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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 811-21569
Pioneer Ibbotson Asset Allocation Series
(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: July 31
Date of reporting period: August 1, 2005 through July 31, 2006
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
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PIONEER
-------
IBBOTSON
ASSET ALLOCATION
SERIES
Annual
Report
7/31/06
[LOGO] PIONEER
INVESTMENTS(R)
Table of Contents
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Letter to Shareowners 2
Market Overview and Outlook 4
Comparing Ongoing Fund Expenses 7
Portfolio Reviews 15
Prices and Distributions 17
Conservative Allocation Fund - Portfolio Summary and
Performance Update 19
Moderate Allocation Fund - Portfolio Summary and
Performance Update 24
Growth Allocation Fund - Portfolio Summary and
Performance Update 29
Aggressive Allocation Fund - Portfolio Summary and
Performance Update 34
Schedule of Investments 39
Financial Statements 43
Notes to Financial Statements 65
Report of Independent Registered Public Accounting Firm 77
Trustees, Officers and Service Providers 78
President's
Dear Shareowner,
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We know from the history of the capital markets that sudden shifts in investor
sentiment can occur with little warning, based on an assortment of events. We
believe such a shift in sentiment is occurring in reaction to the possibility
that U.S. economic growth may slow in the second half of 2006.
While U.S. markets fell in late May and early June, the economic events of the
six- and 12-month periods ending July 31, 2006, have actually been characterized
by continued low inflation at home and strong growth prospects abroad with
rising commodity and stock prices.
According to the International Monetary Fund, international economic growth in
2004-2005 was the fastest of any two-year period in more than 30 years, and 2006
growth is projected to match the healthy growth of 2005. The growth has been
broad-based, with Europe, Japan, and emerging market economies all showing
strength. The result has been rising prices across a broad range of commodities,
increasing corporate profits, and higher interest rates.
The U.S. bond markets' concern has been that strong economic growth would spark
inflation - we have already seen commodity prices rise, and U.S. labor costs are
threatening to increase, since we are close to full employment. That may also be
a reason why public sentiment is becoming uneasy.
Despite strong first quarter economic growth, the U.S. economy for the second
half of the year may slow in reaction to past increases in interest rates and
energy costs. Thus far the only sign of such a slowdown has been a cooling
housing market. Yet many observers believe a slower growing economy could be
welcomed by the markets.
The U.S. Federal Reserve has continued its program of measured short-term
interest rate increases. However, the Fed Chairman, Ben Bernanke, indicated that
inflation may moderate, which would permit the Fed to stop raising interest
rates. Such action could have positive effects for both consumers and investors
over the intermediate-to- longer term. By restraining inflation, the Fed may
also limit upward
2
Letter
pressure on longer-maturity bond yields and downward pressure on stocks'
price/earnings ratios.
In summary, we think security market valuations remain reasonable, and yet there
are no guarantees in investing. The unpredictability reinforces the importance
of Pioneer's message that investors should remain diversified, take a long-term
view, and base investment decisions on economic and market fundamentals, rather
than on emotion. Our investment philosophy and approach continue to be based on
the use of fundamental research to identify a range of opportunities that offer
an attractive balance of risk and reward to help shareowners work toward their
long-term goals.
Respectfully,
/s/Obert 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.
3
Pioneer Ibbotson Asset Allocation Series
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MARKET OVERVIEW AND OUTLOOK 7/31/06
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In the following interview, portfolio manager Peng Chen, Chief Investment
Officer for Ibbotson Associates Advisors, LLC, discusses the market environment
and investment strategies that applied to the portfolios in the Pioneer Ibbotson
Asset Allocation Series during the annual period ended July 31, 2006.
Q. Could you characterize the economic backdrop during the fiscal year?
A. The economic situation was difficult to interpret for most of the year.
Economic growth was generally healthy, although it experienced a slight
slowdown at the end of 2005, before rebounding in the first quarter of
2006. The more recent employment data have failed to provide a clear
picture. In particular, job creation in manufacturing has been
disappointing. While core inflation (which excludes energy and food) has
remained relatively subdued, inflation concerns increased over the year,
driven primarily by high energy prices.
On the interest rate front, the Federal Reserve began to raise short-term
rates in 2004 and continued to tighten gradually throughout our fiscal
year. For much of the first half of the period, long-term interest rates
were surprisingly stable in the face of the Fed tightening, but they did
eventually trend upward and ended the period higher. The environment of
rising interest rates led to tepid bond market performance. Most areas of
the domestic equity market finished modestly higher, led by value stocks,
although prices have basically continued to fluctuate within a range.
International equities provided very strong returns over the period.
Q. What were the strategic considerations that you applied to the four
portfolios in allocating assets?
A. Assets have continued to be invested in keeping with the respective broad
asset allocation and specific mutual fund targets established for each
portfolio. Within the U.S. stock portion of the portfolios, we began the
period with a moderate emphasis on value stocks and a corresponding
underweighting of more growth-oriented investments. As the period
progressed, we removed this overweighting of value stocks in favor of a
neutral position between the growth and value categories, reflecting our
current view that there is no clear direction that would support an
overweighting of either category. With respect to market capitalization, in
the second half of the year we introduced a slight overweighting of U.S.
large-cap stocks relative to small cap stocks. We did this for a number of
reasons. First, although small-cap stocks have historically outperformed
large-caps over long periods, there is a cyclical aspect to this
performance leadership. After several years of small-cap outperformance,
this trend seems to have become less pronounced. In our view this suggests
that a cycle of large-cap performance leadership may begin reasonably soon.
Supporting this view as well is the fact that small-cap stocks are
currently trading at valuations approximately double those for large-caps.
Finally, if, as many expect, the economy slows as a result of higher
interest rates, large-cap stocks may be more resilient.
4
Pioneer Ibbotson Asset Allocation Series
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Throughout the period, we have maintained neutral target weightings in the
non-U.S. equity market alternatives, both developed and emerging.
A strategic emphasis that we maintained for the entire year is within the
bond portion of the portfolios, where we have underweighted the long-term
bond vehicle, with the difference allocated to the shorter-term
fixed-income alternative. While we do not see a clear direction for
long-term interest rates over the short term, over time we do expect
long-term bond yields to continue to trend higher, with corresponding
downward pressure on prices of these issues. In addition, short-term rates
have become much more attractive given the Fed's raising of the benchmark
rate. In view of these factors, we believe the risk/reward profile is more
favorable among shorter term issues. Elsewhere within fixed-income, we have
maintained neutral positions in the high-yield bond offering, as well as in
the non-U.S. fixed-income option.
Finally, we continue to underweight REITs (Real Estate Investment Trusts).
REITs are traditionally most attractive to investors seeking income return,
and these issues benefited from the period of low interest rates
experienced in the recent past. As rates have risen, REIT yields have
reached historically low levels relative to Treasury bonds. At the same
time, REITs in the aggregate are priced at roughly double the general stock
market, as gauged by traditional valuation measures such as
price-to-earnings ratio. In addition to appearing fully valued when
compared to both bonds and the rest of the stock market, REITs may be
vulnerable to higher market interest rate levels, which we expect to lead
to continued cooling in the real estate sector. While our underweighting of
the sector has not aided performance to date, we believe our current
positioning is prudent given this backdrop.
Q. What factors are you watching most closely as you determine strategy for
the Portfolios going forward?
A. Going forward, we will continue to monitor economic indicators and interest
rates to evaluate whether we need to adjust the views underlying our
strategic allocations. The Federal deficit has been stable around four
percent of Gross Domestic Product (GDP); the trade deficit reached a record
six percent of GDP; and the absence of household savings persists. While
the markets do not seem to be especially focused on these numbers, the
persistence of these imbalances is something we are watching.
The markets are, however, focused on the Fed's next moves. With the
transition to Chairman Bernanke in early 2006, the Fed has announced a
shift from a course of measured rate increases to a data-driven approach to
policy. As a result, many economists have been paying even more attention
than usual to economic releases, which are expected to affect short-term
interest rates and, through them, the economy and the markets. On the one
hand, we have limited employment growth and core inflation that remains
relatively low; on the other hand, core inflation is increasing and GDP
growth is solid. Will Chairman Bernanke keep increasing the benchmark rate
to
5
Pioneer Ibbotson Asset Allocation Series
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MARKET OVERVIEW AND OUTLOOK 7/31/06 (continued)
- --------------------------------------------------------------------------------
strengthen his reputation as an inflation hawk, or will he keep the rate
stable while waiting for the effects of the 17 consecutive increases to
kick in? In the meantime, the U.S. yield curve, which represents the
relationship between bond yields and maturities, remains rather flat -
meaning there is very little reward for buying longer maturities. The stock
market appears to be treading water pending economic data that will enable
participants to forecast Fed actions more effectively.
We continue to view the financial markets as lacking in clear direction,
making appropriate diversification across asset classes vitally important
as we enter a new fiscal year.
Each portfolio's performance depends on the adviser's skill in determining the
strategic asset class allocations, the mix of underlying Pioneer funds, as well
as the performance of those underlying funds. The underlying funds' performance
may be lower than the performance of the asset class that they were selected to
represent. Stocks and bonds can decline due to adverse issuer, market,
regulatory, or economic developments. International markets may be less liquid
and can be more volatile than U.S. markets. These risk factors, including those
associated with currency exchange rates, also apply to investments in
international markets, all of which make international markets more volatile and
less liquid than investments in domestic markets. Some of the underlying funds
can invest in either high-yield securities or small/emerging growth companies.
Investments in these types of securities generally are subject to greater
volatility than either higher-grade securities or more-established companies,
respectively. Before making an investment in any portfolio, you should consider
all the risks associated with it.
Please see the Portfolio Reviews beginning on page 15 for information on
specific weightings and performance for each of the four portfolios in the
Pioneer Ibbotson Asset Allocation Series.
Any information in this shareholder report regarding market or economic trends
or the factors influencing each portfolios' historical or future performance are
statements of the opinion of the portfolios' 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.
6
Pioneer Ibbotson Conservative Allocation Fund
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COMPARING ONGOING FUND EXPENSES
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As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000 Example: an $8,600 account value -
$1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Conservative
Allocation Fund
Based on actual returns from February 1, 2006 through July 31, 2006.
Share Class A B C Y
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Beginning Account Value
On 2/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/06 $1,000.97 $ 996.20 $ 997.18 $1,000.00
Expenses Paid During Period* $ 7.34 $ 11.78 $ 11.79 $ 9.47
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.48%, 2.38%, 2.38%
and 1.91% for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 181/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
7
Pioneer Ibbotson Conservative Allocation Fund
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COMPARING ONGOING FUND EXPENSES 7/31/06 (continued)
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Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Conservative
Allocation Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from February 1, 2006 through July 31, 2006.
Share Class A B C Y
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Beginning Account Value
On 2/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/06 $1,017.46 $1,012.99 $1,012.99 $1,015.32
Expenses Paid During
Period* $ 7.40 $ 11.88 $ 11.88 $ 9.54
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.48%, 2.38%, 2.38%
and 1.91% for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 181/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
8
Pioneer Ibbotson Moderate Allocation Fund
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COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000 Example: an $8,600 account value -
$1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Moderate Allocation
Fund
Based on actual returns from February 1, 2006 through July 31, 2006.
Share Class A B C Y
- ----------------------------------------------------------------------------------------------------
Beginning Account Value
On 2/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/06 $ 993.00 $ 988.22 $ 989.92 $ 995.66
Expenses Paid During Period* $ 6.92 $ 11.24 $ 10.81 $ 5.20
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.40%, 2.28%, 2.19%
and 1.05%, for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 181/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
9
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES 7/31/06 (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Moderate Allocation
Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from February 1, 2006 through July 31, 2006.
Share Class A B C Y
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Beginning Account Value
On 2/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/06 $1,017.85 $1,013.49 $1,013.93 $1,019.59
Expenses Paid During
Period* $ 7.00 $ 11.38 $ 10.94 $ 5.26
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.40%, 2.28%, 2.19%
and 1.05%, for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 181/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
10
Pioneer Ibbotson Growth Allocation Fund
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COMPARING ONGOING FUND EXPENSES
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As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000 Example: an $8,600 account value -
$1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Growth Allocation Fund
Based on actual returns from February 1, 2006 through July 31, 2006.
Share Class A B C Y
- ----------------------------------------------------------------------------------------------------
Beginning Account Value
On 2/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/06 $ 989.39 $ 985.60 $ 986.35 $ 995.82
Expenses Paid During Period* $ 7.65 $ 11.72 $ 11.18 $ 5.54
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.55%, 2.38%, 2.27%
and 1.12%, for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 181/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
11
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES 7/31/06 (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Growth Allocation Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from February 1, 2006 through July 31, 2006.
Share Class A B C Y
- ----------------------------------------------------------------------------------------------------
Beginning Account Value
On 2/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/06 $1,017.11 $1,012.99 $1,013.54 $1,019.24
Expenses Paid During
Period* $ 7.75 $ 11.88 $ 11.33 $ 5.61
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.55%, 2.38%, 2.27%
and 1.12%, for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 181/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
12
Pioneer Ibbotson Aggressive Allocation Fund
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COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000 Example: an $8,600 account value -
$1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Aggressive Allocation
Fund
Based on actual returns from February 1, 2006 through July 31, 2006.
Share Class A B C Y
- ----------------------------------------------------------------------------------------------------
Beginning Account Value
On 2/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/06 $ 985.67 $ 981.74 $ 982.83 $ 986.52
Expenses Paid During Period* $ 8.32 $ 12.33 $ 11.95 $ 6.06
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.69%, 2.51%, 2.43%
and 1.23%, for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 181/365 (to reflect the partial year period) to
calculate the "Expenses Paid During Period" in the table above.
13
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES 7/31/06 (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Aggressive Allocation
Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from February 1, 2006 through July 31, 2006.
Share Class A B C Y
- ----------------------------------------------------------------------------------------------------
Beginning Account Value
On 2/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/06 $1,016.41 $1,012.35 $1,012.74 $1,018.70
Expenses Paid During
Period* $ 8.45 $ 12.52 $ 12.13 $ 6.16
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.69%, 2.51%, 2.43%
and 1.23%, for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 181/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
14
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PORTFOLIO REVIEWS 7/31/06
- --------------------------------------------------------------------------------
Conservative Allocation
The Fund's total return for the annual period ended July 31, 2006, was 3.33% for
Class A shares, at net asset value.
The Fund targeted an asset allocation of 30% equities and 70% fixed-income
during the period. Within the equity portion of the Fund, Pioneer International
Equity Fund was the largest holding at 7.2% of assets on July 31, 2006. Pioneer
Oak Ridge Large Cap Growth Fund was the next largest equity holding at 7.0% of
assets. Large capitalization holdings were weighted slightly above target at the
end of the period, reflecting management's view that these stocks were more
attractive than their smaller cap counterparts. Within the fixed-income portion
of the Fund, the largest holding at the end of the period was in a shorter
duration bond fund, Pioneer Short Term Income Fund, at 23.9%, followed by
Pioneer Bond Fund at 16.0% of assets.
Moderate Allocation
The Fund's total return for the annual period ended July 31, 2006, was 4.98% for
Class A shares, at net asset value.
The Portfolio targeted an asset allocation of 60% equities, 40% fixed-income
during the period. Within the equity portion of the Portfolio, Pioneer Oak Ridge
Large Cap Growth Fund was the largest holding at 13.7% of assets on July 31,
2006. Pioneer International Equity Fund was the next largest equity holding at
11.4% of assets. Large capitalization holdings were weighted slightly above
target at the end of the period, reflecting management's view that these stocks
were more attractive than their smaller cap counterparts. Within the
fixed-income portion of the Fund, the largest holding at the end of the period
was in a shorter duration bond fund, Pioneer Short Term Income Fund, at 16.0%,
followed by Pioneer Bond Fund at 9.1% of assets.
Growth Allocation
The Fund's total return for the annual period ended July 31, 2006 was 6.29% for
Class A shares, at net asset value.
The Portfolio targeted an asset allocation of 75% equities, 25% fixed-income
during the period. Within the equity portion of the fund, Pioneer International
Equity Fund was the largest holding at 15.3% of assets on July 31, 2006. The
largest domestic equity allocation was to Pioneer Oak Ridge Large Cap Growth
Fund (13.5%) followed by Pioneer Research Fund (11.2%). Large capitalization
holdings were weighted slightly above target at the end of the period,
reflecting
15
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PORTFOLIO REVIEWS 7/31/06 (continued)
- --------------------------------------------------------------------------------
management's view that these stocks were more attractive than their smaller cap
counterparts. Within the fixed-income portion of the Fund, the largest holding
at the end of the period was in a shorter term bond fund, Pioneer Short Term
Income Fund, at 11.8% of assets, while Pioneer Bond Fund represented 8.0% of
assets.
Aggressive Allocation
The Fund's total return for the annual period ended July 31, 2006 was 7.30% for
Class A shares.
The Fund targeted an asset allocation of 90% equities, 10% fixed-income during
the period. Within the equity portion of the fund, Pioneer International Equity
Fund was the largest holding at 20.3% of assets on July 31, 2006. On the
domestic side, Pioneer Oak Ridge Large Cap Growth Fund (14.9%) and Pioneer
Research Fund (14.3%) were the largest holdings. Large capitalization holdings
were weighted slightly above target at the end of the period, reflecting
management's view that these stocks were more attractive than their smaller cap
counterparts. The fixed-income portion of the Fund was invested in a longer term
bond fund, Pioneer Bond Fund, at 6.1% of assets, while Pioneer Short Term Income
Fund represented 3.0% of assets.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Any information in this shareholder report regarding market or economic trends
or the factors influencing each portfolios' historical or future performance are
statements of the opinion of the portfolios' 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.
16
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Class 7/31/06 7/31/05
- ------- --------- --------
A $10.56 $10.29
B $10.44 $10.28
C $10.44 $10.26
7/31/06 10/5/05
--------- --------
Y $10.57 $10.32
Moderate Allocation Fund
Class 7/31/06 7/31/05
- ------- --------- --------
A $11.39 $11.15
B $10.92 $10.77
C $10.85 $10.68
7/31/06 9/26/05
--------- --------
Y $11.43 $11.18
Growth Allocation Fund
Class 7/31/06 7/31/05
- ------- --------- --------
A $12.04 $11.50
B $10.93 $10.51
C $11.58 $11.10
7/31/06 9/26/05
--------- --------
Y $12.13 $11.54
Aggressive Allocation Fund
Class 7/31/06 7/31/05
- ------- --------- --------
A $12.39 $11.82
B $11.84 $11.39
C $12.00 $11.54
7/31/06 9/26/05
--------- --------
Y $12.41 $11.87
17
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS (continued)
- --------------------------------------------------------------------------------
Distributions Per Share
- --------------------------------------------------------------------------------
Conservative Allocation Fund
8/1/05 - 7/31/06
----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------ ------------- -------------
A $0.0633 $ - $0.0086
B $0.0633 $ - $0.0086
C $0.0633 $ - $0.0086
Y $0.0633 $ - $0.0086
Moderate Allocation Fund
8/1/05 - 7/31/06
----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------ ------------- -------------
A $0.0645 $ - $0.2446
B $0.0320 $ - $0.2446
C $0.0149 $ - $0.2446
Y $0.0774 $ - $0.2446
Growth Allocation Fund
8/1/05 - 7/31/06
----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------ ------------- -------------
A $ 0.0493 $ - $0.129
B $ 0.0185 $ - $0.129
C $ - $ - $0.129
Y $0.0642 $ - $0.129
Aggressive Allocation Fund
8/1/05 - 7/31/06
----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------ ------------- -------------
A $0.0162 $ - $0.2687
B $ - $ - $0.2687
C $ - $ - $0.2687
Y $0.0281 $ - $0.2687
18
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 7/31/06
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
(The following table is depicted as a pie chart in the printed material)
Fixed Income 70%
Equity 30%
Short Term Bond 27.00%
- -------------------------------------------------------------
Domestic Corporate Bonds 17.00
- -------------------------------------------------------------
Cash & Cash Equivalents 13.00
- -------------------------------------------------------------
High-Yield Corporate Bonds 13.00
- -------------------------------------------------------------
Large-Cap Growth 9.00
- -------------------------------------------------------------
Large-Cap Value 9.00
- -------------------------------------------------------------
International Equities 8.00
- -------------------------------------------------------------
Mid/Small Cap Value 2.00
- -------------------------------------------------------------
Mid/Small Cap Growth 2.00
- -------------------------------------------------------------
Real Estate Investment Trusts (REITs) 0.00
- -------------------------------------------------------------
Emerging Market 0.00
- -------------------------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ----------------------------------------- ------------------------------------
Pioneer Research 7.90% Pioneer International Equity 8.10%
- ----------------------------------------- ------------------------------------
Pioneer Oak Ridge Large Cap Growth 7.88 Bonds
- ----------------------------------------- ------------------------------------
Pioneer Fund 4.56 Pioneer Short Term Income 27.04
- ----------------------------------------- ------------------------------------
Pioneer Cullen Value 3.36 Pioneer Bond 18.09
- ----------------------------------------- ------------------------------------
Pioneer Small Cap Value 1.57 Pioneer High Yield 11.32
- ----------------------------------------- ------------------------------------
Pioneer Mid Cap Growth 1.13 Pioneer Government Income 4.52
- ----------------------------------------- ------------------------------------
Pioneer Value 1.13 Pioneer Strategic Income 3.40
- ----------------------------------------- ------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio holdings
will vary for other periods. The holdings listed should not be considered
recommendations to buy or sell any security listed.
19
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund at public
offering price, compared to that of the Standard & Poor's 500 Stock Index and
Lehman Brothers Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2006)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(5/12/05) 5.41% 0.41%
1 Year 3.33 -2.35
(The following table is depicted as a mountain chart in the printed material)
Value of $10,000 Investment
5/06 9425 10000 10000
7/06 9599 10387 9963
7/06 9947 10945 10108
Pioneer Ibbotson Conservative Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Bond Index
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
20
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
Average Annual Total Returns
(As of July 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(5/12/05) 4.43% 1.17%
1 Year 2.26 -1.44
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
5/06 10000 10000 10000
7/06 10178 10387 9963
7/06 10038 10945 10108
Pioneer Ibbotson Conservative Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
21
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
Average Annual Total Returns
(As of July 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(5/12/05) 4.43% 4.43%
1 Year 2.46 2.76
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
5/06 10000 10000 10000
7/06 10168 10387 9963
7/06 10449 10945 10108
Pioneer Ibbotson Conservative Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
22
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
Average Annual Total Returns
(As of July 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(5/12/05) 5.41% 5.41%
1 Year 3.13 3.63
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
5/06 10000 10000 10000
7/06 10188 10387 9963
7/06 10558 10945 10108
Pioneer Ibbotson Conservative Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Bond Index
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance for periods prior to the inception of the Fund's Class Y shares
reflects the NAV performance of the Fund's Class A shares. The performance does
not reflect differences in expenses, including the Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares are generally higher than those of
Class Y shares, the performance shown for Class Y shares prior to their
inception would have been higher. Class A shares are used as a proxy through
October 5, 2005, the inception date of Class Y shares. Class Y shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
23
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 7/31/06
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
(The following table is depicted as a pie chart in the printed material)
Equity 60%
Fixed Income 40%
Short Term Bond 17.00%
- ------------------------------------------------------------
Large-Cap Growth 15.50
- ------------------------------------------------------------
Large-Cap Value 15.50
- ------------------------------------------------------------
International Equities 12.00
- ------------------------------------------------------------
Domestic Corporate Bonds 9.00
- ------------------------------------------------------------
High-Yield Corporate Bonds 8.00
- ------------------------------------------------------------
Mid/Small Cap Value 6.00
- ------------------------------------------------------------
Cash & Cash Equivalents 6.00
- ------------------------------------------------------------
Mid/Small Cap Growth 6.00
- ------------------------------------------------------------
Real Estate Investment Trusts (REITs) 3.00
- ------------------------------------------------------------
Emerging Market 2.00
- ------------------------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------ ------------------------------------
Pioneer Oak Ridge Large Cap Growth 14.35% Pioneer International Equity 11.95%
- ------------------------------------------ ------------------------------------
Pioneer Research 10.48 Pioneer Emerging Markets 2.07
- ------------------------------------------ ------------------------------------
Pioneer Fund 7.36 Bonds
- ------------------------------------------ ------------------------------------
Pioneer Cullen Value 3.43 Pioneer Short Term Income 16.81
- ------------------------------------------ ------------------------------------
Pioneer Real Estate 3.30 Pioneer Bond 9.58
- ------------------------------------------ ------------------------------------
Pioneer Value 3.16 Pioneer High Yield 6.34
- ------------------------------------------ ------------------------------------
Pioneer Mid Cap Growth 2.62 Pioneer Government Income 3.43
- ------------------------------------------ ------------------------------------
Pioneer Small Cap Value 2.08
- ------------------------------------------
Pioneer Growth Opportunities 2.01
- ------------------------------------------
Pioneer Mid Cap Value 1.03
- ------------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio holdings
will vary for other periods. The holdings listed should not be considered
recommendations to buy or sell any security listed.
24
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund at public offering
price, compared to that of the Standard & Poor's 500 Stock Index and Lehman
Brothers Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2006)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 9.70% 6.46%
1 Year 4.98 -1.06
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
8/06 9425 10000 10000
7/06 10570 11359 10283
7/06 11097 11969 10433
Pioneer Ibbotson Moderate Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Bond Index
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
25
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
Average Annual Total Returns
(As of July 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 7.10% 5.19%
1 Year 4.00 0.00
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
8/06 10000 10000 10000
7/06 10978 11359 10283
7/06 11017 11969 10433
Pioneer Ibbotson Moderate Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Bond Index
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
26
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
Average Annual Total Returns
(As of July 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 6.79% 6.79%
1 Year 4.06 4.06
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
8/06 10000 10000 10000
7/06 11122 11359 10283
7/06 11583 11969 10433
Pioneer Ibbotson Moderate Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Bond Index
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
share1s, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
27
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
Average Annual Total Returns
(As of July 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 9.96% 9.96%
1 Year 5.19 5.19
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
8/06 10000 10000 10000
7/06 11213 11359 10283
7/06 11826 11969 10433
Pioneer Ibbotson Moderate Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Bond Index
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance for periods prior to the inception of the Fund's Class Y shares
reflects the NAV performance of the Fund's Class A shares. The performance does
not reflect differences in expenses, including the Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares are generally higher than those of
Y shares, the performance shown for Class Y shares prior to their inception
would have been higher. Class A shares are used as a proxy through September 26,
2005 the inception date of Class Y shares. Class Y shares are not subject to
sales charges and are available for limited groups of eligible investors,
including institutional investors.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
28
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 7/31/06
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
(The following table is depicted as a pie chart in the printed material)
Equity 75%
Fixed Income 25%
Large-Cap Value 17.50%
- -------------------------------------------------------------
Large-Cap Growth 16.50
- -------------------------------------------------------------
International Equities 16.00
- -------------------------------------------------------------
Short Term Bond 12.50
- -------------------------------------------------------------
Mid/Small Cap Growth 8.50
- -------------------------------------------------------------
Mid/Small Cap Value 8.50
- -------------------------------------------------------------
Domestic Corporate Bonds 7.50
- -------------------------------------------------------------
High-Yield Corporate Bonds 5.00
- -------------------------------------------------------------
Emerging Market 4.00
- -------------------------------------------------------------
Real Estate Investment Trusts (REITs) 4.00
- -------------------------------------------------------------
Cash & Cash Equivalents 0.00
- -------------------------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------- --------------------------------------
Pioneer Oak Ridge Large Cap Growth 13.46% Pioneer International Equity 15.23%
- ------------------------------------------- -------------------------------------
Pioneer Research 11.14 Pioneer Emerging Markets 4.13
- ------------------------------------------- --------------------------------------
Pioneer Fund 7.95 Bonds
- ------------------------------------------- --------------------------------------
Pioneer Cullen Value 4.35 Pioneer Short Term Income 11.80
- ------------------------------------------- --------------------------------------
Pioneer Real Estate 4.12 Pioneer Bond 7.96
- ------------------------------------------- --------------------------------------
Pioneer Value 3.96 Pioneer High Yield 2.97
- ------------------------------------------- --------------------------------------
Pioneer Mid Cap Growth 3.87 Pioneer Government Income 1.59
- ------------------------------------------- --------------------------------------
Pioneer Growth Opportunities 3.67
- -------------------------------------------
Pioneer Small Cap Value 1.97
- -------------------------------------------
Pioneer Mid Cap Value 1.83
- -------------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio holdings
will vary for other periods. The holdings listed should not be considered
recommendations to buy or sell any security listed.
29
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund at public offering
price, compared to that of the Standard & Poor's 500 Stock Index and Lehman
Brothers Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2006)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 12.13% 8.82%
1 Year 6.29 0.19
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
8/06 9425 10000 10000
7/06 10892 11359 10283
7/06 11577 11969 10433
Pioneer Ibbotson Growth Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Bond Index
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
30
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund, compared to that of
the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 6.64% 4.72%
1 Year 5.53 1.53
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
8/06 10000 10000 10000
7/06 11056 11359 10283
7/06 11257 11969 10433
Pioneer Ibbotson Growth Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Bond Index
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
31
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund, compared to that of
the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 9.64% 9.64%
1 Year 5.51 5.51
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
8/06 10000 10000 10000
7/06 11310 11359 10283
7/06 11933 11969 10433
Pioneer Ibbotson Growth Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Bond Index
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
32
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund, compared to that of
the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 12.62% 12.62%
1 Year 6.84 6.84
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
8/06 10000 10000 10000
7/06 11553 11359 10283
7/06 12387 11969 10433
Pioneer Ibbotson Growth Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Bond Index
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance for periods prior to the inception of the Fund's Class Y shares
reflects the NAV performance of the Fund's Class A shares. The performance does
not reflect differences in expenses, including the Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares are generally higher than those of
Class Y shares, the performance shown for Class Y shares prior to their
inception would have been higher. Class A shares are used as a proxy through
September 26, 2005 the inception date of Class Y shares. Class Y shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
33
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 7/31/06
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
(The following table is depicted as a mountain chart in the printed material)
Equity 90%
Fixed Income 10%
International Equities 21.00%
- -------------------------------------------------------------
Large-Cap Growth 19.00
- -------------------------------------------------------------
Large-Cap Value 19.00
- -------------------------------------------------------------
Mid/Small Cap Growth 10.50
- -------------------------------------------------------------
Mid/Small Cap Value 10.50
- -------------------------------------------------------------
Domestic Corporate Bonds 7.00
- -------------------------------------------------------------
Emerging Market 5.00
- -------------------------------------------------------------
Real Estate Investment Trusts (REITs) 5.00
- -------------------------------------------------------------
Short Term Bond 3.00
- -------------------------------------------------------------
High-Yield Corporate Bonds 0.00
- -------------------------------------------------------------
Cash & Cash Equivalents 0.00
- -------------------------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------- ---------------------------------------
Pioneer Oak Ridge Large Cap Growth 14.84% Pioneer International Equity 20.15%
- ------------------------------------------- ---------------------------------------
Pioneer Research 14.19 Pioneer Emerging Markets 5.15
- ------------------------------------------- ---------------------------------------
Pioneer Fund 8.93 Bonds
- ------------------------------------------- ---------------------------------------
Pioneer Cullen Value 5.39 Pioneer Bond 6.02
- ------------------------------------------- ---------------------------------------
Pioneer Real Estate 5.09 Pioneer Short Term Income 2.96
- ------------------------------------------- ---------------------------------------
Pioneer Mid Cap Growth 4.78
- -------------------------------------------
Pioneer Growth Opportunities 4.68
- -------------------------------------------
Pioneer Value 3.95
- -------------------------------------------
Pioneer Small Cap Value 2.88
- -------------------------------------------
Pioneer Mid Cap Value 0.99
- -------------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio holdings
will vary for other periods. The holdings listed should not be considered
recommendations to buy or sell any security listed.
34
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund at public
offering price, compared to that of the Standard & Poor's 500 Stock Index and
Lehman Brothers Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2006)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 14.40% 11.02%
1 Year 7.30 1.14
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
8/06 9425 10000 10000
7/06 11173 11359 10283
7/06 11989 11969 10433
Pioneer Ibbotson Aggressive Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Bond Index
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
35
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
Average Annual Total Returns
(As of July 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 11.77% 9.93%
1 Year 6.36 2.36
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
8/06 10000 10000 10000
7/06 11690 11359 10283
7/06 12045 11969 10433
Pioneer Ibbotson Aggressive Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Bond Index
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
36
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
Average Annual Total Returns
(As of July 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 12.49% 12.49%
1 Year 6.37 6.37
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
8/06 10000 10000 10000
7/06 11563 11359 10283
7/06 12309 11969 10433
Pioneer Ibbotson Aggressive Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Bond Index
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
37
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/06 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
Average Annual Total Returns
(As of July 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 14.55% 14.55%
1 Year 7.13 7.13
(The following table is depicted as a mountain chart in the printed material)
Value of 10,000 Investment
8/06 10000 10000 10000
7/06 11563 11359 10283
7/06 12309 11969 10433
Pioneer Ibbotson Aggressive Allocation Fund
Standard & Poor's 500 Stock Index
Lehman Brothers Aggregate
Bond Index
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance for periods prior to the inception of the Fund's Class Y shares
reflects the NAV performance of the Fund's A shares. The performance does not
reflect differences in expenses, including the Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares are generally higher than those of
Class Y shares, the performance shown for Y shares prior to their inception
would have been higher. Class A shares are used as a proxy through September 26,
2005 the inception date of Class Y shares. Class Y shares are not subject to
sales charges and are available for limited groups of eligible investors,
including institutional investors.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. 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 an Index.
38
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 7/31/06
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 88.6%
PIONEER FUNDS - 88.6%
303,533 Pioneer Bond Fund Class Y $ 2,704,481
-----------
26,986 Pioneer Cullen Value Fund Class Y 502,758
-----------
14,614 Pioneer Fund Class Y 681,319
-----------
73,173 Pioneer Government Income Fund Class Y 676,116
-----------
157,688 Pioneer High Yield Fund Class Y 1,691,991
-----------
48,111 Pioneer International Equity Fund Class Y 1,211,442
-----------
11,607 Pioneer Mid-Cap Growth Fund Class Y 169,115
-----------
94,022 Pioneer Oak Ridge Large Cap Growth Fund Class Y 1,177,159
-----------
115,592 Pioneer Research Fund Class Y 1,180,195
-----------
415,873 Pioneer Short Term Income Fund Class Y 4,042,281
-----------
7,140 Pioneer Small Cap Value Fund Class Y 234,208
-----------
49,476 Pioneer Strategic Income Fund Class Y 507,621
-----------
9,256 Pioneer Value Fund Class Y 168,831
-----------
TOTAL INVESTMENTS IN SECURITIES - 88.6%
(Cost $14,962,317) (a) $14,947,517
OTHER ASSETS AND LIABILITIES - 11.4% 1,930,662
-----------
TOTAL NET ASSETS - 100.0% $16,878,179
===========
(a) At July 31, 2006, the net unrealized gain on investments based on cost for
federal tax purposes of $14,990,274 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $177,966
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (220,723)
---------
Net unrealized loss $(42,757)
---------
Purchases and sales of securities (excluding temporary cash investments) for the
period ended July 31, 2006 aggregated $14,623,855 and $1,177,259, respectively.
The accompanying notes are an integral part of these financial statements. 39
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 7/31/06
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 95.3%
PIONEER FUNDS - 95.3%
2,703,475 Pioneer Bond Fund Class Y $ 24,087,962
------------
462,082 Pioneer Cullen Value Fund Class Y 8,608,579
------------
175,934 Pioneer Emerging Markets Fund Class Y 5,207,643
------------
396,773 Pioneer Fund Class Y 18,497,558
------------
931,782 Pioneer Government Income Fund Class Y 8,609,661
------------
172,717 Pioneer Growth Opportunities Fund Class Y 5,045,065
------------
1,485,032 Pioneer High Yield Fund Class Y 15,934,395
------------
1,192,513 Pioneer International Equity Fund Class Y 30,027,477
------------
451,484 Pioneer Mid-Cap Growth Fund Class Y 6,578,116
------------
108,398 Pioneer Mid-Cap Value Fund Class Y 2,596,121
------------
2,881,536 Pioneer Oak Ridge Large Cap Growth Fund Class Y 36,076,827
------------
275,219 Pioneer Real Estate Shares Fund Class Y 8,284,080
------------
2,580,304 Pioneer Research Fund Class Y 26,344,901
------------
4,346,759 Pioneer Short Term Income Fund Class Y 42,250,498
------------
159,336 Pioneer Small Cap Value Fund Class Y 5,226,222
------------
435,803 Pioneer Value Fund Class Y 7,949,043
------------
TOTAL INVESTMENTS IN SECURITIES - 95.3%
(Cost $240,107,624) (a) $251,324,148
OTHER ASSETS AND LIABILITIES - 4.7% 12,431,396
------------
TOTAL NET ASSETS - 100.0% $263,755,544
============
(a) At July 31, 2006, the net unrealized gain on investments based on cost for
federal tax purposes of $242,420,828 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $13,530,414
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value
(4,627,094)
----------
Net unrealized gain $8,903,320
==========
Purchases and sales of securities (excluding temporary cash investments) for the
period ended July 31, 2006 aggregated $152,059,026 and $111,035,457,
respectively.
40 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 7/31/06
Shares Value
MUTUAL FUNDS - 100.2%
PIONEER FUNDS - 100.2%
1,916,177 Pioneer Bond Fund Class Y $ 17,073,141
------------
500,306 Pioneer Cullen Value Fund Class Y 9,320,697
------------
299,384 Pioneer Emerging Markets Fund Class Y 8,861,755
------------
365,799 Pioneer Fund Class Y 17,053,559
------------
369,445 Pioneer Government Income Fund Class Y 3,413,670
------------
269,071 Pioneer Growth Opportunities Fund Class Y 7,859,567
------------
593,044 Pioneer High Yield Fund Class Y 6,363,367
------------
1,297,155 Pioneer International Equity Fund Class Y 32,662,360
------------
569,976 Pioneer Mid-Cap Growth Fund Class Y 8,304,554
------------
163,374 Pioneer Mid-Cap Value Fund Class Y 3,912,812
------------
2,304,809 Pioneer Oak Ridge Large Cap Growth Fund Class Y 28,856,211
------------
293,204 Pioneer Real Estate Shares Fund Class Y 8,825,454
------------
2,339,522 Pioneer Research Fund Class Y 23,886,521
------------
2,602,383 Pioneer Short Term Income Fund Class Y 25,295,161
------------
128,575 Pioneer Small Cap Value Fund Class Y 4,217,262
------------
465,149 Pioneer Value Fund Class Y 8,484,322
------------
TOTAL INVESTMENTS IN SECURITIES - 100.2%
(Cost $203,463,394) (a) $214,390,413
OTHER ASSETS AND LIABILITIES - (0.2%) (473,547)
------------
TOTAL NET ASSETS - 100.0% $213,916,866
============
(a) At July 31, 2006, the net unrealized gain on investments based on cost for
federal tax purposes of $204,177,019 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $13,358,650
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (3,145,256)
-----------
Net unrealized gain $10,213,394
===========
Purchases and sales of securities (excluding temporary cash investments) for the
period ended July 31, 2006 aggregated $131,898,994 and $44,552,931,
respectively.
The accompanying notes are an integral part of these financial statements. 41
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 7/31/06
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 100.7%
PIONEER FUNDS - 100.7%
920,103 Pioneer Bond Fund Class Y $ 8,198,114
------------
394,104 Pioneer Cullen Value Fund Class Y 7,342,154
------------
236,942 Pioneer Emerging Markets Fund Class Y 7,013,497
------------
260,916 Pioneer Fund Class Y 12,163,893
------------
218,347 Pioneer Growth Opportunities Fund Class Y 6,377,929
------------
1,090,032 Pioneer International Equity Fund Class Y 27,447,005
------------
446,460 Pioneer Mid-Cap Growth Fund Class Y 6,504,927
------------
56,103 Pioneer Mid-Cap Value Fund Class Y 1,343,659
------------
1,614,756 Pioneer Oak Ridge Large Cap Growth Fund Class Y 20,216,742
------------
230,372 Pioneer Real Estate Shares Fund Class Y 6,934,191
------------
1,892,350 Pioneer Research Fund Class Y 19,320,891
------------
414,668 Pioneer Short Term Income Fund Class Y 4,030,569
------------
119,561 Pioneer Small Cap Value Fund Class Y 3,921,617
------------
294,820 Pioneer Value Fund Class Y 5,377,525
------------
TOTAL INVESTMENTS IN SECURITIES - 100.7%
(Cost $126,072,376) (a) $136,192,713
OTHER ASSETS AND LIABILITIES - (0.7%) (904,965)
------------
TOTAL NET ASSETS - 100.0% $135,287,748
============
(a) At July 31, 2006, the net unrealized gain on investments based on cost for
federal tax purposes of $127,373,772 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $10,107,713
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (1,288,772)
-----------
Net unrealized gain $8,818,941
===========
Purchases and sales of securities (excluding temporary cash investments) for the
period ended July 31, 2006 aggregated $101,640,759 and $52,847,443,
respectively.
42 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES 7/31/06
- --------------------------------------------------------------------------------
Conservative Moderate Growth Aggressive
Allocation Allocation Allocation Allocation
Fund Fund Fund Fund
ASSETS:
Investments in securities
of affiliated issuers, at value
(at cost $14,962,317,
$240,107,624, $203,463,394
and $126,072,376, respectively) $14,947,517 $251,324,148 $214,390,413 $136,192,713
Cash 2,087,875 12,553,105 - 265,075
Receivables for:
Investment Funds sold - 65,532 - -
Capital stock sold 58,480 675,705 676,448 162,580
Due from Pioneer Investment
Management, Inc. - 10,233 22,464 -
Other assets 32,203 46,745 44,061 45,592
----------- ------------ ------------ ------------
Total assets $17,126,075 $264,675,468 $215,133,386 $136,665,960
----------- ------------ ------------ ------------
LIABILITIES:
Payables for:
Due to Custodian $ - $ - $ 130,788 $ -
Funds purchased 87,798 232,069 342,606 798,783
Capital stock redeemed 60,897 390,789 468,580 332,230
Due to affiliates 40,504 175,427 182,712 106,898
Accrued expenses and other
liabilities 58,697 121,638 91,834 140,301
----------- ------------ ------------ ------------
Total liabilities $ 247,896 $ 919,923 $ 1,216,520 $ 1,378,212
----------- ------------ ------------ ------------
NET ASSETS:
Paid-in capital $16,717,748 $251,570,599 $200,952,608 $127,146,301
Accumulated undistributed net
investment income 149,065 2,083,330 672,433 75,141
Accumulated net realized gain (loss)
on investments 26,166 (1,114,908) 1,364,806 (2,054,031)
Net unrealized gain (loss) on
investments (14,800) 11,216,524 10,927,019 10,120,337
----------- ------------ ------------ ------------
Total net assets $16,878,179 $263,755,545 $213,916,866 $135,287,748
=========== ============ ============ ============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of
shares authorized)
Net Assets of Class A Shares $ 8,837,096 $148,495,044 $116,161,350 $ 84,775,156
Net Assets of Class B shares $ 2,829,870 $ 55,052,604 $ 61,373,047 $ 30,381,739
Net Assets of Class C shares $ 5,201,227 $ 32,415,508 $ 33,314,794 $ 15,523,823
Net Assets of Class Y shares $ 9,986 $ 27,792,389 $ 3,067,675 $ 4,607,030
=========== ============ ============ ============
Class A Shares outstanding 837,183 13,039,680 9,648,206 6,842,719
Class B Shares outstanding 270,995 5,040,999 5,617,589 2,565,553
Class C Shares outstanding 498,386 2,987,109 2,878,099 1,293,208
Class Y Shares outstanding 945 2,430,778 252,860 371,296
=========== ============ ============ ============
Net Asset Value - Class A Share $ 10.56 $ 11.39 $ 12.04 $ 12.39
Net Asset Value - Class B Share $ 10.44 $ 10.92 $ 10.93 $ 11.84
Net Asset Value - Class C Share $ 10.44 $ 10.85 $ 11.58 $ 12.00
Net Asset Value - Class Y Share $ 10.57 $ 11.43 $ 12.13 $ 12.41
=========== ============ ============ ============
MAXIMUM OFFERING PRICE:
Class A (100 [divided by] 94.25 x net asset
value per share) $ 11.20 $ 12.08 $ 12.77 $ 13.15
=========== ============ ============ ============
The accompanying notes are an integral part of these financial statements. 43
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 7/31/06
Conservative Moderate Growth Aggressive
Allocation Allocation Allocation Allocation
Fund Fund Fund Fund
INVESTMENT INCOME:
Dividend income from securities of
affiliated issuers $ 242,661 $ 4,122,869 $2,398,032 $ 953,880
Interest 41,985 415,999 10,572 5,153
---------- ------------ ---------- ----------
Total investment income $ 284,646 $ 4,538,868 $2,408,604 $ 959,033
---------- ------------ ---------- ----------
EXPENSES:
Management fees $ 11,708 $ 291,037 $ 210,884 $ 133,858
Transfer agent fees
Class A 5,949 114,236 173,895 138,987
Class B 3,963 106,473 156,636 84,773
Class C 2,556 32,110 41,626 23,759
Class Y 32 4,900 1,841 2,850
Distribution fees
Class A 11,445 298,560 213,727 148,675
Class B 15,998 451,366 471,666 239,890
Class C 26,134 245,331 245,704 114,977
Administrative fees 2,586 26,472 19,769 12,453
Custodian fees 19,368 98,353 77,530 50,503
Registration fees 39,582 85,654 64,642 50,721
Professional fees 56,674 48,653 51,519 50,547
Printing fees 18,070 53,384 26,174 39,789
Fees and expenses of nonaffiliated
trustees 6,042 12,839 8,263 7,650
Insurance expense 850 4,842 4,230 3,368
Miscellaneous 3,229 2,729 2,310 2,307
---------- ------------ ---------- ----------
Total expenses $ 224,186 $ 1,876,939 $1,770,416 $1,105,107
Less management fees waived and
expenses reimbursed by Pioneer
Investment Management, Inc. $ (116,034) - $ (21,585) $ (12,001)
---------- ------------ ---------- ----------
Net expenses $ 108,152 $ 1,876,939 $1,748,831 $1,093,106
---------- ------------ ---------- ----------
Net investment income (loss) $ 176,494 $ 2,661,929 $ 659,773 $ (134,073)
---------- ------------ --------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments $ (40,955) $ 4,746,124 $ 946,934 $2,029,517
Realized gain distributions from invest-
ment company shares 82,391 4,712,908 3,688,966 2,801,486
Change in net unrealized gain (loss) on
investments (36,031) (1,460,980) 3,158,797 1,495,849
---------- ------------ ---------- ----------
Net gain on investments 5,405 7,998,052 7,794,697 6,326,852
---------- ------------ ---------- ----------
Net increase in net assets resulting
from operations $ 181,899 $ 10,659,981 $8,454,470 $6,192,779
========== ============ ========== ==========
44 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Conservative Allocation Fund Moderate Allocation Fund
------------------------------- --------------------------------
Year 5/12/05* Year 8/9/04*
Ended to Ended to
7/31/06 7/31/05 7/31/06 7/31/05
FROM OPERATIONS:
Net investment income $ 176,494 $ 4,206 $ 2,661,929 $ 237,724
Net realized gain on investments 41,436 401 9,459,032 301,790
Change in net unrealized gain (loss)
on investments (36,031) 21,231 (1,460,980) 2,207,763
----------- ---------- ------------- ------------
Net increase in net assets
resulting from operations $ 181,899 $ 25,838 $ 10,659,981 $ 2,747,277
----------- ---------- ------------- ------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income
Class A $ (22,489) - $ (695,194) $ (45,923)
Class B (9,129) - (142,133) -
Class C (10,659) - (31,961) (4,387)
Class Y (6) - (334,603) -
Net realized gain on investments
Class A (3,055) - (2,636,349) (248,071)
Class B (1,240) - (1,086,431) (58,542)
Class C (1,448) - (524,670) (93,285)
Class Y (1) - (1,057,414) -
Return of capital
Class A - - - -
Class B - - - -
Class C - - - -
Class Y - - - -
----------- ---------- ------------- ------------
Total distributions
to shareowners $ (48,027) - $ (6,508,755) $ (450,208)
----------- ---------- ------------- ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $17,709,197 $1,451,162 $ 113,368,592 $ 59,474,035
Reinvestment of distributions 35,314 - 5,879,935 294,903
Cost of shares repurchased (2,777,184) (20) (73,049,619) (4,214,373)
Shares issued in reorganization - - 155,508,777 -
----------- ---------- ------------- ------------
Net increase in net assets
resulting from fund share
transactions $14,967,327 $1,451,142 $ 201,707,685 $ 55,554,565
----------- ---------- ------------- ------------
Net increase in net assets $15,101,199 $1,476,980 $ 205,858,911 $ 57,851,634
NET ASSETS:
Beginning of period $ 1,776,980 $ 300,000 $ 57,896,634 $ 45,000
----------- ---------- ------------- ------------
End of year $16,878,179 $1,776,980 $ 263,755,545 $ 57,896,634
=========== ========== ============= ============
Undistributed net investment
income, end of year $ 149,065 $ 4,801 $ 2,083,330 $ 159,804
=========== ========== ============= ============
* Commencement of operations
The accompanying notes are an integral part of these financial statements. 45
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
Growth Allocation Fund Aggressive Allocation Fund
---------------------------------- ----------------------------------
Year 8/9/04* Year 8/9/04*
Ended to Ended to
7/31/06 7/31/05 7/31/06 7/31/05
FROM OPERATIONS:
Net investment income (loss) $ 659,773 $ 85,313 $ (134,073) $ (21,217)
Net realized gain on investments 4,635,900 311,611 4,831,003 195,632
Change in net unrealized gain on
investments 3,158,797 2,659,540 1,495,849 1,805,652
------------ ----------- ------------ ------------
Net increase in net assets
resulting from operations $ 8,454,470 $ 3,056,464 $ 6,192,779 $ 1,980,067
------------ ----------- ------------ ------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income
Class A $ (345,018) $ (22,438) $ (73,792) -
Class B (82,794) - -
Class C - (2,600) - -
Class Y (39,851) - (25,479) -
Net realized gain on investments
Class A (902,786) (163,365) (1,223,951) (92,234)
Class B (577,319) (62,965) (567,882) (37,320)
Class C (261,229) (88,675) (231,664) (47,257)
Class Y (80,074) - (243,638) -
Return of capital
Class A - - - (16,797)
Class B - - (3,788)
Class C - - - (4,796)
Class Y - - - -
------------ ----------- ------------ -----------
Total distributions to
shareowners $ (2,289,071) $ (340,043) $ (2,366,406) $ (202,192)
------------ ----------- ------------ -----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $118,122,801 $56,458,098 $ 75,239,813 $33,604,731
Reinvestment of distributions 2,099,209 285,838 2,169,818 168,962
Cost of shares repurchased (36,958,781) (3,200,971) (30,943,807) (1,917,566)
Shares issued in reorganization 68,183,852 - 51,316,549 -
------------ ----------- ------------ -----------
Net increase in net assets
resulting from fund share
transactions $151,447,081 $53,542,965 $ 97,782,373 $31,856,127
------------ ----------- ------------ -----------
Net increase in net assets $157,612,480 $56,259,386 $101,608,746 $33,634,002
NET ASSETS:
Beginning of period 56,304,386 45,000 33,679,002 45,000
------------ ----------- ------------ -----------
End of year $213,916,866 $56,304,386 $135,287,748 $33,679,002
============ =========== ============ ===========
Undistributed net investment
income, end of year $ 672,433 $ 61,295 $ 75,141 $ -
============ =========== ============ ===========
* Commencement of operations
46 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For the Year Ended 7/31/06 and Period Ended 7/31/05
Conservative Allocation Fund
------------------------------------------------------------------------
'06 Shares '06 Amount '05 Shares '05 Amount
CLASS A
Shares sold 898,359 $9,400,261 75,252 $763,192
Reinvestment of distributions 2,031 21,079 - -
Less shares repurchased (148,457) (1,557,446) (2) (20)
-------- ---------- ------ --------
Net increase 751,933 $7,863,894 75,250 $763,172
======== ========== ====== ========
CLASS B
Shares sold 286,529 $2,974,458 11,447 $116,425
Reinvestment of distributions 835 8,620 - -
Less shares repurchased (37,816) (393,152) - -
-------- ---------- ------ --------
Net increase 249,548 $2,589,926 11,447 $116,425
======== ========== ====== ========
CLASS C
Shares sold 510,972 $5,324,478 56,247 $571,545
Reinvestment of distributions 544 5,615 - -
Less shares repurchased (79,377) (826,586) - -
-------- ---------- ------- --------
Net increase 432,139 $4,503,507 56,247 $571,545
======== ========== ====== ========
CLASS Y*
Shares sold 945 $ 10,000
Reinvestment of distributions - -
Less shares repurchased - -
-------- ----------
Net increase 945 $ 10,000
======== ==========
Moderate Allocation Fund
------------------------------------------------------------------------
'06 Shares '06 Amount '05 Shares '05 Amount
CLASS A
Shares sold 6,405,638 $ 72,857,111 3,174,114 $ 33,967,502
Reinvestment of distributions 269,424 3,009,471 17,263 185,747
Less shares repurchased (2,680,612) (30,546,449) (243,218) (2,627,215)
Shares issued in reorganization 6,095,571 68,142,545 - -
---------- ------------- --------- ------------
Net increase 10,090,021 $ 113,462,678 2,948,159 $ 31,526,034
========== ============= ========= ============
CLASS B
Shares sold 1,605,785 $ 17,587,651 956,645 $ 9,913,133
Reinvestment of distributions 105,082 1,131,732 5,162 53,946
Less shares repurchased (664,314) (7,283,351) (55,357) (574,934)
Shares issued in reorganization 3,086,496 33,269,915 - -
---------- ------------- --------- ------------
Net increase 4,133,049 $ 44,705,947 906,450 $ 9,392,145
========== ============= ========= ============
CLASS C
Shares sold 1,923,525 $ 20,933,219 1,516,928 $ 15,593,400
Reinvestment of distributions 33,895 362,338 5,329 55,210
Less shares repurchased (395,765) (4,288,391) (98,303) (1,012,224)
---------- ------------- --------- ------------
Net increase 1,561,655 $ 17,007,166 1,423,954 $ 14,636,386
========== ============= ========= ============
CLASS Y**
Shares sold 174,727 $ 1,990,611
Reinvestment of distributions 123,333 1,376,394
Less shares repurchased (2,706,254) (30,931,428)
Shares issued in reorganization 4,838,972 54,096,317
---------- -------------
Net increase 2,430,778 $ 26,531,894
========== =============
* Fund commenced operation on 10/5/05
** Fund commenced operation on 9/23/05
The accompanying notes are an integral part of these financial statements. 47
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
Moderate Allocation Fund
------------------------------------------------------------------------
'06 Shares '06 Amount '05 Shares '05 Amount
CLASS A
Shares sold 5,798,720 $ 69,197,676 2,872,133 $ 31,415,731
Reinvestment of distributions 99,749 1,172,050 15,346 168,809
Less shares repurchased (1,538,171) (18,428,645) (173,828) (1,918,265)
Shares issued in reorganization 2,572,757 29,688,353 - -
---------- ------------- --------- ------------
Net increase 6,933,055 $ 81,629,434 2,713,651 $ 29,666,275
========== ============= ========= ============
CLASS B
Shares sold 2,420,842 $ 26,412,340 1,032,426 $ 10,360,090
Reinvestment of distributions 59,006 631,954 5,558 56,193
Less shares repurchased (750,314) (8,164,423) (66,702) (673,461)
Shares issued in reorganization 2,915,273 30,697,135 - -
---------- ------------- --------- ------------
Net increase 4,644,807 $ 49,577,006 971,282 $ 9,742,822
========== ============= ========= ============
CLASS C
Shares sold 1,909,199 $ 21,909,801 1,389,335 $ 14,682,277
Reinvestment of distributions 17,009 192,886 5,702 60,836
Less shares repurchased (387,946) (4,507,506) (56,700) (609,245)
---------- ------------- --------- ------------
Net increase 1,538,262 $ 17,595,181 1,338,337 $ 14,133,868
========== ============= ========= ============
CLASS Y*
Shares sold 51,290 $ 602,984
Reinvestment of distributions 8,708 102,319
Less shares repurchased (482,918) (5,858,207)
Shares issued in reorganization 675,780 7,798,364
---------- -------------
Net increase 252,860 $ 2,645,460
========== =============
Aggressive Allocation Fund
------------------------------------------------------------------------
'06 Shares '06 Amount '05 Shares '05 Amount
CLASS A
Shares sold 4,278,800 $ 52,739,788 1,830,200 $ 20,539,993
Reinvestment of distributions 100,587 1,213,082 8,741 98,166
Less shares repurchased (1,049,894) (12,946,732) (90,484) (1,020,697)
Shares issued in reorganization 1,763,269 20,930,973 - -
---------- ------------- --------- ------------
Net increase 5,092,762 $ 61,937,111 1,748,457 $ 19,617,462
========== ============= ========= ============
CLASS B
Shares sold 958,460 $ 11,426,790 537,702 $ 5,801,097
Reinvestment of distributions 44,921 520,186 3,181 34,579
Less shares repurchased (311,556) (3,687,072) (29,240) (316,350)
Shares issued in reorganization 1,360,585 15,538,420 - -
---------- ------------- --------- ------------
Net increase 2,052,410 $ 23,798,324 511,643 $ 5,519,326
========== ============= ========= ============
CLASS C
Shares sold 838,226 $ 10,065,538 667,003 $ 7,263,641
Reinvestment of distributions 14,339 168,202 3,286 36,217
Less shares repurchased (178,514) (2,148,569) (52,632) (580,519)
---------- ------------- --------- ------------
Net increase 674,051 $ 8,085,171 617,657 $ 6,719,339
========== ============= ========= ============
CLASS Y*
Shares sold 84,627 $ 1,007,697
Reinvestment of distributions 22,288 268,348
Less shares repurchased (986,399) (12,161,434)
Shares issued in reorganization 1,250,780 14,847,156
---------- -------------
Net increase 371,296 $ 3,961,767
========== =============
* Fund commenced operation on 10/5/05
48 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Year 5/12/05 (a)
Ended To
7/31/06 7/31/05
CLASS A
Net asset value, beginning of period $ 10.29 $ 10.00
------- ---------
Increase from investment operations:
Net investment income (b) $ 0.25 $ 0.05
Net realized and unrealized gain on investments 0.09 0.24
------- ---------
Net increase from investment operations $ 0.34 $ 0.29
------- ---------
Distributions to shareowners:
Net investment income $ (0.06) $ -
Net realized gain (0.01) -
------- ---------
Net increase in net asset value $ 0.27 $ 0.29
------- ---------
Net asset value, end of period $ 10.56 $ 10.29
======= =========
Total return* 3.33% 2.90%***
Ratio of net expenses to average net assets+ 0.78% 0.78%**
Ratio of net investment income to average net assets 2.38% 2.26%**
Portfolio turnover rate 15% 9%**
Net assets, end of period (in thousands) $ 8,837 $ 877
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 2.12% 40.41%**
Net investment income (loss) 1.04% (37.37)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 49
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Conservative Allocation Fund
Year 5/12/05 (a)
Ended To
7/31/06 7/31/05
CLASS B
Net asset value, beginning of period $ 10.28 $ 10.00
------- ---------
Increase from investment operations:
Net investment income (b) $ 0.15 $ 0.03
Net realized and unrealized gain on investments 0.08 0.25
------- ---------
Net increase from investment operations $ 0.23 $ 0.28
------- ---------
Distributions to shareowners:
Net investment income $ (0.06) $ -
Net realized gain (0.01) -
------- ---------
Net increase in net asset value $ 0.16 $ 0.28
------- ---------
Net asset value, end of period $ 10.44 $ 10.28
======= =========
Total return* 2.26% 2.80%***
Ratio of net expenses to average net assets+ 1.68% 1.68%**
Ratio of net investment income to average
net assets 1.49% 1.23%**
Portfolio turnover rate 15% 9%**
Net assets, end of period (in thousands) $ 2,830 $ 221
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 3.08% 38.96%**
Net investment income (loss) 0.09% (36.05)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
50 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Year 5/12/05 (a)
Ended To
7/31/06 7/31/05
CLASS C
Net asset value, beginning of period $ 10.26 $ 10.00
------- ---------
Increase from investment operations:
Net investment income (b) $ 0.15 $ 0.03
Net realized and unrealized gain on investments 0.10 0.23
------- ---------
Net increase from investment operations $ 0.25 $ 0.26
------- ---------
Distributions to shareowners:
Net investment income $ (0.06) $ -
Net realized gain (0.01) -
------- ---------
Net increase in net asset value $ 0.18 $ 0.26
------- ---------
Net asset value, end of period $ 10.44 $ 10.26
======= =========
Total return* 2.46% 2.60%***
Ratio of net expenses to average net assets+ 1.68% 1.68%**
Ratio of net investment income to average
net assets 1.48% 1.17%**
Portfolio turnover rate 15% 9%**
Net assets, end of period (in thousands) $ 5,201 $ 679
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 2.80% 45.38%**
Net investment income (loss) 0.36% (42.53)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 51
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative
Allocation Fund
10/5/05 (a)
To
7/31/06
CLASS Y
Net asset value, beginning of period $ 10.32
-------
Increase from investment operations:
Net investment income (b) $ 0.16
Net realized and unrealized gain on investments 0.16
-------
Net increase from investment operations $ 0.32
-------
Distributions to shareowners:
Net investment income $ (0.06)
Net realized gain (0.01)
-------
Net increase in net asset value $ 0.25
-------
Net asset value, end of period $ 10.57
=======
Total return* 3.13%***
Ratio of net expenses to average net assets+ 1.23%**
Ratio of net investment income to average net assets 1.96%**
Portfolio turnover rate 15%
Net assets, end of period (in thousands) $ 10
Ratios with no waivers of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.19%**
Net investment income 0.98%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
52 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Moderate Allocation Fund
Year 8/9/04 (a)
Ended To
7/31/06 7/31/05
CLASS A
Net asset value, beginning of period $ 11.15 $ 10.00
-------- --------
Increase from investment operations:
Net investment income (b) $ 0.16 $ 0.15
Net realized and unrealized gain on investments 0.38 1.27
-------- --------
Net increase from investment operations $ 0.54 $ 1.42
-------- --------
Distributions to shareowners:
Net investment income $ (0.06) $ (0.04)
Net realized gain (0.24) (0.23)
-------- --------
Net increase in net asset value $ 0.24 $ 1.15
-------- --------
Net asset value, end of period $ 11.39 $ 11.15
======== ========
Total return* 4.98% 14.37%***
Ratio of net expenses to average net assets+ 0.63% 0.77%**
Ratio of net investment income to average net assets 1.40% 1.37%**
Portfolio turnover rate 52% 19%**
Net assets, end of period (in thousands) $148,495 $ 32,893
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.63% 1.26%**
Net investment income 1.40% 0.88%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 53
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Moderate Allocation Fund
Year 8/9/04 (a)
Ended To
7/31/06 7/31/05
CLASS B
Net asset value, beginning of period $ 10.77 $ 10.00
------- --------
Increase from investment operations:
Net investment income (b) $ 0.06 $ 0.02
Net realized and unrealized gain on investments 0.36 0.98
------- --------
Net increase from investment operations $ 0.42 $ 1.00
------- --------
Distributions to shareowners:
Net investment income $ (0.03) $ -
Net realized gain (0.24) (0.23)
------- --------
Net increase in net asset value $ 0.15 $ 0.77
------- --------
Net asset value, end of period $ 10.92 $ 10.77
======= ========
Total return* 4.00% 10.11%***
Ratio of net expenses to average net assets+ 1.51% 1.67%**
Ratio of net investment income to average
net assets 0.51% 0.16%**
Portfolio turnover rate 52% 19%**
Net assets, end of period (in thousands) $55,053 $ 9,781
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.51% 2.08%**
Net investment income (loss) 0.51% (0.25)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
54 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Moderate Allocation Fund
Year 8/9/04 (a)
Ended To
7/31/06 7/31/05
CLASS C
Net asset value, beginning of period $ 10.68 $ 10.00
------- -------
Increase from investment operations:
Net investment income (b) $ 0.07 $ 0.05
Net realized and unrealized gain on investments 0.35 0.87
------- -------
Net increase from investment operations $ 0.42 $ 0.92
------- -------
Distributions to shareowners:
Net investment income $ (0.01) $ (0.01)
Net realized gain (0.24) (0.23)
------- -------
Net increase in net asset value $ 0.17 $ 0.68
------- -------
Net asset value, end of period $ 10.85 $ 10.68
======= ========
Total return* 4.06% 9.32%***
Ratio of net expenses to average net assets+ 1.42% 1.67%**
Ratio of net investment income to average
net assets 0.60% 0.44%**
Portfolio turnover rate 52% 19%**
Net assets, end of period (in thousands) $32,416 $15,223
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.42% 2.03%**
Net investment income 0.60% 0.08%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 55
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Moderate
Allocation Fund
9/23/05 (a)
To
7/31/06
CLASS Y
Net asset value, beginning of period $ 11.18
-------
Increase from investment operations:
Net investment income (b) $ 0.17
Net realized and unrealized gain on investments 0.40
-------
Net increase from investment operations $ 0.57
-------
Distributions to shareowners:
Net investment income $ (0.08)
Net realized gain (0.24)
-------
Net increase in net asset value $ 0.25
-------
Net asset value, end of period $ 11.43
=======
Total return* 5.19%***
Ratio of net expenses to average net assets+ 0.28%**
Ratio of net investment income to average
net assets 1.79%**
Portfolio turnover rate 52%**
Net assets, end of period (in thousands) $27,792
Ratios with no waivers of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 0.28%**
Net investment income 1.79%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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. Total returns for periods less than one year are not annualized.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
56 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth Allocation Fund
Year 8/9/04 (a)
Ended To
7/31/06 7/31/05
CLASS A
Net asset value, beginning of period $ 11.50 $ 10.00
-------- --------
Increase from investment operations:
Net investment income (b) $ 0.09 $ 0.08
Net realized and unrealized gain on investments 0.63 1.70
-------- --------
Net increase from investment operations $ 0.72 $ 1.78
-------- --------
Distributions to shareowners:
Net investment income $ (0.05) $ (0.03)
Net realized gain (0.13) (0.25)
-------- --------
Net increase in net asset value $ 0.54 $ 1.50
-------- --------
Net asset value, end of period $ 12.04 $ 11.50
======== ========
Total return* 6.29% 17.96%***
Ratio of net expenses to average net assets+ 0.74% 0.81%**
Ratio of net investment income to average
net assets 0.74% 0.69%**
Portfolio turnover rate 27% 2%**
Net assets, end of period (in thousands) $116,161 $ 31,212
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.74% 1.42%**
Net investment income 0.74% 0.08%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 57
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth Allocation Fund
Year 8/9/04 (a)
Ended To
7/31/06 7/31/05
CLASS B
Net asset value, beginning of period $ 10.50 $ 10.00
------- --------
Increase from investment operations:
Net investment income (loss) (b) $ (0.01) $ 0.01
Net realized and unrealized gain on investments 0.59 0.74
------- --------
Net increase from investment operations $ 0.58 $ 0.75
------- --------
Distributions to shareowners:
Net investment income $ (0.02) $ -
Net realized gain (0.13) (0.25)
------- --------
Net increase in net asset value $ 0.43 $ 0.50
------- --------
Net asset value, end of period $ 10.93 $ 10.50
======= ========
Total return* 5.53% 7.59%***
Ratio of net expenses to average net assets+ 1.52% 1.71%**
Ratio of net investment income to average
net assets (0.04)% 0.05%**
Portfolio turnover rate 27% 2%
Net assets, end of period (in thousands) $61,373 $ 10,219
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.57% 2.27%**
Net investment income (loss) (0.08)% (0.51)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
58 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth Allocation Fund
Year 8/9/04 (a)
Ended To
7/31/06 7/31/05
CLASS C
Net asset value, beginning of period $ 11.10 $ 10.00
------- --------
Increase from investment operations:
Net investment income (loss) (b) $ - $ (0.01)
Net realized and unrealized gain on investments 0.61 1.37
------- --------
Net increase from investment operations $ 0.61 $ 1.36
------- --------
Distributions to shareowners:
Net investment income $ - $ (0.01)
Net realized gain (0.13) (0.25)
------- --------
Net increase in net asset value $ 0.48 $ 1.10
------- --------
Net asset value, end of period $ 11.58 $ 11.10
======= ========
Total return* 5.51% 13.67%***
Ratio of net expenses to average net assets+ 1.46% 1.71%**
Ratio of net investment income (loss) to average
net assets** 0.02% (0.07)%**
Portfolio turnover rate*** 27% 2%**
Net assets, end of period (in thousands) $33,315 $ 14,874
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.46% 2.13%**
Net investment income (loss) 0.02% (0.49)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 59
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth
Allocation Fund
9/23/05 (a)
To
7/31/06
CLASS Y
Net asset value, beginning of period $ 11.54
-------
Increase from investment operations:
Net investment income (b) $ 0.13
Net realized and unrealized gain on investments 0.65
-------
Net increase from investment operations $ 0.78
-------
Distributions to shareowners:
Net investment income $ (0.06)
Net realized gain (0.13)
-------
Net increase in net asset value $ 0.59
-------
Net asset value, end of period $ 12.13
=======
Total return* 6.84%***
Ratio of net expenses to average net assets+ 0.32%**
Ratio of net investment income to average net assets 1.23%**
Portfolio turnover rate 27%**
Net assets, end of period (in thousands) $ 3,068
Ratios with no waivers of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 0.32%**
Net investment income 1.23%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
60 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
Year 8/9/04 (a)
Ended To
7/31/06 7/31/05
CLASS A
Net asset value, beginning of period $ 11.82 $ 10.00
------- --------
Increase from investment operations:
Net investment income (b) $ 0.01 $ -
Net realized and unrealized gain on investments 0.85 2.14
------- --------
Net increase from investment operations $ 0.86 $ 2.14
------- --------
Distributions to shareowners:
Net investment income $ (0.02) $ -
Net realized gain (0.27) (0.27)
Return of capital - (0.05)
------- --------
Net increase in net asset value $ 0.57 $ 1.82
------- --------
Net asset value, end of period $ 12.39 $ 11.82
======= ========
Total return* 7.30% 21.57%***
Ratio of net expenses to average net assets+ 0.82% 0.86%**
Ratio of net investment income (loss) to average
net assets 0.10% (0.04%)**
Portfolio turnover rate 51% 3%**
Net assets, end of period (in thousands) $84,775 $ 20,689
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.82% 2.14%**
Net investment income (loss) 0.10% (1.31%)**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 61
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
Year 8/9/04 (a)
Ended To
7/31/06 7/31/05
CLASS B
Net asset value, beginning of period $ 11.39 $ 10.00
------- --------
Increase from investment operations:
Net investment (loss) (b) $ (0.08) $ (0.03)
Net realized and unrealized gain on investments 0.80 1.72
------- --------
Net increase from investment operations $ 0.72 $ 1.69
------- --------
Distributions to shareowners:
Net investment income - -
Net realized gain $ (0.27) $ (0.27)
Return of capital - (0.03)
------- --------
Net increase in net asset value $ 0.45 $ 1.39
------- --------
Net asset value, end of period $ 11.84 $ 11.39
======= ========
Total return* 6.36% 17.02%***
Ratio of net expenses to average net assets+ 1.64% 1.76%**
Ratio of net investment (loss) to average
net assets (0.70)% (0.26)%**
Portfolio turnover rate 51% 3%
Net assets, end of period (in thousands) $30,382 $ 5,845
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.69% 2.81%**
Net investment (loss) (0.75)% (1.31)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
62 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
Year 8/9/04 (a)
Ended To
7/31/06 7/31/05
CLASS C
Net asset value, beginning of period $ 11.54 $ 10.00
------- --------
Increase from investment operations:
Net investment (loss) (b) $ (0.08) $ (0.04)
Net realized and unrealized gain on investments 0.81 1.88
------- --------
Net increase from investment operations $ 0.73 $ 1.84
------- --------
Distributions to shareowners:
Net investment income $ - $ -
Net realized gain (0.27) (0.27)
Return of capital - (0.03)
------- --------
Net increase in net asset value $ 0.46 $ 1.54
------- --------
Net asset value, end of period $ 12.00 $ 11.54
======= ========
Total return* 6.37% 18.52%***
Ratio of net expenses to average net assets+ 1.56% 1.76%**
Ratio of net investment (loss) to average
net assets (0.64)% (0.39)%**
Portfolio turnover rate 51% 3%**
Net assets, end of period (in thousands) $15,524 $ 7,144
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.56% 2.74%**
Net investment (loss) (0.64)% (1.37)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 63
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive
Allocation Fund
9/23/05 (a)
To
7/31/06
CLASS Y
Net asset value, beginning of period $ 11.87
-------
Increase from investment operations:
Net investment income (b) $ 0.06
-------
Net realized and unrealized gain on investments 0.78
-------
Net increase from investment operations $ 0.84
-------
Distributions to shareowners:
Net investment income $ (0.03)
Net realized gain (0.27)
-------
Net increase in net asset value $ 0.54
-------
Net asset value, end of period $ 12.41
=======
Total return* 7.13%***
Ratio of net expenses to average net assets+ 0.37%**
Ratio of net investment income to average net assets 0.63%**
Portfolio turnover rate 51%**
Net assets, end of period (in thousands) $ 4,607
Ratios with no waivers of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 0.37%**
Net investment income 0.63%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not Annualized.
64 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/06
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Ibbotson Asset Allocation Series (the Trust) was organized as a Delaware
statutory trust on April 22, 2004 (amended July 1, 2004) and was registered with
the Securities and Exchange Commission under the Investment Company Act of 1940
(the 1940 Act) as an open-end management investment company. The Trust consists
of four separate funds, each issuing four classes of shares (collectively, the
Funds, individually, the Fund) as follows:
Pioneer Ibbotson Conservative Allocation Fund (Conservative Fund) Pioneer
Ibbotson Moderate Allocation Fund (Moderate Fund) Pioneer Ibbotson Growth
Allocation Fund (Growth Fund) Pioneer Ibbotson Aggressive Allocation Fund
(Aggressive Fund)
The investment objective of the Conservative Fund is to seek long-term capital
growth and current income. The Moderate Fund seeks long-term capital growth and
current income. The Growth Fund seeks long-term capital growth and current
income. The Aggressive Fund seeks long-term capital growth.
Each Fund is a "fund of funds," which means that it seeks to achieve its
investment objective by investing exclusively in other Pioneer Investment funds
("underlying funds") managed by Pioneer Investment Management, Inc. (PIM) rather
than direct investment in securities. In the future, the Funds also may invest
in regulated investment companies (Third Party Managed Assets) that are not
managed by PIM. The Funds indirectly pay a portion of the expenses incurred by
the underlying funds. Consequently, an investment in the Funds entails more
direct and indirect expenses than direct investment in the underlying funds.
Each Fund offers four classes of shares designated Class A, Class B, Class C and
Class Y. 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 distribution fees and have exclusive voting rights with respect to the
distribution plans that have been adopted by Class A, Class B and Class C
shareowners, respectively.
The financial statements have been prepared in accordance with United States
generally accepted accounting principles that require the management of the Fund
to make estimates and assumptions
65
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/06 (continued)
- --------------------------------------------------------------------------------
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses during the
reporting period. Actual results could differ from these estimates. The
following is a summary of significant accounting policies consistently followed
by the Trust in the preparation of its financial statements, which are in
conformity with those generally accepted in the investment company industry.
A. Security Valuation
Security transactions are recorded as of the trade date. The net asset value
is computed once daily, on each day the New York Stock Exchange (NYSE) is
open, as of the close of regular trading on the NYSE. In computing the net
asset value, holdings of mutual fund shares are valued at the net asset
value of each fund. Dividend income is recorded on the ex-dividend date.
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 Funds' policy to comply with the requirements of the Internal
Revenue Service Code applicable to regulated investment companies and to
distribute all taxable income and net realized capital gains, if any, to
shareholders. Therefore, no Federal income tax provisions are 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 Funds' 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 Pioneer Ibbotson Aggressive Allocation Fund had a net capital loss
carryforward of $1,622,949, which will expire in 2011 if not utilized.
66
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
At July 31, 2006, the Funds made reclassifications as listed below. These
reclassifications have no impact on the net asset values of the respective Funds
and are designed to present the Funds' capital accounts on a tax basis.
Undistributed Accumulated
Net Investment Realized Gain/ Paid-In
Portfolio Income (Loss) (Loss) Capital
- ------------------------------------------------------------------------------------------
Conservative Allocation Fund $10,052 $ (9,926) $ (126)
Moderate Allocation Fund 465,488 (5,201,426) 4,735,938
Growth Allocation Fund 419,028 (1,446,656) 1,027,628
Aggressive Allocation Fund 308,485 (4,616,245) 4,307,760
The tax character of distributions paid during the year ended July 31, 2006 was
as follows:
Ordinary Long-Term Return of
Fund Income Capital Gains Capital Total
- ---------------------------------------------------------------------------------------
Conservative Fund $ 42,282 $ 5,745 - $ 48,027
Moderate Fund 1,203,891 5,304,864 - 6,508,755
Growth Fund 467,663 1,821,408 - 2,289,071
Aggressive Fund 99,271 2,267,135 - 2,366,406
The tax character of distributions paid during the period ended July 31, 2005
was as follows:
Ordinary Long-Term Return of
Fund Income Capital Gains Capital Total
- ----------------------------------------------------------------------------------
Conservative Fund - - - -
Moderate Fund $115,810 $334,398 - $450,208
Growth Fund $ 55,896 $284,147 - $340,043
Aggressive Fund $ 1,317 $175,494 $25,381 $202,192
The following shows the components of distributable earnings on a federal income
tax basis at July 31, 2006:
Undistributed Undistributed Net Unrealized
Ordinary Long-Term Appreciation
Fund Income Capital Gains (Depreciation)
- -------------------------------------------------------------------------------
Conservative Fund $ 149,065 $ 54,123 $ (42,757)
Moderate Fund 2,083,330 1,198,296 8,903,320
Growth Fund 672,433 2,078,431 10,213,394
Aggressive Fund 75,141 870,314 8,818,941
67
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/06 (continued)
- --------------------------------------------------------------------------------
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
C. Fund Shares
The Board of Trustees has authorized the issuance of four classes of shares,
designated as Class A, Class B, Class C and Class Y. Additional classes of
shares have been authorized but are not referenced in the Fund's prospectus.
For the Conservative Allocation Fund, Class A, Class B and Class C shares
were offered for sale to the public on May 12, 2005. Class Y shares were
offered for sale to the public on October 5, 2005. For the Moderate
Allocation, Growth Allocation and Aggressive Allocation Funds, Class A,
Class B and Class C shares were offered for sale to the public on August 9,
2004. Class Y shares of the Funds were first publicly offered on the
following dates: Moderate Allocation on 9/26/05, Growth Allocation on
9/26/05 and Aggressive Allocation on 9/26/05. Shares of each class represent
an interest in the same portfolio of investments of the Fund and have equal
rights as to voting, redemptions, dividends and liquidation, except that the
level of transfer agent and distribution fees may differ among classes.
Class A, Class B, and Class C shareowners have exclusive voting rights with
respect to distribution plans for each class. There is no distribution plan
for Class Y.
The Funds record sales and repurchases of Fund shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Funds and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.
(UniCredito Italiano), earned the following in underwriting commissions
during the year ended July 31, 2006:
Fund Amount
- -------------------------------------
Conservative Fund $ 26,958
Moderate Fund $154,264
Growth Fund $241,185
Aggressive Fund $151,210
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of each Fund,
respectively, (see Note 4). Share owners of each class share all expenses
and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services,
68
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 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.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by each of the Funds 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 and Class C shares can bear different transfer
agent and distribution fees.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Funds, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of the purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Funds' custodian, or subcustodians. The Fund's
investment adviser, PIM is responsible for determining that the value of the
collateral remains at least equal to the repurchase price.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, is the Funds'
investment adviser, and manages the Funds' portfolios. Management fees are
calculated daily at the following annual rates on Pioneer managed assets:
Management Fee as a Percentage
of each Fund's Average
Fund Daily Net Assets
- ---- ------------------------------
Conservative Fund 0.13%
Moderate Fund 0.13%
Growth Fund 0.13%
Aggressive Fund 0.13%
For each Fund, management fees will be calculated daily at a 0.17% annual rate
on any Third Party managed assets.
69
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/06 (continued)
- --------------------------------------------------------------------------------
PIM has entered into a sub-advisory agreement with Ibbotson Associates, LLC.
PIM, not the Funds, pays a portion of the fee it receives from each Fund to
Ibbotson Associates as compensation for its services to the Funds.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Funds. At July 31, 2006, the following fees were
payable to PIM relating to management fees and certain other services and are
included in due to affiliates:
Fund Amount
- ---- ------
Conservative Fund $30,447
Moderate Fund $56,463
Growth Fund $43,739
Aggressive Fund $33,409
From August 1, 2005 through August 31, 2005, PIM did not impose all or a portion
of its management fees and assumed other operating expenses of the Funds to the
extent necessary to limit Class A, Class B and Class C expenses to the following
annual expense limitations:
Fund Class A Class B Class C
- --------------------------------------------------------------------------------
Conservative Fund .78% 1.68% 1.68%
Moderate Fund .74% 1.64% 1.64%
Growth Fund .79% 1.69% 1.69%
Aggressive Fund .85% 1.75% 1.75%
Effective September 1, 2005, PIM has further agreed to not impose all or a
portion of its management fees and assume other operating expenses of the Funds
to the extent necessary to limit Class A, Class B and Class C expenses to the
following annual expense limitations:
Fund Class A Class B Class C
- --------------------------------------------------------------------------------
Conservative Fund .78% 1.68% 1.68%
Moderate Fund .74% 1.52% 1.52%
Growth Fund .79% 1.57% 1.57%
Aggressive Fund .85% 1.64% 1.64%
70
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
3. Transfer Agent
PIMSS provides substantially all transfer agent and shareowner services to the
Funds at negotiated rates. Included in due to affiliates are the following
amounts of transfer agent fees payable to PIMSS at July 31, 2006:
Fund Amount
- ---- ------
Conservative Fund $ 1,274
Moderate Fund $12,445
Growth Fund $34,442
Aggressive Fund $15,631
4. Distribution and Service Plans
The Funds have adopted Plans of Distribution with respect to Class A, Class B
and Class C shares (Class A Plan, Class B Plan and Class C Plan, respectively)
in accordance with Rule 12b-1 of the Investment Company Act of 1940. Pursuant to
the Class A Plan, the Funds pay PFD a service fee of up to 0.25% of the Fund's
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
Funds pay 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. At July 31,
2006 the following fees were payable to PFD relating to distribution and service
fees and are included in due to affiliates:
Fund Amount
- ---- ------
Conservative Fund $ 8,783
Moderate Fund $106,519
Growth Fund $104,531
Aggressive Fund $ 57,858
71
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/06 (continued)
- --------------------------------------------------------------------------------
In addition, redemptions of each class of 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 five years of purchase will be 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%. For the year ended July 31,
2006, the following CDSC's were paid to PFD:
Fund Amount
- ---- ------
Conservative Fund $ 6,829
Moderate Fund $139,244
Growth Fund $152,049
Aggressive Fund $ 80,172
5. Merger Information
On September 22, 2005, the beneficial owners of certain AmSouth Funds approved a
proposed merger agreement and Plan of Reorganization that provided for the
mergers listed below. These tax-free reorganizations were accomplished on
September 26, 2005 by exchanging all of the AmSouth Fund's net assets for shares
of the applicable Pioneer Ibbotson Fund, based upon the Fund's Class A, Class B
and Class Y shares' ending net asset values, respectively. The following charts
show the details of the reorganizations as of that closing date ("Closing
Date"):
72
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Pioneer AmSouth AmSouth Pioneer
Moderate Growth and Moderate Growth Moderate
Allocation Fund Income Fund and Income Fund Allocation Fund
(Pre-Reorganization) (Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- --------------------------------------------------------------------------------------------------------------------------
Net Assets
Class A $40,918,497 $ 47,985,562 $20,156,983 $109,061,042
Class B $11,519,608 $ 19,432,527 $13,837,388 $ 44,789,524
Class C $17,124,590 $ 17,124,590
Class Y $ 54,096,317
Class I $ 40,453,115 $13,643,202
Total Net Assets $69,562,695 $107,871,204 $47,637,573 $225,071,473
Shares
Outstanding
Class A 3,660,813 4,708,295 2,060,226 9,756,384
Class B 1,068,504 1,914,637 1,423,053 4,155,001
Class C 1,602,231 1,602,231
Class Y 4,838,972
Class I 3,953,925 1,390,285
Shares Issued in
Reorganization
Class A 6,095,571
Class B 3,086,496
Class Y 4,838,972
Unrealized
Appreciation Accumulated Gain
On Closing On Closing
Date Date
- --------------------------------------------------------------------------------
AmSouth Growth and
Income Fund $8,743,400 $2,595,540
AmSouth Moderate Growth
and Income Fund $1,726,341 $ 851,251
73
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/06 (continued)
Pioneer Growth AmSouth Pioneer Growth
Allocation Fund Growth Fund Allocation Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- --------------------------------------------------------------------------------------------------------------------------
Net Assets
Class A $38,438,637 $29,688,353 $ 68,126,990
Class B $12,106,330 $30,697,135 $ 42,803,465
Class C $16,868,540 $ 16,868,540
Class Y $ 7,798,364
Class I $ 7,798,364
Total Net Assets $67,413,507 $68,183,852 $135,597,359
Shares
Outstanding
Class A 3,332,335 3,007,670 5,905,091
Class B 1,149,798 3,155,064 4,065,072
Class C 1,516,287 1,516,287
Class Y 675,780
Class I 786,487
Shares Issued in
Reorganization
Class A 2,572,757
Class B 2,915,273
Class Y 675,780
Unrealized
Appreciation Accumulated Gain
On Closing On Closing
Date Date
- --------------------------------------------------------------------------------
AmSouth Growth Fund $5,108,682 $1,905,046
74
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Pioneer Aggressive AmSouth Aggressive Pioneer Aggressive
Allocation Fund Growth Fund Allocation Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets
Class A $25,582,418 $20,930,973 $46,513,391
Class B $ 7,003,626 $15,538,420 $22,542,046
Class C $ 8,276,330 $ 8,276,330
Class Y $14,847,156
Class I $14,847,156
Total Net Assets $40,862,374 $51,316,549 $92,178,923
Shares
Outstanding
Class A 2,154,549 2,128,158 3,917,819
Class B 613,143 1,653,405 1,973,727
Class C 715,365 715,365
Class Y 1,250,780
Class I 1,509,339
Shares Issued in
Reorganization
Class A 1,763,269
Class B 1,360,585
Class Y 1,250,780
Unrealized
Appreciation Accumulated Gain
On Closing On Closing
Date Date
- --------------------------------------------------------------------------------
AmSouth Aggressive
Growth Fund $6,818,836 $1,802,796
75
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/06 (continued)
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION (unaudited)
For the fiscal year ended July 31, 2006, certain dividends paid by the Funds may
be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth
Tax Relief Reconciliation Act (the Act) of 2003. The Funds designated up to the
maximum amount of such dividends allowable under the Act, as taxed at a maximum
rate of 15%. Complete information was computed and reported in conjunction with
your 2005 Form 1099-DIV.
The qualifying percentage of ordinary income dividends for the purposes of the
corporate dividends received deduction was:
Moderate Fund 20.29%
Growth Fund 47.65%
Aggressive Fund 100.00%
Conservative Fund 7.80%
76
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of
Pioneer Ibbotson Asset Allocation Series:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Pioneer Ibbotson Asset Allocation Series (the
"Funds", comprising, respectively, the Pioneer Ibbotson Conservative Allocation
Fund, the Pioneer Ibbotson Moderate Allocation Fund, the Pioneer Ibbotson Growth
Allocation Fund and the Pioneer Ibbotson Aggressive Allocation Fund) as of July
31, 2006, and the related statements of operations for the year then ended, and
the statements of changes in net assets and financial highlights for each of the
periods indicated therein. These financial statements and financial highlights
are the responsibility of the Funds' management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of July 31, 2006, by correspondence with the Funds'
custodian and the transfer agent of the underlying funds. 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 each
of the respective Funds constituting the Pioneer Ibbotson Asset Allocation
Series at July 31, 2006, the results of their operations, the changes in their
net assets and the financial highlights for each of the periods then ended, in
conformity with U.S. generally accepted accounting principles.
/s/Ernest & Young LLP
Boston, Massachusetts
September 15, 2006
77
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Investment Subadviser
Ibbotson Associates Advisors, LLC
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 may serve as a
trustee of each of the 91 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). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at www.pioneerinvestments.com and on the SEC's web site at http://www.sec.gov.
78
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
John F. Cogan, Jr. (80)* Chairman of the Trustee since 2004.
Board, Trustee Serves until successor
and President trustee is elected or
earlier retirement or
removal.
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
John F. Cogan, Jr. (80)* Deputy Chairman and a Director of Pioneer Global Asset Chairman (until
Management S.p.A. ("PGAM"); Non-Executive Chairman June 2006) and Director
and a Director of Pioneer Investment Management USA of ICI Mutual Insurance
Inc. ("PIM-USA"); Chairman and a Director of Pioneer; Company; Director
Chairman and Director of Pioneer Institutional Asset of Harbor
Management, Inc. (since 2006), Director of Pioneer Global Company, Ltd.
Alternative Investment Management Limited (Dublin);
President and a Director of Pioneer Alternative
Investment Management (Bermuda) Limited and
affiliated funds; Director of PIOGLOBAL Real Estate
Investment Fund (Russia) (until June 2006); Director
of Nano-C, Inc. (since 2003); Director of Cole
Investment Corporation (since 2004); Director of
Fiduciary Counseling, Inc.; President and Director of
Pioneer Funds Distributor, Inc. ("PFD") (until May
2006); President of all of the Pioneer Funds; and Of
Counsel, Wilmer Cutler Pickering Hale and Dorr LLP
(counsel to PIM-USA and the Pioneer Funds)
*Mr. Cogan is an Interested Trustee because he is an officer or director of Pioneer and certain of its affiliates.
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
David R. Bock (62)** Trustee Trustee since 2005.
3050 K. Street NW, Serves until successor
Washington, DC 20007 trustee is elected or
earlier retirement or
removal.
David R. Bock (62)** Senior Vice President and Chief Financial Officer, I-trax, Director of The Enterprise
3050 K. Street NW, Inc. (publicly traded health care services company) Social Investment Company
Washington, DC 20007 (2001 - present); Managing Partner, Federal City (privately-held affordable
Capital Advisors (boutique merchant bank) (2002 housing finance company);
to 2004); Executive Vice President and Chief Financial Director of New York
Officer, Pedestal Inc. (internet-based mortgage trading Mortgage Trust (publicly
company) (2000 - 2002). traded mortgage REIT)
**Mr. Bock became a Trustee of the Fund on January 1, 2005.
- ------------------------------------------------------------------------------------------------------------------------------------
79
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
Mary K. Bush (58) Trustee Trustee since 2004.
3509 Woodbine Street, Serves until successor
Chevy Chase, MD 20815 trustee is elected or
earlier retirement or
removal.
- --------------------------------------------------------------------------------
Margaret B.W. Graham (59) Trustee Trustee since 2004.
1001 Sherbrooke Street West, Serves until successor
Montreal, Quebec, Canada trustee is elected or
H3A 1G5 earlier retirement or
removal.
- --------------------------------------------------------------------------------
Thomas J. Perna (55) Trustee Trustee since February
89 Robbins Avenue, 2006. Serves until
Berkeley Heights, NJ 07922 successor trustee is
elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Marguerite A. Piret (58) Trustee Trustee since
One Boston Place, 28th Floor, 2004.Serves until
Boston, MA 02108 successor trustee
is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
Mary K. Bush (58) President, Bush International (international financial Director of Brady
3509 Woodbine Street, advisory firm). Corporation (industrial
Chevy Chase, MD 20815 identification and specialty
coated material products
manufacturer), Director of
Briggs & Stratton Co.
(engine manufacturer)
Director of Mortgage
Guaranty Insurance
Corporation, and Director
of UAL Corporation (airline
holding company)
- ------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (59) Founding Director, The Winthrop Group, Inc. None
1001 Sherbrooke Street West, (consulting firm); Desautels, Faculty of Management,
Montreal, Quebec, Canada McGill University.
H3A 1G5
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (55) Private investor (2004 - present); Senior Executive Director of Quadriserv Inc.
89 Robbins Avenue, Vice President, The Bank of New York (financial and (technology products for
Berkeley Heights, NJ 07922 securities services) (1986 - 2004). securities lending
industry)
- ------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (58) President and Chief Executive Officer, Newbury, Piret & Director of New America
One Boston Place, 28th Floor, Company, Inc. (investment banking firm). High Income Fund, Inc.
Boston, MA 02108 (closed-end investment
company)
- ------------------------------------------------------------------------------------------------------------------------------------
80
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
John Winthrop (70) Trustee Trustee since
One North Adgers Wharf, 2004.Serves until
Charleston, SC 29401 successor trustee
is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
John Winthrop (70) President, John Winthrop & Co., Inc. None
One North Adgers Wharf, (private investment firm).
Charleston, SC 29401
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Osbert M. Hood (53)** Executive Vice Trustee since 2004.
President Serves at the
discretion of Board.
- --------------------------------------------------------------------------------
Dorothy E. Bourassa (58) Secretary Since 2004.
Serves at the
discretion of Board.
- --------------------------------------------------------------------------------
Osbert M. Hood (53)** President and Chief Executive Officer, PIM-USA since Trustee of certain
May 2003 (Director since January 2001; Executive Vice Pioneer Funds.
President and Chief Operating Officer from November
2000 - May 2003); Director of PGAM since June 2003;
President and Director of Pioneer since May 2003;
President and Director of Pioneer Institutional Asset
Management, Inc. since February 2006; Chairman and
Director of Pioneer Investment Management Shareholder
Services, Inc. ("PIMSS") since May 2003; Director of
PFD since May 2006; Director of Oak Ridge
Investments, L.L.C. (a registered investment adviser
in which PIM USA owns a minority interest) since
January 2005; Director of Vanderbilt Capital
Advisors, LLC (an institutional investment adviser
wholly-owned by PIM USA) since June 2006; Executive
Vice President of all of the Pioneer Funds since June
2003
- ------------------------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (58) Secretary of PIM-USA; Senior Vice President - Legal None
of Pioneer; and Secretary/Clerk of most of PIM-USA's
subsidiaries; Secretary of all of the Pioneer Funds
since September 2003 (Assistant Secretary from
November 2000 to September 2003).
- ------------------------------------------------------------------------------------------------------------------------------------
81
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
Christopher J. Kelley (41) Assistant Secretary Since 2004.
Serves at the
discretion of Board.
- --------------------------------------------------------------------------------
Christopher P. Harvey (45) Assistant Secretary Since 2006.
Serves at the
discretion of Board.
- --------------------------------------------------------------------------------
Vincent Nave (61) Treasurer Since 2004.
Serves at the
discretion of Board.
- --------------------------------------------------------------------------------
Mark E. Bradley (46) Assistant Treasurer Since 2004.
Serves at the
discretion of Board.
- --------------------------------------------------------------------------------
Luis I. Presutti (41) Assistant Treasurer Since 2004.
Serves at the
discretion of Board.
- --------------------------------------------------------------------------------
Gary Sullivan (48) Assistant Treasurer Since 2004.
Serves at the
discretion of Board.
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
Christopher J. Kelley (41) 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; Assistant Secretary of all Pioneer
Funds since September 2003.
- ------------------------------------------------------------------------------------------------------------------------------------
Christopher P. Harvey (45) Partner, Wilmer Cutler Pickering Hale and Dorr LLP; and None
Assistant Secretary of all Pioneer Funds since
July 2006.
- ------------------------------------------------------------------------------------------------------------------------------------
Vincent Nave (61) Vice President - Fund Accounting, Administration None
and Controllership Services of Pioneer; and Treasurer
of all of the Pioneer Funds.
- ------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (46) Deputy Treasurer of Pioneer since 2004; Treasurer None
- ------------------------------------------------------------------------------------------------------------------------------------
and Senior Vice President, CDC IXIS Asset
Management Services from 2002 to 2003; Assistant
Treasurer and Vice President, MFS Investment
Management from 1997 to 2002; and Assistant
Treasurer of all of the Pioneer Funds since
November 2004.
- ------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (41) Assistant Vice President - Fund Accounting, None
Administration and Controllership Services of Pioneer;
and Assistant Treasurer of all of the Pioneer Funds.
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (48) Fund Accounting Manager - Fund Accounting, None
Administration and Controllership Services of
Pioneer; and Assistant Treasurer of all of the
Pioneer Funds since May 2002.
- ------------------------------------------------------------------------------------------------------------------------------------
82
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
Katherine Kim Sullivan (32) Assistant Treasurer Since 2004.
Serves at the
discretion of Board.
- ------------------------------------------------------------------------------------------------
Terrence J. Cullen (45) Chief Compliance Since 2006.
Officer Serves at the
discretion of Board.
- ------------------------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
Katherine Kim Sullivan (32) Fund administration Manager - Fund Accounting, None
Administration and Controllership 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 Controllership Services (Fund Accounting Manager
from August 1999 to May 2002) and Assistant
Treasurer of all Pioneer Funds since September 2003.
- ------------------------------------------------------------------------------------------------------------------------------------
Terrence J. Cullen (45) Chief Compliance Officer of Pioneer and Pioneer None
Funds since March 2006; Vice President and Senior
Counsel of Pioneer since September 2004; and
Senior Vice President and Counsel, State Street
Research & Management Company (February 1998
to September 2004).
- ------------------------------------------------------------------------------------------------------------------------------------
The outstanding capital stock of PFD, PIM and PIMSS is indirectly wholly owned
by UniCredito Italiano S.p.A. ("UniCredito Italiano"), one of the largest
banking groups in Italy. PIM, the Fund's investment adviser, provides investment
management and financial services to mutual funds, institutional and other
clients.
83
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
84
- --------------------------------------------------------------------------------
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
FactFoneSM 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
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our website: www.pioneerinvestments.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. To obtain a
prospectus and for other information on any Pioneer fund, call 1-800-225-6292 or
visit our website www.pioneerfunds.com.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(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 Series, including fees
associated with the filings of its Form N-1A, totaled
approximately $132,940 in 2006 and approximately
$132,000 in 2005.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no audit-related services in 2006 or 2005.
(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 $28,560 in 2006 and $27,200 in 2005.
(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 July 31, 2006 and 2005.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered into on
or after May 6, 2003, the effective date of the new SEC pre-
approval rules, the Fund's audit committee is required to
pre-approve services to affiliates defined by SEC rules to the
extent that the services are determined to have a direct
impact on the operations or financial reporting of the Fund.
For the years ended July 31, 2006 and 2005, there were no
services provided to an affiliate that required the Fund's
audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and affiliates, as
previously defined, totaled approximately $28,560 in 2006
and $27,200 in 2005.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's independent auditor, Ernst &
Young LLP ("E&Y"), has advised the Audit
Committee of the Fund's Board of Trustees that
E&Ys Spanish affiliate (E&Y Spain) performed
certain non-audit work for Pioneer Global
Investments Limited ("PGIL"), an affiliate of the
Funds investment adviser. The services involved
the receipt and disbursement of monies transferred
to E&Y Spain by PGIL in payment of individual
payroll and related income tax withholdings due on
returns prepared by E&Y Spain for certain PGIL
employees located in Spain from February 2001 to
October 2005. E&Y became auditors of the Fund in
May 2002. These payroll and tax services were
discontinued in November 2005. The annual fee
received by E&Y Spain for all such services totaled
approximately 9,000 Euro per year. E&Y has informed
the Audit Committee that based on its internal
reviews and the de minimus nature of the services
provided and fees received, E&Y does not believe
its independence with respect to the Fund has been
impaired or that it is disqualified from acting as
independent auditors to the Fund.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer and principal financial
officer have concluded, that the registrant's disclosure controls and
procedures are effective based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal 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.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Ibbotson Asset Allocation Series
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date September 29, 2006
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 September 29, 2006
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date September 29, 2006
* Print the name and title of each signing officer under his or her signature.