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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-02864
Pioneer Bond Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: June 30
Date of reporting period: July 1, 2007 through December 31, 2007
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
-----------------------
BOND FUND
PIOBX
Ticker Symbol
Semiannual
Report
12/31/07
[LOGO] PIONEER
Investments (R)
Table of Contents
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Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 17
Schedule of Investments 19
Financial Statements 34
Notes to Financial Statements 44
Approval of Investment Advisory Agreement 52
Trustees, Officers and Service Providers 56
President's
Dear Shareowner,
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Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. They
were particularly useful guides in the second half of 2007, when an otherwise
healthy long-term bull market was buffeted by problems in the financial
services industry and the emergence of worries about a slowing economy.
After an extended period of steady growth with sustained low unemployment and
low inflation, the U.S. economy ran into difficulty as 2007 drew to a close.
Problems in the financial system tied to poor practices in the mortgage
financing industry and the end of home price appreciation forced investors and
bankers to mark down the value of assets on their balance sheets by over one
hundred billion dollars. A late-summer credit crunch forced central banks in
the United States and Europe to act in the role of "lender of last resort" to
keep credit markets functioning. As the repercussions of the credit crunch and
falling home prices were felt in the real economy, unemployment rose and
consumer confidence fell. Inflation concerns moved to the back burner for the
Federal Reserve, which lowered interest rates, first gradually, then more
rapidly, as concern grew that falling home prices and disruptions in financial
markets posed a significant threat to economic growth.
Against this "wall of worry" backdrop, the performance of major asset classes
in the second half of 2007 was mixed. The Standard & Poor's 500 Index fell 1%
in the second half of 2007, the Dow Jones Industrial Average was flat, and the
NASDAQ Composite Index rose 2%. The MSCI EAFE Developed Market Index was also
flat for the second half of 2007, while the MSCI Emerging Markets Index rose
19% over the same period. The U.S. investment-grade bond market, as measured by
the Lehman Aggregate Bond Index, rose 6%, while the U.S. high-yield bond
market, as measured by the Merrill Lynch High Yield Bond Master II Index, fell
1%, as its higher-coupon yields could not compensate for falling bond prices as
credit spreads (differences between yields of higher- and lower-quality bonds)
widened during the second half of 2007.
2
Letter
Sudden swings in the markets are always to be expected. The history of the
stock market demonstrates that sharp market downturns are frequently followed
by strong recoveries, but they are also difficult to time. Just as staying
diversified and invested are important investment principles, it is also
important to pay attention to asset allocation. As always, we encourage you to
work closely with your financial advisor to find the mix of stocks, bonds and
money market assets that is best aligned to your particular risk tolerance and
investment objective.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, 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 Bond Fund
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/07
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The environment for fixed-income securities changed markedly during the second
half of 2007, as signs of a weakening economy resulted in a general flight to
the highest-quality securities. Strong economic growth trends had supported
higher-yielding, lower-quality securities in the first half of the year.
However, as evidence grew of a deceleration in economic growth, investors moved
away from higher-yielding, credit-sensitive securities, seeking lower-yielding,
but higher credit quality issues. In the following interview, Kenneth J. Taubes
discusses the factors that influenced the performance of Pioneer Bond Fund
during the six months ending December 31, 2007. Mr. Taubes, Director of
Pioneer's Fixed income Group, is responsible for the daily management of the
Fund.
Q: How did the Fund perform during the last half of 2007?
A: Pioneer Bond Fund did very well against competitive funds during the
period, but its focus on yield-oriented securities caused it to lag
benchmarks more influenced by the performance of higher-quality,
lower-yielding securities. The Fund's Class A shares returned 5.51% at net
asset value for the six months ending December 31, 2007, trailing the 5.93%
return of the Lehman Aggregate Bond Index for the same period. However, the
Fund's return was substantially better than the 3.80% average return of the
175 funds in Lipper's Corporate Debt A-rated category for the same period.
On December 31, 2007, the 30-day SEC yield of Class A shares was 4.07%.
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.
Q: What were the principal factors affecting Fund performance during the six
months?
A: Economic growth, which maintained a brisk pace during the first half of
2007, showed clear signs of deceleration during the second half. The causes
of this slowing were complex, but the first
4
Pioneer Bond Fund
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signs appeared in the most vulnerable part of the economy - residential
housing. The yield curve - which reflects the differences in yields
between shorter-maturity and longer-maturity securities - had been
inverted for much of 2006 and the first part of 2007. This unusual
phenomenon occurs when the normal yield relationships are reversed and
shorter-maturity securities offer higher yields than longer-maturity
securities. Inverted yield curves - which make it difficult for
traditional lending activity to be profitable - often precede slumps in
the economy. Residential housing is a central part of the economy, but it
also was the weakest link in an era in which lending standards were
declining even as home prices were rising dramatically over the previous
years. As the housing market began weakening, mortgage defaults rose,
institutions began writing down the value of assets on their balance
sheets, lending activity became increasingly restricted and the nation's
banking system was disrupted. The effects began to spread from the housing
market into the general economy, which showed clear signs of a
deceleration in the final quarter of the year. During the last three
months of 2007, evidence grew of a slowing in job growth and consumer
spending, accompanied by rising inflationary pressures from increasing
energy, health care and food costs.
The Federal Reserve Board - the nation's central bank - had begun to
inject new liquidity into the financial system in late summer, and by the
end of 2007 the key Federal funds target rate had been lowered from 5.25%
to 4.25%. The yield curve became more normalized, with short-term interest
rates declining much more dramatically than long-term rates. As the year
ended, the financial markets anticipated that the Fed would make further
rate cuts in 2008 to re-monetize the financial system and restore a more
stable environment that would allow bank lending activity to increase.
In this environment, fixed-income sectors that offered yield advantages
over Treasuries lagged the return of U.S. Treasuries, with high-yield and
investment-grade corporate bonds generally declining in price. Treasuries
were the best-performing parts of the fixed-income market in 2007,
followed by government agency mortgage securities. Among Treasuries,
Treasury Inflation Protected Securities (TIPS) and short-to-intermediate
Treasuries performed well.
5
Pioneer Bond Fund
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/07 (continued)
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Q: What were your strategies for the Fund during this period, and how did they
affect performance?
A: Our general long-term strategy is to invest in securities that can generate
yield advantages for the Fund. However, we upgraded the overall credit
quality of the Fund in the second half of 2007 as a defensive measure. We
lowered exposures to both lower-rated, high-yield corporates and
investment-grade corporates. As we did so, we increased exposure to
government agency mortgage securities and Treasuries, especially TIPS.
Our focus on better yielding sectors caused us to be underweighted in
Treasuries, which outperformed other parts of the market and led to the
underperformance relative to the Lehman indexes for the period.
Nevertheless, our emphasis on government agency mortgages and TIPS, and our
de-emphasis of corporate bonds in general helped us significantly
outperform most competitive portfolios. Government agency mortgages trailed
Treasuries on a total return basis, as Treasuries tended to have better
price performance, but agency mortgages outperformed all grades of
corporate bonds, helping the Fund's relative performance. Toward the end of
the fiscal year, after significant underperformance by corporate debt, we
did take advantage of widened yield spreads and began to increase our
exposure to attractively priced corporate bonds, although corporates
remained underweighted. On December 31, 2007, the end of the fiscal period,
the average credit quality of Fund holdings was AA.
As market interest rates declined earlier in 2007, we also had lengthened
the Fund's duration - or, price sensitivity to interest rate changes. At
the end of the year, however, we moved to a more neutral positioning with
respect to interest rate risk. On December 31, 2007, the Fund's effective
duration was 4.54 years, and the average maturity of holdings was 6.66
years.
Q: Did any individual investments a have noteworthy impact on Fund results for
the second half of 2007?
A: Among the Fund's corporate bond investments, we generally de-emphasized
bonds of financial services companies. However, the Fund did hold positions
in several bonds issued by insurance companies that we believed were less
vulnerable to the effects of the credit downturn. Several of these holdings
performed well,
6
Pioneer Bond Fund
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including bonds of Hanover Insurance. The Fund also invested selectively in
some bank loans that offered greater investor protection than corporate
bonds. Loans issued to Metavante, which provides software systems to
smaller banks, contributed positively to results during the period, as did
the Fund's position in bonds of Hospital Corporation of America, or HCA.
Detractors from Fund performance included bonds of Station Casinos, which
issued new debt in a leveraged buyout plan, hurting existing bondholders.
Also holding back results was the Fund's investment in SASC securities,
which were commercial collateralized mortgage obligations.
Q: What is your investment outlook?
A: We believe the Federal Reserve will continue to reduce short-term
interest rates in 2008, and the yield curve should continue to steepen,
increasing the profitability of bank lending as the differences between
short-term borrowing costs and long-term lending rates increase.
Treasuries, after outperforming in 2007, look less attractive. As we move
ahead, we may increase the Fund's positions in attractively valued
corporate bonds and non-agency mortgage securities.
When interest rates rise, the prices of fixed-income securities in the Fund
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Prepayment risk is the chance that mortgage-backed bonds will be paid off early
if falling interest rates prompt homeowners to refinance their mortgages.
Forced to reinvest the unanticipated proceeds at lower interest rates, the Fund
would experience a decline in income and lose the opportunity for additional
price appreciation associated with falling interest rates. Investments in
high-yield or lower-rated securities are subject to greater-than-average risk.
The securities issued by U.S. Government sponsored entities (i.e., FNMA,
Freddie Mac) are neither guaranteed nor issued by the U.S. Government. The
portfolio may invest in mortgage-backed securities, which during times of
fluctuating interest rates
7
Pioneer Bond Fund
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/07 (continued)
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may increase or decrease more than other fixed-income securities.
Mortgage-backed securities are also subject to pre-payments. At times, the
Fund's investments may represent industries or industry sectors that are
interrelated or have common risks, making it more susceptible to any economic,
political, or regulatory developments or other risks affecting those industries
and sectors.
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 opinions 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.
8
Pioneer Bond Fund
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PORTFOLIO SUMMARY 12/31/07
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[The following data is represented by a pie chart in the printed material]
U.S. Government Securities 69.1%
U.S. Corporate Bonds 20.5%
Collateralized Mortgage Obligations 4.0%
Asset Backed Securities 3.7%
Senior Secured Loans 1.9%
Temporary Cash Investment 0.7%
Municipal Bonds 0.1%
Portfolio Quality
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(As a percentage of total investment portfolio)
[The following data is represented by a pie chart in the printed material]
AAA 1.4%
AA 2.2%
A 5.3%
BBB 7.1%
BB 7.2%
B & Lower 2.0%
Commercial Paper 1.7%
Treasury/Agency 73.1%
10 Largest Holdings
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(As a percentage of total long-term holdings)*
1. U.S. Treasury Inflation Protected Security, 1.875%, 7/15/15 4.54%
2. U.S. Treasury Bonds, 6.25%, 8/15/23 2.54
3. U.S. Treasury Bonds, 4.25%, 11/15/13 2.49
4. U.S. Treasury Inflation Protected Security, 0.0%, 11/15/13 2.49
5. Federal National Mortgage Association, 5.5%, 9/1/37 2.19
6. Federal National Mortgage Association, 5.5%, 4/1/36 2.06
7. Federal Home Loan Mortgage Corp., 5.0%, 11/1/35 1.43
8. U.S. Treasury Bond, 5.125%, 5/15/16 1.38
9. Government National Mortgage Association, 5.5%, 1/15/36 1.22
10. Federal Home Loan Mortgage Corp., 4.5%, 10/1/20 1.05
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
9
Pioneer Bond Fund
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PRICES AND DISTRIBUTIONS
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Net Asset Value Per Share
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Class 12/31/07 6/30/07
- ------- ---------- --------
A $9.22 $8.95
B $9.17 $8.90
C $9.14 $8.87
R $9.32 $9.05
Y $9.15 $8.88
Class 12/31/07 7/6/07*
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Z $9.23 $8.89
Distributions Per Share
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7/1/07 - 12/31/07
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Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.2185 $ - $ -
B $0.1767 $ - $ -
C $0.1795 $ - $ -
R $0.2126 $ - $ -
Y $0.2306 $ - $ -
7/6/07 - 12/31/07
-------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
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Z $0.2233 $ - $ -
* Class Z shares were first publicly offered on July 6, 2007
10
Pioneer Bond Fund
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PERFORMANCE UPDATE 12/31/07 CLASS A SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund at public offering price, compared to that
of the Lehman Brothers Aggregate Bond Index.
[The following data is represented by a mountain chart in the printed material]
12/97 9,550 10,000
10,285 10,869
12/99 9,955 10,779
10,797 12,033
12/01 11,611 13,049
12,629 14,387
12/03 13,747 14,977
14,532 15,627
12/05 14,890 16,007
15,419 16,700
12/07 16,358 17,864
Average Annual Total Returns
(As of December 31, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
10 Years 5.53% 5.04%
5 Years 5.31 4.34
1 Year 6.09 1.31
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Expense Ratio
(Per prospectus dated November 1, 2007)
Gross Net
1.00% 1.00%
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 4.5% 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 net expense ratio reflects the contractual expense limitation currently in
effect through
11/1/10 for Class A shares. There can be no assurance that Pioneer will extend
the expense limitation beyond such time. Please see the prospectus and
financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a market value-weighted measure of
Treasury and agency issues, corporate bond issues and mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an index.
11
Pioneer Bond Fund
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PERFORMANCE UPDATE 12/31/07 CLASS B SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in
Pioneer Bond Fund, compared to that of the Lehman Brothers Aggregate Bond
Index.
[The following data is represented by a mountain chart in the printed material]
12/97 10,000 10,000
10,681 10,869
12/99 10,270 10,779
11,020 12,033
12/01 11,774 13,049
12,691 14,387
12/03 13,699 14,977
14,360 15,627
12/05 14,567 16,007
14,949 16,700
12/07 15,720 17,864
Average Annual Total Returns
(As of December 31, 2007)
If If
Period Held Redeemed
10 Years 4.63% 4.63%
5 Years 4.37 4.37
1 Year 5.15 1.15
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Expense Ratio
(Per prospectus dated November 1, 2007)
Gross Net
2.02% 1.90%
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.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through
11/1/09 for Class B shares. There can be no assurance that Pioneer will extend
the expense limitation beyond such time. Please see the prospectus and
financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a market value-weighted measure of
Treasury and agency issues, corporate bond issues and mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an index.
12
Pioneer Bond Fund
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PERFORMANCE UPDATE 12/31/07 CLASS C SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in
Pioneer Bond Fund, compared to that of the Lehman Brothers Aggregate Bond
Index.
[The following data is represented by a mountain chart in the printed material]
12/97 10,000 10,000
10,687 10,869
12/99 10,252 10,779
11,027 12,033
12/01 11,728 13,049
12,629 14,387
12/03 13,610 14,977
14,279 15,627
12/05 14,492 16,007
14,864 16,700
12/07 15,654 17,864
Average Annual Total Returns
(As of December 31, 2007)
If If
Period Held Redeemed
10 Years 4.58% 4.58%
5 Years 4.39 4.39
1 Year 5.32 5.32
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Expense Ratio
(Per prospectus dated November 1, 2007)
Gross Net
1.85% 1.85%
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). The performance of Class C shares does not
reflect the 1% front-end sales charge in effect prior to February 1, 2004. If
you paid a 1% sales charge, your returns would be lower than those shown above.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitation currently in
effect through
11/1/09 for Class C shares. There can be no assurance that Pioneer will extend
the expense limitation beyond such time. Please see the prospectus and
financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a market value-weighted measure of
Treasury and agency issues, corporate bond issues and mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an index.
13
Pioneer Bond Fund
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PERFORMANCE UPDATE 12/31/07 CLASS R SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in
Pioneer Bond Fund, compared to that of the Lehman Brothers Aggregate Bond
Index.
[The following data is represented by a mountain chart in the printed material]
12/97 10,000 10,000
10,716 10,869
12/99 10,321 10,779
11,138 12,033
12/01 11,918 13,049
12,899 14,387
12/03 14,038 14,977
14,827 15,627
12/05 15,140 16,007
15,640 16,700
12/07 16,574 17,864
Average Annual Total Returns
(As of December 31, 2007)
If If
Period Held Redeemed
10 Years 5.18% 5.18%
5 Years 5.14 5.14
1 Year 5.97 5.97
- -----------------------------------------------------------
Expense Ratio
(Per prospectus dated November 1, 2007)
Gross Net
1.44% 1.25%
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.
The performance of Class R shares for the period prior to the commencement of
operations of Class R shares on April 1, 2003 is based on the performance of
Class A shares, reduced to reflect the higher distribution and service fees of
Class R shares. For the period after April 1, 2003, the actual performance of
Class R shares is reflected. The performance of Class R shares does not reflect
the 1% CDSC that was in effect prior to July 1, 2004. Class R shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitation currently in
effect through
11/1/09 for Class R shares. There can be no assurance that Pioneer will extend
the expense limitation beyond such time. Please see the prospectus and
financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a market value-weighted measure of
Treasury and agency issues, corporate bond issues and mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an Index.
14
Pioneer Bond Fund
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PERFORMANCE UPDATE 12/31/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in
Pioneer Bond Fund, compared to that of the Lehman Brothers Aggregate Bond
Index.
[The following data is represented by a mountain chart in the printed material]
12/97 10,000 10,000
10,769 10,869
12/99 10,424 10,779
11,306 12,033
12/01 12,171 13,049
13,289 14,387
12/03 14,526 14,977
15,448 15,627
12/05 15,877 16,007
16,510 16,700
12/07 17,581 17,864
Average Annual Total Returns
(As of December 31, 2007)
If If
Period Held Redeemed
10 Years 5.80% 5.80%
5 Years 5.76 5.76
1 Year 6.49 6.49
- -----------------------------------------------------------
Expense Ratio
(Per prospectus dated November 1, 2007)
Gross Net
0.57% 0.57%
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 shown for periods prior to the inception of the Fund's Class Y
shares on September 20, 2001 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 for Y shares
prior to their inception would have been higher. Class A shares are used as a
proxy through 9/20/01. Class Y shares are not subject to sales charges and are
available for limited groups of eligible investors, including institutional
investors. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a market value-weighted measure of
Treasury and agency issues, corporate bond issues and mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an index.
15
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 12/31/07 CLASS Z SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in
Pioneer Bond Fund, compared to that of the Lehman Brothers Aggregate Bond
Index.
[The following data is represented by a mountain chart in the printed material]
12/97 10,000 10,000
10,769 10,869
12/99 10,424 10,779
11,306 12,033
12/01 12,158 13,049
13,224 14,387
12/03 14,395 14,977
15,217 15,627
12/05 15,591 16,007
16,145 16,700
12/07 17,170 17,864
Average Annual Total Returns
(As of December 31, 2007)
If If
Period Held Redeemed
10 Years 5.56% 5.56%
5 Years 5.36 5.36
1 Year 6.35 6.35
- ------------------------------------------------------------
Expense Ratio
(Per prospectus dated July 6, 2007)
Gross Net
0.86% 0.80%
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 shown for periods prior to the inception of Class Z shares on July
6, 2007 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 Z shares, the performance for Class Z shares prior
to their inception April 30, 2007 would have been higher. Class Z shares are
not subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitation currently in
effect through 11/1/10 for Class Z Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a market value-weighted measure of
Treasury and agency issues, corporate bond issues and mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an index.
16
Pioneer Bond Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
1. ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
2. transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Bond Fund
Based on actual returns from July 1, 2007** through December 31,
2007***
Share Class A B C R Y Z
- -----------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value On 7/1/07
Ending Account $1,055.10 $1,050.60 $1,051.10 $1,056.90 $1,053.80 $1,063.90
Value (after
expenses)
On 12/31/07
Expenses Paid $ 5.08 $ 9.82 $ 9.25 $ 6.48 $ 2.95 $ 2.88
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 0.98%, 1.90%,
1.79%, 1.25%, 0.57%, and 0.57%, for Class A, Class B, Class C, Class R,
Class Y and Class Z shares, respectively, multiplied by the average account
value over the period, multiplied by 184/365 (179/365 for Class Z) (to
reflect the one-half year period).
17
Pioneer Bond Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Bond Fund
Based on a hypothetical 5% per year return before expenses, reflect
ing the period from July 1, 2007** through December 31, 2007***
Share Class A B C R Y Z
- -----------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value On 7/1/07
Ending Account $1,020.27 $1,015.63 $1,016.18 $1,018.90 $1,022.33 $1,021.73
Value (after
expenses)
On 12/31/07
Expenses Paid $ 4.99 $ 9.65 $ 9.10 $ 6.36 $ 2.91 $ 2.83
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 0.98%, 1.90%,
1.71%, 1.25%, 0.57%, and 0.57%, for Class A, Class B, Class C, Class R,
Class Y, and Class Z shares, respectively, multiplied by the average
account value over the period, multiplied by 184/365 (179/365 for Class Z)
(to reflect the one-half year period).
18
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (unaudited)
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
PREFERRED STOCK - 0.3%
Insurance - 0.3%
Life & Health Insurance - 0.3%
$ 153,800 Delphi Financial Group, 7.376%,
5/15/37 $ 2,840,501
--------------
TOTAL PREFERRED STOCK
(Cost $3,845,000) $ 2,840,501
--------------
ASSET BACKED SECURITIES - 3.6%
Energy - 0.1%
Oil & Gas Equipment And Services - 0.1%
1,000,000 7.74 NR/NR Sevan Marine ASA, Floating Rate Note,
5/14/13 (144A) $ 990,000
--------------
Total Energy $ 990,000
--------------
Transportation - 0.1%
Airlines - 0.1%
1,286,124 A/A2 Southwest Airlines Co., 7.67%, 1/2/14 $ 1,367,407
--------------
Total Transportation $ 1,367,407
--------------
Consumer Services - 0.4%
Restaurants - 0.4%
3,970,000 BB/Ba3 Dunkin Brands Master Finance LLC,
8.28%, 6/20/31 (144A) $ 4,010,224
--------------
Total Consumer Services $ 4,010,224
--------------
Food & Drug Retailing - 0.4%
Food Retail - 0.4%
5,325,000 BB/Aaa Dominos Pizza Master Issuer LL,
7.629%, 4/25/37 $ 5,068,814
--------------
Total Food & Drug Retailing $ 5,068,814
--------------
Banks - 0.8%
Thrifts & Mortgage Finance - 0.7%
3,375,000 AAA/Aaa GMAC Commercial Mortgage Securities,
Inc., 4.864%, 12/10/41 $ 3,339,883
5,310,000 AAA/Aaa Local Insight Media Finance Ll, 5.88%,
10/23/37 5,056,341
436,009 6.10 A-/Baa1 Taganka Car Loan Finance Plc, Floating
Rate Note, 11/14/13 (144A) 436,009
--------------
$ 8,832,233
--------------
Total Banks $ 8,832,233
--------------
The accompanying notes are an integral part of these financial statements. 19
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Diversified Financials - 1.3%
Diversified Financial Services - 1.2%
$ 10,135,000 AAA/Aaa JP Morgan Chase Commercial Mortgage
Security Corp., 5.8755%, 4/15/45 $ 10,545,087
1,331,440 BBB+/Baa2 PF Export Receivable Master Trust,
6.436%, 6/1/15 (144A) 1,342,558
2,363,127 BBB/Baa2 Power Receivables Finance, 6.29%,
1/1/12 (144A) 2,467,104
--------------
$ 14,354,749
--------------
Total Diversified Financials $ 14,354,749
--------------
Utilities - 0.6%
Electric Utilities - 0.6%
889,930 BBB-/Baa3 Crocket Cogeneration, 5.869%, 3/30/25
(144A) $ 889,245
1,904,616 BBB/Baa3 FPL Energy America Wind LLC, 6.639%,
6/20/23 (144A) 1,977,201
747,600 BB/Ba2 FPL Energy Wind Funding, 6.876%,
6/27/17 (144A) 765,356
2,860,753 BB/Ba2 Tenaska Alabama, 7.0%, 6/30/21
(144A) 2,855,209
--------------
$ 6,487,011
--------------
TOTAL ASSET BACKED SECURITIES
(Cost $41,309,391) $ 41,110,438
--------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 3.9%
Banks - 2.6%
Thrifts & Mortgage Finance - 2.6%
1,440,000 AAA/Aaa Bank of America Commercial Mortgage,
Inc., 4.877%, 7/10/42 $ 1,430,335
471,478 5.27 AAA/Aaa Impac Securities Assets Corp., Floating
Rate Note, 11/25/34 469,885
10,000,000 AAA/Aaa LB-UBS Commercial Mortgage, 5.372%,
9/15/39 10,034,448
8,510,000 5.70 AAA/Aaa SASC 2007 BHC1 A1, Floating Rate
Note, 12/18/49 7,619,250
2,890,000 5.74 AAA/NR SASC 2007 BHC1 A2, Floating Rate
Note, 12/18/49 2,427,834
2,010,000 NR/Ba1 SBA CMBS Trust, 6.709%, 11/15/36 1,898,859
1,435,000 AA/Aa2 T SRA R 2006-1 B, 5.7467%, 10/15/36 1,355,013
3,787,250 AAA/Aaa Wachovia Bank Commercial Mortgage
Trust, 4.803%, 10/15/41 3,741,167
20 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Thrifts & Mortgage Finance - (continued)
$ 766,928 AAA/Aaa Wells Fargo Mortgage Backed Securities,
5.25, 12/25/33 $ 748,091
--------------
$ 29,724,882
--------------
Total Banks $ 29,724,882
--------------
Diversified Financials - 0.7%
Other Diversified Finance Services - 0.7%
1,100,000 AA/Aa2 CS First Boston Mortgage Security, 7.0%,
5/25/32 $ 1,089,893
860,543 AAA/Aaa First Horizon Mortgage Pass-Through
Trust, 5.0%, 3/25/18 854,896
1,270,000 NR/Ba1 Global Signal, 7.036%, 2/15/36 (144A) 1,306,703
1,672,024 AAA/Aaa Morgan Stanley Capital I, 5.25%,
12/25/17 1,647,088
545,554 AAA/Aaa Morgan Stanley Capital I, 7.0%, 7/25/33 560,386
2,049,292 AAA/Aaa RALI 2005-QA10 A41, 5.7412%,
9/25/35 2,014,233
243,617 AAA/Aaa Salomon Brothers Mortgage Securities,
8.0%, 9/25/30 245,092
575,000 NR/Ba2 Tower 2004-2A F, 6.376%, 12/15/14 509,105
--------------
$ 8,227,396
--------------
Total Diversified Financials $ 8,227,396
--------------
Government - 0.5%
871,127 AAA/Aaa Federal Home Loan Bank, 6.0%,
4/15/32 $ 894,495
4,829,879 AAA/Aaa Freddie Mac, 6.1%, 9/15/18 4,823,834
--------------
$ 5,718,329
--------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $45,174,768) $ 43,670,607
--------------
CORPORATE BONDS - 20.0%
Energy - 0.8%
Integrated Oil & Gas - 0.0%
45,000 BBB/Baa2 Petro-Canada, 4.0%, 7/15/13 $ 41,850
25,000 BBB+/Baa1 USX Corp., 6.85%, 3/1/08 25,077
--------------
$ 66,927
--------------
The accompanying notes are an integral part of these financial statements. 21
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Oil & Gas Exploration & Production - 0.3%
$ 1,259,060 A/Aa2 Ras Laffan Liquefied Natural Gas,
3.437%, 9/15/09 (144A) $ 1,257,020
1,605,000 A/Aa2 Ras Laffan LNG 3, 5.832%, 9/30/16
(144A) 1,630,969
720,000 BB+/Ba2 Southern Star Central Corp., 6.75%,
3/1/16 689,400
--------------
$ 3,577,389
--------------
Oil & Gas Refining & Marketing - 0.0%
435,000 BBB/Baa2 Boardwalk Pipelines LLC, 5.5%, 2/1/17 $ 431,003
--------------
Oil & Gas Storage & Transportation - 0.5%
1,150,000 B+/B1 Holly Energy Partners LP, 6.25%, 3/1/15 $ 1,058,000
3,915,000 BBB-/Baa3 NGPL Pipeco LLC, 6.514%, 12/15/12
(144A) 3,974,986
--------------
$ 5,032,986
==============
Total Energy $ 9,108,305
==============
Materials - 0.6%
Aluminum - 0.2%
2,290,000 B/B3 Novelis, Inc., 7.25%, 2/15/15 $ 2,152,600
--------------
Commodity Chemicals - 0.1%
2,000,000 B+/Ba3 Nova Chemicals, Ltd., 6.5%, 1/15/12 $ 1,875,000
--------------
Construction Materials - 0.2%
2,000,000 A-/A3 Vulcan Materials Co., 6.0%, 4/1/09 $ 2,043,230
--------------
Fertilizers & Agricultural Chemicals - 0.0%
45,000 BBB+/Baa1 Potash Corp., Saskatchewan, 4.875%,
3/1/13 $ 44,535
--------------
Steel - 0.1%
915,000 A+/A1 Nucor Corp., 5.0%, 12/1/12 $ 916,146
--------------
Total Materials $ 7,031,511
--------------
Capital Goods - 1.6%
Aerospace & Defense - 0.0%
40,000 A+/A2 Boeing Co., 5.125%, 2/15/13 $ 40,867
--------------
Construction & Farm Machinery & Heavy Trucks - 0.6%
1,000,000 A/A2 Caterpillar, Inc., 6.55%, 5/1/11 $ 1,062,910
5,000,000 A/A2 Deere & Co., 7.0%, 3/15/12 5,444,425
--------------
$ 6,507,335
--------------
Electrical Component & Equipment - 0.1%
1,409,784 NR/WD Orcal Geothermal, 6.21%, 12/30/20
(144A) $ 1,485,955
==============
22 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Industrial Conglomerates - 0.6%
$ 7,000,000 AAA/Aaa GE Electric Co., 5.0%, 2/1/13 $ 7,089,061
--------------
Trading Companies & Distributors - 0.3%
3,100,000 BBB-/Baa3 Glencore Funding LLC, 6.0%, 4/15/14
(144A) $ 3,118,147
--------------
Total Capital Goods $ 18,241,365
--------------
Transportation - 0.2%
Railroads - 0.2%
2,220,000 B+/B2 Kansas City Southern Mexico, 7.625%,
12/1/13 $ 2,189,475
--------------
Total Transportation $ 2,189,475
--------------
Consumer Durables & Apparel - 0.3%
Homebuilding - 0.3%
1,230,000 0.00 BBB-/BBB- C10 Capital SPV, Ltd., Floating Rate
Note, 12/31/49 $ 1,132,043
2,260,000 6.64 BBB-/NR C8 Capital SPV, Ltd., Floating Rate Note,
12/31/49 2,141,666
--------------
$ 3,273,709
--------------
Total Consumer Durables & Apparel $ 3,273,709
--------------
Consumer Services - 0.4%
Casinos & Gaming - 0.1%
1,780,000 B-/Caa1 Station Casinos, Inc., 6.625%, 3/15/18 $ 1,219,300
--------------
Education Services - 0.3%
3,095,000 AAA/Aaa President & Fellows of Harvard, 6.3%,
10/1/37 $ 3,421,120
--------------
Total Consumer Services $ 4,640,420
--------------
Media - 0.5%
Broadcasting & Cable TV - 0.0%
135,000 BBB+/Baa2 Comcast Corp., 5.3%, 1/15/14 $ 132,381
--------------
Media - 0.5%
5,000,000 BBB+/Baa2 Comcast Cable Corp., 6.75%, 1/30/11 $ 5,227,425
--------------
Total Media $ 5,359,806
--------------
Retailing - 0.0%
Department Stores - 0.0%
25,000 A-/Baa1 Nordstrom, Inc., 5.625%, 1/15/09 $ 25,067
--------------
Total Retailing $ 25,067
--------------
The accompanying notes are an integral part of these financial statements. 23
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Food, Beverage & Tobacco - 0.9%
Brewers - 0.0%
$ 55,000 BBB+/Baa1 Miller Brewing Co., 5.5%, 8/15/13
(144A) $ 55,731
--------------
Distillers & Vintners - 0.4%
4,265,000 BB-/Ba3 Constellation Brands, Inc., 8.375%,
12/15/14 $ 4,275,663
--------------
Packaged Foods & Meats - 0.5%
5,055,000 A+/A1 Unilever Capital Corp., 7.125%, 11/1/10 $ 5,421,199
--------------
Soft Drinks - 0.0%
55,000 A/A3 Bottling Group LLC, 5.0%, 11/15/13 $ 55,448
--------------
Total Food, Beverage & Tobacco $ 9,808,041
--------------
Health Care Equipment & Services - 0.1%
Health Care Facilities - 0.0%
1,040,000 BB-/B2 HCA, Inc., 9.625%, 11/15/16 $ 1,099,800
--------------
Total Health Care Equipment & Services $ 1,099,800
--------------
Pharmaceuticals & Biotechnology - 0.4%
Pharmaceuticals - 0.4%
4,745,000 B+/Ba3 Valeant Pharmaceuticals, 7.0%,
12/15/11 $ 4,561,131
--------------
Total Pharmaceuticals & Biotechnology $ 4,561,131
--------------
Banks - 1.5%
Diversified Banks - 0.4%
1,100,000 AA-/Aa2 Nationsbank Corp., 7.75%, 8/15/15 $ 1,241,550
200,000 BB+/Baa2 TNK-BP Finance SA, 6.625%, 3/20/17 182,500
1,000,000 BB+/Baa2 TNK-BP Finance SA, 6.625%, 3/20/17
(144A) 912,500
2,080,000 BB+/Baa2 TNK-BP Finance SA, 7.5%, 7/18/16
(144A) 2,015,000
1,000,000 BB+/Baa2 TNK-BP Finance SA, 7.875%, 3/13/18
(144A) 987,500
--------------
$ 5,339,050
--------------
Regional Banks - 0.7%
3,515,000 AA-/Aa2 Barclays Plc, 6.05%, 12/4/17 $ 3,541,781
4,500,000 A+/Aa3 Branch Banking & Trust Co., 4.875%,
1/15/13 4,410,603
--------------
$ 7,952,384
--------------
24 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Thrifts & Mortgage Finance - 0.3%
$ 3,575,000 5.00 A/Baa1 Washington Mutual Bank, Floating Rate
Note, 5/1/09 $ 3,333,119
--------------
Total Banks $ 16,624,553
--------------
Diversified Financials - 3.0%
Asset Management & Custody Banks - 1.5%
2,000,000 A/Aa3 Bank of New York, 4.95%, 3/15/15 $ 1,929,820
1,035,000 A-/A3 Eaton Vance Corp., 6.5%, 10/2/17 1,085,850
2,000,000 A/Aa3 Mellon Financial Co., 6.4%, 5/14/11 2,114,002
6,000,000 A+/A1 Northern Trust Co., 7.1%, 8/1/09 6,238,452
5,000,000 A+/A1 State Street Corp., 7.65%, 6/15/10 5,335,960
--------------
$ 16,704,084
--------------
Consumer Finance - 0.6%
2,630,000 B/B1 Ford Motor Credit Co., 5.7%, 1/15/10 $ 2,369,572
2,500,000 4.96 1/Baa1 SLM Corp., Floating Rate Note, 4/18/08 2,473,570
3,155,000 4.00 BBB+/Baa1 SLM Corp., Floating Rate Note, 7/25/14 2,547,663
--------------
$ 7,390,805
--------------
Specialized Finance - 0.9%
4,290,000 A/A2 Citigroup, Inc., 7.625%, 11/30/12 $ 4,348,370
5,955,000 NR/BAA3 Coso Geothermal Power, 7.0%, 7/15/26
(144A) 5,865,675
--------------
$ 10,214,045
--------------
Total Diversified Financials $ 34,308,934
--------------
Insurance - 4.0%
Life & Health Insurance - 0.9%
1,000,000 A/A2 Metlife, 6.125%, 12/1/11 $ 1,036,964
5,555,000 B/B2 Presidential Life Corp., 7.875%,
2/15/09 5,499,450
3,500,000 AA/Aa3 Protective Life, 4.0%, 10/7/09 3,511,309
--------------
$ 10,047,723
--------------
Multi-Line Insurance - 1.4%
4,445,000 A+/A1 American General Finance, 6.9%,
12/15/17 $ 4,449,445
5,000,000 BB+/Ba1 Hanover Insurance Group, 7.625%,
10/15/25 4,831,250
4,620,000 BB+/Baa3 Liberty Mutual Group, 7.0%, 3/15/37
(144A) 4,188,159
2,650,000 A/A3 Loew Corp., 5.25%, 3/15/16 2,644,549
==============
$ 16,113,403
--------------
The accompanying notes are an integral part of these financial statements. 25
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Property & Casualty Insurance - 1.0%
$ 3,742,000 6.15 A+/Aa3 Ambac Financial Group, Inc., Floating
Rate Note, 2/15/37 $ 2,733,108
1,000,000 A/A2 Chubb Corp., 6.0%, 11/15/11 1,031,847
4,135,000 BB+/NR Kingsway America, Inc., 7.5%, 2/1/14 4,363,318
3,035,000 BBB/Baa2 Ohio Casualty Corp., 7.3%, 6/15/14 3,255,380
--------------
$ 11,383,653
--------------
Reinsurance - 0.6%
6,220,000 BBB/NA Platinum Underwriters HD, 7.5%, 6/1/17 $ 6,418,163
1,500,000 6.73 NR/NR Redwood Capital X Ltd CAT Bond, Float-
ing Rate Note, 1/9/09 (144A) 1,500,000
--------------
$ 7,918,163
--------------
Total Insurance $ 45,462,942
--------------
Real Estate - 1.7%
Real Estate Management & Development - 0.7%
8,180,000 BB-/Ba3 Forest City Enterprises, 7.625%, 6/1/15 $ 7,893,700
==============
Real Estate Investment Trusts - 1.0%
1,100,000 BBB-/Baa3 Colonial Reality LP, 6.15%, 4/15/13 $ 1,100,892
4,125,000 BBB-/Baa2 Health Care Real Estate Investment
Trust, Inc., 6.2%, 6/1/16 3,930,968
860,000 BBB-/Baa2 Health Care, Inc., 6.0%, 11/15/13 851,570
935,000 BBB-/Baa2 Health Care, Inc., 8.0%, 9/12/12 995,418
3,470,000 AAA/Aaa Trustreet Properties, Inc., 7.5%, 4/1/15 3,732,859
565,000 BB+/Ba1 Ventas Realty Capital Corp., 7.125%,
6/1/15 (144A) 570,650
--------------
$ 11,182,357
--------------
Total Real Estate $ 19,076,057
--------------
Software & Services - 0.3%
Data Processing & Outsourced Services - 0.3%
3,465,000 B-/B3 First Data Corp., 9.875%, 9/24/15
(144A) $ 3,222,450
--------------
Total Software & Services $ 3,222,450
--------------
Technology Hardware & Equipment - 1.0%
Computer Hardware - 0.3%
2,800,000 BBB-/Baa3 NCR Corp., 7.125%, 6/15/09 $ 2,893,828
--------------
Electronic Equipment & Instruments - 0.4%
5,070,000 BBB-/Ba1 Agilent Technologies, Inc., 6.5%,
11/1/17 $ 5,150,253
--------------
26 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Electronic Manufacturing Services - 0.2%
$ 2,170,000 BB-/Ba2 Flextronics International, Ltd., 6.5%,
5/15/13 $ 2,104,900
--------------
Technology Distributors - 0.1%
1,750,000 BB+/Ba1 Anixter International Corp., 5.95%,
3/1/15 $ 1,577,188
--------------
Total Technology Hardware & Equipment $ 11,726,169
--------------
Telecommunication Services - 0.1%
Integrated Telecommunication Services - 0.1%
1,500,000 A/A3 GTE California, Inc., 6.7%, 9/1/09 $ 1,543,218
--------------
Total Telecommunication Services $ 1,543,218
--------------
Utilities - 2.6%
Electric Utilities - 1.3%
990,000 BBB/Baa2 Commonwealth Edison, 6.15%, 9/15/17 $ 1,020,209
2,270,000 BBB+/Baa3 Entergy Gulf States, 5.7%, 6/1/15 2,210,011
3,000,000 A/A2 Georgia Power Co., 4.0%, 1/15/11 2,963,919
2,450,000 BB-/Ba3 Intergen NV, 9.0%, 6/30/17 2,578,625
2,105,000 BBB-/Baa3 Kiowa Power Partners LLC, 5.737%,
3/30/21 (144A) 2,143,606
3,550,000 BBB+/Baa2 West Penn Power Co., 5.95%, 12/15/17 3,567,310
--------------
$ 14,483,680
--------------
Gas Utilities - 0.1%
1,895,000 BB/Ba1 Southern Union Co., 7.2%, 11/1/66 $ 1,863,884
--------------
Independent Power Producer & Energy Traders - 0.6%
5,000,000 A-/A3 Duke Energy Corp., 6.25%, 1/15/12 $ 5,272,275
1,335,000 CCC/B3 TXU Energy Co., 10.25%, 11/1/15 1,321,650
--------------
$ 6,593,925
--------------
Multi-Utilities - 0.6%
1,365,000 BB/Ba2 NSG Holdings LLC, 7.75%, 12/15/25
(144A) $ 1,364,319
5,055,000 BBB+/Baa1 New York State Gas and Electric, 6.15%,
12/15/17 (144A) 5,060,737
--------------
Total Utilities $ 6,425,056
--------------
$ 29,366,545
--------------
TOTAL CORPORATE BONDS
(Cost $226,906,466) $ 226,669,498
--------------
The accompanying notes are an integral part of these financial statements. 27
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 67.1%
Government - 67.1%
$ 65,000 AAA/Aaa Federal Home Loan Mortgage Corp.,
3.875%, 6/14/13 $ 64,542
57,121,104 AAA/Aaa Federal Home Loan Mortgage Corp.,
4.5%, 11/1/18-11/1/35 55,199,308
27,103,908 AAA/Aaa Federal Home Loan Mortgage Corp.,
5.0%, 10/1/20-11/1/35 26,647,951
140,000 AAA/Aaa Federal Home Loan Mortgage Corp.,
5.24%, 8/7/18 144,680
14,974,450 AAA/Aaa Federal Home Loan Mortgage Corp.,
5.5%, 12/1/18-11/1/35 14,981,481
19,473,075 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.0%, 5/1/17-6/1/35 19,801,198
2,279,228 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.5%, 3/1/13-11/1/33 2,343,765
25,660 NR/NR Federal Home Loan Mortgage Corp.,
7.0%, 11/1/30-12/1/30 26,966
7,767 AAA/Aaa Federal Home Loan Mortgage Corp.,
8.0%, 4/1/08-8/1/31 8,028
2,078 AAA/Aaa Federal Home Loan Mortgage Corp.,
8.048%, 10/1/33 2,112
6,634,763 NR/NR Federal National Mortgage Association,
4.0%, 7/1/18-3/1/36 6,293,791
23,819,506 AAA/Aaa Federal National Mortgage Association,
4.5%, 4/1/19-10/1/35 23,199,286
174,882 AAA/Aaa Federal National Mortgage Association,
4.78%, 12/1/12 176,321
25,916,143 AAA/Aaa Federal National Mortgage Association,
5.0%, 12/1/17-6/1/36 25,668,009
4,361,384 AAA/Aaa Federal National Mortgage Association,
5.429%, 12/1/36 4,414,568
1,149,486 AAA/Aaa Federal National Mortgage Association,
5.448%, 8/1/36 1,155,510
144,852,748 AAA/Aaa Federal National Mortgage Association,
5.5%, 9/1/17-10/1/37 144,924,147
4,995,391 AAA/Aaa Federal National Mortgage Association,
5.536%, 8/1/36 5,125,229
23,677,236 AAA/Aaa Federal National Mortgage Association,
6.0%, 6/1/16-6/1/37 24,079,705
15,261,821 AAA/Aaa Federal National Mortgage Association,
6.5%, 7/1/29-11/1/37 15,705,771
28 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Government - (continued)
$ 3,293,079 AAA/Aaa Federal National Mortgage Association,
7.0%, 3/1/12-12/1/31 $ 3,420,890
10,100 NR/NR Federal National Mortgage Association,
7.5%, 8/1/20-4/1/30 10,791
55,708 AAA/Aaa Federal National Mortgage Association,
8.0%, 2/1/29-5/1/31 59,678
15,114 NR/NR Federal National Mortgage Association,
10.3%, 4/25/19 16,661
19,161,737 AAA/Aaa Government National Mortgage Associa-
tion, 4.5%, 7/15/33-10/15/35 18,348,364
6,604,964 AAA/Aaa Government National Mortgage Associa-
tion, 5.0%, 10/15/18-5/15/36 6,530,443
89,785,768 AAA/Aaa Government National Mortgage Associa-
tion, 5.5%, 12/15/18-11/15/37 90,481,018
37,964,972 AAA/Aaa Government National Mortgage Associa-
tion, 6.0%, 4/15/13-10/15/36 38,871,349
20,043,066 AAA/Aaa Government National Mortgage Associa-
tion, 6.5%, 8/15/11-10/15/37 20,754,052
1,807,612 NR/NR Government National Mortgage Associa-
tion, 7.0%, 12/15/13-5/15/32 1,914,838
195,490 NR/NR Government National Mortgage Associa-
tion, 7.5%, 2/15/26-12/15/31 207,440
13,329 NR/NR Government National Mortgage Associa-
tion, 7.75%, 11/15/29 14,308
23,459 AAA/Aaa Government National Mortgage Associa-
tion, 8.0%, 5/15/10 24,323
396,865 NR/NR Government National Mortgage Associa-
tion, I, 6.0%, 2/15/29 407,644
102,352 NR/NR Government National Mortgage Associa-
tion, I, 7.0%, 12/15/30-3/15/31 108,520
18,664 NR/NR Government National Mortgage Associa-
tion, I, 7.5%, 10/15/29 19,918
2,611,942 AAA/Aaa Government National Mortgage Associa-
tion II, 4.5%, 12/20/34-1/20/35 2,477,848
3,046,472 AAA/Aaa Government National Mortgage Associa-
tion II, 5.5%, 10/20/19-11/20/34 3,062,100
134,269 NR/NR Government National Mortgage Associa-
tion, II, 6.5%, 2/20/29-4/20/29 139,301
562,221 NR/NR Government National Mortgage Associa-
tion II, 7.0%, 11/20/28-12/20/30 594,820
9,000,000 AAA/Aaa U.S. Treasury Bonds, 3.625% 5/15/13 9,061,875
The accompanying notes are an integral part of these financial statements. 29
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Government - (continued)
$ 26,400,000 AAA/Aaa U.S. Treasury Bonds, 4.25%, 11/15/13 $ 27,371,441
13,985,000 AAA/Aaa U.S. Treasury Bonds, 5.125%, 5/15/16 15,136,581
650,000 AAA/Aaa U.S. Treasury Bonds, 5.25%, 11/15/28 715,152
23,240,000 AAA/Aaa U.S. Treasury Bonds, 6.25%, 8/15/23 27,824,462
850,000 AAA/Aaa U.S. Treasury Bonds, 7.25%, 5/15/16 1,045,235
8,750,000 AAA/Aaa U.S. Treasury Notes, 4.0%, 11/15/12 8,985,839
625,000 AAA/Aaa U.S. Treasury Notes, 4.0%, 2/15/15 633,838
750,000 AAA/Aaa U.S. Treasury Notes, 4.25%, 11/15/14 773,731
5,000,000 AAA/Aaa U.S. Treasury Notes, 4.5%, 2/15/36 5,025,394
5,500,000 AAA/Aaa U.S. Treasury Notes, 4.5%, 11/15/15 5,730,742
505,000 AAA/Aaa U.S. Treasury Notes, 5.375%, 2/15/31 568,954
840,000 AAA/Aaa U.S. Treasury Notes, 5.5%, 8/15/28 951,169
450,000 AAA/Aaa U.S. Treasury Notes, 7.875%, 2/15/21 605,250
4,200,000 AAA/Aaa U.S. Treasury Notes, 8.75%, 5/15/17 5,713,970
33,752,000 AAA/Aaa U.S. Treasury Inflation Protected Security,
0.0%, 11/15/13 27,324,640
500,000 AAA/Aaa U.S. Treasury Inflation Protected Security,
0.0%, 5/15/13 412,786
48,871,095 AAA/Aaa U.S. Treasury Inflation Protected Security,
1.875%, 7/15/15 49,814,161
3,392,070 AAA/Aaa U.S. Treasury Inflation Protected Security,
2.0%, 1/15/14 3,503,639
10,494,621 AAA/Aaa U.S. Treasury Inflation Protected Security,
2.0%, 1/15/16 10,770,105
464,788 AAA/Aaa U.S. Treasury Inflation Protected Security,
3.0%, 7/15/12 503,387
1,141,302 AAA/Aaa U.S. Treasury Inflation Protected Security,
3.375%, 1/15/12 1,245,000
==============
$ 761,144,025
==============
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $744,49,184) $ 761,144,025
==============
30 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
MUNICIPAL BONDS - 0.1%
Government - 0.1%
Municipal Tobacco - 0.1%
$ 750,000 AAA/NR Tobacco Settlement Authority Iowa,
6.79%, 6/1/10 $ 765,105
--------------
TOTAL MUNICIPAL BONDS
(Cost $750,000) $ 765,105
--------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS - 1.8%
Capital Goods - 0.0%
Electrical Component & Equipment - 0.0%
116,908 BB-/Ba2 Flextronics Semiconductor, A-1-A Delayed
Draw Term Loan, 7.455%, 10/1/14 $ 109,375
1,165,179 BB-/Ba1 Flextronics Semiconductor, A Closing
Date Loan, 7.394%, 10/1/14 1,141,875
--------------
$ 1,251,250
--------------
Total Capital Goods $ 1,251,250
--------------
Consumer Durables & Apparel - 0.1%
Housewares & Specialties - 0.1%
1,318,375 BB-/Ba3 Jarden Corp., Term Loan B-3, 7.33%,
1/24/12 $ 1,290,360
--------------
Total Consumer Durables & Apparel $ 1,290,360
--------------
Consumer Services - 0.1%
Casinos & Gaming - 0.0%
80,737 NR/NR Seminole Tribe of Florida, Term B-1 Delay
Draw Loan, 6.50538%, 3/5/14 $ 79,475
276,105 NR/NR Seminole Tribe of Florida, Term B-2 Delay
Draw Loan, 6.8750%, 2/20/14 271,791
280,868 NR/NR Seminole Tribe of Florida, Term B-3 Delay
Draw Loan, 6.75%, 3/5/14 276,480
--------------
$ 627,746
--------------
Total Consumer Services $ 627,746
==============
Health Care Equipment & Services - 0.4%
Health Care Facilities - 0.3%
2,871,000 BB+/Ba2 HCA, Inc., Tranche B Term Loan, 7.08%
11/7/13 $ 2,770,396
170,690 B+/Ba2 Sun Health Care, Delayed Draw Term
Loan, 6.97278% 1/15/08 163,862
265,517 B+/Ba2 Sun Health Care, Synthetic LC, 4.83%
4/12/14 254,897
The accompanying notes are an integral part of these financial statements. 31
Pioneer Bond Fund
- --------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (unaudited) (continued)
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Health Care Facilities - (continued)
$ 1,169,821 B+/Ba2 Sun Health Care, Term Loan, 7.12773%
4/12/14 $ 1,123,028
--------------
$ 4,312,183
--------------
Total Health Care Equipment & Services $ 4,312,183
--------------
Pharmaceuticals & Biotechnology - 0.3%
Pharmaceuticals - 0.2%
3,109,296 BB/NR Talecris Biotherapeutics Holdings, First
Lien Term Loan, 8.38%, 12/6/13 $ 3,091,807
--------------
Total Pharmaceuticals & Biotechnology $ 3,091,807
--------------
Diversified Financials - 0.5%
Diversified Financial Services - 0.4%
5,600,000 BB-/Ba3 Metavante Corp., Term Loan, 6.66%,
11/1/14 $ 5,456,500
--------------
Total Diversified Financials $ 5,456,500
--------------
Utilities - 0.4%
Independent Power Producer & Energy Traders - 0.4%
2,960,088 D/Ba3 Calpine Corp., First Priority Term Loan,
7.08% 3/29/09 $ 2,889,784
2,000,000 BBB-/Ba1 Texas Competitive Electric Holdings,
Initial Tranche B-2 Term Loan,
8.39625%, 10/10/14 1,965,752
--------------
$ 4,855,536
--------------
Total Utilities $ 4,855,536
--------------
TOTAL SENIOR SECURED FLOATING
RATE LOAN INTERESTS
(Cost $21,097,286) $ 20,885,382
--------------
TEMPORARY CASH INVESTMENT - 0.7%
Repurchase Agreement - 0.7%
7,730,000 NR/Aaa Bank of America Corp., 4.29%, dated
12/31/07, repurchase price of
$7,730,000 plus accrued interest on
1/2/08 collateralized by the following:
$239,496, Freddie Mac Giant, 5.0%,
7/1/35
$3,722,039, Freddie Mac Giant, 6.0%,
9/1/37
$22,222,514, Freddie Mac, 5.6%,
10/17/13
32 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Repurchase Agreement - (continued)
$1,122,934, Freddie Mac Discount Note,
0.0%, 2/20/08
$577,626, U.S. Treasury Bond Strip,
0.0%, 5/15/21 $ 7,730,000
--------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $7,730,000) $ 7,730,000
--------------
TOTAL INVESTMENT IN SECURITIES - 97.3%
(Cost $1,091,312,094) $1,104,815,556
--------------
OTHER ASSETS AND LIABILITIES - 2.7% $ 29,441,840
==============
TOTAL NET ASSETS - 100.0% $1,134,257,396
==============
* Senior secured floating rate loan interests in which the Portfolio invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending rate plus a premium. These base lending rates
are generally (i) the lending rate offered by one or more major European
banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime rate
offered by one or more major United States banks, (iii) the certificate of
deposit or (iv) other base lending rates used by commercial lenders. The
rate shown is the coupon rate at period end.
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At December 31, 2007, the
value of these securities amounted to $56,393,013 or 4.97% of total net
assets.
(a) At December 31, 2007, the net unrealized gain on investments based on cost
for federal income tax purposes of $1,091,530,008 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $22,366,427
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (8,862,128)
===========
Net unrealized gain $13,504,299
===========
(b) Debt obligation with a variable interest rate. Rate shown is rate at period
end
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended December 31, 2007, were as follows:
Purchases Sales
Long-term U.S. Government $196,674,071 $229,091,707
Other Long-term Securities $101,452,369 $ 38,821,965
The accompanying notes are an integral part of these financial statements. 33
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 12/31/07 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (cost $1,091,312,094) $1,104,815,556
Cash 2,764,748
Receivables -
Investment securities sold 7,250
Fund shares sold 23,788,870
Dividends and interest 7,940,773
Due from Pioneer Investment Management, Inc. 15,116
Unrealized appreciation on unfunded corporate loans 837
Other 73,966
--------------
Total assets $1,139,407,116
--------------
LIABILITIES:
Payables -
Investment securities purchased $ 758,337
Fund shares repurchased 1,584,463
Dividends 2,538,372
Due to affiliates 196,979
Accrued expenses 71,569
--------------
Total liabilities $ 5,149,720
--------------
NET ASSETS:
Paid-in capital $1,122,449,706
Distributions in excess of net investment income (1,071,993)
Accumulated net realized loss on investments (624,616)
Net unrealized gain on investments 13,504,299
--------------
Total net assets $1,134,257,396
==============
NET ASSET VALUE PER SHARE:
(No par value, Unlimited number of shares authorized)
Class A (based on $291,272,387/31,575,575 shares) $ 9.22
==============
Class B (based on $34,646,922/3,776,755 shares) $ 9.17
==============
Class C (based on $35,974,740/3,934,561 shares) $ 9.14
==============
Class R (based on $7,840,692/841,422 shares) $ 9.32
==============
Class Y (based on $764,418,824/83,515,252 shares) $ 9.15
==============
Class Z (based on $103,831/11,249 shares) $ 9.23
==============
MAXIMUM OFFERING PRICE:
Class A ($9.22 [divided by] 95.5%) $ 9.65
==============
34 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 12/31/07
INVESTMENT INCOME:
Dividends $ 135,501
Interest 27,774,039
-----------
Total investment income $27,909,540
-----------
EXPENSES:
Management fees $ 2,601,053
Transfer agent fees and expenses
Class A 238,387
Class B 64,079
Class C 39,960
Class R 8,505
Class Y 24,976
Class Z 2
Distribution fees
Class A 347,238
Class B 178,225
Class C 176,367
Class R 18,216
Administrative fees 118,263
Custodian fees 21,049
Registration fees 38,380
Professional fees 75,648
Printing expense 48,311
Fees and expenses of nonaffiliated trustees 12,763
Miscellaneous 26,258
-----------
Total expenses $ 4,037,680
Less management fees waived and expenses
reimbursed by Pioneer Investment Management, Inc. (3,663)
Less fees paid indirectly (8,138)
===========
Net expenses $ 4,025,879
-----------
Net investment income $23,883,661
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $ 3,204,121
-----------
Change in net unrealized loss from:
Investments $29,604,920
Unfunded corporate loans 837 $29,605,757
----------- -----------
Net gain on investments $32,809,878
-----------
Net increase in net assets resulting from operations $56,693,539
===========
The accompanying notes are an integral part of these financial statements. 35
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 12/31/07 and the Year Ended 6/30/07,
respectively.
Six Months Ended
12/31/07 Year Ended
(unaudited) 6/30/07
FROM OPERATIONS:
Net investment income $ 23,883,661 $ 42,241,439
Net realized gain on investments 3,204,121 1,460,971
Change in net unrealized gain (loss) on investments 29,605,757 1,322,647
-------------- --------------
Net increase in net assets resulting from
operations $ 56,693,539 $ 45,025,057
-------------- --------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.22 and $0.41 per share, respectively) $ (6,664,109) $ (11,363,122)
Class B ($0.18 and $0.33 per share, respectively) (692,498) (1,553,503)
Class C ($0.18 and $0.33 per share, respectively) (698,060) (1,201,170)
Investor Class ($0.00 and $0.19 per share,
respectively) - (72,030)
Class R ($0.21 and $0.39 per share, respectively) (167,776) (202,353)
Class Y ($0.23 and $0.45 per share, respectively) (17,318,525) (28,313,263)
Class Z ($0.22 and $0.00 per share, respectively) (2,516) -
-------------- --------------
Total distributions to shareowners $ (25,543,484) $ (42,705,441)
-------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 245,204,850 $ 429,574,722
Shares issued in reorganization 90,154,588 -
Reinvestment of distributions 13,574,605 21,415,753
Cost of shares repurchased (217,752,686) (303,316,078)
-------------- --------------
Net increase in net assets resulting from
Fund share transactions $ 131,181,357 $ 147,674,397
-------------- --------------
Net increase in net assets $ 162,331,412 $ 149,994,013
NET ASSETS:
Beginning of period 971,925,984 821,931,971
-------------- --------------
End of period $1,134,257,396 $ 971,925,984
============== ==============
Undistributed (distributions in excess of) net
investment income $ (1,071,993) $ 587,830
============== ==============
36 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7/1/07 - 7/1/07 -
12/31/07 12/31/07
Shares Amount '07 Shares '07 Amount
(unaudited) (unaudited)
CLASS A
Shares sold 5,038,273 $ 45,970,575 16,132,212 $ 146,930,411
Shares converted from
Investor Class - - 375,248 3,433,518
Reinvestment of distributions 466,030 4,250,243 894,417 8,121,961
Less shares repurchased (5,716,486) (51,814,096) (9,059,043) (82,209,356)
---------- -------------- ---------- --------------
Net increase (decrease) (212,183) $ (1,593,278) 8,342,834 $ 76,276,534
========== ============== ========== ==============
CLASS B
Shares sold 474,535 $ 4,286,708 863,687 $ 7,808,081
Reinvestment of distributions 58,326 528,906 129,753 1,172,183
Less shares repurchased (840,534) (7,591,152) (2,508,585) (22,644,268)
---------- -------------- ---------- --------------
Net decrease (307,673) $ (2,775,538) (1,515,145) $ (13,664,004)
========== ============== ========== ==============
CLASS C
Shares sold 1,363,748 $ 12,242,769 1,354,455 $ 12,182,040
Reinvestment of distributions 42,971 388,451 91,789 825,700
Less shares repurchased (959,482) (8,653,527) (2,037,903) (18,339,377)
---------- -------------- ---------- --------------
Net increase (decrease) 447,237 $ 3,977,693 (591,659) $ (5,331,637)
========== ============== ========== ==============
INVESTOR CLASS
Shares sold - - 10 $ 264
Reinvestment of distributions - - 6,731 61,143
Shares converted to Class A - - (374,939) (3,433,518)
Less shares repurchased - - (21,047) (190,426)
---------- -------------- ---------- --------------
Net decrease - - (389,245) $ (3,562,537)
========== ============== ========== ==============
CLASS R
Shares sold 365,089 $ 3,352,311 557,384 $ 5,118,772
Reinvestment of distributions 14,418 132,917 16,184 148,483
Less shares repurchased (257,792) (2,369,690) (192,209) (1,763,445)
---------- -------------- ---------- --------------
Net increase 121,715 $ 1,115,538 381,359 $ 3,503,810
========== ============== ========== ==============
CLASS Y
Shares sold 19,860,320 $ 179,252,487 28,228,870 $ 254,101,636
Shares issued in
reorganization 9,939,866 90,154,588 - -
Reinvestment of distributions 913,641 8,274,088 1,229,993 11,086,283
Less shares repurchased (16,297,448) (147,324,221) (19,424,424) (174,735,688)
----------- -------------- ----------- --------------
Net increase 14,416,379 $ 130,356,942 10,034,439 $ 90,452,231
=========== ============== =========== ==============
CLASS Z*
Shares sold 11,249 $ 100,000 - -
----------- -------------- ----------- --------------
Net increase 11,249 $ 100,000 - -
=========== ============== =========== ==============
* Class Z shares were first publicly offered on July 6, 2007.
The accompanying notes are an integral part of these financial statements. 37
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year
12/31/07 Ended
(unaudited) 6/30/07
CLASS A
Net asset value, beginning of period $ 8.95 $ 8.89
------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.20 $ 0.40
Net realized and unrealized gain (loss) on investments 0.29 0.07
------- --------
Net increase (decrease) from investment operations $ 0.49 $ 0.47
Distributions to shareowners:
Net investment income (0.22) (0.41)
------- --------
Net increase (decrease) in net asset value $ 0.27 $ 0.06
------- --------
Net asset value, end of period $ 9.22 $ 8.95
======= ========
Total return* 5.51% 5.31%
Ratio of net expenses to average net assets+ 0.98%** 1.00%
Ratio of net investment income to average net assets+ 4.40%** 4.48%
Portfolio turnover rate 52%** 31%
Net assets, end of period (in thousands) $291,272 $284,592
Ratios with no assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.98%** 1.00%
Net investment income 4.40%** 4.48%
Ratios with assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 0.98%** 1.00%
Net investment income 4.40%** 4.48%
Year Year Year Year
Ended Ended Ended Ended
6/30/06 6/30/05 6/30/04 6/30/03
CLASS A
Net asset value, beginning of period $ 9.40 $ 9.18 $ 9.41 $ 8.89
------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.35 $ 0.40 $ 0.41 $ 0.45
Net realized and unrealized gain (loss) on investments (0.47) 0.29 (0.14) 0.53
------- -------- -------- --------
Net increase (decrease) from investment operations $ (0.12) $ 0.69 $ 0.27 $ 0.98
Distributions to shareowners:
Net investment income (0.39) (0.47) (0.50) (0.46)
------- -------- -------- --------
Net increase (decrease) in net asset value $ (0.51) $ 0.22 $ (0.23) $ 0.52
------- -------- -------- --------
Net asset value, end of period $ 8.89 $ 9.40 $ 9.18 $ 9.41
======= ======== ======== ========
Total return* (1.25)% 7.64% 2.98% 11.38%
Ratio of net expenses to average net assets+ 1.00% 1.05% 1.14% 1.20%
Ratio of net investment income to average net assets+ 3.91% 4.27% 4.42% 5.02%
Portfolio turnover rate 60% 49% 63% 48%
Net assets, end of period (in thousands) $208,454 $174,055 $160,421 $183,338
Ratios with no assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.11% 1.18% 1.14% 1.20%
Net investment income 3.80% 4.14% 4.42% 5.02%
Ratios with assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 1.00% 1.05% 1.14% 1.20%
Net investment income 3.91% 4.27% 4.42% 5.02%
* 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
+ Ratio with no reduction for fees paid indirectly.
38 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year
12/31/07 Ended
(unaudited) 6/30/07
CLASS B
Net asset value, beginning of period $ 8.90 $ 8.85
------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.16 $ 0.33
Net realized and unrealized gain (loss) on investments 0.29 0.05
------- -------
Net increase (decrease) from investment operations $ 0.45 $ 0.38
Distributions to shareowners:
Net investment income (0.18) (0.33)
------- -------
Net increase (decrease) in net asset value $ 0.27 $ 0.05
------- -------
Net asset value, end of period $ 9.17 $ 8.90
======= =======
Total return* 5.06% 4.26%
Ratio of net expenses to average net assets+ 1.92%** 1.92%
Ratio of net investment income to average net assets+ 3.49%** 3.55%
Portfolio turnover rate 52%** 31%
Net assets, end of period (in thousands) $34,647 $36,366
Ratios with no assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.93%** 2.02%
Net investment income 3.48%** 3.45%
Ratios with assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 1.90%** 1.90%
Net investment income 3.50%** 3.57%
Year Year Year Year
Ended Ended Ended Ended
6/30/06 6/30/05 6/30/04 6/30/03
CLASS B
Net asset value, beginning of period $ 9.36 $ 9.14 $ 9.37 $ 8.87
------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.27 $ 0.32 $ 0.33 $ 0.37
Net realized and unrealized gain (loss) on investments (0.47) 0.28 (0.14) 0.53
------- ------- ------- -------
Net increase (decrease) from investment operations $ (0.20) $ 0.60 $ 0.19 $ 0.90
Distributions to shareowners:
Net investment income (0.31) (0.38) (0.42) (0.40)
------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.51) $ 0.22 $ (0.23) $ 0.50
------- ------- ------- -------
Net asset value, end of period $ 8.85 $ 9.36 $ 9.14 $ 9.37
======= ======= ======= =======
Total return* (2.14)% 6.72% 2.04% 10.44%
Ratio of net expenses to average net assets+ 1.90% 1.95% 1.98% 2.02%
Ratio of net investment income to average net assets+ 3.06% 3.39% 3.55% 4.22%
Portfolio turnover rate 60% 49% 63% 48%
Net assets, end of period (in thousands) $49,552 $56,828 $57,774 $77,367
Ratios with no assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.99% 2.02% 1.98% 2.02%
Net investment income 2.97% 3.32% 3.55% 4.22%
Ratios with assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 1.90% 1.95% 1.98% 2.02%
Net investment income 3.06% 3.39% 3.55% 4.22%
* 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
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 39
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year
12/31/07 Ended
(unaudited) 6/30/07
CLASS C
Net asset value, beginning of period $ 8.87 $ 8.81
------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.16 $ 0.33
Net realized and unrealized gain (loss) on investments 0.29 0.06
------- -------
Net increase (decrease) from investment operations $ 0.45 $ 0.39
Distributions to shareowners:
Net investment income (0.18) (0.33)
------- -------
Net increase (decrease) in net asset value $ 0.27 $ 0.06
------- -------
Net asset value, end of period $ 9.14 $ 8.87
======= =======
Total return* 5.11% 4.39%
Ratio of net expenses to average net assets+ 1.79%** 1.85%
Ratio of net investment income to average net assets+ 3.59%** 3.62%
Portfolio turnover rate 52%** 31%
Net assets, end of period (in thousands) $35,975 $30,934
Ratios with no assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.79%** 1.85%
Net investment income 3.59%** 3.62%
Ratios with assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 1.79%** 1.84%
Net investment income 3.59%** 3.63%
Year Year Year Year
Ended Ended Ended Ended
6/30/06 6/30/05 6/30/04 6/30/03
CLASS C
Net asset value, beginning of period $ 9.32 $ 9.11 $ 9.31 $ 8.83
------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.28 $ 0.32 $ 0.33 $ 0.37
Net realized and unrealized gain (loss) on investments (0.47) 0.28 (0.14) 0.51
------- ------- ------- -------
Net increase (decrease) from investment operations $ (0.19) $ 0.60 $ 0.19 $ 0.88
Distributions to shareowners:
Net investment income (0.32) (0.39) (0.39) (0.40)
------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.51) $ 0.21 $ (0.20) $ 0.48
------- ------- ------- -------
Net asset value, end of period $ 8.81 $ 9.32 $ 9.11 $ 9.31
======= ======= ======= =======
Total return* (2.08)% 6.68% 2.11% 10.28%
Ratio of net expenses to average net assets+ 1.89% 1.92% 1.97% 2.16%
Ratio of net investment income to average net assets+ 3.07% 3.24% 3.59% 4.05%
Portfolio turnover rate 60% 49% 63% 48%
Net assets, end of period (in thousands) $35,942 $42,160 $27,545 $29,777
Ratios with no assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.89% 1.92% 1.97% 2.16%
Net investment income 3.07% 3.24% 3.59% 4.05%
Ratios with assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 1.89% 1.91% 1.97% 2.16%
Net investment income 3.07% 3.25% 3.59% 4.05%
* 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
+ Ratio with no reduction for fees paid indirectly.
40 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year Year
12/31/07 Ended Ended
(unaudited) 6/30/07 6/30/06
CLASS R
Net asset value, beginning of period $ 9.05 $ 8.99 $ 9.50
-------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.19 $ 0.39 $ 0.34
Net realized and unrealized gain (loss) on investments 0.29 0.06 (0.47)
-------- ------- -------
Net increase (decrease) from investment operations $ 0.48 $ 0.45 $ (0.13)
Distributions to shareowners:
Net investment income (0.21) (0.39) (0.38)
-------- ------- -------
Net increase (decrease) in net asset value $ 0.27 $ 0.06 $ (0.51)
-------- ------- -------
Net asset value, end of period $ 9.32 $ 9.05 $ 8.99
======== ======= =======
Total return* 5.69% 5.04% (1.43)%
Ratio of net expenses to average net assets+ 1.25%** 1.25% 1.25%
Ratio of net investment income to average net assets+ 4.12%** 4.24% 3.50%
Portfolio turnover rate 52%** 31% 60%
Net assets, end of period (in thousands) $ 7,841 $ 6,511 $ 3,042
Ratios with no assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.30%** 1.44% 1.46%
Net investment income 4.07%** 4.05% 3.29%
Ratios with assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 1.25%** 1.25% 1.25%
Net investment income 4.12%** 4.24% 3.50%
FINANCIAL HIGHLIGHTS
Pioneer Bond Fund
Year Year 4/1/03 (a)
Ended Ended to
6/30/05 6/30/04 6/30/03
CLASS R
Net asset value, beginning of period $ 9.28 $ 9.50 $ 9.19
------- ------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.36 $ 0.47 $ 0.10
Net realized and unrealized gain (loss) on investments 0.30 (0.17) 0.32
------- ------- --------
Net increase (decrease) from investment operations $ 0.66 $ 0.30 $ 0.42
Distributions to shareowners:
Net investment income (0.44) (0.52) (0.11)
------- ------- --------
Net increase (decrease) in net asset value $ 0.22 $ (0.22) $ 0.31
------- ------- --------
Net asset value, end of period $ 9.50 $ 9.28 $ 9.50
======= ======= ========
Total return* 7.27% 3.20% 4.55%(b)
Ratio of net expenses to average net assets+ 1.31% 1.32% 1.42%**
Ratio of net investment income to average net assets+ 3.77% 4.71% 4.13%**
Portfolio turnover rate 49% 63% 48%(b)
Net assets, end of period (in thousands) $ 1,259 $ 345 $ 1
Ratios with no assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.43% 1.32% 1.42%**
Net investment income 3.65% 4.71% 4.13%**
Ratios with assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 1.31% 1.32% 1.42%**
Net investment income 3.77% 4.71% 4.13%**
(a) Class R shares were first publicly offered on April 1, 2003.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at each end of each period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
(b) Not annualized.
The accompanying notes are an integral part of these financial statements. 41
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTSc
- --------------------------------------------------------------------------------
Six Months
Ended Year
12/31/07 Ended
(unaudited) 6/30/07
CLASS Y
Net asset value, beginning of period $ 8.88 $ 8.83
------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.22 $ 0.44
Net realized and unrealized gain (loss) on investments 0.28 0.06
------- --------
Net increase (decrease) from investment operations $ 0.50 $ 0.50
Distributions to shareowners:
Net investment income (0.23) (0.45)
------- --------
Net increase (decrease) in net asset value $ 0.27 $ 0.05
------- --------
Net asset value, end of period $ 9.15 $ 8.88
======= ========
Total return* 5.38% 5.65%
Ratio of net expenses to average net assets+ 0.57%** 0.57%
Ratio of net investment income to average net assets+ 4.79%** 4.89%
Portfolio turnover rate 52%** 31%
Net assets, end of period (in thousands) $764,419 $613,523
Ratios with no assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.57%** 0.57%
Net investment income 4.79%** 4.89%
Ratios with assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 0.57%** 0.57%
Net investment income 4.79%** 4.89%
Year Year Year Year
Ended Ended Ended Ended
6/30/06 6/30/05 6/30/04 6/30/03
CLASS Y
Net asset value, beginning of period $ 9.33 $ 9.12 $ 9.35 $ 8.87
------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.39 $ 0.44 $ 0.46 $ 0.51
Net realized and unrealized gain (loss) on investments (0.46) 0.28 (0.14) 0.51
------- ------- ------- -------
Net increase (decrease) from investment operations $ (0.07) $ 0.72 $ 0.32 $ 1.02
Distributions to shareowners:
Net investment income (0.43) (0.51) (0.55) (0.54)
------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.50) $ 0.21 $ (0.23) $ 0.48
------- ------- ------- -------
Net asset value, end of period $ 8.83 $ 9.33 $ 9.12 $ 9.35
======= ======= ======= =======
Total return* (0.77)% 8.07% 3.48% 11.86%
Ratio of net expenses to average net assets+ 0.58% 0.61% 0.58% 0.67%
Ratio of net investment income to average net assets+ 4.20% 4.43% 5.05% 5.54%
Portfolio turnover rate 60% 49% 63% 48%
Net assets, end of period (in thousands) $521,480 $21,027 $13,617 $ 7,719
Ratios with no assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.58% 0.61% 0.58% 0.67%
Net investment income 4.20% 4.43% 5.05% 5.54%
Ratios with assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 0.58% 0.61% 0.58% 0.67%
Net investment income 4.20% 4.43% 5.05% 5.54%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at each end of each period.
** Annualized
+ Ratio with no reduction for fees paid indirectly.
42 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
7/6/07 (a) to
12/31/07
(unaudited)
Class Z
Net asset value, beginning of period $ 8.89
-------
Increase from investment operations:
Net investment income $ 0.21
Net realized and unrealized gain on investments 0.35
-------
Net increase from investment operations $ 0.56
Distributions to shareowners:
Net investment income (0.22)
-------
Net increase in net asset value $ 0.34
-------
Net asset value, end of period $ 9.23
=======
Total return* 6.39%(b)
Ratio of net expenses to average net assets+ 0.57%**
Ratio of net investment income to average net assets+ 4.78%**
Portfolio turnover rate 52%**
Net assets, end of period (in thousands) $ 104
Ratios with no assumption of expenses by PIM and no reduc-
tion for fees paid indirectly:
Net expenses 0.57%**
Net investment income 4.78%**
Ratios with assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 0.57%**
Net investment income 4.78%**
(a) Class Z shares were first publicly offered on July 6, 2007.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at each end of each period.
** Annualized
+ Ratios with no fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 43
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/07 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Bond Fund (the Fund) is a Delaware statutory trust registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The investment objectives of the Fund are to seek current income
consistent with preservation of capital.
The Trustees have authorized the issuance of six classes of shares of the Fund.
The Fund offers six classes of shares designated as Class A, Class B, Class C,
Class R, Class Y and Class Z shares. Class R shares were first publicly offered
April 1, 2003. As planned, on December 10, 2006 Investor Class shares were
converted to Class A shares. Class Z shares were first publicly offered on July
6, 2007. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has equal rights to voting, redemptions, dividends
and liquidation, except that each class of shares can bear different transfer
agent and distributions fees and has exclusive voting rights with respect to
the distribution plans that have been adopted by Class A, Class B, Class C, and
Class R shareowners, respectively. There is no distribution plan for Class Y
and Class Z shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. The Fund's prospectus contains information regarding
the Fund's principal risks. Please refer to those documents when considering
the Fund's risks.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
44
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
A. Security Valuation
Security transactions are recorded as of trade date. Securities are valued
at prices supplied by independent pricing services, which consider such
factors as Treasury spreads, yields, maturities and ratings. Valuations may
be supplemented by dealers and other sources, as required. Securities for
which there are no other readily available valuation methods are valued at
their fair values as determined by, or under the direction of the Board of
Trustees. At December 31, 2007 there were no securities fair valued.
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Temporary cash investments are valued at cost which approximates
market value.
All discounts/premiums on debt securities are accreted/amortized for
financial reporting purposes over the life of the respective securities,
and are included in interest income. Market discount and premium are
accreted or amortized daily. Premiums and discounts related to certain
mortgage-backed securities are amortized or accreted in proportion to the
underlying monthly paydowns. Interest income is recorded on the accrual
basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain on investment transactions,
or as from paid-in capital, depending on the type of book/tax differences
that may exist.
45
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
The tax character of current year distributions payable will be determined
at the end of the current fiscal year. The tax character of distributions
paid during the year ended June 30, 2007 was as follows:
2007
- ------------------------------------------
Distributions paid from:
Ordinary income $42,705,441
-----------
Total $42,705,441
===========
The difference between book basis and tax-basis unrealized appreciation is
attributable to the tax treatment of amortization.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.,
(UniCredito Italiano), earned $12,559 in underwriting commissions on the
sale of Class A shares during the six months ended December 31, 2007.
D. Class Allocations
Income, common expenses, and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning
of the day. Distribution fees are calculated based on the average daily net
asset value attributable to Class A, Class B, Class C, and Class R shares
of the Fund, respectively. Class Y and Class Z shares are not subject to a
distribution plan. Shareowners of each class participate in all expenses
and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services, which are allocated
based on the number of accounts in each class and the ratable allocation of
related out-of-pocket expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as
46
Pioneer Bond Fund
- --------------------------------------------------------------------------------
of the ex-dividend date. Distributions paid by the Fund with respect to
each class of shares are calculated in the same manner, at the same time,
and in the same amount, except that each class of shares can bear different
transfer agent and distribution expense rates.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest
received from the counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian, or subcustodians. The Fund's
investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
F. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
payments in lieu of dividends on the securities loaned. Gain or loss on the
fair value of the loaned securities that may occur during the term of the
loan will be for the account of the Fund. The loans are secured by
collateral which is required to be at least 102% at all times, of the fair
value of the securities loaned. The amount of the collateral is required to
be adjusted daily to reflect any price fluctuation in the value of loaned
securities. The Fund has the right under the lending agreements to recover
the securities on loan from the borrower on demand. The Fund invests cash
collateral in the Securities Lending Investment Fund, which is sponsored by
Brown Brothers Harriman & Co., the Fund's custodian.
47
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, manages the
Fund's portfolio. Management fees are calculated daily at the annual rate of
0.50% of the Fund's average daily net assets. For the six months ended December
31, 2007, the net management fee was equivalent to 0.51%.
Effective November 1, 2006, PIM has agreed to limit ordinary operating expenses
to the extent required to reduce Fund expenses to 1.00%, 1.90%, 1.90% and 1.25%
of the average daily net assets attributable to Class A, Class B, Class C and
Class R shares, respectively. Class Y shares do not have an expense limitation.
These expense limitations are in effect through November 1, 2010 for Class A
shares and through November 1, 2009 for Class B, Class C and Class R shares.
PIM expects to continue its limitation of expenses unless the expense limit
agreement with the Fund is terminated pursuant to the terms of the expense
limit agreement. However, there can be no assurance that PIM will extend the
expense limitation beyond November 1, 2010 for Class A shares and November 1,
2009 for Class B, Class C and Class R shares. The Fund may terminate the
expense limitation agreement at any time; provided, however, that the Board of
Trustees would not take such action unless it determined termination of the
agreement be in the best interests of the Fund and its shareowners.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting, and insurance
premiums, are paid by the Fund. Included in "Due to Affiliates" reflected on
the Statement of Assets and Liabilities is $47,722 in management fees,
administrative costs and certain other services payable to PIM at December 31,
2007.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in "Due to Affiliates" reflected on the Statement of
Assets and Liabilities is $137,387 in transfer agent fees payable to PIMSS at
December 31, 2007.
48
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. Distribution and Service Plans
The Fund adopted a Plan of Distribution with respect to each class of shares
(Class A Plan, Class B Plan, Class C Plan and Class R Plan) in accordance with
Rule 12b-1 of the Investment Company Act of 1940. Currently under the Class A
Plan, PFD is reimbursed for distribution expenses in an amount up to 0.25% of
the average daily net assets attributable to Class A shares. Pursuant to the
Class B Plan and the Class C Plan, the Fund pays PFD 1.00% of the average daily
net assets attributable to each class of shares. The fee consists of a 0.25%
service fee and a 0.75% distribution fee both paid as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class B and Class C shares. Pursuant to the Class R Plan, the Fund
pays PFD 0.50% of the average daily net assets attributable to Class R shares
for distribution services paid as compensation for personal services and/or
account maintenance services or distribution services. The Fund also has
adopted a separate service plan for Class R shares (Service Plan). The Service
Plan authorizes the Fund to pay securities dealers, plan administrators or
other service organizations that agree to provide certain services to
retirement plans or plan participants holding shares of the Fund a service fee
of up to 0.25% of the Fund's average daily net assets attributable to Class R
shares held by such plans. Included in "Due to Affiliates" reflected on the
Statement of Assets and Liabilities is $11,870 in distribution fees payable to
PFD at December 31, 2007.
In addition, redemptions of Class A, Class B and Class C shares may be subject
to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on
redemptions of certain net asset value purchases of Class A shares within 18
months of purchase. Class B shares that are redeemed within five years of
purchase are subject to a CDSC at declining rates beginning at 4.00%, based on
the lower of cost or market value of shares being redeemed. Redemptions of
Class C shares within one year of purchase are subject to a CDSC of 1.00%.
Proceeds from the CDSCs are paid to PFD. For the six months ended December 31,
2007, $61,482 in CDSCs were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended
49
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
December 31, 2007, the Fund's expenses were reduced $8,138 under such
arrangements.
6. Unfunded Loan Commitments
As of December 31, 2007, the Fund had unfunded loan commitments of
approximately $217,913 which could be extended at the option of the borrower,
pursuant to the following loan agreements:
Borrower Unfunded Commitment
- --------------------------------------------------------------------------------
Flextronics International LTD, - A1-ADelayed
Draw Term Loan $217,913
7. Merger Information
On October 19, 2007, beneficial owners of Pioneer Interest Shares Fund approved
a proposed Agreement and Plan of Reorganization that provided for the merger
listed below. This tax-free reorganization was accomplished on October 19, 2007
("Closing Date"), by exchanging all of Pioneer Interest Shares Fund's net
assets in Class A for Pioneer Bond Fund's shares, based on Pioneer Bond Fund's
Class Y shares ending net asset value. The following charts show the details of
the reorganization as of that Closing Date:
50
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Pioneer Pioneer Pioneer
Bond Fund Interest Shares Fund Bond Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- ----------------------------------------------------------------------------------------
Net Assets
Class A $ 275,992,415 $90,154,588 $ 366,147,003
Class B $ 35,217,908 $ - $ 35,217,908
Class C $ 36,400,849 $ - $ 36,400,849
Class R $ 7,179,079 $ - $ 7,179,079
Class Y $ 672,970,817 $ - $ 672,970,817
Class Z $ 102,938 $ 102,938
------------- --------------
Total Net
Assets $1,027,864006 $90,154,588 $1,118,018,954
------------- ----------- --------------
Shares
Outstanding
Class A 30,170,522 7,395,024 40,110,388
Class B 3,871,495 - 3,871,495
Class C 4,014,986 - 4,014,986
Class R 776,893 - 776,893
Class Y 74,166,916 - 74,166,916
Class Z 11,249 - 11,249
Shares
Issued in
Reorganization
Class Y 9,939,866
Unrealized Accumulated
Appreciation On Loss On
Closing Date Closing Date
- ---------------------------------------------------------------------
Pioneer Interest Shares Fund $262,540 $(206,552)
8. New Pronouncements
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact the adoption of
SFAS 157 will have on the Fund's financial statement disclosures.
51
Pioneer Bond Fund
- --------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
- --------------------------------------------------------------------------------
Pioneer Investment Management, Inc. (PIM) serves as the Fund's investment
adviser pursuant to an investment advisory agreement between PIM and the Fund.
The Trustees of the Fund, as required by law, determine annually whether to
continue the investment advisory agreement for the Fund.
In connection with their most recent consideration of the investment advisory
agreement for the Fund, the Trustees received and reviewed a substantial amount
of information provided by PIM in response to requests of the independent
Trustees and their independent legal counsel. The independent Trustees met on a
number of occasions with PIM and also separately with their independent legal
counsel to evaluate and discuss the information provided to them by PIM. At a
meeting held on November 13, 2007, based on their evaluation of the information
provided by PIM, the Trustees, including the independent Trustees voting
separately, unanimously approved the continuation of the investment advisory
agreement for another year.
In considering the continuation of the investment advisory agreement, the
Trustees considered various factors that they determined were relevant,
including the factors described below. The Trustees did not identify any single
factor as the controlling factor in determining to approve the continuation of
the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services provided
by PIM to the Fund, taking into account the investment objective and strategy
of the Fund and the information related to the Fund provided to the Trustees at
each quarterly meeting. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for
the Fund and its research process. The Trustees considered the resources of PIM
and the personnel of PIM who provide investment management services to the
Fund. They also considered PIM's compliance and legal resources and personnel.
In addition, the Trustees considered the other services that PIM provides to
the Fund under the investment advisory agreement and that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. It was noted that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including
officers) as are necessary
52
Pioneer Bond Fund
- --------------------------------------------------------------------------------
for the Fund's operations. The Trustees considered the fees paid to PIM for the
provision of such services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services provided by PIM to the Fund were satisfactory and
consistent with the terms of the investment advisory agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
average performance of its peer group of funds as classified by Morningstar,
Inc. (Morningstar), an independent provider of investment company data, and
with the performance of the Fund's benchmark index. The Trustees considered
that the Fund's annualized total return was in the fourth quintile of its
Morningstar category for the one year period ended June 30, 2007, in the second
quintile of its Morningstar category for the three year period ended June 30,
2007, and in the first quintile of its Morningstar category for the five year
period ended June 30, 2007. (In all quintile rankings referred to throughout
this disclosure, first quintile is most favorable to the Fund's shareowners.
Thus, highest relative performance would be first quintile and lowest relative
expenses would also be first quintile.) After discussing the reasons for the
Fund's short-term underperformance with PIM, the Trustees concluded that the
investment performance of the Fund was satisfactory.
Management Fee and Expenses
The Trustees considered information on the fees and expenses of the Fund in
comparison to the management fees of its peer group of funds as classified by
Morningstar and the expense ratios of a peer group of funds selected on the
basis of criteria determined by the independent Trustees for this purpose using
data provided by Strategic Insight Mutual Fund Research and Consulting, LLC
(Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2007 was in the third quintile relative to the management fees
paid by other funds in its peer group Morningstar category for the comparable
period. The Trustees also considered that the Fund's expense ratio for the
twelve months ended June 30, 2007 was in the third quintile relative to its
Strategic Insight peer group.
53
Pioneer Bond Fund
- --------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (continued)
- --------------------------------------------------------------------------------
The Trustees also reviewed management fees charged by PIM to its separate
account clients with a similar investment strategy as the Fund. The Trustees
noted that in some instances the fee rates for those separate accounts were
lower than the management fees for the Fund and considered that, under the
investment advisory agreement with the Fund, PIM performs additional services
for the Fund that it does not provide to those other clients, including
oversight of the Fund's other service providers, regulatory compliance and
other services.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of services provided, taking
into account the fees charged by other advisers for managing comparable mutual
funds with similar strategies. The Trustees also concluded that the Fund's
expense ratio was reasonable, taking into account the size of the Fund, the
quality of services provided by PIM, the investment performance of the Fund and
the contractual expense limitation agreed to by PIM with respect to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
recognized that PIM should be entitled to earn a reasonable level of profit for
the services provided to the Fund. The Trustees concluded that PIM's
profitability with respect to the management of the Fund was not unreasonable.
Economies of Scale
The Trustees considered the economies of scale with respect to the management
of the Fund, whether the Fund had appropriately benefited from any economies of
scale, and whether there was potential for realization of any further economies
of scale. The
54
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Trustees considered PIM's agreement to add breakpoints to the management fee
schedule so that the management fee would reduce when Fund assets reach $1
billion and again when Fund assets reach $4 billion. The Trustees reviewed the
impact that the breakpoints would have on the Fund's management fee versus its
Morningstar category peer group. The Trustees concluded that, because of the
addition of breakpoints in the management fee schedule and the reduced fee
rates above certain asset levels, any perceived or potential economies of scale
would be shared between PIM and the Fund.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with
the Fund. The Trustees considered that affiliates of PIM serve as the Fund's
transfer agent and distributor. The Trustees considered the receipt by PIM and
its affiliates of sales loads and payments under Rule 12b-1 plans in respect of
the Fund and the other Pioneer funds. The Trustees further considered the
intangible benefits to PIM by virtue of its relationship with the Fund and the
other Pioneer funds. The Trustees concluded that the receipt of these benefits
was reasonable in the context of the overall relationship between PIM and the
Fund.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including all of the independent Trustees, concluded that the
terms of the investment advisory agreement between PIM and the Fund, including
the fees payable thereunder, were fair and reasonable and voted to approve the
proposed continuation of the investment advisory agreement for the Fund.
55
Pioneer Bond Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Margaret B.W. Graham Vincent Nave, Treasurer
Daniel K. Kingsbury Dorothy E. Bourassa, Secretary
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.pioneerinvestments.com. This information is also available
on the Securities and Exchange Commission's web site
at http://www.sec.gov.
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HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us
for assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the
Commission's web site at http://www.sec.gov. The filed form may also be viewed
and copied at the Commission's Public Reference Room in Washington, DC.
Information regarding the operations of the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
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.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
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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.
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AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
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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"
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SECTION III - POLICY DETAIL, CONTINUED
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SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
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PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
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AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
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o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
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GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
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(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Bond Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date February 29, 2008
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 February 29, 2008
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date February 29, 2008
* Print the name and title of each signing officer under his or her signature.