Exhibit (17)(g)

PIONEER
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SHORT TERM INCOME FUND

Prospectus

December 31, 2008

Class A, Class B and Class C Shares

Contents

Basic information about the fund .............. 1
Management .................................... 16
Buying, exchanging and selling shares ......... 18
Dividends, capital gains and taxes ............ 49
Financial highlights .......................... 51

Neither the Securities and Exchange Commission nor any state securities agency
has approved or disapproved the fund's shares or determined whether this
prospectus is accurate or complete. Any representation to the contrary is a
crime.

[Logo]PIONEER
Investments(R)

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An investment in the fund is not a bank deposit and is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government agency.
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Contact your investment professional to discuss how the fund fits into your
portfolio.
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Basic information about the fund

Investment objective
A high level of current income to the extent consistent with a relatively high
level of stability of principal.

Principal investment strategies
The fund invests primarily in:
o Debt securities issued or guaranteed by the U.S. government, its agencies or
instrumentalities
o Debt securities, including convertible debt, of U.S. and non-U.S. issuers and
commercial paper
o Mortgage-backed and asset-backed securities of U.S. and non-U.S. issuers
o Short-term money market instruments of U.S. and non-U.S. issuers

Normally, at least 80% of the fund's net assets are invested in debt securities
that are rated investment grade at the time of purchase or cash and cash
equivalents. Cash and cash equivalents include cash balances, accrued interest
and receivables for items such as the proceeds, not yet received, from the sale
of the fund's portfolio investments. The fund will normally maintain a
dollar-weighted average portfolio maturity of no more than 3 years.

Up to 10% of the fund's net assets may be below investment grade. A debt
security is investment grade if it is rated in one of the top four categories
by at least one nationally recognized statistical rating organization or
Pioneer Investment Management, Inc., the fund's investment adviser, determines
that the security is of equivalent credit quality. Debt securities rated below
investment grade are commonly referred to as "junk bonds" and are considered
speculative. Lower quality debt securities involve greater risk of loss, are
subject to greater price volatility and are less liquid, especially during
periods of economic uncertainty or change, than high quality debt securities.
The fund may invest in debt securities rated "D" or better, or comparable
unrated securities.

The fund's investments may have fixed or variable principal payments and all
types of interest rate payment and reset terms, including fixed rate,
adjustable rate, floating rate, zero coupon, contingent, deferred, payment in
kind and auction rate features.

Non-U.S. securities

The fund may invest up to 20% of its total assets in securities of non-U.S.
issuers. Up to 5% of the fund's total assets may be invested in debt securities
of emerging market issuers. Non-U.S. securities may be issued by non-U.S.
governments, banks or corporations and certain supranational organizations,
such as the World Bank and the European Union. The fund may invest in
securities of Canadian issuers to the same extent as securities of U.S.
issuers. Investing in Canadian and other non-U.S. issuers, particularly issuers
in emerging markets, may involve unique risks compared to investing in the
securities of U.S. issuers.

Basic information about the fund

Pioneer considers both broad economic and issuer specific factors in selecting
a portfolio designed to achieve the fund's investment objective. In assessing
the appropriate maturity, rating and sector weighting of the fund's portfolio,
Pioneer considers a variety of broad economic factors that are expected to
influence economic activity and interest rates. These factors include
fundamental economic indicators, Federal Reserve monetary policy and the
relative value of the U.S. dollar compared to other currencies. Once Pioneer
determines the preferable portfolio characteristic, Pioneer selects individual
securities based upon the terms of the securities (such as yields compared to
U.S. Treasuries or comparable issuers), liquidity and rating, sector and issuer
diversification. Pioneer also employs due diligence and fundamental research,
an evaluation of the issuer based on its financial statements and operations,
to assess an issuer's credit quality, taking into account financial condition
and profitability, future capital needs, potential for change in rating,
industry outlook, the competitive environment and management ability. In making
these portfolio decisions, Pioneer relies on the knowledge, experience and
judgment of its staff and the staff of its affiliates who have access to a wide
variety of research.

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U.S. government securities
These securities include obligations:
o Directly issued by or supported by the full faith and credit of the U.S.
government, like Treasury bills, notes and bonds and Government National
Mortgage Association (GNMA) certificates
o Supported by the right of the issuer to borrow from the U.S. Treasury, like
those of the Federal Home Loan Banks (FHLBs)
o Supported by the discretionary authority of the U.S. government to purchase
the agency's securities, like those of the Federal National Mortgage
Association (Fannie Mae)
o Supported only by the credit of the issuer itself, like the Tennessee
Valley Authority
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Investment grade securities
A debt security is considered investment grade if it is:
o Rated BBB or higher at the time of purchase by Standard & Poor's
Ratings Group;
o Rated the equivalent rating by another nationally recognized statistical
rating organization; or
o Determined to be of equivalent credit quality by Pioneer
Securities in the lowest category of investment grade are considered to have
speculative characteristics.
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Principal risks of investing in the fund

o You could lose money on your investment in the fund
o The values of securities held by the fund may fall due to general market
conditions, such as real or perceived adverse economic, political or
regulatory conditions, inflation, changes in interest or currency rates or
adverse investor sentiment. Adverse market conditions may be prolonged and
may not have the same impact on all types of securities. The values of
securities may fall due to factors affecting a particular issuer or sector
or the securities market as a whole.

o Interest rates go up, causing the value of the fund's investments to decline.
This is known as interest rate risk (this risk may be greater for
securities with longer maturities)

o The issuer of a security owned by the fund fails to pay principal and/or
interest, otherwise defaults or has its credit rating downgraded or is
perceived to be less creditworthy, or the credit quality or value of any
underlying assets declines. This is known as credit risk. This risk is
greater for high yield securities than for securities of higher credit
quality.

o During periods of declining interest rates, the issuer of a security may
exercise its option to prepay principal earlier than scheduled, forcing the
fund to reinvest in lower yielding securities. This is known as call or
prepayment risk
o During periods of rising interest rates, the average life of certain types of
securities may be extended because of slower than expected principal
payments. This may lock in a below market interest rate, increase the
security's duration (the estimated period until the security is paid in
full) and reduce the value of the security. This is known as extension risk

o Particular investments held by the fund may be difficult to sell, and as a
result, the fund's portfolio may be harder to value, especially in changing
markets. The market for certain investments may become less liquid or
illiquid under adverse market or economic conditions independent of any
specific adverse changes in the conditions of a particular issuer. This is
known as liquidity risk

o Pioneer's judgment about the attractiveness, relative value or potential
appreciation of a particular sector, security or hedging strategy proves to
be incorrect

Government sponsored entities such as the Federal Home Loan Mortgage
Corporation (Freddie Mac), Fannie Mae and the FHLBs, although chartered or
sponsored by Congress, are not funded by congressional appropriations and the
debt and mortgage-backed securities issued by them are neither guaranteed nor
issued by the U.S. government. Although the U.S. government has recently
provided financial support to Fannie Mae and Freddie Mac, there can be no
assurance that it will support these or other government sponsored entities in
the future.

Basic information about the fund

To the extent the fund invests significantly in asset-backed and
mortgage-related securities, its exposure to prepayment and extension risks may
be greater than other investments in fixed income securities.

Risks of non-U.S. investments
Investing in non-U.S. issuers may involve unique risks compared to investing in
securities of U.S. issuers. These risks are more pronounced for issuers in
emerging markets or to the extent that the fund invests significantly in one
region or country. These risks may include:
o Less information about non-U.S. issuers or markets may be available due to
less rigorous disclosure or accounting standards or regulatory practices
o Many non-U.S. markets are smaller, less liquid and more volatile. In a
changing market, Pioneer may not be able to sell the fund's portfolio
securities at times, in amounts and at prices it considers reasonable
o Adverse effect of currency exchange rates or controls on the value of the
fund's investments or its ability to convert non-U.S. currencies to U.S.
dollars
o The economies of non-U.S. countries may grow at slower rates than expected or
may experience a downturn or recession
o Economic, political and social developments may adversely affect the
securities markets
o Withholding and other non-U.S. taxes may decrease the fund's return

Market segment risks
To the extent the fund emphasizes, from time to time, investments in a market
segment, the fund will be subject to a greater degree to the risks particular
to the industries in that segment, and may experience greater market
fluctuation, than a fund without the same focus. Industries in the financial
segment, such as banks, insurance companies, broker-dealers and real estate
investment trusts (REITs), may be sensitive to changes in interest rates and
general economic activity and are subject to extensive government regulation.

The fund's past performance
The bar chart and table indicate the risks of investing in the fund by showing
how the fund has performed in the past. The fund's performance will vary from
year to year.

The fund's past performance (before and after taxes) does not necessarily
indicate how it will perform in the future. As a shareowner, you may lose or
make money on your investment.

Fund performance

The chart shows the year-by-year performance of the fund's Class A shares.
Class B and Class C shares will have different performance because they have
different expenses. The chart does not reflect any sales charge you may pay
when you buy or sell fund shares. Any sales charge will reduce your return.

[THE FOLLOWING DATA WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

Annual return Class A shares (%)

(Year ended December 31)

'05 1.40
'06 3.80
'07 4.96

For the period covered by the bar chart:

The highest calendar quarterly return was 1.87% (07/01/2006 to 09/30/2006)

The lowest calendar quarterly return was -0.09% (07/01/2005 to 09/30/2005)

At September 30, 2008, the year-to-date return was -0.59%.

Basic information about the fund

Comparison with the Barclays Capital One- to Three-Year Government/

Credit Index

The table shows the average annual total returns for Class A, Class B and Class
C shares of the fund over time and compares these returns to the returns of the
Barclays Capital One- to Three-Year Government/Credit Index. This index
measures the performance of the short-term (1 to 3 years) government and
investment-grade corporate bond markets.

Unlike the fund, the index is not managed and does not incur fees, expenses or
taxes. You cannot invest directly in an index. The table:

o Reflects sales charges applicable to the class
o Assumes that you sell your shares at the end of the period
o Assumes that you reinvest all of your dividends and distributions

Average annual total return (%)

(for periods ended December 31, 2007)

Since Inception
1 Year Inception Date
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Class A 7/8/04
Return before taxes 2.34 2.36
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Return after taxes on distributions 0.70 1.05
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Return after taxes on distributions
and sale of shares 1.05 1.24
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Class B 7/8/04
Return before taxes 2.03 2.22
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Class C 7/8/04
Return before taxes 4.19 2.30
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Barclays Capital One- to Three-Year Government/
Credit Index (reflects no deduction for fees,
expenses or taxes) 6.83 3.99
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After-tax returns are calculated using the historical highest individual
federal marginal income tax rates and do not reflect the impact of state and
local taxes. Actual after-tax returns depend on the investor's tax situation
and may differ from those shown, and the after-tax returns shown are not
relevant to investors who hold fund shares through tax-deferred arrangements
such as 401(k) plans or individual retirement accounts.

After-tax returns for Class B and Class C shares will vary from the after-tax
returns presented for Class A shares.

Fees and expenses
This table describes the fees and expenses that you may pay if you buy and hold
shares of the fund.

Shareowner fees

paid directly from your investment Class A Class B Class C
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Maximum sales charge (load) when you buy shares
as a percentage of offering price 2.50% None None
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Maximum deferred sales charge (load) as a percent-
age of offering price or the amount you receive when
you sell shares, whichever is less None(1) 2% 1%
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Annual fund operating expenses
paid from the assets of the fund
as a percentage of average daily net assets Class A Class B Class C
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Management Fee 0.40% 0.40% 0.40%
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Distribution and Service (12b-1) Fee 0.25% 1.00% 1.00%
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Other Expenses 0.35% 0.45% 0.33%
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Total Annual Fund Operating Expenses(2) 1.00% 1.85% 1.73%
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Less: Fee Waiver and Expense Limitation(3) -0.10% -0.05% 0.00%
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Net Expenses(3) 0.90% 1.80% 1.73%
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Basic information about the fund

Example

This example helps you compare the cost of investing in the fund with the cost
of investing in other mutual funds. It assumes that: a) you invest $10,000 in
the fund for the time periods shown, b) you reinvest all dividends and
distributions, c) your investment has a 5% return each year, d) the fund's
operating expenses remain the same and e) Pioneer's contractual expense
limitation is in effect for year one.

Although your actual costs may be higher or lower, under these assumptions your
costs would be:

If you sell your shares If you do not sell your shares
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Number of years you own your shares
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1 3 5 10 1 3 5 10
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Class A $340 $551 $779 $1,435 $340 $551 $779 $1,435
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Class B 383 677 996 1,641 183 577 996 1,641
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Class C 276 545 939 2,041 176 545 939 2,041
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1 Class A purchases of $1 million or more and purchases by participants in
certain group plans are not subject to an initial sales charge but may be
subject to a contingent deferred sales charge of 1%. See "Buying,
exchanging and selling shares."

2 Total annual fund operating expenses in the table have not been reduced by
any expense offset arrangements.

3 Pioneer has contractually agreed to limit ordinary operating expenses to the
extent required to reduce fund expenses to 0.90%, 1.80% and 1.80% of the
average daily net assets attributable to Class A, Class B and Class C
shares, respectively. These expense limitations are in effect through
January 1, 2012 for Class A shares and through January 1, 2010 for Class B
and Class C shares. There can be no assurance that Pioneer will extend the
expense limitations beyond such time. See the statement of additional
information for details regarding the expense limitation agreement.

Additional information about investment strategies
and risks
The following sections provide additional information about the fund's
investment strategies and risks. To learn more about these investments and
risks, you should obtain and read the statement of additional information
(SAI). The fund's investment objective and strategies may be changed without
shareholder approval.

Debt securities
Certain debt instruments may only pay principal at maturity or may only
represent the right to receive payments of principal or interest on underlying
pools of mortgage or government securities, but not both. The value of these
types of instruments may change more drastically than debt securities that pay
both principal and interest during periods of changing interest rates.
Principal only securities generally increase in value if interest rates
decline, but are also subject to the risk of prepayment. Interest only
instruments generally increase in value in a rising interest rate environment
when fewer of the underlying mortgages are prepaid, but remain subject to
prepayment risk, which would be a loss of any expected interest payments, even
though there is no default on the underlying financial asset. For mortgage
derivatives and structured securities that have imbedded leverage features,
small changes in interest or prepayment rates may cause large and sudden price
movements. Mortgage derivatives can also become illiquid and hard to value in
volatile or declining markets.

If a rating organization downgrades the quality rating assigned to one or more
of the fund's portfolio securities, Pioneer will consider what actions, if any,
are appropriate including selling the downgraded security or purchasing
additional investment grade securities as soon as it is prudent to do so.

Mortgage and asset-backed securities
The fund may invest in mortgage-backed and asset-backed securities. Mortgage-
backed securities may be issued by private companies or issued or guaranteed by
the U.S. government or agencies or instrumentalities of the U.S. government and
represent direct or indirect participation in, or are collateralized by and
payable from, mortgage loans secured by real property. Asset-backed securities
represent participations in, or are secured by and payable from, assets such as
installment sales or loan contracts, leases, credit card receivables and other
categories of receivables. The fund's investments in mortgage-related
securities may include mortgage derivatives and structured securities.

The repayment of certain mortgage-backed and asset-backed securities depends
primarily on the cash collections received from the issuer's underlying asset
portfolio and, in certain cases, the issuer's ability to issue replacement
securities.

Basic information about the fund

As a result, there could be losses to the fund in the event of credit or market
value deterioration in the issuer's underlying portfolio, mismatches in the
timing of the cash flows of the underlying asset interests and the repayment
obligations of maturing securities, or the issuer's inability to issue new or
replacement securities. Upon the occurrence of certain triggering events or
defaults, the investors in a security held by the fund may become the holders
of underlying assets at a time when those assets may be difficult to sell or
may be sold only at a loss. Certain asset-backed securities present a
heightened level of risk because, in the event of default, the liquidation
value of the underlying assets may be inadequate to pay any unpaid principal or
interest or may be nonexistent. In the event of a default, the value of the
underlying collateral may be insufficient to pay certain expenses, such as
litigation and foreclosure expenses, and inadequate to pay any principal or
unpaid interest. Privately issued mortgage-backed and asset-backed securities
are not traded on an exchange and may have a limited market. Without an active
trading market, these securities may be particularly difficult to value given
the complexities in valuing the underlying collateral.

Certain mortgage-backed and asset-backed securities may pay principal only at
maturity or may represent only the right to receive payments of principal or
interest on the underlying obligations, but not both. The value of these types
of instruments may change more drastically than debt securities that pay both
principal and interest during periods of changing interest rates. Principal
only instruments generally increase in value if interest rates decline, but are
also subject to the risk of prepayment. Interest only instruments generally
increase in value in a rising interest rate environment when fewer of the
underlying obligations are prepaid. Interest only instruments could lose their
entire value in a declining interest rate environment if the underlying
obligations are prepaid.

The fund may invest in securities that are subordinated or "junior" to more
senior securities of the issuer. The investor in a subordinated security is
entitled to payment after other holders. As a result, subordinated securities
will be disproportionately adversely affected by a default or even a perceived
decline in creditworthiness of the issuer, or, in the case of a pooled
investment, issuers of underlying obligations.

Unlike mortgage-related securities issued or guaranteed by the U. S. government
or its agencies and instrumentalities, mortgage-related securities issued by
private issuers do not have a government or government-sponsored entity
guarantee (but may have other credit enhancement), and may, and frequently do,
have less favorable collateral, credit risk or other characteristics. The fund
may invest in other mortgage-related securities, including mortgage derivatives
and structured securities. These securities typically are not secured by real
property. Because these securities have imbedded leverage features, small
changes in interest or prepayment rates may cause large and sudden price
movements. These securities also can become illiquid and difficult to value in
volatile or declining markets.

The fund's mortgage-related investments may include mortgage-related derivative
securities such as collateralized mortgage obligations (CMOs). A CMO is a
mortgage-backed bond that separates mortgage pools into different maturity
classes. The holder of an interest in a CMO is entitled to receive specified
cash flows from a pool of mortgages. Depending upon the category of CMO
purchased, the holder may be entitled to payment before the cash flow from the
pool is used to fund other CMOs or, alternatively, the holder may be paid only
to the extent that there is cash remaining after the cash flow has been used to
fund other CMOs first. A subordinated interest may serve as a credit support
for the senior securities purchased by other investors. If there are defaults
on the underlying mortgage loans, the fund will be less likely to receive
payments of principal and interest, and will be more likely to suffer a loss.
This risk may be increased to the extent the underlying mortgages include
sub-prime mortgages.

The fund may invest in asset-backed securities issued by special entities, such
as trusts, that are backed by a pool of financial assets. The fund may invest
in collateralized debt obligations (CDOs), which include collateralized bond
obligations (CBOs), collateralized loan obligations (CLOs) and other similarly
structured securities. A CDO is a trust backed by a pool of fixed income
securities. The trust typically is split into two or more portions, called
tranches, which vary in credit quality, yield, credit support and right to
repayment of principal and interest. Lower tranches pay higher interest rates
but represent lower degrees of credit quality and are more sensitive to the
rate of defaults in the pool of obligations. The risks of an investment in a
CDO depend largely on the type of the underlying obligations (e.g., an
underlying obligation may decline in quality or default) and the tranche of the
CDO in which the fund invests (e.g., the fund may invest in a tranche of CDO
that is subordinate to other tranches). Investments in CDOs may be
characterized by the fund as illiquid securities, which may be difficult to
sell at an advantageous time or price.

The fund may enter into mortgage dollar roll transactions to earn additional
income. In these transactions, the fund sells a U.S. agency mortgage-backed
security and simultaneously agrees to repurchase at a future date another U.S.
agency mortgage-backed security with the same interest rate and maturity date,
but generally backed by a different pool of mortgages. The fund loses the right
to receive interest and principal payments on the security it sold. However,
the fund benefits from the interest earned on investing the proceeds of the
sale and may receive a fee or a lower repurchase price. The benefits from these
transactions depend upon Pioneer's ability to forecast mortgage prepayment
patterns on different mortgage pools. The fund may lose money if, during the
period between the time it agrees to the forward purchase of the mortgage
securities and the settlement date, these securities decline in value due to
market conditions or prepayments on the underlying mortgages.

Basic information about the fund

Floating rate loans
Floating rate loans are provided by banks and other financial institutions to
large corporate customers. These loans are usually rated below investment
grade, but typically are secured with specific collateral and have a senior
position in the capital structure of the borrower. These loans typically have
rates of interest that are reset periodically by reference to a base lending
rate, such as the London Interbank Offered Rate (LIBOR), plus a premium. The
value of collateral, if any, securing a floating rate loan can decline, may be
insufficient to meet the issuer's obligations or may be difficult to obtain.
Floating rate loans may not be readily marketable or may be subject to
restrictions on resale. For purposes of this prospectus, the term "securities"
includes loans and other instruments and obligations.

Debt rating criteria

For purposes of the fund's credit quality policies, if a security receives
different ratings from nationally recognized statistical rating organizations,
the fund will use the rating chosen by the portfolio manager as most
representative of the security's credit quality. The ratings of nationally
recognized statistical rating organizations represent their opinions as to the
quality of the securities that they undertake to rate and may not accurately
describe the risks of the securities. If a rating organization changes the
quality rating assigned to one or more of the fund's portfolio securities,
Pioneer will consider if any action is appropriate in light of the fund's
investment objective and policies.

Event-linked bonds

The fund may invest in "event-linked" bonds, which sometimes are referred to as
"insurance-linked" or "catastrophe" bonds. Event-linked bonds are debt
obligations for which the return of principal and the payment of interest are
contingent on the non-occurrence of a pre-defined "trigger" event, such as a
hurricane or an earthquake of a specific magnitude. For some event-linked
bonds, the trigger event's magnitude may be based on losses to a company or
industry, industry indexes or readings of scientific instruments rather than
specified actual losses. If a trigger event, as defined within the terms of an
event-linked bond, involves losses or other metrics exceeding a specific
magnitude in the geographic region and time period specified therein, the fund
may lose a portion or all of its accrued interest and/or principal invested in
such event-linked bond. The fund is entitled to receive principal and interest
payments so long as no trigger event occurs of the description and magnitude
specified by the instrument.

Event-linked bonds are subject to the risk that the model used to calculate the
probability of a trigger event was not accurate and underestimated the
likelihood of a trigger event. Upon the occurrence or possible occurrence of a
trigger event, and until the completion of the processing and auditing of
applicable loss claims, the fund's investment in such event-linked bond may be
priced using fair value methods. As a relatively new type of financial
instrument, there is limited trading history for these securities, and there
can be no assurance that a liquid market in these instruments will develop.

Event-linked bonds are typically rated by at least one nationally recognized
statistical rating agency, but also may be unrated. The rating for an
event-linked bond primarily reflects the rating agency's calculated probability
that a pre-defined trigger event will occur. This rating also assesses the
event-linked bond's credit risk and model used to calculate the probability of
a trigger event.

Derivatives
The fund may, but is not required to, use futures and options on securities,
indices and currencies, forward foreign currency exchange contracts and other
derivatives. A derivative is a security or instrument whose value is determined
by reference to the value or the change in value of one or more securities,
currencies, indices or other financial instruments. Although there is no
specific limitation on investing in derivatives, the fund does not use
derivatives as a primary investment technique and generally limits their use to
hedging. However, the fund may use derivatives for a variety of purposes,
including:
o As a hedge against adverse changes in the market prices of securities,
interest rates or currency exchange rates
o As a substitute for purchasing or selling securities
o To increase the fund's return as a non-hedging strategy that may be
considered speculative

The fund may enter into credit default swaps, which can be used to transfer the
credit risk of a security without buying or selling the security.

Derivatives may be subject to market risk, interest rate risk and credit risk.
The fund's use of certain derivatives may, in some cases, involve forms of
financial leverage, which involves risk and may increase the volatility of the
fund's net asset value. Even a small investment in derivatives can have a
significant impact on the fund's exposure to the market prices of securities,
interest rates or currency exchange rates. Therefore, using derivatives can
disproportionately increase losses and reduce opportunities for gain. If
changes in a derivative's value do not correspond to changes in the value of
the fund's other investments or do not correlate well with the underlying
asset, rate or index, the fund may not fully benefit from or could lose money
on the derivative position. In addition, some derivatives involve risk of loss
if the issuer of the derivative defaults on its obligation. Certain derivatives
may be less liquid, which may reduce the returns of

Basic information about the fund

the fund if it cannot sell or terminate the derivative at an advantageous time
or price. Some derivatives may involve the risk of improper valuation. The fund
will only invest in derivatives to the extent Pioneer believes these
investments are consistent with the fund's investment objective, but
derivatives may not perform as intended. Suitable derivatives may not be
available in all circumstances or at reasonable prices and may not be used by
the fund for a variety of reasons.

Cash management and temporary investments
Normally, the fund invests substantially all of its assets to meet its
investment objective. The fund may invest the remainder of its assets in
securities with remaining maturities of less than one year or cash equivalents,
or may hold cash. For temporary defensive purposes, including during periods of
unusual cash flows, the fund may depart from its principal investment
strategies and invest part or all of its assets in these securities or may hold
cash. During such periods, the fund may not be able to achieve its investment
objective. The fund may adopt a defensive strategy when Pioneer believes
securities in which the fund normally invests have extraordinary risks due to
political or economic factors and in other extraordinary circumstances.

Securities lending
The fund may lend securities in its portfolio to certain broker-dealers or
other institutional investors under agreements which require that the loans be
secured continuously by collateral, typically cash, which the fund will invest
during the term of the loan. The fund will continue to have market risk and
other risks associated with owning the securities on loan, as well as the risks
associated with the investment of the cash collateral received in connection
with the loan. Securities lending also is subject to other risks, including the
risk that the borrower fails to return a loaned security, and/or there is a
shortfall on the collateral posted by the borrower, and the risk that the fund
is unable to recall a security in time to exercise valuable rights or sell the
security.

Reverse repurchase agreements and borrowing
The fund may enter into reverse repurchase agreements pursuant to which the
fund transfers securities to a counterparty in return for cash, and the fund
agrees to repurchase the securities at a later date and for a higher price.
Reverse repurchase agreements are treated as borrowings by the fund, are a form
of leverage and may make the value of an investment in the fund more volatile
and increase the risks of investing in the fund. This is because leverage
generally magnifies the effect of any increase or decrease in the value of the
fund's underlying asset or creates investment risk with respect to a larger
pool of assets than the fund would otherwise have. The fund also may borrow
money from banks or other lenders for temporary purposes. Entering into reverse
repurchase agreements and other borrowing transactions may cause the fund to
liquidate

positions when it may not be advantageous to do so to satisfy its obligations
or meet segregation requirements.

Short-term trading
The fund usually does not trade for short-term profits. The fund will sell an
investment, however, even if it has only been held for a short time, if it no
longer meets the fund's investment criteria. If the fund does a lot of trading,
it may incur additional operating expenses, which would reduce performance, and
could cause shareowners to incur a higher level of taxable income or capital
gains.

See "Financial highlights" for actual annual turnover rates.

Disclosure of portfolio holdings
The fund's policies and procedures with respect to disclosure of the fund's
portfolio securities are described in the statement of additional information.

Management

Pioneer, the fund's investment adviser,
selects the fund's investments and oversees the fund's operations.

Pioneer is an indirect, wholly owned subsidiary of UniCredit S.p.A., one of the
largest banking groups in Italy. Pioneer is part of the global asset management
group providing investment management and financial services to mutual funds,
institutional and other clients. As of November 30, 2008, assets under
management were approximately $208 billion worldwide, including over $49
billion in assets under management by Pioneer.

Investment adviser
Pioneer's main office is at 60 State Street, Boston, Massachusetts 02109. The
firm's U.S. mutual fund investment history includes creating in 1928 one of the
first mutual funds.

Pioneer has received an order from the Securities and Exchange Commission that
permits Pioneer, subject to the approval of the fund's Board of Trustees, to
hire and terminate a subadviser or to materially modify an existing subadvisory
contract for the fund without shareholder approval. Pioneer retains the
ultimate responsibility to oversee and recommend the hiring, termination and
replacement of any subadviser. To the extent that the Securities and Exchange
Commission adopts a rule that would supersede the order, or would provide
greater flexibility than the order, Pioneer and the fund intend to rely on such
rule to permit Pioneer, subject to the approval of the fund's Board of Trustees
and any other applicable conditions of the rule, to hire and terminate a
subadviser or to materially modify an existing subadvisory contract for the
fund without shareholder approval.

Portfolio management

Day-to-day management of the fund's portfolio is the responsibility of Richard
Schlanger and Charles Melchreit. Mr. Schlanger and Mr. Melchreit are supported
by the fixed income team. Members of this team manage other Pioneer funds
investing primarily in fixed income securities. The portfolio managers and the
team may also draw upon the research and investment management expertise of the
global research teams, which provide fundamental and quantitative research on
companies and include members from Pioneer's affiliate, Pioneer Investment
Management Limited. Mr. Schlanger, a vice president, joined Pioneer as a
portfolio manager in 1988. Mr. Melchreit, a vice president, joined Pioneer in
2006. From 2003 to 2004, Mr. Melchreit was a managing director at Cigna
Investment Management. Prior thereto, he was a senior vice president and
portfolio manager at Aeltus Investment Management. Mr. Melchreit received an MS
degree in Statistics from Yale University in 2005.

The fund's statement of additional information provides additional information
about the portfolio managers' compensation, other accounts managed by the
portfolio managers, and the portfolio managers' ownership of shares of the
fund.

Management fee
The fund pays Pioneer a fee for managing the fund and to cover the cost of
providing certain services to the fund. Pioneer's annual fee is equal to 0.40%
of the fund's average daily net assets.

The fee is accrued daily and paid monthly.

For the fiscal year ended August 31, 2008, the fund paid management fees
equivalent to 0.40% of the fund's average daily net assets.

A discussion regarding the basis for the Board of Trustees' approval of the
management contract is available in the fund's annual report to shareholders,
for the period ended August 31, 2008.

Distributor and transfer agent

Pioneer Funds Distributor, Inc. is the fund's distributor. Pioneer Investment
Management Shareholder Services, Inc. is the fund's transfer agent. The fund
compensates the distributor and transfer agent for their services. The
distributor and the transfer agent are affiliates of Pioneer.

Buying, exchanging and selling shares

Net asset value

The fund's net asset value is the value of its securities plus any other assets
minus its accrued operating expenses and other liabilities. The fund calculates
a net asset value for each class of shares every day the New York Stock
Exchange is open when regular trading closes (normally 4:00 p.m. Eastern time).

The fund generally values its securities using closing market prices or readily
available market quotations. When closing market prices or market quotations
are not available or are considered by Pioneer to be unreliable, the fund uses
fair value methods to value its securities pursuant to procedures adopted by
the Board of Trustees. Valuing securities using fair value methods may cause
the net asset value of the fund's shares to differ from the net asset value
that would be calculated only using market prices. For market prices and
quotations, as well as for some fair value methods, the fund relies upon
securities prices provided by pricing services.

The fund uses fair value pricing methods for a security, including a non-U.S.
security, when Pioneer determines that the closing market price on the primary
exchange where the security is traded no longer accurately reflects the value
of the security at the time the fund calculates its net asset value. This may
occur for a variety of reasons that affect either the relevant securities
markets generally or the specific issuer. For example, with respect to non-U.S.
securities held by the fund, developments relating to specific events in the
securities markets or the specific issuer may occur between the time the
primary market closes and the time the fund determines its net asset value.
International securities markets may be open on days when the U.S. markets are
closed. For this reason, the values of any international securities owned by
the fund could change on a day you cannot buy or sell shares of the fund.

Certain types of securities, including those discussed in this paragraph, are
priced using fair value pricing methods rather than market prices. The fund
uses a pricing matrix to determine the value of fixed income securities that
may not trade daily. A pricing matrix is a means of valuing a debt security on
the basis of current market prices for other debt securities and historical
trading patterns in the market for fixed income securities. The fund values
cash equivalent securities with remaining maturities of 60 days or less at
amortized cost. To the extent that the fund invests in the shares of other
registered open-end investment companies that are not traded on an exchange
(mutual funds), such shares are valued at their published net asset values per
share as reported by the funds. The prospectuses of these funds explain the
circumstances under which the funds will use fair value pricing methods to
value their securities and the effects of using the fair value methodology.

You buy or sell shares at the share price. When you buy Class A shares, you pay
an initial sales charge unless you qualify for a waiver or reduced sales
charge.

When you sell Class B or Class C shares, you may pay a contingent deferred
sales charge depending on how long you have owned your shares.

- --------------------------------------------------------------------------------
Share price
The net asset value per share calculated on the day of your transaction,
adjusted for any applicable sales charge.
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
Contingent deferred sales charge
A sales charge that may be deducted from your sale proceeds.
- --------------------------------------------------------------------------------

Choosing a class of shares
The fund offers three classes of shares through this prospectus. Each class has
different sales charges and expenses, allowing you to choose the class that
best meets your needs.

Factors you should consider include:
o How long you expect to own the shares
o The expenses paid by each class
o Whether you qualify for any reduction or waiver of sales charges

Your investment professional can help you determine which class meets your
goals. Your investment firm may receive different compensation depending upon
which class you choose. If you are not a U.S. citizen and are purchasing shares
outside the U.S., you may pay different sales charges under local laws and
business practices.

Distribution plan
The fund has adopted a distribution plan for each class of shares offered
through this prospectus in accordance with Rule 12b-1 under the Investment
Company Act of 1940. Under the plan, the fund pays distribution and service
fees to the distributor. Because these fees are an ongoing expense of the fund,
over time they increase the cost of your investment and your shares may cost
more than shares that are subject to other types of sales charges.

Additional payments to financial intermediaries
There are two principal ways you compensate the financial intermediary through
which you buy shares of the fund - directly, by the payment of sales
commissions, if any; and indirectly, as a result of the fund paying Rule 12b-1
fees. The fund also may pay intermediaries for administrative services and
transaction processing.

Pioneer and its affiliates may make additional payments to your financial
intermediary. These payments by Pioneer may provide your financial intermediary
with an incentive to favor the Pioneer funds over other mutual funds or assist
the distributor in its efforts to promote the sale of the fund's shares.
Financial

Buying, exchanging and selling shares

intermediaries include broker-dealers, banks (including bank trust
departments), registered investment advisers, financial planners, retirement
plan administrators and other types of intermediaries.

Pioneer makes these additional payments (sometimes referred to as "revenue
sharing") to financial intermediaries out of its own assets. Revenue sharing is
not an expense of the Pioneer funds. Pioneer may base these payments on a
variety of criteria, including the amount of sales or assets of the Pioneer
funds attributable to the financial intermediary or as a per transaction fee.

Not all financial intermediaries receive additional compensation and the amount
of compensation paid varies for each financial intermediary. In certain cases,
these payments may be significant. Pioneer determines which firms to support
and the extent of the payments it is willing to make, generally choosing firms
that have a strong capability to effectively distribute shares of the Pioneer
funds and that are willing to cooperate with Pioneer's promotional efforts.
Pioneer also may compensate financial intermediaries (in addition to amounts
that may be paid by the fund) for providing certain administrative services and
transaction processing services.

Pioneer may benefit from revenue sharing if the intermediary features the
Pioneer funds in its sales system (such as by placing certain Pioneer funds on
its preferred fund list or giving access on a preferential basis to members of
the financial intermediary's sales force or management). In addition, the
financial intermediary may agree to participate in the distributor's marketing
efforts (such as by helping to facilitate or provide financial assistance for
conferences, seminars or other programs at which Pioneer personnel may make
presentations on the Pioneer funds to the intermediary's sales force). To the
extent intermediaries sell more shares of the Pioneer funds or retain shares of
the Pioneer funds in their clients' accounts, Pioneer receives greater
management and other fees due to the increase in the Pioneer funds' assets. The
intermediary may earn a profit on these payments to the intermediary if the
amount of the payment exceeds the intermediary's costs.

The compensation that Pioneer pays to financial intermediaries is discussed in
more detail in the fund's statement of additional information. Your
intermediary may charge you additional fees or commissions other than those
disclosed in this prospectus. Intermediaries may categorize and disclose these
arrangements differently than the discussion above and in the statement of
additional information. You can ask your financial intermediary about any
payments it receives from Pioneer or the Pioneer funds, as well as about fees
and/or commissions it charges.

Pioneer funds. If your intermediary provides these services, Pioneer or the
Pioneer funds may compensate the intermediary for these services. In addition,
your intermediary may have other relationships with Pioneer or its affiliates
that are not related to the Pioneer funds.

Buying, exchanging and selling shares

Comparing classes of shares

Class A Class B Class C
- -----------------------------------------------------------------------------------------------------

Why you might Class A shares may be You may prefer Class B You may prefer Class C
prefer each class your best alternative if shares if you do not shares if you do not
you prefer to pay an want to pay an initial wish to pay an initial
initial sales charge and sales charge, or if you sales charge and you
have lower annual plan to hold your invest- would rather pay higher
expenses, or if you ment for at least three annual expenses over
qualify for any reduction years. time.
or waiver of the initial
sales charge.
- -----------------------------------------------------------------------------------------------------
Initial sales Up to 2.50% of the None None
charge offering price, which is
reduced or waived for
large purchases and
certain types of inves-
tors. At the time of
your purchase, your
investment firm may
receive a commission
from the distributor of
up to 2%, declining as
the size of your invest-
ment increases.
- -----------------------------------------------------------------------------------------------------
Contingent None, except in certain Up to 2% is charged if A 1% charge if you sell
deferred sales circumstances when you sell your shares. your shares within one
charges the initial sales charge The charge is reduced year of purchase. Your
is waived. over time and not investment firm may
charged after three receive a commission
years. Your investment from the distributor at
firm may receive a the time of your pur-
commission from the chase of up to 1%.
distributor at the time
of your purchase of up
to 2%.
- -----------------------------------------------------------------------------------------------------
Distribution and 0.25% of average daily 1% of average daily net 1% of average daily net
service fees net assets. assets. assets.
- -----------------------------------------------------------------------------------------------------
Annual expenses Lower than Class B or Higher than Class A Higher than Class A
(including Class C. shares; Class B shares shares; Class C shares
distribution and convert to Class A do not convert to any
service fees) shares after five years. other class of shares.
You continue to pay
higher annual expenses.
- -----------------------------------------------------------------------------------------------------
Exchange Class A shares of other Class B shares of other Class C shares of other
privilege Pioneer mutual funds. Pioneer mutual funds. Pioneer mutual funds.
- -----------------------------------------------------------------------------------------------------
Maximum None $49,999 $999,999
purchase amount
(per transaction)
- -----------------------------------------------------------------------------------------------------

Other classes of shares may be available that are not offered in this
prospectus.

Sales charges: Class A shares

You pay the offering price when you buy Class A shares unless you qualify to
purchase shares at net asset value. You pay a lower sales charge as the size of
your investment increases. You do not pay a sales charge when you reinvest
dividends or capital gain distributions paid by the fund. You do not pay a
contingent deferred sales charge when you sell shares purchased through
reinvestment of dividends or capital gain distributions.

- --------------------------------------------------------------------------------
Offering price
The net asset value per share plus any initial sales charge.
- --------------------------------------------------------------------------------

Sales charges for Class A shares

Sales charge as % of
------------------------
Offering Net amount
Amount of purchase price invested
- ------------------------------------------------------------

Less than $50,000 2.50 2.56
- ------------------------------------------------------------
Between $50,000 and $100,000 2.00 2.06
- ------------------------------------------------------------
$100,000 but less than $250,000 1.50 1.52
- ------------------------------------------------------------
$250,000 but less than $1 million 1.00 1.01
- ------------------------------------------------------------
$1 million or more -0- -0-
- ------------------------------------------------------------

The dollar amount of the sales charge is the difference between the offering
price of the shares purchased (based on the applicable sales charge in the
table) and the net asset value of those shares. Since the offering price is
calculated to two decimal places using standard rounding methodology, the
dollar amount of the sales charge as a percentage of the offering price and of
the net amount invested for any particular purchase of fund shares may be
higher or lower due to rounding.

Reduced sales charges
You may qualify for a reduced Class A sales charge if you own or are purchasing
shares of Pioneer mutual funds. The investment levels required to obtain a
reduced sales charge are commonly referred to as "breakpoints." Pioneer offers
two principal means of taking advantage of breakpoints in sales charges for
aggregate purchases of Class A shares of the Pioneer funds over time if:

o The amount of shares you own of the Pioneer funds plus the amount you are
investing now is at least $100,000 (Rights of accumulation)

o You plan to invest at least $100,000 over the next 13 months (Letter of
intent)

Buying, exchanging and selling shares

Rights of accumulation
If you qualify for rights of accumulation, your sales charge will be based on
the combined value (at the current offering price) of all your Pioneer mutual
fund shares, the shares of your spouse and the shares of any children under the
age of 21.

Letter of intent
You can use a letter of intent to qualify for reduced sales charges in two
situations:
o If you plan to invest at least $100,000 (excluding any reinvestment of
dividends and capital gain distributions) in the fund's Class A shares
during the next 13 months
o If you include in your letter of intent the value (at the current offering
price) of all of your Class A shares of the fund and Class A, Class B or
Class C shares of all other Pioneer mutual fund shares held of record in
the amount used to determine the applicable sales charge for the fund
shares you plan to buy

Completing a letter of intent does not obligate you to purchase additional
shares, but if you do not buy enough shares to qualify for the projected level
of sales charges by the end of the 13-month period (or when you sell your
shares, if earlier), the distributor will recalculate your sales charge. You
must pay the additional sales charge within 20 days after you are notified of
the recalculation or it will be deducted from your account (or your sale
proceeds). Any share class for which no sales charge is paid cannot be included
under the letter of intent. For more information regarding letters of intent,
please contact your investment professional or obtain and read the statement of
additional information.

Qualifying for a reduced Class A sales charge

In calculating your total account value in order to determine whether you have
net sales charge breakpoints, you can include your Pioneer mutual fund shares,
those of your spouse and the shares of any children under the age of 21.
Pioneer will use each fund's current offering price to calculate your total
account value. Certain trustees and fiduciaries may also qualify for a reduced
sales charge.

To receive a reduced sales charge, you or your investment professional must, at
the time of purchase, notify the distributor of your eligibility. In order to
verify your eligibility for a discount, you may need to provide your investment
professional or the fund with information or records, such as account numbers
or statements, regarding shares of the fund or other Pioneer mutual funds held
in all accounts by you, your spouse or children under the age of 21 with that
investment professional or with any other financial intermediary. Eligible
accounts may include joint accounts, retirement plan accounts, such as IRA and
401k accounts, and custodial accounts, such as ESA, UGMA and UTMA accounts.

It is your responsibility to confirm that your investment professional has
notified the distributor of your eligibility for a reduced sales charge at the
time of sale. If you or your investment professional do not notify the
distributor of your eligibility, you will risk losing the benefits of a reduced
sales charge.

For this purpose, Pioneer mutual funds include any fund for which the
distributor is principal underwriter and, at the distributor's discretion, may
include funds organized outside the U.S. and managed by Pioneer or an
affiliate.

You can locate information regarding the reduction or waiver of sales charges,
in a clear and prominent format and free of charge, on Pioneer's website at
www.pioneerinvestments.com. The website includes hyperlinks that facilitate
access to this information.

Class A purchases at a reduced initial sales charge or net asset value are also
available to:
Group plans if the sponsoring organization:
o recommends purchases of Pioneer mutual funds to,
o permits solicitation of, or
o facilitates purchases by its employees, members or participants.

Class A purchases at net asset value
You may purchase Class A shares at net asset value (without a sales charge) as
follows. If you believe you qualify for any of the Class A sales charge waivers
discussed below, contact your investment professional or the distributor. You
are required to provide written confirmation of your eligibility. You may not
resell these shares except to or on behalf of the fund.

Buying, exchanging and selling shares

Investments of $1 million or more and certain retirement plans
You do not pay a sales charge when you purchase Class A shares if you are
investing $1 million or more, are a participant in an employer-sponsored
retirement plan with at least $1 million in total plan assets or are a
participant in certain employer-sponsored retirement plans with accounts
established with Pioneer on or before March 31, 2004 with 100 or more eligible
employees or at least $500,000 in total plan assets. However, you may pay a
deferred sales charge if you sell your Class A shares within 18 months of
purchase. The sales charge is equal to 1% of your investment or your sale
proceeds, whichever is less.

Class A purchases at net asset value are available to:
o Current or former trustees and officers of the fund;
o Partners and employees of legal counsel to the fund (at the time of initial
share purchase);
o Directors, officers, employees or sales representatives of Pioneer and its
affiliates (at the time of initial share purchase);
o Directors, officers, employees or sales representatives of any subadviser or
a predecessor adviser (or their affiliates) to any investment company for
which Pioneer serves as investment adviser (at the time of initial share
purchase);
o Officers, partners, employees or registered representatives of broker-dealers
(at the time of initial share purchase) which have entered into sales
agreements with the distributor;
o Employees of AmSouth Bank (at the time of initial share purchase) investing
through an account held with AmSouth Investment Services, Inc.;
o Members of the immediate families of any of the persons above;
o Any trust, custodian, pension, profit sharing or other benefit plan of the
foregoing persons;
o Insurance company separate accounts;
o Certain wrap accounts for the benefit of clients of investment professionals
or other financial intermediaries adhering to standards established by the
distributor;
o Other funds and accounts for which Pioneer or any of its affiliates serve as
investment adviser or manager;
o Investors in connection with certain reorganization, liquidation or
acquisition transactions involving other investment companies or personal
holding companies;
o Certain unit investment trusts;

o Participants in employer-sponsored retirement plans with at least $1 million
in total plan assets;

o Participants in employer-sponsored retirement plans with accounts established
with Pioneer on or before March 31, 2004 with 100 or more eligible
employees or at least $500,000 in total plan assets;
o Participants in Optional Retirement Programs if (i) your employer has
authorized a limited number of mutual funds to participate in the program,
(ii) all participating mutual funds sell shares to program participants at
net asset

value, (iii) your employer has agreed in writing to facilitate investment in
Pioneer mutual funds by program participants and (iv) the program provides
for a matching contribution for each participant contribution;
o Participants in an employer-sponsored 403(b) plan or employer-sponsored 457
plan if (i) your employer has made special arrangements for your plan to
operate as a group through a single broker, dealer or financial
intermediary and (ii) all participants in the plan who purchase shares of a
Pioneer mutual fund do so through a single broker, dealer or other
financial intermediary designated by your employer;
o Individuals receiving a distribution consisting of Class Y shares of a
Pioneer fund from a trust, fiduciary, custodial or other similar account
who purchase Class A shares of the same Pioneer fund within 90 days of the
date of the distribution;
o Shareholders of record (i.e., not held in the name of your broker or an
omnibus account) on the date of the reorganization of a predecessor Safeco
fund into a corresponding Pioneer fund, shareholders who owned shares in
the name of an omnibus account provider on that date that agrees with the
fund to distinguish beneficial holders in the same manner, and retirement
plans with assets invested in the predecessor Safeco fund on that date.

In addition, Class A shares may be purchased at net asset value through certain
mutual fund programs sponsored by qualified intermediaries, such as broker-
dealers and investment advisers. In each case, the intermediary has entered
into an agreement with Pioneer to include the Pioneer funds in their program
without the imposition of a sales charge. The intermediary provides investors
participating in the program with additional services, including advisory,
asset allocation, recordkeeping or other services. You should ask your
investment firm if it offers and you are eligible to participate in such a
mutual fund program and whether participation in the program is consistent with
your investment goals. The intermediaries sponsoring or participating in these
mutual fund programs also may offer their clients other classes of shares of
the funds and investors may receive different levels of services or pay
different fees depending upon the class of shares included in the program.
Investors should consider carefully any separate transaction and other fees
charged by these programs in connection with investing in each available share
class before selecting a share class.

Reinstatement privilege for Class A and Class B shares
If you recently sold all or part of your Class A or Class B shares, you may be
able to reinvest all or part of your sale proceeds without a sales charge in
Class A shares of any Pioneer mutual fund. To qualify for reinstatement:
o You must send a written request to the transfer agent no more than 90 days
after selling your shares and
o The registration of the account in which you reinvest your sale proceeds must
be identical to the registration of the account from which you sold your
shares.

Buying, exchanging and selling shares

Your purchases pursuant to the reinstatement privilege are subject to
limitations on investor transactions, including the limitation on the purchase
of the fund's shares within 30 calendar days of a redemption. See "Excessive
trading."

When you elect reinstatement, you are subject to the provisions outlined in the
selected fund's prospectus, including the fund's minimum investment
requirement. Your sale proceeds will be reinvested in shares of the fund at the
Class A net asset value per share determined after the transfer agent receives
your written request for reinstatement.

You may realize a gain or loss for federal income tax purposes as a result of
your sale of fund shares, and special tax rules may apply if you elect
reinstatement. Consult your tax adviser for more information.

Class A shares that are subject to a contingent deferred sales charge
Purchases of Class A shares of $1 million or more, or by participants in a
group plan which were not subject to an initial sales charge, may be subject to
a contingent deferred sales charge upon redemption. A contingent deferred sales
charge is payable to the distributor in the event of a share redemption within
18 months following the share purchase at the rate of 1% of the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions) or the total cost of such shares. However, the contingent
deferred sales charge is waived for redemptions of Class A shares purchased by
an employer-sponsored retirement plan described under Section 401(a), 403(b) or
457 of the Internal Revenue Code that has at least $1 million in total plan
assets (or that has 1,000 or more eligible employees for plans with accounts
established with Pioneer on or before March 31, 2004).

Sales charges: Class B shares

You buy Class B shares at net asset value per share without paying an initial
sales charge. However, if you sell your Class B shares within three years of
purchase, you will pay the distributor a contingent deferred sales charge. The
contingent deferred sales charge decreases as the number of years since your
purchase increases.

Contingent deferred sales charge

On shares sold As a % of
before the dollar amount subject
end of year to the sales charge
- ---------------------------------------

1 2
- ---------------------------------------
2 2
- ---------------------------------------
3 1
- ---------------------------------------
4+ -0-
- ---------------------------------------

Shares purchased prior to December 1, 2004 remain subject to the contingent
deferred sales charges in effect at the time you purchased those shares. Shares
purchased as part of an exchange or acquired as a result of a reorganization of
another fund into the fund remain subject to any CDSC that applied to the
shares you originally purchased.

Conversion to Class A shares
Class B shares automatically convert into Class A shares. This helps you
because Class A shares pay lower expenses.

Your Class B shares will convert to Class A shares five years after the date of
purchase except that:
o Shares purchased by reinvesting dividends and capital gain distributions will
convert to Class A shares over time in the same proportion as other shares
held in the account
o Shares purchased by exchanging shares from another fund will convert on the
date that the shares originally acquired would have converted into Class A
shares

Currently, the Internal Revenue Service permits the conversion of shares to
take place without imposing a federal income tax. Conversion may not occur if
the Internal Revenue Service deems it a taxable event for federal tax purposes.

Buying, exchanging and selling shares

- --------------------------------------------------------------------------------
Paying the contingent deferred sales charge (CDSC)
Several rules apply for Class B shares so that you pay the lowest
possible CDSC.
o The CDSC is calculated on the current market value or the original cost of the
shares you are selling, whichever is less
o You do not pay a CDSC on reinvested dividends or distributions
o If you sell only some of your shares, the transfer agent will first sell your
shares that are not subject to any CDSC and then the shares that you have
owned the longest
o You may qualify for a waiver of the CDSC normally charged. See "Waiver or
reduction of contingent deferred sales charges"
- --------------------------------------------------------------------------------

Sales charges: Class C shares

You buy Class C shares at net asset value per share without paying an initial
sales charge. However, if you sell your Class C shares within one year of
purchase, you will pay the distributor a contingent deferred sales charge of 1%
of the current market value or the original cost of the shares you are selling,
whichever is less.

- --------------------------------------------------------------------------------
Paying the contingent deferred sales charge (CDSC)
Several rules apply for Class C shares so that you pay the lowest
possible CDSC.
o The CDSC is calculated on the current market value or the original cost of the
shares you are selling, whichever is less
o You do not pay a CDSC on reinvested dividends or distributions
o If you sell only some of your shares, the transfer agent will first sell your
shares that are not subject to any CDSC and then the shares that you have
owned the longest
o You may qualify for a waiver of the CDSC normally charged. See "Waiver or
reduction of contingent deferred sales charges"
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Contingent deferred sales charge
A sales charge that may be deducted from your sale proceeds.
- --------------------------------------------------------------------------------

Waiver or reduction of contingent deferred sales charges (CDSC)
It is your responsibility to confirm that your investment professional has
notified the distributor of your eligibility for a reduced sales charge at the
time of sale. If you or your investment professional do not notify the
distributor of your eligibility, you will risk losing the benefits of a reduced
sales charge.

Class A, Class B and Class C shares
The distributor may waive or reduce the CDSC for Class A shares that are
subject to a CDSC or for Class B or Class C shares if:
o The distribution results from the death of all registered account owners or a
participant in an employer-sponsored plan. For UGMAs, UTMAs and trust
accounts, the waiver applies only upon the death of all beneficial owners;
o You become disabled (within the meaning of Section 72 of the Internal Revenue
Code) after the purchase of the shares being sold. For UGMAs, UTMAs and
trust accounts, the waiver only applies upon the disability of all
beneficial owners;
o The distribution is made in connection with limited automatic redemptions as
described in "Systematic withdrawal plans" (limited in any year to 10% of
the value of the account in the fund at the time the withdrawal plan is
established);

Buying, exchanging and selling shares

o The distribution is from any type of IRA, 403(b) or employer-sponsored plan
described under Section 401(a) or 457 of the Internal Revenue Code and, in
connection with the distribution, one of the following applies:
- It is part of a series of substantially equal periodic payments made over
the life expectancy of the participant or the joint life expectancy of the
participant and his or her beneficiary (limited in any year to 10% of the
value of the participant's account at the time the distribution amount is
established);
- It is a required minimum distribution due to the attainment of age 701/2,
in which case the distribution amount may exceed 10% (based solely on
total plan assets held in Pioneer mutual funds);
- It is rolled over to or reinvested in another Pioneer mutual fund in the
same class of shares, which will be subject to the CDSC of the shares
originally held; or
- It is in the form of a loan to a participant in a plan that permits loans
(each repayment applied to the purchase of shares will be subject to a
CDSC as though a new purchase);
o The distribution is to a participant in an employer-sponsored retirement plan
described under Section 401(a) of the Internal Revenue Code or to a
participant in an employer-sponsored 403(b) plan or employer-sponsored 457
plan if (i) your employer has made special arrangements for your plan to
operate as a group through a single broker, dealer or financial
intermediary and (ii) all participants in the plan who purchase shares of a
Pioneer mutual fund do so through a single broker, dealer or other
financial intermediary designated by your employer and is or is in
connection with:
- A return of excess employee deferrals or contributions;
- A qualifying hardship distribution as described in the Internal Revenue
Code. For Class B shares, waiver is granted only on payments of up to 10%
of total plan assets held by Pioneer for all participants, reduced by the
total of any prior distributions made in that calendar year;
- Due to retirement or termination of employment. For Class B shares, waiver
is granted only on payments of up to 10% of total plan assets held in a
Pioneer mutual fund for all participants, reduced by the total of any
prior distributions made in the same calendar year; or
- From a qualified defined contribution plan and represents a participant's
directed transfer, provided that this privilege has been preauthorized
through a prior agreement with the distributor regarding participant
directed transfers (not available to Class B shares);
o The distribution is made pursuant to the fund's right to liquidate or
involuntarily redeem shares in a shareholder's account; or
o The selling broker elects, with the distributor's approval, to waive receipt
of the commission normally paid at the time of the sale.

Please see the fund's statement of additional information for more information
regarding reduced sales charges and breakpoints.

Opening your account

If your shares are held in your investment firm's name, the options and
services available to you may be different from those discussed in this
prospectus. Ask your investment professional or financial intermediary for more
information.

If you invest in the fund through investment professionals or other financial
intermediaries, including wrap programs and similar programs, additional
conditions may apply to your investment in the fund, and the investment
professional or intermediary may charge you a transaction-based or other fee
for its services. These conditions and fees are in addition to those imposed by
the fund and its affiliates. You should ask your investment professional or
financial intermediary about its services and any applicable fees.

Account options
Use your account application to select options and privileges for your account.
You can change your selections at any time by sending a completed account
options form to the transfer agent. You may be required to obtain a signature
guarantee to make certain changes to an existing account.

Call or write to the transfer agent for account applications, account options
forms and other account information:

Pioneer Investment Management
Shareholder Services, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Telephone 1-800-225-6292

Telephone transaction privileges
If your account is registered in your name, you can buy, exchange or sell fund
shares by telephone. If you do not want your account to have telephone
transaction privileges, you must indicate that choice on your account
application or by writing to the transfer agent.

When you request a telephone transaction the transfer agent will try to confirm
that the request is genuine. The transfer agent records the call, requires the
caller to provide validating information for the account and sends you a
written confirmation. The fund may implement other confirmation procedures from
time to time. Different procedures may apply if you have a non-U.S. account or
if your account is registered in the name of an institution, broker-dealer or
other third party.

Buying, exchanging and selling shares

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By phone
If you want to place your telephone transaction by speaking to a shareowner
services representative, call 1-800-225-6292 between 8:00 a.m. and
7:00 p.m. Eastern time on any weekday that the New York Stock Exchange is
open. You may use FactFone(SM) at any time.
- --------------------------------------------------------------------------------

Online transaction privileges
If your account is registered in your name, you may be able to buy, exchange or
sell fund shares online. Your investment firm may also be able to buy, exchange
or sell your fund shares online.

To establish online transaction privileges:
o For new accounts, complete the online section of the account application
o For existing accounts, complete an account options form, write to the
transfer agent or complete the online authorization screen at
www.pioneerinvestments.com

To use online transactions, you must read and agree to the terms of an online
transaction agreement available on the Pioneer website. When you or your
investment firm requests an online transaction the transfer agent
electronically records the transaction, requires an authorizing password and
sends a written confirmation. The fund may implement other procedures from time
to time. Different procedures may apply if you have a non-U.S. account or if
your account is registered in the name of an institution, broker-dealer or
other third party. You may not be able to use the online transaction privilege
for certain types of accounts, including most retirement accounts.

General rules on buying, exchanging and selling your
fund shares

Share price

If you place an order to purchase, exchange or sell shares with the transfer
agent or an authorized agent by the close of regular trading on the New York
Stock Exchange (currently 4:00 p.m. Eastern time), your transaction will be
completed at the share price determined as of the close of trading on the New
York Stock Exchange on that day. If your order is placed with the transfer
agent or an authorized agent after 4:00 p.m., or your order is not in good
order, your transaction will be completed at the share price next determined
after your order is received in good order by the fund. The authorized agent is
responsible for transmitting your order to the fund in a timely manner.

- --------------------------------------------------------------------------------
Good order means that:
o You have provided adequate instructions
o There are no outstanding claims against your account
o There are no transaction limitations on your account
o If you have any fund share certificates, you submit them and they are signed
by each record owner exactly as the shares are registered
o Your request includes a signature guarantee if you:
- Are selling over $100,000 or exchanging over $500,000 worth of shares
- Changed your account registration or address within the last 30 days
- Instruct the transfer agent to mail the check to an address different from
the one on your account
- Want the check paid to someone other than the account's record owner(s)
- Are transferring the sale proceeds to a Pioneer mutual fund account with a
different registration
- --------------------------------------------------------------------------------

Transaction limitations
Your transactions are subject to certain limitations, including the limitation
on the purchase of the fund's shares within 30 calendar days of a redemption.
See "Excessive trading."

Buying
You may buy fund shares from any investment firm that has a sales agreement
with the distributor.

You can buy fund shares at the offering price. The distributor may reject any
order until it has confirmed the order in writing and received payment. The
fund reserves the right to stop offering any class of shares.

Buying, exchanging and selling shares

You may use securities you own to purchase shares of the fund provided that
Pioneer, in its sole discretion, determines that the securities are consistent
with the fund's objective and policies and their acquisition is in the best
interests of the fund. If the fund accepts your securities, they will be valued
for purposes of determining the number of fund shares to be issued to you in
the same way the fund will value the securities for purposes of determining its
net asset value. For federal income tax purposes, you may be taxed in the same
manner as if you sold the securities that you use to purchase fund shares for
cash in an amount equal to the value of the fund shares that you purchase. Your
broker may also impose a fee in connection with processing your purchase of
fund shares with securities.

Minimum investment amounts

Your initial investment must be at least $1,000. Additional investments must be
at least $100 for Class A shares and $500 for Class B or Class C shares. You
may qualify for lower initial or subsequent investment minimums if you are
opening a retirement plan account, establishing an automatic investment plan or
placing your trade through your investment firm. The fund may waive the initial
or subsequent investment minimums. Minimum investment amounts may be waived
for, among other things, share purchases made through certain mutual fund
programs (e.g., asset based fee program accounts) sponsored by qualified
intermediaries, such as broker-dealers and investment advisers, that have
entered into an agreement with Pioneer.

Maximum purchase amounts
Purchases of fund shares are limited to $49,999 for Class B shares and $999,999
for Class C shares. These limits are applied on a per transaction basis. Class
A shares are not subject to a maximum purchase amount.

- --------------------------------------------------------------------------------
Retirement plan accounts
You can purchase fund shares through tax-deferred retirement plans for
individuals, businesses and tax-exempt organizations.

Your initial investment for most types of retirement plan accounts must be at
least $250. Additional investments for most types of retirement plans must be
at least $100.

You may not use the account application accompanying this prospectus to
establish a Pioneer retirement plan. You can obtain retirement plan applications
from your investment firm or by calling the Retirement Plans Department at
1-800-622-0176.
- --------------------------------------------------------------------------------

Identity verification
To help the government fight the funding of terrorism and money laundering
activities, federal law requires all financial institutions to obtain, verify
and record information that identifies each person who opens an account. When
you open an account, you will need to supply your name, address, date of birth,
and other information that will allow the fund to identify you.

The fund may close your account if we cannot adequately verify your identity.
The redemption price will be the net asset value on the date of redemption.

Exchanging
You may exchange your shares for shares of the same class of another Pioneer
mutual fund.

Your exchange request must be for at least $1,000. The fund allows you to
exchange your shares at net asset value without charging you either an initial
or contingent deferred sales charge at the time of the exchange. Shares you
acquire as part of an exchange will continue to be subject to any contingent
deferred sales charge that applies to the shares you originally purchased. When
you ultimately sell your shares, the date of your original purchase will
determine your contingent deferred sales charge.

Before you request an exchange, consider each fund's investment objective and
policies as described in the fund's prospectus.

Selling
Your shares will be sold at net asset value per share next calculated after the
fund or its authorized agent, such as a broker-dealer, receives your request in
good order.

If the shares you are selling are subject to a deferred sales charge, it will
be deducted from the sale proceeds. The fund generally will send your sale
proceeds by check, bank wire or electronic funds transfer. Normally you will be
paid within seven days. If you recently sent a check to purchase the shares
being sold, the fund may delay payment of the sale proceeds until your check
has cleared. This may take up to 10 calendar days from the purchase date.

If you are selling shares from a non-retirement account or certain IRAs, you
may use any of the methods described below. If you are selling shares from a
retirement account other than an IRA, you must make your request in writing.

- --------------------------------------------------------------------------------
You generally will have to pay income taxes on a sale or an exchange.
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
Consult your investment professional to learn more about buying, exchanging or
selling fund shares.
- --------------------------------------------------------------------------------

Buying, exchanging and selling shares

Buying shares

Through your investment firm
Normally, your investment firm will send your purchase request to the fund's
distributor and/or transfer agent. Consult your investment professional for
more information. Your investment firm receives a commission from the
distributor, and may receive additional compensation from Pioneer, for your
purchase of fund shares.

By phone or online
You can use the telephone or online purchase privilege if you have an existing
non-retirement account. Certain IRAs can use the telephone purchase privilege.
If your account is eligible, you can purchase additional fund shares by phone
or online if:
o You established your bank account of record at least 30 days ago
o Your bank information has not changed for at least 30 days
o You are not purchasing more than $100,000 worth of shares per account per day
o You can provide the proper account identification information

When you request a telephone or online purchase, the transfer agent will
electronically debit the amount of the purchase from your bank account of
record. The transfer agent will purchase fund shares for the amount of the
debit at the offering price determined after the transfer agent receives your
telephone or online purchase instruction and good funds. It usually takes three
business days for the transfer agent to receive notification from your bank
that good funds are available in the amount of your investment.

In writing, by mail
You can purchase fund shares for an existing fund account by mailing a check to
the transfer agent. Make your check payable to the fund. Neither initial nor
subsequent investments should be made by third party check, travelers check, or
credit card check. Your check must be in U.S. dollars and drawn on a U.S. bank.
Include in your purchase request the fund's name, the account number and the
name or names in the account registration.

Exchanging shares

Through your investment firm
Normally, your investment firm will send your exchange request to the fund's
transfer agent. Consult your investment professional for more information about
exchanging your shares.

By phone or online
After you establish an eligible fund account, you can exchange fund shares by
phone or online if:
o You are exchanging into an existing account or using the exchange to
establish a new account, provided the new account has a registration
identical to the original account
o The fund into which you are exchanging offers the same class of shares
o You are not exchanging more than $500,000 worth of shares per account per day
o You can provide the proper account identification information

In writing, by mail or by fax
You can exchange fund shares by mailing or faxing a letter of instruction to
the transfer agent. You can exchange fund shares directly through the fund only
if your account is registered in your name. However, you may not fax an
exchange request for more than $500,000. Include in your letter:
o The name, social security number and signature of all registered owners
o A signature guarantee for each registered owner if the amount of the exchange
is more than $500,000
o The name of the fund out of which you are exchanging and the name of the fund
into which you are exchanging
o The class of shares you are exchanging
o The dollar amount or number of shares you are exchanging

Buying, exchanging and selling shares

Selling shares

Through your investment firm
Normally, your investment firm will send your request to sell shares to the
fund's transfer agent. Consult your investment professional for more
information. The fund has authorized the distributor to act as its agent in the
repurchase of fund shares from qualified investment firms. The fund reserves
the right to terminate this procedure at any time.

By phone or online
If you have an eligible non-retirement account, you may sell up to $100,000 per
account per day by phone or online. You may sell fund shares held in a
retirement plan account by phone only if your account is an eligible IRA (tax
penalties may apply). You may not sell your shares by phone or online if you
have changed your address (for checks) or your bank information (for wires and
transfers) in the last 30 days.

You may receive your sale proceeds:
o By check, provided the check is made payable exactly as your account is
registered
o By bank wire or by electronic funds transfer, provided the sale proceeds are
being sent to your bank address of record

In writing, by mail or by fax
You can sell some or all of your fund shares by writing directly to the fund
only if your account is registered in your name. Include in your request your
name, your social security number, the fund's name, your fund account number,
the class of shares to be sold, the dollar amount or number of shares to be
sold and any other applicable requirements as described below. The transfer
agent will send the sale proceeds to your address of record unless you provide
other instructions. Your request must be signed by all registered owners and be
in good order.

The transfer agent will not process your request until it is received in good
order.

You may sell up to $100,000 per account per day by fax.

How to contact us

By phone
For information or to request a telephone transaction between 8:00 a.m. and
7:00 p.m. (Eastern time) by speaking with a shareholder services representative
call 1-800-225-6292

To request a transaction using FactFone(SM) call
1-800-225-4321

Telecommunications Device for the Deaf (TDD)
1-800-225-1997

By mail
Send your written instructions to:
Pioneer Investment Management
Shareholder Services, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014

Pioneer website
www.pioneerinvestments.com

By fax
Fax your exchange and sale requests to:
1-800-225-4240

Buying, exchanging and selling shares

Excessive trading
Frequent trading into and out of the fund can disrupt portfolio management
strategies, harm fund performance by forcing the fund to hold excess cash or to
liquidate certain portfolio securities prematurely and increase expenses for
all investors, including long-term investors who do not generate these costs.
An investor may use short-term trading as a strategy, for example, if the
investor believes that the valuation of the fund's portfolio securities for
purposes of calculating its net asset value does not fully reflect the then
current fair market value of those holdings. The fund discourages, and does not
take any intentional action to accommodate, excessive and short-term trading
practices, such as market timing. Although there is no generally applied
standard in the marketplace as to what level of trading activity is excessive,
we may consider trading in the fund's shares to be excessive for a variety of
reasons, such as if:
o You sell shares within a short period of time after the shares were
purchased;
o You make two or more purchases and redemptions within a short period of time;

o You enter into a series of transactions that indicate a timing pattern or
strategy; or

o We reasonably believe that you have engaged in such practices in connection
with other mutual funds.

The fund's Board of Trustees has adopted policies and procedures with respect
to frequent purchases and redemptions of fund shares by fund investors.
Pursuant to these policies and procedures, we monitor selected trades on a
daily basis in an effort to detect excessive short-term trading. If we
determine that an investor or a client of a broker or other intermediary has
engaged in excessive short-term trading that we believe may be harmful to the
fund, we will ask the investor, broker or other intermediary to cease such
activity and we will refuse to process purchase orders (including purchases by
exchange) of such investor, broker, other intermediary or accounts that we
believe are under their control. In determining whether to take such actions,
we seek to act in a manner that is consistent with the best interests of the
fund's shareholders.

While we use our reasonable efforts to detect excessive trading activity, there
can be no assurance that our efforts will be successful or that market timers
will not employ tactics designed to evade detection. If we are not successful,
your return from an investment in the fund may be adversely affected.
Frequently, fund shares are held through omnibus accounts maintained by
financial intermediaries such as brokers and retirement plan administrators,
where the holdings of multiple shareholders, such as all the clients of a
particular broker or other intermediary, are aggregated. Our ability to monitor
trading practices by investors purchasing shares through omnibus accounts may
be limited and dependent upon the cooperation of the broker or other
intermediary in taking steps to limit this type of activity.

The fund may reject a purchase or exchange order before its acceptance or the
issuance of shares. The fund may also restrict additional purchases or
exchanges in an account. Each of these steps may be taken for any transaction,
for any reason, without prior notice, including transactions that the fund
believes are requested on behalf of market timers. The fund reserves the right
to reject any purchase or exchange request by any investor or financial
institution if the fund believes that any combination of trading activity in
the account or related accounts is potentially disruptive to the fund. A
prospective investor whose purchase or exchange order is rejected will not
achieve the investment results, whether gain or loss, that would have been
realized if the order were accepted and an investment made in the fund. The
fund and its shareholders do not incur any gain or loss as a result of a
rejected order. The fund may impose further restrictions on trading activities
by market timers in the future.

To limit the negative effects of excessive trading on the fund, the fund has
adopted the following restriction on investor transactions. If an investor
redeems $5,000 or more (including redemptions that are a part of an exchange
transaction) from the fund, that investor shall be prevented (or "blocked")
from purchasing shares of the fund (including purchases that are a part of an
exchange transaction) for 30 calendar days after the redemption. This policy
does not apply to systematic purchase or withdrawal plan transactions,
transactions made through employer-sponsored retirement plans described under
Section 401(a), 403(b) or 457 of the Internal Revenue Code or employee benefit
plans, scheduled (Internal Revenue Code Section 72(t) election) or mandatory
(required minimum distribution) withdrawals from IRAs, rebalancing transactions
made through certain asset allocation or "wrap" programs, transactions by
insurance company separate accounts or transactions by other funds that invest
in the fund. This policy does not apply to purchase or redemption transactions
of less than $5,000 or to the Pioneer money market funds.

We rely on financial intermediaries that maintain omnibus accounts to apply to
their customers either the fund's policy described above or their own policies
or restrictions designed to limit excessive trading of fund shares. However, we
do not impose this policy at the omnibus account level.

Purchases pursuant to the reinstatement privilege (for Class A and Class B
shares) are subject to this policy.

Account options
See the account application form for more details on each of the following
options.

Automatic investment plans
You can make regular periodic investments in the fund by setting up monthly
bank drafts, government allotments, payroll deductions, a Pioneer Investomatic
Plan and other similar automatic investment plans. You may use an automatic
investment

Buying, exchanging and selling shares

plan to establish a Class A share account with a small initial investment. If
you have a Class B or Class C share account and your balance is at least
$1,000, you may establish an automatic investment plan.

Pioneer Investomatic Plan
If you establish a Pioneer Investomatic Plan, the transfer agent will make a
periodic investment in fund shares by means of a preauthorized electronic funds
transfer from your bank account. Your plan investments are voluntary. You may
discontinue your plan at any time or change the plan's dollar amount, frequency
or investment date by calling or writing to the transfer agent. You should
allow up to 30 days for the transfer agent to establish your plan.

Automatic exchanges
You can automatically exchange your fund shares for shares of the same class of
another Pioneer mutual fund. The automatic exchange will begin on the day you
select when you complete the appropriate section of your account application or
an account options form. In order to establish automatic exchange:
o You must select exchanges on a monthly or quarterly basis
o Both the originating and receiving accounts must have identical registrations
o The originating account must have a minimum balance of $5,000

You may have to pay income taxes on an exchange.

Distribution options
The fund offers three distribution options. Any fund shares you buy by
reinvesting distributions will be priced at the applicable net asset value per
share.

(1) Unless you indicate another option on your account application, any
dividends and capital gain distributions paid to you by the fund will
automatically be invested in additional fund shares.

(2) You may elect to have the amount of any dividends paid to you in cash and
any capital gain distributions reinvested in additional shares.

(3) You may elect to have the full amount of any dividends and/or capital gain
distributions paid to you in cash.

Options (2) or (3) are not available to retirement plan accounts or accounts
with a current value of less than $500.

If your distribution check is returned to the transfer agent or you do not cash
the check for six months or more, the transfer agent may reinvest the amount of
the check in your account and automatically change the distribution option on
your account to option (1) until you request a different option in writing. If
the amount of a distribution check would be less than $10, the fund may
reinvest the amount in additional shares of the fund instead of sending a
check. Additional shares of the fund will be purchased at the then current net
asset value.

Directed dividends
You can invest the dividends paid by one of your Pioneer mutual fund accounts
in a second Pioneer mutual fund account. The value of your second account must
be at least $1,000. You may direct the investment of any amount of dividends.
There are no fees or charges for directed dividends. If you have a retirement
plan account, you may only direct dividends to accounts with identical
registrations.

Systematic withdrawal plans
When you establish a systematic withdrawal plan for your account, the transfer
agent will sell the number of fund shares you specify on a periodic basis and
the proceeds will be paid to you or to any person you select. You must obtain a
signature guarantee to direct payments to another person after you have
established your systematic withdrawal plan. Payments can be made either by
check or by electronic transfer to a bank account you designate.

To establish a systematic withdrawal plan:
o Your account must have a total value of at least $10,000 when you establish
your plan
o You must request a periodic withdrawal of at least $50
o You may not request a periodic withdrawal of more than 10% of the value of
any Class B or Class C share account (valued at the time the plan is
implemented)

These requirements do not apply to scheduled (Internal Revenue Code Section
72(t) election) or mandatory (required minimum distribution) withdrawals from
IRAs and certain retirement plans.

Systematic sales of fund shares may be taxable transactions for you. While you
are making systematic withdrawals from your account, you may pay unnecessary
initial sales charges on additional purchases of Class A shares or contingent
deferred sales charges.

Direct deposit
If you elect to take dividends or dividends and capital gain distributions in
cash, or if you establish a systematic withdrawal plan, you may choose to have
those cash payments deposited directly into your savings, checking or NOW bank
account.

Voluntary tax withholding
You may have the transfer agent withhold 28% of the dividends and capital gain
distributions paid from your fund account (before any reinvestment) and forward
the amount withheld to the Internal Revenue Service as a credit against your
federal income taxes. Voluntary tax withholding is not available for retirement
plan accounts or for accounts subject to backup withholding.

Buying, exchanging and selling shares

Shareowner services

Pioneer website
www.pioneerinvestments.com
The website includes a full selection of information on mutual fund investing.
You can also use the website to get:
o Your current account information
o Prices, returns and yields of all publicly available Pioneer mutual funds
o Prospectuses, statements of additional information and shareowner reports for
all the Pioneer mutual funds
o A copy of Pioneer's privacy notice

If you or your investment firm authorized your account for the online
transaction privilege, you may buy, exchange and sell shares online.

FactFone(SM) 1-800-225-4321
You can use FactFone(SM) to:
o Obtain current information on your Pioneer mutual fund accounts
o Inquire about the prices and yields of all publicly available Pioneer mutual
funds
o Make computer-assisted telephone purchases, exchanges and redemptions for
your fund accounts
o Request account statements

If you plan to use FactFone(SM) to make telephone purchases and redemptions,
first you must activate your personal identification number and establish your
bank account of record. If your account is registered in the name of a
broker-dealer or other third party, you may not be able to use FactFone(SM).

Household delivery of fund documents
With your consent, Pioneer may send a single proxy statement, prospectus and
shareowner report to your residence for you and any other member of your
household who has an account with the fund. If you wish to revoke your consent
to this practice, you may do so by notifying Pioneer, by phone or in writing
(see "How to contact us"). Pioneer will begin mailing separate proxy
statements, prospectuses and shareowner reports to you within 30 days after
receiving your notice.

Confirmation statements
The transfer agent maintains an account for each investment firm or individual
shareowner and records all account transactions. You will be sent confirmation
statements showing the details of your transactions as they occur, except
automatic investment plan transactions, which are confirmed quarterly. If you
have more than one Pioneer mutual fund account registered in your name, the
Pioneer combined account statement will be mailed to you each quarter.

Tax information
Early each year, the fund will mail you information about the tax status of the
dividends and distributions paid to you by the fund.

TDD 1-800-225-1997
If you have a hearing disability and access to TDD keyboard equipment, you can
contact our telephone representatives with questions about your account by
calling our TDD number between 8:30 a.m. and 5:30 p.m. Eastern time any weekday
that the New York Stock Exchange is open.

Privacy
The fund has a policy that protects the privacy of your personal information. A
copy of Pioneer's privacy notice was given to you at the time you opened your
account. The fund will send you a copy of the privacy notice each year. You may
also obtain the privacy notice by calling the transfer agent or through
Pioneer's website.

Shareowner account policies

Signature guarantees and other requirements
You are required to obtain a signature guarantee when:
o Requesting certain types of exchanges or sales of fund shares
o Redeeming shares for which you hold a share certificate
o Requesting certain types of changes for your existing account

You can obtain a signature guarantee from most broker-dealers, banks, credit
unions (if authorized under state law) and federal savings and loan
associations. You cannot obtain a signature guarantee from a notary public.

The Pioneer funds generally accept only medallion signature guarantees. A
medallion signature guarantee may be obtained from a domestic bank or trust
company, broker, dealer, clearing agency, savings association, or other
financial institution that is participating in a medallion program recognized
by the Securities Transfer Association. Signature guarantees from financial
institutions that are not participating in one of these programs are not
accepted as medallion signature guarantees. The fund may accept other forms of
guarantee from financial intermediaries in limited circumstances.

Fiduciaries and corporations are required to submit additional documents to
sell fund shares.

Minimum account size
The fund requires that you maintain a minimum account value of $500. If you
hold less than $500 in your account, the fund reserves the right to notify you
that it intends to sell your shares and close your account. You will be given
60 days from the date of the notice to make additional investments to avoid
having your shares sold. This policy does not apply to certain qualified
retirement plan accounts.

Buying, exchanging and selling shares

Telephone and website access
You may have difficulty contacting the fund by telephone or accessing
pioneerinvestments.com during times of market volatility or disruption in
telephone or Internet service. On New York Stock Exchange holidays or on days
when the exchange closes early, Pioneer will adjust the hours for the telephone
center and for online transaction processing accordingly. If you are unable to
access pioneerinvestments.com or reach the fund by telephone, you should
communicate with the fund in writing.

Share certificates
The fund does not offer share certificates. Shares are electronically recorded.
Any existing certificated shares can only be sold by returning your certificate
to the transfer agent, along with a letter of instruction or a stock power (a
separate written authority transferring ownership) and a signature guarantee.

Other policies
The fund and the distributor reserve the right to:
o reject any purchase or exchange order for any reason, without prior notice
o charge a fee for exchanges or to modify, limit or suspend the exchange
privilege at any time without notice. The fund will provide 60 days' notice
of material amendments to or termination of the exchange privilege
o revise, suspend, limit or terminate the account options or services available
to shareowners at any time, except as required by the rules of the
Securities and Exchange Commission

The fund reserves the right to:
o suspend transactions in shares when trading on the New York Stock Exchange is
closed or restricted, or when the Securities and Exchange Commission
determines an emergency or other circumstances exist that make it
impracticable for the fund to sell or value its portfolio securities
o redeem in kind by delivering to you portfolio securities owned by the fund
rather than cash. Securities you receive this way may increase or decrease
in value while you hold them and you may incur brokerage and transaction
charges and tax liability when you convert the securities to cash

o charge transfer, shareholder servicing or similar agent fees, such as an
account maintenance fee for small balance accounts, directly to accounts
upon at least 30 days' notice. The fund may do this by deducting the fee
from your distribution of dividends and/or by redeeming fund shares to the
extent necessary to cover the fee

Dividends, capital gains and taxes

Dividends and capital gains

The fund declares dividends daily. The dividends consist of substantially all
of the fund's net income (excluding any net short- and long-term capital
gains). You begin to earn dividends on the first business day following receipt
of payment for shares. You continue to earn dividends up to and including the
date of sale. Dividends are normally paid on the last business day of each
month. The fund generally pays any distributions of net short- and long-term
capital gains in November.

The fund may also pay dividends and capital gain distributions at other times
if necessary for the fund to avoid U.S. federal income or excise tax. If you
invest in the fund shortly before a distribution of short- or long-term capital
gains, generally you will pay a higher price per share and you will pay taxes
on the amount of the distribution whether you reinvest the distribution in
additional shares or receive it as cash.

Taxes

You will normally have to pay federal income taxes, and any state or local
taxes, on the dividends and other distributions you receive from the fund,
whether you take the distributions in cash or reinvest them in additional
shares. For U.S. federal income tax purposes, distributions from the fund's net
capital gains (if any) are considered long-term capital gains and may be
taxable to you at reduced rates depending upon their source and other factors.
Distributions from the fund's ordinary income and net short-term capital gains
are taxable as ordinary income.

Since the fund's income is derived primarily from sources that do not pay
dividends, it is not expected that a substantial portion of dividends paid by
the fund will qualify for either the dividends-received deduction for
corporations or the maximum 15% U.S. federal income tax rate available to
individuals on "qualified dividend income."

If the fund declares a dividend in October, November or December, payable to
shareholders of record in such a month, but pays it in January of the following
year, you will be taxed on the dividend as if you received it in the year in
which it was declared.

When you sell or exchange fund shares you will generally recognize a capital
gain or capital loss in an amount equal to the difference between the net
amount of sale proceeds (or, in the case of an exchange, the fair market value
of the shares) that you receive and your tax basis for the shares that you sell
or exchange.

You must provide your social security number or other taxpayer identification
number to the fund along with the certifications required by the Internal
Revenue Service when you open an account. If you do not or if it is otherwise
legally required to do so, the fund will withhold 28% "backup withholding" tax
from your dividends and other distributions, sale proceeds and any other
payments to you that are subject to backup withholding.

Dividends, capital gains and taxes

You should ask your tax adviser about any federal, state, local and foreign tax
considerations relating to an investment in the fund. You may also consult the
fund's statement of additional information for a more detailed discussion of
the U.S. federal income tax considerations that may affect the fund and its
shareowners.

- --------------------------------------------------------------------------------
Sales and exchanges generally will be taxable transactions to shareowners.
- --------------------------------------------------------------------------------

Financial highlights

The financial highlights table helps you understand
the fund's financial performance since inception.

Certain information reflects financial results for a single fund share. The
total returns in the table represent the rate that you would have earned or
lost on an investment in Class A, Class B and Class C shares of the fund
(assuming reinvestment of all dividends and distributions).

The information below has been audited by Ernst & Young LLP, the fund's
independent registered public accounting firm, whose report is included in the
fund's annual report along with the fund's financial statements. The annual
report is available upon request.

Financial highlights

Pioneer Short Term Income Fund

Class A shares

For the
period from
7/8/04
(Commence-
Year Year Year Year ment of
Ended Ended Ended Ended Operations)
8/31/08 8/31/07 8/31/06 8/31/05 to 8/31/04
- ---------------------------------------------------------------------------------------------------------

Net asset value, beginning of period $ 9.76 $ 9.75 $ 9.84 $ 10.02 $ 10.00
Increase (decrease) from investment
operations:
Net investment income $ 0.45 $ 0.43 $ 0.29 $ 0.27 $ 0.03
Net realized and unrealized gain (loss)
on investments and foreign
currency transactions (0.24) 0.02 (0.06) (0.14) 0.03
------- ------ ------- ------- -------
Net increase from investment
operations $ 0.21 $ 0.45 $ 0.23 $ 0.13 $ 0.06
Distributions to shareowners:
Net investment income (0.45) (0.44) (0.32) (0.31) (0.04)
------- ------- ------- ------- -------
Net increase (decrease) in net
asset value $ (0.24) $ 0.01 $ (0.09) $ (0.18) $ 0.02
------- ------- ------- ------- -------
Net asset value, end of period $ 9.52 $ 9.76 $ 9.75 $ 9.84 $ 10.02
======= ======= ======= ======= =======
Total return* 2.18% 4.68% 2.38% 1.31% 0.59%(a)
Ratio of net expenses to average
net assets+ 0.91% 0.91% 0.90% 0.90% 0.90%**
Ratio of net investment income to
average net assets+ 4.60% 4.27% 3.05% 2.68% 1.64%**
Portfolio turnover rate 34% 78% 81% 71% 24%(a)
Net assets, end of period (in thousands) $12,499 $13,184 $21,701 $11,512 $ 1,478
Ratios with no waiver of management
fees and assumption of expenses by
PIM and no reduction for fees paid
indirectly:
Net expenses 1.00% 1.00% 0.99% 1.40% 9.40%**
Net investment income (loss) 4.51% 4.18% 2.96% 2.18% (6.86)%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 0.90% 0.90% 0.90% 0.90% 0.90%**
Net investment income 4.61% 4.28% 3.05% 2.68% 1.64%**
- ---------------------------------------------------------------------------------------------------------

* 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.
(a) Not annualized.
+ Ratio with no reduction for fees paid indirectly.

Pioneer Short Term Income Fund

Class B shares

Net asset value, beginning of period $ 9.75 $ 9.75 $ 9.84 $ 10.01 $ 10.00
Increase from investment operations:
Net investment income $ 0.36 $ 0.34 $ 0.20 $ 0.18 $ 0.01
Net realized and unrealized gain (loss)
on investments and foreign
currency transactions (0.25) 0.01 (0.05) (0.13) 0.03
------- ------- ------- ------- -------
Net increase from investment
operations $ 0.11 $ 0.35 $ 0.15 $ 0.05 $ 0.04
Distributions to shareowners:
Net investment income (0.36) (0.35) (0.24) (0.22) (0.03)
------- ------- ------- ------- -------
Net increase (decrease) in net
asset value $ (0.25) $ -- $ (0.09) $ (0.17) $ 0.01
------- ------- ------- ------- -------
Net asset value, end of period $ 9.50 $ 9.75 $ 9.75 $ 9.84 $ 10.01
======= ======= ======= ======= =======
Total return* 1.16% 3.64% 1.56% 0.56% 0.40%(a)
Ratio of net expenses to average
net assets+ 1.80% 1.82% 1.80% 1.74% 1.89%**
Ratio of net investment income to
average net assets+ 3.72% 3.37% 2.14% 1.68% 0.65%**
Portfolio turnover rate 34% 78% 81% 71% 24%(a)
Net assets, end of period (in thousands) $ 6,798 $ 8,969 $14,959 $ 3,338 $ 718
Ratios with no waiver of management
fees and assumption of expenses by
PIM and no reduction for fees paid
indirectly:
Net expenses 1.85% 1.88% 1.82% 2.29% 10.65%**
Net investment income (loss) 3.67% 3.31% 2.12% 1.13% (8.11)%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.80% 1.80% 1.80% 1.74% 1.89%**
Net investment income 3.72% 3.39% 2.14% 1.68% 0.65%**
- ---------------------------------------------------------------------------------------------------------

Financial highlights

Pioneer Short Term Income Fund

Class C shares

Net asset value, beginning of period $ 9.74 $ 9.73 $ 9.82 $ 10.00 $ 10.00
Increase from investment operations:
Net investment income $ 0.37 $ 0.35 $ 0.21 $ 0.20 $ 0.03
Net realized and unrealized gain (loss)
on investments and foreign
currency transactions (0.25) 0.01 (0.07) (0.14) 0.02
------- ------- ------- ------- -------
Net increase from investment
operations $ 0.12 $ 0.36 $ 0.14 $ 0.06 $ 0.05
Distributions to shareowners:
Net investment income (0.37) (0.35) (0.23) (0.24) (0.05)
------- ------- ------- ------- -------
Net increase (decrease) in net
asset value $ (0.25) $ 0.01 $ (0.09) $ (0.18) $ --
------- ------- ------- ------- -------
Net asset value, end of period $ 9.49 $ 9.74 $ 9.73 $ 9.82 $ 10.00
======= ======= ======= ======= =======
Total return* 1.25% 3.79% 1.47% 0.58% 0.46%(a)
Ratio of net expenses to average
net assets+ 1.73% 1.72% 1.78% 1.69% 1.39%**
Ratio of net investment income to
average net assets+ 3.77% 3.45% 2.16% 1.95% 1.16%**
Portfolio turnover rate 34% 78% 81% 71% 24%(a)
Net assets, end of period (in thousands) $ 3,441 $ 2,879 $ 5,964 $ 4,804 $ 2,538
Ratios with no waiver of management
fees and assumption of expenses by
PIM and no reduction for fees paid
indirectly:
Net expenses 1.73% 1.72% 1.78% 2.38% 9.63%**
Net investment income (loss) 3.77% 3.45% 2.16% 1.26% (7.08)%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.73% 1.71% 1.78% 1.69% 1.39%**
Net investment income 3.77% 3.46% 2.16% 1.95% 1.16%**
- ---------------------------------------------------------------------------------------------------------

Notes

Pioneer
Short Term Income Fund

You can obtain more free information about the fund from your investment firm
or by writing to Pioneer Investment Management Shareholder Services, Inc., 60
State Street, Boston, Massachusetts 02109. You may also call 1-800-225-6292.

Visit our website
www.pioneerinvestments.com

The fund makes available the statement of additional information and shareowner
reports, free of charge, on the fund's website at www.pioneerinvestments.com.
You also may find other information and updates about Pioneer and the fund,
including fund performance information, on the fund's website.

Shareowner reports

Annual and semiannual reports to shareowners, and quarterly reports filed with
the Securities and Exchange Commission, provide additional information about
the fund's investments. The annual report discusses market conditions and
investment strategies that significantly affected the fund's performance during
its last fiscal year.

Statement of additional information

The statement of additional information provides more detailed information
about the fund. It is incorporated by reference into this prospectus.

You can also review and copy the fund's shareowner reports, prospectus and
statement of additional information at the Securities and Exchange Commission's
Public Reference Room in Washington, D.C. Call 1-202-551-8090 for information.
The Commission charges a fee for copies. You can get the same information free
from the Commission's EDGAR database on the Internet (http://www.sec.gov). You
may also e-mail requests for these documents to publicinfo@sec.gov or make a
request in writing to the Commission's Public Reference Section, Washington,
D.C. 20549-0102.

(Investment Company Act file no. 811-21558)

[Logo]PIONEER
Investments(R)

Pioneer Funds Distributor, Inc.
60 State Street 20195-02-0109
Boston, MA 02109 (C)2008 Pioneer Funds Distributor, Inc.
www.pioneerinvestments.com Member SIPC

PIONEER
- --------------------------------------------------------------------------------
SHORT TERM INCOME FUND

Prospectus

December 31, 2008

Class Y Shares

Contents
- --------------------------------------------------------------------------------

Basic information about the fund .............. 1
Management .................................... 15
Buying, exchanging and selling shares ......... 17
Dividends, capital gains and taxes ............ 35
Financial highlights .......................... 37

[LOGO]PIONEER
Investments(R)

- --------------------------------------------------------------------------------
Contact your investment professional to discuss how the fund fits into your
portfolio.
- --------------------------------------------------------------------------------

Basic information about the fund

Investment objective
A high level of current income to the extent consistent with a relatively high
level of stability of principal.

Non-U.S. securities

Basic information about the fund

Securities in the lowest category of investment grade are considered to have
speculative characteristics.
- --------------------------------------------------------------------------------

Principal risks of investing in the fund

o Interest rates go up, causing the value of the fund's investments to decline.
This is known as interest rate risk (this risk may be greater for
securities with longer maturities)

o Pioneer's judgment about the attractiveness, relative value or potential
appreciation of a particular sector, security or hedging strategy proves to
be incorrect

Basic information about the fund

Market segment risks

To the extent the fund emphasizes, from time to time, investments in a market
segment, the fund will be subject to a greater degree to the risks particular
to the industries in that segment, and may experience greater market
fluctuation, than a fund without the same focus. For example, industries in the
financial segment, such as banks, insurance companies, broker-dealers and real
estate investment trusts (REITs), may be sensitive to changes in interest rates
and general economic activity and are generally subject to extensive government
regulation.

The fund's past performance
The bar chart and table indicate the risks of investing in the fund by showing
how the fund has performed in the past. The fund's performance will vary from
year to year.

The fund's past performance (before and after taxes) does not necessarily
indicate how it will perform in the future. As a shareowner, you may lose or
make money on your investment.

Fund performance
The chart shows the year-by-year performance of the fund's Class Y shares.

The chart does not reflect any sales charge you may pay when you buy or sell
fund shares. Any sales charge will reduce your return.

You do not pay a sales charge on purchases or redemptions of Class Y shares.

Annual return Class Y shares (%)
(Year ended December 31)

[THE FOLLOWING DATA IS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]

'05 1.62
'06 4.28
'07 5.35

For the period covered by the bar chart:

The highest calendar quarterly return was 1.97% (07/01/2006 to 09/30/2006)

The lowest calendar quarterly return was -0.09% (01/01/2005 to 03/31/2005)

At September 30, 2008, the year-to-date return was -0.41%.

Basic information about the fund

Comparison with the Barclays Capital One- to Three-Year Government/

Credit Index

The table shows the average annual total returns for Class Y shares of the fund
over time and compares these returns to the returns of the Barclays Capital
One- to Three-Year Government/Credit Index. This index measures the performance
of the short-term (1 to 3 years) government and investment-grade corporate bond
markets

Unlike the fund, the index is not managed and does not incur fees, expenses or
taxes. You cannot invest directly in the index. The table:

o Assumes that you sell your shares at the end of the period
o Assumes that you reinvest all of your dividends and distributions

You do not pay a sales charge on purchases or redemptions of Class Y shares.

Average annual total return (%)

(for periods ended December 31, 2007)

Since Inception
1 Year Inception Date
- --------------------------------------------------------------------------------

Class Y 7/8/04
Return before taxes 5.35 3.52
- --------------------------------------------------------------------------------
Return after taxes on distributions 3.53 2.07
- --------------------------------------------------------------------------------
Return after taxes on distributions
and sale of shares 3.45 2.15
- --------------------------------------------------------------------------------
Barclays Capital One- to Three-Year
Government/Credit Index (reflects no
deduction for fees, expenses or taxes) 6.83 3.99
- --------------------------------------------------------------------------------

Fees and expenses
This table describes the fees and expenses that you may pay if you buy and hold
shares of the fund.

Shareowner fees
paid directly from your investment Class Y
- --------------------------------------------------------------------------------

Maximum sales charge (load) when you buy shares None
- --------------------------------------------------------------------------------
Maximum deferred sales charge (load) when you sell shares None
- --------------------------------------------------------------------------------

Annual fund operating expenses
paid from the assets of the fund
as a percentage of average daily net assets Class Y
- --------------------------------------------------------------------------------

Management Fee 0.40%
- --------------------------------------------------------------------------------
Distribution and Service (12b-1) Fee 0.00%
- --------------------------------------------------------------------------------
Other Expenses 0.15%
- --------------------------------------------------------------------------------
Total Annual Fund Operating Expenses(1) 0.55%
- --------------------------------------------------------------------------------

Example

This example helps you compare the cost of investing in the fund with the cost
of investing in other mutual funds. It assumes that: a) you invest $10,000 in
the fund for the time periods shown, b) you reinvest all dividends and
distributions, c) your investment has a 5% return each year and d) the fund's
operating expenses remain the same.

Although your actual costs may be higher or lower, under these assumptions your
costs would be:

Number of years you own your shares
---------------------------------------
1 3 5 10
- --------------------------------------------------------------------------------

Class Y $56 $176 $307 $689
- --------------------------------------------------------------------------------

1 Total annual fund operating expenses in the table have not been reduced by
any expense offset arrangements.

Basic information about the fund

Debt rating criteria

Event-linked bonds

Basic information about the fund

linked bonds are subject to the risk that the model used to calculate the
probability of a trigger event was not accurate and underestimated the
likelihood of a trigger event. Upon the occurrence or possible occurrence of a
trigger event, and until the completion of the processing and auditing of
applicable loss claims, the fund's investment in such event-linked bond may be
priced using fair value methods. As a relatively new type of financial
instrument, there is limited trading history for these securities, and there
can be no assurance that a liquid market in these instruments will develop.

The fund may enter into credit default swaps, which can be used to transfer the
credit risk of a security without buying or selling the security.

Basic information about the fund

positions when it may not be advantageous to do so to satisfy its obligations
or meet segregation requirements.

See "Financial highlights" for actual annual turnover rates.

Disclosure of portfolio holdings
The fund's policies and procedures with respect to disclosure of the fund's
portfolio securities are described in the statement of additional information.

Management

Pioneer, the fund's investment adviser,
selects the fund's investments and oversees the fund's operations.

Investment adviser
Pioneer's main office is at 60 State Street, Boston, Massachusetts 02109. The
firm's U.S. mutual fund investment history includes creating in 1928 one of the
first mutual funds.

Portfolio management

Management

For the fiscal year ended August 31, 2008, the fund paid management fees
equivalent to 0.40% of the fund's average daily net assets.

A discussion regarding the basis for the Board of Trustees' approval of the
management contract is available in the fund's annual report to shareholders,
for the period ended August 31, 2008.

Distributor and transfer agent

Buying, exchanging and selling shares

Net asset value

You buy or sell Class Y shares at the share price.

Buying, exchanging and selling shares

Other classes of shares may be available that are not offered in this
prospectus.

- --------------------------------------------------------------------------------
Share price
The net asset value per share calculated on the day of your transaction.
- --------------------------------------------------------------------------------

Distribution of Class Y shares
The distributor incurs the expenses of distributing the fund's Class Y shares,
none of which are reimbursed by the fund or the Class Y shareowners.
Distribution expenses include fees paid to broker-dealers which have sales
agreements with the distributor and other parties, advertising expenses and the
cost of printing and mailing prospectuses to potential investors.

Payments to financial intermediaries
Pioneer and its affiliates may make payments to your financial intermediary.
These payments by Pioneer may provide your financial intermediary with an
incentive to favor the Pioneer funds over other mutual funds or assist the
distributor in its efforts to promote the sale of the fund's shares. Financial
intermediaries include broker-dealers, banks (including bank trust
departments), registered investment advisers, financial planners, retirement
plan administrators and other types of intermediaries.

Pioneer makes these payments (sometimes referred to as "revenue sharing") to
financial intermediaries out of its own assets. Revenue sharing is not an
expense of the Pioneer funds. Pioneer may base these payments on a variety of
criteria, including the amount of sales or assets of the Pioneer funds
attributable to the financial intermediary or as a per transaction fee.

Not all financial intermediaries receive compensation and the amount of
compensation paid varies for each financial intermediary. In certain cases,
these payments may be significant. Pioneer determines which firms to support
and the extent of the payments it is willing to make, generally choosing firms
that have a strong capability to effectively distribute shares of the Pioneer
funds and that are willing to cooperate with Pioneer's promotional efforts.
Pioneer also may compensate financial intermediaries (in addition to amounts
that may be paid by the fund) for providing certain administrative services and
transaction processing services.

shares of the Pioneer funds or retain shares of the Pioneer funds in their
clients' accounts, Pioneer receives greater management and other fees due to
the increase in the Pioneer funds' assets. The intermediary may earn a profit
on these payments to the intermediary if the amount of the payment exceeds the
intermediary's costs.

Pioneer and its affiliates may have other relationships with your financial
intermediary relating to the provision of services to the Pioneer funds, such
as providing omnibus account services or effecting portfolio transactions for
the Pioneer funds. If your intermediary provides these services, Pioneer or the
Pioneer funds may compensate the intermediary for these services. In addition,
your intermediary may have other relationships with Pioneer or its affiliates
that are not related to the Pioneer funds.

Buying, exchanging and selling shares

Opening your account

If you are an individual or other non-institutional investor, open your Class Y
share account by completing an account application and sending it to the
transfer agent by mail or by fax. If you are any other type of investor, please
call the transfer agent to obtain a Class Y share account application and an
account number.

The transfer agent must receive your account application before you send your
initial check or federal funds wire. In addition, you must provide a bank wire
address of record when you establish your account.

Call or write to the transfer agent for account applications, account options
forms and other account information:

Pioneer Investment Management
Shareholder Services, Inc.
P.O. Box 55150
Boston, Massachusetts 02205-5150
Telephone 1-800-665-8839

Telephone transaction privileges
If your account is registered in your name, you can exchange or sell Class Y
shares by telephone. If you do not want your account to have telephone
transaction privileges, you must indicate that choice on your account
application or by writing to the transfer agent.

When you request a telephone transaction the transfer agent will try to confirm
that the request is genuine. The transfer agent records the call, requires the
caller

to provide validating information for the account and sends you a written
confirmation. The fund may implement other confirmation procedures from time to
time. Different procedures may apply if you have a non-U.S. account or if your
account is registered in the name of an institution, broker-dealer or other
third party.

- --------------------------------------------------------------------------------
By phone
If you want to place your telephone transaction by speaking to a shareowner
services representative, call 1-800-665-8839 between 9:00 a.m. and 5:30 p.m.
Eastern time on any weekday that the New York Stock Exchange is open.
- --------------------------------------------------------------------------------

Buying, exchanging and selling shares

General rules on buying, exchanging and selling your
fund shares

Share price

- --------------------------------------------------------------------------------
Good order means that:
o You have provided adequate instructions
o There are no outstanding claims against your account
o There are no transaction limitations on your account
o If you have any fund share certificates, you submit them and they are signed
by each record owner exactly as the shares are registered
o Your request includes a signature guarantee if you:
- Are selling over $100,000 worth of shares and
- Want the sale proceeds sent to an address other than your bank
account of record or
- Want the sale proceeds to be made payable to someone other than the
account's record owners or
- Changed your account registration, address of record or bank account of
record within the last 30 days
- Are selling or exchanging over $5 million worth of shares
- Are transferring the sale proceeds to a Pioneer mutual fund account with a
different registration
- --------------------------------------------------------------------------------

Buying
You can buy Class Y shares at net asset value per share. The fund does not
impose any initial, contingent deferred or asset based sales charge on Class Y
shares. The distributor may reject any order until it has confirmed it in
writing and received payment.

Minimum investment amount
Your initial Class Y share investment must be at least $5 million. This amount
may be invested in one or more of the Pioneer mutual funds that currently offer
Class Y shares. There is no minimum additional investment amount. The fund may
waive the initial investment amount.

Waivers of the minimum investment amount
The fund will accept an initial investment of less than $5 million if:

(a) The investment is made by a trust company or bank trust department which is
initially investing at least $1 million in any of the Pioneer mutual funds
and, at the time of the purchase, such assets are held in a fiduciary,
advisory, custodial or similar capacity over which the trust company or
bank trust department has full or shared investment discretion; or

(b) The investment is at least $1 million in any of the Pioneer mutual funds
and the purchaser is an insurance company separate account; or

(c) The account is not represented by a broker-dealer and the investment is
made by (1) an ERISA-qualified retirement plan that meets the requirements
of Section 401 of the Internal Revenue Code, (2) an employer-sponsored
retirement plan that meets the requirements of Sections 403 or 457 of the
Internal Revenue Code, (3) a private foundation that meets the
requirements of Section 501(c)(3) of the Internal Revenue Code or (4) an
endowment or other organization that meets the requirements of Section
509(a)(1) of the Internal Revenue Code; or

(d) The investment is made by an employer-sponsored retirement plan established
for the benefit of (1) employees of Pioneer or its affiliates, or (2)
employees or the affiliates of broker-dealers who have a Class Y shares
sales agreement with the distributor; or

(e) The investment is made through certain mutual fund programs sponsored by
qualified intermediaries, such as broker-dealers and investment advisers.
In each case, the intermediary has entered into an agreement with Pioneer
to

Buying, exchanging and selling shares

include Class Y shares of the Pioneer mutual funds in their program. The
intermediary provides investors participating in the program with
additional services, including advisory, asset allocation, recordkeeping or
other services. You should ask your investment firm if it offers and you
are eligible to participate in such a mutual fund program and whether
participation in the program is consistent with your investment goals. The
intermediaries sponsoring or participating in these mutual fund programs
may also offer their clients other classes of shares of the funds and
investors may receive different levels of services or pay different fees
depending upon the class of shares included in the program. Investors
should consider carefully any separate transaction and other fees charged
by these programs in connection with investing in each available share
class before selecting a share class; or

(f) The investment is made by another Pioneer fund

The fund reserves the right to waive the initial investment minimum in other
circumstances.

The fund may close your account if we cannot adequately verify your identity.
The redemption price will be the net asset value on the date of redemption.

Exchanging
You may exchange your Class Y shares for the Class Y shares of another Pioneer
mutual fund.

Your exchange request must be for at least $1,000. The fund allows you to
exchange your Class Y shares at net asset value without charging you either an
initial or contingent deferred sales charge.

Before you request an exchange, consider each fund's investment objective and
policies as described in the fund's prospectus.

Selling
Your Class Y shares will be sold at net asset value per share next calculated
after the fund or its authorized agent, such as a broker-dealer, receives your
request in good order. If a signature guarantee is required, you must submit
your request in writing.

The fund generally will send your sale proceeds by check, bank wire or
electronic funds transfer. Normally you will be paid within seven days. If you
recently

purchased the shares being sold, the fund may delay payment of the sale
proceeds until your check has cleared. This may take up to 10 calendar days
from the purchase date.

- --------------------------------------------------------------------------------
Other requirements
If you must use a written request to exchange or sell your Class Y shares and
your account is registered in the name of a corporation or other fiduciary you
must include the name of an authorized person and a certified copy of a
current corporate resolution, certificate of incumbency or similar legal
document showing that the named individual is authorized to act on behalf of
the record owner.
- --------------------------------------------------------------------------------

Buying, exchanging and selling shares

Buying shares

In writing, by mail
You can purchase Class Y shares by mailing a check to the transfer agent. Make
your check payable to the fund. Neither initial nor subsequent investments
should be made by third party check. Your check must be in U.S. dollars and
drawn on a U.S. bank. Include in your purchase request the fund's name, the
account number and the name or names in the account registration.

If you are registering an account in the name of a corporation or other
fiduciary, you must send your completed account set-up forms to the transfer
agent prior to making your initial purchase.

By wire
If you have an existing Class Y account, you may wire funds to purchase Class Y
shares. Note, however, that:
o State Street Bank must receive your wire no later than 11:00 a.m. Eastern
time on the business day after the fund receives your request to purchase
shares
o If State Street Bank does not receive your wire by 11:00 a.m. Eastern time on
the next business day, your transaction will be canceled at your expense
and risk
o Wire transfers normally take two or more hours to complete and a fee may be
charged by the sending bank
o Wire transfers may be restricted on holidays and at certain other times

Instruct your bank to wire funds to:
Receiving Bank: State Street Bank
and Trust Company
225 Franklin Street
Boston, MA 02101
ABA Routing No. 011000028

For further credit to: Shareholder Name
Existing Pioneer
Account No.
Short Term Income Fund

Through your investment firm
Consult your investment professional for more information.

Exchanging shares

In writing, by mail or by fax
You can exchange Class Y shares by mailing or faxing a letter of instruction to
the transfer agent. You can exchange fund shares directly through the fund only
if your account is registered in your name. However, you may not fax an
exchange request for more than $5 million. Include in your letter:
o The name and signature of all registered owners
o A signature guarantee for each registered owner if the amount of the exchange
is more than $5 million
o The name of the fund out of which you are exchanging and the name of the fund
into which you are exchanging
o The dollar amount or number of Class Y shares you are exchanging

By phone
After you establish your Class Y account, you can exchange fund shares by phone
if:
o You are using the exchange to establish a new account, provided the new
account has a registration identical to the original account
o The fund into which you are exchanging offers Class Y shares
o You are not exchanging more than $5 million worth of shares per account per
day
o You can provide the proper account identification information

Through your investment firm
Consult your investment professional for more information about exchanging your
shares.

Buying, exchanging and selling shares

Selling shares

In writing, by mail or by fax
You can sell some or all of your Class Y shares by writing directly to the fund
only if your account is registered in your name. Include in your request your
name, the fund's name, your fund account number, the dollar amount or number of
Class Y shares to be sold and any other applicable requirements as described
below.
o The transfer agent will send the sale proceeds to your address of record
unless you provide other instructions
o Your request must be signed by all registered owners
o The transfer agent will not process your request until it is received in good
order

By fax
o You may sell up to $5 million per account per day if the proceeds are
directed to your bank account of record
o You may sell up to $100,000 per account per day if the proceeds are not
directed to your bank account of record

By phone or wire
o You may sell up to $5 million per account per day if the proceeds are
directed to your bank account of record
o You may sell up to $100,000 per account per day if the proceeds are not
directed to your bank account of record

You may sell fund shares held in a retirement plan account by phone only if
your account is an IRA. You may not sell your shares by phone if you have
changed your address (for checks) or your bank information (for wires and
transfers) in the last 30 days.

Through your investment firm
Consult your investment professional for more information. The fund has
authorized the distributor to act as its agent in the repurchase of fund shares
from qualified investment firms. The fund reserves the right to terminate this
procedure at any time.

How to contact us

By phone
For information or to request a telephone transaction between 9:00 a.m. and
5:30 p.m. (Eastern time) by speaking with a shareholder services representative
call
1-800-665-8839

To use FactFone(SM) call
1-800-225-4321

By mail
Send your written instructions to:
Pioneer Investment Management
Shareholder Services, Inc.
P.O. Box 55150
Boston, Massachusetts 02205-5150

Pioneer website
www.pioneerinvestments.com

By fax
Fax your exchange and sale requests to:
1-888-294-4485

Buying, exchanging and selling shares

o You enter into a series of transactions that indicate a timing pattern or
strategy; or

o We reasonably believe that you have engaged in such practices in connection
with other mutual funds.

Buying, exchanging and selling shares

Account options

Distribution options
The fund offers three distribution options. Any fund shares you buy by
reinvesting distributions will be priced at the applicable net asset value per
share.

(1) Unless you indicate another option on your account application, any
dividends and capital gain distributions paid to you by the fund will
automatically be invested in additional fund shares.

(2) You may elect to have the amount of any dividends paid to you in cash and
any capital gain distributions reinvested in additional shares.

(3) You may elect to have the full amount of any dividends and/or capital gain
distributions paid to you in cash.

Options (2) or (3) are not available to retirement plan accounts or accounts
with a current value of less than $500.

Shareowner services

If your account is registered in the name of a broker-dealer or other third
party, you may not be able to use FactFone(SM) to obtain account information.

Tax information
Early each year, the fund will mail you information about the tax status of the
dividends and distributions paid to you by the fund.

Shareowner account policies

Signature guarantees and other requirements
You are required to obtain a signature guarantee when:
o Requesting certain types of exchanges or sales of fund shares
o Requesting certain types of changes for your existing account

Fiduciaries and corporations are required to submit additional documents to
sell fund shares.

Buying, exchanging and selling shares

the date of the notice to make additional investments to avoid having your
shares sold. This policy does not apply to certain qualified retirement plan
accounts.

Telephone and website access

You may have difficulty contacting the fund by telephone or accessing
pioneerinvestments.com during times of market volatility or disruption in
telephone or Internet service. On New York Stock Exchange holidays or on days
when the exchange closes early, Pioneer will adjust the hours for the telephone
center and for online transaction processing accordingly. If you are unable to
access pioneerinvestments.com or reach the fund by telephone, you should
communicate with the fund in writing.

Share certificates
The fund does not offer share certificates. Shares are electronically recorded.

The fund reserves the right to:
o stop offering Class Y shares
o suspend transactions in shares when trading on the New York Stock Exchange is
closed or restricted, or when the Securities and Exchange Commission
determines an emergency or other circumstances exist that make it
impracticable for the fund to sell or value its portfolio securities
o redeem in kind by delivering to you portfolio securities owned by the fund
rather than cash. Securities you receive this way may increase or decrease
in value while you hold them and you may incur brokerage and transaction
charges and tax liability when you convert the securities to cash
o charge transfer, shareholder servicing or similar agent fees, such as an
account maintenance fee for small balance accounts, directly to accounts
upon at least 30 days' notice. The fund may do this by deducting the fee
from your distribution of dividends and/or by redeeming shares to the
extent necessary to cover the fee

Dividends, capital gains and taxes

Dividends and capital gains

Taxes

Dividends, capital gains and taxes

Financial highlights

The financial highlights table helps you understand
the fund's financial performance since inception.

Certain information reflects financial results for a single fund share. The
total returns in the table represent the rate that you would have earned or
lost on an investment in Class Y shares of the fund (assuming reinvestment of
all dividends and distributions).

Financial highlights

Pioneer Short Term Income Fund

Class Y shares

Net asset value, beginning of period $ 9.76 $ 9.76 $ 9.85 $ 10.01 $ 10.00
-----------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.48 $ 0.45 $ 0.32 $ 0.30 $ 0.04
Net realized and unrealized gain (loss)
on investments and foreign
currency transactions (0.24) 0.02 (0.06) (0.12) 0.02
-----------------------------------------------------------------
Net increase from investment
operations $ 0.24 $ 0.47 $ 0.26 $ 0.18 $ 0.06
Distributions to shareowners:
Net investment income (0.49) (0.47) (0.35) (0.34) (0.05)
-----------------------------------------------------------------
Net increase (decrease) in net
asset value $ (0.25) $ -- $ (0.09) $ (0.16) $ 0.01
-----------------------------------------------------------------
Net asset value, end of period $ 9.51 $ 9.76 $ 9.76 $ 9.85 $ 10.01
=================================================================
Total return* 2.45% 4.96% 2.73% 1.86% 0.57%(a)
Ratio of net expenses to average
net assets+ 0.55% 0.53% 0.53% 0.58% 0.61%**
Ratio of net investment income to
average net assets+ 4.98% 4.68% 3.37% 2.53% 1.94%**
Portfolio turnover rate 34% 78% 81% 71% 24%(a)
Net assets, end of period (in thousands) $130,475 $189,724 $148,514 $17,672 $ 530
Ratios with no waiver of management
fees and assumption of expenses by
PIM and no reduction for fees paid
indirectly:
Net expenses 0.55% 0.53% 0.53% 0.99% 10.54%**
Net investment income (loss) 4.98% 4.68% 3.37% 2.12% (7.99)%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 0.55% 0.53% 0.53% 0.58% 0.61%**
Net investment income 4.98% 4.68% 3.37% 2.53% 1.94%**
- --------------------------------------------------------------------------------------------------------------

* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
(a) Not annualized.
+ Ratio with no reduction for fees paid indirectly.

Notes

Pioneer
Short Term Income Fund

Visit our website
www.pioneerinvestments.com

Shareowner reports

Statement of additional information

The statement of additional information provides more detailed information
about the fund. It is incorporated by reference into this prospectus.

(Investment Company Act file no. 811-21558)

[LOGO]PIONEER
Investments(R)

Pioneer Funds Distributor, Inc.
60 State Street 20196-02-0109
Boston, MA 02109 (C)2008 Pioneer Funds Distributor, Inc.
www.pioneerinvestments.com Member SIPC

PIONEER SHORT TERM INCOME FUND
60 State Street
Boston, Massachusetts 02109

STATEMENT OF ADDITIONAL INFORMATION

Class A, Class B, Class C and Class Y Shares

December 31, 2007

This statement of additional information is not a prospectus. It should be read
in conjunction with the fund's Class A, Class B and Class C shares prospectus
and its Class Y shares prospectus, each dated December 31, 2007, as supplemented
or revised from time to time. A copy of each prospectus can be obtained free of
charge by calling Shareholder Services at 1-800-225-6292 or by written request
to the fund at 60 State Street, Boston, Massachusetts 02109. You can also obtain
a copy of each prospectus from our website at: www.pioneerinvestments.com. The
fund's financial statements for the fiscal year ended August 31, 2007, including
the independent registered public accounting firm's report thereon, are
incorporated into this statement of additional information by reference.

TABLE OF CONTENTS

Page
----

1. Fund History.............................................................................................2
2. Investment Policies, Risks and Restrictions..............................................................2
3. Trustees and Officers...................................................................................29
4. Investment Adviser......................................................................................38
5. Principal Underwriter and Distribution Plans............................................................41
6. Shareholder Servicing/Transfer Agent....................................................................46
7. Custodian...............................................................................................46
8. Independent Registered Public Accounting Firm...........................................................46
9. Portfolio Management....................................................................................46
10. Portfolio Transactions..................................................................................50
11. Description of Shares...................................................................................52
12. Sales Charges...........................................................................................54
13. Redeeming Shares........................................................................................60
14. Telephone and Online Transactions.......................................................................61
15. Pricing of Shares.......................................................................................63
16. Tax Status..............................................................................................64
17. Financial Statements....................................................................................70
18. Annual Fee, Expense and Other Information...............................................................70
19. Appendix A - Description of Short-Term Debt, Corporate Bond and
Preferred Stock Ratings.................................................................................77
20. Appendix B - Proxy Voting Policies and Procedures.......................................................82

1. FUND HISTORY

The fund is a diversified open-end management investment company. The fund was
organized as a Delaware statutory trust on April 5, 2004 as Pioneer Short Term
Bond Fund, and changed its name to Pioneer Short Term Income Fund on July 1,
2004. Pioneer Investment Management, Inc. ("Pioneer") is the fund's investment
adviser.

2. INVESTMENT POLICIES, RISKS AND RESTRICTIONS

The prospectuses present the investment objective and the principal investment
strategies and risks of the fund. This section supplements the disclosure in the
fund's prospectuses and provides additional information on the fund's investment
policies or restrictions. Restrictions or policies stated as a maximum
percentage of the fund's assets are only applied immediately after a portfolio
investment to which the policy or restriction is applicable (other than the
limitations on borrowing and illiquid securities). Accordingly, any later
increase or decrease in a percentage resulting from a change in values, net
assets or other circumstances will not be considered in determining whether the
investment complies with the fund's restrictions and policies.

Debt Securities Rating Criteria

Investment grade debt securities are those rated "BBB" or higher by Standard &
Poor's Ratings Group ("Standard & Poor's") or the equivalent rating of other
nationally recognized statistical rating organizations. Debt securities rated
BBB are considered medium grade obligations with speculative characteristics,
and adverse economic conditions or changing circumstances may weaken the
issuer's ability to pay interest and repay principal.

Below investment grade debt securities are those rated "BB" and below by
Standard & Poor's or the equivalent rating of other nationally recognized
statistical rating organizations. See "Appendix A" for a description of rating
categories. The fund may invest in debt securities rated "D" or better, or
comparable unrated securities as determined by Pioneer.

Below investment grade debt securities or comparable unrated securities are
commonly referred to as "junk bonds" and are considered predominantly
speculative and may be questionable as to principal and interest payments.
Changes in economic conditions are more likely to lead to a weakened capacity to
make principal payments and interest payments. The amount of high yield
securities outstanding has proliferated as an increasing number of issuers have
used high yield securities for corporate financing. An economic downturn could
severely affect the ability of highly leveraged issuers to service their debt
obligations or to repay their obligations upon maturity. Factors having an
adverse impact on the market value of lower quality securities will have an
adverse effect on the fund's net asset value to the extent that it invests in
such securities. In addition, the fund may incur additional expenses to the
extent it is required to seek recovery upon a default in payment of principal or
interest on its portfolio holdings.

The secondary market for high yield securities may not be as liquid as the
secondary market for more highly rated securities, a factor which may have an
adverse effect on the fund's ability to dispose of a particular security when
necessary to meet its liquidity needs. Under adverse market or economic
conditions, the secondary market for high yield securities could contract
further, independent of any specific adverse changes in the condition of a
particular issuer. As a result, the fund could find it more difficult to sell
these securities or may be able to sell the securities only at prices lower than
if such securities were widely traded. Prices realized upon the sale of such

lower rated or unrated securities, under these circumstances, may be less than
the prices used in calculating the fund's net asset value.

Since investors generally perceive that there are greater risks associated with
lower quality debt securities of the type in which the fund may invest, the
yields and prices of such securities may tend to fluctuate more than those for
higher rated securities. In the lower quality segments of the debt securities
market, changes in perceptions of issuers' creditworthiness tend to occur more
frequently and in a more pronounced manner than do changes in higher quality
segments of the debt securities market, resulting in greater yield and price
volatility.

Lower rated and comparable unrated debt securities tend to offer higher yields
than higher rated securities with the same maturities because the historical
financial condition of the issuers of such securities may not have been as
strong as that of other issuers. However, lower rated securities generally
involve greater risks of loss of income and principal than higher rated
securities. Pioneer will attempt to reduce these risks through portfolio
diversification and by analysis of each issuer and its ability to make timely
payments of income and principal, as well as broad economic trends and corporate
developments.

For purposes of the fund's credit quality policies, if a security receives
different ratings from nationally recognized statistical rating organizations,
the fund will use the rating chosen by the portfolio manager as most
representative of the security's credit quality. The ratings of nationally
recognized statistical rating organizations represent their opinions as to the
quality of the securities that they undertake to rate and may not accurately
describe the risk of the security. If a rating organization downgrades the
quality rating assigned to one or more of the fund's portfolio securities,
Pioneer will consider what actions, if any, are appropriate in light of the
fund's investment objectives and policies including selling the downgraded
security or purchasing additional investment grade securities of the appropriate
credit quality as soon as it is prudent to do so.

At August 31, 2007, 4.20% of the fund's total assets were rated BBB (or were of
equivalent quality), 1.19% of the fund's total assets were rated BB (or were of
equivalent quality), 0.46% of the fund's total assets were rated B (or were of
equivalent quality), and 0% of the fund's total assets were rated CCC and lower
(or were of equivalent quality), 3.39% of the fund's long-term holdings were not
rated, and cash or cash equivalents represented 1.35% of the fund's long-term
holdings.

U.S. Government Securities

U.S. government securities in which the fund invests include debt obligations of
varying maturities issued by the U.S. Treasury or issued or guaranteed by an
agency, authority or instrumentality of the U.S. government, including the
Federal Housing Administration, Federal Financing Bank, Farmers Home
Administration, Export-Import Bank of the U.S., Small Business Administration,
Government National Mortgage Association ("GNMA"), General Services
Administration, Central Bank for Cooperatives, Federal Farm Credit Banks,
Federal Home Loan Banks ("FHLBs"), Federal Home Loan Mortgage Corporation
("FHLMC"), Federal National Mortgage Association ("FNMA"), Maritime
Administration, Tennessee Valley Authority, District of Columbia Armory Board,
Resolution Trust Corporation and various institutions that previously were or
currently are part of the Farm Credit System (which has been undergoing
reorganization since 1987). Some U.S. government securities, such as U.S.
Treasury bills, Treasury notes and Treasury bonds, which differ only in their
interest rates, maturities and times

of issuance, are supported by the full faith and credit of the United States.
Others are supported by: (i) the right of the issuer to borrow from the U.S.
Treasury, such as securities of the FHLBs; (ii) the discretionary authority of
the U.S. government to purchase the agency's obligations, such as securities of
the FNMA; or (iii) only the credit of the issuer. No assurance can be given that
the U.S. government will provide financial support in the future to U.S.
government agencies, authorities or instrumentalities that are not supported by
the full faith and credit of the United States. Securities guaranteed as to
principal and interest by the U.S. government, its agencies, authorities or
instrumentalities include: (i) securities for which the payment of principal and
interest is backed by an irrevocable letter of credit issued by the U.S.
government or any of its agencies, authorities or instrumentalities; and (ii)
participations in loans made to non-U.S. governments or other entities that are
so guaranteed. The secondary market for certain of these participations is
limited and, therefore, may be regarded as illiquid.

U.S. government securities may include zero coupon securities that may be
purchased when yields are attractive and/or to enhance portfolio liquidity. Zero
coupon U.S. government securities are debt obligations that are issued or
purchased at a significant discount from face value. The discount approximates
the total amount of interest the security will accrue and compound over the
period until maturity or the particular interest payment date at a rate of
interest reflecting the market rate of the security at the time of issuance.
Zero coupon U.S. government securities do not require the periodic payment of
interest. These investments benefit the issuer by mitigating its need for cash
to meet debt service, but generally require a higher rate of return to attract
investors who are willing to defer receipt of cash. These investments may
experience greater volatility in market value than U.S. government securities
that make regular payments of interest. The fund accrues income on these
investments for tax and accounting purposes, which is distributable to
shareholders and which, because no cash is received at the time of accrual, may
require the liquidation of other portfolio securities to satisfy the fund's
distribution obligations, in which case the fund will forgo the purchase of
additional income producing assets with these funds. Zero coupon U.S. government
securities include STRIPS and CUBES, which are issued by the U.S. Treasury as
component parts of U.S. Treasury bonds and represent scheduled interest and
principal payments on the bonds.

Municipal Obligations

The fund may purchase municipal obligations when Pioneer believes they offer
favorable rates of income or capital gain potential when compared to a taxable
investment. The term "municipal obligations" generally is understood to include
debt obligations issued by municipalities to obtain funds for various public
purposes, the income from which is, in the opinion of bond counsel to the
issuer, excluded from gross income for U.S. federal income tax purposes. In
addition, if the proceeds from private activity bonds are used for the
construction, repair or improvement of privately operated industrial or
commercial facilities, the interest paid on such bonds may be excluded from
gross income for U.S. federal income tax purposes, although current federal tax
laws place substantial limitations on the size of these issues. The fund's
distributions of any interest it earns on municipal obligations will be taxable
to shareholders as ordinary income.

The two principal classifications of municipal obligations are "general
obligation" and "revenue" bonds. General obligation bonds are secured by the
issuer's pledge of its faith, credit, and taxing power for the payment of
principal and interest. Revenue bonds are payable from the revenues derived from
a particular facility or class of facilities or, in some cases, from the
proceeds of a special excise or other specific revenue source, but not from the
general taxing power. Sizable investments in these obligations could involve an
increased risk to the fund should any of the related facilities experience
financial difficulties. Private activity bonds are in most cases revenue

bonds and do not generally carry the pledge of the credit of the issuing
municipality. There are, of course, variations in the security of municipal
obligations, both within a particular classification and between
classifications.

Interest Rate Swaps, Collars, Caps and Floors

In order to hedge the value of the fund's portfolio against interest rate
fluctuations or to enhance the fund's income, the fund may, but is not required
to, enter into various interest rate transactions such as interest rate swaps
and the purchase or sale of interest rate caps and floors. To the extent that
the fund enters into these transactions, the fund expects to do so primarily to
preserve a return or spread on a particular investment or portion of its
portfolio or to protect against any increase in the price of securities the fund
anticipates purchasing at a later date. The fund intends to use these
transactions primarily as a hedge and not as a speculative investment. However,
the fund also may invest in interest rate swaps to enhance income or to increase
the fund's yield, for example, during periods of steep interest rate yield
curves (i.e., wide differences between short-term and long-term interest rates).
The fund is not required to hedge its portfolio and may choose not to do so. The
fund cannot guarantee that any hedging strategies it uses will work.

In an interest rate swap, the fund exchanges with another party their respective
commitments to pay or receive interest (e.g., an exchange of fixed rate payments
for floating rate payments). For example, if the fund holds a debt instrument
with an interest rate that is reset only once each year, it may swap the right
to receive interest at this fixed rate for the right to receive interest at a
rate that is reset every week. This would enable the fund to offset a decline in
the value of the debt instrument due to rising interest rates but would also
limit its ability to benefit from falling interest rates. Conversely, if the
fund holds a debt instrument with an interest rate that is reset every week and
it would like to lock in what it believes to be a high interest rate for one
year, it may swap the right to receive interest at this variable weekly rate for
the right to receive interest at a rate that is fixed for one year. Such a swap
would protect the fund from a reduction in yield due to falling interest rates
and may permit the fund to enhance its income through the positive differential
between one week and one year interest rates, but would preclude it from taking
full advantage of rising interest rates.

The fund usually will enter into interest rate swaps on a net basis (i.e., the
two payment streams are netted out with the fund receiving or paying, as the
case may be, only the net amount of the two payments). The net amount of the
excess, if any, of the fund's obligations over its entitlements with respect to
each interest rate swap will be accrued on a daily basis, and an amount of cash
or liquid instruments having an aggregate net asset value at least equal to the
accrued excess will be maintained in a segregated account by the fund's
custodian. If the interest rate swap transaction is entered into on other than a
net basis, the full amount of the fund's obligations will be accrued on a daily
basis, and the full amount of the fund's obligations will be maintained in a
segregated account by the fund's custodian.

The fund also may engage in interest rate transactions in the form of purchasing
or selling interest rate caps or floors. The fund will not sell interest rate
caps or floors that it does not own. The purchase of an interest rate cap
entitles the purchaser, to the extent that a specified index exceeds a
predetermined interest rate, to receive payments of interest equal to the
difference of the index and the predetermined rate on a notional principal
amount (i.e., the reference amount with respect to which interest obligations
are determined although no actual exchange of principal occurs) from the party
selling such interest rate cap. The purchase of an interest rate floor entitles
the purchaser, to the extent that a specified index falls below a predetermined
interest rate, to receive

payments of interest at the difference of the index and the predetermined rate
on a notional principal amount from the party selling such interest rate floor.
The fund will not enter into caps or floors if, on a net basis, the aggregate
notional principal amount with respect to such agreements exceeds the net assets
of the fund.

Typically, the parties with which the fund will enter into interest rate
transactions will be broker-dealers and other financial institutions. The fund
will not enter into any interest rate swap, cap or floor transaction unless the
unsecured senior debt or the claims-paying ability of the other party thereto is
rated investment grade quality by at least one nationally recognized statistical
rating organization at the time of entering into such transaction or whose
creditworthiness is believed by the fund's adviser to be equivalent to such
rating. If there is a default by the other party to such a transaction, the fund
will have contractual remedies pursuant to the agreements related to the
transaction. The swap market has grown substantially in recent years with a
large number of banks and investment banking firms acting both as principals and
as agents utilizing standardized swap documentation. As a result, the swap
market has become relatively liquid in comparison with other similar instruments
traded in the interbank market. Caps and floors, however, are less liquid than
swaps. Certain federal income tax requirements may limit the fund's ability to
engage in interest rate swaps.

Credit Default Swap Agreements

The fund may enter into credit default swap agreements. The "buyer" in a credit
default contract is obligated to pay the "seller" a periodic stream of payments
over the term of the contract provided that no event of default on an underlying
reference obligation has occurred. If an event of default occurs, the seller
must pay the buyer the "par value" (full notional value) of the reference
obligation in exchange for the reference obligation. The fund may be either the
buyer or seller in the transaction. If the fund is a buyer and no event of
default occurs, the fund loses its investment and recovers nothing. However, if
an event of default occurs, the buyer receives full notional value for a
reference obligation that may have little or no value. As a seller, the fund
receives a fixed rate of income throughout the term of the contract, which
typically is between six months and three years, provided that there is no
default event. If an event of default occurs, the seller must pay the buyer the
full notional value of the reference obligation. Credit default swaps involve
greater risks than if the fund had invested in the reference obligation
directly. In addition to general market risks, credit default swaps are subject
to illiquidity risk, counterparty risk and credit risks. The fund will enter
into swap agreements only with counterparties who are rated investment grade
quality by at least one nationally recognized statistical rating organization at
the time of entering into such transaction or whose creditworthiness is believed
to be equivalent to such rating. A buyer also will lose its investment and
recover nothing should an event of default occur. If an event of default were to
occur, the value of the reference obligation received by the seller, coupled
with the periodic payments previously received, may be less than the full
notional value it pays to the buyer, resulting in a loss of value to the fund.
When the fund acts as a seller of a credit default swap agreement it is exposed
to the risks of a leveraged transaction, since if an event of default occurs the
seller must pay the buyer the full notional value of the reference obligation.

Credit-Linked Notes

The fund may invest in credit-linked notes ("CLNs"), which are derivative
instruments. A CLN is a synthetic obligation between two or more parties where
the payment of principal and/or interest is based on the performance of some
obligation (a reference obligation). In addition to credit risk

of the reference obligations and interest rate risk, the buyer/seller of the CLN
is subject to counterparty risk.

Mortgage-Backed Securities

The fund may invest in mortgage pass-through certificates and multiple-class
pass-through securities, such as real estate mortgage investment conduits
("REMIC") pass-through certificates, collateralized mortgage obligations
("CMOs") and stripped mortgage-backed securities ("SMBS"), and other types of
mortgage-backed securities that may be available in the future. A
mortgage-backed security is an obligation of the issuer backed by a mortgage or
pool of mortgages or a direct interest in an underlying pool of mortgages. Some
mortgage-backed securities, such as CMOs, make payments of both principal and
interest at a variety of intervals; others make semiannual interest payments at
a predetermined rate and repay principal at maturity (like a typical bond).
Mortgage-backed securities are based on different types of mortgages including
those on commercial real estate or residential properties. Mortgage-backed
securities often have stated maturities of up to thirty years when they are
issued, depending upon the length of the mortgages underlying the securities. In
practice, however, unscheduled or early payments of principal and interest on
the underlying mortgages may make the securities' effective maturity shorter
than this, and the prevailing interest rates may be higher or lower than the
current yield of the fund's portfolio at the time the fund receives the payments
for reinvestment. Mortgage-backed securities may have less potential for capital
appreciation than comparable fixed income securities, due to the likelihood of
increased prepayments of mortgages as interest rates decline. If the fund buys
mortgage-backed securities at a premium, mortgage foreclosures and prepayments
of principal by mortgagors (which may be made at any time without penalty) may
result in some loss of the fund's principal investment to the extent of the
premium paid.

The value of mortgage-backed securities may also change due to shifts in the
market's perception of issuers. In addition, regulatory or tax changes may
adversely affect the mortgage securities markets as a whole. Non-governmental
mortgage-backed securities may offer higher yields than those issued by
government entities, but also may be subject to greater price changes than
governmental issues.

Through its investments in mortgage-backed securities ("MBS"), including those
that are issued by private issuers, the fund may have some exposure to subprime
loans as well as to the mortgage and credit markets generally. Private issuers
include commercial banks, savings associations, mortgage companies, investment
banking firms, finance companies and special purpose finance entities (called
special purpose vehicles or "SPVs") and other entities that acquire and package
mortgage loans for resale as MBS.

Unlike MBS issued or guaranteed by the U. S. government or one of its sponsored
entities, MBS issued by private issuers do not have a government or
government-sponsored entity guarantee, but may have credit enhancement provided
by external entities such as banks or financial institutions or achieved through
the structuring of the transaction itself. Examples of such credit support
arising out of the structure of the transaction include the issue of senior and
subordinated securities (e.g., the issuance of securities by an SPV in multiple
classes or "tranches", with one or more classes being senior to other
subordinated classes as to the payment of principal and interest, with the
result that defaults on the underlying mortgage loans are borne first by the
holders of the subordinated class); creation of "reserve funds" (in which case
cash or investments, sometimes funded from a portion of the payments on the
underlying mortgage loans, are held in reserve against future losses); and
"overcollateralization" (in which case the scheduled payments on, or the
principal amount of, the underlying mortgage loans exceeds that required to make

payment of the securities and pay any servicing or other fees). However, there
can be no guarantee that credit enhancements, if any, will be sufficient to
prevent losses in the event of defaults on the underlying mortgage loans.

In addition, MBS that are issued by private issuers are not subject to the
underwriting requirements for the underlying mortgages that are applicable to
those MBS that have a government or government-sponsored entity guarantee. As a
result, the mortgage loans underlying private MBS may, and frequently do, have
less favorable collateral, credit risk or other underwriting characteristics
than government or government-sponsored MBS and have wider variances in a number
of terms including interest rate, term, size, purpose and borrower
characteristics. Privately issued pools more frequently include second
mortgages, high loan-to-value mortgages and manufactured housing loans. The
coupon rates and maturities of the underlying mortgage loans in a private-label
MBS pool may vary to a greater extent than those included in a government
guaranteed pool, and the pool may include subprime mortgage loans. Subprime
loans refer to loans made to borrowers with weakened credit histories or with a
lower capacity to make timely payments on their loans. For these reasons, the
loans underlying these securities have had in many cases higher default rates
than those loans that meet government underwriting requirements.

The risk of non-payment is greater for MBS that are backed by mortgage pools
that contain subprime loans, but a level of risk exists for all loans. Market
factors adversely affecting mortgage loan repayments may include a general
economic turndown, high unemployment, a general slowdown in the real estate
market, a drop in the market prices of real estate, or an increase in interest
rates resulting in higher mortgage payments by holders of adjustable rate
mortgages.

If the fund purchases subordinated MBS, the subordinated MBS may serve as a
credit support for the senior securities purchased by other investors. In
addition, the payments of principal and interest on these subordinated
securities generally will be made only after payments are made to the holders of
securities senior to the fund's securities. Therefore, if there are defaults on
the underlying mortgage loans, the fund will be less likely to receive payments
of principal and interest, and will be more likely to suffer a loss.

Privately issued MBS are not traded on an exchange and there may be a limited
market for the securities, especially when there is a perceived weakness in the
mortgage and real estate market sectors. Without an active trading market, MBS
held in the fund's portfolio may be particularly difficult to value because of
the complexities involved in assessing the value of the underlying mortgage
loans.

Guaranteed Mortgage Pass-Through Securities. Guaranteed mortgage pass-through
securities represent participation interests in pools of residential mortgage
loans and are issued by U.S. governmental or private lenders and guaranteed by
the U.S. government or one of its agencies or instrumentalities, including but
not limited to GNMA, FNMA and FHLMC. GNMA certificates are guaranteed by the
full faith and credit of the U.S. government for timely payment of principal and
interest on the certificates. FNMA certificates are guaranteed by FNMA, a
federally chartered and privately owned corporation, for full and timely payment
of principal and interest on the certificates. FHLMC certificates are guaranteed
by FHLMC, a corporate instrumentality of the U.S. government, for timely payment
of interest and the ultimate collection of all principal of the related mortgage
loans.

Commercial banks, savings and loan institutions, private mortgage insurance
companies, mortgage bankers and other secondary market issuers also create
pass-through pools of conventional residential mortgage loans. Such issuers may,
in addition, be the originators and/or servicers of the underlying mortgage
loans as well as the guarantors of the mortgage-related securities. Because
there are no direct or indirect government or agency guarantees of payments in
pools created by such non-governmental issuers, they generally offer a higher
rate of interest than government and government-related pools. Timely payment of
interest and principal of these pools may be supported by insurance or
guarantees, including individual loan, title, pool and hazard insurance and
letters of credit. The insurance and guarantees are issued by governmental
entities, private insurers and the mortgage poolers. There can be no assurance
that the private insurers or guarantors can meet their obligations under the
insurance policies or guarantee arrangements.

Mortgage-related securities without insurance or guarantees may be purchased if
Pioneer determines that the securities meet the fund's quality standards.
Mortgage-related securities issued by certain private organizations may not be
readily marketable.

Multiple-Class Pass-Through Securities and Collateralized Mortgage Obligations
("CMOs"). CMOs and REMIC pass-through or participation certificates may be
issued by, among others, U.S. government agencies and instrumentalities as well
as private issuers. REMICs are CMO vehicles that qualify for special tax
treatment under the Internal Revenue Code of 1986, as amended (the "Code") and
invest in mortgages principally secured by interests in real property and other
investments permitted by the Code. CMOs and REMIC certificates are issued in
multiple classes and the principal of and interest on the mortgage assets may be
allocated among the several classes of CMOs or REMIC certificates in various
ways. Each class of CMO or REMIC certificate, often referred to as a "tranche,"
is issued at a specific adjustable or fixed interest rate and must be fully
retired no later than its final distribution date. Generally, interest is paid
or accrues on all classes of CMOs or REMIC certificates on a monthly basis.

Typically, CMOs are collateralized by GNMA, FNMA or FHLMC certificates but also
may be collateralized by other mortgage assets such as whole loans or private
mortgage pass-through securities. Debt service on CMOs is provided from payments
of principal and interest on collateral of mortgaged assets and any reinvestment
income thereon.

Stripped Mortgage-Backed Securities ("SMBS"). SMBS are multiple-class
mortgage-backed securities that are created when a U.S. government agency or a
financial institution separates the interest and principal components of a
mortgage-backed security and sells them as individual securities. The fund may
invest in SMBS that are usually structured with two classes that receive
different proportions of interest and principal distributions on a pool of
mortgage assets. A typical SMBS will have one class receiving some of the
interest and most of the principal, while the other class will receive most of
the interest and the remaining principal. The holder of the "principal-only"
security ("PO") receives the principal payments made by the underlying
mortgage-backed security, while the holder of the "interest-only" security
("IO") receives interest payments from the same underlying security. The prices
of stripped mortgage-backed securities may be particularly affected by changes
in interest rates. As interest rates fall, prepayment rates tend to increase,
which tends to reduce prices of IOs and increase prices of POs. Rising interest
rates can have the opposite effect. Although the market for these securities is
increasingly liquid, Pioneer may determine that certain stripped mortgage-backed
securities issued by the U.S. government, its agencies or instrumentalities are
not readily marketable. If so, these securities, together with privately-issued
stripped mortgage-backed securities, will be considered illiquid for purposes of
the fund's limitation on investments in illiquid securities. The yields and
market risk

of interest-only and principal-only SMBS, respectively, may be more volatile
than those of other fixed income securities.

The fund also may invest in planned amortization class ("PAC") and target
amortization class ("TAC") CMO bonds which involve less exposure to prepayment,
extension and interest rate risks than other mortgage-backed securities,
provided that prepayment rates remain within expected prepayment ranges or
"collars." To the extent that the prepayment rates remain within these
prepayment ranges, the residual or support tranches of PAC and TAC CMOs assume
the extra prepayment, extension and interest rate risks associated with the
underlying mortgage assets.

Risk Factors Associated with Mortgage-Backed Securities. Investing in
mortgage-backed securities involves certain risks, including the failure of a
counterparty to meet its commitments, adverse interest rate changes and the
effects of prepayments on mortgage cash flows. In addition, investing in the
lowest tranche of CMOs and REMIC certificates involves risks similar to those
associated with investing in equity securities. However, due to adverse tax
consequences under current tax laws, the fund does not intend to acquire
"residual" interests in REMICs. Further, the yield characteristics of
mortgage-backed securities differ from those of traditional fixed income
securities. The major differences typically include more frequent interest and
principal payments (usually monthly), the adjustability of interest rates of the
underlying instrument, and the possibility that prepayments of principal may be
made substantially earlier than their final distribution dates.

Prepayment rates are influenced by changes in current interest rates and a
variety of economic, geographic, social and other factors and cannot be
predicted with certainty. Both adjustable rate mortgage loans and fixed rate
mortgage loans may be subject to a greater rate of principal prepayments in a
declining interest rate environment and to a lesser rate of principal
prepayments in an increasing interest rate environment. Under certain interest
rate and prepayment rate scenarios, the fund may fail to recoup fully its
investment in mortgage-backed securities notwithstanding any direct or indirect
governmental, agency or other guarantee. When the fund reinvests amounts
representing payments and unscheduled prepayments of principal, it may obtain a
rate of interest that is lower than the rate on existing adjustable rate
mortgage pass-through securities. Thus, mortgage-backed securities, and
adjustable rate mortgage pass-through securities in particular, may be less
effective than other types of U.S. government securities as a means of "locking
in" interest rates.

Asset-Backed Securities

The fund may invest in asset-backed securities, which are securities that
represent a participation in, or are secured by and payable from, a stream of
payments generated by particular assets, most often a pool or pools of similar
assets (e.g., trade receivables). The credit quality of these securities depends
primarily upon the quality of the underlying assets and the level of credit
support and/or enhancement provided.

The underlying assets (e.g., loans) are subject to prepayments which shorten the
securities' weighted average maturity and may lower their return. If the credit
support or enhancement is exhausted, losses or delays in payment may result if
the required payments of principal and interest are not made. The value of these
securities also may change because of changes in the market's perception of the
creditworthiness of the servicing agent for the pool, the originator of the
pool, or the financial institution or trust providing the credit support or
enhancement. There may be no perfected security interest in the collateral that
relates to the financial assets that

support asset-backed securities. Asset backed securities have many of the same
characteristics and risks as the mortgage-backed securities described above.

The fund may purchase commercial paper, including asset-backed commercial paper
("ABCP") that is issued by structured investment vehicles or other conduits.
These conduits may be sponsored by mortgage companies, investment banking firms,
finance companies, hedge funds, private equity firms and special purpose finance
entities. ABCP typically refers to a debt security with an original term to
maturity of up to 270 days, the payment of which is supported by cash flows from
underlying assets, or one or more liquidity or credit support providers, or
both. Assets backing ABCP include credit card, car loan and other consumer
receivables and home or commercial mortgages, including subprime mortgages. The
repayment of ABCP issued by a conduit depends primarily on the cash collections
received from the conduit's underlying asset portfolio and the conduit's ability
to issue new ABCP. Therefore, there could be losses to a fund investing in ABCP
in the event of credit or market value deterioration in the conduit's underlying
portfolio, mismatches in the timing of the cash flows of the underlying asset
interests and the repayment obligations of maturing ABCP, or the conduit's
inability to issue new ABCP. To protect investors from these risks, ABCP
programs may be structured with various protections, such as credit enhancement,
liquidity support, and commercial paper stop-issuance and wind-down triggers.
However there can be no guarantee that these protections will be sufficient to
prevent losses to investors in ABCP.

Some ABCP programs provide for an extension of the maturity date of the ABCP if,
on the related maturity date, the conduit is unable to access sufficient
liquidity through the issue of additional ABCP. This may delay the sale of the
underlying collateral and a fund may incur a loss if the value of the collateral
deteriorates during the extension period. Alternatively, if collateral for ABCP
commercial paper deteriorates in value, the collateral may be required to be
sold at inopportune times or at prices insufficient to repay the principal and
interest on the ABCP. ABCP programs may provide for the issuance of subordinated
notes as an additional form of credit enhancement. The subordinated notes are
typically of a lower credit quality and have a higher risk of default. A fund
purchasing these subordinated notes will therefore have a higher likelihood of
loss than investors in the senior notes.

Floating Rate Loans

A floating rate loan is typically originated, negotiated and structured by a
U.S. or foreign commercial bank, insurance company, finance company or other
financial institution for a group of investors. The financial institution
typically acts as an agent for the investors, administering and enforcing the
loan on their behalf. In addition, an institution, typically but not always the
agent, holds any collateral on behalf of the investors.

The interest rates are adjusted based on a base rate plus a premium or spread
over the base rate. The base rate usually is the London Interbank Offered Rate
("LIBOR"), the Federal Reserve federal funds rate, the prime rate or other base
lending rates used by commercial lenders. LIBOR usually is an average of the
interest rates quoted by several designated banks as the rates at which they pay
interest to major depositors in the London interbank market on U.S.
dollar-denominated deposits.

Floating rate loans include loans to corporations and institutionally traded
floating rate debt obligations issued by an asset-backed pool, and interests
therein. In addition to term loans, loans may include revolving credit
facilities, prefunded Letter of Credit term loans, delayed draw term loans and
receivables purchase facilities. The

fund may invest in loans in different ways. The fund may: (i) make a direct
investment in a loan by participating as one of the lenders; (ii) purchase an
assignment of a loan; or (iii) purchase a participation interest in a loan.

Event-linked bonds

The fund may invest in "event-linked" bonds, which sometimes are referred to as
"insurance-linked" or "catastrophe" bonds. Event-linked bonds are debt
obligations for which the return of principal and the payment of interest are
contingent on the non-occurrence of a pre-defined "trigger" event, such as a
hurricane or an earthquake of a specific magnitude. For some event-linked bonds,
the trigger event's magnitude may be based on losses to a company or industry,
index-portfolio losses, industry indexes or readings of scientific instruments
rather than specified actual losses. If a trigger event, as defined within the
terms of an event-linked bond, involves losses or other metrics exceeding a
specific magnitude in the geographic region and time period specified therein,
the fund may lose a portion or all of its accrued interest and/or principal
invested in such event-linked bond. The fund is entitled to receive principal
and interest payments so long as no trigger event occurs of the description and
magnitude specified by the instrument.

Event-linked bonds may be issued by government agencies, insurance companies,
reinsurers, special purpose corporations or other on-shore or off-shore
entities. In addition to the specified trigger events, event-linked bonds may
also expose the fund to other risks, including but not limited to issuer
(credit) default, adverse regulatory or jurisdictional interpretations and
adverse tax consequences. Event-linked bonds are subject to the risk that the
model used to calculate the probability of a trigger event was not accurate and
underestimated the likelihood of a trigger event. This may result in more
frequent and greater than expected loss of principal and/or interest, which
would adversely impact the fund's total returns. Further, to the extent there
are events that involve losses or other metrics, as applicable, that are at, or
near, the threshold for a trigger event, there may be some delay in the return
of principal and/or interest until it is determined whether a trigger event has
occurred. Finally, to the extent there is a dispute concerning the definition of
the trigger event relative to the specific manifestation of a catastrophe, there
may be losses or delays in the payment of principal and/or interest on the
event-linked bond. As a relatively new type of financial instrument, there is
limited trading history for these securities, and there can be no assurance that
a liquid market in these instruments will develop. Lack of a liquid market may
impose the risk of higher transactions costs and the possibility that the fund
may be forced to liquidate positions when it would not be advantageous to do so.

Event-linked bonds are typically rated by at least one nationally recognized
rating agency, but also may be unrated. Although each rating agency utilizes its
own general guidelines and methodology to evaluate the risks of an event-linked
bond, the average rating in the current market for event-linked bonds is "BB" by
Standard &Poor's Rating Group (or the equivalent rating for another rating
agency). However, there are event-linked bonds rated higher or lower than "BB."

The fund's investments in event-linked bonds generally will be rated B, BB or
BBB at the time of purchase, although the fund may invest in event-linked bonds
rated higher or lower than these ratings, as well as event-linked bonds that are
unrated. The rating for an event-linked bond primarily reflects the rating
agency's calculated probability that a pre-defined trigger event will occur.
This rating also assesses the bond's credit risk and model used to calculate the
probability of the trigger event.

Event-linked bonds typically are restricted to qualified institutional buyers
and, therefore, are not subject to registration with the Securities and Exchange
Commission or any state securities

commission and are not listed on any national securities exchange. The amount of
public information available with respect to event-linked bonds is generally
less extensive than that available for issuers of registered or exchange listed
securities. Event-linked bonds may be subject to the risks of adverse regulatory
or jurisdictional determinations. There can be no assurance that future
regulatory determinations will not adversely affect the overall market for
event-linked bonds.

Event-linked swaps

The fund may obtain event-linked exposure by investing in event-linked swaps,
which typically are contingent, or formulaically related to defined trigger
events, or by pursuing similar event-linked derivative strategies. Trigger
events include hurricanes, earthquakes and weather-related phenomena. If a
trigger event occurs, the fund may lose the swap's notional amount. As
derivative instruments, event-linked swaps are subject to risks in addition to
the risks of investing in event-linked bonds, including counterparty risk and
leverage risk.

When-Issued and Delayed Delivery Securities

The fund may purchase securities, including U.S. government securities, on a
when-issued basis or may purchase or sell securities for delayed delivery. In
such transactions, delivery of the securities occurs beyond the normal
settlement period, but no payment or delivery is made by the fund prior to the
actual delivery or payment by the other party to the transaction. The fund will
not earn income on these securities until delivered. The purchase of securities
on a when-issued or delayed delivery basis involves the risk that the value of
the securities purchased will decline prior to the settlement date. The sale of
securities for delayed delivery involves the risk that the prices available in
the market on the delivery date may be greater than those obtained in the sale
transaction. The fund's obligations with respect to when-issued and delayed
delivery transactions will be fully collateralized by segregating liquid assets
with a value equal to the fund's obligations. See "Asset Segregation."

Warrants and Stock Purchase Rights

The fund may invest in warrants, which are securities permitting, but not
obligating, their holder to subscribe for other securities. Warrants do not
carry with them the right to dividends or voting rights with respect to the
securities that they entitle their holders to purchase, and they do not
represent any rights in the assets of the issuer.

The fund may also invest in stock purchase rights. Stock purchase rights are
instruments, frequently distributed to an issuer's shareholders as a dividend,
that entitle the holder to purchase a specific number of shares of common stock
on a specific date or during a specific period of time. The exercise price on
the rights is normally at a discount from market value of the common stock at
the time of distribution. The rights do not carry with them the right to
dividends or to vote and may or may not be transferable. Stock purchase rights
are frequently used outside of the United States as a means of raising
additional capital from an issuer's current shareholders.

As a result, an investment in warrants or stock purchase rights may be
considered more speculative than certain other types of investments. In
addition, the value of a warrant or a stock purchase right does not necessarily
change with the value of the underlying securities, and warrants and stock
purchase rights expire worthless if they are not exercised on or prior to their
expiration date.

Preferred Shares

The fund may invest in preferred shares. Preferred shares are equity securities,
but they have many characteristics of fixed income securities, such as a fixed
dividend payment rate and/or a liquidity preference over the issuer's common
shares. However, because preferred shares are equity securities, they may be
more susceptible to risks traditionally associated with equity investments than
the fund's fixed income securities.

Illiquid Securities

The fund may invest up to 15% of its net assets in illiquid and other securities
that are not readily marketable. If due to subsequent fluctuations in value or
any other reasons, the value of the fund's illiquid securities exceeds this
percentage limitation, the fund will consider what actions, if any, are
necessary to maintain adequate liquidity. Repurchase agreements maturing in more
than seven days will be included for purposes of the foregoing limit. Securities
subject to restrictions on resale under the Securities Act of 1933, as amended
(the "1933 Act"), are considered illiquid unless they are eligible for resale
pursuant to Rule 144A or another exemption from the registration requirements of
the 1933 Act and are determined to be liquid by Pioneer. Pioneer determines the
liquidity of Rule 144A and other restricted securities according to procedures
adopted by the Board of Trustees. Under the direction of the Board of Trustees,
Pioneer monitors the application of these guidelines and procedures. The
inability of the fund to dispose of illiquid investments readily or at
reasonable prices could impair the fund's ability to raise cash for redemptions
or other purposes. If the fund sold restricted securities other than pursuant to
an exception from registration under the 1933 Act such as Rule 144A, it may be
deemed to be acting as an underwriter and subject to liability under the 1933
Act.

Real Estate Investment Trusts ("REITs")

REITs are companies that invest primarily in income producing real estate or
real estate related loans or interests. REITs are generally classified as equity
REITs, mortgage REITs or a combination of equity and mortgage REITs. Equity
REITs invest the majority of their assets directly in real property and derive
income primarily from the collection of rents. Equity REITs can also realize
capital gains by selling properties that have appreciated in value. Mortgage
REITs invest the majority of their assets in real estate mortgages and derive
income from the collection of interest payments. REITs are not taxed on income
distributed to shareholders provided they comply with the applicable
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). The
fund will indirectly bear its proportionate share of any management and other
expenses paid by REITs in which it invests in addition to the expenses paid by
the fund. Debt securities issued by REITs are, for the most part, general and
unsecured obligations and are subject to risks associated with REITs.

Investing in REITs involves certain unique risks in addition to those risks
associated with investing in the real estate industry in general. An equity REIT
may be affected by changes in the value of the underlying properties owned by
the REIT. A mortgage REIT may be affected by changes in interest rates and the
ability of the issuers of its portfolio mortgages to repay their obligations.
REITs are dependent upon the skills of their managers and are not diversified.
REITs are generally dependent upon maintaining cash flows to repay borrowings
and to make distributions to shareholders and are subject to the risk of default
by lessees or borrowers. REITs whose underlying assets are concentrated in
properties used by a particular industry, such as health care, are also subject
to risks associated with such industry.

REITs (especially mortgage REITs) are also subject to interest rate risks. When
interest rates decline, the value of a REIT's investment in fixed rate
obligations can be expected to rise. Conversely, when interest rates rise, the
value of a REIT's investment in fixed rate obligations can be expected to
decline. If the REIT invests in adjustable rate mortgage loans the interest
rates on which are reset periodically, yields on a REIT's investments in such
loans will gradually align themselves to reflect changes in market interest
rates. This causes the value of such investments to fluctuate less dramatically
in response to interest rate fluctuations than would investments in fixed rate
obligations.

REITs may have limited financial resources, may trade less frequently and in a
limited volume and may be subject to more abrupt or erratic price movements than
larger company securities. Historically REITs have been more volatile in price
than the larger capitalization stocks included in Standard & Poor's 500 Stock
Index (the "S&P 500").

Other Investment Companies

The fund may invest in the securities of other investment companies to the
extent that such investments are consistent with the fund's investment objective
and policies and permissible under the Investment Company Act of 1940, as
amended (the "1940 Act"). Under one provision of the 1940 Act, a fund may not
acquire the securities of another investment company if such purchase would
result in (i) 3% or more of the total outstanding voting securities of any one
investment company being held by the fund, (ii) 5% or more of the fund's total
assets being invested in any one investment company, or (iii) 10% or more of the
fund's total assets being invested in securities of other investment companies.
However, there are several provisions of the 1940 Act and rules thereunder that
allow more expansive investment in investment companies. In addition, these
limitations do not apply to the purchase of shares of any investment company in
connection with a merger, consolidation, reorganization or acquisition of
substantially all the assets of another investment company. The fund may also
invest without limit in money market funds.

The fund, as a holder of the securities of other investment companies, will bear
its pro rata portion of the other investment companies' expenses, including
advisory fees. These expenses are in addition to the direct expenses of the
fund's own operations.

Exchange Traded Funds

Subject to the limitations on investment in other investment companies, the fund
may invest in exchange traded funds (ETFs). ETFs, such as SPDRs, iShares and
various country index funds, are funds whose shares are traded on a national
exchange or the National Association of Securities Dealers' Automatic Quotation
System (NASDAQ). ETFs may be based on underlying equity or fixed income
securities. SPDRs, for example, seek to provide investment results that
generally correspond to the performance of the component common stocks of the
S&P 500. ETFs do not sell individual shares directly to investors and only issue
their shares in large blocks known as "creation units." The investor purchasing
a creation unit then sells the individual shares on a secondary market.
Therefore, the liquidity of ETFs depends on the adequacy of the secondary
market. There can be no assurance that an ETF's investment objective will be
achieved. ETFs based on an index may not replicate and maintain exactly the
composition and relative weightings of securities in the index. ETFs are subject
to the risks of investing in the underlying securities. The fund, as a holder of
the securities of the ETF, will bear its pro rata portion of the ETF's expenses,
including advisory fees. These expenses are in addition to the direct expenses
of the fund's own operations.

Repurchase Agreements

The fund may enter into repurchase agreements with broker-dealers, member banks
of the Federal Reserve System and other financial institutions. Repurchase
agreements are arrangements under which the fund purchases securities and the
seller agrees to repurchase the securities within a specific time and at a
specific price. The repurchase price is generally higher than the fund's
purchase price, with the difference being income to the fund. Under the
direction of the Board of Trustees, Pioneer reviews and monitors the
creditworthiness of any institution which enters into a repurchase agreement
with the fund. The counterparty's obligations under the repurchase agreement are
collateralized with U.S. Treasury and/or agency obligations with a market value
of not less than 100% of the obligations, valued daily. Collateral is held by
the fund's custodian in a segregated, safekeeping account for the benefit of the
fund. Repurchase agreements afford the fund an opportunity to earn income on
temporarily available cash at low risk. In the event of commencement of
bankruptcy or insolvency proceedings with respect to the seller of the security
before repurchase of the security under a repurchase agreement, the fund may
encounter delay and incur costs before being able to sell the security. Such a
delay may involve loss of interest or a decline in price of the security. If the
court characterizes the transaction as a loan and the fund has not perfected a
security interest in the security, the fund may be required to return the
security to the seller's estate and be treated as an unsecured creditor of the
seller. As an unsecured creditor, the fund would be at risk of losing some or
all of the principal and interest involved in the transaction.

Debt Obligations of Non-U.S. Governments

The fund may invest in debt obligations of non-U.S. governments. An investment
in debt obligations of non-U.S. governments and their political subdivisions
(sovereign debt) involves special risks that are not present in corporate debt
obligations. The non-U.S. issuer of the sovereign debt or the non-U.S.
governmental authorities that control the repayment of the debt may be unable or
unwilling to repay principal or interest when due, and the fund may have limited
recourse in the event of a default. During periods of economic uncertainty, the
market prices of sovereign debt may be more volatile than prices of debt
obligations of U.S. issuers. In the past, certain non-U.S. countries have
encountered difficulties in servicing their debt obligations, withheld payments
of principal and interest and declared moratoria on the payment of principal and
interest on their sovereign debt.

A sovereign debtor's willingness or ability to repay principal and pay interest
in a timely manner may be affected by, among other factors, its cash flow
situation, the extent of its foreign currency reserves, the availability of
sufficient foreign exchange, the relative size of the debt service burden, the
sovereign debtor's policy toward its principal international lenders and local
political constraints. Sovereign debtors may also be dependent on expected
disbursements from non-U.S. governments, multinational agencies and other
entities to reduce principal and interest arrearages on their debt. The failure
of a sovereign debtor to implement economic reforms, achieve specified levels of
economic performance or repay principal or interest when due may result in the
cancellation of third-party commitments to lend funds to the sovereign debtor,
which may further impair such debtor's ability or willingness to service its
debts.

Eurodollar Instruments and Samurai and Yankee Bonds The fund may invest in
Eurodollar instruments and Samurai and Yankee bonds. Eurodollar instruments are
bonds of corporate and government issuers that pay interest and principal in
U.S. dollars but are issued in markets outside the United States, primarily in
Europe. Samurai bonds are yen-denominated bonds sold in Japan

by non-Japanese issuers. Yankee bonds are U.S. dollar denominated bonds
typically issued in the U.S. by non-U.S. governments and their agencies and
non-U.S. banks and corporations. The fund may also invest in Eurodollar
Certificates of Deposit ("ECDs"), Eurodollar Time Deposits ("ETDs") and Yankee
Certificates of Deposit ("Yankee CDs"). ECDs are U.S. dollar-denominated
certificates of deposit issued by non-U.S. branches of domestic banks; ETDs are
U.S. dollar-denominated deposits in a non-U.S. branch of a U.S. bank or in a
non-U.S. bank; and Yankee CDs are U.S. dollar-denominated certificates of
deposit issued by a U.S. branch of a non-U.S. bank and held in the U.S. These
investments involve risks that are different from investments in securities
issued by U.S. issuers, including potential unfavorable political and economic
developments, non-U.S. withholding or other taxes, seizure of non-U.S. deposits,
currency controls, interest limitations or other governmental restrictions which
might affect payment of principal or interest.

Risks of Non-U.S. Investments

Investing in securities of non-U.S. issuers involves considerations and risks
not typically associated with investing in the securities of issuers in the U.S.
These risks are heightened with respect to investments in countries with
emerging markets and economies. The risks of investing in securities of non-U.S.
issuers generally, or in issuers with significant exposure to non-U.S. markets
may be related, among other things, to (i) differences in size, liquidity and
volatility of, and the degree and manner of regulation of, the securities
markets of certain non-U.S. markets compared to the securities markets in the
U.S.; (ii) economic, political and social factors; and (iii) foreign exchange
matters, such as restrictions on the repatriation of capital, fluctuations in
exchange rates between the U.S. dollar and the currencies in which the fund's
portfolio securities are quoted or denominated, exchange control regulations and
costs associated with currency exchange. The political and economic structures
in certain countries, particularly emerging markets, may undergo significant
evolution and rapid development, and such countries may lack the social,
political and economic stability characteristic of more developed countries.

Non-U.S. Securities Markets and Regulations. There may be less publicly
available information about non-U.S. markets and issuers than is available with
respect to U.S. securities and issuers. Non-U.S. companies generally are not
subject to accounting, auditing and financial reporting standards, practices and
requirements comparable to those applicable to U.S. companies. The trading
markets for most non-U.S. securities are generally less liquid and subject to
greater price volatility than the markets for comparable securities in the U.S.
The markets for securities in certain emerging markets are in the earliest
stages of their development. Even the markets for relatively widely traded
securities in certain non-U.S. markets, including emerging market countries, may
not be able to absorb, without price disruptions, a significant increase in
trading volume or trades of a size customarily undertaken by institutional
investors in the U.S. Additionally, market making and arbitrage activities are
generally less extensive in such markets, which may contribute to increased
volatility and reduced liquidity. The less liquid a market, the more difficult
it may be for the fund to accurately price its portfolio securities or to
dispose of such securities at the times determined by Pioneer to be appropriate.
The risks associated with reduced liquidity may be particularly acute in
situations in which the fund's operations require cash, such as in order to meet
redemptions and to pay its expenses.

Economic, Political and Social Factors. Certain countries, including emerging
markets, may be subject to a greater degree of economic, political and social
instability than in the U.S. and Western European countries. Such instability
may result from, among other things: (i) authoritarian governments or military
involvement in political and economic decision making; (ii) popular unrest
associated with demands for improved economic, political and social

conditions; (iii) internal insurgencies; (iv) hostile relations with neighboring
countries; and (v) ethnic, religious and racial conflict. Such economic,
political and social instability could significantly disrupt the financial
markets in such countries and the ability of the issuers in such countries to
repay their obligations. Investing in emerging market countries also involves
the risk of expropriation, nationalization, confiscation of assets and property
or the imposition of restrictions on foreign investments and on repatriation of
capital invested. In the event of such expropriation, nationalization or other
confiscation in any emerging country, the fund could lose its entire investment
in that country.

Certain emerging market countries restrict or control foreign investment in
their securities markets to varying degrees. These restrictions may limit the
fund's investment in those markets and may increase the expenses of the fund. In
addition, the repatriation of both investment income and capital from certain
markets in the region is subject to restrictions such as the need for certain
governmental consents. Even where there is no outright restriction on
repatriation of capital, the mechanics of repatriation may affect certain
aspects of the fund's operation.

Economies in individual countries may differ favorably or unfavorably from the
U.S. economy in such respects as growth of gross domestic product, rates of
inflation, currency valuation, capital reinvestment, resource self-sufficiency
and balance of payments positions. Many countries have experienced substantial,
and in some cases extremely high, rates of inflation for many years. Inflation
and rapid fluctuations in inflation rates have had, and may continue to have,
very negative effects on the economies and securities markets of certain
emerging countries.

Unanticipated political or social developments may affect the values of the
fund's investments and the availability to the fund of additional investments in
such countries. In the past, the economies, securities and currency markets of
many emerging markets have experienced significant disruption and declines.
There can be no assurance that these economic and market disruptions might not
occur again.

Economies in emerging market countries generally are dependent heavily upon
international trade and, accordingly, have been and may continue to be affected
adversely by trade barriers, exchange controls, managed adjustments in relative
currency values and other protectionist measures imposed or negotiated by the
countries with which they trade. These economies also have been, and may
continue to be, affected adversely by economic conditions in the countries with
which they trade.

Currency Risks. The value of the securities quoted or denominated in foreign
currencies may be adversely affected by fluctuations in the relative currency
exchange rates and by exchange control regulations. The fund's investment
performance may be negatively affected by a devaluation of a currency in which
the fund's investments are quoted or denominated. Further, the fund's investment
performance may be significantly affected, either positively or negatively, by
currency exchange rates because the U.S. dollar value of securities quoted or
denominated in another currency will increase or decrease in response to changes
in the value of such currency in relation to the U.S. dollar.

Custodian Services and Related Investment Costs. Custodial services and other
costs relating to investment in international securities markets generally are
more expensive than in the U.S. Such markets have settlement and clearance
procedures that differ from those in the U.S. In certain markets there have been
times when settlements have been unable to keep pace with the volume of
securities transactions, making it difficult to conduct such transactions. The
inability of the fund to make intended securities purchases due to settlement
problems could cause the fund to

miss attractive investment opportunities. Inability to dispose of a portfolio
security caused by settlement problems could result either in losses to the fund
due to a subsequent decline in value of the portfolio security or could result
in possible liability to the fund. In addition, security settlement and
clearance procedures in some emerging countries may not fully protect the fund
against loss or theft of its assets.

Withholding and Other Taxes. The fund will be subject to taxes, including
withholding taxes, on income (possibly including, in some cases, capital gains)
that are or may be imposed by certain countries with respect to the fund's
investments in such countries. These taxes will reduce the return achieved by
the fund. Treaties between the U.S. and such countries may not be available to
reduce the otherwise applicable tax rates.

Options on Securities and Securities Indices

For hedging purposes or to seek to increase total return, the fund may purchase
put and call options on any security in which it may invest or options on any
securities index based on securities in which it may invest. The fund would also
be able to enter into closing sale transactions in order to realize gains or
minimize losses on options it has purchased.

Writing Call and Put Options on Securities. A call option written by the fund
obligates the fund to sell specified securities to the holder of the option at a
specified price if the option is exercised at any time before the expiration
date. All call options written by the fund are covered, which means that the
fund will own the securities subject to the options as long as the options are
outstanding, or the fund will use the other methods described below. The fund's
purpose in writing covered call options is to realize greater income than would
be realized on portfolio securities transactions alone. However, the fund may
forgo the opportunity to profit from an increase in the market price of the
underlying security.

A put option written by the fund would obligate the fund to purchase specified
securities from the option holder at a specified price if the option is
exercised at any time before the expiration date. All put options written by the
fund would be covered, which means that the fund would have segregated assets
with a value at least equal to the exercise price of the put option. The purpose
of writing such options is to generate additional income for the fund. However,
in return for the option premium, the fund accepts the risk that it may be
required to purchase the underlying security at a price in excess of its market
value at the time of purchase.

Call and put options written by the fund will also be considered to be covered
to the extent that the fund's liabilities under such options are wholly or
partially offset by its rights under call and put options purchased by the fund.
In addition, a written call option or put may be covered by entering into an
offsetting forward contract and/or by purchasing an offsetting option or any
other option which, by virtue of its exercise price or otherwise, reduces the
fund's net exposure on its written option position.

Writing Call and Put Options on Securities Indices. The fund may also write
(sell) covered call and put options on any securities index composed of
securities in which it may invest. Options on securities indices are similar to
options on securities, except that the exercise of securities index options
requires cash payments and does not involve the actual purchase or sale of
securities. In addition, securities index options are designed to reflect price
fluctuations in a group of securities or segments of the securities market
rather than price fluctuations in a single security.

The fund may cover call options on a securities index by owning securities whose
price changes are expected to be similar to those of the underlying index, or by
having an absolute and immediate right to acquire such securities without
additional cash consideration (or for additional consideration if cash in such
amount is segregated) upon conversion or exchange of other securities in its
portfolio. The fund may cover call and put options on a securities index by
segregating assets with a value equal to the exercise price.

Purchasing Call and Put Options. The fund would normally purchase call options
in anticipation of an increase in the market value of securities of the type in
which it may invest. The purchase of a call option would entitle the fund, in
return for the premium paid, to purchase specified securities at a specified
price during the option period. The fund would ordinarily realize a gain if,
during the option period, the value of such securities exceeded the sum of the
exercise price, the premium paid and transaction costs; otherwise the fund would
realize either no gain or a loss on the purchase of the call option.

The fund would normally purchase put options in anticipation of a decline in the
market value of securities in its portfolio ("protective puts") or in securities
in which it may invest. The purchase of a put option would entitle the fund, in
exchange for the premium paid, to sell specified securities at a specified price
during the option period. The purchase of protective puts is designed to offset
or hedge against a decline in the market value of the fund's securities. Put
options may also be purchased by the fund for the purpose of affirmatively
benefiting from a decline in the price of securities which it does not own. The
fund would ordinarily realize a gain if, during the option period, the value of
the underlying securities decreased below the exercise price sufficiently to
more than cover the premium and transaction costs; otherwise the fund would
realize either no gain or a loss on the purchase of the put option. Gains and
losses on the purchase of protective put options would tend to be offset by
countervailing changes in the value of the underlying portfolio securities.

The fund may terminate its obligations under an exchange-traded call or put
option by purchasing an option identical to the one it has written. Obligations
under over-the-counter options may be terminated only by entering into an
offsetting transaction with the counterparty to such option. Such purchases are
referred to as "closing purchase transactions."

Risks of Trading Options. There is no assurance that a liquid secondary market
on an options exchange will exist for any particular exchange-traded option, or
at any particular time. If the fund is unable to effect a closing purchase
transaction with respect to covered options it has written, the fund will not be
able to sell the underlying securities or dispose of its segregated assets until
the options expire or are exercised. Similarly, if the fund is unable to effect
a closing sale transaction with respect to options it has purchased, it will
have to exercise the options in order to realize any profit and will incur
transaction costs upon the purchase or sale of underlying securities.

Reasons for the absence of a liquid secondary market on an exchange include the
following: (i) there may be insufficient trading interest in certain options;
(ii) restrictions may be imposed by an exchange on opening or closing
transactions or both; (iii) trading halts, suspensions or other restrictions may
be imposed with respect to particular classes or series of options; (iv) unusual
or unforeseen circumstances may interrupt normal operations on an exchange;
(v) the facilities of an exchange or the Options Clearing Corporation (the
"OCC") may not at all times be adequate to handle current trading volume; or
(vi) one or more exchanges could, for economic or other reasons, decide or be
compelled at some future date to discontinue the trading of options (or a
particular class or series of options), in which event the secondary market on
that exchange (or in

that class or series of options) would cease to exist, although outstanding
options on that exchange, if any, that had been issued by the OCC as a result of
trades on that exchange would continue to be exercisable in accordance with
their terms.

The fund may purchase and sell both options that are traded on U.S. exchanges
and options traded over-the-counter with broker-dealers who make markets in
these options. The ability to terminate over-the-counter options is more limited
than with exchange-traded options and may involve the risk that broker-dealers
participating in such transactions will not fulfill their obligations. Until
such time as the staff of the SEC changes its position, the fund will treat
purchased over-the-counter options and all assets used to cover written
over-the-counter options as illiquid securities, except that with respect to
options written with primary dealers in U.S. government securities pursuant to
an agreement requiring a closing purchase transaction at a formula price, the
amount of illiquid securities may be calculated with reference to the formula.

Transactions by the fund in options on securities and indices will be subject to
limitations established by each of the exchanges, boards of trade or other
trading facilities governing the maximum number of options in each class which
may be written or purchased by a single investor or group of investors acting in
concert. Thus, the number of options which the fund may write or purchase may be
affected by options written or purchased by other investment advisory clients of
Pioneer. An exchange, board of trade or other trading facility may order the
liquidations of positions found to be in excess of these limits, and it may
impose certain other sanctions.

The writing and purchase of options is a highly specialized activity which
involves investment techniques and risks different from those associated with
ordinary portfolio securities transactions. The successful use of protective
puts for hedging purposes depends in part on the ability of Pioneer to predict
future price fluctuations and the degree of correlation between the options and
securities markets.

The hours of trading for options may not conform to the hours during which the
underlying securities are traded. To the extent that the options markets close
before the markets for the underlying securities, significant price movements
can take place in the underlying markets that cannot be reflected in the options
markets.

In addition to the risks of imperfect correlation between the fund's portfolio
and the index underlying the option, the purchase of securities index options
involves the risk that the premium and transaction costs paid by the fund in
purchasing an option will be lost. This could occur as a result of unanticipated
movements in the price of the securities comprising the securities index on
which the option is based.

Futures Contracts and Options on Futures Contracts

To hedge against changes in securities prices or currency exchange rates or to
seek to increase total return, the fund may purchase and sell various kinds of
futures contracts, and purchase and write (sell) call and put options on any of
such futures contracts. The fund may also enter into closing purchase and sale
transactions with respect to any of such contracts and options. The futures
contracts may be based on various securities (such as U.S. government
securities), securities indices, foreign currencies and other financial
instruments and indices. The fund will engage in futures and related options
transactions for bona fide hedging and non-hedging purposes as described below.
All futures contracts entered into by the fund are traded on U.S. exchanges or
boards of trade that are licensed and regulated by the Commodity Futures Trading
Commission (the "CFTC") or on non-U.S. exchanges.

Futures Contracts. A futures contract may generally be described as an agreement
between two parties to buy and sell particular financial instruments for an
agreed price during a designated month (or to deliver the final cash settlement
price, in the case of a contract relating to an index or otherwise not calling
for physical delivery at the end of trading in the contract).

When interest rates are rising or securities prices are falling, the fund can
seek to offset a decline in the value of its current portfolio securities
through the sale of futures contracts. When interest rates are falling or
securities prices are rising, the fund, through the purchase of futures
contracts, can attempt to secure better rates or prices than might later be
available in the market when it effects anticipated purchases. Similarly, the
fund can sell futures contracts on a specified currency to protect against a
decline in the value of such currency and a decline in the value of its
portfolio securities which are denominated in such currency. The fund can
purchase futures contracts on a foreign currency to establish the price in U.S.
dollars of a security denominated in such currency that the fund has acquired or
expects to acquire.

Positions taken in the futures markets are not normally held to maturity but are
instead liquidated through offsetting transactions which may result in a profit
or a loss. While futures contracts on securities or currency will usually be
liquidated in this manner, the fund may instead make, or take, delivery of the
underlying securities or currency whenever it appears economically advantageous
to do so. A clearing corporation associated with the exchange on which futures
on securities or currency are traded guarantees that, if still open, the sale or
purchase will be performed on the settlement date.

Hedging Strategies. Hedging, by use of futures contracts, seeks to establish
with more certainty the effective price, rate of return and currency exchange
rate on portfolio securities and securities that the fund owns or proposes to
acquire. The fund may, for example, take a "short" position in the futures
market by selling futures contracts in order to hedge against an anticipated
rise in interest rates or a decline in market prices or foreign currency rates
that would adversely affect the value of the fund's portfolio securities. Such
futures contracts may include contracts for the future delivery of securities
held by the fund or securities with characteristics similar to those of the
fund's portfolio securities. Similarly, the fund may sell futures contracts in a
foreign currency in which its portfolio securities are denominated or in one
currency to hedge against fluctuations in the value of securities denominated in
a different currency if there is an established historical pattern of
correlation between the two currencies. If, in the opinion of Pioneer, there is
a sufficient degree of correlation between price trends for the fund's portfolio
securities and futures contracts based on other financial instruments,
securities indices or other indices, the fund may also enter into such futures
contracts as part of its hedging strategies. Although under some circumstances
prices of securities in the fund's portfolio may be more or less volatile than
prices of such futures contracts, Pioneer will attempt to estimate the extent of
this volatility difference based on historical patterns and compensate for any
such differential by having the fund enter into a greater or lesser number of
futures contracts or by attempting to achieve only a partial hedge against price
changes affecting the fund's portfolio securities. When hedging of this
character is successful, any depreciation in the value of portfolio securities
will be substantially offset by appreciation in the value of the futures
position. On the other hand, any unanticipated appreciation in the value of the
fund's portfolio securities would be substantially offset by a decline in the
value of the futures position.

On other occasions, the fund may take a "long" position by purchasing futures
contracts. This may be done, for example, when the fund anticipates the
subsequent purchase of particular securities when it has the necessary cash, but
expects the prices or currency exchange rates then

available in the applicable market to be less favorable than prices or rates
that are currently available.

Options on Futures Contracts. The acquisition of put and call options on futures
contracts will give the fund the right (but not the obligation) for a specified
price to sell or to purchase, respectively, the underlying futures contract at
any time during the option period. As the purchaser of an option on a futures
contract, the fund obtains the benefit of the futures position if prices move in
a favorable direction but limits its risk of loss in the event of an unfavorable
price movement to the loss of the premium and transaction costs.

The writing of a call option on a futures contract generates a premium which may
partially offset a decline in the value of the fund's assets. By writing a call
option, the fund becomes obligated, in exchange for the premium, to sell a
futures contract (if the option is exercised), which may have a value higher
than the exercise price. Conversely, the writing of a put option on a futures
contract generates a premium which may partially offset an increase in the price
of securities that the fund intends to purchase. However, the fund becomes
obligated to purchase a futures contract (if the option is exercised) which may
have a value lower than the exercise price. Thus, the loss incurred by the fund
in writing options on futures is potentially unlimited and may exceed the amount
of the premium received. The fund will incur transaction costs in connection
with the writing of options on futures.

The holder or writer of an option on a futures contract may terminate its
position by selling or purchasing an offsetting option on the same series. There
is no guarantee that such closing transactions can be effected. The fund's
ability to establish and close out positions on such options will be subject to
the development and maintenance of a liquid market.

Other Considerations. The fund will engage in futures and related options
transactions only in accordance with CFTC regulations which permit principals of
an investment company registered under the 1940 Act to engage in such
transactions without registering as commodity pool operators.

The fund will engage in transactions in futures contracts and related options
only to the extent such transactions are consistent with the requirements of the
Internal Revenue Code of 1986, as amended (the "Code"), for maintaining its
qualification as a regulated investment company for U.S. federal income tax
purposes.

Futures contracts and related options involve brokerage costs, require margin
deposits and, in the case of contracts and options obligating the fund to
purchase securities or currencies, require the fund to segregate assets to cover
such contracts and options.

While transactions in futures contracts and options on futures may reduce
certain risks, such transactions themselves entail certain other risks. Thus,
while the fund may benefit from the use of futures and options on futures,
unanticipated changes in interest rates, securities prices or currency exchange
rates may result in a poorer overall performance for the fund than if it had not
entered into any futures contracts or options transactions. In the event of an
imperfect correlation between a futures position and a portfolio position which
is intended to be protected, the desired protection may not be obtained and the
fund may be exposed to risk of loss. It is not possible to hedge fully or
perfectly against the effect of currency fluctuations on the value of non-U.S.
securities because currency movements impact the value of different securities
in differing degrees.

Foreign Currency Transactions

The fund may engage in foreign currency transactions. These transactions may be
conducted at the prevailing spot rate for purchasing or selling currency in the
foreign exchange market. The fund also has authority to enter into forward
foreign currency exchange contracts involving currencies of the different
countries in which the fund invests as a hedge against possible variations in
the foreign exchange rates between these currencies and the U.S. dollar. This is
accomplished through contractual agreements to purchase or sell a specified
currency at a specified future date and price set at the time of the contract.

Transaction hedging is the purchase or sale of forward foreign currency
contracts with respect to specific receivables or payables of the fund, accrued
in connection with the purchase and sale of its portfolio securities quoted in
foreign currencies. Portfolio hedging is the use of forward foreign currency
contracts to offset portfolio security positions denominated or quoted in such
foreign currencies. There is no guarantee that the fund will be engaged in
hedging activities when adverse exchange rate movements occur or that its
hedging activities will be successful. The fund will not attempt to hedge all of
its foreign portfolio positions and will enter into such transactions only to
the extent, if any, deemed appropriate by Pioneer.

Hedging against a decline in the value of a currency does not eliminate
fluctuations in the prices of portfolio securities or prevent losses if the
prices of such securities decline. Such transactions also limit the opportunity
for gain if the value of the hedged currency should rise. Moreover, it may not
be possible for the fund to hedge against a devaluation that is so generally
anticipated that the fund is not able to contract to sell the currency at a
price above the devaluation level it anticipates.

The fund may also engage in cross-hedging by using forward contracts in one
currency to hedge against fluctuations in the value of securities denominated in
a different currency, if Pioneer determines that there is a pattern of
correlation between the two currencies. Cross-hedging may also include entering
into a forward transaction involving two foreign currencies, using one foreign
currency as a proxy for the U.S. dollar to hedge against variations in the other
foreign currency.

The cost to the fund of engaging in foreign currency transactions varies with
such factors as the currency involved, the size of the contract, the length of
the contract period, differences in interest rates between the two currencies
and the market conditions then prevailing. Since transactions in foreign
currency and forward contracts are usually conducted on a principal basis, no
fees or commissions are involved. The fund may close out a forward position in a
currency by selling the forward contract or by entering into an offsetting
forward contract.

The precise matching of the forward contract amounts and the value of the
securities involved will not generally be possible because the future value of
such securities in foreign currencies will change as a consequence of market
movements in the value of those securities between the date on which the
contract is entered into and the date it matures. Using forward contracts to
protect the value of the fund's portfolio securities against a decline in the
value of a currency does not eliminate fluctuations in the underlying prices of
the securities. It simply establishes a rate of exchange which the fund can
achieve at some future point in time. The precise projection of short-term
currency market movements is not possible, and short-term hedging provides a
means of fixing the U.S. dollar value of only a portion of the fund's foreign
assets.

While the fund will enter into forward contracts to reduce currency exchange
rate risks, transactions in such contracts involve certain other risks. While
the fund may benefit from such transactions, unanticipated changes in currency
prices may result in a poorer overall performance for the fund than if it had
not engaged in any such transactions. Moreover, there may be imperfect
correlation between the fund's portfolio holdings of securities quoted or
denominated in a particular currency and forward contracts entered into by the
fund. Such imperfect correlation may cause the fund to sustain losses which will
prevent the fund from achieving a complete hedge or expose the fund to risk of
foreign exchange loss.

Over-the-counter markets for trading foreign forward currency contracts offer
less protection against defaults than is available when trading in currency
instruments on an exchange. Since a forward foreign currency exchange contract
is not guaranteed by an exchange or clearinghouse, a default on the contract
would deprive the fund of unrealized profits or force the fund to cover its
commitments for purchase or resale, if any, at the current market price.

If the fund enters into a forward contract to purchase foreign currency, the
custodian or Pioneer will segregate liquid assets. See "Asset Segregation."

Options on Foreign Currencies

The fund may purchase and write options on foreign currencies for hedging
purposes in a manner similar to that of transactions in forward contracts. For
example, a decline in the dollar value of a foreign currency in which portfolio
securities are quoted or denominated will reduce the dollar value of such
securities, even if their value in the foreign currency remains constant. In an
attempt to protect against such decreases in the value of portfolio securities,
the fund may purchase put options on the foreign currency. If the value of the
currency declines, the fund will have the right to sell such currency for a
fixed amount of dollars which exceeds the market value of such currency. This
would result in a gain that may offset, in whole or in part, the negative effect
of currency depreciation on the value of the fund's securities quoted or
denominated in that currency.

Conversely, if a rise in the dollar value of a currency is projected for those
securities to be acquired, thereby increasing the cost of such securities, the
fund may purchase call options on such currency. If the value of such currency
increases, the purchase of such call options would enable the fund to purchase
currency for a fixed amount of dollars which is less than the market value of
such currency. Such a purchase would result in a gain that may offset, at least
partially, the effect of any currency related increase in the price of
securities the fund intends to acquire. As in the case of other types of options
transactions, however, the benefit the fund derives from purchasing foreign
currency options will be reduced by the amount of the premium and related
transaction costs. In addition, if currency exchange rates do not move in the
direction or to the extent anticipated, the fund could sustain losses on
transactions in foreign currency options which would deprive it of a portion or
all of the benefits of advantageous changes in such rates.

The fund may also write options on foreign currencies for hedging purposes. For
example, if the fund anticipated a decline in the dollar value of securities
quoted or denominated in a foreign currency because of declining exchange rates,
it could, instead of purchasing a put option, write a covered call option on the
relevant currency. If the expected decline occurs, the option will most

likely not be exercised, and the decrease in value of portfolio securities will
be partially offset by the amount of the premium received by the fund.

Similarly, the fund could write a put option on the relevant currency, instead
of purchasing a call option, to hedge against an anticipated increase in the
dollar cost of securities to be acquired. If exchange rates move in the manner
projected, the put option will expire unexercised and allow the fund to offset
such increased cost up to the amount of the premium. However, as in the case of
other types of options transactions, the writing of a foreign currency option
will constitute only a partial hedge up to the amount of the premium, only if
rates move in the expected direction. If unanticipated exchange rate
fluctuations occur, the option may be exercised and the fund would be required
to purchase or sell the underlying currency at a loss which may not be fully
offset by the amount of the premium. As a result of writing options on foreign
currencies, the fund also may be required to forgo all or a portion of the
benefits which might otherwise have been obtained from favorable movements in
currency exchange rates.

A call option written on foreign currency by the fund is "covered" if the fund
owns the underlying foreign currency subject to the call, or if it has an
absolute and immediate right to acquire that foreign currency without additional
cash consideration. A call option is also covered if the fund holds a call on
the same foreign currency for the same principal amount as the call written
where the exercise price of the call held is (a) equal to or less than the
exercise price of the call written or (b) greater than the exercise price of the
call written if the amount of the difference is maintained by the fund in cash
or liquid securities. See "Asset Segregation."

The fund may close out its position in a currency option by either selling the
option it has purchased or entering into an offsetting option. An
exchange-traded options position may be closed out only on an options exchange
which provides a secondary market for an option of the same series. Although the
fund will generally purchase or write only those options for which there appears
to be an active secondary market, there is no assurance that a liquid secondary
market on an exchange will exist for any particular option, or at any particular
time. For some options no secondary market on an exchange may exist. In such
event, it might not be possible to effect closing transactions in particular
options, with the result that the fund would have to exercise its options in
order to realize any profit and would incur transaction costs upon the sale of
underlying currencies pursuant to the exercise of put options. If the fund as a
covered call option writer is unable to effect a closing purchase transaction in
a secondary market, it will not be able to sell the underlying currency (or
security quoted or denominated in that currency) until the option expires or it
delivers the underlying currency upon exercise.

The fund may also use options on currencies to cross-hedge, which involves
writing or purchasing options on one currency to hedge against changes in
exchange rates of a different currency with a pattern of correlation.
Cross-hedging may also include using a foreign currency as a proxy for the U.S.
dollar, if Pioneer determines that there is a pattern of correlation between
that currency and the U.S. dollar.

The fund may purchase and write over-the-counter options to the extent
consistent with its limitation on investments in illiquid securities. Trading in
over-the-counter options is subject to the risk that the other party will be
unable or unwilling to close out options purchased or written by the fund.

Lending of Portfolio Securities

The fund may lend portfolio securities to registered broker-dealers or other
institutional investors deemed by Pioneer to be of good standing under
agreements which require that the loans be secured continuously by collateral in
cash, cash equivalents or U.S. Treasury bills maintained on a current basis at
an amount at least equal to the market value of the securities loaned. The fund
continues to receive the equivalent of the interest or dividends paid by the
issuer on the securities loaned as well as the benefit of an increase and the
detriment of any decrease in the market value of the securities loaned and would
also receive compensation based on investment of the collateral. The fund may
pay administrative and custodial fees in connection with loans of securities and
may pay a portion of the income or fee earned thereon to the borrower, lending
agent or other intermediary. The fund would not, however, have the right to vote
any securities having voting rights during the existence of the loan, but would
call the loan in anticipation of an important vote to be taken among holders of
the securities or of the giving or withholding of consent on a material matter
affecting the investment.

As with other extensions of credit, there are risks of delay in recovery or even
loss of rights in the collateral should the borrower of the securities fail
financially. If a borrower defaults, the value of the collateral may decline
before the fund can dispose of it. The fund will lend portfolio securities only
to firms that have been approved in advance by the Board of Trustees, which will
monitor the creditworthiness of any such firms. At no time would the value of
the securities loaned exceed 33 1/3% of the value of the fund's total assets.

Mortgage Dollar Rolls

The fund may enter into mortgage "dollar rolls" in which the fund sells
securities for delivery in the current month and simultaneously contracts with
the same counterparty to repurchase similar (same type, coupon and maturity),
but not identical securities on a specified future date. During the roll period,
the fund loses the right to receive principal and interest paid on the
securities sold. However, the fund would benefit to the extent of any difference
between the price received for the securities sold and the lower forward price
for the future purchase (often referred to as the "drop") or fee income plus the
interest earned on the cash proceeds of the securities sold until the settlement
date of the forward purchase. Unless such benefits exceed the income, capital
appreciation and gain or loss due to mortgage prepayments that would have been
realized on the securities sold as part of the mortgage dollar roll, the use of
this technique will diminish the investment performance of the fund compared
with what such performance would have been without the use of mortgage dollar
rolls. All cash proceeds will be invested in instruments that are permissible
investments for the fund. The fund will hold and maintain in a segregated
account until the settlement date cash or liquid securities in an amount equal
to its forward purchase price.

For financial reporting and tax purposes, the fund treats mortgage dollar rolls
as two separate transactions; one involving the purchase of a security and a
separate transaction involving a sale.

Mortgage dollar rolls involve certain risks including the following: if the
broker-dealer to whom the fund sells the security becomes insolvent, the fund's
right to purchase or repurchase the mortgage-related securities subject to the
mortgage dollar roll may be restricted and the instrument which the fund is
required to repurchase may be worth less than an instrument which the fund
originally held. Successful use of mortgage dollar rolls will depend upon
Pioneer's ability to manage its interest rate and mortgage prepayments exposure.
For these reasons, there is no assurance that mortgage dollar rolls can be
successfully employed.

Money Market Instruments

The fund may invest in short-term money market instruments including commercial
bank obligations and commercial paper. These instruments may be denominated in
both U.S. and, to a limited extent, foreign currency. The fund's investment in
commercial bank obligations include certificates of deposit ("CDs"), time
deposits ("TDs") and bankers' acceptances. Obligations of non-U.S. branches of
U.S. banks and of non-U.S. banks may be general obligations of the parent bank
in addition to the issuing bank, or may be limited by the terms of a specific
obligation and by government regulation. As with investment in non-U.S.
securities in general, investments in the obligations of non-U.S. branches of
U.S. banks and of non-U.S. banks may subject the fund to investment risks that
are different in some respects from those of investments in obligations of
domestic issuers.

The fund's investments in commercial paper consist of short-term (usually from 1
to 270 days) unsecured promissory notes issued by corporations in order to
finance their current operations. The fund may also invest in variable amount
master demand notes (which is a type of commercial paper) which represents a
direct borrowing arrangement involving periodically fluctuating rates of
interest under a letter agreement between a commercial paper issuer and an
institutional lender, pursuant to which the lender may determine to invest
varying amounts. Transfer of such notes is usually restricted by the issuer, and
there is no secondary trading market for such notes. To the extent the fund
invests in master demand notes, these investments will be included in the fund's
limitation on illiquid securities.

Asset Segregation

The 1940 Act requires that the fund segregate assets in connection with certain
types of transactions that may have the effect of leveraging the fund's
portfolio. If the fund enters into a transaction requiring segregation, such as
a forward commitment, the custodian or Pioneer will segregate liquid assets in
an amount required to comply with the 1940 Act. Such segregated assets will be
valued at market daily. If the aggregate value of such segregated assets
declines below the aggregate value required to satisfy the 1940 Act, additional
liquid assets will be segregated.

Portfolio Turnover

It is the policy of the fund not to engage in trading for short-term profits
although portfolio turnover rate is not considered a limiting factor in the
execution of investment decisions for the fund. A high rate of portfolio
turnover (100% or more) involves correspondingly greater transaction costs which
must be borne by the fund and its shareholders. See "Annual Fee, Expense and
Other Information" for the fund's annual portfolio turnover rate.

Disclosure of Portfolio Holdings

The Board of Trustees has adopted policies and procedures relating to disclosure
of the fund's portfolio securities. These policies and procedures are designed
to provide a framework for disclosing information regarding portfolio holdings,
portfolio composition or other portfolio characteristics consistent with
applicable federal securities laws and regulations and general principles of
fiduciary duty relating to fund shareholders. While Pioneer may manage other
funds and accounts that have substantially similar investment strategies, these
policies and procedures only relate to the disclosure of portfolio information
of registered management investment companies.

Generally, Pioneer will make the fund's portfolio information available to the
public on a monthly basis with an appropriate delay based upon the nature of the
information disclosed. Pioneer normally will publish the fund's full portfolio
holdings thirty (30) days after the end of each month. Such information shall be
made available on the fund's website (www.pioneerinvestments.com) and may be
sent to rating agencies, reporting/news services and financial intermediaries,
upon request. In addition, Pioneer generally makes publicly available
information regarding the fund's top ten holdings (including the percentage of
the fund's assets represented by each security), the percentage breakdown of the
fund's investments by country, sector and industry, various volatility measures
(such as beta, standard deviation, etc.), market capitalization ranges and other
portfolio characteristics (such as alpha, average P/E ratio, etc.) three (3)
business days after the end of each month.

Pioneer may provide the fund's full portfolio holdings or other information to
certain entities prior to the date such information is made public, provided
that certain conditions are met. The entities to which such disclosure may be
made as of the date of this statement of additional information are rating
agencies, plan sponsors, prospective separate account clients and other
financial intermediaries (i.e., organizations evaluating the fund for purposes
of investment by their clients, such as broker-dealers, investment advisers,
banks, insurance companies, financial planning firms, plan sponsors, plan
administrators, shareholder servicing organizations and pension consultants). As
of the date of this statement of additional information, Pioneer had not
provided the fund's portfolio holdings information to any entity prior to the
date such information was made public. The third party must agree to a limited
use of that information which does not conflict with the interests of the fund's
shareholders, to use the information only for that authorized purpose, to keep
such information confidential, and not to trade on such information. The Board
of Trustees considered the disclosure of portfolio holdings information to these
categories of entities to be consistent with the best interests of shareholders
in light of the agreement to maintain the confidentiality of such information
and only to use such information for the limited and approved purposes.
Pioneer's compliance department, the local head of investment management and the
global chief investment officer may, but only acting jointly, grant exemptions
to this policy. Exemptions may be granted only if these persons determine that
providing such information is consistent with the interests of shareholders and
the third party agrees to limit the use of such information only for the
authorized purpose, to keep such information confidential, and not to trade on
such information. Although the Board will periodically be informed of exemptions
granted, granting exemptions entails the risk that portfolio holdings
information may be provided to entities that use the information in a manner
inconsistent with their obligations and the best interests of the fund.

Compliance with the fund's portfolio holdings disclosure policy is subject to
periodic review by the Board of Trustees, including a review of any potential
conflicts of interest in the disclosures made by Pioneer in accordance with the
policy or the exceptions permitted under the policy. Any change to the policy to
expand the categories of entities to which portfolio holdings may be disclosed
or an increase in the purposes for which such disclosure may be made would be
subject to approval by the Board of Trustees and, reflected, if material, in a
supplement to the fund's statement of additional information.

The fund's portfolio holdings disclosure policy is not intended to prevent the
disclosure of any and all portfolio information to the fund's service providers
who generally need access to such information in the performance of their
contractual duties and responsibilities, such as Pioneer, the fund's custodian,
fund accounting agent, principal underwriter, investment sub-adviser, if any,
independent registered public accounting firm or counsel. In approving the
policy, the Board of

Trustees considered that the service providers are subject to duties of
confidentiality arising under law or contract that provide an adequate safeguard
for such information. None of Pioneer, the fund, or any other party receive any
compensation or other consideration from any arrangement pertaining to the
release of the fund's portfolio holdings information.

In addition, the fund makes its portfolio holdings available semi-annually in
shareholder reports filed on Form N-CSR and after the first and third fiscal
quarters in regulatory filings on Form N-Q. These shareholder reports and
regulatory filings are filed with the SEC, as required by the federal securities
laws, and are generally available within seventy (70) days after the end of the
fund's fiscal quarter.

Investment Restrictions

Fundamental Investment Restrictions

The fund has adopted certain fundamental investment restrictions which, along
with the fund's investment objective, may not be changed without the affirmative
vote of the holders of a "majority of the outstanding voting securities" (as
defined in the 1940 Act) of the fund. Statements in italics are not part of the
restriction. For this purpose, a majority of the outstanding shares of the fund
means the vote of the lesser of:

(i) 67% or more of the shares represented at a meeting, if the holders of more
than 50% of the outstanding shares are present in person or by proxy, or

(ii) more than 50% of the outstanding shares of the fund.

The fund may not:

(1) Issue senior securities, except to the extent permitted by applicable law,
as amended and interpreted or modified from time to time by any regulatory
authority having jurisdiction. Senior securities that the fund may issue in
accordance with the 1940 Act include borrowing, futures, when-issued and delayed
delivery securities and forward foreign currency exchange transactions.

(2) Borrow money, except on a temporary basis and to the extent permitted by
applicable law, as amended and interpreted or modified from time to time by any
regulatory authority having jurisdiction. Under current regulatory requirements,
the fund may: (a) borrow from banks or through reverse repurchase agreements in
an amount up to 33 1/3% of the fund's total assets (including the amount
borrowed); (b) borrow up to an additional 5% of the fund's assets for temporary
purposes; (c) obtain such short-term credits as are necessary for the clearance
of portfolio transactions; (d) purchase securities on margin to the extent
permitted by applicable law; and (e) engage in transactions in mortgage dollar
rolls that are accounted for as financings. In the opinion of the SEC, the
fund's limitation on borrowing includes any pledge, mortgage or hypothecation of
its assets.

(3) Invest in real estate, except (a) that the fund may invest in securities of
issuers that invest in real estate or interests therein, securities that are
secured by real estate or interests therein, securities of real estate
investment trusts, mortgage-backed securities and other securities that
represent a similar indirect interest in real estate; and (b) the fund may
acquire real estate or interests therein through exercising rights or remedies
with regard to an instrument or security.

(4) Make loans, except that the fund may (i) lend portfolio securities in
accordance with the fund's investment policies, (ii) enter into repurchase
agreements, (iii) purchase all or a portion of an issue of publicly distributed
debt securities, bank loan participation interests, bank certificates of
deposit, bankers' acceptances, debentures or other securities, whether or not
the purchase is made upon the original issuance of the securities, (iv)
participate in a credit facility whereby the fund may directly lend to and
borrow money from other affiliated funds to the extent permitted under the 1940
Act or an exemption therefrom, and (v) make loans in any other manner consistent
with applicable law, as amended and interpreted or modified from time to time by
any regulatory authority having jurisdiction.

(5) Invest in commodities or commodity contracts, except that the fund may
invest in currency instruments and currency contracts and financial instruments
and financial contracts that might be deemed to be commodities and commodity
contracts in accordance with applicable law. A futures contract, for example,
may be deemed to be a commodity contract.

(6) Make any investment inconsistent with its classification as a diversified
open-end investment company (or series thereof) under the 1940 Act. Currently,
diversification means that, with respect to 75% of its total assets, the fund
may not purchase securities of an issuer (other than the U.S. government, its
agencies or instrumentalities and securities of investment companies), if

(a) such purchase would cause more than 5% of the fund's total
assets, taken at market value, to be invested in the securities of such issuer,
or

(b) such purchase would at the time result in more than 10% of
the outstanding voting securities of such issuer being held by the fund.

(7) Act as an underwriter, except insofar as the fund technically may be deemed
to be an underwriter in connection with the purchase or sale of its portfolio
securities.

(8) Concentrate its investments in securities of companies in any particular
industry. In the opinion of the SEC, investments are concentrated in a
particular industry if such investments aggregate 25% or more of the fund's
total assets. When identifying industries for purposes of its concentration
policy, the fund will rely upon available industry classifications. As of the
date of this statement of additional information, the fund relied on MSCI Global
Industry Classification Standard (GICS) classifications. The fund's policy does
not apply to investments in U.S. government securities.

Non-Fundamental Investment Restrictions

The following restrictions have been designated as non-fundamental and may be
changed by a vote of the fund's Board of Trustees without approval of
shareholders. The fund may not:

(1) Engage in short sales, except short sales against the box.

(2) Invest in any investment company in reliance on Section 12(d)(1)(F) of
the 1940 Act, which would allow the fund to invest in other investment
companies, or in reliance on Section 12(d)(1)(G) of the 1940 Act, which would
allow the fund to invest in other Pioneer funds, in each case without being
subject to the limitations discussed above under "Other Investment Companies"
so long as another investment company invests in the fund in reliance on
Section 12(d)(1)(G). The fund has adopted this non-fundamental policy in order
that the fund may be a permitted investment to the series of Pioneer Ibbotson
Asset Allocation Series, which invest all of

their assets in other investment companies. If the series of Pioneer Ibbotson
Asset Allocation Series do not invest in the fund, then this non-fundamental
restriction will not apply.

(3) Invest in companies for the purposes of exercising control or management.

3. TRUSTEES AND OFFICERS

The Board of Trustees provides broad supervision over the fund's affairs. The
officers of the fund are responsible for the fund's operations. The Trustees and
officers are listed below, together with their principal occupations during the
past five years. Trustees who are interested persons of the fund within the
meaning of the 1940 Act are referred to as Interested Trustees. Trustees who are
not interested persons of the fund are referred to as Independent Trustees. Each
of the Trustees (except Mr. Bock) serves as a trustee of each of the 76 U.S.
registered investment portfolios for which Pioneer serves as investment adviser
(the "Pioneer Funds"). Mr. Bock serves as Trustee of 75 of the 76 Pioneer Funds.
The address for all Trustees and all officers of the fund is 60 State Street,
Boston, Massachusetts 02109.

- --------------------------------------------------------------------------------------------------------------------------
Term of Office
Name, Age and Position Held and Length of Principal Occupation During Past Other Directorships Held by
Address With the Fund Service Five Years this Trustee
- --------------------------------------------------------------------------------------------------------------------------
Interested Trustees:
- --------------------------------------------------------------------------------------------------------------------------

John F. Chairman of the Trustee since Deputy Chairman and a Director None
Cogan, Jr. Board, Trustee 2004. Serves of Pioneer Global Asset
(81)* and President until a Management S.p.A. ("PGAM");
successor Non-Executive Chairman and a
trustee is Director of Pioneer Investment
elected or Management USA Inc. ("PIM-USA");
earlier Chairman and a Director of
retirement or Pioneer; Chairman and Director
removal. of Pioneer Institutional Asset
Management, Inc. (since 2006);
Director of Pioneer Alternative
Investment Management Limited
(Dublin); President and a
Director of Pioneer Alternative
Investment Management (Bermuda)
Limited and affiliated funds;
Director of PIOGLOBAL Real
Estate Investment Fund (Russia)
(until June 2006); Director of
Nano-C, Inc. (since 2003);
Director of Cole Management Inc.
(since 2004); Director of
Fiduciary Counseling, Inc.;
President and Director of
Pioneer Funds Distributor, Inc.
("PFD") (until May 2006);
President of all of the Pioneer
Funds; and Of Counsel, Wilmer
Cutler Pickering Hale and Dorr
LLP
- --------------------------------------------------------------------------------------------------------------------------

- --------------------------------------------------------------------------------------------------------------------------
Independent Trustees:
- --------------------------------------------------------------------------------------------------------------------------

David R. Bock (63) Trustee Trustee since Executive Vice President and Director of The Enterprise
2005. Serves Chief Financial Officer, I-trax, Social Investment Company
until a Inc. (publicly traded health (privately-held affordable
successor care services company) (2004 - housing finance company);
trustee is present); Partner, Federal City and Director of New York
elected or Capital Advisors (boutique Mortgage Trust (publicly
earlier merchant bank)(1997 to 2004); traded mortgage REIT)
retirement or and Executive Vice President and
removal. Chief Financial Officer,
Pedestal Inc. (internet-based
mortgage trading company)
(2000-2002)
- --------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (59) Trustee Trustee since President, Bush International, Director of Brady
2004. Serves LLC (international financial Corporation (industrial
until a advisory firm) identification and
successor specialty coated material
trustee is products manufacturer);
elected or Director of Briggs &
earlier Stratton Co. (engine
retirement or manufacturer); Director of
removal. UAL Corporation (airline
holding company) Director
of Mantech International
Corporation (national
security, defense, and
intelligence technology
firm): and Member, Board of
Governors, Investment
Company Institute
- --------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Trustee Trustee since Founding Director, None
Graham (60) 2004. Serves Vice-President and Corporate
until a Secretary, The Winthrop Group,
successor Inc. (consulting firm); and
trustee is Desautels Faculty of Management,
elected or McGill University
earlier
retirement or
removal.
- --------------------------------------------------------------------------------------------------------------------------

- --------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna Trustee Trustee since Private investor (2004 - Director of Quadriserv Inc.
(57) 2006. Serves present); and Senior Executive (technology products for
until a Vice President, The Bank of New securities lending
successor York (financial and securities industry)
trustee is services) (1986 - 2004)
elected or
earlier
retirement or
removal.
- --------------------------------------------------------------------------------------------------------------------------
Marguerite A. Trustee Trustee since President and Chief Executive Director of New America
Piret (59) 2004. Serves Officer, Newbury, Piret & High Income Fund, Inc.
until a Company, Inc. (investment (closed-end investment
successor banking firm) company)
trustee is
elected or
earlier
retirement or
removal.
- --------------------------------------------------------------------------------------------------------------------------
John Winthrop Trustee Trustee since President, John Winthrop & Co., None
(71) 2004. Serves Inc. (private investment firm)
until a
successor
trustee is
elected or
earlier
retirement or
removal.
- --------------------------------------------------------------------------------------------------------------------------
Fund Officers:
- --------------------------------------------------------------------------------------------------------------------------
Other Directorships Held by
this Officer
- --------------------------------------------------------------------------------------------------------------------------

- --------------------------------------------------------------------------------------------------------------------------
Daniel K. Executive Vice Since March Director, CEO and President of None
Kingsbury President 2007. Serves at Pioneer Investment Management
(49)* the discretion USA Inc., Pioneer Investment
of the Board Management, Inc. and Pioneer
Institutional Asset Management,
Inc. (since March 2007);
Executive Vice President of all
of the Pioneer Funds (since
March 2007); Director of Pioneer
Global Asset Management S.p.A.
(since March 2007); Head of New
Markets Division, Pioneer Global
Asset Management S.p.A.
(2000-2007)
- --------------------------------------------------------------------------------------------------------------------------
Dorothy E. Secretary Since 2004. Secretary of PIM-USA; Senior None
Bourassa (59) Serves at the Vice President- Legal of
discretion of Pioneer; Secretary/Clerk of most
the Board of PIM-USA's subsidiaries; and
Secretary of all of
the Pioneer Funds
since September 2003
(Assistant Secretary
from November 2000 to
September 2003)
- --------------------------------------------------------------------------------------------------------------------------
Christopher J. Assistant Since 2004. Vice President and Senior None
Kelley (42) Secretary Serves at the Counsel of Pioneer since July
discretion of 2002 and Assistant Secretary of
the Board all of the Pioneer Funds since
September 2003; Vice President
and Senior Counsel of BISYS Fund
Services, Inc. (April 2001 to
June 2002); Senior Vice
President and Deputy General
Counsel of Funds Distributor,
Inc. (July 2000 to April 2001)
- --------------------------------------------------------------------------------------------------------------------------
Vincent Nave Treasurer Since 2004. Vice President-Fund Accounting, None
(62) Serves at the Administration and
discretion of Controllership Services of
the Board Pioneer; and Treasurer of all of
the Pioneer Funds
- --------------------------------------------------------------------------------------------------------------------------

- --------------------------------------------------------------------------------------------------------------------------
Mark E. Assistant Since 2004. Deputy Treasurer of Pioneer None
Bradley (48) Treasurer Serves at the since 2004 and Assistant
discretion of Treasurer of all of the Pioneer
the Board Funds since November 2004;
Treasurer and Senior Vice
President, CDC IXIS Asset
Management Services from 2002 to
2003
- --------------------------------------------------------------------------------------------------------------------------
Luis I. Assistant Since 2004. Assistant Vice President-Fund None
Presutti (42) Treasurer Serves at the Accounting, Administration and
discretion of Controllership Services of
the Board Pioneer; and Assistant Treasurer
of all of the Pioneer Funds
- --------------------------------------------------------------------------------------------------------------------------
Gary Sullivan Assistant Since 2004. Fund Accounting Manager - Fund None
(49) Treasurer Serves at the Accounting, Administration and
discretion of Controllership Services of
the Board Pioneer; and Assistant Treasurer
of all of the Pioneer Funds
- --------------------------------------------------------------------------------------------------------------------------
Katherine Assistant Since 2004. Fund Administration Manager - None
Kim Sullivan Treasurer Serves at the Fund Accounting, Administration
(33) discretion of and Controllership Services
the Board since June 2003 and Assistant
Treasurer of all of
the Pioneer Funds
since September 2003;
Assistant Vice
President - Mutual
Fund Operations of
State Street
Corporation from June
2002 to June 2003
(formerly Deutsche
Bank Asset Management)
- --------------------------------------------------------------------------------------------------------------------------
Teri W. Chief Compliance Since January Chief Compliance Officer of None
Anderholm Officer 2007. Serves at Pioneer since December 2006 and
(48) the discretion of all the Pioneer Funds since
of the Board January 2007; Vice President and
Compliance Officer, MFS
Investment Management (August
2005 to December 2006);
Consultant, Fidelity Investments
(February 2005 to July 2005);
Independent Consultant (July
1997 to February 2005)
- --------------------------------------------------------------------------------------------------------------------------

*Mr. Cogan is an Interested Trustee because he is an officer or director of the
fund's investment adviser and certain of its affiliates.

The outstanding capital stock of PFD, Pioneer and PIMSS is indirectly wholly
owned by UniCredito Italiano S.p.A. ("UniCredito Italiano"), one of the largest
banking groups in Italy. Pioneer, the fund's investment adviser, provides
investment management and financial services to mutual funds, institutional and
other clients.

Board Committees

During the most recent fiscal year, the Board of Trustees held 7 meetings. Each
Trustee attended at least 75% of such meetings.

The Board of Trustees has an Audit Committee, an Independent Trustees Committee,
a Nominating Committee, a Valuation Committee and a Policy Administration
Committee. Committee members are as follows:

Audit
David R. Bock, Margaret B. W. Graham and Marguerite A. Piret (Chair)

Independent Trustees
David R. Bock, Mary K. Bush, Margaret B.W. Graham (Chair), Thomas J. Perna,
Marguerite A. Piret and John Winthrop

Nominating
Mary K. Bush, Marguerite A. Piret, and John Winthrop (Chair)

Valuation
David R. Bock, Margaret B. W. Graham and Marguerite A. Piret (Chair)

Policy Administration
Mary K. Bush (Chair), Thomas J. Perna and John Winthrop

During the most recent fiscal year, the Audit, Independent Trustees, Nominating,
Valuation, and Policy Administration Committees held 12, 11, 7, 4 and 6
meetings, respectively.

The Board of Trustees has adopted a charter for the Audit Committee. In
accordance with its charter, the purposes of the Audit Committee are to:

|_| act as a liaison between the fund's independent registered public accounting
firm and the full Board of Trustees of the fund;

|_| discuss with the fund's independent registered public accounting firm their
judgments about the quality of the fund's accounting principles and
underlying estimates as applied in the fund's financial reporting;

|_| review and assess the renewal materials of all related party contracts and
agreements, including management advisory agreements, underwriting
contracts, administration agreements, distribution contracts, and transfer
agency contracts, among any other instruments and agreements that may be
appropriate from time to time;

|_| review and approve insurance coverage and allocations of premiums between
the management and the fund and among the Pioneer Funds;

|_| review and approve expenses under the administration agreement between
Pioneer and the fund and allocations of such expenses among the Pioneer
Funds; and

|_| receive on a periodic basis a formal written statement delineating all
relationships between the independent registered public accounting firm and
the fund or Pioneer; to actively engage in a dialogue with the independent
registered public accounting firm with respect to any disclosed
relationships or services that may impact the objectivity and independence
of the independent registered public accounting firm; and to recommend that
the Trustees take appropriate action in response to the independent
registered public accounting firm's report to satisfy itself of the
independent registered public accounting firm's independence.

The Nominating Committee reviews the qualifications of any candidate recommended
by the Independent Trustees to serve as an Independent Trustee and makes a
recommendation regarding that person's qualifications. The Committee does not
accept nominations from shareholders.

The Valuation Committee reviews the valuation assigned to certain securities by
Pioneer in accordance with the fund's valuation procedures.

The Policy Administration Committee reviews the implementation of certain of the
fund's administrative policies and procedures.

The Independent Trustees Committee reviews the fund's management contract and
other related party contracts annually and is also responsible for any other
action required to be taken, under the 1940 Act, by the Independent Trustees
acting alone.

The Agreement and Declaration of Trust provides that the Trust will indemnify
the Trustees and officers against liabilities and expenses incurred in
connection with any litigation in which they may be involved because of their
offices with the Trust, unless it is determined in the manner specified in the
Agreement and Declaration of Trust that they have not acted in good faith in the
reasonable belief that their actions were in the best interests of the Trust or
the fund or that such indemnification would relieve any officer or Trustee of
any liability to the Trust or the fund or its shareholders by reason of willful
misfeasance, bad faith, gross negligence or reckless disregard of his or her
duties.

Compensation of Officers and Trustees

The fund pays no salaries or compensation to any of its officers. The Pioneer
Funds, including the fund, compensate their Trustees. The Independent Trustees
review and set their compensation annually, taking into consideration the
committee and other responsibilities assigned to specific Trustees. The table
under "Annual Fees, Expense and Other Information-Compensation of Officers and
Trustees" sets forth the compensation paid to each of the Trustees. The
compensation paid to the Trustees is then allocated among the funds as follows:

o each fund with assets less than $250 million pays each Independent Trustee
an annual fee of $1,000.

o the remaining compensation of the Independent Trustees is allocated to each
fund with assets greater than $250 million based on the fund's net assets.
o the Interested Trustees receive an annual fee of $500 from each fund,
except in the case of funds with net assets of $50 million or less, which
pay each Interested Trustee an annual fee of $200. Pioneer reimburses the
funds for the fees paid to the Interested Trustees.

See "Compensation of Officers and Trustees" in "Annual Fee, Expense and Other
Information."

Sales Loads. The fund offers its shares to Trustees and officers of the fund and
employees of Pioneer and its affiliates without a sales charge in order to
encourage investment in the fund by individuals who are responsible for its
management and because the sales to such persons do not entail any sales effort
by the fund, brokers or other intermediaries.

Other Information

Material Relationships of the Independent Trustees. For purposes of the
statements below:

o the immediate family members of any person are their spouse, children in
the person's household (including step and adoptive children) and any
dependent of the person.

o an entity in a control relationship means any person who controls, is
controlled by or is under common control with the named person. For
example, UniCredito Italiano is an entity that is in a control
relationship with Pioneer.

o a related fund is a registered investment company or an entity
exempt from the definition of an investment company pursuant to
Sections 3(c)(1) or 3(c)(7) of the 1940 Act, for which Pioneer or any of
its affiliates act as investment adviser or for which PFD or any of its
affiliates act as principal underwriter. For example, the fund's related
funds include all of the Pioneer Funds and any non-U.S. funds managed by
Pioneer or its affiliates.

As of December 31, 2006, none of the Independent Trustees, nor any of their
immediate family members, beneficially owned any securities issued by Pioneer,
UniCredito Italiano or any other entity in a control relationship to Pioneer or
PFD. During the calendar years 2005 and 2006, none of the Independent Trustees,
nor any of their immediate family members, had any direct or indirect interest
(the value of which exceeded $120,000), whether by contract, arrangement or
otherwise, in Pioneer, UniCredito Italiano, or any other entity in a control
relationship to Pioneer or PFD. During the calendar years 2005 and 2006, none of
the Independent Trustees, nor any of their immediate family members, had an
interest in a transaction or a series of transactions in which the aggregate
amount involved exceeded $120,000 and to which any of the following were a party
(each a "fund related party"):

o the fund
o an officer of the fund
o a related fund
o an officer of any related fund
o Pioneer
o PFD
o an officer of Pioneer or PFD
o any affiliate of Pioneer or PFD
o an officer of any such affiliate

During the calendar years 2005 and 2006, none of the Independent Trustees, nor
any of their immediate family members, had any relationship (the value of which
exceeded $120,000) with any fund related party, including, but not limited to,
relationships arising out of (i) the payment for property and services, (ii) the
provision of legal services, (iii) the provision of investment

banking services (other than as a member of the underwriting syndicate) or (iv)
the provision of consulting services.

During the calendar years 2005 and 2006, none of the Independent Trustees, nor
any of their immediate family members, served as a member of a board of
directors on which an officer of any of the following entities also serves as a
director:

o Pioneer
o PFD
o UniCredito Italiano
o any other entity in a control relationship with Pioneer or PFD

None of the fund's Trustees or officers has any arrangement with any other
person pursuant to which that Trustee or officer serves on the Board of
Trustees. During the calendar years 2005 and 2006, none of the Independent
Trustees, nor any of their immediate family members, had any position, including
as an officer, employee, director or partner, with any of the following:

o the fund
o any related fund
o Pioneer
o PFD
o any affiliated person of the fund, Pioneer or PFD
o UniCredito Italiano
o any other entity in a control relationship to the fund, Pioneer or PFD

Share Ownership. See "Annual Fee, Expense and Other Information" for annual
information on the ownership of fund shares by the Trustees, the fund's officers
and owners in excess of 5% of any class of shares of the fund and a table
indicating the value of shares that each Trustee beneficially owns in the fund
and in all the Pioneer Funds.

Code of Ethics. The Board of Trustees has approved a code of ethics under Rule
17j-1 under the 1940 Act that covers the fund, Pioneer and certain of Pioneer's
affiliates. The code of ethics establishes procedures for personal investing and
restricts certain transactions. Employees subject to the code of ethics may
invest in securities for their personal investment accounts, including
securities that may be purchased or held by the fund.

Proxy Voting Policies. Information regarding how the fund voted proxies relating
to portfolio securities during the most recent 12-month period ended June 30 is
publicly available to shareowners without charge at
http://www.pioneerinvestments.com and on the SEC's website at
http://www.sec.gov. The fund's "Proxy Voting Policies and Procedures" are
attached as "Appendix B".

4. INVESTMENT ADVISER

The fund has contracted with Pioneer to act as its investment adviser. Pioneer
is an indirect, wholly owned subsidiary of UniCredito Italiano. Certain Trustees
or officers of the fund are also directors and/or officers of certain of
UniCredito Italiano's subsidiaries (see management biographies above). Pioneer
has entered into an agreement with its affiliate, Pioneer Investment

Management Limited ("PIML"), pursuant to which PIML provides certain services
and personnel to Pioneer.

As the fund's investment adviser, Pioneer provides the fund with investment
research, advice and supervision and furnishes an investment program for the
fund consistent with the fund's investment objective and policies, subject to
the supervision of the fund's Trustees. Pioneer determines what portfolio
securities will be purchased or sold, arranges for the placing of orders for the
purchase or sale of portfolio securities, selects brokers or dealers to place
those orders, maintains books and records with respect to the fund's securities
transactions, and reports to the Trustees on the fund's investments and
performance.

Under the terms of its management contract with the fund, Pioneer pays all the
operating expenses, including executive salaries and the rental of office space,
relating to its services for the fund, with the exception of the following,
which are to be paid by the fund: (a) charges and expenses for fund accounting,
pricing and appraisal services and related overhead, including, to the extent
such services are performed by personnel of Pioneer, or its affiliates, office
space and facilities and personnel compensation, training and benefits; (b) the
charges and expenses of auditors; (c) the charges and expenses of any custodian,
transfer agent, plan agent, dividend disbursing agent, registrar or other agent
appointed by the fund; (d) issue and transfer taxes chargeable to the fund in
connection with securities transactions to which the fund is a party; (e)
insurance premiums, interest charges, dues and fees for membership in trade
associations and all taxes and corporate fees payable by the fund to federal,
state or other governmental agencies; (f) fees and expenses involved in
registering and maintaining registrations of the fund and/or its shares with the
federal regulatory agencies, state or blue sky securities agencies and foreign
jurisdictions, including the preparation of prospectuses and statements of
additional information for filing with such regulatory authorities; (g) all
expenses of shareholders' and Trustees' meetings and of preparing, printing and
distributing prospectuses, notices, proxy statements and all reports to
shareholders and to governmental agencies; (h) charges and expenses of legal
counsel to the fund and the Trustees; (i) distribution fees paid by the fund in
accordance with Rule 12b-1 promulgated by the SEC pursuant to the 1940 Act; (j)
compensation of Independent Trustees; (k) the cost of preparing and printing
share certificates; (l) interest on borrowed money, if any and (m) any other
expense that the fund, Pioneer or any other agent of the fund may incur (A) as a
result of a change in the laws or regulations, (B) as a result of a mandate from
the Board of Trustees with associated costs of a character generally assumed by
similarly structured investment companies or (C) that is similar to the expenses
listed above, and that is approved by the Board of Trustees (including a
majority of the Independent Trustees) as being an appropriate expense of the
fund. In addition, the fund shall pay all brokers' and underwriting commissions
chargeable to the fund in connection with securities transactions to which the
fund is a party.

The Trustees' approval of and the terms, continuance and termination of the
management contract are governed by the 1940 Act and the Investment Advisers Act
of 1940, as applicable (the "Advisers Act"). Pursuant to the management
contract, Pioneer will not be liable for any error of judgment or mistake of law
or for any loss sustained by reason of the adoption of any investment policy or
the purchase, sale or retention of any securities on the recommendation of
Pioneer. Pioneer, however, is not protected against liability by reason of
willful misfeasance, bad faith or gross negligence in the performance of its
duties or by reason of its reckless disregard of its obligations and duties
under the management contract. Either party to the management contract may,
without penalty, terminate the management contract by vote of its Board of
Trustees or Directors, as the case may be, or by vote of a "majority of the
outstanding voting securities" (as defined in the 1940 Act) of the fund or
Pioneer, as the case may be, upon sixty (60) days' written notice to the other
party.

Advisory Fee. As compensation for its management services and expenses incurred,
the fund pays Pioneer a fee at the annual rate of 0.40% of the fund's average
daily net assets. The fee is computed and accrued daily and paid monthly.

Expense Limitation. Effective January 1, 2006, Pioneer has contractually agreed
to limit ordinary operating expenses to the extent required to reduce fund
expenses to 0.90%, 1.80% and 1.80% of the average daily net assets attributable
to Class A, Class B and Class C shares, respectively. These expense limitations
are in effect through January 1, 2011 for Class A shares and through January 1,
2009 for Class B and Class C shares. There can be no assurance that Pioneer will
extend the expense limitations beyond these times. Prior to January 1, 2006,
Pioneer agreed to waive all or part of its management fee for other expenses
(other than extraordinary expenses) to the extent the expenses of the fund's
Class A shares exceeded 0.90% of average daily net assets. The portion of fund
expenses (including the amount of management fee waived) attributable to Class
B, Class C and Class Y shares were reduced only to the extent such expenses were
reduced for the fund's Class A shares. Any differences in the fee waiver and
expense limitation among classes resulted from rounding in the daily calculation
of a class' net assets and expense limit, which may have exceeded 0.01%
annually.

Pioneer expects to continue its limitation of expenses unless the expense limit
agreement with the fund is terminated pursuant to the terms of the expense limit
agreement. The fund may terminate the expense limitation agreement at any time;
provided, however, that the Board of Trustees would not take such action unless
it determined termination of the agreement to be in the best interests of the
fund and its shareholders.

See the table in Annual Fee, Expense and Other Information for management fees
paid to Pioneer during recently completed fiscal years.

Administration Agreement. The fund has entered into an administration agreement
with Pioneer pursuant to which certain accounting, administration and legal
services are performed by Pioneer and pursuant to which Pioneer receives a fee
at the annual rate of 0.0225% of the fund's average daily net assets. See
"Annual Fee, Expense and Other Information" for fees the fund paid to Pioneer
for administration and related services.

Potential Conflicts of Interest. The fund is managed by Pioneer which also
serves as investment adviser to other Pioneer mutual funds and other accounts
with investment objectives identical or similar to those of the fund. Securities
frequently meet the investment objectives of the fund, the other Pioneer mutual
funds and such other accounts. In such cases, the decision to recommend a
purchase to one fund or account rather than another is based on a number of
factors. The determining factors in most cases are the amount of securities of
the issuer then outstanding, the value of those securities and the market for
them. Other factors considered in the investment recommendations include other
investments which each fund or account presently has in a particular industry
and the availability of investment funds in each fund or account.

It is possible that at times identical securities will be held by more than one
fund and/or account. However, positions in the same issue may vary and the
length of time that any fund or account may choose to hold its investment in the
same issue may likewise vary. To the extent that more than one of the Pioneer
mutual funds or a private account managed by Pioneer seeks to acquire the same
security at about the same time, the fund may not be able to acquire as large a
position in such security as it desires or it may have to pay a higher price for
the security. Similarly, the

fund may not be able to obtain as large an execution of an order to sell or as
high a price for any particular portfolio security if Pioneer decides to sell on
behalf of another account the same portfolio security at the same time. On the
other hand, if the same securities are bought or sold at the same time by more
than one fund or account, the resulting participation in volume transactions
could produce better executions for the fund. In the event more than one account
purchases or sells the same security on a given date, the purchases and sales
will normally be made as nearly as practicable on a pro rata basis in proportion
to the amounts desired to be purchased or sold by each account. Although the
other Pioneer mutual funds may have the same or similar investment objectives
and policies as the fund, their portfolios do not generally consist of the same
investments as the fund or each other, and their performance results are likely
to differ from those of the fund.

Personal Securities Transactions. The fund, Pioneer, and PFD have adopted a code
of ethics under Rule 17j-1 under the 1940 Act which is applicable to officers,
trustees/directors and designated employees of Pioneer and certain of Pioneer's
affiliates. The code permits such persons to engage in personal securities
transactions for their own accounts, including securities that may be purchased
or held by the fund, and is designed to prescribe means reasonably necessary to
prevent conflicts of interest from arising in connection with personal
securities transactions. The code is on public file with and available from the
SEC.

5. PRINCIPAL UNDERWRITER AND DISTRIBUTION PLANS

Principal Underwriter

PFD, 60 State Street, Boston, Massachusetts 02109, is the principal underwriter
for the fund in connection with the continuous offering of its shares. PFD is an
indirect wholly owned subsidiary of PIM-USA.

The fund entered into an underwriting agreement with PFD which provides that PFD
will bear expenses for the distribution of the fund's shares, except for
expenses incurred by PFD for which it is reimbursed or compensated by the fund
under the distribution plans (discussed below). PFD bears all expenses it incurs
in providing services under the underwriting agreement. Such expenses include
compensation to its employees and representatives and to securities dealers for
distribution-related services performed for the fund. PFD also pays certain
expenses in connection with the distribution of the fund's shares, including the
cost of preparing, printing and distributing advertising or promotional
materials, and the cost of printing and distributing prospectuses and
supplements to prospective shareholders. The fund bears the cost of registering
its shares under federal and state securities law and the laws of certain
non-U.S. countries. Under the underwriting agreement, PFD will use its best
efforts in rendering services to the fund.

See "Sales Charges" for the schedule of initial sales charge reallowed to
dealers as a percentage of the offering price of the fund's Class A shares.

See the tables under "Annual Fee, Expense and Other Information" for commissions
retained by PFD and reallowed to dealers in connection with PFD's offering of
the fund's Class A and Class C shares during recently completed fiscal years.

The fund will not generally issue fund shares for consideration other than cash.
At the fund's sole discretion, however, it may issue fund shares for
consideration other than cash in connection with a bona fide reorganization,
statutory merger or other acquisition of portfolio securities.

It is the fund's general practice to repurchase its shares of beneficial
interest for cash consideration in any amount; however, the redemption price of
shares of the fund may, at Pioneer's discretion, be paid in portfolio
securities. The fund has elected to be governed by Rule 18f-1 under the 1940 Act
pursuant to which the fund is obligated to redeem shares solely in cash up to
the lesser of $250,000 or 1% of the fund's net asset value during any 90-day
period for any one shareholder. Should the amount of redemptions by any
shareholder exceed such limitation, the fund will have the option of redeeming
the excess in cash or portfolio securities. In the latter case, the securities
are taken at their value employed in determining the fund's net asset value. You
may incur additional costs, such as brokerage fees and taxes, and risks,
including a decline in the value of the securities you receive, if the fund
makes an in-kind distribution. The selection of such securities will be made in
such manner as the Board of Trustees deems fair and reasonable; however, the
fund will not distribute illiquid securities in kind.

Distribution Plans

The fund has adopted a plan of distribution pursuant to Rule 12b-1 under the
1940 Act with respect to its Class A shares (the "Class A Plan"), a plan of
distribution with respect to its Class B shares (the "Class B Plan") and a plan
of distribution with respect to its Class C shares (the "Class C Plan")
(together, the "Plans"), pursuant to which certain distribution and service fees
are paid to PFD. The fund has not adopted a plan of distribution with respect to
its Class Y shares. Because of the Plans, long-term shareholders may pay more
than the economic equivalent of the maximum sales charge permitted by the
Financial Industry Regulatory Authority, Inc. ("FINRA") regarding investment
companies. Currently under the Class A Plan, PFD is reimbursed for distribution
expenses, and the distribution expenses of PFD are expected to substantially
exceed the distribution fees paid by the fund in a given year. The Class B Plan
and Class C Plan are compensation plans, which means that the amount of payments
under the plans are not linked to PFD's expenditures, and, consequently, PFD can
make a profit under each of those plans.

Class A Plan. Pursuant to the Class A Plan the fund currently reimburses PFD for
its actual expenditures to finance any activity primarily intended to result in
the sale of Class A shares or to provide services to holders of Class A shares,
provided the categories of expenses for which reimbursement is made are approved
by the Board of Trustees. The Board of Trustees has approved the following
categories of expenses that may be reimbursed under the Class A Plan: (i) a
service fee to be paid to qualified broker-dealers in an amount not to exceed
0.25% per annum of the fund's daily net assets attributable to Class A shares;
(ii) reimbursement to PFD for its expenditures for broker-dealer commissions and
employee compensation on certain sales of the fund's Class A shares with no
initial sales charge; and (iii) reimbursement to PFD for expenses incurred in
providing services to Class A shareholders and supporting broker-dealers and
other organizations (such as banks and trust companies) in their efforts to
provide such services. The expenses of the fund pursuant to the Class A Plan are
accrued daily at a rate which may not exceed the annual rate of 0.25% of the
fund's average daily net assets attributable to Class A shares.

The Class A Plan does not provide for the carryover of reimbursable expenses
beyond 12 months from the time the fund is first invoiced for an expense. The
limited carryover provision in the Class A Plan may result in an expense
invoiced to the fund in one fiscal year being paid in the subsequent fiscal year
and thus being treated for purposes of calculating the maximum expenditures of
the fund as having been incurred in the subsequent fiscal year. In the event of
termination or non-continuance of the Class A Plan, the fund has 12 months to
reimburse any expense which it incurs prior to such termination or
non-continuance, provided that payments by the fund during such 12-month period
shall not exceed 0.25% of the fund's average daily net

assets attributable to Class A shares during such period. See "Annual Fee,
Expense and Other Information" for the amount, if any, of carryover of
distribution expenses as of the end of the most recent calendar year.

Class B Plan. PFD pays the selling broker-dealer a commission on the sale of
Class B shares equal to 2.00% of the amount invested. This commission is paid at
the time of sale of the Class B shares. In order to be entitled to a commission,
the selling broker-dealer must have entered into sales agreements with PFD. At
the time of the sale of a Class B share, PFD may also advance to the
broker-dealer, from PFD's own assets, the first-year service fee payable under
the Class B Plan at a rate up to 0.25% of the purchase price of such shares. If
such an advance is made, the broker-dealer would not receive any further service
fee until the 13th month following the purchase of Class B shares. As
compensation for advancing the service fee, PFD may retain the service fee paid
by the fund with respect to such shares for the first year after purchase.

The Class B Plan provides that the fund shall pay to PFD, as the fund's
distributor for its Class B shares:

o a distribution fee equal on an annual basis to 0.75% of the fund's
average daily net assets attributable to Class B shares. The
distribution fee compensates PFD for its distribution services with
respect to Class B shares. PFD pays the commissions to broker-dealers
discussed above and also pays:

o the cost of printing prospectuses and reports used for sales
purposes and the preparation and printing of sales literature
and

o other distribution-related expenses, including, without
limitation, the cost necessary to provide distribution-related
services, or personnel, travel, office expenses and equipment.

o a service fee equal to 0.25% of the fund's average daily net assets
attributable to Class B shares. PFD in turn pays the service fee to
broker-dealers at a rate of up to 0.25% of the fund's average daily net
assets attributable to Class B shares owned by shareholder for whom that
broker-dealer is the holder or dealer of record. This service fee
compensates the broker-dealer for providing personal services and/or
account maintenance services rendered by the broker-dealer with respect
to Class B shares. PFD may from time to time require that dealers, in
addition to providing these services, meet certain criteria in order to
receive service fees. PFD is entitled to retain all service fees with
respect to Class B shares for which there is no dealer of record or with
respect to which a dealer is not otherwise entitled to a service fee.
Such service fees are paid to PFD for personal services and/or account
maintenance services that PFD or its affiliates perform for shareholder
accounts.

PFD also receives contingent deferred sales charges ("CDSCs") attributable to
Class B shares to compensate PFD for its distribution expenses. When a
broker-dealer sells Class B shares and elects, with PFD's approval, to waive its
right to receive the commission normally paid at the time of the sale, PFD may
cause all or a portion of the distribution fees described above to be paid to
the broker-dealer.

Since PFD pays commissions to broker-dealers at the time of the sale of Class B
shares but only receives compensation for such expenses over time through the
distribution fee and CDSC, the Class B Plan and underwriting agreement permit
PFD to finance the payment of commissions to broker-dealers. In order to
facilitate such financing, the fund has agreed that the distribution fee

will not be terminated or modified (including a modification in the rules
relating to the conversion of Class B shares into Class A shares) with respect
to Class B shares:

o issued prior to the date of any termination or modification;

o attributable to Class B shares issued through one or a series of
exchanges of shares of another investment company for which PFD acts as
principal underwriter which were initially issued prior to the date of
such termination or modification; or

o issued as a dividend or distribution upon Class B shares initially
issued or attributable to Class B shares issued prior to the date of any
such termination or modification.

The foregoing limitation does not apply to Class B shares issued after the
termination or modification. The foregoing limitation on terminating or
modifying the Class B Plan also does not apply to a termination or modification:

o if a change in the 1940 Act, the rules or regulations under the 1940
Act, the Conduct Rules of FINRA or an order of any court or governmental
agency requires such termination or modification (e.g. if the Conduct
Rules were amended to establish a lower limit on the maximum aggregate
sales charges that could be imposed on sales of fund shares);

o if the fund (or any successor) terminates the Class B Plan and all
payments under the plan and neither the fund (nor any successor)
establishes another class of shares which has substantially similar
characteristics to the Class B shares of the fund; or

o at any time by the Board of Trustees. However, the Board of Trustees may
terminate or modify the Class B Plan only if the fund and Pioneer agree
that none of the fund, PFD or any of their affiliates will pay, after
the date of termination or modification, a service fee with respect to
the fund's Class B shares and the termination or modification of the
distribution fee applies equally to all Class B shares outstanding from
time to time.

In the underwriting agreement, the fund agrees that subsequent to the issuance
of a Class B share, the fund will not waive or change any CDSC (including a
change in the rules applicable to conversion of Class B shares into another
class) in respect of such Class B share, except:

o as provided in the fund's prospectus or statement of additional
information; or

o as required by a change in the 1940 Act and the rules and regulations
thereunder, the Conduct Rules of FINRA or any order of any court or
governmental agency.

Class C Plan. Commissions on the sale of Class C shares of up to 0.75% of the
amount invested in Class C shares are paid to broker-dealers who have sales
agreements with PFD. PFD may also advance to dealers the first-year service fee
payable under the Class C Plan at a rate up to 0.25% of the purchase price of
such shares. As compensation for such advance of the service fee, PFD may retain
the service fee paid by the fund with respect to such shares for the first year
after purchase.

The Class C Plan provides that the fund will pay PFD, as the fund's distributor
for its Class C shares, a distribution fee accrued daily and paid quarterly,
equal on an annual basis to 0.75% of the fund's average daily net assets
attributable to Class C shares and will pay PFD a service fee

equal to 0.25% of the fund's average daily net assets attributable to Class C
shares. PFD will in turn pay to securities dealers that enter into a sales
agreement with PFD a distribution fee and a service fee at rates of up to 0.75%
and 0.25%, respectively, of the fund's average daily net assets attributable to
Class C shares owned by investors for whom that securities dealer is the holder
or dealer of record. The service fee is intended to be in consideration of
personal services and/or account maintenance services rendered by the dealer
with respect to Class C shares. PFD will advance to dealers the first-year
service fee at a rate equal to 0.25% of the amount invested. As compensation
therefore, PFD may retain the service fee paid by the fund with respect to such
shares for the first year after purchase. Commencing in the 13th month following
the purchase of Class C shares, dealers will become eligible for additional
annual distribution fees and service fees of up to 0.75% and 0.25%,
respectively, of the net asset value of such shares. Dealers may from time to
time be required to meet certain other criteria in order to receive service
fees. PFD or its affiliates are entitled to retain all service fees payable
under the Class C Plan for which there is no dealer of record or for which
qualification standards have not been met as partial consideration for personal
services and/or account maintenance services performed by PFD or its affiliates
for shareholder accounts.

The purpose of distribution payments to PFD under the Class C Plan is to
compensate PFD for its distribution services with respect to Class C shares of
the fund. PFD pays commissions to dealers as well as expenses of printing
prospectuses and reports used for sales purposes, expenses with respect to the
preparation and printing of sales literature and other distribution-related
expenses, including, without limitation, the cost necessary to provide
distribution-related services, or personnel, travel, office expenses and
equipment. The Class C Plan also provides that PFD will receive all CDSCs
attributable to Class C shares. When a broker-dealer sells Class C shares and
elects, with PFD's approval, to waive its right to receive the commission
normally paid at the time of the sale, PFD may cause all or a portion of the
distribution fees described above to be paid to the broker-dealer.

General

In accordance with the terms of each Plan, PFD provides to the fund for review
by the Trustees a quarterly written report of the amounts expended under the
Plan and the purposes for which such expenditures were made.

No interested person of the fund, nor any Trustee of the fund who is not an
interested person of the fund, has any direct or indirect financial interest in
the operation of the Plans except to the extent that PFD and certain of its
employees may be deemed to have such an interest as a result of receiving a
portion of the amounts expended under the Plans by the fund and except to the
extent certain officers may have an interest in PFD's ultimate parent,
UniCredito Italiano, or in UniCredito Italiano's subsidiaries.

Each Plan's adoption, terms, continuance and termination are governed by
Rule 12b-1 under the 1940 Act. The Board of Trustees believes that there is a
reasonable likelihood that the Plans will benefit the fund and its current and
future shareholders. The Plans may not be amended to increase materially the
annual percentage limitation of average net assets which may be spent for the
services described therein without approval of the shareholders of the fund
affected thereby, and material amendments of the Plans must also be approved by
the Trustees as provided in Rule 12b-1.

See "Annual Fee, Expense and Other Information" for fund expenses under the
Class A Plan, Class B Plan, and Class C Plan and CDSCs paid to PFD for the most
recently completed fiscal year.

Upon redemption, Class A shares may be subject to a 1% CDSC, Class B shares are
subject to a CDSC at a rate declining from a maximum 2%, and Class C shares may
be subject to a 1% CDSC, in each case, of the lower of the cost or market value
of the shares. Class Y shares are not subject to a CDSC.

6. SHAREHOLDER SERVICING/TRANSFER AGENT

The fund has contracted with PIMSS, 60 State Street, Boston, Massachusetts
02109, to act as shareholder servicing and transfer agent for the fund.

Under the terms of its contract with the fund, PIMSS services shareholder
accounts, and its duties include: (i) processing sales, redemptions and
exchanges of shares of the fund; (ii) distributing dividends and capital gains
associated with the fund's portfolio; and (iii) maintaining account records and
responding to shareholder inquiries.

PIMSS receives an annual fee of $27.40 for each shareholder account from the
fund as compensation for the services described above. PIMSS is also reimbursed
by the fund for its cash out-of-pocket expenditures. The fund may compensate
entities which have agreed to provide certain sub-accounting services such as
specific transaction processing and recordkeeping services. Any such payments by
the fund would be in lieu of the per account fee which would otherwise be paid
by the fund to PIMSS.

7. CUSTODIAN

Brown Brothers Harriman & Co., 40 Water Street, Boston, Massachusetts 02109, is
the custodian of the fund's assets. The custodian's responsibilities include
safekeeping and controlling the fund's cash and securities, handling the receipt
and delivery of securities, and collecting interest and dividends on the fund's
investments.

8. INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Ernst & Young LLP, 200 Clarendon Street, Boston, Massachusetts 02116-5072, the
fund's independent registered public accounting firm, provides audit services,
tax return review, and assistance and consultation with respect to the review of
filings with the SEC.

9. PORTFOLIO MANAGEMENT

Additional Information About the Portfolio Managers

Other Accounts Managed by the Portfolio Managers. The table below indicates, for
each portfolio manager of the fund, information about the accounts other than
the fund over which the portfolio manager has day-to-day investment
responsibility. All information on the number of accounts and total assets in
the table is as of August 31, 2007. For purposes of the table, "Other Pooled
Investment Vehicles" may include investment partnerships, undertakings for
collective

investments in transferable securities ("UCITS") and other non-U.S. investment
funds and group trusts, and "Other Accounts" may include separate accounts for
institutions or individuals, insurance company general or separate accounts,
pension funds and other similar institutional accounts but generally do not
include the portfolio manager's personal investment accounts or those which the
manager may be deemed to own beneficially under the code of ethics. Certain
funds and other accounts managed by the portfolio manager may have substantially
similar investment strategies.

- -----------------------------------------------------------------------------------------------------------------------
Name of Type of Number of Total Assets Number of Assets
Portfolio Account Accounts Managed Accounts Managed for
Manager Managed Managed for which
which Advisory Fee
Advisory Fee is
is Performance-
Performance- Based
Based
- -----------------------------------------------------------------------------------------------------------------------

Richard Schlanger Other Registered 4 $2,206,040,000 N/A N/A
Investment
Companies
-------------------------------------------------------------------------------------------------
Other Pooled 0 $0 N/A N/A
Investment Vehicles
-------------------------------------------------------------------------------------------------
Other Accounts 0 $0 N/A N/A
- -----------------------------------------------------------------------------------------------------------------------

Charles Melchreit Other Registered 1 $222,067,167 N/A N/A
Investment
Companies
-------------------------------------------------------------------------------------------------
Other Pooled 1 $339,714,000 N/A N/A
Investment Vehicles
-------------------------------------------------------------------------------------------------
Other Accounts 1 $135,779,000 N/A N/A
- -----------------------------------------------------------------------------------------------------------------------

Potential Conflicts of Interest. When a portfolio manager is responsible for the
management of more than one account, the potential arises for the portfolio
manager to favor one account over another. The principal types of potential
conflicts of interest that may arise are discussed below.

For the reasons outlined below, Pioneer does not believe that any material
conflicts are likely to arise out of a portfolio manager's responsibility for
the management of the fund as well as one or more other accounts. Although
Pioneer has adopted procedures that it believes are reasonably designed to
detect and prevent violations of the federal securities laws and to mitigate the
potential for conflicts of interest to affect its portfolio management
decisions, there can be no assurance that all conflicts will be identified or
that all procedures will be effective in mitigating the potential for such
risks. Generally, the risks of such conflicts of interest are increased to the
extent that a portfolio manager has a financial incentive to favor one account
over another. Pioneer has structured its compensation arrangements in a manner
that is intended to limit such potential for conflicts of interest. See
"Compensation of Portfolio Managers" below.

o A portfolio manager could favor one account over another in allocating
new investment opportunities that have limited supply, such as initial
public offerings and private placements. If, for example, an initial
public offering was expected to appreciate in value significantly
shortly after the offering was allocated to a single account, that
account may be expected to have better investment performance than other
accounts that did not receive an allocation of the initial public
offering. Generally, investments for which there is limited availability
are allocated based upon a range of factors including available cash and
consistency with the accounts' investment objectives and policies. This
allocation methodology necessarily involves some subjective elements but
is intended over time to treat each client in an equitable and fair
manner. Generally, the investment opportunity is allocated among
participating accounts on a pro rata basis. Although Pioneer believes
that its practices are reasonably designed to treat each client in an
equitable and fair manner, there may be instances where a fund may not
participate, or may participate to a lesser degree than other clients,
in the allocation of an investment opportunity.

o A portfolio manager could favor one account over another in the order in
which trades for the accounts are placed. If a portfolio manager
determines to purchase a security for more than one account in an
aggregate amount that may influence the market price of the security,
accounts that purchased or sold the security first may receive a more
favorable price than accounts that made subsequent transactions. The
less liquid the market for the security or the greater the percentage
that the proposed aggregate purchases or sales represent of average
daily trading volume, the greater the potential for accounts that make
subsequent purchases or sales to receive a less favorable price. When a
portfolio manager intends to trade the same security on the same day for
more than one account, the trades typically are "bunched," which means
that the trades for the individual accounts are aggregated and each
account receives the same price. There are some types of accounts as to
which bunching may not be possible for contractual reasons (such as
directed brokerage arrangements). Circumstances may also arise where the
trader believes that bunching the orders may not result in the best
possible price. Where those accounts or circumstances are involved,
Pioneer will place the order in a manner intended to result in as
favorable a price as possible for such client.

o A portfolio manager could favor an account if the portfolio manager's
compensation is tied to the performance of that account to a greater
degree than other accounts managed by the portfolio manager. If, for
example, the portfolio manager receives a bonus based upon the
performance of certain accounts relative to a benchmark while other
accounts are disregarded for this purpose, the portfolio manager will
have a financial incentive to seek to have the accounts that determine
the portfolio manager's bonus achieve the best possible performance to
the possible detriment of other accounts. Similarly, if Pioneer receives
a performance-based advisory fee, the portfolio manager may favor that
account,

whether or not the performance of that account directly determines the
portfolio manager's compensation.

o A portfolio manager could favor an account if the portfolio manager has
a beneficial interest in the account, in order to benefit a large client
or to compensate a client that had poor returns. For example, if the
portfolio manager held an interest in an investment partnership that was
one of the accounts managed by the portfolio manager, the portfolio
manager would have an economic incentive to favor the account in which
the portfolio manager held an interest.

o If the different accounts have materially and potentially conflicting
investment objectives or strategies, a conflict of interest could arise.
For example, if a portfolio manager purchases a security for one account
and sells the same security for another account, such trading pattern
may disadvantage either the account that is long or short. In making
portfolio manager assignments, Pioneer seeks to avoid such potentially
conflicting situations. However, where a portfolio manager is
responsible for accounts with differing investment objectives and
policies, it is possible that the portfolio manager will conclude that
it is in the best interest of one account to sell a portfolio security
while another account continues to hold or increase the holding in such
security.

Compensation of Portfolio Managers. Pioneer has adopted a system of compensation
for portfolio managers that seeks to align the financial interests of the
portfolio managers with those of shareholders of the accounts (including Pioneer
funds) the portfolio managers manage, as well as with the financial performance
of Pioneer. The compensation program for all Pioneer portfolio managers includes
a base salary (determined by the rank and tenure of the employee) and an annual
bonus program, as well as customary benefits that are offered generally to all
full-time employees. Base compensation is fixed and normally reevaluated on an
annual basis. Pioneer seeks to set base compensation at market rates, taking
into account the experience and responsibilities of the portfolio manager. The
bonus plan is intended to provide a competitive level of annual bonus
compensation that is tied to the portfolio manager achieving superior investment
performance and align the interests of the investment professional with those of
shareholders, as well as with the financial performance of Pioneer. Any bonus
under the plan is completely discretionary, with a maximum annual bonus that may
be in excess of base salary. The annual bonus is based upon a combination of the
following factors:

o Quantitative Investment Performance. The quantitative investment
performance calculation is based on pre-tax investment performance of
all of the accounts managed by the portfolio manager (which includes the
fund and any other accounts managed by the portfolio manager) over a
one-year period (20% weighting) and four-year period (80% weighting),
measured for periods ending on December 31. The accounts, which include
the fund, are ranked against a group of mutual funds with similar
investment objectives and investment focus (60%) and a broad-based
securities market index measuring the performance of the same type of
securities in which the accounts invest (40%), which, in the case of the
fund, is the Lehman Brothers One- to Three-Year Government/Credit Index.
As a result of these two benchmarks, the performance of the portfolio
manager for compensation purposes is measured against the criteria that
are relevant to the portfolio manager's competitive universe.

o Qualitative Performance. The qualitative performance component with
respect to all of the accounts managed by the portfolio manager includes
objectives, such as effectiveness

in the areas of teamwork, leadership, communications and marketing, that
are mutually established and evaluated by each portfolio manager and
management.
o Pioneer Results and Business Line Results. Pioneer's financial
performance, as well as the investment performance of its investment
management group, affect a portfolio manager's actual bonus by a
leverage factor of plus or minus (+/-) a predetermined percentage.

The quantitative and qualitative performance components comprise 80% and 20%,
respectively, of the overall bonus calculation (on a pre-adjustment basis). A
portion of the annual bonus is deferred for a specified period and may be
invested in one or more Pioneer funds.

Certain portfolio managers may participate in other programs designed to reward
and retain key contributors. Senior executives or other key employees may be
granted performance units based on the stock price performance of UniCredito
Italiano and the financial performance of Pioneer Global Asset Management
S.p.A., which are affiliates of Pioneer. Portfolio managers also may participate
in a deferred compensation program, whereby deferred amounts are invested in one
or more Pioneer funds.

Share Ownership by Portfolio Managers. The following table indicates as of
August 31, 2007 the value, within the indicated range, of shares beneficially
owned by the portfolio managers of the fund.

- ------------------------------------------------------------------------------------------------------------
Name of Portfolio Manager Beneficial Ownership of the Fund*
- ------------------------------------------------------------------------------------------------------------

Richard Schlanger A
- ------------------------------------------------------------------------------------------------------------
Charles Melchreit A
- ------------------------------------------------------------------------------------------------------------

*Key to Dollar Ranges

A. None
B. $1 - $10,000
C. $10,001 - $50,000
D. $50,001 - $100,000
E. $100,001 - $500,000
F. $500,001 - $1,000,000
G. Over $1,000,000

10. PORTFOLIO TRANSACTIONS

All orders for the purchase or sale of portfolio securities are placed on behalf
of the fund by Pioneer pursuant to authority contained in the fund's management
contract. Securities purchased and sold on behalf of the fund normally will be
traded in the over-the-counter market on a net basis (i.e. without commission)
through dealers acting for their own account and not as brokers or otherwise
through transactions directly with the issuer of the instrument. The cost of
securities purchased from underwriters includes an underwriter's commission or
concession, and the prices at which securities are purchased and sold from and
to dealers include a dealer's markup or markdown. Pioneer normally seeks to deal
directly with the primary market makers unless, in its opinion, better prices
are available elsewhere. Pioneer seeks to obtain the best execution on portfolio
trades. The price of securities and any commission rate paid are always factors,
but

frequently not the only factors, in judging best execution. In selecting brokers
or dealers, Pioneer considers various relevant factors, including, but not
limited to, the size and type of the transaction; the nature and character of
the markets for the security to be purchased or sold; the execution efficiency,
settlement capability and financial condition of the dealer; the dealer's
execution services rendered on a continuing basis; and the reasonableness of any
dealer spreads. Transactions in non-U.S. equity securities are executed by
broker-dealers in non-U.S. countries in which commission rates may not be
negotiable (as such rates are in the U.S.).

Pioneer may select broker-dealers that provide brokerage and/or research
services to the fund and/or other investment companies or other accounts managed
by Pioneer over which it or its affiliates exercise investment discretion. In
addition, consistent with Section 28(e) of the Securities Exchange Act of 1934,
as amended, if Pioneer determines in good faith that the amount of commissions
charged by a broker-dealer is reasonable in relation to the value of the
brokerage and research services provided by such broker, the fund may pay
commissions to such broker-dealer in an amount greater than the amount another
firm may charge. Such services may include advice concerning the value of
securities; the advisability of investing in, purchasing or selling securities;
the availability of securities or the purchasers or sellers of securities;
providing stock quotation services, credit rating service information and
comparative fund statistics; furnishing analyses, electronic information
services, manuals and reports concerning issuers, industries, securities,
economic factors and trends, portfolio strategy, and performance of accounts and
particular investment decisions; and effecting securities transactions and
performing functions incidental thereto (such as clearance and settlement).
Pioneer maintains a listing of broker-dealers who provide such services on a
regular basis. However, because many transactions on behalf of the fund and
other investment companies or accounts managed by Pioneer are placed with
broker-dealers (including broker-dealers on the listing) without regard to the
furnishing of such services, it is not possible to estimate the proportion of
such transactions directed to such dealers solely because such services were
provided. Pioneer believes that no exact dollar value can be calculated for such
services.

The research received from broker-dealers may be useful to Pioneer in rendering
investment management services to the fund as well as other investment companies
or other accounts managed by Pioneer, although not all such research may be
useful to the fund. Conversely, such information provided by brokers or dealers
who have executed transaction orders on behalf of such other accounts may be
useful to Pioneer in carrying out its obligations to the fund. The receipt of
such research has not reduced Pioneer's normal independent research activities;
however, it enables Pioneer to avoid the additional expenses which might
otherwise be incurred if it were to attempt to develop comparable information
through its own staff.

The fund may participate in third-party brokerage and/or expense offset
arrangements to reduce the fund's total operating expenses. Pursuant to
third-party brokerage arrangements, the fund may incur lower expenses by
directing brokerage to third-party broker-dealers which have agreed to use part
of their commission to pay the fund's fees to service providers unaffiliated
with Pioneer or other expenses. Since the commissions paid to the third party
brokers reflect a commission cost that the fund would generally expect to incur
on its brokerage transactions but not necessarily the lowest possible
commission, this arrangement is intended to reduce the fund's operating expenses
without increasing the cost of its brokerage commissions. Since use of such
directed brokerage is subject to the requirement to achieve best execution in
connection with the fund's brokerage transactions, there can be no assurance
that such arrangements will be utilized. Pursuant to expense offset
arrangements, the fund may incur lower transfer agency expenses due to interest
earned on cash held with the transfer agent. See "Financial highlights" in the
prospectus(es).

See the table in "Annual Fee, Expense and Other Information" for aggregate
brokerage and underwriting commissions paid by the fund in connection with its
portfolio transactions during recently completed fiscal years. The Board of
Trustees periodically reviews Pioneer's performance of its responsibilities in
connection with the placement of portfolio transactions on behalf of the fund.

11. DESCRIPTION OF SHARES

As an open-end management investment company, the fund continuously offers its
shares to the public and under normal conditions must redeem its shares upon the
demand of any shareholder at the next determined net asset value per share less
any applicable CDSC. See "Sales Charges." When issued and paid for in accordance
with the terms of the prospectus and statement of additional information, shares
of the fund are fully paid and non-assessable. Shares will remain on deposit
with the fund's transfer agent and certificates will not normally be issued.

The Agreement and Declaration of Trust, dated as of April 5, 2004 (the
"Declaration of Trust"), as amended from time to time, permits the Board of
Trustees to authorize the issuance of an unlimited number of full and fractional
shares of beneficial interest which may be divided into such separate series as
the Trustees may establish. Currently, the Trust consists of only one series.
The Trustees may, however, establish additional series of shares and may divide
or combine the shares into a greater or lesser number of shares without thereby
changing the proportionate beneficial interests in the fund. The Declaration of
Trust further authorizes the Trustees to classify or reclassify any series of
the shares into one or more classes. Pursuant thereto, the Trustees have
authorized the issuance of the following classes of shares of the fund,
designated as Class A shares, Class B shares, Class C shares, Class R shares and
Class Y shares. Class R shares have not been issued as of the date of this
statement of additional information. Each share of a class of the fund
represents an equal proportionate interest in the assets of the fund allocable
to that class. Upon liquidation of the fund, shareholders of each class of the
fund are entitled to share pro rata in the fund's net assets allocable to such
class available for distribution to shareholders. The Trust reserves the right
to create and issue additional series or classes of shares, in which case the
shares of each class of a series would participate equally in the earnings,
dividends and assets allocable to that class of the particular series.

The shares of each class represent an interest in the same portfolio of
investments of the fund. Each class has equal rights as to voting, redemption,
dividends and liquidation, except that each class bears different distribution
and transfer agent fees and may bear other expenses properly attributable to the
particular class. Class A, Class B and Class C shareholders have exclusive
voting rights with respect to the respective Rule 12b-1 Plan adopted by holders
of those shares in connection with the distribution of shares.

Shareholders are entitled to one vote for each share held and may vote in the
election of Trustees and on other matters submitted to a meeting of
shareholders. Although Trustees are not elected annually by the shareholders,
shareholders have, under certain circumstances, the right to remove one or more
Trustees. The fund is not required, and does not intend, to hold annual
shareholder meetings although special meetings may be called from time to time,
including for the purpose of electing or removing Trustees, changing fundamental
investment restrictions or approving a management contract.

The shares of each series of the Trust are entitled to vote separately to
approve investment advisory agreements or changes in investment restrictions,
but shareholders of all series vote

together in the election and selection of Trustees and accountants. Shares of
all series of the Trust vote together as a class on matters that affect all
series of the Trust in substantially the same manner. As to matters affecting a
single series or class, shares of such series or class will vote separately. No
amendment adversely affecting the rights of shareholders may be made to the
Declaration of Trust without the affirmative vote of a majority of the Trust's
shares. Shares have no preemptive or conversion rights, except that under
certain circumstances Class B shares may convert to Class A shares.

As a Delaware statutory trust, the Trust's operations are governed by the
Declaration of Trust. A copy of the Trust's Certificate of Trust dated April 5,
2004 as amended, is on file with the office of the Secretary of State of
Delaware. Generally, Delaware statutory trust shareholders are not personally
liable for obligations of the Delaware statutory trust under Delaware law. The
Delaware Statutory Trust Act (the "Delaware Act") provides that a shareholder of
a Delaware statutory trust shall be entitled to the same limitation of liability
extended to shareholders of private for-profit corporations. The Declaration of
Trust expressly provides that the Trust is organized under the Delaware Act and
that the Declaration of Trust is to be governed by Delaware law. There is
nevertheless a possibility that a Delaware statutory trust, such as the Trust,
might become a party to an action in another state whose courts refuse to apply
Delaware law, in which case the Trust's shareholders could become subject to
personal liability.

To guard against this risk, the Declaration of Trust (i) contains an express
disclaimer of shareholder liability for acts or obligations of the Trust and
provides that notice of such disclaimer may be given in each agreement,
obligation or instrument entered into or executed by the Trust or its Trustees,
(ii) provides for the indemnification out of Trust property of any shareholders
held personally liable for any obligations of the Trust or any series of the
Trust and (iii) provides that the Trust shall, upon request, assume the defense
of any claim made against any shareholder for any act or obligation of the Trust
and satisfy any judgment thereon. Thus, the risk of a shareholder incurring
financial loss beyond his or her investment because of shareholder liability is
limited to circumstances in which all of the following factors are present: (1)
a court refused to apply Delaware law; (2) the liability arose under tort law
or, if not, no contractual limitation of liability was in effect; and (3) the
Trust itself would be unable to meet its obligations. In light of Delaware law,
the nature of the Trust's business and the nature of its assets, the risk of
personal liability to a fund shareholder is remote.

In addition to the requirements under Delaware law, the Declaration of Trust
provides that a shareholder of the Trust may bring a derivative action on behalf
of the fund only if the following conditions are met: (a) shareholders eligible
to bring such derivative action under Delaware law who hold at least 10% of the
outstanding shares of the Trust, or 10% of the outstanding shares of the series
or class to which such action relates, shall join in the request for the
Trustees to commence such action; and (b) the Trustees must be afforded a
reasonable amount of time to consider such shareholder request and investigate
the basis of such claim. The Trustees shall be entitled to retain counsel or
other advisers in considering the merits of the request and shall require an
undertaking by the shareholders making such request to reimburse the fund for
the expense of any such advisers in the event that the Trustees determine not to
bring such action.

The Declaration of Trust further provides that the Trust shall indemnify each of
its Trustees and officers against liabilities and expenses reasonably incurred
by them in connection with, or arising out of, any action, suit or proceeding,
threatened against or otherwise involving such Trustee or officer, directly or
indirectly, by reason of being or having been a Trustee or officer of the Trust.
The Declaration of Trust does not authorize the Trust to indemnify any Trustee
or

officer against any liability to which he or she would otherwise be subject by
reason of or for willful misfeasance, bad faith, gross negligence or reckless
disregard of such person's duties.

The Declaration of Trust provides that any Trustee who is not an "interested
person" of Pioneer shall be considered to be independent for purposes of
Delaware law notwithstanding the fact that such Trustee receives compensation
for serving as a Trustee of the Trust or other investment companies for which
Pioneer acts as investment adviser.

12. SALES CHARGES

The fund continuously offers the following classes of shares designated as Class
A, Class B, Class C, and Class Y as described in the prospectus. The fund offers
its shares at a reduced sales charge to investors who meet certain criteria that
permit the fund's shares to be sold with low distribution costs. These criteria
are described below or in the prospectus.

Class A Share Sales Charges

You may buy Class A shares at the public offering price, including a sales
charge, as follows:

Sales Charge as a % of
----------------------
Offering Net Amount Dealer
Amount of Purchase Price Invested Reallowance

Less than $50,000 2.50 2.56 2.00
$50,000 but less than $100,000 2.00 2.06 1.75
$100,000 but less than $250,000 1.50 1.52 1.25
$250,000 but less than $1 million 1.00 1.01 1.00
$1,000,000 or more 0.00 0.00 see below

The schedule of sales charges above is applicable to purchases of Class A shares
of the fund by (i) an individual, (ii) an individual and his or her spouse and
children under the age of 21 and (iii) a trustee or other fiduciary of a trust
estate or fiduciary account or related trusts or accounts including pension,
profit-sharing and other employee benefit trusts qualified under Sections 401 or
408 of the Code although more than one beneficiary is involved. The sales
charges applicable to a current purchase of Class A shares of the fund by a
person listed above is determined by adding the value of shares to be purchased
to the aggregate value (at the then current offering price) of shares of any of
the other Pioneer mutual funds previously purchased and then owned, provided PFD
is notified by such person or his or her broker-dealer each time a purchase is
made which would qualify. Pioneer mutual funds include all mutual funds for
which PFD serves as principal underwriter. At the sole discretion of PFD,
holdings of funds domiciled outside the U.S., but which are managed by
affiliates of Pioneer, may be included for this purpose.

No sales charge is payable at the time of purchase on investments of $1 million
or more, or for purchases by participants in employer-sponsored retirement plans
described below subject to a CDSC of 1% which may be imposed in the event of a
redemption of Class A shares within 18 months of purchase (one year of purchase
for shares purchased prior to February 1, 2004). PFD may, in its discretion, pay
a commission to broker-dealers who initiate and are responsible for such
purchases as follows:

Accounts Other than Employer-Sponsored Retirement Plans

1.00% Up to $4 million
0.50% Next $46 million
0.25% Over $50 million

Employer-Sponsored Retirement Plans

0.50% Up to $50 million
0.25% Over $50 million

These commissions shall not be payable if the purchaser is affiliated with the
broker-dealer or if the purchase represents the reinvestment of a redemption
made during the previous 12 calendar months. Broker-dealers who receive a
commission in connection with Class A share purchases at net asset value by
employer-sponsored retirement plans with at least $1 million in total plan
assets (or that has 1,000 or more eligible participants for employer-sponsored
retirement plans with accounts established with Pioneer on or before March 31,
2004) will be required to return any commissions paid or a pro rata portion
thereof if the retirement plan redeems its shares within 18 months of purchase.

Letter of Intent ("LOI"). Reduced sales charges are available for purchases of
$100,000 or more of Class A shares (excluding any reinvestments of dividends and
capital gain distributions) made within a 13-month period pursuant to an LOI
which may be established by completing the Letter of Intent section of the
Account Application. The reduced sales charge will be the charge that would be
applicable to the purchase of the specified amount of Class A shares as if the
shares had all been purchased at the same time. A purchase not made pursuant to
an LOI may be included if the LOI is submitted to PIMSS within 90 days of such
purchase. You may also obtain the reduced sales charge by including the value
(at current offering price) of all your Class A shares in the fund and all other
Pioneer mutual funds held of record as of the date of your LOI in the amount
used to determine the applicable sales charge for the Class A shares to be
purchased under the LOI. Five percent of your total intended purchase amount
will be held in escrow by PIMSS, registered in your name, until the terms of the
LOI are fulfilled. When you sign the Account Application, you agree to
irrevocably appoint PIMSS your attorney-in-fact to surrender for redemption any
or all shares held in escrow with full power of substitution. An LOI is not a
binding obligation upon the investor to purchase, or the fund to sell, the
amount specified in the LOI. Any share class for which no sales charge is paid
cannot be included under the LOI.

If the total purchases, less redemptions, exceed the amount specified under the
LOI and are in an amount that would qualify for a further quantity discount, all
transactions will be recomputed on the expiration date of the LOI to effect the
lower sales charge. Any difference in the sales charge resulting from such
recomputation will be either delivered to you in cash or invested in additional
shares at the lower sales charge. The dealer, by signing the Account
Application, agrees to return to PFD, as part of such retroactive adjustment,
the excess of the commission previously reallowed or paid to the dealer over
that which is applicable to the actual amount of the total purchases under the
LOI.

If the total purchases, less redemptions, are less than the amount specified
under the LOI, you must remit to PFD any difference between the sales charge on
the amount actually purchased and the amount originally specified in the LOI.
When the difference is paid, the shares held in escrow will be deposited to your
account. If you do not pay the difference in sales charge within 20 days after
written request from PFD or your dealer, PIMSS, after receiving instructions
from PFD, will redeem the appropriate number of shares held in escrow to realize
the difference and release any excess.

Class B Shares

You may buy Class B shares at the net asset value per share next computed after
receipt of a purchase order without the imposition of an initial sales charge;
however, Class B shares redeemed within three years of purchase will be subject
to a CDSC at the rates shown in the table below. The charge will be assessed on
the amount equal to the lesser of the current market value or the original
purchase cost of the shares being redeemed. No CDSC will be imposed on increases
in account value above the initial purchase price, including shares derived from
the reinvestment of dividends or capital gain distributions.

The amount of the CDSC, if any, will vary depending on the number of years from
the time of purchase until the time of redemption of Class B shares. In
processing redemptions of Class B shares, the fund will first redeem shares not
subject to any CDSC and then shares held longest during the three-year period.
As a result, you will pay the lowest possible CDSC.

The CDSC for Class B shares subject to a CDSC upon redemption will be determined
as follows:

CDSC as a % of Dollar
Year Since Purchase Amount Subject to CDSC

First 2.0
Second 2.0
Third 1.0
Fourth and thereafter 0.0

Proceeds from the CDSC are paid to PFD and are used in whole or in part to
defray PFD's expenses related to providing distribution-related services to the
fund in connection with the sale of Class B shares, including the payment of
compensation to broker-dealers.

Class B shares will automatically convert into Class A shares five years after
the purchase date, except as noted below. Class B shares acquired by exchange
from Class B shares of another Pioneer mutual fund will convert into Class A
shares based on the date of the initial purchase and the applicable CDSC. Class
B shares acquired through reinvestment of distributions will convert into Class
A shares over time in the same proportion as other shares held in the account.
For this purpose, Class B shares acquired through reinvestment of distributions
will be attributed to particular purchases of Class B shares in accordance with
such procedures as the Trustees may determine from time to time. The conversion
of Class B shares to Class A shares is subject to the continuing availability of
a ruling from the Internal Revenue Service (the "IRS") or an opinion of counsel
that such conversions will not constitute taxable events for U.S. federal income
tax purposes. The conversion of Class B shares to Class A shares will not occur
if such ruling or opinion is not available and, therefore, Class B shares would
continue to be subject to higher expenses than Class A shares for an
indeterminate period.

Class C Shares

You may buy Class C shares at net asset value per share next computed after
receipt of a purchase order without the imposition of an initial sales charge;
however, Class C shares redeemed within one year of purchase will be subject to
a CDSC of 1%. The charge will be assessed on the amount equal to the lesser of
the current market value or the original purchase cost of the shares being
redeemed. No CDSC will be imposed on increases in account value above the
initial purchase price, including shares derived from the reinvestment of
dividends or capital gain distributions. Class C shares do not convert to any
other class of fund shares.

In processing redemptions of Class C shares, the fund will first redeem shares
not subject to any CDSC and then shares held for the longest period of time
during the one-year period. As a result, you will pay the lowest possible CDSC.

Proceeds from the CDSC are paid to PFD and are used in whole or in part to
defray PFD's expenses related to providing distribution-related services to the
fund in connection with the sale of Class C shares, including the payment of
compensation to broker-dealers.

Class Y Shares

No front-end, deferred or asset based sales charges are applicable to Class Y
shares.

Additional Payments to Dealers

The financial intermediaries through which shares are purchased may receive all
or a portion of the sales charges and Rule 12b-1 fees discussed above. In
addition to those payments, Pioneer or one or more of its affiliates
(collectively, "Pioneer Affiliates") may make additional payments to financial
intermediaries in connection with the promotion and sale of shares of Pioneer
funds. Pioneer Affiliates make these payments from their own resources, which
include resources that derive from compensation for providing services to the
Pioneer funds. These additional payments are described below. The categories
described below are not mutually exclusive. The same financial intermediary may
receive payments under more than one or all categories. Many financial
intermediaries that sell shares of Pioneer funds receive one or more types of
these payments. The financial intermediary typically initiates requests for
additional compensation. Pioneer negotiates these arrangements individually with
financial intermediaries and the amount of payments and the specific
arrangements may differ significantly. A financial intermediary also may receive
different levels of compensation with respect to sales or assets attributable to
different types of clients of the same intermediary or different Pioneer funds.
Where services are provided, the costs of providing the services and the overall
array of services provided may vary from one financial intermediary to another.
Pioneer Affiliates do not make an independent assessment of the cost of
providing such services. While the financial intermediaries may request
additional compensation from Pioneer to offset costs incurred by the financial
intermediary in servicing its clients, the financial intermediary may earn a
profit on these payments, since the amount of the payment may exceed the
financial intermediary's costs. In this context, "financial intermediary"
includes any broker, dealer, bank (including bank trust departments), insurance
company, transfer agent, registered investment adviser, financial planner,
retirement plan administrator and any other financial intermediary having a
selling, administrative and shareholder servicing or similar agreement with a
Pioneer Affiliate.

A financial intermediary's receipt of additional compensation may create
conflicts of interest between the financial intermediary and its clients. Each
type of payment discussed below may

provide your financial intermediary with an economic incentive to actively
promote the Pioneer funds over other mutual funds or cooperate with the
distributor's promotional efforts. The receipt of additional compensation for
Pioneer Affiliates may be an important consideration in a financial
intermediary's willingness to support the sale of the Pioneer funds through the
financial intermediary's distribution system. Pioneer Affiliates are motivated
to make the payments described above since they promote the sale of Pioneer fund
shares and the retention of those investments by clients of financial
intermediaries. In certain cases these payments could be significant to the
financial intermediary. The financial intermediary may charge additional fees or
commissions other than those disclosed in the prospectus. Financial
intermediaries may categorize and disclose these arrangements differently than
Pioneer Affiliates do. To the extent financial intermediaries sell more shares
of the funds or retain shares of the funds in their clients' accounts, Pioneer
Affiliates benefit from the incremental management and other fees paid to
Pioneer Affiliates by the funds with respect to those assets.

Revenue Sharing Payments. Pioneer Affiliates make revenue sharing payments as
incentives to certain financial intermediaries to promote and sell shares of
Pioneer funds. The benefits Pioneer Affiliates receive when they make these
payments include, among other things, entry into or increased visibility in the
financial intermediary's sales system, participation by the intermediary in the
distributor's marketing efforts (such as helping facilitate or providing
financial assistance for conferences, seminars or other programs at which
Pioneer personnel may make presentations on the funds to the intermediary's
sales force), placement on the financial intermediary's preferred fund list, and
access (in some cases, on a preferential basis over other competitors) to
individual members of the financial intermediary's sales force or management.
Revenue sharing payments are sometimes referred to as "shelf space" payments
because the payments compensate the financial intermediary for including Pioneer
funds in its fund sales system (on its "shelf space"). Pioneer Affiliates
compensate financial intermediaries differently depending typically on the level
and/or type of considerations provided by the financial intermediary.

The revenue sharing payments Pioneer Affiliates make may be calculated on sales
of shares of Pioneer funds ("Sales-Based Payments"); although there is no policy
limiting the amount of Sales-Based Payments any one financial intermediary may
receive, the total amount of such payments normally does not exceed 0.25% per
annum of those assets. Such payments also may be calculated on the average daily
net assets of the applicable Pioneer funds attributable to that particular
financial intermediary ("Asset-Based Payments"); although there is no policy
limiting the amount of Asset-Based Payments any one financial intermediary may
receive, the total amount of such payments normally does not exceed 0.15% per
annum of those assets. Sales-Based Payments primarily create incentives to make
new sales of shares of Pioneer funds and Asset-Based Payments primarily create
incentives to retain previously sold shares of Pioneer funds in investor
accounts. Pioneer Affiliates may pay a financial intermediary either or both
Sales-Based Payments and Asset-Based Payments.

Administrative and Processing Support Payments. Pioneer Affiliates also may make
payments to certain financial intermediaries that sell Pioneer fund shares for
certain administrative services, including record keeping and sub-accounting
shareholder accounts, to the extent that the funds do not pay for these costs
directly. Pioneer Affiliates also may make payments to certain financial
intermediaries that sell Pioneer fund shares in connection with client account
maintenance support, statement preparation and transaction processing. The types
of payments that Pioneer Affiliates may make under this category include, among
others, payment of ticket charges per purchase or exchange order placed by a
financial intermediary, payment of networking fees in connection with certain
mutual fund trading systems, or one-time payments

for ancillary services such as setting up funds on a financial intermediary's
mutual fund trading system.

Other Payments. From time to time, Pioneer Affiliates, at their expense, may
provide additional compensation to financial intermediaries which sell or
arrange for the sale of shares of the Pioneer funds. Such compensation provided
by Pioneer Affiliates may include financial assistance to financial
intermediaries that enable Pioneer Affiliates to participate in and/or present
at conferences or seminars, sales or training programs for invited registered
representatives and other employees, client entertainment, client and investor
events, and other financial intermediary-sponsored events, and travel expenses,
including lodging incurred by registered representatives and other employees in
connection with client prospecting, retention and due diligence trips. Other
compensation may be offered to the extent not prohibited by federal or state
laws or any self-regulatory agency, such as FINRA. Pioneer Affiliates make
payments for entertainment events they deem appropriate, subject to Pioneer
Affiliates' guidelines and applicable law. These payments may vary depending
upon the nature of the event or the relationship.

As of January 1, 2007, Pioneer anticipates that the following broker-dealers or
their affiliates will receive additional payments as described in the fund's
prospectuses and statement of additional information:

A.G. Edwards & Sons Inc.
ADP Clearing & Outsourcing Services
AIG VALIC
Ameriprise Financial Services, Inc.
AmSouth Investment Services, Inc.
AXA Advisors, LLC
Bear, Stearns & Co. Inc.
Charles Schwab & Co., Inc.
Chevy Chase Securities, Inc.
Citigroup Global Markets Inc.
Citistreet Equities LLC
Commonwealth Financial Network
D.A. Davidson & Co.
StateplaceDelaware Distributors, L.P.
Edward D. Jones & Co., L.P.
Eisner Retirement Solutions LLC
Ferris, Baker Watts Inc.
Fidelity Brokerage Services LLC
First Clearing, LLC
First Command Financial Planning, Inc.
H&R Block Financial Advisors, Inc.
Hewitt Financial Services LLC
ING
J.J.B. Hilliard, W.L Lyons, Inc.
Janney Montgomery Scott LLC
Jefferson National Securities Corporation
Legend Equities Corporation
CityplaceLincoln Investment Planning, Inc.
Linsco/Private Ledger Corp.
McDonald Investments Inc.

Merrill Lynch & Co., Inc.
Mesirow Financial, Inc.
MetLife Securities Inc.
Morgan Stanley DW Inc.
Mutual of Omaha Investor Services, Inc.
Mutual Services Corporation
N.I.S. Financial Services, Inc.
National Financial Services LLC
National Investor Services Corp.
Nationwide Securities, Inc.
OneAmerica Securities, Inc.
Oppenheimer & Co., Inc.
Pershing LLC
PFS Investments Inc
Prudential Financial
Primevest Financial Services, Inc.
Raymond James Financial Services, Inc.
RBC Dain Rauscher Inc.
Reliance Securities, LLC
Robert W. Baird & Co., Inc.
Scott and Stringfellow, Inc.
Scottrade, Inc.
Securities America, Inc.
Southwest Securities, Inc.
Sterne Agee & Leach, Inc.
Stifel Nicholas & Company, Inc.
Symetra Investment Services, Inc.
UnionBanc Investment Services LLC
UBS Financial Services Inc.
Wachovia Securities
Wells Fargo Investments, LLC

Please contact your financial intermediary for details about any payments it
receives from Pioneer Affiliates or the funds, as well as about fees and/or
commissions it charges.

13. REDEEMING SHARES

Redemptions may be suspended or payment postponed during any period in which any
of the following conditions exist: the New York Stock Exchange (the "Exchange")
is closed or trading on the Exchange is restricted; an emergency exists as a
result of which disposal by the fund of securities owned by it is not reasonably
practicable or it is not reasonably practicable for the fund to fairly determine
the value of the net assets of its portfolio; or the SEC, by order, so permits.

Redemptions and repurchases are taxable transactions for shareholders that are
subject to U.S. federal income tax. The net asset value per share received upon
redemption or repurchase may be more or less than the cost of shares to an
investor, depending on the market value of the portfolio at the time of
redemption or repurchase.

Systematic Withdrawal Plan(s) ("SWP") (Class A, B, and C shares). A SWP is
designed to provide a convenient method of receiving fixed payments at regular
intervals from fund share accounts having a total value of not less than
$10,000. You must also be reinvesting all dividends and capital gain
distributions to use the SWP option.

Periodic payments of $50 or more will be deposited monthly, quarterly,
semiannually or annually directly into a bank account designated by the
applicant or will be sent by check to the applicant, or any person designated by
the applicant. Payments can be made either by check or electronic funds transfer
to a bank account designated by you. Withdrawals from Class B and Class C share
accounts are limited to 10% of the value of the account at the time the SWP is
established. See "Qualifying for a reduced sales charge" in the prospectus. If
you direct that withdrawal payments be paid to another person, want to change
the bank where payments are sent or designate an address that is different from
the account's address of record after you have opened your account, a medallion
signature guarantee must accompany your instructions. Withdrawals under the SWP
are redemptions that may have tax consequences for you.

While you are making systematic withdrawals from your account, you may pay
unnecessary initial sales charges on additional purchases of Class A shares or
contingent deferred sales charges. SWP redemptions reduce and may ultimately
exhaust the number of shares in your account. In addition, the amounts received
by a shareholder cannot be considered as yield or income on his or her
investment because part of such payments may be a return of his or her
investment.

A SWP may be terminated at any time (1) by written notice to PIMSS or from PIMSS
to the shareholder; (2) upon receipt by PIMSS of appropriate evidence of the
shareholder's death; or (3) when all shares in the shareholder's account have
been redeemed.

You may obtain additional information by calling PIMSS at 1-800-225-6292.

Reinstatement Privilege (Class A and Class B Shares). Subject to the provisions
outlined in the prospectus, you may reinvest all or part of your sale proceeds
from Class A and Class B shares without a sales charge into Class A shares of a
Pioneer mutual fund. However, the distributor will not pay your investment firm
a commission on any reinvested amount.

14. TELEPHONE AND ONLINE TRANSACTIONS

You may purchase, exchange or sell Class A, Class B or Class C shares by
telephone or online. Class Y shares may not be purchased by telephone, and Class
Y shareowners are not eligible for on line transaction privileges. See the
prospectus for more information. For personal assistance, call 1-800-225-6292
between 8:00 a.m. and 7:00 p.m. (Class Y account holders should contact
Pioneer's Group Plans Department at 1-800-665-8839 between 9:00 a.m. and 5:30
p.m.) Eastern time on weekdays. Computer-assisted telephone transactions may be
available to shareholders who have prerecorded certain bank information (see
"FactFone(SM)"). You are strongly urged to consult with your investment
professional prior to requesting any telephone or online transaction.

Telephone Transaction Privileges. To confirm that each transaction instruction
received by telephone is genuine, the fund will record each telephone
transaction, require the caller to provide validating information for the
account and send you a written confirmation of each telephone transaction.
Different procedures may apply to accounts that are registered to non-U.S.
citizens or

that are held in the name of an institution or in the name of an investment
broker-dealer or other third party. If reasonable procedures, such as those
described above, are not followed, the fund may be liable for any loss due to
unauthorized or fraudulent instructions. The fund may implement other procedures
from time to time. In all other cases, neither the fund, PIMSS nor PFD will be
responsible for the authenticity of instructions received by telephone;
therefore, you bear the risk of loss for unauthorized or fraudulent telephone
transactions.

Online Transaction Privileges. If your account is registered in your name, you
may be able buy, exchange or sell fund shares online. Your investment firm may
also be able to buy, exchange or sell your fund shares online.

To establish online transaction privileges:
|_| For new accounts, complete the online section of the account application

|_| For existing accounts, complete an account options form, write to the
transfer agent or complete the online authorization screen on
www.pioneerinvestments.com

To use online transactions, you must read and agree to the terms of an online
transaction agreement available on the Pioneer website. When you or your
investment firm requests an online transaction the transfer agent electronically
records the transaction, requires an authorizing password and sends a written
confirmation. The fund may implement other procedures from time to time.
Different procedures may apply if you have a non-U.S. account or if your account
is registered in the name of an institution, broker-dealer or other third party.
You may not be able to use the online transaction privilege for certain types of
accounts, including most retirement accounts.

Telephone and Website Online Access. You may have difficulty contacting the fund
by telephone or accessing www.pioneerinvestments.com during times of market
volatility or disruption in telephone or Internet services. On Exchange holidays
or on days when the Exchange closes early, Pioneer will adjust the hours for the
telephone center and for online transaction processing accordingly. If you are
unable to access www.pioneerinvestments.com or to reach the fund by telephone,
you should communicate with the fund in writing.

FactFone(SM). FactFone(SM) is an automated inquiry and telephone transaction
system available to Pioneer mutual fund shareholders by dialing 1-800-225-4321.
FactFone(SM) allows shareholder access to current information on Pioneer mutual
fund accounts and to the prices and yields of all publicly available Pioneer
mutual funds. In addition, you may use FactFone(SM) to make computer-assisted
telephone purchases, exchanges or redemptions from your Pioneer mutual fund
accounts, access your account balances and last three transactions and order a
duplicate statement if you have activated your PIN. Telephone purchases or
redemptions require the establishment of a bank account of record.
Computer-assisted Class Y share telephone purchases, exchanges and redemptions
and certain other FactFone(SM) features for Class Y shareholders are not
currently available through FactFone(SM). You are strongly urged to consult with
your investment professional prior to requesting any telephone transaction.
Shareholders whose accounts are registered in the name of a broker-dealer or
other third party may not be able to use FactFone(SM). Call PIMSS for
assistance.

FactFone(SM) allows shareholders to hear the following recorded fund
information:

o net asset value prices for all Pioneer mutual funds;

o annualized 30-day yields on Pioneer's fixed income funds;

o annualized 7-day yields and 7-day effective (compound) yields for
Pioneer's money market funds; and

o dividends and capital gain distributions on all Pioneer mutual funds.

Yields are calculated in accordance with SEC mandated standard formulas.

All performance numbers communicated through FactFone(SM) represent past
performance, and figures include the maximum applicable sales charge. A
shareholder's actual yield and total return will vary with changing market
conditions. The value of each class of shares (except for Pioneer Cash Reserves
Fund, Pioneer Institutional Money Market Fund, Pioneer Tax Free Money Market
Fund and Pioneer Treasury Reserves Fund, which each seek to maintain a stable
$1.00 share price) will also vary, and such shares may be worth more or less at
redemption than their original cost.

15. PRICING OF SHARES

The net asset value per share of each class of the fund is determined as of the
close of regular trading on the Exchange (normally 4:00 p.m. Eastern time) on
each day on which the Exchange is open for trading. As of the date of this
statement of additional information, the Exchange is open for trading every
weekday except for the days the following holidays are observed: New Year's Day,
Martin Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas Day. The net asset
value per share of each class of the fund is also determined on any other day on
which the level of trading in its portfolio securities is sufficiently high that
the current net asset value per share might be materially affected by changes in
the value of its portfolio securities. The fund is not required to determine its
net asset value per share on any day on which no purchase orders in good order
for fund shares are received and no shares are tendered and accepted for
redemption.

Ordinarily, investments in debt securities are valued on the basis of
information furnished by a pricing service which utilizes primarily a matrix
system (which reflects such factors as security prices, yields, maturities and
ratings), supplemented by dealer and exchange quotations. Other securities are
valued at the last sale price on the principal exchange or market where they are
traded. Cash equivalent securities with remaining maturities of 60 days or less
are valued at amortized cost, which is a method of determining a security's fair
value. Securities which have not traded on the date of valuation or securities
for which sales prices are not generally reported are valued at the mean between
the current bid and asked prices.

Securities quoted in foreign currencies are converted to U.S. dollars utilizing
foreign exchange rates employed by the fund's independent pricing services.
Generally, trading in non U.S. securities is substantially completed each day at
various times prior to the close of regular trading on the Exchange. The values
of such securities used in computing the net asset value of the fund's shares
are determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of regular trading on the Exchange.
Occasionally, events which affect the values of such securities and such
exchange rates may occur between the times at which they are determined and the
close of regular trading on the Exchange and will therefore not be reflected in
the computation of the fund's net asset value. International securities markets
may be open on days when the U.S. markets are closed. For this reason, the value
of any international securities owned by the fund could change on a day you
cannot buy or sell shares of the fund.

When prices determined using the foregoing methods are not available or are
considered by Pioneer to be unreliable, the fund uses fair value pricing methods
to value its securities. Fair value is the valuation of a security determined on
the basis of factors other than market value in accordance with procedures
approved by the fund's trustees. The fund also may use fair value pricing
methods to value its securities, including a non-U.S. security, when Pioneer
determines that prices determined using the foregoing methods no longer
accurately reflect the value of the security due to factors affecting one or
more relevant securities markets or the specific issuer. The use of fair value
pricing methods by the fund may cause the net asset value of its shares to
differ from the net asset value that would be calculated using closing market
prices. In connection with making fair value determinations of the value of
fixed income securities, the fund may use a pricing matrix.

The net asset value per share of each class of the fund is computed by taking
the value of all of the fund's assets attributable to a class, less the fund's
liabilities attributable to that class, and dividing the result by the number of
outstanding shares of that class. For purposes of determining net asset value,
expenses of the classes of the fund are accrued daily and taken into account.
The fund's maximum offering price per Class A share is determined by adding the
maximum sales charge to the net asset value per Class A share. Class B, Class C,
and Class Y shares are offered at net asset value without the imposition of an
initial sales charge (Class B and Class C shares may be subject to a CDSC).

16. TAX STATUS

The fund is treated as a separate entity for U.S. federal income tax purposes.
The fund has elected to be treated, and has qualified and intends to continue to
qualify each year, as a "regulated investment company" under Subchapter M of the
Internal Revenue Code of 1986, as amended (the "Code") so that it will not pay
U.S. federal income tax on income and capital gains distributed to shareholders.
In order to qualify as a regulated investment company under Subchapter M of the
Code, the fund must, among other things, (i) derive at least 90% of its gross
income for each taxable year from dividends, interest, payments with respect to
certain securities loans, gains from the sale or other disposition of stock,
securities or foreign currencies, or other income (including gains from options,
futures and forward contracts) derived with respect to its business of investing
in such stock, securities or currencies, and net income derived from an interest
in a qualified publicly traded partnership (as defined in Section 851(h) of the
Code) (the "90% income test") and (ii) diversify its holdings so that, at the
end of each quarter of each taxable year: (a) at least 50% of the value of the
fund's total assets is represented by (1) cash and cash items, U.S. government
securities, securities of other regulated investment companies, and (2) other
securities, with such other securities limited, in respect of any one issuer, to
an amount not greater than 5% of the value of the fund's total assets and to not
more than 10% of the outstanding voting securities of such issuer and (b) not
more than 25% of the value of the fund's total assets is invested in (1) the
securities (other than U.S. government securities and securities of other
regulated investment companies) of any one issuer, (2) the securities (other
than securities of other regulated investment companies) of two or more issuers
that the fund controls and that are engaged in the same, similar, or related
trades or businesses, or (3) the securities of one or more qualified publicly
traded partnerships.

For purposes of the 90% income test, the character of income earned by certain
entities in which the fund invests that are not treated as corporations for U.S.
federal income tax purposes (e.g., partnerships (other than qualified publicly
traded partnerships) or trusts that have not elected to be

classified as corporations under the "check-the-box" regulations) will generally
pass through to the fund. Consequently, in order to qualify as a regulated
investment company, the fund may be required to limit its equity investments in
such entities that earn fee income, rental income or other nonqualifying income.

If the fund qualifies as a regulated investment company and properly distributes
to its shareholders each taxable year an amount equal to or exceeding the sum of
(i) 90% of its "investment company taxable income" as that term is defined in
the Code (which includes, among other things, dividends, taxable interest, and
the excess of any net short-term capital gains over net long-term capital
losses, as reduced by certain deductible expenses) without regard to the
deduction for dividends paid and (ii) 90% of the excess of its gross tax-exempt
interest income, if any, over certain disallowed deductions, the fund generally
will not be subject to U.S. federal income tax on any income of the fund,
including "net capital gain" (the excess of net long-term capital gain over net
short-term capital loss), distributed to shareholders. However, if the fund
meets such distribution requirements, but chooses to retain some portion of its
taxable income or gains, it generally will be subject to U.S. federal income tax
at regular corporate rates on the amount retained. The fund may designate
certain amounts retained as undistributed net capital gain in a notice to its
shareholders, who (i) will be required to include in income for U.S. federal
income tax purposes, as long-term capital gain, their proportionate shares of
the undistributed amount so designated, (ii) will be entitled to credit their
proportionate shares of the income tax paid by the fund on that undistributed
amount against their federal income tax liabilities and to claim refunds to the
extent such credits exceed their liabilities and (iii) will be entitled to
increase their tax basis, for federal income tax purposes, in their shares by an
amount equal to the excess of the amount of undistributed net capital gain
included in their respective income over their respective income tax credit. The
fund intends to distribute at least annually all or substantially all of its
investment company taxable income (computed without regard to the dividends-paid
deduction), net tax-exempt interest income, and net capital gain. If the fund
does not qualify as a regulated investment company for any taxable year, it will
be treated as a U.S. corporation subject to U.S. federal income tax, thereby
subjecting any income earned by the fund to tax at the corporate level and to a
further tax at the shareholder level when such income is distributed.

Under the Code, the fund will be subject to a nondeductible 4% U.S. federal
excise tax on a portion of its undistributed ordinary income and capital gain
net income if it fails to meet certain distribution requirements with respect to
the year ending October 31. The fund intends to make distributions in a timely
manner and accordingly does not expect to be subject to the excise tax.

The fund declares a dividend from any net investment income (other than capital
gains) each business day. Dividends are normally paid on the last business day
of the month or shortly thereafter. The fund distributes any net short- and
long-term capital gains in November. Dividends from income and/or capital gains
may also be paid at such other times as may be necessary for the fund to avoid
U.S. federal income or excise tax.

Unless a shareholder specifies otherwise, all distributions from the fund to
that shareholder will be automatically reinvested in additional full and
fractional shares of the fund. For U.S. federal income tax purposes, all
dividends generally are taxable whether a shareholder takes them in cash or
reinvests them in additional shares of the fund. In general, assuming that the
fund has sufficient earnings and profits, dividends from net investment income
and net short-term capital gains are taxable as ordinary income.

Distributions by the fund in excess of the fund's current and accumulated
earnings and profits will be treated as a return of capital to the extent of
(and in reduction of) the shareholder's tax

basis in its shares and any such amount in excess of that basis will be treated
as gain from the sale of shares, as discussed below. Since the fund's income is
derived primarily from sources that do not pay "qualified dividend income,"
dividends from the fund generally will not qualify for taxation at the reduced
rates available to individuals on qualified dividend income.

Distributions from net capital gains, if any, that are designated as capital
gain dividends by the fund are taxable as long-term capital gains for U.S.
federal income tax purposes without regard to the length of time the shareholder
has held shares of the fund. Capital gain dividends distributed by the fund to
individual shareholders generally will qualify for reduced U.S. federal income
tax rates (currently, a maximum rate of 15%, with lower rates applying to
taxpayers in the 10% and 15% rate brackets) on long-term capital gains, subject
to certain limited exceptions. A shareholder should also be aware that the
benefits of the favorable tax rate applicable to long-term capital gains may be
affected by the application of the alternative minimum tax to individual
shareholders. Under current law, the reduced maximum 15% U. S. federal income
tax rate on long-term capital gains will not apply in taxable years beginning
after December 31, 2010.

The U.S. federal income tax status of all distributions will be reported to
shareholders annually.

The fund's dividends and distributions will not qualify to any material extent
for any dividends-received deduction that might otherwise be available for
certain dividends received by shareholders that are corporations.

Although dividends generally will be treated as distributed when paid, any
dividend declared by the fund as of a record date in October, November or
December and paid during the following January will be treated for U.S. federal
income tax purposes as received by shareholders on December 31 of the calendar
year in which it is declared. In addition, certain other distributions made
after the close of a taxable year of the fund may be "spilled back" and treated
for certain purposes as paid by the fund during such taxable year. In such case,
shareholders generally will be treated as having received such dividends in the
taxable year in which the distributions were actually made. For purposes of
calculating the amount of a regulated investment company's undistributed income
and gain subject to the 4% excise tax described above, such "spilled back"
dividends are treated as paid by the regulated investment company when they are
actually paid.

For U.S. federal income tax purposes, the fund is permitted to carry forward a
net capital loss for any year to offset its capital gains, if any, for up to
eight years following the year of the loss. To the extent subsequent capital
gains are offset by such losses, they would not result in U.S. federal income
tax liability to the fund and are not expected to be distributed as such to
shareholders. See "Annual Fee, Expense and Other Information" for the fund's
available capital loss carryforwards.

At the time of an investor's purchase of fund shares, a portion of the purchase
price may be attributable to realized or unrealized appreciation in the fund's
portfolio or undistributed taxable income of the fund. Consequently, subsequent
distributions by the fund with respect to these shares from such appreciation or
income may be taxable to such investor even if the net asset value of the
investor's shares is, as a result of the distributions, reduced below the
investor's cost for such shares and the distributions economically represent a
return of a portion of the investment.

Redemptions and exchanges generally are taxable events for shareholders that are
subject to tax. Shareholders should consult their own tax advisers with
reference to their individual

circumstances to determine whether any particular transaction in fund shares is
properly treated as a sale for tax purposes, as the following discussion
assumes, and the tax treatment of any gains or losses recognized in such
transactions. In general, if fund shares are sold, the shareholder will
recognize gain or loss equal to the difference between the amount realized on
the sale and the shareholder's adjusted basis in the shares. Provided the
shareholder holds the fund shares as capital assets, such gain or loss generally
will be treated as long-term capital gain or loss if the shares were held for
more than one year and otherwise generally will be treated as short-term capital
gain or loss. Any loss recognized by a shareholder upon the redemption, exchange
or other disposition of shares with a tax holding period of six months or less
will be treated as a long-term capital loss to the extent of any amounts treated
as distributions of long-term capital gain with respect to such shares (or
amounts credited to the shareholder as an undistributed capital gain). Losses on
redemptions or other dispositions of shares may be disallowed under "wash sale"
rules in the event of other investments in the fund (including those made
pursuant to reinvestment of dividends and/or capital gain distributions) within
a period of 61 days beginning 30 days before and ending 30 days after a
redemption or other disposition of shares. In such a case, the disallowed
portion of any loss generally would be included in the U.S. federal tax basis of
the shares acquired in the other investments. Shareholders should consult their
tax advisers with reference to their individual circumstances to determine
whether any particular transaction in fund shares is properly treated as a sale
for tax purposes, and the tax treatment of any gains or losses recognized in
such transactions.

Gain may be increased (or loss reduced) upon a redemption of Class A or Class B
shares of the fund within 90 days after their purchase followed by any purchase
(including purchases by exchange or by reinvestment), without payment of an
additional sales charge, of Class A shares of the fund or of another Pioneer
fund (or any other shares of a Pioneer fund generally sold subject to a sales
charge).

Under Treasury regulations, if a shareholder recognizes a loss with respect to
fund shares of $2 million or more for an individual shareholder, or $10 million
or more for a corporate shareholder, in any single taxable year (or greater
amounts over a combination of years), the shareholder must file with the IRS a
disclosure statement on Form 8886. Shareholders who own portfolio securities
directly are in many cases excepted from this reporting requirement but, under
current guidance, shareholders of regulated investment companies are not
excepted. A shareholder who fails to make the required disclosure to the IRS may
be subject to substantial penalties. The fact that a loss is reportable under
these regulations does not affect the legal determination of whether or not the
taxpayer's treatment of the loss is proper. Shareholders should consult with
their tax advisers to determine the applicability of these regulations in light
of their individual circumstances.

Foreign exchange gains and losses realized by the fund in connection with
certain transactions involving foreign currency-denominated debt securities,
certain options and futures contracts relating to foreign currency, foreign
currency forward contracts, foreign currencies, or payables or receivables
denominated in a foreign currency are subject to Section 988 of the Code, which
generally causes such gains and losses to be treated as ordinary income and
losses and may affect the amount, timing and character of distributions to
shareholders. Under Treasury regulations that may be promulgated in the future,
any gains from such transactions that are not directly related to the fund's
principal business of investing in stock or securities (or its options contracts
or futures contracts with respect to stock or securities) may have to be limited
in order to enable the fund to satisfy the 90% income test. If the net foreign
exchange loss for a year were to exceed the fund's investment company taxable
income (computed without regard to such loss), the resulting ordinary loss for
such year would not be deductible by the fund or its shareholders in future
years.

If the fund acquires any equity interest (under Treasury regulations that may be
promulgated in the future, generally including not only stock but also an option
to acquire stock such as is inherent in a convertible bond) in certain foreign
corporations (i) that receive at least 75% of their annual gross income from
passive sources (such as interest, dividends, certain rents and royalties, or
capital gains) or (ii) where at least 50% of the corporation's assets (computed
based on average fair market value) either produce or are held for the
production of passive income ("passive foreign investment companies"), the fund
could be subject to U.S. federal income tax and additional interest charges on
"excess distributions" received from such companies or on gain from the sale of
stock in such companies, even if all income or gain actually received by the
fund is timely distributed to its shareholders. The fund would not be able to
pass through to its shareholders any credit or deduction for such a tax. A
"qualified electing fund" election or a "mark to market" election may generally
be available that would ameliorate these adverse tax consequences, but such
elections could require the fund to recognize taxable income or gain (subject to
the distribution requirements applicable to regulated investment companies, as
described above) without the concurrent receipt of cash. In order to satisfy the
distribution requirements and avoid a tax on the fund, the fund may be required
to liquidate portfolio securities that it might otherwise have continued to
hold, potentially resulting in additional taxable gain or loss to the fund.
These investments could also result in the treatment of gains from the sale of
stock of passive foreign investment companies as ordinary income. In order for
the fund to make a "qualified electing fund" election with respect to a "passive
foreign investment company", the passive foreign investment company would have
to agree to provide certain tax information to the fund on an annual basis,
which it might not agree to do. The fund may limit and/or manage its holdings in
passive foreign investment companies to limit its tax liability or maximize its
return from these investments.

The fund may invest in or hold debt obligations of issuers not currently paying
interest or who are in default. Investments in debt obligations that are at risk
of or in default present special tax issues for the fund. Federal income tax
rules are not entirely clear about issues such as when the fund may cease to
accrue interest, original issue discount or market discount, when and to what
extent deductions may be taken for bad debts or worthless securities, how
payments received on obligations in default should be allocated between
principal and interest and whether exchanges of debt obligations in a workout
context are taxable. These and other issues will be addressed by the fund, in
the event it invests in or holds such securities, in order to seek to ensure
that it distributes sufficient income to preserve its status as a regulated
investment company and does not become subject to U.S. federal income or excise
tax.

If the fund invests in certain pay-in-kind securities, zero coupon securities,
deferred interest securities or, in general, any other securities with original
issue discount (or with market discount if the fund elects to include market
discount in income currently), the fund generally must accrue income on such
investments for each taxable year, which generally will be prior to the receipt
of the corresponding cash payments. However, the fund must distribute to its
shareholders, at least annually, all or substantially all of its investment
company taxable income (determined without regard to the deduction for dividends
paid), including such accrued income, to qualify as a regulated investment
company under the Code and avoid U.S. federal income and excise taxes.
Therefore, the fund may have to dispose of its portfolio securities, potentially
under disadvantageous circumstances, to generate cash, or may have to borrow the
cash, to satisfy distribution requirements. Such a disposition of securities may
potentially result in additional taxable gain or loss to the fund.

Options written or purchased and futures contracts entered into by the fund on
certain securities, indices and foreign currencies, as well as certain forward
foreign currency contracts, may cause the fund to recognize gains or losses from
marking-to-market even though such options may not have lapsed or been closed
out or exercised, or such futures or forward contracts may not have been
performed or closed out. The tax rules applicable to these contracts may affect
the characterization of some capital gains and losses realized by the fund as
long-term or short-term. Certain options, futures and forward contracts relating
to foreign currency may be subject to Section 988 of the Code, as described
above, and accordingly may produce ordinary income or loss. Additionally, the
fund may be required to recognize gain if an option, futures contract, forward
contract, short sale or other transaction that is not subject to the
mark-to-market rules is treated as a "constructive sale" of an "appreciated
financial position" held by the fund under Section 1259 of the Code. Any net
mark-to-market gains and/or gains from constructive sales may also have to be
distributed to satisfy the distribution requirements referred to above even
though the fund may receive no corresponding cash amounts, possibly requiring
the disposition of portfolio securities or borrowing to obtain the necessary
cash. Such a disposition of securities may potentially result in additional
taxable gain or loss to the fund. Losses on certain options, futures or forward
contracts and/or offsetting positions (portfolio securities or other positions
with respect to which the fund's risk of loss is substantially diminished by one
or more options, futures or forward contracts) may also be deferred under the
tax straddle rules of the Code, which may also affect the characterization of
capital gains or losses from straddle positions and certain successor positions
as long-term or short-term. Certain tax elections may be available that would
enable the fund to ameliorate some adverse effects of the tax rules described in
this paragraph. The tax rules applicable to options, futures, forward contracts
and straddles may affect the amount, timing and character of the fund's income
and gains or losses and hence of its distributions to shareholders.

The fund may be subject to withholding and other taxes imposed by foreign
countries, including taxes on interest, dividends and capital gains with respect
to its investments in those countries. Any such taxes would, if imposed, reduce
the yield on or return from those investments. Tax conventions between certain
countries and the U.S. may reduce or eliminate such taxes in some cases. The
fund does not expect to satisfy the requirements for passing through to its
shareholders any share of foreign taxes paid by the fund, with the result that
shareholders will not include such taxes in their gross incomes and will not be
entitled to a tax deduction or credit for such taxes on their own tax returns.

A state income (and possibly local income and/or intangible property) tax
exemption is generally available to the extent the fund's distributions are
derived from interest on (or, in the case of intangible property taxes, the
value of its assets is attributable to) certain U.S. government obligations,
provided, in some states, that certain thresholds for holdings of such
obligations and/or reporting requirements are satisfied. The fund will not seek
to satisfy any threshold or reporting requirements that may apply in particular
taxing jurisdictions, although the fund may in its sole discretion provide
relevant information to shareholders.

Shareholders that are exempt from U.S. federal income tax, such as retirement
plans that are qualified under Section 401 of the Code, generally are not
subject to U.S. federal income tax on fund dividends or distributions or on
sales or exchanges of fund shares unless the fund shares are "debt-financed
property" within the meaning of the Code. However, in the case of fund shares
held through a non-qualified deferred compensation plan, fund dividends and
distributions received by the plan and sales and exchanges of fund shares by the
plan generally are taxable to the employer sponsoring such plan in accordance
with the U.S. federal income tax laws that are

generally applicable to shareholders receiving such dividends or distributions
from regulated investment companies such as the fund.

A plan participant whose retirement plan invests in the fund, whether such plan
is qualified or not, generally is not taxed on fund dividends or distributions
received by the plan or on sales or exchanges of fund shares by the plan for
U.S. federal income tax purposes. However, distributions to plan participants
from a retirement plan account generally are taxable as ordinary income and
different tax treatment, including penalties on certain excess contributions and
deferrals, certain pre-retirement and post-retirement distributions and certain
prohibited transactions, is accorded to accounts maintained as qualified
retirement plans. Shareholders should consult their tax advisers for more
information.

The fund is required to withhold (as "backup withholding") 28% of reportable
payments, including dividends, capital gain distributions and the proceeds of
redemptions and exchanges or repurchases of fund shares, paid to shareholders
who have not complied with certain IRS regulations. In order to avoid this
withholding requirement, shareholders, other than certain exempt entities, must
certify on their Account Applications, or on separate IRS Forms W-9, that the
Social Security Number or other Taxpayer Identification Number they provide is
their correct number and that they are not currently subject to backup
withholding, or that they are exempt from backup withholding. The fund may
nevertheless be required to backup withhold if it receives notice from the IRS
or a broker that the number provided is incorrect or backup withholding is
applicable as a result of previous underreporting of interest or dividend
income.

The description of certain federal tax provisions above relates only to U.S.
federal income tax consequences for shareholders who are U.S. persons, i.e.,
generally, U.S. citizens or residents or U.S. corporations, partnerships, trusts
or estates, and who are subject to U.S. federal income tax and hold their shares
as capital assets. Except as otherwise provided, this description does not
address the special tax rules that may be applicable to particular types of
investors, such as financial institutions, insurance companies, securities
dealers, other regulated investment companies, or tax-exempt or tax-deferred
plans, accounts or entities. Investors other than U.S. persons may be subject to
different U.S. federal income tax treatment, including a non-resident alien U.S.
withholding tax at the rate of 30% or any lower applicable treaty rate on
amounts treated as ordinary dividends from the fund (other than, for taxable
years of the fund commencing prior to January 1, 2008, certain dividends
designated by the fund as (i) interest-related dividends, to the extent such
dividends are derived from the fund's "qualified net interest income," or (ii)
short-term capital gain dividends, to the extent such dividends are derived from
the fund's "qualified short-term gain") or, in certain circumstances, unless an
effective IRS Form W-8BEN or other authorized withholding certificate is on
file, to backup withholding at the rate of 28% on certain other payments from
the fund. "Qualified net interest income" is the fund's net income derived from
U.S.-source interest and original issue discount, subject to certain exceptions
and limitations. "Qualified short-term gain" generally means the excess of the
net short-term capital gain of the fund for the taxable year over its net
long-term capital loss, if any. Backup withholding will not be applied to
payments that have been subject to the 30% (or lower applicable treaty rate)
withholding tax on shareholders who are neither citizens nor residents of the
United States. Shareholders should consult their own tax advisers on these
matters and on state, local, foreign and other applicable tax laws.

If, as anticipated, the fund continues to qualify as a regulated investment
company under the Code, it will not be required to pay any Massachusetts income,
corporate excise or franchise taxes or any Delaware corporation income tax.

17. FINANCIAL STATEMENTS

The fund's financial statements and financial highlights for the fiscal year
ended August 31, 2007 appearing in the fund's annual report, filed with the SEC
on October 30, 2007 (Accession No. 0001025187-07-000016) are incorporated by
reference into this statement of additional information. Those financial
statements and financial highlights have been audited by Ernst & Young LLP,
independent registered public accounting firm, as indicated in their report
thereon, and are incorporated herein by reference in reliance upon such report,
given on the authority of Ernst & Young LLP as experts in accounting and
auditing.

The fund's annual report includes the financial statements referenced above and
is available without charge upon request by calling Shareholder Services at
1-800-225-6292.

18. ANNUAL FEE, EXPENSE AND OTHER INFORMATION

- -------------------------------------------------------------------------------------------------------------
Portfolio Turnover

- -------------------------------------------------------------------------------------------------------------
The fund's annual portfolio turnover rate for the fiscal years ended August 31,

- -------------------------------------------------------------------------------------------------------------
2007 2006

- -------------------------------------------------------------------------------------------------------------

78% 81%
- -------------------------------------------------------------------------------------------------------------

- ----------------------------------------------------------------------------------------------------------------------
Share Ownership

- ----------------------------------------------------------------------------------------------------------------------
As of November 30, 2007, the Trustees and officers of the fund owned beneficially in the aggregate less than 1% of the
outstanding shares of the fund. The following is a list of the holders of 5% or more of any class of the fund's
outstanding shares as of November 30, 2007:

- ----------------------------------------------------------------------------------------------------------------------
Record Holder Share Class Number of Shares % of Class
- ----------------------------------------------------------------------------------------------------------------------

mSouth Bancorporation A 144,702.555 12.14
c/o State Street Bank & Trust
200 Newport Ave 7S
N Quincy, MA 02171-2102

- ------------------------------------------------ ----------------------- ----------------------- ---------------------
- ------------------------------------------------ ----------------------- ----------------------- ---------------------
Class B
- ------------------------------------------------ ----------------------- ----------------------- ---------------------
- ------------------------------------------------ ----------------------- ----------------------- ---------------------
MLPF&S B 105,099.193 13.42
FBO its customers Mutual Fund Administration 4800 Deer Lake Dr E Fl 2
Jacksonville, FL 32246-6484

- ------------------------------------------------ ----------------------- ----------------------- ---------------------
- ------------------------------------------------ ----------------------- ----------------------- ---------------------
Class C
- ------------------------------------------------ ----------------------- ----------------------- ---------------------
- ------------------------------------------------ ----------------------- ----------------------- ---------------------
NFS LLC C 13,735.495 5.25
FBO its customers
Attn: Maureen Brusca
55 N 5th St
Philadelphia, PA 19106

- ------------------------------------------------ ----------------------- ----------------------- ---------------------
- ------------------------------------------------ ----------------------- ----------------------- ---------------------
Class Y
- ------------------------------------------------ ----------------------- ----------------------- ---------------------
- ------------------------------------------------ ----------------------- ----------------------- ---------------------
Brown Brothers Harriman & Co Y 1,041,636.756 5.21
FBO its customers
Attn: Investment Funds Global
Distribution Center
525 Washington Blvd
Jersey City, NJ 07310-1606

- ------------------------------------------------ ----------------------- ----------------------- ---------------------

- ----------------------------------------------------------------------------------------------------------------------

- ---------------------------------------------------------------------------------------------------------------
Trustee Ownership of Shares of the Fund and Other Pioneer Funds

- ---------------------------------------------------------------------------------------------------------------
The following table indicates the value of shares that each Trustee beneficially owned in the fund and Pioneer
Funds in the aggregate as of December 31, 2006. Beneficial ownership is determined in accordance with SEC rules.
The share value of any closed-end fund is based on its closing market price on December 31, 2006. The share
value of any open-end Pioneer Fund is based on the net asset value of the class of shares on December 31, 2006.
The dollar ranges in this table are in accordance with SEC requirements.

- ---------------------------------------------------------------------------------------------------------------
Aggregate Dollar Range of Equity
Dollar Range of Securities in All Registered Investment
Equity Securities in Companies Overseen by Trustee in the
Name of Trustee the Fund Pioneer Family of Funds
- ---------------------------------------------------------------------------------------------------------------

- ---------------------------------------------------------------------------------------------------------------
Interested Trustees
- ---------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. $0 Over $100,000
- ---------------------------------------------------------------------------------------------------------------
Independent Trustees
- ---------------------------------------------------------------------------------------------------------------
David R. Bock $0 Over $100,000
- ---------------------------------------------------------------------------------------------------------------
Mary K. Bush $0 Over $100,000
- ---------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham $0 Over $100,000
- ---------------------------------------------------------------------------------------------------------------
Thomas J. Perna $0 Over $100,000
- ---------------------------------------------------------------------------------------------------------------
Marguerite A. Piret $0 Over $100,000
- ---------------------------------------------------------------------------------------------------------------
John Winthrop $0 Over $100,000
- ---------------------------------------------------------------------------------------------------------------

Compensation of Officers and Trustees

The following table sets forth certain information with respect to the
compensation of each Trustee of the fund.

Pension or
Retirement Total Compensation
Aggregate Benefits Accrued from the Fund and
Compensation as Part of Other Pioneer
Name of Trustee from Fund** Fund Expenses Funds***

Interested Trustees:
John F. Cogan, Jr.* $500.00 $0.00 $35,300.00
Independent Trustees:
David R. Bock $1,000.00 $0.00 $149,500.00
Mary K. Bush $1,000.00 $0.00 $148,250.00
Margaret B.W. Graham $1,000.00 $0.00 $155,750.00
Thomas J. Perna $1,000.00 $0.00 $126,053.12
Marguerite A. Piret $1,000.00 $0.00 $178,250.00
John Winthrop $1,000.00 $0.00 $140,500.00
--------- -----------
Total $6,500.00 $0.00 $933,603.12

* Under the management contract, Pioneer reimburses the
fund for any Interested Trustee fees paid by the fund.
** For the fiscal year ended August 31, 2007.
*** For the calendar year ended December 31, 2006. There are 77 U.S.
registered investment portfolios in the Pioneer Family of Funds.

Approximate Management Fees the Fund Paid or Owed Pioneer

The following table shows the dollar amount of gross investment management fees
incurred by the fund, along with the net amount of fees that were paid after
applicable fee waivers or expense reimbursements, if any. The data is for the
past three fiscal years or shorter period if the fund has been in operation for
a shorter period.

For the Fiscal Years Ended August 31,
2007 2006 2005

Gross Fee $829,683 $702,280 $94,841
Incurred
Net Fee Paid $808,431 $678,738 $(25,671)

Fees the Fund Paid to Pioneer under the Administration Agreement

For the Fiscal Years Ended August 31,
2007 2006 2005

$46,644 $34,095 $18,647

- -------------------------------------------------------------------------------------------------------------
Carryover of Distribution Expenses

- -------------------------------------------------------------------------------------------------------------
As of December 31, 2006 the carryover of distribution expenses under the Class A
Plan was:

- -------------------------------------------------------------------------------------------------------------
$52
- -------------------------------------------------------------------------------------------------------------

- -------------------------------------------------------------------------------------------------------------
Underwriting Expenses and Commissions

- -------------------------------------------------------------------------------------------------------------
For the fiscal years ended August 31,

- -------------------------------------------------------------------------------------------------------------
2007 2006 2005
- -------------------------------------------------------------------------------------------------------------

Approximate Net $1,457 $2,030 $26,356
Underwriting Expenses
Retained by PFD
- -------------------------------------------------------------------------------------------------------------

- -------------------------------------------------------------------------------------------------------------
PFD
- -------------------------------------------------------------------------------------------------------------

Approximate Commissions $7,013 $7,590 $20,000
Reallowed to Dealers
(Class A shares)
- -------------------------------------------------------------------------------------------------------------
Approximate Commissions $0 $0 $0
Reallowed to Dealers
(Class C shares)
- -------------------------------------------------------------------------------------------------------------
Approximate Brokerage and $0 $0 $0
Underwriting Commissions
(Portfolio Transactions)
- -------------------------------------------------------------------------------------------------------------

- -------------------------------------------------------------------------------------------------------------
Fund Expenses under the Distribution Plans
- -------------------------------------------------------------------------------------------------------------
For the Fiscal Year Ended August 31, 2007
- -------------------------------------------------------------------------------------------------------------
Class A Plan Class B Plan Class C Plan
- -------------------------------------------------------------------------------------------------------------

$36,760 $105,632 $33,927
- -------------------------------------------------------------------------------------------------------------

CDSCs

- -------------------------------------------------------------------------------------------------------------
During the fiscal year ended August 31, 2007, the following CDSCs were paid to PFD:

- -------------------------------------------------------------------------------------------------------------
$43,384
- -------------------------------------------------------------------------------------------------------------

- -------------------------------------------------------------------------------------------------------------
Capital Loss Carryforwards as of August 31, 2007

- -------------------------------------------------------------------------------------------------------------
At August 31, 2007, the fund had the following net capital loss carryforward:
- -------------------------------------------------------------------------------------------------------------
$5,025,884
- -------------------------------------------------------------------------------------------------------------

- -------------------------------------------------------------------------------------------------------------

- -------------------------------------------------------------------------------------------------------------
Of this, the following amounts will expire as indicated below, if not utilized:
- -------------------------------------------------------------------------------------------------------------

- ----------------------------------------------------------------

$517,744 in 2008
- ----------------------------------------------------------------
$37,944 in 2009
- ----------------------------------------------------------------
$124 in 2011
- ----------------------------------------------------------------
$1,200,645 in 2012
- ----------------------------------------------------------------
$628,614 in 2013
- ----------------------------------------------------------------
$975,752 in 2014
$1,665,061 in 2015
- ----------------------------------------------------------------

19. APPENDIX A - DESCRIPTION OF SHORT-TERM DEBT, CORPORATE BOND AND REFERRED
STOCK RATINGS(1)

Description of Moody's Investors Service, Inc.'s ("Moody's") Short-Term Prime
Ratings:

Moody's short-term ratings are opinions of the ability of issuers to honor
short-term financial obligations. Ratings may be assigned to issuers, short-term
programs or to individual short-term debt instruments. Such obligations
generally have an original maturity not exceeding thirteen months, unless
explicitly noted.

Moody's employs the following designations to indicate the relative repayment
ability of rated issuers:

P-1: Issuers (or supporting institutions) rated Prime-1 have a superior ability
to repay short-term debt obligations.

P-2: Issuers (or supporting institutions) rated Prime-2 have a strong ability to
repay short-term debt obligations.

P-3: Issuers (or supporting institutions) rated Prime-3 have an acceptable
ability to repay short-term obligations.

NP: Issuers (or supporting institutions) rated Not Prime do not fall within any
of the Prime rating categories.

Note: Canadian issuers rated P-1 or P-2 have their short-term ratings enhanced
by the senior-most long-term rating of the issuer, its guarantor or
support-provider.

Description of Moody's Debt Ratings:

Aaa: Obligations rated Aaa are judged to be of the highest quality, with minimal
credit risk.

Aa: Obligations rated Aa are judged to be of high quality and are subject to
very low credit risk.

A: Obligations rated A are considered upper-medium grade and are subject to low
credit risk.

Baa: Obligations rated Baa are subject to moderate credit risk. They are
considered medium-grade and as such may possess certain speculative
characteristics.

Ba: Obligations rated Ba are judged to have speculative elements and are subject
to substantial credit risk.

- ----------
(1) The ratings indicated herein are believed to be the most recent ratings
available at the date of this statement of additional information for the
securities listed. Ratings are generally given to securities at the time of
issuance. While the rating agencies may from time to time revise such ratings,
they undertake no obligation to do so, and the ratings indicated do not
necessarily represent ratings which will be given to these securities on the
date of the fund's fiscal year-end.

B: Obligations rated B are considered speculative and are subject to high credit
risk.

Caa: Obligations rated Caa are judged to be of poor standing and are subject to
very high credit risk.

Ca: Obligations rated Ca are highly speculative and are likely in, or very near,
default, with some prospect of recovery of principal and interest.

C: Obligations rated C are the lowest rated class of bonds and are typically in
default, with little prospect for recovery of principal or interest.

Note: Moody's appends numerical modifiers "1", "2", and "3" to each generic
rating classification from "Aa" through "Caa". The modifier "1" indicates that
the obligation ranks in the higher end of its generic rating category; the
modifier "2" indicates a mid-range ranking; and the modifier "3" indicates a
ranking in the lower end of that generic rating category.

Moody's assigns long-term ratings to individual debt securities issued from
medium-term note (MTN) programs, in addition to indicating ratings to MTN
programs themselves. Notes issued under MTN programs with such indicated ratings
are rated at issuance at the rating applicable to all pari passu notes issued
under the same program, at the program's relevant indicated rating, provided
such notes do not exhibit any of the characteristics listed below:

o Notes containing features that link interest or principal to the credit
performance of any third party or parties (i.e., credit-linked notes);
o Notes allowing for negative coupons, or negative principal;
o Notes containing any provision that could obligate the investor to make
any additional payments;
o Notes containing provisions that subordinate the claim.

For notes with any of these characteristics, the rating of the individual note
may differ from the indicated rating of the program.

Standard & Poor's Short-Term Issue Credit Ratings:

A-1: A short-term obligation rated "A-1" is rated in the highest category by
Standard & Poor's. The obligor's capacity to meet its financial commitment on
the obligation is strong. Within this category, certain obligations are
designated with a plus sign (+). This indicates that the obligor's

A-2: A short-term obligation rated "A-2" is somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions than
obligations in higher rating categories. However, the obligor's capacity to meet
its financial commitment on the obligation is satisfactory.

A-3: A short-term obligation rated "A-3" exhibits adequate protection
parameters. However, adverse economic conditions or changing circumstances are
more likely to lead to a weakened capacity of the obligor to meet its financial
commitment on the obligation.

B: A short-term obligation rated "B" is regarded as having significant
speculative characteristics. Ratings of "B-1", "B-2", and "B-3" may be assigned
to indicate finer distinctions within the "B"

category. The obligor currently has the capacity to meet its financial
commitment on the obligation; however, it faces major ongoing uncertainties
which could lead to the obligor's inadequate capacity to meet its financial
commitment on the obligation.

B-1: A short-term obligation rated "B-1" is regarded as having significant
speculative characteristics, but the obligor has a relatively stronger capacity
to meet its financial commitments over the short-term compared to other
speculative-grade obligors.

B-2: A short-term obligation rated "B-2" is regarded as having significant
speculative characteristics, and the obligor has an average speculative-grade
capacity to meet its financial commitments over the short-term compared to other
speculative-grade obligors.

B-3: A short-term obligation rated "B-3" is regarded as having significant
speculative characteristics, and the obligor has a relatively weaker capacity to
meet its financial commitments over the short-term compared to other
speculative-grade obligors.

C: A short-term obligation rated "C" is currently vulnerable to nonpayment and
is dependent upon favorable business, financial, and economic conditions for the
obligor to meet its financial commitment on the obligation.

D: A short-term obligation rated "D" is in payment default. The "D" rating
category is used when payments on an obligation are not made on the date due
even if the applicable grace period has not expired, unless Standard & Poor's
believes that such payments will be made during such grace period. The "D"
rating also will be used upon the filing of a bankruptcy petition or the taking
of a similar action if payments on an obligation are jeopardized.

Standard & Poor's Long-Term Issue Credit Ratings:

Issue credit ratings are based, in varying degrees, on the following
considerations:

o Likelihood of payment--capacity and willingness of the obligor to meet
its financial commitment on an obligation in accordance with the terms
of the obligation;
o Nature of and provisions of the obligation;
o Protection afforded by, and relative position of, the obligation in the
event of bankruptcy, reorganization, or other arrangement under the laws
of bankruptcy and other laws affecting creditors' rights.

Issue ratings are an assessment of default risk, but may incorporate an
assessment of relative seniority or ultimate recovery in the event of default.
Junior obligations are typically rated lower than senior obligations, to reflect
the lower priority in bankruptcy, as noted above. (Such differentiation may
apply when an entity has both senior and subordinated obligations, secured and
unsecured obligations, or operating company and holding company obligations.)

AAA: An obligation rated "AAA" has the highest rating assigned by Standard &
Poor's. The obligor's capacity to meet its financial commitment on the
obligation is extremely strong.

AA: An obligation rated "AA" differs from the highest-rated obligations only to
a small degree. The obligor's capacity to meet its financial commitment on the
obligation is very strong.

A: An obligation rated "A" is somewhat more susceptible to the adverse effects
of changes in circumstances and economic conditions than obligations in
higher-rated categories. However, the obligor's capacity to meet its financial
commitment on the obligation is still strong.

BBB: An obligation rated "BBB" exhibits adequate protection parameters. However,
adverse economic conditions or changing circumstances are more likely

BB, B, CCC, CC, and C: Obligations rated "BB", "B", "CCC", "CC", and "C" are
regarded as having significant speculative characteristics. "BB" indicates the
least degree of speculation and "C" the highest. While such obligations will
likely have some quality and protective characteristics, these may be outweighed
by large uncertainties or major exposures to adverse conditions.

BB: An obligation rated "BB" is less vulnerable to nonpayment than other
speculative issues. However, it faces major ongoing uncertainties or exposure to
adverse business, financial, or economic conditions which could lead to the
obligor's inadequate capacity to meet its financial commitment on the
obligation.

B: An obligation rated "B" is more vulnerable to nonpayment than obligations
rated "BB", but the obligor currently has the capacity to meet its financial
commitment on the obligation. Adverse business, financial, or economic
conditions will likely impair the obligor's capacity or willingness to meet its
financial commitment on the obligation.

CCC: An obligation rated "CCC" is currently vulnerable to nonpayment, and is
dependent upon favorable business, financial, and economic conditions for the
obligor to meet its financial commitment on the obligation. In the event of
adverse business, financial, or economic conditions, the obligor is not likely
to have the capacity to meet its financial commitment on the obligation.

CC: An obligation rated "CC" is currently highly vulnerable to nonpayment.

C: A subordinated debt or preferred stock obligation rated "C" is currently
highly vulnerable to nonpayment. The "C" rating may be used to cover a situation
where a bankruptcy petition has been filed or similar action taken, but payments
on this obligation are being continued. A "C" also will be assigned to a
preferred stock issue in arrears on dividends or sinking fund payments, but that
is currently paying.

D: An obligation rated "D" is in payment default. The "D" rating category is
used when payments on an obligation are not made on the date due even if the
applicable grace period has not expired, unless Standard & Poor's believes that
such payments will be made during such grace period. The "D" rating also will be
used upon the filing of a bankruptcy petition or the taking of a similar action
if payments on an obligation are jeopardized.

Plus (+) or minus (-): The ratings from "AA" to "CCC" may be modified by the
addition of a plus (+) or minus (-) sign to show relative standing within the
major rating categories.

NR: This indicates that no rating has been requested, that there is insufficient
information on which to base a rating, or that Standard & Poor's does not rate a
particular obligation as a matter of policy.

Local Currency and Foreign Currency Risks

Country risk considerations are a standard part of Standard & Poor's analysis
for credit ratings on any issuer or issue. Currency of repayment is a key factor
in this analysis. An obligor's capacity to repay foreign currency obligations
may be lower than its capacity to repay obligations in its local currency due to
the sovereign government's own relatively lower capacity to repay external
versus domestic debt. These sovereign risk considerations are incorporated in
the debt ratings assigned to specific issues. Foreign currency issuer ratings
are also distinguished from local currency issuer ratings to identify those
instances where sovereign risks make them different for the same issuer.

20. Appendix B

Proxy Voting Policies and Procedures of
Pioneer Investment Management, Inc.

VERSION DATED July, 2004

Overview

Pioneer Investment Management, Inc. ("Pioneer") is a fiduciary that owes each of
its client's duties of care and loyalty with respect to all services undertaken
on the client's behalf, including proxy voting. When Pioneer has been delegated
proxy-voting authority for a client, the duty of care requires Pioneer to
monitor corporate events and to vote the proxies. To satisfy its duty of
loyalty, Pioneer must place its client's interests ahead of its own and must
cast proxy votes in a manner consistent with the best interest of its clients.
Pioneer will vote all proxies presented in a timely manner.

The Proxy Voting Policies and Procedures are designed to complement Pioneer's
investment policies and procedures regarding its general responsibility to
monitor the performance and/or corporate events of companies that are issuers of
securities held in accounts managed by Pioneer. Pioneer's Proxy Voting Policies
summarize Pioneer's position on a number of issues solicited by companies held
by Pioneer's clients. The policies are guidelines that provide a general
indication on how Pioneer would vote but do not include all potential voting
scenarios.

Pioneer's Proxy Voting Procedures detail monitoring of voting, exception votes,
and review of conflicts of interest and ensure that case-by-case votes are
handled within the context of the overall guidelines (i.e. best interest of
client). The overriding goal is that all proxies for US and non-US companies
that are received promptly will be voted in accordance with Pioneer's policies
or specific client instructions. All shares in a company held by Pioneer-managed
accounts will be voted alike, unless a client has given us specific voting
instructions on an issue or has not delegated authority to us or the Proxy
Voting Oversight Group determines that the circumstances justify a different
approach.

Pioneer does not delegate the authority to vote proxies relating to its clients
to any of its affiliates, which include other subsidiaries of UniCredito.

Any questions about these policies and procedures should be directed to the
Proxy Coordinator.

Proxy Voting Procedures

Proxy Voting Service
Pioneer has engaged an independent proxy voting service to assist in the voting
of proxies. The proxy voting service works with custodians to ensure that all
proxy materials are received by the custodians and are processed in a timely
fashion. To the extent applicable, the proxy voting service votes all proxies in
accordance with the proxy voting policies established by Pioneer. The proxy
voting service will refer proxy questions to the Proxy Coordinator (described
below) for instructions under circumstances where: (1) the application of the
proxy voting guidelines is unclear; (2) a particular proxy question is not
covered by the guidelines; or (3) the guidelines call for specific instructions
on a case-by-case basis. The proxy voting service is also requested to

call to the Proxy Coordinator's attention specific proxy questions that, while
governed by a guideline, appear to involve unusual or controversial issues.
Pioneer reserves the right to attend a meeting in person and may do so when it
determines that the company or the matters to be voted on at the meeting are
strategically important to its clients.

Proxy Coordinator
Pioneer's Director of Investment Operations (the "Proxy Coordinator")
coordinates the voting, procedures and reporting of proxies on behalf of
Pioneer's clients. The Proxy Coordinator will deal directly with the proxy
voting service and, in the case of proxy questions referred by the proxy voting
service, will solicit voting recommendations and instructions from the Director
of Portfolio Management US or, to the extent applicable, investment
sub-advisers. The Proxy Coordinator is responsible for ensuring that these
questions and referrals are responded to in a timely fashion and for
transmitting appropriate voting instructions to the proxy voting service. The
Proxy Coordinator is responsible for verifying with the Compliance Department
whether Pioneer's voting power is subject to any limitations or guidelines
issued by the client (or in the case of an employee benefit plan, the plan's
trustee or other fiduciaries).

Referral Items
From time to time, the proxy voting service will refer proxy questions to the
Proxy Coordinator that are described by Pioneer's policy as to be voted on a
case-by-case basis, that are not covered by Pioneer's guidelines or where
Pioneer's guidelines may be unclear with respect to the matter to be voted on.
Under such certain circumstances, the Proxy Coordinator will seek a written
voting recommendation from the Director of Portfolio Management US. Any such
recommendation will include: (i) the manner in which the proxies should be
voted; (ii) the rationale underlying any such decision; and (iii) the disclosure
of any contacts or communications made between Pioneer and any outside parties
concerning the proxy proposal prior to the time that the voting instructions are
provided. In addition, the Proxy Coordinator will ask the Compliance Department
to review the question for any actual or apparent conflicts of interest as
described below under "Conflicts of Interest." The Compliance Department will
provide a "Conflicts of Interest Report," applying the criteria set forth below
under "Conflicts of Interest," to the Proxy Coordinator summarizing the results
of its review. In the absence of a conflict of interest, the Proxy Coordinator
will vote in accordance with the recommendation of the Director of Portfolio
Management US.

If the matter presents a conflict of interest for Pioneer, then the Proxy
Coordinator will refer the matter to the Proxy Voting Oversight Group for a
decision. In general, when a conflict of interest is present, Pioneer will vote
according to the recommendation of the Director of Portfolio Management US where
such recommendation would go against Pioneer's interest or where the conflict is
deemed to be immaterial. Pioneer will vote according to the recommendation of
its proxy voting service when the conflict is deemed to be material and the
Pioneer's internal vote recommendation would favor Pioneer's interest, unless a
client specifically requests Pioneer to do otherwise. When making the final
determination as to how to vote a proxy, the Proxy Voting Oversight Group will
review the report from the Director of Portfolio Management US and the Conflicts
of Interest Report issued by the Compliance Department.

Conflicts of Interest
A conflict of interest occurs when Pioneer's interests interfere, or appear to
interfere with the interests of Pioneer's clients. Occasionally, Pioneer may
have a conflict that can affect how its votes proxies. The conflict may be
actual or perceived and may exist when the matter to be voted on concerns:

o An affiliate of Pioneer, such as another company belonging to the
UniCredito Italiano S.p.A. banking group (a "UniCredito Affiliate");

o An issuer of a security for which Pioneer acts as a sponsor, advisor,
manager, custodian, distributor, underwriter, broker, or other similar
capacity (including those securities specifically declared by PGAM to
present a conflict of interest for Pioneer);

o An issuer of a security for which UniCredito has informed Pioneer that a
UniCredito Affiliate acts as a sponsor, advisor, manager, custodian,
distributor, underwriter, broker, or other similar capacity; or

o A person with whom Pioneer (or any of its affiliates) has an existing,
material contract or business relationship that was not entered into in
the ordinary course of Pioneer's business.

o Pioneer will abstain from voting with respect to companies directly or
indirectly owned by UniCredito Italiano Group, unless otherwise directed
by a client. In addition, Pioneer will inform PGAM Global Compliance and
the PGAM Independent Directors before exercising such rights.

Any associate involved in the proxy voting process with knowledge of any
apparent or actual conflict of interest must disclose such conflict to the Proxy
Coordinator and the Compliance Department. The Compliance Department will review
each item referred to Pioneer to determine whether an actual or potential
conflict of interest with Pioneer exists in connection with the proposal(s) to
be voted upon. The review will be conducted by comparing the apparent parties
affected by the proxy proposal being voted upon against the Compliance
Department's internal list of interested persons and, for any matches found,
evaluating the anticipated magnitude and possible probability of any conflict of
interest being present. For each referral item, the determination regarding the
presence or absence of any actual or potential conflict of interest will be
documented in a Conflicts of Interest Report to the Proxy Coordinator.

Securities Lending
In conjunction with industry standards Proxies are not available to be voted
when the shares are out on loan through either Pioneer's lending program or a
client's managed security lending program. However, Pioneer will reserve the
right to recall lent securities so that they may be voted according to the
Pioneer's instructions. If a portfolio manager would like to vote a block of
previously lent shares, the Proxy Coordinator will work with the portfolio
manager and Investment Operations to recall the security, to the extent
possible, to facilitate the vote on the entire block of shares.

Share-Blocking
"Share-blocking" is a market practice whereby shares are sent to a custodian
(which may be different than the account custodian) for record keeping and
voting at the general meeting. The shares are unavailable for sale or delivery
until the end of the blocking period (typically the day after general meeting
date).

Pioneer will vote in those countries with "share-blocking." In the event a
manager would like to sell a security with "share-blocking", the Proxy
Coordinator will work with the Portfolio Manager and Investment Operations
Department to recall the shares (as allowable within the market time-

frame and practices) and/or communicate with executing brokerage firm. A list of
countries with "share-blocking" is available from the Investment Operations
Department upon request.

Record Keeping
The Proxy Coordinator shall ensure that Pioneer's proxy voting service:

o Retains a copy of the proxy statement received (unless the proxy
statement is available from the SEC's Electronic Data Gathering,
Analysis, and Retrieval (EDGAR) system);

o Retains a record of the vote cast;

o Prepares Form N-PX for filing on behalf of each client that is a
registered investment company; and

o Is able to promptly provide Pioneer with a copy of the voting record
upon its request.

The Proxy Coordinator shall ensure that for those votes that may require
additional documentation (i.e. conflicts of interest, exception votes and
case-by-case votes) the following records are maintained:

o A record memorializing the basis for each referral vote cast;

o A copy of any document created by Pioneer that was material in making
the decision on how to vote the subject proxy; and

o A copy of any conflict notice, conflict consent or any other written
communication (including emails or other electronic communications) to
or from the client (or in the case of an employee benefit plan, the
plan's trustee or other fiduciaries) regarding the subject proxy vote
cast by, or the vote recommendation of, Pioneer.

Pioneer shall maintain the above records in the client's file for a period not
less than ten (10) years.

Disclosure
Pioneer shall take reasonable measures to inform its clients of the process or
procedures clients must follow to obtain information regarding how Pioneer voted
with respect to assets held in their accounts. In addition, Pioneer shall
describe to clients its proxy voting policies and procedures and will furnish a
copy of its proxy voting policies and procedures upon request. This information
may be provided to clients through Pioneer's Form ADV (Part II) disclosure, by
separate notice to the client, or through Pioneer's website.

Proxy Voting Oversight Group
The members of the Proxy Voting Oversight Group are Pioneer's: Director of
Portfolio Management US, Head of Investment Operations, and Director of
Compliance. Other members of Pioneer will be invited to attend meetings and
otherwise participate as necessary. The Head of Investment Operations will chair
the Proxy Voting Oversight Group.

The Proxy Voting Oversight Group is responsible for developing, evaluating, and
changing (when necessary) Pioneer's Proxy Voting Policies and Procedures. The
group meets at least annually to evaluate and review these policies and
procedures and the services of its third-party

proxy voting service. In addition, the Proxy Voting Oversight Group will meet as
necessary to vote on referral items and address other business as necessary.

Amendments
Pioneer may not amend its Proxy Voting Policies And Procedures without the prior
approval of the Proxy Voting Oversight Group and its corporate parent, Pioneer
Global Asset Management S.p.A

Proxy Voting Policies

Pioneer's sole concern in voting proxies is the economic effect of the proposal
on the value of portfolio holdings, considering both the short- and long-term
impact. In many instances, Pioneer believes that supporting the company's
strategy and voting "for" management's proposals builds portfolio value. In
other cases, however, proposals set forth by management may have a negative
effect on that value, while some shareholder proposals may hold the best
prospects for enhancing it. Pioneer monitors developments in the proxy-voting
arena and will revise this policy as needed.

All proxies that are received promptly will be voted in accordance with the
specific policies listed below. All shares in a company held by Pioneer-managed
accounts will be voted alike, unless a client has given us specific voting
instructions on an issue or has not delegated authority to us. Proxy voting
issues will be reviewed by Pioneer's Proxy Voting Oversight Group, which
consists of the Director of Portfolio Management US, the Director of Investment
Operations (the Proxy Coordinator), and the Director of Compliance.

Pioneer has established Proxy Voting Procedures for identifying and reviewing
conflicts of interest that may arise in the voting of proxies.

Clients may request, at any time, a report on proxy votes for securities held in
their portfolios and Pioneer is happy to discuss our proxy votes with company
management. Pioneer retains a proxy voting service to provide research on proxy
issues and to process proxy votes.

Administrative
While administrative items appear infrequently in U.S. issuer proxies, they are
quite common in non-U.S. proxies.

We will generally support these and similar management proposals:

o Corporate name change.

o A change of corporate headquarters.

o Stock exchange listing.

o Establishment of time and place of annual meeting.

o Adjournment or postponement of annual meeting.

o Acceptance/approval of financial statements.

o Approval of dividend payments, dividend reinvestment plans and other
dividend-related proposals.

o Approval of minutes and other formalities.

o Authorization of the transferring of reserves and allocation of income.

o Amendments to authorized signatories.

o Approval of accounting method changes or change in fiscal year-end.

o Acceptance of labor agreements.

o Appointment of internal auditors.

Pioneer will vote on a case-by-case basis on other routine business; however,
Pioneer will oppose any routine business proposal if insufficient information is
presented in advance to allow Pioneer to judge the merit of the proposal.
Pioneer has also instructed its proxy voting service to inform Pioneer of its
analysis of any administrative items inconsistent, in its view, with supporting
the value of Pioneer portfolio holdings so that Pioneer may consider and vote on
those items on a case-by-case basis.

Auditors
We normally vote for proposals to:

o Ratify the auditors. We will consider a vote against if we are concerned
about the auditors' independence or their past work for the company.
Specifically, we will oppose the ratification of auditors and withhold
votes from audit committee members if non-audit fees paid by the company
to the auditing firm exceed the sum of audit fees plus audit-related
fees plus permissible tax fees according to the disclosure categories
proposed by the Securities and Exchange Commission.

o Restore shareholder rights to ratify the auditors.

We will normally oppose proposals that require companies to:

o Seek bids from other auditors.

o Rotate auditing firms, except where the rotation is statutorily required
or where rotation would demonstrably strengthen financial disclosure.

o Indemnify auditors.

o Prohibit auditors from engaging in non-audit services for the company.

Board of Directors
On issues related to the board of directors, Pioneer normally supports
management. We will, however, consider a vote against management in instances
where corporate performance has been very poor or where the board appears to
lack independence.

General Board Issues
Pioneer will vote for:

o Audit, compensation and nominating committees composed of independent
directors exclusively.

o Indemnification for directors for actions taken in good faith in
accordance with the business judgment rule. We will vote against
proposals for broader indemnification.

o Changes in board size that appear to have a legitimate business purpose
and are not primarily for anti-takeover reasons.

o Election of an honorary director.

We will vote against:

o Minimum stock ownership by directors.

o Term limits for directors. Companies benefit from experienced directors,
and shareholder control is better achieved through annual votes.

o Requirements for union or special interest representation on the board.

o Requirements to provide two candidates for each board seat.

We will vote on a case-by case basis on these issues:

o Separate chairman and CEO positions. We will consider voting with
shareholders on these issues in cases of poor corporate performance.

Elections of Directors
In uncontested elections of directors we will vote against:

o Individual directors with absenteeism above 25% without valid reason. We
support proposals that require disclosure of director attendance.

o Insider directors and affiliated outsiders who sit on the audit,
compensation, stock option or nominating committees. For the purposes of
our policy, we accept the definition of affiliated directors provided by
our proxy voting service.

We will also vote against:

o Directors who have failed to act on a takeover offer where the majority
of shareholders have tendered their shares.

o Directors who appear to lack independence or are associated with very
poor corporate performance.

We will vote on a case-by case basis on these issues:

o Re-election of directors who have implemented or renewed a dead-hand or
modified dead-hand poison pill (a "dead-hand poison pill" is a
shareholder rights plan that may be

altered only by incumbent or "dead " directors. These plans prevent a
potential acquirer from disabling a poison pill by obtaining control of
the board through a proxy vote).

o Contested election of directors.

o Prior to phase-in required by SEC, we would consider supporting election
of a majority of independent directors in cases of poor performance.

o Mandatory retirement policies.

o Directors who have ignored a shareholder proposal that has been approved
by shareholders for two consecutive years.

Takeover-Related Measures
Pioneer is generally opposed to proposals that may discourage takeover attempts.
We believe that the potential for a takeover helps ensure that corporate
performance remains high. Pioneer will vote for:

o Cumulative voting.

o Increase ability for shareholders to call special meetings.

o Increase ability for shareholders to act by written consent.

o Restrictions on the ability to make greenmail payments.

o Submitting rights plans to shareholder vote.

o Rescinding shareholder rights plans ("poison pills").

o Opting out of the following state takeover statutes:

o Control share acquisition statutes, which deny large holders voting
rights on holdings over a specified threshold.

o Control share cash-out provisions, which require large holders to
acquire shares from other holders.

o Freeze-out provisions, which impose a waiting period on large holders
before they can attempt to gain control.

o Stakeholder laws, which permit directors to consider interests of
non-shareholder constituencies.

o Disgorgement provisions, which require acquirers to disgorge profits on
purchases made before gaining control.

o Fair price provisions.

o Authorization of shareholder rights plans.

o Labor protection provisions.

o Mandatory classified boards.

We will vote on a case-by-case basis on the following issues:

o Fair price provisions. We will vote against provisions requiring
supermajority votes to approve takeovers. We will also consider voting
against proposals that require a supermajority vote to repeal or amend
the provision. Finally, we will consider the mechanism used to determine
the fair price; we are generally opposed to complicated formulas or
requirements to pay a premium.

o Opting out of state takeover statutes regarding fair price provisions.
We will use the criteria used for fair price provisions in general to
determine our vote on this issue.

o Proposals that allow shareholders to nominate directors.

We will vote against:

o Classified boards, except in the case of closed-end mutual funds.

o Limiting shareholder ability to remove or appoint directors. We will
support proposals to restore shareholder authority in this area. We will
review on a case-by-case basis proposals that authorize the board to
make interim appointments.

o Classes of shares with unequal voting rights.

o Supermajority vote requirements.

o Severance packages ("golden" and "tin" parachutes). We will support
proposals to put these packages to shareholder vote.

o Reimbursement of dissident proxy solicitation expenses. While we
ordinarily support measures that encourage takeover bids, we believe
that management should have full control over corporate funds.

o Extension of advance notice requirements for shareholder proposals.

o Granting board authority normally retained by shareholders (e.g., amend
charter, set board size).

o Shareholder rights plans ("poison pills"). These plans generally allow
shareholders to buy additional shares at a below-market price in the
event of a change in control and may deter some bids.

Capital Structure
Managements need considerable flexibility in determining the company's financial
structure, and Pioneer normally supports managements' proposals in this area. We
will, however, reject proposals that impose high barriers to potential
takeovers.

Pioneer will vote for:

o Changes in par value.

o Reverse splits, if accompanied by a reduction in number of shares.

o Share repurchase programs, if all shareholders may participate on equal
terms.

o Bond issuance.

o Increases in "ordinary" preferred stock.

o Proposals to have blank-check common stock placements (other than shares
issued in the normal course of business) submitted for shareholder
approval.

o Cancellation of company treasury shares.

We will vote on a case-by-case basis on the following issues:

o Reverse splits not accompanied by a reduction in number of shares,
considering the risk of delisting.

o Increase in authorized common stock. We will make a determination
considering, among other factors:

o Number of shares currently available for issuance;

o Size of requested increase (we would normally approve increases of up to
100% of current authorization);

o Proposed use of the additional shares; and

o Potential consequences of a failure to increase the number of shares
outstanding (e.g., delisting or bankruptcy).

o Blank-check preferred. We will normally oppose issuance of a new class
of blank-check preferred, but may approve an increase in a class already
outstanding if the company has demonstrated that it uses this
flexibility appropriately.

o Proposals to submit private placements to shareholder vote.

o Other financing plans.

We will vote against preemptive rights that we believe limit a company's
financing flexibility.

Compensation
Pioneer supports compensation plans that link pay to shareholder returns and
believes that management has the best understanding of the level of compensation
needed to attract and retain qualified people. At the same time, stock-related
compensation plans have a significant economic impact and a direct effect on the
balance sheet. Therefore, while we do not want to

micromanage a company's compensation programs, we will place limits on
the potential dilution these plans may impose.
Pioneer will vote for:

o 401(k) benefit plans.

o Employee stock ownership plans (ESOPs), as long as shares allocated to
ESOPs are less than 5% of outstanding shares. Larger blocks of stock in
ESOPs can serve as a takeover defense. We will support proposals to
submit ESOPs to shareholder vote.

o Various issues related to the Omnibus Budget and Reconciliation Act of
1993 (OBRA), including:

o Amendments to performance plans to conform with OBRA;

o Caps on annual grants or amendments of administrative features;

o Adding performance goals; and

o Cash or cash-and-stock bonus plans.

o Establish a process to link pay, including stock-option grants, to
performance, leaving specifics of implementation to the company.

o Require that option repricings be submitted to shareholders.

o Require the expensing of stock-option awards.

o Require reporting of executive retirement benefits (deferred
compensation, split-dollar life insurance, SERPs, and pension benefits).

o Employee stock purchase plans where the purchase price is equal to at
least 85% of the market price, where the offering period is no greater
than 27 months and where potential dilution (as defined below) is no
greater than 10%.

We will vote on a case-by-case basis on the following issues:

o Executive and director stock-related compensation plans. We will
consider the following factors when reviewing these plans:

o The program must be of a reasonable size. We will approve plans where
the combined employee and director plans together would generate less
than 15% dilution. We will reject plans with 15% or more potential
dilution.

Dilution = (A + B + C) / (A + B + C + D), where
A = Shares reserved for plan/amendment,
B = Shares available under continuing plans,
C = Shares granted but unexercised and
D = Shares outstanding.

o The plan must not:

o Explicitly permit unlimited option repricing authority or that have
repriced in the past without shareholder approval.

o Be a self-replenishing "evergreen" plan, plans that grant discount
options and tax offset payments.

o We are generally in favor of proposals that increase participation
beyond executives.

o We generally support proposals asking companies to adopt rigorous
vesting provisions for stock option plans such as those that vest
incrementally over, at least, a three- or four-year period with a pro
rata portion of the shares becoming exercisable on an annual basis
following grant date.

o We generally support proposals asking companies to disclose their window
period policies for stock transactions. Window period policies ensure
that employees do not exercise options based on insider information
contemporaneous with quarterly earnings releases and other material
corporate announcements.

o We generally support proposals asking companies to adopt stock holding
periods for their executives.

o All other employee stock purchase plans.

o All other compensation-related proposals, including deferred
compensation plans, employment agreements, loan guarantee programs and
retirement plans.

o All other proposals regarding stock compensation plans, including
extending the life of a plan, changing vesting restrictions, repricing
options, lengthening exercise periods or accelerating distribution of
awards and pyramiding and cashless exercise programs.

We will vote against:

o Pensions for non-employee directors. We believe these retirement plans
reduce director objectivity.

o Elimination of stock option plans.

We will vote on a case-by case basis on these issues:

o Limits on executive and director pay.

o Stock in lieu of cash compensation for directors.

Corporate Governance
Pioneer will vote for:

o Confidential Voting.

o Equal access provisions, which allow shareholders to contribute their
opinion to proxy materials.

o Proposals requiring directors to disclose their ownership of shares in
the company.

We will vote on a case-by-case basis on the following issues:

o Change in the state of incorporation. We will support reincorporations
supported by valid business reasons. We will oppose those that appear to
be solely for the purpose of strengthening takeover defenses.

o Bundled proposals. We will evaluate the overall impact of the proposal.

o Adopting or amending the charter, bylaws or articles of association.

o Shareholder appraisal rights, which allow shareholders to demand
judicial review of an acquisition price.

We will vote against:

o Shareholder advisory committees. While management should solicit
shareholder input, we prefer to leave the method of doing so to
management's discretion.

o Limitations on stock ownership or voting rights.

o Reduction in share ownership disclosure guidelines.

Mergers and Restructurings
Pioneer will vote on the following and similar issues on a case-by-case basis:

o Mergers and acquisitions.

o Corporate restructurings, including spin-offs, liquidations, asset
sales, joint ventures, conversions to holding company and conversions to
self-managed REIT structure.

o Debt restructurings.

o Conversion of securities.

o Issuance of shares to facilitate a merger.

o Private placements, warrants, convertible debentures.

o Proposals requiring management to inform shareholders of merger
opportunities.

We will normally vote against shareholder proposals requiring that the company
be put up for sale.

Mutual Funds
Many of our portfolios may invest in shares of closed-end mutual funds or
exchange-traded funds. The non-corporate structure of these investments raises
several unique proxy voting issues.

Pioneer will vote for:

o Establishment of new classes or series of shares.

o Establishment of a master-feeder structure.

Pioneer will vote on a case-by-case on:

o Changes in investment policy. We will normally support changes that do
not affect the investment objective or overall risk level of the fund.
We will examine more fundamental changes on a case-by-case basis.

o Approval of new or amended advisory contracts.

o Changes from closed-end to open-end format.

o Authorization for, or increase in, preferred shares.

o Disposition of assets, termination, liquidation, or mergers.

o Classified boards of closed-end mutual funds, but will typically support
such proposals.

Social Issues
Pioneer will abstain on stockholder proposals calling for greater disclosure of
corporate activities with regard to social issues. "Social Issues" may generally
be described as shareholder proposals for a company to:

o Conduct studies regarding certain issues of public concern and interest;

o Study the feasibility of the company taking certain actions with regard
to such issues; or

o Take specific action, including ceasing certain behavior and adopting
company standards and principles, in relation to issues of public
concern and interest.

We believe these issues are important and should receive management attention.
Pioneer will vote against proposals calling for substantial changes in the
company's business or activities. We will also normally vote against proposals
with regard to contributions, believing that management should control the
routine disbursement of funds.