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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-02864
Pioneer Bond Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
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: June 30
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
-----------------------
BOND
FUND
Annual
Report
6/30/06
[LOGO] PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Portfolio Summary 4
Prices and Distributions 5
Performance Update 6
Comparing Ongoing Fund Expenses 12
Portfolio Management Discussion 14
Schedule of Investments 18
Financial Statements 41
Notes to Financial Statements 51
Report of Independent Registered Public Accounting Firm 60
Trustees, Officers and Service Providers 61
President's
Dear Shareowner,
- --------------------------------------------------------------------------------
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 Fund's historical or future performance are
statements of the opinion of Fund 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 Bond Fund
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PORTFOLIO SUMMARY 6/30/06
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.]
U.S. Government Securities 71.4%
U.S. Corporate Bonds 25.7
Asset Backed Securities 1.5
Collateralized Mortgage Obligations 1.3
Municipal Bonds 0.1
Portfolio Quality
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(As a percentage of holdings)
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.]
AAA 74.3%
AA 4.8
A 9.5
BBB 6.2
BB 3.9
B 1.2
Commercial Paper 0.1
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of long-term holdings)
1. U.S. Treasury Bonds, 6.25%, 8/15/23 5.93%
2. U.S. Treasury Bonds, 4.25%, 11/15/13 5.01
3. U.S. Treasury Inflation Notes, 1.875%, 7/15/15 3.20
4. U.S. Treasury Notes, 3.625%, 6/15/10 3.02
5. Government National Mortgage Association, 5.5%, 1/15/36 1.95
6. U.S. Treasury Notes, 7.5%, 11/15/16 1.86
7. Federal Home Loan Mortgage Corp., 4.5%, 10/1/20 1.63
8. GE Electric Co., 5.0%, 2/1/13 1.41
9. Federal National Mortgage Association, 5.5%, 4/1/36 1.39
10. Federal Home Loan Mortgage Corp., 4.5%, 10/1/35 1.20
This list excludes temporary cash investments and derivative instruments.
Portfolio holdings will vary for other periods.
4
Pioneer Bond Fund
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PRICES AND DISTRIBUTIONS
- -----------------------------------------------------------------------------
Net Asset Value Per Share
- -----------------------------------------------------------------------------
Class 6/30/06 6/30/05
----- ------- -------
A $8.89 $9.40
B $8.85 $9.36
C $8.81 $9.32
Investor $8.89 $9.40
R $8.99 $9.50
Y $8.83 $9.33
Distributions Per Share
- -----------------------------------------------------------------------------
7/1/05 - 6/30/06
-----------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- ------ ------------- -------------
A $0.3948 $ - $ -
B $0.3123 $ - $ -
C $0.3191 $ - $ -
Investor $0.4194 $ - $ -
R $0.3764 $ - $ -
Y $0.4289 $ - $ -
5
Pioneer Bond Fund
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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 Bond Fund at public offering price, compared to that
of the Lehman Brothers Aggregate Bond Index.
- ----------------------------------------
Average Annual Total Returns
(As of June 30, 2006)
Public
Net Asset Offering
Period Value (NAV) Price (POP)
10 Years 5.79% 5.31%
5 Years 5.57 4.61
1 Year -1.25 -5.66
- ----------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Pioneer Lehman Brothers
Bond Fund Aggregate Bond Index
6/96 $ 9,550 $10,000
10,225 10,815
6/98 11,251 11,955
11,403 12,331
6/00 11,551 12,894
12,787 14,342
6/02 13,752 15,579
15,317 17,200
6/04 15,774 17,255
16,981 18,428
6/06 16,769 18,280
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 4.5% 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 Fund 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 Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a measure of the U.S. bond market.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Fund returns, do not reflect any fees, expenses or sales charges. You
cannot invest directly in an Index.
6
Pioneer Bond Fund
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PERFORMANCE UPDATE 6/30/06 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
- ----------------------------------------
Average Annual Total Returns
(As of June 30, 2006)
If If
Period Held Redeemed
10 Years 4.92% 4.92%
5 Years 4.68 4.68
1 Year -2.14 -5.92
- ----------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Pioneer Lehman Brothers
Bond Fund Aggregate Bond Index
6/96 $10,000 $10,000
10,624 10,815
6/98 11,603 11,955
11,670 12,331
6/00 11,726 12,894
12,865 14,342
6/02 13,736 15,579
15,171 17,200
6/04 15,480 17,255
16,520 18,428
6/06 16,166 18,280
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
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.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 Fund 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 Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a measure of the U.S. bond market.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Fund returns, do not reflect any fees, expenses or sales charges. You
cannot invest directly in an Index.
7
Pioneer Bond Fund
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PERFORMANCE UPDATE 6/30/06 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
- ----------------------------------------
Average Annual Total Returns
(As of June 30, 2006)
If If
Period Held Redeemed
10 Years 4.84% 4.84%
5 Years 4.62 4.62
1 Year -2.08 -2.08
- ----------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Pioneer Lehman Brothers
Bond Fund Aggregate Bond Index
6/96 $10,000 $10,000
10,613 10,815
6/98 11,581 11,955
11,650 12,331
6/00 11,692 12,894
12,798 14,342
6/02 13,635 15,579
15,037 17,200
6/04 15,355 17,255
16,380 18,428
6/06 16,039 18,280
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 Fund 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 Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a measure of the U.S. bond market.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Fund returns, do not reflect any fees, expenses or sales charges. You
cannot invest directly in an Index.
8
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/06 INVESTOR CLASS SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
- ----------------------------------------------------
Average Annual Total Returns
(As of June 30, 2006)
Public
Net Asset Offering
Period Value (NAV) Price (POP)
Life-of-Class
12/10/04 1.17% 1.17%
1 Year -0.98 -0.98
- ----------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Pioneer Lehman Brothers
Bond Fund Aggregate Bond Index
12/94 $10,000 $ 10,000
10,264 10,251
6/06 10,163 10,169
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 Fund 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 Fund distributions or the redemption of Fund shares.
The Lehman Brothers Aggregate Bond Index is a measure of the U.S. bond market.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Fund returns, do not reflect any fees, expenses or sales charges. You
cannot invest directly in an Index.
9
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/06 CLASS R SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
- -----------------------------------------
Average Annual Total Returns
(As of June 30, 2006)
If If
Period Held Redeemed
10 Years 5.41% 5.41%
5 Years 5.32 5.32
1 Year -1.43 -1.43
- -----------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Pioneer Lehman Brothers
Bond Fund Aggregate Bond Index
6/96 $10,000 $10,000
10,656 10,815
6/98 11,668 11,955
11,766 12,331
6/00 11,860 12,894
13,063 14,342
6/02 13,980 15,579
15,517 17,200
6/04 16,013 17,255
17,177 18,428
6/06 16,931 18,280
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 Fund 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 Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a measure of the U.S. bond market.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Fund returns, do not reflect any fees, expenses or sales charges. You
cannot invest directly in an Index.
10
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/06 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
- -----------------------------------------
Average Annual Total Returns
(As of June 30, 2006)
If If
Period Held Redeemed
10 Years 6.02% 6.02%
5 Years 6.02 6.02
1 Year -0.77 -0.77
- -----------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Pioneer Lehman Brothers
Bond Fund Aggregate Bond Index
6/96 $10,000 $10,000
10,709 10,815
6/98 11,784 11,955
11,943 12,331
6/00 12,098 12,894
13,392 14,342
6/02 14,452 15,579
16,166 17,200
6/04 16,728 17,255
18,078 18,428
6/06 17,938 18,280
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.
Performance for periods prior to the inception of Y shares reflects the NAV
performance of the Fund's A shares. The performance does not reflect differences
in expenses, including the Rule 12b-1 fees applicable to A shares. Since fees
for A shares are generally higher than those of Y shares, the performance shown
for Y shares prior to their inception would have been higher. Class A shares are
used as a proxy through 9/20/01. Class Y 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 Fund 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 Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a measure of the U.S. bond market.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Fund returns, do not reflect any fees, expenses or sales charges. You
cannot invest directly in an Index.
11
Pioneer Bond Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund 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 Fund 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 Fund'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 Bond Fund
Based on actual returns from January 1, 2006 through June 30, 2006
Investor
Share Class A B C Class R Y
- ----------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value On 1/1/06
Ending Account $ 963.79 $ 964.71 $ 964.82 $ 964.64 $ 965.33 $ 965.55
Value (after
expenses) On
6/30/06
Expenses Paid $ 4.87 $ 9.26 $ 9.21 $ 3.60 $ 6.09 $ 2.83
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, 1.90%,
1.89%, 0.74%, 1.25% and 0.58%, for Class A, Class B, Class C, Investor
Class, Class R, and Class Y shares, respectively, multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the
one-half year period).
12
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund'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 Fund 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 Bond Fund
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 Y
- ----------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value On 7/1/05
Ending Account $1,019.84 $1,015.57 $1,015.42 $1,021.12 $1,018.60 $1,021.92
Value (after
expenses) On
12/31/05
Expenses Paid $ 5.01 $ 9.49 $ 9.44 $ 3.71 $ 6.26 $ 2.91
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, 1.70%,
1.89%, 0.74%, 1.25% and 0.58%, for Class A, Class B, Class C, Investor
Class, Class R, and Class Y shares, respectively, multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the
one-half year period).
13
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/06
- --------------------------------------------------------------------------------
Against a backdrop of strong economic growth throughout the globe, inflation
concerns grew steadily during the 12 months ended June 30, 2006. The dramatic
increases in commodity prices - most notably in energy prices - added to fears
that inflationary pressures were spreading throughout the general economy. Given
these concerns, the U.S. Federal Reserve Board continued to raise short-term
interest rates to relieve inflationary pressures and control economic growth.
The Fed hiked its Fed funds rate eight successive times over the 12 months, from
3.25% to 5.25%. As the Fed acted, rates among securities of all maturities also
rose, and bond prices generally declined. In the following interview, Kenneth J.
Taubes discusses the factors that influenced Pioneer Bond Fund's performance
during the 12 months ended June 30, 2006. Mr. Taubes, Director of Pioneer's
Fixed Income Group, is responsible for the daily management of the Fund.
Q: How did the Fund perform during the 12 months ended June 30, 2006?
A: Pioneer Bond Fund's Class A shares had a total return of -1.25% for the
fiscal year, at net asset value. During the same 12 months, the Lehman
Aggregate Bond Index produced a total return of -0.81%. The average return of
the 177 funds in Lipper's Corporate Debt, A-Rated, category was -1.29%. One
June 30, the Fund's 30-day SEC yield was 4.28%.
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 were the primary factors influencing performance?
A: It was a tough year in the bond market, given the unrelenting economic growth
and the Federal Reserve Board's increasing concern about rising inflationary
pressures. The Fed raised short-term rates at each of the board's eight
meetings during the 12 months and rates rose in response across the board
among securities of
14
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
all maturities. Early in the 12 months, short-term rates rose faster, but as
the period progressed rates across different maturities seemed to move in
parallel fashion. Over the period, the yield on the six-month Treasury bill
rose by about 190 basis points (1.9 percentage points). Yields of two-year
Treasuries rose by 150 basis points, the yields of 10-year Treasuries climbed
by 122 basis points, and the yields of 30-year Treasuries rose by 99 basis
points. As these rate changes occurred, bond prices - especially among
higher-quality securities - tended to depreciate, with most high-grade
securities recording negative total returns. The most notable exceptions were
issues with short maturities of two years and less, which were the
best-performing over the six months. Corporate bonds, including high-yield
securities, performed somewhat better than Treasuries, as the yield
advantages of corporate bonds compensated for the erosion in the market value
of high-yield bonds.
Q: What were your principal strategies during the period?
A: In general, as the year progressed, we became increasingly defensive to guard
against the risks of a slowing economy as the impacts of the Federal
Reserve's rate hikes worked their way through the economy. As interest rates
rose, we gradually increased duration - a measure of a bond's price
sensitivity to changes in interest rates - as longer-maturity bonds began to
decline and started to offer greater value. The portfolio's effective
duration at the end of the fiscal year, on June 30, 2006, was 5.04 years,
compared with 4.81 years six months earlier. We also increased investments in
Treasury Inflation Protected Securities (TIPS) for most of the period,
although we did reduce our positions late in the fiscal year after these
investments had performed particularly well.
Over the 12 months, we gradually took profits from the Fund's investments in
corporate bonds, including high-yield bonds as they began to appear
increasingly expensive, while increasing the overall credit quality of the
portfolio. In addition, we anticipated that corporate bonds would not perform
as well as economic growth eventually begins to slow. The pick-up in
merger-and-acquisition activity in the market also gave cause for concern.
Such activity tends to favor equity investors over bond investors.
Consequently, we increased our exposure to high-quality, mortgage-backed
securities.
15
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/06 (continued)
- --------------------------------------------------------------------------------
At the end of the fiscal year, average credit quality was a strong AA, and
72.2% of assets were invested in Treasury and U.S. government agency
securities, including agency-backed mortgage securities. Just 5.1% of Fund
assets were invested in high-yield, below investment-grade bonds.
Q: What types of investments had the greatest impact on Fund performance?
A: Our position in TIPS helped performance, as did individual investments in
bonds of Gazprom, the major Russian natural gas production and distribution
company, and of Platinum Underwriters, a Bermuda-based property-and-casualty
reinsurance corporation.
While our investments in the corporate sector - both investment-grade and
high-yield bonds - helped performance, the Fund's higher-quality focus meant
that we did not fully participate in the superior performance of corporate
bonds over the 12 months. Holding back results for the year was the
investment in corporate bonds of automotive parts company Delphi, which filed
for bankruptcy protection during the year. The investment in securities of
Novelis, a major manufacturer producer of aluminum-based products for
industrial customers, also detracted from results somewhat.
Q: What is your investment outlook?
A: We anticipate that we will see increased evidence that the Federal Reserve
has been successful in slowing the rate of economic growth. At the end of the
past fiscal year, the yield curve - reflecting the differences between yields
of different maturities - was modestly inverted. This meant that some
shorter-term yields were higher than some longer-term yields - a phenomenon
that is inconsistent with the normal relationships of yields. In the past,
this phenomenon has tended to presage a slowing in the economy. We also see a
drying up of liquidity in the global markets because of widespread hikes in
short-term interest rates by central banks across the globe.
Given these factors, we believe it makes sense to lengthen the portfolio's
duration and to increase investments in Treasury and high-quality mortgage
securities. We believe these maneuvers could
16
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
help protect the Fund in a slowing economy while positioning it for the time
when the Federal Reserve ends its cycle of rate hikes.
When interest rates rise, the prices of fixed-income securities in the Fund
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of underlying securities and their inability to meet their debt
obligations.
Prepayment risk is the chance that mortgage-backed bonds will be paid off
early if falling interest rates prompt homeowners to refinance their
mortgages. Forced to reinvest the unanticipated proceeds at lower interest
rates, the Fund would experience a decline in income and lose the opportunity
for additional price appreciation associated with falling interest rates.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. The securities issued by U.S. Government sponsored
entities (i.e., FNMA, Freddie Mac) are neither guaranteed nor issued by the
U.S. Government. The portfolio may invest in mortgage-backed securities,
which during times of fluctuating interest rates may increase or decrease
more than other fixed-income securities. Mortgage-Backed securities are also
subject to pre-payments. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making it more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors.
Any information in this shareholder report regarding market or economic
trends or the factors influencing the Fund's historical or future performance
are statements of the opinion of Fund 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.
17
Pioneer Bond Fund
- --------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06
- --------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
ASSET BACKED SECURITIES - 1.5%
Transportation - 0.2%
Airlines - 0.2%
1,381,858 A+/A2 Southwest Airlines Co., 7.67%, 1/2/14 $ 1,398,785
------------
Total Transportation $ 1,398,785
------------
Diversified Financials - 0.8%
Other Diversified Finance Services - 0.8%
2,418,568 BB-/Ba2 Caithness Coso Fund Corp., 6.263%,
6/15/14 (144A) $ 2,368,745
1,597,720 BBB-/Baa2 PF Export Receivable Master Trust, 6.436%,
6/1/15 (144A) 1,597,449
2,671,220 BBB/Baa2 Power Receivables Finance, 6.29%, 1/1/12 (144A) 2,660,989
------------
$ 6,627,183
------------
Specialized Finance - 0.0%
90,000 AAA/Aaa MBNA Credit Card Master Note, Floating
Rate Note, 12/15/08 $ 89,987
------------
Total Diversified Financials $ 6,717,170
------------
Utilities - 0.4%
Electric Utilities - 0.4%
955,900 BBB-/Baa3 Empresa Electric, 8.625%, 4/30/13 (144A) $ 1,031,891
1,627,220 BBB-/Baa3 FPL Energy America Wind LLC, 6.639%,
6/20/23 (144A) 1,663,296
554,400 BB-/Ba2 FPL Energy Wind Funding, 6.876%, 6/27/17 (144A) 553,707
454,415 BB-/Ba2 Tenaska Alabama, 7.0%, 6/30/21 (144A) 442,880
------------
$ 3,691,774
------------
Total Utilities $ 3,691,774
------------
Restaurants - 0.1%
835,000 BB/Ba3 Dunkin Brands Master Finance LLC, 8.28%,
6/20/31 (144A) $ 838,217
------------
Total Restaurants $ 838,217
------------
TOTAL ASSET BACKED SECURITIES
(Cost $12,699,652) $ 12,645,946
------------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
COLLATERALIZED MORTGAGE OBLIGATIONS - 1.3%
Diversified Financials - 0.2%
Other Diversified Finance Services - 0.2%
1,150,000 NR/Ba1 Global Signal, 7.036%, 2/15/36 (144A) $ 1,148,423
525,000 NR/Ba2 Tower 2004-2A F, 6.376%, 12/15/14 515,665
------------
Total Diversified Financials $ 1,664,088
------------
Government - 1.1%
8,748,509 AAA/Aaa Freddie Mac, 6.1%, 9/15/18 $ 8,716,650
------------
Total Government $ 8,716,650
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $10,494,312) $ 10,380,738
------------
CORPORATE BONDS - 25.6%
Energy - 1.2%
Integrated Oil & Gas - 0.8%
45,000 BBB/Baa2 Petro-Canada, 4.0%, 7/15/13 $ 39,809
2,000,000 A-/A1 Phillips Pete Co., 6.375%, 3/30/09 2,036,782
4,000,000 AA/Aa2 Texaco Capital Inc., 7.09%, 2/1/07 4,026,452
25,000 BBB+/Baa1 USX Corp., 6.85%, 3/1/08 25,459
------------
$ 6,128,502
------------
Oil & Gas Equipment And Services - 0.1%
875,000 B+/Ba3 Holly Energy Partners LP, 6.25%, 3/1/15 $ 800,625
------------
Oil & Gas Exploration & Production - 0.3%
2,000,000 BBB/NR Gazprom International SA., 7.201%, 2/1/20 (144A) $ 2,027,500
75,000 BBB/Baa1 Pemex Project Funding Master, 9.125%, 10/13/10 82,125
650,000 BB+/Ba3 Southern Star Central Corp., 6.75%, 3/1/16 (144A) 624,000
------------
$ 2,733,625
------------
Oil & Gas Refining & Marketing - 0.0%
320,000 BBB/Baa2 Boardwalk Pipelines LLC, 5.5%, 2/1/17 $ 301,857
------------
Oil & Gas Storage & Transportation - 0.0%
65,000 BBB+/Baa1 Kinder Morgan Energy Partners, 6.75%, 3/15/11 $ 66,402
------------
Total Energy $ 10,031,011
------------
Materials - 0.9%
Aluminum - 0.2%
1,700,000 B/B1 Novelis Inc., 7.25%, 02/15/15 $ 1,632,000
------------
Commodity Chemicals - 0.2%
625,000 B+/Ba3 Invista, 9.25%, 5/1/12 (144A) $ 656,250
1,500,000 BB-/Ba2 Nova Chemicals, Ltd., 6.5%, 1/15/12 1,380,000
------------
$ 2,036,250
------------
The accompanying notes are an integral part of these financial statements. 19
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
Construction Materials - 0.2%
2,000,000 A+/A1 Vulcan Materials Co., 6.0%, 4/1/09 $ 2,020,694
------------
Fertilizers & Agricultural Chemicals - 0.0%
45,000 BBB+/Baa1 Potash Corp. Saskatchewan, 4.875%, 3/1/13 $ 42,326
------------
Paper Packaging - 0.1%
703,000 B+/B1 Abitibi-Consolidated, Inc., 6.95%, 12/15/06 $ 706,515
------------
Paper Products - 0.2%
1,300,000 B+/B1 Bowater Canada Finance, 7.95%, 11/15/11 $ 1,235,000
------------
Total Materials $ 7,672,785
------------
Capital Goods - 3.9%
Aerospace & Defense - 0.5%
40,000 A/A2 Boeing Co., 5.125%, 2/15/13 $ 38,591
2,000,000 A/A2 Honeywell Inc., 7.0%, 3/15/07 2,014,734
2,145,000 A/A2 McDonnell Douglas Corp., 6.875%, 11/1/06 2,151,523
------------
$ 4,204,848
------------
Construction & Farm Machinery & Heavy Trucks - 1.4%
2,100,000 A/A2 Caterpillar Financial Services 2.5%, 10/3/06 $ 2,084,317
2,300,000 A/A2 Caterpillar Financial Services 3.10%, 5/15/07 2,251,148
1,000,000 A/A2 Caterpillar Inc., 6.55%, 5/1/11 1,039,113
6,000,000 A-/A3 Deere & Co., 7.0%, 3/15/12 6,334,458
------------
$ 11,709,036
------------
Electrical Component & Equipment - 0.2%
1,545,000 NR/Ba1 Orcal Geothermal, 6.21%, 12/30/20 (144A) $ 1,504,104
------------
Industrial Conglomerates - 1.4%
12,000,000 AAA/Aaa GE Electric Co., 5.0%, 2/1/13 $ 11,494,068
------------
Trading Companies & Distributors - 0.4%
2,350,000 BBB-/Baa3 Glencore Funding LLC, 6.0%, 4/15/14 (144A) $ 2,146,220
950,000 BB+/Ba1 Noble Group, Ltd., 6.625%, 3/17/15 (144A) 823,512
------------
$ 2,969,732
------------
Total Capital Goods $ 31,881,788
------------
Consumer Durables & Apparel - 0.2%
Home Furnishings - 0.2%
1,820,000 BBB-/Baa3 Mohawk Industries Inc., 6.125%, 1/15/16 $ 1,754,567
------------
Total Consumer Durables & Apparel $ 1,754,567
------------
Consumer Services - 0.3%
Education Services - 0.3%
2,800,000 AAA/Aaa President & Fellows of Harvard, 6.3%, 10/1/37 $ 2,816,184
------------
Total Consumer Services $ 2,816,184
------------
20 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
Media - 0.6%
Broadcasting & Cable TV - 0.0%
135,000 BBB+/Baa2 Comcast Corp., 5.3%, 1/15/14 $ 127,013
------------
Media - 0.6%
5,000,000 BBB+/Baa2 Comcast Cable Corp., 6.75%, 1/30/11 $ 5,159,645
------------
Total Media $ 5,286,658
------------
Retailing - 0.1%
Department Stores - 0.1%
1,000,000 BBB/Baa1 May Department Store Co., 7.9%, 10/15/07 $ 1,020,496
25,000 A/Baa1 Nordstrom, Inc., 5.625%, 1/15/09 24,879
------------
$ 1,045,375
------------
Total Retailing $ 1,045,375
------------
Food & Drug Retailing - 0.5%
Hypermarkets & Supercenters - 0.5%
4,500,000 AA/Aa2 Wal Mart Stores Inc., 5.45%, 8/1/06 $ 4,499,429
------------
Total Food & Drug Retailing $ 4,499,429
------------
Food Beverage & Tobacco - 0.7%
Brewers - 0.0%
55,000 BBB+/Baa1 Miller Brewing Co., 5.5%, 8/15/13 (144A) $ 52,771
------------
Packaged Foods & Meats - 0.7%
5,055,000 A+/A1 Unilever Capital Corp., 7.125%, 11/1/10 $ 5,307,507
------------
Soft Drinks - 0.0%
55,000 A/A3 Bottling Group LLC, 5.0%, 11/15/13 $ 52,304
------------
Total Food Beverage & Tobacco $ 5,412,582
------------
Household & Personal Products - 0.2%
Household Products - 0.2%
1,700,000 AA-/Aa2 Kimberly Clark Corp., 7.1%, 8/1/07 $ 1,721,794
------------
Total Household & Personal Products $ 1,721,794
------------
Health Care Equipment & Services - 0.3%
Health Care Facilities - 0.3%
2,735,000 BB+/Ba2 HCA, Inc., 6.3%, 10/1/12 $ 2,572,325
------------
Total Health Care Equipment & Services $ 2,572,325
------------
Pharmaceuticals & Biotechnology - 0.1%
Pharmaceuticals - 0.1%
1,000,000 AA/Aa2 Glaxosmithline Capital PlC, 2.375%, 4/16/07 $ 974,123
------------
Total Pharmaceuticals & Biotechnology $ 974,123
------------
The accompanying notes are an integral part of these financial statements. 21
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
Banks - 1.8%
Diversified Banks - 0.4%
1,100,000 A+/Aa3 Nationsbank Corp., 7.75%, 8/15/15 $ 1,228,561
45,000 AA-/Aa2 US Bancorp, 3.125%, 3/15/08 43,223
2,000,000 AA-/Aa1 US Bank, 3.75%, 2/6/09 1,911,406
------------
$ 3,183,190
------------
Regional Banks - 1.4%
4,500,000 A+/Aa3 Branch Banking & Trust Co., 4.875%, 1/15/13 $ 4,284,540
1,000,000 AA-/Aa1 Fifth Third FTB, 2.7%, 1/30/07 984,290
3,000,000 AA+/Aa1 Province of British Columbia, 4.625%, 10/3/06 2,994,345
500,000 A+/Aa3 Suntrust Bank Atlanta, 6.375%, 4/1/11 511,907
3,159,000 A/A1 Suntrust Banks Inc., 7.375%, 7/1/06 3,159,000
------------
$ 11,934,082
------------
Total Banks $ 15,117,272
------------
Diversified Financials - 2.8%
Asset Management & Custody Banks - 1.9%
2,000,000 A/A1 Bank of New York, 4.95%, 3/15/15 $ 1,870,090
2,000,000 A/A2 Mellon Financial Co., 6.4%, 5/14/11 2,048,818
6,000,000 A+/A1 Northern Trust Co., 7.1%, 8/1/09 6,281,598
5,000,000 A+/A1 State Street Corp., 7.65%, 6/15/10 5,321,690
------------
$ 15,522,196
------------
Consumer Finance - 0.5%
2,055,000 B+/Ba2 Ford Motor Credit Co., 5.7%, 1/15/10 $ 1,800,050
2,340,000 A/A2 SLM Corp., Floating Rate Note, 7/25/14 2,138,198
------------
$ 3,938,248
------------
Investment Banking & Brokerage - 0.1%
1,275,000 B+/Ba2 E*Trade Financial Corp., 8.0%, 6/15/11 $ 1,300,500
------------
Other Diversified Finance Services - 0.3%
1,000,000 A+/Aa3 Bank One Texas National, 6.25%, 2/15/08 $ 1,007,124
1,500,000 BBB-/Baa3 Bombardier Capital, Inc., 7.09%, 3/30/07 1,500,000
------------
$ 2,507,124
------------
Total Diversified Financials $ 23,268,068
------------
Insurance - 5.4%
Life & Health Insurance - 2.0%
1,000,000 A/A2 Metlife, 6.125%, 12/1/11 $ 1,017,163
2,830,000 B-/B2 Presidential Life Corp., 7.875%, 2/15/09 2,815,850
3,500,000 AA/Aa3 Protective Life, 4.0%, 10/7/09 3,364,155
2,850,000 BB+/Ba1 Provident Co., Inc., 7.0%, 7/15/18 2,751,604
6,000,000 AA-/A1 Prudential Funding LLC, 6.6%, 5/15/08 6,090,744
------------
$ 16,039,516
------------
22 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
Multi-Line Insurance - 1.4%
5,000,000 AA+/Aa2 Asif Global Financial XVIII, 3.85%, 11/26/07 (144A) $ 4,881,700
4,450,000 BB+/Ba1 Hanover Insurance Group, 7.625%, 10/15/25 4,460,827
1,950,000 A/Baa1 Loew Corp., 5.25%, 3/15/16 1,804,304
------------
$ 11,146,831
------------
Property & Casualty Insurance - 1.1%
3,000,000 AAA/Aaa Berkshire Hathway, Inc., 3.375%, 10/15/08 $ 2,856,051
1,000,000 A/A2 Chubb Corp., 6.0%, 11/15/11 1,005,935
2,965,000 BBB-/NR Kingsway America, Inc., 7.5%, 2/1/14 2,935,898
2,585,000 BB+/Baa3 Ohio Casualty Corp., 7.3%, 6/15/14 2,614,503
------------
$ 9,412,387
------------
Reinsurance - 0.9%
2,000,000 BBB-/Baa3 Odyssey Re Holdings, 7.65%, 11/1/13 $ 1,921,620
5,700,000 BBB/NA Platinum Underwriters HD, 7.50%, 6/1/17 5,591,660
------------
$ 7,513,280
------------
Total Insurance $ 44,112,014
------------
Real Estate - 1.8%
Real Estate Management & Development - 0.3%
2,200,000 BB-/Ba3 Forest City Enterprises, 7.625%, 6/1/15 $ 2,216,500
------------
Real Estate Investment Trust- 1.5%
1,100,000 BBB-/Baa3 Colonial Reality LP, 6.15%, 4/15/13 $ 1,083,901
890,000 B/B1 Crescent Real Estate, 7.5%, 9/15/07 898,900
860,000 BBB-/Baa3 Health Care, Inc., 6.0%, 11/15/13 831,305
3,575,000 BBB-/Baa3 Health Care, Inc., 6.2%, 6/1/16 3,472,937
935,000 BBB-/Baa3 Health Care, Inc., 8.0%, 9/12/12 1,006,292
775,000 BBB/Baa2 Hospitality Properties Trust, 5.125%, 2/15/15 710,906
1,724,000 BB/Ba2 Host Marriott LP, 6.375%, 3/15/15 1,620,560
1,815,000 B+/B1 Trustreet Properties Inc., 7.5%, 4/1/15 1,787,775
985,000 BB+/Ba2 Ventas Realty Capital Corp., 7.125%, 6/1/15 (144A) 985,000
------------
$ 12,397,576
------------
Total Real Estate $ 14,614,076
------------
Software & Services - 0.4%
Data Processing & Outsourced Services - 0.4%
3,000,000 A+/A2 First Data Corp., 4.7%, 11/01/06 $ 2,990,673
------------
Total Software & Services $ 2,990,673
------------
Technology Hardware & Equipment - 1.1%
Communications Equipment - 0.3%
2,395,000 BBB/Baa3 Corning, Inc., 5.9%, 3/15/14 $ 2,367,977
------------
The accompanying notes are an integral part of these financial statements. 23
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
Computer Hardware - 0.8%
5,000,000 A+/A1 International Business Machine, 5.375%, 2/1/09 $ 4,979,445
2,000,000 BBB-/Baa3 NCR Corp., 7.125%, 6/15/09 2,041,656
------------
$ 7,021,101
------------
Total Technology Hardware & Equipment $ 9,389,078
------------
Semiconductors - 0.3%
2,195,000 BBB-/Baa3 Chartered Semiconductor, 6.375%, 8/3/15 $ 2,095,481
------------
Total Semiconductors $ 2,095,481
------------
Telecommunication Services - 0.2%
Integrated Telecommunication Services - 0.2%
1,500,000 A/A3 GTE California Inc., 6.7%, 9/1/09 $ 1,523,587
------------
Total Telecommunication Services $ 1,523,587
------------
Utilities - 2.6%
Electric Utilities - 1.2%
1,700,000 A/A2 Alabama Power Co., 7.125%, 10/1/07 $ 1,728,250
711,468 BBB-/Baa3 Crocket Cogeneration, 5.869%, 3/30/25 (144A) 665,258
2,050,000 BBB+/Baa3 Entergy Gulf States, 5.7%, 6/1/15 1,928,751
3,000,000 A/A2 Georgia Power Co., 4.0%, 1/15/11 2,795,640
1,555,000 BBB-/Baa3 Kiowa Power Partners LLC, 5.737%, 3/30/21 (144A) 1,442,620
1,000,000 BB-/Ba3 MSW Energy Holdings, 7.375%, 9/1/10 1,000,000
------------
$ 9,560,519
------------
Independent Power Producer & Energy Traders - 0.9%
3,100,000 A/A2 Baltimore Gas & Electric Co., 7.5%, 1/15/07 $ 3,126,263
5,000,000 BBB/A3 Duke Energy Corp., 6.25%, 1/15/12 5,086,095
------------
$ 8,212,358
------------
Multi-Utilities - 0.4%
3,500,000 A-/A1 Wisconsin Electric Power Co., 6.625%, 11/15/06 $ 3,510,301
------------
Total Utilities $ 21,283,178
------------
TOTAL CORPORATE BONDS
(Cost $212,044,146) $210,062,048
------------
24 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 70.9%
65,000 AAA/Aaa Federal Home Loan Bank, 3.875%, 6/14/13 $ 58,934
195,000 AAA/Aaa Federal Home Loan Bank, 6.0%, 4/15/32 197,080
5,658,340 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%, 10/1/20 5,342,105
14,115,381 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%, 10/1/20 13,326,496
9,751,809 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%, 10/1/35 8,847,051
419,761 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%, 11/1/18 397,029
5,669,060 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%, 11/1/20 5,352,226
2,605,352 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%, 3/1/20 2,459,743
684,476 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%, 4/1/35 622,509
3,103,982 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%, 5/1/20 2,930,506
4,807,126 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%, 8/1/20 4,544,082
10,750,998 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%, 10/1/35 9,753,536
787,207 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%, 11/1/35 714,171
5,784,724 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%, 9/1/35 5,248,026
197,396 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%, 9/1/35 179,082
8,519,230 AAA/Aaa Federal Home Loan Mortgage Corp., 5.0%, 10/1/20 8,202,190
2,724,415 AAA/Aaa Federal Home Loan Mortgage Corp., 5.0%, 6/1/35 2,546,313
660,470 AAA/Aaa Federal Home Loan Mortgage Corp., 5.0%, 7/1/35 617,293
1,536,478 AAA/Aaa Federal Home Loan Mortgage Corp., 5.5%, 11/1/34 1,479,669
1,754,053 AAA/Aaa Federal Home Loan Mortgage Corp., 5.5%, 11/1/34 1,692,744
4,851,577 AAA/Aaa Federal Home Loan Mortgage Corp., 5.5%, 11/1/35 4,662,928
1,716,239 NR/NR Federal Home Loan Mortgage Corp., 5.5%, 12/1/18 1,690,339
4,797,743 AAA/Aaa Federal Home Loan Mortgage Corp., 5.5%, 8/1/35 4,611,188
2,276,874 AAA/Aaa Federal Home Loan Mortgage Corp., 5.5%, 9/1/33 2,196,564
73,634 NR/NR Federal Home Loan Mortgage Corp., 6.0% 3/1/33 72,720
278,362 NR/NR Federal Home Loan Mortgage Corp., 6.0%, 1/1/33 274,906
278,555 AAA/Aaa Federal Home Loan Mortgage Corp., 6.0%, 1/1/34 275,098
629,395 AAA/Aaa Federal Home Loan Mortgage Corp., 6.0%, 1/1/34 620,949
1,174,628 NR/NR Federal Home Loan Mortgage Corp., 6.0%, 12/1/33 1,160,047
239,344 NR/NR Federal Home Loan Mortgage Corp., 6.0%, 12/1/33 237,127
277,858 NR/NR Federal Home Loan Mortgage Corp., 6.0%, 12/1/33 274,409
643,790 NR/NR Federal Home Loan Mortgage Corp., 6.0%, 2/1/33 636,631
525,536 NR/NR Federal Home Loan Mortgage Corp., 6.0%, 3/1/33 519,377
1,864,865 AAA/Aaa Federal Home Loan Mortgage Corp., 6.0%, 3/1/33 1,843,010
1,090,832 AAA/Aaa Federal Home Loan Mortgage Corp., 6.0%, 4/1/35 1,074,684
416,821 AAA/Aaa Federal Home Loan Mortgage Corp., 6.0%, 5/1/17 417,638
4,415,196 AAA/Aaa Federal Home Loan Mortgage Corp., 6.0%, 5/1/34 4,355,948
780,632 AAA/Aaa Federal Home Loan Mortgage Corp., 6.0%, 5/1/34 770,157
2,813,277 AAA/Aaa Federal Home Loan Mortgage Corp., 6.0%, 6/1/35 2,771,631
1,166,831 AAA/Aaa Federal Home Loan Mortgage Corp., 6.0%, 6/1/35 1,149,558
1,900,137 AAA/Aaa Federal Home Loan Mortgage Corp., 6.0%, 8/1/34 1,874,639
The accompanying notes are an integral part of these financial statements. 25
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
1,401,409 AAA/Aaa Federal Home Loan Mortgage Corp., 6.0%, 9/1/33 $ 1,384,013
53,702 AAA/Aaa Federal Home Loan Mortgage Corp., 6.5%, 1/1/29 54,283
526,633 AAA/Aaa Federal Home Loan Mortgage Corp., 6.5%, 10/1/33 533,171
358,369 AAA/Aaa Federal Home Loan Mortgage Corp., 6.5%, 10/1/33 362,819
59,672 NR/NR Federal Home Loan Mortgage Corp., 6.5%, 11/1/33 60,433
2,810,730 AAA/Aaa Federal Home Loan Mortgage Corp., 6.5%, 3/1/13 2,832,165
124,855 NR/NR Federal Home Loan Mortgage Corp., 6.5%, 7/1/32 126,029
9,970 NR/NR Federal Home Loan Mortgage Corp., 7.0%, 12/1/30 10,217
4,424 AAA/Aaa Federal Home Loan Mortgage Corp., 8.0%, 4/1/08 4,471
980 NR/NR Federal Home Loan Mortgage Corp., 8.0%, 9/15/06 979
3,641,305 AAA/Aaa Federal National Mortgage Association,
4.5%, 10/1/35 3,301,147
3,318,865 AAA/Aaa Federal National Mortgage Association,
4.5%, 10/1/35 3,008,828
6,189,148 AAA/Aaa Federal National Mortgage Association,
4.5%, 11/1/20 5,850,232
8,510,489 AAA/Aaa Federal National Mortgage Association,
4.5%, 4/1/19 8,054,441
179,224 AAA/Aaa Federal National Mortgage Association,
4.78%, 12/1/12 171,434
3,033,753 AAA/Aaa Federal National Mortgage Association,
5.0%, 10/1/20 2,922,716
239,297 AAA/Aaa Federal National Mortgage Association,
5.0%, 12/1/17 230,994
602,644 AAA/Aaa Federal National Mortgage Association,
5.0%, 2/1/20 580,587
166,215 AAA/Aaa Federal National Mortgage Association,
5.0%, 3/1/33 156,126
124,775 AAA/Aaa Federal National Mortgage Association,
5.0%, 5/1/34 117,008
140,000 AAA/Aaa Federal National Mortgage Association,
5.24%, 8/7/18 132,809
7,913,194 AAA/Aaa Federal National Mortgage Association,
5.5%, 12/1/17 7,782,226
1,066,215 AAA/Aaa Federal National Mortgage Association,
5.5%, 12/1/18 1,048,140
218,411 AAA/Aaa Federal National Mortgage Association,
5.5%, 2/1/18 214,847
1,675,879 AAA/Aaa Federal National Mortgage Association,
5.5%, 3/1/25 1,625,941
26 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
4,920,093 AAA/Aaa Federal National Mortgage Association,
5.5%, 3/1/36 $ 4,725,954
818,443 AAA/Aaa Federal National Mortgage Association,
5.5%, 4/1/19 804,898
11,797,469 AAA/Aaa Federal National Mortgage Association,
5.5%, 4/1/36 11,331,960
9,007,204 AAA/Aaa Federal National Mortgage Association,
5.5%, 5/1/36 8,651,794
3,995,282 AAA/Aaa Federal National Mortgage Association,
5.5%, 5/1/36 3,837,635
3,995,545 AAA/Aaa Federal National Mortgage Association,
5.5%, 5/1/36 3,837,887
82,847 AAA/Aaa Federal National Mortgage Association,
5.5%, 7/1/23 80,660
2,127,637 AAA/Aaa Federal National Mortgage Association,
5.5%, 7/1/33 2,052,532
193,738 AAA/Aaa Federal National Mortgage Association,
5.5%, 9/1/17 190,531
3,295,445 AAA/Aaa Federal National Mortgage Association,
5.5%, 9/1/19 3,237,421
855,841 NR/NR Federal National Mortgage Association,
6.0% 2/1/33 845,529
7,517 AAA/Aaa Federal National Mortgage Association,
6.0%, 1/1/29 7,435
9,867 AAA/Aaa Federal National Mortgage Association,
6.0%, 1/1/29 10,004
27,460 AAA/Aaa Federal National Mortgage Association,
6.0%, 1/1/32 27,154
792,679 AAA/Aaa Federal National Mortgage Association,
6.0%, 10/1/32 783,127
247,190 AAA/Aaa Federal National Mortgage Association,
6.0%, 10/1/34 243,785
223,152 NR/NR Federal National Mortgage Association,
6.0%, 11/1/32 220,463
265,751 AAA/Aaa Federal National Mortgage Association,
6.0%, 11/1/33 262,380
162,416 AAA/Aaa Federal National Mortgage Association,
6.0%, 11/1/34 160,179
83,588 NR/NR Federal National Mortgage Association,
6.0%, 2/1/32 82,636
The accompanying notes are an integral part of these financial statements. 27
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
43,502 AAA/Aaa Federal National Mortgage Association,
6.0%, 2/1/35 $ 42,902
119,329 AAA/Aaa Federal National Mortgage Association,
6.0%, 2/1/35 117,685
70,002 AAA/Aaa Federal National Mortgage Association,
6.0%, 3/1/33 69,113
2,193,522 NR/NR Federal National Mortgage Association,
6.0%, 4/1/33 2,165,691
2,733,446 AAA/Aaa Federal National Mortgage Association,
6.0%, 4/1/35 2,698,764
80,156 AAA/Aaa Federal National Mortgage Association,
6.0%, 4/1/36 78,906
72,571 AAA/Aaa Federal National Mortgage Association,
6.0%, 5/1/35 71,484
1,441,565 AAA/Aaa Federal National Mortgage Association,
6.0%, 5/1/35 1,419,977
201,129 AAA/Aaa Federal National Mortgage Association,
6.0%, 5/1/35 198,117
74,797 AAA/Aaa Federal National Mortgage Association,
6.0%, 5/1/36 73,630
423,173 AAA/Aaa Federal National Mortgage Association,
6.0%, 6/1/16 424,707
447,125 AAA/Aaa Federal National Mortgage Association,
6.0%, 6/1/35 440,429
1,379,855 AAA/Aaa Federal National Mortgage Association,
6.0%, 7/1/33 1,362,348
1,983,133 NR/NR Federal National Mortgage Association,
6.0%, 7/1/33 1,957,971
236,186 AAA/Aaa Federal National Mortgage Association,
6.0%, 7/1/35 232,649
58,435 AAA/Aaa Federal National Mortgage Association,
6.0%, 8/1/32 57,730
1,960,071 AAA/Aaa Federal National Mortgage Association,
6.0%, 8/1/34 1,929,506
13,943 AAA/Aaa Federal National Mortgage Association,
6.0%, 9/1/29 13,791
8,743 AAA/Aaa Federal National Mortgage Association,
6.0%, 9/1/32 8,638
216,048 AAA/Aaa Federal National Mortgage Association,
6.0%, 9/1/34 213,072
28 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
996,202 AAA/Aaa Federal National Mortgage Association,
6.0%, 9/1/34 $ 982,481
3,674,355 AAA/Aaa Federal National Mortgage Association,
6.0%, 9/1/34 3,623,746
187,912 AAA/Aaa Federal National Mortgage Association,
6.0%, 9/1/34 185,324
8,622,565 AAA/Aaa Federal National Mortgage Association,
6.0%, 7/1/35 8,503,801
84,065 NR/NR Federal National Mortgage Association,
6.5%, 10/1/31 84,832
38,890 NR/NR Federal National Mortgage Association,
6.5%, 10/1/31 39,244
255,955 NR/NR Federal National Mortgage Association,
6.5%, 10/1/32 258,214
91,577 NR/NR Federal National Mortgage Association,
6.5%, 2/1/32 92,413
167,305 NR/NR Federal National Mortgage Association,
6.5%, 2/1/32 168,782
277,257 NR/NR Federal National Mortgage Association,
6.5%, 3/1/32 279,704
14,835 NR/NR Federal National Mortgage Association,
6.5%, 4/1/31 14,971
104,922 NR/NR Federal National Mortgage Association,
6.5%, 5/1/31 105,879
194,874 NR/NR Federal National Mortgage Association,
6.5%, 6/1/31 196,714
73,162 AAA/Aaa Federal National Mortgage Association,
6.5%, 7/1/29 73,912
35,029 AAA/Aaa Federal National Mortgage Association,
6.5%, 7/1/34 35,234
87,734 NR/NR Federal National Mortgage Association,
6.5%, 8/1/31 88,534
96,787 NR/NR Federal National Mortgage Association,
6.5%, 9/1/31 97,670
139,026 NR/NR Federal National Mortgage Association,
7.0%, 1/1/32 142,448
39,627 NR/NR Federal National Mortgage Association,
7.0%, 10/25/07 39,726
10,399 NR/NR Federal National Mortgage Association,
7.0%, 12/1/30 10,660
The accompanying notes are an integral part of these financial statements. 29
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
34,157 NR/NR Federal National Mortgage Association,
7.0%, 12/1/30 $ 35,015
170,971 NR/NR Federal National Mortgage Association,
7.0%, 12/1/31 175,179
13,217 AAA/Aaa Federal National Mortgage Association,
7.0%, 3/1/12 13,460
68,201 NR/NR Federal National Mortgage Association,
7.0%, 4/1/31 69,914
43,118 NR/NR Federal National Mortgage Association,
7.0%, 7/1/22 44,310
112,248 NR/NR Federal National Mortgage Association,
7.0%, 8/1/31 115,011
60,253 NR/NR Federal National Mortgage Association,
7.0%, 9/1/31 61,736
4,519 NR/NR Federal National Mortgage Association,
7.5%, 4/1/30 4,682
9,536 NR/NR Federal National Mortgage Association,
7.5%, 8/1/20 9,909
3,655 AAA/Aaa Federal National Mortgage Association,
8.0%, 1/1/31 3,857
2,870 AAA/Aaa Federal National Mortgage Association,
8.0%, 10/1/30 3,029
11,828 AAA/Aaa Federal National Mortgage Association,
8.0%, 2/1/29 12,500
2,883 AAA/Aaa Federal National Mortgage Association,
8.0%, 2/1/30 3,046
1,782 AAA/Aaa Federal National Mortgage Association,
8.0%, 2/1/30 1,883
45,271 AAA/Aaa Federal National Mortgage Association,
8.0%, 3/1/31 47,832
7,854 AAA/Aaa Federal National Mortgage Association,
8.0%, 4/1/20 8,291
3,308 AAA/Aaa Federal National Mortgage Association,
8.0%, 4/1/30 3,491
2,084 AAA/Aaa Federal National Mortgage Association,
8.0%, 5/1/31 2,199
2,124 AAA/Aaa Federal National Mortgage Association,
8.0%, 7/1/30 2,241
13,678 NR/NR Federal National Mortgage Association,
10.3%, 4/25/19 14,358
30 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
7,751 NR/NR Federal National Mortgage Association,
10.3%, 4/25/19 $ 8,889
2,226,315 AAA/Aaa Government National Mortgage Association II,
4.5%, 1/20/35 2,021,608
878,862 AAA/Aaa Government National Mortgage Association II,
4.5%, 12/20/34 798,794
196,669 AAA/Aaa Government National Mortgage Association II,
5.5%, 11/20/34 189,996
322,566 NR/NR Government National Mortgage Association II,
5.5%, 2/20/34 311,621
1,877,967 AAA/Aaa Government National Mortgage Association II,
5.5%, 3/20/34 1,814,242
6,677,381 AAA/Aaa Government National Mortgage Association II,
6.0%, 11/20/33 6,616,076
221,543 NR/NR Government National Mortgage Association II,
7.0%, 1/20/29 227,102
183,899 AAA/Aaa Government National Mortgage Association,
4.5%, 1/15/35 168,885
1,358,872 AAA/Aaa Government National Mortgage Association,
4.5%, 10/15/33 1,250,052
1,366,410 AAA/Aaa Government National Mortgage Association,
4.5%, 10/15/33 1,256,986
2,054,543 AAA/Aaa Government National Mortgage Association,
4.5%, 10/15/35 1,886,812
129,688 AAA/Aaa Government National Mortgage Association,
4.5%, 2/15/34 119,210
200,231 AAA/Aaa Government National Mortgage Association,
4.5%, 3/15/35 183,885
647,980 AAA/Aaa Government National Mortgage Association,
4.5%, 3/15/35 595,079
1,835,012 AAA/Aaa Government National Mortgage Association,
4.5%, 4/15/35 1,685,203
685,738 AAA/Aaa Government National Mortgage Association,
4.5%, 4/15/35 629,755
304,269 AAA/Aaa Government National Mortgage Association,
4.5%, 4/15/35 279,429
218,323 AAA/Aaa Government National Mortgage Association,
4.5%, 5/15/34 200,684
42,576 AAA/Aaa Government National Mortgage Association,
4.5%, 6/15/34 39,136
The accompanying notes are an integral part of these financial statements. 31
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
472,464 AAA/Aaa Government National Mortgage Association,
4.5%, 7/15/33 $ 434,628
418,332 AAA/Aaa Government National Mortgage Association,
4.5%, 8/15/33 384,832
2,196,074 AAA/Aaa Government National Mortgage Association,
4.5%, 8/15/33 2,020,210
1,633,626 AAA/Aaa Government National Mortgage Association,
4.5%, 8/15/33 1,502,804
1,058,634 AAA/Aaa Government National Mortgage Association,
4.5%, 9/15/33 973,858
1,662,908 AAA/Aaa Government National Mortgage Association,
4.5%, 9/15/33 1,529,740
385,661 AAA/Aaa Government National Mortgage Association,
4.5%, 9/15/35 354,176
1,988,824 AAA/Aaa Government National Mortgage Association,
4.5%, 9/15/35 1,826,458
1,629,385 AAA/Aaa Government National Mortgage Association,
5.0%, 4/15/34 1,543,917
1,797,597 AAA/Aaa Government National Mortgage Association,
5.0%, 4/15/35 1,701,823
880,651 AAA/Aaa Government National Mortgage Association,
5.0%, 7/15/19 855,064
15,557 AAA/Aaa Government National Mortgage Association,
5.0%, 7/15/19 15,105
1,565,159 AAA/Aaa Government National Mortgage Association,
5.5%, 1/15/35 1,517,789
16,409,241 AAA/Aaa Government National Mortgage Association,
5.5%, 1/15/36 15,907,946
366,452 AAA/Aaa Government National Mortgage Association,
5.5%, 10/15/17 362,389
205,291 AAA/Aaa Government National Mortgage Association,
5.5%, 10/15/33 199,235
994,781 AAA/Aaa Government National Mortgage Association,
5.5%, 10/15/34 965,064
947,251 AAA/Aaa Government National Mortgage Association,
5.5%, 10/15/35 918,582
957,171 AAA/Aaa Government National Mortgage Association,
5.5%, 10/15/35 928,202
1,918,585 AAA/Aaa Government National Mortgage Association,
5.5%, 10/15/35 1,860,519
32 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
639,310 AAA/Aaa Government National Mortgage Association,
5.5%, 11/15/18 $ 632,042
1,950,260 AAA/Aaa Government National Mortgage Association,
5.5%, 11/15/34 1,891,999
196,120 AAA/Aaa Government National Mortgage Association,
5.5%, 12/15/18 193,890
41,021 AAA/Aaa Government National Mortgage Association,
5.5%, 12/15/34 39,796
2,721,349 AAA/Aaa Government National Mortgage Association,
5.5%, 2/15/35 2,638,987
1,572,358 AAA/Aaa Government National Mortgage Association,
5.5%, 2/15/35 1,524,771
16,145 AAA/Aaa Government National Mortgage Association,
5.5%, 4/15/19 15,958
1,665,827 AAA/Aaa Government National Mortgage Association,
5.5%, 4/20/34 1,609,300
1,688,675 AAA/Aaa Government National Mortgage Association,
5.5%, 5/15/35 1,637,567
2,491,568 AAA/Aaa Government National Mortgage Association,
5.5%, 6/15/35 2,416,160
2,696,327 AAA/Aaa Government National Mortgage Association,
5.5%, 7/15/34 2,615,778
9,200,154 AAA/Aaa Government National Mortgage Association,
5.5%, 7/15/35 8,921,709
9,443,589 AAA/Aaa Government National Mortgage Association,
5.5%, 7/15/35 9,157,777
1,889,847 AAA/Aaa Government National Mortgage Association,
5.5%, 8/15/19 1,867,907
2,158,865 AAA/Aaa Government National Mortgage Association,
5.5%, 8/15/19 2,133,802
156,235 AAA/Aaa Government National Mortgage Association,
5.5%, 8/15/33 151,626
9,114,183 AAA/Aaa Government National Mortgage Association,
5.5%, 8/15/35 8,838,340
1,756,754 AAA/Aaa Government National Mortgage Association,
5.5%, 9/15/33 1,704,927
384,213 NR/NR Government National Mortgage Association,
6.0%, 1/15/33 381,646
927,878 NR/NR Government National Mortgage Association,
6.0%, 1/15/33 921,820
The accompanying notes are an integral part of these financial statements. 33
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
300,674 NR/NR Government National Mortgage Association,
6.0%, 10/15/32 $ 298,707
468,555 AAA/Aaa Government National Mortgage Association,
6.0%, 10/15/33 465,424
1,000,301 AAA/Aaa Government National Mortgage Association,
6.0%, 10/15/34 993,374
137,869 NR/NR Government National Mortgage Association,
6.0%, 11/15/32 136,967
1,239,944 AAA/Aaa Government National Mortgage Association,
6.0%, 11/15/34 1,231,357
235,327 AAA/Aaa Government National Mortgage Association,
6.0%, 2/15/33 233,754
16,751 NR/NR Government National Mortgage Association,
6.0%, 3/15/32 16,641
492,420 AAA/Aaa Government National Mortgage Association,
6.0%, 3/15/33 489,130
397,585 NR/NR Government National Mortgage Association,
6.0%, 3/15/33 394,928
655,418 NR/NR Government National Mortgage Association,
6.0%, 3/15/33 651,039
1,541,107 Aaa/AAA Government National Mortgage Association,
6.0%, 3/15/33 1,530,811
806,103 AAA/Aaa Government National Mortgage Association,
6.0%, 3/15/33 800,844
1,020,901 NR/NR Government National Mortgage Association,
6.0%, 3/15/33 1,014,250
5,232 NR/NR Government National Mortgage Association,
6.0%, 4/15/14 5,269
487,110 NR/NR Government National Mortgage Association,
6.0%, 4/15/33 483,855
630,471 AAA/Aaa Government National Mortgage Association,
6.0%, 5/15/17 635,350
904,112 NR/NR Government National Mortgage Association,
6.0%, 5/15/33 898,072
119,019 AAA/Aaa Government National Mortgage Association,
6.0%, 6/15/17 119,940
87,961 AAA/NR Government National Mortgage Association,
6.0%, 6/15/33 87,374
689,562 NR/NR Government National Mortgage Association,
6.0%, 7/15/33 653,267
34 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
15,997 AAA/Aaa Government National Mortgage Association,
6.0%, 8/15/13 $ 16,084
66,988 AAA/Aaa Government National Mortgage Association,
6.0%, 8/15/32 66,575
967,383 AAA/Aaa Government National Mortgage Association,
6.0%, 9/15/19 974,771
262,929 AAA/Aaa Government National Mortgage Association,
6.0%, 9/15/32 261,208
34,549 NR/NR Government National Mortgage Association,
6.0%, 9/15/32 34,323
401,263 AAA/Aaa Government National Mortgage Association,
6.0%, 9/15/34 398,484
4,608,479 AAA/Aaa Government National Mortgage Association,
6.0%, 9/15/35 4,572,502
82,746 AAA/Aaa Government National Mortgage Association,
6.5%, 1/15/29 84,008
730,571 AAA/Aaa Government National Mortgage Association,
6.5%, 1/15/32 740,310
3,304,595 AAA/Aaa Government National Mortgage Association,
6.5%, 1/15/33 3,351,453
34,329 AAA/Aaa Government National Mortgage Association,
6.5%, 1/15/33 34,794
128,760 AAA/Aaa Government National Mortgage Association,
6.5%, 1/15/34 130,408
182,287 AAA/Aaa Government National Mortgage Association,
6.5%, 1/15/34 184,620
50,964 AAA/Aaa Government National Mortgage Association,
6.5%, 1/15/35 51,611
216,875 NR/NR Government National Mortgage Association,
6.5%, 10/15/31 219,882
757,197 AAA/Aaa Government National Mortgage Association,
6.5%, 10/15/31 767,692
49,923 AAA/Aaa Government National Mortgage Association,
6.5%, 10/15/31 50,615
832,751 AAA/Aaa Government National Mortgage Association,
6.5%, 10/15/32 843,852
11,772 AAA/Aaa Government National Mortgage Association,
6.5%, 10/15/33 11,926
41,134 AAA/Aaa Government National Mortgage Association,
6.5%, 11/15/31 41,704
The accompanying notes are an integral part of these financial statements. 35
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
495,233 AAA/Aaa Government National Mortgage Association,
6.5%, 11/15/32 $ 502,196
2,991,647 AAA/Aaa Government National Mortgage Association,
6.5%, 12/15/32 3,032,710
12,634 AAA/Aaa Government National Mortgage Association,
6.5%, 2/15/29 12,826
49,302 NR/NR Government National Mortgage Association,
6.5%, 2/15/29 50,054
281,230 NR/NR Government National Mortgage Association,
6.5%, 2/15/32 284,979
427,580 AAA/Aaa Government National Mortgage Association,
6.5%, 2/15/34 433,054
99,976 AAA/Aaa Government National Mortgage Association,
6.5%, 3/15/29 101,501
345,795 NR/NR Government National Mortgage Association,
6.5%, 3/15/29 351,071
74,573 NR/NR Government National Mortgage Association,
6.5%, 3/15/29 75,711
90,091 NR/NR Government National Mortgage Association,
6.5%, 3/15/31 91,340
119,300 AAA/Aaa Government National Mortgage Association,
6.5%, 3/15/32 120,891
798,859 AAA/Aaa Government National Mortgage Association,
6.5%, 3/15/35 809,001
654,625 AAA/Aaa Government National Mortgage Association,
6.5%, 4/15/31 663,698
29,846 AAA/Aaa Government National Mortgage Association,
6.5%, 4/15/32 30,244
137,596 AAA/Aaa Government National Mortgage Association,
6.5%, 4/15/35 139,343
714 AAA/Aaa Government National Mortgage Association,
6.5%, 5/15/26 725
496,602 NR/NR Government National Mortgage Association,
6.5%, 5/15/29 504,263
171,431 AAA/Aaa Government National Mortgage Association,
6.5%, 5/15/31 173,841
150,085 AAA/Aaa Government National Mortgage Association,
6.5%, 5/15/31 152,207
70,180 NR/NR Government National Mortgage Association,
6.5%, 5/15/32 71,115
36 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
19,261 NR/NR Government National Mortgage Association,
6.5%, 6/15/31 $ 19,528
4,440,519 AAA/Aaa Government National Mortgage Association,
6.5%, 6/15/31 4,503,305
144,461 AAA/Aaa Government National Mortgage Association,
6.5%, 6/15/32 146,387
841,034 AAA/Aaa Government National Mortgage Association,
6.5%, 6/15/34 851,800
115,970 AAA/Aaa Government National Mortgage Association,
6.5%, 6/15/35 117,442
1,667,206 AAA/Aaa Government National Mortgage Association,
6.5%, 7/15/32 1,689,430
333,627 AAA/Aaa Government National Mortgage Association,
6.5%, 7/15/32 338,075
530,401 AAA/Aaa Government National Mortgage Association,
6.5%, 7/15/35 537,134
2,187,512 AAA/Aaa Government National Mortgage Association,
6.5%, 7/15/35 2,215,284
65,813 AAA/Aaa Government National Mortgage Association,
6.5%, 8/15/11 66,651
262,034 AAA/Aaa Government National Mortgage Association,
6.5%, 8/15/31 265,666
223,199 NR/NR Government National Mortgage Association,
6.5%, 8/15/32 226,175
37,916 AAA/Aaa Government National Mortgage Association,
6.5%, 8/15/32 38,422
207,547 NR/NR Government National Mortgage Association,
6.5%, 9/15/32 210,314
58,929 AAA/Aaa Government National Mortgage Association,
6.5%, 9/15/34 59,684
128,009 AAA/Aaa Government National Mortgage Association,
7.0%, 9/15/11 131,188
39,798 NR/NR Government National Mortgage Association,
7.0%, 12/15/13 41,041
263,942 NR/NR Government National Mortgage Association,
7.0%, 11/15/28 272,422
108,679 NR/NR Government National Mortgage Association,
7.0%, 11/15/28 112,170
10,321 AAA/Aaa Government National Mortgage Association,
7.0%, 4/15/28 10,649
The accompanying notes are an integral part of these financial statements. 37
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
10,102 NR/NR Government National Mortgage Association,
7.0%, 8/15/28 $ 10,423
93,528 NR/NR Government National Mortgage Association,
7.0%, 4/15/29 96,517
64,891 NR/NR Government National Mortgage Association,
7.0%, 2/15/30 66,966
15,876 NR/NR Government National Mortgage Association,
7.0%, 12/15/30 16,383
954,439 AAA/Aaa Government National Mortgage Association,
7.0%, 8/15/31 984,728
195,725 NR/NR Government National Mortgage Association,
7.0%, 6/15/31 201,982
80,465 NR/NR Government National Mortgage Association,
7.0%, 6/15/31 83,018
28,986 NR/NR Government National Mortgage Association,
7.0%, 4/15/31 29,905
372,158 AAA/Aaa Government National Mortgage Association,
7.0%, 5/15/32 383,910
66,986 AAA/Aaa Government National Mortgage Association,
7.5%, 8/15/11 69,179
14,498 NR/Aaa Government National Mortgage Association,
7.5%, 2/15/26 15,183
67,755 NR/NR Government National Mortgage Association,
7.5%, 8/15/29 70,863
4,120 NR/NR Government National Mortgage Association,
7.75%, 11/15/29 4,345
10,504 AAA/Aaa Government National Mortgage Association,
7.75%, 2/15/30 11,070
188,626 NR/NR Government National Mortgage Association,
7.5%, 12/15/31 197,143
18,569 NR/NR Government National Mortgage Association,
7.5%, 2/15/31 19,407
39,321 AAA/Aaa Government National Mortgage Association,
8.0%, 5/15/10 40,735
4,095 NR/NR Government National Mortgage Association,
9.5%, 5/15/20 4,483
2,219 NR/NR Government National Mortgage Association,
10.0%, 1/15/06 2,419
2,519 NR/NR Government National Mortgage Association,
10.0%, 1/15/18 2,746
38 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
520,057 NR/NR Government National Mortgage Association, I,
6.0%, 2/15/29 $ 517,165
55,698 NR/NR Government National Mortgage Association, I,
7.0%, 12/15/30 57,479
36,941 NR/NR Government National Mortgage Association, I,
7.0%, 3/15/31 38,114
19,118 NR/NR Government National Mortgage Association, I,
7.5%, 10/15/29 19,995
871,860 AAA/Aaa Government National Mortgage Association, II,
5.5%, 10/20/19 859,017
11,935 NR/NR Government National Mortgage Association, II,
6.5%, 2/20/29 12,072
5,894 NR/NR Government National Mortgage Association, II,
6.5%, 3/20/29 5,962
170,786 AAA/Aaa Government National Mortgage Association, II,
6.5%, 4/20/29 172,752
381,880 AAA/Aaa Government National Mortgage Association, II,
7.0%, 11/20/28 391,368
13,968 NR/NR Government National Mortgage Association, II,
7.0%, 12/20/30 14,319
135,000 AAA/Aaa U.S. Treasury Bonds, 3.125%, 10/15/08 129,168
4,600,000 AAA/Aaa U.S. Treasury Bonds, 4.0%, 2/15/14 4,273,326
43,200,000 AAA/Aaa U.S. Treasury Bonds, 4.25%, 11/15/13 40,881,370
35,000 AAA/Aaa U.S. Treasury Bonds, 4.25%, 8/15/13 33,206
4,815,000 AAA/Aaa U.S. Treasury Bonds, 5.25%, 11/15/28 4,792,427
43,900,000 AAA/Aaa U.S. Treasury Bonds, 6.25%, 8/15/23 48,416,915
135,000 AAA/Aaa U.S. Treasury Bonds, 7.125%, 2/15/23 161,515
1,000,000 AAA/Aaa U.S. Treasury Bonds, 8.0%, 11/15/21 1,278,906
27,506,864 AAA/Aaa U.S. Treasury Inflation Notes, 1.875%, 7/15/15 26,100,355
4,567,230 AAA/Aaa U.S. Treasury Inflation Notes, 2.0%, 1/15/16 4,361,526
1,456,481 AAA/Aaa U.S. Treasury Inflation Notes, 3.0%, 7/15/12 1,499,835
4,942,563 AAA/Aaa U.S. Treasury Inflation Protected Security,
2.375%, 4/15/11 4,923,065
2,042,064 AAA/Aaa U.S. Treasury Inflation Protected Security,
3.375%, 1/15/12 2,139,062
2,315 AAA/Aaa U.S. Treasury Inflation Protected Security,
3.5%, 1/15/11 2,421
2,000,000 AAA/Aaa U.S. Treasury Note 3.625%, 1/15/10 1,904,218
26,000,000 AAA/Aaa U.S. Treasury Notes, 3.625%, 6/15/10 24,646,180
9,925,000 AAA/Aaa U.S. Treasury Notes, 4.0%, 2/15/15 9,145,729
1,470,000 AAA/Aaa U.S. Treasury Notes, 4.25%, 11/15/14 1,382,489
The accompanying notes are an integral part of these financial statements. 39
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - (continued)
2,700,000 AAA/Aaa U.S. Treasury Notes, 4.875%, 2/15/12 $ 2,670,467
6,560,000 AAA/Aaa U.S. Treasury Notes, 5.5%, 8/15/28 6,739,888
105,000 AAA/Aaa U.S. Treasury Notes, 6.0%, 8/15/09 107,621
135,000 AAA/Aaa U.S. Treasury Notes, 7.0%, 7/15/06 135,053
12,800,000 AAA/Aaa U.S. Treasury Notes, 7.5%, 11/15/16 15,139,994
11,000,000 AAA/Aaa U.S. Treasury Strip, 0.0%, 11/15/13 7,568,781
4,550,000 AAA/Aaa U.S. Treasury Strip, 0.0%, 2/15/11 3,612,609
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS $582,451,768
------------
(Cost $537,474,937) $582,451,768
------------
MUNICIPAL BONDS - 0.1%
500,000 AAA/NR Tobacco Settlement Authority Iowa, 6.79%, 6/1/10 $ 510,980
------------
TOTAL MUNICIPAL BONDS
(Cost $500,000) $ 510,980
------------
TOTAL INVESTMENTS IN SECURITIES - 99.3%
(Cost: $833,213,045) (a) $816,051,480
------------
OTHER ASSETS AND LIABILITIES - 0.7% $ 5,880,491
------------
TOTAL NET ASSETS - 100.0% $821,931,971
============
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At June
30, 2006, the value of these securities amounted to $28,114,532 or 3.4%
of total net assets.
(a) At June 30, 2006 the net unrealized loss on investments based on cost
for federal income tax purposes of $834,928,671 was as follows:
Aggregate gross unrealized gain for all investments in which there
is an excess of value over tax cost. $ 5,617,251
Aggregate gross unrealized loss for all investments in which there
is an excess of tax cost over value. (24,494,442)
------------
Net Unrealized loss $(18,877,191)
============
Purchases and sales of securities (excluding temporary cash investments) for
the year ended June 30, 2006 were as follows:
Purchases Sales
Long-term US Government $390,997,088 $275,510,382
Other Long-term Securities 41,950,259 155,638,955
40 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 6/30/06
- -----------------------------------------------------------------------------
ASSETS:
Investment in securities (cost $833,213,045) $816,051,480
Cash 155,041
Receivables -
Fund shares sold 2,077,097
Interest 7,749,291
Due from Pioneer Investment Management, Inc. 72,135
Other 2,158
------------
Total assets $826,107,202
------------
LIABILITIES:
Payables -
Fund shares repurchased $ 2,036,877
Dividends 1,751,267
Due to affiliates 173,027
Accrued expenses 214,060
------------
Total liabilities $ 4,175,231
------------
NET ASSETS:
Paid-in capital $843,536,462
Undistributed net investment income 1,208,440
Accumulated net realized loss on investments (5,651,366)
Net unrealized loss on investments (17,161,565)
------------
Total net assets $821,931,971
============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $208,454,106/23,444,924 shares) $ 8.89
============
Class B (based on $49,551,789/5,599,573 shares) $ 8.85
============
Class C (based on $35,942,088/4,078,983 shares) $ 8.81
============
Investor Class (based on $3,461,993/389,245 shares) $ 8.89
============
Class R (based on $3,041,786/338,348 shares) $ 8.99
============
Class Y (based on $521,480,209/59,064,434 shares) $ 8.83
============
MAXIMUM OFFERING PRICE:
Class A ($8.89 [divided by] 95.5%) $ 9.31
============
The accompanying notes are an integral part of these financial statements. 41
Pioneer Bond Fund
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the Year Ended 6/30/06
- -----------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $35,567,917
Income from securities loaned, net 10,651
-----------
Total investment income $ 35,578,568
-------------
EXPENSES:
Management fees $ 3,675,428
Transfer agent fees and expenses
Class A 567,345
Class B 223,775
Class C 119,410
Investor Class 13,880
Class R 8,707
Class Y 13,568
Distribution fees
Class A 518,783
Class B 548,068
Class C 390,721
Class R 11,277
Administrative reimbursements 136,017
Custodian fees 33,542
Registration fees 176,298
Professional fees 102,475
Printing expense 58,859
Fees and expenses of nonaffiliated trustees 19,952
Miscellaneous 38,839
-----------
Total expenses $ 6,656,944
Less management fees waived and
expenses reimbursed by Pioneer
Investment Management, Inc. (280,911)
-------------
Net expenses $ 6,376,033
-------------
Net investment income $ 29,202,535
-------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $ 1,169,174
-------------
Change in net unrealized loss on investments $ (38,038,794)
-------------
Net loss on investments $ (36,869,620)
-------------
Net decrease in net assets resulting
from operations $ (7,667,085)
=============
42 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- -----------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------
For the Years Ended 6/30/06 and 6/30/05, respectively
Year Ended Year Ended
6/30/06 6/30/05
FROM OPERATIONS:
Net investment income $ 29,202,535 $ 10,838,294
Net realized gain on investments 1,169,174 5,924,830
Change in net unrealized gain (loss) on investments (38,038,794) 2,758,062
-------------- -------------
Net decrease (increase) in net assets resulting
from operations $ (7,667,085) $ 19,521,186
-------------- -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.39 and $0.47 per share, respectively) $ (8,907,383) $ (8,304,200)
Class B ($0.31 and $0.38 per share, respectively) (1,880,932) (2,287,184)
Class C ($0.32 and $0.39 per share, respectively) (1,376,068) (1,299,699)
Investor Class ($0.42 and $0.26 per
share, respectively) (181,120) (178,964)
Class R ($0.38 and $0.44 per share, respectively) (91,235) (40,890)
Class Y ($0.43 and $0.51 per share, respectively) (19,988,313) (778,239)
-------------- -------------
Total distributions to shareowners $ (32,425,051) $ (12,889,176)
-------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 261,100,711 $ 108,065,548
Shares issued in reorganization 582,614,812 9,260,087
Reinvestment of distributions 15,956,166 10,153,547
Cost of shares repurchased (297,471,664) (93,990,071)
-------------- -------------
Net increase in net assets resulting from fund
share transactions $ 562,200,025 $ 33,489,111
-------------- -------------
Net increase in net assets $ 522,107,889 $ 40,121,121
NET ASSETS:
Beginning of year 299,824,082 259,702,961
-------------- -------------
End of year (including undistributed net
investment income of $1,208,440 and $194,187,
respectively) $ 821,931,971 $ 299,824,082
============== =============
The accompanying notes are an integral part of these financial statements. 43
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
'06 Shares '06 Amounts '05 Shares '05 Amounts
CLASS A
Shares sold 7,982,595 $ 72,834,785 4,629,687 $ 43,254,133
Shares issued in reorganization 4,818,649 44,668,880 - -
Reinvestment of distributions 821,518 7,480,071 744,375 6,960,699
Less shares repurchased (8,698,451) (79,149,510) (4,329,910) (40,459,474)
---------- ------------- ---------- -------------
Net increase 4,924,311 $ 45,834,226 1,044,152 $ 9,755,358
=========== ============= ========== =============
CLASS B
Shares sold 2,005,535 $ 18,264,422 2,072,692 $ 19,272,139
Shares issued in reorganization 615,934 5,678,911 - -
Reinvestment of distributions 154,981 1,406,793 182,582 1,699,954
Less shares repurchased (3,250,901) (29,489,973) (2,499,953) (23,264,769)
---------- ------------- ---------- -------------
Net decrease (474,451) $ (4,139,847) (244,679) $ (2,292,676)
=========== ============= ========== =============
CLASS C
Shares sold 1,905,832 $ 17,283,129 2,724,251 $ 25,177,847
Reinvestment of distributions 115,414 1,044,467 105,060 974,901
Less shares repurchased (2,463,706) (22,284,483) (1,330,493) (12,355,814)
---------- ------------- ---------- -------------
Net increase (decrease) (442,460) $ (3,956,887) 1,498,818 $ 13,796,934
=========== ============= ========== =============
INVESTOR CLASS
Shares sold - $ - - $ -
Shares issued in
reorganization - - 985,115 9,260,087
Reinvestment of distributions 17,950 163,852 13,153 123,059
Less shares repurchased (106,887) (976,139) (520,086) (5,057,239)
---------- ------------- ---------- -------------
Net increase (decrease) (88,937) $ (812,287) 478,182 $ 4,325,907
=========== ============= ========== =============
CLASS R
Shares sold 288,594 $ 2,667,309 119,514 $ 1,130,666
Reinvestment of distributions 5,418 49,620 819 7,734
Less shares repurchased (88,228) (812,829) (24,978) (236,438)
---------- ------------- ---------- -------------
Net increase 205,784 $ 1,904,100 95,355 $ 901,962
=========== ============= ========== =============
CLASS Y
Shares sold 16,586,060 $ 150,051,066 2,069,705 $ 19,230,763
Shares issued in reorganization 57,855,111 532,267,021 - -
Reinvestment of distributions 645,641 5,811,363 41,689 387,200
Less shares repurchased (18,275,250) (164,758,730) (1,351,154) (12,616,337)
----------- ------------- ---------- -------------
Net increase 56,811,562 $ 523,370,720 760,240 $ 7,001,626
=========== ============= ========== =============
44 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/06 6/30/05 6/30/04 6/30/03 6/30/02 (a)
CLASS A
Net asset value, beginning of period $ 9.40 $ 9.18 $ 9.41 $ 8.89 $ 8.78
------- -------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.35 $ 0.40 $ 0.41 $ 0.45 $ 0.52
Net realized and unrealized gain (loss) on investments (0.47) 0.29 (0.14) 0.53 0.13
------- -------- -------- -------- --------
Net increase (decrease) from investment operations $ (0.12) $ 0.69 $ 0.27 $ 0.98 $ 0.65
Distributions to shareowners:
Net investment income (0.39) (0.47) (0.50) (0.46) (0.54)
------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ (0.51) $ 0.22 $ (0.23) $ 0.52 $ 0.11
------- -------- -------- -------- --------
Net asset value, end of period $ 8.89 $ 9.40 $ 9.18 $ 9.41 $ 8.89
======= ======== ======== ======== ========
Total return* (1.25)% 7.64% 2.98% 11.38% 7.58%
Ratio of net expenses to average net assets+ 1.00% 1.05% 1.14% 1.20% 1.16%
Ratio of net investment income to average net assets+ 3.91% 4.27% 4.42% 5.02% 5.79%
Portfolio turnover rate 60% 49% 63% 48% 59%
Net assets, end of period (in thousands) $208,454 $174,055 $160,421 $183,338 $143,713
Ratios with no assumption of expenses by PIM and no reduction for
fees paid indirectly:
Net expenses 1.11% 1.18% 1.14% 1.20% 1.16%
Net investment income 3.80% 4.14% 4.42% 5.02% 5.79%
Ratios with assumption of expenses by PIM and reduction for fees paid
indirectly:
Net expenses 1.00% 1.05% 1.14% 1.20% 1.16%
Net investment income 3.91% 4.27% 4.42% 5.02% 5.79%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratio with no reduction for fees paid indirectly.
(a) As a result of a change in accounting principle, the effect due to
mandatory accretion of discounts and amortization of premiums on debt
securities resulted in a reduction of net investment income of $0.02 per
share, an increase in net realized and unrealized gain (loss) on
investments of $0.02 per share, and the ratio of net investment income to
average net assets decreased by 0.18%.
The accompanying notes are an integral part of these financial statements.
45
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/06 6/30/05 6/30/04 6/30/03 6/30/02 (a)
CLASS B
Net asset value, beginning of period $ 9.36 $ 9.14 $ 9.37 $ 8.87 $ 8.77
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.27 $ 0.32 $ 0.33 $ 0.37 $ 0.44
Net realized and unrealized gain (loss) on investments (0.47) 0.28 (0.14) 0.53 0.14
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ (0.20) $ 0.60 $ 0.19 $ 0.90 $ 0.58
Distributions to shareowners:
Net investment income (0.31) (0.38) (0.42) (0.40) (0.48)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.51) $ 0.22 $ (0.23) $ 0.50 $ 0.10
------- ------- ------- ------- -------
Net asset value, end of period $ 8.85 $ 9.36 $ 9.14 $ 9.37 $ 8.87
======= ======= ======= ======= =======
Total return* (2.14)% 6.72% 2.04% 10.44% 6.78%
Ratio of net expenses to average net assets+ 1.90% 1.95% 1.98% 2.02% 1.95%
Ratio of net investment income to average net assets+ 3.06% 3.39% 3.55% 4.22% 5.02%
Portfolio turnover rate 60% 49% 63% 48% 59%
Net assets, end of period (in thousands) $49,552 $56,828 $57,774 $77,367 $59,729
Ratios with no assumption of expenses by PIM and no reduction for
fees paid indirectly:
Net expenses 1.99% 2.02% 1.98% 2.02% 1.95%
Net investment income 2.97% 3.32% 3.55% 4.22% 5.02%
Ratios with assumption of expenses by PIM and reduction for fees paid
indirectly:
Net expenses 1.90% 1.95% 1.98% 2.02% 1.95%
Net investment income 3.06% 3.39% 3.55% 4.22% 5.02%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratio with no reduction for fees paid indirectly.
(a) As a result of a change in accounting principle, the effect due to
mandatory accretion of discounts and amortization of premiums on debt
securities resulted in a reduction of net investment income of $0.02 per
share, an increase in net realized and unrealized gain (loss) on
investments of $0.02 per share, and the ratio of net investment income to
average net assets decreased by 0.18%.
The accompanying notes are an integral part of these financial statements.
46
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/06 6/30/05 6/30/04 6/30/03 6/30/02 (a)
CLASS C
Net asset value, beginning of period $ 9.32 $ 9.11 $ 9.31 $ 8.83 $ 8.73
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.28 $ 0.32 $ 0.33 $ 0.37 $ 0.44
Net realized and unrealized gain (loss) on investments (0.47) 0.28 (0.14) 0.51 0.12
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ (0.19) $ 0.60 $ 0.19 $ 0.88 $ 0.56
Distributions to shareowners:
Net investment income (0.32) (0.39) (0.39) (0.40) (0.46)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.51) $ 0.21 $ (0.20) $ 0.48 $ 0.10
------- ------- ------- ------- -------
Net asset value, end of period $ 8.81 $ 9.32 $ 9.11 $ 9.31 $ 8.83
======= ======= ======= ======= =======
Total return* (2.08)% 6.68% 2.11% 10.28% 6.55%
Ratio of net expenses to average net assets+ 1.89% 1.92% 1.97% 2.16% 2.14%
Ratio of net investment income to average net assets+ 3.07% 3.24% 3.59% 4.05% 4.78%
Portfolio turnover rate 60% 49% 63% 48% 59%
Net assets, end of period (in thousands) $35,942 $42,160 $27,545 $29,777 $18,067
Ratios with no assumption of expenses by PIM and no reduction for
fees paid indirectly:
Net expenses 1.89% 1.92% 1.97% 2.16% 2.15%
Net investment income 3.07% 3.24% 3.59% 4.05% 4.77%
Ratios with assumption of expenses by PIM and reduction for fees paid
indirectly:
Net expenses 1.89% 1.91% 1.97% 2.16% 2.15%
Net investment income 3.07% 3.25% 3.59% 4.05% 4.77%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratio with no reduction for fees paid indirectly.
(a) As a result of a change in accounting principle, the effect due to
mandatory accretion of discounts and amortization of premiums on debt
securities resulted in a reduction of net investment income of $0.02 per
share, an increase in net realized and unrealized gain (loss) on
investments of $0.02 per share, and the ratio of net investment income to
average net assets decreased by 0.18%.
The accompanying notes are an integral part of these financial statements.
47
Pioneer Bond Fund
- --------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------
Year Ended 12/10/04 (b)
6/30/06 to 6/30/05
INVESTOR CLASS
Net asset value, beginning of period $ 9.40 $ 9.40
------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.38 $ 0.22
Net realized and unrealized gain (loss)
on investments (0.47) 0.04
------- -------
Net increase (decrease) from investment operations $ (0.09) $ 0.26
Distributions to shareowners:
Net investment income (0.42) (0.26)
------- -------
Net decrease in net asset value $ (0.51) $ 0.00
------- -------
Net asset value, end of period $ 8.89 $ 9.40
======= =======
Total return* (0.98)% 2.84%(a)
Ratio of net expenses to average net assets+ 0.74% 0.74%**
Ratio of net investment income to average
net assets+ 4.24% 4.43%**
Portfolio turnover rate 60% 49%(a)
Net assets, end of period (in thousands) $ 3,462 $ 4,496
Ratios with no assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 0.94% 0.89%**
Net investment income 4.04% 4.28%**
Ratios with assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 0.74% 0.74%**
Net investment income 4.24% 4.43%**
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all 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.
(a) Not annualized.
(b) Investor class commenced operations on December 11, 2004.
48 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------
Year Ended Year Ended Year Ended 4/1/03 (a)
6/30/06 6/30/05 6/30/04 to 6/30/03
CLASS R
Net asset value, beginning of period $ 9.50 $ 9.28 $ 9.50 $ 9.19
------- ------- ------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.34 $ 0.36 $ 0.47 $ 0.10
Net realized and unrealized gain (loss) on investments (0.47) 0.30 (0.17) 0.32
------- ------- ------- --------
Net increase (decrease) from investment operations $ (0.13) $ 0.66 $ 0.30 $ 0.42
Distributions to shareowners:
Net investment income (0.38) (0.44) (0.52) (0.11)
------- ------- ------- --------
Net increase (decrease) in net asset value $ (0.51) $ 0.22 $ (0.22) $ 0.31
------- ------- ------- --------
Net asset value, end of period $ 8.99 $ 9.50 $ 9.28 $ 9.50
======= ======= ======= ========
Total return* (1.43)% 7.27% 3.20% 4.55%(b)
Ratio of net expenses to average net assets+ 1.25% 1.31% 1.32% 1.42%**
Ratio of net investment income to average net assets+ 3.50% 3.77% 4.71% 4.13%**
Portfolio turnover rate 60% 49% 63% 48%(b)
Net assets, end of period (in thousands) $ 3,042 $ 1,259 $ 345 $ 1
Ratios with no assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 1.46% 1.43% 1.32% 1.42%**
Net investment income 3.29% 3.65% 4.71% 4.13%**
Ratios with assumption of expenses by PIM and reduction
for fees paid indirectly:
Net expenses 1.25% 1.31% 1.32% 1.42%**
Net investment income 3.50% 3.77% 4.71% 4.13%**
(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 all 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.
(b) Not annualized.
49
Pioneer Bond Fund
- --------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------
9/20/01 (a)
Year Ended Year Ended Year Ended Year Ended to
6/30/06 6/30/05 6/30/04 6/30/03 6/30/02 (b)
CLASS Y
Net asset value, beginning of period $ 9.33 $ 9.12 $ 9.35 $ 8.87 $ 8.85
------- ------- ------- ------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.39 $ 0.44 $ 0.46 $ 0.51 $ 0.43
Net realized and unrealized gain (loss) on investments (0.46) 0.28 (0.14) 0.51 0.04
------- ------- ------- ------- --------
Net increase (decrease) from investment operations $ (0.07) $ 0.72 $ 0.32 $ 1.02 $ 0.47
Distributions to shareowners:
Net investment income (0.43) (0.51) (0.55) (0.54) (0.45)
------- ------- ------- ------- --------
Net increase (decrease) in net asset value $ (0.50) $ 0.21 $ (0.23) $ 0.48 $ 0.02
------- ------- ------- ------- --------
Net asset value, end of period $ 8.83 $ 9.33 $ 9.12 $ 9.35 $ 8.87
======= ======= ======= ======= ========
Total return* (0.77)% 8.07% 3.48% 11.86% 5.48%(c)
Ratio of net expenses to average net assets+ 0.58% 0.61% 0.58% 0.67% 0.64%**
Ratio of net investment income to average net assets+ 4.20% 4.43% 5.05% 5.54% 6.28%**
Portfolio turnover rate 60% 49% 63% 48% 59%(c)
Net assets, end of period (in thousands) $521,480 $21,027 $13,617 $ 7,719 $ 4,051
Ratios with no assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 0.58% 0.61% 0.58% 0.67% 0.64%**
Net investment income 4.20% 4.43% 5.05% 5.54% 6.28%**
Ratios with assumption of expenses by PIM and reduction
for fees paid indirectly:
Net expenses 0.58% 0.61% 0.58% 0.67% 0.64%**
Net investment income 4.20% 4.43% 5.05% 5.54% 6.28%**
(a) Class Y shares were first publicly offered on September 20, 2001.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, 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.
(b) As a result of a change in accounting principle, the effect due to
mandatory accretion of discounts and amortization of premiums on debt
securities resulted in a reduction of net investment income of $0.02 per
share, an increase in net realized and unrealized gain (loss) on
investments of $0.02 per share, and the ratio of net investment income to
average net assets decreased by 0.23%.
(c) Not annualized.
50
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/06
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Bond Fund (the Fund) is a Delaware statutory trust registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The investment objectives of the Fund are to seek current income
consistent with preservation of capital.
The Trustees have authorized the issuance of six classes of shares of the Fund.
The Fund offers six classes of shares designated as Class A, Class B, Class C,
Investor Class, Class R, and Class Y shares. Class R shares were first publicly
offered 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. All Investor Class shares of the Fund, whenever issued, convert to
Class A shares of the Fund on December 10, 2006. Each class of shares represents
an interest in the same portfolio of investments of the Fund and has equal
rights to voting, redemptions, dividends and liquidation, except that each class
of shares can bear different transfer agent and distributions fees and has
exclusive voting rights with respect to the distribution plans that have been
adopted by Class A, Class B, Class C, and Class R shareowners, respectively.
There is no distribution plan for Class Y shares and Investor Class shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates. The following is a
summary of significant accounting policies followed by the Fund in the
preparation of its financial statements, which are consistent with those
policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Securities are valued at
prices supplied by independent pricing services, which consider such factors
as Treasury spreads, yields, maturities
51
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
and ratings. Valuations may be supplemented by dealers and other sources, as
required. 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. At June 30, 2006 there were no securities
fair valued. Principal amounts of mortgage-backed securities are adjusted for
monthly paydowns. Temporary cash investments are valued at amortized cost.
All discounts/premiums on debt securities are accreted/amortized for
financial reporting purposes over the life of the respective securities, and
are included in interest income. Market discount and premium are accreted or
amortized daily. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the underlying monthly
paydowns. Interest income is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
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 Fund's distributions may be shown in
the accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
At June 30, 2006 the Fund had a net capital loss carryforward of $2,562,465
of which $1,096,027 will expire in 2009, $77,493 will expire in 2010,
$1,084,416 will expire in 2011 and $304,529 will expire in 2013, if not
utilized.
Utilization of these capital losses could be subject to limitations imposed
by the Internal Revenue Code.
52
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has elected to defer approximately $1,373,275 of capital losses
recognized between November 1, 2005 and June 30, 2006 to its fiscal year
ending June 30, 2007.
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 years ended June 30, 2006 and 2005 were as follows:
- --------------------------------------------------------------------------------
2006 2005
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $32,425,051 $12,889,176
----------- -----------
Total $32,425,051 $12,889,176
=========== ===========
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at June 30, 2006.
- --------------------------------------------------------------------------------
2006
- --------------------------------------------------------------------------------
Undistributed ordinary income $ 2,959,707
Undistributed long-term loss (2,562,465)
Post October loss deferred (1,373,275)
Dividends payable (1,751,267)
Unrealized appreciation $(18,877,191)
------------
Total $(21,604,491)
============
- --------------------------------------------------------------------------------
The difference between book basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales and the tax
treatment of amortization.
At June 30, 2006, the Fund reclassified $4,236,769 to increase undistributed
net investment income and $4,194,196 to increase accumulated net realized
loss and $42,573 to decrease paid in capital. This reclassification has no
impact on the net assets of the Fund and presents the Fund's capital accounts
on a tax basis.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredito
53
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
Italiano S.p.A., (UniCredito Italiano), earned $58,305 in underwriting
commissions on the sale of Class A shares during the year 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 Fund,
respectively. Class Y and 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 Fund 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 Fund declares as daily dividends substantially all of its net investment
income. All dividends are paid on a monthly basis. Short-term capital gain
distributions, if any, may be declared with the daily dividends.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that each class of shares can bear different transfer agent and
distribution fees.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest received
from the counterparties, is required to be at least equal to or in excess of
the value of the repurchase agreement at the time of purchase. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian, or subcustodians. The Fund's investment
adviser, Pioneer Investment Management, Inc. (PIM), is responsible for
determining that the value of the collateral remains at least equal to the
repurchase price.
54
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
F. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors, with the Fund's custodian acting as the lending
agent. When entering into a loan, the Fund receives collateral, which is
maintained by the custodian and earns income in the form of negotiated
lenders' fees. The Fund also continues to receive interest or payments in
lieu of dividends on the securities loaned. Gain or loss on the fair value of
the loaned securities that may occur during the term of the loan will be for
the account of the Fund. The loans are secured by collateral of at least 102%
at all times, of the fair value of the securities loaned. The amount of the
collateral will be adjusted daily to reflect any price fluctuation in the
value of loaned securities. The Fund has the right under the lending
agreements to recover the securities on loan from the borrower on demand. The
Fund invests cash collateral in the Securities Lending Investment Fund, which
is managed by Brown Brothers Harriman & Co., the Fund's custodian.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, manages the
Fund's portfolio. Management fees are calculated daily at the annual rate of
0.50% of the Fund's average daily net assets.
Effective November 1, 2005, PIM has agreed to limit ordinary operating expenses
to the extent required to reduce Fund expenses to 1.00%, 1.90%, 1.90% and 1.25%
of the average daily net assets attributable to Class A, Class B, Class C and
Class R shares, respectively. Class Y shares do not have an expense limitation.
These expense limitations are in effect through November 1, 2008 for Class A
shares and through November 1, 2006 for Class B, Class C and Class R shares. PIM
expects to continue its limitation of expenses unless the expense limit
agreement with the Fund is terminated pursuant to the terms of the expense limit
agreement. However, there can be no assurance that PIM will extend the expense
limitation beyond November 1, 2008 for Class A shares and November 1, 2006 for
Class B, Class C and Class R shares. The Fund may terminate the expense
limitation agreement at any time; provided, however, that the Board of Trustees
would not take such action unless it determined termination of the agreement be
in the best interests of the Fund and its shareowners.
55
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
Through December 10, 2006, PIM has contractually 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 Fund. At June 30, 2006, $10,820 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 Fund at
negotiated rates. Included in due to affiliates is $158,412 in transfer agent
fees payable to PIMSS at June 30, 2006.
4. Distribution and Service Plans
The Fund adopted a Plan 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 Fund pays PFD a service fee of up to 0.25% of the average daily net assets
attributable to Class A shares in reimbursement of its actual expenditures to
finance activities primarily intended to result in the sale of Class A shares.
Pursuant to the Class B Plan and the Class C Plan, the Fund pays PFD 1.00% of
the average daily net assets attributable to each class of shares. The fee
consists of a 0.25% service fee and a 0.75% distribution fee both paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class B and Class C shares. Pursuant to the
Class R Plan, the Fund pays PFD 0.50% of the average daily net assets
attributable to Class R shares for distribution services paid as compensation
for personal services and/or account maintenance services or distribution
services. The Fund also has adopted a separate service plan for Class R shares
(Service Plan). The Service Plan authorizes the Fund to pay securities dealers,
plan administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Fund a
56
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
service fee of up to 0.25% of the Fund's average daily net assets attributable
to Class R shares held by such plans. Included in due to affiliates is $3,795 in
distribution fees payable to PFD at June 30, 2006.
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 year ended June 30, 2006, $156,730 in CDSCs
were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended June 30, 2006, the Fund's expenses were
not reduced under such arrangements.
6. Merger Information
On December 8, 2004, beneficial owners of Safeco Intermediate Term Bond Fund
(one of the series that comprised Safeco Taxable Bond Trust) approved a proposed
Agreement and Plan of Reorganization that provided for the merger listed 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"):
57
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/06 (continued)
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
Safeco
Pioneer Intermediate Pioneer
Bond Fund Term Bond Fund Bond Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- ---------------------------------------------------------------------------------------------------
Net Assets $257,177,281 $9,260,087 $266,437,368
Shares Outstanding 27,433,514 1,085,975 28,418,629
Investor Class
Shares Issued 985,115
Unrealized
Appreciation Accumulated
on Closing Date Gain
- ---------------------------------------------------------------------------------------------------
Sefeco Intermediate
Term Bond Fund $ 176,429 $ 26,968
- ---------------------------------------------------------------------------------------------------
In addition, on September 22, 2005, beneficial owners of Amsouth High Quality
Bond approved a proposed Agreement and Plan of Reorganization that provided for
the merger listed below. This tax-free reorganization was accomplished on
September 23, 2005, by exchanging all of Amsouth High Quality Bond's net assets
in Class A, Class B and Class I for Pioneer Fund's Shares, based on Pioneer
Fund's Class A, Class B and Class Y shares' ending net asset value,
respectively. The following charts show the details of the reorganizations as of
that closing date ("Closing Date"):
58
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
Pioneer Amsouth Pioneer
Bond Fund High Quality Bond Bond Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- ---------------------------------------------------------------------------------------------------
Net Assets
Class A $178,317,842 $ 44,668,880 $222,986,722
Class B $ 58,181,919 $ 5,678,911 $ 63,860,830
Class C $ 42,851,287 $ - $ 42,851,287
Investor Class $ 4,095,750 $ - $ 4,095,750
Class R $ 1,678,306 $ - $ 1,678,306
Class I $ - $532,267,021 $
Class Y $ 27,130,385 $ - $559,397,406
Total Net Assets $312,255,489 $582,614,812 $894,870,301
Shares Outstanding
Class A 19,242,520 4,085,199 24,061,169
Class B 6,307,434 520,998 6,923,368
Class C 4,661,389 4,661,389
Investor Class 441,773 441,773
Class R 179,118 179,118
Class I 48,671,755
Class Y 2,947,361 60,802,472
Total Shares
Outstanding 33,779,595 53,277,952 97,069,289
Shares Issued
in Reorganization
Class A 4,818,649
Class B 615,934
Class Y 57,855,111
Unrealized Accumulated
Appreciation Gain on
on Closing Date Closing Date
- ---------------------------------------------------------------------------------------------------
Amsouth High
Quality Bond $ 15,276,095 $ 2,768,070
- ---------------------------------------------------------------------------------------------------
59
Pioneer Bond Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of
Pioneer Bond Fund:
We have audited the accompanying statement of assets and liabilities of Pioneer
Bond Fund (the "Fund"), including the schedule of investments, as of June 30,
2006, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of June 30, 2006, by correspondence with the custodian. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Bond Fund at June 30, 2006, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended, in conformity with U.S. generally accepted accounting
principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
August 11, 2006
60
Pioneer Bond Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Board of Trustees provides broad supervision over the Fund's affairs.
The officers of the Fund are responsible for the Fund's operations. The Fund's
Trustees and officers are listed below, together with their principal
occupations during the past five years. Trustees who are interested persons of
the Fund within the meaning of the Investment Company Act of 1940 are referred
to as Interested Trustees. Trustees who are not interested persons of the Fund
are referred to as Independent Trustees. Each of the Trustees serves as a
trustee of each of the 89 U.S. registered investment portfolios for which
Pioneer Investment Management, Inc. ("Pioneer") serves as investment adviser
(the "Pioneer Funds"). The address for all Interested Trustees and all officers
of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Fund's statement of additional information provides more detailed
information regarding the Fund's Trustees and is available upon request, without
charge, by calling 1-800-225-6292.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at www.pioneerinvestments.com and on the SEC's web site at http://www.sec.gov.
61
Pioneer Bond Fund
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation During Other Directorships Held
Name and Age With the Fund and Term of Office Past Five Years by this Trustee
John F. Cogan, Jr. (80)* Chairman of Trustee since 1996. Deputy Chairman and a Director of Director of ICI Mutual
the Board, Serves until Pioneer Global Asset Management Insurance Company;
Trustee and successor trustee is S.p.A. ("PGAM"); Non-Executive Director of Harbor
President elected or earlier Chairman and a Director of Pioneer Global Company, Ltd.
retirement or Investment Management USA Inc.
removal. ("PIM-USA"); Chairman and a
Director of Pioneer; Chairman and
Director of Pioneer Institutional
Asset Management, Inc. (since
2006); Director of Pioneer
Alternative Investment Management
Limited (Dublin); President and a
Director of Pioneer Alternative
Investment Management (Bermuda)
Limited and affiliated funds;
Director of PIOGLOBAL Real Estate
Investment Fund (Russia) (until
June 2006); Director of Nano-C,
Inc. (since 2003); Director of Cole
Investment Corporation (since
2004); Director of Fiduciary
Counseling, Inc.; President and
Director of Pioneer Funds
Distributor, Inc. ("PFD") (until
May 2006); President of all of the
Pioneer Funds; and Of Counsel,
Wilmer Cutler Pickering Hale and
Dorr LLP (counsel to PIM-USA and
the Pioneer Funds)
*Mr. Cogan is an Interested Trustee because he is an officer or director of Pioneer and certain of its affiliates.
- -----------------------------------------------------------------------------------------------------------------------------------
62
Pioneer Bond Fund
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation During Other Directorships Held
Name, Age and Address With the Fund and Term of Office Past Five Years by this Trustee
David R. Bock **(62) Trustee Trustee since 2005. Senior Vice President and Chief Director of The Enterprise
3050 K. Street NW, Serves until successor Financial Officer, I-trax, Inc. Social Investment
Washington, DC 20007 trustee is elected or (publicly traded health care Company (privately-held
earlier retirement or services company) (2001 - present); affordable housing
removal. Managing Partner, Federal City finance company);
Capital Advisors (boutique merchant Director of New York
bank) (2002 to 2004); Executive Mortgage Trust (publicly
Vice President and Chief Financial traded mortgage REIT).
Officer, Pedestal Inc.
(internet-based mortgage trading
company) (2000 - 2002).
**Mr. Bock became a Trustee of the Fund on January 1, 2005.
- -----------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (58) Trustee Trustee since 1997. President, Bush International Director of Brady
3509 Woodbine Street, Serves until (international financial advisory Corporation (industrial
Chevy Chase, MD 20815 successor trustee firm). identification and
is elected or earlier specialty coated
retirement or removal. material products
manufacturer), Director
of Mortgage Guaranty
Insurance Corporation,
and Briggs & Stratton,
Inc. (engine
manufacturer)
- -----------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham Trustee Trustee since 1996. Founding Director, The Winthrop None
(59) Serves until Group, Inc. (consulting firm);
1001 Sherbrooke successor trustee Desautels, Faculty of Management,
Street West, is elected or earlier McGill University.
Montreal, Quebec, retirement or removal.
Canada H3A 1G5
- -----------------------------------------------------------------------------------------------------------------------------------
63
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation During Other Directorships Held
Name, Age and Address With the Fund and Term of Office Past Five Years by this Trustee
Marguerite A. Piret (58) Trustee Trustee since 1996. President and Chief Executive Director of New America
One Boston Place, 28th Floor, Serves until Officer, Newbury, Piret & High Income Fund, Inc.
Boston, MA 02108 successor trustee Company, Inc. (investment (closed-end investment
is elected or earlier banking firm). company).
retirement or removal.
- -----------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (55) Trustee Trustee since February Private investor (2004 - Director of Quadriserv
89 Robbins Avenue, 2006. Serves until present); Senior Executive Inc. (technology
Berkeley Heights, NJ 07922 successor trustee is Vice President, The Bank of products for securities
elected or earlier New York (financial and lending industry)
retirement or removal. securities services) (1986 -
2004).
- -----------------------------------------------------------------------------------------------------------------------------------
John Winthrop (70) Trustee Trustee since 1996. President, John Winthrop & None
One North Adgers Wharf, Serves until Co., Inc. (private investment
Charleston, SC 29401 successor trustee firm).
is elected or earlier
retirement or removal.
- -----------------------------------------------------------------------------------------------------------------------------------
64
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation During Other Directorships Held
Name and Age With the Fund and Term of Office Past Five Years by this Officer
Osbert M. Hood (53) Executive Vice Since June 2003. President and Chief Executive Trustee of certain
President Serves at the Officer, PIM-USA since May 2003 Pioneer Funds
discretion of (Director since January 2001;
the Board. Executive Vice President and Chief
Operating Officer from November
2000 - May 2003); Director of PGAM
since June 2003; President and
Director of Pioneer since May 2003;
President and Director of Pioneer
Institutional Asset Management,
Inc. since February 2006; Chairman
and Director of Pioneer Investment
Management Shareholder Services,
Inc. ("PIMSS") since May 2003;
Director of PFD since May 2006;
Director of Oak Ridge Investments,
L.L.C. (a registered investment
adviser in which PIM USA owns a
minority interest) since January
2005; Director of Vanderbilt
Capital Advisors, LLC (an
institutional investment adviser
wholly-owned by PIM USA) since June
2006; Executive Vice President of
all of the Pioneer Funds since June
2003
- -----------------------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (58) Secretary Since September, Secretary of PIM-USA; Senior Vice None
2003. Serves President - Legal of Pioneer; and
at the discretion of Secretary/Clerk of most of
the Board. PIM-USA's subsidiaries; Secretary
of all of the Pioneer Funds since
September 2003 (Assistant Secretary
from November 2000 to September
2003). Assistant Vice President and
Senior Counsel of
- -----------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (41) Assistant Since September, Pioneer since July 2002; Vice None
Secretary 2003. Serves at President and Senior Counsel of
the discretion of BISYS Fund Services, Inc. (April
the Board. 2001 to June 2002); Senior Vice
President and Deputy General
Counsel of Funds Distributor, Inc.
(July 2000 to April 2001; Assistant
Secretary of all Pioneer Funds
since September 2003.
- -----------------------------------------------------------------------------------------------------------------------------------
65
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation During Other Directorships Held
Name and Age With the Fund and Term of Office Past Five Years by this Officer
Christopher P. Harvey (45) Assistant Since July 2006 Partner, Wilmer Cutler Pickering None
Secretary Serves at the Hale and Dorr LLP; and Assistant
discretion of the Secretary of all Pioneer Funds
Board. since July 2006
- ------------------------------------------------------------------------------------------------------------------------------
Vincent Nave (61) Treasurer Since November, Vice President - Fund Accounting, None
2000. Serves at Administration and Custody Services
the discretion of of Pioneer; and Treasurer of all of
the Board. the Pioneer Funds.
- ------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (46) Assistant Since November, Deputy Treasurer of Pioneer since None
Treasurer 2004. Serves 2004; Treasurer and Senior Vice
at the discretion President, CDC IXIS Asset
of the Board. Management Services from 2002 to
2003; Assistant Treasurer and Vice
President, MFS Investment
Management from 1997 to 2002; and
Assistant Treasurer of all of the
Pioneer Funds since November 2004.
- ------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (41) Assistant Since November, Assistant Vice President - Fund None
Treasurer 2000. Serves Accounting, Administration and
at the discretion Custody Services of Pioneer; and
of the Board. Assistant Treasurer of all of the
Pioneer Funds.
- ------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (48) Assistant Since May, 2002. Fund Accounting Manager - Fund None
Treasurer Serves at the Accounting, Administration and
discretion of Custody Services of Pioneer; and
the Board. Assistant Treasurer of all of the
Pioneer Funds since May 2002.
- ------------------------------------------------------------------------------------------------------------------------------
66
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation During Other Directorships
Name and Age With the Fund and Term of Office Past Five Years Held by this Officer
Katherine Kim Sullivan (32) Assistant Treasurer Since September, Fund Administration Manager - Fund None
Terrence J. Cullen (45) Chief Compliance 2003. Serves Accounting, Administration and
Officer at the discretion of Custody Services since June 2003;
the Board. Assistant Vice President - Mutual
Fund Operations of State Street
Corporation from June 2002 to June
2003 (formerly Deutsche Bank Asset
Management); Pioneer Fund
Accounting, Administration and
Custody Services (Fund Accounting
Manager from August 1999 to May
2002); Assistant Treasurer of all
Pioneer Funds since September 2003.
- -----------------------------------------------------------------------------------------------------------------------------------
Terrence J. Cullen (45) Chief Compliance Since March 2006. Chief Compliance Officer of Pioneer None
Officer Serves at the and Pioneer Funds since March 2006;
discretion of Vice President and Senior Counsel
the Board. of Pioneer since September 2004;
and Senior Vice President and
Counsel, State Street Research &
Management Company (February 1998
to September 2004).
- -----------------------------------------------------------------------------------------------------------------------------------
The outstanding capital stock of PFD, PIM and PIMSS is indirectly wholly owned
by UniCredito Italiano S.p.A. ("UniCredito Italiano"), one of the largest
banking groups in Italy. PIM, the Fund's investment adviser, provides investment
management and financial services to mutual funds, institutional and other
clients.
67
- --------------------------------------------------------------------------------
This page for your notes.
68
- --------------------------------------------------------------------------------
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 Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund 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.
N/A
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Audit Fees
Fees for audit services provided to
the Fund, including fees associated
with the filings of its Form N-1A,
totaled approximately $39,535 in
2006 and approximately $49,795 in
2005.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no audit-related services
in 2006 or 2005.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Tax Fees
Fees for tax compliance services,
primarily for tax returns, totaled
$7,140 in 2006 and $6,800 in 2005.
(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.
Other Fees
There were no other services
provided to the Fund during the
fiscal years ended June 30, 2006 and
2005.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the
Fund and affiliates, as previously
defined, totaled approximately
$7,140 in 2006 and $6,800 in 2005.
(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.