OMB APPROVAL
OMB Number: 3235-0570
Expires: September 30, 2007
Estimated average burden
hours per response.....19.4
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 December 31, 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
Annual
Report
12/31/05
[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
Report of Independent Registered Public Accounting Firm 43
Factors Considered by the Independent Trustees in Approving
the Management Contract 44
Trustees, Officers and Service Providers 50
Pioneer America Income Trust
- --------------------------------------------------------------------------------
LETTER TO SHAREOWNERS 12/31/05
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
As 2005 came to a close, U.S. investors looked back on a year of major
challenges, though without much change in the market indices. The war in Iraq
continued, oil prices soared, then dropped, while short-term interest rates
ratcheted steadily higher and intermediate and long-term rates stayed about the
same. Natural disasters also threatened economic expansion. Still, the economy
moved forward as corporate earnings grew. The hope of a growing economy was not
reflected by the small gains or losses in the major U.S. market indices. Among
capitalization ranges, midcap issues made the most headway. Bond prices held
firm and yields remained low, perhaps a sign that the Federal Reserve Board's
interest rate hikes would temper the inflationary pressures induced by a growing
economy.
Among the nagging issues facing the U.S. economy in 2006 is the potential impact
of high energy prices on consumer spending and corporate profits. Also unknown
at this time is whether the Federal Reserve Board will continue to raise
interest rates under its new chairman, Ben Bernanke, who stated his top priority
will be to maintain continuity.
Rising interest rates and improving business conditions made U.S. holdings more
attractive to foreign investors, helping to strengthen the dollar versus the
euro and other key currencies. Investors in many foreign markets enjoyed stellar
returns. Double-digit gains were widespread in Europe, Asia and Latin America.
Even the long-dormant Japanese economy began to stir, while emerging markets,
especially those rich in natural resources, fed global economic growth.
The disparity of returns among countries and sectors underscores the importance
for investors to maintain a well-diversified portfolio. We believe this may be a
good time for investors to review their holdings with their advisor and
determine if they reflect the wide range of opportunities that exist across many
asset classes, as last year's results make clear.
Investing for income with Pioneer
Adding one or more of Pioneer's income-oriented funds to your investment program
may help improve your portfolio's overall balance. As a premier provider of
fixed-income investments, Pioneer offers you a broad selection of actively
managed bond funds to help meet a variety of investment needs. Pioneer also
offers income-oriented equity funds, each managed using a value-oriented, total
return investment philosophy that seeks enhanced return potential and lower
volatility through active diversification. Your financial advisor can help you
select among Pioneer's fixed-income choices.
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.
Before investing consider the fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
1
Pioneer America Income Trust
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 12/31/05
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[The following data was represented as a pie chart in the printed material]
U.S. Government Agency Obligations 100%
Portfolio Maturity
- --------------------------------------------------------------------------------
(Effective life as a percentage of total investment portfolio)
[The following data was represented as a pie chart in the printed material]
0-1 Year 1.2%
1-3 Years 32.9%
3-4 Years 27.4%
4-6 Years 20.7%
6-8 Years 11.5%
8+ Years 6.3%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of debt holdings)
1. U.S. Treasury Inflation Protected Security, 3.0%, 7/15/12 8.96%
2. U.S. Treasury Bonds, 7.25%, 5/15/16 5.90
3. U.S. Treasury Notes, 6.5%, 2/15/10 5.45
4. U.S. Treasury Notes, 4.0%, 11/15/12 3.20
5. U.S. Treasury Notes, 6.375%, 8/15/27 3.20
6. U.S. Treasury Notes, 4.75%, 5/15/14 2.13
7. Government National Mortgage Association II, 5.5%, 3/2/34 2.12
8. Government National Mortgage Association II, 5.5%, 11/20/34 2.07
9. U.S. Treasury Bonds, 4.0%, 2/15/14 1.87
10. Government National Mortgage Association, 5.5%, 11/15/34 1.86
* This list excludes temporary cash investments and derivative instruments.
Portfolio holdings will vary for other periods.
2
Pioneer America Income Trust
- -----------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- -----------------------------------------------------------------------------
Net Asset Value Per Share
- -----------------------------------------------------------------------------
Class 12/31/05 12/31/04
- ------------ ---------- ---------
A $9.54 $9.79
B $9.49 $9.74
C $9.51 $9.77
Investor $9.54 $9.79
R $9.62 $9.89
Distributions Per Share
- -----------------------------------------------------------------------------
1/1/05 - 12/31/05
-----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------------ ------------ --------------- --------------
A $0.4272 $ - $ -
B $0.3453 $ - $ -
C $0.3580 $ - $ -
Investor $0.4674 $ - $ -
R $0.4230 $ - $ -
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 12/31/05 CLASS A 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 at public offering price,
compared to that of the Lehman Brothers Government Bond Index and of the Lehman
Brothers Fixed-Rate Mortgage-Backed Securities Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of December 31, 2005)
Net Asset Public
Value Offering
Period (NAV) Price (POP)
10 Years 4.86% 4.38%
5 Years 4.31 3.36
1 Year 1.84 -2.73
- --------------------------------------------------------------------------------
[The following data was represented as a line chart in the printed material]
Value of $10,000 Investment
Lehman Brothers
Pioneer Lehman Brothers Fixed-Rate
America Government Mortgage-Backed
Income Bond Securities
Trust Index Index
12/95 9,550 10,000 10,000
12/97 10,601 11,263 11,535
12/99 11,137 12,096 12,567
12/01 13,162 14,688 15,118
12/03 14,661 16,762 16,944
12/05 15,346 17,805 18,205
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
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 12/31/05 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 December 31, 2005)
If If
Period Held Redeemed
10 Years 4.04% 4.04%
5 Years 3.46 3.46
1 Year 0.99 -2.90
- --------------------------------------------------------------------------------
[The following data was represented as a line chart in the printed material]
Value of $10,000 Investment
Lehman Brothers
Pioneer Lehman Brothers Fixed-Rate
America Government Mortgage-Backed
Income Bond Securities
Trust Index Index
12/95 10,000 10,000 10,000
12/97 10,932 11,263 11,535
12/99 11,326 12,096 12,567
12/01 13,161 14,688 15,118
12/03 14,421 16,762 16,944
12/05 14,858 17,805 18,205
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
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 12/31/05 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 December 31, 2005)
If If
Period Held Redeemed
Life-of-Class
(1/31/96) 4.06% 4.06%
5 Years 3.52 3.52
1 Year 1.02 1.02
- --------------------------------------------------------------------------------
[The following data was represented as a line chart in the printed material]
Value of $10,000 Investment
Lehman Brothers
Pioneer Lehman Brothers Fixed-Rate
America Government Mortgage-Backed
Income Bond Securities
Trust Index Index
1/96 10,000 10,000 10,000
12/97 10,892 11,194 11,449
12/99 11,293 12,022 12,473
12/01 13,111 14,599 15,005
12/03 14,389 16,660 16,818
12/05 14,840 17,697 18,069
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
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 12/31/05 INVESTOR CLASS SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of December 31, 2005)
If If
Period Held Redeemed
Life-of-Class
(12/10/04) 2.11% 2.11%
1 Year 2.27 2.27
- --------------------------------------------------------------------------------
[The following data was represented as a line chart in the printed material]
Value of $10,000 Investment
Lehman Brothers
Pioneer Lehman Brothers Fixed-Rate
America Government Mortgage-Backed
Income Bond Securities
Trust Index Index
12/04 10,000 10,000 10,000
12/05 10,223 10,265 10,261
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
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 12/31/05 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 December 31, 2005)
If If
Period Held Redeemed
10 Years 4.49% 4.49%
5 Years 4.11 4.11
1 Year 1.53 1.53
- --------------------------------------------------------------------------------
[The following data was represented as a line chart in the printed material]
Value of $10,000 Investment
Lehman Brothers
Pioneer Lehman Brothers Fixed-Rate
America Government Mortgage-Backed
Income Bond Securities
Trust Index Index
12/95 10,000 10,000 10,000
12/97 10,974 11,263 11,535
12/99 11,418 12,096 12,567
12/01 13,367 14,688 15,118
12/03 14,894 16,762 16,944
12/05 15,510 17,805 18,205
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. The performance of
Class R shares does not reflect the 1% CDSC that was in effect prior to July 1,
2004. 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 July 1, 2005 through December 31, 2005
Investor
Share Class A B C R Class
- -----------------------------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 7/1/05
Ending Account Value $ 998.43 $ 995.17 $ 994.78 $1,001.67 $ 996.56
On 12/31/05
Expenses Paid During $ 6.04 $ 10.21 $ 9.70 $ 3.73 $ 8.10
Period*
* Expenses are equal to the Trust's annualized expense ratio of 1.20%, 2.03%,
1.93%, 1.61% and 0.74%, for Class A, Class B, Class C, Class R and Investor
Class shares, respectively, multiplied by the average account value over
the period, multiplied by 184/365 (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 July 1, 2005 through December 31, 2005
Investor
Share Class A B C R Class
- -----------------------------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 7/1/05
Ending Account Value $1,019.16 $1,014.97 $1,015.48 $1,021.48 $1,017.09
On 12/31/05
Expenses Paid During $ 6.11 $ 10.31 $ 9.80 $ 3.77 $ 8.19
Period*
* Expenses are equal to the Trust's annualized expense ratio of 1.20%, 2.03%,
1.93%, 1.61% and 0.74%, for Class A, Class B, Class C, Class R and Investor
Class shares, respectively, multiplied by the average account value over
the period, multiplied by 184/365 (to reflect the one-half year period).
10
Pioneer America Income Trust
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 12/31/05
- --------------------------------------------------------------------------------
In a year marked by hurricanes, high energy prices, concerns about accelerating
inflation and rising short-term interest rates, shareholders in Pioneer America
Income Trust earned a positive return on their investment. In the interview
below, Richard Schlanger, the Trust's day-to-day Portfolio Manager, discusses
the factors that affected the fixed-income market and the Trust over the past 12
months.
Q: How did the Trust perform during the period?
A: For the 12-month period ended December 31, 2005, Class A shares of Pioneer
America Income Trust produced a total return of 1.84% at net asset value.
The Trust underperformed its benchmark, the Lehman Brothers Government Bond
Index, which returned 2.65% for the same period. It also underperformed the
average 2.05% 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 3.17%. The Trust had 260 issues and the average quality of the
portfolio was AAA.
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: Economic growth was relatively strong, and productivity remained high. In
this environment, the Federal Reserve continued to reverse its
accommodative monetary policy and raised interest rates eight times during
the year, each time by a quarter point. At the end of 2005, the federal
funds target rate was 4.25%, up from 2.25% in January 2005. (The federal
funds rate is the rate banks charge for overnight loans. Since June 2004,
the Fed has hiked interest rates 13 times, taking the federal funds rate
from a 40-year low of 1% to the current 4.25%.) The net effect of the Fed's
actions was a flattening of the yield curve, where short-term yields and
longer-term yields were approximately the same. On December 30, 2005, the
yield curve inverted slightly, with longer-term yields falling below
11
Pioneer America Income Trust
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 12/31/05 (continued)
- --------------------------------------------------------------------------------
short-term yields. (The yield curve shows the relationship between bond
yields and maturity lengths.)
During the year, government bonds benefited from an influx of money from
both foreign and domestic investors. While long-term yields on U.S.
Treasuries were relatively low, they were among the highest of the
developed countries and attractive to overseas investors. The performance
of government bonds was also enhanced by a flight to quality. At a time
when long-term yields declined and the debt of General Motors and Ford was
downgraded by credit rating agencies, domestic investors saw little
advantage to taking on risk. As a result, they moved into the relative
safety of government securities.
Q: What strategies did you use in managing the Trust?
A: As interest rates rose, we extended duration, or sensitivity to
interest-rate changes, by reducing exposure to mortgage securities and
adding to positions in Treasury issues and Treasury Inflation Protected
Securities (TIPS). TIPS are securities whose principal is tied to the
consumer price index, a monthly indicator that measures the price inflation
of a representative basket of goods and services. When inflation
accelerates, the principal on TIPS increases in value. The interest-rate
payment on TIPS is calculated on the inflated principal. While inflation
was not a problem in 2005, we are concerned about the potential for it to
pick up. Oil prices are over $60 a barrel, the price of gold is at a
25-year high and the unemployment rate fell below 5%. These factors and
others could lead to an upturn in inflation. At the end of the period, 59%
of the portfolio was in mortgage pass-through securities issued by the
Government National Mortgage Association, 40% was in Treasury issues and
TIPS, and 1% was in cash.
Q: What detracted from performance?
A: Our positioning on the yield curve held back return. Throughout the 12
months, we maintained a bulleted strategy, which means we invested in bonds
across the maturity spectrum, with the biggest concentration in the
intermediate-term range of two-years to ten-years. While our short-term and
long-term bonds did well, intermediate-term bonds detracted from
performance. In hindsight, it would have been more advantageous to have had
a barbelled configuration, overweighting the short and long ends of the
yield curve and holding relatively few intermediate-term bonds.
12
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q: What contributed to performance?
A: During the second half of 2005, yields on 10-year Treasuries traded in a
relatively narrow range of roughly 3.90% to a high of roughly 4.68%. As
10-year Treasuries declined in price and rose in yield, we extended
duration. This aided results because 10-year Treasuries closed the year at
4.40%, down from their highs. A longer duration usually benefits a
portfolio when yields decline. The performance of TIPS also helped boost
the Trust's return.
Q: What is your outlook?
A: In general we are positive when looking ahead. While we believe the
inverted yield curve may be indicating some moderating in economic growth,
we do not think it is signaling recession. When the Fed began raising
interest rates, the federal funds rate was extremely low at 1%. We think
that the current 4.25% level is not restrictive, especially with an
inflation rate of roughly 2.0% to 2.5%. While we think the consumer may cut
back on spending, it is likely that business will pick up the slack. An
increase in capital spending on the part of corporations may be enough to
keep the economy growing at a respectable rate. The Fed may be in the late
stages of its rate-raising cycle. Should the Fed ease rates somewhat, we
believe intermediate-term securities will outperform longer-term
securities. We are well-positioned should this occur. As we move into 2006,
we believe the Trust should continue to provide income diversification for
investors who want to avoid the risk associated with the more volatile
areas of the fixed-income market and with equities.
When interest rates rise, the prices of fixed income securities in the fund will
generally fall. Conversely, when interest rates fall, the prices of fixed income
securities in the fund will generally rise. Prepayment risk is the chance that
mortgage-backed bonds will be paid off early if falling interest rates prompt
homeowners to refinance their mortgages. Forced to reinvest the unanticipated
proceeds at lower interest rates, the fund would experience a decline in income
and lose the opportunity for additional price appreciation associated with
falling interest rates. 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. Government guarantees apply to the underlying securities only
and not to the prices and yields of the
13
Pioneer America Income Trust
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 12/31/05 (continued)
- --------------------------------------------------------------------------------
portfolio. At times, the fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making it more susceptible
to any economic, political, or regulatory developments or other risks affecting
those industries and sectors.
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 opinions 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 12/31/05
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 99.0%
$ 690,656 Government National Mortgage Association,
4.5%, 1/15/35 $ 662,814
191,040 Government National Mortgage Association,
4.5%, 12/15/19 187,391
520,501 Government National Mortgage Association,
4.5%, 4/15/18 510,747
750,000 Government National Mortgage Association,
4.5%, 7/20/34 722,482
967,088 Government National Mortgage Association,
4.5%, 4/15/20 948,013
839,154 Government National Mortgage Association,
4.5%, 6/15/19 823,125
3,016,429 Government National Mortgage Association,
4.5%, 6/15/34 2,894,404
369,286 Government National Mortgage Association,
4.5%, 8/15/19 362,233
769,141 Government National Mortgage Association,
4.5%, 8/15/33 738,158
1,449,390 Government National Mortgage Association,
4.5%, 3/15/20 1,420,802
789,565 Government National Mortgage Association,
4.5%, 6/15/19 774,483
414,498 Government National Mortgage Association,
5.0%, 1/20/20 412,109
495,938 Government National Mortgage Association,
5.0%, 10/15/20 494,680
890,999 Government National Mortgage Association,
5.0%, 10/15/33 880,548
997,682 Government National Mortgage Association,
5.0%, 10/15/35 985,211
718,007 Government National Mortgage Association,
5.0%, 2/15/19 716,338
467,547 Government National Mortgage Association,
5.0%, 2/15/20 466,361
The accompanying notes are an integral part of these financial statements. 15
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/05 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 990,555 Government National Mortgage Association,
5.0%, 4/15/35 $ 978,173
902,637 Government National Mortgage Association,
5.0%, 5/15/34 891,854
499,917 Government National Mortgage Association,
5.0%, 6/15/35 493,669
614,237 Government National Mortgage Association,
5.0%, 9/15/33 607,047
1,922,208 Government National Mortgage Association,
5.00%, 4/15/35 1,898,180
793,321 Government National Mortgage Association,
5.5%, 1/15/29 799,453
724,295 Government National Mortgage Association,
5.5%, 1/15/35 715,241
567,746 Government National Mortgage Association,
5.5%, 10/15/19 576,128
776,821 Government National Mortgage Association,
5.5%, 10/15/33 782,926
1,490,049 Government National Mortgage Association,
5.5%, 10/15/34 1,500,288
6,209,553 Government National Mortgage Association,
5.5%, 11/15/34 6,252,219
1,258,181 Government National Mortgage Association,
5.5%, 2/15/19 1,276,708
376,039 Government National Mortgage Association,
5.5%, 4/15/19 381,590
422,011 Government National Mortgage Association,
5.5%, 4/15/31 425,499
2,999,835 Government National Mortgage Association,
5.5%, 4/15/34 3,020,447
2,862,804 Government National Mortgage Association,
5.5%, 5/15/33 2,885,305
236,232 Government National Mortgage Association,
5.5%, 6/15/18 239,707
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)
$ 3,142,535 Government National Mortgage Association,
5.5%, 7/15/19 $ 3,175,357
982,748 Government National Mortgage Association,
5.5%, 8/15/33 990,472
2,160,533 Government National Mortgage Association,
5.5%, 9/15/33 2,177,553
1,525,228 Government National Mortgage Association,
5.50%, 7/15/33 1,537,216
91,512 Government National Mortgage Association,
6.0%, 1/15/24 93,917
3,630,809 Government National Mortgage Association,
6.0%, 1/15/33 3,724,185
836,137 Government National Mortgage Association,
6.0%, 1/20/33 855,285
24,029 Government National Mortgage Association,
6.0%, 10/15/28 24,644
5,314,837 Government National Mortgage Association,
6.0%, 10/15/32 5,450,581
1,772,353 Government National Mortgage Association,
6.0%, 10/15/34 1,815,045
4,082,389 Government National Mortgage Association,
6.0%, 11/15/32 4,189,312
782,884 Government National Mortgage Association,
6.0%, 11/15/33 802,519
5,053,318 Government National Mortgage Association,
6.0%, 12/15/32 5,186,666
2,800,839 Government National Mortgage Association,
6.0%, 2/15/33 2,871,085
981,397 Government National Mortgage Association,
6.0%, 3/15/33 1,006,010
796,870 Government National Mortgage Association,
6.0%, 3/15/34 816,064
441,319 Government National Mortgage Association,
6.0%, 4/15/28 452,679
The accompanying notes are an integral part of these financial statements. 17
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/05 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 1,647,647 Government National Mortgage Association,
6.0%, 4/15/33 $ 1,692,105
1,160,949 Government National Mortgage Association,
6.0%, 5/15/17 1,192,490
375,462 Government National Mortgage Association,
6.0%, 5/15/33 384,879
710,307 Government National Mortgage Association,
6.0%, 6/15/34 727,416
1,257,932 Government National Mortgage Association,
6.0%, 8/15/34 1,288,538
1,739,005 Government National Mortgage Association,
6.0%, 9/15/32 1,782,735
359,010 Government National Mortgage Association,
6.0%, 9/15/33 368,014
361,921 Government National Mortgage Association,
6.0%, 9/15/34 370,639
973,733 Government National Mortgage Association,
6.0%, 9/15/35 997,163
286,271 Government National Mortgage Association,
6.00%, 11/15/28 293,597
1,021,241 Government National Mortgage Association,
6.5%, 1/15/32 1,068,858
228,431 Government National Mortgage Association,
6.5%, 10/15/28 239,186
5,808 Government National Mortgage Association,
6.5%, 10/15/31 6,071
327,704 Government National Mortgage Association,
6.5%, 2/15/28 343,133
1,031,161 Government National Mortgage Association,
6.5%, 2/15/32 1,077,483
445,337 Government National Mortgage Association,
6.5%, 3/15/28 466,360
468,958 Government National Mortgage Association,
6.5%, 3/15/29 490,735
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)
$ 619,177 Government National Mortgage Association,
6.5%, 3/15/32 $ 646,993
212,717 Government National Mortgage Association,
6.5%, 4/15/17 219,728
115,840 Government National Mortgage Association,
6.5%, 4/15/28 121,294
212,423 Government National Mortgage Association,
6.5%, 4/15/28 222,112
971,331 Government National Mortgage Association,
6.5%, 4/15/32 1,014,967
540,409 Government National Mortgage Association,
6.5%, 4/15/33 564,571
67,802 Government National Mortgage Association,
6.5%, 5/15/29 70,950
741,216 Government National Mortgage Association,
6.5%, 5/15/32 774,514
88,312 Government National Mortgage Association,
6.5%, 6/15/17 91,223
76,015 Government National Mortgage Association,
6.5%, 6/15/28 79,599
37,494 Government National Mortgage Association,
6.5%, 6/15/29 39,235
215,555 Government National Mortgage Association,
6.5%, 6/15/31 225,298
288,089 Government National Mortgage Association,
6.5%, 6/15/32 301,402
321,204 Government National Mortgage Association,
6.5%, 7/15/31 335,722
471,130 Government National Mortgage Association,
6.5%, 7/15/32 492,296
111,068 Government National Mortgage Association,
6.5%, 8/15/28 116,298
75,297 Government National Mortgage Association,
6.5%, 8/15/31 78,700
The accompanying notes are an integral part of these financial statements. 19
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/05 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 680,392 Government National Mortgage Association,
6.5%, 8/15/32 $ 711,486
431,492 Government National Mortgage Association,
6.5%, 9/15/31 450,995
267,137 Government National Mortgage Association,
6.5%, 9/15/32 279,137
110,996 Government National Mortgage Association,
7.0%, 1/15/30 116,615
148,604 Government National Mortgage Association,
7.0%, 10/15/16 155,075
47,603 Government National Mortgage Association,
7.0%, 10/15/31 49,978
82,679 Government National Mortgage Association,
7.0%, 11/15/26 87,033
154,740 Government National Mortgage Association,
7.0%, 11/15/29 162,541
45,420 Government National Mortgage Association,
7.0%, 11/15/31 47,686
134,512 Government National Mortgage Association,
7.0%, 2/15/28 141,365
65,070 Government National Mortgage Association,
7.0%, 2/15/31 68,317
97,803 Government National Mortgage Association,
7.0%, 2/15/32 102,676
124,583 Government National Mortgage Association,
7.0%, 3/15/28 130,929
356,130 Government National Mortgage Association,
7.0%, 3/15/32 373,874
195,259 Government National Mortgage Association,
7.0%, 4/15/28 205,206
131,785 Government National Mortgage Association,
7.0%, 4/15/32 138,351
197,191 Government National Mortgage Association,
7.0%, 5/15/29 207,133
20 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)
$ 40,791 Government National Mortgage Association,
7.0%, 5/15/31 $ 42,827
58,365 Government National Mortgage Association,
7.0%, 6/15/29 61,308
63,958 Government National Mortgage Association,
7.0%, 6/15/31 67,149
272,086 Government National Mortgage Association,
7.0%, 7/15/25 286,501
170,906 Government National Mortgage Association,
7.0%, 7/15/28 179,723
86,559 Government National Mortgage Association,
7.0%, 7/15/29 90,923
495,995 Government National Mortgage Association,
7.0%, 9/15/24 522,271
90,834 Government National Mortgage Association,
7.0%, 9/15/29 95,414
197,131 Government National Mortgage Association,
7.0%, 9/15/31 206,968
119,685 Government National Mortgage Association,
7.5%, 1/15/32 125,856
289,015 Government National Mortgage Association,
7.5%, 10/15/27 304,475
242,884 Government National Mortgage Association,
7.5%, 11/15/30 255,482
149,826 Government National Mortgage Association,
7.5%, 12/15/31 157,556
152,688 Government National Mortgage Association,
7.5%, 2/15/27 160,856
20,611 Government National Mortgage Association,
7.5%, 2/15/31 21,675
133,789 Government National Mortgage Association,
7.5%, 3/15/32 140,688
190,800 Government National Mortgage Association,
7.5%, 4/15/29 200,419
The accompanying notes are an integral part of these financial statements. 21
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/05 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 52,970 Government National Mortgage Association,
7.5%, 6/15/29 $ 55,765
13,114 Government National Mortgage Association,
7.5%, 8/15/29 13,799
12,848 Government National Mortgage Association,
7.5%, 9/15/30 13,514
123,799 Government National Mortgage Association,
8.0%, 12/1/29 132,571
313,799 Government National Mortgage Association,
8.25%, 5/15/20 337,799
55,571 Government National Mortgage Association,
8.5%, 7/15/24 60,478
4,964 Government National Mortgage Association,
9.0%, 10/15/16 5,373
6,539 Government National Mortgage Association,
9.0%, 4/15/20 7,132
656 Government National Mortgage Association,
9.0%, 9/15/16 710
95,576 Government National Mortgage Association,
10.0%, 1/15/19 106,374
42,701 Government National Mortgage Association,
10.0%, 3/15/20 47,588
286,395 Government National Mortgage Association I,
6.5%, 1/15/32 299,172
314,755 Government National Mortgage Association I,
6.5%, 11/15/31 328,982
84,500 Government National Mortgage Association I,
6.5%, 12/15/31 88,319
179,276 Government National Mortgage Association I,
6.5%, 5/15/32 187,330
249,113 Government National Mortgage Association I,
6.5%, 9/15/32 260,304
180,008 Government National Mortgage Association I,
7.0%, 1/15/31 188,991
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)
$ 381,068 Government National Mortgage Association I,
7.0%, 12/15/30 $ 400,149
73,409 Government National Mortgage Association I,
7.0%, 4/15/31 77,072
232,881 Government National Mortgage Association I,
7.0%, 8/15/23 245,218
349,237 Government National Mortgage Association I,
7.0%, 9/15/29 367,490
77,179 Government National Mortgage Association I,
7.5%, 3/15/31 81,161
17,526 Government National Mortgage Association I,
7.5%, 8/15/29 18,442
720,387 Government National Mortgage Association II,
5.0%, 12/20/18 716,729
704,971 Government National Mortgage Association II,
5.0%, 2/20/19 701,066
4,408,692 Government National Mortgage Association II,
5.5%, 11/20/34 4,427,964
2,479,346 Government National Mortgage Association II,
5.5%, 2/20/34 2,490,184
4,504,995 Government National Mortgage Association II,
5.5%, 3/20/34 4,524,688
1,989,773 Government National Mortgage Association II,
5.5%, 7/20/19 2,012,939
235,099 Government National Mortgage Association II,
6.0%, 10/20/31 240,449
998,793 Government National Mortgage Association II,
6.0%, 10/20/33 1,025,100
2,457,811 Government National Mortgage Association II,
6.0%, 11/20/33 2,514,097
587,333 Government National Mortgage Association II,
6.0%, 12/20/18 601,473
2,897,613 Government National Mortgage Association II,
6.0%, 12/20/33 2,963,987
The accompanying notes are an integral part of these financial statements. 23
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/05 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 470,121 Government National Mortgage Association II,
6.0%, 2/20/34 $ 481,289
1,434,785 Government National Mortgage Association II,
6.0%, 3/20/33 1,467,643
654,924 Government National Mortgage Association II,
6.0%, 6/20/34 669,271
253,967 Government National Mortgage Association II,
6.0%, 7/20/17 260,074
354,038 Government National Mortgage Association II,
6.0%, 7/20/19 362,448
152,476 Government National Mortgage Association II,
6.5%, 1/20/24 158,536
380,400 Government National Mortgage Association II,
6.5%, 10/20/32 394,758
510,429 Government National Mortgage Association II,
6.5%, 10/20/33 529,587
520,498 Government National Mortgage Association II,
6.5%, 3/20/34 539,616
132,545 Government National Mortgage Association II,
6.5%, 4/20/31 137,585
92,603 Government National Mortgage Association II,
6.5%, 6/20/31 96,123
399,354 Government National Mortgage Association II,
6.5%, 8/20/28 415,326
103,491 Government National Mortgage Association II,
7.0%, 1/20/31 107,944
68,170 Government National Mortgage Association II,
7.0%, 11/20/31 71,103
22,847 Government National Mortgage Association II,
7.0%, 12/20/08 23,321
75,679 Government National Mortgage Association II,
7.0%, 5/20/26 79,147
177,997 Government National Mortgage Association II,
7.0%, 7/20/31 185,656
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)
$ 46,875 Government National Mortgage Association II,
7.5%, 12/20/30 $ 49,072
26,917 Government National Mortgage Association II,
7.5%, 6/20/30 28,178
62,167 Government National Mortgage Association II,
8.0%, 3/20/30 66,244
416 Government National Mortgage Association II,
8.0%, 5/20/25 444
49,547 Government National Mortgage Association II,
9.0%, 11/20/24 54,082
22,276 Government National Mortgage Association II,
9.0%, 3/20/22 24,268
4,262 Government National Mortgage Association II,
9.0%, 4/20/22 4,644
11,153 Government National Mortgage Association II,
9.0%, 9/20/21 12,137
4,100,000 U.S. Treasury Bonds, 4.0%, 2/15/14 3,988,853
2,800,000 U.S. Treasury Bonds, 6.25%, 8/15/23 3,343,595
250,000 U.S. Treasury Bonds, 6.50%, 11/15/26 312,422
10,270,000 U.S. Treasury Bonds, 7.25%, 5/15/16 12,610,441
500,000 U.S. Treasury Bonds 8.75%, 5/15/20 717,324
18,111,713 U.S. Treasury Inflation Protected Security,
3.0%, 7/15/12 19,150,311
2,288,760 U.S. Treasury Inflation Protected Security,
3.5%, 1/15/11 2,446,112
1,121,700 U.S. Treasury Inflation Protected Security,
3.375%, 1/15/12 1,206,134
1,000,000 U.S. Treasury Notes, 3.50%, 12/15/09 968,867
7,000,000 U.S. Treasury Notes, 4.0%, 11/15/12 6,849,339
4,000,000 U.S. Treasury Notes, 4.25%, 11/15/14 3,953,436
650,000 U.S. Treasury Notes, 4.75%, 11/15/08 656,246
4,450,000 U.S. Treasury Notes, 4.75%, 5/15/14 4,558,295
1,750,000 U.S. Treasury Notes, 5.5%, 2/15/08 1,789,170
2,000,000 U.S. Treasury Notes, 5.5%, 8/15/28 2,248,828
250,000 U.S. Treasury Notes, 6.125%, 8/15/29 304,522
The accompanying notes are an integral part of these financial statements. 25
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/05 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 5,525,000 U.S. Treasury Notes, 6.375%, 8/15/27 $ 6,844,309
10,800,000 U.S. Treasury Notes, 6.50%, 2/15/10 11,650,079
1,000,000 U.S. Treasury Notes, 6.625%, 5/15/07 1,029,062
------------
$213,813,965
------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $215,124,788) $213,813,965
------------
TOTAL INVESTMENTS IN SECURITIES - 99.0%
(Cost $215,124,788) (a) $213,813,965
------------
OTHER ASSETS AND LIABILITIES - 1.0% $ 2,253,469
------------
TOTAL NET ASSETS $216,067,434
============
(a) At December 31, 2005, the net unrealized loss on investments based on cost
for federal income tax purposes of $216,526,432 was as follows:
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $ 1,904,598
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value $ (4,617,065)
------------
Net unrealized loss $ (2,712,467)
============
Purchases and sales of securities (excluding temporary cash investments) for the
year ended December 31, 2005 aggregated $61,985,394 and $81,965,394,
respectively
26 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 12/31/05
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (cost $215,124,788) $213,813,965
Cash 1,870,851
Receivable -
Fund shares sold 114,900
Interest 1,726,051
Due from Pioneer Investment Management, Inc. 3,252
------------
Total assets $217,529,019
------------
LIABILITIES:
Payables -
Fund shares repurchased $ 1,092,601
Dividends 190,296
Due to affiliates 85,907
Accrued expenses 92,781
------------
Total liabilities $ 1,461,585
------------
NET ASSETS:
Paid-in capital $232,460,721
Distributions in excess of net investment income (1,275,859)
Accumulated net realized loss on investments (13,806,605)
Net unrealized loss on investments (1,310,823)
------------
Total net assets $216,067,434
============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $116,433,452/12,201,977 shares) $ 9.54
============
Class B (based on $35,581,404/3,751,147 shares) $ 9.49
============
Class C (based on $24,788,728/2,605,231 shares) $ 9.51
============
Investor Class (based on $38,368,524/4,020,765 shares) $ 9.54
============
Class R (based on $895,326/93,025 shares) $ 9.62
============
MAXIMUM OFFERING PRICE:
Class A ($9.54 [divided by] 95.5%) $ 9.99
============
The accompanying notes are an integral part of these financial statements. 27
Pioneer America Income Trust
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For Year Ended 12/31/05
INVESTMENT INCOME:
Interest $10,532,135
-----------
Total investment income $10,532,135
-----------
EXPENSES:
Management fees $ 1,146,827
Transfer agent fees and expenses
Class A 373,125
Class B 149,097
Class C 79,205
Investor Class 82,827
Class R 3,947
Distribution fees
Class A 299,196
Class B 378,772
Class C 274,332
Class R 4,263
Administrative reimbursements 45,549
Custodian fees 20,916
Registration fees 134,284
Professional fees 56,120
Printing expense 35,572
Fees and expenses of nonaffiliated trustees 9,519
Miscellaneous 18,480
-----------
Total expenses $ 3,112,031
Less management fees waived and expenses
reimbursed by Pioneer Investment
Management, Inc. (36,576)
Less fees paid indirectly (7,996)
-----------
Net expenses $ 3,067,459
-----------
Net investment income $ 7,464,676
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $ (873,555)
-----------
Change in net unrealized loss on investments $(3,012,450)
-----------
Net loss on investments $(3,886,005)
-----------
Net increase in net assets resulting from operations $ 3,578,671
===========
28 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 12/31/05 and 12/31/04
Year Ended Year Ended
12/31/05 12/31/04
FROM OPERATIONS:
Net investment income $ 7,464,676 $ 5,980,649
Net realized loss on investments (873,555) (284,687)
Change in net unrealized loss on investments (3,012,450) (509,007)
------------- -------------
Net increase in net assets resulting
from operations $ 3,578,671 $ 5,186,955
------------- -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.43 and $0.43 per share, respectively) $ (5,294,373) $ (5,875,264)
Class B ($0.35 and $0.35 per share, respectively) (1,358,450) (1,631,240)
Class C ($0.36 and $0.35 per share, respectively) (1,015,869) (1,135,022)
Investor Class ($0.47 and $0.03 per share,
respectively) (2,091,640) (141,451)
Class R ($0.42 and $0.43 per share, respectively) (36,595) (25,408)
------------- -------------
Total distributions to shareowners $ (9,796,927) $ (8,808,385)
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 64,972,188 $ 52,481,179
Shares issued in reorganization - 53,131,201
Reinvestment of distributions 7,866,321 6,832,862
Cost of shares repurchased (93,855,460) (112,546,777)
------------- -------------
Net decrease in net assets resulting from
Fund share transactions $ (21,016,951) $ (101,535)
------------- -------------
Net decrease in net assets $ (27,235,207) $ (3,722,965)
NET ASSETS:
Beginning of year 243,302,641 247,025,606
------------- -------------
End of year (including distributions in excess of
net investment income of ($1,275,859) and
($1,304,113) respectively) $ 216,067,434 $ 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 Amounts '04 Shares '04 Amounts
CLASS A
Shares sold 3,916,547 $ 37,903,879 2,554,762 $ 25,153,365
Reinvestment of distributions 467,846 4,518,726 497,374 4,892,250
Less shares repurchased (4,796,419) (46,280,804) (5,906,236) (58,252,318)
------------ ------------ ------------ ------------
Net decrease (412,026) $ (3,858,199) (2,854,100) $(28,206,703)
============ ============ ============ ============
CLASS B
Shares sold 1,574,294 $ 15,142,679 1,250,986 $ 12,206,639
Reinvestment of distributions 104,681 1,005,146 116,378 1,138,044
Less shares repurchased (1,999,241) (19,127,579) (2,886,505) (28,273,002)
------------ ------------ ------------ ------------
Net decrease (320,266) $ (2,979,754) (1,519,141) $(14,928,319)
============ ============ ============ ============
CLASS C
Shares sold 1,207,346 $ 11,667,546 1,464,627 $ 14,366,399
Reinvestment of distributions 62,611 603,436 67,716 664,306
Less shares repurchased (1,513,783) (14,545,916) (2,458,051) (24,137,347)
------------ ------------ ------------ ------------
Net decrease (243,826) $ (2,274,934) (925,708) $ (9,106,642)
============ ============ ============ ============
INVESTOR CLASS
Shares sold 2,184 $ 21,269 - $ -
Shares issued at
reorganization - - 5,410,509 53,131,201
Reinvestment of distributions 177,302 1,713,471 11,861 116,123
Less shares repurchased (1,415,838) (13,728,062) (165,253) (1,618,941)
------------ ------------ ------------ ------------
Net increase (decrease) (1,236,352) $(11,993,322) 5,257,117 $ 51,628,383
============ ============ ============ ============
CLASS R (a)
Shares sold 24,301 $ 236,815 75,438 $ 754,776
Reinvestment of distributions 2,619 25,542 2,226 22,139
Less shares repurchased (17,753) (173,099) (26,439) (265,169)
------------ ------------ ------------ ------------
Net increase 9,167 $ 89,258 51,225 $ 511,746
============ ============ ============ ============
(a) Class R shares were first publicly offered on April 1, 2003
30 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS A 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01(a)
Net asset value, beginning of period $ 9.79 $ 9.95 $ 10.27 $ 9.79 $ 9.76
-------- -------- -------- -------- --------
Increase from investment operations:
Net investment income $ 0.32 $ 0.28 $ 0.28 $ 0.40 $ 0.52
Net realized and unrealized gain (loss) on investments (0.14) (0.01) (0.13) 0.54 0.05
-------- -------- -------- -------- --------
Net increase from investment operations $ 0.18 $ 0.27 $ 0.15 $ 0.94 $ 0.57
Distributions to shareowners:
Net investment income (0.43) (0.43) (0.47) (0.46) (0.51)
Net realized gain - - - - (0.03)
-------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ (0.25) $ (0.16) $ (0.32) $ 0.48 $ 0.03
-------- -------- -------- -------- --------
Net asset value, end of period $ 9.54 $ 9.79 $ 9.95 $ 10.27 $ 9.79
======== ======== ======== ======== ========
Total return* 1.84% 2.77% 1.47% 9.78% 5.92%
Ratio of net expenses to average net assets+ 1.20% 1.16% 1.10% 1.00% 1.01%
Ratio of net investment income to average net assets+ 3.36% 3.04% 2.85% 4.17% 5.14%
Portfolio turnover rate 27% 27% 66% 76% 72%
Net assets, end of period (in thousands) $116,433 $123,524 $153,939 $164,393 $115,998
Ratios with no waiver of management fees by
PIM and no reductions for fees paid indirectly:
Net expenses 1.20% 1.16% 1.12% 1.08% 1.12%
Net investment income 3.36% 3.04% 2.83% 4.09% 5.03%
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 1.20% 1.16% 1.10% 1.00% 1.00%
Net investment income 3.36% 3.04% 2.85% 4.18% 5.15%
* 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.
+ 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%.
The accompanying notes are an integral part of these financial statements.
31
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS B 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01(a)
Net asset value, beginning of period $ 9.74 $ 9.89 $ 10.20 $ 9.76 $ 9.74
------- ------- ------- ------- -------
Increase from investment operations:
Net investment income $ 0.24 $ 0.18 $ 0.19 $ 0.34 $ 0.44
Net realized and unrealized gain (loss) on investments (0.14) 0.02 (0.12) 0.50 0.04
------- ------- ------- ------- -------
Net increase from investment operations $ 0.10 $ 0.20 $ 0.07 $ 0.84 $ 0.48
Distributions to shareowners:
Net investment income (0.35) (0.35) (0.38) (0.40) (0.42)
Net realized gain - - - - (0.04)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.25) $ (0.15) $ (0.31) $ 0.44 $ 0.02
------- ------- ------- ------- -------
Net asset value, end of period $ 9.49 $ 9.74 $ 9.89 $ 10.20 $ 9.76
======= ======= ======= ======= =======
Total return* 0.99% 2.02% 0.69% 8.82% 4.99%
Ratio of net expenses to average net assets+ 2.03% 1.98% 1.94% 1.80% 1.95%
Ratio of net investment income to average net assets+ 2.56% 2.22% 2.02% 3.26% 4.18%
Portfolio turnover rate 27% 27% 66% 76% 72%
Net assets, end of period (in thousands) $35,581 $39,641 $55,302 $67,013 $25,008
Ratios with no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 2.03% 1.98% 1.96% 1.88% 2.06%
Net investment income 2.56% 2.22% 2.00% 3.19% 4.07%
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 2.03% 1.98% 1.94% 1.79% 1.93%
Net investment income 2.56% 2.22% 2.02% 3.27% 4.20%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ 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%.
The accompanying notes are an integral part of these financial statements.
32
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS C 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01(a)
Net asset value, beginning of period $ 9.77 $ 9.92 $ 10.24 $ 9.79 $ 9.74
------- ------- ------- ------- -------
Increase from investment operations:
Net investment income $ 0.24 $ 0.19 $ 0.21 $ 0.36 $ 0.46
Net realized and unrealized gain (loss) on investments (0.14) 0.01 (0.13) 0.50 0.03
------- ------- ------- ------- -------
Net increase from investment operations $ 0.10 $ 0.20 $ 0.08 $ 0.86 $ 0.49
Distributions to shareowners:
Net investment income (0.36) (0.35) (0.40) (0.41) (0.43)
Net realized gain - - - - (0.01)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.26) $ (0.15) $ (0.32) $ 0.45 $ 0.05
------- ------- ------- ------- -------
Net asset value, end of period $ 9.51 $ 9.77 $ 9.92 $ 10.24 $ 9.79
======= ======= ======= ======= =======
Total return* 1.02% 2.09% 0.75% 8.93% 5.05%
Ratio of net expenses to average net assets+ 1.93% 1.89% 1.81% 1.77% 1.84%
Ratio of net investment income to average net assets+ 2.70% 2.31% 2.14% 3.16% 4.22%
Portfolio turnover rate 27% 27% 66% 76% 72%
Net assets, end of period (in thousands) $24,789 $27,832 $37,456 $38,258 $ 6,776
Ratios with no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 1.93% 1.89% 1.83% 1.84% 1.95%
Net investment income 2.70% 2.31% 2.12% 3.08% 4.11%
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 1.93% 1.89% 1.81% 1.76% 1.81%
Net investment income 2.70% 2.31% 2.14% 3.16% 4.25%
* 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.
+ 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%.
The accompanying notes are an integral part of these financial statements.
33
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
12/11/04 (a)
Year Ended to
INVESTOR CLASS 12/31/05 12/31/04
Net asset value, beginning of period $ 9.79 $ 9.82
------- -------
Increase from investment operations:
Net investment income $ 0.35 $ 0.02
Net realized and unrealized loss
on investments (0.13) (0.02)
------- -------
Net increase from investment operations $ 0.22 $ -
Distributions to shareowners:
Net investment income (0.47) (0.03)
------- -------
Net decrease in net asset value $ (0.25) $ (0.03)
------- -------
Net asset value, end of period $ 9.54 $ 9.79
======= =======
Total return* 2.27% (0.04)%
Ratio of net expenses to average net assets+ 0.74% 0.74%**
Ratio of net investment income to average
net assets+ 3.90% 3.70%**
Portfolio turnover rate 27% 27%
Net assets, end of period (in thousands) $38,369 $51,475
Ratios with no waiver of management fees by
PIM and no reductions for fees paid indirectly:
Net expenses 0.83% 0.96%**
Net investment income 3.81% 3.49%**
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 0.74% 0.74%**
Net investment income 3.90% 3.70%**
(a) Investor Class shares commenced operations on December 11, 2004.
* 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 the 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
- --------------------------------------------------------------------------------
4/1/03 (a)
Year Ended Year Ended to
CLASS R 12/31/05 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 $ 0.30 $ 0.37 $ 0.25
Net realized and unrealized loss
on investments (0.15) (0.12) (0.17)
------- ------- --------
Net increase from investment operations $ 0.15 $ 0.25 $ 0.08
Distributions to shareowners:
Net investment income (0.42) (0.43) (0.32)
------- ------- --------
Net decrease in net asset value $ (0.27) $ (0.18) $ (0.24)
------- ------- --------
Net asset value, end of period $ 9.62 $ 9.89 $ 10.07
======= ======= ========
Total return* 1.53% 2.58% 0.83%
Ratio of net expenses to average net assets+ 1.61% 1.20% 1.08%**
Ratio of net investment income (loss) to average
net assets+ 2.92% 3.01% (2.91)%**
Portfolio turnover rate 27% 28% 66%
Net assets, end of period (in thousands) $ 895 $ 830 $ 329
Ratios with no waiver of management fees by
PIM and no reductions for fees paid indirectly:
Net expenses 1.61% 1.20% 1.08%**
Net investment income (loss) 2.92% 3.01% (2.91)%**
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 1.61% 1.20% 1.08%**
Net investment income (loss) 2.92% 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 the end of each period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 35
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/05
- --------------------------------------------------------------------------------
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 has 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. Information
regarding the Trust's principal investment risks is contained in the Trust's
prospectus. Please refer to those documents when considering the Trust's risks.
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:
36
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, 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 December 31, 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.
37
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/05 (continued)
- --------------------------------------------------------------------------------
At December 31, 2005, the Trust had a net capital loss carryforward of
$12,125,464, 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,
$3,175,915 will expire in 2012, and $1,904,299 will expire in 2013, if not
utilized.
The Trust has elected to defer approximately $1,612,711 of capital losses
recognized between November 1, 2005 and December 31, 2005 to its fiscal
year ending December 31, 2006.
The tax character of distributions paid during the years ended December 31,
2005 and 2004 were as follows:
- --------------------------------------------------------------------------------
2005 2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $9,796,927 $8,808,385
---------- ----------
Total $9,796,927 $8,808,385
========== ==========
- --------------------------------------------------------------------------------
The following shows the components of the Trust's capital on a federal
income tax basis at December 31, 2005.
- --------------------------------------------------------------------------------
2005
- --------------------------------------------------------------------------------
Undistributed ordinary
income $ 57,355
Capital loss carryforward (12,125,464)
Post October losses deferred (1,612,711)
Unrealized depreciation (2,712,467)
------------
Total $(16,393,287)
============
- --------------------------------------------------------------------------------
The difference between book basis and tax-basis unrealized appreciation is
primarily attributable to the tax deferral of losses on wash sales and the
tax treatment of premium and amortization.
At December 31, 2005, the Trust reclassified $2,360,505 to decrease
distributions in excess of net investment income, and $2,360,505 to
increase accumulated net realized loss. This reclassification has no impact
on the net assets of the Trust and presents the Trust's capital accounts on
a tax basis.
38
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 $17,613 in underwriting commissions on the
sale of Class A shares for the year ended December 31, 2005.
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,
39
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/05 (continued)
- --------------------------------------------------------------------------------
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.
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 December 31, 2005, $6,141, 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 $74,834 in transfer agent
fees payable to PIMSS at December 31, 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
40
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 as compensation for
distribution services. Included in due to affiliates is $4,932 in distribution
fees payable to PFD at December 31, 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 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 year
ended December 31, 2005, CDSCs in the amount of $110,527 were paid to PFD.
5. Expense Offset Arrangements
The Trust has entered into certain expense offset arrangements with PIMSS,
resulting in a reduction in the Trust's total expenses due to interest earned on
cash held by PIMSS. For the year ended December 31, 2005, the Trust's expenses
were reduced by $7,996 under such arrangements.
41
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/05 (continued)
- --------------------------------------------------------------------------------
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"):
- -----------------------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of
Pioneer America Income Trust:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer America Income Trust (the "Trust") as of
December 31, 2005, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the four years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits. The financial highlights for the year ended December 31, 2001 were
audited by other auditors who have ceased operations and whose report, dated
February 15, 2002, expressed an unqualified opinion on those financial
highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Trust's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Trust's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of December 31, 2005, by correspondence with the custodian.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer America Income Trust at December 31, 2005, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and financial highlights for each of the four years in
the period then ended, in conformity with U.S. generally accepted accounting
principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
February 10, 2006
43
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 an index,
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 Fund's investment policies and restrictions and
with the Fund's Code
44
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, three, five and ten year 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 investment disciplines and
providing for a large variety of Fund and shareholder services.
45
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
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 fourth quintile of the peer
group for the 12 months ended June 30, 2005, the fourth quintile for the
three years ended June 30, 2005, the fourth quintile for the five years
ended June 30, 2005 and the fifth quintile for the ten year period ended
June 30, 2005. (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 (gross of expenses) on the Fund's Class A share
relative to the yield (as of June 30, 2005) on the Lehman 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 more narrow investment mandate than the
peer group, 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
46
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, 2005 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, 2005 was in the fifth
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
47
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
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.
48
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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.
49
Pioneer America Income Trust
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
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.
Trustees and Officers
The Trust's Board of Trustees provides broad supervision over the Trust's
affairs. The officers of the Trust are responsible for the Trust's operations.
The Trust's Trustees and officers are listed below, together with their
principal occupations during the past five years. Trustees who are interested
persons of the Trust within the meaning of the Investment Company Act of 1940
are referred to as Interested Trustees. Trustees who are not interested persons
of the Fund are referred to as Independent Trustees. Each of the Trustees may
serve as a trustee of each of the 91 U.S. registered investment portfolios for
which Pioneer Investment Management, Inc. ("Pioneer") serves as investment
adviser (the "Pioneer Funds"). The address for all Interested Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Trust's statement of additional information provides more detailed
information regarding the Trust's Trustees and is available upon request,
without charge, by calling 1-800-225-6292.
Proxy Voting Policies and Procedures of the Fund 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 and on the SEC's web site at
http://www.sec.gov.
50
Pioneer America Income Trust
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age With the Fund and Term of Office During Past Five Years Held by this Trustee
John F. Cogan, Jr. (79)* Chairman of the Trustee since 1988. Deputy Chairman and a Director of Chairman and
Board, Serves until Pioneer Global Asset Management S.p.A. Director of ICI
Trustee and President successor trustee is ("PGAM"); Non-Executive Chairman and a Mutual Insurance
elected or earlier Director of Pioneer Investment Company; Director of
retirement or Management USA Inc. ("PIM-USA"); Harbor Global
removal Chairman and a Director of Pioneer; Company, Ltd.
Director of Pioneer Alternative
Investment Management Limited
(Dublin); President and a Director of
Pioneer Alternative Investment
Management (Bermuda) Limited and
affiliated funds; President and
Director of Pioneer Funds Distributor,
Inc. ("PFD"); President of all of the
Pioneer Funds; and Of Counsel (since
2000, partner prior to 2000), Wilmer
Cutler Pickering Hale and Dorr LLP
(counsel to PIM-USA and the Pioneer
Funds).
*Mr. Cogan is an Interested Trustee because he is an officer or director of Pioneer and certain of its affiliates.
- ------------------------------------------------------------------------------------------------------------------------------------
Osbert M. Hood (53)** Trustee and Trustee since 2003. President and Chief Executive Officer, None
Executive Vice Serves until PIM-USA since May 2003 (Director since
President successor trustee is January 2001); President and Director
elected or earlier of Pioneer since May 2003; Chairman
retirement or and Director of Pioneer Investment
removal Management Shareholder Services, Inc.
("PIMSS") since May 2003; Executive
Vice President of all of the Pioneer
Funds since June 2003; Executive Vice
President and Chief Operating Officer
of PIM-USA, November 2000 to May 2003.
**Mr. Hood is an Interested Trustee because he is an officer or director of Pioneer and certain of its affiliates.
- ------------------------------------------------------------------------------------------------------------------------------------
51
Pioneer America Income Trust
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Positions Held Length of Service Principal Occupation Other Directorships
Address With the Fund and Term of Office During Past Five Years Held by this Trustee
David R. Bock **(62) Trustee Trustee since 2005. Senior Vice President and Chief Director of The
3050 K. Street NW, Serves until Financial Officer, I-trax, Inc. Enterprise Social
Washington, DC 20007 successor trustee is (publicly traded health care services Investment Company
elected or earlier company) (2001 - present); Managing (privately-held
retirement or Partner, Federal City Capital Advisors affordable housing
removal. (boutique merchant bank) (1995 - 2000; finance company);
2002 to 2004); Executive Vice Director of New York
President and Chief Financial Officer, Mortgage Trust
Pedestal Inc. (internet-based mortgage (publicly traded
trading company) (2000 - 2002) mortgage REIT)
**Mr. Bock became a Trustee of the Fund on January 1, 2005.
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (57) Trustee Trustee since 1997. President, Bush International Director of Brady
3509 Woodbine Street, Serves until (international financial advisory Corporation
Chevy Chase, MD 20815 successor trustee is firm) (industrial
elected or earlier identification and
retirement or specialty coated
removal. material products
manufacturer),
Millennium
Chemicals, Inc.
(commodity
chemicals), Mortgage
Guaranty Insurance
Corporation, and
R.J. Reynolds
Tobacco Holdings,
Inc. (tobacco)
- ------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Trustee Trustee since 1990. Founding Director, The Winthrop Group, None
Graham (58) Serves until Inc. (consulting firm); Professor of
1001 Sherbrooke Street West, successor trustee is Management, Faculty of Management,
Montreal, Quebec, Canada elected or earlier McGill University
H3A 1G5 retirement or
removal.
- ------------------------------------------------------------------------------------------------------------------------------------
52
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Name, Age and Positions Held Length of Service Principal Occupation Other Directorships
Address With the Fund and Term of Office During Past Five Years Held by this Trustee
Marguerite A. Piret (57) Trustee Trustee since 1988. President and Chief Executive Officer, Director of New
One Boston Place, 28th Floor, Serves until Newbury, Piret & Company, Inc. America High Income
Boston, MA 02108 successor trustee is (investment banking firm) Fund, Inc.
elected or earlier (closed-end
retirement or investment company)
removal
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (77) Trustee Trustee since 1993. Senior Counsel, Sullivan & Cromwell Director, The Swiss
125 Broad Street, Serves until (law firm) Helvetia Fund, Inc.
New York, NY 10004 successor trustee is (closed-end
elected or earlier investment company)
retirement or and AMVESCAP PLC
removal (investment
managers)
- ------------------------------------------------------------------------------------------------------------------------------------
John Winthrop (69) Trustee Trustee since 1988. President, John Winthrop & Co., Inc. None
One North Adgers Wharf, Serves until (private investment firm)
Charleston, SC 29401 successor trustee is
elected or earlier
retirement or
removal
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
FUND OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (57) Secretary Since September, Secretary of PIM-USA; Senior Vice None
2003. Serves President - Legal of Pioneer; and
at the discretion Secretary/Clerk of most of PIM-USA's
of the Board subsidiaries; Secretary of all of the
Pioneer Funds since September 2003
(Assistant Secretary from November
2000 to September 2003)
- ------------------------------------------------------------------------------------------------------------------------------------
53
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age With the Fund and Term of Office During Past Five Years Held by this Officer
Christopher J. Kelley (41) Assistant Secretary Since September, Assistant Vice President and Senior None
2003. Serves at Counsel of Pioneer since July 2002;
the discretion of Vice President and Senior Counsel of
the Board BISYS Fund Services, Inc. (April 2001
to June 2002); Senior Vice President
and Deputy General Counsel of Funds
Distributor, Inc. (July 2000 to April
2001; Assistant Secretary of all
Pioneer Funds since September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
David C. Phelan (48) Assistant Secretary Since September, Partner, Wilmer Cutler Pickering None
2003. Serves at Hale and Dorr LLP; Assistant
the discretion of Secretary of all Pioneer Funds since
the Board September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Vincent Nave (60) Treasurer Since November, Partner, Wilmer Cutler Pickering None
2000. Serves at Hale and Dorr LLP; Assistant
the discretion of Secretary of all Pioneer Funds since
the Board September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (46) Assistant Treasurer Since November, Vice President - Fund Accounting, None
2004. Serves Administration and Custody Services
at the discretion of Pioneer; and Treasurer of all of
of the Board the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (40) Assistant Treasurer Since November, Assistant Vice President - Fund None
2000. Serves Accounting, Administration and
at the discretion Custody Services of Pioneer; and
of the Board Assistant Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
54
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age With the Fund and Term of Office During Past Five Years Held by this Officer
Gary Sullivan (47) Assistant Treasurer Since May, 2002. Fund Accounting Manager - Fund None
Serves at the Accounting, Administration and
discretion of Custody Services of Pioneer; and
the Board Assistant Treasurer of all of the
Pioneer Funds since May 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (32) Assistant Treasurer Since September, Fund Administration Manager - Fund None
2003. Serves Accounting, Administration and
at the discretion of Custody Services since June 2003;
the Board Assistant Vice President - Mutual
Fund Operations of State Street
Corporation from June 2002 to June
2003 (formerly Deutsche Bank Asset
Management); Pioneer Fund
Accounting, Administration and
Custody Services (Fund Accounting
Manager from August 1999 to May
2002, Assistant Treasurer of all
Pioneer Funds since September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Martin J. Wolin (38) Chief Compliance Since October, 2004. Chief Compliance Officer of Pioneer None
Officer Serves at the (Director of Compliance and Senior
discretion of Counsel from November 2000 to
the Board September 2004); and Chief
Compliance Officer of all of the
Pioneer Funds since 2004.
- ------------------------------------------------------------------------------------------------------------------------------------
The outstanding capital stock of PFD, PIM and PIMSS is indirectly wholly owned
by UniCredito Italiano S.p.A. ("UniCredito Italiano"), one of the largest
banking groups in Italy. PIM, the Fund's investment adviser, provides investment
management and financial services to mutual funds, institutional and other
clients.
55
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
56
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
57
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
58
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
59
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
60
- --------------------------------------------------------------------------------
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
Before investing consider the Trust's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
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.
Audit Fees
Fees for audit services provided to the Trust, including
fees associated with the routine filing of its Form N-1A,
totaled $29,900 in 2005 and approximately $26,000 in
2004.
(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.
Audit-Related and Other Fees
There were no audit-related and other services provided to
the Trust during the fiscal years ended December 31, 2005
and 2004.
(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.
Tax Fees
Fees for tax compliance services, primarily for tax returns,
totaled $6,800 in 2005 and $6,000 in 2004.
(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.
Non-Audit Services
Beginning with non-audit service contracts entered into on
or after May 6, 2003, the effective date of the new SEC
pre-approval rules, the Fund's audit committee is required
to pre-approve services to affiliates defined by SEC rules
to the extent that the services are determined to have a
direct impact on the operations or financial reporting of the
Trust.
For the years ended December 31, 2005 and 2004, there
were no services provided to an affiliate that required the
Trust's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Trust and affiliates, as
previously defined, totaled $6,800 in 2005 and $6,000 in
2004. These fees include services provided prior to May 6,
2003, the effective date of the pre-approval process
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's independent auditor, Ernst &
Young LLP ("E&Y"), has advised the Audit
Committee of the Fund's Board of Trustees that
E&Ys Spanish affiliate (E&Y Spain) performed
certain non-audit work for Pioneer Global
Investments Limited ("PGIL"), an affiliate of the
Funds investment adviser. The services involved
the receipt and disbursement of monies transferred
to E&Y Spain by PGIL in payment of individual
payroll and related income tax withholdings due on
returns prepared by E&Y Spain for certain PGIL
employees located in Spain from February 2001 to
October 2005. E&Y became auditors of the Fund in
May 2002. These payroll and tax services were
discontinued in November 2005. The annual fee
received by E&Y Spain for all such services totaled
approximately 9,000 Euro per year. E&Y has informed
the Audit Committee that based on its internal
reviews and the de minimus nature of the services
provided and fees received, E&Y does not believe
its independence with respect to the Fund has been
impaired or that it is disqualified from acting as
independent auditors to the Fund.
The Trust's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not
pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01
of Regulation S-X is compatible with maintaining the
principal accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
The registrant has a separately-designated standing audit
committe eestablished in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive 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 12. 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 February 28, 2006
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 February 28, 2006
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date February 28, 2006
* Print the name and title of each signing officer under his or her signature.