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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 811-21569
Pioneer Ibbotson Asset Allocation Series
(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: July 31
Date of reporting period: August 1, 2006 through January 31, 2007
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.
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PIONEER
-----------------------
IBBOTSON ASSET ALLOCATION SERIES
Semiannual
Report
1/31/07
[LOGO]Pioneer
Investments(R)
Table of Contents
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Letter to Shareowners 2
Market Overview and Outlook 4
Comparing Ongoing Fund Expenses 7
Portfolio Reviews 15
Prices and Distributions 17
Conservative Allocation Fund - Portfolio Summary and
Performance Update 19
Moderate Allocation Fund - Portfolio Summary and
Performance Update 24
Growth Allocation Fund - Portfolio Summary and
Performance Update 29
Aggressive Allocation Fund - Portfolio Summary and
Performance Update 34
Schedule of Investments 39
Financial Statements 43
Notes to Financial Statements 65
Factors Considered by the Independent Trustees in
Approving the Management Contract 76
Trustees, Officers and Service Providers 100
Chairman's
Dear Shareowner,
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As the global economy reacted to good and bad news of 2006, overall it managed
to keep chugging along with fairly stable growth. Looking back, the economic
stories included slowing economic growth bringing monetary tightening to an end
in the United States, price action in oil and other commodity markets
threatening to unsettle global growth and inflation, geopolitical uncertainties
and corporate earnings growth surpassing market expectations.
Global growth surpassed most analyst expectations in 2006. The International
Monetary Fund estimates world output increased by 5.1% in 2006, up from 4.9% in
2005 and above the 3.7% average annual pace of growth of the previous 20 years.
Growth is estimated to slow modestly in 2007 but to remain well above the
long-term average.
U.S. economic growth slowed gradually over 2006, with estimated full-year growth
of GDP of 3.3%, modestly below 2005 growth but still strong enough to lower the
unemployment rate to 4.5%. While many observers were concerned that a weakening
housing sector could be a drag on consumer spending, the consumer has shown
resilience supported by a strong labor market and associated income growth and
by oil and gasoline prices falling from record highs in the second half of the
year. Corporate America has also proved resilient in the face of the slowing
housing sector, with business investment growing at its fastest rate since 2000.
The Federal Reserve stopped increasing interest rates in mid-2006, but has
retained its bias to raise rates, reflecting upside risks to inflation,
particularly from the tight labor market, and confidence that the economy
remained on solid ground. Consumers welcomed the relief from oil prices that
peaked at mid-year, and fell sharply towards year end. Likewise, they benefited
from core inflation (which excludes energy and food items) that has eased
modestly in the second half of the year, but remains above what is generally
considered the central bank's "comfort zone."
The European economy surpassed many economists' expectations in 2006. Eurozone
GDP grew at a 3% pace, much stronger than its 1.8% average annual growth pace
since 2000. Underlying this strength has been buoyant and broad-based strength
in business sentiment and investment and in exports. While household consumption
showed mixed results, the unemployment rate fell to 7.7% by the end of 2006. The
European Central Bank raised interest rates gradually to 3.50% over the course
of 2006, reflecting firm economic growth, steadily tightening labor market
conditions, and fast growing money supply. Core inflation in the Eurozone
remains reasonably benign, at roughly 1.5% per annum. European stock markets
posted strong returns; appreciation of the Euro relative to both the dollar and
Yen made the Eurozone stock market the top performer of 2006.
The Japanese economy continued to grow firmly in 2006, although the pace of
expansion slowed in the second half of the year. Business investment was the
major driver of expansion as increasing capacity utilization and better
sentiment encouraged a new wave of investment. As deflation ended, the Bank of
Japan ended its zero interest
2
Letter
rate policy, although it has raised rates to only 0.25% thus far. After a strong
showing in 2005, the Japanese stock market posted only muted gains in 2006.
Emerging economies enjoyed strong, relatively uninterrupted economic growth in
2006. Good financing conditions, buoyant commodity prices, which boosted income
and investment in commodity exporting countries, and strong export demand from
developed economies drove this growth. The emerging market stock index was very
strong in early 2006, declined to near start-of-year levels, then rallied to
finish the year only marginally behind the Eurozone. We believe similar growth
can be expected in the emerging markets if current domestic economic and
political conditions prevail.
While global economic momentum has started to slow, we expect the global economy
to continue growing firmly in 2007, supported by business investment, rising
employment, and lower energy prices. A slowdown in the U.S. growth rate would be
welcome, since rapid growth could increase the risk of inflationary pressures,
which would force the Federal Reserve to raise interest rates. We expect Europe
and Japan to grow similarly, while emerging market economies are expected to
continue their strong growth. In this scenario, fixed-income assets are expected
to produce total returns generally in line with their current yields, while
equities are expected to produce returns generally in line with earnings growth,
which we forecast to be moderately above bond yields.
Our cautiously optimistic outlook on most regions of the world and asset classes
reinforces the importance of Pioneer Investments' message that investors should
remain diversified; take a long-term view rather than over-reacting to breaking
news, 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 Fund shareowners work toward
their long-term goals.
Respectfully,
/s/ John F. Cogan Jr.
John F. Cogan Jr., Chairman
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Portfolio's historical or future performance are
statements of the opinion of a portfolio's management as of the date of this
report. These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Ibbotson Asset Allocation Series
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MARKET OVERVIEW AND OUTLOOK 1/31/07
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In the following interview, portfolio manager Peng Chen, Chief Investment
Officer for Ibbotson Associates Advisors, LLC, discusses the market environment
and investment strategies that applied to the portfolios in the Pioneer Ibbotson
Asset Allocation Series for the semiannual period ended January 31, 2007.
Q. Could you characterize the economic and market backdrop during the six months
ended January 31, 2007?
A. Economic growth showed some signs of moderating, led in particular by a
softening in the housing sector. At its August 2006 meeting, after 17
consecutive quarter point increases in the Fed funds rate, the Federal
Reserve paused, leaving the benchmark short-term rate at 5.25%. Longer-term
interest rates fell sharply early in the period, but ended the six months
only slightly lower. As a result, bond prices, which move in the opposite
direction of interest rates, generally rose slightly for the full period. As
the period ended, the yield curve (which depicts the relationship between
bond maturities and yields) was inverted, with short-term rates higher than
those of long-term rates. The U.S. equity markets provided strong positive
returns, led again by small-cap and value-oriented stocks, while
international equities provided even stronger returns for the period.
Q. What were the tactical considerations that you applied to the four funds in
allocating assets?
A. For each portfolio, assets have been invested in keeping with their broad
asset allocation and specific mutual fund targets. Within this strategic
framework, we implemented three tactical shifts across all the portfolios.
Within the U.S. stock portion of the portfolios, we have maintained a slight
overweighting of U.S. large-capitalization stocks relative to small-cap
stocks. We have done this for a number of reasons. First, although small-cap
stocks have historically outperformed large caps over long periods, there is
a cyclical aspect to this performance leadership. In addition, we believe
small-cap stocks may be overvalued at current levels. Finally, large-cap
stocks may be more resilient if the economy slows as a result of higher
interest rates. The weighting did not have a material impact on performance,
but there were increasing signs as the semiannual period drew to a close that
a cycle of large-cap performance leadership may begin reasonably soon. With
respect to the other equity categories, exposure remained neutral throughout
the period. We have also maintained neutral target weightings in the non-U.S.
equity markets, both developed and emerging.
A second emphasis has been within the bond portion of the portfolios, where
we have continued to underweight the long-term bond vehicle, with the
difference allocated to the shorter-term fixed-income alternative. While it
is difficult to predict the direction for long-term interest rates over the
short term, over time we do expect long-term bond yields to trend higher,
with corresponding downward pressure on prices of these issues. In
4
Pioneer Ibbotson Asset Allocation Series
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addition, short-term rates have become much more attractive given the Federal
Reserve Board's raising of the benchmark rate. In view of these factors, we
believe the risk/reward profile is more favorable among shorter term issues.
Elsewhere within fixed income, we have maintained neutral positions in the
high-yield bond offering, as well as in the non-U.S. fixed-income option.
Finally, we continue to underweight REITs (Real Estate Investment Trusts).
REITs are traditionally most attractive to investors seeking income return,
and these issues benefited from the period of low interest rates experienced
in the recent past. As rates have risen, REIT yields have reached
historically low levels relative to Treasury bonds. At the same time, REITs
in the aggregate are priced at roughly double the general stock market, as
gauged by traditional valuation measures such as price-to-earnings ratio. In
addition to appearing fully valued when compared to both bonds and the rest
of the stock market, REITs may be vulnerable to higher market interest rate
levels, which we expect to lead to continued cooling in the real estate
sector. While REITs have thus far continued to defy gravity, we are
comfortable with our positioning in view of our risk/reward assessment.
Q. What factors are you watching most closely as you determine allocations for
the funds going forward?
A. Overall, our outlook is for a relatively stable economic backdrop. Core
inflation continues to run at the upper end of the Fed's comfort zone and the
job market has produced surprisingly solid numbers. These factors suggest
that the next movement of the Fed funds rate may be upwards. We anticipate
continued weakness in the dollar in view of the U.S. trade, budget and
savings deficits. This also implies the likelihood of higher interest rate
levels and relatively low returns for bonds. We are evaluating high yield
bonds in particular for possible underweighting in view of credit spreads
that are at historical lows.
We see nothing to prevent solid U.S. stock market performance over the second
half of the fiscal period. In view of our outlook for the dollar, however, we
are evaluating overseas markets for a possible overweighting as valuations
permit. We anticipate further softening in the real estate sector, and will
be closely watching for any impact that may have on the broader economy.
Going forward, we will continue to monitor economic indicators and interest
rates to evaluate whether we need to adjust the views underlying our
allocations.
5
Pioneer Ibbotson Asset Allocation Series
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MARKET OVERVIEW AND OUTLOOK 1/31/07 (continued)
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Each portfolio's performance depends on the adviser's skill in determining the
strategic asset class allocations, the mix of underlying Pioneer funds, as well
as the performance of those underlying funds. The underlying funds' performance
may be lower than the performance of the asset class that they were selected to
represent. Stocks and bonds can decline due to adverse issuer, market,
regulatory, or economic developments. International markets may be less liquid
and can be more volatile than U.S. markets. These risk factors, including those
associated with currency exchange rates, also apply to investments in
international markets, all of which make international markets more volatile and
less liquid than investments in domestic markets. Some of the underlying funds
can invest in either high-yield securities or small/emerging growth companies.
Investments in these types of securities generally are subject to greater
volatility than either higher-grade securities or more-established companies,
respectively. Before making an investment in any portfolio, you should consider
all the risks associated with it.
Please see the Portfolio Reviews beginning on page 15 for information on
specific weightings and performance for each of the four portfolios in the
Pioneer Ibbotson Asset Allocation Series.
Any information in this shareholder report regarding market or economic trends
or the factors influencing each portfolios' historical or future performance are
statements of the opinion of the portfolios' management as of the date of this
report. These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
6
Pioneer Ibbotson Conservative Allocation Fund
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COMPARING ONGOING FUND EXPENSES 1/31/07
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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 Ibbotson Conservative Allocation
Fund
Based on actual returns from August 1, 2006 through January 31, 2007.
Share Class A B C Y
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Beginning Account Value
On 8/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/07 $1,063.80 $1,059.40 $1,058.60 $1,061.10
Expenses Paid During Period* $ 7.65 $ 12.30 $ 12.30 $ 9.20
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.47%, 2.37%, 2.37%
and 1.77% for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 184/365 (to reflect the one-half year period)
to calculate the "Expenses Paid During Period" in the table above.
7
Pioneer Ibbotson Conservative Allocation Fund
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COMPARING ONGOING FUND EXPENSES 1/31/07 (continued)
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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 Ibbotson Conservative Allocation
Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from August 1, 2006 through January 31, 2007.
Share Class A B C Y
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Beginning Account Value
On 8/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/07 $1,017.80 $1,013.26 $1,013.26 $1,016.28
Expenses Paid During
Period* $ 7.48 $ 12.03 $ 12.03 $ 9.00
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.47%, 2.37%, 2.37%
and 1.77% for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 184/365 (to reflect the one-half year period)
to calculate the "Expenses Paid During Period" in the table above.
8
Pioneer Ibbotson Moderate Allocation Fund
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COMPARING ONGOING FUND EXPENSES 1/31/07
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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 Ibbotson Moderate Allocation
Fund
Based on actual returns from August 1, 2006 through January 31, 2007.
Share Class A B C Y
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Beginning Account Value
On 8/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/07 $1,097.90 $1,093.70 $1,093.80 $1,100.10
Expenses Paid During Period* $ 7.35 $ 11.82 $ 11.40 $ 5.61
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.39%, 2.24%, 2.16%
and 1.06%, for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 184/365 (to reflect the one-half year period)
to calculate the "Expenses Paid During Period" in the table above.
9
Pioneer Ibbotson Moderate Allocation Fund
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COMPARING ONGOING FUND EXPENSES 1/31/07 (continued)
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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 Ibbotson Moderate Allocation
Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from August 1, 2006 through January 31, 2007.
Share Class A B C Y
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Beginning Account Value
On 8/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/07 $1,018.20 $1,013.91 $1,014.32 $1,019.86
Expenses Paid During
Period* $ 7.07 $ 11.37 $ 10.97 $ 5.40
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.39%, 2.24%, 2.16%
and 1.06%, for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 184/365 (to reflect the one-half year period)
to calculate the "Expenses Paid During Period" in the table above.
10
Pioneer Ibbotson Growth Allocation Fund
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COMPARING ONGOING FUND EXPENSES 1/31/07
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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 Ibbotson Growth Allocation Fund
Based on actual returns from August 1, 2006 through January 31, 2007.
Share Class A B C Y
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Beginning Account Value
On 8/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/07 $1,114.00 $1,108.60 $1,109.30 $1,115.70
Expenses Paid During Period* $ 7.99 $ 12.54 $ 11.86 $ 6.19
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.50%, 2.36%, 2.23%
and 1.16%, for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 184/365 (to reflect the one-half year period)
to calculate the "Expenses Paid During Period" in the table above.
11
Pioneer Ibbotson Growth Allocation Fund
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COMPARING ONGOING FUND EXPENSES 1/31/07 (continued)
- --------------------------------------------------------------------------------
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 Ibbotson Growth Allocation Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from August 1, 2006 through January 31, 2007.
Share Class A B C Y
- ---------------------------------------------------------------------------
Beginning Account Value
On 8/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/07 $1,017.64 $1,013.31 $1,013.96 $1,019.36
Expenses Paid During
Period* $ 7.63 $ 11.98 $ 11.32 $ 5.90
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.50%, 2.36%, 2.23%
and 1.16%, for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 184/365 (to reflect the one-half year period)
to calculate the "Expenses Paid During Period" in the table above.
12
Pioneer Ibbotson Aggressive Allocation Fund
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COMPARING ONGOING FUND EXPENSES 1/31/07
- --------------------------------------------------------------------------------
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 Ibbotson Aggressive Allocation
Fund
Based on actual returns from August 1, 2006 through January 31, 2007.
Share Class A B C Y
- ----------------------------------------------------------------------------------------
Beginning Account Value
On 8/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/07 $1,129.60 $1,125.10 $1,126.00 $1,133.20
Expenses Paid During Period* $ 8.86 $ 13.34 $ 12.70 $ 6.72
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.65%, 2.49%, 2.37%
and 1.25%, for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 184/365 (to reflect the one-half year period)
to calculate the "Expenses Paid During Period" in the table above.
13
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES 1/31/07 (continued)
- --------------------------------------------------------------------------------
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 Ibbotson Aggressive Allocation
Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from August 1, 2006 through January 31, 2007.
Share Class A B C Y
- ---------------------------------------------------------------------------
Beginning Account Value
On 8/1/06 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/07 $1,016.89 $1,012.65 $1,013.26 $1,018.90
Expenses Paid During
Period* $ 8.39 $ 12.63 $ 12.03 $ 6.36
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.65%, 2.49%, 2.37%
and 1.25%, for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 184/365 (to reflect the one-half year period)
to calculate the "Expenses Paid During Period" in the table above.
14
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PORTFOLIO REVIEWS 1/31/07
- --------------------------------------------------------------------------------
Conservative Allocation
The Fund's total return for the semiannual period ended January 31, 2007, was
6.38% for Class A shares, at net asset value.
The Fund targeted an asset allocation of 30% equities and 70% fixed-income
during the period. Within the equity portion of the Fund, Pioneer Research Fund
was the largest holding at 7.88% of assets on January 31, 2007. Pioneer
International Equity Fund was the next largest equity holding at 7.86% of
assets. Large-capitalization holdings were weighted slightly above target at the
end of the period, reflecting management's view that these stocks were more
attractive than their smaller-cap counterparts. Within the fixed-income portion
of the Fund, the largest holding at the end of the period was in a shorter-term
bond fund, Pioneer Short Term Income Fund, at 26.88%, followed by Pioneer Bond
Fund at 17.95% of assets.
Moderate Allocation
The Fund's total return for the semiannual period ended January 31, 2007, was
9.79% for Class A shares, at net asset value.
The Fund targeted an asset allocation of 60% equities, 40% fixed income during
the period. Within the equity portion of the Fund, Pioneer International Equity
Fund was the largest holding at 12.35% of assets on January 31, 2007. Pioneer
Oak Ridge Large Cap Growth Fund was the next largest equity holding at 11.36% of
assets. Large-capitalization holdings were weighted slightly above target at the
end of the period, reflecting management's view that these stocks were more
attractive than their smaller-cap counterparts. Within the fixed-income portion
of the Fund, the largest holding at the end of the period was in a shorter-term
bond fund, Pioneer Short Term Income Fund, at 18.43%, followed by Pioneer Bond
Fund at 9.20% of assets.
Growth Allocation
The Fund's total return for the semiannual period ended January 31, 2007, was
11.40% for Class A shares, at net asset value.
The Fund targeted an asset allocation of 75% equities, 25% fixed-income during
the period. Within the equity portion of the Fund, Pioneer International Equity
Fund was the largest holding at 14.90% of assets on January 31, 2007. The
largest domestic equity allocation was to Pioneer Research Fund at 11.94% of
assets followed by Pioneer Oak Ridge Large Cap Growth Fund at 11.20% of assets.
15
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PORTFOLIO REVIEWS 1/31/07 (continued)
- --------------------------------------------------------------------------------
Large-capitalization holdings were weighted slightly above target at the end of
the period, reflecting management's view that these stocks were more attractive
than their smaller-cap counterparts. Within the fixed-income portion of the
Fund, the largest holding at the end of the period was in a shorter-term bond
fund, Pioneer Short Term Income Fund, at 11.88% of assets, while a longer-term
bond fund, Pioneer Bond Fund represented 7.91% of assets.
Aggressive Allocation
The Fund's total return for the semiannual period ended January 31, 2007, was
12.96% for Class A shares, at net asset value.
The Fund targeted an asset allocation of 90% equities, 10% fixed-income during
the period. Within the equity portion of the Fund, Pioneer International Equity
Fund was the largest holding at 19.96% of assets on January 31, 2007. On the
domestic side, Pioneer Research Fund at 15.00% of assets and Pioneer Oak Ridge
Large Cap Growth Fund at 13.00% of assets were the largest holdings.
Large-capitalization holdings were weighted slightly above target at the end of
the period, reflecting management's view that these stocks were more attractive
than their smaller cap counterparts. The fixed-income portion of the Fund was
invested in a long-term bond fund, Pioneer Bond Fund, at 5.98% of assets, while
Pioneer Short Term Income Fund represented 2.98% of assets.
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.
Any information in this shareholder report regarding market or economic trends
or the factors influencing each portfolios' historical or future performance are
statements of the opinion of the portfolios' management as of the date of this
report. These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
16
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Class 1/31/07 7/31/06
------- --------- --------
A $11.01 $10.56
B $10.88 $10.44
C $10.87 $10.44
Y $11.01 $10.57
Moderate Allocation Fund
Class 1/31/07 7/31/06
------- --------- --------
A $12.19 $11.39
B $11.72 $10.92
C $11.62 $10.85
Y $12.22 $11.43
Growth Allocation Fund
Class 1/31/07 7/31/06
------- --------- --------
A $13.08 $12.04
B $11.87 $10.93
C $12.58 $11.58
Y $13.16 $12.13
Aggressive Allocation Fund
Class 1/31/07 7/31/06
------- --------- --------
A $13.78 $12.39
B $13.20 $11.84
C $13.37 $12.00
Y $13.80 $12.41
17
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS (continued)
- --------------------------------------------------------------------------------
Distributions Per Share
- --------------------------------------------------------------------------------
Conservative Allocation Fund
8/1/06 - 1/31/07
-------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.1923 $ - $0.0191
B $0.1601 $ - $0.0191
C $0.1613 $ - $0.0191
Y $0.1858 $ - $0.0191
Moderate Allocation Fund
8/1/06 - 1/31/07
-------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.2777 $0.0038 $0.0297
B $0.1865 $0.0038 $0.0297
C $0.2111 $0.0038 $0.0297
Y $0.3159 $0.0038 $0.0297
Growth Allocation Fund
8/1/06 - 1/31/07
-------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.2283 $ - $0.1000
B $0.1442 $ - $0.1000
C $0.1623 $ - $0.1000
Y $0.2678 $ - $0.1000
Aggressive Allocation Fund
8/1/06 - 1/31/07
-------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.1561 $ - $0.0567
B $0.0629 $ - $0.0567
C $0.0826 $ - $0.0567
Y $0.2025 $ - $0.0567
18
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 1/31/07
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Fixed Income 70%
Equity 30%
Short Term Bond 27.00%
- --------------------------------------------------------
Domestic Corporate Bonds 17.00
- --------------------------------------------------------
Cash & Cash Equivalents 13.00
- --------------------------------------------------------
High-Yield Corporate Bonds 13.00
- --------------------------------------------------------
Large-Cap Growth 9.00
- --------------------------------------------------------
Large-Cap Value 9.00
- --------------------------------------------------------
International Equities 8.00
- --------------------------------------------------------
Mid/Small Cap Value 2.00
- --------------------------------------------------------
Mid/Small Cap Growth 2.00
- --------------------------------------------------------
Real Estate Investment Trusts (REITs) 0.00
- --------------------------------------------------------
Emerging Market 0.00
- --------------------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------ -------------------------------------
Pioneer Research 7.88% Pioneer International Equity 7.86%
- ------------------------------------------ -------------------------------------
Pioneer Oak Ridge Large Cap Growth 6.76 Bonds
- ------------------------------------------ -------------------------------------
Pioneer Fund 5.65 Pioneer Short Term Income 26.88
- ------------------------------------------ -------------------------------------
Pioneer Cullen Value 3.37 Pioneer Bond 17.95
- ------------------------------------------ -------------------------------------
Pioneer Small Cap Value 1.13 Pioneer High Yield 11.29
- ------------------------------------------ -------------------------------------
Pioneer Value 1.13 Pioneer Government Income 4.49
- ------------------------------------------ -------------------------------------
Pioneer Mid Cap Growth 1.12 Pioneer Strategic Income 4.49
- ------------------------------------------ -------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio holdings
will vary for other periods. The holdings listed should not be considered
recommendations to buy or sell any security listed.
19
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund at public
offering price, compared to that of the Standard & Poor's 500 Stock Index and
Lehman Brothers Aggregate Bond Index.
- ---------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
Public
Net Asset Offering
Period Value (NAV) Price (POP)
Life-of-Class
(5/12/05) 7.35% 3.73%
1 Year 6.48 0.38
- ---------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
2.83% 1.49%
- ---------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Conservative 500 Stock Aggregate Bond
Allocation Fund Index Index
5/05 10,000 10,000 9,425
1/06 10,047 10,872 9,900
1/07 10,477 12,448 10,542
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.
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 5.75% 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 net expenses ratio reflects contractual expense limitations currently in
effect through 12/1/09 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please 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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
20
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- ---------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(5/12/05) 6.45% 4.22%
1 Year 5.54 1.54
- ---------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
3.79% 2.39%
- ---------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Conservative 500 Stock Aggregate Bond
Allocation Fund Index Index
5/05 10,000 10,000 10,000
1/06 10,047 10,872 10,448
1/07 10,477 12,448 10,627
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.
"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 net expenses ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class B Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please 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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
21
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- --------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(5/12/05) 6.40% 6.40%
1 Year 5.66 5.66
- --------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
3.51% 2.39%
- --------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Conservative 500 Stock Aggregate Bond
Allocation Fund Index Index
5/05 10,000 10,000 10,000
1/06 10,047 10,872 10,439
1/07 10,477 12,448 11,029
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.
Class C shares held for less than one year are also subject to a 1%
contingent deferred sales charge (CDSC). "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 net expenses ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class C Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please 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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
22
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- ------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(5/12/05) 7.32% 7.32%
1 Year 6.22 6.22
- ------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
2.90% 2.90%
- ------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Conservative 500 Stock Aggregate Bond
Allocation Fund Index Index
5/05 10,000 10,000 10,000
1/06 10,528 10,872 10,047
1/07 11,182 12,448 10,477
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.
Performance for periods prior to the inception of the Fund's Class Y shares
reflects the NAV performance of the Fund's Class A shares. The performance
does not reflect differences in expenses, including the Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares are generally
higher than those of Class Y shares, the performance shown for Class Y shares
prior to their inception would have been higher. Class Y shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors.
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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
23
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 1/31/07
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Equity 60%
Fixed Income 40%
Short Term Bond 17.00%
- ---------------------------------------------------
Large-Cap Growth 15.50
- ---------------------------------------------------
Large-Cap Value 15.50
- ---------------------------------------------------
International Equities 12.00
- ---------------------------------------------------
Domestic Corporate Bonds 9.00
- ---------------------------------------------------
High-Yield Corporate Bonds 8.00
- ---------------------------------------------------
Mid/Small Cap Value 6.00
- ---------------------------------------------------
Cash & Cash Equivalents 6.00
- ---------------------------------------------------
Mid/Small Cap Growth 6.00
- ---------------------------------------------------
Real Estate Investment Trusts (REITs) 3.00
- ---------------------------------------------------
Emerging Market 2.00
- ---------------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------- -------------------------------------
Pioneer Oak Ridge Large Cap Growth 11.36% Pioneer International Equity 12.35%
- ------------------------------------------- -------------------------------------
Pioneer Research 10.31 Pioneer Emerging Markets 2.06
- ------------------------------------------- -------------------------------------
Pioneer Fund 9.35 Bonds
- ------------------------------------------- -------------------------------------
Pioneer Cullen Value 4.11 Pioneer Short Term Income 18.43
- ------------------------------------------- -------------------------------------
Pioneer Real Estate 3.20 Pioneer Bond 9.20
- ------------------------------------------- -------------------------------------
Pioneer Value 3.09 Pioneer High Yield 6.22
- ------------------------------------------- -------------------------------------
Pioneer Mid Cap Growth 2.07 Pioneer Government Income 3.07
- ------------------------------------------- -------------------------------------
Pioneer Small Cap Value 2.07
- -------------------------------------------
Pioneer Growth Opportunities 2.07
- -------------------------------------------
Pioneer Mid Cap Value 1.04
- -------------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio holdings
will vary for other periods. The holdings listed should not be considered
recommendations to buy or sell any security listed.
24
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund at public offering
price, compared to that of the Standard & Poor's 500 Stock Index and Lehman
Brothers Aggregate Bond Index.
- -------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
Public
Net Asset Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 11.79% 9.15%
1 Year 9.03 2.76
- -------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
1.42% 1.42%
- -------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Moderate 500 Stock Aggregate Bond
Allocation Fund Index Index
8/04 10,000 10,000 9,425
1/05 10,186 10,772 10,077
1/06 10,369 11,890 11,175
1/07 10,814 13,613 12,183
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.
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 5.75% 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 net expenses ratio reflects contractual expense limitations currently in
effect through 12/1/09 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please 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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
25
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- -------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 9.50% 8.44%
1 Year 8.08 4.08
- -------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
2.30% 2.30%
- -------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Moderate 500 Stock Aggregate Bond
Allocation Fund Index Index
8/04 10,000 10,000 10,000
1/05 10,186 10,772 10,519
1/06 10,369 11,890 11,553
1/07 10,814 13,613 12,186
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.
"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 net expenses ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class B Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please 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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
26
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- ---------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 9.22% 9.22%
1 Year 8.18 8.18
- ---------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
2.21% 2.21%
- ---------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Moderate 500 Stock Aggregate Bond
Allocation Fund Index Index
8/04 10,000 10,000 10,000
1/05 10,186 10,772 10,653
1/06 10,369 11,890 11,701
1/07 10,814 13,613 12,658
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.
Class C shares held for less than one year are also subject to a 1%
contingent deferred sales charge (CDSC). "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 net expenses ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class C Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please 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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
27
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate
Bond Index.
- --------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 12.09% 12.09%
1 Year 9.43 9.43
- --------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
2.90% 2.90%
- --------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Moderate 500 Stock Aggregate Bond
Allocation Fund Index Index
8/04 10,000 10,000 10,000
1/05 10,186 10,772 10,690
1/06 10,369 11,890 11,888
1/07 10,814 13,613 13,010
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.
Performance for periods prior to the inception of the Fund's Class Y shares
reflects the NAV performance of the Fund's Class A shares. The performance
does not reflect differences in expenses, including the Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares are generally
higher than those of Class Y shares, the performance shown for Class Y shares
prior to their inception would have been higher. Class Y shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors.
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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
28
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 1/31/07
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Equity 75%
Fixed Income 25%
Large-Cap Value 17.50%
- ---------------------------------------------------
Large-Cap Growth 16.50
- ---------------------------------------------------
International Equities 16.00
- ---------------------------------------------------
Short Term Bond 12.50
- ---------------------------------------------------
Mid/Small Cap Growth 8.50
- ---------------------------------------------------
Mid/Small Cap Value 8.50
- ---------------------------------------------------
Domestic Corporate Bonds 7.50
- ---------------------------------------------------
High-Yield Corporate Bonds 5.00
- ---------------------------------------------------
Emerging Market 4.00
- ---------------------------------------------------
Real Estate Investment Trusts (REITs) 4.00
- ---------------------------------------------------
Cash & Cash Equivalents 0.00
- ---------------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------- -------------------------------------
Pioneer Research 11.94% Pioneer International Equity 14.90%
- ------------------------------------------- -------------------------------------
Pioneer Oak Ridge Large Cap Growth 11.20 Pioneer Emerging Markets 4.03
- ------------------------------------------- -------------------------------------
Pioneer Fund 9.99 Bonds
- ------------------------------------------- -------------------------------------
Pioneer Cullen Value 4.96 Pioneer Short Term Income 11.88
- ------------------------------------------- -------------------------------------
Pioneer Real Estate 4.21 Pioneer Bond 7.91
- ------------------------------------------- -------------------------------------
Pioneer Value 3.98 Pioneer High Yield 3.01
- ------------------------------------------- -------------------------------------
Pioneer Mid Cap Growth 3.97 Pioneer Government Income 1.01
- ------------------------------------------- -------------------------------------
Pioneer Growth Opportunities 3.01
- -------------------------------------------
Pioneer Small Cap Value 2.00
- -------------------------------------------
Pioneer Mid Cap Value 2.00
- -------------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio holdings
will vary for other periods. The holdings listed should not be considered
recommendations to buy or sell any security listed.
29
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund at public offering
price, compared to that of the Standard & Poor's 500 Stock Index and Lehman
Brothers Aggregate Bond Index.
- --------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
Public
Net Asset Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 14.43% 11.73%
1 Year 10.21 3.90
- --------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
1.57% 1.57%
- --------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Growth 500 Stock Aggregate Bond
Allocation Fund Index Index
8/04 10,000 10,000 9,425
1/05 10,186 10,772 10,267
1/06 10,369 11,890 11,702
1/07 10,814 13,613 12,897
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.
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 5.75% 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 net expenses ratio reflects contractual expense limitations currently in
effect through 12/1/09 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please 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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
30
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- --------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 9.72% 8.66%
1 Year 9.26 5.26
- --------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
2.45% 2.40%
- --------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Growth 500 Stock Aggregate Bond
Allocation Fund Index Index
8/04 10,000 10,000 10,000
1/05 10,186 10,772 10,467
1/06 10,369 11,890 11,827
1/07 10,814 13,613 12,623
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.
"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 net expenses ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class B Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please 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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
31
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- -----------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 12.20% 12.20%
1 Year 9.42 9.42
- -----------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
2.29% 2.29%
- -----------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Growth 500 Stock Aggregate Bond
Allocation Fund Index Index
8/04 10,000 10,000 10,000
1/05 10,186 10,772 10,709
1/06 10,369 11,890 12,098
1/07 10,814 13,613 13,238
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.
Class C shares held for less than one year are also subject to a 1%
contingent deferred sales charge (CDSC). "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 net expenses ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class C Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please 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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
32
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- ----------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 14.90% 14.90%
1 Year 10.93 10.93
- ----------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
1.15% 1.15%
- ----------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Growth 500 Stock Aggregate Bond
Allocation Fund Index Index
8/04 10,000 10,000 10,000
1/05 10,186 10,772 10,890
1/06 10,369 11,890 12,458
1/07 10,814 13,613 13,820
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.
Performance for periods prior to the inception of the Fund's Class Y shares
reflects the NAV performance of the Fund's Class A shares. The performance
does not reflect differences in expenses, including the Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares are generally
higher than those of Class Y shares, the performance shown for Class Y shares
prior to their inception would have been higher. Class Y shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors.
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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
33
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 1/31/07
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Equity 90%
Fixed Income 10%
International Equities 21.00%
- ---------------------------------------------------
Large-Cap Growth 19.00
- ---------------------------------------------------
Large-Cap Value 19.00
- ---------------------------------------------------
Mid/Small Cap Growth 10.50
- ---------------------------------------------------
Mid/Small Cap Value 10.50
- ---------------------------------------------------
Domestic Corporate Bonds 7.00
- ---------------------------------------------------
Emerging Market 5.00
- ---------------------------------------------------
Real Estate Investment Trusts (REITs) 5.00
- ---------------------------------------------------
Short Term Bond 3.00
- ---------------------------------------------------
High-Yield Corporate Bonds 0.00
- ---------------------------------------------------
Cash & Cash Equivalents 0.00
- ---------------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------- -------------------------------------
Pioneer Oak Ridge Large Cap Growth 13.00% Pioneer International Equity 19.96%
- ------------------------------------------- -------------------------------------
Pioneer Research 15.00 Pioneer Emerging Markets 4.99
- ------------------------------------------- -------------------------------------
Pioneer Fund 11.04 Bonds
- ------------------------------------------- -------------------------------------
Pioneer Cullen Value 5.99 Pioneer Bond 5.98
- ------------------------------------------- -------------------------------------
Pioneer Real Estate 5.03 Pioneer Short Term Income 2.98
- ------------------------------------------- -------------------------------------
Pioneer Mid Cap Growth 4.00
- -------------------------------------------
Pioneer Value 4.00
- -------------------------------------------
Pioneer Growth Opportunities 3.01
- -------------------------------------------
Pioneer Small Cap Value 3.01
- -------------------------------------------
Pioneer Mid Cap Value 2.01
- -------------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio holdings
will vary for other periods. The holdings listed should not be considered
recommendations to buy or sell any security listed.
34
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund at public
offering price, compared to that of the Standard & Poor's 500 Stock Index and
Lehman Brothers Aggregate Bond Index.
- -----------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
Public
Net Asset Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 16.92% 14.16%
1 Year 11.35 4.92
- -----------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
1.72% 1.72%
- -----------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Aggressive 500 Stock Aggregate Bond
Allocation Fund Index Index
8/04 10,000 10,000 9,425
1/05 10,186 10,772 10,436
1/06 10,369 11,890 12,163
1/07 10,814 13,613 13,543
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.
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 5.75% 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 net expenses ratio reflects contractual expense limitations currently in
effect through 12/1/09 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please 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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
35
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate
Bond Index.
- --------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 14.55% 13.55%
1 Year 10.37 6.37
- --------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
2.59% 2.54%
- --------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Aggressive 500 Stock Aggregate Bond
Allocation Fund Index Index
8/04 10,000 10,000 10,000
1/05 10,962 10,772 10,186
1/06 12,676 11,890 10,369
1/07 13,690 13,613 10,814
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.
"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 net expenses ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class B Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please 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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
36
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate
Bond Index.
- --------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 15.17% 15.17%
1 Year 10.57 10.57
- --------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
2.46% 2.46%
- --------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Aggressive 500 Stock Aggregate Bond
Allocation Fund Index Index
8/04 10,000 10,000 10,000
1/05 10,841 10,772 10,186
1/06 12,525 11,890 10,369
1/07 13,848 13,613 10,814
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.
Class C shares held for less than one year are also subject to a 1%
contingent deferred sales charge (CDSC). "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 net expenses ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class C Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please 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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
37
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate
Bond Index.
- -------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 17.19% 17.19%
1 Year 11.53 11.53
- -------------------------------------------------------
Expense Ratio
(As of 12/1/06)
Gross Net
1.27% 1.27%
- -------------------------------------------------------
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Ibbotson Standard & Poor's Lehman Brothers
Aggressive 500 Stock Aggregate Bond
Allocation Fund Index Index
8/04 10,000 10,000 10,000
1/05 11,077 10,772 10,186
1/06 12,964 11,890 10,369
1/07 14,459 13,613 10,814
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.
Performance for periods prior to the inception of the Fund's Class Y shares
reflects the NAV performance of the Fund's Class A shares. The performance
does not reflect differences in expenses, including the Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares are generally
higher than those of Class Y shares, the performance shown for Class Y shares
prior to their inception would have been higher. Class Y shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors.
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 Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used
measure of the broad U.S. stock market. 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.
38
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 1/31/07 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 89.5%
PIONEER FUNDS - 89.5%
594,615 Pioneer Bond Fund Class Y $ 5,345,588
49,439 Pioneer Cullen Value Fund Class Y 1,004,603
34,109 Pioneer Fund Class Y 1,682,572
143,509 Pioneer Government Income Fund Class Y 1,336,065
304,845 Pioneer High Yield Fund Class Y 3,362,440
89,114 Pioneer International Equity Fund Class Y 2,341,923
21,179 Pioneer Mid Cap Growth Fund Class Y 334,629
141,672 Pioneer Oak Ridge Large Cap Growth Fund Class Y 2,013,155
204,835 Pioneer Research Fund Class Y 2,347,414
819,215 Pioneer Short Term Income Fund Class Y 8,003,727
10,176 Pioneer Small Cap Value Fund Class Y 336,920
128,394 Pioneer Strategic Income Fund Class Y 1,336,583
19,489 Pioneer Value Fund Class Y 335,022
-----------
TOTAL INVESTMENTS IN SECURITIES - 89.5%
(Cost $29,186,272) (a) $29,780,641
-----------
OTHER ASSETS AND LIABILITIES - 10.5% $ 3,481,221
-----------
TOTAL NET ASSETS - 100.0% $33,261,862
===========
(a) At January 31, 2007, the net unrealized gain on investments based on cost
for federal tax purposes of $29,186,272 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $647,861
Aggregate gross unrealized loss for
all investments in which there is an excess of tax cost over value (53,492)
--------
Net unrealized gain $594,369
========
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended January 31, 2007 aggregated $14,902,427 and $666,977,
respectively.
The accompanying notes are an integral part of these financial statements. 39
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 1/31/07 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 97.7%
PIONEER FUNDS - 97.7%
2,911,453 Pioneer Bond Fund Class Y $ 26,173,966
575,722 Pioneer Cullen Value Fund Class Y 11,698,674
182,771 Pioneer Emerging Markets Fund Class Y 5,852,322
539,131 Pioneer Fund Class Y 26,595,346
936,759 Pioneer Government Income Fund Class Y 8,721,227
200,093 Pioneer Growth Opportunities Fund Class Y 5,900,733
1,604,635 Pioneer High Yield Fund Class Y 17,699,126
1,336,723 Pioneer International Equity Fund Class Y 35,129,093
371,788 Pioneer Mid Cap Growth Fund Class Y 5,874,257
121,786 Pioneer Mid Cap Value Fund Class Y 2,953,316
2,275,345 Pioneer Oak Ridge Large Cap Growth Fund Class Y 32,332,658
253,419 Pioneer Real Estate Shares Fund Class Y 9,115,477
2,560,534 Pioneer Research Fund Class Y 29,343,721
5,367,968 Pioneer Short Term Income Fund Class Y 52,445,048
178,005 Pioneer Small Cap Value Fund Class Y 5,893,756
511,653 Pioneer Value Fund Class Y 8,795,310
------------
TOTAL INVESTMENTS IN SECURITIES - 97.7%
(Cost $258,944,506) (a) $284,524,030
------------
OTHER ASSETS AND LIABILITIES - 2.3% $ 6,705,939
------------
TOTAL NET ASSETS - 100.0% $291,229,969
============
(a) At January 31, 2007, the net unrealized gain on investments based on cost
for federal tax purposes of $258,944,506 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $27,270,162
Aggregate gross unrealized loss
for all investments in which there is an excess of tax cost over value (1,690,638)
-----------
Net unrealized gain $25,579,524
-----------
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended January 31, 2007 aggregated $39,717,800 and $21,002,613,
respectively.
40 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 1/31/07 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 100.3%
PIONEER FUNDS - 100.3%
2,364,407 Pioneer Bond Fund Class Y $ 21,256,019
656,122 Pioneer Cullen Value Fund Class Y 13,332,396
337,647 Pioneer Emerging Markets Fund Class Y 10,811,472
544,296 Pioneer Fund Class Y 26,850,139
291,666 Pioneer Government Income Fund Class Y 2,715,413
273,940 Pioneer Growth Opportunities Fund Class Y 8,078,497
733,000 Pioneer High Yield Fund Class Y 8,084,989
1,523,610 Pioneer International Equity Fund Class Y 40,040,465
675,633 Pioneer Mid Cap Growth Fund Class Y 10,675,002
221,706 Pioneer Mid Cap Value Fund Class Y 5,376,362
2,116,553 Pioneer Oak Ridge Large Cap Growth Fund Class Y 30,076,220
314,694 Pioneer Real Estate Shares Fund Class Y 11,319,541
2,799,768 Pioneer Research Fund Class Y 32,085,337
3,265,519 Pioneer Short Term Income Fund Class Y 31,904,123
162,125 Pioneer Small Cap Value Fund Class Y 5,367,947
621,960 Pioneer Value Fund Class Y 10,691,487
------------
TOTAL INVESTMENTS IN SECURITIES - 100.3%
(Cost $243,461,823) (a) $268,665,409
------------
OTHER ASSETS AND LIABILITIES - (0.3%) $ (786,462)
------------
TOTAL NET ASSETS - 100.0% $267,878,947
=============
(a) At January 31, 2007, the net unrealized gain on investments based on cost
for federal tax purposes of $243,461,823 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $25,971,580
Aggregate gross unrealized loss
for all investments in which there is an excess of tax cost over value (767,994)
-----------
Net unrealized gain $25,203,586
===========
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended January 31, 2007 aggregated $48,354,926 and $8,198,512,
respectively.
The accompanying notes are an integral part of these financial statements. 41
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 1/31/07 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 100.6%
PIONEER FUNDS - 100.6%
1,121,643 Pioneer Bond Fund Class Y $ 10,083,570
497,321 Pioneer Cullen Value Fund Class Y 10,105,572
263,051 Pioneer Emerging Markets Fund Class Y 8,422,878
377,794 Pioneer Fund Class Y 18,636,565
172,444 Pioneer Growth Opportunities Fund Class Y 5,085,368
1,281,906 Pioneer International Equity Fund Class Y 33,688,497
426,649 Pioneer Mid Cap Growth Fund Class Y 6,741,053
139,453 Pioneer Mid Cap Value Fund Class Y 3,381,746
1,544,816 Pioneer Oak Ridge Large Cap Growth Fund Class Y 21,951,836
235,804 Pioneer Real Estate Shares Fund Class Y 8,481,868
2,209,422 Pioneer Research Fund Class Y 25,319,977
515,127 Pioneer Short Term Income Fund Class Y 5,032,796
153,359 Pioneer Small Cap Value Fund Class Y 5,077,711
392,568 Pioneer Value Fund Class Y 6,748,242
------------
TOTAL INVESTMENTS IN SECURITIES - 100.6%
(Cost $148,012,343) (a) $168,757,679
------------
OTHER ASSETS AND LIABILITIES - (0.6%) $ (924,553)
------------
TOTAL NET ASSETS - 100.0% $167,833,126
=============
(a) At January 31, 2007, the net unrealized gain on investments based on cost
for federal tax purposes of $148,012,343 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $20,852,865
Aggregate gross unrealized loss
for all investments in which there is an excess of tax cost over value (107,529)
-----------
Net unrealized gain $20,745,336
===========
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended January 31, 2007 aggregated $30,526,363 and $8,566,765,
respectively.
42 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 1/31/07 (unaudited)
- --------------------------------------------------------------------------------
Conservative Moderate Growth Aggressive
Allocation Allocation Allocation Allocation
Fund Fund Fund Fund
ASSETS:
Investments in securities of affiliated
issuers, at value (at cost
$29,186,272, $258,944,506,
$243,461,823 and
$148,012,343, respectively) $ 29,780,641 $ 284,524,030 $ 268,665,409 $ 168,757,679
Cash 3,604,592 7,175,942 - -
Receivables for:
Investment Funds sold 26,099 540,529 - 166,030
Capital stock sold 91,157 335,944 656,946 191,197
Due from Pioneer Investment
Management, Inc. 4,118 19,325 5,639 8,738
Other assets 14,594 28,903 37,614 28,310
------------ ------------- ------------- -------------
Total assets $ 33,521,201 $ 292,624,673 $ 269,365,608 $ 169,151,954
------------ ------------- ------------- -------------
LIABILITIES:
Payables for:
Due to Custodian $ - $ - $ 412,273 $ 427,077
Funds purchased 67,216 - 563,054 246,498
Capital stock redeemed 127,695 1,136,739 289,773 434,729
Due to affiliates 17,933 162,193 173,201 92,766
Accrued expenses and other
liabilities 46,495 95,772 48,360 117,758
------------ ------------- ------------- -------------
Total liabilities $ 259,339 $ 1,394,704 $ 1,486,661 $ 1,318,828
------------ ------------- ------------- -------------
NET ASSETS:
Paid-in capital $ 32,302,105 $ 259,966,388 $ 235,553,372 $ 143,637,267
Distributions in excess of net
investment income (44,306) (1,401,126) (1,859,040) (936,697)
Accumulated net realized gain on
investments 409,694 7,085,183 8,981,029 4,387,220
Net unrealized gain on investments 594,369 25,579,524 25,203,586 20,745,336
------------ ------------- ------------- -------------
Total net assets $ 33,261,862 $ 291,229,969 $ 267,878,947 $ 167,833,126
============ ============= ============= =============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of
shares authorized)
Net Assets of Class A shares $ 22,052,373 $ 163,387,155 $ 147,393,799 $ 107,527,789
Net Assets of Class B shares $ 3,727,869 $ 61,001,588 $ 73,434,462 $ 36,242,158
Net Assets of Class C shares $ 7,471,211 $ 40,143,415 $ 44,257,690 $ 20,194,431
Net Assets of Class Y shares $ 10,409 $ 26,697,811 $ 2,792,996 $ 3,868,748
============ ============= ============= =============
Class A Shares outstanding 2,003,685 13,402,934 11,266,604 7,804,375
Class B Shares outstanding 342,756 5,205,565 6,185,354 2,745,717
Class C Shares outstanding 687,553 3,453,850 3,517,843 1,510,105
Class Y Shares outstanding 945 2,184,234 212,217 280,337
============ ============= ============= =============
Net Asset Value - Class A share $ 11.01 $ 12.19 $ 13.08 $ 13.78
Net Asset Value - Class B share $ 10.88 $ 11.72 $ 11.87 $ 13.20
Net Asset Value - Class C share $ 10.87 $ 11.62 $ 12.58 $ 13.37
Net Asset Value - Class Y share $ 11.01 $ 12.22 $ 13.16 $ 13.80
============ ============= ============= =============
MAXIMUM OFFERING PRICE:
Class A (100 [divided by] 94.25 x net asset
value per share) $ 11.68 $ 12.93 $ 13.88 $ 14.62
============ ============= ============= =============
The accompanying notes are an integral part of these financial statements. 43
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 1/31/07
Conservative Moderate Growth Aggressive
Allocation Allocation Allocation Allocation
Fund Fund Fund Fund
INVESTMENT INCOME:
Dividend income from securities
of affiliated issuers $ 393,156 $ 3,450,438 $ 2,645,395 $ 1,339,810
Interest 69,380 254,288 1,735 343
---------- ----------- ----------- -----------
Total investment income $ 462,536 $ 3,704,726 $ 2,647,130 $ 1,340,153
---------- ----------- ----------- -----------
EXPENSES:
Management fees $ 16,058 $ 183,534 $ 157,241 $ 99,922
Transfer agent fees and expenses
Class A 5,454 81,599 116,778 103,734
Class B 3,842 62,006 99,659 55,723
Class C 2,827 20,958 28,460 16,241
Class Y 13 2,444 1,084 1,444
Distribution fees
Class A 18,049 198,594 164,934 121,163
Class B 16,622 295,665 340,166 168,765
Class C 33,803 180,184 194,881 88,799
Administrative reimbursements 11,646 50,873 46,096 38,118
Custodian fees 8,718 66,214 55,382 43,357
Registration fees 28,959 43,771 40,612 35,837
Professional fees 21,807 26,338 24,523 24,329
Printing expense 7,335 18,974 11,865 14,450
Fees and expenses of nonaffiliated
trustees 2,727 3,616 3,790 3,448
Insurance expense 94 1,702 1,325 846
Miscellaneous 1,125 1,512 1,411 1,512
========== =========== =========== ============
Total expenses $ 179,079 $ 1,237,984 $ 1,288,207 $ 817,688
Less management fees waived and
expenses reimbursed by Pioneer
Investment Management, Inc. (36,729) - - (2,721)
Less fees paid indirectly (603) (7,000) (11,077) (7,745)
---------- ----------- ----------- -----------
Net expenses $ 141,747 $ 1,230,984 $ 1,277,130 $ 807,222
---------- ----------- ----------- -----------
Net investment income $ 320,789 $ 2,473,742 $ 1,370,000 $ 532,931
---------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments $ (11,495) $ 121,696 $ (157,986) $ (19,631)
Realized gain distributions from
investment company shares 449,214 8,871,123 9,796,499 7,145,723
Change in net unrealized gain (loss)
on investments 609,169 14,363,000 14,276,567 10,624,999
---------- ----------- ----------- -----------
Net gain on investments $1,046,888 $23,355,819 $23,915,080 $17,751,091
========== =========== =========== ===========
Net increase in net assets resulting
from operations $1,367,677 $25,829,561 $25,285,080 $18,284,022
========== =========== =========== ===========
44 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 1/31/07 and the Year Ended 7/31/06
Conservative Allocation Fund Moderate Allocation Fund
--------------------------------- --------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
1/31/07 7/31/06 1/31/07 7/31/06
(unaudited) (unaudited)
FROM OPERATIONS:
Net investment income $ 320,789 $ 176,494 $ 2,473,742 $ 2,661,929
Net realized gain on investments 437,719 41,436 8,992,819 9,459,032
Change in net unrealized gain (loss)
on investments 609,169 (36,031) 14,363,000 (1,460,980)
------------ ------------ ------------- -------------
Net increase in net assets resulting
from operations $ 1,367,677 $ 181,899 $ 25,829,561 $ 10,659,981
------------ ------------ ------------- -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income
Class A $ (352,800) $ (22,489) $ (3,595,361) $ (695,194)
Class B (51,337) (9,129) (965,092) (142,133)
Class C (109,847) (10,659) (710,890) (31,961)
Class Y (176) (6) (686,855) (334,603)
Net realized gain on investments
Class A (35,042) (3,055) (433,722) (2,636,349)
Class B (6,124) (1,240) (173,354) (1,086,431)
Class C (13,007) (1,448) (112,813) (524,670)
Class Y (18) (1) (72,839) (1,057,414)
------------ -------------- ------------- -------------
Total distributions
to shareowners $ (568,351) $ (48,027) $ (6,750,926) $ (6,508,755)
------------ ------------- ------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 17,604,585 $17,709,197 $ 40,879,078 $ 113,368,592
Reinvestment of distributions 470,891 35,314 6,044,028 5,879,935
Cost of shares repurchased (2,491,119) (2,777,184) (38,527,317) (73,049,619)
Shares issued in reorganization - - - 155,508,777
------------ ------------- ------------- -------------
Net increase in net assets
resulting from Fund share
transactions $ 15,584,357 $14,967,327 $ 8,395,789 $ 201,707,685
------------ ------------- ------------- -------------
Net increase in net assets $ 16,383,683 $15,101,199 $ 27,474,424 $ 205,858,911
NET ASSETS:
Beginning of period 16,878,179 1,776,980 263,755,545 57,896,634
------------ ------------- ------------- -------------
End of period $ 33,261,862 $16,878,179 $ 291,229,969 $ 263,755,545
============ ============ ============= =============
Undistributed (distributions in
excess of) net investment
income, end of period $ (44,306) $ 149,065 $ (1,401,126) $ 2,083,330
============= ============ ============== =============
The accompanying notes are an integral part of these financial statements. 45
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended 1/31/07 and the Year Ended 7/31/06
Growth Allocation Fund Aggressive Allocation Fund
--------------------------------- ---------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
1/31/07 7/31/06 1/31/07 7/31/06
(unaudited) (unaudited)
FROM OPERATIONS:
Net investment income (loss) $ 1,370,000 $ 659,773 $ 532,931 $ (134,073)
Net realized gain on investments 9,638,513 4,635,900 7,126,092 4,831,003
Change in net unrealized gain
on investments 14,276,567 3,158,797 10,624,999 1,495,849
------------- ------------- ------------- -------------
Net increase in net assets resulting
from operations $ 25,285,080 $ 8,454,470 $ 18,284,022 $ 6,192,779
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income
Class A $ (2,440,569) $ (345,018) $ (1,175,654) $ (73,792)
Class B (862,255) (82,794) (170,484) -
Class C (542,866) - (119,361) -
Class Y (55,783) (39,851) (79,270) (25,479)
Net realized gain on investments
Class A (1,069,019) (902,786) (427,031) (1,223,951)
Class B (597,958) (577,319) (153,679) (567,882)
Class C (334,483) (261,229) (81,935) (231,664)
Class Y (20,830) (80,074) (22,196) (243,638)
------------- ------------- ------------- -------------
Total distributions
to shareowners $ (5,923,763) $ (2,289,071) $ (2,229,610) $ (2,366,406)
------------- ------------- ------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 51,856,945 $ 118,122,801 $ 30,670,029 $ 75,239,813
Reinvestment of distributions 5,541,108 2,099,209 2,097,785 2,169,818
Cost of shares repurchased (22,797,289) (36,958,781) (16,276,848) (30,943,807)
Shares issued in reorganization - 68,183,852 - 51,316,549
------------- ------------- ------------- -------------
Net increase in net assets
resulting from Fund share
transactions $ 34,600,764 $ 151,447,081 $ 16,490,966 $ 97,782,373
------------- ------------- ------------- -------------
Net increase in net assets $ 53,962,081 $ 157,612,480 $ 32,545,378 $ 101,608,746
NET ASSETS:
Beginning of period 213,916,866 56,304,386 135,287,748 33,679,002
------------- ------------- ------------- -------------
End of period $ 267,878,947 $ 213,916,866 $ 167,833,126 $ 135,287,748
============= ============= ============= =============
Undistributed (distributions in
excess of) net investment
income, end of period $ (1,859,040) $ 672,433 $ (936,697) $ 75,141
============= ============= ============= =============
46 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
For the Six Months Ended 1/31/07 and the Year Ended 7/31/06
Conservative Allocation Fund
----------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
(unaudited) (unaudited)
CLASS A
Shares sold 1,243,227 $ 13,637,380 898,359 $ 9,400,261
Reinvestment of distributions 33,733 368,359 2,031 21,079
Less shares repurchased (110,458) (1,211,444) (148,457) (1,557,446)
--------- ------------ -------- ------------
Net increase 1,166,502 $ 12,794,295 751,933 $ 7,863,894
========= ============ ======== ============
CLASS B
Shares sold 108,407 $ 1,165,216 286,529 $ 2,974,458
Reinvestment of distributions 4,693 50,688 835 8,620
Less shares repurchased (41,339) (445,638) (37,816) (393,152)
--------- ------------ -------- ------------
Net increase 71,761 $ 770,266 249,548 $ 2,589,926
========= ============ ======== ============
CLASS C
Shares sold 262,042 $ 2,801,989 510,972 $ 5,324,478
Reinvestment of distributions 4,805 51,844 544 5,615
Less shares repurchased (77,680) (834,037) (79,377) (826,586)
--------- ------------ -------- ------------
Net increase 189,167 $ 2,019,796 432,139 $ 4,503,507
========= ============ ======== ============
CLASS Y
Shares sold - $ - 945 $ 10,000
Reinvestment of distributions - - - -
Less shares repurchased - - - -
--------- ------------ -------- ------------
Net increase - $ - 945 $ 10,000
========= ============ ======== ============
Moderate Allocation Fund
-----------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
(unaudited) (unaudited)
CLASS A
Shares sold 2,078,224 $ 24,771,091 6,405,638 $ 72,857,111
Reinvestment of distributions 314,311 3,781,163 269,424 3,009,471
Less shares repurchased (2,029,281) (24,383,157) (2,680,612) (30,546,449)
Shares issued in reorganization - - 6,095,571 68,142,545
---------- ------------- ---------- -------------
Net increase 363,254 $ 4,169,097 10,090,021 $ 113,462,678
========== ============= ========== ==============
CLASS B
Shares sold 531,129 $ 6,065,635 1,605,785 $ 17,587,651
Reinvestment of distributions 89,682 1,037,617 105,082 1,131,732
Less shares repurchased (456,245) (5,223,116) (664,314) (7,283,351)
Shares issued in reorganization - - 3,086,496 33,269,915
---------- ------------- ---------- -------------
Net increase 164,566 $ 1,880,136 4,133,049 $ 44,705,947
========== ============= ========== ==============
CLASS C
Shares sold 801,642 $ 9,155,225 1,923,525 $ 20,933,219
Reinvestment of distributions 50,255 576,929 33,895 362,338
Less shares repurchased (385,156) (4,351,503) (395,765) (4,288,391)
---------- ------------- ---------- -------------
Net increase 466,741 $ 5,380,651 1,561,655 $ 17,007,166
========== ============= ========== ==============
CLASS Y
Shares sold 73,357 $ 887,127 174,727 $ 1,990,611
Reinvestment of distributions 53,758 648,319 123,333 1,376,394
Less shares repurchased (373,659) (4,569,541) (2,706,254) (30,931,428)
Shares issued in reorganization - - 4,838,972 54,096,317
---------- ------------- ---------- -------------
Net increase (decrease) (246,544) $ (3,034,095) 2,430,778 $ 26,531,894
========== ============= ========== ==============
The accompanying notes are an integral part of these financial statements. 47
Pioneer Ibbotson Asset Allocation Series
- -----------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued) For the Six Months Ended 1/31/07
and the Year Ended 7/31/06
Growth Allocation Fund
-----------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
(unaudited) (unaudited)
CLASS A
Shares sold 2,442,491 $ 31,078,380 5,798,720 $ 69,197,676
Reinvestment of distributions 260,778 3,361,429 99,749 1,172,050
Less shares repurchased (1,084,871) (13,713,046) (1,538,171) (18,428,645)
Shares issued in reorganization - - 2,572,757 29,688,353
---------- ------------- ---------- -------------
Net increase 1,618,398 $ 20,726,763 6,933,055 $ 81,629,434
========== ============= ========== ==============
CLASS B
Shares sold 863,935 $ 9,940,001 2,420,842 $ 26,412,340
Reinvestment of distributions 119,895 1,403,970 59,006 631,954
Less shares repurchased (416,065) (4,780,457) (750,314) (8,164,423)
Shares issued in reorganization - - 2,915,273 30,697,135
---------- ------------- ---------- -------------
Net increase 567,765 $ 6,563,514 4,644,807 $ 49,577,006
========== ============= ========== ==============
CLASS C
Shares sold 864,992 $ 10,557,553 1,909,199 $ 21,909,801
Reinvestment of distributions 56,602 702,425 17,009 192,886
Less shares repurchased (281,850) (3,427,674) (387,946) (4,507,506)
---------- ------------- ---------- -------------
Net increase 639,744 $ 7,832,304 1,538,262 $ 17,595,181
========== ============= ========== ==============
CLASS Y
Shares sold 21,793 $ 281,011 51,290 $ 602,984
Reinvestment of distributions 5,650 73,284 8,708 102,319
Less shares repurchased (68,086) (876,112) (482,918) (5,858,207)
Shares issued in reorganization - - 675,780 7,798,364
---------- ------------- ---------- -------------
Net increase (decrease) (40,643) $ (521,817) 252,860 $ 2,645,460
========== ============= ========== ==============
Aggressive Allocation Fund
--------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
(unaudited) (unaudited)
CLASS A
Shares sold 1,560,418 $ 20,603,202 4,278,800 $ 52,739,788
Reinvestment of distributions 113,085 1,533,432 100,587 1,213,082
Less shares repurchased (711,847) (9,432,496) (1,049,894) (12,946,732)
Shares issued in reorganization - - 1,763,269 20,930,973
--------- ------------ ---------- -------------
Net increase 961,656 $ 12,704,138 5,092,762 $ 61,937,111
========= ============ ========== ==============
CLASS B
Shares sold 350,077 $ 4,393,302 958,460 $ 11,426,790
Reinvestment of distributions 23,644 307,367 44,921 520,186
Less shares repurchased (193,557) (2,436,205) (311,556) (3,687,072)
Shares issued in reorganization - - 1,360,585 15,538,420
--------- ------------ ---------- -------------
Net increase 180,164 $ 2,264,464 2,052,410 $ 23,798,324
========= ============ ========== =============
CLASS C
Shares sold 328,034 $ 4,205,600 838,226 $ 10,065,538
Reinvestment of distributions 12,263 161,506 14,339 168,202
Less shares repurchased (123,400) (1,573,688) (178,514) (2,148,569)
--------- ------------ ---------- -------------
Net increase 216,897 $ 2,793,418 674,051 $ 8,085,171
========= ============ ========== =============
CLASS Y
Shares sold 109,946 $ 1,467,925 84,627 $ 1,007,697
Reinvestment of distributions 7,031 95,480 22,288 268,348
Less shares repurchased (207,936) (2,834,459) (986,399) (12,161,434)
Shares issued in reorganization - - 1,250,780 14,847,156
--------- ------------ ---------- -------------
Net increase (decrease) (90,959) $ (1,271,054) 371,296 $ 3,961,767
========= ============ ========== =============
48 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Six Months Year 5/12/05 (a)
Ended Ended To
1/31/07 7/31/06 7/31/05
(unaudited)
CLASS A
Net asset value, beginning of period $ 10.56 $ 10.29 $ 10.00
------- ------- ---------
Increase from investment operations:
Net investment income (b) $ 0.17 $ 0.25 $ 0.05
Net realized and unrealized gain
on investments 0.49 0.09 0.24
------- ------- ---------
Net increase from investment operations $ 0.66 $ 0.34 $ 0.29
------- ------- ---------
Distributions to shareowners:
Net investment income $ (0.19) $ (0.06) $ -
Net realized gain (0.02) (0.01) -
------- ------- ---------
Net increase in net asset value $ 0.45 $ 0.27 $ 0.29
------- ------- ---------
Net asset value, end of period $ 11.01 $ 10.56 $ 10.29
======= ======= =========
Total return* 6.38% 3.33% 2.90%***
Ratio of net expenses to average net assets+++ 0.78%** 0.78% 0.78%**
Ratio of net investment income to average
net assets+++ 3.06%** 2.38% 2.26%**
Portfolio turnover rate 3% 15% 9%**
Net assets, end of period (in thousands) $22,052 $ 8,837 $ 877
Ratios with no waiver of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.10%** 2.12% 40.41%**
Net investment income (loss) 2.75%** 1.04% (37.37)%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 0.78%** 0.78% 0.78%**
Net investment income 3.06%** 2.38% 2.26%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 49
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Six Months Year 5/12/05 (a)
Ended Ended To
1/31/07 7/31/06 7/31/05
(unaudited)
CLASS B
Net asset value, beginning of period $ 10.44 $ 10.28 $ 10.00
------- ------- ---------
Increase from investment operations:
Net investment income (b) $ 0.10 $ 0.15 $ 0.03
Net realized and unrealized gain
on investments 0.52 0.08 0.25
------- ------- ---------
Net increase from investment operations $ 0.62 $ 0.23 $ 0.28
------- ------- ---------
Distributions to shareowners:
Net investment income $ (0.16) $ (0.06) $ -
Net realized gain (0.02) (0.01) -
------- ------- ---------
Net increase in net asset value $ 0.44 $ 0.16 $ 0.28
------- ------- ---------
Net asset value, end of period $ 10.88 $ 10.44 $ 10.28
======= ======= =========
Total return* 5.94% 2.26% 2.80%***
Ratio of net expenses to average net assets+++ 1.69%** 1.68% 1.68%**
Ratio of net investment income to average
net assets+++ 1.91%** 1.49% 1.23%**
Portfolio turnover rate 3% 15% 9%**
Net assets, end of period (in thousands) $ 3,728 $ 2,830 $ 221
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 2.07%** 3.08% 38.96%**
Net investment income (loss) 1.53%** 0.09% (36.05)%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.68%** 1.68% 1.68%**
Net investment income 1.92%** 1.49% 1.23%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
50 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Six Months Year 5/12/05 (a)
Ended Ended To
1/31/07 7/31/06 7/31/05
(unaudited)
CLASS C
Net asset value, beginning of period $ 10.44 $ 10.26 $ 10.00
------- ------- ---------
Increase from investment operations:
Net investment income (b) $ 0.11 $ 0.15 $ 0.03
Net realized and unrealized gain
on investments 0.50 0.10 0.23
------- ------- ---------
Net increase from investment operations $ 0.61 $ 0.25 $ 0.26
------- ------- ---------
Distributions to shareowners:
Net investment income $ (0.16) $ (0.06) $ -
Net realized gain (0.02) (0.01) -
------- ------- ---------
Net increase in net asset value $ 0.43 $ 0.18 $ 0.26
------- ------- ---------
Net asset value, end of period $ 10.87 $ 10.44 $ 10.26
======= ======= =========
Total return* 5.86% 2.46% 2.60%***
Ratio of net expenses to average net assets+++ 1.68%** 1.68% 1.68%**
Ratio of net investment income to average
net assets+++ 1.92%** 1.48% 1.17%**
Portfolio turnover rate 3% 15% 9%**
Net assets, end of period (in thousands) $ 7,471 $ 5,201 $ 679
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.91%** 2.80% 45.38%**
Net investment income (loss) 1.69%** 0.36% (42.53)%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.68%** 1.68% 1.68%**
Net investment income 1.92%** 1.48% 1.17%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period. * Assumes
initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 51
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Six Months 10/5/05 (a)
Ended To
1/31/07 7/31/06
(unaudited)
CLASS Y
Net asset value, beginning of period $ 10.57 $ 10.32
------- -------
Increase from investment operations:
Net investment income (b) $ 0.13 $ 0.16
Net realized and unrealized gain on investments 0.52 0.16
------- -------
Net increase from investment operations $ 0.65 $ 0.32
------- -------
Distributions to shareowners:
Net investment income $ (0.19) $ (0.06)
Net realized gain (0.02) (0.01)
------- -------
Net increase in net asset value $ 0.44 $ 0.25
------- -------
Net asset value, end of period $ 11.01 $ 10.57
------- -------
Total return* 6.11% 3.13%***
Ratio of net expenses to average net assets+++ 1.10%** 1.23%**
Ratio of net investment income to average
net assets+++ 2.43%** 1.96%**
Portfolio turnover rate 3% 15%
Net assets, end of period (in thousands) $ 11 $ 10
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.10%** 2.19%**
Net investment income 2.43%** 0.98%**
Ratios with waivers of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.08%** 1.23%**
Net investment income 2.45%** 1.96%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
52 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Moderate Allocation Fund
Six Months Year 8/9/04 (a)
Ended Ended To
1/31/07 7/31/06 7/31/05
(unaudited)
CLASS A
Net asset value, beginning of period $ 11.39 $ 11.15 $ 10.00
------- -------- --------
Increase from investment operations:
Net investment income (b) $ 0.12 $ 0.16 $ 0.15
Net realized and unrealized gain
on investments 0.99 0.38 1.27
------- -------- --------
Net increase from investment operations $ 1.11 $ 0.54 $ 1.42
------- -------- --------
Distributions to shareowners:
Net investment income $ (0.28) $ (0.06) $ (0.04)
Net realized gain (0.03) (0.24) (0.23)
------- -------- --------
Net increase in net asset value $ 0.80 $ 0.24 $ 1.15
------- -------- --------
Net asset value, end of period $ 12.19 $ 11.39 $ 11.15
======== ======== ========
Total return* 9.79% 4.98% 14.37%***
Ratio of net expenses to average net assets+++ 0.63%** 0.63% 0.77%**
Ratio of net investment income to average
net assets+++ 1.98%** 1.40% 1.37%**
Portfolio turnover rate 8% 52% 19%**
Net assets, end of period (in thousands) $163,387 $148,495 $ 32,893
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 0.63%** 0.63% 1.26%**
Net investment income 1.98%** 1.40% 0.88%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 0.63%** 0.63% 0.77%**
Net investment income 1.98%** 1.40% 1.37%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 53
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Moderate Allocation Fund
Six Months Year 8/9/04 (a)
Ended Ended To
1/31/07 7/31/06 7/31/05
(unaudited)
CLASS B
Net asset value, beginning of period $ 10.92 $ 10.77 $ 10.00
------- ------- --------
Increase from investment operations:
Net investment income (b) $ 0.07 $ 0.06 $ 0.02
Net realized and unrealized gain
on investments 0.95 0.36 0.98
------- ------- --------
Net increase from investment operations $ 1.02 $ 0.42 $ 1.00
------- ------- --------
Distributions to shareowners:
Net investment income $ (0.19) $ (0.03) $ -
Net realized gain (0.03) (0.24) (0.23)
------- ------- --------
Net increase in net asset value $ 0.80 $ 0.15 $ 0.77
------- ------- --------
Net asset value, end of period $ 11.72 $ 10.92 $ 10.77
======= ======= ========
Total return* 9.37% 4.00% 10.11%***
Ratio of net expenses to average net assets+++ 1.49%** 1.51% 1.67%**
Ratio of net investment income to average
net assets+++ 1.14%** 0.51% 0.16%**
Portfolio turnover rate 8% 52% 19%**
Net assets, end of period (in thousands) $61,002 $55,053 $ 9,781
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.49%** 1.51% 2.08%**
Net investment income (loss) 1.14%** 0.51% (0.25)%**
Ratios with waivers of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.48%** 1.51% 1.67%**
Net investment income 1.15%** 0.51% 0.16%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
54 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Moderate Allocation Fund
Six Months Year 8/9/04 (a)
Ended Ended To
1/31/07 7/31/06 7/31/05
(unaudited)
CLASS C
Net asset value, beginning of period $ 10.85 $ 10.68 $ 10.00
------- ------- -------
Increase from investment operations:
Net investment income (b) $ 0.07 $ 0.07 $ 0.05
Net realized and unrealized gain
on investments 0.94 0.35 0.87
------- ------- -------
Net increase from investment operations $ 1.01 $ 0.42 $ 0.92
------- ------- -------
Distributions to shareowners:
Net investment income $ (0.21) $ (0.01) $ (0.01)
Net realized gain (0.03) (0.24) (0.23)
------- ------- -------
Net increase in net asset value $ 0.77 $ 0.17 $ 0.68
------- ------- -------
Net asset value, end of period $ 11.62 $ 10.85 $ 10.68
======= ======= =======
Total return* 9.38% 4.06% 9.32%***
Ratio of net expenses to average net assets+++ 1.40%** 1.42% 1.67%**
Ratio of net investment income to average
net assets+++ 1.29%** 0.60% 0.44%**
Portfolio turnover rate 8% 52% 19%**
Net assets, end of period (in thousands) $40,143 $32,416 $15,223
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.40%** 1.42% 2.03%**
Net investment income 1.29%** 0.60% 0.08%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.40%** 1.42% 1.67%**
Net investment income 1.29%** 0.60% 0.44%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 55
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Moderate Allocation Fund
Six Months 9/23/05 (a)
Ended To
1/31/07 7/31/06
(unaudited)
CLASS Y
Net asset value, beginning of period $ 11.43 $ 11.18
------- -------
Increase from investment operations:
Net investment income (b) $ 0.14 $ 0.17
Net realized and unrealized gain on investments 1.00 0.40
------- -------
Net increase from investment operations $ 1.14 $ 0.57
------- -------
Distributions to shareowners:
Net investment income $ (0.32) $ (0.08)
Net realized gain (0.03) (0.24)
------- -------
Net increase in net asset value $ 0.79 $ 0.25
------- -------
Net asset value, end of period $ 12.22 $ 11.43
======= ========
Total return* 10.01% 5.19%***
Ratio of net expenses to average net assets+++ 0.30%** 0.28%**
Ratio of net investment income to average
net assets+++ 2.27%** 1.79%**
Portfolio turnover rate 8% 52%**
Net assets, end of period (in thousands) $26,698 $27,792
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.30%** 0.28%**
Net investment income 2.27%** 1.79%**
Ratios with waivers of management fees and
assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 0.30%** 0.28%**
Net investment income 2.27%** 1.79%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
56 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
Growth Allocation Fund
Six Months Year 8/9/04 (a)
Ended Ended To
1/31/07 7/31/06 7/31/05
(unaudited)
CLASS A
Net asset value, beginning of period $ 12.04 $ 11.50 $ 10.00
------- -------- --------
Increase from investment operations:
Net investment income (b) $ 0.10 $ 0.09 $ 0.08
Net realized and unrealized gain
on investments 1.27 0.63 1.70
------- -------- --------
Net increase from investment operations $ 1.37 $ 0.72 $ 1.78
------- -------- --------
Distributions to shareowners:
Net investment income $ (0.23) $ (0.05) $ (0.03)
Net realized gain (0.10) (0.13) (0.25)
------- -------- --------
Net increase in net asset value $ 1.04 $ 0.54 $ 1.50
------- -------- --------
Net asset value, end of period $ 13.08 $ 12.04 $ 11.50
======= ======== ========
Total return* 11.40% 6.29% 17.96%***
Ratio of net expenses to average net assets+++ 0.71%** 0.74% 0.81%**
Ratio of net investment income to average
net assets+++ 1.48%** 0.74% 0.69%**
Portfolio turnover rate 3% 27% 2%**
Net assets, end of period (in thousands) $147,394 $116,161 $ 31,212
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 0.71%** 0.74% 1.42%**
Net investment income 1.48%** 0.74% 0.08%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 0.70%** 0.74% 0.81%**
Net investment income 1.49%** 0.74% 0.69%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 57
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth Allocation Fund
Six Months Year 8/9/04 (a)
Ended Ended To
1/31/07 7/31/06 7/31/05
(unaudited)
CLASS B
Net asset value, beginning of period $ 10.93 $ 10.50 $ 10.00
------- ------- --------
Increase from investment operations:
Net investment income (loss) (b) $ 0.04 $ (0.01) $ 0.01
Net realized and unrealized gain
on investments 1.14 0.59 0.74
------- ------- --------
Net increase from investment operations $ 1.18 $ 0.58 $ 0.75
------- ------- --------
Distributions to shareowners:
Net investment income $ (0.14) $ (0.02) $ -
Net realized gain (0.10) (0.13) (0.25)
------- ------- --------
Net increase in net asset value $ 0.94 $ 0.43 $ 0.50
------- ------- --------
Net asset value, end of period $ 11.87 $ 10.93 $ 10.50
======= ======= ========
Total return* 10.86% 5.53% 7.59%***
Ratio of net expenses to average net assets+++ 1.58%** 1.57% 1.71%**
Ratio of net investment income (loss) to
average net assets+++ 0.60%** (0.08)% 0.05%**
Portfolio turnover rate 3% 27% 2%**
Net assets, end of period (in thousands) $73,434 $61,373 $ 10,219
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.58%** 1.62% 2.27%**
Net investment income (loss) 0.60%** (0.13)% (0.51)%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.56%** 1.57% 1.71%**
Net investment income (loss) 0.62%** (0.08)% 0.05%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
58 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth Allocation Fund
Six Months Year 8/9/04 (a)
Ended Ended To
1/31/07 7/31/06 7/31/05
(unaudited)
CLASS C
Net asset value, beginning of period $ 11.58 $ 11.10 $ 10.00
------- ------- --------
Increase from investment operations:
Net investment income (loss) (b) $ 0.05 $ - $ (0.01)
Net realized and unrealized gain
on investments 1.21 0.61 1.37
------- ------- --------
Net increase from investment operations $ 1.26 $ 0.61 $ 1.36
------- ------- --------
Distributions to shareowners:
Net investment income $ (0.16) $ - $ (0.01)
Net realized gain (0.10) (0.13) (0.25)
------- ------- --------
Net increase in net asset value $ 1.00 $ 0.48 $ 1.10
------- ------- --------
Net asset value, end of period $ 12.58 $ 11.58 $ 11.10
======= ======= ========
Total return* 10.93% 5.51% 13.67%***
Ratio of net expenses to average net assets+++ 1.43%** 1.46% 1.71%**
Ratio of net investment income (loss) to
average net assets+++ 0.78%** 0.02% (0.07)%**
Portfolio turnover rate 3% 27% 2%**
Net assets, end of period (in thousands) $44,258 $33,315 $ 14,874
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.43%** 1.46% 2.13%**
Net investment income (loss) 0.78%** 0.02% (0.49)%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.43%** 1.46% 1.71%**
Net investment income (loss) 0.78%** 0.02% (0.07)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 59
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth Allocation Fund
Six Months 9/23/05 (a)
Ended To
1/31/07 7/31/06
(unaudited)
CLASS Y
Net asset value, beginning of period $ 12.13 $ 11.54
------- -------
Increase from investment operations:
Net investment income (b) $ 0.11 $ 0.13
Net realized and unrealized gain on investments 1.29 0.65
------- -------
Net increase from investment operations $ 1.40 $ 0.78
------- -------
Distributions to shareowners:
Net investment income $ (0.27) $ (0.06)
Net realized gain (0.10) (0.13)
------- -------
Net increase in net asset value $ 1.03 $ 0.59
------- -------
Net asset value, end of period $ 13.16 $ 12.13
======= =======
Total return* 11.57% 6.84%***
Ratio of net expenses to average net assets+++ 0.36%** 0.32%**
Ratio of net investment income to average
net assets+++ 1.70%** 1.23%**
Portfolio turnover rate 3% 27%**
Net assets, end of period (in thousands) $ 2,793 $ 3,068
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.36%** 0.32%**
Net investment income 1.70%** 1.23%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 0.36%** 0.32%**
Net investment income 1.70%** 1.23%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
60 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
Six Months Year 8/9/04 (a)
Ended Ended To
1/31/07 7/31/06 7/31/05
(unaudited)
CLASS A
Net asset value, beginning of period $ 12.39 $ 11.82 $ 10.00
-------- ------- --------
Increase from investment operations:
Net investment income (b) $ 0.06 $ 0.01 $ -
Net realized and unrealized gain
on investments 1.55 0.85 2.14
-------- ------- --------
Net increase from investment operations $ 1.61 $ 0.86 $ 2.14
-------- ------- --------
Distributions to shareowners:
Net investment income $ (0.16) $ (0.02) $ -
Net realized gain (0.06) (0.27) (0.27)
Return of capital - - (0.05)
-------- ------- --------
Net increase in net asset value $ 1.39 $ 0.57 $ 1.82
-------- ------- --------
Net asset value, end of period $ 13.78 $ 12.39 $ 11.82
======== ======= ========
Total return* 12.96% 7.30% 21.57%***
Ratio of net expenses to average net assets+++ 0.80%** 0.82% 0.86%**
Ratio of net investment income (loss) to
average net assets+++ 0.94%** 0.10% (0.04)%**
Portfolio turnover rate 6% 51% 3%**
Net assets, end of period (in thousands) $107,528 $84,775 $ 20,689
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 0.80%** 0.82% 2.14%**
Net investment income (loss) 0.94%** 0.10% (1.31)%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 0.80%** 0.82% 0.86%**
Net investment income (loss) 0.94%** 0.10% (0.04)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 61
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
Six Months Year 8/9/04 (a)
Ended Ended To
1/31/07 7/31/06 7/31/05
(unaudited)
CLASS B
Net asset value, beginning of period $ 11.84 $ 11.39 $ 10.00
------- ------- --------
Increase from investment operations:
Net investment income (loss) (b) $ 0.01 $ (0.08) $ (0.03)
Net realized and unrealized gain
on investments 1.47 0.80 1.72
------- ------- --------
Net increase from investment operations $ 1.48 $ 0.72 $ 1.69
------- ------- --------
Distributions to shareowners:
Net investment income $ (0.06) $ - $ -
Net realized gain (0.06) (0.27) (0.27)
Return of capital - - (0.03)
------- ------- --------
Net increase in net asset value $ 1.36 $ 0.45 $ 1.39
------- ------- --------
Net asset value, end of period $ 13.20 $ 11.84 $ 11.39
======= ======= ========
Total return* 12.51% 6.36% 17.02%***
Ratio of net expenses to average net assets+++ 1.65%** 1.64% 1.76%**
Ratio of net investment income (loss) to
average net assets+++ 0.08%** (0.70)% (0.26)%**
Portfolio turnover rate 6% 51% 3%**
Net assets, end of period (in thousands) $36,242 $30,382 $ 5,845
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.67%** 1.69% 2.81%**
Net investment income (loss) 0.06%** (0.75)% (1.31)%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.64%** 1.64% 1.76%**
Net investment income (loss) 0.09%** (0.70)% (0.26)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
62 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
Six Months Year 8/9/04 (a)
Ended Ended To
1/31/07 7/31/06 7/31/05
(unaudited)
CLASS C
Net asset value, beginning of period $ 12.00 $ 11.54 $ 10.00
------- ------- --------
Increase from investment operations:
Net investment income (loss) (b) $ 0.02 $ (0.08) $ (0.04)
Net realized and unrealized gain
on investments 1.49 0.81 1.88
------- ------- --------
Net increase from investment operations $ 1.51 $ 0.73 $ 1.84
------- ------- --------
Distributions to shareowners:
Net investment income $ (0.08) $ - $ -
Net realized gain (0.06) (0.27) (0.27)
Return of capital - - (0.03)
------- ------- --------
Net increase in net asset value $ 1.37 $ 0.46 $ 1.54
------- ------- --------
Net asset value, end of period $ 13.37 $ 12.00 $ 11.54
======= ======= ========
Total return* 12.60% 6.37% 18.52%***
Ratio of net expenses to average net assets+++ 1.52%** 1.56% 1.76%**
Ratio of net investment income (loss) to
average net assets+++ 0.24%** (0.64)% (0.39)%**
Portfolio turnover rate 6% 51% 3%**
Net assets, end of period (in thousands) $20,194 $15,524 $ 7,144
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.52%** 1.56% 2.74%**
Net investment income (loss) 0.24%** (0.64)% (1.37)%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.52%** 1.56% 1.76%**
Net investment income (loss) 0.24%** (0.64)% (0.39)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 63
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
Six Months 9/23/05 (a)
Ended To
1/31/07 7/31/06
(unaudited)
CLASS Y
Net asset value, beginning of period $ 12.41 $ 11.87
------- -------
Increase from investment operations:
Net investment income (b) $ 0.10 $ 0.06
Net realized and unrealized gain on investments 1.55 0.78
------- -------
Net increase from investment operations $ 1.65 $ 0.84
------- -------
Distributions to shareowners:
Net investment income $ (0.20) $ (0.03)
Net realized gain (0.06) (0.27)
------- -------
Net increase in net asset value $ 1.39 $ 0.54
------- -------
Net asset value, end of period $ 13.80 $ 12.41
======= ========
Total return* 13.32% 7.13%***
Ratio of net expenses to average net assets+++ 0.40%** 0.37%**
Ratio of net investment income to average
net assets+++ 1.39%** 0.63%**
Portfolio turnover rate 6% 51%**
Net assets, end of period (in thousands) $ 3,869 $ 4,607
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.40%** 0.37%**
Net investment income 1.39%** 0.63%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 0.40%** 0.37%**
Net investment income 1.39%** 0.63%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* 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.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
64 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 1/31/07 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Ibbotson Asset Allocation Series (the Trust) was organized as a Delaware
statutory trust on April 22, 2004 (amended July 1, 2004) and was registered with
the Securities and Exchange Commission under the Investment Company Act of 1940
(the 1940 Act) as an open-end management investment company. The Trust consists
of four separate funds, each issuing four classes of shares (collectively, the
Funds, individually, the Fund) as follows:
Pioneer Ibbotson Conservative Allocation Fund (Conservative Fund) Pioneer
Ibbotson Moderate Allocation Fund (Moderate Fund) Pioneer Ibbotson Growth
Allocation Fund (Growth Fund) Pioneer Ibbotson Aggressive Allocation Fund
(Aggressive Fund)
The investment objective of the Conservative Fund is to seek long-term capital
growth and current income. The Moderate Fund seeks long-term capital growth and
current income. The Growth Fund seeks long-term capital growth and current
income. The Aggressive Fund seeks long-term capital growth.
Each Fund is a "fund of funds," which means that it seeks to achieve its
investment objective by investing exclusively in other Pioneer Investment funds
("underlying funds") managed by Pioneer Investment Management, Inc. (PIM) rather
than by direct investment in securities. In the future, the Funds also may
invest in regulated investment companies that are not managed by PIM. The Funds
indirectly pay a portion of the expenses incurred by the underlying funds.
Consequently, an investment in the Funds entails more direct and indirect
expenses than direct investment in the underlying funds.
Some of the underlying funds can invest in either high yield securities or
small/emerging growth companies. Investments in these types of securities
generally are subject to greater volatility than either higher-grade securities
or more-established companies in more developed markets, respectively.
Information regarding the Funds' principal investment risks is contained in the
Funds' prospectuses. Please refer to those documents when considering the Funds'
investment risks.
Each Fund offers four classes of shares designated Class A, Class B, Class C and
Class Y. 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
65
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 1/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
class of shares can bear different transfer agent and distribution fees and have
exclusive voting rights with respect to the distribution plans that have been
adopted by Class A, Class B and Class C shareowners, respectively.
The financial statements have been prepared in accordance 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 at the date of the financial statements and the reported
amounts of income and expenses during the reporting period. Actual results could
differ from these estimates. The following is a summary of significant
accounting policies followed by the Trust in 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 the trade date. The net asset value
is computed once daily, on each day the New York Stock Exchange (NYSE) is
open, as of the close of regular trading on the NYSE. In computing the net
asset value, holdings of mutual fund shares are valued at the net asset
value of each fund held. Dividend income and realized capital gain
distributions from investment company shares held are recorded on the
ex-dividend date. Temporary cash investments are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and Federal income tax purposes.
B. Federal Income Taxes
It is the Funds' policy to comply with the requirements of the Internal
Revenue Service Code applicable to regulated investment companies and to
distribute all taxable income and net realized capital gains, if any, to
shareholders. Therefore, no Federal income tax provisions are required.
The amount and characterization of distributions to shareowners for
financial reporting purposes is determined in accordance with Federal income
tax rules. Therefore, the source of the Funds' distributions may be shown in
the accompanying financial statements as either from or in excess of net
investment income or net realized
66
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
gain on investment transactions, or from paid-in capital, depending on the
type of book/tax differences that may exist.
The Pioneer Ibbotson Aggressive Allocation Fund had a net capital loss
carryforward of $1,622,949, which will expire in 2011 if not utilized.
The tax character of distributions paid will be determined at the end of the
current fiscal year. The tax character of distributions paid during the year
ended July 31, 2006 was as follows:
Ordinary Long-Term
Fund Income Capital Gains Total
- -------------------------------------------------------------------
Conservative Fund $ 42,282 $ 5,745 $ 48,027
Moderate Fund 1,203,891 5,304,864 6,508,755
Growth Fund 467,663 1,821,408 2,289,071
Aggressive Fund 99,271 2,267,135 2,366,406
The following shows the components of distributable earnings on a Federal
income tax basis at July 31, 2006:
Undistributed Undistributed Net Unrealized
Ordinary Long-Term Appreciation
Fund Income Capital Gains (Depreciation)
- ----------------------------------------------------------------------------
Conservative Fund $ 149,065 $ 54,123 $ (42,757)
Moderate Fund 2,083,330 1,198,296 8,903,320
Growth Fund 672,433 2,078,431 10,213,394
Aggressive Fund 75,141 870,314 8,818,941
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
C. Fund Shares
The Board of Trustees has authorized the issuance of four classes of shares,
designated as Class A, Class B, Class C and Class Y. Additional classes of
shares have been authorized but are not referenced in the Fund's prospectus.
The Conservative Allocation Fund, Class A, Class B and Class C shares were
first offered for sale to the public on May 12, 2005. Class Y shares were
first offered for sale to the public on October 5, 2005. The Moderate
Allocation, Growth Allocation and Aggressive Allocation Funds Class A, Class
B and Class C shares were first offered for sale to the public on August 9,
2004. Class Y shares of these three Funds were first publicly offered on the
following dates: Moderate Allocation on
67
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 1/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
9/23/05, Growth Allocation on 9/23/05 and Aggressive Allocation on 9/23/05.
Shares of each class represent an interest in the same portfolio of
investments of the Fund and have equal rights as to voting, redemptions,
dividends and liquidation, except that the level of transfer agent and
distribution fees may differ among classes. Class A, Class B, and Class C
shareowners have exclusive voting rights with respect to distribution plans
for each class. There is no distribution plan for Class Y.
The Funds record sales and repurchases of Fund shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Funds and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.
(UniCredito Italiano), earned the following in underwriting commissions
during the six months ended January 31, 2007:
Fund Amount
- ----------------------------------
Conservative Fund $ 10,027
Moderate Fund $ 61,077
Growth Fund $104,169
Aggressive Fund $ 66,546
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of each Fund,
respectively, (see Note 4). 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.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by each of the Funds with respect to each class of shares
are calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution fees.
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Pioneer Ibbotson Asset Allocation Series
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E. Repurchase Agreements
With respect to repurchase agreements entered into by the Funds, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of the purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Funds' custodian, or subcustodians. The Fund's
investment adviser, PIM is responsible for determining that the value of the
collateral remains at least equal to the repurchase price.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, is the Funds'
investment adviser, and manages the Funds' portfolios. Management fees are
calculated daily at the following annual rates on Pioneer managed assets:
Management Fee as a Percentage
of each Fund's Average
Fund Daily Net Assets
- -----------------------------------------------------------
Conservative Fund 0.13%
Moderate Fund 0.13%
Growth Fund 0.13%
Aggressive Fund 0.13%
PIM has entered into a sub-advisory agreement with Ibbotson Associates, LLC.
PIM, not the Funds, pays a portion of the fee it receives from each Fund to
Ibbotson Associates as compensation for its services to the Funds.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Funds. At January 31, 2007, the following amounts were
payable to PIM relating to management fees and certain other services and are
included in due to affiliates:
Fund Amount
- --------------------------------------
Conservative Fund $ 4,032
Moderate Fund $36,035
Growth Fund $32,704
Aggressive Fund $20,663
69
Pioneer Ibbotson Asset Allocation Series
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NOTES TO FINANCIAL STATEMENTS 1/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
PIM did not impose all or a portion of its management fees and assumed other
operating expenses of the Funds to the extent necessary to limit Class A, Class
B and Class C expenses to the following annual expense limitations. These
expense limitations are in effect through December 1, 2009 for Class A shares
and through December 1, 2008 for Class B and Class C shares:
Fund Class A Class B Class C
- -------------------------------------------------------
Conservative Fund .78% 1.68% 1.68%
Moderate Fund .74% 1.52% 1.52%
Growth Fund .79% 1.57% 1.57%
Aggressive Fund .85% 1.64% 1.64%
3. Transfer Agent
PIMSS provides substantially all transfer agent and shareowner services to the
Funds at negotiated rates. Included in due to affiliates are the following
amounts of transfer agent fees payable to PIMSS at January 31, 2007:
Fund Amount
- --------------------------------------
Conservative Fund $ -
Moderate Fund $ 8,947
Growth Fund $13,806
Aggressive Fund $ 4,248
4. Distribution Plans
The Funds have adopted Plans of Distribution with respect to Class A, Class B
and Class C shares (Class A Plan, Class B Plan and Class C Plan, respectively)
in accordance with Rule 12b-1 of the Investment Company Act of 1940. Pursuant to
the Class A Plan, the Funds pay PFD a service fee of up to 0.25% of the Fund's
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
Funds pay PFD 1.00% of the average daily net assets attributable to each class
of shares. The fee consists of a 0.25% service fee and a 0.75% distribution fee
paid as compensation for personal services and/or account maintenance services
or distribution services with regard to Class B and Class C shares. At January
31, 2007
70
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
the following fees were payable to PFD relating to distribution and service fees
and are included in due to affiliates:
Fund Amount
- ---------------------------------------
Conservative Fund $ 13,901
Moderate Fund $117,211
Growth Fund $126,691
Aggressive Fund $ 67,855
In addition, redemptions of each class of shares (except Class Y 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 that are redeemed within five years
of purchase will be subject to a CDSC at declining rates beginning at 4.00%,
based on the lower of cost or market value of shares being redeemed. Redemptions
of Class C shares within one year of purchase are subject to a CDSC of 1.00%.
For the six months ended January 31, 2007, the following CDSC's were paid to
PFD:
Fund Amount
- ---------------------------------------
Conservative Fund $ 6,462
Moderate Fund $105,805
Growth Fund $105,319
Aggressive Fund $ 51,387
5. Merger Information
On September 22, 2005, the beneficial owners of certain AmSouth Funds approved a
proposed merger agreement and Plan of Reorganization that provided for the
mergers listed below. These tax-free reorganizations were accomplished on
September 26, 2005 by exchanging all of the AmSouth Fund's net assets for shares
of the applicable Pioneer Ibbotson Fund, based upon the Fund's Class A, Class B
and Class Y shares' ending net asset values, respectively. The following charts
show the details of the reorganizations as of that closing date ("Closing
Date"):
71
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 1/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Pioneer AmSouth AmSouth Pioneer
Moderate Growth and Moderate Growth Moderate
Allocation Fund Income Fund and Income Fund Allocation Fund
(Pre-Reorganization) (Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
---------------------- ---------------------- ---------------------- ----------------------
Net Assets
Class A $40,918,497 $ 47,985,562 $20,156,983 $109,061,042
Class B $11,519,608 $ 19,432,527 $13,837,388 $ 44,789,524
Class C $17,124,590 $ 17,124,590
Class Y $ 54,096,317
Class I $ 40,453,115 $13,643,202
Total Net Assets $69,562,695 $107,871,204 $47,637,573 $225,071,473
Shares Outstanding
Class A 3,660,813 4,708,295 2,060,226 9,756,384
Class B 1,068,504 1,914,637 1,423,053 4,155,001
Class C 1,602,231 1,602,231
Class Y 4,838,972
Class I 3,953,925 1,390,285
Shares Issued in Reorganization
Class A 6,095,571
Class B 3,086,496
Class Y 4,838,972
Unrealized
Appreciation Accumulated Gain
On Closing On Closing
Date Date
-------------- -----------------
AmSouth Growth and
Income Fund $8,743,400 $2,595,540
AmSouth Moderate Growth
and Income Fund $1,726,341 $ 851,251
72
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Pioneer Growth AmSouth Pioneer Growth
Allocation Fund Growth Fund Allocation Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
---------------------- ---------------------- ----------------------
Net Assets
Class A $38,438,637 $29,688,353 $ 68,126,990
Class B $12,106,330 $30,697,135 $ 42,803,465
Class C $16,868,540 $ 16,868,540
Class Y $ 7,798,364
Class I $ 7,798,364
Total Net Assets $67,413,507 $68,183,852 $135,597,359
Shares Outstanding
Class A 3,332,335 3,007,670 5,905,091
Class B 1,149,798 3,155,064 4,065,072
Class C 1,516,287 1,516,287
Class Y 675,780
Class I 786,487
Shares Issued in Reorganization
Class A 2,572,757
Class B 2,915,273
Class Y 675,780
Unrealized
Appreciation Accumulated Gain
On Closing On Closing
Date Date
-------------- -----------------
AmSouth Growth Fund $5,108,682 $1,905,046
73
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 1/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Pioneer Aggressive AmSouth Aggressive Pioneer Aggressive
Allocation Fund Growth Fund Allocation Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
---------------------- ---------------------- ----------------------
Net Assets
Class A $25,582,418 $20,930,973 $46,513,391
Class B $ 7,003,626 $15,538,420 $22,542,046
Class C $ 8,276,330 $ 8,276,330
Class Y $14,847,156
Class I $14,847,156
Total Net Assets $40,862,374 $51,316,549 $92,178,923
Shares Outstanding
Class A 2,154,549 2,128,158 3,917,819
Class B 613,143 1,653,405 1,973,727
Class C 715,365 715,365
Class Y 1,250,780
Class I 1,509,339
Shares Issued in Reorganization
Class A 1,763,269
Class B 1,360,585
Class Y 1,250,780
Unrealized
Appreciation Accumulated Gain
On Closing On Closing
Date Date
-------------- -----------------
AmSouth Aggressive
Growth Fund $6,818,836 $1,802,796
74
Pioneer Ibbotson Asset Allocation Series
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- --------------------------------------------------------------------------------
6. New Pronouncements
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Trust's tax returns to determine whether the tax positions have a
"more-likely-than-not" probability of being sustained by the applicable tax
authority. Tax positions deemed to not meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the reporting period in which
they are realized. Adoption of FIN 48 is required for fiscal years beginning
after December 15, 2006 and is to be applied to all open tax years as of no
later than June 29, 2007. At this time, management is evaluating the
implications of FIN 48 and any impact in the financial statements has not yet
been determined.
In addition, in September 2006, Statement of Financial Accounting Standards No.
157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal
years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Trust's financial statement disclosures.
75
Pioneer Ibbotson Conservative Allocation Fund
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FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT
- --------------------------------------------------------------------------------
The Investment Company Act of 1940 requires that both the Board of Trustees and
a majority of the Independent Trustees (collectively "the Trustees"), voting
separately, annually approve the Fund's management contract (the "Management
Contract") between the Fund and Pioneer Investment Management, Inc., the Fund's
adviser (the "Investment Adviser"). The Investment Adviser has retained Ibbotson
Associates Advisors, LLC (the "Sub-adviser") to act as sub-adviser to the Fund
pursuant to a sub-advisory agreement between the Investment Adviser and the
Sub-adviser (the "Sub-advisory Agreement"). The Trustees have determined that
the terms of the Management Contract and the Sub-advisory Agreement are fair and
reasonable and that renewal of these contracts: (i) will enable the Fund to
receive quality investment advisory services at a fee deemed reasonable; and
(ii) is in the best interests of the Fund and its shareowners. In making such
determinations, the Independent Trustees relied upon the assistance of counsel
to the Independent Trustees and counsel to the Fund.
Throughout the year, the Independent Trustees regularly met in executive
session, separately from the Interested Trustees of the Fund and any officer of
the Investment Adviser, or its affiliates. While the Trustees, including the
Interested Trustees, act on all major matters relating to the Fund, a
significant portion of the activities of the Board of Trustees (including
certain of those described herein) is conducted through committees, the members
of which are comprised exclusively of Independent Trustees. Such committee
meetings are attended by officers of the Fund and/or officers of the Investment
Adviser to the extent requested by the members of the committee.
In evaluating the Management Contract and Sub-advisory Agreement, the Trustees
conducted a review that was specifically focused upon the renewal of the
Management Contract and Sub-advisory Agreement, and also relied upon their
knowledge, resulting from their meetings throughout the year, of the Investment
Adviser, its services and the Fund. Both in meetings specifically dedicated to
renewal of the Management Contract and at other meetings during the course of
the year, the Trustees, including the Independent Trustees, received materials
relating to the Investment Adviser's investment and management services under
the Management Contract. These materials included information on (i) the
investment performance of the Fund, a peer group of funds as classified by
Morningstar, Inc., an independent evaluation service ("Morningstar") and an
index considered appropriate by the Independent Trustees for this purpose, (ii)
sales and
76
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
redemption activity in respect of the Fund, (iii) the general investment outlook
in the markets in which the Fund invests, (iv) arrangements in respect of the
distribution of the Fund's shares, (v) the procedures employed to determine the
value of each of the Fund's assets, (vi) the Investment Adviser's management of
the relationships with the Fund's unaffiliated service providers, (vii) the
record of compliance with the Fund's investment policies and restrictions and
with the Fund's Code of Ethics and the structure and responsibilities of the
Investment Adviser's compliance department, (viii) the nature, cost and
character of non-investment management services provided by the Investment
Adviser and its affiliates and (ix) the investment and compliance staff and
operations of the Subadviser.
Specifically, in connection with the Independent Trustees' review of the
Management Contract and the Sub-advisory Agreement, the Independent Trustees
requested, and the Investment Adviser provided, additional information in order
to evaluate the quality of the Investment Adviser's and Sub-adviser's services
and the reasonableness of the fee under the Management Contract and the
Sub-advisory Agreement. Among other items, this information included data or
analyses of (1) investment performance for one year period for the Fund and a
peer group of funds selected on the basis of criteria considered appropriate by
the Independent Trustees for this purpose, (2) management and other fees
incurred by a peer group of funds selected on the basis of criteria considered
appropriate by the Independent Trustees for this purpose, (3) the advisory fees
of comparable portfolios of other clients of the Investment Adviser and the
Sub-adviser, (4) expense ratios for the Fund and a peer group of funds selected
on the basis of criteria considered appropriate by the Independent Trustees for
this purpose, (5) the overall organization of the Investment Adviser and the
Sub-adviser, (6) the Investment Adviser's and the Sub-adviser's financial
results and condition, including in the case of the Sub-adviser, its and certain
of its affiliates' profitability in providing services to the Fund, (7) transfer
agency fees and administrative reimbursements paid to the Investment Adviser or
affiliates, (8) investment management staffing, and (9) operating expenses paid
by the Funds to third parties. The Trustees also reviewed information regarding
the potential for each of the Fund and the Investment Adviser to benefit from
further economies of scale in the management of the Fund in light of reasonable
growth expectations for the Fund, the breakpoints in the Fund's management fee
and the management
77
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
fee of a peer group of funds selected by the Independent Trustees for this
purpose and certain of the Fund's expenses that are incurred on a basis other
than as a percentage of net assets.
The following summarizes factors considered by the Trustees in connection with
reviewing the information described above and their renewal of the Fund's
Management Contract. The Trustees did not identify any single factor as
all-important or controlling, and the summary does not detail all the matters
that were considered.
A. Ancillary Benefits to Shareowners. The Trustees considered the benefits to
shareowners of investing in a Fund that is part of a large number of
investment companies offering a variety of investment disciplines and
providing for a large variety of Fund and shareowner services.
B. Compliance and Investment Performance. The Trustees determined that the
Investment Adviser and the Sub-adviser had policies and systems reasonably
designed to achieve compliance with the Fund's investment objective and
regulatory requirements. The Trustees also reviewed the Fund's absolute
investment performance based upon total return, as well as the Fund's
performance relative to the performance of both a peer group and an index
considered appropriate by the Independent Trustees for this purpose. The
Fund's performance, based upon total return, was in the second quintile of
its Morningstar category peer group for the 12 months ended June 30, 2006.
(In all quintile rankings referred to throughout this discussion first
quintile is most favorable to the Fund's shareowners. Thus, highest relative
performance would be first quintile and lowest relative expenses also would
be first quintile.) The Trustees also considered the activities of the
Investment Adviser in monitoring the investment and compliance operations of
the Sub-adviser. The Trustees concluded that the performance of the Fund was
good during the short period since its inception.
C. The Investment Adviser's Personnel and Methods. The Trustees reviewed the
background of members of the team responsible for the daily management of
the Fund and the Fund's investment objective and discipline. The Independent
Trustees also have had discussions with senior management of the Investment
Adviser and the Subadviser responsible for investment operations. Among
other things, the Trustees considered the size, education and experience of
the Sub-adviser's investment staff. The Trustees
78
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
concluded that the Investment Adviser and the Sub-adviser have the quality
and depth of personnel and the well-developed methods essential to
performing their duties under the Management Contract and the Sub-advisory
Agreement.
D. Nature and Quality of Other Services. The Trustees considered the nature,
quality and extent of other services provided to shareowners of the Fund,
including administrative and shareowner services performed by the Investment
Adviser under the Management Contract. The Trustees also considered the
reasonableness of the arrangements for reimbursement of the Investment
Adviser's out-of-pocket costs and expenses, including overhead, for certain
administrative services that the Investment Adviser is not required to
provide under the Management Contract. The Trustees also considered the
nature and extent of the other services provided by the Investment Adviser
or its affiliates under other contracts, as well as the Investment Adviser's
supervision of third party service providers. Based on these considerations,
the Trustees concluded that the nature, quality and extent of such services
are satisfactory and reliable and serve the shareowners of the Fund well.
E. Management Fee and Expenses. The Trustees considered the Investment
Adviser's fee under the Management Contract relative to the management fees
charged by its Morningstar category peer group. The Fund's management fee
for the 12 months ended June 30, 2006 was in the first quintile, relative to
the management fees paid by the other funds in that peer group for the
comparable period. The Trustees also evaluated the fee under the
Sub-advisory Agreement and the portion of the fee under the Management
Contract retained by the Investment Adviser and determined that they were
consistent with other sub-advised funds. The Trustees also considered the
Fund's expense ratio for the 12 months ended June 30, 2006 and expense
ratios for the comparable period of a peer group of funds selected on the
basis of criteria considered appropriate by the Independent Trustees for
this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC, an independent third party. The Trustees found the
Fund's expense ratio for the 12 months ended June 30, 2006 to be in the
fifth quintile of the applicable peer group for the most recent fiscal year.
79
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
F. Profitability. The Trustees considered the level of the Investment Adviser's
profits with respect to the management of the Pioneer Funds, including
details with respect to the Fund. This consideration included a review of
the Investment Adviser's methodology in allocating certain of its costs to
the management of each Fund. The Trustees also considered the financial
results realized by the Investment Adviser in connection with the operation
of the Fund. They further considered the profits realized by the Investment
Adviser and its affiliates from non-fund businesses that may benefit from or
be related to the Fund's business. The Trustees considered the Investment
Adviser's profit margins in comparison with the limited industry data
available. The Trustees concluded that the Investment Adviser's profits from
management of the Pioneer Funds, including the financial results derived
from the Fund, bear a reasonable relationship to the services rendered and
are fair for the management of the Fund.
G. Economies of Scale. The Trustees considered the economies of scale with
respect to the management of the Fund, whether the Fund had appropriately
benefited from any economies of scale, and whether there was potential for
realization of any further economies of scale. The Trustees concluded that
in light of anticipated growth of the Fund, break points in the management
fee were not necessary at this time. However, the Trustees would evaluate
the need for break points from time to time.
H. Other Benefits to the Investment Adviser. The Trustees also considered the
character and amount of fees paid by the Fund, other than under the
Management Contract, for services provided by the Investment Adviser and
affiliates, including fees for services such as shareowner services. The
Trustees also considered the receipt of sales loads and payments under Rule
12b-1 plans in respect of the Pioneer Funds (including the Fund), and
benefits to the Investment Adviser from the use of "soft" commission dollars
to pay for research services. The Trustees further considered the revenues
and profitability of the Investment Adviser's businesses other than the fund
business, including the Investment Adviser's institutional investment
advisory business. The Trustees considered the intangible benefits that
accrue to the Investment Adviser and its affiliates by virtue of its
relationship with the Fund and the Pioneer Funds as a group. The Trustees
concluded that all these types of
80
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
benefits accruing to the Investment Adviser were reasonable in the context
of the overall relationship between the Investment Adviser and the Fund.
Conclusion. In light of the Investment Adviser's and Sub-adviser's overall
performance, the Trustees considered it appropriate to continue to retain the
management services of the Investment Adviser and the Sub-adviser. Based on
their review of the overall nature and quality of services provided by the
Investment Adviser and Sub-adviser and the fees charged by other funds in the
Fund's relevant peer group, and taking into account all material factors deemed
relevant by the trustees as well as the advice of independent counsel, the
Trustees concluded that the Management Contract with the Fund and the
Sub-advisory Agreement, including the fee payable thereunder, were fair and
reasonable and that their renewal was in the best interests of the Fund and its
shareowners. Accordingly, the Trustees voted to approve the continuation of the
Management Contract and the Sub-advisory Agreement for another year.
81
Pioneer Ibbotson Moderate Allocation Fund
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FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT
- --------------------------------------------------------------------------------
The Investment Company Act of 1940 requires that both the Board of Trustees and
a majority of the Independent Trustees (collectively "the Trustees"), voting
separately, annually approve the Fund's management contract (the "Management
Contract") between the Fund and Pioneer Investment Management, Inc., the Fund's
adviser (the "Investment Adviser"). The Investment Adviser has retained Ibbotson
Associates Advisors, LLC (the "Sub-adviser") to act as sub-adviser to the Fund
pursuant to a sub-advisory agreement between the Investment Adviser and the
Sub-adviser (the "Sub-advisory Agreement"). The Trustees have determined that
the terms of the Management Contract and the Sub-advisory Agreement are fair and
reasonable and that renewal of these contracts: (i) will enable the Fund to
receive quality investment advisory services at a fee deemed reasonable; and
(ii) is in the best interests of the Fund and its shareowners. In making such
determinations, the Independent Trustees relied upon the assistance of counsel
to the Independent Trustees and counsel to the Fund.
Throughout the year, the Independent Trustees regularly met in executive
session, separately from the Interested Trustees of the Fund and any officer of
the Investment Adviser, or its affiliates. While the Trustees, including the
Interested Trustees, act on all major matters relating to the Fund, a
significant portion of the activities of the Board of Trustees (including
certain of those described herein) is conducted through committees, the members
of which are comprised exclusively of Independent Trustees. Such committee
meetings are attended by officers of the Fund and/or officers of the Investment
Adviser to the extent requested by the members of the committee.
In evaluating the Management Contract and Sub-advisory Agreement, the Trustees
conducted a review that was specifically focused upon the renewal of the
Management Contract and Sub-advisory Agreement, and also relied upon their
knowledge, resulting from their meetings throughout the year, of the Investment
Adviser, its services and the Fund. Both in meetings specifically dedicated to
renewal of the Management Contract and at other meetings during the course of
the year, the Trustees, including the Independent Trustees, received materials
relating to the Investment Adviser's investment and management services under
the Management Contract. These materials included information on (i) the
investment performance of the Fund, a peer group of funds as classified by
Morningstar, Inc., an independent evaluation service ("Morningstar") and an
index considered appropriate by the Independent Trustees for this purpose, (ii)
sales and
82
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
redemption activity in respect of the Fund, (iii) the general investment outlook
in the markets in which the Fund invests, (iv) arrangements in respect of the
distribution of the Fund's shares, (v) the procedures employed to determine the
value of each of the Fund's assets, (vi) the Investment Adviser's management of
the relationships with the Fund's unaffiliated service providers, (vii) the
record of compliance with the Fund's investment policies and restrictions and
with the Fund's Code of Ethics and the structure and responsibilities of the
Investment Adviser's compliance department, (viii) the nature, cost and
character of non-investment management services provided by the Investment
Adviser and its affiliates and (ix) the investment and compliance staff and
operations of the Subadviser.
Specifically, in connection with the Independent Trustees' review of the
Management Contract and the Sub-advisory Agreement, the Independent Trustees
requested, and the Investment Adviser provided, additional information in order
to evaluate the quality of the Investment Adviser's and Sub-adviser's services
and the reasonableness of the fee under the Management Contract and the
Sub-advisory Agreement. Among other items, this information included data or
analyses of (1) investment performance for one year period for the Fund and a
peer group of funds selected on the basis of criteria considered appropriate by
the Independent Trustees for this purpose, (2) management and other fees
incurred by a peer group of funds selected on the basis of criteria considered
appropriate by the Independent Trustees for this purpose, (3) the advisory fees
of comparable portfolios of other clients of the Investment Adviser and the
Sub-adviser, (4) expense ratios for the Fund and a peer group of funds selected
on the basis of criteria considered appropriate by the Independent Trustees for
this purpose, (5) the overall organization of the Investment Adviser and the
Sub-adviser, (6) the Investment Adviser's and the Sub-adviser's financial
results and condition, including in the case of the Sub-adviser, its and certain
of its affiliates' profitability in providing services to the Fund, (7) transfer
agency fees and administrative reimbursements paid to the Investment Adviser or
affiliates, (8) investment management staffing, and (9) operating expenses paid
by the Funds to third parties. The Trustees also reviewed information regarding
the potential for each of the Fund and the Investment Adviser to benefit from
further economies of scale in the management of the Fund in light of reasonable
growth expectations for the Fund, the breakpoints in the Fund's management fee
and the management fee
83
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
of a peer group of funds selected by the Independent Trustees for this purpose
and certain of the Fund's expenses that are incurred on a basis other than as a
percentage of net assets.
The following summarizes factors considered by the Trustees in connection with
reviewing the information described above and their renewal of the Fund's
Management Contract. The Trustees did not identify any single factor as
all-important or controlling, and the summary does not detail all the matters
that were considered.
A. Ancillary Benefits to Shareowners. The Trustees considered the benefits to
shareowners of investing in a Fund that is part of a large number of
investment companies offering a variety of investment disciplines and
providing for a large variety of Fund and shareowner services.
B. Compliance and Investment Performance. The Trustees determined that the
Investment Adviser and the Sub-adviser had policies and systems reasonably
designed to achieve compliance with the Fund's investment objective and
regulatory requirements. The Trustees also reviewed the Fund's absolute
investment performance based upon total return, as well as the Fund's
performance relative to the performance of both a peer group and an index
considered appropriate by the Independent Trustees for this purpose. The
Fund's performance, based upon total return, was in the second quintile of
its Morningstar category peer group for the 12 months ended June 30, 2006.
(In all quintile rankings referred to throughout this discussion first
quintile is most favorable to the Fund's shareowners. Thus, highest relative
performance would be first quintile and lowest relative expenses also would
be first quintile.) The Trustees also considered the activities of the
Investment Adviser in monitoring the investment and compliance operations of
the Sub-adviser. The Trustees concluded that the performance of the Fund was
good during the short period since its inception.
C. The Investment Adviser's Personnel and Methods. The Trustees reviewed the
background of members of the team responsible for the daily management of
the Fund and the Fund's investment objective and discipline. The Independent
Trustees also have had discussions with senior management of the Investment
Adviser and the Subadviser responsible for investment operations. Among
other things, the Trustees considered the size, education and experience of
the Sub-adviser's investment staff. The Trustees
84
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
concluded that the Investment Adviser and the Sub-adviser have the quality
and depth of personnel and the well-developed methods essential to
performing their duties under the Management Contract and the Sub-advisory
Agreement.
D. Nature and Quality of Other Services. The Trustees considered the nature,
quality and extent of other services provided to shareowners of the Fund,
including administrative and shareowner services performed by the Investment
Adviser under the Management Contract. The Trustees also considered the
reasonableness of the arrangements for reimbursement of the Investment
Adviser's out-of-pocket costs and expenses, including overhead, for certain
administrative services that the Investment Adviser is not required to
provide under the Management Contract. The Trustees also considered the
nature and extent of the other services provided by the Investment Adviser
or its affiliates under other contracts, as well as the Investment Adviser's
supervision of third party service providers. Based on these considerations,
the Trustees concluded that the nature, quality and extent of such services
are satisfactory and reliable and serve the shareowners of the Fund well.
E. Management Fee and Expenses. The Trustees considered the Investment
Adviser's fee under the Management Contract relative to the management fees
charged by its Morningstar category peer group. The Fund's management fee
for the 12 months ended June 30, 2006 was in the second quintile, relative
to the management fees paid by the other funds in that peer group for the
comparable period. The Trustees also evaluated the fee under the
Sub-advisory Agreement and the portion of the fee under the Management
Contract retained by the Investment Adviser and determined that they were
consistent with other sub-advised funds. The Trustees also considered the
Fund's expense ratio for the 12 months ended June 30, 2006 and expense
ratios for the comparable period of a peer group of funds selected on the
basis of criteria considered appropriate by the Independent Trustees for
this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC, an independent third party. The Trustees found the
Fund's expense ratio for the 12 months ended June 30, 2006 to be in the
fifth quintile of the applicable peer group for the most recent fiscal year.
85
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
F. Profitability. The Trustees considered the level of the Investment Adviser's
profits with respect to the management of the Pioneer Funds, including
details with respect to the Fund. This consideration included a review of
the Investment Adviser's methodology in allocating certain of its costs to
the management of each Fund. The Trustees also considered the financial
results realized by the Investment Adviser in connection with the operation
of the Fund. They further considered the profits realized by the Investment
Adviser and its affiliates from non-fund businesses that may benefit from or
be related to the Fund's business. The Trustees considered the Investment
Adviser's profit margins in comparison with the limited industry data
available. The Trustees concluded that the Investment Adviser's profits from
management of the Pioneer Funds, including the financial results derived
from the Fund, bear a reasonable relationship to the services rendered and
are fair for the management of the Fund.
G. Economies of Scale. The Trustees considered the economies of scale with
respect to the management of the Fund, whether the Fund had appropriately
benefited from any economies of scale, and whether there was potential for
realization of any further economies of scale. The Trustees concluded that
in light of anticipated growth of the Fund, break points in the management
fee were not necessary at this time. However, the Trustees would evaluate
the need for break points from time to time.
H. Other Benefits to the Investment Adviser. The Trustees also considered the
character and amount of fees paid by the Fund, other than under the
Management Contract, for services provided by the Investment Adviser and
affiliates, including fees for services such as shareowner services. The
Trustees also considered the receipt of sales loads and payments under Rule
12b-1 plans in respect of the Pioneer Funds (including the Fund), and
benefits to the Investment Adviser from the use of "soft" commission dollars
to pay for research services. The Trustees further considered the revenues
and profitability of the Investment Adviser's businesses other than the fund
business, including the Investment Adviser's institutional investment
advisory business. The Trustees considered the intangible benefits that
accrue to the Investment Adviser and its affiliates by virtue of its
relationship with the Fund and the Pioneer Funds as a group. The Trustees
concluded that all these types of
86
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
benefits accruing to the Investment Adviser were reasonable in the context
of the overall relationship between the Investment Adviser and the Fund.
Conclusion. In light of the Investment Adviser's and Sub-adviser's overall
performance, the Trustees considered it appropriate to continue to retain the
management services of the Investment Adviser and the Sub-adviser. Based on
their review of the overall nature and quality of services provided by the
Investment Adviser and Sub-adviser and the fees charged by other funds in the
Fund's relevant peer group, and taking into account all material factors deemed
relevant by the trustees as well as the advice of independent counsel, the
Trustees concluded that the Management Contract with the Fund and the
Sub-advisory Agreement, including the fee payable thereunder, were fair and
reasonable and that their renewal was in the best interests of the Fund and its
shareowners. Accordingly, the Trustees voted to approve the continuation of the
Management Contract and the Sub-advisory Agreement for another year.
87
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT
- --------------------------------------------------------------------------------
The Investment Company Act of 1940 requires that both the Board of Trustees and
a majority of the Independent Trustees (collectively "the Trustees"), voting
separately, annually approve the Fund's management contract (the "Management
Contract") between the Fund and Pioneer Investment Management, Inc., the Fund's
adviser (the "Investment Adviser"). The Investment Adviser has retained Ibbotson
Associates Advisors, LLC (the "Sub-adviser") to act as sub-adviser to the Fund
pursuant to a sub-advisory agreement between the Investment Adviser and the
Sub-adviser (the "Sub-advisory Agreement"). The Trustees have determined that
the terms of the Management Contract and the Sub-advisory Agreement are fair and
reasonable and that renewal of these contracts: (i) will enable the Fund to
receive quality investment advisory services at a fee deemed reasonable; and
(ii) is in the best interests of the Fund and its shareowners. In making such
determinations, the Independent Trustees relied upon the assistance of counsel
to the Independent Trustees and counsel to the Fund.
Throughout the year, the Independent Trustees regularly met in executive
session, separately from the Interested Trustees of the Fund and any officer of
the Investment Adviser, or its affiliates. While the Trustees, including the
Interested Trustees, act on all major matters relating to the Fund, a
significant portion of the activities of the Board of Trustees (including
certain of those described herein) is conducted through committees, the members
of which are comprised exclusively of Independent Trustees. Such committee
meetings are attended by officers of the Fund and/or officers of the Investment
Adviser to the extent requested by the members of the committee.
In evaluating the Management Contract and Sub-advisory Agreement, the Trustees
conducted a review that was specifically focused upon the renewal of the
Management Contract and Sub-advisory Agreement, and also relied upon their
knowledge, resulting from their meetings throughout the year, of the Investment
Adviser, its services and the Fund. Both in meetings specifically dedicated to
renewal of the Management Contract and at other meetings during the course of
the year, the Trustees, including the Independent Trustees, received materials
relating to the Investment Adviser's investment and management services under
the Management Contract. These materials included information on (i) the
investment performance of the Fund, a peer group of funds as classified by
Morningstar, Inc., an independent evaluation service ("Morningstar") and an
index considered appropriate by the Independent Trustees for this purpose, (ii)
sales and
88
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
redemption activity in respect of the Fund, (iii) the general investment outlook
in the markets in which the Fund invests, (iv) arrangements in respect of the
distribution of the Fund's shares, (v) the procedures employed to determine the
value of each of the Fund's assets, (vi) the Investment Adviser's management of
the relationships with the Fund's unaffiliated service providers, (vii) the
record of compliance with the Fund's investment policies and restrictions and
with the Fund's Code of Ethics and the structure and responsibilities of the
Investment Adviser's compliance department, (viii) the nature, cost and
character of non-investment management services provided by the Investment
Adviser and its affiliates and (ix) the investment and compliance staff and
operations of the Subadviser.
Specifically, in connection with the Independent Trustees' review of the
Management Contract and the Sub-advisory Agreement, the Independent Trustees
requested, and the Investment Adviser provided, additional information in order
to evaluate the quality of the Investment Adviser's and Sub-adviser's services
and the reasonableness of the fee under the Management Contract and the
Sub-advisory Agreement. Among other items, this information included data or
analyses of (1) investment performance for one year period for the Fund and a
peer group of funds selected on the basis of criteria considered appropriate by
the Independent Trustees for this purpose, (2) management and other fees
incurred by a peer group of funds selected on the basis of criteria considered
appropriate by the Independent Trustees for this purpose, (3) the advisory fees
of comparable portfolios of other clients of the Investment Adviser and the
Sub-adviser, (4) expense ratios for the Fund and a peer group of funds selected
on the basis of criteria considered appropriate by the Independent Trustees for
this purpose, (5) the overall organization of the Investment Adviser and the
Sub-adviser, (6) the Investment Adviser's and the Sub-adviser's financial
results and condition, including in the case of the Sub-adviser, its and certain
of its affiliates' profitability in providing services to the Fund, (7) transfer
agency fees and administrative reimbursements paid to the Investment Adviser or
affiliates, (8) investment management staffing, and (9) operating expenses paid
by the Funds to third parties. The Trustees also reviewed information regarding
the potential for each of the Fund and the Investment Adviser to benefit from
further economies of scale in the management of the Fund in light of reasonable
growth expectations for the Fund, the breakpoints in the Fund's management fee
and the management
89
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
fee of a peer group of funds selected by the Independent Trustees for this
purpose and certain of the Fund's expenses that are incurred on a basis other
than as a percentage of net assets.
The following summarizes factors considered by the Trustees in connection with
reviewing the information described above and their renewal of the Fund's
Management Contract. The Trustees did not identify any single factor as
all-important or controlling, and the summary does not detail all the matters
that were considered.
A. Ancillary Benefits to Shareowners. The Trustees considered the benefits to
shareowners of investing in a Fund that is part of a large number of
investment companies offering a variety of investment disciplines and
providing for a large variety of Fund and shareowner services.
B. Compliance and Investment Performance. The Trustees determined that the
Investment Adviser and the Sub-adviser had policies and systems reasonably
designed to achieve compliance with the Fund's investment objective and
regulatory requirements. The Trustees also reviewed the Fund's absolute
investment performance based upon total return, as well as the Fund's
performance relative to the performance of both a peer group and an index
considered appropriate by the Independent Trustees for this purpose. The
Fund's performance, based upon total return, was in the first quintile of
its Morningstar category peer group for the 12 months ended June 30, 2006.
(In all quintile rankings referred to throughout this discussion first
quintile is most favorable to the Fund's shareowners. Thus, highest relative
performance would be first quintile and lowest relative expenses also would
be first quintile.) The Trustees also considered the activities of the
Investment Adviser in monitoring the investment and compliance operations of
the Sub-adviser. The Trustees concluded that the performance of the Fund was
strong during the short period since its inception.
C. The Investment Adviser's Personnel and Methods. The Trustees reviewed the
background of members of the team responsible for the daily management of
the Fund and the Fund's investment objective and discipline. The Independent
Trustees also have had discussions with senior management of the Investment
Adviser and the Subadviser responsible for investment operations. Among
other things, the Trustees considered the size, education and experience of
the Sub-adviser's investment staff. The Trustees
90
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
concluded that the Investment Adviser and the Sub-adviser have the quality
and depth of personnel and the well-developed methods essential to
performing their duties under the Management Contract and the Sub-advisory
Agreement.
D. Nature and Quality of Other Services. The Trustees considered the nature,
quality and extent of other services provided to shareowners of the Fund,
including administrative and shareowner services performed by the Investment
Adviser under the Management Contract. The Trustees also considered the
reasonableness of the arrangements for reimbursement of the Investment
Adviser's out-of-pocket costs and expenses, including overhead, for certain
administrative services that the Investment Adviser is not required to
provide under the Management Contract. The Trustees also considered the
nature and extent of the other services provided by the Investment Adviser
or its affiliates under other contracts, as well as the Investment Adviser's
supervision of third party service providers. Based on these considerations,
the Trustees concluded that the nature, quality and extent of such services
are satisfactory and reliable and serve the shareowners of the Fund well.
E. Management Fee and Expenses. The Trustees considered the Investment
Adviser's fee under the Management Contract relative to the management fees
charged by its Morningstar category peer group. The Fund's management fee
for the 12 months ended June 30, 2006 was in the second quintile, relative
to the management fees paid by the other funds in that peer group for the
comparable period. The Trustees also evaluated the fee under the
Sub-advisory Agreement and the portion of the fee under the Management
Contract retained by the Investment Adviser and determined that they were
consistent with other sub-advised funds. The Trustees also considered the
Fund's expense ratio for the 12 months ended June 30, 2006 and expense
ratios for the comparable period of a peer group of funds selected on the
basis of criteria considered appropriate by the Independent Trustees for
this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC, an independent third party. The Trustees found the
Fund's expense ratio for the 12 months ended June 30, 2006 to be in the
fifth quintile of the applicable peer group for the most recent fiscal year.
91
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
F. Profitability. The Trustees considered the level of the Investment Adviser's
profits with respect to the management of the Pioneer Funds, including
details with respect to the Fund. This consideration included a review of
the Investment Adviser's methodology in allocating certain of its costs to
the management of each Fund. The Trustees also considered the financial
results realized by the Investment Adviser in connection with the operation
of the Fund. They further considered the profits realized by the Investment
Adviser and its affiliates from non-fund businesses that may benefit from or
be related to the Fund's business. The Trustees considered the Investment
Adviser's profit margins in comparison with the limited industry data
available. The Trustees concluded that the Investment Adviser's profits from
management of the Pioneer Funds, including the financial results derived
from the Fund, bear a reasonable relationship to the services rendered and
are fair for the management of the Fund.
G. Economies of Scale. The Trustees considered the economies of scale with
respect to the management of the Fund, whether the Fund had appropriately
benefited from any economies of scale, and whether there was potential for
realization of any further economies of scale. The Trustees concluded that
in light of anticipated growth of the Fund, break points in the management
fee were not necessary at this time. However, the Trustees would evaluate
the need for break points from time to time.
H. Other Benefits to the Investment Adviser. The Trustees also considered the
character and amount of fees paid by the Fund, other than under the
Management Contract, for services provided by the Investment Adviser and
affiliates, including fees for services such as shareowner services. The
Trustees also considered the receipt of sales loads and payments under Rule
12b-1 plans in respect of the Pioneer Funds (including the Fund), and
benefits to the Investment Adviser from the use of "soft" commission dollars
to pay for research services. The Trustees further considered the revenues
and profitability of the Investment Adviser's businesses other than the fund
business, including the Investment Adviser's institutional investment
advisory business. The Trustees considered the intangible benefits that
accrue to the Investment Adviser and its affiliates by virtue of its
relationship with the Fund and the Pioneer Funds as a group. The Trustees
concluded that all these types of
92
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
benefits accruing to the Investment Adviser were reasonable in the context
of the overall relationship between the Investment Adviser and the Fund.
Conclusion. In light of the Investment Adviser's and Sub-adviser's overall
performance, the Trustees considered it appropriate to continue to retain the
management services of the Investment Adviser and the Sub-adviser. Based on
their review of the overall nature and quality of services provided by the
Investment Adviser and Sub-adviser and the fees charged by other funds in the
Fund's relevant peer group, and taking into account all material factors deemed
relevant by the trustees as well as the advice of independent counsel, the
Trustees concluded that the Management Contract with the Fund and the
Sub-advisory Agreement, including the fee payable thereunder, were fair and
reasonable and that their renewal was in the best interests of the Fund and its
shareowners. Accordingly, the Trustees voted to approve the continuation of the
Management Contract and the Sub-advisory Agreement for another year.
93
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT
- --------------------------------------------------------------------------------
The Investment Company Act of 1940 requires that both the Board of Trustees and
a majority of the Independent Trustees (collectively "the Trustees"), voting
separately, annually approve the Fund's management contract (the "Management
Contract") between the Fund and Pioneer Investment Management, Inc., the Fund's
adviser (the "Investment Adviser"). The Investment Adviser has retained Ibbotson
Associates Advisors, LLC (the "Sub-adviser") to act as sub-adviser to the Fund
pursuant to a sub-advisory agreement between the Investment Adviser and the
Sub-adviser (the "Sub-advisory Agreement"). The Trustees have determined that
the terms of the Management Contract and the Sub-advisory Agreement are fair and
reasonable and that renewal of these contracts: (i) will enable the Fund to
receive quality investment advisory services at a fee deemed reasonable; and
(ii) is in the best interests of the Fund and its shareowners. In making such
determinations, the Independent Trustees relied upon the assistance of counsel
to the Independent Trustees and counsel to the Fund.
Throughout the year, the Independent Trustees regularly met in executive
session, separately from the Interested Trustees of the Fund and any officer of
the Investment Adviser, or its affiliates. While the Trustees, including the
Interested Trustees, act on all major matters relating to the Fund, a
significant portion of the activities of the Board of Trustees (including
certain of those described herein) is conducted through committees, the members
of which are comprised exclusively of Independent Trustees. Such committee
meetings are attended by officers of the Fund and/or officers of the Investment
Adviser to the extent requested by the members of the committee.
In evaluating the Management Contract and Sub-advisory Agreement, the Trustees
conducted a review that was specifically focused upon the renewal of the
Management Contract and Sub-advisory Agreement, and also relied upon their
knowledge, resulting from their meetings throughout the year, of the Investment
Adviser, its services and the Fund. Both in meetings specifically dedicated to
renewal of the Management Contract and at other meetings during the course of
the year, the Trustees, including the Independent Trustees, received materials
relating to the Investment Adviser's investment and management services under
the Management Contract. These materials included information on (i) the
investment performance of the Fund, a peer group of funds as classified by
Morningstar, Inc., an independent evaluation service ("Morningstar") and an
index considered appropriate by the Independent Trustees for this purpose, (ii)
sales and
94
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
redemption activity in respect of the Fund, (iii) the general investment outlook
in the markets in which the Fund invests, (iv) arrangements in respect of the
distribution of the Fund's shares, (v) the procedures employed to determine the
value of each of the Fund's assets, (vi) the Investment Adviser's management of
the relationships with the Fund's unaffiliated service providers, (vii) the
record of compliance with the Fund's investment policies and restrictions and
with the Fund's Code of Ethics and the structure and responsibilities of the
Investment Adviser's compliance department, (viii) the nature, cost and
character of non-investment management services provided by the Investment
Adviser and its affiliates and (ix) the investment and compliance staff and
operations of the Subadviser.
Specifically, in connection with the Independent Trustees' review of the
Management Contract and the Sub-advisory Agreement, the Independent Trustees
requested, and the Investment Adviser provided, additional information in order
to evaluate the quality of the Investment Adviser's and Sub-adviser's services
and the reasonableness of the fee under the Management Contract and the
Sub-advisory Agreement. Among other items, this information included data or
analyses of (1) investment performance for one year period for the Fund and a
peer group of funds selected on the basis of criteria considered appropriate by
the Independent Trustees for this purpose, (2) management and other fees
incurred by a peer group of funds selected on the basis of criteria considered
appropriate by the Independent Trustees for this purpose, (3) the advisory fees
of comparable portfolios of other clients of the Investment Adviser and the
Sub-adviser, (4) expense ratios for the Fund and a peer group of funds selected
on the basis of criteria considered appropriate by the Independent Trustees for
this purpose, (5) the overall organization of the Investment Adviser and the
Sub-adviser, (6) the Investment Adviser's and the Sub-adviser's financial
results and condition, including in the case of the Sub-adviser, its and certain
of its affiliates' profitability in providing services to the Fund, (7) transfer
agency fees and administrative reimbursements paid to the Investment Adviser or
affiliates, (8) investment management staffing, and (9) operating expenses paid
by the Funds to third parties. The Trustees also reviewed information regarding
the potential for each of the Fund and the Investment Adviser to benefit from
further economies of scale in the management of the Fund in light of reasonable
growth expectations for the Fund, the breakpoints in the Fund's management fee
and the management
95
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
fee of a peer group of funds selected by the Independent Trustees for this
purpose and certain of the Fund's expenses that are incurred on a basis other
than as a percentage of net assets.
The following summarizes factors considered by the Trustees in connection with
reviewing the information described above and their renewal of the Fund's
Management Contract. The Trustees did not identify any single factor as
all-important or controlling, and the summary does not detail all the matters
that were considered.
A. Ancillary Benefits to Shareowners. The Trustees considered the benefits to
shareowners of investing in a Fund that is part of a large number of
investment companies offering a variety of investment disciplines and
providing for a large variety of Fund and shareowner services.
B. Compliance and Investment Performance. The Trustees determined that the
Investment Adviser and the Sub-adviser had policies and systems reasonably
designed to achieve compliance with the Fund's investment objective and
regulatory requirements. The Trustees also reviewed the Fund's absolute
investment performance based upon total return, as well as the Fund's
performance relative to the performance of both a peer group and an index
considered appropriate by the Independent Trustees for this purpose. The
Fund's performance, based upon total return, was in the first quintile of
its Morningstar category peer group for the 12 months ended June 30, 2006.
(In all quintile rankings referred to throughout this discussion first
quintile is most favorable to the Fund's shareowners. Thus, highest relative
performance would be first quintile and lowest relative expenses also would
be first quintile.) The Trustees also considered the activities of the
Investment Adviser in monitoring the investment and compliance operations of
the Sub-adviser. The Trustees concluded that the performance of the Fund was
strong during the short period since its inception.
C. The Investment Adviser's Personnel and Methods. The Trustees reviewed the
background of members of the team responsible for the daily management of
the Fund and the Fund's investment objective and discipline. The Independent
Trustees also have had discussions with senior management of the Investment
Adviser and the Subadviser responsible for investment operations. Among
other things, the Trustees considered the size, education and experience of
the Sub-adviser's investment staff. The Trustees
96
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
concluded that the Investment Adviser and the Sub-adviser have the quality
and depth of personnel and the well-developed methods essential to
performing their duties under the Management Contract and the Sub-advisory
Agreement.
D. Nature and Quality of Other Services. The Trustees considered the nature,
quality and extent of other services provided to shareowners of the Fund,
including administrative and shareowner services performed by the Investment
Adviser under the Management Contract. The Trustees also considered the
reasonableness of the arrangements for reimbursement of the Investment
Adviser's out-of-pocket costs and expenses, including overhead, for certain
administrative services that the Investment Adviser is not required to
provide under the Management Contract. The Trustees also considered the
nature and extent of the other services provided by the Investment Adviser
or its affiliates under other contracts, as well as the Investment Adviser's
supervision of third party service providers. Based on these considerations,
the Trustees concluded that the nature, quality and extent of such services
are satisfactory and reliable and serve the shareowners of the Fund well.
E. Management Fee and Expenses. The Trustees considered the Investment
Adviser's fee under the Management Contract relative to the management fees
charged by its Morningstar category peer group. The Fund's management fee
for the 12 months ended June 30, 2006 was in the second quintile, relative
to the management fees paid by the other funds in that peer group for the
comparable period. The Trustees also evaluated the fee under the
Sub-advisory Agreement and the portion of the fee under the Management
Contract retained by the Investment Adviser and determined that they were
consistent with other sub-advised funds. The Trustees also considered the
Fund's expense ratio for the 12 months ended June 30, 2006 and expense
ratios for the comparable period of a peer group of funds selected on the
basis of criteria considered appropriate by the Independent Trustees for
this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC, an independent third party. The Trustees found the
Fund's expense ratio for the 12 months ended June 30, 2006 to be in the
fifth quintile of the applicable peer group for the most recent fiscal year.
97
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
F. Profitability. The Trustees considered the level of the Investment Adviser's
profits with respect to the management of the Pioneer Funds, including
details with respect to the Fund. This consideration included a review of
the Investment Adviser's methodology in allocating certain of its costs to
the management of each Fund. The Trustees also considered the financial
results realized by the Investment Adviser in connection with the operation
of the Fund. They further considered the profits realized by the Investment
Adviser and its affiliates from non-fund businesses that may benefit from or
be related to the Fund's business. The Trustees considered the Investment
Adviser's profit margins in comparison with the limited industry data
available. The Trustees concluded that the Investment Adviser's profits from
management of the Pioneer Funds, including the financial results derived
from the Fund, bear a reasonable relationship to the services rendered and
are fair for the management of the Fund.
G. Economies of Scale. The Trustees considered the economies of scale with
respect to the management of the Fund, whether the Fund had appropriately
benefited from any economies of scale, and whether there was potential for
realization of any further economies of scale. The Trustees concluded that
in light of anticipated growth of the Fund, break points in the management
fee were not necessary at this time. However, the Trustees would evaluate
the need for break points from time to time.
H. Other Benefits to the Investment Adviser. The Trustees also considered the
character and amount of fees paid by the Fund, other than under the
Management Contract, for services provided by the Investment Adviser and
affiliates, including fees for services such as shareowner services. The
Trustees also considered the receipt of sales loads and payments under Rule
12b-1 plans in respect of the Pioneer Funds (including the Fund), and
benefits to the Investment Adviser from the use of "soft" commission dollars
to pay for research services. The Trustees further considered the revenues
and profitability of the Investment Adviser's businesses other than the fund
business, including the Investment Adviser's institutional investment
advisory business. The Trustees considered the intangible benefits that
accrue to the Investment Adviser and its affiliates by virtue of its
relationship with the Fund and the Pioneer Funds as a group. The Trustees
concluded that all these types of
98
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
benefits accruing to the Investment Adviser were reasonable in the context
of the overall relationship between the Investment Adviser and the Fund.
Conclusion. In light of the Investment Adviser's and Sub-adviser's overall
performance, the Trustees considered it appropriate to continue to retain the
management services of the Investment Adviser and the Sub-adviser. Based on
their review of the overall nature and quality of services provided by the
Investment Adviser and Sub-adviser and the fees charged by other funds in the
Fund's relevant peer group, and taking into account all material factors deemed
relevant by the trustees as well as the advice of independent counsel, the
Trustees concluded that the Management Contract with the Fund and the
Sub-advisory Agreement, including the fee payable thereunder, were fair and
reasonable and that their renewal was in the best interests of the Fund and its
shareowners. Accordingly, the Trustees voted to approve the continuation of the
Management Contract and the Sub-advisory Agreement for another year.
99
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Vincent Nave, Treasurer
Mary K. Bush Dorothy E. Bourassa, Secretary
Margaret B.W. Graham
Thomas J. Perna
Marguerite A. Piret
John Winthrop
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the 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. This information is also available on our web
site at www.pioneerinvestments.com and on the Securities and Exchange
Commission's web site at http://www.sec.gov.
100
- --------------------------------------------------------------------------------
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
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 website: www.pioneerinvestments.com
Please consider the Fund's investment objectives, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about the Fund and should be read carefully before you invest. To obtain a
prospectus and for other information on any Pioneer fund, call 1-800-225-6292
or visit our website www.pioneerinvestments.com.
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 sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
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 control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
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 Ibbotson Asset Allocation Series
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date March 30, 2007
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 March 30, 2007
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date March 30, 2007
* Print the name and title of each signing officer under his or her signature.