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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 811-21460
Pioneer Series Trust II
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, 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, 2015 through December 31, 2015
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer AMT-Free
Municipal Fund
--------------------------------------------------------------------------------
Annual Report | December 31, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PBMFX
Class C MNBCX
Class Y PBYMX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 28
Notes to Financial Statements 35
Report of Independent Registered Public Accounting Firm 43
Approval of Investment Advisory Agreement 45
Trustees, Officers and Service Providers 50
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 1
President's Letter
Dear Shareowner,
Over the past several years, many investors experienced positive returns across
most major asset classes. However, 2015 was a tale of two markets, with
favorable market conditions in the first half of the year, followed by an abrupt
slowdown and increased volatility beginning in August. The global markets were
challenged by significant economic cross-currents in different geographic
regions and industrial sectors. While the U.S. economy gradually improved,
growth slowed in China. Emerging markets struggled following a decline in
commodity prices, especially oil. While lower energy prices are good for the
consumer, there were ripple effects throughout the global economy.
Against this backdrop, the Standard & Poor's 500 Index rose by just 1.4% in
2015, international equity markets were essentially flat, and emerging market
equities fell sharply. Across U.S. fixed-income sectors, U.S. government and
investment-grade corporate bonds were fairly flat for the year, while high-yield
bonds, as measured by the Bank of America Merrill Lynch Master II High Yield
Index, posted a -4.9% total return.
Entering 2016, we see the U.S. economy growing modestly, against an overall
global economic backdrop that remains fragile and points towards structurally
lower growth. As always in a Presidential election year, political rhetoric has
the potential to impact U.S. sectors such as health care in 2016. Economies
around the world in both developed and emerging markets are experiencing deep
structural change. Geopolitical instability on many fronts, the rising risk of
policy mistakes, and market liquidity issues all increase the possibility of
sharp swings in asset values. In this environment, financial markets remain
vulnerable to unusual levels of volatility. While divergences among regions and
industries is an important theme, we are generally optimistic about the outlook
for the U.S. economy, which we expect will see continued, positive growth led by
a strengthened consumer.
Throughout Pioneer's history, we have believed in the importance of active
management. In periods of market volatility, we believe that the value of active
management is even more compelling. Our experienced and tenured investment teams
focus on identifying value across global markets using proprietary research,
careful risk management, and a long-term perspective. Our ongoing goal is to
produce compelling returns consistent with the stated objectives of our
investment products, and with our shareowners' expectations. We believe our
shareowners can benefit from the experience and tenure of our investment teams
as well as the insights generated from our extensive research process.
2 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
December 31, 2015
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 3
Portfolio Management Discussion | 12/31/15
In the following interview, David Eurkus, lead portfolio manager of Pioneer
AMT-Free Municipal Fund, discusses the investment environment for municipal
bonds during the 12-month period ended December 31, 2015, the Fund's investment
strategies, its performance during the period, and his outlook for the municipal
bond market. Mr. Eurkus, Director of Municipals, a senior vice president and a
portfolio manager at Pioneer, manages the Fund along with Jonathan Chirunga, a
vice president and a portfolio manager at Pioneer.
Q How did the Fund perform during the 12-month period ended December 31,
2015?
A For its most recent fiscal year ended December 31, 2015, Pioneer AMT-Free
Municipal Fund's Class A shares returned 4.51% at net asset value, while
the Fund's benchmark, the Barclays Municipal Bond Index (the Barclays
Index), returned 3.30%. During the same period, the average return of the
259 mutual funds in Lipper's General & Insured Municipal Debt Funds
Category was 2.98%, and the average return of the 197 mutual funds in
Morningstar's Municipal National Long Funds Category was 3.07%.
Q How would you describe the investment environment for municipal bonds
during the 12-month period ended December 31, 2015?
A Following declines in longer-term interest rates at the end of January and
into early February 2015, rates began to rise modestly in the first
quarter of the Fund's fiscal year, based on comments from the U.S. Federal
Reserve (the Fed) that it might soon begin raising the Federal funds rate.
Significant reductions in domestic unemployment rates, somewhat higher
inflation expectations, and a rebound in the price of oil then began to
nudge longer-term interest rates higher. Globally, in response to the
European Central Bank's quantitative easing program, yields for European
sovereign bonds with maturities up to 10 years turned negative. In the
second quarter of the year (April through June), European yields reversed
and spiked upward in response to the debt crisis in Greece, while U.S.
Treasury yields also rose sharply. Earlier in 2015, with demand
significantly outstripping supply, municipalities began to refinance their
bonds at a rapid pace, thus flooding the market with supply. The surge in
the supply of municipal bonds weighed on the market for much of the second
quarter until municipal refinancings slowed in May and June in response to
the global rise in interest rates.
4 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
By July, the longer-term rally in the municipal market resumed, and
towards the end of the Fund's fiscal year, municipal supply had declined
dramatically amid strong demand for tax-free bonds. The resumption of the
municipal rally occurred amid a slowing global economy, uncertainty
regarding the Fed's moves going forward, and the fact that other global
central banks were easing monetary policies while the Fed declared its
desire to tighten policy further following its much-awaited December 2015
rate hike.
Despite an up-and-down market environment over the past year, tax-exempt
issues still registered the best returns within the fixed-income market on
a tax-adjusted basis for the 12-month period ended December 31, 2015.
Q What were your principal investment strategies in managing the Fund's
portfolio during the 12-month period ended December 31, 2015?
A Our principal investment strategy for the portfolio is to purchase and
hold discounted long-term municipal bonds, as these investments offer the
highest potential yields in the tax-exempt marketplace. We believe that,
over the long term, our strategy can enable the Fund to outperform its
benchmark and its municipal fund peers. We also have continued to focus
the Fund's investments in sectors that are vital to communities
nationwide. The sectors include health care/hospitals, transportation,
public and private education, and power/energy.
During the 12-month period, we maintained our emphasis on overall
portfolio quality. As of December 31, 2015, 71% of the Fund's investments
were in bonds rated "A" or higher by Moody's, including nearly 22% in the
"AAA" category. In addition, the Fund is broadly diversified* among a wide
range of municipal bond sectors.
Q What were the most significant contributors to and detractors from the
Fund's benchmark-relative performance during the 12-month period ended
December 31, 2015?
A Over the 12-month period, the Fund's investments in tobacco bonds in
California (Golden State Tobacco Securitization Corp.), education bonds in
Massachusetts (Massachusetts State Health & Educational Facilities
Authority), and various transportation bonds in Texas were among the most
significant contributors to the Fund's relative returns.
Marginally detracting from the Fund's benchmark-relative performance
during the period were hospital bonds issued by Lake County, Ohio, and
State of Indiana finance/environmental bonds.
* Diversification does not assure a profit nor protect against loss.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 5
Q Did the Fund's level of distribution income to shareholders change at all
during the 12-month period ended December 31, 2015?
A No, the Fund's distribution levels to shareholders remained stable during
the 12-month period. Future distributions are, of course, subject to
changes in interest rates, which could have a positive or negative effect
on the Fund's income.
Q Did you invest the Fund in any derivative securities during the 12-month
period ended December 31, 2015? If so, did the positions have an effect on
the Fund's performance?
A No. We did not invest the Fund in any derivatives during the period.
Q What is your outlook?
A We are encouraged by the recent reduction in supply and increase in demand
within the municipal bond market, as well as by recent yield declines, and
we look forward to a relatively stable and positive environment for
tax-exempt issues. With the global economy stalled, we do not foresee
significant increases in longer-term interest rates in the near future.
Municipal bonds continue to appear very attractive on a tax-adjusted basis
versus their taxable counterparts, and we have witnessed more and more
investors domestically - and globally - investing in tax-exempt issues.
Conversely, we continue to have concerns about the effects on certain
tax-exempt bond issuers from their unfunded pension liabilities, such as
the State of Illinois, the City of Chicago, and the City of Detroit, and
regarding the deteriorating debt situation in the Commonwealth of Puerto
Rico. (The Fund's portfolio has no holdings in any of those troubled
credits.)
After a year of positive performance, and though we are optimistic
concerning the overall investment environment for municipal bonds, we have
reduced the Fund's duration slightly as a measure of caution in a rate
environment that could be volatile in the short term. (Duration is a
measure of the sensitivity of the price - the value of principal - of a
fixed-income investment to a change in interest rates, expressed as a
number of years.) We will continue to hold select, long-term tax-exempt
bonds in the Fund's portfolio, bonds that we believe have the strongest
opportunity to perform well over time. We will also continue to monitor
closely the Fund's holdings to help ensure their integrity and quality as
well as the timely payment of principal and interest on the investments.
The Fund remains broadly diversified, and the vast majority of the
portfolio's holdings are in bonds with dedicated revenue streams, which we
also continue to monitor closely.
We believe that Pioneer AMT-Free Municipal Fund continues to be a suitable
vehicle for appropriate, long-term investors seeking high income that is
free from Federal income taxes.
6 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
Please refer to the Schedule of Investments on pages 15-27 for a full listing of
Fund securities.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making the Fund more susceptible to
any economic, political, or regulatory developments or other risks affecting
those industries and sectors.
The value of municipal securities can be adversely affected by changes in
financial condition of municipal issuers, lower revenues, and regulatory and
political developments.
A portion of income may be subject to local, state, federal and/or alternative
minimum tax. Capital gains, if any, are subject to capital gains tax.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 7
Portfolio Summary | 12/31/15
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
General Obligation 19.1%
Education 16.6%
Health 13.2%
Insured 10.2%
Special Revenues 10.1%
Transportation 7.4%
Reserves 4.9%
Pollution Control Revenue 4.6%
Escrowed 4.2%
Water & Sewer 3.4%
Power 2.9%
Various Revenues 2.3%
Housing 1.1%
10 Largest Holdings*
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
1. BlackRock Liquidity Funds MuniFund Portfolio 2.97%
--------------------------------------------------------------------------------
2. Massachusetts Health & Educational Facilities Authority,
Massachusetts Institute of Technology-Series K, 5.5%, 7/1/32 1.65
--------------------------------------------------------------------------------
3. Dallas Area Rapid Transit, 5.0%, 12/1/33 1.40
--------------------------------------------------------------------------------
4. Golden State Tobacco Securitization Corp., 5.125%, 6/1/47 1.29
--------------------------------------------------------------------------------
5. Texas Private Activity Bond Surface Transportation Corp.,
Sr Lien-LBJ Infrastructure, 7.0%, 6/30/40 1.25
--------------------------------------------------------------------------------
6. State of Washington, 5.0%, 7/1/30 1.24
--------------------------------------------------------------------------------
7. State of Maryland, 5.0%, 3/1/21 1.17
--------------------------------------------------------------------------------
8. Forsyth County Water & Sewerage Authority, 5.0%, 4/1/41 1.17
--------------------------------------------------------------------------------
9. Massachusetts Development Finance Agency, Partners Healthcare
Systems, 5.0%, 7/1/31 1.16
--------------------------------------------------------------------------------
10. Tobacco Settlement Financing Corp. Virginia, 5.0%, 6/1/47 1.16
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or
sell any security listed.
8 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
Prices and Distributions | 12/31/15
Net Asset Value per Share
--------------------------------------------------------------------------------
Class 12/31/15 12/31/14
--------------------------------------------------------------------------------
A $14.60 $14.49
--------------------------------------------------------------------------------
C $14.48 $14.37
--------------------------------------------------------------------------------
Y $14.56 $14.44
--------------------------------------------------------------------------------
Distributions per Share: 1/1/15 - 12/31/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.5280 $ -- $ --
--------------------------------------------------------------------------------
C $0.4168 $ -- $ --
--------------------------------------------------------------------------------
Y $0.5654 $ -- $ --
--------------------------------------------------------------------------------
Index Definition
--------------------------------------------------------------------------------
The Barclays Municipal Bond Index is an unmanaged, broad measure of the
municipal bond market. Index returns are calculated monthly, assume reinvestment
of dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts shown on pages 10-12.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 9
Performance Update | 12/31/15 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer AMT-Free Municipal Fund at public
offering price during the periods shown, compared to that of the Barclays
Municipal Bond Index.
Average Annual Total Returns
(As of December 31, 2015)
--------------------------------------------------------------------------------
Net Public
Asset Offering Barclays
Value Price Municipal
Period (NAV) (POP) Bond Index
--------------------------------------------------------------------------------
10 Years 5.01% 4.53% 4.72%
5 Years 7.23 6.25 5.35
1 Year 4.51 -0.18 3.30
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.85% 0.82%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer AMT-Free Barclays Municipal
Municipal Fund Bond Index
12/05 $ 9,550 $10,000
12/06 $10,044 $10,484
12/07 $10,184 $10,837
12/08 $ 8,672 $10,568
12/09 $10,754 $11,933
12/10 $10,985 $12,217
12/11 $12,274 $13,524
12/12 $13,854 $14,441
12/13 $13,116 $14,072
12/14 $14,901 $15,346
12/15 $15,572 $15,853
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through May 1, 2016, for Class A shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
Performance Update | 12/31/15 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer AMT-Free Municipal Fund during the
periods shown, compared to that of the Barclays Municipal Bond Index.
Average Annual Total Returns
(As of December 31, 2015)
--------------------------------------------------------------------------------
Barclays
If If Municipal
Period Held Redeemed Bond Index
--------------------------------------------------------------------------------
10 Years 4.20% 4.20% 4.72%
5 Years 6.41 6.41 5.35
1 Year 3.74 3.74 3.30
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.60%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer AMT-Free Barclays Municipal
Municipal Fund Bond Index
12/05 $10,000 $10,000
12/06 $10,452 $10,484
12/07 $10,522 $10,837
12/08 $ 8,884 $10,568
12/09 $10,922 $11,933
12/10 $11,060 $12,217
12/11 $12,258 $13,524
12/12 $13,733 $14,441
12/13 $12,902 $14,072
12/14 $14,547 $15,346
12/15 $15,091 $15,853
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). If you paid a 1% sales charge, your returns would
be lower than those shown above. "If Held" results represent the percent change
in net asset value per share. Returns would have been lower had sales charges
been reflected. All results are historical and assume the reinvestment of
dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 11
Performance Update | 12/31/15 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer AMT-Free Municipal Fund during the
periods shown, compared to that of the Barclays Municipal Bond Index.
Average Annual Total Returns
(As of December 31, 2015)
--------------------------------------------------------------------------------
Net
Asset Barclays
Value Municipal
Period (NAV) Bond Index
--------------------------------------------------------------------------------
10 Years 5.26% 4.72%
5 Years 7.51 5.35
1 Year 4.86 3.30
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.65% 0.55%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer AMT-Free Barclays Municipal
Municipal Fund Bond Index
12/05 $5,000,000 $5,000,000
12/06 $5,262,017 $5,242,148
12/07 $5,350,027 $5,418,269
12/08 $4,570,870 $5,284,204
12/09 $5,677,895 $5,966,583
12/10 $5,810,689 $6,108,542
12/11 $6,510,755 $6,762,141
12/12 $7,364,667 $7,220,602
12/13 $6,989,256 $7,036,228
12/14 $7,958,188 $7,673,033
12/15 $8,345,099 $7,926,377
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for periods prior to the inception of Class Y shares on
November 10, 2006, reflects the NAV performance of Pioneer AMT-Free Municipal
Fund's Class A shares. The performance does not reflect differences in expenses,
including the Rule 12b-1 fees applicable to Class A shares. Since fees for Class
A shares are generally higher than those of Class Y shares, the performance of
Class Y shares for periods prior to the inception of Class Y shares on November
10, 2006, would have been higher than that shown. Class Y shares are not subject
to sales charges and are available for limited groups of eligible investors,
including institutional investors. All results are historical and assume the
reinvestment of dividends and capital gains. Other share classes are available
for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through May 1, 2016, for Class Y shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer AMT-Free Municipal Fund
Based on actual returns from July 1, 2015 through December 31, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 7/1/15
--------------------------------------------------------------------------------
Ending Account $1,045.73 $1,041.98 $1,050.07
Value on 12/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 4.23 $ 8.03 $ 2.84
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.82%,
1.56% and 0.55%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one half period).
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 13
Comparing Ongoing Fund Expenses (continued)
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer AMT-Free Municipal Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from July 1, 2015 through December 31, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 7/1/15
--------------------------------------------------------------------------------
Ending Account $1,021.07 $1,017.34 $1,022.43
Value on 12/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 4.18 $ 7.93 $ 2.80
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.82%,
1.56% and 0.55%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one half period).
14 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
Schedule of Investments | 12/31/15
---------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 94.1% (e)
Arizona -- 2.2%
5,145,000 Arizona Health Facilities Authority, Banner Health-
Series D, 5.5%, 1/1/38 $ 5,505,767
10,000,000 City of Mesa Arizona, 3.25%, 7/1/29 10,250,200
5,000,000 City of Phoenix Arizona, 4.0%, 7/1/21 (f) 5,684,550
1,000,000 Maricopa County Pollution Control Corp.,
Southern California Education Co-A, 5.0%, 6/1/35 1,119,050
19,000 The Industrial Development Authority of the
County of Pima, Ariz Charter Schools Project-
Series C, 6.75%, 7/1/31 19,126
500,000 The Industrial Development Authority of the
County of Pima, Paradise Education Center Project,
6.1%, 6/1/45 517,690
---------------
$ 23,096,383
---------------------------------------------------------------------------------------------------------------
California -- 9.3%
10,000,000 Alameda Corridor Transportation Authority,
10/1/31 (c) (NATL Insured) $ 5,544,400
2,260,000 Anaheim Public Financing Authority, 9/1/22 (c)
(AGM Insured) 1,931,057
12,595,000 Anaheim Public Financing Authority, 9/1/36 (c)
(AGM Insured) 5,634,877
20,000,000 California County Tobacco Securitization Agency,
Capital Appreciation, Stanislaus-Sub A, 6/1/46 (c) 2,309,200
3,235,000 California County Tobacco Securitization Agency,
Capital Appreciation-Asset-Backed-Gold Country,
6/1/33 (c) 1,073,502
6,400,000 California Educational Facilities Authority,
Stanford University, Series U6, 5.0%, 5/1/45 8,610,816
2,345,000 California Municipal Finance Authority,
5.25%, 2/1/37 2,412,935
1,655,000 California Municipal Finance Authority,
5.25%, 2/1/37 (Pre-Refunded) 1,736,972
4,875,000 California Statewide Communities Development
Authority, CHF Irvine LLC-UCI East, 5.0%, 5/15/30 4,948,076
4,000,000 California Statewide Communities Development
Authority, Insured-Enloe Medical Center,
5.75%, 8/15/38 (CAMTG INS Insured) 4,494,400
10,000,000 California Statewide Communities Development
Authority, Insured-St Joseph-B, 5.75%, 7/1/47
(FGIC Insured) 11,015,700
5,000,000 City of San Francisco California Public Utilities
Commission Water Revenue, 4.0%, 11/1/33 5,442,500
7,000,000 City of San Francisco California Public Utilities
Commission Water Revenue, 4.0%, 11/1/34 7,571,830
270,000 Franklin-Mckinley School District, 6.0%, 7/1/16 (f)
(AGM Insured) 277,530
2,100,000 Fresno Joint Powers Financing Authority, Exhibit Hall
Expansion Project, 4.75%, 9/1/28 (AMBAC Insured) 2,100,231
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 15
Schedule of Investments | 12/31/15 (continued)
---------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------------
California -- (continued)
15,000,000 Golden State Tobacco Securitization Corp.,
5.125%, 6/1/47 $ 13,007,700
3,000,000 Long Beach Bond Finance Authority,
5.5%, 11/15/37 3,717,030
2,180,000 Pomona Unified School District, 6.55%, 8/1/29 (f)
(NATL Insured) 2,895,563
3,000,000 Rialto Redevelopment Agency, 6.25%, 9/1/37 3,314,820
1,500,000 San Jose Evergreen Community College District,
5.0%, 8/1/41 (f) 1,738,800
1,500,000 Santa Cruz County Redevelopment Agency,
6.625%, 9/1/29 1,749,255
1,405,000 Santa Maria Joint Union High School District,
Capital Appreciation Election 2004, 8/1/27 (c) (f)
(NATL Insured) 962,397
3,750,000 Tobacco Securitization Authority of Southern
California, 5.0%, 6/1/37 3,490,612
1,125,000 Tobacco Securitization Authority of Southern
California, 5.125%, 6/1/46 1,021,928
---------------
$ 97,002,131
---------------------------------------------------------------------------------------------------------------
Colorado -- 1.0%
2,750,000 Colorado Health Facilities Authority, Adventist
Health/Sunbelt-D, 5.25%, 11/15/35 $ 2,862,365
2,500,000 Regional Transportation District, Denver
Transportation Partners, 6.0%, 1/15/26 2,827,450
1,250,000 Regional Transportation District, Denver
Transportation Partners, 6.0%, 1/15/34 1,411,400
1,000,000 Regional Transportation District, Denver
Transportation Partners, 6.0%, 1/15/41 1,125,140
2,000,000 Regional Transportation District, Denver
Transportation Partners, 6.5%, 1/15/30 2,321,660
---------------
$ 10,548,015
---------------------------------------------------------------------------------------------------------------
Connecticut -- 0.8%
5,000,000 State of Connecticut, 4.0%, 9/1/30 (f) $ 5,430,650
3,000,000 The Metropolitan District, 3.0%, 3/1/29 (f) 3,066,990
---------------
$ 8,497,640
---------------------------------------------------------------------------------------------------------------
Delaware -- 0.5%
5,000,000 Delaware State Economic Development Authority,
Exempt Facility-Indian River Power,
5.375%, 10/1/45 $ 5,169,950
---------------------------------------------------------------------------------------------------------------
District of Columbia -- 1.7%
10,000,000 District of Columbia Tobacco Settlement
Financing Corp., 6.75%, 5/15/40 $ 10,001,900
7,950,000 District of Columbia, Deed Tax-Housing Production
Funding-Series A, 4.25%, 6/1/37 (NATL Insured) 8,036,973
---------------
$ 18,038,873
---------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
---------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------------
Florida -- 3.7%
445,000 County of Madison Florida, First Mortgage-Twin
Oaks Project-Series A, 6.0%, 7/1/25 $ 292,588
5,000,000 County of Miami-Dade Florida Aviation Revenue,
5.5%, 10/1/41 5,616,500
3,000,000 Escambia County Health Facilities Authority,
Baptist hospital Inc., Project-A, 6.0%, 8/15/36 3,413,400
1,390,000 Florida Development Finance Corp., Renaissance
Charter school-A, 6.0%, 9/15/30 1,458,805
5,000,000 Florida's Turnpike Enterprise, Dept Transportation-
Series A, 4.0%, 7/1/30 5,464,900
3,400,000 St. Johns County Industrial Development Authority,
Presbyterian Retirement-Series A, 6.0%, 8/1/45 3,804,294
10,000,000 State of Florida, 3.0%, 6/1/29 (f) 10,225,700
8,000,000 State of Florida, 3.0%, 6/1/30 (f) 8,122,640
---------------
$ 38,398,827
---------------------------------------------------------------------------------------------------------------
Georgia -- 2.8%
5,750,000 Burke County Development Authority, Oglethorpe
Power Corp Vogtle-E, 7.0%, 1/1/23 $ 6,368,412
10,000,000 Forsyth County Water & Sewerage Authority,
5.0%, 4/1/41 11,772,600
2,000,000 2.00 Monroe County Development Authority, GA Power Co.
Plant-Scherer, Floating Rate Note, 7/1/25 2,021,900
2,750,000 Private Colleges & Universities Authority, Emory
University-Series A, 5.0%, 10/1/43 3,170,832
5,000,000 State of Georgia, 4.0%, 10/1/22 (f) 5,793,400
---------------
$ 29,127,144
---------------------------------------------------------------------------------------------------------------
Illinois -- 2.6%
1,000,000 Illinois Finance Authority, American Water
Capital Corp. Project, 5.25%, 5/1/40 $ 1,068,500
5,000,000 Illinois Finance Authority, Centegra Health System,
Series A, 5.0%, 9/1/42 5,427,750
650,000 Illinois Finance Authority, Christian Homes, Inc.,
6.125%, 5/15/27 651,008
5,000,000 Illinois Finance Authority, Roosevelt University
Project, 6.5%, 4/1/39 5,463,650
4,000,000 Illinois Finance Authority, Silver Cross Hospital &
Medical Centers, 5.5%, 8/15/30 4,241,920
5,000,000 Metropolitan Pier & Exposition Authority, McCormick
Pl Convention, 7.0%, 7/1/26 (Pre-Refunded) 6,605,300
3,000,000 Railsplitter Tobacco Settlement Authority,
6.0%, 6/1/28 3,578,940
---------------
$ 27,037,068
---------------------------------------------------------------------------------------------------------------
Indiana -- 1.7%
2,000,000 Indiana Bond Bank, Special Project-Hendricks
Regional Health-A, 5.5%, 2/1/29 (MORAL
OBLIG Insured) $ 2,205,220
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 17
Schedule of Investments | 12/31/15 (continued)
---------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------------
Indiana -- (continued)
5,000,000 Indiana Health & Educational Facilities Financing
Authority, Clarian Health Obligation-Series A,
4.75%, 2/15/34 $ 5,026,700
7,000,000 Indiana Health & Educational Facilities Financing
Authority, Clarian Health Obligation-Series A,
5.0%, 2/15/39 7,039,550
3,000,000 Indiana University, 4.0%, 6/1/42 3,168,720
310,000 Indianapolis Local Public Improvement Bond
Bank, 6.0%, 1/10/20 334,577
---------------
$ 17,774,767
---------------------------------------------------------------------------------------------------------------
Louisiana -- 1.8%
6,000,000 Jefferson Parish Hospital Service District No. 2,
East Jefferson General Hospital, 6.375%, 7/1/41 $ 6,843,060
245,000 Louisiana Local Government Environmental Facilities
& Community Development Authority, Capital
Projects & Equipment Acquisition, 5.25%,
12/1/18 (AMBAC Insured) 252,602
7,250,000 Louisiana Public Facilities Authority, 5.5%, 5/15/47 7,577,772
2,750,000 Louisiana Public Facilities Authority, 5.5%, 5/15/47
(Pre-Refunded) 2,928,118
400,000 Louisiana State Citizens Property Insurance Corp.,
5.0%, 6/1/24 464,748
500,000 Louisiana State Citizens Property Insurance Corp.,
5.0%, 6/1/24 (AGM Insured) 587,650
---------------
$ 18,653,950
---------------------------------------------------------------------------------------------------------------
Maine -- 1.2%
4,500,000 Maine Health & Higher Educational Facilities
Authority, Maine General Medical Center,
6.75%, 7/1/36 $ 5,112,675
3,040,000 Maine Health & Higher Educational Facilities
Authority, Maine General Medical Center,
6.95%, 7/1/41 3,481,438
2,745,000 University of Maine, 5.0%, 3/1/25 (AGM Insured) 3,372,205
---------------
$ 11,966,318
---------------------------------------------------------------------------------------------------------------
Maryland -- 4.2%
3,000,000 County of Frederick Maryland, Mount St Mary
University, 5.625%, 9/1/38 $ 3,013,290
400,000 Maryland Economic Development Corp., 5.0%,
Senior Lien-Chesapeake Bay -- Series A, 12/1/16 (d) 227,912
900,000 Maryland Economic Development Corp., 5.0%,
Senior Lien-Chesapeake Bay -- Series B, 12/1/16 (d) 512,802
2,000,000 Maryland Economic Development Corp.,
Potomac, 6.2%, 9/1/22 2,288,540
6,250,000 Maryland Health & Higher Educational Facilities
Authority, Ascension Health-Series B,
5.0%, 11/15/51 6,928,875
6,350,000 State of Maryland, 3.0%, 3/1/30 (f) 6,517,132
The accompanying notes are an integral part of these financial statements.
18 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
---------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------------
Maryland -- (continued)
3,500,000 State of Maryland, 4.5%, 8/1/19 (f) $ 3,919,335
10,000,000 State of Maryland, 5.0%, 3/1/21 (f) 11,841,400
3,880,000 Washington Suburban Sanitary Commission,
4.0%, 6/1/43 (f) 4,122,073
3,735,000 Washington Suburban Sanitary Commission,
4.0%, 6/1/44 (f) 3,965,188
---------------
$ 43,336,547
---------------------------------------------------------------------------------------------------------------
Massachusetts -- 16.0%
5,075,000 City of Cambridge Massachusetts, 3.0%, 2/15/35 (f) $ 5,100,730
6,400,000 0.77 Commonwealth of Massachusetts, Floating Rate
Note, 11/1/25 (f) 6,202,560
1,300,000 Concord & Carlisle Regional School District
Massachusetts, 3.0%, 3/15/29 (f) 1,336,010
1,300,000 Concord & Carlisle Regional School District
Massachusetts, 3.0%, 3/15/31 (f) 1,315,977
1,300,000 Concord & Carlisle Regional School District
Massachusetts, 3.0%, 3/15/32 (f) 1,312,077
1,300,000 Concord & Carlisle Regional School District
Massachusetts, 3.0%, 3/15/33 (f) 1,308,606
5,000,000 Massachusetts Department of Transportation,
1/1/28 (c) (NATL Insured) 3,662,950
4,000,000 Massachusetts Development Finance Agency,
5.0%, Boston University-Series X, 10/1/48 4,509,920
1,275,000 Massachusetts Development Finance Agency,
Adventcare Project-Series A, 6.25%, 10/15/17 1,336,672
1,000,000 Massachusetts Development Finance Agency,
Babson College, 5.0%, 10/1/21 1,174,330
1,000,000 Massachusetts Development Finance Agency,
Babson College, 5.0%, 10/1/22 1,162,600
1,000,000 Massachusetts Development Finance Agency,
Berkshire Health System-Series G, 5.0%, 10/1/30 1,106,530
1,980,000 Massachusetts Development Finance Agency,
Broad Institute -Series A, 5.375%, 4/1/41 2,272,050
500,000 Massachusetts Development Finance Agency,
Evergreen Center, Inc., 5.5%, 1/1/35 500,435
1,000,000 Massachusetts Development Finance Agency,
Foxborough Regional Charter School-A,
7.0%, 7/1/42 1,129,460
4,000,000 Massachusetts Development Finance Agency,
Lowell General Hospital-Series G, 5.0%, 7/1/44 4,283,760
400,000 Massachusetts Development Finance Agency,
Milford Regional Medical Center-Series F,
5.625%, 7/15/36 441,936
500,000 Massachusetts Development Finance Agency,
Milford Regional Medical Center-Series F,
5.75%, 7/15/43 553,710
2,000,000 Massachusetts Development Finance Agency,
Northeastern University, 4.0%, 10/1/35 2,079,100
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 19
Schedule of Investments | 12/31/15 (continued)
---------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
450,000 Massachusetts Development Finance Agency,
Northeastern University-Series A, 5.0%, 3/1/39 $ 509,864
2,700,000 Massachusetts Development Finance Agency,
Partners Healthcare Systems, 4.0%, 7/1/45 2,803,869
9,930,000 Massachusetts Development Finance Agency,
Partners Healthcare Systems, 5.0%, 7/1/31 11,727,727
1,000,000 Massachusetts Development Finance Agency,
Tufts Medical Center-Series I, 6.75%, 1/1/36 1,175,960
1,000,000 Massachusetts Development Finance Agency,
Tufts University, 4.0%, 8/15/38 1,046,350
1,000,000 Massachusetts Development Finance Agency,
UMass Memorial-Series H, 5.125%, 7/1/26 1,108,090
6,185,000 Massachusetts Development Finance Agency,
WGBH Educational Foundation-Series A, 5.75%,
1/1/42 (AMBAC Insured) 7,858,599
1,680,000 Massachusetts Development Finance Agency,
Wheelock College-Series C, 5.25%, 10/1/29 1,779,809
3,320,000 Massachusetts Development Finance Agency,
Wheelock College-Series C, 5.25%, 10/1/37 3,511,763
1,585,000 Massachusetts Development Finance Agency,
Whitehead Inst Biomedical Research,
5.0%, 6/1/25 1,842,832
4,200,000 Massachusetts Development Finance Agency,
Williams College-Series P, 5.0%, 7/1/43 4,799,802
2,500,000 Massachusetts Development Finance Agency,
Worcester Polytechnic Institute, 4.0%, 9/1/49 2,562,825
1,250,000 Massachusetts Development Finance Agency,
Worcester Polytechnic Institute, 5.0%, 9/1/50 1,395,988
3,220,000 Massachusetts Health & Educational Facilities
Authority, Boston Medical Center, 5.25%, 7/1/38 3,378,166
395,000 Massachusetts Health & Educational Facilities
Authority, Boston Medical Center, 5.25%, 7/1/38
(Pre-Refunded) 436,657
3,400,000 Massachusetts Health & Educational Facilities
Authority, Harvard University-Series A,
5.5%, 11/15/36 3,837,546
2,335,000 Massachusetts Health & Educational Facilities
Authority, Mass Eye & Ear Infirmary -- Series C,
5.375%, 7/1/35 2,600,093
12,000,000 Massachusetts Health & Educational Facilities
Authority, Massachusetts Institute of Technology-
Series K, 5.5%, 7/1/32 16,654,800
1,000,000 Massachusetts Health & Educational Facilities
Authority, Massachusetts Institute of Technology-
Series O, 5.5%, 7/1/36 (Pre-Refunded) 1,112,940
2,000,000 Massachusetts Health & Educational Facilities
Authority, Northeastern University-Series T-2,
4.125%, 10/1/37 2,081,820
1,000,000 Massachusetts Port Authority, 5.0%, 7/1/32 1,171,380
1,000,000 Massachusetts Port Authority, 5.0%, 7/1/33 1,169,210
The accompanying notes are an integral part of these financial statements.
20 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
---------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
7,000,000 Massachusetts School Building Authority,
5.0%, 8/15/29 $ 8,368,850
3,975,000 Massachusetts State College Building Authority,
5.0%, 5/1/28 (ST INTERCEPT Insured) 4,650,034
2,420,000 Massachusetts Water Resources Authority,
5.25%, 8/1/36 (AGM Insured) 3,242,679
5,000,000 Town of Braintree Massachusetts, 5.0%, 5/15/25 (f) 6,299,350
2,000,000 Town of Chatham Massachusetts, 3.5%, 6/15/37 (f) 2,049,900
1,875,000 Town of Lexington Massachusetts, 4.0%, 2/15/21 (f) 2,124,338
1,535,000 Town of Plymouth Massachusetts, 3.375%, 5/1/32 (f) 1,607,007
1,265,000 Town of Plymouth Massachusetts, 3.5%, 5/1/35 (f) 1,316,587
1,590,000 Town of Reading Massachusetts, 3.0%, 4/15/20 (f) 1,705,021
1,385,000 Town of Reading Massachusetts, 3.0%, 4/15/22 (f) 1,510,453
1,625,000 Town of Reading Massachusetts, 3.0%, 4/15/23 (f) 1,779,066
4,000,000 Town of Wellesley Massachusetts, 4.0%, 6/1/45 (f) 4,248,280
4,500,000 Town of Wilmington Massachusetts, 4.0%, 3/15/37 (f) 4,713,930
2,500,000 University of Massachusetts Building Authority,
5.0%, 11/1/39 2,885,875
4,160,000 Woods Hole Marthas Vineyard & Nantucket
Steamship Authority, 4.0%, 3/1/28 (ST GTD Insured) 4,690,109
---------------
$ 166,546,982
---------------------------------------------------------------------------------------------------------------
Michigan -- 0.4%
1,265,000 John Tolfree Health System Corp., 6.0%, 9/15/23 $ 1,266,113
3,125,000 Michigan Public Educational Facilities Authority,
Ltd Oblig-David Ellis-West Project, 5.875%, 6/1/37 3,134,906
---------------
$ 4,401,019
---------------------------------------------------------------------------------------------------------------
Minnesota -- 0.3%
600,000 University of Minnesota, 4.0%, 1/1/20 $ 665,916
1,000,000 University of Minnesota, 4.0%, 1/1/29 1,102,810
860,000 University of Minnesota, 4.0%, 1/1/30 943,205
---------------
$ 2,711,931
---------------------------------------------------------------------------------------------------------------
Mississippi -- 0.3%
2,750,000 County of Warren Mississippi, International Paper
Co-Series A, 5.8%, 5/1/34 $ 3,057,038
---------------------------------------------------------------------------------------------------------------
Missouri -- 1.6%
2,500,000 Health & Educational Facilities Authority of the
State of Missouri, CoxHealth Hospital, Series A,
5.0%, 11/15/35 $ 2,819,550
4,000,000 Health & Educational Facilities Authority of the State
of Missouri, Mercy Health-Series F, 4.0%, 11/15/45 4,096,000
2,000,000 Missouri Development Finance Board, City of
Indepenence -- Annual Appropriation Sewer System,
5.25%, 11/1/42 2,239,340
75,000 Missouri State Environmental Improvement & Energy
Resources Authority, Unrefunded Balance State
Revolving, 5.125%, 1/1/20 75,312
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 21
Schedule of Investments | 12/31/15 (continued)
---------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------------
Missouri -- (continued)
5,500,000 University of Missouri, 5.0%, 11/1/25 $ 6,896,340
---------------
$ 16,126,542
---------------------------------------------------------------------------------------------------------------
New Hampshire -- 0.9%
5,000,000 New Hampshire Health and Education Facilities
Authority Act, Southern NH Medical Center-Series A,
5.0%, 10/1/32 $ 5,276,050
3,750,000 New Hampshire Health and Education Facilities
Authority Act, Southern NH Medical Center-Series A,
5.0%, 10/1/37 3,949,725
---------------
$ 9,225,775
---------------------------------------------------------------------------------------------------------------
New Jersey -- 1.1%
475,000 New Jersey Economic Development Authority, First
Mortgage-Seashore Gardens Project, 5.3%, 11/1/26 $ 429,058
3,000,000 New Jersey Educational Facilities Authority, Princeton
University-Series B, 5.0%, 7/1/39 3,384,810
5,115,000 New Jersey Health Care Facilities Financing Authority,
Trinitas Hospital Oblig Grp-Series A, 5.25%, 7/1/30 5,343,180
2,000,000 New Jersey Transportation Trust Fund Authority,
Transportation System-Series A, 5.5%, 6/15/41
(ST APPROP Insured) 2,166,060
---------------
$ 11,323,108
---------------------------------------------------------------------------------------------------------------
New York -- 2.4%
2,500,000 Albany Industrial Development Agency, St Peters
Hospital Project-Series A, 5.25%, 11/15/32 $ 2,706,675
10,000,000 New York Counties Tobacco Trust V, 6/1/38 (c) 2,530,500
5,015,000 New York State Dormitory Authority, 5.0%, 3/15/31 5,994,530
5,030,000 New York State Dormitory Authority, Columbia
University, 5.0%, 10/1/41 5,847,174
5,515,000 New York State Dormitory Authority, Insured-FIT
Student Housing Corp., 5.25%, 7/1/24
(NATL Insured) 6,430,986
1,500,000 Port Authority of New York & New Jersey,
Consolidated Ninety-Third Series, 6.125%, 6/1/94 1,848,885
---------------
$ 25,358,750
---------------------------------------------------------------------------------------------------------------
North Carolina -- 0.5%
3,000,000 City of Charlotte North Carolina Storm Water
Revenue, 4.0%, 12/1/43 $ 3,201,630
2,000,000 City of Raleigh North Carolina, 5.0%, 9/1/20 (f) 2,341,880
---------------
$ 5,543,510
---------------------------------------------------------------------------------------------------------------
North Dakota -- 0.5%
5,000,000 County of McLean North Dakota, Great River Energy-
Series B, 5.15%, 7/1/40 $ 5,315,900
---------------------------------------------------------------------------------------------------------------
Ohio -- 3.9%
10,000,000 Buckeye Tobacco Settlement Financing Authority,
5.75%, 6/1/34 $ 8,720,300
The accompanying notes are an integral part of these financial statements.
22 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
---------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------------
Ohio -- (continued)
6,000,000 Buckeye Tobacco Settlement Financing Authority,
6.5%, 6/1/47 $ 5,573,160
1,500,000 County of Cuyahoga Ohio, Eliza Jennings Senior
Care-Series A, 6.0%, 5/15/37 1,527,315
1,500,000 County of Cuyahoga Ohio, Eliza Jennings Senior
Care-Series A, 6.0%, 5/15/42 1,526,325
800,000 County of Lake Ohio, 6.0%, 8/15/43 880,680
4,200,000 County of Lake Ohio, 6.0%, 8/15/43
(Pre-Refunded) 4,743,900
10,000,000 JobsOhio Beverage System, 5.0%, 1/1/38 11,335,300
5,000,000 State of Ohio, Common Schools, Series B,
5.0%, 6/15/29 (f) 5,956,350
---------------
$ 40,263,330
---------------------------------------------------------------------------------------------------------------
Oklahoma -- 0.4%
4,240,000 McGee Creek Authority, 6.0%, 1/1/23 (NATL Insured) $ 4,670,106
---------------------------------------------------------------------------------------------------------------
Oregon -- 0.6%
3,000,000 Deschutes & Jefferson Counties School District
No. 2J Redmond Oregon, 3.0%, 6/15/32 (f)
(SCH BD GTY Insured) $ 3,062,820
2,000,000 Multnomah County School District No. 40,
6/15/30 (c) (f) (SCH BD GTY Insured) 1,254,980
2,000,000 Multnomah County School District No. 40,
6/15/31 (c) (f) (SCH BD GTY Insured) 1,206,100
1,715,000 Multnomah County School District No. 40,
6/15/32 (c) (f) (SCH BD GTY Insured) 991,784
---------------
$ 6,515,684
---------------------------------------------------------------------------------------------------------------
Pennsylvania -- 3.6%
50,000 Allentown Area Hospital Authority, Sacred Heart
Hospital, 6.0%, 11/15/16 (Pre-Refunded) $ 52,382
5,250,000 3.50 Beaver County Industrial Development Authority,
FirstEnergy Nuclear-Series B, Floating Rate Note,
12/1/35 5,348,122
5,000,000 Lehigh County Industrial Development Authority,
PPL Electric Utilities Corp Project, 4.75%, 2/15/27
(NATL Insured) 5,006,900
1,000,000 Montgomery County Industrial Development
Authority Pennsylvania, Foulkeways At Gwynedd
Project-Series A, 5.0%, 12/1/24 1,014,250
1,000,000 Montgomery County Industrial Development
Authority Pennsylvania, Foulkeways At Gwynedd
Project-Series A, 5.0%, 12/1/30 1,013,010
1,000,000 Pennsylvania Higher Educational Facilities Authority,
Edinboro University Foundation, 6.0%, 7/1/43 1,078,210
11,500,000 0.87 Pennsylvania Higher Educational Facilities Authority,
Foundation Indiana University PA-Series A,
Floating Rate Note, 7/1/39 (XLCA Insured) 9,156,760
4,750,000 Pennsylvania Higher Educational Facilities Authority,
Thomas Jefferson University, 5.0%, 9/1/39 5,359,995
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 23
Schedule of Investments | 12/31/15 (continued)
---------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------------
Pennsylvania -- (continued)
1,000,000 Pennsylvania Higher Educational Facilities Authority,
University Pptys., Inc., East Stroudsburg,
5.0%, 7/1/42 $ 1,028,780
5,000,000 Pennsylvania Turnpike Commission, 5.3%, 12/1/41 5,571,050
2,500,000 Philadelphia Authority for Industrial Development,
Children's Hospital Philadelphia Project Series A,
5.0%, 7/1/42 2,828,600
---------------
$ 37,458,059
---------------------------------------------------------------------------------------------------------------
South Carolina -- 1.6%
5,000,000 County of Florence South Carolina, 4.0%,
6/1/20 (f) (ST AID WITHHLDG Insured) $ 5,576,250
1,000,000 SCAGO Educational Facilities Corp for Pickens
School District, 3.25%, 12/1/28 1,012,690
8,265,000 South Carolina State Public Service Authority,
Santee Cooper-Series D, 5.0%, 12/1/43 9,096,376
500,000 State of South Carolina, 5.0%, 4/1/20 (f) 579,165
---------------
$ 16,264,481
---------------------------------------------------------------------------------------------------------------
South Dakota -- 0.0%+
65,000 South Dakota Conservancy District, State Revolving
Fund-Series A, 5.625%, 8/1/17 (Pre-Refunded) $ 65,298
---------------------------------------------------------------------------------------------------------------
Texas -- 12.4%
7,100,000 Central Texas Regional Mobility Authority, 1/1/25 (c) $ 5,073,092
3,550,000 Central Texas Regional Mobility Authority, 1/1/26 (c) 2,422,094
3,000,000 Central Texas Regional Mobility Authority, 1/1/27 (c) 1,963,680
2,500,000 Central Texas Regional Mobility Authority,
6.75%, 1/1/41 2,980,925
5,000,000 City of Pearland Texas, 4.0%, 3/1/29 (f) 5,389,300
11,900,000 Dallas Area Rapid Transit, 5.0%, 12/1/33 14,180,516
8,285,000 Dallas Area Rapid Transit, 5.25%, 12/1/29
(AMBAC Insured) 10,701,652
10,000,000 Dallas County Utility & Reclamation District,
5.375%, 2/15/29 (f) (AMBAC Insured) 10,403,500
5,080,000 Eagle Mountain & Saginaw Independent School
District, 3.0%, 8/15/29 (f) (PSF-GTD Insured) 5,168,036
1,000,000 Harris County Cultural Education Facilities Finance
Corp., YMCA Greater Houston Area-Series,
5.0%, 6/1/28 1,110,080
500,000 Harris County Cultural Education Facilities Finance
Corp., YMCA Greater Houston Area-Series,
5.0%, 6/1/33 544,175
2,750,000 Houston Higher Education Finance Corp., Rice
University Project-Series A, 5.0%, 5/15/35 3,144,488
5,000,000 Lubbock-Cooper Independent School District,
4.0%, 2/15/49 (f) (PSF-GTD Insured) 5,275,650
4,000,000 North Texas Tollway Authority, 5.0%, 1/1/30 4,706,240
5,000,000 North Texas Tollway Authority, 5.0%, 1/1/35 5,741,100
2,000,000 North Texas Tollway Authority, 5.0%, 1/1/38 2,225,120
The accompanying notes are an integral part of these financial statements.
24 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
---------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------------
Texas -- (continued)
7,525,000 State of Texas, 5.0%, 4/1/29 (f) $ 9,059,272
4,000,000 Texas Municipal Gas Acquisition & Supply Corp. III,
5.0%, 12/15/31 4,393,400
10,410,000 Texas Private Activity Bond Surface Transportation
Corp., Senior Lien-LBJ Infrastructure, 7.0%, 6/30/40 12,629,828
2,755,000 Texas State Public Finance Authority Charter School
Finance Corp., Education-Cosmos Foundation
Inc.-Series A, 6.2%, 2/15/40 3,302,143
4,500,000 Texas Transportation Commission State Highway
Fund, 5.0%, 4/1/23 5,505,480
6,100,000 The University of Texas System, 5.0%, 8/15/20 7,128,765
5,000,000 The University of Texas System, 5.0%, 8/15/24 6,239,800
---------------
$ 129,288,336
---------------------------------------------------------------------------------------------------------------
Utah -- 0.6%
500,000 Utah State Charter School Finance Authority,
North Davis Preparatory, 5.75%, 7/15/20 $ 534,270
4,835,000 Utah Transit Authority, 5.0%, 6/15/31 5,874,477
---------------
$ 6,408,747
---------------------------------------------------------------------------------------------------------------
Virginia -- 6.1%
10,450,000 County of Fairfax Virginia, 4.0%, 10/1/34 (f)
(ST AID WITHHLDG Insured) $ 11,416,834
14,990,000 Tobacco Settlement Financing Corp. Virginia,
5.0%, 6/1/47 11,712,137
10,000,000 University of Virginia, 4.0%, 4/1/45 10,652,300
4,000,000 University of Virginia, 5.0%, 6/1/37 4,678,960
5,000,000 University of Virginia, 5.0%, 6/1/43 5,790,000
5,000,000 Upper Occoquan Sewage Authority, 4.0%, 7/1/41 5,333,900
5,000,000 Virginia Public School Authority, 4.0%, 8/1/25
(ST AID WITHHLDG Insured) 5,770,150
7,500,000 Washington County Industrial Development
Authority Virginia, Mountain States Health Alliance-
Series C, 7.75%, 7/1/38 8,568,150
---------------
$ 63,922,431
---------------------------------------------------------------------------------------------------------------
Washington -- 6.9%
10,000,000 FYI Properties, Washington State District Project,
5.5%, 6/1/39 $ 11,205,700
10,000,000 King County Housing Authority, Birch Creek Apts
Project, 5.5%, 5/1/38 10,890,200
3,000,000 King County Public Hospital District No. 1,
5.25%, 12/1/37 (f) 3,237,600
3,000,000 King County School District No. 411 Issaquah,
4.5%, 12/1/30 (f) (SCH BD GTY Insured) 3,428,550
1,500,000 Public Utility District No. 1 of Franklin County,
5.0%, 9/1/38 1,698,555
10,390,000 State of Washington, 5.0%, 7/1/30 (f) 12,485,767
5,000,000 State of Washington, 5.0%, 8/1/36 (f) 5,817,250
6,685,000 University of Washington, 5.0%, 6/1/28 8,221,146
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 25
Schedule of Investments | 12/31/15 (continued)
---------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------------
Washington -- (continued)
5,600,000 University of Washington, 5.0%, 6/1/37
(Pre-Refunded) (AMBAC Insured) $ 5,936,616
5,000,000 Washington Health Care Facilities Authority,
Providence Health -- Series C, 5.25%, 10/1/33
(AGM Insured) 5,485,200
2,400,000 Washington Health Care Facilities Authority, VA
Mason Medical-Series A, 6.125%, 8/15/37 2,569,968
620,000 Washington State Housing Finance Commission,
Skyline At First Hill Project-Series A, 5.25%, 1/1/17 625,946
---------------
$ 71,602,498
---------------------------------------------------------------------------------------------------------------
Wisconsin -- 0.5%
1,430,000 Adams-Friendship Area School District,
6.5%, 4/1/16 (f) (AMBAC Insured) $ 1,451,436
3,000,000 Wisconsin Health & Educational Facilities Authority,
Ministry Health Care, Inc. -- Series B 5.125%,
8/15/35 3,319,561
---------------
$ 4,770,997
---------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $921,780,879) $ 979,488,135
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
Shares
---------------------------------------------------------------------------------------------------------------
EXCHANGE TRADED FUND -- 2.9%
DIVERSIFIED FINANCIALS -- 2.9%
Other Diversified Financial Services -- 2.9%
30,000,000 BlackRock Liquidity Funds MuniFund Portfolio $ 30,000,000
---------------------------------------------------------------------------------------------------------------
TOTAL EXCHANGE TRADED FUND
(Cost $30,000,000) $ 30,000,000
---------------------------------------------------------------------------------------------------------------
CLAIM -- 0.0%+
COMMERCIAL SERVICES & SUPPLIES -- 0.0%+
Research & Consulting Services -- 0.0%+
200 CMS Liquidating Trust* $ 550,050
---------------------------------------------------------------------------------------------------------------
Total Commercial Services & Supplies $ 550,050
---------------------------------------------------------------------------------------------------------------
TOTAL CLAIM
(Cost $640,000) $ 550,050
---------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 97.0%
(Cost $952,420,879) (a) $ 1,010,038,185
---------------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 3.0% $ 31,107,687
---------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 1,041,145,872
===============================================================================================================
+ Amount rounds to less than 0.1%.
* Non-income producing security.
The accompanying notes are an integral part of these financial statements.
26 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
(Pre-Refunded) Pre-Refunded bonds have been collateralized by U.S. Treasury
securities which are held in escrow and used to pay principal and
interest on the tax-exempt issue and to retire the bonds in full
at the earliest refunding date.
(a) At December 31, 2015, the net unrealized appreciation on
investments based on cost for federal income tax purposes of
$951,791,175 was as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $59,278,194
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (1,031,184)
-----------
Net unrealized appreciation $58,247,010
===========
(b) Debt obligation with a variable interest rate. Rate shown is rate
at end of period.
(c) Security is issued with a zero coupon. Income is earned through
accretion of discount.
(d) Security is in default.
(e) Consists of Revenue Bonds unless otherwise indicated.
(f) Represents a General Obligation Bond.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended December 31, 2015 were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government Securities $ 87,007,083 $ 87,008,250
Other Long-Term Securities $322,154,378 $114,510,465
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of December 31, 2015, in
valuing the Fund's investments:
----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------
Municipal Bonds $ -- $ 979,488,135 $ -- $ 979,488,135
Exchange Traded Fund 30,000,000 -- -- 30,000,000
Claim -- 550,050 -- 550,050
----------------------------------------------------------------------------------------------
Total $ 30,000,000 $ 980,038,185 $ -- $ 1,010,038,185
==============================================================================================
During the year ended December 31, 2015, there were no transfers between Levels
1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 27
Statement of Assets and Liabilities | 12/31/15
ASSETS:
Investment in securities (cost $952,420,879) $1,010,038,185
Cash 18,220,336
Receivables --
Investment securities sold 1,065,000
Fund shares sold 2,387,326
Interest 11,826,109
Due from Pioneer Investment Management, Inc. 54,123
Other assets 35,983
-----------------------------------------------------------------------------------------------
Total assets $1,043,627,062
===============================================================================================
LIABILITIES:
Payables --
Fund shares repurchased $ 1,222,213
Distributions 1,054,673
Due to affiliates 114,406
Accrued expenses 89,898
-----------------------------------------------------------------------------------------------
Total liabilities $ 2,481,190
===============================================================================================
NET ASSETS:
Paid-in capital $1,025,199,817
Undistributed net investment income 3,573,633
Accumulated net realized loss on investments (45,244,884)
Net unrealized appreciation on investments 57,617,306
-----------------------------------------------------------------------------------------------
Total net assets $1,041,145,872
===============================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (Based on $709,615,951/48,589,720 shares) $ 14.60
Class C (Based on $54,752,287/3,780,667 shares) $ 14.48
Class Y (Based on $276,777,634/19,010,975 shares) $ 14.56
MAXIMUM OFFERING PRICE:
Class A ($14.60 (divided by) 95.5%) $ 15.29
===============================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
Statement of Operations
For the Year Ended 12/31/15
INVESTMENT INCOME:
Interest $ 38,803,050
-------------------------------------------------------------------------------------------------
Total investment income $ 38,803,050
=================================================================================================
EXPENSES:
Management fees $ 4,482,744
Transfer agent fees
Class A 183,033
Class C 3,901
Class Y 1,957
Distribution fees
Class A 1,744,141
Class C 502,785
Shareholder communication expense 540,888
Administrative expense 303,484
Custodian fees 14,365
Registration fees 85,362
Professional fees 83,841
Printing expense 38,009
Fees and expenses of nonaffiliated Trustees 43,265
Miscellaneous 118,065
-------------------------------------------------------------------------------------------------
Total expenses $ 8,145,840
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. $ (276,888)
-------------------------------------------------------------------------------------------------
Net expenses $ 7,868,952
-------------------------------------------------------------------------------------------------
Net investment income $ 30,934,098
-------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments $ 1,087,526
-------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation)
on investments $ 10,693,964
-------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ 11,781,490
-------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 42,715,588
=================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 29
Statements of Changes in Net Assets
---------------------------------------------------------------------------------------------------
Year Year
Ended Ended
12/31/15 12/31/14
---------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 30,934,098 $ 27,516,091
Net realized gain (loss) on investments and class actions 1,087,526 19,321,508
Change in net unrealized appreciation (depreciation)
on investments 10,693,964 53,346,370
---------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 42,715,588 $ 100,183,969
---------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.53 and $0.54 per share, respectively) $ (25,534,747) $ (26,218,236)
Class B ($0.00 and $0.36 per share, respectively)* -- (43,567)
Class C ($0.42 and $0.43 per share, respectively) (1,463,905) (1,236,633)
Class Y ($0.57 and $0.58 per share, respectively) (9,698,538) (2,941,686)
---------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (36,697,190) $ (30,440,122)
---------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 382,567,032 $ 122,973,311
Reinvestment of distributions 25,155,007 23,598,257
Cost of shares repurchased (216,944,808) (117,870,871)
---------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 190,777,231 $ 28,700,697
---------------------------------------------------------------------------------------------------
Net increase in net assets $ 196,795,629 $ 98,444,544
NET ASSETS:
Beginning of year $ 844,350,243 $ 745,905,699
---------------------------------------------------------------------------------------------------
End of year $ 1,041,145,872 $ 844,350,243
===================================================================================================
Undistributed net investment income $ 3,573,633 $ 9,342,075
===================================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
30 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
---------------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
12/31/15 12/31/15 12/31/14 12/31/14
Shares Amount Shares Amount
---------------------------------------------------------------------------------------------------
Class A
Shares sold 4,720,633 $ 68,378,870 3,894,837 $ 55,137,119
Reinvestment of distributions 1,375,171 19,866,929 1,435,854 20,338,345
Less shares repurchased (5,746,525) (82,804,796) (6,061,669) (85,464,546)
---------------------------------------------------------------------------------------------------
Net increase (decrease) 349,279 $ 5,441,003 (730,978) $ (9,989,082)
===================================================================================================
Class B*
Shares exchanged -- $ -- 2,460 $ 34,873
Reinvestment of distributions -- -- 2,080 29,042
Less shares repurchased -- -- (146,823) (2,076,618)
---------------------------------------------------------------------------------------------------
Net decrease -- $ -- (142,283) $ (2,012,703)
===================================================================================================
Class C
Shares sold 953,781 $ 13,697,345 997,000 $ 14,074,993
Reinvestment of distributions 81,505 1,167,507 70,611 992,444
Less shares repurchased (575,775) (8,231,221) (584,153) (8,111,620)
---------------------------------------------------------------------------------------------------
Net increase 459,511 $ 6,633,631 483,458 $ 6,955,817
===================================================================================================
Class Y
Shares sold 20,776,039 $ 300,490,817 3,786,155 $ 53,726,326
Reinvestment of distributions 286,196 4,120,571 158,251 2,238,426
Less shares repurchased (8,795,144) (125,908,791) (1,572,853) (22,218,087)
---------------------------------------------------------------------------------------------------
Net increase 12,267,091 $ 178,702,597 2,371,553 $ 33,746,665
===================================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 31
Financial Highlights
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/15 12/31/14 12/31/13 12/31/12 12/31/11
---------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 14.49 $ 13.25 $ 14.56 $ 13.40 $ 12.56
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.44(d) $ 0.49 $ 0.61 $ 0.61 $ 0.62
Net realized and unrealized gain (loss) on investments 0.20 1.29 (1.37) 1.09 0.82
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.64 $ 1.78 $ (0.76) $ 1.70 $ 1.44
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.53) $ (0.54) $ (0.55) $ (0.54) $ (0.60)
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.53) $ (0.54) $ (0.55) $ (0.54) $ (0.60)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.11 $ 1.24 $ (1.31) $ 1.16 $ 0.84
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.60 $ 14.49 $ 13.25 $ 14.56 $ 13.40
===========================================================================================================================
Total return* 4.51% 13.61%(b) (5.33)% 12.87%(a) 11.73%
Ratio of net expenses to average net assets (c) 0.82% 0.83% 0.82% 0.82% 0.82%
Ratio of net investment income (loss) to average net assets 3.08% 3.46% 4.16% 4.35% 4.77%
Portfolio turnover rate 21% 29% 15% 17% 14%
Net assets, end of period (in thousands) $709,616 $699,229 $649,007 $824,216 $767,290
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.83% 0.85% 0.84% 0.83% 0.87%
Net investment income (loss) to average net assets 3.07% 3.44% 4.14% 4.33% 4.72%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(a) If the Fund had not recognized gains in settlement of class action lawsuits
during the year ended December 31, 2012, the total return would have been
12.64%.
(b) If the Fund had not recognized gains in settlement of class action lawsuits
during the year ended December 31, 2014, the total return would have been
13.53%.
(c) Includes interest expense of 0.00%, 0.01%, 0.00%, 0.00% and 0.00%,
respectively.
(d) The per share data presented above is based on the average shares
outstanding for the period.
The accompanying notes are an integral part of these financial statements.
32 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/15 12/31/14 12/31/13 12/31/12 12/31/11
----------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 14.37 $ 13.14 $ 14.44 $ 13.29 $ 12.46
----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.33(d) $ 0.36 $ 0.49 $ 0.49 $ 0.51
Net realized and unrealized gain (loss) on investments 0.20 1.30 (1.35) 1.09 0.81
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.53 $ 1.66 $ (0.86) $ 1.58 $ 1.32
----------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.42) $ (0.43) $ (0.44) $ (0.43) $ (0.49)
----------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.42) $ (0.43) $ (0.44) $ (0.43) $ (0.49)
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.11 $ 1.23 $ (1.30) $ 1.15 $ 0.83
----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.48 $ 14.37 $ 13.14 $ 14.44 $ 13.29
======================================================================================================================
Total return* 3.74% 12.75%(b) (6.05)% 12.03%(a) 10.84%
Ratio of net expenses to average net assets (c) 1.56% 1.60% 1.59% 1.58% 1.61%
Ratio of net investment income (loss) to average net assets 2.33% 2.69% 3.39% 3.58% 3.98%
Portfolio turnover rate 21% 29% 15% 17% 14%
Net assets, end of period (in thousands) $54,752 $47,734 $37,291 $45,106 $37,834
======================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(a) If the Fund had not recognized gains in settlement of class action lawsuits
during the year ended December 31, 2012, the total return would have been
11.87%.
(b) If the Fund had not recognized gains in settlement of class action lawsuits
during the year ended December 31, 2014, the total return would have been
12.67%.
(c) Includes interest expense of 0.00%, 0.01%, 0.00%, 0.00% and 0.00%,
respectively.
(d) The per share data presented above is based on the average shares
outstanding for the period.
The accompanying notes are an integral part of these financial statements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 33
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/15 12/31/14 12/31/13 12/31/12 12/31/11
-----------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 14.44 $ 13.21 $ 14.52 $ 13.37 $ 12.53
-----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.48(d) $ 0.46 $ 0.68 $ 0.63 $ 0.67
Net realized and unrealized gain (loss) on investments 0.21 1.35 (1.41) 1.10 0.80
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.69 $ 1.81 $ (0.73) $ 1.73 $ 1.47
-----------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.57) $ (0.58) $ (0.58) $ (0.58) $ (0.63)
-----------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.57) $ (0.58) $ (0.58) $ (0.58) $ (0.63)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.12 $ 1.23 $ (1.31) $ 1.15 $ 0.84
-----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.56 $ 14.44 $ 13.21 $ 14.52 $ 13.37
=======================================================================================================================
Total return* 4.86% 13.86%(b) (5.10)% 13.12%(a) 12.04%
Ratio of net expenses to average net assets (c) 0.55% 0.56% 0.55% 0.55% 0.55%
Ratio of net investment income (loss) to average net assets 3.34% 3.70% 4.41% 4.60% 5.04%
Portfolio turnover rate 21% 29% 15% 17% 14%
Net assets, end of period (in thousands) $276,778 $97,387 $57,739 $86,296 $65,896
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.64% 0.65% 0.67% 0.58% 0.57%
Net investment income (loss) to average net assets 3.25% 3.61% 4.29% 4.57% 5.02%
=======================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
(a) If the Fund had not recognized gains in settlement of class action lawsuits
during the year ended December 31, 2012, the total return would have been
12.85%.
(b) If the Fund had not recognized gains in settlement of class action lawsuits
during the year ended December 31, 2014, the total return would have been
13.78%.
(c) Includes interest expense of 0.00%, 0.01%, 0.00%, 0.00% and 0.00%,
respectively.
(d) The per share data presented above is based on the average shares
outstanding for the period.
The accompanying notes are an integral part of these financial statements.
34 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
Notes to Financial Statements | 12/31/15
1. Organization and Significant Accounting Policies
Pioneer AMT-Free Municipal Fund (the Fund) is one of two series comprising
Pioneer Series Trust II, a Delaware statutory trust. The Fund is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is to seek a high level
of current income exempt from federal income tax as is consistent with the
relative stability of capital.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Class B shares were converted to Class A shares as of the close of
business on November 10, 2014. Each class of shares represents an interest in
the same portfolio of investments of the Fund and has identical rights (based on
relative net asset values) to assets and liquidation proceeds. Share classes can
bear different rates of class-specific fees and expenses such as transfer agent
and distribution fees. Differences in class-specific fees and expenses will
result in differences in net investment income and, therefore, the payment of
different dividends from net investment income earned by each class. The Amended
and Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses, and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements:
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the New
York Stock Exchange (NYSE) is open, as of the close of regular trading on
the NYSE.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 35
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed income securities and/or other
factors. Valuations may be supplemented by dealers and other sources, as
required. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service.
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such funds' net asset value. Repurchase
agreements are valued at par. Cash may include overnight time deposits at
approved financial institutions.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. PIM's fair
valuation team is responsible for monitoring developments that may impact
fair valued securities and for discussing and assessing fair values on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
At December 31, 2015, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services or broker-dealers).
36 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
B. Investment Income and Transactions
Discount and premium on purchase prices of debt securities are accreted or
amortized, respectively, daily into interest income on a yield-to-maturity
basis over the life of the respective security with a corresponding
increase or decrease in the cost basis of the security. Interest income,
including interest on income bearing cash accounts, is recorded on the
accrual basis.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no provision for federal income taxes is
required. As of December 31, 2015, the Fund did not accrue any interest or
penalties with respect to uncertain tax positions, which, if applicable,
would be recorded as an income tax expense in the Statement of Operations.
Tax returns filed within the prior three years remain subject to
examination by federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences. At
December 31, 2015, the Fund reclassified $5,350 to decrease undistributed
net investment income, $3,076,964 to decrease accumulated net realized loss
on investments and $3,071,614 to decrease paid-in capital to reflect
permanent book/tax differences. These adjustments have no impact on net
assets, or the results of operations.
At December 31, 2015, the Fund had a net capital loss carryforward of
$45,244,884, of which, the following amounts will expire between 2016 and
2017 if not utilized: $31,743,687 in 2016 and $13,501,197 in 2017. Included
in this amount is $41,337,301 of capital losses which, as a result of the
reorganization with Pioneer Tax Free Income Fund on March 5, 2010 may be
subject to limitations imposed by the Internal Revenue Code. Since
unlimited losses are required to be used first, loss carryforwards that are
subject to expiration may be more likely to expire unused.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 37
During the year ended December 31, 2015, a capital loss carryforward of
$1,092,876 was utilized to offset net realized gains by the fund.
The tax character of distributions paid during the years ended December 31,
2015 and December 31, 2014 were as follows:
---------------------------------------------------------------------------
2015 2014
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 312,500 $ 2,038,786
Tax-exempt income 36,384,690 28,401,336
---------------------------------------------------------------------------
Total $ 36,697,190 $ 30,440,122
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at December 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 2,943,929
Capital loss carryforward (45,244,884)
Net unrealized appreciation 58,247,010
---------------------------------------------------------------------------
Total $ 15,946,055
===========================================================================
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax treatment of premium and amortization.
D. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.,
(UniCredit), earned $48,385 in underwriting commissions on the sale of
Class A shares during the year ended December 31, 2015.
E. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the Fund's transfer agent, for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
38 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
F. Risks
The municipal bond market can be susceptible to unusual volatility,
particularly for lower-rated and unrated securities. Liquidity can be
reduced unpredictably in response to overall economic conditions or credit
tightening. Municipal issuers may be adversely affected by rising health
care costs, increasing unfunded pension liabilities, and by the phasing out
of federal programs providing financial support. Unfavorable conditions and
developments relating to projects financed with municipal securities can
result in lower revenues to issuers of municipal securities, potentially
resulting in defaults. Issuers often depend on revenues from these projects
to make principal and interest payments. The value of municipal securities
can also be adversely affected by changes in the financial condition of one
or more individual municipal issuers or insurers of municipal issuers,
regulatory and political developments, tax law changes or other legislative
actions, and by uncertainties and public perceptions concerning these and
other factors. Municipal securities may be more susceptible to down-grades
or defaults during recessions or similar periods of economic stress. In
recent periods, an increasing number of municipal issuers in the United
States have defaulted on obligations and commenced insolvency proceedings.
Financial difficulties of municipal issuers may continue or get worse. To
the extent the Fund invests significantly in a single state, including
California, Massachusetts and Texas, or in securities the payments on which
are dependent upon a single project or source of revenues, or that relate
to a sector or industry, including health care facilities, education,
transportation, special revenues and pollution control, the Fund will be
more susceptible to associated risks and developments.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's prospectus
contains unaudited information regarding the Fund's principal risks. Please
refer to that document when considering the Fund's principal risks.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 39
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.50% of
the Fund's average daily net assets up to $250 million; 0.45% of the next $500
million of the Fund's average daily net assets; and 0.40% of the Fund's average
daily net assets over $750 million. For the year ended December 31, 2015, the
effective management fee (excluding waivers and/or assumption of expenses) was
equivalent to 0.45% of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund to
the extent required to reduce Fund expenses to 0.82%, 1.72% and 0.55% of the
average daily net assets attributable to Class A, Class C and Class Y shares,
respectively. Fees waived and expenses reimbursed during the year ended December
31, 2015 are reflected on the Statement of Operations. These expense limitations
are in effect through May 1, 2017 for Class A and Class Y shares and were in
effect through May 1, 2015 for Class C shares. There can be no assurance that
PIM will extend the expense limit agreement for a class of shares beyond the
date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$22,535 in management fees, administrative costs and certain other
reimbursements payable to PIM at December 31, 2015.
3. Transfer Agent
Prior to November 2, 2015, Pioneer Investment Management Shareholder Services,
Inc. (PIMSS), a wholly owned indirect subsidiary of UniCredit, provided
substantially all transfer agent and shareowner services to the Fund at
negotiated rates.
Effective November 2, 2015, Boston Financial Data Services serves as the
transfer agent to the fund at negotiated rates.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings, outgoing phone calls and omnibus
relationship contracts. For the year ended December 31, 2015, such out-of-pocket
expenses by class of shares were as follows:
40 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 221,177
Class C 17,692
Class Y 302,019
--------------------------------------------------------------------------------
Total $ 540,888
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $79,191 in transfer agent fees and out-of-pocket reimbursements
payable to the transfer agent at December 31, 2015.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets
attributable to Class A shares as compensation for personal services and/or
account maintenance services or distribution services with regard to Class A
shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $12,680 in distribution fees payable to
PFD at December 31, 2015.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSC are paid to PFD. For the
year ended December 31, 2015, CDSC in the amount of $5,037 were paid to PFD.
5. Expense Offset Arrangements
The Fund entered into certain expense offset arrangements with PIMSS. For the
year ended December 31, 2015, the Fund's expenses were not reduced under such
arrangements.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 41
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until June 9, 2015 was in the amount of $215 million.
As of June 9, 2015, the facility is in the amount of $240 million. Under such
facility, depending on the type of loan, interest on borrowings is payable at
the London Interbank Offered Rate (LIBOR) plus 0.85% on an annualized basis, or
the alternate base rate, which is the greater of (a) the facility's
administrative agent's daily announced prime rate on the borrowing date, (b) 2%
plus the federal funds rate on the borrowing date and (c) 2% plus the overnight
eurodollar rate on the borrowing date. The Funds pay an annual commitment fee to
participate in the credit facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement.
For the year ended December 31, 2015, the average daily amount of borrowings
outstanding during the period was $9,250,000. The related weighted average
annualized interest rate for the period was 0.98%, and the total interest
expense on such borrowings was $1,511, which is included in miscellaneous
expense, located on the Statement of Operations. As of December 31, 2015, there
were no borrowings outstanding.
7. Conversion of Class B Shares
As of the close of business on November 10, 2014, all outstanding Class B shares
of the Fund were converted to Class A shares.
42 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust II and Shareowners of
Pioneer AMT-Free Municipal Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer AMT-Free Municipal Fund (the "Fund")
(one of the funds constituting Pioneer Series Trust II), as of December 31,
2015, and the related statement of operations for the year then ended and the
statements of changes in net assets and the financial highlights for each of the
two years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights for the years ended December 31,
2013, 2012, and 2011 were audited by other auditors. Those auditors expressed an
unqualified opinion on those financial statements and financial highlights in
their report dated February 25, 2014.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of December 31, 2015, by correspondence with the
custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. 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 AMT-Free Municipal Fund as of December 31, 2015, the results of its
operations for the year then ended and the changes in its net assets and the
financial highlights for each of the two years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
February 23, 2016
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 43
Additional Information (unaudited)
Pioneer Investment Management, Inc. (the "Adviser"), each fund's investment
adviser, is currently an indirect, wholly owned subsidiary of UniCredit S.p.A.
("UniCredit"). On November 11, 2015, UniCredit announced that it signed a
binding master agreement with Banco Santander and affiliates of Warburg Pincus
and General Atlantic (the "Private Equity Firms") with respect to Pioneer
Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as previously announced by UniCredit, will establish a holding
company, with the name Pioneer Investments, to be owned by UniCredit (50%) and
the Private Equity Firms (50% between them). The holding company will control
Pioneer's U.S. operations, including PIM. The holding company also will own
66.7% of Pioneer's and SAM's combined operations outside the U.S., while Banco
Santander will own directly the remaining 33.3% stake. The closing of the
Transaction is expected to happen in 2016, subject to certain regulatory and
other approvals.
Under the Investment Company Act of 1940, completion of the Transaction will
cause each fund's current investment advisory agreement with PIM to terminate.
Accordingly, each fund's Board of Trustees will be asked to approve a new
investment advisory agreement. If approved by the Board, each fund's new
investment advisory agreement will be submitted to the shareholders of the fund
for their approval.
Qualified interest income is exempt from nonresident alien (NRA) tax
withholding. The percentage of the Fund's ordinary income distributions derived
from qualified interest income was 101.4%.
44 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer AMT-Free Municipal Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in January 2015 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2015 and July
2015. Supplemental contract review materials were provided to the Trustees in
September 2015. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year, and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings, in connection with the review of the Fund's
investment advisory agreement.
In March 2015, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In July 2015,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in September
2015.
At a meeting held on September 15, 2015, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In approving the
renewal of the investment advisory agreement, the Trustees
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 45
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed PIM's investment approach
for the Fund and its research process. The Trustees considered the resources of
PIM and the personnel of PIM who provide investment management services to the
Fund. They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. The Trustees considered the non-investment resources and
personnel of PIM involved in PIM's services to the Fund, including PIM's
compliance and legal resources and personnel. The Trustees noted the substantial
attention and high priority given by PIM's senior management to the Pioneer fund
complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the advisory
agreement.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a
46 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
peer group of funds selected on the basis of criteria determined by the
Independent Trustees for this purpose using data provided by Strategic Insight
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the fourth quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoints in the management fee schedule and the
reduced fee rates above certain asset levels. The Trustees considered that the
Fund's management fee was approximately three basis points higher than the
median management fee paid by other funds in its Morningstar peer group. The
Trustees considered that the expense ratio of the Fund's Class A shares for the
most recent fiscal year was in the fourth quintile relative to its Morningstar
peer group and in the third quintile relative its Strategic Insight peer group,
in each case for the comparable period. The Trustees noted that PIM was waiving
fees and/or reimbursing expenses in order to limit the ordinary operating
expenses of the Fund. The Trustees considered that the Fund's expense ratio was
approximately four basis points higher than the median expense ratio paid by
other funds in its Morningstar peer group. The Trustees considered the impact of
transfer agency, sub-transfer agency, and other non-management fee expenses on
the expense ratios of the Fund, and noted the impact of expenses relating to
small accounts and omnibus accounts on transfer and sub-transfer agency expenses
generally. The Trustees noted that they separately review the Fund's transfer
agency, sub-transfer agency and intermediary arrangements.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the Fund that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Fund's other service providers and
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 47
activities related to compliance and the extensive regulatory and tax regimes to
which the Fund is subject. The Trustees also considered the different
entrepreneurial risks associated with PIM's management of the Fund and Pioneer's
management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoints in the management fee schedule. The Trustees recognize
that economies of scale are difficult to identify and quantify, and that, among
other factors that may be relevant, are the following: fee levels, expense
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Fund. The Trustees noted that
profitability also may be an indicator of the availability of any economies of
scale, although profitability may vary for other reasons including reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business.
48 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
Pioneer is the principal U.S. asset management business of Pioneer Global Asset
Management, the worldwide asset management business of UniCredit Group, which
manages over $150 billion in assets (including the Funds). Pioneer and the Funds
receive reciprocal intangible benefits from the relationship, including mutual
brand recognition and, for the Funds, direct and indirect access to the
resources of a large global asset manager. The Trustees concluded that any such
benefits received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 49
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations during at least the past five years. Trustees who are interested
persons of the Fund within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the Fund are
referred to as Independent Trustees. Each of the Trustees serves as a trustee of
each of the 50 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
50 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (65) Trustee since 2006. Private investor (2004 - 2008 and 2013 - present); Director, Broadridge
Chairman of the Board Serves until a Chairman (2008 - 2013) and Chief Executive Officer Financial Solutions,
and Trustee successor trustee (2008 - 2012), Quadriserv, Inc. (technology Inc. (investor
is elected or products for securities lending industry); and communications and
earlier retirement Senior Executive Vice President, The Bank of New securities processing
or removal. York (financial and securities services) (1986 - provider for financial
2004) services industry) (2009
- present); Director,
Quadriserv, Inc. (2005 -
2013); and Commissioner,
New Jersey State Civil
Service Commission (2011
- present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (72) Trustee since 2005. Managing Partner, Federal City Capital Advisors Director of New York
Trustee Serves until a (corporate advisory services company) (1997 - 2004 Mortgage Trust (publicly
successor trustee and 2008 - present); Interim Chief Executive -traded mortgage REIT)
is elected or Officer, Oxford Analytica, Inc. (privately-held (2004 - 2009, 2012 -
earlier retirement research and consulting company) (2010); Executive present); Director of
or removal. Vice President and Chief Financial Officer, The Swiss Helvetia Fund,
I-trax, Inc. (publicly traded health care services Inc. (closed- end fund)
company) (2004 - 2007); and Executive Vice (2010 - present);
President and Chief Financial Officer, Pedestal Director of Oxford
Inc. (internet-based mortgage trading company) Analytica, Inc. (2008 -
(2000 - 2002); Private consultant (1995-1997), present); and Director
Managing Director, Lehman Brothers (investment of Enterprise Community
banking firm) (1992-1995); and Executive, The World Investment, Inc.
Bank (1979-1992) (privately-held
affordable housing
finance company) (1985 -
2010)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon
(71) Serves until a Economy, Harvard University (1972 - present) Institutional Funds
Trustee successor trustee Investment Trust and
is elected or Mellon Institutional
earlier retirement Funds Master Portfolio
or removal. (oversaw 17 portfolios
in fund complex) (1989-
2008)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 51
Independent Trustees (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham Trustee since 2004. Founding Director, Vice President and Corporate None
(68) Serves until a Secretary, The Winthrop Group, Inc. (consulting
Trustee successor trustee firm) (1982 - present); Desautels Faculty of
is elected or Management, McGill University (1999 - present); and
earlier retirement Manager of Research Operations and Organizational
or removal. Learning, Xerox PARC, Xerox's advance research
center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (67) Trustee since 2004. President and Chief Executive Officer, Newbury, Director of New America
Trustee Serves until a Piret & Company, Inc. (investment banking firm) High Income Fund, Inc.
successor trustee (1981 - present) (closed-end investment
is elected or company) (2004 -
earlier retirement present); and Member,
or removal. Board of Governors,
Investment Company
Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (68) Trustee since 2014. Consultant (investment company services) (2012 - None
Trustee Serves until a present); Executive Vice President, BNY Mellon
successor trustee (financial and investment company services) (1969 -
is elected or 2012); Director, BNY International Financing Corp.
earlier retirement (financial services) (2002 - 2012); and Director,
or removal. Mellon Overseas Investment Corp. (financial
services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
52 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (57)* Trustee since 2014. Director and Executive Vice President (since 2008) and None
Trustee Serves until a Chief Investment Officer, U.S. (since 2010) of PIM-USA;
successor trustee is Executive Vice President of Pioneer (since 2008);
elected or earlier Executive Vice President of Pioneer Institutional Asset
retirement or Management, Inc. (since 2009); and Portfolio Manager of
removal. Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer of the Fund's
investment adviser and certain of its affiliates.
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 53
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine Monchak (59)** Advisory Trustee Chief Investment Officer, 1199 SEIU Funds Trustee of Pioneer
Advisory Trustee since 2014. (healthcare workers union pension funds) (2001 - closed-end investment
present); Vice President - International companies (5 portfolios)
Investments Group, American International Group, (Sept. 2015 - present)
Inc. (insurance company) (1993 - 2001); Vice
President Corporate Finance and Treasury Group,
Citibank, N.A.(1980 - 1986 and 1990 - 1993); Vice
President - Asset/Liability Management Group,
Federal Farm Funding Corporation
(government-sponsored issuer of debt securities)
(1988 - 1990); Mortgage Strategies Group, Shearson
Lehman Hutton, Inc. (investment bank) (1987 -
1988); and Mortgage Strategies Group, Drexel
Burnham Lambert, Ltd. (investment bank) (1986 -
1987)
------------------------------------------------------------------------------------------------------------------------------------
** Ms. Monchak is a non-voting advisory trustee.
54 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (53) Since 2014. Serves Chair, Director, CEO and President of Pioneer Trustee of Pioneer
President and Chief at the discretion Investment Management-USA (since September 2014); closed-end investment
Executive Officer of the Board. Chair, Director, CEO and President of Pioneer companies (5 portfolios)
Investment Management, Inc. (since September 2014); (Sept. 2015 - present)
Chair, Director, CEO and President of Pioneer Funds
Distributor, Inc. (since September 2014); Chair,
Director, CEO and President of Pioneer Institutional
Asset Management, Inc. (since September 2014); and
Chair, Director, and CEO of Pioneer Investment
Management Shareholder Services, Inc. (since
September 2014); Managing Director, Morgan Stanley
Investment Management (2010 - 2013); and Director of
Institutional Business, CEO of International, Eaton
Vance Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley Since 2004. Serves Vice President and Associate General Counsel of None
(51) at the discretion Pioneer since January 2008; Secretary and Chief Legal
Secretary and Chief of the Board. Officer of all of the Pioneer Funds since June 2010;
Legal Officer Assistant Secretary of all of the Pioneer Funds from
September 2003 to May 2010; and Vice President and
Senior Counsel of Pioneer from July 2002 to December
2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (54) Since 2010. Serves Fund Governance Director of Pioneer since December None
Assistant Secretary at the discretion 2006 and Assistant Secretary of all the Pioneer Funds
of the Board. since June 2010; Manager - Fund Governance of Pioneer
from December 2003 to November 2006; and Senior
Paralegal of Pioneer from January 2000 to November
2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (53) Since 2010. Serves Senior Counsel of Pioneer since May 2013 and None
Assistant Secretary at the discretion Assistant Secretary of all the Pioneer Funds since
of the Board. June 2010; and Counsel of Pioneer from June 2007 to
May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (56) Since 2008. Serves Vice President - Fund Treasury of Pioneer; Treasurer None
Treasurer and Chief at the discretion of all of the Pioneer Funds since March 2008; Deputy
Financial and of the Board. Treasurer of Pioneer from March 2004 to February
Accounting Officer 2008; and Assistant Treasurer of all of the Pioneer
Funds from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15 55
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (50) Since 2004. Serves at Director - Fund Treasury of Pioneer; and Assistant None
Assistant Treasurer the discretion of the Treasurer of all of the Pioneer Funds
Board.
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (57) Since 2004. Serves at Fund Accounting Manager - Fund Treasury of Pioneer; and None
Assistant Treasurer the discretion of the Assistant Treasurer of all of the Pioneer Funds
Board.
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (36) Since 2009. Serves at Fund Administration Manager - Fund Treasury of Pioneer None
Assistant Treasurer the discretion of the since November 2008; Assistant Treasurer of all of the
Board. Pioneer Funds since January 2009; and Client Service
Manager - Institutional Investor Services at State
Street Bank from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (63) Since 2010. Serves at Chief Compliance Officer of Pioneer and of all the None
Chief Compliance Officer the discretion of the Pioneer Funds since March 2010; Chief Compliance Officer
Board. of Pioneer Institutional Asset Management, Inc. since
January 2012; Chief Compliance Officer of Vanderbilt
Capital Advisors, LLC since July 2012: Director of
Adviser and Portfolio Compliance at Pioneer since
October 2005; and Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to October
2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (44) Since 2006. Serves at Director - Transfer Agency Compliance of Pioneer and None
Anti-Money the discretion of the Anti-Money Laundering Officer of all the Pioneer Funds
Laundering Officer Board. since 2006
------------------------------------------------------------------------------------------------------------------------------------
56 Pioneer AMT-Free Municipal Fund | Annual Report | 12/31/15
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Pioneer Funds
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2016 Pioneer Investments 18644-10-0216
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
The audit fees for the Trust were $37,471
payable to Deloitte & Touche LLP for the year ended
December 31, 2015 and $33,212 for the year ended December 31, 2014.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
There were no audit-related services in 2015 or 2014.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
The tax fees for the Trust were $5,600
payable to Deloitte & Touche LLP for the year ended
December 31, 2015 and $5,600 for the year ended December 31, 2014.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
There were no other fees in 2015 or 2014.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Trust's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Trust. For the
years ended December 31 2015 and 2014, there were no
services provided to an affiliate that required the
Trust's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Trust were $5,600
payable to Deloitte & Touche LLP for the year ended
December 31, 2015 and $5,600 for the year ended December 31, 2014.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust II
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date February 29, 2016
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date February 29, 2016
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date February 29, 2016
* Print the name and title of each signing officer under his or her signature.