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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05516
Pioneer American 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, 2006 through June 30, 2006
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
PIONEER
-----------------------
AMERICA
INCOME
TRUST
Semiannual
Report
6/30/06
[LOGO] PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 31
Notes to Financial Statements 40
Trustees, Officers and Service Providers 47
President's
Dear Shareowner,
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We know from the history of the capital markets that sudden shifts in investor
sentiment can occur with little warning, based on an assortment of events. We
believe such a shift in sentiment is occurring in reaction to the possibility
that U.S. economic growth may slow in the second half of 2006.
While U.S. markets fell in late May and early June, the economic events of the
six- and 12-month periods ending June 30, 2006, have actually been characterized
by continued low inflation at home and strong growth prospects abroad with
rising commodity and stock prices.
According to the International Monetary Fund, international economic growth in
2004-5 was the fastest of any two-year period in more than 30 years, and 2006
growth is projected to match the healthy growth of 2005. The growth has been
broad-based, with Europe, Japan, and emerging market economies all showing
strength. The result has been rising prices across a broad range of commodities,
increasing corporate profits, and higher interest rates.
The U.S. bond markets' concern has been that strong economic growth would spark
inflation - we have already seen commodity prices rise, and U.S. labor costs are
threatening to increase, since we are close to full employment. That may also be
a reason why public sentiment is becoming uneasy.
Despite strong first quarter economic growth, the U.S. economy for the second
half of the year may slow in reaction to past increases in interest rates and
energy costs. Thus far the only sign of such a slowdown has been a cooling
housing market. Yet many observers believe a slower growing economy could be
welcomed by the markets.
The U.S. Federal Reserve has continued its program of measured short-term
interest rate increases. However, the Fed Chairman, Ben Bernanke, indicated that
inflation may moderate, which would permit the Fed to stop raising interest
rates. Such action could have positive effects for both consumers and investors
over the intermediate to longer term. By restraining inflation, the Fed may also
limit upward
2
Letter
pressure on longer-maturity bond yields and downward pressure on stocks'
price/earnings ratios.
In summary, we think security market valuations remain reasonable, and yet there
are no guarantees in investing. The unpredictability reinforces the importance
of Pioneer's message that investors should remain diversified, take a long-term
view, and base investment decisions on economic and market fundamentals, rather
than on emotion. Our investment philosophy and approach continue to be based on
the use of fundamental research to identify a range of opportunities that offer
an attractive balance of risk and reward to help shareowners work toward their
long-term goals.
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 the 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.
3
Pioneer America Income Trust
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/06
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During a period of solid economic growth and steadily rising interest rates,
yields on U.S. Treasury securities rose, and shareholders in Pioneer America
Income Trust earned a relatively high level of income during the first half of
2006. In the interview below, Richard Schlanger, who is responsible for
day-to-day management of the Trust, discusses the factors that affected the
fixed-income market and the Trust over the semiannual period.
Q: How did the Trust perform during the period?
A: For the six months ended June 30, 2006, Class A shares of Pioneer America
Income Trust produced a total return of -1.68% at net asset value. The Trust
underperformed its benchmark indices, the Lehman Brothers Government Bond
Index, which returned -0.89%, and the Lehman Brothers Fixed-Rate
Mortgage-Backed Securities Index, which returned -0.06% for the same period.
The Trust also slightly lagged the average -1.61% return generated by the
General U.S. Government Funds category of Lipper Inc., an independent monitor
of mutual fund performance. During the six months, the Trust's yield rose
dramatically from 3.50% to 5.23%. At the end of the period, the 30-day SEC
yield for Class A shares was 3.80%. The Trust had 256 issues, and the average
credit quality of the portfolio was AAA, as measured by Standard & Poor's.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher
than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
Q: What was the investment environment like during the six months?
A: In a period of relatively strong economic growth and higher prices for
commodities, concerns about the prospect of accelerating inflation dominated
the fixed-income markets. At the Federal Reserve, the Alan Greenspan era came
to a close, and Ben Bernanke became chairman in early February. When Mr.
Bernanke took office, the Federal funds target rate was 4.50%. In the first
five months of his chairmanship, the Federal funds rate rose to 5.25%, with
the
4
Pioneer America Income Trust
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latest one-quarter percentage point increase occurring on June 29. (The
Federal funds rate is the rate banks charge for overnight loans. Since June
2004, the Federal Reserve has raised interest rates 17 times, taking the
Federal funds rate from a 40-year low of 1% to the current 5.25%.) In the
most recent six-month period, yields across the maturity spectrum moved
higher in a parallel fashion.
Q: How did you manage the Trust in this environment?
A: As higher interest rates boosted mortgage rates, we became concerned about
the duration, or sensitivity to interest-rate changes, of our mortgage
holdings because as interest rates go up, mortgage duration tends to lengthen
when refinancing and prepayment activity slows. To limit this drift in
duration, we trimmed our Ginnie Mae position from 59% of net assets to 55%.
(Ginnie Mae securities are issued by the Government National Mortgage
Association and are backed by the full faith and credit of the U.S.
Government.) Instead of allowing duration passively to drift upward, we chose
to focus on longer-term Treasury securities. This positioning is consistent
with our belief that with each additional interest-rate hike, we were
approaching the end of the Federal Reserve's tightening cycle. We thought
that if the Federal Reserve went too far in raising rates, economic growth
would slow, and the central bank would have to reverse course and begin
lowering rates. If this were to occur, we believe the Treasury market would
rally, and longer-term Treasuries would outperform their short-term
counterparts. As conditions warranted, we opportunistically added to or sold
holdings in 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. At the end of the six-month period, 55.3% of the
portfolio was in mortgage pass-through securities issued by Ginnie Mae, 43.6%
was in Treasury securities, including TIPS, and 1.1% was in cash.
5
Pioneer America Income Trust
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/06 (continued)
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Q: What contributed to performance?
A: The shorter-duration assets aided returns, as interest rates rose. Over the
period, short-term Treasuries produced a return of 0.80%. Returns on
longer-term Treasuries were negative. The positions in Ginnie Mae securities
and in TIPS also contributed to performance, as TIPS and mortgages
outperformed fixed-rate Treasuries.
Q: What detracted from performance?
A: Because the Federal Reserve was determined to fight inflation by raising
interest rates, long-duration assets vastly underperformed short-duration
assets. As a result, the Trust's longer-duration assets were the biggest
detractors from performance. For the six months, five-year and 10-year
Treasuries returned -1.35% and -3.90%, respectively. We view the
underperformance of longer-duration assets as a relatively short-term event,
because we believe that once the Federal Reserve stops raising interest
rates, securities with longer durations have the potential to outperform.
Q: What is your outlook?
A: We believe that rising interest rates and oil prices have begun to affect the
mortgage market and consumer spending. We have seen a shift away from
adjustable-rate mortgages to fixed-rate mortgages and a decline in refinance
activity as mortgage rates have risen. There has also been evidence of a
decline in disposable income, and some discount retailers have reported
slower sales. If these trends continue, economic growth is likely to slow,
and the Federal Reserve may take a breather from raising interest rates. We
believe the portfolio is positioned to take advantage of this type of
environment. Our investments are scattered across the yield curve. Should
rates stabilize or decline, we believe the portfolio's intermediate-term and
longer-term holdings could outperform.
When interest rates rise, the prices of fixed-income securities in the Trust
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Trust will generally rise. 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 Trust would experience a
6
Pioneer America Income Trust
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decline in income and lose the opportunity for additional price appreciation
associated with falling interest rates. The Trust 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 portfolio. At times, the
Trust'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.
7
Pioneer America Income Trust
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PORTFOLIO SUMMARY 6/30/06
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.]
U.S. Government Agency Obligations 98.9%
Temporary Cash Investments 1.1
Portfolio Maturity
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(Effective life as a percentage of total investment portfolio)
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.]
0-1 Year 1.9%
1-3 Years 6.6
3-4 Years 36.1
4-6 Years 32.9
6-8 Years 14.8
8+ Years 7.7
10 Largest Holdings
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(As a percentage of debt holdings)*
1. U.S. Treasury Inflation Protected Security, 3.0%, 7/15/12 7.53%
2. U.S. Treasury Bonds, 7.25%, 5/15/16 7.15
3. U.S. Treasury Notes, 6.5%, 2/15/10 4.75
4. U.S. Treasury Notes, 4.0%, 11/15/12 3.96
5. U.S. Treasury Notes, 6.375%, 8/15/27 3.77
6. U.S. Treasury Notes, 4.75%, 5/15/14 2.61
7. Government National Mortgage Association II, 5.5%, 11/20/34 2.38
8. U.S. Treasury Bonds, 4.0%, 2/15/14 2.29
9. U.S. Treasury Notes, 6.25%, 8/15/23 1.86
10. U.S. Treasury Bonds, 4.25%, 11/15/14 1.70
* This list excludes temporary cash investments and derivative instruments.
Portfolio holdings will vary for other periods.
8
Pioneer America Income Trust
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PRICES AND DISTRIBUTIONS
Net Asset Value Per Share
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Class 6/30/06 12/31/05
----- ------- --------
A $9.18 $9.54
B $9.13 $9.49
C $9.16 $9.51
Investor Class $9.18 $9.54
R $9.26 $9.62
Distributions Per Share
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1/1/06 - 6/30/06
------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- ------ ------------- -------------
A $0.2010 $ - $ -
B $0.1594 $ - $ -
C $0.1656 $ - $ -
Investor Class $0.2215 $ - $ -
R $0.1941 $ - $ -
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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 10-14.
9
Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/06 CLASS A SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust at public offering price,
compared to that of the Lehman Brothers Government Bond Index and Lehman
Brothers Fixed-Rate Mortgage-Backed Securities Index.
- ------------------------------------------
Average Annual Total Returns
(As of June 30, 2006)
Net Asset Public
Value Offering
Period (NAV) Price (POP)
10 Years 4.89% 4.40%
5 Years 3.48 2.53
1 Year -1.83 -6.25
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[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Lehman Brothers
Fixed-Rate
Pioneer America Mortgage-Backed Lehman Brothers
Income Trust Securities Index Government Bond Index
6/96 $ 9,545 $10,000 $10,000
10,227 10,910 10,740
6/98 11,164 11,884 11,948
11,345 12,360 12,312
6/00 11,872 12,982 12,929
12,968 14,447 14,265
6/02 13,968 15,744 15,521
14,985 16,645 17,281
6/04 14,929 17,016 17,047
15,673 18,060 18,180
6/06 15,386 18,131 17,968
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers 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.
10
Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/06 CLASS B SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust, compared to that of the Lehman
Brothers Government Bond Index and Lehman Brothers Fixed-Rate Mortgage-Backed
Securities Index.
- ----------------------------------------
Average Annual Total Returns
(As of June 30, 2006)
If If
Period Held Redeemed
10 Years 4.05% 4.05%
5 Years 2.62 2.62
1 Year -2.60 -6.36
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[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Lehman Brothers
Fixed-Rate
Pioneer America Mortgage-Backed Lehman Brothers
Income Trust Securities Index Government Bond Index
6/96 $10,000 $10,000 $10,000
10,629 10,910 10,740
6/98 11,513 11,884 11,948
11,624 12,360 12,312
6/00 12,060 12,982 12,929
13,071 14,447 14,265
6/02 13,956 15,744 15,521
14,847 16,645 17,281
6/04 14,668 17,016 17,047
15,272 18,060 18,180
6/06 14,875 18,131 17,968
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"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
pioneerinvestments.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.
11
Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/06 CLASS C SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust, compared to that of the Lehman
Brothers Government Bond Index and Lehman Brothers Fixed-Rate Mortgage-Backed
Securities Index.
Average Annual Total Returns
(As of June 30, 2006)
- ----------------------------------------
If If
Period Held Redeemed
10 Years 4.11% 4.11%
5 Years 2.75 2.75
1 Year -2.46 -2.46
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[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Lehman Brothers
Fixed-Rate
Pioneer America Mortgage-Backed Lehman Brothers
Income Trust Securities Index Government Bond Index
6/96 $10,000 $10,000 $10,000
10,623 10,910 10,740
6/98 11,507 11,884 11,948
11,629 12,360 12,312
6/00 12,087 12,982 12,929
13,059 14,447 14,265
6/02 13,981 15,744 15,521
14,871 16,645 17,281
6/04 14,712 17,016 17,047
15,331 18,060 18,180
6/06 14,954 18,131 17,968
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). 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.
12
Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/06 INVESTOR CLASS SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust, compared to that of the Lehman
Brothers Government Bond Index and Lehman Brothers Fixed-Rate Mortgage-Backed
Securities Index.
- ----------------------------------------
Average Annual Total Returns
(As of June 30, 2006)
If If
Period Held Redeemed
Life-of-Class
(12/10/04) 0.47% 0.47%
1 Year -1.30 -1.30
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[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Lehman Brothers
Fixed-Rate
Pioneer America Mortgage-Backed Lehman Brothers
Income Trust Securities Index Government Bond Index
12/04 $10,000 $10,000 $10,000
6/05 10,210 10,215 10,293
6/06 10,077 10,255 10,173
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
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.
13
Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/06 CLASS R SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust, compared to that of the Lehman
Brothers Government Bond Index and Lehman Brothers Fixed-Rate Mortgage-Backed
Securities Index.
- ----------------------------------------
Average Annual Total Returns
(As of June 30, 2006)
If If
Period Held Redeemed
10 Years 4.49% 4.49%
5 Years 3.20 3.20
1 Year -2.07 -2.07
- ----------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Lehman Brothers
Fixed-Rate
Pioneer America Mortgage-Backed Lehman Brothers
Income Trust Securities Index Government Bond Index
6/96 $10,000 $10,000 $10,000
10,660 10,910 10,740
6/98 11,579 11,884 11,948
11,708 12,360 12,312
6/00 12,192 12,982 12,929
13,250 14,447 14,265
6/02 14,202 15,744 15,521
15,171 16,645 17,281
6/04 15,111 17,016 17,047
15,840 18,060 18,180
6/06 15,511 18,131 17,968
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance of Class R shares for the period prior to the commencement of
operations of Class R shares on April 1, 2003 is based on the performance of
Class A shares, reduced to reflect the higher distribution and service fees of
Class R shares. For the period after April 1, 2003, the actual performance of
Class R shares is reflected, which performance may be influenced by the smaller
asset size of Class R shares compared to Class A shares. Class R shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Trust performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the redemption of Trust
shares.
14
Pioneer America Income Trust
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COMPARING ONGOING FUND EXPENSES
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As a shareowner in the Trust, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Trust expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Trust and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Trust's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [DIVIDED BY] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer America Income Trust
Based on actual returns from January 1, 2006 through June 30, 2006
Investor
Share Class A B C Class R
- --------------------------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 1/1/06
Ending Account Value $ 983.20 $ 978.70 $ 980.50 $ 985.40 $ 982.60
On 6/30/06
Expenses Paid During $ 5.75 $ 10.01 $ 9.23 $ 3.64 $ 6.83
Period*
* Expenses are equal to the Trust's annualized expense ratio of 1.17%, 2.04%,
1.88%, 1.39% 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 181/365 (to reflect the one-half year period).
15
Pioneer America Income Trust
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Trust's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Trust's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Trust and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer America Income Trust
Based on a hypothetical 5% per year return before expenses, reflecting the
period from January 1, 2006 through June 30, 2006
Investor
Share Class A B C Class R
- -----------------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 1/1/06
Ending Account Value $1,018.99 $1,019.68 $1,015.47 $1,021.12 $1,017.90
On 6/30/06
Expenses Paid During $ 5.86 $ 10.19 $ 9.39 $ 3.71 $ 6.95
Period*
* Expenses are equal to the Trust's annualized expense ratio of 1.17%, 2.04%,
1.88%, 1.39% 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 181/365 (to reflect the one-half year period).
16
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 98.4%
$ 460,926 Government National Mortgage Association,
4.5%, 4/15/18 $ 439,387
787,956 Government National Mortgage Association,
4.5%, 6/15/19 751,080
741,298 Government National Mortgage Association,
4.5%, 6/15/19 706,606
324,745 Government National Mortgage Association,
4.5%, 8/15/19 309,547
157,658 Government National Mortgage Association,
4.5%, 12/15/19 150,280
853,487 Government National Mortgage Association,
4.5%, 4/15/20 813,115
714,174 Government National Mortgage Association,
4.5%, 8/15/33 656,982
1,697,418 Government National Mortgage Association,
4.5%, 6/15/34 1,560,275
1,206,836 Government National Mortgage Association,
4.5%, 6/15/34 1,109,329
750,000 Government National Mortgage Association,
4.5%, 7/20/34 704,901
684,895 Government National Mortgage Association,
4.5%, 1/15/35 628,981
653,768 Government National Mortgage Association,
5.0%, 2/15/19 634,773
359,429 Government National Mortgage Association,
5.0%, 1/20/20 347,742
433,399 Government National Mortgage Association,
5.0%, 2/15/20 420,623
454,540 Government National Mortgage Association,
5.0%, 10/15/20 441,141
550,124 Government National Mortgage Association,
5.0%, 9/15/33 521,169
1,018,686 Government National Mortgage Association,
5.0%, 3/15/34 965,252
827,694 Government National Mortgage Association,
5.0%, 5/15/34 784,278
817,091 Government National Mortgage Association,
5.0%, 4/15/35 773,557
The accompanying notes are an integral part of these financial statements. 17
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 496,207 Government National Mortgage Association,
5.0%, 6/15/35 $ 469,770
211,622 Government National Mortgage Association,
5.5%, 6/15/18 209,216
1,112,409 Government National Mortgage Association,
5.5%, 2/15/19 1,099,786
327,983 Government National Mortgage Association,
5.5%, 4/15/19 324,176
728,937 Government National Mortgage Association,
5.5%, 7/15/19 720,474
1,153,516 Government National Mortgage Association,
5.5%, 7/15/19 1,140,124
542,927 Government National Mortgage Association,
5.5%, 10/15/19 536,623
783,288 Government National Mortgage Association,
5.5%, 1/15/29 761,555
308,166 Government National Mortgage Association,
5.5%, 4/15/31 299,253
470,888 Government National Mortgage Association,
5.5%, 5/15/33 456,996
938,388 Government National Mortgage Association,
5.5%, 5/15/33 910,703
1,389,803 Government National Mortgage Association,
5.5%, 7/15/33 1,348,801
872,431 Government National Mortgage Association,
5.5%, 8/15/33 846,693
234,053 Government National Mortgage Association,
5.5%, 9/15/33 227,289
1,799,930 Government National Mortgage Association,
5.5%, 9/15/33 1,746,829
627,414 Government National Mortgage Association,
5.5%, 10/15/33 608,904
1,182,937 Government National Mortgage Association,
5.5%, 4/15/34 1,147,599
359,376 Government National Mortgage Association,
5.5%, 10/15/34 348,640
863,654 Government National Mortgage Association,
5.5%, 10/15/34 837,854
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)
$ 2,147,062 Government National Mortgage Association,
5.5%, 11/15/34 $ 2,082,922
2,239,308 Government National Mortgage Association,
5.5%, 11/15/34 2,172,413
75,815 Government National Mortgage Association,
6.0%, 1/15/24 75,503
399,065 Government National Mortgage Association,
6.0%, 4/15/28 397,378
22,488 Government National Mortgage Association,
6.0%, 10/15/28 22,375
191,021 Government National Mortgage Association,
6.0%, 11/15/28 190,064
627,859 Government National Mortgage Association,
6.0%, 9/15/32 623,751
971,597 Government National Mortgage Association,
6.0%, 9/15/32 965,241
106,587 Government National Mortgage Association,
6.0%, 10/15/32 105,890
320,846 Government National Mortgage Association,
6.0%, 10/15/32 318,747
405,221 Government National Mortgage Association,
6.0%, 10/15/32 402,570
564,771 Government National Mortgage Association,
6.0%, 10/15/32 561,075
1,029,575 Government National Mortgage Association,
6.0%, 10/15/32 1,024,174
1,353,230 Government National Mortgage Association,
6.0%, 10/15/32 1,344,376
115,005 Government National Mortgage Association,
6.0%, 11/15/32 114,253
123,483 Government National Mortgage Association,
6.0%, 11/15/32 122,675
958,009 Government National Mortgage Association,
6.0%, 11/15/32 951,872
1,205,686 Government National Mortgage Association,
6.0%, 11/15/32 1,199,373
1,228,460 Government National Mortgage Association,
6.0%, 11/15/32 1,222,160
The accompanying notes are an integral part of these financial statements. 19
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 111,368 Government National Mortgage Association,
6.0%, 12/15/32 $ 110,639
156,167 Government National Mortgage Association,
6.0%, 12/15/32 155,145
354,230 Government National Mortgage Association,
6.0%, 12/15/32 352,042
378,769 Government National Mortgage Association,
6.0%, 12/15/32 376,663
681,442 Government National Mortgage Association,
6.0%, 12/15/32 678,069
885,229 Government National Mortgage Association,
6.0%, 12/15/32 880,594
990,692 Government National Mortgage Association,
6.0%, 12/15/32 985,453
1,014,686 Government National Mortgage Association,
6.0%, 12/15/32 1,009,330
315,017 Government National Mortgage Association,
6.0%, 1/15/33 312,913
443,290 Government National Mortgage Association,
6.0%, 1/15/33 440,396
1,264,220 Government National Mortgage Association,
6.0%, 1/15/33 1,257,547
1,299,568 Government National Mortgage Association,
6.0%, 1/15/33 1,292,720
719,861 Government National Mortgage Association,
6.0%, 1/20/33 713,252
101,157 Government National Mortgage Association,
6.0%, 2/15/33 100,481
378,356 Government National Mortgage Association,
6.0%, 2/15/33 375,828
517,883 Government National Mortgage Association,
6.0%, 2/15/33 514,423
699,483 Government National Mortgage Association,
6.0%, 2/15/33 694,810
782,745 Government National Mortgage Association,
6.0%, 2/15/33 777,516
162,213 Government National Mortgage Association,
6.0%, 3/15/33 161,129
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)
$ 276,121 Government National Mortgage Association,
6.0%, 3/15/33 $ 274,276
357,380 Government National Mortgage Association,
6.0%, 3/15/33 354,992
235,845 Government National Mortgage Association,
6.0%, 4/15/33 234,270
1,319,275 Government National Mortgage Association,
6.0%, 4/15/33 1,312,277
278,070 Government National Mortgage Association,
6.0%, 5/15/33 276,213
292,030 Government National Mortgage Association,
6.0%, 9/15/33 290,079
721,163 Government National Mortgage Association,
6.0%, 11/15/33 716,345
732,351 Government National Mortgage Association,
6.0%, 3/15/34 727,279
607,703 Government National Mortgage Association,
6.0%, 6/15/34 603,494
317,646 Government National Mortgage Association,
6.0%, 8/15/34 315,748
789,862 Government National Mortgage Association,
6.0%, 8/15/34 784,392
307,369 Government National Mortgage Association,
6.0%, 9/15/34 305,240
252,160 Government National Mortgage Association,
6.0%, 10/15/34 250,414
272,718 Government National Mortgage Association,
6.0%, 10/15/34 270,830
1,000,301 Government National Mortgage Association,
6.0%, 10/15/34 993,374
921,696 Government National Mortgage Association,
6.0%, 9/15/35 914,500
1,625,000 Government National Mortgage Association,
6.0%, 6/1/36 1,612,351
600,000 Government National Mortgage Association,
6.0%, 7/1/36 594,937
203,759 Government National Mortgage Association,
6.5%, 4/15/17 207,367
The accompanying notes are an integral part of these financial statements. 21
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 85,763 Government National Mortgage Association,
6.5%, 6/15/17 $ 87,282
201,004 Government National Mortgage Association,
6.5%, 2/15/28 204,111
395,244 Government National Mortgage Association,
6.5%, 3/15/28 401,294
101,653 Government National Mortgage Association,
6.5%, 4/15/28 103,225
164,567 Government National Mortgage Association,
6.5%, 4/15/28 167,102
65,956 Government National Mortgage Association,
6.5%, 6/15/28 66,971
97,470 Government National Mortgage Association,
6.5%, 8/15/28 98,977
200,601 Government National Mortgage Association,
6.5%, 10/15/28 203,702
138,147 Government National Mortgage Association,
6.5%, 3/15/29 140,255
309,632 Government National Mortgage Association,
6.5%, 3/15/29 314,356
58,216 Government National Mortgage Association,
6.5%, 5/15/29 59,104
37,112 Government National Mortgage Association,
6.5%, 6/15/29 37,678
13,758 Government National Mortgage Association,
6.5%, 6/15/31 13,949
20,344 Government National Mortgage Association,
6.5%, 6/15/31 20,626
53,899 Government National Mortgage Association,
6.5%, 6/15/31 54,646
113,843 Government National Mortgage Association,
6.5%, 6/15/31 115,421
299,701 Government National Mortgage Association,
6.5%, 7/15/31 303,855
54,858 Government National Mortgage Association,
6.5%, 8/15/31 55,618
130,488 Government National Mortgage Association,
6.5%, 9/15/31 132,296
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)
$ 207,148 Government National Mortgage Association,
6.5%, 9/15/31 $ 210,020
5,767 Government National Mortgage Association,
6.5%, 10/15/31 5,847
136,276 Government National Mortgage Association,
6.5%, 1/15/32 138,093
782,790 Government National Mortgage Association,
6.5%, 1/15/32 795,732
56,217 Government National Mortgage Association,
6.5%, 2/15/32 56,967
101,344 Government National Mortgage Association,
6.5%, 2/15/32 102,695
141,519 Government National Mortgage Association,
6.5%, 2/15/32 143,405
187,468 Government National Mortgage Association,
6.5%, 2/15/32 189,967
204,422 Government National Mortgage Association,
6.5%, 2/15/32 207,147
236,715 Government National Mortgage Association,
6.5%, 2/15/32 239,871
568,466 Government National Mortgage Association,
6.5%, 3/15/32 576,044
81,003 Government National Mortgage Association,
6.5%, 4/15/32 82,083
147,383 Government National Mortgage Association,
6.5%, 4/15/32 149,347
415,232 Government National Mortgage Association,
6.5%, 4/15/33 420,646
584,972 Government National Mortgage Association,
6.5%, 4/15/32 592,770
16,460 Government National Mortgage Association,
6.5%, 5/15/32 16,680
40,084 Government National Mortgage Association,
6.5%, 5/15/32 40,619
84,549 Government National Mortgage Association,
6.5%, 5/15/32 85,676
538,787 Government National Mortgage Association,
6.5%, 5/15/32 545,970
The accompanying notes are an integral part of these financial statements. 23
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 40,226 Government National Mortgage Association,
6.5%, 6/15/32 $ 40,762
67,748 Government National Mortgage Association,
6.5%, 6/15/32 68,652
143,411 Government National Mortgage Association,
6.5%, 6/15/32 145,504
108,353 Government National Mortgage Association,
6.5%, 7/15/32 109,797
264,950 Government National Mortgage Association,
6.5%, 7/15/32 268,482
278,999 Government National Mortgage Association,
6.5%, 8/15/32 282,719
298,411 Government National Mortgage Association,
6.5%, 8/15/32 302,957
226,945 Government National Mortgage Association,
6.5%, 9/15/32 229,970
112,559 Government National Mortgage Association,
7.0%, 10/15/16 116,005
422,671 Government National Mortgage Association,
7.0%, 9/15/24 435,930
238,019 Government National Mortgage Association,
7.0%, 7/15/25 245,505
71,792 Government National Mortgage Association,
7.0%, 11/15/26 74,118
95,175 Government National Mortgage Association,
7.0%, 2/15/28 98,193
75,422 Government National Mortgage Association,
7.0%, 3/15/28 77,814
174,523 Government National Mortgage Association,
7.0%, 4/15/28 180,057
155,282 Government National Mortgage Association,
7.0%, 7/15/28 160,369
160,371 Government National Mortgage Association,
7.0%, 5/15/29 165,496
49,638 Government National Mortgage Association,
7.0%, 6/15/29 51,225
76,576 Government National Mortgage Association,
7.0%, 7/15/29 79,024
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)
$ 59,007 Government National Mortgage Association,
7.0%, 9/15/29 $ 60,893
139,243 Government National Mortgage Association,
7.0%, 11/15/29 143,693
94,157 Government National Mortgage Association,
7.0%, 1/15/30 97,157
64,609 Government National Mortgage Association,
7.0%, 2/15/31 66,659
32,552 Government National Mortgage Association,
7.0%, 5/15/31 33,585
55,015 Government National Mortgage Association,
7.0%, 6/15/31 56,761
160,161 Government National Mortgage Association,
7.0%, 9/15/31 165,243
40,981 Government National Mortgage Association,
7.0%, 10/15/31 42,281
45,017 Government National Mortgage Association,
7.0%, 11/15/31 46,446
97,097 Government National Mortgage Association,
7.0%, 2/15/32 100,163
353,528 Government National Mortgage Association,
7.0%, 3/15/32 364,692
130,945 Government National Mortgage Association,
7.0%, 4/15/32 135,080
119,089 Government National Mortgage Association,
7.5%, 2/15/27 124,769
230,965 Government National Mortgage Association,
7.5%, 10/15/27 241,980
126,556 Government National Mortgage Association,
7.5%, 4/15/29 130,600
43,382 Government National Mortgage Association,
7.5%, 6/15/29 45,393
7,073 Government National Mortgage Association,
7.5%, 8/15/29 7,398
12,763 Government National Mortgage Association,
7.5%, 9/15/30 13,343
178,810 Government National Mortgage Association,
7.5%, 11/15/30 186,934
The accompanying notes are an integral part of these financial statements. 25
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 20,481 Government National Mortgage Association,
7.5%, 2/15/31 $ 21,406
74,231 Government National Mortgage Association,
7.5%, 12/15/31 77,583
15,687 Government National Mortgage Association,
7.5%, 1/15/32 16,394
67,422 Government National Mortgage Association,
7.5%, 1/15/32 70,464
117,161 Government National Mortgage Association,
7.5%, 3/15/32 122,447
78,316 Government National Mortgage Association,
8.0%, 12/1/29 83,235
280,328 Government National Mortgage Association,
8.25%, 5/15/20 298,539
41,158 Government National Mortgage Association,
8.5%, 7/15/24 44,446
211 Government National Mortgage Association,
9.0%, 9/15/16 226
4,806 Government National Mortgage Association,
9.0%, 10/15/16 5,144
4,129 Government National Mortgage Association,
9.0%, 4/15/20 4,446
58,356 Government National Mortgage Association,
10.0%, 1/15/19 63,609
34,176 Government National Mortgage Association,
10.0%, 3/15/20 37,286
228,129 Government National Mortgage Association I, 6.5%,
11/15/31 231,291
83,098 Government National Mortgage Association I, 6.5%,
12/15/31 84,250
39,114 Government National Mortgage Association I, 6.5%,
1/15/32 40,087
57,641 Government National Mortgage Association I, 6.5%,
1/15/32 58,409
179,172 Government National Mortgage Association I, 6.5%,
1/15/32 181,560
156,284 Government National Mortgage Association I, 6.5%,
5/15/32 158,368
26 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)
$ 198,907 Government National Mortgage Association I, 6.5%,
9/15/32 $ 201,558
180,962 Government National Mortgage Association I, 7.0%,
8/15/23 186,639
216,116 Government National Mortgage Association I, 7.0%,
9/15/29 226,028
73,104 Government National Mortgage Association I, 7.0%,
12/15/30 75,441
304,108 Government National Mortgage Association I, 7.0%,
12/15/30 313,831
178,705 Government National Mortgage Association I, 7.0%,
1/15/31 184,377
72,732 Government National Mortgage Association I, 7.0%,
4/15/31 75,041
13,064 Government National Mortgage Association I, 7.5%,
8/15/29 13,664
70,903 Government National Mortgage Association I, 7.5%,
3/15/31 74,105
665,825 Government National Mortgage Association II, 5.0%,
12/20/18 644,638
625,880 Government National Mortgage Association II, 5.0%,
2/20/19 605,719
1,840,234 Government National Mortgage Association II, 5.5%,
7/20/19 1,813,127
4,090,719 Government National Mortgage Association II, 5.5%,
11/20/34 3,951,908
230,335 Government National Mortgage Association II, 6.0%,
7/20/17 231,399
523,283 Government National Mortgage Association II, 6.0%,
12/20/18 525,791
291,103 Government National Mortgage Association II, 6.0%,
7/20/19 292,418
210,543 Government National Mortgage Association II, 6.0%,
10/20/31 208,651
1,245,799 Government National Mortgage Association II, 6.0%,
3/20/33 1,234,361
892,229 Government National Mortgage Association II, 6.0%,
10/20/33 887,091
The accompanying notes are an integral part of these financial statements. 27
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
$ 2,173,747 Government National Mortgage Association II, 6.0%,
11/20/33 $ 2,153,790
444,093 Government National Mortgage Association II, 6.0%,
2/20/34 446,099
581,526 Government National Mortgage Association II, 6.0%,
6/20/34 576,045
141,968 Government National Mortgage Association II, 6.5%,
1/20/24 143,500
349,007 Government National Mortgage Association II, 6.5%,
8/20/28 353,062
113,636 Government National Mortgage Association II, 6.5%,
4/20/31 114,785
77,823 Government National Mortgage Association II, 6.5%,
6/20/31 78,610
304,619 Government National Mortgage Association II, 6.5%,
10/20/32 307,537
443,064 Government National Mortgage Association II, 6.5%,
10/20/33 447,179
431,484 Government National Mortgage Association II, 6.5%,
3/20/34 435,390
17,459 Government National Mortgage Association II, 7.0%,
12/20/08 17,603
67,089 Government National Mortgage Association II, 7.0%,
5/20/26 68,819
88,510 Government National Mortgage Association II, 7.0%,
1/20/31 90,710
148,197 Government National Mortgage Association II, 7.0%,
7/20/31 151,882
59,681 Government National Mortgage Association II, 7.0%,
11/20/31 61,165
23,754 Government National Mortgage Association II, 7.5%,
6/20/30 24,670
38,418 Government National Mortgage Association II, 7.5%,
12/20/30 39,900
327 Government National Mortgage Association II, 8.0%,
5/20/25 345
52,358 Government National Mortgage Association II, 8.0%,
3/20/30 55,326
28 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)
$ 8,912 Government National Mortgage Association II, 9.0%,
9/20/21 $ 9,573
21,967 Government National Mortgage Association II, 9.0%,
3/20/22 23,624
4,140 Government National Mortgage Association II, 9.0%,
4/20/22 4,452
37,264 Government National Mortgage Association II, 9.0%,
11/20/24 40,157
4,100,000 U.S. Treasury Bonds, 4.0%, 2/15/14 3,808,834
2,800,000 U.S. Treasury Bonds, 6.25%, 8/15/23 3,088,095
250,000 U.S. Treasury Bonds, 6.5%, 11/15/26 286,797
10,270,000 U.S. Treasury Bonds, 7.25%, 5/15/16 11,891,541
12,156,015 U.S. Treasury Inflation Notes, 3.0%, 7/15/12 12,517,850
1,015 U.S. Treasury Inflation Protected Security,
2.375%, 4/15/11 1,011
1,134,480 U.S. Treasury Inflation Protected Security,
3.375%, 1/15/12 1,188,368
1,000,000 U.S. Treasury Notes, 3.5%, 12/15/09 949,492
7,000,000 U.S. Treasury Notes, 4.0%, 11/15/12 6,579,454
1,000,000 U.S. Treasury Notes, 4.0%, 2/15/15 921,484
3,000,000 U.S. Treasury Notes, 4.25%, 11/15/14 2,821,407
1,000,000 U.S. Treasury Notes, 4.5%, 2/15/09 984,180
1,500,000 U.S. Treasury Notes, 4.5%, 11/15/15 1,428,750
650,000 U.S. Treasury Notes, 4.75%, 11/15/08 644,186
4,450,000 U.S. Treasury Notes, 4.75%, 5/15/14 4,341,011
1,000,000 U.S. Treasury Notes, 4.875%, 5/31/11 989,844
1,000,000 U.S. Treasury Notes, 5.0%, 2/15/11 997,539
1,000,000 U.S. Treasury Notes, 5.375%, 2/15/31 1,017,266
2,000,000 U.S. Treasury Notes, 5.5%, 8/15/28 2,054,844
250,000 U.S. Treasury Notes, 6.125%, 8/15/29 277,969
5,525,000 U.S. Treasury Notes, 6.375%, 8/15/27 6,271,306
7,550,000 U.S. Treasury Notes, 6.5%, 2/15/10 7,888,278
1,000,000 U.S. Treasury Notes, 6.625%, 5/15/07 1,010,820
------------
$166,209,665
------------
TOTAL U.S. GOVERNMENT
AND AGENCY OBLIGATIONS
(Cost $172,764,165) $166,209,665
------------
The accompanying notes are an integral part of these financial statements. 29
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (unaudited) (continued)
Principal
Amount Value
TEMPORARY CASH INVESTMENTS - 1.1%
$ 1,800,000 Repurchase Agreement - 1.1%
UBS Warburg, Inc. 4.40%, dated 7/3/06, with
a repurchase price of $1,800,000 plus accrued interest
on 7/3/06 collateralized by $1,841,000 U.S. Treasury
Note, 6.125%, 11/15/06 $ 1,800,000
------------
TOTAL REPURCHASE AGREEMENT
(Cost $1,800,000) $ 1,800,000
------------
TOTAL TEMPORARY CASH INVESTMENTS $ 1,800,000
------------
TOTAL INVESTMENTS IN SECURITIES - 99.5%
(Cost: $174,564,164) (a) $168,009,665
------------
OTHER ASSETS AND LIABILITIES - 0.5% $ 899,911
------------
TOTAL NET ASSETS - 100.0% $168,909,576
============
* Non-income producing security.
(a) At June, 30, 2006 the net unrealized gain on investments based on cost
for federal income tax purposes of $175,965,808 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost. $ 493,321
Aggregate gross unrealized loss for all investments in which there is
an excess of value over tax cost. (8,449,964)
-----------
Net Unrealized loss $(7,956,143)
===========
Purchases and sales of securities (excluding temporary cash investments) for the
period ended June 30, 2006 aggregated $12,680,079 and $53,246,655, respectively.
30 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 6/30/06 (unaudited)
- -----------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (cost $174,564,164) $168,009,665
Receivables -
Investment securities sold 2,377,661
Fund shares sold 23,264
Interest 1,409,451
Due from Pioneer Investment Management, Inc. 1,234
Other 7,041
-------------
Total assets $171,828,316
-------------
LIABILITIES:
Payables -
Investment securities repurchased $ 2,206,142
Fund shares repurchased 290,288
Dividends 145,846
Due to bank 129,339
Due to affiliates 92,820
Accrued expenses 54,304
-------------
Total liabilities $ 2,918,739
-------------
NET ASSETS:
Paid-in capital $192,543,532
Distributions in excess of net investment income (2,018,363)
Accumulated net realized loss on investments (15,061,093)
Net unrealized loss on investments (6,554,499)
-------------
Total net assets $168,909,577
=============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $89,367,810/9,735,627 shares) $ 9.18
=============
Class B (based on $25,799,689/2,826,881 shares) $ 9.13
=============
Class C (based on $20,404,784/2,228,434 shares) $ 9.16
=============
Investor Class (based on $32,529,953/3,543,420 shares) $ 9.18
=============
Class R (based on $807,341/87,222 shares) $ 9.26
=============
MAXIMUM OFFERING PRICE:
Class A ($9.18 - 95.5%) $ 9.61
=============
The accompanying notes are an integral part of these financial statements. 31
Pioneer America Income Trust
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- -----------------------------------------------------------------------------
For the Six Months Ended 6/30/06
INVESTMENT INCOME:
Interest $4,378,880
----------
Total investment income $ 4,378,880
-----------
EXPENSES:
Management fees $ 466,965
Transfer agent fees and expenses
Class A 165,230
Class B 63,601
Class C 31,784
Investor Class 30,983
Class R 1,273
Distribution fees
Class A 125,823
Class B 143,159
Class C 109,373
Class R 2,168
Administrative reimbursements 18,911
Custodian fees 8,871
Professional fees 26,603
Printing expense 18,549
Fees and expenses of nonaffiliated trustees 4,346
Miscellaneous 9,460
----------
Total expenses $ 1,227,099
Less management fees waived and
expenses reimbursed by Pioneer Investment
Management, Inc. (5,010)
-----------
Net expenses $ 1,222,089
-----------
Net investment income $ 3,156,791
-----------
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized loss on investments $(1,254,488)
-----------
Change in net unrealized loss on investments $(5,243,676)
-----------
Net loss on investments $(6,498,164)
-----------
Net decrease in net assets resulting from operations $(3,341,373)
===========
32 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- -----------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------
For the Six Months Ended 6/30/06 and the Year Ended 12/31/05, respectively
Six Months
Ended Year
6/30/06 Ended
(unaudited) 12/31/05
FROM OPERATIONS:
Net investment income $ 3,156,791 $ 7,464,676
Net realized loss on investments (1,254,488) (873,555)
Change in net unrealized loss on investments (5,243,676) (3,012,450)
------------- -------------
Net increase (decrease) in net assets resulting from
operations $ (3,341,373) $ 3,578,671
------------- -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.20 and $0.43 per share, respectively) $ (2,160,182) $ (5,294,373)
Class B ($0.16 and $0.35 per share, respectively) (491,794) (1,358,450)
Class C ($0.17 and $0.36 per share, respectively) (390,279) (1,015,869)
Investor Class ($0.22 and $0.47 per share,
respectively) (839,127) (2,091,640)
Class R ($0.19 and $0.42 per share, respectively) (17,913) (36,595)
------------- -------------
Total distributions to shareowners $ (3,899,295) $ (9,796,927)
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 12,931,756 $ 64,972,188
Reinvestment of distributions 3,063,966 7,866,321
Cost of shares repurchased (55,912,911) (93,855,460)
------------- -------------
Net decrease in net assets resulting from
Fund share transactions $ (39,917,189) $ (21,016,951)
------------- -------------
Net decrease in net assets $ (47,157,857) $ (27,235,207)
NET ASSETS:
Beginning of period 216,067,434 243,302,641
------------- -------------
End of period (including distributions in excess of
net investment income of $(2,018,363) and
$(1,275,859) respectively) $ 168,909,577 $ 216,067,434
============= =============
The accompanying notes are an integral part of these financial statements. 33
Pioneer America Income Trust
- -----------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- -----------------------------------------------------------------------------
'06 Shares '06 Amounts
(unaudited) (unaudited) '05 Shares '05 Amounts
CLASS A
Shares sold 830,222 $ 7,746,155 3,916,547 $ 37,903,879
Reinvestment of distributions 193,770 1,806,915 467,846 4,518,726
Less shares repurchased (3,490,342) (32,735,320) (4,796,419) (46,280,804)
---------- ------------- ---------- -------------
Net decrease (2,466,350) $ (23,182,250) (412,026) $ (3,858,199)
========== ============= ========== =============
CLASS B
Shares sold 273,722 $ 2,533,599 1,574,294 $ 15,142,679
Reinvestment of distributions 39,223 363,541 104,681 1,005,146
Less shares repurchased (1,237,211) (11,578,052) (1,999,241) (19,127,579)
---------- ------------- ---------- -------------
Net decrease (924,266) $ (8,680,912) (320,266) $ (2,979,754)
========== ============= ========== =============
CLASS C
Shares sold 272,463 $ 2,540,094 1,207,346 $ 11,667,546
Reinvestment of distributions 22,123 205,635 62,611 603,436
Less shares repurchased (671,383) (6,290,383) (1,513,783) (14,545,916)
---------- ------------- ---------- -------------
Net decrease (376,797) $ (3,544,654) (243,826) $ (2,274,934)
========== ============= ========== =============
INVESTOR CLASS
Shares sold - $ - 2,184 $ 21,269
Reinvestment of distributions 72,401 675,190 177,302 1,713,471
Less shares repurchased (549,746) (5,130,871) (1,415,838) (13,728,062)
---------- ------------- ---------- -------------
Net decrease (477,345) $ (4,455,681) (1,236,352) $ (11,993,322)
========== ============= ========== =============
CLASS R
Shares sold 11,874 $ 111,908 24,301 $ 236,815
Reinvestment of distributions 1,350 12,685 2,619 25,542
Less shares repurchased (19,026) (178,285) (17,753) (173,099)
---------- ------------- ---------- -------------
Net increase (decrease) (5,802) $ (53,692) 9,167 $ 89,258
========== ============= ========== =============
34 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/06 Ended Ended Ended Ended Ended
(unaudited) 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 (a)
CLASS A
Net asset value, beginning of period $ 9.54 $ 9.79 $ 9.95 $ 10.27 $ 9.79 $ 9.76
------- -------- -------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.15 $ 0.32 $ 0.28 $ 0.28 $ 0.40 $ 0.52
Net realized and unrealized gain (loss)
on investments (0.31) (0.14) (0.01) (0.13) 0.54 0.05
------- -------- -------- -------- -------- --------
Net increase (decrease) from investment operations $ (0.16) $ 0.18 $ 0.27 $ 0.15 $ 0.94 $ 0.57
Distributions to shareowners:
Net investment income (0.20) (0.43) (0.43) (0.47) (0.46) (0.51)
Net realized gain - - - - - (0.03)
------- -------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ (0.36) $ (0.25) $ (0.16) $ (0.32) $ 0.48 $ 0.03
------- -------- -------- -------- -------- --------
Net asset value, end of period $ 9.18 $ 9.54 $ 9.79 $ 9.95 $ 10.27 $ 9.79
======= ======== ======== ======== ======== ========
Total return* (1.68)% 1.84% 2.77% 1.47% 9.78% 5.92%
Ratio of net expenses to average net assets+ 1.17%** 1.20% 1.16% 1.10% 1.00% 1.01%
Ratio of net investment income to average net assets+ 3.52%** 3.36% 3.04% 2.85% 4.17% 5.14%
Portfolio turnover rate 14%** 27% 27% 66% 76% 72%
Net assets, end of period (in thousands) $89,368 $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 1.17%** 1.20% 1.16% 1.12% 1.08% 1.12%
Net investment income 3.52%** 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 1.17%** 1.20% 1.16% 1.10% 1.00% 1.00%
Net investment income 3.52%** 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.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
(a) On January 1, 2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this charges for the year ended
December 31, 2001, was to decrease net investment income by $0.02 per
share, increase net realized and unrealized gain (loss) by $0.02 per share
and decrease the ratio of net investment income to average net assets
assuming waiver of management fees by PIM and reduction for fees paid
indirectly from 5.35% to 5.15%. Per share ratios and supplemental data for
periods prior to January 1, 2001, have not been restated to reflect this
change in presentation.
The accompanying notes are an integral part of these financial statements.
35
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/06 Ended Ended Ended Ended Ended
(unaudited) 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 (a)
CLASS B
Net asset value, beginning of period $ 9.49 $ 9.74 $ 9.89 $ 10.20 $ 9.76 $ 9.74
------- ------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.10 $ 0.24 $ 0.18 $ 0.19 $ 0.34 $ 0.44
Net realized and unrealized gain (loss) on investments (0.30) (0.14) 0.02 (0.12) 0.50 0.04
------- ------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ (0.20) $ 0.10 $ 0.20 $ 0.07 $ 0.84 $ 0.48
Distributions to shareowners:
Net investment income (0.16) (0.35) (0.35) (0.38) (0.40) (0.42)
Net realized gain - - - - - (0.04)
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.36) $ (0.25) $ (0.15) $ (0.31) $ 0.44 $ 0.02
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 9.13 $ 9.49 $ 9.74 $ 9.89 $ 10.20 $ 9.76
======= ======== ======== ======== ======== ========
Total return* (2.13)% 0.99% 2.02% 0.69% 8.82% 4.99%
Ratio of net expenses to average net assets+ 2.04%** 2.03% 1.98% 1.94% 1.80% 1.95%
Ratio of net investment income to average net assets+ 2.64%** 2.56% 2.22% 2.02% 3.26% 4.18%
Portfolio turnover rate 14%** 27% 27% 66% 76% 72%
Net assets, end of period (in thousands) $25,800 $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 2.04%** 2.03% 1.98% 1.96% 1.88% 2.06%
Net investment income 2.64%** 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 2.04%** 2.03% 1.98% 1.94% 1.79% 1.93%
Net investment income 2.64%** 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.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
(a) On January 1, 2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this charges for the year ended
December 31, 2001, was to decrease net investment income by $0.02 per
share, increase net realized and unrealized gain (loss) by $0.02 per share
and decrease the ratio of net investment income to average net assets
assuming waiver of management fees by PIM and reduction for fees paid
indirectly from 4.36% to 4.20%. Per share ratios and supplemental data for
periods prior to January 1, 2001, have not been restated to reflect this
change in presentation.
The accompanying notes are an integral part of these financial statements.
36
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/06 Ended Ended Ended Ended Ended
(unaudited) 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 (a)
CLASS C
Net asset value, beginning of period $ 9.51 $ 9.77 $ 9.92 $ 10.24 $ 9.79 $ 9.74
------- ------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.12 $ 0.24 $ 0.19 $ 0.21 $ 0.36 $ 0.46
Net realized and unrealized gain (loss) on investments (0.30) (0.14) 0.01 (0.13) 0.50 0.03
------- ------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ (0.18) $ 0.10 $ 0.20 $ 0.08 $ 0.86 $ 0.49
Distributions to shareowners:
Net investment income (0.17) (0.36) (0.35) (0.40) (0.41) (0.43)
Net realized gain - - - - - (0.01)
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.35) $ (0.26) $ (0.15) $ (0.32) $ 0.45 $ 0.05
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 9.16 $ 9.51 $ 9.77 $ 9.92 $ 10.24 $ 9.79
======= ======= ======= ======= ======= =======
Total return* (1.95)% 1.02% 2.09% 0.75% 8.93% 5.05%
Ratio of net expenses to average net assets+ 1.88%** 1.93% 1.89% 1.81% 1.77% 1.84%
Ratio of net investment income to average net assets+ 2.79%** 2.70% 2.31% 2.14% 3.16% 4.22%
Portfolio turnover rate 14%** 27% 27% 66% 76% 72%
Net assets, end of period (in thousands) $20,405 $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 1.88%** 1.93% 1.89% 1.83% 1.84% 1.95%
Net investment income 2.79%** 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 1.88%** 1.93% 1.89% 1.81% 1.76% 1.81%
Net investment income 2.79%** 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.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
(a) On January 1, 2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this changes for the year ended
December 31, 2001, was to decrease net investment income by $0.01 per
share, increase net realized and unrealized gain (loss) by $0.01 per share
and decrease the ratio of net investment income to average net assets
assuming waiver of management fees by PIM and reduction for fees paid
indirectly from 4.42% to 4.25%. Per share ratios and supplemental data for
periods prior to January 1, 2001, have not been restated to reflect this
change in presentation.
The accompanying notes are an integral part of these financial statements.
37
Pioneer America Income Trust
- --------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------
Six Months
Ended Year 12/11/04 (a)
6/30/06 Ended to
(unaudited) 12/31/05 12/31/04
Investor Class
Net asset value, beginning of period $ 9.54 $ 9.79 $ 9.82
------- ------- -------
Increase (decrease) from investment
operations:
Net investment income $ 0.17 $ 0.35 $ 0.02
Net realized and unrealized loss
on investments (0.31) (0.13) (0.02)
------- ------- -------
Net increase (decrease) from
investment operations $ (0.14) $ 0.22 $ -
Distributions to shareowners:
Net investment income (0.22) (0.47) (0.03)
------- ------- -------
Net decrease in net asset value $ (0.36) $ (0.25) $ (0.03)
------- ------- -------
Net asset value, end of period $ 9.18 $ 9.54 $ 9.79
======= ======= =======
Total return* (1.46)% 2.27% (0.04)%
Ratio of net expenses to average net assets+ 0.74%** 0.74% 0.74%**
Ratio of net investment income to average
net assets+ 3.94%** 3.90% 3.70%**
Portfolio turnover rate 14%** 27% 27%
Net assets, end of period (in thousands) $32,530 $38,369 $51,475
Ratios with no waiver of management fees
by PIM and no reductions for fees
paid indirectly:
Net expenses 0.77%** 0.83% 0.96%**
Net investment income 3.91%** 3.81% 3.49%**
Ratios with waiver of management fees by
PIM and reductions for fees paid indirectly:
Net expenses 0.74%** 0.74% 0.74%**
Net investment income 3.94%** 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 each end of each period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
38 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year Year 4/1/03 (a)
6/30/06 Ended Ended to
(unaudited) 12/31/05 12/31/04 12/31/03
CLASS R
Net asset value, beginning of period $ 9.62 $ 9.89 $ 10.07 $ 10.31
------- ------- ------- ---------
Increase (decrease) from investment operations:
Net investment income $ 0.15 $ 0.30 $ 0.37 $ 0.25
Net realized and unrealized loss on investments (0.32) (0.15) (0.12) (0.17)
------- ------- ------- ---------
Net increase (decrease) from investment operations $ (0.17) $ 0.15 $ 0.25 $ 0.08
Distributions to shareowners:
Net investment income (0.19) (0.42) (0.43) (0.32)
------- ------- ------- ---------
Net decrease in net asset value $ (0.36) $ (0.27) $ (0.18) $ (0.24)
------- ------- ------- ---------
Net asset value, end of period $ 9.26 $ 9.62 $ 9.89 $ 10.07
======= ======= ======= =========
Total return* (1.74)% 1.53% 2.58% 0.83%
Ratio of net expenses to average net assets+ 1.39%** 1.61% 1.20% 1.08%**
Ratio of net investment income (loss) to average net assets+ 3.30%** 2.92% 3.01% (2.91)%**
Portfolio turnover rate 14%** 27% 28% 66%
Net assets, end of period (in thousands) $ 807 $ 895 $ 830 $ 329
Ratios with no waiver of management fees by PIM and no reductions for fees
paid indirectly:
Net expenses 1.39%** 1.61% 1.20% 1.08%**
Net investment income (loss) 3.30%** 2.92% 3.01% (2.91)%**
Ratios with waiver of management fees by PIM and reductions for
fees paid indirectly:
Net expenses 1.39%** 1.61% 1.20% 1.08%**
Net investment income (loss) 3.30%** 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 each end of each period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
39
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/06 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer America Income Trust (the Trust) is a Massachusetts statutory trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Trust is to
provide a high level of current income consistent with preservation of capital
and prudent investment risk.
The Trustees have authorized the issuance of five classes of shares of the Fund.
The Fund offers five classes of shares designated as - Class A, Class B, Class
C, Investor Class and Class R shares. Class R shares were first publicly offered
on April 1, 2003. Investor Class shares were first issued on December 10, 2004.
The Fund is not offering additional Investor Class shares except in connection
with the reinvestment of dividends on the Fund's outstanding Investor Class
Shares. Each class of shares represents an interest in the same portfolio of
investments of the Trust and 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:
40
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 June
30, 2006, 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.
Information regarding the Fund's principal investment risks is contained in
the Fund's prospectus'(es). Please refer to those documents when considering
the Fund's risks.
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 state-
41
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
ments as either from net investment income or net realized gain on investment
transactions, or from paid-in-capital, depending on the type of book/tax
differences that may exist.
At December 31, 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 current year distributions paid will be determined at
the end of the current fiscal year. The tax character of distributions paid
during the year ended December 31, 2005 was as follows:
- --------------------------------------------------------------------------------
2005
----------
Distributions paid from:
Ordinary income $9,796,927
----------
Total $9,796,927
==========
- --------------------------------------------------------------------------------
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
42
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
$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.
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 $ 6,504 in underwriting commissions on the sale
of Class A shares for the six months ended June 30, 2006.
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
43
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
equal to or in excess of the value of the repurchase agreement at the time of
purchase. The collateral for all repurchase agreements is held in safekeeping
in the customer-only account of the Trust's custodian, or sub custodians. The
Trust's investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at least
equal to the repurchase price.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, manages the
Trust's portfolio. Management fees are calculated daily at the annual rate of
0.50% of the Trust's average daily net assets.
Through December 10, 2006, PIM has agreed not to impose all or a portion of its
management fee and to assume other operating expenses (excluding taxes,
commissions, interest and extraordinary expenses) of the Fund to the extent
necessary to limit Investor Class expenses to 0.74% of the average daily net
assets attributable to Investor Class shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Trust. At June 30, 2006, $4,330, 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 $86,611 in transfer agent
fees payable to PIMSS June 30, 2006.
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.
44
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Pursuant to the Class B Plan and the Class C Plan, the Trust pays PFD 1.00% of
the average daily net assets attributable to each class of shares. The fee
consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class B and Class C shares. Pursuant to the
Class R Plan, the Trust pays PFD 0.50% of the average daily net assets
attributable to Class R shares as compensation for distribution services.
Included in due to affiliates is $1,879 in distribution fees payable to PFD at
June 30, 2006. 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 (Class A, Class B, and Class C Shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase. 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%. Proceeds from the CDSCs are paid to PFD. For the six months ended June
30, 2006, CDSCs in the amount of $73,852 were paid to PFD.
5. Expense Offset Arrangements
The Trust has entered into certain expense offset arrangements with PIMSS,
resulting in a reduction in the Trust's total expenses due to interest earned on
cash held by PIMSS. For the six months ended June 30, 2006, the Trust's expenses
were reduced by $5,010 under such arrangements.
45
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/06 (unaudited) (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)
- -------------------------------------------------------------------------------------------------
46
Pioneer America Income Trust
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees
John F. Cogan, Jr., Chairman
David R. Bock
Mary K. Bush
Margaret B.W. Graham
Osbert M. Hood
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
John Winthrop
Officers
John F. Cogan, Jr., President
Osbert M. Hood, Executive
Vice President
Vincent Nave, Treasurer
Dorothy E. Bourassa, Secretary
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll-free number (1-800-225-6292). Information
regarding how the Trust voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at http://www.sec.gov.
47
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50
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51
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HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.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.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
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.
N/A
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.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule 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 American Income trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date August 31, 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 August 31, 2006
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date August 31, 2006
* Print the name and title of each signing officer under his or her signature.