduction for fees paid indirectly.
(a) As a result of a change in accounting principle, the effect due to mandatory
accretion of discounts and amortization of premiums on debt securities
resulted in a reduction of net investment income of $0.02 per share, an
increase in net realized and unrealized gain (loss) on investments of $0.02
per share, and the ratio of net investment income to average net assets
decreased by 0.18%.
(b) Ratios include the revision of estimate for printing expenses.
The accompanying notes are an integral part of these financial statements. 31
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
4/1/03 (a)
Year Ended to
6/30/04 6/30/03
CLASS R
Net asset value, beginning of period $ 9.50 $ 9.19
------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.47 $ 0.10
Net realized and unrealized gain (loss) on investments (0.17) 0.32
------ ------
Net increase from investment operations $ 0.30 $ 0.42
Distributions to shareowners:
Net investment income (0.52) (0.11)
------ ------
Net increase (decrease) in net asset value $(0.22) $ 0.31
------ ------
Net asset value, end of period $ 9.28 $ 9.50
====== ======
Total return* 3.20% 4.55%
Ratio of net expenses to average net assets+ 1.32%(b) 1.42%**
Ratio of net investment income to average net assets+ 4.71%(b) 4.13%**
Portfolio turnover rate 63% 48%
Net assets, end of period (in thousands) $ 345 $ 1
Ratios with reduction for fees paid indirectly:
Net expenses 1.32%(b) 1.42%**
Net investment income 4.71%(b) 4.13%**
(a) Class R shares were first publicly offered on April 1, 2003.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at each end of each period, and no sales
charges. Total return would be reduced if sale charges were taken into
account.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
(b) Ratios include the revision of estimate for printing expenses.
32 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
9/20/01(a)
Year Ended Year Ended to
6/30/04 6/30/03 6/30/02(b)
CLASS Y
Net asset value, beginning of period $ 9.35 $ 8.87 $ 8.85
------- ------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.46 $ 0.51 $ 0.43
Net realized and unrealized gain (loss)
on investments (0.14) 0.51 0.04
------- ------ ------
Net increase from investment operations $ 0.32 $ 1.02 $ 0.47
Distributions to shareowners:
Net investment income (0.55) (0.54) (0.45)
------- ------ ------
Net increase (decrease) in net asset value $ (0.23) $ 0.48 $ 0.02
------- ------ ------
Net asset value, end of period $ 9.12 $ 9.35 $ 8.87
======= ====== ======
Total return* 3.48% 11.86% 5.48%
Ratio of net expenses to average net assets+ 0.58%(c) 0.67% 0.64%**
Ratio of net investment income to average
net assets+ 5.05%(c) 5.54% 6.28%**
Portfolio turnover rate 63% 48% 59%
Net assets, end of period (in thousands) $13,617 $7,719 $4,051
Ratios with reduction for fees paid indirectly:
Net expenses 0.58%(c) 0.67% 0.64%**
Net investment income 5.05%(c) 5.54% 6.28%**
(a) Class Y shares were first publicly offered on September 20, 2001.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at each end of each period.
** Annualized
+ Ratio with no reduction for fees paid indirectly.
(b) As a result of a change in accounting principle, the effect due to mandatory
accretion of discounts and amortization of premiums on debt securities
resulted in a reduction of net investment income of $0.02 per share, an
increase in net realized and unrealized gain (loss) on investments of $0.02
per share, and the ratio of net investment income to average net assets
decreased by 0.23%.
(c) Ratios include the revision of estimate for printing expenses.
The accompanying notes are an integral part of these financial statements. 33
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/04
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Bond Fund (the Fund) is a Delaware statutory trust registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The investment objective of the Fund is to seek current income
consistent with preservation of capital. The Fund offers five classes of shares
- - Class A, Class B, Class C, Class R, and Class Y shares. Class R shares were
first publicly offered April 1, 2003. Each class of shares represents an
interest in the same portfolio of investments of the Fund and has equal rights
to voting, redemptions, dividends and liquidation, except that each class of
shares can bear different transfer agent and distributions fees and has
exclusive voting rights with respect to the distribution plans that have been
adopted by Class A, Class B, Class C, and Class R shareowners, respectively.
There is no distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates. The following is a
summary of significant accounting policies consistently followed by the Fund,
which are in conformity with those generally accepted in the investment company
industry:
A. Security Valuation
Security transactions are recorded as of trade date. Securities are valued
at prices supplied by independent pricing services, which consider such
factors as Treasury spreads, yields, maturities and ratings. Valuations may
be supplemented by dealers and other sources, as required. Securities for
which there are no other readily available valuation methods are valued at
their fair values as determined by, or under the direction of, the Board of
Trustees. At June 30, 2004 there were no securities fair valued. Principal
amounts of mortgage-backed securities are adjusted for monthly paydowns. All
discounts/premiums on debt securities are
34
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
accreted/amortized for financial reporting purposes over the life of the
respective securities, and are included in interest income. Premiums and
discounts related to certain mortgage-backed securities are amortized or
accreted in proportion to the underlying monthly paydowns. Interest income
is recorded on the accrual basis. Temporary cash investments are valued at
amortized cost. Gains and losses on sales of investments are calculated on
the identified cost method for both financial reporting and federal income
tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
The amount and characterization of distributions to shareowners for
financial reporting purposes is determined in accordance with federal income
tax rules. Therefore, the source of the Fund's distributions may be shown in
the accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in-capital, depending on the type of book/tax differences that may
exist.
The tax character of distributions paid during the years ended June 30, 2004
and 2003 were as follows:
- -----------------------------------------------------------------------------
2004 2003
- -----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $13,862,071 $13,122,468
Long-term capital gain - -
----------- -----------
Total $13,862,071 $13,122,468
- -----------------------------------------------------------------------------
35
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/04 (continued)
- --------------------------------------------------------------------------------
The following shows the components of accumulated losses on a federal income
tax basis at June 30, 2004.
- -----------------------------------------------------------------------------
2004
- -----------------------------------------------------------------------------
Undistributed ordinary income $ 881,220
Dividend payable (229,477)
Capital loss carryforward (6,403,162)
Unrealized appreciation 2,826,845
-----------
Total $(2,924,574)
- -----------------------------------------------------------------------------
The difference between book basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales and the tax
treatment of amortization.
At June 30, 2004, the Fund has reclassified $2,117,637 to increase
accumulated net investment income and $2,117,637 to increase accumulated net
realized loss on investments to reflect permanent book/tax differences. The
reclassification has no impact on the net assets of the Fund and is designed
to present the Fund's capital accounts on a tax basis.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.,
(UniCredito Italiano), earned $49,471 in underwriting commissions on the
sale of Fund shares for the year ended June 30, 2004.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, Class C and Class R shares of the Fund,
respectively. Class Y shares are not subject to a distribution plan.
Shareowners of each class share all expenses and fees paid to the transfer
agent, Pioneer Investment Management Shareholder Services, Inc. (PIMSS), for
its services, which are allocated based on the number of accounts in each
class and the ratable allocation of related out-of-pocket expenses (see Note
3). Income, common expenses, and realized and unrealized gains
36
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
and losses are calculated at the Fund level and allocated daily to each
class of shares based on the respective percentage of adjusted net assets at
the beginning of the day.
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, at the same time, and in the same amount,
except that Class A, Class B, Class C, Class R and Class Y shares can bear
different transfer agent and distribution fees.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest received
from the counterparties, is required to be at least equal to or in excess of
the value of the repurchase agreement at the time of purchase. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian, or subcustodians. The Fund's
investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
F. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
dividends on the securities loaned. Gain or loss on the fair value of the
loaned securities that may occur during the term of the loan will be for the
account of the Fund. The loans are secured by collateral of at least 102% at
all times, of the fair value of the securities loaned. The amount of the
collateral will be adjusted daily to reflect any price fluctuation in the
value of loaned securities. The Fund has the right under the lending
agreements to recover the securities on loan from the borrower on demand.
The
37
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/04 (continued)
- --------------------------------------------------------------------------------
Fund invests cash collateral in the Securities Lending Investment Fund,
which is managed by Brown Brothers Harriman & Co., the Fund's custodian.
2. Management Agreement
PIM manages the Fund's portfolio, and is a wholly owned indirect subsidiary of
UniCredito Italiano. Management fees are calculated daily at the annual rate of
0.50% of the Fund's average daily net assets. 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.
At June 30, 2004, $124,266 was payable to PIM related to management fees,
administrative fees and certain other services, and is included in due to
affiliates.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in due to affiliates is $94,484 in transfer agent
fees payable to PIMSS at June 30, 2004.
4. Distribution and Service Plans
The Fund adopted a Plan of Distribution with respect to each class of shares
(Class A Plan, Class B Plan, Class C Plan and Class R Plan) in accordance with
Rule 12b-1 of the Investment Company Act of 1940. Pursuant to the Class A Plan,
the Fund pays PFD a service fee of up to 0.25% of the average daily net assets
attributable to Class A shares in reimbursement of its actual expenditures to
finance activities primarily intended to result in the sale of Class A shares.
Pursuant to the Class B Plan and the Class C Plan, the Fund pays PFD 1.00% of
the average daily net assets attributable to each class of shares. The fee
consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class B and Class C shares. Pursuant to the
Class R Plan, the Fund pays PFD 0.50% of the average daily net assets
attributable to Class R shares for distribution services. Included in due to
affiliates is $116,126 in distribution fees payable to PFD at June 30, 2004. The
Fund also has adopted a separate service plan for Class R shares (Service Plan).
The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations that agree to provide
38
Pioneer Bond Fund
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- --------------------------------------------------------------------------------
certain services to retirement plans or plan participants holding shares of the
Fund a service fee of up to 0.25% of the Fund's average daily net assets
attributable to Class R shares held by such plans.
In addition, redemptions of Class A, Class B, Class C and Class R 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 one year of purchase. Class B shares that are redeemed within six years
of purchase are subject to a CDSC at declining rates beginning at 4.00%, based
on the lower of cost or market value of shares being redeemed. Redemptions of
Class C shares within one year of purchase are subject to a CDSC of 1.00%.
Redemptions of Class R shares within 18 months of purchase may be subject to a
CDSC of 1.00%. Proceeds from the CDSCs are paid to PFD. For the year ended June
30, 2004, $357,902 in CDSCs were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended June 30, 2004, the Fund's expenses were
reduced by $6,036 under such arrangements.
39
Pioneer Bond Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of
Pioneer Bond Fund:
We have audited the statement of assets and liabilities, including the schedule
of investments, of Pioneer Bond Fund (the "Fund") as of June 30, 2004, and the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the periods indicated in the three years
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights for each of the two years in the period ended
June 30, 2001 were audited by other auditors who have ceased operations and
whose report, dated August 10, 2001, expressed an unqualified opinion on those
financial highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audits to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements and financial
highlights. Our procedures included confirmation of securities owned as of June
30, 2004, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Bond Fund at June 30, 2004, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated in the three years then ended in conformity with U.S. generally
accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
August 5, 2004
40
Pioneer Bond Fund
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Board of Trustees provides broad supervision over the Fund's
affairs. The officers of the Fund are responsible for the Fund's operations.
The Fund's Trustees and officers are listed below, together with their
principal occupations during the past five years. Trustees who are interested
persons of the Fund within the meaning of the Investment Company Act of 1940
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 65 U.S. registered investment portfolios for
which Pioneer Investment Management, Inc. ("Pioneer") serves as investment
adviser (the "Pioneer Funds"). The address for all Interested Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Fund's statement of additional information provides more detailed
information regarding the Fund's Trustees and is available upon request,
without charge, by calling 1-800-225-6292.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). This
information is also available at pioneerfunds.com and the SEC website at
http://www.sec.gov.
41
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INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Name and Age Positions Held With the Fund Term of Office and Length of Service
John F. Cogan, Jr. (77)* Chairman of the Board, Since 1996.
Trustee and President Serves until retirement or removal
*Mr. Cogan is an Interested Trustee because he is an officer or director of Pioneer and certain of its affiliates.
- ------------------------------------------------------------------------------------------------------------------
Osbert M. Hood (51)** Trustee and Since June, 2003.
Executive Vice President Serves until retirement or removal
**Mr. Hood is an Interested Trustee because he is an officer or director of Pioneer and certain of
its affiliates.
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INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Address Positions Held With the Fund Term of Office and Length of Service
Mary K. Bush (56) Trustee Since 1997.
3509 Woodbine Street, Serves until retirement or removal
Chevy Chase, MD 20815
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Richard H. Egdahl, M.D. (77) Trustee Since 1996.
Boston University Healthcare Serves until retirement or removal
Entrepreneurship Program,
53 Bay State Road,
Boston, MA 02215
- ------------------------------------------------------------------------------------------------------
42
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- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this Trustee
Deputy Chairman and a Director of Pioneer Global Asset Director of Harbor Global Company,
Management S.p.A. ("PGAM"); Non-Executive Chairman Ltd.
and a Director of Pioneer Investment Management USA
Inc. ("PIM-USA"); Chairman and a Director of Pioneer;
Director of Pioneer Alternative Investment Management
Limited (Dublin); President and a Director of Pioneer
Alternative Investment Management (Bermuda) Limited
and affiliated funds; President and Director of Pioneer
Funds Distributor, Inc. ("PFD"); President of all of the
Pioneer Funds; and Of Counsel (since 2000, partner
prior to 2000), Hale and Dorr LLP (counsel to PIM-USA
and the Pioneer Funds)
- ------------------------------------------------------------------------------------------------------
President and Chief Executive Officer, PIM-USA since None
May, 2003 (Director since January, 2001); President
and Director of Pioneer since May, 2003; Chairman
and Director of Pioneer Investment Management
Shareholder Services, Inc. ("PIMSS") since May, 2003;
Executive Vice President of all of the Pioneer Funds
since June, 2003; Executive Vice President and Chief
Operating Officer of PIM-USA, November 2000 to May
2003; Executive Vice President, Chief Financial Officer
and Treasurer, John Hancock Advisers, L.L.C., Boston,
MA, November 1999 to November 2000; Senior Vice
President and Chief Financial Officer, John Hancock
Advisers, L.L.C., April 1997 to November 1999
- ------------------------------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this Trustee
President, Bush International (international financial Director of Brady Corporation
advisory firm) (industrial identification and
specialty coated material products
manufacturer), Millennium Chemicals,
Inc. (commodity chemicals), Mortgage
Guaranty Insurance Corporation, and
R.J. Reynolds Tobacco Holdings, Inc.
(tobacco)
- ------------------------------------------------------------------------------------------------------
Alexander Graham Bell Professor of Health Care None
Entrepreneurship, Boston University; Professor
of Management, Boston University School of
Management; Professor of Public Health, Boston
University School of Public Health; Professor of Surgery,
Boston University School of Medicine; and University
Professor, Boston University
- ------------------------------------------------------------------------------------------------------
43
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INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Address Positions Held With the Fund Term of Office and Length of Service
Margaret B.W. Graham (57) Trustee Since 1996.
1001 Sherbrooke Street West, Serves until retirement or removal
Montreal, Quebec, Canada
H3A 1G5
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Marguerite A. Piret (56) Trustee Since 1996.
One Boston Place, 28th Floor, Serves until retirement or removal
Boston, MA 02108
- ------------------------------------------------------------------------------------------------------
Stephen K. West (75) Trustee Since 1996.
125 Broad Street, Serves until retirement or removal
New York, NY 10004
- ------------------------------------------------------------------------------------------------------
John Winthrop (67) Trustee Since 1996.
One North Adgers Wharf, Serves until retirement or removal
Charleston, SC 29401
- ------------------------------------------------------------------------------------------------------
TRUST OFFICERS
- ------------------------------------------------------------------------------------------------------
Name and Age Positions Held With the Fund Term of Office and Length of Service
Dorothy E. Bourassa (56) Secretary Serves at the discretion of board.
- ------------------------------------------------------------------------------------------------------
Christopher J. Kelley (39) Assistant Secretary Since September, 2003.
Serves at the discretion of board.
- ------------------------------------------------------------------------------------------------------
David C. Phelan (46) Assistant Secretary Since September, 2003.
Serves at the discretion of board.
- ------------------------------------------------------------------------------------------------------
Vincent Nave (59) Treasurer Since November, 2000.
Serves at the discretion of board.
- ------------------------------------------------------------------------------------------------------
Luis I. Presutti (39) Assistant Treasurer Since November, 2000.
Serves at the discretion of board.
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44
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Other Directorships Held by this
Principal Occupation During Past Five Years Trustee
Founding Director, The Winthrop Group, Inc. (consulting firm); None
Professor of Management, Faculty of Management, McGill
University
- ------------------------------------------------------------------------------------------------------
President and Chief Executive Officer, Newbury, Piret & None
Company, Inc. (investment banking firm)
- ------------------------------------------------------------------------------------------------------
Senior Counsel, Sullivan & Cromwell (law firm) Director, The Swiss Helvetia Fund,
Inc. (closed-end investment
company) and AMVESCAP PLC
(investment managers)
- ------------------------------------------------------------------------------------------------------
President, John Winthrop & Co., Inc. None
(private investment firm)
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
Other Directorships Held by this
Principal Occupation During Past Five Years Officer
Secretary of PIM-USA; Senior Vice President-Legal of None
Pioneer; and Secretary/Clerk of most of PIM-USA's
subsidiaries since October 2000; Secretary of all of the
Pioneer Funds since September 2003 (Assistant
Secretary from November 2000 to September 2003);
and Senior Counsel, Assistant Vice President and Director of
Compliance of PIM-USA from April 1998 through
October 2000
- ------------------------------------------------------------------------------------------------------
Assistant Vice President and Senior Counsel of Pioneer since None
July 2002; Vice President and Senior Counsel of BISYS Fund
Services, Inc. (April 2001 to June 2002); Senior Vice
President and Deputy General Counsel of Funds Distributor,
Inc. (July 2000 to April 2001; Vice President and Associate
General Counsel from July 1996 to July 2000); Assistant
Secretary of all of the Pioneer Funds since September 2003
- ------------------------------------------------------------------------------------------------------
Partner, Hale and Dorr LLP; Assistant Secretary of all of None
Pioneer Funds since September 2003
- ------------------------------------------------------------------------------------------------------
Vice President-Fund Accounting, Administration and Custody None
Services of Pioneer (Manager from September 1996 to
February 1999); and Treasurer of all of the Pioneer Funds
(Assistant Treasurer from June 1999 to November 2000)
- ------------------------------------------------------------------------------------------------------
Assistant Vice President-Fund Accounting, Administration None
and Custody Services of Pioneer (Fund Accounting Manager
from 1994 to 1999); and Assistant Treasurer of all of the
Pioneer Funds since November 2000
- ------------------------------------------------------------------------------------------------------
45
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TRUST OFFICERS
- --------------------------------------------------------------------------------
Name and Age Positions Held With the Fund Term of Office and Length of Service
Gary Sullivan (46) Assistant Treasurer Since May, 2002.
Serves at the discretion of board.
- ------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (30) Assistant Treasurer Since September, 2003.
Serves at the discretion of board.
- ------------------------------------------------------------------------------------------------------
46
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- --------------------------------------------------------------------------------
Other Directorships Held by this
Principal Occupation During Past Five Years Officer
Fund Accounting Manager-Fund Accounting, Administration None
and Custody Services of Pioneer; and Assistant Treasurer of
all of the Pioneer Funds since May 2002
- ------------------------------------------------------------------------------------------------------
Fund Administration Manager-Fund Accounting, None
Administration and Custody Services since June 2003;
Assistant Vice President-Mutual Fund Operations of
State Street Corporation from June 2002 to June 2003
(formerly Deutsche Bank Asset Management); Pioneer
Fund Accounting, Administration and Custody Services
(Fund Accounting Manager from August 1999 to May 2002,
Fund Accounting Supervisor from 1997 to July 1999);
Assistant Treasurer of all of the Pioneer Funds since
September 2003
- ------------------------------------------------------------------------------------------------------
47
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RETIREMENT PLANS FROM PIONEER
- --------------------------------------------------------------------------------
Pioneer has a long history of helping people work toward their retirement
goals, offering plans suited to the individual investor and businesses of all
sizes. For more information on Pioneer retirement plans, contact your
investment professional, or call Pioneer at 1-800-622-0176.
Individual Retirement Accounts (IRAs)
Traditional IRA*
For anyone under age 70-1/2 earning income. Individuals can contribute up to
$3,000, or $3,500 if age 50 or older, annually. Earnings are tax-deferred, and
contributions may be tax-deductible.
Roth IRA*
Available to single individuals earning less than $110,000 in income annually,
and married couples with joint income less than $160,000. Contributions of up
to $3,000, or $3,500 if age 50 or older, a year are not tax-deductible, but all
earnings are tax-free for qualified withdrawals. Distributions are tax and
penalty-free if certain conditions are met.
Employer-Sponsored Plans
Uni-K Plan*
A 401(k) plan designed specifically for any business that employs only owners
and their spouses. Participants can make salary deferral contributions up to
$13,000 per year, or $16,000 if age 50 or older. In addition, each year the
business may contribute up to 25% of pay.
Uni-DB Plan
A full service defined benefit plan for small business owners over age 45 with
up to five employees. Employer contributions are required. The plan allows for
the maximum deductible contribution up to $165,000 or more.
401(k) Plan*
Allows employees to make pre-tax contributions through payroll deduction, up to
$13,000, or $16,000 if age 50 or older, per year. Employers' contributions are
discretionary. The 401(k) offers companies maximum flexibility.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
48
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SIMPLE IRA Plan*
The Savings Incentive Match PLan for Employees (SIMPLE) is designed for
employers with 100 or fewer eligible employees. Employees can decide whether to
contribute. Employers must contribute.
403(b) Plan*
Also known as a Tax-Sheltered Account (TSA), this plan lets employees of public
schools, non-profit hospitals and other tax-exempt organizations make pre-tax
contributions through payroll deduction.
SEP-IRA
The Simplified Employee Pension (SEP) plan lets self-employed people and
small-business owners make tax-deductible contributions of up to 25% of income,
while maintaining complete contribution flexibility each year.
Profit Sharing Plan
Companies can decide each year whether - and how much - to contribute to
participants, up to 25% of each participant's pay. Can include vesting
schedules that are not available with a SEP-IRA.
Age-Based Profit Sharing Plan
Employer contributions are flexible, but are based on a formula using age and
salary. Each year, a business can contribute up to 25% of the total eligible
payroll.
Money Purchase Pension Plan (MPP)
Allows employer contributions, up to 25% of pay annually. Companies must
contribute a fixed percentage of pay each year.
* Special Catch-Up Provisions are available to individuals age 50 and older to
contribute additional amounts to their retirement accounts. For more
information, call our Retirement Plans Information line at 1-800-622-0176.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
49
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PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
- --------------------------------------------------------------------------------
Your investment professional can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-800-225-6292.
FactFone(SM)
This is our automated account information service, available to you 24 hours a
day, seven days a week. FactFone gives you a quick and easy way to check fund
share prices, yields, dividends and distributions, as well as information about
your own account. Simply call 1-800-225-4321. For specific account information,
have your account number, fund number and our personal identification number
(PIN) in hand. If this is your first time using FactFone, you will need to
establish a PIN.
6-Month Reinstatement Privilege (for Class A and Class B Shares)
Enables you to reinvest all or a portion of the money you redeemed from your
Pioneer account - without paying a sales charge - within 6 months from your
redemption. Upon your request, the shares will be reinvested into your choice
of any class A fund with the same registration as the originating account.
Please note that you will need to meet fund minimum requirements.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. With this
feature, Pioneer will automatically draft a predetermined dollar amount,
specified by you, from your bank account and purchase shares into your
investments to grow using the dollar-cost averaging approach.
Payroll Investment Program (PIP)
This service enables you to fund your Pioneer investment directly through a
payroll deduction. After completing Pioneer's authorization form, your employer
will deduct a predetermined dollar amount from your paycheck to be invested at
Pioneer. When you invest through payroll, you're putting yourself at the top of
the list of those you pay. Many people find that "paying yourself first" is the
most sensible way to build a nest egg.
50
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Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a period of
time. Just choose the amounts and dates for Pioneer to sell shares from your
original fund and use the proceeds to buy shares of the other funds you have
chosen. To establish this service, simply complete a Pioneer Account Options
form. (Automatic Exchange is available for originating accounts with a balance
of $5,000 or more.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
This service allows you to establish automatic withdrawals from your account at
set intervals. You decide the frequency and the day of the month. Pioneer will
send the proceeds by check to a designated address or electronically to your
bank account. You can also authorize Pioneer to make the redemptions payable to
someone else. Simply complete a Pioneer Account Options form to begin this
service.
51
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This page for your notes.
52
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This page for your notes.
53
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HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our Internet e-mail address ask.pioneer@pioneerinvest.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
Please consider the fund's investment objectives, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about the fund and should be read carefully before you invest or send money.
To obtain a prospectus and for other information on any Pioneer fund, call
1-800-225-6292 or visit our web site www.pioneerfunds.com.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street 16050-00-0804
Boston, Massachusetts 02109 (C) 2004 Pioneer Funds Distributor, Inc.
www.pioneerfunds.com Underwriter of Pioneer mutual funds, Member SIPC
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Audit Fees
Fees for audit services provided to the Fund, including
fees associated with the annual filings of its Form N-
1A totaled approximately $43,300 in 2004 and
$40,100 in 2003.
(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 provided to the
Fund for the fiscal years ended June 30, 2004 and
2003.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Tax Fees
Fees for tax compliance services, primarily for tax
returns, totaled approximately $6,000 for 2004 and
$3,600 for 2003.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
Other Fees
There were no other services provided to the Fund
during the fiscal years ended June 30, 2004 and 2003.
(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 recognizes the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognizes that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
Aggregate Non-Audit Fees
The aggregate non-audit fees for the Fund and
affiliates, as previously defined, totaled approximately
$6,000 in 2004 and $3,600 in 2003.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Fund's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Fund. For the
years ended June 30, 2004 and 2003, there were no
services provided to an affiliate that required the
Fund's audit committee pre-approval.
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.
ITEMS 5-6. [RESERVED]
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. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer and principal financial
officer have concluded, that the registrant's disclosure controls and
procedures are effective based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Bond Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date August 25, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date August 25, 2004
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date August 25, 2004
* Print the name and title of each signing officer under his or her signature.