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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05516
Pioneer America Income Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Joseph P. Barri, Hale and Dorr LLP, 60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: June 30
Date of reporting period: January 1, 2003 through June 30, 2003
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
PIONEER
-----------------------
AMERICA
INCOME
TRUST
Semiannual
Report
6/30/03
[LOGO] PIONEER Investments(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter from the President 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 7
Schedule of Investments 11
Financial Statements 14
Notes to Financial Statements 22
Trustees, Officers and Service Providers 27
Retirement Plans from Pioneer 28
Pioneer America Income Trust
LETTER FROM THE PRESIDENT 6/30/03
Dear Shareowners,
- --------------------------------------------------------------------------------
With the fading of concerns over the Iraq war, investors whose attention had
been focused overseas were buoyed this spring by hints of increased economic
activity at home. The nation's stock markets began a broad-based rally in early
March, and prices continued to climb. From April through June, the major stock
market averages recorded one of the biggest quarterly jumps in years. Increasing
investor confidence also led to strong returns on corporate bonds. However,
returns on government bonds, which rose sharply earlier, have slowed.
Encouraging factors aren't hard for investors to find. The lowest interest rates
many of us have ever seen and the administration's tax cuts mean higher incomes
for many consumers. The tax reductions on dividends and capital gains are of
special interest to investors. Corporations can also borrow at the lowest rates
in years. Many companies are realizing substantial savings by replacing old,
high-cost debt with new issues that carry lower interest. The Federal Reserve
Board cut rates once again in June in an effort to inject further stimulus into
the economy. And the weak U.S. dollar helps exporters and multinational
companies operating in countries with stronger currencies.
One possible lesson to be learned from the market's decline and recovery is the
importance of staying invested. Those who stayed with their commitments
benefitted from a stock market rally and a strong rise in corporate bonds, while
those who remained on the sidelines had to play catch-up. If the protracted
slump caused your investment discipline to slip, this may be an ideal time to
contact your financial advisor for guidance on resuming your investment program
and determining the right balance for you among stocks, bonds and short-term
investments.
Our style focuses on companies, not on forecasts
There are always risks, of course, and the direction of the economy is
something of a puzzle at the moment. If it continues to struggle for very long,
investors may once again seek shelter in short-term commitments. However,
Pioneer's portfolio managers and analysts do not base investment decisions on
economic assumptions. Instead, as it has since our founding in 1928, our
value-focused investment style requires complete understanding of a company and
its potential. That means intensive analysis of financial reports, visits to
companies and detailed discussions with corporate managers. When we discover
potential that appears to exceed the market's valuation, that company's stocks
and bonds may become candidates for investment. Our research efforts are aided
in no small measure by the global resources of our parent organization,
UniCredito Italiano, S.p.A.
Like everyone at Pioneer, I appreciate your continued confidence in our
products and services.
Respectfully,
/s/ Osbert Hood
Osbert Hood
Pioneer Investment Management, Inc.
The preceding information is the opinion of Fund management. Past performance
is no guarantee of future results, and there is no guarantee that market
forecasts discussed will be realized.
- --------------------------------------------------------------------------------
Pioneer's new president
Osbert Hood was recently named Chief Executive Officer and President of Pioneer
Investments USA. Mr. Hood, formerly Pioneer's Chief Operating Officer and a key
member of the senior management committee, joined Pioneer in 2000 from John
Hancock Financial Services, where he had held senior financial positions. "I am
excited and honored to have the opportunity to lead Pioneer as it continues to
grow," Mr. Hood said. "As CEO I look forward to furthering Pioneer's strategic
goals, including developing new products that can meet the wider needs of
investors and the advisers who serve them."
- --------------------------------------------------------------------------------
1
Pioneer America Income Trust
PORTFOLIO SUMMARY 6/30/03
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Government Agency Obligations 72.4%
U.S. Treasury Obligations 27.0%
Temporary Cash Investment 0.6%
Portfolio Maturity
- --------------------------------------------------------------------------------
(Effective life as a percentage of total investment portfolio)
[THE FOLLOWING WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
0-1 Year 23.2%
1-3 Years 46.5%
3-4 Years 4.0%
4-6 Years 13.9%
8+ Years 12.4%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of debt holdings)
1. U.S. Treasury Bonds, 7.25%, 5/15/16 9.34%
2. U.S. Treasury Notes, 6.5%, 2/15/10 8.81
3. Government National Mortgage Association, 5.5%, 4/15/33 2.91
4. U.S. Treasury Bonds, 6.375%, 8/15/27 2.70
5. U.S. Treasury Notes, 5.625%, 5/15/08 2.21
6. Government National Mortgage Association, 6.0%, 11/15/32 2.07
7. Government National Mortgage Association, 6.5%, 9/15/32 1.93
8. U.S. Treasury Notes, 6.625%, 5/15/07 1.93
9. U.S. Treasury Notes, 6.25%, 2/15/07 1.75
10. Government National Mortgage Association, 5.5%, 5/15/33 1.72
This list excludes money market instruments. Portfolio holdings will vary for
other periods.
2
Pioneer America Income Trust
PERFORMANCE UPDATE 6/30/03 CLASS A SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/03 12/31/02
$10.27 $10.27
Distributions per Share Income Short-Term Long-Term
(1/1/03 - 6/30/03) Dividends Capital Gains Capital Gains
$0.1737 $-- $--
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust at public offering price,
compared to that of the Lehman Brothers Government Bond Index and of the Lehman
Brothers Fixed-Rate Mortgage-Backed Securities Index.
Average Annual Total Returns
(As of June 30, 2003)
Net Asset Public Offering
Period Value Price*
10 Years 5.81% 5.33%
5 Years 6.06 5.09
1 Year 7.28 2.44
* Reflects deduction of the maximum 4.5% sales charge at the beginning of
the period and assumes reinvestment of distributions at net asset value.
[THE FOLLOWING WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Lehman Brothers
Fixed-Rate
Pioneer America Mortgage-Backed Lehman Brothers
Income Trust* Securities Index Government Bond Index
6/93 9550 10000 10000
9797 10187 10290
6/94 9408 10023 9942
10919 11707 11765
6/96 11169 12334 12090
12120 13504 13248
6/98 13063 14445 14553
12733 14712 14227
6/00 14207 16355 16111
15048 17699 17277
6/02 16519 19246 19264
6/03 16801 19552 19968
Prior to May 1, 2003, the Fund's investment adviser, Pioneer Investment
Management, Inc., reduced its management fee and certain other expenses,
otherwise, returns would have been lower. Expense limitation for the
Fund's Class A shares applies proportionately to Class B, C and R shares.
The Lehman Brothers Government Bond Index is an unmanaged measure of the
performance of U.S. Treasury debt, all publicly issued debt of U.S.
government agencies and quasi-federal corporations, and corporate debt
guaranteed by the U.S. government. The Lehman Brothers Fixed-Rate
Mortgage-Backed Securities Index is an unmanaged index including 15- and
30-year fixed rate securities backed by mortgage pools of the Government
National Mortgage Association (GNMA), Federal Home Loan Mortgage
Corporation (FHLMC) and Federal National Mortgage Association (FNMA).
Index returns assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest
directly in the Indexes.
The performance table and graph do not reflect the deduction of taxes that
a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Past performance does not guarantee future results. Returns and principal
value fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost.
3
Pioneer America Income Trust
PERFORMANCE UPDATE 6/30/03 CLASS B SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/03 12/31/02
$10.19 $10.20
Distributions per Share Income Short-Term Long-Term
(1/1/03 - 6/30/03) Dividends Capital Gains Capital Gains
$0.1458 $-- $--
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust, compared to that of the Lehman
Brothers Government Bond Index and of the Lehman Brothers Fixed-Rate
Mortgage-Backed Securities Index.
Average Annual Total Returns
(As of June 30, 2003)
If If
Period Held Redeemed*
Life-of-Class
(4/29/94) 5.69% 5.69%
5 Years 5.22 5.05
1 Year 6.38 2.38
* Reflects deduction of the maximum applicable contingent deferred sales
charge (CDSC) at the end of the period and assumes reinvestment of
distributions. The maximum CDSC of 4% declines over six years.
[THE FOLLOWING WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Lehman Brothers
Fixed-Rate
Pioneer America Mortgage-Backed Lehman Brothers
Income Trust* Securities Index Government Bond Index
4/94 10000 10000 10000
9943 10149 10041
12/95 11442 11853 11883
11624 12488 12211
12/97 12508 13673 13381
13394 14625 14699
12/99 12960 14896 14369
14344 16559 16272
12/01 15060 17920 17450
16388 19487 19457
6/03 16608 19796 20166
Prior to May 1, 2003, the Fund's investment adviser, Pioneer Investment
Management, Inc., reduced its management fee and certain other expenses,
otherwise, returns would have been lower. Expense limitation for the
Fund's Class A shares applies proportionately to Class B, C and R shares.
+ Index comparisons begin 4/30/94. The Lehman Brothers Government Bond Index
is an unmanaged measure of the performance of U.S. Treasury debt, all
publicly issued debt of U.S. government agencies and quasi-federal
corporations, and corporate debt guaranteed by the U.S. government. The
Lehman Brothers Fixed-Rate Mortgage-Backed Securities Index is an
unmanaged index including 15- and 30-year fixed rate securities backed by
mortgage pools of the Government National Mortgage Association (GNMA),
Federal Home Loan Mortgage Corporation (FHLMC) and Federal National
Mortgage Association (FNMA). Index returns assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. You cannot invest directly in the Indexes.
The performance table and graph do not reflect the deduction of taxes that
a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Past performance does not guarantee future results. Returns and principal
value fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost.
4
Pioneer America Income Trust
PERFORMANCE UPDATE 6/30/03 CLASS C SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/03 12/31/02
$10.22 $10.24
Distributions per Share Income Short-Term Long-Term
(1/1/03 - 6/30/03) Dividends Capital Gains Capital Gains
$0.1543 $-- $--
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust at public offering price,
compared to that of the Lehman Brothers Government Bond Index and of the Lehman
Brothers Fixed-Rate Mortgage-Backed Securities Index.
Average Annual Total Returns
(As of June 30, 2003)
Net Asset Public Offering
Period Value Price/CDSC*
Life-of-Class
(1/31/96) 5.11% 4.97%
5 Years 5.26 5.05
1 Year 6.37 5.31
* Reflects deduction of the 1% sales charge at the beginning of the period
and assumes reinvestment of distributions. The 1% contingent deferred
sales charge (CDSC) applies to investments made within one year of
purchase.
[THE FOLLOWING WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Lehman Brothers
Fixed-Rate
Pioneer America Lehman Brothers Mortgage-Backed
Income Trust* Government Bond Index Securities Index
1/96 9900 10000 10000
10005 10457 10214
6/97 10784 11449 11192
11549 12247 12295
6/99 11181 12473 12019
12357 13866 13611
6/01 12981 15006 14596
14140 16317 16274
6/03 14327 16577 16867
16388 19487 19457
Prior to May 1, 2003, the Fund's investment adviser, Pioneer Investment
Management, Inc., reduced its management fee and certain other expenses,
otherwise, returns would have been lower. Expense limitation for the
Fund's Class A shares applies proportionately to Class B, C and R shares.
The Lehman Brothers Government Bond Index is an unmanaged measure of the
performance of U.S. Treasury debt, all publicly issued debt of U.S.
government agencies and quasi-federal corporations, and corporate debt
guaranteed by the U.S. government. The Lehman Brothers Fixed-Rate
Mortgage-Backed Securities Index is an unmanaged index including 15- and
30-year fixed rate securities backed by mortgage pools of the Government
National Mortgage Association (GNMA), Federal Home Loan Mortgage
Corporation (FHLMC) and Federal National Mortgage Association (FNMA).
Index returns assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest
directly in the Indexes.
The performance table and graph do not reflect the deduction of taxes that
a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Past performance does not guarantee future results. Returns and principal
value fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost.
5
Pioneer America Income Trust
PERFORMANCE UPDATE 6/30/03 CLASS R SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/03 4/1/03
$10.32 $10.31
Distributions per Share Income Short-Term Long-Term
(4/1/03 - 6/30/03) Dividends Capital Gains Capital Gains
$0.0500 $-- $--
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust at public offering price,
compared to that of the Lehman Brothers Government Bond Index and of the Lehman
Brothers Fixed-Rate Mortgage-Backed Securities Index.
Average Annual Total Returns+
(As of June 30, 2003)
Net Asset Public Offering
Period Value Price*
10 Years 5.71% 5.71%
5 Years 6.12 6.12
1 Year 7.59 6.59
* Reflects deduction of 1% CDSC. Shares sold within 18 months of purchase
may be subject to CDSC.
[THE FOLLOWING WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Lehman Brothers
Fixed-Rate
Pioneer America Mortgage-Backed Lehman Brothers
Income Trust* Securities Index Government Bond Index
Jun-93 10000 10000 10000
10335 10187 10290
Dec-94 10017 10023 9942
11524 11707 11765
Dec-96 11742 12334 12090
12563 13504 13248
Dec-98 13551 14445 14553
12998 14712 14227
Dec-00 14606 16355 16111
15528 17699 17277
2-Dec 17102 19246 19264
3-Jun 17428 19552 19968
+ Class R shares have no front-end load, may be subject to a back-end load
and are available to certain retirement plans. The performance of Class R
shares for the period prior to the commencement of operations of Class R
shares on April 1, 2003 is based on the performance of Class A shares,
reduced to reflect the higher distribution and service fees of Class R
shares. You do not pay a sales charge on purchases of Class R shares, but
will pay a CDSC if you sell your shares within 18 months of purchase,
unless you qualify for a waiver.
Prior to May 1, 2003, the Fund's investment adviser, Pioneer Investment
Management, Inc., reduced its management fee and certain other expenses,
otherwise, returns would have been lower. Expense limitation for the
Fund's Class A shares applies proportionately to Class B, C and R shares.
The Lehman Brothers Government Bond Index is an unmanaged measure of the
performance of U.S. Treasury debt, all publicly issued debt of U.S.
government agencies and quasi-federal corporations, and corporate debt
guaranteed by the U.S. government. The Lehman Brothers Fixed-Rate
Mortgage-Backed Securities Index is an unmanaged index including 15- and
30-year fixed rate securities backed by mortgage pools of the Government
National Mortgage Association (GNMA), Federal Home Loan Mortgage
Corporation (FHLMC) and Federal National Mortgage Association (FNMA).
Index returns assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest
directly in the Indexes.
Past performance does not guarantee future results. Return and principal
value fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost. The performance table and graph do not reflect
the deduction of taxes that a shareowner would pay on Fund distributions
or redemption of Fund shares.
6
Pioneer America Income Trust
PORTFOLIO MANAGEMENT DISCUSSION 6/30/03
A struggling economy, the war in Iraq and concerns about deflation on the part
of the Federal Reserve caused market participants to seek the highest quality
investments during the first half of the fiscal year for Pioneer America Income
Trust. As a result, long-term Treasury bonds were among the best performing
asset classes. Richard Schlanger, a member of the Pioneer fixed-income team,
discusses the factors that had an impact on the fixed-income market and your
Fund during the six-month period ended June 30, 2003.
Q: How did the Fund perform over the six months ended June 30, 2003?
A: For the period, Class A shares of Pioneer America Income Trust produced a
total return of 1.70% at net asset value. In comparison, the Lehman
Brothers Government Bond Fund Index returned 3.63%. The Fund's
underweighting in Treasury securities and its short duration were mainly
responsible for its underperformance relative to this Index. (Expressed in
years, duration measures a bond's price sensitivity to changes in interest
rates. A shorter duration is usually advantageous when interest rates
rise, a longer duration benefits a fund when interest rates decline.) The
Lehman Brothers Fixed-Rate Mortgage-Backed Securities Index returned
1.59%. Because we emphasized mortgage-backed securities, we were able to
provide an attractive level of income to shareholders while maintaining
the highest credit quality of AAA. (Quality ratings apply to underlying
portfolio securities, not Fund shares). At period end, the 30-day SEC
yield for Class A shares was 2.40%.*
Q: What was the investment environment like during the period?
A: Uncertainty dominated investor sentiment for most of the period. Global
economic growth was weak, and Federal Reserve Chairman Alan Greenspan
raised the issue of deflation, which is a reduction in wholesale and
consumer prices that usually lasts for several months or years. A
deflationary environment could be negative because as prices decline,
corporate profits may fall, causing unemployment to rise and a weak
economy overall. In this uncertain economic climate, investors sought the
relative safety of long--
*30-day SEC yield on 6/30/03 reflects the waiver of certain expenses; without
the waiver the yield would have been 2.35%.
7
Pioneer America Income Trust
PORTFOLIO MANAGEMENT DISCUSSION 6/30/03 (continued)
term Treasury securities. The increased demand for Treasuries pushed
prices up and yields down to 45-year lows. By mid-June, yields on 5-year
Treasuries were just over 2.0%, and yields on 10-year Treasuries were a
little over 3.0%. On June 25, 2003, the Fed trimmed the federal funds rate
by 0.25%, adding more stimulus to the lackluster economy. (The federal
funds rate is the rate of interest that commercial banks charge each other
for overnight loans.) Despite the Fed's action, market interest rates rose
slightly, as the stock market rallied and investors looked forward to a
better economy during the second half of 2003.
Because mortgage rates are pegged to Treasury indexes, there is a
correlation between declines in Treasury yields and mortgage refinancing
activity. As yields on Treasury securities fell for most of the period,
homeowners refinanced their mortgages in record numbers. The Mortgage
Banker Association of America's Refinancing Index rose to about 10,000; in
2002 it was at 6,500. The refinancing boom provided consumers with extra
money to spend. As a result, consumer spending was one of the few bright
spots in the economy and was largely responsible for the positive, if
muted, economic growth over the period.
Q: What strategies did you use in managing the Fund?
A: We reduced the Fund's position in mortgage-backed securities issued by the
Government National Mortgage Association (GNMA) from 75.7% to 72.4%. Like
U.S. Treasury securities, GNMAs are backed by the full faith and credit of
the U.S. government. (A full faith and credit backing applies to
underlying portfolio securities, not Fund shares.) We used the proceeds
from the sale of the mortgages to invest in Treasury securities with
maturities of four to ten years. We were reluctant to make a big
commitment to long-term Treasury securities because we were concerned that
with the growing federal budget deficit Treasury yields are likely to rise
and prices decline in the near future. We also disagreed with the Fed
about the possibility of deflation. Gold prices rose above $340 an ounce
and other commodity prices were at relatively high levels during the six
months. In addition, the yield curve remained
8
Pioneer America Income Trust
extremely steep as a result of the Fed's interest-rate cuts. We believe
higher commodity prices and the Fed's determination to keep interest rates
low over the near term are more indicative of a recovering economy than a
deflationary environment. (The yield curve shows the relationship between
bond yields and maturity lengths. When the yield curve steepens, or slopes
upward, yields on short-term bonds are lower than yields on long-term
bonds. An upward sloping yield curve, often referred to as a positive
yield curve, demonstrates the more typical relationship between bond
yields and maturity lengths.)
The Fund's large allocation to mortgage-backed securities held back
performance for two main reasons. First, investors preferred Treasury
securities in an uncertain economic climate. Second, investors were
concerned about the "prepayment risk" that can affect mortgages.
Prepayment risk, the risk that income investors receive from
mortgage-backed securities, will decline as homeowners "prepay" their
mortgages and refinance them at lower rates.
To mitigate the effects of prepayment risk, we purchased mortgage
securities with coupons in the 5.5% to 6.0% range. We sought pools of
mortgages grouped either by states, where mortgages tend to be prepaid at
a slower pace, or by issuers that were slow to promote refinancing and to
originate new mortgages. We also bought low loan-balance mortgages and
newly created mortgages, with the expectation that homeowners would be
more reluctant to undertake the refinancing process if they had recently
refinanced. We also sold some of the Fund's higher-coupon mortgages that
were prepaying quickly.
Q: What is your outlook for the coming months?
A: There is a great deal of stimulus in the economy. Interest rates are at
40-year lows, the Fed has signaled that it will continue its accommodative
monetary policy and may trim interest rates again over the next few
months, and new tax cuts should put more money in the pockets of
consumers. These factors should be positive for the economy over the next
several quarters. We believe the Fund is
9
Pioneer America Income Trust
PORTFOLIO MANAGEMENT DISCUSSION 6/30/03 (continued)
positioned to perform well in this environment, as we expect
mortgage-backed securities to outperform Treasuries. Our duration of 2.85
years should ease concerns about future performance when and if the Fed
raises interest rates. We believe the Fund continues to be appropriate for
people seeking an AAA-quality investment and relatively high income in a
low interest-rate environment.
The preceding information is the opinion of Fund management. Past
performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
10
Pioneer America Income Trust
SCHEDULE OF INVESTMENTS 6/30/03 (unaudited)
Principal
Amount Value
U.S. TREASURY OBLIGATIONS - 27.0%
$ 1,000,000 U.S. Treasury Bonds, 6.25%, 8/15/23 $ 1,224,922
21,270,000 U.S. Treasury Bonds, 7.25%, 5/15/16 28,287,441
5,850,000 U.S. Treasury Notes, 5.625%, 5/15/08 6,706,475
4,600,000 U.S. Treasury Notes, 6.25%, 2/15/07 5,290,000
6,525,000 U.S. Treasury Notes, 6.375%, 8/15/27 8,173,835
22,000,000 U.S. Treasury Notes, 6.5%, 2/15/10 26,689,608
5,000,000 U.S. Treasury Notes, 6.625%, 5/15/07 5,849,610
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $78,522,023) $ 82,221,891
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 72.4%
14,694,816 Government National Mortgage Association,
5.5%, 1/15/29 - 5/15/33 15,339,987
500,000 Government National Mortgage Association,
5.5%, TBA 15 YRS 525,625
80,565,300 Government National Mortgage Association,
6.0%, 1/15/24 - 4/15/33 84,590,629
59,969,271 Government National Mortgage Association,
6.5%, 4/15/17 - 9/15/32 63,022,814
17,081,979 Government National Mortgage Association,
7.0%, 10/15/16 - 4/15/32 18,082,044
5,564,669 Government National Mortgage Association,
7.5%, 2/15/27 - 11/15/32 5,913,900
155,323 Government National Mortgage Association,
8.5%, 7/15/24 169,735
45,251 Government National Mortgage Association,
9.0%, 9/15/16 - 4/15/20 50,442
3,324 Government National Mortgage Association,
9.5%, 12/15/03 3,377
140,929 Government National Mortgage Association,
10.0%, 11/15/18 - 1/15/19 162,281
157 Government National Mortgage Association,
10.5%, 8/15/03 160
1,591,399 Government National Mortgage Association I,
6.0%, 2/15/29 1,668,980
5,260,757 Government National Mortgage Association I,
6.5%, 11/15/31 - 9/15/32 5,524,081
The accompanying notes are an integral part of these financial statements. 11
Pioneer America Income Trust
SCHEDULE OF INVESTMENTS 6/30/03 (unaudited) (continued)
Principal
Amount Value
U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)
$ 3,473,877 Government National Mortgage Association I,
7.0%, 8/15/23 - 4/15/31 $ 3,674,425
2,250,863 Government National Mortgage Association I,
7.5%, 8/15/29 - 3/15/31 2,392,486
87,841 Government National Mortgage Association I,
10.0%, 3/15/20 101,172
6,432,929 Government National Mortgage Association II,
6.0%, 7/20/17 - 3/20/33 6,710,258
8,787,630 Government National Mortgage Association II,
6.5%, 8/20/28 - 10/20/32 9,183,848
1,967,321 Government National Mortgage Association II,
7.0%, 12/20/08 - 11/20/31 2,071,376
414,574 Government National Mortgage Association II,
7.49%, 10/20/22 441,437
413,598 Government National Mortgage Association II,
7.5%, 6/20/30 - 12/20/30 437,015
22,975 Government National Mortgage Association II,
8.0%, 5/20/25 - 3/20/30 24,576
449,733 Government National Mortgage Association II,
9.0%, 9/20/21 - 11/20/24 498,526
7,253 Government National Mortgage Association II,
10.0%, 1/20/06 7,869
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $216,836,097) $220,597,043
------------
TEMPORARY CASH INVESTMENT - 0.6%
Repurchase Agreement - 0.6%
$ 1,900,000 Bear Stearns & Co., Inc., 1.08%, dated 6/30/03,
repurchase price of $1,900,000 plus accrued
interest on 7/1/03, collateralized by $2,128,000
U.S. Treasury Bonds, 11.875%, 11/15/03 $ 1,900,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,900,000) $ 1,900,000
------------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $297,258,120)(a)(b)(c) $304,718,934
============
12 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
Note: The Trust's investments in mortgage-backed securities of the Government
National Mortgage Association (GNMA) are interests in separate pools of
mortgages. All separate investments in this issuer which have the same
coupon rate have been aggregated for the purpose of presentation in this
schedule of investments.
(a) At June 30, 2003, the net unrealized gain on investments based on cost
for federal income tax purposes of $297,736,140 was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $7,534,519
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (551,725)
----------
Net unrealized gain $6,982,794
==========
(b) At December 31, 2002, the Trust had a net capital loss carryforward of
$5,930,850 which will expire between 2003 and 2009 if not utilized.
(c) TBA (To Be Assigned) securities are purchased on a forward commitment
basis with an approximate (generally plus/minus 2.5%) principal and no
definite maturity date period. The actual principal amount and maturity
date will be determined upon settlement when the specific mortgage pools
are assigned.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended June 30, 2003 aggregated $138,931,747 and $100,362,444,
respectively.
The accompanying notes are an integral part of these financial statements. 13
Pioneer America Income Trust
BALANCE SHEET 6/30/03 (unaudited)
ASSETS:
Investment in securities, at value (cost $297,258,120) $304,718,934
Cash 55,601
Receivables -
Fund shares sold 1,412,511
Interest 2,206,855
Due from Pioneer Investment Management, Inc. 25,912
Other 478
------------
Total assets $308,420,291
------------
LIABILITIES:
Payables -
Investment securities purchased $ 527,160
Fund shares repurchased 1,457,373
Dividends 189,627
Due to affiliates 361,828
Accrued expenses 43,208
------------
Total liabilities $ 2,579,196
------------
NET ASSETS:
Paid-in capital $304,371,413
Distributions in excess of net investment income (1,271,412)
Accumulated net realized loss on investments (4,719,720)
Net unrealized gain on investments 7,460,814
------------
Total net assets $305,841,095
============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $183,961,363/17,913,304 shares) $ 10.27
============
Class B (based on $72,686,993/7,131,044 shares) $ 10.19
============
Class C (based on $49,192,236/4,811,888 shares) $ 10.22
============
Class R (based on $502.59/48.690 shares) $ 10.32
============
MAXIMUM OFFERING PRICE:
Class A (10.27 [divided by] 95.5%) $ 10.75
============
Class C (10.22 [divided by] 99.0%) $ 10.32
============
14 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
STATEMENT OF OPERATIONS (unaudited)
For the Six Months Ended 6/30/03
INVESTMENT INCOME:
Interest $6,192,817
----------
EXPENSES:
Management fees $741,264
Transfer agent fees
Class A 233,300
Class B 116,431
Class C 50,114
Distribution fees
Class A 222,412
Class B 363,719
Class C 229,161
Class R 1
Administrative fees 18,596
Custodian fees 12,903
Registration fees 66,541
Professional fees 19,869
Printing 17,846
Fees and expenses of nonaffiliated trustees 6,053
Miscellaneous 8,484
--------
Total expenses $2,106,694
Less management fees waived by Pioneer Investment
Management, Inc. (56,849)
Less fees paid indirectly (4,150)
----------
Net expenses $2,045,695
----------
Net investment income $4,147,122
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $1,254,660
Change in net unrealized gain on investments (780,929)
----------
Net gain on investments $ 473,731
----------
Net increase in net assets resulting from operations $4,620,853
==========
The accompanying notes are an integral part of these financial statements. 15
Pioneer America Income Trust
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended 6/30/03 and the Year Ended 12/31/02
Six Months
Ended
6/30/03 Year Ended
(unaudited) 12/31/02
FROM OPERATIONS:
Net investment income $ 4,147,122 $ 7,927,673
Net realized gain on investments 1,254,660 2,653,295
Change in net unrealized gain (loss) on investments (780,929) 7,089,108
------------- -------------
Net increase in net assets resulting from
operations $ 4,620,853 $ 17,670,076
------------- -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.17 and $0.46 per share, respectively) $ (3,023,870) $ (6,432,080)
Class B ($0.15 and $0.40 per share, respectively) (1,044,261) (1,706,698)
Class C ($0.15 and $0.41 per share, respectively) (686,181) (742,031)
Class R ($0.05 and $0.00 per share, respectively) (4) --
------------- -------------
Total distributions to shareowners $ (4,754,316) $ (8,880,809)
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 134,747,982 $ 269,788,820
Reinvestment of distributions 3,431,177 5,959,317
Cost of shares repurchased (101,869,416) (162,654,384)
------------- -------------
Net increase in net assets resulting from fund
share transactions $ 36,309,743 $ 113,093,753
------------- -------------
Net increase in net assets $ 36,176,280 $ 121,883,020
NET ASSETS:
Beginning of period 269,664,815 147,781,795
------------- -------------
End of period (including distributions in excess of
net investment income of $1,271,412 and
$664,218, respectively) $ 305,841,095 $ 269,664,815
============= =============
16 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the Six Months Ended 6/30/03 and the Year Ended 12/31/02
'03 Shares '03 Amount
(unaudited) (unaudited) '02 Shares '02 Amount
CLASS A
Shares sold 8,060,349 $82,669,388 15,405,939 $154,956,084
Reinvestment of distributions 222,306 2,283,713 436,057 4,379,711
Less shares repurchased (6,379,607) (65,383,256) (11,679,409) (117,323,851)
---------- ----------- ----------- ------------
Net increase 1,903,048 $19,569,845 4,162,587 $ 42,011,944
========== =========== =========== ============
CLASS B
Shares sold 2,253,485 $22,951,539 6,647,016 $ 66,814,094
Reinvestment of distributions 69,019 703,844 111,513 1,118,949
Less shares repurchased (1,758,390) (17,911,128) (2,754,820) (27,651,793)
---------- ----------- ----------- ------------
Net increase 564,114 $ 5,744,255 4,003,709 $ 40,281,250
========== =========== =========== ============
CLASS C
Shares sold 2,851,247 $29,126,553 4,757,424 $ 48,018,642
Reinvestment of distributions 43,373 443,620 45,549 460,657
Less shares repurchased (1,819,305) (18,575,032) (1,758,281) (17,678,740)
---------- ----------- ----------- ------------
Net increase 1,075,315 $10,995,141 3,044,692 $ 30,800,559
========== =========== =========== ============
CLASS R*
Shares sold 49 $ 502
Reinvestment of distributions -- --
Less shares repurchased -- --
---------- -----------
Net increase 49 $ 502
========== ===========
* Shares of Class R were first publicly offered on April 1, 2003.
The accompanying notes are an integral part of these financial statements. 17
Pioneer America Income Trust
FINANCIAL HIGHLIGHTS
Six Months
Ended
6/30/03 Year Ended Year Ended Year Ended Year Ended Year Ended
(unaudited) 12/31/02 12/31/01(a) 12/31/00 12/31/99 12/31/98
CLASS A
Net asset value, beginning of period $ 10.27 $ 9.79 $ 9.76 $ 9.30 $ 10.10 $ 9.93
--------- --------- --------- --------- --------- ---------
Increase (decrease) from investment operations:
Net investment income $ 0.16 $ 0.40 $ 0.52 $ 0.58 $ 0.55 $ 0.58
Net realized and unrealized gain (loss) on investments 0.01 0.54 0.05 0.46 (0.80) 0.17
--------- --------- --------- --------- --------- ---------
Net increase (decrease) from investment operations $ 0.17 $ 0.94 $ 0.57 $ 1.04 $ (0.25) $ 0.75
Distributions to shareowners:
Net investment income (0.17) (0.46) (0.51) (0.58) (0.55) (0.58)
In excess of net investment income -- -- (0.03) -- -- --
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net asset value $ -- $ 0.48 $ 0.03 $ 0.46 $ (0.80) $ 0.17
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 10.27 $ 10.27 $ 9.79 $ 9.76 $ 9.30 $ 10.10
========= ========= ========= ========= ========= =========
Total return* 1.70% 9.78% 5.92% 11.58% (2.52)% 7.78%
Ratio of net expenses to average net assets+ 1.07%** 1.00% 1.01% 1.04% 1.01% 1.00%
Ratio of net investment income to average net assets+ 3.37%** 4.17% 5.14% 6.09% 5.63% 5.80%
Portfolio turnover rate 69%** 76% 72% 56% 72% 81%
Net assets, end of period (in thousands) $ 183,961 $ 164,393 $ 115,998 $ 96,068 $ 111,262 $ 128,925
Ratios with no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 1.11%** 1.08% 1.12% 1.16% 1.14% 1.10%
Net investment income 3.33%** 4.09% 5.03% 5.97% 5.50% 5.70%
Ratios with waiver of management fees by
PIM and reduction for fees paid indirectly:
Net expenses 1.07%** 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment income 3.37%** 4.18% 5.15% 6.13% 5.64% 5.80%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
** Annualized.
(a) On January 1, 2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this change for the year ended
December 31, 2001, was to decrease net investment income by $0.02 per
share, increase net realized and unrealized gain (loss) by $0.02 per share
and decrease the ratio of net investment income to average net assets
assuming waiver of management fees by PIM and reduction for fees paid
indirectly from 5.35% to 5.15%. Per share ratios and supplemental data for
periods prior to January 1, 2001, have not been restated to reflect this
change in presentation.
18 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
FINANCIAL HIGHLIGHTS
Six Months
Ended
6/30/03 Year Ended Year Ended Year Ended Year Ended Year Ended
(unaudited) 12/31/02 12/31/01(a) 12/31/00 12/31/99 12/31/98
CLASS B
Net asset value, beginning of period $ 10.20 $ 9.76 $ 9.74 $ 9.28 $ 10.07 $ 9.90
--------- --------- --------- --------- --------- ---------
Increase (decrease) from investment operations:
Net investment income $ 0.12 $ 0.34 $ 0.44 $ 0.50 $ 0.47 $ 0.51
Net realized and unrealized gain (loss) on investments 0.02 0.50 0.04 0.46 (0.79) 0.17
--------- --------- --------- --------- --------- ---------
Net increase (decrease) from investment operations $ 0.14 $ 0.84 $ 0.48 $ 0.96 $ (0.32) $ 0.68
Distributions to shareowners:
Net investment income (0.15) (0.40) (0.42) (0.50) (0.47) (0.51)
In excess of net investment income -- -- (0.04) -- -- --
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net asset value $ (0.01) $ 0.44 $ 0.02 $ 0.46 $ (0.79) $ 0.17
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 10.19 $ 10.20 $ 9.76 $ 9.74 $ 9.28 $ 10.07
========= ========= ========= ========= ========= =========
Total return* 1.34% 8.82% 4.99% 10.68% (3.24)% 7.08%
Ratio of net expenses to average net assets+ 1.88%** 1.80% 1.95% 1.85% 1.78% 1.74%
Ratio of net investment income to average net assets+ 2.57%** 3.26% 4.18% 5.29% 4.87% 4.99%
Portfolio turnover rate 69%** 76% 72% 56% 72% 81%
Net assets, end of period (in thousands) $ 72,687 $ 67,013 $ 25,008 $ 16,889 $ 19,695 22,602
Ratios with no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 1.92%** 1.88% 2.06% 1.98% 1.91% 1.81%
Net investment income 2.53%** 3.19% 4.07% 5.16% 4.74% 4.92%
Ratios with waiver of management fees by
PIM and reduction for fees paid indirectly:
Net expenses 1.88%** 1.79% 1.93% 1.83% 1.76% 1.71%
Net investment income 2.57%** 3.27% 4.20% 5.31% 4.89% 5.01%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
** Annualized.
(a) On January 1, 2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this change for the year ended
December 31, 2001, was to decrease net investment income by $0.02 per
share, increase net realized and unrealized gain (loss) by $0.02 per share
and decrease the ratio of net investment income to average net assets
assuming waiver of management fees by PIM and reduction for fees paid
indirectly from 4.36% to 4.20%. Per share ratios and supplemental data for
periods prior to January 1, 2001, have not been restated to reflect this
change in presentation.
The accompanying notes are an integral part of these financial statements. 19
Pioneer America Income Trust
FINANCIAL HIGHLIGHTS
Six Months
Ended
6/30/03 Year Ended Year Ended Year Ended Year Ended Year Ended
(unaudited) 12/31/02 12/31/01(a) 12/31/00 12/31/99 12/31/98
CLASS C
Net asset value, beginning of period $ 10.24 $ 9.79 $ 9.74 $ 9.28 $ 10.07 $ 9.90
--------- --------- --------- --------- --------- ---------
Increase (decrease) from investment operations:
Net investment income $ 0.12 $ 0.36 $ 0.46 $ 0.49 $ 0.47 $ 0.52
Net realized and unrealized gain (loss) on investments 0.01 0.50 0.03 0.46 (0.79) 0.17
--------- --------- --------- --------- --------- ---------
Net increase (decrease) from investment operations $ 0.13 $ 0.86 $ 0.49 $ 0.95 $ (0.32) $ 0.69
Distributions to shareowners:
Net investment income (0.15) (0.41) (0.43) (0.49) (0.47) (0.52)
In excess of net investment income -- -- (0.01) -- -- --
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net asset value $ (0.02) $ 0.45 $ 0.05 $ 0.46 $ (0.79) $ 0.17
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 10.22 $ 10.24 $ 9.79 $ 9.74 $ 9.28 $ 10.07
========= ========= ========= ========= ========= =========
Total return* 1.32% 8.93% 5.05% 10.52% (3.19)% 7.09%
Ratio of net expenses to average net assets+ 1.78%** 1.77% 1.84% 2.02% 1.73% 1.65%
Ratio of net investment income to average net assets+ 2.66%** 3.16% 4.22% 5.14% 4.88% 4.97%
Portfolio turnover rate 69%** 76% 72% 56% 72% 81%
Net assets, end of period (in thousands) $ 49,192 $ 38,258 $ 6,776 $ 3,221 $ 5,632 $ 11,891
Ratios with no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 1.82%** 1.84% 1.95% 2.15% 1.85% 1.70%
Net investment income 2.62%** 3.08% 4.11% 5.01% 4.76% 4.92%
Ratios with waiver of management fees by
PIM and reduction for fees paid indirectly:
Net expenses 1.78%** 1.76% 1.81% 1.97% 1.70% 1.62%
Net investment income 2.66%** 3.16% 4.25% 5.19% 4.91% 5.00%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
** Annualized.
(a) On January 1, 2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this change for the year ended
December 31, 2001, was to decrease net investment income by $0.01 per
share, increase net realized and unrealized gain (loss) by $0.01 per share
and decrease the ratio of net investment income to average net assets
assuming waiver of management fees by PIM and reduction for fees paid
indirectly from 4.42% to 4.25%. Per share ratios and supplemental data for
periods prior to January 1, 2001, have not been restated to reflect this
change in presentation.
20 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
FINANCIAL HIGHLIGHTS
4/1/03
to 6/30/03
CLASS R (a) (unaudited)
Net asset value, beginning of period $ 10.31
-------
Increase from investment operations:
Net investment income $ 0.03
Net realized and unrealized gain on investments 0.03
-------
Net increase from investment operations $ 0.06
Distributions to shareowners:
Net investment income (0.05)
Net realized gains --
-------
Net increase (decrease) in net asset value $ 0.01
-------
Net asset value, end of period $ 10.32
-------
Total return* 1.31%
Ratio of net expenses to average net assets+ 2.06%**
Ratio of net investment income to average net assets+ 4.39%**
Portfolio turnover rate 69%**
Net assets, end of period (in thousands) $ 1
Ratios with no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 2.08%**
Net investment income 4.37%**
Ratios with waiver of management fees by
PIM and reduction for fees paid indirectly:
Net expenses 2.06%**
Net investment income 4.39%**
(a) Class R Shares were first publicly offered on April 1, 2003.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 21
Pioneer America Income Trust
NOTES TO FINANCIAL STATEMENTS 6/30/03 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer America Income Trust (the Trust) is a Massachusetts business trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Trust is to
provide a high level of current income consistent with preservation of capital
and prudent investment risk.
The Trust offers four classes of shares - Class A, Class B, Class C and Class R
shares. Shares of each class represent an interest in the same portfolio of
investments of the Trust and have equal rights to voting, redemptions, dividends
and liquidation, except that each class of shares can bear different transfer
agent and distribution fees and has exclusive voting rights with respect to the
distribution plans that have been adopted by Class A, Class B, Class C and Class
R shareowners, respectively.
The Trust's financial statements have been prepared in conformity with
accounting principals generally accepted in the United States of America that
require the management of the Trust to, among other things, make estimates and
assumptions that affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the
reporting periods. Actual results could differ from those estimates. The
following is a summary of significant accounting policies consistently followed
by the Trust, which are in conformity with those generally accepted in the
investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Securities are valued
at prices supplied by independent pricing services, which considers such
factors as Treasury spreads, yields, maturities and ratings. Valuations
may be supplemented by dealers and other sources, as required. Principal
amounts of mortgage-backed securities are adjusted for monthly paydowns.
Premiums and discounts related to certain mortgage-backed securities are
amortized or accreted in proportion to the underlying monthly pay downs.
All discounts/premiums are accreted/amortized for financial reporting
purposes. Interest income, including income on interest bearing
22
Pioneer America Income Trust
cash accounts, is recorded on the accrual basis. Temporary cash
investments are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareowners. Therefore, no federal income tax provision is
required.
The characterization of distributions to shareowners for financial
reporting purposes is determined in accordance with federal income tax
rules. Therefore, the source of the Trust's distributions may be shown in
the accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in-capital, depending on the type of book/tax differences that may
exist.
The tax character of current year distributions paid will be determined at
the end of the current fiscal year. The tax character of distributions
paid during the year ended December 31, 2002 was as follows:
2002
----------
Distributions paid from:
Ordinary income $8,880,809
Long-term capital gain --
----------
Total $8,880,809
Included in the Trust's distributions from ordinary income is $390,695 in
excess of investment company income, which in accordance to applicable
U.S. tax law, is taxable to shareowners as ordinary income distributions.
The following shows components of distributable earnings on a federal
income tax basis at December 31, 2002. These amounts do not include the
capital loss carryforward.
23
Pioneer America Income Trust
NOTES TO FINANCIAL STATEMENTS 6/30/03 (unaudited) (continued)
2002
----------
Undistributed ordinary income $ --
Undistributed long-term gain --
Unrealized appreciation 7,763,723
----------
Total $7,763,723
The difference between book-basis and tax-basis unrealized appreciation is
primarily attributable to the tax deferral of losses on wash sales and the
tax treatment of premium and amortization.
C. Fund Shares
The Trust records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Trust and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.
(UniCredito Italiano), earned $39,911 in underwriting commissions on the
sale of Trust shares for the six months ended June 30, 2003.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset
value attributable to Class A, Class B, Class C and Class R shares of the
Trust, respectively. Shareowners of each class share all expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services, which are allocated based on the
number of accounts in each class and the ratable allocation of related
out-of-pocket expenses (see Note 3). Income, common expenses and realized
and unrealized gains and losses are calculated at the Trust level and
allocated daily to each class of shares based on their respective
percentage of adjusted net assets at the beginning of the day.
The Trust declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Trust with respect to each class of shares
are calculated in the same manner, at the same time, and in the same
amount, except that Class A, Class B, Class C and Class R shares can bear
different transfer agent and distribution fees.
24
Pioneer America Income Trust
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value
of the underlying securities (collateral), including accrued interest
received from counter parties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Trust's custodian, or sub custodians. The
Trust's investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
2. Management Agreement
PIM manages the Trust's portfolio and is a wholly owned indirect subsidiary of
UniCredito Italiano. Management fees are calculated daily at the annual rate of
0.50% of the Trust's average daily net assets.
PIM discontinued the Fund's expense limitation on May 1, 2003. Prior to May 1,
2003, PIM had agreed not to impose a portion of its management fee and to assume
other operating epxenses of the Trust to the extent necessary to limit Class A
expenses to 1.00% of the average daily net assets attributable to Class A
shares; the portion of the Trust-wide expenses attributable to Class B and Class
C shares were reduced only to the extent that such expenses were reduced for
Class A shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Trust. At June 30, 2003, $149,927 was payable to PIM
related to management fees, administrative fees and certain other services.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Trust at
negotiated rates. Included in due to affiliates is $45,271 in transfer agent
fees payable to PIMSS at June 30, 2003.
4. Distribution and Service Plans
The Fund adopted Plans of Distribution with respect to Class A, Class B, Class
C, and Class R shares (Class A Plan, Class B Plan, Class C Plan, and Class R
Plan) in accordance with Rule 12b-1 of the Investment Company Act of 1940.
Pursuant to the Class A Plan, the
25
Pioneer America Income Trust
NOTES TO FINANCIAL STATEMENTS 6/30/03 (unaudited) (continued)
Trust pays PFD a service fee of up to 0.25% of the average daily net assets
attributable to Class A shares in reimbursement of its actual expenditures to
finance activities primarily intended to result in the sale of Class A shares.
Pursuant to the Class B Plan and the Class C Plan, the Trust pays PFD 1.00% of
the average daily net assets attributable to each class of shares. The fee
consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class B and Class C shares. Pursuant to the
Class R Plan, the Trust pays PFD 0.50% of the average daily net assets
attributable to Class R shares for distribution services. Included in due to
affiliates is $166,630 in distribution fees payable to PFD at June 30, 2003. The
Trust also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Trust to pay securities dealers, plan
administrators or other services organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Trust a
service fee of up to 0.25% of the Trust's daily net assets attributable to Class
R shares held by such plans.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within one year of purchase.
Class B shares that are redeemed within six years of purchase are subject to a
CDSC at declining rates beginning at 4.00%, based on the lower of cost or market
value of shares being redeemed. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. Redemptions of Class R shares within 18
months of purchase may be subject to a CDSC of 1.00%. Proceeds from the CDSCs
are paid to PFD. For the six months ended June 30, 2003, CDSCs in the amount of
$147,641 were paid to PFD.
5. Expense Offsets
The Trust has entered into certain expense offset arrangements resulting in a
reduction in the Trust's total expenses. For the six months ended June 30, 2003,
the Trust's expenses were reduced by $4,150 under such arrangements.
26
Pioneer America Income Trust
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
Mary K. Bush Osbert M. Hood, Executive
Richard H. Egdahl, M.D. Vice President*
Margaret B.W. Graham Vincent Nave, Treasurer
Osbert M. Hood* Joseph P. Barri, Secretary
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
*Mr. Hood was elected Trustee and Executive Vice President on June 3, 2003.
Proxy Voting and Procedures of the Fund are available without charge, upon
request, by calling our toll free number (1-800-225-6292). This information is
also on the Securities and Exchange Commission's web site at
http://www.sec.gov.
27
RETIREMENT PLANS FROM PIONEER
Pioneer has a long history of helping people work toward their retirement goals,
offering plans suited to the individual investor and businesses of all sizes.
For more information on Pioneer retirement plans, contact your investment
professional, or call Pioneer at 1-800-622-0176.
Individual Retirement Accounts (IRAs)
Traditional IRA*
For anyone under age 701/2 earning income. Individuals can contribute up to
$3,000 annually. Earnings are tax-deferred, and contributions may be
tax-deductible.
Roth IRA*
Available to single individuals earning less than $110,000 in income annually,
and married couples with joint income less than $160,000. Contributions of up to
$3,000 a year are not tax-deductible, but all earnings are tax-free for
qualified withdrawals. Distributions are tax and penalty-free if certain
conditions are met.
Employer-Sponsored Plans
Uni-K Plan*
A 401(k) plan designed specifically for any business that employs only owners
and their spouses. Participants can make salary deferral contributions up to
$11,000 per year. In addition, each year the business may contribute up to 25%
of pay.
401(k) Plan*
Allows employees to make pre-tax contributions through payroll deduction, up to
$11,000 per year. Employers' contributions are discretionary. The 401(k) offers
companies maximum flexibility.
SIMPLE IRA Plan*
The Savings Incentive Match PLan for Employees (SIMPLE) is designed for
employers with 100 or fewer eligible employees. Employees can decide whether to
contribute. Employers must contribute.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
28
403(b) Plan*
Also known as a Tax-Sheltered Account (TSA), this plan lets employees of public
schools, non-profit hospitals and other tax-exempt organizations make pre-tax
contributions through payroll deduction.
SEP-IRA
The Simplified Employee Pension (SEP) plan lets self-employed people and
small-business owners make tax-deductible contributions of up to 25% of income,
while maintaining complete contribution flexibility each year.
Profit Sharing Plan
Companies can decide each year whether - and how much - to contribute to
participants, up to 25% of each participant's pay. Can include vesting schedules
that are not available with a SEP-IRA.
Age-Based Profit Sharing Plan
Employer contributions are flexible, but are based on a formula using age and
salary. Each year, a business can contribute up to 25% of the total eligible
payroll.
Money Purchase Pension Plan (MPP)
Allows employer contributions, up to 25% of pay annually. Companies must
contribute a fixed percentage of pay each year.
Defined Benefit Pension Plan
Requires a business to contribute enough each year to fund a specific future
benefit. Most beneficial to older employees who need to accumulate assets
rapidly.
* Special Catch-Up Provisions are available to individuals age 50 and older
to contribute additional amounts to their retirement accounts. For more
information, call our Retirement Plans Information line at 1-800-622-0176.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
29
HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvest.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current Fund prospectus.
[LOGO] PIONEER Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, Massachusetts 02109
www.pioneerfunds.com
13712-00-0803
(C) 2003 Pioneer Funds Distributor, Inc.
Underwriter of Pioneer mutual funds, Member SIPC
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
Not applicable for semiannual reports; to be answered on annual submissions
after July 15, 2003.
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.
(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)).
(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 for semiannual reports; to be answered on annual submissions
after July 15, 2003.
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.
(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.
(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.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(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.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
Not applicable for semiannual reports; to be answered on annual submissions
after December 15, 2003.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation of
these
controls and procedures as of a date within 90 days prior to the filing date of
this report.
(b) There were no significant changes in the registrants internal controls
or in other factors that could significantly affect these controls subsequent
to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
Not applicable.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer America Income Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date August 25, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date August 25, 2003
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date August 25, 2003
* Print the name and title of each signing officer under his or her signature.