Pioneer Government
Income Fund
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Annual Report | July 31, 2015
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Ticker Symbols:
Class A AMGEX
Class C GOVCX
Class Y ATGIX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 31
Notes to Financial Statements 38
Report of Independent Registered Public Accounting Firm 46
Trustees, Officers and Service Providers 48
Pioneer Government Income Fund | Annual Report | 7/31/15 1
President's Letter
Dear Shareowner,
In the second half of 2015, two main issues have been dominating the attention
of global investors and policymakers alike, and shaping the current investment
environment: The Federal Reserve System's (the Fed's) deliberations over when to
begin normalizing interest rates in the U.S., and the increasing divergence in
economic activity around the globe. As 2015 began, market expectations were that
the Fed would likely begin raising interest rates by the middle of the year, but
a sluggish gross domestic product report in the first calendar quarter as well
as relatively benign inflation and wage growth contributed to the Fed's taking a
more cautionary approach and delaying the start of its rate-hike cycle. At the
same time, however, the U.S. labor market has continued its robust improvement,
moving the Fed closer to declaring victory on one of its main monetary policy
objectives -- full employment.
Meanwhile, global economic activity has continued to diverge, with developed
economies experiencing above-trend growth and most emerging markets economies
lagging the rest of the world. The slower pace of economic activity in the
emerging markets has been most evident in China, as the country's economy
continues to undergo a long, potentially painful adjustment from investment-led
growth to consumption-oriented growth. This divergence in global economic cycles
is likely to continue for some time, and we would expect an increased level of
volatility as global capital markets and policymakers adjust.
Pioneer Investments believes that investors in today's environment can
potentially benefit from the consistent and disciplined investment approach we
have used since our founding in 1928. We focus on identifying value across
global markets using proprietary research, careful risk management, and a
long-term perspective. Our ongoing goal is to produce compelling returns
consistent with the stated objectives of our investment products, and with our
shareowners' expectations. We believe our shareowners can benefit from the
experience and tenure of our investment teams as well as the insights generated
from our extensive research process.
2 Pioneer Government Income Fund | Annual Report | 7/31/15
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short-and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Government Income Fund | Annual Report | 7/31/15 3
Portfolio Management Discussion | 7/31/15
Led by longer-maturity Treasuries, U.S. government securities produced positive
performance over the 12-month period ended July 31, 2015, although interest
rates began moving higher in the second half of the period, eroding some of the
gains realized during the first six months. In the following interview, Richard
Schlanger and Charles Melchreit discuss the investment environment and the
factors that affected the performance of Pioneer Government Income Fund during
the 12-month period. Mr. Schlanger, a vice president and a portfolio manager at
Pioneer, and Mr. Melchreit, Director of Investment-Grade Management, a senior
vice president and a portfolio manager at Pioneer, are responsible for the
day-to-day management of the Fund.
Q How did the Fund perform during the 12-month period ended July 31, 2015?
A Pioneer Government Income Fund's Class A shares returned 1.83% at net asset
value during the 12-month period ended July 31, 2015, while the Fund's
benchmarks, the Barclays Government Bond Index and the Barclays U.S.
Mortgage-Backed Securities Index, returned 3.26% and 3.54%, respectively.
During the same period, the average return of the 70 mutual funds in
Lipper's Intermediate U.S. Government Funds category was 2.22%, and the
average return of the 313 mutual funds in Morningstar's
Intermediate-Government Bond Funds category was 2.42%.
Q How would you describe the investment environment for government securities
during the 12-month period ended July 31, 2015?
A The investment backdrop changed and became somewhat more volatile after the
midpoint of the 12-month period, with longer-maturity government
securities, notably U.S. Treasuries, giving up some of their gains from
earlier in the period. Overall, the yield curve - which reflects the
difference between yields of longer-maturity and shorter-maturity
securities - flattened over the 12 months, with longer-maturity government
securities outperforming shorter-maturity ones. After declining for a time,
the yields of 10-Year Treasuries bottomed at 1.64% in mid-January 2015, and
then began moving higher.
The markets also became more volatile as a host of factors influenced
investor sentiment, including: the perception that the U.S. economy was
gaining strength, as monthly job gains averaged more than 200,000; the
accompanying belief that the U.S. Federal Reserve System (the Fed) was
preparing to tighten monetary policy by raising short-term interest rates;
volatility in energy markets as oil prices declined early in the period,
rose somewhat, and then dropped again towards the end of the 12 months;
4 Pioneer Government Income Fund | Annual Report | 7/31/15
concerns over the effects of an economic slowdown in China; the start of a
quantitative easing policy by the European Central Bank (ECB); and certain
global political and economic developments, including the threat that
Greece would default on its debt obligations.
In the government bond market, longer-maturity Treasuries outperformed
other types of securities, although the early performance advantage of
Treasuries was partially offset as the yield curve widened and longer-
maturity interest rates moved higher over the final six months of the
period.
Q What were the principal factors that influenced the Fund's performance
during the 12-month period ended July 31, 2015? Specifically, why did the
Fund underperform its benchmarks during the period?
A The Fund's benchmark-relative performance was hurt the most by the
portfolio's shorter-duration stance relative to the Barclays Government
Bond Index during the 12-month period. (Duration is a measure of the
sensitivity of the price - the value of principal - of a fixed-income
investment to a change in interest rates, expressed as a number of years.)
The Fund, on average, had a 1.5-year shorter-than-benchmark duration during
the period. We maintained the shorter positioning because we believed that
interest rates were likely to begin rising, as we felt that the lower
yields we were observing were inconsistent with a strengthening economy.
Nevertheless, market interest rates declined, especially during the first
half of the 12-month period, and longer-duration portfolios outperformed.
Yield-curve positioning also detracted from the Fund's benchmark-relative
performance, as the portfolio's underweight exposures to 30-year and
five-year securities did not help. Although we significantly underweighted
the Fund in outperforming U.S. Treasuries throughout the 12 months, the
yield advantages of the portfolio's holdings of government-agency
mortgages and government-agency debentures helped to compensate for the
lack of exposure to Treasuries. While Treasuries accounted for
approximately 90% of the Barclays Government Bond Index, they represented,
on average, just 20% of the Fund's total investment portfolio over the
fiscal year ended July 31, 2015.
Allocations that helped support the Fund's results over the 12-month period
included the portfolio's out-of-benchmark position in government-
guaranteed commercial mortgages, which were used primarily to finance
multi-family apartment developments. The securities performed quite well
over the 12 months. Exposure to government-agency mortgages as well as good
security selection results in the Fund's mortgage portfolio also helped
performance, as we favored owning securities with lower prepayment risks,
including higher-coupon mortgages with good state and servicer
diversification.
Pioneer Government Income Fund | Annual Report | 7/31/15 5
Q Did the Fund have any investments in derivative securities during the
12-month period ended July 31, 2015? If so, did the holdings affect
benchmark-relative performance?
A Yes, we invested in some Treasury futures contracts as part of our policy
to maintain the Fund's shorter-than-benchmark duration. Because the
shorter-duration positioning detracted from the Fund's benchmark-relative
performance during the 12-month period, the use of the futures contracts
detracted from relative returns.
Q What factors affected the Fund's dividend distributions to shareholders
during the 12-month period ended July 31, 2015?
A The Fund's yield was relatively stable during the 12-month period. Looking
forward, if market interest rates continue to climb and it becomes more
likely that the Fed will start raising short-term rates, we think those
factors would increase the possibility that the Fund's distributions to
shareholders could start to rise.
Q What is your investment outlook and how have you positioned the portfolio
heading into the final months of 2015?
A We believe prospects for the U.S. economy look good, although uncertainties
continue to unsettle investor sentiment.
In the United States, the economy - as measured by recently revised gross
domestic product (GDP) figures - grew at an annual rate of nearly 4% during
the second quarter of 2015, a noticeable improvement over the slight GDP
increase of 0.6% in the first quarter. The job market continues to improve
and the housing market appears to be healing, with household formation
moving higher. All of those factors point to the Fed's starting to raise
short-term interest rates very gradually before the end of the calendar
year.
Nevertheless, the market remains volatile. Slowing growth trends in China,
combined with the devaluation of the Chinese currency and volatility in the
Chinese equity markets, have caused much consternation among market
participants. The debt situation in Greece remains a factor to be
monitored.
We have maintained the portfolio's short-duration stance relative to the
benchmark, as we think the chances are increasing that interest rates will
rise across the yield curve. We also continue to overweight the Fund in
government-agency mortgages, while de-emphasizing Treasuries, which are
highly interest-rate sensitive.
Overall, we believe the portfolio is well positioned for an environment of
continued economic growth in the United States, accompanied by gradually
rising interest rates.
6 Pioneer Government Income Fund | Annual Report | 7/31/15
Please refer to the Schedule of Investments on pages 15-30 for a full listing of
Fund securities.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of the issuers of underlying securities and their inability to meet
their debt obligations.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. 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.
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 Fund may invest in mortgage-backed securities, which, during times of
fluctuating interest rates, may increase or decrease more than other
fixed-income securities. Mortgage-backed securities are also subject to
prepayments.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making the Fund more susceptible to
any economic, political or regulatory developments or other risks affecting
those industries and sectors.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Government Income Fund | Annual Report | 7/31/15 7
Portfolio Summary | 7/31/15
Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Government Securities 75.0%
Collateralized Mortgage Obligations 13.9%
Foreign Government Bonds 5.8%
Asset Backed Securities 4.2%
Municipal Bonds 0.6%
U.S. Corporate Bonds 0.5%
Portfolio Maturity
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(As a percentage of total investment portfolio)
0-2 Years 5.8%
2-5 Years 38.0%
5-7 Years 38.5%
7-10 Years 10.3%
20+ Years 7.4%
10 Largest Holdings
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(As a percentage of total long-term holdings)*
1. U.S. Treasury Notes, 1.875%, 8/31/17 5.10%
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2. Fannie Mae, 4.5%, 12/1/43 4.93
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3. Private Export Funding Corp., 4.3%, 12/15/21 3.68
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4. Israel Government AID Bond, 5.5%, 4/26/24 3.52
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5. U.S. Treasury Notes, 2.625%, 11/15/20 3.52
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6. Private Export Funding Corp., 4.375%, 3/15/19 3.17
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7. U.S. Treasury Bonds, 4.25%, 5/15/39 2.98
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8. Federal National Mortgage Association, 4.92%, 7/25/20 2.98
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9. Fannie Mae, 4.0%, 4/1/39 2.89
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10. U.S. Treasury Notes, 0.625%, 5/31/17 2.87
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* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
8 Pioneer Government Income Fund | Annual Report | 7/31/15
Prices and Distributions | 7/31/15
Net Asset Value per Share
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Class 7/31/15 7/31/14
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A $9.39 $9.42
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C $9.39 $9.42
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Y $9.40 $9.43
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Distributions per Share: 8/1/14-7/31/15
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Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
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A $0.2020 $-- $--
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C $0.1326 $-- $--
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Y $0.2330 $-- $--
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Index Definitions
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The Barclays Government Bond Index is an unmanaged index that measures the
performance of the U.S. government bond market. The Barclays U.S.
Mortgage-Backed Securities Index is an unmanaged index including 15- and 30-year
fixed-rate securities backed by mortgage pools of the Government National
Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC) and
Federal National Mortgage Association (FNMA). Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees, expenses or sales charges. It is not possible to invest
directly in an index.
The indices defined here pertain to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 10-12.
Pioneer Government Income Fund | Annual Report | 7/31/15 9
Performance Update | 7/31/15 Class A Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Government Income Fund at public
offering price during the periods shown, compared to that of the Barclays
Government Bond Index and the Barclays U.S. Mortgage-Backed Securities Index.
Average Annual Total Returns
(As of July 31, 2015)
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Barclays
U.S.
Net Public Barclays Mortgage-
Asset Offering Government Backed
Value Price Bond Securities
Period (NAV) (POP) Index Index
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10 Years 3.69% 3.22% 4.20% 4.68%
5 Years 1.93 0.99 2.66 2.85
1 Year 1.83 -2.71 3.26 3.54
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Expense Ratio
(Per prospectus dated December 1, 2014)
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Gross
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1.28%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Barclays U.S.
Pioneer Government Barclays Government Mortgage-Backed
Income Fund Bond Index Securities Index
7/31/2005 $ 9,550 $10,000 $10,000
7/31/2006 $ 9,627 $10,124 $10,235
7/31/2007 $10,054 $10,711 $10,808
7/31/2008 $10,706 $11,634 $11,560
7/31/2009 $11,624 $12,411 $12,766
7/31/2010 $12,482 $13,238 $13,725
7/31/2011 $12,851 $13,670 $14,253
7/31/2012 $13,625 $14,703 $14,943
7/31/2013 $13,211 $14,330 $14,647
7/31/2014 $13,484 $14,618 $15,254
7/31/2015 $13,732 $15,095 $15,793
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Pioneer Government Income Fund acquired the assets and liabilities of AmSouth
Government Income Fund on September 23, 2005. The performance shown for Class A
shares of the Fund for periods prior to September 23, 2005, is based on the
performance of AmSouth Government Income Fund's Class A shares prior to the
reorganization, which has been restated to reflect differences in any applicable
sales charges (but not differences in expenses). If the performance had been
adjusted to reflect all differences in expenses, the performance of Class A
shares of the Fund would be lower than that shown.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer Government Income Fund | Annual Report | 7/31/15
Performance Update | 7/31/15 Class C Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Government Income Fund during the
periods shown, compared to that of the Barclays Government Bond Index and the
Barclays U.S. Mortgage-Backed Securities Index.
Average Annual Total Returns
(As of July 31, 2015)
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Barclays
U.S.
Barclays Mortgage-
Government Backed
If If Bond Securities
Period Held Redeemed Index Index
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10 Years 2.93% 2.93% 4.20% 4.68%
5 Years 1.21 1.21 2.66 2.85
1 Year 1.09 1.09 3.26 3.54
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Expense Ratio
(Per prospectus dated December 1, 2014)
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Gross
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2.02%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Barclays U.S.
Pioneer Government Barclays Government Mortgage-Backed
Income Fund Bond Index Securities Index
7/31/2005 $10,000 $10,000 $10,000
7/31/2006 $ 9,982 $10,124 $10,235
7/31/2007 $10,355 $10,711 $10,808
7/31/2008 $10,945 $11,634 $11,560
7/31/2009 $11,799 $12,411 $12,766
7/31/2010 $12,565 $13,238 $13,725
7/31/2011 $12,857 $13,670 $14,253
7/31/2012 $13,537 $14,703 $14,943
7/31/2013 $13,039 $14,330 $14,647
7/31/2014 $13,201 $14,618 $15,254
7/31/2015 $13,345 $15,095 $15,793
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Pioneer Government Income Fund acquired the assets and liabilities of AmSouth
Government Income Fund on September 23, 2005. The performance shown for Class C
shares of the Fund for periods prior to September 23, 2005, is based upon the
performance of the predecessor Fund's Class B shares as adjusted to reflect
sales charges applicable to Class C shares (but not other differences in
expenses). If the performance had been adjusted to reflect all differences in
expenses, the performance of Class C shares of the Fund would be lower than that
shown.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all Funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Government Income Fund | Annual Report | 7/31/15 11
Performance Update | 7/31/15 Class Y Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Government Income Fund during the
periods shown, compared to that of the Barclays Government Bond Index and
Barclays U.S. Mortgage-Backed Securities Index.
Average Annual Total Returns
(As of July 31, 2015)
--------------------------------------------------------------------------------
Barclays
U.S.
Barclays Mortgage-
Net Asset Government Backed
Value Bond Securities
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 Years 4.12% 4.20% 4.68%
5 Years 2.33 2.66 2.85
1 Year 2.17 3.26 3.54
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.92%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Barclays U.S.
Pioneer Government Barclays Government Mortgage-Backed
Income Fund Bond Index Securities Index
7/31/2005 $5,000,000 $5,000,000 $5,000,000
7/31/2006 $5,054,027 $5,061,992 $5,117,317
7/31/2007 $5,301,322 $5,355,667 $5,403,957
7/31/2008 $5,671,289 $5,817,089 $5,779,866
7/31/2009 $6,192,340 $6,205,318 $6,382,901
7/31/2010 $6,672,230 $6,619,194 $6,862,699
7/31/2011 $6,893,775 $6,834,921 $7,126,654
7/31/2012 $7,345,963 $7,351,707 $7,471,733
7/31/2013 $7,151,504 $7,165,157 $7,323,706
7/31/2014 $7,328,811 $7,309,060 $7,626,872
7/31/2015 $7,487,675 $7,547,371 $7,896,508
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Pioneer Government Income Fund acquired the assets and liabilities of AmSouth
Government Income Fund on September 23, 2005. The performance shown for Class Y
shares of the Fund for periods prior to September 23, 2005, is based on the
performance of AmSouth Government Income Fund's Class I shares prior to the
reorganization, which has been restated to reflect differences in any applicable
sales charges (but not differences in expenses). If the performance had been
adjusted to reflect all differences in expenses, the performance of Class Y
shares of the Fund would be lower than that shown. Class Y shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Government Income Fund | Annual Report | 7/31/15
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 Government Income Fund
Based on actual returns from February 1, 2015, through July 31, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 2/1/15
--------------------------------------------------------------------------------
Ending Account Value $ 993.95 $ 990.50 $ 996.68
(after expenses)
on 7/31/15
--------------------------------------------------------------------------------
Expenses Paid . $ 6.58 $ 9.97 $ 4.75
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.33%, 2.02%,
and 0.96% for Class A, C, and Y respectively, multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the
one-half year period).
Pioneer Government Income Fund | Annual Report | 7/31/15 13
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of investing in the Fund and
other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Government Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from February 1, 2015, through July 31, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 2/1/15
Ending Account Value $1,018.20 $1,014.78 $1,020.03
(after expenses)
on 7/31/15
Expenses Paid $ 6.66 $ 10.09 $ 4.81
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.33%, 2.02%,
and 0.96% for Class A, C, and Y respectively, multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the
one-half year period).
14 Pioneer Government Income Fund | Annual Report | 7/31/15
Schedule of Investments | 7/31/15
------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 4.1%
DIVERSIFIED FINANCIALS -- 4.1%
Other Diversified Financial Services -- 4.1%
301,904 Small Business Administration Participation
Certificates, 4.2%, 9/1/29 $ 322,022
538,769 Small Business Administration Participation
Certificates, 4.625%, 2/1/25 572,541
554,158 Small Business Administration Participation
Certificates, 4.84%, 5/1/25 591,991
636,493 Small Business Administration Participation
Certificates, 5.37%, 4/1/28 709,783
438,261 Small Business Administration Participation
Certificates, 5.63%, 10/1/28 488,504
129,690 Small Business Administration Participation
Certificates, 5.72%, 1/1/29 146,618
794,685 Small Business Administration Participation
Certificates, 6.02%, 8/1/28 901,921
148,985 Small Business Administration Participation
Certificates, 6.14%, 1/1/22 162,708
398,011 Small Business Administration Participation
Certificates, 6.22%, 12/1/28 452,768
-------------
$ 4,348,856
-------------
Total Diversified Financials $ 4,348,856
------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $4,035,535) $ 4,348,856
------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 13.7%
BANKS -- 4.2%
Thrifts & Mortgage Finance -- 4.2%
897,622 Government National Mortgage Association
REMICS, 3.25%, 4/16/27 $ 936,673
1,242,383 3.17 La Hipotecaria Panamanian Mortgage
Trust 2010-1, Floating Rate Note,
9/8/39 (144A) 1,283,537
280,109 3.26 La Hipotecaria Panamanian Mortgage
Trust 2014-1, Floating Rate Note,
11/24/42 (144A) 286,936
574,337 Vendee Mortgage Trust 2008-1, 5.25%, 1/15/32 637,879
1,174,449 Vendee Mortgage Trust 2010-1, 4.25%, 2/15/35 1,262,603
-------------
$ 4,407,628
-------------
Total Banks $ 4,407,628
------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Government Income Fund | Annual Report | 7/31/15 15
Schedule of Investments | 7/31/15 (continued)
------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.7%
Other Diversified Financial Services -- 1.7%
1,687,946 Federal National Mortgage Association
REMICS, 3.0%, 6/25/23 $ 1,760,724
-------------
Total Diversified Financials $ 1,760,724
------------------------------------------------------------------------------------------
GOVERNMENT -- 7.8%
Government -- 7.8%
131,094 0.59 Federal Home Loan Mortgage Corp. REMICS,
Floating Rate Note, 12/15/20 $ 131,914
981,985 3.42 Federal National Mortgage Association
2004-T2, Floating Rate Note, 7/25/43 1,020,793
92,277 Federal National Mortgage Association
REMICS, 4.5%, 6/25/29 99,149
2,925,541 Federal National Mortgage Association,
4.92%, 7/25/20 3,107,492
1,451,380 Government National Mortgage Association
REMICS, 2.1%, 2/16/48 1,460,894
126,088 Government National Mortgage Association,
5.25%, 8/16/35 141,596
2,000,000 4.65 Government National Mortgage Association,
Floating Rate Note, 1/16/50 2,181,112
162,951 0.63 Government National Mortgage Association,
Floating Rate Note, 12/16/29 163,656
-------------
$ 8,306,606
-------------
Total Government $ 8,306,606
------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $13,966,877) $ 14,474,958
------------------------------------------------------------------------------------------
CORPORATE BONDS -- 0.5%
DIVERSIFIED FINANCIALS -- 0.5%
Other Diversified Financial Services -- 0.5%
501,785 Helios Leasing I LLC, 2.018%, 5/29/24 $ 500,487
-------------
Total Diversified Financials $ 500,487
------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $541,524) $ 500,487
------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 74.0%
356,380 Fannie Mae, 3.5%, 4/1/45 $ 370,185
1,297,573 Fannie Mae, 3.763%, 12/1/20 1,395,797
2,715,042 Fannie Mae, 4.0%, 10/1/41 2,901,082
552,685 Fannie Mae, 4.0%, 4/1/25 589,720
2,832,586 Fannie Mae, 4.0%, 4/1/39 3,014,282
1,800,827 Fannie Mae, 4.0%, 4/1/41 1,925,533
The accompanying notes are an integral part of these financial statements.
16 Pioneer Government Income Fund | Annual Report | 7/31/15
------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
831,997 Fannie Mae, 4.0%, 7/1/44 $ 886,942
78,525 Fannie Mae, 4.0%, 9/1/20 82,368
23,027 Fannie Mae, 4.5%, 11/1/20 24,142
4,682,260 Fannie Mae, 4.5%, 12/1/43 5,146,968
109,452 Fannie Mae, 5.0%, 1/1/20 117,366
264,376 Fannie Mae, 5.0%, 10/1/34 287,846
1,348,575 Fannie Mae, 5.0%, 2/1/39 1,495,222
114,487 Fannie Mae, 5.0%, 3/1/23 123,723
271,846 Fannie Mae, 5.0%, 7/1/34 295,488
92,862 Fannie Mae, 5.0%, 8/1/18 97,211
63,616 Fannie Mae, 5.72%, 11/1/28 72,345
47,112 Fannie Mae, 5.72%, 6/1/29 53,622
62,884 Fannie Mae, 5.75%, 3/1/33 71,933
31,968 Fannie Mae, 5.9%, 11/1/27 36,409
17,509 Fannie Mae, 5.9%, 2/1/28 17,615
89,591 Fannie Mae, 5.9%, 4/1/28 102,008
325,022 Fannie Mae, 6.0%, 11/1/34 371,044
32,358 Fannie Mae, 6.0%, 11/1/34 36,700
50,317 Fannie Mae, 6.0%, 12/1/37 57,005
69,874 Fannie Mae, 6.5%, 11/1/47 78,064
128,295 Fannie Mae, 6.5%, 7/1/32 149,013
933,400 Federal Home Loan Mortgage Corp.,
3.5%, 12/1/44 967,770
1,189,493 Federal Home Loan Mortgage Corp.,
3.5%, 4/1/45 1,233,293
745,443 Federal Home Loan Mortgage Corp.,
4.0%, 6/1/42 791,801
110,400 Federal Home Loan Mortgage Corp.,
5.0%, 10/1/38 121,360
102,249 Federal Home Loan Mortgage Corp.,
5.0%, 9/1/38 112,396
20,387 Federal Home Loan Mortgage Corp.,
5.5%, 1/1/34 22,765
114,068 Federal Home Loan Mortgage Corp.,
6.0%, 1/1/33 130,265
140,697 Federal Home Loan Mortgage Corp.,
6.0%, 1/1/38 158,874
51,928 Federal Home Loan Mortgage Corp.,
6.0%, 11/1/33 58,776
3,336 Federal Home Loan Mortgage Corp.,
6.0%, 5/1/16 3,384
3,027 Federal Home Loan Mortgage Corp.,
6.0%, 6/1/16 3,074
The accompanying notes are an integral part of these financial statements.
Pioneer Government Income Fund | Annual Report | 7/31/15 17
Schedule of Investments | 7/31/15 (continued)
------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
73,160 Federal Home Loan Mortgage Corp.,
6.0%, 7/1/36 $ 82,818
20,834 Federal Home Loan Mortgage Corp.,
6.0%, 7/1/36 23,744
138,495 Federal Home Loan Mortgage Corp.,
6.0%, 7/1/38 156,370
14,417 Federal Home Loan Mortgage Corp.,
6.0%, 8/1/18 16,276
10,767 Federal Home Loan Mortgage Corp.,
6.5%, 5/1/31 12,303
75,429 Federal Home Loan Mortgage Corp.,
7.0%, 10/1/46 85,760
4,226 Federal Home Loan Mortgage Corp.,
7.0%, 6/1/31 4,240
923,178 Federal National Mortgage Association,
3.0%, 12/1/21 962,308
2,000,000 Financing Corp. Fico, 5/11/18 (c) 1,933,442
914,659 Government National Mortgage Association I,
3.5%, 1/15/44 960,396
688,668 Government National Mortgage Association I,
3.5%, 1/15/45 719,753
895,597 Government National Mortgage Association I,
3.5%, 7/15/42 939,625
600,558 Government National Mortgage Association I,
4.0%, 1/15/45 641,964
135,044 Government National Mortgage Association I,
4.0%, 3/15/44 143,835
261,701 Government National Mortgage Association I,
4.0%, 7/15/41 279,251
386,911 Government National Mortgage Association I,
4.0%, 8/15/40 413,157
133,351 Government National Mortgage Association I,
4.0%, 9/15/40 142,137
186,718 Government National Mortgage Association I,
4.0%, 9/15/44 198,873
27,943 Government National Mortgage Association I,
4.5%, 12/15/19 29,621
28,742 Government National Mortgage Association I,
4.5%, 4/15/18 30,097
74,896 Government National Mortgage Association I,
4.5%, 4/15/20 79,396
61,064 Government National Mortgage Association I,
4.5%, 6/15/19 64,907
263,510 Government National Mortgage Association I,
4.5%, 6/15/25 280,320
The accompanying notes are an integral part of these financial statements.
18 Pioneer Government Income Fund | Annual Report | 7/31/15
------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
18,613 Government National Mortgage Association I,
4.5%, 8/15/19 $ 19,587
77,222 Government National Mortgage Association I,
5.0%, 2/15/19 82,336
322,242 Government National Mortgage Association I,
5.0%, 7/15/40 357,369
56,334 Government National Mortgage Association I,
5.5%, 1/15/29 63,317
70,238 Government National Mortgage Association I,
5.5%, 10/15/19 73,872
81,865 Government National Mortgage Association I,
5.5%, 10/15/33 94,017
57,471 Government National Mortgage Association I,
5.5%, 10/15/34 65,514
29,799 Government National Mortgage Association I,
5.5%, 4/15/19 31,061
39,934 Government National Mortgage Association I,
5.5%, 4/15/31 44,866
23,870 Government National Mortgage Association I,
5.5%, 6/15/18 24,744
169,936 Government National Mortgage Association I,
5.5%, 8/15/33 195,412
81,528 Government National Mortgage Association I,
5.5%, 9/15/33 92,712
21,166 Government National Mortgage Association I,
5.72%, 4/15/29 23,803
19,504 Government National Mortgage Association I,
6.0%, 1/15/24 22,254
41,535 Government National Mortgage Association I,
6.0%, 1/15/33 48,098
71,192 Government National Mortgage Association I,
6.0%, 1/15/33 82,877
8,060 Government National Mortgage Association I,
6.0%, 10/15/28 9,236
19,051 Government National Mortgage Association I,
6.0%, 10/15/32 21,525
75,403 Government National Mortgage Association I,
6.0%, 10/15/32 85,194
87,915 Government National Mortgage Association I,
6.0%, 10/15/34 101,980
67,679 Government National Mortgage Association I,
6.0%, 10/15/34 77,165
180,616 Government National Mortgage Association I,
6.0%, 10/15/34 210,104
8,474 Government National Mortgage Association I,
6.0%, 11/15/32 9,575
The accompanying notes are an integral part of these financial statements.
Pioneer Government Income Fund | Annual Report | 7/31/15 19
Schedule of Investments | 7/31/15 (continued)
------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
10,034 Government National Mortgage Association I,
6.0%, 11/15/32 $ 11,480
144,178 Government National Mortgage Association I,
6.0%, 11/15/33 164,868
59,260 Government National Mortgage Association I,
6.0%, 11/15/37 67,445
222,596 Government National Mortgage Association I,
6.0%, 12/15/23 251,499
157,281 Government National Mortgage Association I,
6.0%, 12/15/32 178,966
433,307 Government National Mortgage Association I,
6.0%, 12/15/32 501,600
119,327 Government National Mortgage Association I,
6.0%, 12/15/32 138,334
21,731 Government National Mortgage Association I,
6.0%, 12/15/32 25,297
93,595 Government National Mortgage Association I,
6.0%, 12/15/32 106,810
220,530 Government National Mortgage Association I,
6.0%, 12/15/32 251,413
23,021 Government National Mortgage Association I,
6.0%, 12/15/32 26,777
86,835 Government National Mortgage Association I,
6.0%, 2/15/29 101,012
123,105 Government National Mortgage Association I,
6.0%, 2/15/33 143,314
30,365 Government National Mortgage Association I,
6.0%, 2/15/33 34,308
172,863 Government National Mortgage Association I,
6.0%, 2/15/33 201,752
103,641 Government National Mortgage Association I,
6.0%, 2/15/33 118,698
54,184 Government National Mortgage Association I,
6.0%, 3/15/19 61,219
76,913 Government National Mortgage Association I,
6.0%, 3/15/33 86,899
57,820 Government National Mortgage Association I,
6.0%, 3/15/33 66,185
46,319 Government National Mortgage Association I,
6.0%, 3/15/33 53,849
220,536 Government National Mortgage Association I,
6.0%, 3/15/34 256,624
63,783 Government National Mortgage Association I,
6.0%, 4/15/28 74,266
24,527 Government National Mortgage Association I,
6.0%, 4/15/33 28,095
The accompanying notes are an integral part of these financial statements.
20 Pioneer Government Income Fund | Annual Report | 7/31/15
------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
43,427 Government National Mortgage Association I,
6.0%, 5/15/33 $ 49,703
116,148 Government National Mortgage Association I,
6.0%, 6/15/31 132,446
82,182 Government National Mortgage Association I,
6.0%, 6/15/34 95,696
45,781 Government National Mortgage Association I,
6.0%, 8/15/34 52,037
211,125 Government National Mortgage Association I,
6.0%, 8/15/34 242,018
127,859 Government National Mortgage Association I,
6.0%, 8/15/38 145,739
309,476 Government National Mortgage Association I,
6.0%, 9/15/32 354,138
78,608 Government National Mortgage Association I,
6.0%, 9/15/32 89,852
19,619 Government National Mortgage Association I,
6.0%, 9/15/33 22,166
31,904 Government National Mortgage Association I,
6.0%, 9/15/34 36,608
178,617 Government National Mortgage Association I,
6.0%, 9/15/35 207,808
54,750 Government National Mortgage Association I,
6.5%, 1/15/32 62,476
35,231 Government National Mortgage Association I,
6.5%, 10/15/24 40,307
26,374 Government National Mortgage Association I,
6.5%, 10/15/28 30,337
6,716 Government National Mortgage Association I,
6.5%, 10/15/28 7,664
46,562 Government National Mortgage Association I,
6.5%, 11/15/31 53,133
15,160 Government National Mortgage Association I,
6.5%, 2/15/28 17,299
26,665 Government National Mortgage Association I,
6.5%, 2/15/29 31,052
31,007 Government National Mortgage Association I,
6.5%, 2/15/32 35,382
29,558 Government National Mortgage Association I,
6.5%, 2/15/32 35,415
22,246 Government National Mortgage Association I,
6.5%, 2/15/32 26,331
10,395 Government National Mortgage Association I,
6.5%, 2/15/32 11,862
19,353 Government National Mortgage Association I,
6.5%, 2/15/32 22,789
The accompanying notes are an integral part of these financial statements.
Pioneer Government Income Fund | Annual Report | 7/31/15 21
Schedule of Investments | 7/31/15 (continued)
------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
19,172 Government National Mortgage Association I,
6.5%, 3/15/29 $ 21,878
91,144 Government National Mortgage Association I,
6.5%, 3/15/29 104,006
105,632 Government National Mortgage Association I,
6.5%, 3/15/32 121,859
12,065 Government National Mortgage Association I,
6.5%, 4/15/17 12,178
14,525 Government National Mortgage Association I,
6.5%, 4/15/28 16,575
81,371 Government National Mortgage Association I,
6.5%, 4/15/28 92,854
96,179 Government National Mortgage Association I,
6.5%, 4/15/32 113,563
7,858 Government National Mortgage Association I,
6.5%, 4/15/32 8,967
17,496 Government National Mortgage Association I,
6.5%, 4/15/32 20,365
50,614 Government National Mortgage Association I,
6.5%, 4/15/33 57,762
6,709 Government National Mortgage Association I,
6.5%, 5/15/29 7,656
41,284 Government National Mortgage Association I,
6.5%, 5/15/31 47,110
19,209 Government National Mortgage Association I,
6.5%, 5/15/32 22,852
8,291 Government National Mortgage Association I,
6.5%, 5/15/32 9,606
45,143 Government National Mortgage Association I,
6.5%, 5/15/32 51,513
6,237 Government National Mortgage Association I,
6.5%, 5/15/32 7,118
10,244 Government National Mortgage Association I,
6.5%, 6/15/17 10,272
12,061 Government National Mortgage Association I,
6.5%, 6/15/28 14,084
27,876 Government National Mortgage Association I,
6.5%, 6/15/29 31,810
8,409 Government National Mortgage Association I,
6.5%, 6/15/31 9,596
22,187 Government National Mortgage Association I,
6.5%, 6/15/32 25,318
17,463 Government National Mortgage Association I,
6.5%, 6/15/32 20,053
38,989 Government National Mortgage Association I,
6.5%, 7/15/31 44,491
The accompanying notes are an integral part of these financial statements.
22 Pioneer Government Income Fund | Annual Report | 7/31/15
------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
10,714 Government National Mortgage Association I,
6.5%, 7/15/32 $ 12,226
9,380 Government National Mortgage Association I,
6.5%, 7/15/32 10,704
10,004 Government National Mortgage Association I,
6.5%, 8/15/28 11,415
36,782 Government National Mortgage Association I,
6.5%, 8/15/32 41,973
51,935 Government National Mortgage Association I,
6.5%, 8/15/32 59,622
24,174 Government National Mortgage Association I,
6.5%, 9/15/31 27,585
24,992 Government National Mortgage Association I,
6.5%, 9/15/32 30,113
45,668 Government National Mortgage Association I,
6.5%, 9/15/32 52,201
47,041 Government National Mortgage Association I,
6.5%, 9/15/32 53,912
8,400 Government National Mortgage Association I,
6.75%, 4/15/26 9,585
19,437 Government National Mortgage Association I,
7.0%, 1/15/28 21,864
144,044 Government National Mortgage Association I,
7.0%, 1/15/31 155,097
3,438 Government National Mortgage Association I,
7.0%, 10/15/16 3,448
12,871 Government National Mortgage Association I,
7.0%, 11/15/26 14,884
69,390 Government National Mortgage Association I,
7.0%, 11/15/29 79,325
8,735 Government National Mortgage Association I,
7.0%, 11/15/31 9,075
33,309 Government National Mortgage Association I,
7.0%, 12/15/30 34,366
41,446 Government National Mortgage Association I,
7.0%, 12/15/30 42,522
47,893 Government National Mortgage Association I,
7.0%, 12/15/30 57,536
27,246 Government National Mortgage Association I,
7.0%, 2/15/28 30,465
27,154 Government National Mortgage Association I,
7.0%, 3/15/28 30,298
58,941 Government National Mortgage Association I,
7.0%, 3/15/32 66,704
33,575 Government National Mortgage Association I,
7.0%, 4/15/28 37,477
The accompanying notes are an integral part of these financial statements.
Pioneer Government Income Fund | Annual Report | 7/31/15 23
Schedule of Investments | 7/31/15 (continued)
------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
29,235 Government National Mortgage Association I,
7.0%, 4/15/29 $ 32,600
15,464 Government National Mortgage Association I,
7.0%, 4/15/31 16,623
48,422 Government National Mortgage Association I,
7.0%, 4/15/32 55,156
68,625 Government National Mortgage Association I,
7.0%, 5/15/29 76,744
8,705 Government National Mortgage Association I,
7.0%, 5/15/31 9,126
28,550 Government National Mortgage Association I,
7.0%, 6/15/27 33,623
5,202 Government National Mortgage Association I,
7.0%, 6/15/29 5,243
36,971 Government National Mortgage Association I,
7.0%, 7/15/25 42,469
6,575 Government National Mortgage Association I,
7.0%, 7/15/28 6,632
29,934 Government National Mortgage Association I,
7.0%, 7/15/28 33,955
16,247 Government National Mortgage Association I,
7.0%, 7/15/29 18,645
28,202 Government National Mortgage Association I,
7.0%, 8/15/23 31,083
83,283 Government National Mortgage Association I,
7.0%, 9/15/24 97,190
42,292 Government National Mortgage Association I,
7.0%, 9/15/31 47,797
44,604 Government National Mortgage Association I,
7.5%, 10/15/23 50,193
57,934 Government National Mortgage Association I,
7.5%, 10/15/27 67,250
13,906 Government National Mortgage Association I,
7.5%, 10/15/29 15,869
4,557 Government National Mortgage Association I,
7.5%, 12/15/25 4,750
24,471 Government National Mortgage Association I,
7.5%, 2/15/27 27,722
16,938 Government National Mortgage Association I,
7.5%, 2/15/31 17,699
10,370 Government National Mortgage Association I,
7.5%, 3/15/23 11,365
44,616 Government National Mortgage Association I,
7.5%, 3/15/27 54,218
7,955 Government National Mortgage Association I,
7.5%, 3/15/31 8,314
The accompanying notes are an integral part of these financial statements.
24 Pioneer Government Income Fund | Annual Report | 7/31/15
------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
27,577 Government National Mortgage Association I,
7.5%, 4/15/23 $ 27,960
1,753 Government National Mortgage Association I,
7.5%, 6/15/24 1,825
17,697 Government National Mortgage Association I,
7.5%, 6/15/29 20,257
11,510 Government National Mortgage Association I,
7.5%, 8/15/25 11,858
1,142 Government National Mortgage Association I,
7.5%, 8/15/29 1,156
2,996 Government National Mortgage Association I,
7.5%, 8/15/29 3,081
6,952 Government National Mortgage Association I,
7.5%, 9/15/25 7,855
3,889 Government National Mortgage Association I,
7.5%, 9/15/25 3,903
66,938 Government National Mortgage Association I,
7.5%, 9/15/29 70,230
38,264 Government National Mortgage Association I,
8.25%, 5/15/20 41,897
2,126 Government National Mortgage Association I,
8.5%, 8/15/21 2,136
9,510 Government National Mortgage Association I,
9.0%, 1/15/20 9,715
1,289 Government National Mortgage Association I,
9.0%, 12/15/19 1,409
2,303 Government National Mortgage Association I,
9.0%, 6/15/22 2,416
292 Government National Mortgage Association I,
9.0%, 9/15/21 323
188,396 Government National Mortgage Association II,
4.0%, 10/20/44 200,172
36,906 Government National Mortgage Association II,
5.0%, 1/20/20 39,452
101,036 Government National Mortgage Association II,
5.0%, 12/20/18 107,172
69,135 Government National Mortgage Association II,
5.0%, 2/20/19 73,325
236,588 Government National Mortgage Association II,
5.5%, 10/20/37 265,556
68,482 Government National Mortgage Association II,
5.75%, 4/20/33 76,740
155,867 Government National Mortgage Association II,
5.75%, 6/20/33 174,652
29,210 Government National Mortgage Association II,
5.9%, 1/20/28 32,787
The accompanying notes are an integral part of these financial statements.
Pioneer Government Income Fund | Annual Report | 7/31/15 25
Schedule of Investments | 7/31/15 (continued)
------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
57,749 Government National Mortgage Association II,
5.9%, 11/20/27 $ 64,269
109,569 Government National Mortgage Association II,
5.9%, 7/20/28 120,922
119,846 Government National Mortgage Association II,
6.0%, 1/20/33 138,177
29,103 Government National Mortgage Association II,
6.0%, 10/20/31 33,218
138,645 Government National Mortgage Association II,
6.0%, 10/20/33 159,514
44,823 Government National Mortgage Association II,
6.0%, 12/20/18 46,616
79,999 Government National Mortgage Association II,
6.0%, 6/20/34 91,713
10,766 Government National Mortgage Association II,
6.0%, 7/20/17 11,070
25,495 Government National Mortgage Association II,
6.0%, 7/20/19 26,671
90,744 Government National Mortgage Association II,
6.45%, 1/20/33 103,538
49,179 Government National Mortgage Association II,
6.45%, 11/20/32 56,096
51,209 Government National Mortgage Association II,
6.45%, 7/20/32 58,414
33,173 Government National Mortgage Association II,
6.5%, 1/20/24 37,884
56,375 Government National Mortgage Association II,
6.5%, 10/20/32 67,889
70,519 Government National Mortgage Association II,
6.5%, 3/20/34 85,389
17,833 Government National Mortgage Association II,
6.5%, 4/20/31 21,240
12,979 Government National Mortgage Association II,
6.5%, 6/20/31 15,293
61,224 Government National Mortgage Association II,
6.5%, 8/20/28 71,987
14,519 Government National Mortgage Association II,
7.0%, 1/20/31 17,708
13,255 Government National Mortgage Association II,
7.0%, 11/20/31 15,974
9,634 Government National Mortgage Association II,
7.0%, 2/20/29 11,633
6,896 Government National Mortgage Association II,
7.0%, 3/20/31 8,430
13,190 Government National Mortgage Association II,
7.0%, 5/20/26 15,458
The accompanying notes are an integral part of these financial statements.
26 Pioneer Government Income Fund | Annual Report | 7/31/15
------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
27,436 Government National Mortgage Association II,
7.0%, 6/20/28 $ 32,862
32,938 Government National Mortgage Association II,
7.0%, 7/20/31 40,304
26,138 Government National Mortgage Association II,
7.0%, 8/20/27 30,928
8,379 Government National Mortgage Association II,
7.5%, 12/20/30 10,414
13,766 Government National Mortgage Association II,
7.5%, 5/20/30 15,795
4,584 Government National Mortgage Association II,
7.5%, 6/20/30 5,694
14,171 Government National Mortgage Association II,
7.5%, 7/20/30 17,519
14,727 Government National Mortgage Association II,
7.5%, 8/20/30 18,310
11,819 Government National Mortgage Association II,
8.0%, 3/20/30 14,879
28,674 Government National Mortgage Association II,
8.0%, 4/20/30 36,132
56 Government National Mortgage Association II,
8.0%, 5/20/25 63
15,349 Government National Mortgage Association II,
8.0%, 5/20/30 19,306
18,023 Government National Mortgage Association II,
8.0%, 6/20/30 22,770
2,783 Government National Mortgage Association II,
9.0%, 11/20/24 2,796
2,879 Government National Mortgage Association II,
9.0%, 3/20/22 2,878
406 Government National Mortgage Association II,
9.0%, 4/20/22 406
1,610 Government National Mortgage Association II,
9.0%, 9/20/21 1,768
600,000 Private Export Funding Corp., 2.25%, 12/15/17 615,118
1,300,000 Private Export Funding Corp., 2.8%, 5/15/22 1,323,912
3,420,000 Private Export Funding Corp., 4.3%, 12/15/21 3,838,256
3,000,000 Private Export Funding Corp., 4.375%, 3/15/19 3,308,061
1,655,000 Private Export Funding Corp., 5.45%, 9/15/17 1,809,327
1,118,085 Tennessee Valley Authority, 4.929%, 1/15/21 1,234,247
800,000 Tennessee Valley Authority, 5.5%, 6/15/38 1,021,658
1,500,000 U.S. Treasury Bonds, 3.0%, 5/15/42 1,522,500
2,500,000 U.S. Treasury Bonds, 4.25%, 5/15/39 3,114,648
1,650,000 U.S. Treasury Bonds, 4.5%, 5/15/38 2,130,434
The accompanying notes are an integral part of these financial statements.
Pioneer Government Income Fund | Annual Report | 7/31/15 27
Schedule of Investments | 7/31/15 (continued)
------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
2,503,775 U.S. Treasury Inflation Indexed Bonds,
0.125%, 7/15/24 $ 2,431,596
465,000 0.12 U.S. Treasury Note, Floating Rate
Note, 7/31/16 465,094
3,000,000 U.S. Treasury Notes, 0.625%, 5/31/17 2,998,827
5,200,000 U.S. Treasury Notes, 1.875%, 8/31/17 5,324,706
3,500,000 U.S. Treasury Notes, 2.625%, 11/15/20 3,669,533
------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(Cost $75,195,130) $ 78,257,440
------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 5.8%
3,000,000 Israel Government AID Bond, 5.5%, 4/26/24 $ 3,676,848
2,000,000 Israel Government AID Bond, 5.5%, 9/18/23 2,436,186
------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $5,856,680) $ 6,113,034
------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 0.6% (d)
Municipal General -- 0.3%
125,000 Virginia Commonwealth Transportation Board,
4.0%, 5/15/31 $ 131,624
125,000 Virginia Commonwealth Transportation Board,
4.0%, 5/15/32 131,136
-------------
$ 262,760
------------------------------------------------------------------------------------------
Higher Municipal Education -- 0.1%
100,000 New Jersey Educational Facilities Authority,
4.0%, 7/1/45 $ 104,242
------------------------------------------------------------------------------------------
Municipal School District -- 0.1%
100,000 Frisco Independent School District, 4.0%,
8/15/40 (e) $ 101,988
50,000 Frisco Independent School District, 4.0%,
8/15/45 (e) 50,793
-------------
$ 257,023
------------------------------------------------------------------------------------------
Municipal Obligation -- 0.1%
150,000 State of Texas, 4.0%, 10/1/44 (e) $ 154,881
------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $671,430) $ 674,664
------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 98.7%
(Cost $100,267,176) (a) $ 104,369,439
------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 1.3% $ 1,421,190
------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 105,790,629
==========================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Government Income Fund | Annual Report | 7/31/15
(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 July 31, 2015, the value of these securities
amounted to $1,570,473 or 1.5% of total net assets.
REMICS Real estate mortgage investment conduits.
(a) At July 31, 2015, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $100,483,012 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $4,341,580
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (455,153)
----------
Net unrealized appreciation $3,886,427
==========
(b) Debt obligation with a variable interest rate. Rate shown is rate at
end of period.
(c) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(d) Consists of Revenue Bonds unless otherwise indicated.
(e) Represents a General Obligation Bond.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended July 31, 2015 aggregated $29,682,955 and $39,112,663, respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical
securities.
Level 2 - other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment
speeds, credit risk, etc.) See Notes to Financial Statements
-- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's
own assumptions in determining fair value of investments)
See Notes to Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services or broker-dealers)
as Level 3. See Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of July 31, 2015, in valuing
the Fund's assets:
---------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------
Asset Backed Securities $ -- $ 4,348,856 $ -- $ 4,348,856
Collateralized Mortgage Obligations -- 14,474,958 -- 14,474,958
Corporate Bonds -- 500,487 -- 500,487
U.S. Government and
Agency Obligations -- 78,257,440 -- 78,257,440
Foreign Government Bonds -- 6,113,034 -- 6,113,034
Municipal Bonds -- 674,664 -- 674,664
---------------------------------------------------------------------------------------------
Total $ -- $104,369,439 $ -- $104,369,439
=============================================================================================
Other Financial Instruments
Net unrealized appreciation on
futures contracts $86,203 $ -- $ -- $ 86,203
---------------------------------------------------------------------------------------------
Total Other Financial Instruments $86,203 $ -- $ -- $ 86,203
=============================================================================================
During the year ended July 31, 2015, there were no transfers between Levels 1, 2
and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Government Income Fund | Annual Report | 7/31/15 29
Schedule of Investments | 7/31/15 (continued)
The following is a summary of the fair valuation of certain Fund's assets and
liabilities as of July 31, 2015.
---------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------
Assets:
Futures collateral $ -- $286,270 $ -- $286,270
Liabilities:
Variation margin for futures contracts (52,687) -- -- (52,687)
---------------------------------------------------------------------------------------------
Total $(52,687) $286,270 $ -- $233,583
=============================================================================================
The accompanying notes are an integral part of these financial statements.
30 Pioneer Government Income Fund | Annual Report | 7/31/15
Statement of Assets and Liabilities | 7/31/15
ASSETS:
Investment in securities (cost $100,267,176) $104,369,439
Cash 704,686
Futures collateral 286,270
Receivables --
Fund shares sold 32,367
Interest 587,583
Net unrealized appreciation on futures contracts 86,203
Other assets 66,986
------------------------------------------------------------------------------------------
Total assets $106,133,534
==========================================================================================
LIABILITIES:
Payables --
Fund shares repurchased $ 137,975
Trustee fees 706
Variation margin 52,687
Due to affiliates 44,975
Accrued expenses 106,562
------------------------------------------------------------------------------------------
Total liabilities $ 342,905
==========================================================================================
NET ASSETS:
Paid-in capital $111,355,402
Distributions in excess of net investment income (176,497)
Accumulated net realized loss on investments and futures contracts (9,576,742)
Net unrealized appreciation on investments 4,102,263
Net unrealized appreciation on futures contracts 86,203
------------------------------------------------------------------------------------------
Total net assets $105,790,629
==========================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $89,273,118/9,508,510 shares) $ 9.39
Class C (based on $12,043,067/1,282,279 shares) $ 9.39
Class Y (based on $4,474,444/476,122 shares) $ 9.40
MAXIMUM OFFERING PRICE:
Class A ($9.39 (divided by) 95.5%) $ 9.83
==========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Government Income Fund | Annual Report | 7/31/15 31
Statement of Operations
For the Year Ended 7/31/15
INVESTMENT INCOME:
Interest $3,431,064
---------------------------------------------------------------------------------------------
Total investment income $3,431,064
---------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 556,947
Transfer agent fees and expenses
Class A 134,438
Class B* 4,455
Class C 12,662
Class Y 738
Distribution fees
Class A 230,421
Class B* 6,385
Class C 134,482
Shareholder communications expense 143,706
Administrative reimbursement 48,479
Custodian fees 40,255
Registration fees 61,375
Professional fees 67,777
Printing expense 31,599
Fees and expenses of nonaffiliated Trustees 6,796
Pricing fees 41,661
Miscellaneous 39,762
---------------------------------------------------------------------------------------------
Total expenses $1,561,938
=============================================================================================
Net investment income $1,869,126
---------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FUTURES CONTRACTS:
Net realized gain (loss) on:
Investments $ 209,984
Futures contracts (672,887) $ (462,903)
---------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 519,863
Futures contracts (21,313) $ 498,550
---------------------------------------------------------------------------------------------
Net gain on investments and futures contracts $ 35,647
---------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $1,904,773
=============================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Government Income Fund | Annual Report | 7/31/15
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------
Year Ended Year Ended
7/31/15 7/31/14
--------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 1,869,126 $ 3,357,783
Net realized loss on investments and futures contracts (462,903) (4,775,069)
Change in net unrealized appreciation (depreciation)
on investments and futures contracts 498,550 3,858,890
--------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 1,904,773 $ 2,441,604
--------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.20 and $0.44 per share, respectively) $ (1,974,181) $ (4,602,730)
Class B* ($0.03 and $0.34 per share, respectively) (6,643) (107,545)
Class C ($0.13 and $0.38 per share, respectively) (189,668) (623,375)
Class Y ($0.23 and $0.48 per share, respectively) (127,229) (523,818)
--------------------------------------------------------------------------------------------
Total distributions to shareowners $ (2,297,721) $ (5,857,468)
--------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 23,282,963 $ 19,165,020
Reinvestment of distributions 2,212,993 4,972,391
Cost of shares repurchased (36,408,126) (49,877,652)
--------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ (10,912,170) $(25,740,241)
--------------------------------------------------------------------------------------------
Net decrease in net assets $ (11,305,118) $(29,156,105)
NET ASSETS:
Beginning of year 117,095,747 146,251,852
--------------------------------------------------------------------------------------------
End of year $ 105,790,629 $117,095,747
--------------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (176,497) $ (379,204)
============================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer Government Income Fund | Annual Report | 7/31/15 33
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------------
' 15 Shares '15 Amount '14 Shares '14 Amount
------------------------------------------------------------------------------------------------
Class A
Shares sold 1,885,188 $ 17,800,006 1,314,683 $ 12,471,203
Reinvestment of distributions 206,177 1,947,677 424,193 4,016,128
Less shares repurchased (2,231,395) (21,057,191) (3,363,699) (32,033,970)
------------------------------------------------------------------------------------------------
Net decrease (140,030) $ (1,309,508) (1,624,823) $(15,546,639)
================================================================================================
Class B*
Shares sold or exchanged 81 $ 2,319 1,307 $ 13,715
Reinvestment of distributions 797 6,643 10,129 95,816
Less shares repurchased (251,008) (2,362,723) (165,758) (1,579,633)
------------------------------------------------------------------------------------------------
Net decrease (250,130) $ (2,353,761) (154,322) $ (1,470,102)
================================================================================================
Class C
Shares sold 396,429 $ 3,747,195 223,502 $ 2,128,412
Reinvestment of distributions 13,912 131,444 40,663 384,816
Less shares repurchased (569,714) (5,384,080) (809,347) (7,710,044)
------------------------------------------------------------------------------------------------
Net decrease (159,373) $ (1,505,441) (545,182) $ (5,196,816)
================================================================================================
Class Y
Shares sold 182,373 $ 1,733,443 479,348 $ 4,551,690
Reinvestment of distributions 14,620 127,229 50,177 475,631
Less shares repurchased (804,736) (7,604,132) (897,536) (8,554,005)
------------------------------------------------------------------------------------------------
Net decrease (607,743) $ (5,743,460) (368,011) $ (3,526,684)
================================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Government Income Fund | Annual Report | 7/31/15
Financial Highlights
------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/15 7/31/14 7/31/13 7/31/12 7/31/11
------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.42 $ 9.67 $ 10.33 $ 10.07 $ 10.15
------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.16 $ 0.26 $ 0.38 $ 0.27 $ 0.32
Net realized and unrealized gain (loss) on investments 0.01 (0.07) (0.69) 0.33 (0.03)
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.17 $ 0.19 $ (0.31) $ 0.60 $ 0.29
------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.20) $ (0.44) $ (0.35) $ (0.34) $ (0.37)
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.03) $ (0.25) $ (0.66) $ 0.26 $ (0.08)
------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.39 $ 9.42 $ 9.67 $ 10.33 $ 10.07
===================================================================================================================
Total return* 1.83% 2.07% (3.04)% 6.03% 2.95%
Ratio of net expenses to average net assets 1.33% 1.28% 1.22% 1.14% 1.17%
Ratio of net investment income (loss) to average net assets 1.75% 2.70% 3.72% 2.57% 3.29%
Portfolio turnover rate 27% 16% 19% 67% 19%
Net assets, end of period (in thousands) $89,273 $90,932 $109,054 $152,020 $131,758
===================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
The accompanying notes are an integral part of these financial statements.
Pioneer Government Income Fund | Annual Report | 7/31/15 35
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/15 7/31/14 7/31/13 7/31/12 7/31/11
----------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.42 $ 9.68 $ 10.34 $ 10.08 $ 10.15
----------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.10 $ 0.20 $ 0.32 $ 0.22 $ 0.25
Net realized and unrealized gain (loss) on investments 0.00(a) (0.08) (0.69) 0.31 (0.02)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.10 $ 0.12 $ (0.37) $ 0.53 $ 0.23
----------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.13) $ (0.38) $ (0.29) $ (0.27) $ (0.30)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.03) $ (0.26) $ (0.66) $ 0.26 $ (0.07)
----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.39 $ 9.42 $ 9.68 $ 10.34 $ 10.08
================================================================================================================
Total return* 1.09% 1.24% (3.68)% 5.29% 2.32%
Ratio of net expenses to average net assets 2.02% 2.02% 1.90% 1.83% 1.87%
Ratio of net investment income (loss) to average net assets 1.06% 1.98% 3.10% 1.73% 2.61%
Portfolio turnover rate 27% 16% 19% 67% 19%
Net assets, end of period (in thousands) $12,043 $13,586 $19,225 $50,230 $26,113
================================================================================================================
* 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.
(a) Amount rounds to less than $0.01 or $(0.01) per share.
The accompanying notes are an integral part of these financial statements.
36 Pioneer Government Income Fund | Annual Report | 7/31/15
------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/15 7/31/14 7/31/13 7/31/12 7/31/11
------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.43 $ 9.68 $ 10.34 $ 10.07 $ 10.16
------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.16 $ 0.33 $ 0.39 $ 0.33 $ 0.36
Net realized and unrealized gain (loss) on investments 0.04 (0.10) (0.65) 0.32 (0.03)
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.20 $ 0.23 $ (0.26) $ 0.65 $ 0.33
------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.23) $ (0.48) $ (0.40) $ (0.38) $ (0.42)
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.03) $ (0.25) $ (0.66) $ 0.27 $ (0.09)
------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.40 $ 9.43 $ 9.68 $ 10.34 $ 10.07
==================================================================================================================
Total return* 2.17% 2.48% (2.65)% 6.56% 3.32%
Ratio of net expenses to average net assets 0.96% 0.92% 0.85% 0.74% 0.69%
Ratio of net investment income (loss) to average net assets 2.11% 3.03% 3.80% 2.83% 3.85%
Portfolio turnover rate 27% 16% 19% 67% 19%
Net assets, end of period (in thousands) $ 4,474 $10,219 $14,057 $13,092 $ 6,496
==================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
The accompanying notes are an integral part of these financial statements.
Pioneer Government Income Fund | Annual Report | 7/31/15 37
Notes to Financial Statements | 7/31/15
1. Organization and Significant Accounting Policies
Pioneer Government Income Fund (the Fund) is one of three portfolios comprising
Pioneer Series Trust IV, a Delaware statutory trust. The Fund is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The Fund's investment objective is to seek current income as
is consistent with preservation of capital.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Class C shares were first publicly offered on September 23, 2005. The
Fund ceased to offer Class B shares on November 10, 2014. Class B shares were
converted to Class A shares as of the close of business on November 10, 2014.
Each class of shares represents an interest in the same portfolio of investments
of the Fund and has identical rights (based on relative net asset values) to
assets and liquidation proceeds. Share classes can bear different rates of
class-specific fees and expenses such as transfer agent and distribution fees.
Differences in class-specific fees and expenses will result in differences in
net investment income and, therefore, the payment of different dividends from
net investment income earned by each class. The Amended and Restated Declaration
of Trust of the Fund gives the Board of Trustees the flexibility to specify
either per-share voting or dollar-weighted voting when submitting matters for
shareholder approval. Under per-share voting, each share of a class of the Fund
is entitled to one vote. Under dollar-weighted voting, a shareholder's voting
power is determined not by the number of shares owned but by the dollar value of
the shares on the record date. Each share class has exclusive voting rights with
respect to matters affecting only that class, including with respect to the
distribution plan for that class. There is no distribution plan for Class Y
shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
38 Pioneer Government Income Fund | Annual Report | 7/31/15
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Fixed
income securities are valued at prices supplied by independent pricing
services, which consider such factors as market prices, market events,
quotations from one or more brokers, Treasury spreads, yields, maturities
and ratings. Valuations may be supplemented by dealers and other sources,
as required. Shares of money market mutual funds are valued at such funds'
net asset value. Cash may include overnight time deposits at approved
financial institutions.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. PIM's fair
valuation team is responsible for monitoring developments that may impact
fair valued securities and for discussing and assessing fair values on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
At July 31, 2015, there were no securities that were valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services or broker-dealers).
Pioneer Government Income Fund | Annual Report | 7/31/15 39
B. Investment Income and Transactions
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income. Interest income, including interest on income bearing cash
accounts, is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
C. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no provision for federal income taxes is required.
As of July 31, 2015, the Fund did not accrue any interest or penalties with
respect to uncertain tax positions, which, if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax returns filed
within the prior three years remain subject to examination by Federal and
State tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences. At
July 31, 2015, the Fund reclassified $2,465,526 to decrease paid in
capital, $631,302 to decrease undistributed net investment loss, and
$1,834,224 to decrease accumulated net realized loss on investments and
future contracts to reflect permanent book/tax differences. These
adjustments have no impact on net assets or the results of operations.
40 Pioneer Government Income Fund | Annual Report | 7/31/15
At July 31, 2015, the Fund was permitted to carry forward indefinitely
$844,011 of short-term losses and $5,845,546 of long-term losses under the
Regulated Investment Company Modernization Act of 2010 without limitation.
Additionally, at July 31, 2015, the Fund had a net capital loss
carryforward of $2,793,238 of which the amount will expire in 2016 if not
utilized.
During the year ended July 31, 2015, a capital loss carryforward of
$2,465,526 was utilized to offset net realized gains by the fund.
The tax character of distributions paid during the year ended July 31, 2015
and July 31, 2014 was as follows:
--------------------------------------------------------------------------------
2015 2014
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $2,297,721 $5,857,468
--------------------------------------------------------------------------------
Total $2,297,721 $5,857,468
================================================================================
The following shows the components of distributable earnings on a federal
income tax basis at July 31, 2015:
--------------------------------------------------------------------------------
2015
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 31,595
Capital loss carryforward (9,482,795)
Net unrealized appreciation 3,886,427
--------------------------------------------------------------------------------
Total $ (5,564,773)
================================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales, the tax
treatment of premium and amortization and the mark-to-market on futures
contracts.
D. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned $5,552 in underwriting commissions on the sale of Class
A shares during the year ended July 31, 2015.
E. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Pioneer Government Income Fund | Annual Report | 7/31/15 41
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
F. Risks
The Fund may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-
income securities. Mortgage-backed securities are also subject to
prepayments. The Fund's prospectus contains unaudited information regarding
the Fund's principal risks. Please refer to that document when considering
the Fund's principal risks.
G. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian or a subcustodian of the
Fund. PIM is responsible for determining that the value of the collateral
remains at least equal to the repurchase price. At July 31, 2015, the Fund
had no open repurchase agreements.
H. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency rates or
to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on a
futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at
July 31, 2015 was $286,270. Subsequent payments for futures contracts
("variation margin") are paid or
42 Pioneer Government Income Fund | Annual Report | 7/31/15
received by the Fund, depending on the daily fluctuation in the value of
the contracts, and are recorded by the Fund as unrealized appreciation or
depreciation. When the contract is closed, the Fund realizes a gain or loss
equal to the difference between the opening and closing value of the
contract. The use of futures contracts involves, to varying degrees,
elements of market, interest rate, currency exchange rates and counterparty
risks, which may exceed the amounts recognized by the Fund. Changes in
value of the contracts may not directly correlate to the changes in value
of the underlying securities. The average value of contracts open for the
year ended July 31, 2015 was $(9,931,887).
At July 31, 2015, open futures contracts were as follows.
-----------------------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation/
Type Long/(Short) Month/Year Value (Depreciation)
-----------------------------------------------------------------------------------------
US Long Bond (CBT) (71) 9/15 $ (11,071,563) $ (118,703)
US 10 Year Note (CBT) (47) 9/15 (5,989,562) (15,422)
US 5 Year Note (CBT) (10) 9/15 (1,198,437) (5,703)
US 2 Year Note (CBT) 17 9/15 3,724,062 8,500
US Ultra Bond (CBT) 46 9/15 7,338,437 217,531
-----------------------------------------------------------------------------------------
Total $ (7,197,063) $ 86,203
-----------------------------------------------------------------------------------------
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.50% of
the Fund's average daily net assets up to $1 billion and 0.45% on assets over $1
billion. For the year ended July 31, 2015, the effective management fee
(excluding waivers and/or assumption of expenses) was equivalent to 0.50% of the
Fund's average daily net assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$3,027 in management fees, administrative costs and certain other reimbursements
payable to PIM at July 31, 2015.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
Pioneer Government Income Fund | Annual Report | 7/31/15 43
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the year ended July 31, 2015, such out-of-pocket expenses by class of shares
were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $117,709
Class B 2,278
Class C 16,332
Class Y 7,387
--------------------------------------------------------------------------------
Total $143,706
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $40,059 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at July 31, 2015. 4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets
attributable to Class A shares as compensation for personal services and/or
account maintenance services or distribution services with regard to Class A
shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $1,889 in distribution fees payable to
PFD at July 31, 2015.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to PFD. For the
year ended July 31, 2015, CDSCs in the amount of $1,571 were paid to PFD.
44 Pioneer Government Income Fund | Annual Report | 7/31/15
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS, which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended July 31, 2015, the Fund's expenses were
not reduced under such arrangements.
6. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of July 31, 2015 were as follows:
----------------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives Liabilities Derivatives
Hedging Instruments ---------------------------------------------------------------------
Under Accounting Statement of Value Statement of Value
Standards Codification Assets and Liabilities Assets and Liabilities
(ASC) 815 Location Location
----------------------------------------------------------------------------------------------------
Futures contracts Net unrealized Net unrealized
appreciation on depreciation on
futures contracts $86,203 futures contracts $ --
----------------------------------------------------------------------------------------------------
Total $86,203 $ --
====================================================================================================
The effect of derivative instruments on the Statement of Operations for the year
ended July 31, 2015 was as follows:
----------------------------------------------------------------------------------------------------
Change in
Derivatives Not Unrealized
Accounted for as Realized Appreciation/
Hedging Instruments Gain/(Loss) (Depreciation)
Under Accounting Location of Gain/(Loss) on Derivatives on Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
----------------------------------------------------------------------------------------------------
Futures contracts Net realized gain (loss) on
futures contracts $(672,887)
Futures contracts Change in net unrealized appreciation
(depreciation) on futures contracts $(21,313)
7. Conversion of Class B Shares
As of the close of business on November 10, 2014, all outstanding Class B shares
of the Fund were converted to Class A shares.
Pioneer Government Income Fund | Annual Report | 7/31/15 45
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust IV and the Shareowners of
Pioneer Government Income Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Government Income Fund (the "Fund"), one of the portfolios constituting Pioneer
Series Trust IV (the "Trust"), including the schedule of investments, as of July
31, 2015, and the related statement of operations for the year then ended and
the statements of changes in net assets and the financial highlights for each of
the two years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights for the years ended July 31, 2013,
2012, and 2011 were audited by other auditors. Those auditors expressed an
unqualified opinion on those financial statements and financial highlights in
their report dated September 24, 2013.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of July 31, 2015, by correspondence with the custodian,
brokers and agent banks; where replies were not received from brokers and agent
banks, we performed other auditing procedures. We believe that our audits
provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Government Income Fund as of July 31, 2015, the results of its
operations for the year then ended, and the changes in its net assets and the
financial highlights for each of the two years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 24, 2015
46 Pioneer Government Income Fund | Annual Report | 7/31/15
ADDITIONAL INFORMATION (unaudited)
The percentage of the Fund's ordinary income distributions that are exempt from
nonresident alien (NRA) tax withholding resulting from qualified interest income
was 92.1%.
PIM, the Fund's investment adviser, is currently an indirect, wholly-owned
subsidiary of UniCredit. On April 23, 2015, UniCredit announced that it signed a
preliminary and exclusive agreement with Banco Santander and affiliates of
Warburg Pincus and General Atlantic (the "Private Equity Firms") with respect to
Pioneer Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as described in the UniCredit announcement, will entail the
establishment of a holding company, with the name Pioneer Investments, to be
owned by UniCredit (50%) and the Private Equity Firms (50% between them). The
holding company will control Pioneer's U.S. operations, including the Adviser.
The holding company also will own 66.7% of Pioneer's and SAM's combined
operations outside the U.S., while Banco Santander will own directly the
remaining 33.3% stake. The completion of the Transaction is subject to the
signing of a definitive agreement, as well as certain regulatory and corporate
approvals, and other conditions.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Fund's investment advisory agreement with the Adviser to terminate. In
connection with the Transaction, the Fund's Board of Trustees will be asked to
approve a new investment advisory agreement for the Fund. If approved by the
Board, the Fund's new investment advisory agreement will be submitted to the
shareholders of the Fund for their approval.
Pioneer Government Income Fund | Annual Report | 7/31/15 47
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations during at least the past five years. Trustees who are interested
persons of the Fund within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the Fund are
referred to as Independent Trustees. Each of the Trustees serves as a Trustee of
each of the 51 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
48 Pioneer Government Income Fund | Annual Report | 7/31/15
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (64) Trustee since Private investor (2004 - 2008 and 2013 - Director, Broadridge Financial
Chairman of the Board and 2006. Serves until present); Chairman (2008 - 2013) and Chief Solutions, Inc. (investor
Trustee a successor Executive Officer (2008 - 2012), Quadriserv, Inc. communications and securities
trustee is elected (technology products for securities lending processing provider for
or earlier industry); and Senior Executive Vice President, financial services industry)
retirement or The Bank of New York (financial and securities (2009 - present); Director,
removal. services) (1986 - 2004) Quadriserv, Inc. (2005 -
2013); and Commissioner, New
Jersey State Civil Service
Commission (2011 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (71) Trustee since Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee 2005. Serves until (corporate advisory services company) (1997 - Trust(publicly-traded mortgage
a successor 2004 and 2008 - present); Interim Chief Executive REIT) (2004 - 2009, 2012 -
trustee is elected Officer, Oxford Analytica, Inc. (privately-held present); Director of The
or earlier research and consulting company) (2010); Executive Swiss Helvetia Fund, Inc.
retirement or Vice President and Chief Financial Officer, (closed-end fund) (2010 -
removal. I-trax, Inc. (publicly traded health care present); Director of Oxford
services company) (2004 - 2007); and Executive Analytica, Inc. (2008 -
Vice President and Chief Financial Officer, present); and Director of
Pedestal Inc. (internet-based mortgage trading Enterprise Community
company) (2000 - 2002); Private consultant (1995 Investment, Inc.
- 1997), Managing Director, (privately-held affordable
Lehman Brothers (investment banking firm) (1992 - housing finance company) (1985
1995); and Executive, The World Bank (1979 - - 2010)
1992)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (70) Trustee since William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee 2008. Serves until Economy, Harvard University (1972 - present) Funds Investment Trust and
a successor Mellon Institutional Funds
trustee is elected Master Portfolio (oversaw 17
or earlier portfolios in fund complex)
retirement or (1989-2008)
removal.
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Government Income Fund | Annual Report | 7/31/15 49
Independent Trustees (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships Held by
Position Held with the Fund Length of Service Principal Occupation Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (68) Trustee since Founding Director, Vice President and Corporate None
Trustee 2005. Serves until Secretary, The Winthrop Group, Inc. (consulting
a successor firm) (1982 - present); Desautels Faculty of
trustee is elected Management, McGill University (1999 - present);
or earlier and Manager of Research Operations and
retirement or Organizational Learning, Xerox PARC, Xerox's
removal. advance research center (1990 - 1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (67) Trustee since President and Chief Executive Officer, Newbury, Director of New America High
Trustee 2005. Serves until Piret & Company, Inc. (investment banking firm) Income Fund, Inc. (closed-end
a successor (1981 - present) investment company) (2004 -
trustee is elected present); and Member, Board of
or earlier Governors, Investment Company
retirement or Institute (2000 - 2006)
removal.
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (68) Trustee since Consultant (investment company services) (2012 - None
Trustee 2014. Serves until present); Executive Vice President, BNY Mellon
a successor (financial and investment company services) (1969
trustee is elected -2012); Director, BNY International Financing
or earlier Corp. (financial services) (2002 - 2012); and
retirement or Director, Mellon Overseas Investment Corp.
removal. (financial services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
50 Pioneer Government Income Fund | Annual Report | 7/31/15
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (57)* Trustee since 2014. Director and Executive Vice President (since 2008) and None
Trustee Serves until a Chief Investment Officer, U.S. (since 2010) of PIM-USA;
successor trustee is Executive Vice President of Pioneer (since 2008);
elected or earlier Executive Vice President of Pioneer Institutional Asset
retirement or Management, Inc. (since 2009); and Portfolio Manager of
removal. Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer of the Fund's
investment adviser and certain of its affiliates.
Pioneer Government Income Fund | Annual Report | 7/31/15 51
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine Monchak (59)** Advisory Trustee Chief Investment Officer, 1199 SEIU Funds (healthcare None
Advisory Trustee since 2014. workers union pension funds) (2001 - present); Vice
President - International Investments Group, American
International Group, Inc. (insurance company) (1993 -
2001); Vice President Corporate Finance and Treasury
Group, Citibank, N.A. (1980 - 1986 and 1990 - 1993);
Vice President - Asset/Liability Management Group,
Federal Farm Funding Corporation (government-sponsored
issuer of debt securities) (1988 - 1990); Mortgage
Strategies Group, Shearson Lehman Hutton, Inc.
(investment bank) (1987 - 1988); and Mortgage
Strategies Group, Drexel Burnham Lambert, Ltd.
(investment bank) (1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
** Ms. Monchak is a non-voting advisory trustee.
52 Pioneer Government Income Fund | Annual Report | 7/31/15
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (53) Since 2014. Serves at Chair, Director, CEO and President of Pioneer None
President and Chief the discretion of the Investment Management-USA (since September 2014);
Executive Officer Board. Chair, Director, CEO and President of Pioneer
Investment Management, Inc. (since September 2014);
Chair, Director, CEO and President of Pioneer Funds
Distributor, Inc. (since September 2014); Chair,
Director, CEO and President of Pioneer Institutional
Asset Management, Inc. (since September 2014); and
Chair, Director, and CEO of Pioneer Investment
Management Shareholder Services, Inc. (since September
2014); Managing Director, Morgan Stanley Investment
Management (2010 - 2013); and Director of Institutional
Business, CEO of International, Eaton Vance Management
(2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (50) Since 2005. Serves at Vice President and Associate General Counsel of Pioneer None
Secretary and Chief Legal the discretion of the since January 2008; Secretary and Chief Legal Officer of
Officer Board. all of the Pioneer Funds since June 2010; Assistant
Secretary of all of the Pioneer Funds from September
2003 to May 2010; and Vice President and Senior Counsel
of Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (54) Since 2010. Serves at Fund Governance Director of Pioneer since December 2006 None
Assistant Secretary the discretion of the and Assistant Secretary of all the Pioneer Funds since
Board. June 2010; Manager - Fund Governance of Pioneer from
December 2003 to November 2006; and Senior Paralegal of
Pioneer from January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (52) Since 2010. Serves at Senior Counsel of Pioneer since May 2013 and Assistant None
Assistant Secretary the discretion of the Secretary of all the Pioneer Funds since June 2010; and
Board. Counsel of Pioneer from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2008. Serves at Vice President - Fund Treasury of Pioneer; Treasurer of None
Treasurer and Chief the discretion of the all of the Pioneer Funds since March 2008; Deputy
Financial and Accounting Board. Treasurer of Pioneer from March 2004 to February 2008;
Officer and Assistant Treasurer of all of the Pioneer Funds
from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Government Income Fund | Annual Report | 7/31/15 53
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (50) Since 2005. Serves at Director - Fund Treasury of Pioneer; and Assistant None
Assistant Treasurer the discretion of the Treasurer of all of the Pioneer Funds
Board.
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (57) Since 2005. Serves at Fund Accounting Manager - Fund Treasury of Pioneer; and None
Assistant Treasurer the discretion of the Assistant Treasurer of all of the Pioneer Funds
Board.
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (35) Since 2009. Serves at Fund Administration Manager - Fund Treasury of Pioneer None
Assistant Treasurer the discretion of the since November 2008; Assistant Treasurer of all of the
Board. Pioneer Funds since January 2009; and Client Service
Manager - Institutional Investor Services at State
Street Bank from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (62) Chief Since 2010. Serves at Chief Compliance Officer of Pioneer and of all the None
Compliance Officer the discretion of the Pioneer Funds since March 2010; Chief Compliance Officer
Board. of Pioneer Institutional Asset Management, Inc. since
January 2012; Chief Compliance Officer of Vanderbilt
Capital Advisors, LLC since July 2012: Director of
Adviser and Portfolio Compliance at Pioneer since
October 2005; and Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to October
2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (44) Since 2006. Serves at Director - Transfer Agency Compliance of Pioneer and None
Anti-Money Laundering the discretion of the Anti-Money Laundering Officer of all the Pioneer Funds
Officer Board. since 2006
------------------------------------------------------------------------------------------------------------------------------------
54 Pioneer Government Income Fund | Annual Report | 7/31/15
This page for your notes.
Pioneer Government Income Fund | Annual Report | 7/31/15 55
This page for your notes.
56 Pioneer Government Income Fund | Annual Report | 7/31/15
This page for your notes.
Pioneer Government Income Fund | Annual Report | 7/31/15 57
This page for your notes.
58 Pioneer Government Income Fund | Annual Report | 7/31/15
This page for your notes.
Pioneer Government Income Fund | Annual Report | 7/31/15 59
This page for your notes.
60 Pioneer Government Income Fund | Annual Report | 7/31/15
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2015 Pioneer Investments 19422-09-0915