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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05516
Pioneer America Income Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: December 31
Date of reporting period: January 1, 2005 through June 30, 2005
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
PIONEER
------------
AMERICA
INCOME
TRUST
Semiannual
Report
6/30/05
[LOGO] PIONEER
Investments(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 1
Portfolio Summary 2
Prices and Distributions 3
Performance Update 4
Comparing Ongoing Fund Expenses 9
Portfolio Management Discussion 11
Schedule of Investments 15
Financial Statements 27
Notes to Financial Statements 36
Factors Considered by the Independent Trustees in Approving
the Management Contract 43
The Pioneer Family of Mutual Funds 49
Trustees, Officers and Service Providers 50
Pioneer America Income Trust
- --------------------------------------------------------------------------------
LETTER TO SHAREOWNERS 6/30/05
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
The U.S. economy has expanded at an annualized rate of at least three percent
for eight straight quarters, a feat it last achieved in the 1980s. Job
conditions are strengthening as well: by mid-year, the unemployment rate had
fallen to 5.0% for the first time since September 11, 2001. Retail sales trends
- - apart from automobiles - were upbeat as sunnier employment prospects sent
consumers to the malls. And with the economy expanding, corporate profits have
been moving ahead smartly.
But equity investors were unconvinced by this evidence and instead brooded
about the possibility of slowing growth later in the year. For one thing,
expectations were for a moderating pace of profit growth. For another, the
Federal Reserve Board has raised short-term interest rates nine times. And some
areas of the economy are feeling the impact of record high energy prices. So
investors were lukewarm toward stocks, with modest losses in the S&P 500 Stock
Index and the Dow Jones Industrials the result. The technology-heavy NASDAQ
Composite also slid, as did small-company stocks, as measured by the Russell
2000 Index. Value stocks, viewed as less vulnerable to declines in a less
robust economy, held up better than growth.
Corporate bonds felt the sting of ratings downgrades in the automobile sector.
Treasury issues fared better, as yields fell and prices rose among intermediate
and longer-term issues, which were little affected by rising short-term rates.
Low long-term yields may signal investor confidence that the Fed will succeed
in dousing inflationary fires; they also brought more affordable mortgages,
further boosting home construction. Municipal revenue bonds edged upward as
healthier economic conditions bolstered tax collections.
The dollar's rebound positively affected foreign markets. Europe's stock
markets performed better than business and political conditions might suggest,
and Japan's market inched higher.
Pioneer's analysts believe that, although the rate of growth may slow,
carefully selected, good quality stocks and bonds have the potential to deliver
solid results. Our global investment experts are well positioned to discover
what we believe are attractive opportunities in the world's markets.
Large or small? Bonds or stocks? Domestic or international?
Just what your mix of investments should be isn't a question to be taken
lightly. Much of your long-term return will depend on the kinds of investments
you own, not just the individual items in your portfolio. For an analysis of
your holdings and some ideas to help bring your investments in line with your
aspirations, talk to your financial professional.
Please consider a fund's investment objective, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about each fund and should be read carefully before you invest or send money.
To obtain a prospectus and for other information on any Pioneer fund, contact
your financial advisor, call 1-800-225-6292 or visit our web site at
www.pioneerfunds.com.
Respectfully,
/s/ Osbert M. Hood
- ------------------
Osbert M. Hood
President
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of the opinion of Trust management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
1
Pioneer America Income Trust
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PORTFOLIO SUMMARY 6/30/05
Portfolio Diversification
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(As a percentage of total investment portfolio)
[DATA BELOW REPRESENTS PIE CHART IN ORIGINAL DOCUMENT]
U.S. Government Securities 96.2%
U.S. Government Agency Obligations 2.1%
Temporary Cash Investment 1.7%
Portfolio Maturity
- --------------------------------------------------------------------------------
(Effective life as a percentage of total investment portfolio)
[DATA BELOW REPRESENTS PIE CHART IN ORIGINAL DOCUMENT]
0-1 Year 4.0%
1-3 Years 61.9%
3-4 Years 12.5%
4-6 Years 2.1%
6-8 Years 13.5%
8+ Years 6.0%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of debt holdings)
1. U.S. Treasury Notes, 6.5%, 2/15/10 6.75%
2. U.S. Treasury Bonds, 7.25%, 5/15/16 5.76
3. U.S. Treasury Notes, 6.375%, 8/15/27 3.14
4. U.S. Treasury Notes, 4.0%, 11/15/12 3.10
5. Government National Mortgage Association II, 5.5%, 3/20/34 2.32
6. Government National Mortgage Association II, 5.5%, 11/20/34 2.19
7. U.S. Treasury Notes, 4.75%, 5/15/14 2.07
8. Government National Mortgage Association, 5.5%, 11/15/34 2.06
9. Government National Mortgage Association, 6.0%, 11/20/33 1.94
10. U.S. Treasury Notes, 4.625%, 5/15/06 1.86
This list excludes temporary cash investments and derivative instruments.
Portfolio holdings will vary for other periods.
2
Pioneer America Income Trust
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PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 6/30/05 12/31/04
----- ------- --------
A $9.77 $9.79
B $9.71 $9.74
C $9.74 $9.77
Investor $9.76 $9.79
R $9.86 $9.89
Distributions Per Share
- --------------------------------------------------------------------------------
1/1/05 - 6/30/05
----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- ------ ------------- -------------
A $0.2135 $ - $ -
B $0.1728 $ - $ -
C $0.1793 $ - $ -
Investor $0.2328 $ - $ -
R $0.2137 $ - $ -
- --------------------------------------------------------------------------------
INDEX DEFINITIONS
- --------------------------------------------------------------------------------
The Lehman Brothers Government Bond Index measures the performance of the U.S.
government bond market. The Lehman Brothers Fixed-Rate Mortgage-Backed
Securities Index is an unmanaged index including 15- and 30-year fixed rate
securities backed by mortgage pools of the Government National Mortgage
Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Federal
National Mortgage Association (FNMA). Index returns assume reinvestment of
dividends and, unlike Trust returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in the Indexes.
The indexes defined here pertain to the Value of $10,000 Investment charts shown
on pages 4, 5, 6, 7 and 8.
3
Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/05 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust at public offering price,
compared to that of the Lehman Brothers Government Bond Index and of the Lehman
Brothers Fixed-Rate Mortgage-Backed Securities Index.
Average Annual Total Returns
(As of June 30, 2005)
Net Asset Public
Value Offering
Period (NAV) Price (POP)
10 Years 5.47% 4.99%
5 Years 5.71 4.75
1 Year 4.98 0.24
[DATA BELOW REPRESENTS MOUNTAIN CHART IN ORIGINAL DOCUMENT]
Lehman
Brothers
Pioneer Fixed-Rate Lehman
America Mortgage-Backed Brothers
Income Securities Government
Trust Index Bond Index
6/95 9549 10000 10000
9910 10586 10450
6/97 10617 11549 11222
11590 12579 12486
6/99 11777 13084 12865
12325 13743 13507
6/01 13462 15293 14905
14501 16667 16217
6/03 15556 17618 18057
15498 18009 17815
6/05 16271 19117 19000
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Trust performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the redemption of Trust
shares.
4
Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/05 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust, compared to that of the Lehman
Brothers Government Bond Index and of the Lehman Brothers Fixed-Rate
Mortgage-Backed Securities Index.
Average Annual Total Returns
(As of June 30, 2005)
If If
Period Held Redeemed
10 Years 4.64% 4.64%
5 Years 4.84 4.84
1 Year 4.12 0.12
[DATA BELOW REPRESENTS MOUNTAIN CHART IN ORIGINAL DOCUMENT]
Lehman
Brothers
Pioneer Fixed-Rate Lehman
America Mortgage-Backed Brothers
Income Securities Government
Trust Index Bond Index
6/95 10000 10000 10000
10304 10586 10450
6/97 10953 11549 11222
11863 12579 12486
6/99 11977 13084 12865
12427 13743 13507
6/01 13469 15293 14905
14381 16667 16217
6/03 15298 17618 18057
15114 18009 17815
6/05 15736 19117 19000
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CSDC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerfunds.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Trust performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the redemption of Trust
shares.
5
Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/05 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust, compared to that of the Lehman
Brothers Government Bond Index and of the Lehman Brothers Fixed-Rate
Mortgage-Backed Securities Index.
Average Annual Total Returns
(As of June 30, 2005)
If If
Period Held Redeemed
Life-of-Class
(1/31/96) 4.34% 4.34%
5 Years 4.87 4.87
1 Year 4.21 4.21
[DATA BELOW REPRESENTS MOUNTAIN CHART IN ORIGINAL DOCUMENT]
Lehman
Brothers
Pioneer Fixed-Rate Lehman
America Mortgage-Backed Brothers
Income Securities Government
Trust Index Bond Index
6/95 10000 10000 10000
9730 9961 9759
6/97 10337 10866 10481
11196 11835 11661
6/99 11315 12311 12016
11760 12931 12614
6/01 12707 14389 13921
13603 15682 15146
6/03 14470 16577 16864
14315 16945 16638
6/05 14918 17987 17745
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not reflect
the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. "If Held"
results represent the percent change in net asset value per share. Returns would
have been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Trust performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the redemption of Trust
shares.
6
Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/05 INVESTOR CLASS SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of June 30, 2005)
If If
Period Held Redeemed
Life-of-Class
(12/10/04) 2.06% 2.06%
[DATA BELOW REPRESENTS MOUNTAIN CHART IN ORIGINAL DOCUMENT]
Lehman
Brothers
Pioneer Fixed-Rate Lehman
America Mortgage-Backed Brothers
Income Securities Government
Trust Index Bond Index
12/04 10000 10000 10000
6/05 10210 10215 10293
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Certain Pioneer funds (the "Funds") issued Investor Class shares in connection
with the reorganization of Safeco mutual funds. The Funds are not offering
additional Investor Class shares except in connection with the reinvestment of
dividends on the Funds' outstanding Investor Class shares. All [Investor Class]
shares of the Funds, whenever issued, convert to Class A shares of their
respective Funds on December 10, 2006. Investor Class shares are not subject to
sales charges.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Trust performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table does not reflect the deduction of fees and taxes that a
shareowner would pay on Trust distributions or the redemption of Trust shares.
7
Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/05 CLASS R SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust, compared to that of the Lehman
Brothers Government Bond Index and of the Lehman Brothers Fixed-Rate
Mortgage-Backed Securities Index.
Average Annual Total Returns
(As of June 30, 2005)
If If
Period Held Redeemed
10 Years 5.11% 5.11%
5 Years 5.50 5.50
1 Year 4.82 4.82
[DATA BELOW REPRESENTS MOUNTAIN CHART IN ORIGINAL DOCUMENT]
Lehman
Brothers
Pioneer Fixed-Rate Lehman
America Mortgage-Backed Brothers
Income Securities Government
Trust Index Bond Index
6/95 10000 10000 10000
10333 10586 10450
6/97 11015 11549 11222
11970 12579 12486
6/99 12091 13084 12865
12591 13743 13507
6/01 13697 15293 14905
14667 16667 16217
6/03 15764 17618 18057
15702 18009 17815
6/05 16459 19117 19000
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
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. For the period after April 1, 2003, the actual performance of
Class R shares is reflected, which performance may be influenced by the smaller
asset size of Class R shares compared to Class A shares. Class R shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Trust performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the redemption of Trust
shares.
8
Pioneer America Income Trust
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Trust, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Trust expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Trust and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Trust's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer America Income Trust
Based on actual returns from January 1, 2005 through June 30, 2005
Investor
Share Class A B C Class R
- ---------------------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 1/1/05
Ending Account Value $1,020.00 $1,014.80 $1,015.50 $1,021.00 $1,018.80
On 6/30/05
Expenses Paid During $ 5.91 $ 10.09 $ 9.44 $ 3.76 $ 6.36
Period*
* Expenses are equal to the Trust's annualized expense ratio of 1.18%, 2.02%,
1.89%, 0.75% and 1.27%, for Class A, Class B, Class C, Investor Class and
Class R shares, respectively, multiplied by the average account value over
the period, multiplied by 181/365 (to reflect the one-half year period).
9
Pioneer America Income Trust
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Trust's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Trust's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Trust and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer America Income Trust
Based on a hypothetical 5% per year return before expenses, reflecting the
period from January 1, 2005 through June 30, 2005
Investor
Share Class A B C Class R
- ---------------------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 1/1/05
Ending Account Value $1,078.94 $1,014.78 $1,015.42 $1,021.08 $1,018.50
On 6/30/05
Expenses Paid During $ 5.91 $ 10.09 $ 9.44 $ 3.76 $ 6.36
Period*
* Expenses are equal to the Trust's annualized expense ratio of 1.18%, 2.02%,
1.89%, 0.75% and 1.27%, for Class A, Class B, Class C, Investor Class and
Class R shares, respectively, multiplied by the average account value over
the period, multiplied by 181/365 (to reflect the one-half year period).
10
Pioneer America Income Trust
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/05
- --------------------------------------------------------------------------------
Despite rising interest-rates, investors in U.S. Government and agency
securities were rewarded with positive total returns during the first half of
2005. In the interview below, Richard Schlanger, a member of the Pioneer
fixed-income team, discusses the factors that affected the fixed-income market
and the Trust over the past six months.
Q: How did the Trust perform during the period?
A: For the six-month period ended June 30, 2005, Class A shares of Pioneer
America Income Trust produced a total return of 2.00% at net asset value.
The Trust underperformed its benchmark, the Lehman Brothers Government
Bond Index, which returned 2.93% for the same period. The Trust also fell
short of the Lehman Brothers Fixed-Rate Mortgage-Backed Index, which
returned 2.15%. The Trust underperformed the 2.74% return generated by the
General U.S. Government Funds Category of Lipper, Inc., an independent
monitor of mutual fund performance. At the end of the period, the 30-day
SEC yield for Class A shares was 3.08%.
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent
month-end performance results. Current performance may be lower or higher
than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
Q: What was the investment environment like during the period?
A: Despite rising oil prices, the economy continued to grow at a steady pace,
buoyed by job creation, a high level of consumer spending and escalating
real estate prices. Along with this positive economic backdrop, the
Federal Reserve continued to reverse its accommodative monetary policy by
boosting the Federal funds rate four times during the six-month period,
each time by one-quarter percentage point. The Federal funds rate, which
is the rate that banks charge for overnight loans, moved from 2.25% to
3.25%. The Fed's actions resulted in rising yields and falling prices on
short-term securities; however, yields on longer-term securities declined
and prices rose. For example, the yield on the 10-year Treasury bond
declined 0.31% and the yield on the 30-year Treasury bond went down 0.64%.
Despite the general decline in long-term yields, long-term U.S. Treasury
yields were among the highest of the developed economies, making the
securities attrac-
11
Pioneer America Income Trust
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/05 (continued)
- --------------------------------------------------------------------------------
tive to foreign investors. U.S. Treasuries were favored by overseas
investors for another reason. To keep their currency values relatively
low, overseas market participants invested substantial assets in Treasury
securities. During the period, General Motors and Ford reported
disappointing earnings, and credit agencies downgraded the companies'
debt. As a result, we saw a flight to quality in the fixed-income markets,
with investors moving assets into Treasury securities because they had no
credit risk and the full faith and credit backing of the U.S. Government.
All of these factors benefited government bonds.
Q: What were the principal strategies used in managing the Trust in this
environment?
A: While we trimmed exposure to mortgages issued by the Government National
Mortgage Association (Ginnie Mae), we continued to emphasize the sector
relative to the benchmark. Ginnie Maes are backed by the full faith and
credit of the U.S. Government. (A full faith and credit backing applies to
underlying Trust securities, not to Trust shares.) In selecting mortgage
securities, we emphasized those with coupons in the 4.5% to 5.0% range,
which carried less prepayment risk. When interest rates rose and yields on
Treasuries moved higher, we opportunistically purchased longer-duration
Treasury securities in the 7 to 15-year maturity range. At the end of the
six-month period, the Trust's assets were allocated as follows: 67.5% in
Ginnie Mae securities; 31.5% in Treasury securities; and 1% in cash.
Q: What detracted from performance?
A: We attribute the Trust's performance shortfall relative to the Lehman
Brothers Fixed-Rate Mortgage Index to the defensive nature of our duration
strategy. To limit the price volatility that usually accompanies rising
interest rates, we kept the Trust's duration shorter than the index.
(Stated in years, duration measures a bond's price sensitivity to
interest-rate changes. A shorter duration can protect the portfolio from
price declines as yields rise.) Performance also suffered because of our
relatively small exposure to long-term Treasury bonds, as we were
skeptical that prices would continue to rise as the Fed continued to raise
interest rates. Even Federal Reserve Chairman Alan Greenspan called the
rally in long-term Treasuries a "conundrum." Ginnie Maes also had a
negative impact on performance because the decline in long-term Treasury
12
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
yields raised concerns about the potential for refinance risk that is
associated with mortgages.
Q: What contributed most to performance?
A: Although we had comparatively less exposure (relative to the Fund's
benchmark) in long-term Treasuries, our position in the sector and in
Ginnie Mae securities contributed to performance, as both asset classes
saw an influx of foreign capital. Minimizing prepayment risk by selecting
specific mortgage pools was also helpful.
Q: What is your outlook for the rest of 2005?
A: Data associated with the economy continues to indicate that economic growth
will keep improving at a steady rate, despite the fact that oil has now
passed the $60-a-barrel level. Although inflation remains in check, there
are indications that it is beginning to pick up. For example, rising
global demand for commodities and industrial products has resulted in
higher prices. We have also begun to see an upturn in airline, railroad
and trucking prices, as companies pass along the cost of energy to
consumers and businesses. Escalating real estate values are also a source
of concern. Given these factors, the Fed has stated that it will continue
raising interest rates in the near term in an effort to keep inflation
from accelerating. As the Fed hikes rates, we expect to see longer-term
yields drift higher. As we move into the second half of 2005, the Trust
should continue to provide a relatively safe haven for investors who want
to avoid the risk associated with the more volatile areas of the
fixed-income market and with equities.
Government guarantees apply to the underlying securities only and not to the
prices and yields of the portfolio. When interest rates rise, the prices of
fixed-income securities in the Trust will generally fall. Conversely, when
interest rates fall the prices of fixed-income securities in the Trust will
generally rise.
The portfolio may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other
fixed-income securities. Mortgage-backed securities are also subject to
pre-payments. Investments in the Trust are subject to possible loss due to the
financial failure of underlying securities and their inability to meet their
debt obligations. These risks may increase share price volatility.
13
Pioneer America Income Trust
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/05 (continued)
- --------------------------------------------------------------------------------
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of the opinion of Trust management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
14
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/05 (unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 98.5%
$ 591,229 Government National Mortgage Association,
4.5%, 4/15/18 $ 593,113
1,856,006 Government National Mortgage Association,
4.5%, 6/15/19 1,861,305
402,952 Government National Mortgage Association,
4.5%, 8/15/19 404,102
220,056 Government National Mortgage Association,
4.5%, 12/15/19 220,685
1,561,185 Government National Mortgage Association,
4.5%, 3/15/20 1,565,236
991,770 Government National Mortgage Association,
4.5%, 4/15/20 994,344
846,742 Government National Mortgage Association,
4.5%, 8/15/33 837,769
3,298,729 Government National Mortgage Association,
4.5%, 6/15/34 3,262,757
750,000 Government National Mortgage Association,
4.5%, 7/20/34 737,869
744,258 Government National Mortgage Association,
4.5%, 1/15/35 736,133
1,000,000 Government National Mortgage Association,
5.0%, TBA 1,007,500
1,585,505 Government National Mortgage Association,
5.0%, 2/15/19 1,614,324
921,820 Government National Mortgage Association,
5.0%, 7/15/19 938,576
489,718 Government National Mortgage Association,
5.0%, 1/20/20 496,947
489,028 Government National Mortgage Association,
5.0%, 2/15/20 497,961
768,506 Government National Mortgage Association,
5.0%, 9/15/33 775,563
2,970,724 Government National Mortgage Association,
5.0%, 4/15/35 2,997,407
532,472 Government National Mortgage Association,
5.0%, 6/15/35 537,255
The accompanying notes are an integral part of these financial statements. 15
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (continued)
$ 280,851 Government National Mortgage Association,
5.5%, 6/15/18 $ 290,074
2,128,401 Government National Mortgage Association,
5.5%, 2/15/19 2,198,302
414,323 Government National Mortgage Association,
5.5%, 4/15/19 427,893
2,641,893 Government National Mortgage Association,
5.5%, 7/15/19 2,728,423
647,307 Government National Mortgage Association,
5.5%, 10/15/19 668,508
861,143 Government National Mortgage Association,
5.5%, 1/15/29 881,835
487,940 Government National Mortgage Association,
5.5%, 4/15/31 499,378
2,673,527 Government National Mortgage Association,
5.5%, 5/15/33 2,733,296
3,054,163 Government National Mortgage Association,
5.5%, 7/15/33 3,122,442
1,183,784 Government National Mortgage Association,
5.5%, 8/15/33 1,210,249
2,718,657 Government National Mortgage Association,
5.5%, 9/15/33 2,779,633
1,585,069 Government National Mortgage Association,
5.5%, 10/15/33 1,620,506
3,120,501 Government National Mortgage Association,
5.5%, 4/15/34 3,189,851
1,750,211 Government National Mortgage Association,
5.5%, 10/15/34 1,789,108
6,973,916 Government National Mortgage Association,
5.5%, 11/15/34 7,128,904
4,902,128 Government National Mortgage Association,
5.5%, 11/20/34 5,000,337
745,304 Government National Mortgage Association,
5.5%, 1/15/35 751,998
1,199,540 Government National Mortgage Association,
6.0%, 5/15/17 1,245,746
16 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (continued)
$ 448,183 Government National Mortgage Association,
6.0%, 7/20/19 $ 464,052
98,877 Government National Mortgage Association,
6.0%, 1/15/24 102,334
514,267 Government National Mortgage Association,
6.0%, 4/15/28 531,976
27,228 Government National Mortgage Association,
6.0%, 10/15/28 28,148
2,096,718 Government National Mortgage Association,
6.0%, 9/15/32 2,165,081
5,814,987 Government National Mortgage Association,
6.0%, 10/15/32 6,007,619
7,606,934 Government National Mortgage Association,
6.0%, 11/15/32 7,870,723
5,822,323 Government National Mortgage Association,
6.0%, 12/15/32 6,025,151
4,564,068 Government National Mortgage Association,
6.0%, 1/15/33 4,727,946
1,032,072 Government National Mortgage Association,
6.0%, 1/20/33 1,063,119
3,701,929 Government National Mortgage Association,
6.0%, 2/15/33 3,821,390
1,280,528 Government National Mortgage Association,
6.0%, 3/15/33 1,321,851
1,826,810 Government National Mortgage Association,
6.0%, 4/15/33 1,892,089
434,064 Government National Mortgage Association,
6.0%, 5/15/33 448,071
468,058 Government National Mortgage Association,
6.0%, 9/15/33 483,163
1,226,942 Government National Mortgage Association,
6.0%, 10/20/33 1,268,032
955,360 Government National Mortgage Association,
6.0%, 11/15/33 986,190
4,296,212 Government National Mortgage Association,
6.0%, 11/20/33 4,425,451
The accompanying notes are an integral part of these financial statements. 17
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (continued)
$3,506,267 Government National Mortgage Association,
6.0%, 12/20/33 $ 3,611,669
835,806 Government National Mortgage Association,
6.0%, 3/15/34 862,694
840,018 Government National Mortgage Association,
6.0%, 6/15/34 867,042
1,337,826 Government National Mortgage Association,
6.0%, 8/15/34 1,381,272
438,845 Government National Mortgage Association,
6.0%, 9/15/34 452,963
2,129,215 Government National Mortgage Association,
6.0%, 10/15/34 2,197,713
220,381 Government National Mortgage Association,
6.5%, 4/15/17 230,536
139,334 Government National Mortgage Association,
6.5%, 6/15/17 145,754
392,357 Government National Mortgage Association,
6.5%, 2/15/28 410,743
542,577 Government National Mortgage Association,
6.5%, 3/15/28 568,167
405,650 Government National Mortgage Association,
6.5%, 4/15/28 424,690
92,243 Government National Mortgage Association,
6.5%, 6/15/28 96,579
148,113 Government National Mortgage Association,
6.5%, 8/15/28 155,054
266,820 Government National Mortgage Association,
6.5%, 10/15/28 279,323
608,443 Government National Mortgage Association,
6.5%, 3/15/29 636,472
77,107 Government National Mortgage Association,
6.5%, 5/15/29 80,659
85,082 Government National Mortgage Association,
6.5%, 6/15/29 89,001
171,379 Government National Mortgage Association,
6.5%, 4/20/31 178,444
18 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (continued)
$ 12,871 Government National Mortgage Association,
6.5%, 10/15/31 $ 13,458
179,356 Government National Mortgage Association,
6.5%, 12/15/31 187,538
284,274 Government National Mortgage Association,
6.5%, 6/15/31 297,241
375,810 Government National Mortgage Association,
6.5%, 7/15/31 392,955
115,524 Government National Mortgage Association,
6.5%, 8/15/31 120,794
460,513 Government National Mortgage Association,
6.5%, 9/15/31 481,521
1,517,785 Government National Mortgage Association,
6.5%, 1/15/32 1,590,164
1,296,996 Government National Mortgage Association,
6.5%, 2/15/32 1,356,010
705,189 Government National Mortgage Association,
6.5%, 3/15/32 737,275
1,213,815 Government National Mortgage Association,
6.5%, 4/15/32 1,269,043
950,469 Government National Mortgage Association,
6.5%, 5/15/32 993,715
362,622 Government National Mortgage Association,
6.5%, 6/15/32 379,505
728,369 Government National Mortgage Association,
6.5%, 7/15/32 761,510
848,978 Government National Mortgage Association,
6.5%, 8/15/32 888,453
378,407 Government National Mortgage Association,
6.5%, 9/15/32 395,625
594,043 Government National Mortgage Association,
6.5%, 4/15/33 620,905
16,142 Government National Mortgage Association,
6.5%, 10/15/33 16,872
216,607 Government National Mortgage Association,
7.0%, 10/15/16 227,864
The accompanying notes are an integral part of these financial statements. 19
Pioneer America Income Trust
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SCHEDULE OF INVESTMENTS 6/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (continued)
$ 600,404 Government National Mortgage Association,
7.0%, 9/15/24 $ 638,797
312,599 Government National Mortgage Association,
7.0%, 7/15/25 332,561
99,893 Government National Mortgage Association,
7.0%, 11/15/26 106,153
182,151 Government National Mortgage Association,
7.0%, 2/15/28 193,126
178,430 Government National Mortgage Association,
7.0%, 3/15/28 189,180
210,936 Government National Mortgage Association,
7.0%, 4/15/28 223,645
227,752 Government National Mortgage Association,
7.0%, 7/15/28 241,604
192,399 Government National Mortgage Association,
7.0%, 4/15/29 203,867
198,850 Government National Mortgage Association,
7.0%, 5/15/29 210,702
85,617 Government National Mortgage Association,
7.0%, 6/15/29 90,720
111,514 Government National Mortgage Association,
7.0%, 7/15/29 118,161
120,232 Government National Mortgage Association,
7.0%, 9/15/29 127,398
210,325 Government National Mortgage Association,
7.0%, 11/15/29 222,861
141,426 Government National Mortgage Association,
7.0%, 1/15/30 149,893
181,263 Government National Mortgage Association,
7.0%, 1/15/31 191,998
134,981 Government National Mortgage Association,
7.0%, 2/15/31 142,975
80,785 Government National Mortgage Association,
7.0%, 4/15/31 85,569
53,603 Government National Mortgage Association,
7.0%, 5/15/31 56,778
20 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
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- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (continued)
$ 80,038 Government National Mortgage Association,
7.0%, 6/15/31 $ 84,778
246,125 Government National Mortgage Association,
7.0%, 9/15/31 260,701
59,845 Government National Mortgage Association,
7.0%, 10/15/31 63,389
52,891 Government National Mortgage Association,
7.0%, 11/15/31 56,023
176,373 Government National Mortgage Association,
7.0%, 2/15/32 186,808
472,007 Government National Mortgage Association,
7.0%, 3/15/32 499,933
194,181 Government National Mortgage Association,
7.0%, 4/15/32 205,670
154,652 Government National Mortgage Association,
7.5%, 2/15/27 166,002
372,082 Government National Mortgage Association,
7.5%, 10/15/27 399,389
53,476 Government National Mortgage Association,
7.5%, 6/15/29 57,362
51,950 Government National Mortgage Association,
7.5%, 8/15/29 55,695
352,281 Government National Mortgage Association,
7.5%, 9/15/29 377,678
16,053 Government National Mortgage Association,
7.5%, 6/15/30 17,207
12,929 Government National Mortgage Association,
7.5%, 9/15/30 13,858
244,743 Government National Mortgage Association,
7.5%, 11/15/30 262,328
20,736 Government National Mortgage Association,
7.5%, 2/15/31 22,222
84,712 Government National Mortgage Association,
7.5%, 3/15/31 90,780
203,572 Government National Mortgage Association,
7.5%, 12/15/31 218,153
The accompanying notes are an integral part of these financial statements. 21
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/05 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (continued)
$ 104,451 Government National Mortgage Association,
7.5%, 1/15/32 $ 111,933
156,752 Government National Mortgage Association,
7.5%, 3/15/32 167,980
16,020 Government National Mortgage Association,
7.5%, 11/15/32 17,168
210,097 Government National Mortgage Association,
8.0%, 12/15/29 227,160
361,667 Government National Mortgage Association,
8.25%, 5/15/20 393,352
71,097 Government National Mortgage Association,
8.5%, 7/15/24 78,420
1,080 Government National Mortgage Association,
9.0%, 9/15/16 1,177
5,122 Government National Mortgage Association,
9.0%, 10/15/16 5,582
6,677 Government National Mortgage Association,
9.0%, 4/15/20 7,335
97,258 Government National Mortgage Association,
10.0%, 1/15/19 110,073
50,264 Government National Mortgage Association,
10.0%, 3/15/20 56,976
411,313 Government National Mortgage Association I,
6.5%, 11/15/31 430,078
221,486 Government National Mortgage Association I,
6.5%, 5/15/32 231,563
292,635 Government National Mortgage Association I,
6.5%, 9/15/32 305,949
386,268 Government National Mortgage Association I,
7.0%, 12/15/30 409,149
258,282 Government National Mortgage Association I,
7.5%, 8/15/23 274,797
779,388 Government National Mortgage Association II,
5.0%, 12/20/18 791,240
805,457 Government National Mortgage Association II,
5.0%, 2/20/19 817,313
22 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (continued)
$2,824,742 Government National Mortgage Association II,
5.5%, 2/20/34 $ 2,881,333
5,191,396 Government National Mortgage Association II,
5.5%, 3/20/34 5,295,400
2,281,558 Government National Mortgage Association II,
5.5%, 7/20/19 2,349,175
291,195 Government National Mortgage Association II,
6.0%, 7/20/17 301,504
895,156 Government National Mortgage Association II,
6.0%, 12/20/18 926,832
538,300 Government National Mortgage Association II,
6.0%, 2/20/19 557,360
283,391 Government National Mortgage Association II,
6.0%, 10/20/31 292,029
1,018,933 Government National Mortgage Association II,
6.0%, 11/20/31 1,049,991
1,805,257 Government National Mortgage Association II,
6.0%, 3/20/33 1,859,563
805,156 Government National Mortgage Association II,
6.0%, 6/20/34 829,296
171,798 Government National Mortgage Association II,
6.5%, 1/20/24 179,402
492,946 Government National Mortgage Association II,
6.5%, 8/20/28 513,959
117,746 Government National Mortgage Association II,
6.5%, 6/20/31 122,600
507,891 Government National Mortgage Association II,
6.5%, 10/20/32 528,770
624,748 Government National Mortgage Association II,
6.5%, 10/20/33 650,262
615,102 Government National Mortgage Association II,
6.5%, 3/20/34 640,207
28,361 Government National Mortgage Association II,
7.0%, 12/20/08 29,169
92,667 Government National Mortgage Association II,
7.0%, 5/20/26 97,943
The accompanying notes are an integral part of these financial statements. 23
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/05 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (continued)
$ 132,550 Government National Mortgage Association II,
7.0%, 1/20/31 $ 139,738
58,457 Government National Mortgage Association II,
7.0%, 3/20/31 61,627
231,299 Government National Mortgage Association II,
7.0%, 7/20/31 243,840
88,886 Government National Mortgage Association II,
7.0%, 11/20/32 93,706
35,360 Government National Mortgage Association II,
7.5%, 6/20/30 37,724
58,562 Government National Mortgage Association II,
7.5%, 12/20/30 62,477
83,236 Government National Mortgage Association II,
8.0%, 3/20/30 89,552
508 Government National Mortgage Association II,
8.0%, 5/20/25 547
16,530 Government National Mortgage Association II,
9.0%, 9/20/21 18,120
22,573 Government National Mortgage Association II,
9.0%, 3/20/22 24,776
6,468 Government National Mortgage Association II,
9.0%, 4/20/22 7,100
74,146 Government National Mortgage Association II,
9.0%, 11/20/24 81,552
612 Government National Mortgage Association II,
10.0%, 1/20/06 629
2,100,000 U.S. Treasury Bonds, 4.0%, 2/15/14 2,112,634
2,300,000 U.S. Treasury Bonds, 6.25%, 8/15/23 2,866,285
250,000 U.S. Treasury Bonds, 6.5%, 11/15/26 326,826
10,270,000 U.S. Treasury Bonds, 7.25%, 5/15/16 13,150,817
500,000 U.S. Treasury Bonds, 8.75%, 5/15/20 749,805
2,700,000 U.S. Treasury Notes, 3.5%, 11/15/06 2,696,941
7,000,000 U.S. Treasury Notes, 4.0%, 11/15/12 7,078,477
4,000,000 U.S. Treasury Notes, 4.25%, 11/15/14 4,093,908
4,200,000 U.S. Treasury Notes, 4.625%, 5/15/06 4,239,375
24 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (continued)
$ 650,000 U.S. Treasury Notes, 4.75%, 11/15/08 $ 671,532
4,450,000 U.S. Treasury Notes, 4.75%, 5/15/14 4,721,868
1,750,000 U.S. Treasury Notes, 5.5%, 2/15/08 1,831,007
2,000,000 U.S. Treasury Notes, 5.5%, 8/15/28 2,355,234
250,000 U.S. Treasury Notes, 6.125%, 8/15/29 319,209
1,100,000 U.S. Treasury Notes, 6.25%, 2/15/07 1,145,892
5,525,000 U.S. Treasury Notes, 6.375%, 8/15/27 7,163,290
13,800,000 U.S. Treasury Notes, 6.5%, 2/15/10 15,400,483
1,000,000 U.S. Treasury Notes, 6.625%, 5/15/07 1,053,516
------------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $225,520,166) $228,321,429
------------
$228,321,429
------------
TEMPORARY CASH INVESTMENTS - 1.7%
Repurchase Agreement - 1.7%
3,900,000 UBS Warburg, Inc., 2.75%, dated 6/30/05, repur-
chase price of $3,900,000 plus accrued interest
on 7/1/05 collateralized by $3,963,000 U.S.
Treasury Bill, 2.0%, 8/31/05 $ 3,900,000
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $3,900,000) $ 3,900,000
------------
TOTAL INVESTMENTS IN SECURITIES - 100.2%
(Cost $229,420,166) (a) $232,221,429
------------
OTHER ASSETS AND LIABILITIES - (0.2)% $ (550,215)
------------
TOTAL NET ASSETS - 100.0% $231,671,214
============
The accompanying notes are an integral part of these financial statements. 25
Pioneer America Income Trust
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SCHEDULE OF INVESTMENTS 6/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
TBA (To Be Assigned) securities are purchased on a forward commitment basis
with an approximate (generally plus or minus 2.5%) principal amount 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, 2005, the net unrealized gain on investments based on cost for
federal income tax purposes of $230,930,680 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $2,114,991
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (824,242)
----------
Net unrealized gain $1,290,749
==========
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended June 30, 2005 aggregated $27,960,529 and $38,532,447,
respectively.
26 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 6/30/05 (unaudited)
- -----------------------------------------------------------------------------
ASSETS:
Investment in securities (cost $229,420,166) $232,221,429
Receivables -
Fund shares sold 50,952
Interest 1,631,948
Due from Pioneer Investment Management, Inc 943
Other 606
------------
Total assets $233,905,878
------------
LIABILITIES:
Payables -
Investment securities purchased $ 1,548,003
Fund shares repurchased 197,115
Dividends 147,629
Due to bank 166,149
Due to affiliates 130,771
Accrued expenses 44,997
------------
Total liabilities $ 2,234,664
------------
NET ASSETS:
Paid-in capital $242,514,038
Distributions in excess of net investment income (2,631,230)
Accumulated net realized loss on investments (11,012,857)
Net unrealized gain on investments 2,801,263
------------
Total net assets $231,671,214
============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $120,342,512/12,323,180 shares) $ 9.77
============
Class B (based on $38,451,825/3,960,830 shares) $ 9.71
============
Class C (based on $29,453,272/3,023,801 shares) $ 9.74
============
Investor Class (based on $42,569,587/4,359,940 shares) $ 9.76
============
Class R (based on $854,018/86,577 shares) $ 9.86
============
MAXIMUM OFFERING PRICE:
Class A ($9.77 [divided by] 95.5%) $ 10.23
============
The accompanying notes are an integral part of these financial statements. 27
Pioneer America Income Trust
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STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 6/30/05
INVESTMENT INCOME:
Interest $5,159,852
----------
Total investment income $5,159,852
----------
EXPENSES:
Management fees $ 580,080
Transfer agent fees and expenses
Class A 185,405
Class B 75,845
Class C 37,217
Investor Class 52,929
Class R 649
Distribution fees
Class A 148,665
Class B 190,059
Class C 138,703
Class R 2,073
Administrative reimbursements 23,272
Custodian fees 9,876
Registration fees 46,945
Professional fees 29,550
Printing expense 12,204
Fees and expenses of nonaffiliated trustees 4,182
Miscellaneous 10,304
----------
Total expenses $1,547,958
Less management fees waived and expenses reim-
bursed by Pioneer Investment Management, Inc. (22,947)
Less fees paid indirectly (5,055)
----------
Net expenses $1,519,956
----------
Net investment income $3,639,896
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $ (440,312)
Change in net unrealized gain on investments $1,099,636
----------
Net gain on investments $ 659,324
----------
Net increase in net assets resulting from operations $4,299,220
==========
28 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 6/30/05 and the Year Ended 12/31/04
Six Months
Ended
6/30/05 Year Ended
(unaudited) 12/31/04
FROM OPERATIONS:
Net investment income $ 3,639,896 $ 5,980,649
Net realized loss on investments (440,312) (284,687)
Change in net unrealized gain (loss) on investments 1,099,636 (509,007)
------------ -------------
Net increase in net assets resulting
from operations $ 4,299,220 $ 5,186,955
------------ -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.21 and $0.43 per share, respectively) $ (2,639,148) $ (5,875,264)
Class B ($0.17 and $0.35 per share, respectively) (684,033) (1,631,240)
Class C ($0.18 and $0.35 per share, respectively) (515,734) (1,135,022)
Investor Class ($0.23 and $0.03 per share,
respectively) (1,109,947) (141,451)
Class R ($0.21 and $0.43 per share, respectively) (18,151) (25,408)
------------ -------------
Total distributions to shareowners $ (4,967,013) $ (8,808,385)
------------ -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 29,758,962 $ 52,481,179
Shares issued in reorganization - 53,131,201
Reinvestment of distributions 3,979,610 6,832,862
Cost of shares repurchased (44,702,206) (112,546,777)
------------ -------------
Net decrease in net assets resulting from fund
share transactions $(10,963,634) $ (101,535)
------------ -------------
Net decrease in net assets (11,631,427) (3,722,965)
NET ASSETS:
Beginning of period 243,302,641 247,025,606
------------ -------------
End of period (including net investment loss of
($2,631,230) and $(1,304,113) respectively) $231,671,214 $ 243,302,641
============ =============
The accompanying notes are an integral part of these financial statements. 29
Pioneer America Income Trust
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
'05 Shares '05 Amount
(unaudited) (unaudited) '04 Shares '04 Amount
CLASS A
Shares sold 1,779,260 $ 17,303,046 2,554,762 $ 25,153,365
Reinvestment of distributions 230,810 2,248,439 497,374 4,892,250
Less shares repurchased (2,300,893) (22,423,982) (5,906,236) (58,252,318)
---------- ------------ ---------- ------------
Net decrease (290,823) $ (2,872,497) (2,854,100) $(28,206,703)
========== ============ ========== ============
CLASS B
Shares sold 589,507 $ 5,707,579 1,250,986 $ 12,206,639
Reinvestment of distributions 51,596 499,759 116,378 1,138,044
Less shares repurchased (751,686) (7,276,460) (2,886,505) (28,273,002)
---------- ------------ ---------- ------------
Net decrease (110,583) $ (1,069,122) (1,519,141) $(14,928,319)
========== ============ ========== ============
CLASS C
Shares sold 684,713 $ 6,650,357 1,464,627 $ 14,366,399
Reinvestment of distributions 31,914 310,159 67,716 664,306
Less shares repurchased (541,883) (5,265,371) (2,458,051) (24,137,347)
---------- ------------ ---------- ------------
Net increase (decrease) 174,744 $ 1,695,145 (925,708) $ (9,106,642)
========== ============ ========== ============
INVESTOR CLASS
Shares sold - $ - - $ -
Shares issued at
reorganization - - 5,410,509 53,131,201
Reinvestment of distributions 93,287 908,603 11,861 116,123
Less shares repurchased (990,464) (9,652,461) (165,253) (1,618,941)
---------- ------------ ---------- ------------
Net increase (decrease) (897,177) $ (8,743,858) 5,257,117 $ 51,628,383
========== ============ ========== ============
CLASS R (a)
Shares sold 9,950 $ 97,980 75,438 $ 754,776
Reinvestment of distributions 1,285 12,650 2,226 22,139
Less shares repurchased (8,516) (83,932) (26,439) (265,169)
---------- ------------ ---------- ------------
Net increase 2,719 $ 26,698 51,225 $ 511,746
========== ============ ========== ============
(a) Class R Shares were first publicly offered April 13, 2004.
30 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months Ended
6/30/05 Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS A (unaudited) 12/31/04 12/31/03 12/31/02 12/31/01 (a) 12/31/00
Net asset value, beginning of period $ 9.79 $ 9.95 $ 10.27 $ 9.79 $ 9.76 $ 9.30
-------- -------- -------- -------- -------- -------
Increase from investment operations:
Net investment income $ 0.16 $ 0.28 $ 0.28 $ 0.40 $ 0.52 $ 0.58
Net realized and unrealized gain (loss) on investments 0.03 (0.01) (0.13) 0.54 0.05 0.46
-------- -------- -------- -------- -------- -------
Net increase from investment operations $ 0.19 $ 0.27 $ 0.15 $ 0.94 $ 0.57 $ 1.04
Distributions to shareowners:
Net investment income (0.21) (0.43) (0.47) (0.46) (0.51) (0.58)
Net realized gain - - - - (0.03) -
-------- -------- -------- -------- -------- -------
Net increase (decrease) in net asset value $ (0.02) $ (0.16) $ (0.32) $ 0.48 $ 0.03 $ 0.46
-------- -------- -------- -------- -------- -------
Net asset value, end of period $ 9.77 $ 9.79 $ 9.95 $ 10.27 $ 9.79 $ 9.76
======== ======== ======== ======== ======== =======
Total return* 2.00% 2.77% 1.47% 9.78% 5.92% 11.58%
Ratio of net expenses to average net assets+ 1.18%** 1.16% 1.10% 1.00% 1.01% 1.04%
Ratio of net investment income to average net assets+ 3.26%** 3.04% 2.85% 4.17% 5.14% 6.09%
Portfolio turnover rate 25%** 27% 66% 76% 72% 56%
Net assets, end of period (in thousands) $120,343 $123,524 $153,939 $164,393 $115,998 $96,068
Ratios with no waiver of management fees by
PIM and no reductions for fees paid indirectly:
Net expenses 1.18%** 1.16% 1.12% 1.08% 1.12% 1.16%
Net investment income 3.26%** 3.04% 2.83% 4.09% 5.03% 5.97%
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 1.18%** 1.16% 1.10% 1.00% 1.00% 1.00%
Net investment income 3.26%** 3.04% 2.85% 4.18% 5.15% 6.13%
* 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.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
(a) On January 1,2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this charges for the year ended
December 31, 2001, was to decrease net investment income by $0.02 per
share, increase net realized and unrealized gain (loss) by $0.02 per share
and decrease the ratio of net investment income to average net assets
assuming waiver of management fees by PIM and reduction for fees paid
indirectly from 5.35% to 5.15%. Per share ratios and supplemental data for
periods prior to January 1, 2001, have not been restated to reflect this
change in presentation.
The accompanying notes are an integral part of these financial statements. 31
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months Ended
6/30/05 Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS B (unaudited) 12/31/04 12/31/03 12/31/02 12/31/01 (a) 12/31/00
Net asset value, beginning of period $ 9.74 $ 9.89 $ 10.20 $ 9.76 $ 9.74 $ 9.28
------- ------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.11 $ 0.18 $ 0.19 $ 0.34 $ 0.44 $ 0.50
Net realized and unrealized gain (loss) on investments 0.03 0.02 (0.12) 0.50 0.04 0.46
------- ------- ------- ------- ------- -------
Net increase from investment operations $ 0.14 $ 0.20 $ 0.07 $ 0.84 $ 0.48 $ 0.96
Distributions to shareowners:
Net investment income (0.17) (0.35) (0.38) (0.40) (0.42) (0.50)
Net realized gain - - - - (0.04) -
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.03) $ (0.15) $ (0.31) $ 0.44 $ 0.02 $ 0.46
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 9.71 $ 9.74 $ 9.89 $ 10.20 $ 9.76 $ 9.74
======= ======= ======= ======= ======= =======
Total return* 1.48% 2.02% 0.69% 8.82% 4.99% 10.68%
Ratio of net expenses to average net assets+ 2.02%** 1.98% 1.94% 1.80% 1.95% 1.85%
Ratio of net investment income to average net assets+ 2.42%** 2.22% 2.02% 3.26% 4.18% 5.29%
Portfolio turnover rate 25%** 27% 66% 76% 72% 56%
Net assets, end of period (in thousands) $38,452 $39,641 $55,302 $67,013 $25,008 $16,889
Ratios with no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 2.02%** 1.98% 1.96% 1.88% 2.06% 1.98%
Net investment income 2.42%** 2.22% 2.00% 3.19% 4.07% 5.16%
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 2.02%** 1.98% 1.94% 1.79% 1.93% 1.83%
Net investment income 2.42%** 2.22% 2.02% 3.27% 4.20% 5.31%
* 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.
+ Ratio with no reduction for fees paid indirectly.
(a) On January 1,2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this charges for the year ended
December 31, 2001, was to decrease net investment income by $0.02 per
share, increase net realized and unrealized gain (loss) by $0.02 per share
and decrease the ratio of net investment income to average net assets
assuming waiver of management fees by PIM and reduction for fees paid
indirectly from 4.36% to 4.20%. Per share ratios and supplemental data for
periods prior to January 1, 2001, have not been restated to reflect this
change in presentation.
32 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months Ended
6/30/05 Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS C (unaudited) 12/31/04 12/31/03 12/31/02 12/31/01 (a) 12/31/00
Net asset value, beginning of period $ 9.77 $ 9.92 $ 10.24 $ 9.79 $ 9.74 $ 9.28
------- ------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.13 $ 0.19 $ 0.21 $ 0.36 $ 0.46 $ 0.49
Net realized and unrealized gain (loss) on investments 0.02 0.01 (0.13) 0.50 0.03 0.46
------- ------- ------- ------- ------- -------
Net increase from investment operations $ 0.15 $ 0.20 $ 0.08 $ 0.86 $ 0.49 $ 0.95
Distributions to shareowners:
Net investment income (0.18) (0.35) (0.40) (0.41) (0.43) (0.49)
Net realized gain - - - - (0.01) -
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.03) $ (0.15) $ (0.32) $ 0.45 $ 0.05 $ 0.46
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 9.74 $ 9.77 $ 9.92 $ 10.24 $ 9.79 $ 9.74
======= ======= ======= ======= ======= =======
Total return* 1.55% 2.09% 0.75% 8.93% 5.05% 10.52%
Ratio of net expenses to average net assets+ 1.89%** 1.89% 1.81% 1.77% 1.84% 2.02%
Ratio of net investment income to average net assets+ 2.49%** 2.31% 2.14% 3.16% 4.22% 5.14%
Portfolio turnover rate 25%** 27% 66% 76% 72% 56%
Net assets, end of period (in thousands) $29,453 $27,832 $37,456 $38,258 $ 6,776 $ 3,221
Ratios with no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 1.89%** 1.89% 1.83% 1.84% 1.95% 2.15%
Net investment income 2.49%** 2.31% 2.12% 3.08% 4.11% 5.01%
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 1.89%** 1.89% 1.81% 1.76% 1.81% 1.97%
Net investment income 2.49%** 2.31% 2.14% 3.16% 4.25% 5.19%
* 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.
+ Ratio with no reduction for fees paid indirectly.
(a) On January 1,2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this changes for the year ended
December 31, 2001, was to decrease net investment income by $0.01 per
share, increase net realized and unrealized gain (loss) by $0.01 per share
and decrease the ratio of net investment income to average net assets
assuming waiver of management fees by PIM and reduction for fees paid
indirectly from 4.42% to 4.25%. Per share ratios and supplemental data for
periods prior to January 1, 2001, have not been restated to reflect this
change in presentation.
The accompanying notes are an integral part of these financial statements. 33
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended 12/10/04
6/30/05 to
INVESTOR CLASS (unaudited) 12/31/04
Net asset value, beginning of period $ 9.79 $ 9.82
------- -------
Increase (decrease) from investment
operations:
Net investment income $ 0.17 $ 0.02
Net realized and unrealized gain (loss)
on investments 0.03 (0.02)
------- -------
Net increase (decrease) from investment
operations $ 0.20 $ -
Distributions to shareowners:
Net investment income (0.23) (0.03)
------- -------
Net decrease in net asset value $ (0.03) $ (0.03)
------- -------
Net asset value, end of period $ 9.76 $ 9.79
======= =======
Total return* 2.10% (0.04)%
Ratio of net expenses to average net assets+ 0.75%** 0.74%**
Ratio of net investment income to average
net assets+ 3.78%** 3.70%**
Portfolio turnover rate 25%** 27%
Net assets, end of period (in thousands) $42,570 $51,475
Ratios with no waiver of management fees by
PIM and no reductions for fees paid indirectly:
Net expenses 0.85%** 0.96%**
Net investment income 3.68%** 3.49%**
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 0.75%** 0.74%**
Net investment income 3.78%** 3.70%**
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, and the complete redemption of the
investment at net asset value at each end of each period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
34 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended 4/1/03 (a)
6/30/05 Year Ended to
CLASS R (unaudited) 12/31/04 12/31/03
Net asset value, beginning of period $ 9.89 $10.07 $10.31
------ ------ ------
Increase from investment operations:
Net investment income $ 0.16 $ 0.37 $ 0.25
Net realized and unrealized gain (loss) on
investments 0.02 (0.12) (0.17)
------ ------ ------
Net increase from investment operations $ 0.18 $ 0.25 $ 0.08
Distributions to shareowners:
Net investment income (0.21) (0.43) (0.32)
------ ------ ------
Net decrease in net asset value $(0.03) $(0.18) $(0.24)
------ ------ ------
Net asset value, end of period $ 9.86 $ 9.89 $10.07
====== ====== ======
Total return* 1.88% 2.58% 0.83%
Ratio of net expenses to average net assets+ 1.27%** 1.20% 1.08%**
Ratio of net investment income (loss) to
average net assets+ 3.14%** 3.01% (2.91)%**
Portfolio turnover rate 25%** 27% 66%
Net assets, end of period (in thousands) $ 854 $ 830 $ 329
Ratios with no waiver of management fees by
PIM and no reductions for fees paid indirectly:
Net expenses 1.27%** 1.20% 1.08%**
Net investment income (loss) 3.14%** 3.01% (2.91)%**
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 1.27%** 1.20% 1.08%**
Net investment income (loss) 3.14%** 3.01% (2.91)%**
(a) Class R shares were first publicly offered on April 1, 2003.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, and the complete redemption of the
investment at net asset value at each end of each period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 35
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/05 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer America Income Trust (the Trust) is a Massachusetts statutory trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Trust is to
provide a high level of current income consistent with preservation of capital
and prudent investment risk.
The Trustees have authorized the issuance of five classes of shares of the
Fund. The Fund offers five classes of shares designated as - Class A, Class B,
Class C, Investor Class and Class R shares. Class R shares were first publicly
offered on April 1, 2003. Investor Class shares were first issued on December
10, 2004. The Fund is not offering additional Investor Class shares except in
connection with the reinvestment of dividends on the Fund's outstanding
Investor Class Shares. Each class of shares represents an interest in the same
portfolio of investments of the Trust and have equal rights to voting,
redemptions, dividends and liquidation, except that each class of shares can
bear different transfer agent and distribution fees and has exclusive voting
rights with respect to the distribution plans that have been adopted by Class
A, Class B, Class C and Class R shareowners, respectively. There is no
distribution plan for Investor Class shares.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting year. Actual results could differ from those estimates. The following
is a summary of significant accounting policies followed by the Trust in the
preparation of its financial statements, which are consistent with those
policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value
of the Trust is computed once daily on each day the New York Stock
Exchange (NYSE) is open, as of the close of regular trading on the NYSE.
In computing the net asset value, securities are valued at prices supplied
by independent pricing services,
36
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
which consider such factors as Treasury spreads, yields, maturities and
ratings. Valuations may be supplemented by dealers and other sources, as
required. Securities for which market quotations are not readily available
are valued at their fair values as determined by, or under the direction
of the Board of Trustees. Securities for which there are no other readily
available valuation methods are valued at their fair values as determined
by, or under the direction of the Board of Trustees. As of June 30, 2005,
there were no securities fair valued. Principal amounts of mortgage-backed
securities are adjusted for monthly paydowns. Premiums and discounts
related to certain mortgage-backed securities are amortized or accreted in
proportion to the underlying monthly pay downs. All discounts/premiums on
debt securities are accreted/amortized into interest income on a yield to
maturity basis for financial reporting purposes. Interest income is
recorded on the accrual basis. Temporary cash investments are valued at
amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareowners. Therefore, no federal income tax provision is
required.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Trust's distributions may
be shown in the accompanying financial statements as either from net
investment income or net realized gain on investment transactions, or from
paid-in-capital, depending on the type of book/tax differences that may
exist.
At December 31, 2004, the Trust had a net capital loss carryforward of
$10,221,165, of which $742,335 will expire in 2006, $2,705,283 will expire
in 2007, $1,526,846 will expire in 2008, $2,070,786 will expire in 2011
and $3,175,915 will expire in 2012 if not utilized.
37
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
The Trust has elected to defer approximately $261,212 of capital losses
recognized between November 1, 2004 and December 31, 2004 to its fiscal
year ended December 31, 2005.
The tax character of current year distributions will be determined at the
end of the fiscal year. The tax character of distributions paid during the
year ended December 31, 2004 was as follows:
- --------------------------------------------------------------------------------
2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $8,808,385
Long-term capital gain -
----------
$8,808,385
Return of Capital -
----------
Total $8,808,385
==========
- --------------------------------------------------------------------------------
The following shows the components of accumulated losses on a
federal income tax basis at December 31, 2004.
- --------------------------------------------------------------------------------
2004
- --------------------------------------------------------------------------------
Undistributed ordinary income $ 116,233
Capital loss carryforward (10,221,165)
Post October losses deferred (261,212)
Unrealized appreciation 191,113
------------
Total $(10,175,031)
============
- --------------------------------------------------------------------------------
The difference between book basis and tax-basis unrealized appreciation is
primarily attributable to the tax deferral of losses on wash sales and the
tax treatment of premium amortization.
C. Fund Shares
The Trust records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Trust and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.
(UniCredito Italiano), earned $11,841 in underwriting commissions on the
sale of Class A shares for the period ended June 30, 2005.
38
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
D. Class Allocations
Distribution fees are calculated based on the average daily net asset
value attributable to Class A, Class B, Class C and Class R shares of the
Trust, respectively (See Notes 4). Investor Class 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 Trust level and
allocated daily to each class of shares based on the respective percentage
of adjusted net assets at the beginning of the day.
The Trust declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Trust with respect to each class of shares
are calculated in the same manner, at the same time, and in the same
amount, except that Class A, Class B, Class C, Investor Class and Class R
shares can bear different transfer agent and distribution fees.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value
of the underlying securities (collateral), including accrued interest
received from counter parties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Trust's custodian, or sub custodians. The
Trust's investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, manages the
Trust's portfolio. Management fees are calculated daily at the annual rate of
0.50% of the Trust's average daily net assets.
39
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
Through December 10, 2006, PIM has agreed not to impose all or a portion of its
management fee and to assume other operating expenses (excluding taxes,
commissions, interest and extraordinary expenses) of the Fund to the extent
necessary to limit Investor Class expenses to 0.74% of the average daily net
assets attributable to Investor Class shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Trust. At June 30, 2005, $3,400 was payable to PIM
related to management fees, administrative costs and certain other services,
and is included in due to affiliates.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Trust at
negotiated rates. Included in due to affiliates is $124,683 in transfer agent
fees payable to PIMSS at June 30, 2005.
4. Distribution and Service Plans
The Trust adopted Plans of Distribution with respect to each class of shares
(Class A Plan, Class B Plan, Class C Plan, and Class R Plan) in accordance with
Rule 12b-1 of the Investment Company Act of 1940. Pursuant to the Class A Plan,
the Trust pays PFD a service fee of up to 0.25% of the Trust's average daily
net assets attributable to Class A shares in reimbursement of such expenditures
to finance activities primarily intended to result in the sale of Class A
shares. Pursuant to the Class B Plan and the Class C Plan, the Trust pays PFD
1.00% of the average daily net assets attributable to each class of shares. The
fee consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class B and Class C shares. Pursuant to
the Class R Plan, the Trust pays PFD 0.50% of the average daily net assets
attributable to Class R shares for distribution services. Included in due to
affiliates is $2,688 in distribution fees payable to PFD at June 30, 2005. The
Trust also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Trust to pay securities dealers, plan
administrators or other services organizations that agree to provide certain
services to retirement plans or plan participants
40
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
holding shares of the Trust a service fee of up to 0.25% of the Trust's daily
net assets attributable to Class R shares held by such plans.
In addition, redemptions of each class of shares (except Investor Class) may be
subject to a contingent deferred sales charge (CDSC). Effective February 1,
2004, a CDSC of 1.00% may be imposed on redemptions of certain net asset value
purchases of Class A shares within 18 months of purchase (12 months for shares
purchased prior to February 1, 2004). Class B shares subscribed on or after
December 1, 2004 that are redeemed within five 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. Shares purchased prior to December 1,
2004 remain subject to the CDSC in effect at the time those shares were
purchased. Redemptions of Class C shares within one year of purchase are
subject to a CDSC of 1.00%. Redemption of Class R shares within 18 months of
purchase were subject to a CDSC of 1.00%. Effective July 1, 2004 the CDSC on
Class R shares was eliminated. Proceeds from the CDSCs are paid to PFD. For the
six months ended June 30, 2005, CDSCs in the amount of $51,156 were paid to
PFD.
5. Expense Offset Arrangements
The Trust has entered into certain expense offset arrangements with PIMSS,
resulting in a reduction in the Trust's total expenses due to interest earned
on cash held by PIMSS. For the six months ended June 30, 2005, the Trust's
expenses were reduced by $5,055 under such arrangements.
6. Merger Information
On December 8, 2004, beneficial owners of Safeco Intermediate Term U.S.
Government Fund (one of the Series that comprised Safeco Managed Bond Trust)
approved a proposed Agreement and Plan of Reorganization that provided for the
merger below. This tax-free reorganization was accomplished on December 10,
2004, by exchanging all of Safeco's net assets for Investor Class shares, based
on the Fund's Class A shares' ending net asset value. The following charts show
the details of the reorganizations as of that closing date ("Closing Date"):
41
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
Pioneer Safeco Pioneer
America Intermediate Term America
Income Trust U.S. Government Fund Income Trust
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- -------------------------------------------------------------------------------------------------
Net Assets $193,756,225 $53,131,201 $246,867,456
Shares Outstanding 19,757,153 5,599,642 25,167,692
Investor Class
Shares Issued 5,410,509
- -------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Unrealized Accumulated
Appreciation Loss on
on Closing Date Closing Date
- --------------------------------------------------------------------------------
Safeco Intermediate Term
U.S. Government Fund $33,133 $(1,399,442)
- --------------------------------------------------------------------------------
42
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT
- --------------------------------------------------------------------------------
The Investment Company Act of 1940 requires that both the Board of Trustees and
a majority of the Independent Trustees (collectively "the Trustees") vote
separately annually to approve the Fund's management contract (the "Management
Contract"). The Trustees have determined that the terms of the Management
Contract are fair and reasonable and that renewal of the contract will enable
the Fund to receive quality investment advisory services at a cost deemed
reasonable and in the best interests of the Fund and its shareholders. In
making such determinations, the Independent Trustees relied upon the assistance
of counsel to the Independent Trustees and counsel to the Fund.
Throughout the year, the Independent Trustees regularly met in executive
session separately from the Interested Trustees of the Fund and any officer of
Pioneer Investment Management, Inc., the Fund's adviser (the "Investment
Adviser"), or its affiliates. While the Trustees, including the Independent
Trustees, act on all major matters relating to the Fund, a significant portion
of the activities of the Board of Trustees (including certain of those
described herein) is conducted through committees, the members of which are
comprised exclusively of Independent Trustees. Such committee meetings are
attended by officers of the Fund or the Investment Adviser to the extent
requested by the members of the committee.
In evaluating the Management Contract, the Trustees conducted a review that was
specifically focused upon the renewal of the Management Contract, and relied
upon their knowledge, resulting from their meetings throughout the year, of the
Investment Adviser, its services and the Fund. Both in meetings specifically
dedicated to renewal of the Management Contract and at other meetings during
the course of the year, the Trustees, including the Independent Trustees,
received materials relating to the Investment Adviser's investment and
management services under the Management Contract. These materials included (i)
information on the investment performance of the Fund, a peer group of funds
and two indices, in each case selected by the Independent Trustees for this
purpose, (ii) sales and redemption data in respect to the Fund, (iii) the
general investment outlook in the markets in which the Fund invests, (iv)
arrangements in respect of the distribution of the Fund's shares, (v) the
procedures employed to determine the value of each of the Fund's assets, (vi)
the Investment Adviser's management of the relationships with the Fund's
unaffiliated service providers, (vii) the record of compliance with the
43
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
Fund's investment policies and restrictions and with the Fund's Code of Ethics
and the structure and responsibilities of the Investment Adviser's compliance
department, (viii) the nature, cost and character of non-investment management
services provided by the Investment Adviser and its affiliates and (ix) the
disclosures included in the Fund's prospectuses and reports to shareholders.
Specifically in connection with the Independent Trustees' review of the
Management Contract, the Independent Trustees requested and the Investment
Adviser provided additional information in order to evaluate the quality of the
Investment Adviser's services and the reasonableness of the fee under the
Management Contract. Among other items, this information included data or
analyses of (1) investment performance for one and three years and life of the
Fund periods for the Fund and a peer group selected by the Independent Trustees
for this purpose, (2) management fees incurred by a peer group of funds
selected by the Independent Trustees for this purpose, (3) the advisory fees of
comparable portfolios of other clients of the Investment Adviser, (4) expense
ratios for the Fund and a peer group of funds selected by the Independent
Trustees for this purpose, (5) the overall organization of the Investment
Adviser, (6) the Investment Adviser's financial results and condition,
including its and certain of its affiliates profitability from services
performed for the Fund, (7) transfer agency fees and administrative
reimbursements paid to the Investment Adviser or affiliates, (8) investment
management staffing, and (9) operating expenses paid to third parties. The
Trustees also reviewed information regarding the potential for the Fund and the
Investment Adviser to benefit from further economies of scale in the management
of the Fund in light of reasonable growth expectations for the Fund and certain
of the Fund's expenses that are not incurred as fees based on a percentage of
net assets.
The following summarizes matters considered by the Trustees in connection with
their renewal of the Fund's Management Contract. The Trustees did not identify
any single factor as all-important or controlling, and the summary does not
detail all the matters that were considered.
A. Ancillary Benefits to Shareholders. The Trustees considered the benefits to
shareholders of investing in a Fund that is part of a large number of
investment companies offering a variety of
44
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
investment disciplines and providing for a large variety of Fund and
shareholder services.
B. Compliance and Investment Performance. The Trustees determined that the
Investment Adviser had policies and systems reasonably designed to achieve
compliance with the Fund's investment objectives and regulatory
requirements. The Trustees also reviewed the Fund's investment performance
based upon total return and yield, as well as the Fund's performance
compared to both the performance of a peer group and an index, in each case
selected by the Independent Trustees for this purpose. The Fund's
performance based upon total return was in the third quintile of the peer
group for the 12 months ended June 30, 2004, the fifth quintile for the
three years ended June 30, 2004, and was in the fourth quintile for the five
years ended June 30, 2004. (In all quintile rankings referred to throughout
this discussion first quintile is most favorable to the Fund's shareholders.
Thus, highest relative performance would be first quintile and lowest
relative expenses also would be first quintile.) The Trustees also
considered the yield on the Fund relative to the yield on the Lehman
Brothers Government Bond Index. The Trustees noted that the Fund's policy of
only investing in investments backed by the full faith and credit of the
U.S. Treasury had a negative impact on performance relative to mutual funds
in the peer group that can invest in a broader range of U.S. Government
Securities. The Trustees concluded that, given the improving trend in
performance, the performance of the Fund supported the continuation of the
Management Contract.
C. The Investment Adviser's Personnel and Methods. The Trustees reviewed the
background of members of the team responsible for the daily management of
the Fund and the Fund's investment objective and discipline. The Independent
Trustees also have had discussions with senior management of the Investment
Adviser responsible for investment operations and the senior management of
the Investment Adviser's fixed income group. Among other things, the
Trustees considered the number, education and experience of the Investment
Adviser's investment staff and their use of technology and emphasis on
analytics in view of the risk profile of securities in which the Fund
invests. The Trustees concluded that the Investment Adviser had the quality
and depth of personnel and
45
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
the well-developed methods essential to performing its duties under the
Management Contract.
D. Nature and Quality of Other Services. The Trustees considered the nature,
quality, cost and extent of other services provided to shareholders of the
Fund, including administrative and shareholder services performed by the
Investment Adviser under the Management Contract. The Trustees also
considered the reasonableness of the arrangements for reimbursement of the
Investment Adviser's out-of-pocket costs and expenses, including overhead,
for certain administrative services that the Investment Adviser is not
required to provide under the Management Contract. The Trustees also
considered the nature and extent of the other services provided by the
Investment Adviser's affiliates under other contracts and its supervision of
third party service providers. Based on these considerations, the Trustees
concluded that the nature, quality, cost and extent of such services are
satisfactory and reliable and serve the shareholders of the Fund well.
E. Management Fee and Expenses. The Trustees considered the Investment
Adviser's fee under the Management Contract relative to the management fees
charged by a peer group of funds selected by the Independent Trustees for
this purpose using data provided by an independent third party. The Fund's
management fee for the 12 months ended June 30, 2004 was in the third
quintile relative to the management fees paid by the other funds in that
peer group for the comparable period. The Trustees determined that the fee
under the Management Contract was reasonable and fair in light of both the
overall nature and quality of services provided by the Investment Adviser
and the fees charged by the funds in the peer group. The Trustees also
considered the Fund's expense ratio and expense ratios of a peer group of
funds selected by the Independent Trustees for this purpose. The Fund's
expense ratio for the 12 months ended June 30, 2004 was in the fourth
quintile of the applicable peer group for the most recent fiscal year of the
peer group for the comparable period. The Trustees concluded that the Fund's
overall expense ratio was acceptable compared to comparably sized funds.
F. Profitability. The Trustees considered the level of the Investment Adviser's
profits with respect to the management of the Pioneer Funds, including
details with respect to the Fund. This consideration
46
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
included a review of the Investment Adviser's methodology in allocating
certain of its costs to the management of each Fund. The Trustees also
considered the financial results realized by the Investment Adviser in
connection with the operation of the Fund. They further considered the
profits realized by the Investment Adviser and its affiliates from
non-fund businesses that may benefit from or be related to the Fund's
business. The Trustees considered the Investment Adviser's profit margins
in comparison with the limited available industry data. The Trustees
concluded that the Investment Adviser's profits from management of the
Pioneer Funds, including the financial results derived from the Fund, bear
a reasonable relationship to the services rendered and are fair for the
management of the Fund.
G. Economies of Scale. The Trustees considered the economies of scale with
respect to the management of the Fund, whether the Fund had appropriately
benefited from any economies of scale, and whether there is potential for
realization of any further economies of scale. The Trustees concluded that,
given current and anticipated asset levels, break points in the management
fee were not necessary at this time. As assets increase, the Trustees will
continue to evaluate annually the appropriateness of break points
H. Other Benefits to the Investment Adviser. The Trustees also considered the
character and amount of fees paid by the Fund, other than under the
Management Contract, for services provided by the Investment Adviser and
affiliates, including fees for services such as shareholder services. The
Trustees also considered the receipt of sales loads and payments under Rule
12b-1 plans in respect to the Pioneer Funds (including the Fund). The
Trustees further considered the revenues and profitability of the Investment
Adviser's businesses other than the fund business, including the Investment
Adviser's institutional investment advisory business. The Trustees
considered the intangible benefits that accrue to the Investment Adviser and
its affiliates by virtue of its relationship with the Fund and the Pioneer
Funds as a group. The Trustees concluded that all these types of benefits
accruing to the Investment Adviser were reasonable in the context of the
overall relationship between the Investment Adviser and the Fund.
47
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
Conclusion. The Trustees, in light of the Investment Adviser's overall
performance, considered it appropriate to continue to retain the management
services of the Investment Adviser. Based on their evaluation of all material
factors deemed relevant and the advice of independent counsel, the Trustees
concluded that the Management Contract with the Fund is fair and reasonable and
voted to approve the continuation of the Management Contract for another year.
48
- --------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
Please consider a fund's investment objectives, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about a fund and should be read carefully before you invest or send money. To
obtain a prospectus and for other information on any Pioneer fund, contact your
advisor, call 1-800-225-6292 or visit our web site at www.pioneerfunds.com.
U.S. Equity Pioneer Ibbotson Growth
Pioneer Fund Allocation Fund
Pioneer Balanced Fund Pioneer Ibbotson Aggressive
Pioneer Cullen Value Fund Allocation Fund
Pioneer Equity Income Fund Pioneer Ibbotson Conservative
Pioneer Equity Opportunity Fund Allocation Fund
Pioneer Growth Opportunities Fund
Pioneer Growth Shares International/Global Equity
Pioneer Mid Cap Growth Fund Pioneer Emerging Markets Fund
Pioneer Mid Cap Value Fund Pioneer Europe Select Equity Fund
Pioneer Oak Ridge Large Cap Pioneer International Equity Fund
Growth Fund Pioneer International Value Fund
Pioneer Oak Ridge Small Cap
Growth Fund** Fixed Income
Pioneer AmPac Growth Fund(1) Pioneer America Income Trust
Pioneer Small and Mid Cap Pioneer Bond Fund
Growth Fund(2) Pioneer California Tax Free
Pioneer Growth Leaders Fund(3) Income Fund
Pioneer Strategic Growth Fund(4) Pioneer Global High Yield Fund
Pioneer Real Estate Shares Pioneer High Yield Fund
Pioneer Research Fund Pioneer Municipal Bond Fund
Pioneer Small Cap Value Fund Pioneer Short Term Income Fund
Pioneer Small Company Fund Pioneer Strategic Income Fund
Pioneer Value Fund Pioneer Tax Free Income Fund
Asset Allocation Money Market
Pioneer Ibbotson Moderate Pioneer Cash Reserves Fund*
Allocation Fund Pioneer Tax Free Money Market Fund
(1) Formerly Pioneer Papp America-Pacific Rim Fund
(2) Formerly Pioneer Papp Small and Mid Cap Growth Fund
(3) Formerly Pioneer Papp Stock Fund
(4) Formerly Pioneer Papp Strategic Growth 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.
** Effective May 26, 2005, Pioneer Oak Ridge Small Cap Growth Fund is generally
closed to new investors. Purchases in the Fund will be limited to existing
investors.
49
Pioneer America Income Trust
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Osbert M. Hood, Executive
Mary K. Bush Vice President
Margaret B.W. Graham Vincent Nave, Treasurer
Osbert M. Hood Dorothy E. Bourassa, Secretary
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Trust voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.pioneerfunds.com. This information is also available on the
Securities and Exchange Commission's web site at http://www.sec.gov.
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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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
Please consider the Trust's investment objectives, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about the Trust and should be read carefully before you invest. To obtain a
prospectus and for other information on any Pioneer fund, call 1-800-225-6292 or
visit our web site www.pioneerfunds.com.
The Trust files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(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.
N/A
(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.
N/A
(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.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The Fund's independent auditor, Ernst & Young
LLP ("E&Y"), has advised the Securities
and Exchange Commission, the Public Company
Accounting Oversight Board, and the Audit
Committee of the Fund's Board of Trustees that
certain non-audit work performed by E&Y's China
affiliate raised questions regarding E&Y's
independence with respect to its performance of
audit services for the Fund. In July 2004, E&Y
became aware that member firms in China ("E&Y
China") provided certain tax services to offices of
UniCredito Italiano, S.p.A. ("UCI"), a member of
the Fund's Investment Company Complex. The
services included receipt and disbursement of
monies transferred to E&Y China by UCI in
payment of individual expatriate income taxes due
on returns prepared by E&Y China for certain UCI
employees located in China from October 1998 to
May 2003. E&Y became auditors of the Fund in
May 2002. These expatriate tax services were
discontinued in May 2003. The fees received by
E&Y China for all such services totaled $3,685.
The Fund's Audit Committee and E&Y have
discussed the matter, including the nature of the
services provided, the personnel involved in
providing the services and the fees received by
E&Y for performing the services. E&Y has informed
the Audit Committee that based on its internal reviews
and the de minimis nature of the services provided and
fees received, it does not believe its independence
with respect to the Fund has been impaired.
N/A
(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.
N/A
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer and principal financial
officer have concluded, that the registrant's disclosure controls and
procedures are effective based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer America Income Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date August 29, 2005
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 29, 2005
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date August 29, 2005
* Print the name and title of each signing officer under his or her signature.