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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05516
Pioneer America Income Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: December 31
Date of reporting period: January 1, 2004 through June 30, 2004
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1.REPORTS TO SHAREOWNERS.
PIONEER
-----------------------
AMERICA
INCOME
TRUST
Semiannual
Report
6/30/04
[LOGO] PIONEER
Investments(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 7
Schedule of Investments 10
Financial Statements 13
Notes to Financial Statements 21
The Pioneer Family of Mutual Funds 26
Trustees, Officers and Service Providers 27
Pioneer America Income Trust
- --------------------------------------------------------------------------------
LETTER TO SHAREOWNERS 6/30/04
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
U.S. equity markets traced a jagged course through the first half of the year,
ending on June 30 only slightly ahead of where they started. Mid-sized and
small-cap indices scored modest gains, while indicators that track large-cap
stocks showed even smaller changes. For bond investors, Treasury issues wound
up the period with higher yields and lower prices than at year-end. The same
was true of corporate issues, whose prices gave ground in the face of rising
interest rates, while high-yield bonds, outstanding performers over recent
quarters, also cooled off.
Although the economic expansion continued to move ahead, investors were
preoccupied with factors that might have undesirable impacts on the economy and
the markets. For one thing, the threat of terrorism is never far from our
minds. For another, the jump in oil prices, attributed to turmoil in the
Mideast and vast demand from China and other developing nations, was a major
factor. The cost of gas or oil for heating our homes, and gasoline for our cars
is a critical component in household budgets. Industry, too, requires energy,
and in many cases petroleum is an essential raw material.
The "jobless" recovery became a job-generating machine for a few months,
followed by a brief slump and a partial rebound. But strong boosts in
employment quickly triggered fears of economic overheating; too much demand for
goods and services, the reasons for aggressive corporate hiring, might trigger
inflation. That would lead to higher interest rates that could choke off the
recovery by causing consumers and businesses to hold back on outlays. In fact,
on June 30, the Federal Reserve Board raised short-term interest rates by
one-quarter percentage point, the first hike in four years.
While there may be further increases, they probably will be gradual; the
Federal Reserve Board would like to keep the expansion intact while keeping
inflation at bay. And even after the Fed's June move, short-term rates remain
near the lowest levels many of us have seen. U.S. businesses, which have done
massive amounts of cost-cutting in recent years, can readily accommodate
somewhat higher borrowing costs. In addition, the federal income tax cuts that
have helped bolster growth over the past several quarters remain in place.
More growth choices from Pioneer
The possibility of higher interest rates and the economy's direction could have
important implications for the way your portfolio is balanced, so an
appointment with your professional financial advisor may well be in order.
When you talk to your advisor, ask to hear about the Pioneer Oak Ridge and
Pioneer Papp Funds. These six additions to our product lineup are designed to
broaden your opportunities to pursue growth. Please consider the Funds'
investment objectives, risks, charges and expenses carefully before investing.
The prospectus contains that and other information about the Fund and should be
read carefully before you invest or send money. To obtain a prospectus and for
other information on any Pioneer fund, contact your investment advisor, call
1-800-225-6292 or visit our web site www.pioneerfunds.com.
Respectfully,
/s/ Osbert M. Hood
Osbert M. Hood
President
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
1
Pioneer America Income Trust
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PORTFOLIO SUMMARY 6/30/04
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[The following table was depicted as a pie chart in the printed material.
U.S. Government Agency Obligations 73.6%
U.S. Treasury Obligations 22.3%
Temporary Cash Investment 4.1%
Portfolio Maturity
- --------------------------------------------------------------------------------
(Effective life as a percentage of total investment portfolio)
[The following table was depicted as a pie chart in the printed material.
0-1 Years 3.0%
1-3 Years 39.3%
3-4 Years 36.5%
4-6 Years 11.4%
6-8 Years 0.6%
8+ Years 9.2%
10 Largest Holdings
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(As a percentage of debt holdings)
1. U.S. Treasury Notes, 6.5%, 2/15/10 9.10%
2. U.S. Treasury Bonds, 7.25%, 5/15/16 6.27
3. Government National Mortgage Association II, 5.5%, 3/20/34 3.23
4. U.S. Treasury Notes, 6.375%, 8/15/27 3.15
5. Government National Mortgage Association II, 6.0%, 12/20/33 2.52
6. Government National Mortgage Association, 5.5%, 7/15/33 2.16
7. Government National Mortgage Association, 6.0%, 11/15/32 2.15
8. U.S. Treasury Notes, 4.625%, 5/15/06 1.83
9. Government National Mortgage Association, 5.5%, 5/15/33 1.82
10. Government National Mortgage Association II, 5.5%, 2/20/34 1.72
This list excludes money market and derivative instruments. Portfolio holdings
will vary for other periods.
2
Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/04 CLASS A SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value per Share 6/30/04 12/31/03
$9.72 $9.95
Net
Distributions per Share Investment Short-Term Long-Term
(1/1/04 - 6/30/04) Income Capital Gains Capital Gains
$0.2171 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust at public offering price,
compared to that of the Lehman Brothers Government Bond Index and of the Lehman
Brothers Fixed-Rate Mortgage-Backed Securities Index.
- ----------------------------------------------
Average Annual Total Returns
(As of June 30, 2004)
Net Asset Public Offering
Period Value Price*
10 Years 5.97% 5.48%
5 Years 5.64 4.68
1 Year -0.37 -4.81
- ----------------------------------------------
* Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
Value of $10,000 Investment
[The following table was depicted as a pie chart in the printed material.
Lehman Brothers
Fixed-Rate Lehman Brothers
Pioneer America Mortgage-Backed Government
Income Trust* Securities Index Bond Index
6/94 9550 10000 10000
9580 10130 10077
11119 11832 11926
6/96 11374 12466 12255
12342 13648 13429
6/98 13302 14599 14752
12965 14869 14421
6/00 14467 16529 16331
15324 17888 17513
6/02 16821 19452 19527
17069 20045 19988
6/04 17045 20200 19964
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For performance
data that is current to the most recent month-end, please call 1-800-225-6292
or visit our web site www.pioneerfunds.com.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Trust distributions or the redemption of Trust shares.
Prior to May 1, 2003, the Trust's investment adviser, Pioneer Investment
Management, Inc., reduced its management fee and certain other expenses,
otherwise, returns would have been lower. Expense limitation for the Trust's
Class A shares applies proportionately to Class B, C and R shares.
The Lehman Brothers Government Bond Index is an unmanaged measure of the
performance of U.S. Treasury debt, all publicly issued debt of U.S. government
agencies and quasi-federal corporations, and corporate debt guaranteed by the
U.S. government. The Lehman Brothers Fixed-Rate Mortgage-Backed Securities
Index is an unmanaged index including 15- and 30-year fixed rate securities
backed by mortgage pools of the Government National Mortgage Association
(GNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Federal National
Mortgage Association (FNMA). Index returns assume reinvestment of dividends
and, unlike Trust returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in the Indexes.
3
Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/04 CLASS B SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value per Share 6/30/04 12/31/03
$9.66 $9.89
Net
Distributions per Share Investment Short-Term Long-Term
(1/1/04 - 6/30/04) Income Capital Gains Capital Gains
$0.1752 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust, compared to that of the Lehman
Brothers Government Bond Index and of the Lehman Brothers Fixed-Rate
Mortgage-Backed Securities Index.
- ----------------------------------------------
Average Annual Total Returns
(As of June 30, 2004)
If If
Period Held Redeemed*
10 Years 5.13% 5.13%
5 Years 4.76 4.60
1 Year -1.21 -5.00
- ----------------------------------------------
* Reflects deduction of the maximum applicable contingent deferred sales charge
(CDSC) at the end of the period and assumes reinvestment of distributions. The
maximum CDSC of 4% declines to zero over six years.
Value of $10,000 Investment
[The following table was depicted as a pie chart in the printed material.
Lehman Brothers
Fixed-Rate Lehman Brothers
Pioneer America Mortgage-Backed Government
Income Trust* Securities Index Bond Index
6/94 10000 10000 10000
9991 10130 10077
11497 11832 11926
6/96 11680 12466 12255
12569 13648 13429
6/98 13459 14599 14752
13022 14869 14421
6/00 14413 16529 16331
15132 17888 17513
6/02 16467 19452 19527
16580 20045 19988
6/04 16487 20200 19964
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For performance
data that is current to the most recent month-end, please call 1-800-225-6292
or visit our web site www.pioneerfunds.com.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Trust distributions or the redemption of Trust shares.
Prior to May 1, 2003, the Trust's investment adviser, Pioneer Investment
Management, Inc., reduced its management fee and certain other expenses,
otherwise, returns would have been lower. Expense limitation for the Trust's
Class A shares applies proportionately to Class B, C and R shares.
Index comparisons begin 4/30/94. The Lehman Brothers Government Bond Index is
an unmanaged measure of the performance of U.S. Treasury debt, all publicly
issued debt of U.S. government agencies and quasi-federal corporations, and
corporate debt guaranteed by the U.S. government. The Lehman Brothers
Fixed-Rate Mortgage-Backed Securities Index is an unmanaged index including 15-
and 30-year fixed rate securities backed by mortgage pools of the Government
National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation
(FHLMC) and Federal National Mortgage Association (FNMA). Index returns assume
reinvestment of dividends and, unlike Trust returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in the Indexes.
4
Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/04 CLASS C SHARES
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Share Prices and Distributions
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Net Asset Value per Share 6/30/04 12/31/03
$9.69 $9.92
Net
Distributions per Share Investment Short-Term Long-Term
(1/1/04 - 6/30/04) Income Capital Gains Capital Gains
$0.1801 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust, compared to that of the Lehman
Brothers Government Bond Index and of the Lehman Brothers Fixed-Rate
Mortgage-Backed Securities Index.
- ----------------------------------------------
Average Annual Total Returns
(As of June 30, 2004)
If If
Period Held Redeemed*
Life-of-Class
(1/31/96) 4.35% 4.35%
5 Years 4.82 4.82
1 Year -1.07 -1.07
- ----------------------------------------------
* The performance of Class C shares does not reflect the 1% front-end sales
charge in effect prior to February 1, 2004. If you paid a 1% sales charge,
your returns would be lower than those shown above. Class C shares held for
less than 1 year are subject to a 1% contingent deferred sales charge.
Value of $10,000 Investment
[The following table was depicted as a pie chart in the printed material.
Lehman Brothers
Fixed-Rate Lehman Brothers
Pioneer America Mortgage-Backed Government
Income Trust* Securities Index Bond Index
1/96 10000 10000 10000
10104 10457 10214
10890 11449 11192
12/98 11663 12247 12295
11291 12473 12019
12/00 12479 13866 13611
13109 15006 14596
12/02 14279 16317 16274
14387 16815 16659
6/04 14313 16945 16638
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For performance
data that is current to the most recent month-end, please call 1-800-225-6292
or visit our web site www.pioneerfunds.com.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Trust distributions or the redemption of Trust shares.
Prior to May 1, 2003, the Trust's investment adviser, Pioneer Investment
Management, Inc., reduced its management fee and certain other expenses,
otherwise, returns would have been lower. Expense limitation for the Trust's
Class A shares applies proportionately to Class B, C and R shares.
The Lehman Brothers Government Bond Index is an unmanaged measure of the
performance of U.S. Treasury debt, all publicly issued debt of U.S. government
agencies and quasi-federal corporations, and corporate debt guaranteed by the
U.S. government. The Lehman Brothers Fixed-Rate Mortgage-Backed Securities
Index is an unmanaged index including 15- and 30-year fixed rate securities
backed by mortgage pools of the Government National Mortgage Association
(GNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Federal National
Mortgage Association (FNMA). Index returns assume reinvestment of dividends
and, unlike Trust returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in the Indexes.
5
Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/04 CLASS R SHARES
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Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value per Share 6/30/04 12/31/03
$9.82 $10.07
Net
Distributions per Share Investment Short-Term Long-Term
(1/1/04 - 6/30/04) Income Capital Gains Capital Gains
$0.2196 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer America Income Trust, compared to that of the Lehman
Brothers Government Bond Index and of the Lehman Brothers Fixed-Rate
Mortgage-Backed Securities Index.
- ----------------------------------------------
Average Annual Total Returns
(As of June 30, 2004)
If If
Period Held Redeemed*
10 Years 5.56% 5.56%
5 Years 5.35 5.35
1 Year -0.39 -0.39
- ----------------------------------------------
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of 1% CDSC. Shares sold within 18 months of purchase may be
subject to CDSC.
Value of $10,000 Investment
[The following table was depicted as a pie chart in the printed material.
Lehman Brothers
Fixed-Rate Lehman Brothers
Pioneer America Mortgage-Backed Government
Income Trust* Securities Index Bond Index
6/94 10000 10000 10000
10009 10130 10077
11558 11832 11926
6/96 11764 12466 12255
12701 13648 13429
6/98 13620 14599 14752
13210 14869 14421
6/00 14667 16529 16331
15457 17888 17513
6/02 16883 19452 19527
17227 20045 19988
6/04 17173 20200 19964
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For performance
data that is current to the most recent month-end, please call 1-800-225-6292
or visit our web site www.pioneerfunds.com.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Trust distributions or the redemption of Trust shares.
The performance of Class R shares for the period prior to the commencement of
operations of Class R shares on April 1, 2003 is based on the performance of
Class A shares, reduced to reflect the higher distribution and service fees of
Class R shares. For the period after Aril 1, 2003, the actual performance of
Class R shares is reflected, which performance may be influenced by the smaller
asset size of Class R shares compared to Class A shares.
Prior to May 1, 2003, the Trust's investment adviser, Pioneer Investment
Management, Inc., reduced its management fee and certain other expenses,
otherwise, returns would have been lower. Expense limitation for the Trust's
Class A shares applies proportionately to Class B, C and R shares.
The Lehman Brothers Government Bond Index is an unmanaged measure of the
performance of U.S. Treasury debt, all publicly issued debt of U.S. government
agencies and quasi-federal corporations, and corporate debt guaranteed by the
U.S. government. The Lehman Brothers Fixed-Rate Mortgage-Backed Securities Index
is an unmanaged index including 15- and 30-year fixed rate securities backed by
mortgage pools of the Government National Mortgage Association (GNMA), Federal
Home Loan Mortgage Corporation (FHLMC) and Federal National Mortgage Association
(FNMA). Index returns assume reinvestment of dividends and, unlike Trust
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in the Indexes.
6
Pioneer America Income Trust
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/04
- --------------------------------------------------------------------------------
In an improving economy, uncertainty about rising interest rates dominated
market sentiment. As a result, the yields on fixed-income securities declined
and then rose, as investors tried to determine when the Federal Reserve would
raise interest rates and by how much. In this volatile environment, Pioneer
America Income Trust delivered a relatively high level of income to
shareholders. In the interview below, Richard Schlanger, a member of the
Pioneer fixed-income team, discusses the factors that affected the fixed-income
market and the Trust over the past six months.
Q: How did the Trust perform during the six-month period ended June 30, 2004?
A: For the six-month period ended June 30, 2004, Class A shares of Pioneer
America Income Trust produced a total return of -0.14% at net asset value.
The Trust performed in line with the Lehman Brothers Government Bond Index,
which returned -0.13% for the same period. It underperformed the Lehman
Brothers Fixed-Rate Mortgage-Backed Index, which returned 0.77%. We attribute
the Fund's underperformance relative to the Lehman Brothers Fixed-Rate
Mortgage-Backed Index to the fact that the index has significant exposure to
securities issued by the Federal Home Loan Mortgage Corporation (Freddie Mac)
and the Federal National Mortgage Association (Fannie Mae), which
outperformed. Because these securities do not have the backing of the full
faith and credit of the U.S. Government, we do not invest in them. The Trust
outperformed the -0.32% return generated by the General U.S. Government Funds
Category of Lipper, Inc., an independent monitor of mutual fund performance.
At the end of the period, the 30-day SEC yield for Class A shares was 4.26%.
Q: What was the investment environment like during the period?
A: For the first three months of 2004, concerns about geopolitical issues and
the "jobless" economic recovery kept interest rates at 45-year lows. When we
moved into the second calendar quarter of 2004, however, the employment
picture changed dramatically. Several hundred thousand jobs were added to the
economy in April and May, leading to concerns about accelerating inflation,
the pace of Federal Reserve tightening and higher interest rates. In
7
Pioneer America Income Trust
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/04 (continued)
- --------------------------------------------------------------------------------
this environment, market interest rates rose, causing the yield curve to
flatten. (The yield curve shows the relationship between bond yields and
maturity lengths.) Normally, the yield curve is positively sloped, with
yields on long-term bonds exceeding those on short-term bonds. The yield
curve flattens when yields on short-term bonds rise more than those on
long-term bonds, as was the case during the period. As interest rates rose,
bond yields went up and prices declined.
Q: What investment strategies contributed to performance?
A: Nearly 75% of net assets were invested in mortgage-backed securities issued
by the Government National Mortgage Association (GNMA), which are backed by
the full faith and credit of the U.S. government. (A full faith and credit
backing applies to underlying Trust securities, not to Trust shares.) Because
GNMA securities outperformed Treasuries, the Trust's focus on mortgages
relative to the benchmark was the biggest aid to total return. In the
volatile interest-rate environment, we were concerned about the prepayment
risk that is associated with mortgage-backed securities. When interest rates
decline, homeowners often "prepay" their existing mortgages and refinance
their homes at a lower rate. Significant prepayment activity can result in
declining yields and share prices in portfolios with investments in
mortgages. To mitigate this risk, we selected mortgages that had lower
weighted average coupon (stated rate of interest) rates, which we believe are
less likely to be prepaid.
Q: What investment strategies detracted from performance?
A: Nearly 25% of the portfolio was invested in Treasury securities with
predominantly short- and intermediate-term maturities. As yields on
securities in these maturity ranges moved higher, their prices declined. As a
result, the Trust's exposure to bonds in the middle of the yield curve held
back results.
Q: What is your outlook over the next several months?
A: We believe the economy is on a sustained path for improvement and are
concerned that the seeds for higher inflation are being
8
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
planted. The Federal Reserve raised interest rates by 0.25% on June 30 and is
likely to continue doing so at a measured pace over the next two years. As
interest rates move higher, we will consider using a barbell strategy in
managing the Treasury portion of the Trust - that is, we may sell some of our
intermediate-term holdings and add securities in the one-to-two-year range
and in the 20 plus-year range. With this approach, the Trust should benefit
from the higher yields that long-term bonds provide and from the relative
price stability of short-term securities. We will also seek mortgage-backed
securities that are selling at a discount and that can provide the Trust with
relatively high yields as well as the potential for price appreciation.
Any information in this shareholder report regarding market or economic
trends or the factors influencing the Trust's historical or future
performance are statements of the opinion of Trust management as of the date
of this report. These statements should not be relied upon for any other
purposes. Past performance is no guarantee of future results, and there is no
guarantee that market forecasts discussed will be realized.
9
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/04 (unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. TREASURY OBLIGATIONS - 22.5%
$10,270,000 U.S. Treasury Bonds, 7.25%, 5/15/16 $ 12,415,865
3,500,000 U.S. Treasury Notes, 4.625%, 5/15/06 3,624,005
1,200,000 U.S. Treasury Notes, 4.75%, 5/15/14 1,212,516
1,100,000 U.S. Treasury Notes, 6.25%, 2/15/07 1,188,688
5,525,000 U.S. Treasury Notes, 6.38%, 8/15/27 6,236,128
16,000,000 U.S. Treasury Notes, 6.5%, 2/15/10 18,028,752
3,000,000 U.S. Treasury Notes, 6.63%, 5/15/07 3,284,883
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $46,852,643) $ 45,990,837
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 74.3%
2,000,000 Government National Mortgage Association, 4.5%,
TBA 30 YRS $ 1,877,500
2,493,121 Government National Mortgage Association, 4.5%,
6/15/34 - 8/15/33 2,346,156
2,876,943 Government National Mortgage Association, 5.0%,
12/20/18 - 2/15/19 2,901,067
6,177,211 Government National Mortgage Association, 5.5%,
6/15/18 - 5/15/33 6,211,142
9,281,757 Government National Mortgage Association, 5.5%,
7/15/33 - 9/15/33 9,291,232
1,835,731 Government National Mortgage Association, 5.5%,
10/15/33 1,837,501
9,765,136 Government National Mortgage Association, 6.0%,
5/15/17 - 10/15/32 10,054,481
8,553,785 Government National Mortgage Association, 6.0%,
10/15/32 - 11/15/32 8,794,740
9,841,681 Government National Mortgage Association, 6.0%,
11/15/32 - 12/15/32 10,124,402
9,284,399 Government National Mortgage Association, 6.0%,
12/15/32 - 1/15/33 9,549,750
9,792,202 Government National Mortgage Association, 6.0%,
1/20/33 - 4/15/33 10,049,439
6,448,215 Government National Mortgage Association, 6.0%,
4/15/33 - 11/15/33 6,626,287
8,719,060 Government National Mortgage Association, 6.5%,
4/15/17 - 1/15/32 9,133,509
8,931,400 Government National Mortgage Association, 6.5%,
1/15/32 - 6/15/32 9,359,401
7,524,420 Government National Mortgage Association, 6.5%,
7/15/32 - 10/15/33 7,876,412
10 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)
$ 7,774,972 Government National Mortgage Association, 7.0%,
10/15/16 - 4/15/32 $ 8,275,747
2,888,810 Government National Mortgage Association, 7.5%,
2/15/27 - 11/15/32 3,116,125
111,416 Government National Mortgage Association, 8.5%,
7/15/24 123,673
28,547 Government National Mortgage Association, 9.0%,
9/15/16 - 4/15/20 32,127
174,581 Government National Mortgage Association,
10.0%, 11/15/18 - 3/15/20 195,257
1,194,397 Government National Mortgage Association I,
6.5%, 11/15/31 - 9/15/32 1,249,559
867,260 Government National Mortgage Association I,
7.0%, 12/15/30 922,378
335,357 Government National Mortgage Association I,
7.5%, 8/15/23 358,134
967,038 Government National Mortgage Association II,
5.0%, 2/20/19 972,875
9,814,997 Government National Mortgage Association II,
5.5%, 2/20/34 - 3/20/34 9,806,821
6,697,233 Government National Mortgage Association II,
6.0%, 7/20/17 - 11/20/33 6,892,775
5,866,983 Government National Mortgage Association II,
6.0%, 12/20/33 - 6/20/34 6,014,915
6,159,681 Government National Mortgage Association II,
6.5%, 8/20/28 - 3/20/34 6,432,532
822,852 Government National Mortgage Association II,
7.0%, 12/20/08 - 7/20/31 874,158
324,232 Government National Mortgage Association II,
7.49%, 10/20/22 351,105
212,396 Government National Mortgage Association II,
7.5%, 2/12/30 - 12/20/30 228,973
10,464 Government National Mortgage Association II,
8.0%, 5/20/25 - 3/20/30 11,433
242,738 Government National Mortgage Association II,
9.0%, 9/20/21 - 11/20/24 272,342
3,103 Government National Mortgage Association II,
10.0%, 1/20/06 3,274
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $152,406,320) $152,167,222
------------
The accompanying notes are an integral part of these financial statements. 11
Pioneer America Income Trust
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
TEMPORARY CASH INVESTMENT - 4.1%
Repurchase Agreement - 4.1%
$ 8,500,000 UBS Warburg, 1.25%, dated 6/30/04, repurchase
price of $8,500,000 plus accrued interest on
7/1/04, collaterized by $8,733,000 U.S. Treasury
Bonds, 5.875%, 11/15/2005 $ 8,500,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $8,500,000) $ 8,500,000
------------
TOTAL INVESTMENT IN SECURITIES - 100.9%
(Cost $207,758,963)(a)(b)(c)(d) $206,658,059
------------
OTHER ASSETS AND LIABILITIES - (0.9)% $ (1,921,784)
------------
TOTAL NET ASSETS - 100.0% $204,736,275
============
Note: The Trust's investments in mortgage-backed securities of the Government
National Mortgage Association (GNMA) are interests in separate pools of
mortgages. All separate investments in this issuer which have the same
coupon rate have been aggregated for the purpose of presenta- tion in this
schedule of investments.
(a) At June 30, 2004 the net unrealized loss on investments based on cost for
federal income tax purposes of $207,884,225 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 1,473,823
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (2,699,989)
-----------
Net unrealized loss ($1,226,166)
===========
(b) At December 31, 2003, the Trust had a net capital loss carryforward of
$7,139,642, of which the following amounts will expire between 2004 and
2011, if not utilized.
$1,540,059 in 2004
$2,049,267 in 2007
$1,526,846 in 2008
$2,023,470 in 2011
(c) The Fund has elected to defer approximately $516,281 of currency losses
recognized between December 1, 2003 and December 31, 2003 to its fiscal
year ending December 31, 2004.
(d) TBA (To Be Assigned) securities are purchased on a forward commitment
basis with an approxi- mate (generally plus/minus 2.5%) principal and no
definite maturity date period. The actual prin- cipal amount and
maturity date will be determined upon settlement when the specific
mortgage pools are assigned.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended June 30, 2004 aggregated $34,676,666 and $75,963,165
respectively.
12 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 6/30/04 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (cost $207,758,963) $206,658,059
Cash 95,065
Receivables -
Fund shares sold 166,159
Interest 1,440,891
Other 491
------------
Total assets $208,360,665
------------
LIABILITIES:
Payables -
Investment securities purchased $ 2,787,110
Fund shares repurchased 333,575
Dividends 138,643
Due to affiliates 304,118
Accrued expenses 60,944
------------
Total liabilities $ 3,624,390
------------
NET ASSETS:
Paid-in capital $216,568,161
Accumulated net investment loss (1,500,795)
Accumulated net realized loss on investments (9,230,187)
Net unrealized loss on investments (1,100,904)
------------
Total net assets $204,736,275
============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $129,464,679/13,322,479 shares) $ 9.72
============
Class B (based on $44,299,896/4,585,782 shares) $ 9.66
============
Class C (based on $30,487,100/3,147,571 shares) $ 9.69
============
Class R (based on $484,600/49,339 shares) $ 9.82
============
MAXIMUM OFFERING PRICE:
Class A ($9.72 [divided by] 95.5%) $ 10.18
============
Class C ($9.69 [divided by] 99.0%) $ 9.79
============
The accompanying notes are an integral part of these financial statements. 13
Pioneer America Income Trust
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 6/30/04
INVESTMENT INCOME:
Interest $ 5,784,907
-----------
EXPENSES:
Management fees $554,564
Transfer agent fees
Class A 208,132
Class B 93,359
Class C 60,175
Class R 147
Distribution fees
Class A 174,403
Class B 243,180
Class C 165,885
Class R 1,225
Administrative fees 23,252
Custodian fees 10,488
Registration fees 59,692
Professional fees 16,746
Printing 12,204
Fees and expenses of nonaffiliated trustees 3,015
Miscellaneous 5,722
--------
Total expenses $ 1,632,189
-----------
Less fees paid indirectly $ (1,928)
-----------
Net expenses $ 1,630,261
-----------
Net investment income $ 4,154,646
-----------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments $(1,472,243)
-----------
Change in net unrealized loss on investments $(3,278,405)
-----------
Net loss on investments $(4,750,648)
-----------
Net decrease in net assets resulting from operations $ (596,002)
===========
14 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 6/30/04 and the Year Ended 12/31/03
Six Months
Ended
6/30/04 Year Ended
(unaudited) 12/31/03
FROM OPERATIONS:
Net investment income $ 4,154,646 $ 7,253,361
Net realized gain (loss) on investments (1,472,243) 1,554,904
Change in net unrealized gain (loss) on investments (3,278,405) (6,064,242)
------------ ------------
Net increase (decrease) in net assets resulting
from operations $ (596,002) $ 2,744,023
------------ ------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.22 and $0.47 per share, respectively) $ (3,088,514) $ (7,744,965)
Class B ($0.18 and $0.38 per share, respectively) (875,402) (2,415,765)
Class C ($0.18 and $0.40 per share, respectively) (612,732) (1,646,030)
Class R ($0.22 and $0.32 per share, respectively) (10,805) (3,517)
------------ ------------
Total distributions to shareowners $ (4,587,453) $(11,810,277)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 26,661,769 $182,396,793
Reinvestment of distributions 3,494,276 8,650,754
Cost of shares repurchased (67,261,921) (204,620,502)
------------ ------------
Net decrease in net assets resulting from Fund
share transactions $(37,105,876) $(13,572,955)
------------ ------------
Net decrease in net assets $(42,289,331) $(22,639,209)
NET ASSETS:
Beginning of period 247,025,606 269,664,815
------------ ------------
End of period (including accumulated net
investment loss of ($1,500,795) and
($1,067,988), respectively) $204,736,275 $247,025,606
------------ ------------
The accompanying notes are an integral part of these financial statements. 15
Pioneer America Income Trust
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended 6/30/04 and the Year Ended 12/31/03
'04 Shares '04 Amount
(unaudited) (unaudited) '03 Shares '03 Amount
CLASS A
Shares sold 1,283,570 $ 12,703,560 11,111,851 $113,426,133
Reinvestment of distributions 257,959 2,543,225 594,445 6,002,597
Less shares repurchased (3,687,153) (36,457,000) (12,248,450) (124,349,426)
---------- ------------ ----------- ------------
Net decrease (2,145,624) $(21,210,215) (542,154) $ (4,920,696)
========== ============ =========== ============
CLASS B
Shares sold 595,164 $ 5,830,007 3,183,952 $ 32,226,735
Reinvestment of distributions 60,794 595,722 162,736 1,634,160
Less shares repurchased (1,660,730) (16,307,281) (4,323,064) (43,493,823)
---------- ------------ ----------- ------------
Net decrease (1,004,772) $ (9,881,552) (976,376) $ (9,632,928)
========== ============ =========== ============
CLASS C
Shares sold 787,576 $ 7,748,775 3,578,490 $ 36,404,685
Reinvestment of distributions 35,089 344,984 100,303 1,010,487
Less shares repurchased (1,449,857) (14,277,351) (3,640,601) (36,765,189)
---------- ------------ ----------- ------------
Net increase (decrease) (627,192) $ (6,183,592) 38,192 $ 649,983
========== ============ =========== ============
CLASS R (a)
Shares sold 37,588 $ 379,427 33,479 $ 339,240
Reinvestment of distributions 1,038 10,345 348 3,510
Less shares repurchased (21,919) (220,289) (1,195) (12,064)
---------- ------------ ----------- ------------
Net increase 16,707 $ 169,483 32,632 $ 330,686
========== ============ =========== ============
(a) Class R shares were first publicly offered on April 1, 2003.
16 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
6/30/04 Year Ended Year Ended
(unaudited) 12/31/03 12/31/02
CLASS A
Net asset value, beginning of period $ 9.95 $ 10.27 $ 9.79
------- -------- --------
Increase from investment operations:
Net investment income $ 0.19 $ 0.28 $ 0.40
Net realized and unrealized gain (loss) on investments (0.20) (0.13) 0.54
------- -------- --------
Net increase (decrease) from investment operations $ (0.01) $ 0.15 $ 0.94
Distributions to shareowners:
Net investment income (0.22) (0.47) (0.46)
Net realized gain - - -
------- -------- --------
Net increase (decrease) in net asset value $ (0.23) $ (0.32) $ 0.48
------- -------- --------
Net asset value, end of period $ 9.72 $ 9.95 $ 10.27
======= ======== ========
Total return* (0.14)% 1.47% 9.78%
Ratio of net expenses to average net assets+ 1.17%** 1.10% 1.00%
Ratio of net investment income to average net assets+ 4.05%** 2.85% 4.17%
Portfolio turnover rate 32%** 66% 76%
Net assets, end of period (in thousands) $129,465 $153,939 $164,393
Ratios with no waiver of management fees by PIM and no reductions
for fees paid indirectly:
Net expenses 1.17%** 1.12% 1.08%
Net investment income 4.05%** 2.83% 4.09%
Ratios with waiver of management fees by PIM and reductions for fees
paid indirectly:
Net expenses 1.17%** 1.10% 1.00%
Net investment income 4.05%** 2.85% 4.18%
Year Ended Year Ended Year Ended
12/31/01(a) 12/31/00 12/31/99
CLASS A
Net asset value, beginning of period $ 9.76 $ 9.30 $ 10.10
-------- ------- -------
Increase from investment operations:
Net investment income $ 0.52 $ 0.58 $ 0.55
Net realized and unrealized gain (loss) on investments 0.05 0.46 (0.80)
-------- ------- -------
Net increase (decrease) from investment operations $ 0.57 $ 1.04 $ (0.25)
Distributions to shareowners:
Net investment income (0.51) (0.58) (0.55)
Net realized gain (0.03) - -
-------- ------- -------
Net increase (decrease) in net asset value $ 0.03 $ 0.46 $ (0.80)
-------- ------- -------
Net asset value, end of period $ 9.79 $ 9.76 $ 9.30
======== ======= =======
Total return* 5.92% 11.58% (2.52)%
Ratio of net expenses to average net assets+ 1.01% 1.04% 1.01%
Ratio of net investment income to average net assets+ 5.14% 6.09% 5.63%
Portfolio turnover rate 72% 56% 72%
Net assets, end of period (in thousands) $115,998 $96,068 $111,262
Ratios with no waiver of management fees by PIM and no reductions
for fees paid indirectly:
Net expenses 1.12% 1.16% 1.14%
Net investment income 5.03% 5.97% 5.50%
Ratios with waiver of management fees by PIM and reductions for fees
paid indirectly:
Net expenses 1.00% 1.00% 1.00%
Net investment income 5.15% 6.13% 5.64%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
(a) On January 1,2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this charges for the year ended
December 31, 2001, was to decrease net investment income by $0.02 per share,
increase net realized and unrealized gain (loss) by $0.02 per share and
decrease the ratio of net investment income to average net assets assuming
waiver of management fees by PIM and reduction for fees paid indirectly from
5.35% to 5.15%. Per share ratios and supplemental data for periods prior to
January 1, 2001, have not been restated to reflect this change in
presentation.
The accompanying notes are an integral part of these financial statements. 17
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
6/30/04 Year Ended Year Ended
(unaudited) 12/31/03 12/31/02
CLASS B
Net asset value, beginning of period $ 9.89 $ 10.20 $ 9.76
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.15 $ 0.19 $ 0.34
Net realized and unrealized gain (loss) on investments (0.20) (0.12) 0.50
------- ------- -------
Net increase (decrease) from investment operations $ (0.05) $ 0.07 $ 0.84
Distributions to shareowners:
Net investment income (0.18) (0.38) (0.40)
Net realized gain - - -
------- ------- -------
Net increase (decrease) in net asset value $ (0.23) $ (0.31) $ 0.44
------- ------- -------
Net asset value, end of period $ 9.66 $ 9.89 $ 10.20
======= ======= =======
Total return* (0.56)% 0.69% 8.82%
Ratio of net expenses to average net assets+ 2.00%** 1.94% 1.80%
Ratio of net investment inome to average net assets+ 3.22%** 2.02% 3.26%
Portfolio turnover rate 32%** 66% 76%
Net assets, end of period (in thousands) $44,300 $55,302 $67,013
Ratios with no waiver of management fees by PIM and no reduction for
fees paid indirectly:
Net expenses 2.00%** 1.96% 1.88%
Net investment income 3.22%** 2.00% 3.19%
Ratios with waiver of management fees by PIM and reductions for fees
paid indirectly:
Net expenses 2.00%** 1.94% 1.79%
Net investment income 3.22%** 2.02% 3.27%
Year Ended Year Ended Year Ended
12/31/01(a) 12/31/00 12/31/99
CLASS B
Net asset value, beginning of period $ 9.74 $ 9.28 $ 10.07
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.44 $ 0.50 $ 0.47
Net realized and unrealized gain (loss) on investments 0.04 0.46 (0.79)
------- ------- -------
Net increase (decrease) from investment operations $ 0.48 $ 0.96 $ (0.32)
Distributions to shareowners:
Net investment income (0.42) (0.50) (0.47)
Net realized gain (0.04) - -
------- ------- -------
Net increase (decrease) in net asset value $ 0.02 $ 0.46 $ (0.79)
------- ------- -------
Net asset value, end of period $ 9.76 $ 9.74 $ 9.28
======= ======= =======
Total return* 4.99% 10.68% (3.24)%
Ratio of net expenses to average net assets+ 1.95% 1.85% 1.78%
Ratio of net investment inome to average net assets+ 4.18% 5.29% 4.87%
Portfolio turnover rate 72% 56% 72%
Net assets, end of period (in thousands) $25,008 $16,889 $19,695
Ratios with no waiver of management fees by PIM and no reduction for
fees paid indirectly:
Net expenses 2.06% 1.98% 1.91%
Net investment income 4.07% 5.16% 4.74%
Ratios with waiver of management fees by PIM and reductions for fees
paid indirectly:
Net expenses 1.93% 1.83% 1.76%
Net investment income 4.20% 5.31% 4.89%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
(a) On January 1,2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this charges for the year ended
December 31, 2001, was to decrease net investment income by $0.02 per share,
increase net realized and unrealized gain (loss) by $0.02 per share and
decrease the ratio of net investment income to average net assets assuming
waiver of management fees by PIM and reduction for fees paid indirectly from
4.36% to 4.20%. Per share ratios and supplemental data for periods prior to
January 1, 2001, have not been restated to reflect this change in
presentation.
18 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
6/30/04 Year Ended Year Ended
(unaudited) 12/31/03 12/31/02
CLASS C
Net asset value, beginning of period $ 9.92 $ 10.24 $ 9.79
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.15 $ 0.21 $ 0.36
Net realized and unrealized gain (loss) on investments (0.20) (0.13) 0.50
------- ------- -------
Net increase (decrease) from investment operations $ (0.05) $ 0.08 $ 0.86
Distributions to shareowners:
Net investment income (0.18) (0.40) (0.41)
Net realized gain - - -
------- ------- -------
Net increase (decrease) in net asset value $ (0.23) $ (0.32) $ 0.45
------- ------- -------
Net asset value, end of period $ 9.69 $ 9.92 $ 10.24
======= ======= =======
Total return* (0.52)% 0.75% 8.93%
Ratio of net expenses to average net assets+ 1.98%** 1.81% 1.77%
Ratio of net investment income to average net assets+ 3.24%** 2.14% 3.16%
Portfolio turnover rate 32%** 66% 76%
Net assets, end of period (in thousands) $30,487 $37,456 $38,258
Ratios with no waiver of management fees by PIM and no reduction
for fees paid indirectly:
Net expenses 1.98%** 1.83% 1.84%
Net investment income 3.24%** 2.12% 3.08%
Ratios with waiver of management fees by PIM and reductions
for fees paid indirectly:
Net expenses 1.98%** 1.81% 1.76%
Net investment income 3.24%** 2.14% 3.16%
Year Ended Year Ended Year Ended
12/31/01(a) 12/31/00 12/31/99
CLASS C
Net asset value, beginning of period $ 9.74 $ 9.28 $ 10.07
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.46 $ 0.49 $ 0.47
Net realized and unrealized gain (loss) on investments 0.03 0.46 (0.79)
------- ------- -------
Net increase (decrease) from investment operations $ 0.49 $ 0.95 $ (0.32)
Distributions to shareowners:
Net investment income (0.43) (0.49) (0.47)
Net realized gain (0.01) - -
------- ------- -------
Net increase (decrease) in net asset value $ 0.05 $ 0.46 $ (0.79)
------- ------- -------
Net asset value, end of period $ 9.79 $ 9.74 $ 9.28
======= ======= =======
Total return* 5.05% 10.52% (3.19)%
Ratio of net expenses to average net assets+ 1.84% 2.02% 1.73%
Ratio of net investment income to average net assets+ 4.22% 5.14% 4.88%
Portfolio turnover rate 72% 56% 72%
Net assets, end of period (in thousands) $ 6,776 $ 3,221 $ 5,632
Ratios with no waiver of management fees by PIM and no reduction
for fees paid indirectly:
Net expenses 1.95% 2.15% 1.85%
Net investment income 4.11% 5.01% 4.76%
Ratios with waiver of management fees by PIM and reductions
for fees paid indirectly:
Net expenses 1.81% 1.97% 1.70%
Net investment income 4.25% 5.19% 4.91%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized
+ Ratio with no reduction for fees paid indirectly.
(a) On January 1,2001, the Trust began accreting discounts and amortizing
premiums on debt securities. The effect of this changes for the year ended
December 31, 2001, was to decrease net investment income by $0.01 per share,
increase net realized and unrealized gain (loss) by $0.01 per share and
decrease the ratio of net investment income to average net assets assuming
waiver of management fees by PIM and reduction for fees paid indirectly from
4.42% to 4.25%. Per share ratios and supplemental data for periods prior to
January 1, 2001, have not been restated to reflect this change in
presentation.
The accompanying notes are an integral part of these financial statements. 19
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended 4/1/03 (a)
6/30/04 to
CLASS R (unaudited) 12/31/03
Net asset value, beginning of period $ 10.07 $ 10.31
------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.22 $ 0.25
Net realized and unrealized loss on investments (0.25) (0.17)
------- -------
Net increase (decrease) from investment operations $ (0.03) $ 0.08
Distributions to shareowners:
Net investment income (0.22) (0.32)
------- -------
Net decrease in net asset value $ (0.25) $ (0.24)
------- -------
Net asset value, end of period $ 9.82 $ 10.07
------- -------
Total return* (0.30)% 0.83%
Ratio of net expenses to average net assets+ 1.18%** 1.08%**
Ratio of net investment income (loss) to average
net assets+ 4.06%** (2.91)%**
Portfolio turnover rate 32%** 66%
Net assets, end of period (in thousands) $ 485 $ 329
Ratios with no waiver of management fees by PIM and
no reductions for fees paid indirectly:
Net expenses 1.18%** 1.08%**
Net investment income (loss) 4.06%** (2.91)%**
Ratios with waiver of management fees by PIM and
reductions for fees paid indirectly:
Net expenses 1.18%** 1.08%**
Net investment income (loss) 4.06%** (2.91)%**
(a) Class R shares were first publicly offered on April 1,2003.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, and the complete redemption of the
investment at net asset value at each end of each period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
20 The accompanying notes are an integral part of these financial statements.
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/04 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer America Income Trust (the Trust) is a Massachusetts statutory trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Trust is to
provide a high level of current income consistent with preservation of capital
and prudent investment risk.
The Trust offers four classes of shares - Class A, Class B, Class C and Class R
shares. Class R shares were first publicly offered on April 1, 2003. Shares of
Class A, Class B, Class C and Class R each represent an interest in the same
portfolio of investments of the Trust and have equal rights to voting,
redemptions, dividends and liquidation, except that each class of shares can
bear different transfer agent and distribution fees and has exclusive voting
rights with respect to the distribution plans that have been adopted by Class
A, Class B, Class C and Class R shareowners, respectively.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates. The
following is a summary of significant accounting policies consistently followed
by the Trust, which are in conformity with those generally accepted in the
investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Securities are valued at
prices supplied by independent pricing services, which consider such factors
as Treasury spreads, yields, maturities and ratings. Valuations may be
supplemented by dealers and other sources, as required. Securities for which
there are no other readily available valuation method are valued at their
fair values as determined by, or under the direction of the board of
Trustees. Principal amounts of mortgage-backed securities are adjusted for
monthly paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the underlying monthly
pay downs. Securities for which there are no other readily available
valuation methods are valued at their fair values as determined by, or
21
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
under the direction of the Board of Trustees. As of June 30, 2004, there were
no securities fair valued. All discounts/premiums on debt securities are
accreted/amortized for financial reporting purposes. Interest income is
recorded on the accrual basis. Temporary cash investments are valued at
amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
The 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 Trust's distributions may be shown in the
accompanying financial statements as either from net investment income or net
realized gain on investment transactions, or from paid-in-capital, depending
on the type of book/tax differences that may exist.
The tax character of current year distributions paid will be determined at
the end of the current fiscal year. The tax character of distributions paid
during the year ended December 31, 2003 was as follows:
- -----------------------------------------------------
2003
- -----------------------------------------------------
Distributions paid from:
Ordinary income $11,810,277
Long-term capital gain -
-----------
$11,810,277
Return of Capital -
-----------
Total $11,810,277
===========
- -----------------------------------------------------
The following shows the components of accumulated losses on a federal income
tax basis at December 31, 2003.
22
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- -----------------------------------------------------
2003
- -----------------------------------------------------
Undistributed ordinary income $ -
Capital loss carryforward (7,139,642)
Post October losses deferred (516,281)
Unrealized appreciation 1,052,239
-----------
Total $(6,603,684)
===========
- -----------------------------------------------------
The difference between book basis and tax-basis unrealized appreciation is
primarily attributable to the tax deferral of losses on wash sales and the
tax treatment of premium and amortization.
C. Fund Shares
The Trust records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Trust and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.
(UniCredito Italiano), earned $14,343 in underwriting commissions on the sale
of Trust shares for the six months ended June 30, 2004.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, Class C and Class R shares of the Trust,
respectively. Shareowners of each class share all expenses and fees paid to
the transfer agent, Pioneer Investment Management Shareholder Services, Inc.
(PIMSS), for its services, which are allocated based on the number of
accounts in each class and the ratable allocation of related out-of-pocket
expenses (see Note 3). Income, common expenses and realized and unrealized
gains and losses are calculated at the Trust level and allocated daily to
each class of shares based on the respective percentage of adjusted net
assets at the beginning of the day.
The Trust declares as daily dividends substantially all of its net investment
income. All dividends are paid on a monthly basis. Short-term capital gain
distributions, if any, may be declared with the daily dividends.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Trust with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B, Class C and Class R shares can bear different
transfer agent and distribution fees.
23
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value of
the underlying securities (collateral), including accrued interest received
from counter parties, is required to be at least equal to or in excess of the
value of the repurchase agreement at the time of purchase. The collateral for
all repurchase agreements is held in safekeeping in the customer-only account
of the Trust's custodian, or sub custodians. The Trust's investment adviser,
Pioneer Investment Management, Inc. (PIM) is responsible for determining that
the value of the collateral remains at least equal to the repurchase price.
2. Management Agreement
PIM manages the Trust's portfolio and is a wholly owned indirect subsidiary of
UniCredito Italiano. Management fees are calculated daily at the annual rate of
0.50% of the Trust's average daily net assets.
PIM discontinued the Fund's expense limitation on May 1, 2003. Prior to May 1,
2003, PIM had agreed not to impose a portion of its management fee and to assume
other operating expenses of the Trust to the extent necessary to limit Class A
expenses to 1.00% of the average daily net assets attributable to Class A
shares; the portion of the Trust-wide expenses attributable to Class B, Class C
and Class R shares were reduced only to the extent that such expenses were
reduced for Class A shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Trust. At June 30, 2004, $98,414 was payable to PIM
related to management fees, administrative fees and certain other services, and
is included in due to affiliates.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Trust at
negotiated rates. Included in due to affiliates is $105,634 in transfer agent
fees payable to PIMSS at June 30, 2004.
4. Distribution and Service Plans
The Fund adopted Plans of Distribution with respect to each class of shares
(Class A Plan, Class B Plan, Class C Plan, and Class R Plan)
24
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
in accordance with Rule 12b-1 of the Investment Company Act of 1940. Pursuant to
the Class A Plan, the Trust pays PFD a service fee of up to 0.25% of the Fund's
average daily net assets attributable to Class A shares in reimbursement of such
expenditures to finance activities primarily intended to result in the sale of
Class A shares. Pursuant to the Class B Plan and the Class C Plan, the Trust
pays PFD 1.00% of the average daily net assets attributable to each class of
shares. The fee consists of a 0.25% service fee and a 0.75% distribution fee
paid as compensation for personal services and/or account maintenance services
or distribution services with regard to Class B and Class C shares. Pursuant to
the Class R Plan, the Trust pays PFD 0.50% of the average daily net assets
attributable to Class R shares for distribution services. Included in due to
affiliates is $100,070 in distribution fees payable to PFD at June 30, 2004. The
Trust also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Trust to pay securities dealers, plan
administrators or other services organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Trust a
service fee of up to 0.25% of the Trust's daily net assets attributable to Class
R shares held by such plans.
In addition, redemptions of each class of shares 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 one year of purchase.
Class B shares that are redeemed within six years of purchase are subject to a
CDSC at declining rates beginning at 4.00%, based on the lower of cost or market
value of shares being redeemed. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. Redemptions of Class R shares within 18
months of purchase may be subject to a CDSC of 1.00%. Proceeds from the CDSCs
are paid to PFD. For the six months ended June 30, 2003, CDSCs in the amount of
$137,671 were paid to PFD.
5. Expense Offset Arrangements
The Trust has entered into certain expense offset arrangements with PIMSS,
resulting in a reduction in the Trust's total expenses due to interest earned on
cash held by PIMSS. For the six months ended June 30, 2003, the Trust's expenses
were reduced by $1,928 under such arrangements.
25
- --------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
Please consider a fund's investment objectives, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about a fund and should be read carefully before you invest or send money. To
obtain a prospectus and for other information on any Pioneer fund, contact your
advisor, call 1-800-225-6292 or visit our web site at www.pioneerfunds.com.
U.S. Equity International/Global Equity
Pioneer Fund Pioneer Emerging Markets Fund
Pioneer Balanced Fund Pioneer Europe Select Fund
Pioneer Equity Income Fund Pioneer Europe Fund
Pioneer Growth Shares Pioneer International Equity Fund
Pioneer Mid Cap Growth Fund Pioneer International Value Fund
Pioneer Mid Cap Value Fund
Pioneer Oak Ridge Large Cap Fixed Income
Growth Fund Pioneer America Income Trust
Pioneer Oak Ridge Small Cap Pioneer Bond Fund
Growth Fund Pioneer Global High Yield Fund
Pioneer Papp America-Pacific Pioneer High Yield Fund
Rim Fund Pioneer Strategic Income Fund
Pioneer Papp Small and Mid Cap Pioneer Tax Free Income Fund
Growth Fund
Pioneer Papp Stock Fund Money Market
Pioneer Papp Strategic Pioneer Cash Reserves Fund**
Growth Fund
Pioneer Real Estate Shares
Pioneer Research Fund*
Pioneer Small Cap Value Fund
Pioneer Small Company Fund
Pioneer Value Fund
* Name change effective December 11, 2003. Formerly known as Pioneer Core
Equity Fund.
** An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1.00 per share, it is possible
to lose money by investing in the Fund.
26
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
Mary K. Bush Osbert M. Hood, Executive
Richard H. Egdahl, M.D. Vice President
Margaret B.W. Graham Vincent Nave, Treasurer
Osbert M. Hood Dorothy E. Bourassa, Secretary
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). This
information is also available at pioneerfunds.com.
27
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
28
- --------------------------------------------------------------------------------
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
FactFoneSM for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvest.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
Please consider the 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 or send money. To
obtain a prospectus and for other information on any Pioneer fund, call
1-800-225-6292 or visit our web site www.pioneerfunds.com.
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 recognizes 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 recognizes 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
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer and principal financial
officer have concluded, that the registrant's disclosure controls and
procedures are effective based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer America Income Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date August 25, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date August 25, 2004
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date August 25, 2004
* Print the name and title of each signing officer under his or her signature.