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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 811-02864
Pioneer Bond Fund
(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
-----------------------
BOND
FUND
Annual
Report
6/30/03
[Pioneer Investments logo]
Table of Contents
- --------------------------------------------------------------------------------
Letter from the President 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 8
Schedule of Investments 12
Financial Statements 23
Notes to Financial Statements 32
Report of Independent Auditors 40
Trustees, Officers and Service Providers 41
Programs and Services for Pioneer Shareowners 48
Pioneer Family of Mutual Funds 50
Pioneer Bond Fund
- --------------------------------------------------------------------------------
LETTER FROM THE PRESIDENT 6/30/03
- --------------------------------------------------------------------------------
Dear Shareowners,
- --------------------------------------------------------------------------------
[sidebar on right side of page]
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."
[end sidebar]
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 M. Hood
Osbert M. 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.
1
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 6/30/03
- --------------------------------------------------------------------------------
Portfolio Maturity
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[The following information was represented as a pie chart in the printed
material.]
0-1 Year 8.2%
1-3 Years 23.6%
3-4 Years 6.5%
4-6 Years 22.9%
6-8 Years 27.5%
8+ Years 11.3%
Portfolio Quality
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[The following information was represented as a pie chart in the printed
material.]
U.S. Government and Agency Obligations 35.6%
AAA 0.4%
AA 1.4%
A 6.6%
BBB 36.7%
BB 9.5%
B & Lower 8.9%
Commercial Paper 0.9%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. U.S. Treasury Notes, 7.5%, 11/15/16 3.61%
2. U.S. Treasury Notes, 3.5%, 1/15/11 2.98
3. U.S. Treasury Notes, 3.0%, 7/15/12 2.22
4. Federal Home Loan Mortgage Corp., 6.0%, 3/1/33 1.85
5. Federal National Mortgage Association, 6.0%, 4/1/33 1.42
6. Government National Mortgage Association, 6.0%, 3/15/33 1.37
7. Government National Mortgage Association, 7.5%, 12/15/31 1.14
8. Illinova Corp., 7.5%, 6/15/09 1.05
9. British Sky Broadcasting, 8.2%, 7/15/09 1.01
10. Timken Co., 5.75%, 2/15/10 1.00
* This list excludes money market instruments. Portfolio holdings will vary for
other periods.
2
Pioneer Bond Fund
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PERFORMANCE UPDATE 6/30/03 CLASS A SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/03 6/30/02
$9.41 $8.89
Distributions per Share Net Investment Short-Term Long-Term
(7/1/02 - 6/30/03) Income Capital Gains Capital Gains
$0.4633 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund at public offering price, compared to that
of the Lehman Brothers Aggregate Bond Index.
Average Annual Total Returns
(as of June 30, 2003)
Net Asset Public Offering
Period Value Price*
10 Years 6.27% 5.78%
5 Years 6.37 5.39
1 Year 11.38 6.36
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period.
[The following information was represented as a mountain chart in the printed
material.]
Value of $10,000 Investment+
Pioneer Lehman Aggregate
Bond Fund* Bond Index
6/93 9550 10000
9432 9869
6/95 10515 11107
10938 11664
6/97 11713 12615
12889 13944
6/99 13063 14380
13232 15035
6/01 14648 16724
15754 18168
6/03 17547 20064
+ The Lehman Brothers Aggregate Bond Index is a widely recognized market
value-weighted measure of government and corporate securities, agency mortgage
pass-through securities, asset-backed securities and commercial
mortgage-backed securities. Index returns are calculated monthly, 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. Returns 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 the redemption of Fund shares.
3
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/03 CLASS B SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/03 6/30/02
$9.37 $8.87
Distributions per Share Net Investment Short-Term Long-Term
(7/1/02 - 6/30/03) Income Capital Gains Capital Gains
$0.4027 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
Average Annual Total Returns
(as of June 30, 2003)
If If
Period Held Redeemed*
Life-of-Class
(4/4/94) 6.03% 6.03%
5 Years 5.51 5.35
1 Year 10.44 6.44
All returns reflect reinvestment of distributions.
* Reflects deduction of the maximum applicable contingent deferred sales charge
(CDSC) at the end of the period. The maximum CDSC of 4% declines to zero
over six years.
[The following information was represented as a mountain chart in the printed
material.]
Value of $10,000 Investment+
Pioneer Lehman Aggregate
Bond Fund* Bond Index
4/94 10000 10000
9896 9977
6/95 10942 11229
11286 11792
6/97 11990 12753
13095 14097
6/99 13170 14538
13233 15200
6/01 14518 16908
15502 18368
6/03 17121 20281
+ Index comparisons begin 4/30/94. The Lehman Brothers Aggregate Bond Index is
a widely recognized market value-weighted measure of government and corporate
securities, agency mortgage pass-through securities, asset-backed securities
and commercial mortgage-backed securities. Index returns are calculated
monthly, 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. Returns 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 the redemption of Fund shares.
4
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/03 CLASS C SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/03 6/30/02
$9.31 $8.83
Distributions per Share Net Investment Short-Term Long-Term
(7/1/02 - 6/30/03) Income Capital Gains Capital Gains
$0.4043 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund at public offering price, compared to that
of the Lehman Brothers Aggregate Bond Index.
Average Annual Total Returns
(as of June 30, 2003)
Net Asset Public Offering
Period Value Price/CDSC*
Life-of-Class
(1/31/96) 5.22% 5.08%
5 Years 5.36 5.16
1 Year 10.28 9.16
All returns reflect reinvestment of distributions.
* Reflects deduction of the 1% sales charge at the beginning of the period. The
1% contingent deferred sales charge (CDSC) applies to redemptions made
within one year of purchase.
[The following information was represented as a mountain chart in the printed
material.]
Value of $10,000 Investment+
Pioneer Lehman Aggregate
Bond Fund* Bond Index
1/96 9900 10000
9599 9813
6/97 10188 10613
11117 11731
6/99 11183 12099
11224 12649
6/01 12285 14071
13089 15286
6/03 14434 16878
+ The Lehman Brothers Aggregate Bond Index is a widely recognized market
value-weighted measure of government and corporate securities, agency mortgage
pass-through securities, asset-backed securities and commercial
mortgage-backed securities. Index returns are calculated monthly, 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. Returns 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 the redemption of Fund shares.
5
Pioneer Bond Fund
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PERFORMANCE UPDATE 6/30/03 CLASS R SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/03 4/1/03**
$9.50 $9.19
Distributions per Share Net Investment Short-Term Long-Term
(4/1/03 - 6/30/03) Income Capital Gains Capital Gains
$0.1067 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
Average Annual Total Returns+
(as of June 30, 2003)
If If
Period Held Redeemed*
10 Years 5.70% 5.70%
5 Years 6.00 6.00
1 Year 11.72 10.72
All returns reflect reinvestment of distributions.
* Reflects deduction 1% CDSC. Shares sold within 18 months of purchase may be
subject to the CDSC.
[The following information was represented as a mountain chart in the printed
material.]
Value of $10,000 Investment+
Pioneer Lehman Aggregate
Bond Fund* Bond Index
6/93 10000 10000
9873 9869
6/95 11033 11107
11431 11664
6/97 12192 12615
13007 13944
6/99 13170 14380
13098 15035
6/01 14493 16724
15580 18168
6/03 17406 20064
** Class commenced operations on April 1, 2003.
+ 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.
++ The Lehman Brothers Aggregate Bond Index is a widely recognized market
value-weighted measure of government and corporate securities, agency
mortgage pass-through securities, asset-backed securities and commercial
mortgage-backed securities. Index returns are calculated monthly, 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. Returns 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 the redemption of Fund shares.
6
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/03 CLASS Y SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/03 6/30/02
$9.35 $8.87
Distributions per Share Net Investment Short-Term Long-Term
(7/1/02 - 6/30/03) Income Capital Gains Capital Gains
$0.5374 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
Average Annual Total Returns
(as of June 30, 2003)
If If
Period Held Redeemed
Life-of-Class
(9/20/01) 9.74% 9.74%
1 Year 11.86 11.86
All returns reflect reinvestment of distributions.
[The following information was represented as a mountain chart in the printed
material.]
Value of $10,000 Investment+
Pioneer Lehman Aggregate
Bond Fund* Bond Index
9/01 10000 10000
6/02 10507 10383
6/03 11754 11464
+ The Lehman Brothers Aggregate Bond Index is a widely recognized market
value-weighted measure of government and corporate securities, agency
mortgage pass-through securities, asset-backed securities and commercial
mortgage-backed securities. Index returns are calculated monthly, 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. Returns 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 the redemption of Fund shares.
7
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/03
- --------------------------------------------------------------------------------
The 12 months ending June 30, 2003, provided an excellent environment for bond
investing. High-grade bonds turned in outstanding performance early in the
period as interest rates fell, while corporate bonds excelled later amid rising
expectations for an economic recovery. In the following discussion, Kenneth J.
Taubes details the factors that influenced Pioneer Bond Fund's performance
during the 12-month period. Mr. Taubes, head of Pioneer's Fixed Income Group,
oversees the team responsible for daily management of the Fund.
Q: How did the Fund perform during the 12 months ended June 30, 2003?
A: The Fund performed strongly, outpacing its benchmarks during a favorable
period for fixed income investments. For the 12 months ended June 30, 2003,
The Fund's Class A shares had a total return of 11.38% at net asset value,
while Class B and Class C shares returned 10.44% and 10.28%, respectively.
During the same period, the Lehman Aggregate Bond Index had a return of
10.40%. On June 30, 2003, the 30-day SEC yield on Class A shares was 3.56%.
Q: What were the principal factors that influenced performance during the year?
A: Our emphasis on corporate bonds was a major factor in the Fund's strong
performance, especially after October 2002, when corporate securities began
rising on hopes of improving economic conditions. However, our Treasury and
mortgage holdings also did well on an absolute basis. In addition, we kept
the Fund's duration - or sensitivity to interest-rate changes - higher than
the Lehman Brothers benchmark for most of the period. This strategy added to
performance during a year in which interest rates declined and bond prices
rose.
Falling interest rates had the greatest direct impact on Treasuries and
other high-grade bonds. Over the full period, the yields of 30-year
Treasuries fell by almost one percentage point (0.92%), while the yields of
10-year Treasuries declined by 1.27 percentage points and those of
three-year Treasuries plummeted by 1.81 percentage points. These declines
were in anticipation of short-term interest rate cuts by the U.S. Federal
Reserve, which continued its accommodative monetary policy in an effort to
boost the economy.
8
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Most of the declines in rates came early in the period, which was when
Treasuries and other high-grade bonds had their best performance.
For the full year, high-yielding corporate securities performed even better
than high-grade securities, with lower-quality bonds outpacing
investment-grade corporates. The Merrill Lynch High Yield Master Index, for
example, rose by more than 20% for the year, while the Merrill Lynch
Investment Grade Corporate Index delivered a total return of more than 16%.
Corporate bonds delivered most of their performance after October 2002.
Investors correctly anticipated that the Federal Reserve would make further
cuts in short-term rates, easing the flow of money into the economy. In
addition, evidence began accumulating that the business sector had begun to
stabilize. Many corporations had cut their overhead expenses, repaired their
balance sheets and refinanced their debt to take advantage of lower interest
rates. In addition, the weakening of the U.S. dollar on international
currency exchanges tended to help corporations, especially those selling
products overseas and those competing domestically against imported goods.
Lagging corporate bonds and Treasuries were mortgage-backed securities, the
performance of which was affected by the wave of mortgage refinancing
precipitated by falling interest rates. But even mortgages delivered
healthy, positive returns for the 12 months.
Q: What were your chief strategies?
A: We kept the Fund fully invested, with emphasis on corporate securities, both
investment grade and high yield. At the end of the fiscal year, on June 30,
2003 more than 58% of Fund assets were invested in corporate bonds,
including 18.4% in high-yield securities. Mortgage-backed securities
accounted for another 24% of Fund assets, while 10% was invested in Treasury
securities.
The Fund's duration on June 30, 2003 was 4.7 years, high relative to the
Lehman index. For much of the period, we maintained an even higher duration.
9
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/03 (continued)
- --------------------------------------------------------------------------------
Average credit quality on June 30, 2003 was A-, slightly less than the A
average on December 31, 2002. The difference reflected our increased
emphasis on corporate bonds.
Q: What type of investments most influenced performance?
A: While just about every type of investment had good performance, we had
particularly favorable results from some of our newer holdings in the
telecommunications and utility industries. We had maintained very small
weightings in telecommunications during that industry's slump, and we also
had de-emphasized the utility sector because of the well publicized problems
of energy merchant companies in the wake of the Enron scandal.
We began adding to our telecommunications positions during the period,
focusing on those companies that we believed would be the industry
survivors. Our investments in the bonds of companies such as AT&T Wireless
and Sprint were particularly successful.
We also found some attractive utility bonds that turned into performance
leaders, including those of Constellation Energy and Dominion Resources. CMS
Panhandle bonds, issued by an energy pipeline company, also gained when the
company was involved in a merger and the securities were upgraded from high
yield to investment grade.
Our Allmerica Financial bond holdings also performed very well. The
company's bonds started to recover after declining because of investor fears
about the exposure of Allmerica's variable annuity business to the declining
equity markets.
Two detractors from performance were our holdings in HealthSouth and in UAL
bonds, both of which were modest positions for the Fund. HealthSouth's
securities fell amid allegations of financial statement fraud, while the UAL
bonds were pulled down by concerns about the future of the commercial
airline industry and the company's ultimate bankruptcy filing.
10
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q: What is your investment outlook for the bond market?
A: We believe interest rates may be near their low points. As a result we have
begun to decrease the Fund's exposure to interest-rate risk by lowering
duration. We also have reduced our exposure to rate increases by cutting our
Treasury positions and increasing our mortgage holdings, where we think the
risks from prepayments have been reflected in the securities prices.
In the absence of any unanticipated major events, we think the economic
outlook should brighten, helped by both the monetary stimulus from the
Federal Reserve and the fiscal stimulus from the major tax cut pushed
through Congress by President Bush.
We believe corporate bonds continue to have the potential to outperform
governments, although their performance advantage is likely to be more
moderate. We intend to remain overweighted in corporate securities, while
reducing our exposure to the possibility of increasing interest rates.
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.
11
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/03
- --------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
COLLATERALIZED MORTGAGE OBLIGATION - 0.4%
Insurance - 0.4%
Multi-Line Insurance - 0.4%
$1,000,000 NR/Aaa National Realty Finance 1999-A2, 6.48%,
1/15/09 $ 1,150,856
------------
Total Insurance $ 1,150,856
------------
TOTAL COLLATERIZED MORTGAGE OBLIGATION
(Cost $1,009,475) $ 1,150,856
------------
CORPORATE BONDS - 60.3%
Energy - 2.6%
Oil & Gas Equipment and Services - 0.9%
2,350,000 BBB/Baa3 Seacor Smit Inc., 5.875%, 10/1/12 (144A) $ 2,520,239
------------
Oil & Gas Exploration & Production - 0.4%
1,150,000 BBB+/Baa3 Pure Resources Inc., 7.125%, 6/15/11 $ 1,336,882
------------
Oil & Gas Refining, Marketing & Transportation - 1.3%
1,375,000 BB/Ba2 Semco Energy Inc., 7.125%, 5/15/08 (144A) $ 1,436,875
1,920,000 BBB/Baa3 Valero Energy Corp., 6.875%, 4/15/12 2,176,460
200,000 BBB/Baa3 Valero Energy Corp., 7.375%, 3/15/06 221,806
------------
$ 3,835,141
------------
Total Energy $ 7,692,262
------------
Materials - 9.4%
Commodity Chemicals - 1.2%
1,000,000 BB/Ba3 Arco Chemical Co., 9.8%, 2/1/20 $ 880,000
1,100,000 BBB-/Ba1 Mehthanes Corp., 8.75%, 8/15/12 1,232,000
1,400,000 BB+/Ba2 Nova Chemicals Corp., 7.0%, 5/15/06 1,477,000
------------
$ 3,589,000
------------
Diversified Chemical - 0.3%
1,000,000 B-/Caa1 Huntsman ICI Chemicals, 10.125%, 7/1/09 $ 960,000
------------
Diversified Metals & Mining - 1.4%
2,575,000 BBB/Ba1 Kennametal Inc., 7.2%, 6/15/12 $ 2,818,191
1,200,000 BBB-/Baa3 Phelps Dodge Corp., 9.5%, 6/1/31 1,438,358
------------
$ 4,256,549
------------
Fertilizers & Agricultural Chemicals - 0.5%
1,250,000 B+/Ba3 Scott's Corp., 8.625%, 1/15/09 $ 1,337,500
------------
12 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Metal & Glass Containers - 1.1%
$1,000,000 BB/Ba3 Ball Corp., 6.875%, 12/15/12 $ 1,060,000
2,000,000 B+/B2 Greif Bros Corp., 8.875%, 8/1/12 (144A) 2,150,000
------------
$ 3,210,000
------------
Paper Packaging - 1.3%
810,000 B+/B2 Graphic Packaging Corp., 8.625%, 2/15/12 $ 826,200
2,000,000 BBB/Baa3 Sealed Air Corp., 5.375%, 4/15/08 (144A) 2,098,996
800,000 B/B2 Stone Container Corp., 9.75%, 2/1/11 876,000
------------
$ 3,801,196
------------
Paper Products - 1.7%
1,125,000 BB+/Ba1 Abitibi-Consolidated, Inc., 6.95%, 12/15/06 $ 1,189,386
1,265,000 BB+/Ba1 Abitibi-Consolidated, Inc., 6.95%, 4/1/08 1,331,385
1,400,000 BBB/Baa2 Champion International Corp., 7.15%, 12/15/27 1,547,365
1,150,000 B+/B2 FiberMark Inc., 10.75%, 4/15/11 (144A) 1,150,000
------------
$ 5,218,136
------------
Specialty Chemicals - 1.5%
500,000 BBB-/Baa3 Ferro Corp., 7.125%, 4/1/28 $ 464,704
2,000,000 BBB-/Baa3 Ferro Corp., 9.125%, 1/1/09 2,349,382
1,950,000 BB-/B2 Polyone Corp., 8.875%, 5/1/12 1,735,500
------------
$ 4,549,586
------------
Steel - 0.4%
1,000,000 AA-/A1 Nucor Corp., 6.0%, 1/1/09 (144A) $ 1,110,926
------------
Total Materials $ 28,032,893
------------
Capital Goods - 5.3%
Aerospace & Defense - 1.3%
1,500,000 B/B3 K&F Industries, 9.625%, 12/15/10 $ 1,665,000
500,000 BB-/Ba3 L-3 Communications Corp., 6.125%, 7/15/13
(144A) 505,000
1,500,000 BB-/Ba3 L-3 Communications Corp., 7.625%, 6/15/12 1,650,000
------------
$ 3,820,000
------------
Building Products - 1.1%
1,500,000 B/B2 NCI Building Systems, Inc., 9.25%, 5/1/09 $ 1,605,000
1,650,000 B+/B1 Nortek Inc., 9.125%, 9/1/07 1,724,250
------------
$ 3,329,250
------------
Electrical Components & Equipment - 1.0%
2,750,000 BBB-/Ba1 Thomas & Betts Corp., 7.25%, 6/1/13 $ 2,750,000
------------
The accompanying notes are an integral part of these financial statements. 13
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/03 (continued)
- --------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Industrial Machinery - 1.9%
$1,000,000 B+/B2 The Manitowoc Co., Inc., 10.5%, 8/1/12 $ 1,110,000
1,950,000 B+/B2 JLG Industries Inc., 8.375%, 6/15/12 1,774,500
2,775,000 BBB-/Baa3 Timken Co., 5.75%, 2/15/10 2,921,534
------------
$ 5,806,034
------------
Total Capital Goods $ 15,705,284
------------
Commercial Services & Supplies - 0.2%
Office Services & Supplies - 0.2%
750,000 BB-/B1 Moore North American Finance, 7.875%,
1/15/11 (144A) $ 781,875
------------
Total Commercial Services & Supplies $ 781,875
------------
Transportation - 1.8%
Air Freight & Couriers - 0.8%
2,000,000 BBB+/A3 Federal Express Corp., 8.4%, 3/23/10 $ 2,265,060
------------
Airlines - 1.0%
1,500,000 B-/Caa1 Northwest Airlines Inc., 9.875%, 3/15/07 $ 1,185,000
1,631,638 A+/A2 Southwest Airlines Co., 7.67%, 1/2/14 1,853,916
------------
$ 3,038,916
------------
Total Transportation $ 5,303,976
------------
Automobiles & Components - 1.6%
Auto Parts & Equipment - 0.1%
150,000 BB+/Ba1 Lear Corp., 7.96%, 5/15/05 (144A) $ 159,750
------------
Automobile Manufacturers - 1.5%
500,000 BBB/A3 General Motors Capital Corp., 7.5%, 7/15/05 $ 535,823
2,000,000 BBB/Baa1 General Motors Corp., 9.4%, 7/15/21 2,149,004
1,500,000 BBB/Baa2 Hertz Corp., 6.25%, 3/15/09 1,513,305
360,000 BBB/Baa2 Hertz Corp., 7.4%, 3/1/11 368,708
------------
$ 4,566,840
------------
Total Automobiles & Components $ 4,726,590
------------
Consumer Durables & Apparel - 0.9%
Home Furnishings - 0.5%
1,355,000 BBB/Baa2 Mohawk Industries Inc., 7.2%, 4/15/12 $ 1,587,823
------------
Homebuilding - 0.4%
1,000,000 BB/Ba2 Beazer Homes USA, 8.375%, 4/15/12 $ 1,107,500
------------
Total Consumer Durables & Apparel $ 2,695,323
------------
14 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Hotels, Restaurants & Leisure - 3.1%
Casinos & Gaming - 0.7%
$2,000,000 BBB-/Ba1 Park Place Entertainment, 7.0%, 4/15/13
(144A) $ 2,140,000
------------
Hotels, Resorts & Cruise Lines - 1.9%
1,885,000 BBB-/Ba1 Hilton Hotels, 7.625%, 12/1/12 $ 2,064,075
2,250,000 BB+/Ba1 Starwood Hotels Resorts, 7.875%, 5/1/12 2,463,750
1,200,000 B/B2 John Q. Hamons Hotels, 8.875%, 5/15/12 1,260,000
------------
$ 5,787,825
------------
Leisure Facilities - 0.5%
1,500,000 B/B2 Premier Parks, Inc., 9.75%, 6/15/07 $ 1,485,000
------------
Total Hotels, Restaurants & Leisure $ 9,412,825
------------
Media - 4.9%
Broadcasting & Cable TV - 2.8%
2,500,000 BB+/Ba1 British Sky Broadcasting, 8.2%, 7/15/09 $ 2,962,500
2,200,000 BBB/Baa3 Continental Cablevision, Inc., 9.5%, 8/1/13 2,532,365
2,400,000 BBB/Baa1 Cox Enterprises, Inc., 7.375%, 6/15/09 (144A) 2,848,898
------------
$ 8,343,763
------------
Movies & Entertainment - 1.2%
220,000 BBB+/Baa1 AOL Time Warner, Inc., 6.125%, 4/15/06 $ 240,558
1,250,000 BBB+/Baa1 AOL Time Warner, Inc., 6.875%, 5/1/12 1,427,020
1,500,000 BBB+/Baa1 AOL Time Warner, Inc., 9.15%, 2/1/23 1,896,053
------------
$ 3,563,631
------------
Publishing - 0.9%
820,000 A-/Baa1 Harcourt General Inc., 7.2%, 8/1/27 $ 925,139
1,550,000 BBB-/Baa3 News America Holdings, 8.5%, 2/23/25 1,935,284
------------
$ 2,860,423
------------
Total Media $ 14,767,817
------------
Retailing - 1.6%
Department Stores - 0.4%
1,136,000 BB+/Ba3 JC Penney Co. Inc., 9.75%, 6/15/21 $ 1,170,080
------------
Distributors - 0.6%
1,950,000 B-/B3 Wesco Distribution Inc., 9.125%, 6/1/08 $ 1,818,375
------------
The accompanying notes are an integral part of these financial statements. 15
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/03 (continued)
- --------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Specialty Stores - 0.6%
$1,675,000 BBB-/Baa3 Toys R Us, 7.875%, 4/15/13 $ 1,801,823
------------
Total Retailing $ 4,790,278
------------
Food & Drug Retailing - 1.0%
Food Distributors - 0.6%
625,000 BBB/Baa3 SuperValu Inc., 7.5%, 5/15/12 $ 712,614
1,000,000 BBB/Baa3 SuperValu Inc., 8.875%, 11/15/22 1,047,123
------------
$ 1,759,737
------------
Hypermarkets & Supercenters - 0.4%
1,000,000 AA/Aa2 Wal-Mart Stores, Inc., 8.62%, 1/1/10 $ 1,158,610
------------
Total Food & Drug Retailing $ 2,918,347
------------
Food, Beverage & Tobacco - 0.8%
Packaged Foods & Meats - 0.8%
2,257,000 BBB/Baa3 Tyson Foods, Inc., 7.0%, 1/15/28 $ 2,278,092
------------
Total Food, Beverage & Tobacco $ 2,278,092
------------
Health Care Equipment & Supplies - 3.4%
Health Care Distributors and Services - 0.6%
1,650,000 BB-/B2 Biovail Corp., 7.875%, 4/1/10 $ 1,749,000
------------
Health Care Equipment - 1.3%
1,070,000 BBB/Baa3 Beckman Instruments, Inc., 7.05%, 6/1/26 $ 1,245,659
500,000 BBB/Baa3 Beckman Industries Inc., 7.45%, 3/4/08 589,794
2,000,000 A-/Baa1 Guidant Corp., 6.15%, 2/15/06 2,171,042
------------
$ 4,006,495
------------
Health Care Facilities - 1.1%
375,000 BBB-/Ba1 Columbia HCA Healthcare Corp., 7.25%,
5/20/08 $ 413,670
2,660,000 BBB-/Ba1 HCA Inc., 6.3%, 10/1/12 2,719,472
------------
$ 3,133,142
------------
Health Care Supplies - 0.4%
1,374,000 BBB-/Ba1 Bausch & Lomb Inc., 7.125%, 8/1/28 $ 1,317,323
------------
Total Health Care Equipment & Supplies $ 10,205,960
------------
Banks - 1.2%
Regional Banks - 0.5%
1,250,000 BBB-/Baa3 Hudson United Bank, 7.0%, 5/15/12 $ 1,422,393
------------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Thrifts & Mortgage Finance - 0.7%
$1,900,000 BBB-/Baa3 Sovereign Bank, 5.125%, 3/15/13 $ 1,962,191
------------
Total Banks $ 3,384,584
------------
Diversified Financials - 4.8%
Consumer Finance - 2.2%
1,500,000 BB+/Baa3 Capital One Financial Corp., 7.125%, 8/1/08 $ 1,599,381
2,250,000 A/A1 Household Finance Co., 6.375%, 10/15/11 2,558,392
2,230,000 BBB+/Baa1 MBNA America Bank, 5.375%, 1/15/08 2,410,982
------------
$ 6,568,755
------------
Diversified Financial Services - 1.8%
1,100,000 A+/Aa2 Associates Corp., 8.15%, 8/1/09 $ 1,332,856
2,450,000 A-/Baa3 Brascan Corp., 5.75%, 3/1/10 2,607,738
1,600,000 BB-/Baa2 PF Export Rec Master Trust, 6.436%,
6/1/15 (144A) 1,620,000
------------
$ 5,560,594
------------
Specialized Finance - 0.8%
2,100,000 BBB-/Baa3 GATX Financial Corp., 8.875%, 6/1/09 $ 2,256,374
------------
Total Diversified Financials $ 14,385,723
------------
Insurance - 2.6%
Life & Health Insurance - 1.0%
2,850,000 BBB/Baa3 Provident Companies Inc., 7.0%, 7/15/18 $ 2,850,000
------------
Multi-Line Insurance - 0.7%
1,000,000 BB-/B1 Allmerica Financial Corp., 7.625%, 10/15/25 $ 890,000
1,000,000 A+/A1 American General Finance Corp., 8.125%,
8/15/09 1,240,860
------------
$ 2,130,860
------------
Property & Casualty Insurance - 0.9%
1,500,000 BBB+/Baa2 Berkley (WR) Corp., 5.875%, 2/15/13 $ 1,595,300
1,000,000 BBB+/Baa2 Berkley (WR) Corp., 8.7%, 1/1/22 1,244,724
------------
$ 2,840,024
------------
Total Insurance $ 7,820,884
------------
Real Estate - 4.9%
Real Estate Management & Development - 0.8%
2,200,000 BB-/Ba3 Forest City Enterprises, 7.625%, 6/1/15 $ 2,307,250
------------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/03 (continued)
- --------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Real Estate Investment Trusts - 4.1%
$1,500,000 B-/B3 BF Saul REIT, 9.75%, 4/1/08 $ 1,500,000
1,100,000 BBB-/Baa3 Colonial Realty LP, 6.15%, 4/15/13 1,164,525
1,110,000 BBB-/Baa3 Colonial Realty Senior Note, 7.0%, 7/14/07 1,235,611
2,010,000 BBB-/Ba1 Health Care REIT, Inc., 7.5%, 8/15/07 2,147,643
935,000 BBB-/Ba1 Health Care REIT, Inc., 8.0%, 9/12/12 1,005,786
1,450,000 BBB-/Baa3 Hospitality Properties Trust, 6.75%, 2/15/13 1,537,755
750,000 BBB/Baa2 Mack-Cali Realty Corp., 4.6%, 6/15/13 733,160
1,500,000 BBB/Baa2 Mack-Cali Realty Corp., 7.25%, 3/15/09 1,759,958
1,250,000 B-/B2 Meristar Hospitality Corp., 9.12%, 1/15/11 1,225,000
------------
$ 12,309,438
------------
Total Real Estate $ 14,616,688
------------
Technology Hardware & Development - 2.1%
Computer Hardware - 0.7%
2,000,000 BBB-/Baa3 NCR Corp., 7.125%, 6/15/09 $ 2,197,012
------------
Technology Distributors - 1.4%
2,600,000 BBB-/Baa3 Arrow Electronics Inc., 6.875%, 7/1/13 $ 2,574,995
1,450,000 BB-/Ba2 Ingram Micro Inc., 9.875%, 8/15/08 (144A) 1,566,000
------------
$ 4,140,995
------------
Total Technology Hardware & Development $ 6,338,007
------------
Semiconductors - 0.3%
700,000 B/B2 Fairchild Semiconductor, 10.5%, 2/1/09 $ 787,500
------------
Total Semiconductors $ 787,500
------------
Telecommunication Services - 1.4%
Integrated Telecommunication Services - 0.6%
1,500,000 BBB-/Baa3 Sprint Capital Corp., 7.625%, 1/30/11 $ 1,712,169
------------
Wireless Telecommunication Services - 0.8%
2,000,000 BBB/Baa2 AT&T Wireless, 8.125%, 5/1/12 $ 2,409,710
------------
Total Telecommunication Services $ 4,121,879
------------
Utilities - 6.4%
Electric Utilities - 5.0%
2,400,000 BBB/Ba2 CMS Panhandle, 6.5%, 7/15/09 $ 2,652,000
2,000,000 BBB+/Baa1 Constellation Energy Group, 7.0%, 4/1/12 2,329,660
1,000,000 BBB+/Baa1 Dominion Resources Inc., 5.7%, 9/17/12 1,097,460
2,000,000 BBB-/Baa3 Empresa Elec Guacolda SA, 8.625%,
4/30/13 (144A) 2,097,433
18 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Electric Utilities - (continued)
$ 800,000 BBB-/Baa3 FLP Energy American Wind, 6.639%,
6/20/23 (144A) $ 800,000
750,000 BBB-/Baa3 Great Lakes Power Inc., 8.3%, 3/1/05 806,211
2,250,000 BBB/Baa1 Oncor Electric Delivery, 6.375%, 1/15/15
(144A) 2,552,455
1,300,000 BBB+/Baa1 Public Service Co. of Colorado, 7.875%, 10/1/12 1,636,660
900,000 BBB-/Baa3 Xcel Energy Inc., 7.0%, 12/1/10 1,029,293
------------
$ 15,001,172
------------
Multi-Utilities & Unregulated Power - 1.4%
3,045,000 B/B3 Illinova Corp., 7.5%, 6/15/09 $ 3,075,450
1,000,000 A-/Baa1 Oneok, Inc., 6.0%, 2/1/09 1,064,090
------------
$ 4,139,540
------------
Total Utilities $ 19,140,712
------------
TOTAL CORPORATE BONDS
(Cost $166,731,051) $179,907,499
------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 35.6%
11,107 Federal Home Loan Mortgage Corp., 10.5%, 4/1/19 12,833
40,483 Federal Home Loan Mortgage Corp., 7.5%, 7/1/30 43,025
31,802 Federal Home Loan Mortgage Corp., 7.0%, 12/1/30 33,348
582,241 Federal Home Loan Mortgage Corp., 6.5%, 7/1/32 605,908
8,483,099 Federal Home Loan Mortgage Corp.,
6.0%, 1/1/33 to 3/1/33 8,795,612
1,198 Federal Home Loan Mortgage Corp.,
REMIC Series 1988-24B, 9.5%, 1/15/05 1,201
94,830 Federal Home Loan Mortgage Corp.,
REMIC Series 1145G, 8.0%, 9/15/06 95,198
55,491 Federal National Mortgage Association, 11.0%, 6/1/19 64,656
1,892 Federal National Mortgage Association, 10.0%, 7/1/19 2,074
69,873 Federal National Mortgage Association,
7.5%, 8/1/20 to 4/1/30 74,470
3,390,191 Federal National Mortgage Association,
7.0%, 7/1/22 to 1/1/32 3,571,695
7,514,034 Federal National Mortgage Association,
6.5%, 5/1/31 to 10/1/32 7,835,997
8,299,322 Federal National Mortgage Association,
6.0%, 2/1/32 to 4/1/33 8,628,031
The accompanying notes are an integral part of these financial statements. 19
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/03 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 1,975,041 Federal National Mortgage Association,
5.5%, 3/1/33 to 5/1/33 $ 2,044,864
253,400 Federal National Mortgage Association,
REMIC Series 95-23D, 7.0%, 10/25/07 271,915
102,895 Federal National Mortgage Association,
REMIC Series 1993-129KB, 6.5%, 4/25/08 103,502
55,842 Federal National Mortgage Association,
REMIC Series 1989-19A, 10.3%, 4/25/19 62,368
7,751 Federal National Mortgage Association,
REMIC Series 1989-19B, 10.3%, 4/25/19 10,564
1,000,000 Government National Mortgage Association,
5.0%, TBA 30 YRS 1,024,062
75,580 Government National Mortgage Association,
10.0%, 5/15/04 to 7/15/20 86,647
7,340 Government National Mortgage Association,
9.5%, 5/15/20 8,275
45,835 Government National Mortgage Association,
7.75%, 2/15/30 49,269
4,091,519 Government National Mortgage Association,
7.5%, 2/15/26 to 12/15/31 4,348,249
4,976,573 Government National Mortgage Association,
7.0%, 12/15/13 to 6/15/31 5,262,022
15,173,848 Government National Mortgage Association,
6.5%, 2/15/29 to 9/15/32 15,940,812
12,945,623 Government National Mortgage Association,
6.0%, 11/15/32 to 3/15/33 13,579,595
919,966 Government National Mortgage Association,
5.5%, 4/15/33 959,927
25,683 Government National Mortgage Association I,
10.0%, 1/15/06 28,022
77,382 Government National Mortgage Association I,
7.5%, 10/15/29 82,262
493,822 Government National Mortgage Association I,
7.0%, 12/15/30 to 3/15/31 521,650
1,232,043 Government National Mortgage Association II,
7.0%, 1/2/29 to 12/20/30 1,295,981
20 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 92,017 Government National Mortgage Association II,
6.5%, 2/20/29 $ 96,251
7,250,000 U.S. Treasury Notes, 3.5%, 1/15/11 8,713,159
1,000,000 U.S. Treasury Notes, 4.875%, 2/15/12 1,111,562
5,750,000 U.S. Treasury Notes, 3.0%, 7/15/12 6,483,309
2,250,000 U.S. Treasury Notes, 4.0%, 11/15/12 2,341,319
7,775,000 U.S. Treasury Notes, 7.5%, 11/15/16 10,554,260
25,000 U.S. Treasury Notes, 7.875%, 2/15/21 35,692
1,000,000 U.S. Treasury Bonds, 8.0%, 11/15/21 1,448,712
------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $101,598,279) $106,228,298
------------
FOREIGN GOVERNMENT SPONSORED - 0.7%
1,950,000 Republic Of Chile, 5.5%, 1/15/13 $ 2,063,100
------------
TOTAL FOREIGN GOVERNMENT SPONSORED
(Cost $1,940,510) $ 2,063,100
------------
MUNICIPAL BONDS - 0.9%
Government Security - 0.9%
2,100,000 State General Obligation, 5.25%, 2/1/28 $ 2,147,775
570,000 Tobacco Settlement Authority Iowa, 6.79%, 6/1/10 592,544
------------
$ 2,740,319
------------
TOTAL MUNICIPAL BONDS
(Cost $2,729,534) $ 2,740,319
------------
TEMPORARY CASH INVESTMENTS - 4.4%
Repurchase Agreement - 3.3%
9,800,000 Bear Stearns & Co., Inc., 1.08% dated 6/30/03,
repuchase price of $9,800,000 plus accrued
interest on 7/1/03, collateralized by $9,576,000
U.S. Treasury Bond, 11.875%, 11/15/03 $ 9,800,000
------------
Securities Lending Collateral - 1.1%
3,330,705 Securities Lending Investment Fund, 1.21% $ 3,330,705
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $13,130,705) $ 13,130,705
------------
TOTAL INVESTMENT IN SECURITIES - 102.3%
(Cost $287,139,554)(a)(b) $305,220,777
------------
OTHER ASSETS AND LIABILITIES - (2.3)% $ (7,019,096)
------------
TOTAL NET ASSETS - 100.0% $298,201,681
============
The accompanying notes are an integral part of these financial statements. 21
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/03 (continued)
- --------------------------------------------------------------------------------
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At June 30, 2003 the
value of these securities amounted to $13,594,809 or 4.6% of total net
assets.
Note: The Fund'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.
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.
(a) At June 30, 2003, the net unrealized gain on investment,
based on cost for federal income tax purposes of
$287,570,821 was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $18,512,080
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (862,124)
-----------
Net unrealized gain $17,649,956
-----------
(b) At June 30, 2003 the Fund had a net capital loss carryforward of
$14,182,972 which will expire between 2004 and 2011 if not utilized.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended June 30, 2003, were as follows:
Purchases Sales
----------- -----------
Long-term US Government $91,333,870 $76,084,729
Other Long-term Securities $91,597,453 $49,430,321
22 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 6/30/03
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (including securities loaned of
$3,260,049) (cost $287,139,554) $305,220,777
Cash 75,719
Receivables -
Investment securities sold 1,655,784
Fund shares sold 1,194,162
Interest 4,088,311
Other 510
------------
Total assets $312,235,263
------------
LIABILITIES:
Payables -
Investment securities purchased $ 9,578,298
Fund shares repurchased 420,873
Upon return of securities loaned 3,330,705
Dividends 204,087
Due to affiliates 345,475
Accrued expenses 154,144
------------
Total liabilities $ 14,033,582
------------
NET ASSETS:
Paid-in capital $293,639,279
Accumulated undistributed net investment income 1,095,418
Accumulated net realized loss on investments (14,614,239)
Net unrealized gain on investments 18,081,223
------------
Total net assets $298,201,681
============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $183,338,146/19,484,350 shares) $ 9.41
============
Class B (based on $77,367,129/8,258,756 shares) $ 9.37
============
Class C (based on $29,776,846/3,197,316 shares) $ 9.31
============
Class R (based on $514.66/54.17 shares) $ 9.50
============
Class Y (based on $7,719,045/825,331 shares) $ 9.35
============
MAXIMUM OFFERING PRICE:
Class A ($9.41 [divided by] 95.5%) $ 9.85
============
Class C ($9.31 [divided by] 99.0%) $ 9.40
============
The accompanying notes are an integral part of these financial statements. 23
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 6/30/03
INVESTMENT INCOME:
Interest $16,666,299
-----------
EXPENSES:
Management fees $1,339,278
Transfer agent fees
Class A 481,205
Class B 269,473
Class C 125,837
Class Y 908
Distribution fees
Class A 408,260
Class B 741,501
Class C 249,919
Class R 1
Administrative fees 57,109
Custodian fees 24,784
Registration fees 116,216
Printing fees 107,813
Professional fees 86,267
Fees and expenses of nonaffiliated trustees 13,331
Miscellaneous fees 11,054
----------
Total expenses $ 4,032,956
Less fees paid indirectly (9,893)
-----------
Net expenses $ 4,023,063
-----------
Net investment income $12,643,236
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $ 968,973
Change in net unrealized gain on investments 14,687,945
-----------
Net gain on investments $15,656,918
-----------
Net increase in net assets resulting from operations $28,300,154
===========
24 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 6/30/03 and 6/30/02
Year Ended Year Ended
6/30/03 6/30/02
FROM OPERATIONS:
Net investment income $ 12,643,236 $ 10,507,973
Net realized gain on investments 968,973 607,828
Change in net unrealized gain on investments 14,687,945 2,465,620
------------- -------------
Net increase in net assets resulting from
operations $ 28,300,154 $ 13,581,421
------------- -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.46 and $0.54 per share, respectively) $ (8,363,505) $ (7,557,499)
Class B ($0.40 and $0.48 per share, respectively) (3,314,500) (2,734,621)
Class C ($0.40 and $0.46 per share, respectively) (1,123,049) (568,282)
Class R ($0.11 and $0.00 per share, respectively) (6) --
Class Y ($0.54 and $0.45 per share, respectively) (321,408) (173,109)
------------- -------------
Total distributions to shareowners $ (13,122,468) $ (11,033,511)
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 222,515,591 $ 136,048,667
Shares issued in reorganization -- 33,044,571
Reinvestment of distributions 10,050,710 8,321,639
Cost of shares repurchased (175,102,198) (98,014,964)
------------- -------------
Net increase in net assets resulting from Fund
share transactions $ 57,464,103 $ 79,399,913
------------- -------------
Net increase in net assets $ 72,641,789 $ 81,947,823
NET ASSETS:
Beginning of year 225,559,892 143,612,069
------------- -------------
End of year (including accumulated undistributed
net investment income of $1,095,418 and
$161,700, respectively) $ 298,201,681 $ 225,559,892
============= =============
The accompanying notes are an integral part of these financial statements. 25
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
For the Years Ended 6/30/03 and 6/30/02
'03 Shares '03 Amount '02 Shares '02 Amount
CLASS A
Shares sold 16,128,548 $ 146,153,233 9,485,648 $ 84,087,153
Shares issued in reorganization -- -- 2,857,467 25,353,014
Reinvestment of distributions 745,978 6,774,637 669,010 5,938,451
Less shares repurchased (13,550,753) (122,723,856) (8,017,192) (71,514,559)
----------- -------------- ---------- -------------
Net increase 3,323,773 $ 30,204,014 4,994,933 $ 43,864,059
=========== ============== ========== =============
CLASS B
Shares sold 5,042,987 $ 45,156,069 3,734,792 $ 33,130,445
Shares issued in reorganization -- -- 815,332 7,227,654
Reinvestment of distributions 258,682 2,338,271 212,419 1,882,566
Less shares repurchased (3,777,499) (33,938,002) (2,388,364) (21,291,457)
----------- -------------- ---------- -------------
Net increase 1,524,170 $ 13,556,338 2,374,179 $ 20,949,208
=========== ============== ========== =============
CLASS C
Shares sold 2,962,634 $ 26,458,900 1,672,898 $ 14,746,355
Reinvestment of distributions 84,239 758,804 44,342 391,303
Less shares repurchased (1,894,835) (16,868,680) (517,216) (4,582,952)
----------- -------------- ---------- -------------
Net increase 1,152,038 $ 10,349,024 1,200,024 $ 10,554,706
=========== ============== ========== =============
CLASS Y
Shares sold 525,218 $ 4,746,888 461,986 $ 4,084,714
Shares issued in reorganization -- -- 52,300 463,903
Reinvestment of distributions 19,809 178,998 12,366 109,319
Less shares repurchased (176,436) (1,571,660) (69,912) (625,996)
----------- -------------- ---------- -------------
Net increase 368,591 $ 3,354,226 456,740 $ 4,031,940
=========== ============== ========== =============
CLASS R (a)
Shares sold 54 $ 501
Reinvestment of distributions -- --
Less shares repurchased -- --
----------- --------------
Net increase 54 $ 501
=========== ==============
(a) Class R shares were first publicly offered April 1, 2003.
26 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/03 6/30/02(a) 6/30/01 6/30/00 6/30/99
CLASS A
Net asset value, beginning of year $ 8.89 $ 8.78 $ 8.47 $ 8.94 $ 9.37
-------- -------- ------- -------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.45 $ 0.52 $ 0.57 $ 0.58 $ 0.56
Net realized and unrealized gain (loss) on investments 0.53 0.13 0.31 (0.47) (0.43)
-------- -------- ------- -------- --------
Net increase from investment operations $ 0.98 $ 0.65 $ 0.88 $ 0.11 $ 0.13
Distributions to shareowners:
Net investment income (0.46) (0.54) (0.57) (0.58) (0.56)
-------- -------- ------- -------- --------
Net increase (decrease) in net asset value $ 0.52 $ 0.11 $ 0.31 $ (0.47) $ (0.43)
-------- -------- ------- -------- --------
Net asset value, end of year $ 9.41 $ 8.89 $ 8.78 $ 8.47 $ 8.94
======== ======== ======= ======== ========
Total return* 11.38% 7.58% 10.70% 1.30% 1.35%
Ratio of net expenses to average net assets+ 1.20% 1.16% 1.21% 1.18% 1.04%
Ratio of net investment income to average net assets+ 5.02% 5.79% 6.53% 6.68% 6.01%
Portfolio turnover rate 48% 59% 43% 60% 46%
Net assets, end of year (in thousands) $183,338 $143,713 $98,004 $102,349 $129,487
Ratios with reduction for fees paid indirectly:
Net expenses 1.20% 1.16% 1.18% 1.15% 1.02%
Net investment income 5.02% 5.79% 6.56% 6.71% 6.03%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
(a) As a result of a change in accounting principle, the effect due to mandatory
accretion of discounts and amortization of premiums on debt securities
resulted in a reduction of net investment income of $0.02 per share, an
increase in net realized and unrealized gain (loss) on investments of $0.02
per share, and the ratio of net investment income to average net assets
decreased by 0.18%.
The accompanying notes are an integral part of these financial statements. 27
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/03 6/30/02(a) 6/30/01 6/30/00 6/30/99
CLASS B
Net asset value, beginning of year $ 8.87 $ 8.77 $ 8.44 $ 8.91 $ 9.33
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.37 $ 0.44 $ 0.50 $ 0.50 $ 0.48
Net realized and unrealized gain (loss) on investments 0.53 0.14 0.30 (0.46) (0.42)
------- ------- ------- ------- -------
Net increase from investment operations $ 0.90 $ 0.58 $ 0.80 $ 0.04 $ 0.06
Distributions to shareowners:
Net investment income (0.40) (0.48) (0.47) (0.51) (0.48)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ 0.50 $ 0.10 $ 0.33 $ (0.47) $ (0.42)
------- ------- ------- ------- -------
Net asset value, end of year $ 9.37 $ 8.87 $ 8.77 $ 8.44 $ 8.91
======= ======= ======= ======= =======
Total return* 10.44% 6.78% 9.71% 0.48% 0.57%
Ratio of net expenses to average net assets+ 2.02% 1.95% 2.05% 2.05% 1.86%
Ratio of net investment income to average net assets+ 4.22% 5.02% 5.72% 5.81% 5.18%
Portfolio turnover rate 48% 59% 43% 60% 46%
Net assets, end of year (in thousands) $77,367 $59,729 $38,231 $37,269 $49,816
Ratios with reduction for fees paid indirectly:
Net expenses 2.02% 1.95% 2.04% 2.03% 1.83%
Net investment income 4.22% 5.02% 5.73% 5.83% 5.21%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
(a) As a result of a change in accounting principle, the effect due to mandatory
accretion of discounts and amortization of premiums on debt securities
resulted in a reduction of net investment income of $0.02 per share, an
increase in net realized and unrealized gain (loss) on investments of $0.02
per share, and the ratio of net investment income to average net assets
decreased by 0.18%.
28 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/03 6/30/02(a) 6/30/01 6/30/00 6/30/99
CLASS C
Net asset value, beginning of year $ 8.83 $ 8.73 $ 8.46 $ 8.89 $ 9.31
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.37 $ 0.44 $ 0.48 $ 0.48 $ 0.48
Net realized and unrealized gain (loss) on investments 0.51 0.12 0.30 (0.45) (0.42)
------- ------- ------- ------- -------
Net increase from investment operations $ 0.88 $ 0.56 $ 0.78 $ 0.03 $ 0.06
Distributions to shareowners:
Net investment income (0.40) (0.46) (0.51) (0.46) (0.48)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ 0.48 $ 0.10 $ 0.27 $ (0.43) $ (0.42)
------- ------- ------- ------- -------
Net asset value, end of year $ 9.31 $ 8.83 $ 8.73 $ 8.46 $ 8.89
======= ======= ======= ======= =======
Total return* 10.28% 6.55% 9.46% 0.36% 0.60%
Ratio of net expenses to average net assets+ 2.16% 2.14% 2.18% 2.32% 1.86%
Ratio of net investment income to average net assets+ 4.05% 4.78% 5.56% 5.53% 5.17%
Portfolio turnover rate 48% 59% 43% 60% 46%
Net assets, end of year (in thousands) $29,777 $18,067 $ 7,377 $ 6,264 $10,369
Ratios with reduction for fees paid indirectly:
Net expenses 2.16% 2.15% 2.15% 2.30% 1.83%
Net investment income 4.05% 4.77% 5.59% 5.55% 5.20%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
(a) As a result of a change in accounting principle, the effect due to mandatory
accretion of discounts and amortization of premiums on debt securities
resulted in a reduction of net investment income of $0.01 per share, an
increase in net realized and unrealized gain (loss) on investments of $0.01
per share, and the ratio of net investment income to average net assets
decreased by 0.18%.
The accompanying notes are an integral part of these financial statements. 29
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
4/1/03
to
6/30/03
CLASS R (a)
Net asset value, beginning of period $ 9.19
-------
Increase from investment operations:
Net investment income $ 0.10
Net realized and unrealized gain on investments 0.32
-------
Net increase from investment operations $ 0.42
Distributions to shareowners:
Net investment income (0.11)
-------
Net increase in net asset value $ 0.31
-------
Net asset value, end of period $ 9.50
=======
Total return* 4.55%
Ratio of net expenses to average net assets+ 1.42%**
Ratio of net investment income to average net assets+ 4.13%**
Portfolio turnover rate 48%
Net assets, end of period (in thousands) $ 1
Ratios with reduction for fees paid indirectly:
Net expenses 1.42%**
Net investment income 4.13%**
* 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) Class R shares were first publicly offered on April 1, 2003.
30 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
9/20/01
Year Ended to
6/30/03 6/30/02(b)
CLASS Y (a)
Net asset value, beginning of period $ 8.87 $ 8.85
------- -------
Increase from investment operations:
Net investment income $ 0.51 $ 0.43
Net realized and unrealized gain on investments 0.51 0.04
------- -------
Net increase from investment operations $ 1.02 $ 0.47
Distributions to shareowners:
Net investment income (0.54) (0.45)
------- -------
Net increase in net asset value $ 0.48 $ 0.02
------- -------
Net asset value, end of period $ 9.35 $ 8.87
======= =======
Total return* 11.86% 5.48%
Ratio of net expenses to average net assets+ 0.67% 0.64%**
Ratio of net investment income to average net assets+ 5.54% 6.28%**
Portfolio turnover rate 48% 59%
Net assets, end of period (in thousands) $ 7,719 $ 4,051
Ratios with reduction for fees paid indirectly:
Net expenses 0.67% 0.64%**
Net investment income 5.54% 6.28%**
(a) Class Y shares were first publicly offered on September 20, 2001.
* 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.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
(b) As a result of a change in accounting principle, the effect due to mandatory
accretion of discounts and amortization of premiums on debt securities
resulted in a reduction of net investment income of $0.02 per share, an
increase in net realized and unrealized gain (loss) on investments of $0.02
per share, and the ratio of net investment income to average net assets
decreased by 0.23%.
The accompanying notes are an integral part of these financial statements. 31
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/03
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Bond Fund (the Fund) is a Delaware business trust 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 current income
consistent with preservation of capital.
The Fund offers five classes of shares - Class A, Class B, Class C, Class R, and
Class Y shares. Class R shares were first publicly offered April 1, 2003. Each
class of shares represents an interest in the same portfolio of investments of
the Fund and have equal rights to voting, redemptions, dividends and
liquidation, except that each class of shares can bear different transfer agent
and distributions fees and has exclusive voting rights with respect to the
distribution plans that has been adopted by Class A, Class B, Class C, and Class
R shareowners, respectively. There is no distribution plan for Class Y shares.
On September 28, 2001 (Closing Date), the Fund acquired the assets of the
Pioneer Limited Maturity Bond Fund in exchange solely for (I) the issuance of
Class A, Class B and Class Y shares of beneficial interest of the Fund and (II)
the assumption by the Fund of the liabilities of the Pioneer Limited Maturity
Bond Fund. Following this transfer, the Pioneer Limited Maturity Bond Fund was
liquidated and dissolved and Class A, B, and Y shares of the Fund were
distributed to the former shareowners of the Pioneer Limited Maturity Bond Fund.
The reorganization was accomplished by a tax-free transfer of assets whereby
each shareowner of the Pioneer Limited Maturity Bond Fund received a number of
full and fractional shares of the Fund held as of the Closing Date. The
unrealized appreciation of $707,251 at the date of transfer was treated as
non-taxable by the Pioneer Limited Maturity Bond Fund. As such, the Pioneer Bond
Fund's basis in the securities transferred reflects their historical cost basis
as of the date of transfer. The portfolio turnover shown in the financial
highlights excludes purchases and sales of securities by the Pioneer Limited
Maturity Bond Fund prior to the date of transfer. The shares issued in
connection with the acquisition are included in shares sold in the
32
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
statement of changes in net assets. The net assets, net asset values per share
and shares outstanding as of the Closing Date were:
Limited Maturity Bond Fund
(Pre-reorganization)
- ----------------------------------------------------------------------------
Class A Class B Class Y
- ----------------------------------------------------------------------------
Net Assets $ 25,353,014 $ 7,227,654 $ 463,902
Shares Outstanding 6,789,834 1,943,967 123,913
Net Asset Value Per Share 3.73 3.72 3.74
Bond Fund
(Pre-reorganization)
- -------------------------------------------------------------------------------------------
Class A Class B Class C Class Y
- -------------------------------------------------------------------------------------------
Net Assets $ 105,362,478 $ 42,828,737 $ 9,521,769 $ 1,521,296
Shares
Outstanding 11,875,065 4,831,398 1,079,669 171,511
Net Asset Value
Per Share 8.87 8.86 8.82 8.87
Bond Fund
(Post-reorganization)
- -----------------------------------------------------------------------------------------
Class A Class B Class C Class Y
- -----------------------------------------------------------------------------------------
Net Assets $ 130,715,492 $50,056,389 $9,521,769 $1,985,198
Shares
Outstanding 14,732,532 5,646,730 1,079,669 223,811
Net Asset Value
Per Share 8.87 8.86 8.82 8.87
33
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/03 (continued)
- --------------------------------------------------------------------------------
The Fund's financial statements have been prepared in conformity with accounting
principles generally accepted in the United States of America that require the
management of the 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 investment income, gains 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 Fund.
A. Security Valuation
Security transactions are recorded as of trade date. Securities are valued at
prices supplied by independent pricing services, which consider such factors
as Treasury spreads, yields, maturities and ratings. Valuations may be
supplemented by dealers and other sources, as required. Principal amounts of
mortgage-backed securities are adjusted for monthly paydowns. All
discounts/premiums are accreted/amortized for financial reporting purposes
over the life of the respective securities. Premium and discount related to
certain mortgage-backed securities are amortized or accreted in proportion to
the underlying monthly paydowns. Interest income is recorded on the accrual
basis. Amortization and accretion of premium or discount on debt securities
is included in interest income. 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 Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
34
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The characterization of distributions to shareowners for financial reporting
purposes is determined in accordance with federal income tax rules.
Therefore, the source of the Fund'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.
For the year ending June 30, 2003, the Fund reclassified $2,672,897 to
decrease paid-in capital, $1,412,950 to increase accumulative undistributed
net investment income, and $1,259,947 to decrease accumulated net realized
loss on investments to reflect permanent book/tax differences. The
reclassification has no impact on the net asset value of the Fund and
presents the Fund's capital accounts on a tax basis.
The tax character of distributions paid during the years ended June 30, 2003
and 2002 were as follows:
- --------------------------------------------------------------
2003 2002
- --------------------------------------------------------------
Distributions paid from:
Ordinary income $13,122,468 $11,033,511
Long-term capital gain - -
----------- -----------
$13,122,468 $11,033,511
Return of capital - -
----------- -----------
Total $13,122,468 $11,033,511
=========== ===========
The following shows components of distributable earnings on a federal income
tax basis at June 30, 2003.
- --------------------------------------------------------------
2003
- --------------------------------------------------------------
Undistributed ordinary income $ 1,299,505
Capital loss carryforward (14,182,972)
Undistributed long-term gain -
Unrealized appreciation 17,649,956
-----------
Total $ 4,766,489
===========
35
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/03 (continued)
- --------------------------------------------------------------------------------
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax treatment of amortization and accretion on debt
securities.
C. 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 UniCredito Italiano S.p.A.
(UniCredito Italiano), earned $55,081 in underwriting commissions on the sale
of Fund shares for year 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 Fund,
respectively. Class Y shares are not subject to a distribution plan.
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 Fund 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 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, at the same time, and in the same amount,
except that Class A, Class B, Class C, Class R and Class Y shares can bear
different transfer agent and distribution fees.
E. Repurchase Agreement
With respect to purchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest received
from the counterparties, is required to be at least
36
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 Fund's custodian, or subcustodians. The
Fund'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.
F. Security Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors, with the Fund's custodian acting as the lending
agent. When entering into a loan, the Fund receives collateral, which is
maintained by the custodian and earns income in the form of negotiated
lenders' fees. The Fund also continues to receive interest or dividends on
the securities loaned. Gain or loss in the fair value of the loaned
securities that may occur during the term of the loan will be for the account
of the Fund. The loans are secured by collateral of at least 102%, at all
times, of the fair value of the securities loaned. The fair value of
collateral will be adjusted daily to reflect any price fluctuation in the
value of loaned securities. The Fund has the right under the lending
agreements to recover the securities from the borrower on demand. The Fund
invests cash collateral in the Securities Lending Investment Fund, which is
managed by Brown Brothers Harriman & Co., the Fund's custodian.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), the Fund's investment adviser,
manages the Fund'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 Fund's average daily net assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting, and insurance
premiums, are paid by the Fund. At June 30, 2003, $134,093 was payable to PIM
related to management fees, administrative fees and certain other services and
is included in due to affiliates.
37
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/03 (continued)
- --------------------------------------------------------------------------------
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in due to affiliates is $76,489 in transfer agent
fees payable to PIMSS at June 30, 2003.
4. Distribution and Service Plans
The Fund adopted a Plan 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 under the Investment Company Act of 1940. Pursuant
to the Class A Plan, the Fund 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
Fund 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 Fund pays PFD 0.50% of the average daily net assets
attributable to Class R shares for distribution services. Included in due to
affiliates is $134,893 in distribution fees payable to PFD at June 30, 2003. The
Fund also has adopted a separate service plan for Class R shares (Service Plan).
The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Fund a
service fee of up to 0.25% of the Fund's average 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
38
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
the year ended June 30, 2003, CDSCs in the amount of $254,739 were paid to PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the year ended June 30, 2003, the
Fund's expenses were reduced by $9,893 under such arrangements.
39
Pioneer Bond Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of
Pioneer Bond Fund
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Bond Fund (the "Fund") as of June 30,
2003, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the periods indicated in the two
years 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
audit. The Financial Highlights for each of the three years in the period ended
June 30, 2001 were audited by other auditors who have ceased operations and
whose report, dated August 10, 2001, expressed an unqualified opinion on those
financial highlights.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities as of June 30, 2003, by correspondence with the
custodian and brokers or by other appropriate auditing procedures whose replies
from brokers were not received. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Bond Fund at June 30, 2003, and the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated in the two years then ended in conformity with accounting principles
generally accepted in the United States.
/s/ Ernst & Young LLP
Boston, Massachusetts
August 13, 2003
40
Pioneer Bond Fund
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Auditors
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Board of Trustees provides broad supervision over the Fund's affairs.
The officers of the fund are responsible for the Fund's operations. The Fund's
Trustees and officers are listed below, together with their principal
occupations during 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 56
U.S. registered investment portfolios for which Pioneer serves as investment
adviser (the "Pioneer Funds"). The address for all Interested Trustees and all
officers of the fund is 60 State Street, Boston, Massachusetts 02109.
The Fund's statement of additional information provides more detailed
information regarding the Fund's Trustees and is available upon request, without
charge, by calling 1-800-225-6292.
Proxy Voting Policies 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.
41
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Address Position Held With the Trust Term of Office/Length of Service
John F. Cogan, Jr. (77)* Chairman of the Board, Trustee since 1996.
Trustee and President Serves until retirement or removal.
<FN>
*Mr. Cogan is an interested trustee because he is an officer or director of the
Trust's investment adviser and certain of its affiliates.
</FN>
- ---------------------------------------------------------------------------------------------------------------
Osbert Hood (50)** Trustee and Trustee since June 3, 2003.
Executive Vice President Serves until retirement or removal.
<FN>
**Mr. Hood was elected Trustee and Executive Vice President on June 3, 2003.
</FN>
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Address Position Held With the Trust Term of Office/Length of Service
Mary K. Bush (55) Trustee Trustee since 1997.
3509 Woodbine Street, Serves until retirement or removal.
Chevy Chase, MD 20815
- ---------------------------------------------------------------------------------------------------------------
Richard H. Egdahl, M.D. (76) Trustee Trustee since 1996.
Boston University Healthcare Serves until retirement or removal.
Entrepreneurship Program,
53 Bay State Road,
Boston, MA 02215
- ---------------------------------------------------------------------------------------------------------------
42
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this Trustee
Deputy Chairman and a Director of Pioneer Global Asset Director of Harbor Global Company,
Management S.p.A. ("PGAM"); Non-Executive Chairman and a Ltd.
Director of Pioneer Investment Management USA Inc.
("PIM-USA"); Chairman and a Director of Pioneer and the
various Momentum Funds; Director, Pioneer Alternative
Investments; Director and Chairman of the Supervisory
Board of Pioneer Czech Investment Company, a.s.;
President of all of the Pioneer Funds; and Of Counsel
(since 2000, partner prior to 2000), Hale and Dorr LLP
(counsel to PIM-USA and the Pioneer Funds)
- ---------------------------------------------------------------------------------------------------------------
President and Chief Executive Officer, PIM-USA since May, None
2003 (Director since January, 2001); President and
Director of Pioneer since May, 2003; Chairman and
Director of Pioneer Investment Management Shareholder
Services, Inc. (PIMSS) since May, 2003; Executive Vice
President of all of the Pioneer Funds since June 3, 2003;
Executive Vice President and Chief Operating Officer of
PIM-USA, November 2000-May 2003; Executive Vice
President, Chief Financial Officer and Treasurer, John
Hancock Advisers, LLC, Boston, MA, November
1999-November 2000; Senior Vice President and Chief
Financial Officer, John Hancock Advisers, LLC, April
1997-November 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this Trustee
President, Bush International (international financial Director and/or Trustee of Brady
advisory firm) Corporation (industrial identification
and specialty coated material products
manufacturer), Mortgage Guaranty
Insurance Corporation, R.J. Reynolds
Tobacco Holdings, Inc. (tobacco) and
Student Loan Marketing Association
(secondary marketing of student loans)
- ---------------------------------------------------------------------------------------------------------------
Alexander Graham Bell Professor of Health Care None
Entrepreneurship, Boston University; Professor of
Management, Boston University School of Management;
Professor of Public Health, Boston University School of
Public Health; Professor of Surgery, Boston University
School of Medicine; and University Professor, Boston
University
- ---------------------------------------------------------------------------------------------------------------
43
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INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Address Position Held With the Trust Term of Office/Length of Service
Margaret B.W. Graham (56) Trustee Trustee since 1996.
1001 Sherbrooke Street West, Serves until retirement or removal.
Montreal, Quebec, Canada
- ---------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (55) Trustee Trustee since 1996.
One Boston Place, 28th Floor, Serves until retirement or removal.
Boston, MA 02108
- ---------------------------------------------------------------------------------------------------------------
Stephen K. West (74) Trustee Trustee since 1996.
125 Broad Street, Serves until retirement or removal.
New York, NY 10004
- ---------------------------------------------------------------------------------------------------------------
John Winthrop (67) Trustee Trustee since 1996.
One North Adgers Wharf, Serves until retirement or removal.
Charleston, SC 29401
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Name, Age and Address Position Held With the Trust Term of Office/Length of Service
Joseph P. Barri (56) Secretary Since 1996.
Serves at the discretion of Board.
- ---------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (55) Assistant Secretary Since November, 2000.
Serves at the discretion of Board.
- ---------------------------------------------------------------------------------------------------------------
Vincent Nave (58) Treasurer Since November, 2000.
Serves at the discretion of Board.
- ---------------------------------------------------------------------------------------------------------------
Luis I. Presutti (38) Assistant Treasurer Since November, 2000.
Serves at the discretion of Board.
- ---------------------------------------------------------------------------------------------------------------
Gary Sullivan (45) Assistant Treasurer Since May, 2002.
Serves at the discretion of Board.
- ---------------------------------------------------------------------------------------------------------------
44
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this
Trustee
Founding Director, The Winthrop Group, Inc. (consulting None
firm); Professor of Management, Faculty of Management,
McGill University
- ---------------------------------------------------------------------------------------------------------------
President and Chief Executive Officer, Newbury, Piret & None
Company, Inc. (investment banking firm)
- ---------------------------------------------------------------------------------------------------------------
Senior Counsel, Sullivan & Cromwell (law firm) Director, The Swiss Helvetia
Fund, Inc. (closed-end investment
company), and AMVESCAP PLC
(investment managers)
- ---------------------------------------------------------------------------------------------------------------
President, John Winthrop & Co., Inc. None
(private investment firm)
- ---------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this
Trustee
Partner, Hale and Dorr LLP; Secretary of all of the Pioneer None
Funds
- ---------------------------------------------------------------------------------------------------------------
Secretary of PIM-USA: Senior Vice President-Legal of None
Pioneer; and Secretary/Clerk of most of PIM-USA's
subsidiaries since October 2000; Assistant Secretary of all
of the Pioneer Funds since November 2000; Senior Counsel,
Assistant Vice President and Director of Compliance of PIM-
USA from April 1998 through October 2000; Vice President
and Assistant General Counsel, First Union Corporation from
December 1996 through March 1998
- ---------------------------------------------------------------------------------------------------------------
Vice President-Fund Accounting, Administration and Custody None
Services of Pioneer (Manager from September 1996 to
February 1999); and Treasurer of all of the Pioneer Funds
(Assistant Treasurer from June 1999 to November 2000)
- ---------------------------------------------------------------------------------------------------------------
Assistant Vice President-Fund Accounting, Administration None
and Custody Services of Pioneer (Fund Accounting Manager
from 1994 to 1999); and Assistant Treasurer of all of the
Pioneer Funds since November 2000
- ---------------------------------------------------------------------------------------------------------------
Fund Accounting Manager-Fund Accounting, Administration None
and Custody Services of Pioneer; and Assistant Treasurer of
all of the Pioneer Funds since May 2002
- ---------------------------------------------------------------------------------------------------------------
45
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Name, Age and Address Position Held With the Trust Term of Office/Length of Service
Alan Janson (32) Assistant Treasurer Since July, 2002.
Serves at the discretion of Board.
- ---------------------------------------------------------------------------------------------------------------
46
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this
Trustee
Manager, Valuation Risk and Information Technology-Fund None
Accounting, Administration and Custody Services of Pioneer
since March 2002; and Assistant Treasurer of all of the
Pioneer Funds since July 2002; Manager, Valuation Risk and
Performance Reporting of Pioneer from June 2000 to
February 2002; Member of Pioneer Pricing Group from
1996 to 2000 (promoted to Manager in 1998)
- ---------------------------------------------------------------------------------------------------------------
47
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
- --------------------------------------------------------------------------------
Your investment professional can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-8O0-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information, have
your 10-digit account number, your three-digit fund number and your four-digit
personal identification number at hand.
6-Month Reinstatement Privilege (for Class A and Class B Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 6 months of your
redemption. You have the choice of investing in any Pioneer fund provided the
account has the exact same registration and meets the fund's minimum investment
requirement. Reinstated accounts may only purchase Class A fund shares.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need
to do is authorize a set amount of money to be moved out of your bank account
into the Pioneer fund of your choice. Investomatic also allows you to change
the dollar amount, frequency and investment date right over the phone. By
putting aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing
Pioneer to deduct from participating employees' paychecks. You specify the
dollar amount you want to invest into the Pioneer fund(s) of your choice.
48
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a period of
time. Just invest a lump sum in one fund, and select the other Pioneer funds
you wish to invest in. You choose the amounts and dates for Pioneer to sell
shares of your original fund and use the proceeds to buy shares of the other
funds you have chosen. Over time, your investment will be shifted out of the
original fund. (Automatic Exchange is available for originating accounts with a
balance of $5,000 or more.)
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals.
You decide the frequency and the day of the month. Pioneer will send the
proceeds by check to the address you designate, or electronically to your bank
account. You also can authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available for accounts with a value of $10,000 or
more.)
49
Pioneer Bond Fund
- --------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
For information about any Pioneer mutual fund, please contact your investment
professional, or call Pioneer at 1-800-225-6292. Ask for a free fund information
kit, which includes a fund prospectus. Please read the prospectus carefully
before you invest.
U.S. Equity Fixed Income
Pioneer Fund Pioneer America Income Trust
Pioneer Balanced Fund Pioneer Bond Fund
Pioneer Core Equity Fund Pioneer High Yield Fund
Pioneer Equity Income Fund Pioneer Stable Value Fund
Pioneer Growth Shares Pioneer Strategic Income Fund
Pioneer Mid Cap Growth Fund Pioneer Tax Free Income Fund
Pioneer Mid Cap Value Fund
Pioneer Real Estate Shares Money Market
Pioneer Small Cap Value Fund Pioneer Cash Reserves Fund*
Pioneer Small Company Fund
Pioneer Value Fund
International/Global Equity
Pioneer Emerging Markets Fund
Pioneer Europe Select Fund
Pioneer Europe Fund
Pioneer International Equity Fund
Pioneer International Value Fund
* An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1.00 per share, it is possible
to lose money by investing in the Fund.
50
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This page for your notes.
51
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This page for your notes.
52
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This page for your notes.
53
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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 13715-00-0803
Boston, Massachusetts 02109 (C) 2003 Pioneer Funds Distributor, Inc.
www.pioneerfunds.com 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 Bond Fund
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.