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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05516
Pioneer America Income Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: December 31
Date of reporting period: January 1, 2003 through December 31, 2003
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
IONEER
-------
AMERICA
INCOME
TRUST
Annual
Report
12/31/03
[PIONEER
Investments(R) Logo]
Table of Contents
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Letter to Shareowners 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 7
Schedule of Investments 10
Financial Statements 13
Notes to Financial Statements 21
Report of Independent Auditors 27
The Pioneer Family of Mutual Funds 28
Trustees, Officers and Service Providers 29
Retirement Plans from Pioneer 36
Pioneer America Income Trust
- --------------------------------------------------------------------------------
LETTER TO SHAREOWNERS 12/31/03
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
The nation's stock markets snapped back dramatically last year, following a
prolonged period of weakness. As it became clear that the war would not be a
long-term economic burden and that the U.S. economy was expanding at a
convincing pace, investors left safer havens like Treasury securities to seek
better returns elsewhere. The result was a powerful uptrend that began in March
and was intact at year-end.
Led by smaller-capitalization issues, stocks of all sizes across a range of
industries shared in the broad-based rally that saw major market indices rise
for the first time since 1999. Technology issues were the biggest
beneficiaries, as positive economic data suggested that increased capital
outlays were imminent. Corporate bonds also recorded strong returns, with the
sharpest gains coming in lower quality bonds whose issuers rely on economic
growth to expand earnings. Overseas, emerging market equities were standout
performers as bonds and stocks advanced in many global markets, thanks in part
to currency gains versus the sagging U.S. dollar.
Here at home, strong economic stimulants, including lower taxes and
historically low interest rates, had the desired effect, with domestic GDP
growth coming in at 8.2% in the third quarter. A striking increase in worker
productivity provided a boost to corporate profits and manufacturing activity
rose broadly. But the failure of the economy to consistently create jobs
remained a troublesome concern as the new year began.
Markets may segment
Last year's across-the-board strength is unusual and unlikely to continue for
long. Eventually, the markets should revert to historic form, favoring some
sectors and shunning others, depending on the prospects for each industry or
investment type. Under those more typical conditions, deciding which
investments to own more of, or where to cut exposure, can be challenging.
Fortunately, it's also an area in which the guidance of an experienced
investment professional can be most valuable.
A few words on fund industry developments
You may have read or seen media reports alleging failure by some mutual fund
companies to comply with various industry rules or internal policies relating
to excessive trading and late trading of mutual fund shares. We recognize and
share with the investing public and our industry the concerns raised by these
matters. The prospectuses for the Pioneer Funds describe the funds' policies
regarding excessive trading and the time by which orders for fund shares must
be placed to receive that day's price. Pioneer's internal procedures are
designed to detect activities that are inconsistent with these policies.
Respectfully,
/s/ Osbert M. Hood
Osbert M. Hood
President
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
1
Pioneer America Income Trust
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PORTFOLIO SUMMARY 12/31/03
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Government Agency Obligations 74.6%
U.S. Treasury Obligations 23.5%
Temporary Cash Investments 1.9%
Portfolio Maturity
- --------------------------------------------------------------------------------
(Effective life as a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
0-1 Year 0.6%
1-3 Years 63.2%
3-4 Years 17.0%
4-6 Years 8.8%
8+ Years 10.4%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of debt holdings)
- --------------------------------------------------------------------------------
1. U.S. Treasury Notes, 6.5%, 2/15/10 8.31%
- --------------------------------------------------------------------------------
2. U.S. Treasury Bonds, 7.25%, 5/15/16 7.28
- --------------------------------------------------------------------------------
3. Government National Mortgage Association, 5.5%, 4/15/33 3.24
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4. U.S. Treasury Notes, 6.375%, 8/15/27 3.10
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5. U.S. Treasury Notes, 5.625%, 5/15/08 2.65
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6. Government National Mortgage Association, 6.0%, 11/15/32 2.11
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7. Government National Mortgage Association, 5.5%, 7/15/33 2.03
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8. Government National Mortgage Association, 5.5%, 5/15/33 1.88
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9. Government National Mortgage Association II, 6.0%, 3/20/33 1.70
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10. Government National Mortgage Association, 6.5%, 9/15/32 1.54
- --------------------------------------------------------------------------------
This list excludes money market and derivatives instruments. Portfolio holdings
will vary for other periods.
2
Pioneer America Income Trust
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PERFORMANCE UPDATE 12/31/03 CLASS A SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value per Share 12/31/03 12/31/02
$9.95 $10.27
Net
Distributions per Share Investment Short-Term Long-Term
(1/1/03 - 12/31/03) Income Capital Gains Capital Gains
$0.468 $ -- $ --
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust at public offering price,
compared to that of the Lehman Brothers Government Bond Index and of the Lehman
Brothers Fixed-Rate Mortgage-Backed Securities Index.
- ---------------------------------------
Average Annual Total Returns
(As of December 31, 2003)
Net Asset Public Offering
Period Value Price*
10 Years 5.52% 5.04%
5 Years 5.11 4.14
1 Year 1.47 -3.06
- ---------------------------------------
* Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer America Lehman Brothers Fixed-Rate Lehman Brothers
Income Trust* Mortgage-Backed Securities Index Government Bond Index
12/93 9550 10000 10000
9174 9839 9662
12/95 10648 11492 11434
10892 12108 11750
12/97 11819 13256 12875
12738 14179 14144
12/99 12416 14442 13826
13854 16054 15658
12/01 14674 17374 16791
16108 18893 18722
12/03 16345 19469 19167
Prior to May 1, 2003, the Trust's investment adviser, Pioneer Investment
Management, Inc., reduced its management fee and certain other expenses,
otherwise, returns would have been lower. Expense limitation for the Trust's
Class A shares applies proportionately to Class B, C and R shares.
The Lehman Brothers Government Bond Index is an unmanaged measure of the
performance of U.S. Treasury debt, all publicly issued debt of U.S. government
agencies and quasi-federal corporations, and corporate debt guaranteed by the
U.S. government. The Lehman Brothers Fixed-Rate Mortgage-Backed Securities
Index is an unmanaged index including 15- and 30-year fixed rate securities
backed by mortgage pools of the Government National Mortgage Association
(GNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Federal National
Mortgage Association (FNMA). Index returns assume reinvestment of dividends
and, unlike Trust returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in the Indexes.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Trust distributions or the redemption of Trust shares.
Past performance does not guarantee future results. Returns and principal value
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
3
Pioneer America Income Trust
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PERFORMANCE UPDATE 12/31/03 CLASS B SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
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Net Asset Value per Share 12/31/03 12/31/02
$9.89 $10.20
Net
Distributions per Share Investment Short-Term Long-Term
(1/1/03 - 12/31/03) Income Capital Gains Capital Gains
$0.379 $ -- $ --
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust, compared to that of the Lehman
Brothers Government Bond Index and of the Lehman Brothers Fixed-Rate
Mortgage-Backed Securities Index.
- ----------------------------------------
Average Annual Total Returns
(As of December 31, 2003)
If If
Period Held Redeemed*
Life-of-Class
(4/29/94) 5.31% 5.31%
5 Years 4.26 4.09
1 Year 0.69 -3.19
- ----------------------------------------
* Reflects deduction of the maximum applicable contingent deferred sales
charge (CDSC) at the end of the period and assumes reinvestment of
distributions. The maximum CDSC of 4% declines over six years.
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer America Lehman Brothers Fixed-Rate Lehman Brothers
Income Trust* Mortgage-Backed Securities Index Government Bond Index
4/94 10000 10000 10000
9943 10149 10041
12/95 11442 11853 11883
11624 12488 12211
12/97 12508 13673 13381
13394 14625 14699
12/99 12960 14896 14369
14344 16559 16272
12/01 15060 17920 17450
16388 19487 19457
12/03 16501 20081 19919
Prior to May 1, 2003, the Trust's investment adviser, Pioneer Investment
Management, Inc., reduced its management fee and certain other expenses,
otherwise, returns would have been lower. Expense limitation for the Trust's
Class A shares applies proportionately to Class B, C and R shares.
+ Index comparisons begin 4/30/94. The Lehman Brothers Government Bond Index is
an unmanaged measure of the performance of U.S. Treasury debt, all publicly
issued debt of U.S. government agencies and quasi-federal corporations, and
corporate debt guaranteed by the U.S. government. The Lehman Brothers
Fixed-Rate Mortgage-Backed Securities Index is an unmanaged index including
15- and 30-year fixed rate securities backed by mortgage pools of the
Government National Mortgage Association (GNMA), Federal Home Loan Mortgage
Corporation (FHLMC) and Federal National Mortgage Association (FNMA). Index
returns assume reinvestment of dividends and, unlike Trust returns, do not
reflect any fees, expenses or sales charges. You cannot invest directly in the
Indexes.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Trust distributions or the redemption of Trust shares.
Past performance does not guarantee future results. Returns and principal
value fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost.
4
Pioneer America Income Trust
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PERFORMANCE UPDATE 12/31/03 CLASS C SHARES
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Share Prices and Distributions
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Net Asset Value per Share 12/31/03 12/31/02
$9.92 $10.24
Net
Distributions per Share Investment Short-Term Long-Term
(1/1/03 - 12/31/03) Income Capital Gains Capital Gains
$0.3957 $ -- $ --
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust at public offering price,
compared to that of the Lehman Brothers Government Bond Index and of the Lehman
Brothers Fixed-Rate Mortgage-Backed Securities Index.
- ---------------------------------------------
Average Annual Total Returns
(As of December 31, 2003)
Net Asset Public Offering
Period Value Price/CDSC*
Life-of-Class
(1/31/96) 4.70% 4.57%
5 Years 4.29 4.08
1 Year 0.75 -0.22
- ---------------------------------------------
* Reflects deduction of the 1% sales charge at the beginning of the period
and assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to investments made within one year of purchase.
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer America Lehman Brothers Fixed-Rate Lehman Brothers
Income Trust* Mortgage-Backed Securities Index Government Bond Index
01/96 9900 10000 10000
10005 10457 10214
12/97 10784 11449 11192
11549 12247 12295
12/99 11181 12473 12019
12357 13866 13611
12/01 12981 15006 14596
14140 16317 16274
12/03 14246 16815 16660
Prior to May 1, 2003, the Trust's investment adviser, Pioneer Investment
Management, Inc., reduced its management fee and certain other expenses,
otherwise, returns would have been lower. Expense limitation for the Trust's
Class A shares applies proportionately to Class B, C and R shares.
The Lehman Brothers Government Bond Index is an unmanaged measure of the
performance of U.S. Treasury debt, all publicly issued debt of U.S. government
agencies and quasi-federal corporations, and corporate debt guaranteed by the
U.S. government. The Lehman Brothers Fixed-Rate Mortgage-Backed Securities
Index is an unmanaged index including 15- and 30-year fixed rate securities
backed by mortgage pools of the Government National Mortgage Association
(GNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Federal National
Mortgage Association (FNMA). Index returns assume reinvestment of dividends
and, unlike Trust returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in the Indexes.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Trust distributions or the redemption of Trust shares.
Past performance does not guarantee future results. Returns and principal value
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
5
Pioneer America Income Trust
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PERFORMANCE UPDATE 12/31/03 CLASS R SHARES
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Share Prices and Distributions
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Net Asset Value per Share 12/31/03 4/1/03***
$10.07 $10.31
Net
Distributions per Share Investment Short-Term Long-Term
(4/1/03 - 12/31/03) Income Capital Gains Capital Gains
$0.3236 $ -- $ --
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust at public offering price,
compared to that of the Lehman Brothers Government Bond Index and of the Lehman
Brothers Fixed-Rate Mortgage-Backed Securities Index.
- -----------------------------------------
Average Annual Total Returns+
(As of December 31, 2003)
Net Asset Public Offering
Period Value Price*
10 Years 5.36% 5.36%
5 Years 5.14 5.14
1 Year 1.82 0.83
- -----------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer America Lehman Brothers Fixed-Rate Lehman Brothers
Income Trust* Mortgage-Backed Securities Index Government Bond Index
12/93 10000 10000 10000
9692 9839 9662
12/95 11151 11492 11434
11361 12108 11750
12/97 12156 13256 12875
13112 14179 14144
12/99 12577 14442 13826
14133 16054 15658
12/01 15024 17374 16791
16548 18893 18722
12/03 16849 19469 19167
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of 1% CDSC. Shares sold within 18 months of purchase may
be subject to CDSC.
+ Class R shares have no front-end load, may be subject to a back-end load
and are available to certain retirement plans. The performance of Class R
shares for the period prior to the commencement of operations of Class R
shares on April 1, 2003 is based on the performance of Class A shares,
reduced to reflect the higher distribution and service fees of Class R
shares. You do not pay a sales charge on purchases of Class R shares, but
will pay a CDSC if you sell your shares within 18 months of purchase, unless
you qualify for a waiver.
*** Class R shares were first publicly offered on April 1, 2003.
Prior to May 1, 2003, the Trust's investment adviser, Pioneer Investment
Management, Inc., reduced its management fee and certain other expenses,
otherwise, returns would have been lower. Expense limitation for the Trust's
Class A shares applies proportionately to Class B, C and R shares.
The Lehman Brothers Government Bond Index is an unmanaged measure of the
performance of U.S. Treasury debt, all publicly issued debt of U.S.
government agencies and quasi-federal corporations, and corporate debt
guaranteed by the U.S. government. The Lehman Brothers Fixed-Rate
Mortgage-Backed Securities Index is an unmanaged index including 15- and
30-year fixed rate securities backed by mortgage pools of the Government
National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation
(FHLMC) and Federal National Mortgage Association (FNMA). Index returns
assume reinvestment of dividends and, unlike Trust returns, do not reflect
any fees, expenses or sales charges. You cannot invest directly in the
Indexes.
Past performance does not guarantee future results. Return and principal
value fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost. The performance table and graph do not reflect the
deduction of taxes that a shareowner would pay on Fund distributions or
redemption of Trust shares.
6
Pioneer America Income Trust
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/03
- --------------------------------------------------------------------------------
Investors in government-issued fixed-income securities faced a challenging
investment environment during 2003, as interest rates remained at their lowest
levels in more than 40 years. In this environment Pioneer America Income Trust
was successful in delivering a relatively high level of income to shareholders.
Richard Schlanger, a member of the Pioneer fixed-income team, discusses the
factors that had an impact on the fixed-income market and the Trust during
2003.
Q: How did the Trust perform over the 12 months ended December 31, 2003?
A: For the period, Class A shares of Pioneer America Income Trust produced a
total return of 1.47% at net asset value. In comparison, the Lehman
Brothers Government Bond Index returned 2.36%. The Trust's underweighting
in Treasury securities (versus its benchmark) and its relatively short
duration were primarily responsible for its underperformance relative to
this index. (Expressed in years, duration measures a bond's price
sensitivity to changes in interest rates. A shorter duration is usually
advantageous when interest rates rise; a longer duration benefits a bond
when interest rates decline.) The Lehman Brothers Fixed-Rate
Mortgage-Backed Securities Index returned 3.05%. This index has significant
exposure to securities issued by the Federal Home Loan Mortgage Corporation
(Freddie Mac) and the Federal National Mortgage Association (Fannie Mae).
The Trust had no investments in mortgage securities issued by Freddie Mac
and Fannie Mae; and, as a result, it underperformed the Index. At the end
of the period, the 30-day SEC yield for Class A shares was 3.08%
Q: What was the investment environment like during the period?
A: Early in the period, economic growth was weak, there was uncertainty about
the outcome of the war in Iraq, and investors were concerned about
deflation. A deflationary environment could be negative because, as prices
decline, corporate profits generally fall, causing unemployment to rise and
a weak economy overall. In June 2003, the Federal Reserve trimmed the
federal funds rate to 1.00% to stimulate economic growth, and the yield on
the 10-year Treasury note declined to its lowest level in 45 years. (The
federal funds rate is the rate of interest that commercial banks charge
each other for overnight loans.) The investment environment was
7
Pioneer America Income Trust
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/03 (continued)
- --------------------------------------------------------------------------------
also negatively affected by media headlines raising concerns about the
accounting practices of Freddie Mac and the risk exposure of Fannie Mae.
Around mid-year, the economic backdrop improved. Major military campaigns
in Iraq ended, and the economy appeared to be responding to lower interest
rates, tax cuts and robust consumer spending. There was also an upturn in
corporate capital expenditures for the first time in three years. The more
positive economic environment caused yields on 5-, 10- and 30-year Treasury
securities to rise quickly and significantly and prices to decline. As
year-end approached, the economy continued to recover, and many investors
believed interest rates would rise further. However, the Fed maintained its
accommodative monetary policy of keeping interest rates low. As a result,
Treasury yields declined.
Q: How did you manage the Trust in this environment?
A: At the beginning of the year we had a substantial emphasis of about 79.3%
of net assets in mortgage-backed securities issued by the Government
National Mortgage Association (GNMA). GNMAs are backed by the full faith
and credit of the U.S. government. (A full faith and credit backing applies
to underlying Trust securities, not Trust shares.) Demand for GNMAs was
robust, and supply was low because of the controversies surrounding Freddie
Mac and Fannie Mae. Therefore, GNMAs offered higher yields than Treasury
securities. Our focus on GNMAs allowed us to provide an attractive level of
income while maintaining the highest credit quality of AAA from Standard &
Poor's. (Quality ratings apply to underlying Trust securities, not Trust
shares.)
When interest rates rose in response to a better economic environment, we
reduced the Trust's allocation to mortgages to 72.4% and raised investment
in Treasury securities in the intermediate maturity range of four to ten
years. We maintained the Trust's heavy emphasis on mortgage issues because
Treasury yields were relatively low, and we believed that economic
indicators, such as increased corporate capital spending, rising commodity
prices and the steep yield curve, were signaling the beginning of a
sustained
8
Pioneer America Income Trust
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- --------------------------------------------------------------------------------
economic recovery. (The yield curve shows the relationship between bond
yields and maturity lengths. When the yield curve steepens, or slopes
upward, yields on short-term bonds are lower than yields on long-term
bonds. An upward sloping yield curve, often referred to as a positive yield
curve, demonstrates the more typical relationship between bond yields and
maturity lengths.)
While investing in mortgages in a low interest-rate environment carries
prepayment risk, we believe the boom in mortgage refinancing is over. The
Mortgage Bankers Association expects new mortgage issuance to be down as
much as 50% in 2004. Even if interest rates decline to their lows of 2003,
we believe that most homeowners will not have significant motivation to
refinance their current mortgages.
Q: What is your outlook for the next six months?
A: We believe the economy should continue to improve and expect the Fed to
leave interest rates unchanged at least for the first six months of 2004.
We think yields on Treasury securities will fluctuate in a fairly narrow
range during the first half of 2004 and feel mortgage securities should
outperform Treasuries. The Trust is positioned to take advantage of this
kind of environment. We believe the Trust continues to be appropriate for
investors seeking an AAA-quality investment and relatively high income in a
low-interest rate environment.
Any information in this shareholder report regarding market or economic
trends or the factors influencing the Trust's historical or future
performance are statements of the opinion of Trust management as of the
date of this report. These statements should not be relied upon for any
other purposes. Past performance is no guarantee of future results, and
there is no guarantee that market forecasts discussed will be realized.
9
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/03
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. TREASURY OBLIGATIONS - 23.7%
$14,270,000 U.S. Treasury Bonds, 7.25%, 5/15/16 $ 17,801,268
5,850,000 U.S. Treasury Notes, 5.625%, 5/15/08 6,480,244
2,600,000 U.S. Treasury Notes, 6.25%, 2/15/07 2,898,189
6,525,000 U.S. Treasury Notes, 6.375%, 8/15/27 7,578,174
17,500,000 U.S. Treasury Notes, 6.5%, 2/15/10 20,335,543
3,000,000 U.S. Treasury Notes, 6.625%, 5/15/07 3,395,274
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $58,503,466) $ 58,488,692
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 75.4%
3,000,000 Government National Mortgage Association,
6.0%, TBA 30 YRS $ 3,117,777
3,514,640 Government National Mortgage Association,
5.5%, 6/15/18 - 2/15/33 3,590,136
8,698,821 Government National Mortgage Association,
5.5%, 4/15/33 8,852,682
9,405,373 Government National Mortgage Association,
5.5%, 5/15/33 - 7/15/33 9,571,731
7,427,421 Government National Mortgage Association,
5.5%, 8/15/33 - 10/15/33 7,559,689
5,970,359 Government National Mortgage Association,
6.0%, 1/15/24 - 9/15/32 6,212,604
9,596,597 Government National Mortgage Association,
6.0%, 10/15/32 9,991,024
8,353,062 Government National Mortgage Association,
6.0%, 11/15/32 8,699,191
9,086,598 Government National Mortgage Association,
6.0%, 11/15/32 9,489,575
10,112,818 Government National Mortgage Association,
6.0%, 12/15/32 10,551,224
8,701,750 Government National Mortgage Association,
6.0%, 1/15/33 - 1/20/33 9,062,683
10,338,778 Government National Mortgage Association,
6.0%, 2/15/33 - 3/15/33 10,754,268
6,618,292 Government National Mortgage Association,
6.0%, 4/15/33 - 11/15/33 6,894,301
12,236,808 Government National Mortgage Association,
6.5%, 4/15/17 - 1/15/32 12,211,685
The accompanying notes are an integral part of these financial statements.
10
Pioneer America Income Trust
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- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)
$9,526,293 Government National Mortgage Association,
6.5%, 2/15/32 - 4/15/32 $ 10,043,198
11,200,120 Government National Mortgage Association,
6.5%, 5/15/32 - 8/15/32 11,817,377
7,567,305 Government National Mortgage Association,
6.5%, 9/15/32 - 4/15/33 7,033,063
11,196,092 Government National Mortgage Association,
7.0%, 10/15/16 - 4/15/32 11,956,794
4,573,485 Government National Mortgage Association,
7.5%, 2/15/27 - 11/15/32 4,908,928
122,611 Government National Mortgage Association,
8.5%, 7/15/24 134,999
37,472 Government National Mortgage Association,
9.0%, 9/15/16 - 4/15/20 41,883
188,093 Government National Mortgage Association,
10.0%, 11/15/18 - 3/15/20 211,155
3,358,120 Government National Mortgage Association I,
6.5%, 11/15/31 - 9/15/32 3,541,198
1,233,576 Government National Mortgage Association I,
7.0%, 12/15/30 1,315,377
411,653 Government National Mortgage Association I,
7.5%, 8/15/23 441,692
9,111,614 Government National Mortgage Association II,
6.0%, 7/20/17 - 11/20/33 9,445,569
6,101,305 Government National Mortgage Association II,
6.5%, 8/20/28 - 10/20/32 6,424,724
1,186,766 Government National Mortgage Association II,
7.0% , 12/20/08 - 11/20/32 1,262,479
656,544 Government National Mortgage Association II,
7.5%, 10/20/22 - 12/20/30 702,152
14,860 Government National Mortgage Association II,
8.0%, 5/20/25 - 3/20/30 16,061
307,184 Government National Mortgage Association II,
9.0%, 9/20/21 - 11/20/24 341,461
4,344 Government National Mortgage Association II,
10.0%, 1/20/06 4,665
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $184,009,070) $186,201,345
------------
The accompanying notes are an integral part of these financial statements.
11
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/03 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
TEMPORARY CASH INVESTMENT - 1.9%
Repurchase Agreement - 1.9%
$4,800,000 UBS Warburg, 0.73%, dated 12/31/03, repur-
chase price of $4,800,000 plus accrued interest
on 1/2/04, collateralized by $4,533,000 U.S.
Treasury Bonds, 6.75%, 5/15/05 $ 4,800,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $4,800,000) $ 4,800,000
------------
TOTAL INVESTMENT IN SECURITIES - 101.0%
(Cost $247,312,536)(a)(b)(c)(d) $249,490,037
------------
OTHER ASSETS AND LIABILITIES - (1.0)% $ (2,464,431)
------------
TOTAL NET ASSETS - 100.0% $247,025,606
============
Note: The Trust's investments in mortgage-backed securities of the Government
National Mortgage Association (GNMA) are interests in separate pools of
mortgages. All separate investments in this issuer which have the same
coupon rate have been aggregated for the purpose of presen- tation in this
schedule of investments.
(a) At December 31, 2003, the net unrealized gain on investments based on cost
for federal income tax purposes of $248,437,798 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 3,551,783
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (2,499,544)
------------
Net unrealized gain $ 1,052,239
============
(b) At December 31, 2003, the Trust had a net capital loss carryforward of
$7,139,642, of which the following amounts will expire between 2004 and
2011, if not utilized.
$1,540,059 in 2004
$2,049,267 in 2007
$1,526,846 in 2008
$2,023,470 in 2011
(c) The Fund has elected to defer approximately $516,281, of currency losses
recognized between December 1, 2003 and December 31, 2003 to its fiscal
year ending December 31, 2004.
(d) TBA (To Be Assigned) securities are purchased on a forward commitment
basis with an approximate (generally plus/minus 2.5%) principal and no
definite maturity date period. The actual principal amount and maturity
date will be determined upon settlement when the spe- cific mortgage pools
are assigned.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended December 31, 2003 aggregated $183,870,360 and $195,909,377
respectively.
The accompanying notes are an integral part of these financial statements.
12
Pioneer America Income Trust
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 12/31/03
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (cost $247,312,536) $249,490,037
Cash 72,193
Receivables --
Fund shares sold 132,620
Interest 1,762,524
Other 4,737
------------
Total assets $251,462,111
------------
LIABILITIES:
Payables -
Investment securities purchased $ 3,123,938
Fund shares repurchased 688,916
Dividends 216,168
Due to affiliates 329,161
Accrued expenses 78,322
------------
Total liabilities $ 4,436,505
------------
NET ASSETS:
Paid-in capital $253,674,037
Distributions in excess of net investment income (1,067,988)
Accumulated net realized loss on investments (7,757,944)
Net unrealized gain on investments 2,177,501
------------
Total net assets $247,025,606
============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $153,938,758/15,468,103 shares) $ 9.95
============
Class B (based on $55,302,464/5,590,554 shares) $ 9.89
============
Class C (based on $37,455,797/3,774,765 shares) $ 9.92
============
Class R (based on $328,587/32,632 shares) $ 10.07
============
MAXIMUM OFFERING PRICE:
Class A ($9.95 [divided by] 95.5%) $ 10.42
============
Class C ($9.92 [divided by] 99.0%) $ 10.02
============
The accompanying notes are an integral part of these financial statements.
13
Pioneer America Income Trust
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 11,258,643
------------
EXPENSES:
Management fees $1,423,604
Transfer agent fees
Class A 466,923
Class B 241,364
Class C 101,970
Distribution fees
Class A 432,790
Class B 675,141
Class C 440,527
Class R 191
Administrative fees 37,500
Custodian fees 24,838
Registration fees 114,080
Professional fees 54,317
Printing 31,052
Fees and expenses of nonaffiliated trustees 10,819
Miscellaneous 14,982
----------
Total expenses $ 4,070,098
------------
Less management fees waived and expenses
reimbursed by Pioneer Investment Management, Inc. (56,849)
Less fees paid indirectly (7,967)
------------
Net expenses $ 4,005,282
------------
Net investment income $ 7,253,361
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $ 1,554,904
------------
Change in net unrealized loss on investments $ (6,064,242)
------------
Net loss on investments $ (4,509,338)
------------
Net increase in net assets resulting from operations $ 2,744,023
============
The accompanying notes are an integral part of these financial statements.
14
Pioneer America Income Trust
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 12/31/03 and 12/31/02
Year Ended Year Ended
12/31/03 12/31/02
FROM OPERATIONS:
Net investment income $ 7,253,361 $ 7,927,673
Net realized gain on investments 1,554,904 2,653,295
Change in net unrealized gain (loss) on investments (6,064,242) 7,089,108
------------ -------------
Net increase in net assets resulting from
operations $ 2,744,023 $ 17,670,076
------------ -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.47 and $0.46 per share, respectively) $ (7,744,965) $ (6,432,080)
Class B ($0.38 and $0.40 per share, respectively) (2,415,765) (1,706,698)
Class C ($0.40 and $0.41 per share, respectively) (1,646,030) (742,031)
Class R ($0.32 and $0.00 per share, respectively) (3,517) -
------------ -------------
Total distributions to shareowners $(11,810,277) $ (8,880,809)
------------ -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $182,396,793 $269,788,820
Reinvestment of distributions 8,650,754 5,959,317
Cost of shares repurchased (204,620,502) (162,654,384)
------------ -------------
Net increase (decrease) in net assets resulting
from fund share transactions $(13,572,955) $113,093,753
------------ -------------
Net increase (decrease) in net assets $(22,639,209) $121,883,020
------------ -------------
NET ASSETS:
Beginning of year 269,664,815 147,781,795
------------ -------------
End of year (including distributions in excess of
net investment income of $1,067,988 and
$664,218, respectively) $247,025,606 $269,664,815
============ =============
The accompanying notes are an integral part of these financial statements.
15
Pioneer America Income Trust
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
For the Years Ended 12/31/03 and 12/31/02
'03 Shares '03 Amount '02 Shares '02 Amount
CLASS A
Shares sold 11,111,851 $ 113,426,133 15,405,939 $ 154,956,084
Reinvestment of distributions 594,445 6,002,597 436,057 4,379,711
Less shares repurchased (12,248,450) (124,349,426) (11,679,409) (117,323,851)
----------- ------------- ----------- -------------
Net increase (decrease) (542,154) $ (4,920,696) 4,162,587 $ 42,011,944
=========== ============= =========== =============
CLASS B
Shares sold 3,183,952 $ 32,226,735 6,647,016 $ 66,814,094
Reinvestment of distributions 162,736 1,634,160 111,513 1,118,949
Less shares repurchased (4,323,064) (43,493,823) (2,754,820) (27,651,793)
----------- ------------- ----------- -------------
Net increase (decrease) (976,376) $ (9,632,928) 4,003,709 $ 40,281,250
=========== ============= =========== =============
CLASS C
Shares sold 3,578,490 $ 36,404,685 4,757,424 $ 48,018,642
Reinvestment of distributions 100,303 1,010,487 45,549 460,657
Less shares repurchased (3,640,601) (36,765,189) (1,758,281) (17,678,740)
----------- ------------- ----------- -------------
Net increase 38,192 $ 649,983 3,044,692 $ 30,800,559
=========== ============= =========== =============
CLASS R (a)
Shares sold 33,479 $ 339,240
Reinvestment of distributions 348 3,510
Less shares repurchased (1,195) (12,064)
----------- -------------
Net increase 32,632 $ 330,686
=========== =============
(a) Class R shares were first publicly offered April 1, 2003.
The accompanying notes are an integral part of these financial statements.
16
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
12/31/03 12/31/02 12/31/01(a) 12/31/00 12/31/99
CLASS A
Net asset value, beginning of period $ 10.27 $ 9.79 $ 9.76 $ 9.30 $ 10.10
-------- -------- -------- ------- -------
Increase from investment operations:
Net investment income $ 0.28 $ 0.40 $ 0.52 $ 0.58 $ 0.55
Net realized and unrealized gain (loss) on investments (0.13) 0.54 0.05 0.46 (0.80)
-------- -------- -------- ------- -------
Net increase (decrease) from investment operations $ 0.15 $ 0.94 $ 0.57 $ 1.04 $ (0.25)
Distributions to shareowners:
Net investment income (0.47) (0.46) (0.51) (0.58) (0.55)
Net realized gain -- -- (0.03) -- --
-------- -------- -------- ------- -------
Net increase (decrease) in net asset value $ (0.32) $ 0.48 $ 0.03 $ 0.46 $ (0.80)
-------- -------- -------- ------- -------
Net asset value, end of period $ 9.95 $ 10.27 $ 9.79 $ 9.76 $ 9.30
======== ======== ======== ======= =======
Total return* 1.47% 9.78% 5.92% 11.58% (2.52)%
Ratio of net expenses to average net assets+ 1.10% 1.00% 1.01% 1.04% 1.01%
Ratio of net investment income to average net assets+ 2.85% 4.17% 5.14% 6.09% 5.63%
Portfolio turnover rate 66% 76% 72% 56% 72%
Net assets, end of period (in thousands) $153,939 $164,393 $115,998 $96,068 $111,262
Ratios with no waiver of management fees by
PIM and no reductions for fees paid indirectly:
Net expenses 1.12% 1.08% 1.12% 1.16% 1.14%
Net investment income 2.83% 4.09% 5.03% 5.97% 5.50%
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 1.10% 1.00% 1.00% 1.00% 1.00%
Net investment income 2.85% 4.18% 5.15% 6.13% 5.64%
* 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.
+ Ratios with no reduction for fees paid indirectly.
(a) On January 1, 2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this change for the year ended
December 31, 2001, was to decrease net investment income by $0.02 per share,
increase net realized and unrealized gain (loss) by $0.02 per share and
decrease the ratio of net investment income to average net assets assuming
waiver of management fees by PIM and reduction for fees paid indirectly from
5.35% to 5.15%. Per share ratios and supplemental data for periods prior to
January 1, 2001, have not been restated to reflect this change in
presentation.
The accompanying notes are an integral part of these financial statements.
17
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
12/31/03 12/31/02 12/31/01(a) 12/31/00 12/31/99
CLASS B
Net asset value, beginning of period $ 10.20 $ 9.76 $ 9.74 $ 9.28 $ 10.07
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.19 $ 0.34 $ 0.44 $ 0.50 $ 0.47
Net realized and unrealized gain (loss) on investments (0.12) 0.50 0.04 0.46 (0.79)
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 0.07 $ 0.84 $ 0.48 $ 0.96 $ (0.32)
Distributions to shareowners:
Net investment income (0.38) (0.40) (0.42) (0.50) (0.47)
Net realized gain -- -- (0.04) -- --
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.31) $ 0.44 $ 0.02 $ 0.46 $ (0.79)
------- ------- ------- ------- -------
Net asset value, end of period $ 9.89 $ 10.20 $ 9.76 $ 9.74 $ 9.28
======= ======= ======= ======= =======
Total return* 0.69% 8.82% 4.99% 10.68% (3.24)%
Ratio of net expenses to average net assets+ 1.94% 1.80% 1.95% 1.85% 1.78%
Ratio of net investment inome to average net assets+ 2.02% 3.26% 4.18% 5.29% 4.87%
Portfolio turnover rate 66% 76% 72% 56% 72%
Net assets, end of period (in thousands) $55,302 $67,013 $25,008 $16,889 $19,695
Ratios with no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 1.96% 1.88% 2.06% 1.98% 1.91%
Net investment income 2.00% 3.19% 4.07% 5.16% 4.74%
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 1.94% 1.79% 1.93% 1.83% 1.76%
Net investment income 2.02% 3.27% 4.20% 5.31% 4.89%
* 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.
+ Ratios with no reduction for fees paid indirectly.
(a) On January 1, 2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this change for the year ended
December 31, 2001, was to decrease net investment income by $0.02 per share,
increase net realized and unrealized gain (loss) by $0.02 per share and
decrease the ratio of net investment income to average net assets assuming
waiver of management fees by PIM and reduction for fees paid indirectly from
4.36% to 4.20%. Per share ratios and supplemental data for periods prior to
January 1, 2001, have not been restated to reflect this change in
presentation.
The accompanying notes are an integral part of these financial statements.
18
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
12/31/03 12/31/02 12/31/01(a) 12/31/00 12/31/99
CLASS C
Net asset value, beginning of period $ 10.24 $ 9.79 $ 9.74 $ 9.28 $10.07
------- ------- ------ ------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.21 $ 0.36 $ 0.46 $ 0.49 $ 0.47
Net realized and unrealized gain (loss) on investments (0.13) 0.50 0.03 0.46 (0.79)
------- ------- ------ ------ ------
Net increase (decrease) from investment operations $ 0.08 $ 0.86 $ 0.49 $ 0.95 $(0.32)
Distributions to shareowners:
Net investment income (0.40) (0.41) (0.43) (0.49) (0.47)
Net realized gain -- -- (0.01) -- --
------- ------- ------ ------ ------
Net increase (decrease) in net asset value $ (0.32) $ 0.45 $ 0.05 $ 0.46 $(0.79)
------- ------- ------ ------ ------
Net asset value, end of period $ 9.92 $ 10.24 $ 9.79 $ 9.74 $ 9.28
======= ======= ====== ====== ======
Total return* 0.75% 8.93% 5.05% 10.52% (3.19)%
Ratio of net expenses to average net assets+ 1.81% 1.77% 1.84% 2.02% 1.73%
Ratio of net investment income to average net assets+ 2.14% 3.16% 4.22% 5.14% 4.88%
Portfolio turnover rate 66% 76% 72% 56% 72%
Net assets, end of period (in thousands) $37,456 $38,258 $6,776 $3,221 $5,632
Ratios with no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 1.83% 1.84% 1.95% 2.15% 1.85%
Net investment income 2.12% 3.08% 4.11% 5.01% 4.76%
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 1.81% 1.76% 1.81% 1.97% 1.70%
Net investment income 2.14% 3.16% 4.25% 5.19% 4.91%
* 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.
+ Ratios with no reduction for fees paid indirectly.
(a) On January 1, 2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this change for the year ended
December 31, 2001, was to decrease net investment income by $0.01 per share,
increase net realized and unrealized gain (loss) by $0.01 per share and
decrease the ratio of net investment income to average net assets assuming
waiver of management fees by PIM and reduction for fees paid indirectly from
4.42% to 4.25%. Per share ratios and supplemental data for periods prior to
January 1, 2001, have not been restated to reflect this change in
presentation.
The accompanying notes are an integral part of these financial statements.
19
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
4/1/03
to
CLASS R (a) 12/31/03
Net asset value, beginning of period $10.31
------
Increase (decrease) from investment operations:
Net investment income $ 0.25
Net realized and unrealized loss on investments (0.17)
------
Net increase from investment operations $ 0.08
Distributions to shareowners:
Net investment income (0.32)
Net realized gain --
------
Net decrease in net asset value $(0.24)
------
Net asset value, end of period $10.07
======
Total return* 0.83%
Ratio of net expenses to average net assets+ 1.08%**
Ratio of net investment loss to average net assets+ (2.91)%**
Portfolio turnover rate 66%
Net assets, end of period (in thousands) $ 329
Ratios with no waiver of management fees by
PIM and no reductions for fees paid indirectly:
Net expenses 1.08%**
Net investment loss (2.91)%**
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 1.08%**
Net investment loss (2.91)%**
(a) Class R Shares were first publicly offered on April 1, 2003.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
20
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/03
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer America Income Trust (the Trust) is a Massachusetts statutory trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Trust is to
provide a high level of current income consistent with preservation of capital
and prudent investment risk.
The Trust offers four classes of shares - Class A, Class B, Class C and Class R
shares. Class R shares were first publicly offered on April 1, 2003. Shares of
Class A, Class B, Class C and Class R each represent an interest in the same
portfolio of investments of the Trust and have equal rights to voting,
redemptions, dividends and liquidation, except that each class of shares can
bear different transfer agent and distribution fees and has exclusive voting
rights with respect to the distribution plans that have been adopted by Class
A, Class B, Class C and Class R shareowners, respectively.
The Trust's financial statements have been prepared in conformity with
accounting principles generally accepted in the United States of America that
require the management of the Trust to, among other things, make estimates and
assumptions that affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of income, expenses and gains and losses
on investments during the reporting period. Actual results could differ from
those estimates. The following is a summary of significant accounting policies
consistently followed by the Trust, which are in conformity with those
generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Securities are valued
at prices supplied by independent pricing services, which consider such
factors as Treasury spreads, yields, maturities and ratings. Valuations may
be supplemented by dealers and other sources, as required. Securities for
which there are no other readily available valuation method are valued at
their fair values as determined by, or under the direction of the Board of
Trustees. Principal amounts of mortgage-backed securities are adjusted for
monthly paydowns. Premiums and discounts related to certain
21
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/03 (continued)
- --------------------------------------------------------------------------------
mortgage-backed securities are amortized or accreted in proportion to the
underlying monthly pay downs. All discounts/premiums on debt securities are
accreted/amortized for financial reporting purposes. Interest income is
recorded on the accrual basis. Temporary cash investments are valued at
amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
The amount and characterization of distributions to shareowners for
financial reporting purposes is determined in accordance with federal
income tax rules. Therefore, the source of the Trust's distributions may be
shown in the accompanying financial statements as either from net
investment income or net realized gain on investment transactions, or from
paid-in-capital, depending on the type of book/tax differences that may
exist.
The tax character of distributions paid during the years ended December 31,
2003 and 2002 were as follows:
- --------------------------------------------------------------------------------
2003 2002
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $11,810,277 $8,880,809
Long-term capital gain - -
----------- ----------
$11,810,277 $8,880,809
Return of Capital - -
=========== ==========
Total $11,810,277 $8,880,809
=========== ==========
- --------------------------------------------------------------------------------
22
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The following shows components of accumulated losses on a federal income tax
basis at December 31, 2003.
- --------------------------------------------------------------------------------
2003
- --------------------------------------------------------------------------------
Undistributed ordinary income $ -
Capital loss carryforward (7,139,642)
Post October losses deferred (516,281)
Unrealized appreciation 1,052,239
===========
Total $(6,603,684)
===========
- --------------------------------------------------------------------------------
The difference between book basis and tax-basis unrealized appreciation is
primarily attributable to the tax deferral of losses on wash sales and the
tax treatment of premium and amortization.
At December 31, 2003 the Trust had reclassified $4,153,146 to decrease
distributions in excess of net investment income, $3,338,468 to increase
accumulated net realized loss on investments and $814,678 to decrease paid
in capital. The reclassification has no impact on the net asset value of
the fund and is designed to present the Trust's capital accounts on a tax
basis.
C. Fund Shares
The Trust records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Trust and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.
(UniCredito Italiano), earned $65,614 in underwriting commissions on the
sale of Trust shares for the year ended December 31, 2003.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset
value attributable to Class A, Class B, Class C and Class R shares of the
Trust, respectively. Shareowners of each class share all expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services, which are allocated based on the
number of accounts in each class and the ratable allocation of related
out-of-pocket expenses (see Note 3). Income, common expenses and realized
and unrealized gains and losses are calculated at the Trust
23
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/03 (continued)
- --------------------------------------------------------------------------------
level and allocated daily to each class of shares based on the respective
percentage of adjusted net assets at the beginning of the day.
The Trust 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 Trust with respect to each class of shares
are calculated in the same manner, at the same time, and in the same
amount, except that Class A, Class B, Class C and Class R shares can bear
different transfer agent and distribution fees.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value
of the underlying securities (collateral), including accrued interest
received from counter parties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Trust's custodian, or sub custodians. The
Trust's investment adviser, Pioneer Investment Management, Inc. (PIM) is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
2. Management Agreement
PIM manages the Trust's portfolio and is a wholly owned indirect subsidiary of
UniCredito Italiano. Management fees are calculated daily at the annual rate of
0.50% of the Trust's average daily net assets.
PIM discontinued the Fund's expense limitation on May 1, 2003. Prior to May 1,
2003, PIM had agreed not to impose a portion of its management fee and to assume
other operating expenses of the Trust to the extent necessary to limit Class A
expenses to 1.00% of the average daily net assets attributable to Class A
shares; the portion of the Trust-wide expenses attributable to Class B, Class C
and Class R shares were reduced only to the extent that such expenses were
reduced for Class A shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory
24
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
reporting and insurance premiums, are paid by the Trust. At December 31, 2003,
$123,222 was payable to PIM related to management fees, administrative fees and
certain other services, and is included in due to affiliates.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Trust at
negotiated rates. Included in due to affiliates is $77,973 in transfer agent
fees payable to PIMSS at December 31, 2003.
4. Distribution and Service Plans
The Fund adopted Plans of Distribution with respect to each class of shares
(Class A Plan, Class B Plan, Class C Plan, and Class R Plan) in accordance with
Rule 12b-1 of the Investment Company Act of 1940. Pursuant to the Class A Plan,
the Trust pays PFD a service fee of up to 0.25% of the Fund's average daily net
assets attributable to Class A shares in reimbursement of such expenditures to
finance activities primarily intended to result in the sale of Class A shares.
Pursuant to the Class B Plan and the Class C Plan, the Trust pays PFD 1.00% of
the average daily net assets attributable to each class of shares. The fee
consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class B and Class C shares. Pursuant to
the Class R Plan, the Trust pays PFD 0.50% of the average daily net assets
attributable to Class R shares for distribution services. Included in due to
affiliates is $127,966 in distribution fees payable to PFD at December 31,
2003. The Trust also has adopted a separate service plan for Class R shares
(Service Plan). The Service Plan authorizes the Trust to pay securities
dealers, plan administrators or other services organizations that agree to
provide certain services to retirement plans or plan participants holding
shares of the Trust a service fee of up to 0.25% of the Trust's daily net
assets attributable to Class R shares held by such plans.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within one year of
purchase. Class B shares that are redeemed within six years of purchase are
subject to a CDSC at
25
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/03 (continued)
- --------------------------------------------------------------------------------
declining rates beginning at 4.00%, based on the lower of cost or market value
of shares being redeemed. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. Redemptions of Class R shares within
18 months of purchase may be subject to a CDSC of 1.00%. Proceeds from the
CDSCs are paid to PFD. For the year ended December 31, 2003, CDSCs in the
amount of $383,960 were paid to PFD.
5. Expense Offset Arrangements
The Trust has entered into certain expense offset arrangements with PIMSS,
resulting in a reduction in the Trust's total expenses due to interest earned
on cash held by PIMSS. For the year ended December 31, 2003, the Trust's
expenses were reduced by $7,967 under such arrangements.
26
Pioneer America Income Trust
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of
Pioneer America Income Trust:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer America Income Trust (the "Trust") as
of December 31, 2003, and the related statement of operations for the year then
ended, and the statements of changes in net assets and the financial highlights
for each of the two years in the period then ended. These financial statements
and financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for each of
the three years in the period ended December 31, 2001 were audited by other
auditors who have ceased operations and whose report, dated February 15, 2002,
expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of December 31, 2003, by correspondence
with the custodian and brokers or by other appropriate auditing procedures
where replies from brokers were not received. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer America Income Trust at December 31, 2003, the results of its
operations for the year then ended, the changes in its net assets and the
financial highlights for each of the two years in the period then ended in
conformity with accounting principles generally accepted in the United States.
/s/ Ernst & Young LLP
Boston, Massachusetts
February 17, 2004
27
Pioneer America Income Trust
- --------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
For information about any Pioneer mutual fund, please contact your investment
professional, or call Pioneer at 1-800-225-6292. Ask for a free fund information
kit, which includes a fund prospectus. Please read the prospectus carefully
before you invest.
U.S. Equity
Pioneer Fund
Pioneer Balanced Fund
Pioneer Equity Income Fund
Pioneer Growth Shares
Pioneer Mid Cap Growth Fund
Pioneer Mid Cap Value Fund
Pioneer Real Estate Shares
Pioneer Research Fund+
Pioneer Small Cap Value Fund
Pioneer Small Company Fund
Pioneer Value Fund
International/Global Equity
Pioneer Emerging Markets Fund
Pioneer Europe Fund
Pioneer Europe Select Fund
Pioneer International Equity Fund
Pioneer International Value Fund
Fixed Income
Pioneer America Income Trust
Pioneer Bond Fund
Pioneer Global High Yield Fund
Pioneer High Yield Fund
Pioneer Stable Value Fund
Pioneer Strategic Income Fund
Pioneer Tax Free Income Fund
Money Market
Pioneer Cash Reserves Fund*
+ Formerly Pioneer Core Equity Fund. Name change effective 12/11/03.
* An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1.00 per share, it is possible to
lose money by investing in the Fund.
28
Pioneer America Income Trust
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Auditors
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Trust's Board of Trustees provides broad supervision over the Trust's
affairs. The officers of the Trust are responsible for the Trust's operations.
The Trust's Trustees and officers are listed below, together with their
principal occupations during the past five years. Trustees who are interested
persons of the Trust within the meaning of the Investment Company Act of 1940
are referred to as Interested Trustees. Trustees who are not interested persons
of the Trust are referred to as Independent Trustees. Each of the Trustees
serves as a trustee of each of the 51 U.S. registered investment portfolios for
which Pioneer Investment Management, Inc. ("Pioneer") serves as investment
adviser (the "Pioneer Funds"). The address for all Interested Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Trust's statement of additional information provides more detailed
information regarding the Trust's Trustees and is available upon request,
without charge, by calling 1-800-225-6292.
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll free number (1-800-225-6292). This
information is also available at pioneerfunds.com.
29
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Name and Age Positions Held With the Trust Term of Office and Length of Service
John F. Cogan, Jr. (77)* Chairman of the Board, Since 1988.
Trustee and President Serves until a successor trustee is
elected or earlier retirement or removal
*Mr. Cogan is an Interested Trustee because he is an officer or director of
Pioneer and certain of its affiliates.
=========================================================================================================
Osbert M. Hood (51)** Trustee and Since June, 2003,
Executive Vice President Serves until a successor trustee is
elected or earlier retirement or removal
**Mr. Hood is an Interested Trustee because he is an officer or director of
Pioneer and certain of its affiliates.
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Address Positions Held With the Trust Term of Office and Length of Service
Mary K. Bush (55) Trustee Since 1997.
3509 Woodbine Street, Serves until a successor trustee is
Chevy Chase, MD 20815 elected or earlier retirement or removal.
=========================================================================================================
Richard H. Egdahl, M.D. (77) Trustee Since 1992.
Boston University Healthcare Serves until a successor trustee is
Entrepreneurship Program, elected or earlier retirement or removal.
53 Bay State Road,
Boston, MA 02215
=========================================================================================================
30
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this Trustee
Deputy Chairman and a Director of Pioneer Global Asset Director of Harbor Global Company,
Management S.p.A. ("PGAM"); Non-Executive Chairman Ltd.
and a Director of Pioneer Investment Management USA
Inc. ("PIM-USA"); Chairman and a Director of Pioneer;
Director of Pioneer Alternative Investment Management
Limited (Dublin); President and a Director of Pioneer
Alternative Investment Management (Bermuda) Limited
and affiliated funds; President and Director of Pioneer
Funds Distributor, Inc. ("PFD"); President of all of the
Pioneer Funds; and Of Counsel (since 2000, partner
prior to 2000), Hale and Dorr LLP (counsel to PIM-USA
and the Pioneer Funds)
=========================================================================================================
President and Chief Executive Officer, PIM-USA since None
May, 2003 (Director since January, 2001); President
and Director of Pioneer since May, 2003; Chairman
and Director of Pioneer Investment Management
Shareholder Services, Inc. ("PIMSS") since May, 2003;
Executive Vice President of all of the Pioneer Funds
since June, 2003; Executive Vice President and Chief
Operating Officer of PIM-USA, November 2000 to May
2003; Executive Vice President, Chief Financial Officer
and Treasurer, John Hancock Advisers, L.L.C., Boston,
MA, November 1999 to November 2000; Senior Vice
President and Chief Financial Officer, John Hancock
Advisers, L.L.C., April 1997 to November 1999
=========================================================================================================
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this Trustee
President, Bush International (international financial Director of Brady Corporation
advisory firm) (industrial identification and
specialty coated material products
manufacturer), Millennium Chemicals,
Inc. (commodity chemicals), Mortgage
Guaranty Insurance Corporation, and
R.J. Reynolds Tobacco Holdings, Inc.
(tobacco)
=========================================================================================================
Alexander Graham Bell Professor of Health Care None
Entrepreneurship, Boston University; Professor
of Management, Boston University School of
Management; Professor of Public Health, Boston
University School of Public Health; Professor of Surgery,
Boston University School of Medicine; and University
Professor, Boston University
=========================================================================================================
31
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Address Positions Held With the Trust Term of Office and Length of Service
Margaret B.W. Graham (56) Trustee Since 1990.
1001 Sherbrooke Street West, Serves until a successor trustee is
Montreal, Quebec, Canada elected or earlier retirement or removal.
H3A 1G5
=========================================================================================================
Marguerite A. Piret (55) Trustee Since 1988.
One Boston Place, 28th Floor, Serves until a successor trustee is
Boston, MA 02108 elected or earlier retirement or removal.
=========================================================================================================
Stephen K. West (75) Trustee Since 1993.
125 Broad Street, Serves until a successor trustee is
New York, NY 10004 elected or earlier retirement or removal.
=========================================================================================================
John Winthrop (67) Trustee Since 1988.
One North Adgers Wharf, Serves until a successor trustee is
Charleston, SC 29401 elected or earlier retirement or removal.
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Name and Age Positions Held With the Trust Term of Office and Length of Service
Dorothy E. Bourassa (56) Secretary Since Nov. 2000.
Serves at the discretion of board.
====================================================================================================
Christopher J. Kelley (39) Assistant Secretary Since September 2003
Serves at the discretion of board.
====================================================================================================
David C. Phelan (46) Assistant Secretary Since September 2003
Serves at the discretion of board.
====================================================================================================
Vincent Nave (58) Treasurer Since Nov. 2000.
Serves at the discretion of board.
====================================================================================================
Luis I. Presutti (38) Assistant Treasurer Since Nov. 2000.
Serves at the discretion of board.
====================================================================================================
32
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this
Trustee
Founding Director, The Winthrop Group, Inc. (consulting firm); None
Professor of Management, Faculty of Management, McGill
University
=====================================================================================================
President and Chief Executive Officer, Newbury, Piret & None
Company, Inc. (investment banking firm)
=====================================================================================================
Senior Counsel, Sullivan & Cromwell (law firm) Director, The Swiss Helvetia Fund,
Inc. (closed-end investment
company) and AMVESCAP PLC
(investment managers)
=====================================================================================================
President, John Winthrop & Co., Inc. None
(private investment firm)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this
Trustee
Secretary of PIM-USA; Senior Vice President-Legal of None
Pioneer; and Secretary/Clerk of most of PIM-USA's
subsidiaries since October 2000; Secretary of all of the
Pioneer Funds since September 2003 (Assistant
Secretary from November 2000 to September 2003);
and Senior Counsel, Assistant Vice President and Director of
Compliance of PIM-USA from April 1998 through
October 2000
=====================================================================================================
Assistant Vice President and Senior Counsel of Pioneer since None
July 2002; Vice President and Senior Counsel of BISYS Fund
Services, Inc. (April 2001 to June 2002); Senior Vice
President and Deputy General Counsel of Funds Distributor,
Inc. (July 2000 to April 2001; Vice President and Associate
General Counsel from July 1996 to July 2000); Assistant
Secretary of all of the Pioneer Funds since September 2003
=====================================================================================================
Partner, Hale and Dorr LLP; Assistant Secretary of all of None
Pioneer Funds since September 2003
=====================================================================================================
Vice President-Fund Accounting, Administration and Custody None
Services of Pioneer (Manager from September 1996 to
February 1999); and Treasurer of all of the Pioneer Funds
(Assistant Treasurer from June 1999 to November 2000)
=====================================================================================================
Assistant Vice President-Fund Accounting, Administration None
and Custody Services of Pioneer (Fund Accounting Manager
from 1994 to 1999); and Assistant Treasurer of all of the
Pioneer Funds since November 2000
=====================================================================================================
33
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Name and Age Positions Held With the Trust Term of Office and Length of Service
Gary Sullivan (45) Assistant Treasurer Since September 2002.
Serves at the discretion of board.
===================================================================================================
Katherine Kim Sullivan (30) Assistant Treasurer Serves at the discretion of board.
===================================================================================================
34
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Other Directorships Held by this
Principal Occupation During Past Five Years Officer
Fund Accounting Manager-Fund Accounting, Administration None
and Custody Services of Pioneer; and Assistant Treasurer of
all of the Pioneer Funds since May 2002
=====================================================================================================
Fund Administration Manager-Fund Accounting, None
Administration and Custody Services since June 2003;
Assistant Vice President-Mutual Fund Operations of
State Street Corporation from June 2002 to June 2003
(formerly Deutsche Bank Asset Management); Pioneer
Fund Accounting, Administration and Custody Services
(Fund Accounting Manager from August 1999 to May 2002,
Fund Accounting Supervisor from 1997 to July 1999);
Assistant Treasurer of all of the Pioneer Funds since
September 2003
=====================================================================================================
35
- --------------------------------------------------------------------------------
RETIREMENT PLANS FROM PIONEER
- --------------------------------------------------------------------------------
Pioneer has a long history of helping people work toward their retirement
goals, offering plans suited to the individual investor and businesses of all
sizes. For more information on Pioneer retirement plans, contact your
investment professional, or call Pioneer at 1-800-622-0176.
Individual Retirement Accounts (IRAs)
Traditional IRA*
For anyone under age 70-1/2 earning income. Individuals can contribute up to
$3,000 annually. Earnings are tax-deferred, and contributions may be
tax-deductible.
Roth IRA*
Available to single individuals earning less than $110,000 in income annually,
and married couples with joint income less than $160,000. Contributions of up
to $3,000 a year are not tax-deductible, but all earnings are tax-free for
qualified withdrawals. Distributions are tax and penalty-free if certain
conditions are met.
Employer-Sponsored Plans
Uni-K Plan*
A 401(k) plan designed specifically for any business that employs only owners
and their spouses. Participants can make salary deferral contributions up to
$11,000 per year. In addition, each year the business may contribute up to 25%
of pay.
401(k) Plan*
Allows employees to make pre-tax contributions through payroll deduction, up to
$11,000 per year. Employers' contributions are discretionary. The 401(k) offers
companies maximum flexibility.
SIMPLE IRA Plan*
The Savings Incentive Match PLan for Employees (SIMPLE) is designed for
employers with 100 or fewer eligible employees. Employees can decide whether to
contribute. Employers must contribute.
Most retirement plan withdrawals must meet
specific conditions to avoid penalties.
36
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
403(b) Plan*
Also known as a Tax-Sheltered Account (TSA), this plan lets employees of public
schools, non-profit hospitals and other tax-exempt organizations make pre-tax
contributions through payroll deduction.
SEP-IRA
The Simplified Employee Pension (SEP) plan lets self-employed people and
small-business owners make tax-deductible contributions of up to 25% of income,
while maintaining complete contribution flexibility each year.
Profit Sharing Plan
Companies can decide each year whether - and how much - to contribute to
participants, up to 25% of each participant's pay. Can include vesting
schedules that are not available with a SEP-IRA.
Age-Based Profit Sharing Plan
Employer contributions are flexible, but are based on a formula using age and
salary. Each year, a business can contribute up to 25% of the total eligible
payroll.
Money Purchase Pension Plan (MPP)
Allows employer contributions, up to 25% of pay annually. Companies must
contribute a fixed percentage of pay each year.
Defined Benefit Pension Plan
Requires a business to contribute enough each year to fund a specific future
benefit. Most beneficial to older employees who need to accumulate assets
rapidly.
* Special Catch-Up Provisions are available to individuals age 50 and older
to contribute additional amounts to their retirement accounts. For more
information, call our Retirement Plans Information line at 1-800-622-0176.
Most retirement plan withdrawals must meet
specific conditions to avoid penalties.
37
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvest.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current Fund prospectus.
[PIONEER
Investments(R) Logo]
Pioneer Investment Management, Inc.
60 State Street
Boston, Massachusetts 02109
www.pioneerfunds.com
14697-00-0204
(C) 2003 Pioneer Funds Distributor, Inc.
Underwriter of Pioneer mutual funds, Member SIPC
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
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.
Fees for audit services provided to the Pioneer America
Income Trust, including fees associated with the annual filings
of its Form N-1A, totaled approximately $25,100 in 2003 and
approximately $21,950 in 2002.
(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 other services provided to the Trust during the
fiscal years ended December 31, 2002 and 2003.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Fees for tax compliance services, primarily for tax returns,
totaled approximately $3,600 and $3,450 for 2003 and 2002,
respectively. Additionally, there were fees for tax compliance
services in 2002 that totaled approximately $4,100 for the
2001 tax returns.
(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.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognizes the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognizes that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with these 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 of (including comparison to
$xxxx for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved" to the left, or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
($xxxx for individual projects (including comparison
and $xxxx in the aggregate for to specified dollar
all pre-approved specific limits) reported
service subcategories) quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved to the
left, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
($xx,000 for individual (including comparison
projects for all pre-approved to specified dollar
specific service subcategories 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 (see subcategories 1 through fees reported at each
5 on the left), that may be permitted regularly scheduled
if they would not be subject to audit Audit Committee meeting
procedures at the audit client (as will serve as continual
defined in Rule 2-01(f)(4)) level by confirmation that has
the firm providing the service. not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Trust and affiliates as
previously defined, totaled approximately $26,900 in 2003
and $7,550 in 2002. These fees include services provided prior to
May 6, 2003, the effective date of the pre-approval process.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Trust's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that were
rendered to the Affiliates (as defined) that were not pre-approved
pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X
is compatible with maintaining the principal accountant's
independence.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation of
these controls and procedures as of a date within 90 days prior to the filing
date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or in
other factors that could significantly affect these controls subsequent to the
date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
Filed herewith.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer America Income Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date March 05, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date March 05, 2004
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date March 05, 2004
* Print the name and title of each signing officer under his or her signature.