UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21460
Pioneer Series Trust II
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Amundi Pioneer Asset Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: December 31
Date of reporting period: January 1, 2017 through December 31, 2017
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer AMT-Free
Municipal Fund
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Annual Report | December 31, 2017
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Ticker Symbols:
Class A PBMFX
Class C MNBCX
Class Y PBYMX
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.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 32
Notes to Financial Statements 39
Report of Independent Registered Public Accounting Firm 47
Additional Information 49
Trustees, Officers and Service Providers 51
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 1
President's Letter
Robust, synchronized global economic growth and rising corporate profits drove
strong performance in both the credit and equity markets for most of 2017. U.S.
stocks, as measured by the Standard & Poor's 500 Index, returned 21.82% for the
full calendar year. Fixed-income markets, while not generating the same dazzling
returns as equities, held their own, led by high-yield securities, which
produced a return of 7.48% in the U.S., as measured by the ICE Bank of America
Merrill Lynch U.S. High Yield Index. Meanwhile, the Bloomberg Barclays U.S.
Aggregate Bond Index returned 3.54% for calendar year 2017.
Continued strong employment numbers and higher consumer confidence, together
with solid global economic growth and a depreciating U.S. dollar contributed to
better-than-expected U.S. gross domestic product (GDP) growth of more than 3% in
both the second and third quarters of 2017, and growth in the fourth quarter was
also expected to be solid. Outside the U.S., economic growth also surprised to
the upside across the Euro zone, China, and Japan. Meanwhile, despite higher oil
and commodities prices, inflation continued to be moderate, both in the U.S. and
globally, enabling major non-U.S. central banks to maintain their easy monetary
policies. As expected, however, the U.S. Federal Reserve System (the Fed) began
tapering its balance sheet in October. The Fed also appears primed to raise
interest rates a few more times in 2018, as it continues to withdraw monetary
stimulus.
As we transition into 2018, we believe the U.S. economy will experience modest
growth in the short term, depending on the mix of economic policies enacted as
the country moves away from monetary stimulus (driven by the Fed) and toward
fiscal stimulus (including tax reform) as well as lighter regulatory burdens.
Meanwhile, corporate earnings remain solid and we think they will improve even
further, despite the possibility of some pressure from wage increases. In
addition, it is our view that the economy will continue to grow and that we may
begin to see a modest upturn in inflation. In that scenario, we anticipate that
the Fed will continue to raise interest rates.
While economic and market conditions appear solid, there are always risks to
consider that could dampen the outlook. Geopolitical concerns, such as increased
tensions with North Korea, and continued political gridlock in Washington are
just some of the risks that could lead to increased market volatility.
2 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
It is for those reasons that we at Amundi Pioneer continue to believe that
investors can benefit from the experience and tenure of our investment teams who
make active and informed decisions across our funds.
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 the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
December 31, 2017
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 3
Portfolio Management Discussion | 12/31/17
In the following interview, David Eurkus, lead portfolio manager of Pioneer
AMT-Free Municipal Fund, discusses the investment environment for municipal
bonds during the 12-month period ended December 31, 2017, the Fund's investment
strategies, its performance during the period, and his outlook for the municipal
bond market. Mr. Eurkus, Managing Director, Director of Municipals, U.S., and a
portfolio manager at Amundi Pioneer Asset Management, Inc. ("Amundi Pioneer"),
manages the Fund along with Jonathan Chirunga, a senior vice president and a
portfolio manager at Amundi Pioneer.
Q How did the Fund perform during the 12-month period ended December 31,
2017?
A For its most recent fiscal year ended December 31, 2017, Pioneer AMT-Free
Municipal Fund's Class A shares returned 6.56% at net asset value, while
the Fund's benchmark, the Bloomberg Barclays Municipal Bond Index (the
Bloomberg Barclays Index), returned 5.45%. During the same period, the
average return of the 254 mutual funds in Lipper's General & Insured
Municipal Debt Funds Category was 5.41%, and the average return of the 151
mutual funds in Morningstar's Municipal National Long Funds Category was
5.71%.
Q How would you describe the investment environment for municipal bonds
during the 12-month period ended December 31, 2017?
A At the start of 2017, fixed-income markets began to recover from a
tumultuous six weeks following the November 2016 U.S. presidential
election. Bond performance had struggled at that time due to market fears
of rising interest rates, based on sentiment that U.S. economic growth and
inflation could accelerate. As the first quarter of 2017 progressed - and
as political turmoil sharply increased - market consensus grew that the
Trump administration's fiscal agenda would not be enacted as easily as
initially believed. In addition, U.S. gross domestic product (GDP) growth
and other economic statistics remained largely unimpressive in the early
months of the year, easing investor concerns about rising interest rates
and inflation, despite the fact that the U.S. Federal Reserve (the Fed)
raised the federal funds rate in both March and June 2017. In response to
the economic news and political turbulence in Washington, bond yields
gradually declined and bond prices recovered much of the ground lost over
the final weeks of 2016. As longer-term interest rates gradually fell and
short-term rates rose, the yield curve flattened in response. Demand for
fixed-income instruments, including municipal bonds, was strong, as
investors continued to search for yield in a generally declining/low-rate
environment.
4 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
As the calendar year progressed, the U.S. economy began to post stronger
GDP results, with unemployment falling to 4.1% and inflation rates
remaining low and stable. Over the last several months of the year, the
possibility that the first major federal tax overhaul since 1986 would soon
become law loomed large, and uncertainty over the content of the tax
package roiled the municipal market. When the legislation was finalized in
December, the revisions to the tax code included the provision that, within
the municipal market, advance-refunding bonds would no longer be exempt
from federal taxes as of January 1, 2018. Advance-refunding bonds have
traditionally been issued by municipalities to refinance debt at lower
rates and to delay repayment of principal. In response, December 2017 saw a
host of municipal entities rush to issue advance-refunding bonds before the
new tax bill took effect, bringing December's municipal issuance to a
record-breaking $62.5 billion, and bringing total 2017 issuance to $425
billion, much higher than was forecast at the start of the year. However,
despite late-year volatility from the strong influx of new supply, and with
a host of non-traditional buyers of tax-exempt securities entering the
market, municipal bonds enjoyed strong performance over the full 12-month
period, returning 5.45% and easily outperforming Treasury bonds with
similar maturities.
Q What were your principal investment strategies in managing the Fund's
portfolio during the 12-month period ended December 31, 2017?
A Our principal investment strategy for the portfolio is to purchase and
hold discounted longer-term municipal bonds, as these investments offer the
highest yields in the tax-exempt marketplace. We believe that, over the
long term, our broadly diversified* strategy can enable the Fund to
outperform its benchmark and its municipal fund peers. The Fund also
continues to have a strong focus on sectors that are vital to the regional
and national economies. The sectors include health care/hospitals, public
and private education, power/energy, and transportation.
During the 12-month period, we maintained our emphasis on overall portfolio
quality. As of December 31, 2017, 82.5% of the portfolio's assets were
rated "A" or better, including 26.0% rated "AAA" or the equivalent. In
addition, the Fund's investments are broadly diversified across a wide
range of municipal bond sectors.
Q What were the largest contributors to and detractors from the Fund's
benchmark-relative performance during the 12-month period ended December
31, 2017?
A The Fund outperformed the Bloomberg Barclays Index over the 12-month
period, with the portfolio's investments in tobacco settlement bonds in
Virginia and Ohio, and education bonds in Massachusetts among the most
significant contributors to positive benchmark-relative returns.
* Diversification does not assure a profit nor protect against loss.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 5
Individual portfolio holdings that detracted from the Fund's benchmark-
relative performance during the period included general obligation bonds
issued by the Commonwealth of Puerto Rico, air-quality bonds in Ohio, and
industrial development bonds in Pennsylvania.
Q What was the status of the Fund's distributions to shareholders over the
course of the 12-month period ended December 31, 2017?
A After declining during the fiscal year ended December 31, 2016, the
Fund's distributions remained stable over the fiscal year ended December
31, 2017, beginning and ending the 12-month period at 0.033 cents per
share, with little fluctuation between January and December.
Q What is your outlook for the municipal bond market as we move into 2018?
A Looking ahead, the Tax Cuts and Jobs Act signed into law in December has
some important implications for the municipal bond market. In terms of
municipal supply/demand, the absence of advance-refunding bonds from the
tax-exempt market going forward should shrink new supply in the municipal
bond market by 15% to 20% on an annualized basis. This significant decline
in overall supply - though it will no doubt create difficulties for some
municipalities - should tend to push-up prices of existing municipal bonds.
Additionally, the fact that individual federal tax deductions of state and
local taxes are now capped at $10,000 annually makes municipal bonds even
more attractive as a means to reduce a person's overall federal tax burden.
We believe that this new reality for taxpayers, especially those in
high-tax states, will ultimately increase demand for tax-exempt municipal
bonds. Conversely, the reduction of corporate tax rates to 21% means that
banks and insurance companies, which have long been traditional buyers of
municipals, will be evaluating their options regarding bond purchases, and
that could have a dampening effect on municipal demand.
We will continue to closely monitor the technical situation within the
municipal bond market. More broadly, we look for U.S. economic growth and
inflation rates to continue along their current course, and for the Fed to
move forward with its monetary-policy tightening by continuing to raise
short-term rates in 2018, while further reducing its balance sheet.
We are currently maintaining a Fund duration that is in line with that
of the Bloomberg Barclays Index. (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.)
We will continue to hold select, long-term tax-exempt bonds in the Fund's
portfolio, bonds that we believe have the strongest opportunity to perform
well over time. We will also continue to monitor closely the Fund's
holdings
6 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
to help ensure their integrity and credit quality, the timely repayment of
principal, and interest payments on the investments. The Fund remains
broadly diversified, and the vast majority of the portfolio's holdings are
in bonds with dedicated revenue streams, which we also continue to monitor
closely.
We believe that Pioneer AMT-Free Municipal Fund continues to be a suitable
vehicle for appropriate, long-term investors seeking high income that is
free from federal income taxes.
Please refer to the Schedule of Investments on pages 15-31 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making the Fund more susceptible to
any economic, political, or regulatory developments or other risks affecting
those industries and sectors.
The value of municipal securities can be adversely affected by changes in
financial condition of municipal issuers, lower revenues, and regulatory and
political developments.
A portion of income may be subject to local, state, federal and/or alternative
minimum tax. Capital gains, if any, are subject to capital gains tax.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Amundi Pioneer Asset Management, Inc., for
a prospectus or summary prospectus containing this information. Read it
carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 7
Portfolio Summary | 12/31/17
Sector Distribution
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(As a percentage of long-term holdings)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
General Obligation 23.9%
Education 19.5%
Special Revenues 12.2%
Health 11.9%
Insured 7.1%
Transportation 6.9%
Escrowed 5.7%
Water & Sewer 3.7%
Power 3.4%
Pollution Control Revenue 2.7%
Various Revenues 2.2%
Housing 0.8%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Massachusetts Health & Educational Facilities Authority, Massachusetts
Institute of Technology, Series K, 5.5%, 7/1/32 1.74%
----------------------------------------------------------------------------------------------
2. Tobacco Settlement Financing Corp., Senior, Series B-1, 5.0%, 6/1/47 1.42
----------------------------------------------------------------------------------------------
3. Golden State Tobacco Securitization Corp., Asset-Backed, Series A-1, 5.125%, 6/1/47 1.20
----------------------------------------------------------------------------------------------
4. Dallas Area Rapid Transit, Series A, 5.0%, 12/1/33 1.04
----------------------------------------------------------------------------------------------
5. University of Virginia, Series A-1, 4.0%, 4/1/45 0.97
----------------------------------------------------------------------------------------------
6. Los Angeles County Metropolitan Transportation Authority, Series A, 5.0%, 7/1/30 0.93
----------------------------------------------------------------------------------------------
7. State of Washington, Series 2015-D, 5.0%, 7/1/30 0.92
----------------------------------------------------------------------------------------------
8. Texas Private Activity Bond Surface Transportation Corp., Senior Lien-LBJ
Infrastructure, 7.0%, 6/30/40 0.87
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9. Forsyth County Water & Sewerage Authority, 5.0%, 4/1/41 0.87
----------------------------------------------------------------------------------------------
10. Massachusetts Development Finance Agency, Partners Healthcare, 5.0%, 7/1/31 0.87
----------------------------------------------------------------------------------------------
* This list excludes temporary cash investments. The portfolio is actively
managed, and current holdings may be different. The holdings listed
should not be considered recommendations to buy or sell any securities
listed.
8 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
Prices and Distributions | 12/31/17
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 12/31/17 12/31/16
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A $14.64 $14.12
--------------------------------------------------------------------------------
C $14.51 $14.00
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Y $14.60 $14.08
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Distributions per Share: 1/1/17 - 12/31/17
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.3960 $ -- $ --
--------------------------------------------------------------------------------
C $0.2850 $ -- $ --
--------------------------------------------------------------------------------
Y $0.4317 $ -- $ --
--------------------------------------------------------------------------------
Index Definition
--------------------------------------------------------------------------------
The Bloomberg Barclays Municipal Bond Index is an unmanaged, broad measure of
the municipal bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts shown on pages 10-12.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 9
Performance Update | 12/31/17 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer AMT-Free Municipal Fund at public
offering price during the periods shown, compared to that of the Bloomberg
Barclays Municipal Bond Index.
Average Annual Total Returns
(As of December 31, 2017)
--------------------------------------------------------------------------------
Net Public Bloomberg
Asset Offering Barclays
Value Price Municipal
Period (NAV) (POP) Bond Index
--------------------------------------------------------------------------------
10 years 4.95% 4.47% 4.46%
5 years 3.57 2.62 3.02
1 year 6.56 1.76 5.45
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2017)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.81%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer AMT-Free Bloomberg Barclays
Municipal Fund Municipal Bond Index
12/07 $ 9,550 $10,000
12/08 $ 8,132 $ 9,753
12/09 $10,084 $11,012
12/10 $10,301 $11,274
12/11 $11,510 $12,480
12/12 $12,991 $13,326
12/13 $12,299 $12,986
12/14 $13,973 $14,162
12/15 $14,602 $14,629
12/16 $14,529 $14,665
12/17 $15,482 $15,464
Call 1-800-225-6292 or visit www.amundipioneer.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.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
10 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
Performance Update | 12/31/17 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer AMT-Free Municipal Fund during the
periods shown, compared to that of the Bloomberg Barclays Municipal Bond Index.
Average Annual Total Returns
(As of December 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
If If Municipal
Period Held Redeemed Bond Index
--------------------------------------------------------------------------------
10 years 4.12% 4.12% 4.46%
5 years 2.78 2.78 3.02
1 year 5.72 5.72 5.45
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2017)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.56%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer AMT-Free Bloomberg Barclays
Municipal Fund Municipal Bond Index
12/07 $10,000 $10,000
12/08 $ 8,444 $ 9,753
12/09 $10,380 $11,012
12/10 $10,511 $11,274
12/11 $11,650 $12,480
12/12 $13,052 $13,326
12/13 $12,262 $12,986
12/14 $13,826 $14,162
12/15 $14,342 $14,629
12/16 $14,161 $14,665
12/17 $14,971 $15,464
Call 1-800-225-6292 or visit www.amundipioneer.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 you paid a 1% sales charge, your returns would
be lower than those shown above. "If Held" results represent the percent change
in net asset value per share. Returns would have been lower had sales charges
been reflected. All results are historical and assume the reinvestment of
dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 11
Performance Update | 12/31/17 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer AMT-Free Municipal Fund during the
periods shown, compared to that of the Bloomberg Barclays Municipal Bond Index.
Average Annual Total Returns
(As of December 31, 2017)
--------------------------------------------------------------------------------
Net Bloomberg
Asset Barclays
Value Municipal
Period (NAV) Bond Index
--------------------------------------------------------------------------------
10 years 5.17% 4.46%
5 years 3.84 3.02
1 year 6.84 5.45
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2017)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.64% 0.55%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer AMT-Free Bloomberg Barclays
Municipal Fund Municipal Bond Index
12/07 $5,000,000 $5,000,000
12/08 $4,260,047 $4,876,277
12/09 $5,286,500 $5,505,999
12/10 $5,410,201 $5,636,983
12/11 $6,061,602 $6,240,148
12/12 $6,856,466 $6,663,232
12/13 $6,506,960 $6,493,065
12/14 $7,409,039 $7,080,764
12/15 $7,769,251 $7,314,512
12/16 $7,749,549 $7,332,659
12/17 $8,279,480 $7,732,171
Call 1-800-225-6292 or visit www.amundipioneer.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 Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through May 1, 2018, for Class Y shares. There can be no assurance that
Amundi Pioneer will extend the expense limitation beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer AMT-Free Municipal Fund
Based on actual returns from July 1, 2017 through December 31, 2017.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 7/1/17
--------------------------------------------------------------------------------
Ending Account $1,021.28 $1,016.73 $1,022.59
Value on 12/31/17
--------------------------------------------------------------------------------
Expenses Paid $ 4.08 $ 7.88 $ 2.80
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.80%,
1.55% and 0.55%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 13
Comparing Ongoing Fund Expenses (continued)
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer AMT-Free Municipal Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from July 1, 2017 through December 31, 2017.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 7/1/17
--------------------------------------------------------------------------------
Ending Account $1,021.17 $1,017.39 $1,022.43
Value on 12/31/17
--------------------------------------------------------------------------------
Expenses Paid $ 4.08 $ 7.88 $ 2.80
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.80%,
1.55% and 0.55%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
14 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
Schedule of Investments | 12/31/17
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 99.9%
MUNICIPAL BONDS -- 99.9% of Net Assets (a)
Arizona -- 2.1%
5,680,000 Arizona Department of Transportation State
Highway Fund Revenue, 5.0%, 7/1/30 $ 6,901,200
10,000,000 City of Mesa, Utility System Revenue,
3.25%, 7/1/29 10,319,600
8,000,000(b) City of Phoenix, 5.0%, 7/1/27 9,866,320
19,000 County of Pima, Industrial Development Authority,
Arizona Charter Schools Project, Series C,
6.75%, 7/1/31 19,141
500,000(c) County of Pima, Industrial Development Authority,
Paradise Education Center Project, 6.1%, 6/1/45 531,115
1,000,000 Maricopa County Pollution Control Corp.,
Southern California Education Co., Series A,
5.0%, 6/1/35 1,062,960
-----------------
$ 28,700,336
-----------------------------------------------------------------------------------------------------------
California -- 10.5%
10,000,000(d) Alameda Corridor Transportation Authority,
California Revenue Capital Appreciation Senior Lien,
Series A, 10/1/31 (NATL Insured) $ 6,359,900
2,260,000(d) Anaheim Public Financing Authority, Public
Improvements Project, Series C, 9/1/22
(AGM Insured) 2,030,565
12,595,000(d) Anaheim Public Financing Authority, Public
Improvements Project, Series C, 9/1/36
(AGM Insured) 6,284,905
2,985,000(d) California County Tobacco Securitization Agency,
Capital Appreciation, Asset-Backed, Gold
Country, 6/1/33 1,168,359
20,000,000(d) California County Tobacco Securitization Agency,
Capital Appreciation, Stanislaus County,
Subordinated, Series A, 6/1/46 3,100,600
28,600,000(d) California County Tobacco Securitization Agency,
Capital Appreciation, Stanislaus County,
Subordinated, Series B, 6/1/46 4,608,032
36,350,000(d) California County Tobacco Securitization Agency,
Capital Appreciation, Stanislaus County,
Subordinated, Series D, 6/1/55 1,691,365
6,400,000 California Educational Facilities Authority,
Stanford University, Series U-A, 5.0%, 5/1/45 8,939,264
4,000,000(c) California Statewide Communities Development
Authority, Enloe Medical Center, 5.75%, 8/15/38
(CAMTG Insured) 4,107,160
10,000,000(c) California Statewide Communities Development
Authority, St Joseph, Series B, 5.75%, 7/1/47
(FGIC Insured) 10,213,100
3,575,000 California Statewide Communities Development
Authority, Sutter Health, Series A, 6.0%, 8/15/42 3,975,471
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 15
Schedule of Investments | 12/31/17 (continued)
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
California -- (continued)
5,000,000 City of San Francisco, Public Utilities Commission
Water Revenue, Series A, 4.0%, 11/1/33 $ 5,446,750
7,000,000 City of San Francisco, Public Utilities Commission
Water Revenue, Series A, 4.0%, 11/1/34 7,605,990
5,000,000(b) Coast Community College District, Election 2012,
Series D, 5.0%, 8/1/31 6,188,400
16,000,000 Golden State Tobacco Securitization Corp.,
Asset-Backed, Series A-1, 5.125%, 6/1/47 15,987,200
3,000,000 Long Beach Bond Finance Authority, Series A,
5.5%, 11/15/37 3,940,470
10,000,000 Los Angeles County Metropolitan Transportation
Authority, Series A, 5.0%, 7/1/30 12,426,100
2,180,000(b) Pomona Unified School District, Series A, 6.55%,
8/1/29 (NATL Insured) 2,861,424
3,000,000 Rialto Redevelopment Agency, Merged Project Area,
Series A, 6.25%, 9/1/37 3,093,120
5,000,000(b)(d) San Diego Unified School District,
Series R2, 7/1/40 4,411,850
3,500,000 San Francisco City & County Airport
Comm-San Francisco International Airport, Series B,
5.0%, 5/1/47 4,153,415
1,500,000(b) San Jose Evergreen Community College District,
Election of 2010, Series A, 5.0%, 8/1/41 1,679,145
1,500,000(c) Santa Cruz County Redevelopment Agency,
Live Oak / Soquel Community Improvement,
Series A, 6.625%, 9/1/29 1,623,810
1,405,000(b)(d) Santa Maria Joint Union High School District,
Capital Appreciation, Election 2004, 8/1/27
(NATL Insured) 1,076,511
3,750,000 Tobacco Securitization Authority of Southern
California, Series A-1, 5.0%, 6/1/37 3,758,588
5,000,000 University of California, Series AV, 5.0%, 5/15/35 6,065,850
6,895,000(b) Yuba Community College District, Series A,
3.0%, 8/1/32 6,931,268
-----------------
$ 139,728,612
-----------------------------------------------------------------------------------------------------------
Colorado -- 1.4%
2,500,000 Regional Transportation District, Denver Trans
Partners, 6.0%, 1/15/26 $ 2,756,250
1,250,000 Regional Transportation District, Denver Trans
Partners, 6.0%, 1/15/34 1,371,275
1,000,000 Regional Transportation District, Denver Trans
Partners, 6.0%, 1/15/41 1,093,900
2,000,000 Regional Transportation District, Denver Trans
Partners, 6.5%, 1/15/30 2,239,160
5,000,000 University of Colorado, Series A-2, 4.0%, 6/1/38 5,505,300
5,000,000 University of Colorado, Series A-2, 4.0%, 6/1/39 5,500,550
-----------------
$ 18,466,435
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Connecticut -- 0.2%
3,000,000(b) The Metropolitan District, 3.0%, 3/1/29 $ 3,013,380
-----------------------------------------------------------------------------------------------------------
Delaware -- 0.4%
4,975,000 Delaware State Economic Development Authority,
Facility-Indian River Power, 5.375%, 10/1/45 $ 5,203,502
-----------------------------------------------------------------------------------------------------------
District of Columbia -- 1.6%
10,000,000 District of Columbia Tobacco Settlement Financing
Corp., Asset-Backed, 6.75%, 5/15/40 $ 10,462,800
20,000,000(d) District of Columbia Tobacco Settlement Financing
Corp., Capital Appreciation, Asset-Backed,
Series A, 6/15/46 2,887,200
7,950,000 District of Columbia, Deed Tax-Housing Production
Trust Fund, Series A, 4.25%, 6/1/37 (NATL Insured) 7,964,230
-----------------
$ 21,314,230
-----------------------------------------------------------------------------------------------------------
Florida -- 5.7%
2,000,000 Central Florida Expressway Authority, 5.0%, 7/1/38 $ 2,377,460
1,000,000 Central Florida Expressway Authority, 5.0%, 7/1/39 1,187,810
2,615,000 City of Tampa, Baycare Health Care, Series A,
5.0%, 11/15/46 3,006,099
4,500,000 County of Hillsborough, Utility Revenue, 3.0%, 8/1/37 4,480,110
310,000 County of Madison, First Mortgage-Twin Oaks
Project, Series A, 6.0%, 7/1/25 310,000
5,000,000 County of Miami-Dade Water & Sewer System
Revenue, Series A, 4.0%, 10/1/40 5,371,400
5,000,000(c) County of Miami-Dade, Aviation Revenue, Series B,
5.5%, 10/1/41 5,337,600
2,500,000 County of Orange, Water Utility System Revenue,
3.0%, 10/1/32 2,530,475
4,645,000 County of Orange, Water Utility System Revenue,
3.0%, 10/1/34 4,656,148
3,000,000 Escambia County Health Facilities Authority, Baptist
Hospital, Inc. Project, Series A, 6.0%, 8/15/36 3,288,780
1,390,000 Florida Development Finance Corp., Renaissance
Charter School, Series A, 6.0%, 9/15/30 1,474,651
5,000,000 Florida's Turnpike Enterprise, Department
Transportation, Series A, 4.0%, 7/1/30 5,409,600
6,850,000 JEA Water & Sewer System Revenue, Series A,
4.0%, 10/1/34 7,491,503
3,400,000(c) St. Johns County Industrial Development Authority,
Presbyterian Retirement, Series A, 6.0%, 8/1/45 3,763,528
10,000,000(b) State of Florida, Capital Outlay, Series A,
3.0%, 6/1/29 10,330,400
5,430,000(b) State of Florida, Capital Outlay, Series B,
5.0%, 6/1/27 6,704,204
8,000,000(b) State of Florida, Capital Outlay, Series C,
3.0%, 6/1/30 8,182,960
-----------------
$ 75,902,728
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 17
Schedule of Investments | 12/31/17 (continued)
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Georgia -- 4.0%
5,750,000 Burke County Development Authority, Oglethorpe
Power Corp. Vogtle, Series E, 7.0%, 1/1/23 $ 5,749,655
8,000,000(b) City of Atlanta, Public Improvement, 4.5%, 12/1/29 9,217,920
2,040,000(b) County of Fulton, Library Bond, 3.25%, 7/1/37 2,085,247
2,870,000(b) County of Fulton, Library Bond, 3.5%, 7/1/39 2,961,410
4,790,000(b) County of Fulton, Library Bond, 4.0%, 7/1/40 5,241,218
10,000,000 Forsyth County Water & Sewerage Authority,
5.0%, 4/1/41 11,625,200
5,000,000 Metropolitan Atlanta Rapid Transit Authority,
Series C, 3.5%, 7/1/38 5,146,800
2,000,000(e) Monroe County Development Authority, Power Co.
Plant-Scherer 1St SE, 2.0%, 7/1/25 1,989,820
5,000,000 Municipal Electric Authority of Georgia, Project 1,
Subordinated, Series A, 5.0%, 1/1/28 5,951,300
2,750,000 Private Colleges & Universities Authority, Emory
University, Series A, 5.0%, 10/1/43 3,133,020
-----------------
$ 53,101,590
-----------------------------------------------------------------------------------------------------------
Illinois -- 3.2%
1,000,000 Illinois Finance Authority, American Water Capital
Corp., Project, 5.25%, 5/1/40 $ 1,054,570
1,000,000 Illinois Finance Authority, Art Institute Of Chicago,
4.0%, 3/1/38 1,059,240
1,500,000 Illinois Finance Authority, Art Institute Of Chicago,
5.0%, 3/1/30 1,753,530
5,000,000 Illinois Finance Authority, Centegra Health System,
Series A, 5.0%, 9/1/42 5,340,800
1,500,000 Illinois Finance Authority, Northwestern Memorial
Healthcare, 4.0%, 7/15/36 1,612,950
2,175,000 Illinois Finance Authority, Northwestern Memorial
Healthcare, 4.0%, 7/15/37 2,332,970
3,000,000 Illinois Finance Authority, Northwestern Memorial
Healthcare, 4.0%, 7/15/47 3,195,270
8,540,000 Illinois Finance Authority, Presence Health Network,
Series C, 5.0%, 2/15/33 9,681,884
1,000,000 Illinois Finance Authority, Presence Health Network,
Series C, 5.0%, 2/15/36 1,125,320
5,000,000 Illinois Finance Authority, Roosevelt University
Project, 6.5%, 4/1/39 5,311,150
4,000,000 Illinois Finance Authority, Silver Cross Hospital And
Medical, 5.5%, 8/15/30 4,073,840
5,000,000(f) Metropolitan Pier & Exposition Authority,
Mccormick Place Convention, 7.0%, 7/1/26 6,118,500
-----------------
$ 42,660,024
-----------------------------------------------------------------------------------------------------------
Indiana -- 0.4%
2,000,000 Indiana Bond Bank, Special Program-Hendricks
Regional Health, Series A, 5.5%, 2/1/29 (MORAL
OBLIG Insured) $ 2,090,260
The accompanying notes are an integral part of these financial statements.
18 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Indiana -- (continued)
3,000,000 Indiana University, Series A, 4.0%, 6/1/42 $ 3,210,330
165,000 Indianapolis Local Public Improvement Bond Bank,
Series B, 6.0%, 1/10/20 170,869
-----------------
$ 5,471,459
-----------------------------------------------------------------------------------------------------------
Louisiana -- 0.6%
6,000,000 Jefferson Parish Hospital Service District No. 2,
East Jefferson General Hospital, 6.375%, 7/1/41 $ 6,230,400
245,000 Louisiana Local Government Environmental
Facilities & Community Development Authority,
Capital Projects And Equipment Acquisition,
5.25%, 12/1/18 (AMBAC Insured) 245,723
400,000(c) Louisiana State Citizens Property Insurance Corp.,
5.0%, 6/1/24 453,856
500,000(c) Louisiana State Citizens Property Insurance Corp.,
5.0%, 6/1/24 (AGM Insured) 567,320
-----------------
$ 7,497,299
-----------------------------------------------------------------------------------------------------------
Maine -- 0.9%
4,500,000 Maine Health & Higher Educational Facilities
Authority, Maine General Medical Center,
6.75%, 7/1/36 $ 4,947,570
3,040,000 Maine Health & Higher Educational Facilities
Authority, Maine General Medical Center,
6.95%, 7/1/41 3,365,706
2,745,000 University of Maine, 5.0%, 3/1/25 (AGM Insured) 3,320,324
-----------------
$ 11,633,600
-----------------------------------------------------------------------------------------------------------
Maryland -- 3.3%
3,000,000 County of Frederick, Mount Sainterest Mary's
University, 5.625%, 9/1/38 $ 3,003,120
2,000,000 Maryland Economic Development Corp., Potomac,
6.2%, 9/1/22 2,107,280
900,000(g) Maryland Economic Development Corp., Senior
Lien-Chesapeake Bay, Series A, 5.0%, 12/1/16 540,000
400,000(g) Maryland Economic Development Corp., Senior
Lien-Chesapeake Bay, Series B, 5.0%, 12/1/16 240,000
6,250,000 Maryland Health & Higher Educational Facilities
Authority, Ascension Health, Series B,
5.0%, 11/15/51 6,936,812
6,350,000(b) State of Maryland, Series A, 3.0%, 3/1/30 6,444,107
5,000,000(b) State of Maryland, Series A, 5.0%, 3/15/29 6,202,450
5,175,000(b) Washington Suburban Sanitary Commission,
Consolidated Public Improvement, 3.0%, 6/1/35 5,190,215
5,180,000(b) Washington Suburban Sanitary Commission,
Consolidated Public Improvement, 3.0%, 6/1/37 5,142,186
3,880,000(b) Washington Suburban Sanitary Commission,
Consolidated Public Improvement, Second Series,
4.0%, 6/1/43 4,137,360
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 19
Schedule of Investments | 12/31/17 (continued)
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Maryland -- (continued)
3,735,000(b) Washington Suburban Sanitary Commission,
Consolidated Public Improvement, Second Series,
4.0%, 6/1/44 $ 3,969,222
-----------------
$ 43,912,752
-----------------------------------------------------------------------------------------------------------
Massachusetts -- 18.1%
1,055,000(b) City of Beverly, 3.125%, 10/15/39 $ 1,036,115
1,095,000(b) City of Beverly, Municipal Purpose Loan,
4.0%, 10/15/27 1,261,998
1,095,000(b) City of Beverly, Municipal Purpose Loan,
4.0%, 10/15/28 1,256,326
2,720,000(b) City of Cambridge, Municipal Purpose Loan,
4.0%, 2/15/25 3,117,990
1,375,000(b) City of Cambridge, Municipal Purpose Loan,
4.0%, 2/15/26 1,594,587
5,075,000(b) City of Cambridge, Municipal Purpose Loan,
Series A, 3.0%, 2/15/35 5,163,000
6,400,000(b)(h) Commonwealth of Massachusetts, St. Fltg,
Series A, 1.472% (3 Month USD LIBOR +
55 bps), 11/1/25 6,379,840
1,300,000(b) Concord & Carlisle Regional School District,
3.0%, 3/15/29 1,346,917
1,300,000(b) Concord & Carlisle Regional School District,
3.0%, 3/15/31 1,332,760
1,300,000(b) Concord & Carlisle Regional School District,
3.0%, 3/15/33 1,321,931
7,175,000(d) Massachusetts Bay Transportation Authority,
Series A, 7/1/28 5,476,893
5,000,000(d) Massachusetts Department of Transportation,
Series A, 1/1/28 (NATL Insured) 3,794,300
4,200,000 Massachusetts Development Finance Agency,
Agency Williams College, Series P, 5.0%, 7/1/43 4,756,668
1,000,000 Massachusetts Development Finance Agency,
Babson College, 5.0%, 10/1/21 1,113,420
1,000,000 Massachusetts Development Finance Agency,
Babson College, 5.0%, 10/1/22 1,104,250
1,500,000 Massachusetts Development Finance Agency,
Berklee College Music, 5.0%, 10/1/35 1,768,335
1,000,000 Massachusetts Development Finance Agency,
Berkshire Health System, Series G, 5.0%, 10/1/30 1,108,140
4,000,000 Massachusetts Development Finance Agency,
Boston University, Series X, 5.0%, 10/1/48 4,610,480
2,865,000 Massachusetts Development Finance Agency,
Broad Institute, 4.0%, 4/1/41 3,115,516
2,000,000 Massachusetts Development Finance Agency,
Broad Institute, 5.0%, 4/1/37 2,412,680
10,000,000(c) Massachusetts Development Finance Agency, Broad
Institute, Inc., Series A, 5.25%, 4/1/37 11,109,000
The accompanying notes are an integral part of these financial statements.
20 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Massachusetts - (continued)
6,255,000(c) Massachusetts Development Finance Agency, Broad
Institute, Inc., Series A, 5.375%, 4/1/41 $ 6,973,262
1,000,000 Massachusetts Development Finance Agency,
Foxborough Regional Charter School, Series A,
7.0%, 7/1/42 1,077,700
5,000,000 Massachusetts Development Finance Agency,
Harvard University, Series A, 4.0%, 7/15/36 5,500,400
1,000,000 Massachusetts Development Finance Agency,
Harvard University, Series A, 5.0%, 7/15/40 1,351,640
835,000(c) Massachusetts Development Finance Agency,
Harvard University, Series A, 5.5%, 11/15/36 864,150
2,565,000(c) Massachusetts Development Finance Agency,
Harvard University, Series A, 5.5%, 11/15/36 2,654,544
5,000,000 Massachusetts Development Finance Agency,
Lawrence General Hospital, Series A, 5.5%, 7/1/44 5,591,800
4,000,000 Massachusetts Development Finance Agency, Lowell
General Hospital, Series G, 5.0%, 7/1/44 4,337,080
400,000 Massachusetts Development Finance Agency,
Milford Regional Medical Center, Series F,
5.625%, 7/15/36 443,904
500,000 Massachusetts Development Finance Agency,
Milford Regional Medical Center, Series F,
5.75%, 7/15/43 555,345
2,000,000 Massachusetts Development Finance Agency,
Northeastern University, 4.0%, 10/1/35 2,088,660
450,000 Massachusetts Development Finance Agency,
Northeastern University, Series A, 5.0%, 3/1/39 508,639
9,930,000 Massachusetts Development Finance Agency,
Partners Healthcare, 5.0%, 7/1/31 11,587,516
8,000,000 Massachusetts Development Finance Agency,
Partners Healthcare System, Series S, 4.0%, 7/1/35 8,614,720
2,700,000 Massachusetts Development Finance Agency,
Partners Healthcare, Series O, 4.0%, 7/1/45 2,817,288
400,000 Massachusetts Development Finance Agency, Tufts
Medical, Series I, 6.75%, 1/1/36 457,720
600,000(c) Massachusetts Development Finance Agency, Tufts
Meducation Center, Series, 6.75%, 1/1/36 685,068
1,000,000 Massachusetts Development Finance Agency, Tufts
University, Series Q, 4.0%, 8/15/38 1,070,430
1,000,000 Massachusetts Development Finance Agency,
Umass Memorial, Series H, 5.125%, 7/1/26 1,093,630
4,080,000(d) Massachusetts Development Finance Agency,
WGBH Educational Foundation, Series B,
1/1/38 (AGC Insured) 1,983,451
6,185,000 Massachusetts Development Finance Agency,
WGBH Foundation, Series A, 5.75%, 1/1/42
(AMBAC Insured) 8,759,073
1,680,000 Massachusetts Development Finance Agency,
Wheelock College, Series C, 5.25%, 10/1/29 1,680,319
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 21
Schedule of Investments | 12/31/17 (continued)
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Massachusetts - (continued)
3,320,000 Massachusetts Development Finance Agency,
Wheelock College, Series C, 5.25%, 10/1/37 $ 3,314,256
1,585,000 Massachusetts Development Finance Agency,
Whitehead Institute Biomedical Research,
5.0%, 6/1/25 1,750,395
2,500,000 Massachusetts Development Finance Agency,
Worcester Polytechnic Institute, 4.0%, 9/1/49 2,583,700
1,250,000 Massachusetts Development Finance Agency,
Worcester Polytechnic Institute, 5.0%, 9/1/50 1,376,237
3,220,000(c) Massachusetts Health & Educational Facilities
Authority, Boston Medical Center, 5.25%, 7/1/38 3,279,409
395,000(c) Massachusetts Health & Educational Facilities
Authority, Boston Medical Center, 5.25%, 7/1/38 402,288
2,335,000 Massachusetts Health & Educational Facilities
Authority, Massachusetts Eye And Ear Infirmary,
Series C, 5.375%, 7/1/35 2,474,843
16,950,000 Massachusetts Health & Educational Facilities
Authority, Massachusetts Institute of Technology,
Series K, 5.5%, 7/1/32 23,150,480
1,000,000(c) Massachusetts Health & Educational Facilities
Authority, Massachusetts Institute of Technology,
Series O, 5.5%, 7/1/36 1,020,180
2,000,000 Massachusetts Health & Educational Facilities
Authority, Northeastern University, Series T-2,
4.125%, 10/1/37 2,050,600
7,000,000 Massachusetts Port Authority, Senior, Series B,
5.0%, 8/15/29 7,941,360
1,000,000 Massachusetts Port Authority, Series B, 5.0%, 7/1/32 1,129,260
1,000,000 Massachusetts Port Authority, Series B, 5.0%, 7/1/33 1,124,670
3,000,000 Massachusetts Port Authority, Series C, 5.0%, 7/1/33 3,525,600
3,975,000 Massachusetts State College Building Authority,
Series A, 5.0%, 5/1/28 (ST INTERCEPT Insured) 4,458,161
2,420,000 Massachusetts Water Resources Authority, General,
Series B, 5.25%, 8/1/36 (AGM Insured) 3,342,698
5,000,000(b) Town of Braintree, 5.0%, 5/15/25 6,037,800
1,875,000(b) Town of Lexington, 4.0%, 2/15/21 2,007,694
1,305,000(b) Town of Nantucket, 2.0%, 12/15/27 1,279,487
1,955,000(b) Town of Norwood, Municipal Purpose Loan,
2.125%, 7/15/30 1,897,093
1,535,000(b) Town of Plymouth, Municipal Purpose Loan,
3.375%, 5/1/32 1,602,387
1,265,000(b) Town of Plymouth, Municipal Purpose Loan,
3.5%, 5/1/35 1,313,045
3,500,000(b) Town of Plymouth, Municipal Purpose Loan,
3.5%, 5/1/44 3,564,155
2,635,000(b) Town of Plymouth, Municipal Purpose Loan,
5.0%, 5/1/29 3,254,041
1,590,000(b) Town of Reading, 3.0%, 4/15/20 1,638,241
The accompanying notes are an integral part of these financial statements.
22 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Massachusetts - (continued)
1,385,000(b) Town of Reading, 3.0%, 4/15/22 $ 1,456,120
1,625,000(b) Town of Reading, 3.0%, 4/15/23 1,727,050
1,000,000(b) Town of Wellesley, Municipal Purpose Loan,
4.0%, 6/1/41 1,074,940
4,000,000(b) Town of Wellesley, Municipal Purpose Loan,
4.0%, 6/1/45 4,288,680
4,500,000(b) Town of Wilmington, School, 4.0%, 3/15/37 4,787,775
2,500,000 University of Massachusetts Building Authority,
Series 1, 5.0%, 11/1/39 2,795,775
4,160,000 Woods Hole Marthas Vineyard & Nantucket
Steamship Authority, Series A, 4.0%, 3/1/28
(ST GTD Insured) 4,665,232
-----------------
$ 241,191,137
-----------------------------------------------------------------------------------------------------------
Michigan -- 0.7%
3,050,000 Michigan Public Educational Facilities Authority,
Limited Obligation-David Ellis-West Project,
5.875%, 6/1/37 $ 2,962,221
5,000,000 University of Michigan, 5.0%, 4/1/36 5,954,600
-----------------
$ 8,916,821
-----------------------------------------------------------------------------------------------------------
Minnesota -- 1.3%
3,000,000 City of Rochester, Mayo Clinic, Series B,
5.0%, 11/15/29 $ 3,769,770
2,400,000 City of Rochester, Mayo Clinic, Series B,
5.0%, 11/15/36 3,161,352
5,000,000(b) State of Minnesota, Series B, 3.0%, 10/1/36 4,999,850
2,875,000 University of Minnesota, Series A, 5.0%, 4/1/33 3,450,058
600,000 University of Minnesota, Series B, 4.0%, 1/1/20 627,792
1,000,000 University of Minnesota, Series B, 4.0%, 1/1/29 1,098,800
860,000 University of Minnesota, Series B, 4.0%, 1/1/30 940,926
-----------------
$ 18,048,548
-----------------------------------------------------------------------------------------------------------
Mississippi -- 0.2%
2,750,000 County of Warren, International Paper Co., Series A,
5.8%, 5/1/34 $ 3,010,810
-----------------------------------------------------------------------------------------------------------
Missouri -- 1.2%
2,500,000 Health & Educational Facilities Authority of the
State of Missouri, CoxHealth Hospital, Series A,
5.0%, 11/15/35 $ 2,852,150
4,000,000 Health & Educational Facilities Authority of the
State of Missouri, Mercy Health, Series F,
4.0%, 11/15/45 4,198,280
2,000,000 Missouri Development Finance Board, City of
Independence-Annual Appropriation Sewer System,
5.25%, 11/1/42 2,281,340
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 23
Schedule of Investments | 12/31/17 (continued)
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Missouri -- (continued)
75,000 Missouri State Environmental Improvement &
Energy Resources Authority, Unrefunded Balance-St.
Revolving, 5.125%, 1/1/20 $ 75,214
5,500,000 University of Missouri, Series A, 5.0%, 11/1/25 6,575,140
-----------------
$ 15,982,124
-----------------------------------------------------------------------------------------------------------
New Hampshire -- 1.0%
4,000,000 New Hampshire Health & Education Facilities
Authority Act, Catholic Medical Centre,
3.75%, 7/1/40 $ 4,015,880
7,850,000 New Hampshire Health & Education Facilities
Authority Act, Wentworth Douglas Hospital,
Series A, 6.5%, 1/1/41 8,943,034
-----------------
$ 12,958,914
-----------------------------------------------------------------------------------------------------------
New Jersey -- 1.9%
5,000,000 New Jersey Educational Facilities Authority,
Princeton University, Series B, 5.0%, 7/1/27 $ 6,215,000
3,000,000 New Jersey Educational Facilities Authority,
Princeton University, Series B, 5.0%, 7/1/39 3,325,860
10,000,000 New Jersey Educational Facilities Authority,
Princeton University, Series C, 4.0%, 7/1/47 10,950,700
2,000,000 New Jersey Transportation Trust Fund Authority,
Transportation System, Series A, 5.5%, 6/15/41
(ST APPROP Insured) 2,149,760
1,640,000(b) Township of Plainsboro, General Improvement,
2.0%, 8/1/24 1,645,035
1,850,000(b) Township of Plainsboro, General Improvement,
2.0%, 8/1/25 1,847,391
-----------------
$ 26,133,746
-----------------------------------------------------------------------------------------------------------
New York -- 2.9%
5,030,000 New York State Dormitory Authority, Columbia
University, 5.0%, 10/1/41 $ 5,504,933
5,000,000 New York State Dormitory Authority, Columbia
University, Series A-2, 5.0%, 10/1/46 7,037,900
5,515,000 New York State Dormitory Authority, Insured-FIT
Student Housing Corp., 5.25%, 7/1/24
(NATL Insured) 6,326,367
4,500,000 New York State Dormitory Authority, New York
University, Series A, 4.0%, 7/1/36 4,939,605
5,015,000 New York State Dormitory Authority, Series A,
5.0%, 3/15/31 5,956,165
3,250,000 New York State Dormitory Authority, Trustees of
Columbia University, 5.0%, 10/1/45 4,552,307
1,500,000 Port Authority of New York & New Jersey,
Consolidated Ninety-Third Series, 6.125%, 6/1/94 1,850,220
2,925,000(b) White Plains City School District, 2.0%, 5/15/28
(ST AID WITHHLDG Insured) 2,815,751
-----------------
$ 38,983,248
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
North Carolina -- 2.7%
3,000,000 City of Charlotte, Storm Water Revenue,
4.0%, 12/1/43 $ 3,232,560
3,000,000 City of Fayetteville, Public Works Commission
Revenue, 3.0%, 3/1/33 3,028,140
2,000,000(b) City of Raleigh, Series A, 5.0%, 9/1/20 2,175,880
6,565,000(b) City of Raleigh, Series A, 5.0%, 9/1/28 8,411,012
3,730,000(b) City of Winston-Salem, Series B, 4.0%, 6/1/33 4,199,868
5,400,000 North Carolina Municipal Power Agency No. 1,
Series A, 5.0%, 1/1/28 6,454,782
2,500,000(b) State of North Carolina, Series A, 5.0%, 6/1/27 3,097,575
5,000,000(b) State of North Carolina, Series A, 5.0%, 6/1/28 6,168,950
-----------------
$ 36,768,767
-----------------------------------------------------------------------------------------------------------
North Dakota -- 0.4%
5,000,000 County of McLean, Great River Energy, Series B,
5.15%, 7/1/40 $ 5,250,350
-----------------------------------------------------------------------------------------------------------
Ohio -- 3.6%
50,000,000(d) Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, 2nd Subordinated, Series C, 6/1/52 $ 1,370,500
10,000,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 5.75%, 6/1/34 9,649,700
9,000,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 6.5%, 6/1/47 9,000,090
5,000,000(b) City of Columbus, Series A, 4.0%, 4/1/31 5,615,500
4,200,000(c) County of Lake, Lake Hospital, 6.0%, 8/15/43 4,316,802
800,000 County of Lake, Lake Hospital, Series S,
6.0%, 8/15/43 821,536
10,000,000 JobsOhio Beverage System, Senior Lien, Series A,
5.0%, 1/1/38 11,087,600
5,000,000(b)(c) State of Ohio, Common Schools, Series B,
5.0%, 6/15/29 5,678,950
-----------------
$ 47,540,678
-----------------------------------------------------------------------------------------------------------
Oklahoma -- 0.2%
3,200,000 McGee Creek Authority, Oklahoma Water Revenue,
6.0%, 1/1/23 (NATL Insured) $ 3,470,688
-----------------------------------------------------------------------------------------------------------
Oregon -- 1.9%
5,000,000(b) Clackamas County School District No. 7J Lake
Oswego, School District, 4.0%, 6/1/43
(SCH BD GTY Insured) $ 5,424,300
3,000,000(b) Deschutes & Jefferson Counties School District
No. 2J Redmond, 3.0%, 6/15/32
(SCH BD GTY Insured) 3,018,000
2,000,000(b)(d) Multnomah County School District No. 40, Deferred
Interest, Series B, 6/15/30 (SCH BD GTY Insured) 1,416,500
2,000,000(b)(d) Multnomah County School District No. 40, Deferred
Interest, Series B, 6/15/31 (SCH BD GTY Insured) 1,357,840
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 25
Schedule of Investments | 12/31/17 (continued)
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Oregon -- (continued)
1,715,000(b)(d) Multnomah County School District No. 40, Deferred
Interest, Series B, 6/15/32 (SCH BD GTY Insured) $ 1,124,886
2,000,000 Oregon Health & Science University, Series A,
5.0%, 7/1/42 2,355,480
1,500,000 Oregon Health & Science University, Series B,
5.0%, 7/1/28 1,825,095
7,030,000(b) State of Oregon, Series J, 5.0%, 8/1/42 8,452,169
-----------------
$ 24,974,270
-----------------------------------------------------------------------------------------------------------
Pennsylvania -- 3.6%
825,000 Chester County Industrial Development Authority,
Collegium Charter School, Series A,
5.125%, 10/15/37 $ 863,197
175,000 Chester County Industrial Development Authority,
Collegium Charter School, Series A, 5.25%, 10/15/47 182,028
4,095,000 Dauphin County General Authority, Pinnacle Health
System Project, 5.0%, 6/1/42 4,574,443
3,725,000 Delaware County Industrial Development Authority,
Chester Charter School Arts Project, Series A,
5.125%, 6/1/46 (144A) 3,774,356
1,000,000(c) Pennsylvania Higher Educational Facilities Authority,
Edinboro University Foundation, 6.0%, 7/1/43 1,106,140
11,500,000(h) Pennsylvania Higher Educational Facilities Authority,
Foundation Indiana University Pennsylvania,
Series A, 1.545% (3 Month USD LIBOR + 65 bps),
7/1/39 (XLCA Insured) 9,431,840
4,750,000 Pennsylvania Higher Educational Facilities Authority,
Thomas Jefferson University, 5.0%, 9/1/39 5,387,402
1,000,000 Pennsylvania Higher Educational Facilities Authority,
University Pptys, Inc., East Stroudsburg, 5.0%, 7/1/42 1,037,710
2,000,000 Pennsylvania Turnpike Commission, Series A-1,
5.0%, 12/1/42 2,342,560
3,435,000(c) Pennsylvania Turnpike Commission, Subordinated,
Series D, 5.3%, 12/1/41 3,671,225
2,500,000 Philadelphia Authority for Industrial Development,
Childrens Hospital Philadelphia, 4.0%, 7/1/35 2,716,425
3,750,000 Philadelphia Authority for Industrial Development,
Childrens Hospital Philadelphia, 4.0%, 7/1/36 4,057,838
2,500,000 Philadelphia Authority for Industrial Development,
Childrens Hospital Philadelphia, 4.0%, 7/1/37 2,698,775
2,500,000 Philadelphia Authority for Industrial Development,
Childrens Hospital Philadelphia, 5.0%, 7/1/42 2,897,550
3,000,000 Philadelphia Authority for Industrial Development,
Thomas Jefferson University, Series A, 4.0%, 9/1/42 3,121,350
-----------------
$ 47,862,839
-----------------------------------------------------------------------------------------------------------
Puerto Rico -- 0.1%
7,000,000(b)(g) Commonwealth of Puerto Rico, Series A,
8.0%, 7/1/35 $ 1,662,500
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Rhode Island -- 0.9%
6,140,000 Rhode Island Health & Educational Building Corp.,
Brown University, Series A, 4.0%, 9/1/37 $ 6,710,774
41,290,000(d) Tobacco Settlement Financing Corp., Asset-Backed,
Series A, 6/1/52 4,040,227
20,000,000(d) Tobacco Settlement Financing Corp., Asset-Backed,
Series B, 6/1/52 1,685,200
-----------------
$ 12,436,201
-----------------------------------------------------------------------------------------------------------
South Carolina -- 1.4%
1,000,000 SCAGO Educational Facilities Corp. for Pickens
School District, 3.25%, 12/1/28 $ 1,021,160
8,265,000 South Carolina Public Service Authority, Santee
Cooper, Series D, 5.0%, 12/1/43 9,028,769
7,675,000 South Carolina Transportation Infrastructure Bank,
Series A, 3.0%, 10/1/33 7,570,313
500,000(b) State of South Carolina, St. Economic Development,
Series A, 5.0%, 4/1/20 537,320
-----------------
$ 18,157,562
-----------------------------------------------------------------------------------------------------------
Texas -- 8.9%
3,550,000(d) Central Texas Regional Mobility Authority, Capital
Appreciation, 1/1/26 $ 2,743,440
3,000,000(d) Central Texas Regional Mobility Authority, Capital
Appreciation, 1/1/27 2,215,260
7,100,000(d) Central Texas Regional Mobility Authority, Capital
Appreciation, Senior Lien, 1/1/25 5,725,511
2,500,000(c) Central Texas Regional Mobility Authority, Sub Lien,
6.75%, 1/1/41 2,866,275
5,000,000(b) City of Pearland, Refunding And Permanent
Improvement, 4.0%, 3/1/29 5,408,800
8,285,000 Dallas Area Rapid Transit, Senior Lien, 5.25%,
12/1/29 (AMBAC Insured) 10,658,818
11,900,000 Dallas Area Rapid Transit, Series A, 5.0%, 12/1/33 13,917,169
5,080,000(b) Eagle Mountain & Saginaw Independent School
District, 3.0%, 8/15/29 (PSF-GTD Insured) 5,190,287
5,000,000(b) Grapevine-Colleyville Independent School District,
5.0%, 8/15/27 (PSF-GTD Insured) 6,054,750
1,000,000 Harris County Cultural Education Facilities Finance
Corp., Ymca Greater Houston Area, 5.0%, 6/1/28 1,083,590
500,000 Harris County Cultural Education Facilities Finance
Corp., Ymca Greater Houston Area, 5.0%, 6/1/33 536,920
2,750,000(c) Houston Higher Education Finance Corp., Rice
University Project, Series A, 5.0%, 5/15/35 2,953,610
5,000,000(b) Lubbock-Cooper Independent School District,
4.0%, 2/15/49 (PSF-GTD Insured) 5,324,750
2,000,000 New Hope Cultural Education Facilities Finance
Corp., Cardinal Bay, Inc., Village On The Park,
4.75%, 7/1/51 2,110,080
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 27
Schedule of Investments | 12/31/17 (continued)
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Texas -- (continued)
2,000,000 North Texas Tollway Authority, First Tier, Series D,
5.0%, 1/1/38 $ 2,179,400
4,000,000 North Texas Tollway Authority, Second Tier,
Series A, 5.0%, 1/1/30 4,677,200
5,000,000 North Texas Tollway Authority, Second Tier,
Series A, 5.0%, 1/1/35 5,742,250
7,525,000(b) State of Texas, Highway Improvement,
5.0%, 4/1/29 8,824,492
4,000,000 Texas Municipal Gas Acquisition & Supply
Corp. III, 5.0%, 12/15/31 4,462,840
10,410,000 Texas Private Activity Bond Surface Transportation
Corp., Senior Lien-LBJ Infrastructure,
7.0%, 6/30/40 11,633,904
2,755,000(c) Texas State Public Finance Authority Charter
School Finance Corp., Education-Cosmos
Foundation, Inc., Series A, 6.2%, 2/15/40 3,001,958
4,500,000 Texas Transportation Commission State Highway
Fund, First Tier, Series A, 5.0%, 4/1/23 5,219,910
5,000,000 University of Texas System, Financing System,
Series A, 5.0%, 8/15/24 5,973,100
-----------------
$ 118,504,314
-----------------------------------------------------------------------------------------------------------
Utah -- 1.1%
1,000,000 Salt Lake City Corp. Airport Revenue, Series B,
5.0%, 7/1/34 $ 1,193,340
315,000 Utah Charter School Finance Authority, North
Davis Preparatory, 5.75%, 7/15/20 331,957
4,835,000 Utah Transit Authority, Series A, 5.0%, 6/15/31 5,738,613
7,000,000 Utah Transit Authority, Subordinated,
3.0%, 12/15/29 7,120,470
-----------------
$ 14,384,380
-----------------------------------------------------------------------------------------------------------
Vermont -- 0.3%
4,285,000 University of Vermont & State Agricultural College,
4.0%, 10/1/32 $ 4,660,409
-----------------------------------------------------------------------------------------------------------
Virginia -- 7.8%
1,170,000(b) City of Manassas, 2.0%, 7/1/31 (ST AID
WITHHLDG Insured) $ 1,068,128
5,015,000(b) City of Richmond, Series B, 3.0%, 7/15/34 5,023,225
5,000,000(b) County of Arlington, 4.0%, 8/15/35 5,565,100
10,000,000(b) County of Fairfax, Series A, 4.0%, 10/1/33
(ST AID WITHHLDG Insured) 11,161,000
10,450,000(b) County of Fairfax, Series A, 4.0%, 10/1/34
(ST AID WITHHLDG Insured) 11,403,458
7,500,000 County of Washington Industrial Development
Authority, Mountain States Health Alliance,
Series C, 7.75%, 7/1/38 7,937,100
19,490,000 Tobacco Settlement Financing Corp., Senior,
Series B-1, 5.0%, 6/1/47 18,905,105
The accompanying notes are an integral part of these financial statements.
28 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Virginia -- (continued)
4,000,000 University of Virginia, Series A, 5.0%, 6/1/37 $ 4,610,240
7,075,000 University of Virginia, Series A, 5.0%, 4/1/42 8,533,087
5,000,000 University of Virginia, Series A, 5.0%, 6/1/43 5,729,650
12,000,000 University of Virginia, Series A-1, 4.0%, 4/1/45 12,921,600
5,000,000 Upper Occoquan Sewage Authority, 4.0%, 7/1/41 5,410,100
5,000,000 Virginia Public School Authority Revenue, 4.0%,
8/1/25 (ST AID WITHHLDG Insured) 5,646,300
-----------------
$ 103,914,093
-----------------------------------------------------------------------------------------------------------
Washington -- 5.4%
10,000,000 FYI Properties, Washington St. District Project,
5.5%, 6/1/39 $ 10,523,100
10,000,000 King County Housing Authority, Birch Creek
Apartments Project, 5.5%, 5/1/38
(CNTY GTD Insured) 10,308,800
5,000,000(b) King County Issaquah School District No. 411, 4.0%,
12/1/31 (SCH BD GTY Insured) 5,513,800
3,000,000(b) King County Issaquah School District No. 411, 4.5%,
12/1/30 (SCH BD GTY Insured) 3,395,100
3,000,000(b)(c) King County Public Hospital District No. 1, Series B,
5.25%, 12/1/37 3,044,250
1,500,000 Public Utility District No. 1 of Franklin County,
Series A, 5.0%, 9/1/38 1,674,930
10,390,000(b) State of Washington, Series 2015-D, 5.0%, 7/1/30 12,318,280
5,000,000(b) State of Washington, Series 2017-A, 5.0%, 8/1/30 6,045,400
5,000,000(b) State of Washington, Series A, 5.0%, 8/1/36 5,716,900
6,685,000 University of Washington, Series B, 5.0%, 6/1/28 8,044,595
5,000,000 Washington Health Care Facilities Authority,
Providence Health, Series C, 5.25%, 10/1/33
(AGM Insured) 5,139,250
-----------------
$ 71,724,405
-----------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $1,275,290,471) $ 1,333,142,751
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 29
Schedule of Investments | 12/31/17 (continued)
-----------------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------------
CLAIM -- 0.0%+ of Net Assets
COMMERCIAL SERVICES & SUPPLIES -- 0.0%+
Research & Consulting Services -- 0.0%+
200(i) CMS Liquidating Trust $ 580,000
-----------------
Total Commercial Services & Supplies $ 580,000
-----------------------------------------------------------------------------------------------------------
TOTAL CLAIM
(Cost $640,000) $ 580,000
-----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED
ISSUERS -- 99.9%
(Cost $1,275,930,471) $ 1,333,722,751
-----------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 0.1% $ 1,197,250
-----------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 1,334,920,001
===========================================================================================================
BPS Basis Point.
LIBOR London Interbank Offered Rate.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
December 31, 2017, the value of these securities amounted to $3,774,356,
or 0.3% of net assets.
+ Amount rounds to less than 0.1%.
(a) Consists of Revenue Bonds unless otherwise indicated.
(b) Represents a General Obligation Bond.
(c) Pre-Refunded bonds have been collateralized by U.S. Treasury or U.S.
Government Agency securities which are held in escrow to pay interest
and principal on the tax exempt issue and to retire the bonds in full at
the earliest refunding date.
(d) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(e) The interest rate is subject to change periodically. The interest rate,
reference index and/or spread shown at December 31, 2017.
(f) Escrow to maturity.
(g) Security is in default.
(h) Floating Rate Note. Coupon rate, reference index and spread shown at
December 31, 2017.
(i) Non-income producing security.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended December 31, 2017 aggregated $437,818,034 and $257,852,476,
respectively.
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Amundi Pioneer Asset
Management, Inc., formerly Pioneer Investment Management, Inc. (the "Adviser"),
serves as the Fund's investment adviser, as set forth in Rule 17a-7 under the
Investment Company Act of 1940, pursuant to procedures adopted by the Board of
Trustees. Under these procedures, cross trades are affected at current market
prices. During the year ended December 31, 2017, the Fund engaged in purchases
and sales pursuant to these procedures amounting to $76,042,205 and $67,153,816,
respectively, resulting in a gain/loss of $--.
The accompanying notes are an integral part of these financial statements.
30 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
At December 31, 2017, the net unrealized appreciation on investments based on
cost for federal tax purposes of $1,275,016,040 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 65,804,458
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (7,097,747)
------------
Net unrealized appreciation $ 58,706,711
============
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments).
See Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of December 31, 2017, in
valuing the Fund's investments:
---------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------
Municipal Bonds $ -- $1,333,142,751 $ -- $1,333,142,751
Claim -- 580,000 -- 580,000
---------------------------------------------------------------------------------------
Total $ -- $1,333,722,751 $ -- $1,333,722,751
=======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 31
Statement of Assets and Liabilities | 12/31/17
ASSETS:
Investments in unaffiliated issuers, at value (cost $1,275,930,471) $1,333,722,751
Receivables --
Investment securities sold 610,000
Fund shares sold 2,704,924
Interest 15,799,704
Due from the Adviser 4,930
Other assets 36,292
---------------------------------------------------------------------------------------
Total assets $1,352,878,601
=======================================================================================
LIABILITIES:
Due to Custodian $ 12,005,382
Payables --
Fund shares repurchased 4,100,534
Distributions 1,462,080
Trustees' fees 1,094
Due to affiliates 111,545
Accrued expenses 277,965
---------------------------------------------------------------------------------------
Total liabilities $ 17,958,600
=======================================================================================
NET ASSETS:
Paid-in capital $1,275,992,643
Undistributed net investment income 3,203,577
Accumulated net realized loss on investments (2,068,499)
Net unrealized appreciation on investments 57,792,280
---------------------------------------------------------------------------------------
Net assets $1,334,920,001
=======================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $646,524,648/44,166,593 shares) $ 14.64
Class C (based on $51,506,493/3,548,700 shares) $ 14.51
Class Y (based on $636,888,860/43,624,930 shares) $ 14.60
MAXIMUM OFFERING PRICE:
Class A ($14.64 (divided by) 95.5%) $ 15.33
=======================================================================================
The accompanying notes are an integral part of these financial statements.
32 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
Statement of Operations
For the Year Ended 12/31/17
INVESTMENT INCOME:
Interest from unaffiliated issuers $ 45,779,060
--------------------------------------------------------------------------------------------------
Total investment income $ 45,779,060
==================================================================================================
EXPENSES:
Management fees $ 5,591,628
Administrative expense 387,566
Transfer agent fees
Class A 241,449
Class C 24,842
Class Y 655,366
Distribution fees
Class A 1,676,602
Class C 557,259
Shareholder communications expense 60,412
Custodian fees 17,148
Registration fees 92,858
Professional fees 84,530
Printing expense 40,742
Pricing expense 69,628
Trustees' fees 57,559
Miscellaneous 80,947
--------------------------------------------------------------------------------------------------
Total expenses $ 9,638,536
Less fees waived and expenses reimbursed by the Adviser $ (417,767)
--------------------------------------------------------------------------------------------------
Net expenses $ 9,220,769
--------------------------------------------------------------------------------------------------
Net investment income $ 36,558,291
--------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on:
Investments in unaffiliated issuers $ (1,621,617)
--------------------------------------------------------------------------------------------------
Change in net unrealized appreciation on:
Investments in unaffiliated issuers $ 45,720,024
--------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ 44,098,407
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 80,656,698
==================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 33
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------
Year Year
Ended Ended
12/31/17 12/31/16*
-----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 36,558,291 $ 33,281,379
Net realized gain (loss) on investments (1,621,617) (501,420)
Change in net unrealized appreciation (depreciation)
on investments 45,720,024 (45,545,050)
-----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 80,656,698 $ (12,765,091)
-----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.40 and $0.42 per share, respectively) $ (18,370,108) $ (20,816,818)
Class C ($0.29 and $0.31 per share, respectively) (1,108,963) (1,328,080)
Class Y ($0.43 and $0.46 per share, respectively) (16,304,850) (12,226,369)
-----------------------------------------------------------------------------------------
Total distributions to shareowners $ (35,783,921) $ (34,371,267)
-----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sales of shares $ 455,138,210 $ 466,834,696
Reinvestment of distributions 20,328,996 22,394,689
Cost of shares repurchased (312,916,158) (355,742,723)
-----------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 162,551,048 $ 133,486,662
-----------------------------------------------------------------------------------------
Net increase in net assets $ 207,423,825 $ 86,350,304
NET ASSETS:
Beginning of year $1,127,496,176 $1,041,145,872
-----------------------------------------------------------------------------------------
End of year $1,334,920,001 $1,127,496,176
=========================================================================================
Undistributed net investment income $ 3,203,577 $ 2,483,724
=========================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
34 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
-------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
12/31/17 12/31/17 12/31/16 12/31/16
Shares Amount Shares* Amount*
-------------------------------------------------------------------------------------------
Class A
Shares sold 2,374,026 $ 34,333,661 7,131,459 $ 105,628,328
Reinvestment of distributions 1,031,241 14,915,777 1,124,626 16,593,480
Less shares repurchased (8,178,795) (117,996,039) (7,905,684) (115,543,640)
-------------------------------------------------------------------------------------------
Net increase (decrease) (4,773,528) $ (68,746,601) 350,401 $ 6,678,168
===========================================================================================
Class C
Shares sold 331,359 $ 4,761,291 1,486,712 $ 21,826,924
Reinvestment of distributions 63,169 905,587 71,480 1,045,960
Less shares repurchased (1,261,894) (18,073,725) (922,793) (13,280,298)
-------------------------------------------------------------------------------------------
Net increase (decrease) (867,366) $ (12,406,847) 635,399 $ 9,592,586
===========================================================================================
Class Y
Shares sold 29,040,126 $ 416,043,258 23,001,360 $ 339,379,444
Reinvestment of distributions 312,300 4,507,632 323,192 4,755,249
Less shares repurchased (12,340,731) (176,846,394) (15,722,292) (226,918,785)
-------------------------------------------------------------------------------------------
Net increase 17,011,695 $ 243,704,496 7,602,260 $ 117,215,908
===========================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 35
Financial Highlights
-----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/17 12/31/16* 12/31/15* 12/31/14* 12/31/13
-----------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 14.12 $ 14.60 $ 14.49 $ 13.25 $ 14.56
-----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.41(a) $ 0.40(a) $ 0.44(a) $ 0.49 $ 0.61
Net realized and unrealized gain (loss) on investments 0.51 (0.46) 0.20 1.29 (1.37)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.92 $ (0.06) $ 0.64 $ 1.78 $ (0.76)
-----------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.40) $ (0.42) $ (0.53) $ (0.54) $ (0.55)
-----------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.40) $ (0.42) $ (0.53) $ (0.54) $ (0.55)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.52 $ (0.48) $ 0.11 $ 1.24 $ (1.31)
-----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.64 $ 14.12 $ 14.60 $ 14.49 $ 13.25
=============================================================================================================================
Total return (b) 6.56% (0.50)% 4.51% 13.61%(c) (5.33)%
Ratio of net expenses to average net assets (d) 0.80% 0.81% 0.82% 0.83% 0.82%
Ratio of net investment income (loss) to average net assets 2.80% 2.73% 3.08% 3.46% 4.16%
Portfolio turnover rate 20% 18% 21% 29% 15%
Net assets, end of period (in thousands) $646,525 $690,991 $709,616 $699,229 $649,007
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.80% 0.81% 0.83% 0.85% 0.84%
Net investment income (loss) to average net assets 2.80% 2.73% 3.07% 3.44% 4.14%
=============================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(c) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended December 31, 2014, the total return would
have been 13.53%.
(d) Includes interest expense of 0.00%, 0.00%, 0.00%, 0.01% and 0.00%,
respectively.
The accompanying notes are an integral part of these financial statements.
36 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
-----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/17 12/31/16* 12/31/15* 12/31/14* 12/31/13
-----------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 14.00 $ 14.48 $ 14.37 $ 13.14 $ 14.44
-----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.29(a) $ 0.29(a) $ 0.33(a) $ 0.36 $ 0.49
Net realized and unrealized gain (loss) on investments 0.51 (0.46) 0.20 1.30 (1.35)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.80 $ (0.17) $ 0.53 $ 1.66 $ (0.86)
-----------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.29) $ (0.31) $ (0.42) $ (0.43) $ (0.44)
-----------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.29) $ (0.31) $ (0.42) $ (0.43) $ (0.44)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.51 $ (0.48) $ 0.11 $ 1.23 $ (1.30)
-----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.51 $ 14.00 $ 14.48 $ 14.37 $ 13.14
=======================================================================================================================
Total return (b) 5.72% (1.27)% 3.74% 12.75%(c) (6.05)%
Ratio of net expenses to average net assets (d) 1.55% 1.56% 1.56% 1.60% 1.59%
Ratio of net investment income (loss) to average net assets 2.05% 1.98% 2.33% 2.69% 3.39%
Portfolio turnover rate 20% 18% 21% 29% 15%
Net assets, end of period (in thousands) $51,506 $61,832 $54,752 $47,734 $37,291
=======================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(c) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended December 31, 2014, the total return would
have been 12.67%.
(d) Includes interest expense of 0.00%, 0.00%, 0.00%, 0.01% and 0.00%,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 37
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/17 12/31/16* 12/31/15* 12/31/14* 12/31/13
-----------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 14.08 $ 14.56 $ 14.44 $ 13.21 $ 14.52
-----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.44(a) $ 0.44(a) $ 0.48(a) $ 0.46 $ 0.68
Net realized and unrealized gain (loss) on investments 0.51 (0.46) 0.21 1.35 (1.41)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.95 $ (0.02) $ 0.69 $ 1.81 $ (0.73)
-----------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (O.43) $ (0.46) $ (0.57) $ (0.58) $ (0.58)
-----------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.43) $ (0.46) $ (0.57) $ (0.58) $ (0.58)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.52 $ (0.48) $ 0.12 $ 1.23 $ (1.31)
-----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.60 $ 14.08 $ 14.56 $ 14.44 $ 13.21
=============================================================================================================================
Total return (b) 6.84% (0.25)% 4.86% 13.86%(c) (5.10)%
Ratio of net expenses to average net assets (d) 0.55% 0.55% 0.55% 0.56% 0.55%
Ratio of net investment income (loss) to average net assets 3.04% 2.98% 3.34% 3.70% 4.41%
Portfolio turnover rate 20% 18% 21% 29% 15%
Net assets, end of period (in thousands) $636,889 $374,674 $276,778 $97,387 $57,739
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.63% 0.64% 0.64% 0.65% 0.67%
Net investment income (loss) to average net assets 2.96% 2.89% 3.25% 3.61% 4.29%
=============================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
(c) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended December 31, 2014, the total return would
have been 13.78%.
(d) Includes interest expense of 0.00%, 0.00%, 0.00%, 0.01% and 0.00%,
respectively.
The accompanying notes are an integral part of these financial statements.
38 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
Notes to Financial Statements | 12/31/17
1. Organization and Significant Accounting Policies
Pioneer AMT-Free Municipal Fund (the "Fund") is one of two series comprising
Pioneer Series Trust II (the "Trust"), a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is to seek a
high level of current income exempt from federal income tax as is consistent
with the relative stability of capital.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. 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.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world. Amundi, one of the world's
largest asset managers, is headquartered in Paris, France. As a result of the
transaction, Pioneer Investment Management, Inc., the Fund's investment adviser,
became an indirect wholly owned subsidiary of Amundi and Amundi's wholly owned
subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer Investments was
owned by Pioneer Global Asset Management S.p.A., a wholly owned subsidiary of
UniCredit S.p.A.
In connection with the transaction, the names of the Fund's investment adviser
and principal underwriter changed. Effective July 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc.
(the "Adviser") and the name of Pioneer Funds Distributor, Inc. changed to
Amundi Pioneer Distributor, Inc. (the "Distributor").
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 39
In October 2016, the Securities and Exchange Commission ("SEC") released its
Final Rule on Investment Company Reporting Modernization. In addition to
introducing two new regulatory reporting forms (Form N-PORT and Form N-CEN), the
Final Rule amends Regulation S-X, which impacts financial statements
presentation, particularly related to the presentation of derivative
investments. The Fund's financial statements were prepared in compliance with
the amendments to Regulation S-X.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles ("U.S. GAAP") that require the
management of the Fund to make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the reporting
period. Actual results could differ from those estimates.
The Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements:
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the New
York Stock Exchange ("NYSE") is open, as of the close of regular trading on
the NYSE.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such Fund's net asset value. Repurchase
agreements are valued at par. Cash may include overnight time deposits at
approved financial institutions.
Securities for which independent pricing services or broker-dealers are
unable to supply prices or for which market prices and/or quotations are
not readily available or are considered to be unreliable are valued by a
fair
40 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
valuation team comprised of certain personnel of the Adviser pursuant to
procedures adopted by the Fund's Board of Trustees. The Adviser's fair
valuation team uses fair value methods approved by the Valuation Committee
of the Board of Trustees. The Advisor's fair valuation team is responsible
for monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
At December 31, 2017, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services, broker-dealer or using third party insurance industry pricing
model).
B. Investment Income and Transactions
Discount and premium on purchase prices of debt securities are accreted or
amortized, respectively, daily into interest income on a yield-to-maturity
basis over the life of the respective security with a corresponding
increase or decrease in the cost basis of the security.
Interest income, including interest on income-bearing cash accounts, is
recorded on the accrual basis. Interest and dividend income payable by
delivery of additional shares is reclassified as PIK (payment-in-kind)
income upon receipt and is included in interest and dividend income,
respectively.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no provision for federal income taxes is
required. As of December 31, 2017, the Fund did not accrue any interest or
penalties with respect to uncertain tax positions, which, if applicable,
would be
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 41
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. GAAP. 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 December 31, 2017, the Fund
reclassified $54,517 to decrease undistributed net investment income,
$13,555,714 to decrease accumulated net realized loss on investments, and
$13,501,197 to decrease paid-in capital to reflect permanent book/tax
differences. These adjustments have no impact on net assets or the result
of operations.
At December 31, 2017, the Fund was permitted to carry forward indefinitely
$2,039,291 of short-term losses under the Regulated Investment Company
Modernization Act of 2010 without limitation.
The tax character of distributions paid during the fiscal years ended
December 31, 2017 and December 31, 2016 were as follows:
---------------------------------------------------------------------------
2017 2016
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 307,400 $ 518,825
Tax-exempt income 35,476,521 33,852,442
---------------------------------------------------------------------------
Total $35,783,921 $34,371,267
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at December 31, 2017:
---------------------------------------------------------------------------
2017
---------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 2,259,938
Capital loss carryforward (2,039,291)
Net unrealized appreciation 58,706,711
---------------------------------------------------------------------------
Total $58,927,358
===========================================================================
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax treatment of premium and amortization, and tax
adjustments on defaulted bonds.
42 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
D. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Distributor earned $26,909 in underwriting commissions on the sale of Class
A shares during the year ended December 31, 2017.
E. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the Fund's transfer agent for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
F. Risks
The value of securities held by the fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
change in interest rates, lack of liquidity in the bond markets or adverse
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
Interest rates in the U.S. recently have been historically low, so the Fund
faces a heightened risk that interest rates may rise. A general rise in
interest rates may cause investors to move out of fixed-income securities
on a large scale, could also result in increased redemptions from the Fund.
The municipal bond market can be susceptible to unusual volatility,
particularly for lower-rated and unrated securities. Liquidity can be
reduced unpredictably in response to overall economic conditions or credit
tightening. Municipal issuers may be adversely affected by rising health
care costs, increasing unfunded pension liabilities, and by the phasing out
of
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 43
federal programs providing financial support. Unfavorable conditions and
developments relating to projects financed with municipal securities can
result in lower revenues to issuers of municipal securities, potentially
resulting in defaults. Issuers often depend on revenues from these projects
to make principal and interest payments. The value of municipal securities
can also be adversely affected by changes in the financial condition of one
or more individual municipal issuers or insurers of municipal issuers,
regulatory and political developments, tax law changes or other legislative
actions, and by uncertainties and public perceptions concerning these and
other factors. Municipal securities may be more susceptible to downgrades
or defaults during recessions or similar periods of economic stress. In
recent periods, an increasing number of municipal issuers in the United
States have defaulted on obligations and commenced insolvency proceedings.
Financial difficulties of municipal issuers may continue or get worse. To
the extent the Fund invests significantly in a single state, including
California, Massachusetts and Texas, or in securities the payments on which
are dependent upon a single project or source of revenues, or that relate
to a sector or industry, including health care facilities, education,
transportation, special revenues and pollution control, the Fund will be
more susceptible to associated risks and developments.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's prospectus
contains unaudited information regarding the Fund's principal risks. Please
refer to that document when considering the Fund's principal risks.
2. Management Agreement
The Adviser manages the Fund's portfolio. Management fees are calculated daily
at the annual rate of 0.50% of the Fund's average daily net assets up to $250
million; 0.45% of the next $500 million of the Fund's average daily net assets;
and 0.40% of the Fund's average daily net assets over $750 million. For the year
ended December 31, 2017, the effective management fee (excluding waivers and/or
assumption of expenses) was equivalent to 0.44% of the Fund's average daily net
assets.
The Adviser has contractually agreed to limit ordinary operating expenses of the
Fund to the extent required to reduce Fund expenses to 0.82% and 0.55% of the
average daily net assets attributable to Class A and Class Y shares,
respectively. Fees waived and expenses reimbursed during the year ended December
31, 2017 are reflected in the Statement of Operations. These expense limitations
are in effect through May 1, 2019 for Class A and Class Y shares. There can be
no assurance that the Adviser will extend the expense limit agreement for a
class of shares beyond the date referred to above.
44 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
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
$82,384 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at December 31, 2017.
3. Transfer Agent
DST Asset Manager Solutions, Inc. serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings and outgoing phone calls. For the year
ended December 31, 2017, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------------
Shareowner Communications:
--------------------------------------------------------------------------------
Class A $44,566
Class C 2,088
Class Y 13,758
--------------------------------------------------------------------------------
Total $60,412
================================================================================
4. Distribution Plan
The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A and Class C
shares. Pursuant to the Plan, the Fund pays the Distributor 0.25% of the average
daily net assets attributable to Class A shares as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class A shares. Pursuant to the Plan, the Fund also pays the
Distributor 1.00% of the average daily net assets attributable to Class C
shares. The fee for Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class C shares.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $29,161 in distribution fees payable to the Distributor, at
December 31, 2017.
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
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 45
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 CDSC are paid to the
Distributor. For the year ended December 31, 2017, CDSCs in the amount of
$129,111 were paid to the Distributor.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
"Funds"), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in which the Fund participated until February 9, 2016 was in the
amount of $240 million. The credit facility in which the Fund participated until
February 7, 2017, was in the amount of $220 million. Effective February 8, 2017,
the Fund participates in a facility that is in the amount of $195 million. Under
such facility, depending on the type of loan, interest on borrowings is payable
at the London Interbank Offered Rate ("LIBOR") plus 0.85% on an annualized
basis, or the Alternate Base Rate, which is the greater of (a) the facility's
administrative agent's daily announced prime rate on the borrowing date, (b) 2%
plus the Federal Funds Rate on the borrowing date or (c) 2% plus the overnight
Eurodollar rate on the borrowing date. The Funds pay an annual commitment fee to
participate in a credit facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the year ended December 31, 2017, the Fund had no borrowings
under the credit facility.
46 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust II and the Shareholders of
Pioneer AMT-Free Municipal Fund:
--------------------------------------------------------------------------------
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Pioneer
AMT-Free Municipal Fund (the "Fund") (one of the funds constituting Pioneer
Series Trust II (the "Trust")), including the schedule of investments, as of
December 31, 2017, and the related statements of operations, changes in net
assets and the financial highlights for the year then ended and the related
notes, and the financial highlights for the year ended December 31, 2013
(collectively referred to as the "financial statements"). The statement of
changes in net assets for the year ended December 31, 2016 and the financial
highlights for the periods ended December 31, 2014, December 31, 2015 and
December 31, 2016 were audited by another independent registered public
accounting firm whose report, dated February 22, 2017, expressed an unqualified
opinion on the statement of changes in net assets and those financial
highlights. In our opinion, the financial statements present fairly, in all
material respects, the financial position of Pioneer AMT-Free Municipal Fund
(one of the funds constituting Pioneer Series Trust II) at December 31, 2017,
the results of its operations, the changes in its net assets, and the financial
highlights for the year ended and the financial highlights for the year ended
December 31, 2013, in conformity with U.S. generally accepted accounting
principles.
Basis for Opinion
These financial statements are the responsibility of the Trust's management. Our
responsibility is to express an opinion on the Fund's financial statements based
on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required to
be independent with respect to the Trust in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Trust is not required to have,
nor were we engaged to perform, an audit of the Trust's internal control over
financial reporting. As part of our audits, we are
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 47
required to obtain an understanding of internal control over financial
reporting, but not for the purpose of expressing an opinion on the effectiveness
of the Trust's internal control over financial reporting. Accordingly, we
express no such opinion.
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of December 31, 2017, by correspondence with the custodian and brokers
or by other appropriate auditing procedures where replies from brokers were not
received. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.
/s/ Ernst & Young LLP
Boston, Massachusetts
We have served as the Trust's auditor since 2017.
February 22, 2018
48 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
ADDITIONAL INFORMATION (unaudited)
Qualified interest income is exempt from nonresident alien (NRA) tax
withholding. The percentage of the Fund's ordinary income distributions derived
from qualified interest income was 100.00%.
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the "Adviser"), the
Fund's investment adviser, was an indirect, wholly owned subsidiary of UniCredit
S.p.A. ("UniCredit"). On that date, UniCredit completed the sale of its Pioneer
Investments business, which includes the Adviser, to Amundi (the "Transaction").
As a result of the Transaction, the Adviser became an indirect, wholly owned
subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A. Amundi is
headquartered in Paris, France, and, as of September 30, 2016, had more than
$1.1 trillion in assets under management worldwide.
Deloitte & Touche LLP ("D&T"), the Fund's previous independent registered public
accounting firm, informed the Audit Committee and the Board that it would no
longer be independent with respect to the Fund upon the completion of the
Transaction as a result of certain services being provided to Amundi and Credit
Agricole, and, accordingly, that it intended to resign as the Fund's independent
registered public accounting firm upon the completion of the Transaction. D&T's
resignation was effective on July 3, 2017, when the Transaction was completed.
During the periods as to which D&T has served as the Fund's independent
registered public accounting firm, including the Fund's two most recent fiscal
years, D&T's reports on the Fund's financial statements have not contained an
adverse opinion or disclaimer of opinion and have not been qualified or modified
as to uncertainty, audit scope or accounting principles. Further, there have
been no disagreements with D&T on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or procedure,
which, if not resolved to the satisfaction of D&T, would have caused D&T to make
reference to the subject matter of the disagreement in connection with its
report on the financial statements. In addition, there have been no reportable
events of the kind described in Item 304(a)(1)(v) of Regulation S-K under the
Securities Exchange Act of 1934.
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
a new independent registered public accounting firm, Ernst & Young LLP ("EY"),
for the Fund's fiscal year ended December 31, 2017.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 49
Prior to its engagement, EY had advised the Fund's Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be inconsistent with
the auditor independence rules set forth by the Securities and Exchange
Commission ("SEC"): (a) project management support services to UniCredit in the
Czech Republic, Germany, Italy, Serbia and Slovenia in relation to twenty-two
projects, that were determined to be inconsistent with Rule 2-01(c)(4)(vi) of
Regulation S-X (management functions); (b) two engagements for UniCredit in
Italy where fees were contingent/success based and that were determined to be
inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent fees); (c) four
engagements where legal and expert services were provided to UniCredit in the
Czech Republic and Germany, and twenty engagements where the legal advisory
services were provided to UniCredit in Austria, Czech Republic, Italy and
Poland, that were determined to be inconsistent with Rule 2-01(c)(4)(ix) and (x)
of Regulation S-X (legal and expert services); and (d) two engagements for
UniCredit in Italy involving assistance in the sale of certain assets, that were
determined to be inconsistent with Rule 2-01(c)(4)(viii) of Regulation S-X
(broker-dealer, investment adviser or investment banking services). None of the
foregoing services involved the Fund, any of the other funds in the Pioneer
Family of Funds or any other Pioneer entity sold by UniCredit in the
Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Fund under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of the Fund, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
50 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
Trustees, Officers and Service Providers
Investment Adviser
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
DST Asset Manager Solutions, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended July 31 is publicly available to shareowners
at www.amundipioneer.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 and other directorships they have held during at least the past five
years. Trustees who are interested persons of the Fund within the meaning of the
1940 Act are referred to as Interested Trustees. Trustees who are not interested
persons of the Fund are referred to as Independent Trustees. Each of the
Trustees serves as a Trustee of each of the 44 U.S. registered investment
portfolios for which Amundi Pioneer serves as investment adviser (the "Pioneer
Funds"). The address for all Trustees and all officers of the Fund is 60 State
Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 51
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 (67) Trustee since 2006. Private investor (2004 - 2008 and 2013 Director, Broadridge Financial
Chairman of the Board Serves until a - present); Chairman (2008 - 2013) and Solutions, Inc. (investor
and Trustee successor trustee is Chief Executive Officer (2008 - 2012), communications and securities
elected or earlier Quadriserv, Inc. (technology products processing provider for financial
retirement or for securities lending industry); and services industry) (2009 -
removal. Senior Executive Vice President, The present); Director, Quadriserv,
Bank of New York (financial and Inc. (2005 - 2013); and
securities services) (1986 - 2004) Commissioner, New Jersey State
Civil Service Commission (2011 -
2015)
---------------------------------------------------------------------------------------------------------------------------------
David R. Bock (74) Trustee since 2005. Managing Partner, Federal City Capital Director of New York Mortgage
Trustee Serves until a Advisors (corporate advisory services Trust (publicly-traded mortgage
successor trustee is company) (1997 - 2004 and 2008 - REIT) (2004 - 2009, 2012 -
elected or earlier present); Interim Chief Executive present); Director of The Swiss
retirement or Officer, Oxford Analytica, Inc. Helvetia Fund, Inc. (closed-end
removal. (privately held research and consulting fund) (2010 - present); Director
company) (2010); Executive Vice of Oxford Analytica, Inc. (2008
President and Chief Financial Officer, - present); and Director of
I-trax, Inc. (publicly traded health Enterprise Community Investment,
care services company) (2004 - 2007); Inc. (privately-held affordable
and Executive Vice President and Chief housing finance company) (1985 -
Financial Officer, Pedestal Inc. 2010)
(internet-based mortgage trading
company) (2000 - 2002); Private
Consultant (1995 - 1997); Managing
Director, Lehman Brothers (1992 -
1995); Executive, The World Bank (1979
- 1992)
---------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (73) Trustee since 2008. William Joseph Maier Professor of Trustee, Mellon Institutional
Trustee Serves until a Political Economy, Harvard University Funds Investment Trust and
successor trustee is (1972 - present) Mellon Institutional Funds
elected or earlier Master Portfolio (oversaw 17
retirement or portfolios in fund complex)
removal. (1989 - 2008)
---------------------------------------------------------------------------------------------------------------------------------
52 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
---------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (70) Trustee since 2004. Founding Director, Vice-President and None
Trustee Serves until a Corporate Secretary, The Winthrop
successor trustee is Group, Inc. (consulting firm) (1982 -
elected or earlier present); Desautels Faculty of
retirement or removal. Management, McGill University (1999 -
present); and Manager of Research
Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
---------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (61) Trustee since 2017. Chief Investment Officer, 1199 SEIU None
Trustee (Advisory Trustee from Funds (healthcare workers union
2014 - 2017) Serves pension funds) (2001 - present); Vice
until a successor President - International Investments
trustee is elected or Group, American International Group,
earlier retirement or Inc. (insurance company) (1993 -
removal. 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);
Mortgage Strategies Group, Drexel
Burnham Lambert, Ltd. (investment
bank) (1986 - 1987)
---------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (69) Trustee since 2004. President and Chief Executive Officer, Director of New America High
Trustee Serves until a Newbury Piret Company (investment Income Fund, Inc. (closed-end
successor trustee is banking firm) (1981 - present) investment company) (2004 -
elected or earlier present); and Member, Board of
retirement or removal. Governors, Investment Company
Institute (2000 - 2006)
---------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (70) Trustee since 2014. Consultant (investment company None
Trustee Serves until a services) (2012 - present); Executive
successor trustee is Vice President, BNY Mellon (financial
elected or earlier and investment company services) (1969
retirement or removal. - 2012); Director, BNY International
Financing Corp. (financial services)
(2002 - 2012); Director, Mellon
Overseas Investment Corp. (financial
services) (2009 - 2012)
---------------------------------------------------------------------------------------------------------------------------------
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 53
Interested Trustees
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
---------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (55)* Trustee since 2017. Chair, Director, CEO and President of None
Trustee, President and Chief Serves until a Amundi Pioneer Asset Management USA,
Executive Officer successor trustee is Inc. (since September 2014); Chair,
elected or earlier Director and CEO of Amundi Pioneer
retirement or removal Asset Management, Inc. (since
September 2014); Chair, Director and
CEO of Amundi Pioneer Distributor,
Inc. (since September 2014); Chair,
Director, CEO and President of Amundi
Pioneer Institutional Asset
Management, Inc. (since September
2014); Managing Director, Morgan
Stanley Investment Management (2010 -
2013); Director of Institutional
Business, CEO of International, Eaton
Vance Management (2005 - 2010)
---------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (59)* Trustee since 2014. Director and Executive Vice President None
Trustee Serves until a (since 2008) and Chief Investment
successor trustee is Officer, U.S. (since 2010) of Amundi
elected or earlier Pioneer Asset Management USA, Inc.;
retirement or removal Executive Vice President and Chief
Investment Officer, U.S. of Amundi
Pioneer (since 2008); Executive Vice
President of Amundi Pioneer
Institutional Asset Management, Inc.
(since 2009); Portfolio Manager of
Amundi Pioneer (since 1999)
---------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers
or directors of the fund's investment adviser and certain of its
affiliates.
54 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
Fund Officers
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
---------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (53) Since 2004. Serves at Vice President and Associate General None
Secretary and Chief Legal the discretion of the Counsel of Amundi Pioneer since
Officer Board January 2008; Secretary and Chief
Legal Officer of all of the Pioneer
Funds since June 2010; Assistant
Secretary of all of the Pioneer Funds
from September 2003 to May 2010; Vice
President and Senior Counsel of Amundi
Pioneer from July 2002 to December
2007
---------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (56) Since 2010. Serves at Fund Governance Director of Amundi None
Assistant Secretary the discretion of the Pioneer since December 2006 and
Board Assistant Secretary of all the Pioneer
Funds since June 2010; Manager - Fund
Governance of Amundi Pioneer from
December 2003 to November 2006; and
Senior Paralegal of Amundi Pioneer
from January 2000 to November 2003
---------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (55) Since 2010. Serves at Senior Counsel of Amundi Pioneer since None
Assistant Secretary the discretion of the May 2013 and Assistant Secretary of
Board all the Pioneer Funds since June 2010;
Counsel of Amundi Pioneer from June
2007 to May 2013
---------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (58) Since 2008. Serves at Vice President - Fund Treasury of None
Treasurer and Chief Financial the discretion of the Amundi Pioneer; Treasurer of all of
and Accounting Officer Board the Pioneer Funds since March 2008;
Deputy Treasurer of Amundi Pioneer
from March 2004 to February 2008; and
Assistant Treasurer of all of the
Pioneer Funds from March 2004 to
February 2008
---------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (52) Since 2004. Serves at Director - Fund Treasury of Amundi None
Assistant Treasurer the discretion of the Pioneer; and Assistant Treasurer of
Board all of the Pioneer Funds
---------------------------------------------------------------------------------------------------------------------------------
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 55
Fund Officers (continued)
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
---------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (59) Since 2004. Serves at Fund Accounting Manager - Fund None
Assistant Treasurer the discretion of the Treasury of Amundi Pioneer; and
Board Assistant Treasurer of all of the
Pioneer Funds
---------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (38) Since 2009. Serves at Fund Administration Manager - Fund None
Assistant Treasurer the discretion of the Treasury of Amundi Pioneer since
Board November 2008; Assistant Treasurer of
all of the Pioneer Funds since January
2009; Client Service Manager -
Institutional Investor Services at
State Street Bank from March 2003 to
March 2007
---------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (65) Since 2010. Serves at Chief Compliance Officer of Amundi None
Chief Compliance Officer the discretion of the Pioneer and of all the Pioneer Funds
Board since March 2010; Chief Compliance
Officer of Amundi 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 Amundi Pioneer since
October 2005; Senior Compliance
Officer for Columbia Management
Advisers, Inc. from October 2003 to
October 2005
---------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (46) Since 2006. Serves at Director - Transfer Agency Compliance None
Anti-Money Laundering Officer the discretion of the of Amundi Pioneer and Anti-Money
Board Laundering Officer of all the Pioneer
Funds since 2006
---------------------------------------------------------------------------------------------------------------------------------
56 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
This page is for your notes.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 57
This page is for your notes.
58 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
This page is for your notes.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17 59
This page is for your notes.
60 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/17
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
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:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address us.askamundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com
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] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2018 Amundi Pioneer Asset Management 18644-12-0218
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
The audit fees for the Trust were $38,500
payable to Ernst & Young LLP for the year ended
December 31, 2017 and $40,362 payable to Deloitte & Touche LLP
for the year ended December 31, 2016.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
There were no audit-related services in 2017 or 2016.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
The tax fees for the Trust were $8,028
payable to Ernst & Young LLP for the year ended
December 31, 2017 and $5,628 payable to Deloitte & Touche LLP
for the year ended December 31, 2016.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
There were no other fees in 2017 or 2016.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Amudi Pioneer Asset Management, Inc, the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Trust's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Trust. For the
years ended December 31 2017 and 2016, there were no
services provided to an affiliate that required the
Trust's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Trust were $8,028
payable to Ernst & Young LLP for the year ended
December 31, 2017 and $5,628 payable to Deloitte & Touche LLP
for the year ended December 31, 2016.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
Item 12. Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies.
(a) If the registrant is a closed-end management investment company,
provide the following dollar amounts of income and compensation related
to the securities lending activities of the registrant during its most
recent fiscal year:
N/A
(1) Gross income from securities lending activities;
N/A
(2) All fees and/or compensation for each of the following securities
lending activities and related services: any share of revenue generated
by the securities lending program paid to the securities lending agent(s)
(revenue split); fees paid for cash collateral management services
(including fees deducted from a pooled cash collateral reinvestment
vehicle) that are not included in the revenue split; administrative
fees that are not included in the revenue split; fees for
indemnification that are not included in the revenue split; rebates
paid to borrowers; and any other fees relating to the securities lending
program that are not included in the revenue split, including a description
of those other fees;
N/A
(3) The aggregate fees/compensation disclosed pursuant to paragraph (2); and
N/A
(4) Net income from securities lending activities (i.e., the dollar amount in
paragraph (1) minus the dollar amount in paragraph (3)).
If a fee for a service is included in the revenue split, state that the fee
is included in the revenue split.
N/A
(b) If the registrant is a closed-end management investment company, describe
the services provided to the registrant by the securities lending agent in
the registrants most recent fiscal year.
N/A
ITEM 13. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust II
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date February 27, 2018
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date February 27, 2018
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date February 27, 2018
* Print the name and title of each signing officer under his or her signature.