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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21569
Pioneer Ibbotson Asset Allocation Series
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: July 31
Date of reporting period: August 1, 2004 through July 31, 2005
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
PIONEER
-----------------------
IBBOTSON ASSET ALLOCATION SERIES
Annual
Report
7/31/05
[Logo]PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 1
Market Overview and Outlook 2
Comparing Ongoing Fund Expenses 5
Portfolio Reviews 13
Prices and Distributions 15
Conservative Allocation Fund - Portfolio Summary and
Performance Update 17
Moderate Allocation Fund - Portfolio Summary and
Performance Update 21
Growth Allocation Fund - Portfolio Summary and
Performance Update 25
Aggressive Allocation Fund - Portfolio Summary and
Performance Update 29
Schedule of Investments 33
Financial Statements 37
Notes to Financial Statements 45
Report of Independent Registered Public Accounting Firm 53
Trustees, Officers and Service Providers 54
Pioneer Ibbotson Asset Allocation Series
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LETTER TO SHAREOWNERS 7/31/05
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Dear Shareowner,
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I am pleased to present the annual report for the Pioneer Ibbotson Asset
Allocation Series, covering the slightly abbreviated fiscal period beginning
with the introduction of the Series on August 9, 2004, and ending July 31, 2005.
The fourth fund in the Series, Conservative Allocation Fund, began operations on
May 12, 2005, and its performance therefore reflects a shorter period.
The period since the inception of the Series saw continued uncertainty with
respect to the direction of the economy and financial markets, further
highlighting the value of an approach to investing that starts with
sophisticated asset allocation. Asset allocation is the process of combining
asset classes such as stocks, bonds and cash equivalents in a portfolio to
reflect an investor's goals and risk tolerance. For most investors, an
appropriate asset allocation will be the most important factor in determining
long-term investment success.
In the pages that follow, you will find a discussion of the recent market
environment and the principal strategies employed by the Funds' managers. You
will also find separate, detailed summaries of performance and key allocations
for each of the four portfolios: Conservative Allocation Fund, Moderate
Allocation Fund, Growth Allocation Fund, and Aggressive Allocation Fund. Each
portfolio in the series is a "fund of funds," which invests in a select group of
Pioneer mutual funds. Pioneer Investment Management has hired Ibbotson
Associates, a leading authority on investing and asset allocation, to manage all
four portfolios, determining the allocation between equities and fixed-income,
as well as the weighting of individual Pioneer funds.
Whether you have chosen to pursue a conservative, moderate, growth or aggressive
approach, your Fund is a carefully allocated and diversified portfolio designed
to provide attractive returns at a level of risk that is comfortable for you.
We thank you for your investment.
Respectfully,
/S/ Osbert M. Hood
Osbert M. Hood,
President
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
1
Pioneer Ibbotson Asset Allocation Series
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MARKET OVERVIEW AND OUTLOOK 7/31/05
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In the following interview, portfolio manager Peng Chen, Chief Investment
Officer for Ibbotson Associates, discusses the market environment and investment
strategies that applied to the portfolios in the Pioneer Ibbotson Asset
Allocation Series during the annual period ended July 31, 2005.
Q. Could you characterize the economic backdrop over the period?
A. The U.S. economy continues to grow at a healthy pace, if somewhat more
slowly than in 2004. Inflation has picked up to a modest degree, driven
primarily by high energy prices. On the interest rate front, the Federal
Reserve began to raise short-term rates in 2004 and has maintained a policy
of gradual tightening to keep economic growth in check. Surprisingly,
long-term interest rates have been relatively stable throughout the cycle
of Fed tightening and even declined over the first half of 2005. In this
environment, equity markets overall have basically fluctuated within a
range, while long-term bonds and credit sensitive sectors of the bond
market generally showed strength.
Q. What were the strategic considerations that you applied to the portfolios
in allocating assets?
A. Assets have been invested in keeping with the respective broad asset
allocation and specific mutual fund targets established prior to the launch
of the portfolios in August of 2004. In addition, over the period we
implemented three strategies across all the portfolios.
First, within the U.S. stock portion of the portfolios, we maintained over
the period a moderate emphasis on value stocks and a corresponding
underweighting of more growth-oriented investments. The strategy primarily
reflected our view that the U.S. economy was in a slow growth mode that
favored value equities with relatively stable earnings prospects. However,
value stocks have now outperformed growth over a period of approximately
five years, and growth stocks appear to be more favorably priced on a
relative basis. In addition, the economy has started to show signs of more
rapid expansion, which would favor growth companies. Finally, we expect
earnings of financial companies - which represent over one-third of the
value universe - to be squeezed going forward. In view of the above
factors, we expect to reduce exposure to value stocks as we enter a new
fiscal period and increase our weighting of more growth-oriented
investments. With respect to the other equity asset classes, the
portfolios' targeted exposure across large-, mid-, and small-cap
2
Pioneer Ibbotson Asset Allocation Series
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equities remains unchanged. We have also maintained neutral target
weightings in the non-U.S. equity market alternatives, both developed and
emerging.
The second emphasis has been within the bond portion of the portfolios,
where we implemented an underweighting of the long-term bond vehicle, with
the difference allocated to the shorter-term fixed-income alternative. We
believe that given the prospect of higher interest rates, shorter duration
fixed-income investments are more attractive. While the positioning has not
helped our performance over the short term, we continue to believe that
long-term rates will come under pressure, and we are maintaining the
allocation. Elsewhere within the fixed-income universe, we have maintained
neutral positions in the high-yield bond offering, as well as in the
non-U.S. fixed-income option.
Finally, we are underweighting REITs (Real Estate Investment Trusts) in
view of their extended run of outperformance and the prospect of higher
market interest rate levels. REITs have provided annualized returns in the
20% range over the past several years and are now fully valued in our view.
In addition, REITs are traditionally most attractive to investors seeking
income and have benefited from low interest rates. As rates eventually move
up, this supporting factor will no longer be in place.
Going forward, we will closely monitor economic indicators and interest
rate movements to evaluate whether we need to make any adjustments to the
views underlying these allocations. Given the significant level of
uncertainty that continues to impact the financial markets, we believe that
maintaining appropriate diversification across asset classes will be
especially important in the months ahead.
The Fund's performance depends on the adviser's skill in determining the
strategic asset class allocations, the mix of underlying Pioneer funds, as well
as the performance of those underlying funds. The underlying Funds' performance
may be lower than the performance of the asset class that they were selected to
represent. Stocks and bonds can decline due to adverse issuer, market,
regulatory, or economic developments. International markets may be less liquid
and can be more volatile than U.S. markets. These risk factors, including those
associated with currency exchange rates, also apply to investments in
international markets, all of which make international markets more volatile and
less liquid than investments in domestic markets. Some of the underlying Funds
can invest in either high-yield securities or small/emerging growth companies.
Investments in these types of securities generally are subject to greater
volatility than either
3
Pioneer Ibbotson Asset Allocation Series
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MARKET OVERVIEW AND OUTLOOK 7/31/05
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higher-grade securities or more-established companies, respectively. Before
making an investment in the Fund, you should consider all the risks associated
with it.
Please the see the Portfolio Reviews beginning on page 13 for information on
specific weightings and performance for each of the three portfolios in the
Pioneer Ibbotson Asset Allocation Series.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
4
Pioneer Ibbotson Conservative Allocation Fund
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COMPARING ONGOING FUND EXPENSES 7/31/05
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As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Conservative
Allocation Fund
Based on actual returns from May 12, 2005 through July 31, 2005
Share Class A B C
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Beginning Account Value
On 5/12/05 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/05 $1,029.00 $1,028.00 $1,026.00
Expenses Paid During Period* $ 3.19 $ 5.19 $ 5.18
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.43%, 2.33% and
2.33%, for Class A, Class B and Class C shares, respectively. These
combined ratios were multiplied by the average account value over the
period, and then multiplied by 81/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
5
Pioneer Ibbotson Conservative Allocation Fund
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COMPARING ONGOING FUND EXPENSES 7/31/05
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Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Conservative Allocation
Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from May 12, 2005 through July 31, 2005
Share Class A B C
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Beginning Account Value
On 5/12/05 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/05 $1,007.81 $1,005.84 $1,005.84
Expenses Paid During Period* $ 3.16 $ 5.13 $ 5.13
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.43%, 2.33% and
2.33%, for Class A, Class B and Class C shares, respectively. These
combined ratios were multiplied by the average account value over the
period, and then multiplied by 81/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
6
Pioneer Ibbotson Moderate Allocation Fund
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COMPARING ONGOING FUND EXPENSES 7/31/05
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As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Moderate Allocation
Fund
Based on actual returns from February 1, 2005 through July 31, 2005
Share Class A B C
- --------------------------------------------------------------------------------
Beginning Account Value
On 2/1/05 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/05 $1,048.88 $1,043.60 $1,043.93
Expenses Paid During Period* $ 7.51 $ 12.16 $ 12.16
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.53%, 2.43% and
2.43%, for Class A, Class B and Class C shares, respectively. These
combined ratios were multiplied by the average account value over the
period, and then multiplied by 181/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
7
Pioneer Ibbotson Moderate Allocation Fund
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COMPARING ONGOING FUND EXPENSES 7/31/05
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Moderate Allocation
Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from February 1, 2005 through July 31, 2005
Share Class A B C
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Beginning Account Value
On 2/1/05 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/05 $1,017.19 $1,012.72 $1,012.72
Expenses Paid During Period* $ 7.39 $ 11.97 $ 11.97
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.53%, 2.43% and
2.43%, for Class A, Class B and Class C shares, respectively. These
combined ratios were multiplied by the average account value over the
period, and then multiplied by 181/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
8
Pioneer Ibbotson Growth Allocation Fund
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COMPARING ONGOING FUND EXPENSES 7/31/05
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Growth Allocation Fund
Based on actual returns from February 1, 2005 through July 31, 2005
Share Class A B C
- --------------------------------------------------------------------------------
Beginning Account Value
On 2/1/05 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/05 $1,060.89 $1,056.30 $1,056.22
Expenses Paid During Period* $ 7.94 $ 12.62 $ 12.62
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.60%, 2.50% and
2.50%, for Class A, Class B and Class C shares, respectively. These
combined ratios were multiplied by the average account value over the
period, and then multiplied by 181/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
9
Pioneer Ibbotson Growth Allocation Fund
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COMPARING ONGOING FUND EXPENSES 7/31/05
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Growth Allocation Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from February 1, 2005 through July 31, 2005
Share Class A B C
- --------------------------------------------------------------------------------
Beginning Account Value
On 2/1/05 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/05 $1,016.85 $1,012.39 $1,012.39
Expenses Paid During Period* $ 7.77 $ 12.35 $ 12.35
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.60%, 2.50% and
2.50%, for Class A, Class B and Class C shares, respectively. These
combined ratios were multiplied by the average account value over the
period, and then multiplied by 181/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
10
Pioneer Ibbotson Aggressive Allocation Fund
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COMPARING ONGOING FUND EXPENSES 7/31/05
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As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Aggressive Allocation
Fund
Based on actual returns from February 1, 2005 through July 31, 2005
Share Class A B C
- --------------------------------------------------------------------------------
Beginning Account Value
On 2/1/05 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/05 $1,070.64 $1,066.44 $1,066.59
Expenses Paid During Period* $ 8.65 $ 13.35 $ 13.35
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.69%, 2.59% and
2.59%, for Class A, Class B and Class C shares, respectively. These
combined ratios were multiplied by the average account value over the
period, and then multiplied by 181/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
11
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES 7/31/05
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Aggressive Allocation
Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from February 1, 2005 through July 31, 2005
Share Class A B C
- --------------------------------------------------------------------------------
Beginning Account Value
On 2/1/05 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 7/31/05 $1,016.44 $1,011.97 $1,011.97
Expenses Paid During Period* $ 8.43 $ 13.00 $ 13.00
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.69%, 2.59% and
2.59%, for Class A, Class B and Class C shares, respectively. These
combined ratios were multiplied by the average account value over the
period, and then multiplied by 181/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
12
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PORTFOLIO REVIEWS 7/31/05
- --------------------------------------------------------------------------------
Conservative Allocation
The Fund's total return for the abbreviated annual period beginning with its
May 12, 2005, inception and ending July 31, 2005, was 2.90% for Class A shares,
at net asset value.
The Fund targeted an asset allocation of 30% equities and 70% fixed-income
during the period. Within the equity portion of the Fund, Pioneer Value Fund
was the largest holding at 8.6% of assets on July 31, 2005. Pioneer
International Equity Fund was the next largest equity holding at 7.7% of
assets. Within the fixed-income portion of the Fund, Pioneer Bond Fund and a
shorter duration bond fund, Pioneer Short Term Income Fund, were both weighted
at 26.9%.
Moderate Allocation
The Fund's total return for the abbreviated annual period beginning with its
August 9, 2004, inception and ending July 31, 2005, was 14.37% for Class A
shares, at net asset value.
The Fund targeted an asset allocation of 60% equities and 40% fixed-income
during the period. Within the equity portion of the Fund, Pioneer Fund was the
largest holding at 11.5% of assets on July 31, 2005. Pioneer International
Equity Fund was the next largest equity holding at 10.8% of assets. Within the
fixed-income portion of the Fund, the largest holding at the end of the period
was a shorter duration bond fund, Pioneer Short Term Income Fund, at 15.7%.
Growth Allocation
The Fund's total return for the abbreviated annual period beginning with its
August 9, 2004, inception and ending July 31, 2005, was 17.96% for Class A
shares, at net asset value.
The Fund targeted an asset allocation of 75% equities and 25% fixed-income
during the period. Within the equity portion of the Fund, Pioneer International
Equity Fund was the largest holding at 14.0% of assets on July 31, 2005. The
largest domestic equity allocation was to Pioneer Fund (11.8%) followed by
Pioneer Mid Cap Value Fund (10.1%) and Pioneer Value Fund (8.8%). Overall,
value holdings were weighted slightly above target as of the end of the period,
reflecting management's view that value stocks were more attractive than their
growth counterparts during the semiannual period. Within the fixed-income
portion of the Fund, the largest holding at the end of the period was in a
long-term bond fund, Pioneer Bond Fund, at 10.8%
13
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PORTFOLIO REVIEWS 7/31/05 (continued)
- --------------------------------------------------------------------------------
of assets, while a shorter duration bond fund, Pioneer Short Term Income Fund
represented 9.8% of assets.
Aggressive Allocation
The Fund's total return for the abbreviated annual period beginning with its
August 9, 2004 inception and ending July 31, 2005, was 21.57% for Class A
shares, at net asset value.
The Fund targeted an asset allocation of 90% equities and 10% fixed-income
during the period. Within the equity portion of the Fund, Pioneer International
Equity Fund was the largest holding at 17.7% of assets on July 31, 2005. On the
domestic side, Pioneer Fund and two value-oriented funds, Pioneer Value Fund
and Pioneer Mid-Cap Value Fund were the largest holdings at 11.5% of assets
each. Overall, the Fund's value exposure was slightly above target as of the
end of the period, reflecting management's view that value stocks were more
attractive than their growth counterparts during the semiannual period. The
fixed-income portion of the Fund was invested in a long-term bond fund, Pioneer
Bond Fund, at 9.5% of assets.
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
14
Pioneer Ibbotson Asset Allocation Series
- -----------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- -----------------------------------------------------------------------------
Net Asset Value Per Share
- -----------------------------------------------------------------------------
Conservative Allocation Fund
Class 7/31/05 5/12/05
------- --------- ----------
A $10.29 $10.00
B $10.28 $10.00
C $10.26 $10.00
Moderate Allocation Fund
Class 7/31/05 8/9/04
------- --------- ---------
A $11.15 $10.00
B $10.77 $10.00
C $10.68 $10.00
Growth Allocation Fund
Class 7/31/05 8/9/04
------- --------- ---------
A $11.50 $10.00
B $10.50 $10.00
C $11.10 $10.00
Aggressive Allocation Fund
Class 7/31/05 8/9/04
------- --------- ---------
A $11.82 $10.00
B $11.39 $10.00
C $11.54 $10.00
15
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Distributions Per Share
- --------------------------------------------------------------------------------
Conservative Allocation Fund
5/12/05 - 7/31/05
-------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
------- ------------ --------------- ---------------
A $ - $ - $ -
B $ - $ - $ -
C $ - $ - $ -
Moderate Allocation Fund
8/9/04 - 7/31/05
-------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
------- ------------ --------------- ---------------
A $0.0433 $0.0224 $0.2115
B $ - $0.0224 $0.2115
C $0.011 $0.0224 $0.2115
Growth Allocation Fund
8/9/04 - 7/31/05
------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
------- ------------ --------------- ---------------
A $0.0342 $0.0242 $0.2248
B $ - $0.0242 $0.2248
C $0.0073 $0.0242 $0.2248
Aggressive Allocation Fund
8/9/04 - 7/31/05*
-------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
------- ------------ --------------- ---------------
A $ - $0.0018 $0.2686
B $ - $0.0018 $0.2686
C $ - $0.0018 $0.2686
* The Aggressive Allocation Fund also paid non-taxable distributions of
$0.0493, $0.0275, and $0.0275 per share for Class A, Class B and Class C
shares, respectively.
16
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 7/31/05
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[The following table was depicted as a pie chart in the printed material.]
Fixed Income 70%
Equity 30%
Large Cap Growth Stocks 8.5%
- --------------------------------------------------------------------------------
Large Cap Value Stocks 9.5
- --------------------------------------------------------------------------------
Mid/Small Cap Growth Stocks 1.5
- --------------------------------------------------------------------------------
Mid/Small Cap Value Stocks 2.5
- --------------------------------------------------------------------------------
International Stocks 8.0
- --------------------------------------------------------------------------------
Emerging Markets 0.0
- --------------------------------------------------------------------------------
Real Estate (REITs) 0.0
- --------------------------------------------------------------------------------
High Yield Bonds 13.0
- --------------------------------------------------------------------------------
Bonds 20.0
- --------------------------------------------------------------------------------
Short Term Bonds 27.0
- --------------------------------------------------------------------------------
Cash Equivalents 10.0
- --------------------------------------------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------ -------------------------------------
Pioneer Fund 4.34% Pioneer International Equity 7.65%
- ------------------------------------------ -------------------------------------
Pioneer Research 5.43 Bonds
- ------------------------------------------ -------------------------------------
Pioneer Oak Ridge Large Cap Growth 3.72 Pioneer High Yield 10.89%
- ------------------------------------------ -------------------------------------
Pioneer Value 8.61 Pioneer Strategic Income 1.17
- ------------------------------------------ -------------------------------------
Pioneer Cullen Value 2.18 Pioneer Bond 26.93
- ------------------------------------------ -------------------------------------
Pioneer Mid Cap Value 2.17 Pioneer Short Term Income 26.91
- ------------------------------------------ -------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio holdings
will vary for other periods.
17
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/05 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund at public
offering price, compared to that of the Standard & Poor's 500 Stock Index.
Average Annual Total Returns
(As of July 31, 2005)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(5/12/05) 2.90% -3.02%
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Ibbotson Conservative Standard & Poor's
Allocation Fund 500 Stock Index
--------------- ---------------
5/05 $ 9,425 $10,000
7/05 $ 9,598 $10,387
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
18
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/05 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index.
Average Annual Total Returns
(As of July 31, 2005)
If If
Period Held Redeemed
Life-of-Class
(5/12/05) 2.80% -1.20%
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Ibbotson Conservative Standard & Poor's
Allocation Fund 500 Stock Index
--------------- ---------------
5/05 $10,000 $10,000
7/05 $ 9,778 $10,387
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerfunds.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
19
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/05 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index.
Average Annual Total Returns
(As of July 31, 2005)
If If
Period Held Redeemed
Life-of-Class
(5/12/05) 2.60% 1.60%
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Ibbotson Conservative Standard & Poor's
Allocation Fund 500 Stock Index
--------------- ---------------
5/05 $10,000 $10,000
7/05 $10,068 $10,387
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not reflect
the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. "If Held"
results represent the percent change in net asset value per share. Returns would
have been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
20
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 7/31/05
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[The following table was depicted as a pie chart in the printed material.]
Equity 60%
Fixed Income 40%
Large Cap Growth Stocks 14.5%
- --------------------------------------------------------------------------------
Large Cap Value Stocks 16.5
- --------------------------------------------------------------------------------
Mid/Small Cap Growth Stocks 5.0
- --------------------------------------------------------------------------------
Mid/Small Cap Value Stocks 7.0
- --------------------------------------------------------------------------------
International Stocks 12.0
- --------------------------------------------------------------------------------
Emerging Markets 2.0
- --------------------------------------------------------------------------------
Real Estate (REITs) 3.0
- --------------------------------------------------------------------------------
High Yield Bonds 8.0
- --------------------------------------------------------------------------------
Bonds 11.0
- --------------------------------------------------------------------------------
Short Term Bonds 15.0
- --------------------------------------------------------------------------------
Cash Equivalents 6.0
- --------------------------------------------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------- -------------------------------------
Pioneer Fund 11.53% Pioneer International Equity 10.77%
- ------------------------------------------- -------------------------------------
Pioneer Research 7.34 Pioneer Emerging Markets 2.66
- ------------------------------------------- -------------------------------------
Pioneer Oak Ridge Large Cap Growth 8.92 Bonds
- ------------------------------------------- -------------------------------------
Pioneer Value 8.36 Pioneer High Yield 6.31%
- ------------------------------------------- -------------------------------------
Pioneer Cullen Value 3.17 Pioneer Bond 14.13
- ------------------------------------------- -------------------------------------
Pioneer Mid Cap Growth 0.38 Pioneer Short Term Income 15.72
- ------------------------------------------- -------------------------------------
Pioneer Mid Cap Value 5.23
- -------------------------------------------
Pioneer Small Cap Value 2.29
- -------------------------------------------
Pioneer Real Estate 3.19
- -------------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio holdings
will vary for other periods.
21
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/05 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund at public offering
price, compared to that of the Standard & Poor's 500 Stock Index.
Average Annual Total Returns
(As of July 31, 2005)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 14.37% 7.80%
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Ibbotson Moderate Standard & Poor's
Allocation Fund 500 Stock Index
--------------- ---------------
8/04 $ 9,425 $10,000
7/05 $10,570 $11,359
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
22
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/05 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index.
Average Annual Total Returns
(As of July 31, 2005)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 10.11% 6.11%
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Ibbotson Moderate Standard & Poor's
Allocation Fund 500 Stock Index
--------------- ---------------
8/04 $10,000 $10,000
7/05 $10,578 $11,359
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerfunds.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
23
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/05 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index.
Average Annual Total Returns
(As of July 31, 2005)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 9.32% 8.32%
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Ibbotson Moderate Standard & Poor's
Allocation Fund 500 Stock Index
--------------- ---------------
8/04 $10,000 $10,000
7/05 $11,022 $11,359
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not reflect
the 1% front-end sales change in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. "If Held"
results represent the percent change in net asset value per share. Returns would
have been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
24
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 7/31/05
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[The following table was depicted as a pie chart in the printed material.]
Equity 75%
Fixed Income 25%
Large Cap Growth Stocks 15.0%
- --------------------------------------------------------------------------------
Large Cap Value Stocks 19.0
- --------------------------------------------------------------------------------
Mid/Small Cap Growth Stocks 7.0
- --------------------------------------------------------------------------------
Mid/Small Cap Value Stocks 10.0
- --------------------------------------------------------------------------------
International Stocks 16.0
- --------------------------------------------------------------------------------
Emerging Markets 4.0
- --------------------------------------------------------------------------------
Real Estate (REITs) 4.0
- --------------------------------------------------------------------------------
High Yield Bonds 5.0
- --------------------------------------------------------------------------------
Bonds 9.5
- --------------------------------------------------------------------------------
Short Term Bonds 10.5
- --------------------------------------------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------- -------------------------------------
Pioneer Fund 11.81% Pioneer International Equity 13.96%
- ------------------------------------------- -------------------------------------
Pioneer Research 6.99 Pioneer Emerging Markets 4.99
- ------------------------------------------- -------------------------------------
Pioneer Oak Ridge Large Cap Growth 8.22 Bonds
- ------------------------------------------- -------------------------------------
Pioneer Value 8.83 Pioneer High Yield 2.95%
- ------------------------------------------- -------------------------------------
Pioneer Cullen Value 3.95 Pioneer Bond 10.80
- ------------------------------------------- -------------------------------------
Pioneer Mid Cap Growth 0.18 Pioneer Short Term Income 9.81
- ------------------------------------------- -------------------------------------
Pioneer Mid Cap Value 10.07
- -------------------------------------------
Pioneer Small Cap Value 3.06
- -------------------------------------------
Pioneer Real Estate 4.38
- -------------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio holdings
will vary for other periods.
25
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/05 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund at public offering
price, compared to that of the Standard & Poor's 500 Stock Index.
Average Annual Total Returns
(As of July 31, 2005)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 17.96% 11.18%
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Ibbotson Growth Standard & Poor's
Allocation Fund 500 Stock Index
--------------- ---------------
8/04 $ 9,425 $10,000
7/05 $10,892 $11,359
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
26
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/05 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund, compared to that of
the Standard & Poor's 500 Stock Index.
Average Annual Total Returns
(As of July 31, 2005)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 7.59% 3.69%
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Ibbotson Growth Standard & Poor's
Allocation Fund 500 Stock Index
--------------- ---------------
8/04 $10,000 $10,000
7/05 $10,656 $11,359
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerfunds.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
27
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/05 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund, compared to that of
the Standard & Poor's 500 Stock Index.
Average Annual Total Returns
(As of July 31, 2005)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 13.67% 12.67%
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Ibbotson Growth Standard & Poor's
Allocation Fund 500 Stock Index
--------------- ---------------
8/04 $10,000 $10,000
7/05 $11,210 $11,359
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not reflect
the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. "If Held"
results represent the percent change in net asset value per share. Returns would
have been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
28
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 7/31/05
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[The following table was depicted as a pie chart in the printed material.]
Equity 90%
Fixed Income 10%
Large Cap Growth Stocks 17.0%
- --------------------------------------------------------------------------------
Large Cap Value Stocks 21.0
- --------------------------------------------------------------------------------
Mid/Small Cap Growth Stocks 8.5
- --------------------------------------------------------------------------------
Mid/Small Cap Value Stocks 12.5
- --------------------------------------------------------------------------------
International Stocks 21.0
- --------------------------------------------------------------------------------
Emerging Markets 5.0
- --------------------------------------------------------------------------------
Real Estate (REITs) 5.0
- --------------------------------------------------------------------------------
High Yield Bonds 2.0
- --------------------------------------------------------------------------------
Bonds 8.0
- --------------------------------------------------------------------------------
Short Term Bonds 0.0
- --------------------------------------------------------------------------------
Cash Equivalents 0.0
- --------------------------------------------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------- -------------------------------------
Pioneer Fund 11.50% Pioneer International Equity 17.68%
- ------------------------------------------- -------------------------------------
Pioneer Research 8.72 Pioneer Emerging Markets 5.84
- ------------------------------------------- -------------------------------------
Pioneer Oak Ridge Large Cap Growth 8.80 Bonds
- ------------------------------------------- -------------------------------------
Pioneer Value 11.48 Pioneer Bond 9.54%
- ------------------------------------------- -------------------------------------
Pioneer Cullen Value 4.86
- -------------------------------------------
Pioneer Mid Cap Growth 0.65
- -------------------------------------------
Pioneer Mid Cap Value 11.49
- -------------------------------------------
Pioneer Small Cap Value 3.98
- -------------------------------------------
Pioneer Real Estate 5.46
- -------------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio holdings
will vary for other periods.
29
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/05 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund at public
offering price, compared to that of the Standard & Poor's 500 Stock Index.
Average Annual Total Returns
(As of July 31, 2005)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 21.57% 14.58%
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Ibbotson Aggressive Standard & Poor's
Allocation Fund 500 Stock Index
--------------- ---------------
8/04 $ 9,425 $10,000
7/05 $11,173 $11,359
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
30
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/05 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index.
Average Annual Total Returns
(As of July 31, 2005)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 17.02% 13.02%
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Ibbotson Aggressive Standard & Poor's
Allocation Fund 500 Stock Index
--------------- ---------------
8/04 $10,000 $10,000
7/05 $11,290 $11,359
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerfunds.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
31
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/05 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index.
Average Annual Total Returns
(As of July 31, 2005)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 18.52% 17.52%
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Ibbotson Aggressive Standard & Poor's
Allocation Fund 500 Stock Index
--------------- ---------------
8/04 $10,000 $10,000
7/05 $11,463 $11,359
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not reflect
the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. "If Held"
results represent the percent change in net asset value per share. Returns would
have been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
32
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 7/31/05
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 88.8%
PIONEER FUNDS - 88.8%
45,991 Pioneer Bond Fund Class Y $ 424,954
2,043 Pioneer Cullen Value Fund Class Y 34,448
1,575 Pioneer Fund Class Y 68,525
15,098 Pioneer High Yield Fund Class Y 171,821
5,667 Pioneer International Equity Fund Class Y 120,654
1,237 Pioneer Mid Cap Value Fund Class Y 34,227
4,416 Pioneer Oak Ridge Large Cap Growth Fund Class Y 58,772
8,875 Pioneer Research Fund Class Y 85,647
43,229 Pioneer Short Term Income Fund Class Y 424,508
1,733 Pioneer Strategic Income Fund Class Y 18,495
7,412 Pioneer Value Fund Class Y 135,856
TOTAL INVESTMENTS IN SECURITIES - 88.8%
(Cost $1,556,676)(a) $1,577,907
----------
OTHER ASSETS AND LIABILITIES - 11.2% 199,073
----------
TOTAL NET ASSETS - 100.0% $1,776,980
==========
(a) At July 31, 2005, the net unrealized gain on investments based on cost for
federal tax purposes of $1,556,692 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $24,290
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (3,075)
-------
Net unrealized gain $21,215
=======
Purchases and sales of securities (excluding temporary cash investments) for the
period ended July 31, 2005 aggregated $1,645,058 and $88,783, respectively.
The accompanying notes are an integral part of these financial statements. 33
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 7/31/05
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 94.2%
PIONEER FUNDS - 94.2%
834,063 Pioneer Bond Fund Class Y $ 7,706,739
102,465 Pioneer Cullen Value Fund Class Y 1,727,560
65,069 Pioneer Emerging Markets Fund Class Y 1,449,738
144,649 Pioneer Fund Class Y 6,292,236
302,294 Pioneer High Yield Fund Class Y 3,440,107
275,664 Pioneer International Equity Fund Class Y 5,868,889
13,188 Pioneer Mid Cap Growth Fund Class Y 206,136
103,120 Pioneer Mid Cap Value Fund Class Y 2,853,332
365,474 Pioneer Oak Ridge Large Cap Growth Fund Class Y 4,864,460
62,959 Pioneer Real Estate Shares Fund Class Y 1,741,455
415,156 Pioneer Research Fund Class Y 4,006,259
873,107 Pioneer Short Term Income Fund Class Y 8,573,909
36,238 Pioneer Small Cap Value Fund Class Y 1,251,656
248,878 Pioneer Value Fund Class Y 4,561,940
TOTAL INVESTMENTS IN SECURITIES - 94.2%
(Cost $52,336,653)(a) $54,544,416
-----------
OTHER ASSETS AND LIABILITIES - 5.8% 3,352,218
-----------
TOTAL NET ASSETS - 100.0% $57,896,634
===========
(a) At July 31, 2005, the net unrealized gain on investments based on cost for
federal tax purposes of $52,404,303 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $2,260,271
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (120,158)
----------
Net unrealized gain $2,140,113
==========
Purchases and sales of securities (excluding temporary cash investments) for the
period ended July 31, 2005 aggregated $56,882,831 and $4,451,634, respectively.
34 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 7/31/05
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 99.5%
PIONEER FUNDS - 99.5%
655,147 Pioneer Bond Fund Class Y $ 6,053,556
131,641 Pioneer Cullen Value Fund Class Y 2,219,474
125,432 Pioneer Emerging Markets Fund Class Y 2,794,625
152,038 Pioneer Fund Class Y 6,613,672
145,415 Pioneer High Yield Fund Class Y 1,654,821
367,298 Pioneer International Equity Fund Class Y 7,819,767
6,368 Pioneer Mid Cap Growth Fund Class Y 99,527
203,805 Pioneer Mid Cap Value Fund Class Y 5,639,288
345,766 Pioneer Oak Ridge Large Cap Growth Fund Class Y 4,602,142
88,554 Pioneer Real Estate Shares Fund Class Y 2,449,392
405,580 Pioneer Research Fund Class Y 3,913,844
559,822 Pioneer Short Term Income Fund Class Y 5,497,448
49,632 Pioneer Small Cap Value Fund Class Y 1,714,301
269,857 Pioneer Value Fund Class Y 4,946,474
TOTAL INVESTMENTS IN SECURITIES - 99.5%
(Cost $53,358,791)(a) $56,018,331
-----------
OTHER ASSETS AND LIABILITIES - 0.5% 286,055
-----------
TOTAL NET ASSETS - 100.0% $56,304,386
===========
(a) At July 31, 2005, the net unrealized gain on investments based on cost for
federal tax purposes of $53,361,821 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $2,752,945
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (96,435)
----------
Net unrealized gain $2,656,510
==========
Purchases and sales of securities (excluding temporary cash investments) for the
period ended July 31, 2005 aggregated $53,837,671 and $477,147, respectively.
The accompanying notes are an integral part of these financial statements. 35
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 7/31/05
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 99.7%
PIONEER FUNDS - 99.7%
346,787 Pioneer Bond Fund Class Y $ 3,204,308
96,869 Pioneer Cullen Value Fund Class Y 1,633,213
87,984 Pioneer Emerging Markets Fund Class Y 1,960,278
88,849 Pioneer Fund Class Y 3,864,935
278,853 Pioneer International Equity Fund Class Y 5,936,784
13,861 Pioneer Mid Cap Growth Fund Class Y 216,642
139,517 Pioneer Mid Cap Value Fund Class Y 3,860,440
222,080 Pioneer Oak Ridge Large Cap Growth Fund Class Y 2,955,878
66,272 Pioneer Real Estate Shares Fund Class Y 1,833,083
303,487 Pioneer Research Fund Class Y 2,928,650
38,666 Pioneer Small Cap Value Fund Class Y 1,335,521
210,442 Pioneer Value Fund Class Y 3,857,395
TOTAL INVESTMENTS IN SECURITIES - 99.7%
(Cost $31,781,475)(a) $33,587,127
-----------
OTHER ASSETS AND LIABILITIES - 0.3% 91,875
-----------
TOTAL NET ASSETS - 100.0% $33,679,002
===========
(a) At July 31, 2005, the net unrealized gain on investments based on cost for
federal tax purposes of $31,783,129 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $1,824,628
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (20,630)
----------
Net unrealized gain $1,803,998
==========
Purchases and sales of securities (excluding temporary cash investments) for the
period ended July 31, 2005 aggregated $32,127,105 and $346,964, respectively.
36 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- -----------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES 7/31/05
- -----------------------------------------------------------------------------
Conservative Moderate Growth Aggressive
Allocation Allocation Allocation Allocation
Fund Fund Fund Fund
ASSETS:
Investments in securities of affiliated
issuers, at value (at cost
$1,556,676, $52,336,653,
$53,358,791 and $31,781,475,
respectively) $1,577,907 $54,544,416 $56,018,331 $33,587,127
Cash 328,224 4,271,234 766,696 820,568
Receivables:
Investment securities sold - 3,492 1,424 -
Fund shares sold 34,182 249,631 673,859 330,528
Due from Pioneer Investment
Management, Inc. 68,802 16,209 19,397 20,673
Other assets - - 157 21
---------- ----------- ----------- -----------
Total assets $2,009,115 $59,084,982 $57,479,864 $34,758,917
========== =========== =========== ===========
LIABILITIES:
Payables:
Securities purchased $ 193,360 $ 1,077,848 $ 1,072,418 $ 998,788
Fund shares redeemed - 24,692 13,756 5,537
Due to affiliates 1,239 40,311 41,303 25,175
Accrued expenses and other liabilities 37,536 45,497 48,001 50,415
---------- ----------- ----------- -----------
Total liabilities $ 232,135 $ 1,188,348 $ 1,175,478 $ 1,079,915
========== =========== =========== ===========
NET ASSETS:
Paid-in capital $1,750,547 $55,596,717 $53,586,581 $31,875,004
Undistributed net investment income 4,801 159,804 61,295 -
Accumulated net realized gain (loss)
on investments 401 (67,650) (3,030) (1,654)
Net unrealized gain on investments 21,231 2,207,763 2,659,540 1,805,652
---------- ----------- ----------- -----------
Total net assets $1,776,980 $57,896,634 $56,304,386 $33,679,002
========== =========== =========== ===========
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of
shares authorized)
Net Assets of Class A Shares $ 877,099 $32,893,335 $31,212,187 $20,689,114
Net Assets of Class B shares $ 220,517 $ 9,780,552 $10,218,550 $ 5,845,437
Net Assets of Class C shares $ 679,364 $15,222,747 $14,873,649 $ 7,144,451
========== =========== =========== ===========
Class A Shares outstanding 85,250 2,949,659 2,715,151 1,749,957
Class B Shares outstanding 21,447 907,950 972,782 513,143
Class C Shares outstanding 66,247 1,425,454 1,339,837 619,157
========== =========== =========== ===========
Net Asset Value - Class A Share $ 10.29 $ 11.15 $ 11.50 $ 11.82
Net Asset Value - Class B Share $ 10.28 $ 10.77 $ 10.50 $ 11.39
Net Asset Value - Class C Share $ 10.26 $ 10.68 $ 11.10 $ 11.54
========== =========== =========== ===========
MAXIMUM OFFERING PRICE:
Class A (100 [divided by] 94.25 x net asset
value per share) $ 10.92 $ 11.83 $ 12.20 $ 12.54
========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 37
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
* For the Period 5/12/05 (Commencement of operations) to 7/31/05
** For the Period 8/9/04 (Commencement of operations) to 7/31/05
Conservative Moderate Growth Aggressive
Allocation Allocation Allocation Allocation
Fund* Fund** Fund** Fund**
INVESTMENT INCOME:
Dividend income on securities of
affiliated issuers $ 6,405 $ 485,025 $ 356,262 $ 135,593
Interest 641 37,964 8,734 4,405
--------- ---------- ---------- ----------
Total investment income $ 7,046 $ 522,989 $ 364,996 $ 139,998
--------- ---------- ---------- ----------
EXPENSES:
Management fees $ 310 $ 32,536 $ 29,847 $ 16,867
Transfer agent fees
Class A 128 21,117 29,026 26,367
Class B 128 8,168 13,385 6,475
Class C 128 9,615 12,163 7,094
Distribution fees
Class A 321 37,133 31,499 18,717
Class B 328 39,681 39,930 23,129
Class C 765 62,335 63,664 31,753
Custodian fees 3,074 38,467 39,833 35,838
Registration fees 48,247 85,302 85,312 85,302
Professional fees 36,849 42,533 39,597 40,555
Printing expense 4,037 11,760 11,786 11,509
Fees and expenses of nonaffiliated
trustees 1,537 4,829 4,822 4,800
Insurance expense - 334 501 334
Miscellaneous 3,710 3,171 3,172 3,170
--------- ---------- ---------- ----------
Total expenses $ 99,562 $ 396,981 $ 404,537 $ 311,910
--------- ---------- ---------- ----------
Less fees paid reimbursed by Pioneer
Investment Management, Inc. $ (96,722) $ (111,716) $ (124,854) $ (150,695)
--------- ---------- ---------- ----------
Net expenses $ 2,840 $ 285,265 $ 279,683 $ 161,215
--------- ---------- ---------- ----------
Net investment income (loss) $ 4,206 $ 237,724 $ 85,313 $ (21,217)
--------- ---------- ---------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS IN
SECURITIES OF AFFILIATED ISSUERS:
Net realized gain (loss) on investments $ 401 $ (94,544) $ (1,733) $ 1,333
Realized gain distributions from
investment company shares - 396,334 313,344 194,299
Change in net unrealized gain on
investments 21,231 2,207,763 2,659,540 1,805,652
--------- ---------- ---------- ----------
Net gain on investments $ 21,632 $2,509,553 $2,971,151 $2,001,284
--------- ---------- ---------- ----------
Net increase in net assets resulting
from operations $ 25,838 $2,747,277 $3,056,464 $1,980,067
========= ========== ========== ==========
38 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- -----------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------
* For the Period 5/12/05 (Commencement of operations) to 7/31/05
** For the Period 8/9/04 (Commencement of operations) to 7/31/05
Conservative Moderate Growth Aggressive
Allocation Allocation Allocation Allocation
Fund* Fund** Fund** Fund**
FROM OPERATIONS:
Net investment income (loss) $ 4,206 $ 237,724 $ 85,313 $ (21,217)
Net realized gain on investments 401 301,790 311,611 195,632
Change in net unrealized gain on
investments 21,231 2,207,763 2,659,540 1,805,652
---------- ------------ ------------ ------------
Net increase in net assets resulting
from operations $ 25,838 $ 2,747,277 $ 3,056,464 $ 1,980,067
---------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income
Class A ($0.00, $0.04, $0.03 and
$0.00, respectively) $ - $ (45,923) $ (22,438) $ -
Class B - - - -
Class C ($0.00, $0.01, $0.01 and
$0.00, respectively) - (4,387) (2,600) -
Net realized gain on investments
Class A ($0.00, $0.23, $0.25 and
$0.27, respectively) - (248,071) (163,365) (92,234)
Class B ($0.00, $0.23, $0.25 and
$0.27, respectively) - (58,542) (62,965) (37,320)
Class C ($0.00, $0.23, $0.25 and
$0.27, respectively) - (93,285) (88,675) (47,257)
Return of capital
Class A ($0.00, $0.00, $0.00 and
$0.05, respectively) - - - (16,797)
Class B ($0.00, $0.00, $0.00 and
$0.03, respectively) - - - (3,788)
Class C ($0.00, $0.00, $0.00 and
$0.03, respectively) - - - (4,796)
---------- ------------ ------------ ------------
Total distributions to shareowners $ - $ (450,208) $ (340,043) $ (202,192)
---------- ------------ ------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $1,451,162 $ 59,474,035 $ 56,458,098 $ 33,604,731
Reinvestment of distributions - 294,903 285,838 168,962
Cost of shares repurchased (20) (4,214,373) (3,200,971) (1,917,566)
---------- ------------ ------------ ------------
Net increase in net assets resulting
from fund share transactions $1,451,142 $ 55,554,565 $ 53,542,965 $ 31,856,127
---------- ------------ ------------ ------------
Net increase in net assets $1,476,980 $ 57,851,634 $ 56,259,386 $ 33,634,002
NET ASSETS:
Beginning of period (Initial capitalization -
30,000, 4,500, 4,500 and 4,500
shares, respectively, per fund) 300,000 45,000 45,000 45,000
---------- ------------ ------------ ------------
End of period (including undistributed
net investment income of $4,801,
$159,804, $61,295 and $0,
respectively) $1,776,980 $ 57,896,634 $ 56,304,386 $ 33,679,002
========== ============ ============ ============
The accompanying notes are an integral part of these financial statements. 39
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
Conservative Moderate
Allocation Allocation
Fund* Fund**
-------------------------- ------------------------------
Shares Amount Shares Amount
CLASS A
Shares sold 75,252 $763,192 3,174,114 $33,967,502
Reinvestment of distributions - - 17,263 185,747
Less shares repurchased (2) (20) (243,218) (2,627,215)
------ -------- --------- -----------
Net increase 75,250 $763,172 2,948,159 $31,526,034
====== ======== ========= ===========
CLASS B
Shares sold 11,447 $116,425 956,645 $ 9,913,133
Reinvestment of distributions - - 5,162 53,946
Less shares repurchased - - (55,357) (574,934)
------ -------- --------- -----------
Net increase 11,447 $116,425 906,450 $ 9,392,145
====== ======== ========= ===========
CLASS C
Shares sold 56,247 $571,545 1,516,928 $15,593,400
Reinvestment of distributions - - 5,329 55,210
Less shares repurchased - - (98,303) (1,012,224)
------ -------- --------- -----------
Net increase 56,247 $571,545 1,423,954 $14,636,386
====== ======== ========= ===========
Growth Aggressive
Allocation Allocation
Fund** Fund**
------------------------------- ----------------------------
Shares Amount Shares Amount
CLASS A
Shares sold 2,872,133 $31,415,731 1,830,200 $20,539,993
Reinvestment of distributions 15,346 168,809 8,741 98,166
Less shares repurchased (173,828) (1,918,265) (90,484) (1,020,697)
--------- ----------- --------- -----------
Net increase 2,713,651 $29,666,275 1,748,457 $19,617,462
========= =========== ========= ===========
CLASS B
Shares sold 1,032,426 $10,360,090 537,702 $ 5,801,097
Reinvestment of distributions 5,558 56,193 3,181 34,579
Less shares repurchased (66,702) (673,461) (29,240) (316,350)
--------- ----------- --------- ------------
Net increase 971,282 $ 9,742,822 511,643 $ 5,519,326
========= =========== ========= ===========
CLASS C
Shares sold 1,389,335 $14,682,277 667,003 $ 7,263,641
Reinvestment of distributions 5,702 60,836 3,286 36,217
Less shares repurchased (56,700) (609,245) (52,632) (580,519)
--------- ----------- --------- -----------
Net increase 1,338,337 $14,133,868 617,657 $ 6,719,339
========= =========== ========= ===========
* For the Period 5/12/05 (Commencement of operations) to 7/31/05.
** For the Period 8/9/04 (Commencement of operations) to 7/31/05.
40 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative Allocation Fund
For the period 5/12/05(a) to 7/31/05
---------------------------------------
Class A Class B Class C
Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00
------- ------- -------
Increase from investment operations:
Net investment income (b) $ 0.05 $ 0.03 $ 0.03
Net realized and unrealized gain on investments 0.24 0.25 0.23
------- ------- -------
Net increase from investment operations $ 0.29 $ 0.28 $ 0.26
------- ------- -------
Distributions to shareowners:
Net investment income $ - $ - $ -
Net realized gain - - -
------- ------- -------
Net increase in net asset value $ 0.29 $ 0.28 $ 0.26
------- ------- -------
Net asset value, end of period $ 10.29 $ 10.28 $ 10.26
------- ------- -------
Total return* 2.90% 2.80% 2.60%
Ratio of net expenses to average net assets**+ 0.78% 1.68% 1.68%
Ratio of net investment income to average net assets** 2.26% 1.23% 1.17%
Portfolio turnover rate*** 9% 9% 9%
Net assets, end of period (in thousands) $ 877 $ 221 $ 679
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account. Total returns for periods less than one year are not annualized.
** Annualized.
+ In the absence of expense reimbursement, expenses on an annualized basis
would have been 40.41%, 38.96% and 45.38% of average net assets,
respectively, for Class A, Class B and Class C shares.
*** Not annualized.
The accompanying notes are an integral part of these financial statements. 41
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Moderate Allocation Fund
For the period 8/9/04(a) to 7/31/05
--------------------------------------
Class A Class B Class C
Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00
------- ------- -------
Increase from investment operations:
Net investment income (b) $ 0.15 $ 0.02 $ 0.05
Net realized and unrealized gain on investments 1.27 0.98 0.87
------- ------- -------
Net increase from investment operations $ 1.42 $ 1.00 $ 0.92
------- ------- -------
Distributions to shareowners:
Net investment income $ (0.04) $ - $ (0.01)
Net realized gain (0.23) (0.23) (0.23)
------- ------- -------
Net increase in net asset value $ 1.15 $ 0.77 $ 0.68
------- ------- -------
Net asset value, end of period $ 11.15 $ 10.77 $ 10.68
------- ------- -------
Total return* 14.37% 10.11% 9.32%
Ratio of net expenses to average net assets**+ 0.77% 1.67% 1.67%
Ratio of net investment income to average net assets** 1.37% 0.16% 0.44%
Portfolio turnover rate*** 19% 19% 19%
Net assets, end of period (in thousands) $32,893 $ 9,781 $15,223
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account. Total returns for periods less than one year are not annualized.
** Annualized.
+ In the absence of expense reimbursement, expenses on an annualized basis
would have been 1.26%, 2.08% and 2.03% of average net assets, respectively,
for Class A, Class B and Class C shares.
*** Not annualized.
42 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth Allocation Fund
For the period 8/9/04(a) to 7/31/05
--------------------------------------
Class A Class B Class C
Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00
------- ------- -------
Increase from investment operations:
Net investment income (loss) (b) $ 0.08 $ 0.01 $ (0.01)
Net realized and unrealized gain on investments 1.70 0.74 1.37
------- ------- -------
Net increase from investment operations $ 1.78 $ 0.75 $ 1.36
------- ------- -------
Distributions to shareowners:
Net investment income $ (0.03) $ - $ (0.01)
Net realized gain (0.25) (0.25) (0.25)
------- ------- -------
Net increase in net asset value $ 1.50 $ 0.50 $ 1.10
------- ------- -------
Net asset value, end of period $ 11.50 $ 10.50 $ 11.10
------- ------- -------
Total return* 17.96% 7.59% 13.67%
Ratio of net expenses to average net assets**+ 0.81% 1.71% 1.71%
Ratio of net investment income (loss) to average net assets** 0.69% 0.05% (0.07)%
Portfolio turnover rate*** 2% 2% 2%
Net assets, end of period (in thousands) $31,212 $10,219 $14,874
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account. Total returns for periods less than one year are not annualized.
** Annualized.
+ In the absence of expense reimbursement, expenses on an annualized basis
would have been 1.42%, 2.27% and 2.13% of average net assets, respectively,
for Class A, Class B and Class C shares.
*** Not annualized.
The accompanying notes are an integral part of these financial statements. 43
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
For the period 8/9/04(a) to 7/31/05
-----------------------------------------
Class A Class B Class C
Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00
------- ------- -------
Increase from investment operations:
Net investment income (loss) (b) $ - $ (0.03) $ (0.04)
Net realized and unrealized gain on investments 2.14 1.72 1.88
------- ------- -------
Net increase from investment operations $ 2.14 $ 1.69 $ 1.84
------- ------- -------
Distributions to shareowners:
Net realized gain $ (0.27) $ (0.27) $ (0.27)
Return of capital (0.05) (0.03) (0.03)
------- ------- -------
Net increase in net asset value $ 1.82 $ 1.39 $ 1.54
------- ------- -------
Net asset value, end of period $ 11.82 $ 11.39 $ 11.54
------- ------- -------
Total return* 21.57% 17.02% 18.52%
Ratio of net expenses to average net assets**+ 0.86% 1.76% 1.76%
Ratio of net investment income (loss) to average net assets** (0.04)% (0.26)% (0.39)%
Portfolio turnover rate*** 3% 3% 3%
Net assets, end of period (in thousands) $20,689 $ 5,845 $ 7,144
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account. Total returns for periods less than one year are not annualized.
** Annualized.
+ In the absence of expense reimbursement, expenses on an annualized basis
would have been 2.14%, 2.81% and 2.74% of average net assets, respectively,
for Class A, Class B and Class C shares.
*** Not annualized.
44 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/05
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Ibbotson Asset Allocation Series (the Trust) was organized as a
Delaware statutory trust on April 22, 2004 and is registered with the
Securities and Exchange Commission under the Investment Company Act of 1940
(the 1940 Act) as an open-end management investment company. The Trust consists
of four separate non-diversified funds (collectively, the Funds, individually,
the Fund) as follows:
Pioneer Ibbotson Conservative Allocation Fund (Conservative Fund)
Pioneer Ibbotson Moderate Allocation Fund (Moderate Fund)
Pioneer Ibbotson Growth Allocation Fund (Growth Fund)
Pioneer Ibbotson Aggressive Allocation Fund (Aggressive Fund)
The investment objective of the Conservative Fund is to seek long-term capital
growth and current income. The Moderate Fund seeks a balance between long-term
capital growth and current income. The Growth Fund seeks a balance between
long-term capital growth and current income. The Aggressive Fund seeks
long-term capital growth.
Each Fund is a "fund of funds," which means that it seeks to achieve its
investment objective by investing in other funds ("underlying funds") rather
than by direct investment in securities. The Funds indirectly pay a portion of
the expenses incurred by the underlying funds. Consequently, an investment in
the Funds entails more direct and indirect expenses than direct investment in
the underlying funds. The Funds currently invest exclusively in other regulated
investment companies managed by Pioneer Investment Management, Inc. (PIM). In
the future, the Funds also may invest in regulated investment companies (Third
Party Managed Assets) that are not managed by PIM.
Each Fund offers three classes of shares - Class A, Class B, and Class C. Each
class of shares represents an interest in the same portfolio of investments of
the Fund and has equal rights to voting, redemptions, dividends and
liquidation, except that each class of shares can bear different transfer agent
and distribution fees and have exclusive voting rights with respect to the
distribution plans that have been adopted by Class A, Class B and Class C
shareowners, respectively.
The financial statements have been prepared in accordance with United States
generally accepted accounting principles that require the management of the
Fund to make estimates and assumptions
45
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/05 (continued)
- --------------------------------------------------------------------------------
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses during the
reporting period. Actual results could differ from these estimates. The
following is a summary of significant accounting policies consistently followed
by the Trust in the preparation of its financial statements, which are in
conformity with those generally accepted in the investment company industry.
A. Security Valuation
Security transactions are recorded as of the trade date. The net asset value
is computed once daily, on each day the New York Stock Exchange is open, as
of the close of regular trading on the Exchange. In computing the net asset
value, holdings of mutual fund shares are valued at the net asset value of
each fund. Dividend income is recorded on the ex-dividend date. Temporary
cash investments are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and Federal income tax purposes.
B. Federal Income Taxes
It is the Funds' policy to comply with the requirements of the Internal
Revenue Service Code applicable to regulated investment companies and to
distribute all taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provisions are required.
The amount and characterization of distributions to shareowners for financial
reporting purposes is determined in accordance with federal income tax rules.
Therefore, the source of the Funds' distributions may be shown in the
accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
46
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
At July 31, 2005, certain Portfolios made reclassifications as described
below. These reclassifications have no impact on the net asset values of the
respective portfolios and are designed to present the Portfolios' capital
accounts on a tax basis.
Undistributed Accumulated
Net Investment Realized Gain/ Paid-In
Portfolio Income (Loss) (Loss) Capital
- ---------------------- ---------------- ---------------- ----------
Conservative Fund $ 595 $ - $ (595)
Moderate Fund (27,610) 30,458 (2,848)
Growth Fund 1,020 364 (1,384)
Aggressive Fund 21,217 (20,475) (742)
The tax character of distributions paid during the period ended July 31, 2005
was as follows:
Ordinary Long-Term Return of
Fund Income Capital Gains Capital Total
- ---------------------- ---------- --------------- ---------- -----------
Conservative Fund - - - -
Moderate Fund $115,810 $334,398 - $450,208
Growth Fund $ 55,896 $284,147 - $340,043
Aggressive Fund $ 1,317 $175,494 25,381 $202,192
The following shows the components of distributable earnings on a federal
income tax basis at July 31, 2005:
Undistributed Undistributed Net Unrealized
Ordinary Long-Term Appreciation
Fund Income Capital Gains (Depreciation)
- ---------------------- --------------- --------------- ---------------
Conservative Fund $ 5,218 - $ 21,215
Moderate Fund $159,804 - $2,140,113
Growth Fund $ 61,295 - $2,656,510
Aggressive Fund - - $1,803,998
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
C. Fund Shares
The Board of Trustees has authorized the issuance of three classes of shares,
designated as Class A, Class B and Class C. Additional classes of shares have
been authorized but are not referenced in the Fund's prospectus. For the
Conservative Allocation Fund, Class A, Class B and Class C shares were
offered for sale to the public on May 12, 2005. For the Moderate Allocation,
Growth Allocation and
47
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/05 (continued)
- --------------------------------------------------------------------------------
Aggressive Allocation Funds, Class A, Class B and Class C shares were offered
for sale to the public on August 9, 2004. Shares of each class represent an
interest in the same portfolio of investments of the Fund and have equal
rights as to voting, redemptions, dividends and liquidation, except that the
level of transfer agent and distribution fees may differ among classes. Class
A, Class B and Class C shareowners have exclusive voting rights with respect
to distribution plans for each class.
The Funds record sales and repurchases of Fund shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Funds and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.
(UniCredito Italiano), earned the following in underwriting commissions
during the period ended July 31, 2005:
Fund Amount
- --------------------------- --------
Conservative Fund $ 953
Moderate Fund $ 97,640
Growth Fund $104,682
Aggressive Fund $ 65,697
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of each Fund,
respectively, (see Note 4). Shareowners of each class share all expenses and
fees paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), a wholly owned indirect subsidiary of UniCredito
Italiano, for its services, which are allocated based on the number of
accounts in each class and the ratable allocation of related out-of-pocket
expenses (see Note 3). Income, common expenses and realized and unrealized
gains and losses are calculated at the Fund level and allocated daily to each
class of shares based on the respective percentage of adjusted net assets at
the beginning of the day.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by each of the Funds with respect to each class of shares
are calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution fees.
48
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Funds, the value of
the underlying securities (collateral), including accrued interest received
from counterparties, is required to be at least equal to or in excess of the
value of the repurchase agreement at the time of the purchase. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Funds' custodian, or subcustodians. The Funds' investment
adviser, PIM, is responsible for determining that the value of the collateral
remains at least equal to the repurchase price.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, is the Funds'
investment adviser, and manages the Funds' portfolios. Management fees are
calculated daily at the following annual rates on Pioneer managed assets:
Management Fee as a Percentage
of each Fund's Average
Fund Daily Net Assets
- --------------------------- -------------------------------
Conservative Fund 0.13%
Moderate Fund 0.13%
Growth Fund 0.13%
Aggressive Fund 0.13%
For each fund, management fees will be calculated daily at a 0.17% annual rate
on any Third Party managed assets.
PIM has entered into a sub-advisory agreement with Ibbotson Associates, LLC.
PIM, not the Funds, pays a portion of the fee it receives from each Fund to
Ibbotson Associates as compensation for its services to the Funds.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, will be paid by the Funds. At July 31, 2005, the following fees were
payable to PIM relating to
49
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/05 (continued)
- --------------------------------------------------------------------------------
management fees and certain other services and are included in due to
affiliates:
Fund Amount
- --------------------------- ---------
Conservative Fund $ 165
Moderate Fund $6,188
Growth Fund $6,001
Aggressive Fund $3,485
From August 9, 2004 through January 31, 2005, PIM did not impose all or a
portion of its management fees and assumed other operating expenses of the
Funds to the extent necessary to limit Class A, Class B and Class C expenses to
the following annual expense limitations:
Fund Class A Class B Class C
- ----------------- --------- --------- --------
Moderate Fund 0.90% 1.80% 1.80%
Growth Fund 0.93% 1.83% 1.83%
Aggressive Fund 0.93% 1.83% 1.83%
Effective February 1, 2005, PIM has further agreed to not impose all or a
portion of its management fees and assume other operating expenses of the Funds
to the extent necessary to limit Class A, Class B and Class C expenses to the
following annual expense limitations:
Fund Class A Class B Class C
- -------------------- --------- --------- --------
Conservative Fund* 0.78% 1.68% 1.68%
Moderate Fund 0.74% 1.64% 1.64%
Growth Fund 0.79% 1.69% 1.69%
Aggressive Fund 0.85% 1.75% 1.75%
* Commenced operations May 12, 2005
3. Transfer Agent
PIMSS provides substantially all transfer agent and shareowner services to the
Funds at negotiated rates. Included in due to affiliates are the following
amounts of transfer agent fees payable to PIMSS at July 31, 2005:
Fund Amount
- --------------------------- ---------
Conservative Fund $ 300
Moderate Fund $6,129
Growth Fund $7,627
Aggressive Fund $6,797
50
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. Distribution and Service Plans
The Funds have adopted Plans of Distribution with respect to Class A, Class B
and Class C shares (Class A Plan, Class B Plan and Class C Plan, respectively)
in accordance with Rule 12b-1 of the Investment Company Act of 1940. Pursuant
to the Class A Plan, the Funds pay PFD a service fee of up to 0.25% of the
Fund's average daily net assets attributable to Class A shares in reimbursement
of its actual expenditures to finance activities primarily intended to result
in the sale of Class A shares. Pursuant to the Class B Plan and the Class C
Plan, the Funds pay PFD 1.00% of the average daily net assets attributable to
each class of shares. The fee consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class
C shares. At July 31, 2005 the following amounts were payable to PFD relating
to distribution and service fees and are included in due to affiliates:
Fund Amount
- --------------------------- ----------
Conservative Fund $ 774
Moderate Fund $27,994
Growth Fund $27,675
Aggressive Fund $14,893
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within one year of
purchase. Class B shares that are redeemed within six years of purchase will be
subject to a CDSC at declining rates beginning at 4.00%, based on the lower of
cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%. For the period
ended July 31, 2005, the following CDSCs were paid to PFD:
Fund Amount
- ----------------------- ----------
Conservative Fund $ -
Moderate Fund $12,095
Growth Fund $ 8,669
Aggressive Fund $ 9,121
51
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/05 (continued)
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION (unaudited)
For the fiscal year ended July 31, 2005, certain dividends paid by the Funds
may be subject to a maximum tax rate of 15%, as provided for by the Jobs and
Growth Tax Relief Reconciliation Act (the Act) of 2003. The Funds designated up
to the maximum amount of such dividends allowable under the Act, as taxed at a
maximum rate of 15%. Complete information was computed and reported in
conjunction with your 2004 Form 1099-DIV.
The qualifying percentage of ordinary income dividends for the purposes of the
corporate dividends received deduction was:
Moderate Fund 80.26%
Growth Fund 100.00%
Aggressive Fund 100.00%
52
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of
Pioneer Ibbotson Asset Allocation Series:
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of Pioneer Ibbotson Asset Allocation
Series (the "Funds", comprising respectively the Pioneer Ibbotson Conservative
Allocation Fund, the Pioneer Ibbotson Moderate Allocation Fund, the Pioneer
Ibbotson Growth Allocation Fund and the Pioneer Ibbotson Aggressive Allocation
Fund) as of July 31, 2005, the related statements of operations, changes in net
assets and financial highlights for the periods from May 12, 2005 (commencement
of operations of the Pioneer Ibbotson Conservative Allocation Fund) to July 31,
2005 and August 9, 2004 (commencement of operations of Pioneer Ibbotson
Moderate Allocation Fund, the Pioneer Ibbotson Growth Allocation Fund and the
Pioneer Ibbotson Aggressive Allocation Fund) to July 31, 2005. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Funds' internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Funds' internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of July 31, 2005, by correspondence with
the Funds' custodian and the transfer agent of the underlying funds. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds constituting the Pioneer Ibbotson Asset Allocation
Series at July 31, 2005, the results of their operations, the changes in their
net assets and the financial highlights for each of the periods then ended, in
conformity with U.S. generally accepted accounting principles.
Boston, Massachusetts
September 12, 2005
53
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Board of Trustees provides broad supervision over the Fund's
affairs. The officers of the Fund are responsible for the Fund's operations.
The Fund's Trustees and officers are listed below, together with their
principal occupations during the past five years. Trustees who are interested
persons of the Fund within the meaning of the Investment Company Act of 1940
are referred to as Interested Trustees. Trustees who are not interested persons
of the Fund are referred to as Independent Trustees. Each of the Trustees
serves as a trustee of each of the 82 U.S. registered investment portfolios for
which Pioneer Investment Management, Inc. ("Pioneer") serves as investment
adviser (the "Pioneer Funds"). The address for all Interested Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Fund's statement of additional information provides more detailed
information regarding the Fund's Trustees and is available upon request,
without charge, by calling 1-800-225-6292.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.pioneerfunds.com and on the SEC's web site at
http://www.sec.gov.
54
Pioneer Ibbotson Asset Allocation Series
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation During Other Directorships Held
Name and Age With the Fund and Term of Office Past Five Years by this Trustee
John F. Cogan, Jr. (79)* Chairman of the Trustee since May Deputy Chairman and a Director of Chairman and Director of
Board, Trustee 2004. Serves until Pioneer Global Asset Management ICI Mutual Insurance
and President successor trustee is S.p.A. ("PGAM"); Non-Executive Company; Director of
elected or earlier Chairman and a Director of Pioneer Harbor Global Company,
retirement or removal Investment Management USA Inc. Ltd.
("PIM-USA"); Chairman and a
Director of Pioneer; Director of
Pioneer Alternative Investment
Management Limited (Dublin);
President and a Director of Pioneer
Alternative Investment Management
(Bermuda) Limited and affiliated
funds; President and Director of
Pioneer Funds Distributor, Inc.
("PFD"); President of all of the
Pioneer Funds; and Of Counsel
(since 2000, partner prior to
2000), Wilmer Cutler Pickering Hale
and Dorr LLP (counsel to PIM-USA
and the Pioneer Funds).
*Mr. Cogan is an Interested Trustee because he is an officer or director of Pioneer and certain of its affiliates.
- ------------------------------------------------------------------------------------------------------------------------------------
Osbert M. Hood (53)** Trustee and Trustee since April President and Chief Executive None
Executive Vice 2004. Serves until Officer, PIM-USA since May 2003
President successor trustee is (Director since January 2001);
elected or earlier President and Director of Pioneer
retirement or removal since May 2003; Chairman and
Director of Pioneer Investment
Management Shareholder Services,
Inc. ("PIMSS") since May 2003;
Executive Vice President of all of
the Pioneer Funds since June 2003;
Executive Vice President and Chief
Operating Officer of PIM-USA,
November 2000 to May 2003;
Executive Vice President, Chief
Financial Officer and Treasurer,
John Hancock Advisers, L.L.C.,
Boston, MA, November 1999 to
November 2000
**Mr. Hood is an Interested Trustee because he is an officer or director of Pioneer and certain of its affiliates.
- ------------------------------------------------------------------------------------------------------------------------------------
55
Pioneer Ibbotson Asset Allocation Series
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation During Other Directorships Held
Name, Age and Address With the Fund and Term of Office Past Five Years by this Trustee
David R. Bock **(61) Trustee Trustee since 2005. Senior Vice President and Chief Director of The
3050 K. Street NW, Serves until a Financial Officer, I-trax, Inc. Enterprise Social
Washington, DC 20007 successor trustee is (publicly traded health care Investment Company
elected or earlier services company) (2001 - present); (privately-held
retirement or Managing Partner, Federal City affordable housing
removal. Capital Advisors (boutique merchant finance company);
bank)(1995 - 2000; 2002 to 2004); Director of New York
Executive Vice President and Chief Mortgage Trust (publicly
Financial Officer, Pedestal Inc. traded mortgage REIT)
(internet-based mortgage trading
company) (2000 - 2002)
**Mr. Bock became a Trustee of the Fund on January 1, 2005.
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (57) Trustee Trustee since May President, Bush International Director of Brady
3509 Woodbine Street, 2004. Serves until (international financial advisory Corporation (industrial
Chevy Chase, MD 20815 successor trustee is firm) identification and
elected or earlier specialty coated
retirement or removal material products
manufacturer),
Millennium Chemicals,
Inc. (commodity
chemicals), Mortgage
Guaranty Insurance
Corporation, and R.J.
Reynolds Tobacco
Holdings, Inc. (tobacco)
- ------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (58) Trustee Trustee since May Founding Director, The Winthrop None
1001 Sherbrooke 2004. Serves until Group, Inc. (consulting firm);
Street West, successor trustee is Professor of Management, Faculty of
Montreal, Quebec, Canada elected or earlier Management, McGill University
H3A 1G5 retirement or removal
- ------------------------------------------------------------------------------------------------------------------------------------
56
Pioneer Ibbotson Asset Allocation Series
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation During Other Directorships Held
Name, Age and Address With the Fund and Term of Office Past Five Years by this Trustee
Marguerite A. Piret (57) Trustee Trustee since May President and Chief Executive Director of New America
One Boston Place, 2004. Serves until Officer, Newbury, Piret & Company, High Income Fund, Inc.
28th Floor, successor trustee is Inc. (investment banking firm) (closed-end investment
Boston, MA 02108 elected or earlier company)
retirement or removal
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (76) Trustee Trustee since May Senior Counsel, Sullivan & Cromwell Director, The Swiss
125 Broad Street, 2004. Serves until (law firm) Helvetia Fund, Inc.
New York, NY 10004 successor trustee is (closed-end investment
elected or earlier company) and AMVESCAP
retirement or removal PLC (investment
managers)
- ------------------------------------------------------------------------------------------------------------------------------------
John Winthrop (69) Trustee Trustee since May President, John Winthrop & Co., None
One North Adgers Wharf, 2004. Serves until Inc. (private investment firm)
Charleston, SC 29401 successor trustee is
elected or earlier
retirement or removal
- ------------------------------------------------------------------------------------------------------------------------------------
57
Pioneer Ibbotson Asset Allocation Series
- ------------------------------------------------------------------------------------------------------------------------------------
FUND OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation During Other Directorships Held
Name and Age With the Fund and Term of Office Past Five Years by this Officer
Dorothy E. Bourassa (57) Secretary Since April 2004. Secretary of PIM-USA; Senior Vice None
Serves at the President - Legal of Pioneer; and
discretion of the Secretary/Clerk of most of
Board PIM-USA's subsidiaries since
October 2000; Secretary of all of
the Pioneer Funds since September
2003 (Assistant Secretary from
November 2000 to September 2003);
and Senior Counsel, Assistant Vice
President and Director of
Compliance of PIM-USA from April
1998 through October 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (40) Assistant Since April 2004. Assistant Vice President and Senior None
Secretary Serves at the Counsel of Pioneer since July 2002;
discretion of the Vice President and Senior Counsel
Board 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 2003);
Assistant Secretary of all Pioneer
Funds since September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
David C. Phelan (48) Assistant Since April 2004. Partner, Wilmer Cutler Pickering None
Secretary Serves at the Hale and Dorr LLP; Assistant
discretion of the Secretary of all Pioneer Funds
Board since September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Vincent Nave (60) Treasurer Since April 2004. Vice President - Fund Accounting, None
Serves at the Administration and Custody Services
discretion of the of Pioneer; and Treasurer of all of
Board the Pioneer Funds (Assistant
Treasurer from June 1999 to
November 2000)
- ------------------------------------------------------------------------------------------------------------------------------------
58
Pioneer Ibbotson Asset Allocation Series
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation During Other Directorships Held
Name and Age With the Fund and Term of Office Past Five Years by this Officer
Mark E. Bradley (45) Assistant Since November, 2004. Deputy Treasurer of Pioneer since None
Treasurer Serves at the 2004; Treasurer and Senior Vice
discretion of the President, CDC IXIS Asset
Board Management Services from 2002 to
2003; Assistant Treasurer and Vice
President, MFS Investment
Management from 1997 to 2002; and
Assistant Treasurer of all of the
Pioneer Funds since November 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (40) Assistant Since April 2004. Assistant Vice President - Fund None
Treasurer Serves at the Accounting, Administration and
discretion of the Custody Services of Pioneer; and
Board Assistant Treasurer of all of the
Pioneer Funds since November 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (47) Assistant Since April 2004. Fund Accounting Manager - Fund None
Treasurer Serves at the Accounting, Administration and
discretion of the Custody Services of Pioneer; and
Board Assistant Treasurer of all of the
Pioneer Funds since May 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (31) Assistant Since April 2004. Fund Administration Manager - Fund None
Treasurer Serves at the Accounting, Administration and
discretion of the Custody Services since June 2003;
Board Assistant Vice President - Mutual
Fund Operations of State Street
Corporation from June 2002 to June
2003 (formerly Deutsche Bank Asset
Management); Pioneer Fund
Accounting, Administration and
Custody Services (Fund Accounting
Manager from August 1999 to May
2002, Fund Accounting Services
Supervisor from 1997 to July 1999);
Assistant Treasurer of all Pioneer
Funds since May 2002
- ------------------------------------------------------------------------------------------------------------------------------------
59
Pioneer Ibbotson Asset Allocation Series
- ------------------------------------------------------------------------------------------------------------------------------------
FUND OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation During Other Directorships Held
Name and Age With the Fund and Term of Office Past Five Years by this Officer
Martin J. Wolin (38) Chief Compliance Serves at the Chief Compliance Officer of Pioneer None
Officer discretion of the (Director of Compliance and Senior
Board Counsel from November 2000 to
September 2004); Vice President and
Associate General Counsel of UAM
Fund Services, Inc. (mutual fund
administration company) from
February 1998 to November 2000; and
Chief Compliance Officer of all of
the Pioneer Funds.
- ------------------------------------------------------------------------------------------------------------------------------------
The outstanding capital stock of PFD, PIM and PIMSS is indirectly wholly owned
by UniCredito Italiano S.p.A. ("UniCredito Italiano"), one of the largest
banking groups in Italy. PIM, the Fund's investment adviser, provides investment
management and financial services to mutual funds, institutional and other
clients.
60
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvest.com
(for general questions about Pioneer only)
Visit our website: www.pioneerfunds.com
Please consider the Fund's investment objectives, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about the Fund and should be read carefully before you invest. To obtain a
prospectus and for other information on any Pioneer fund, call 1-800-225-6292 or
visit our website www.pioneerfunds.com.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Audit Fees
Fees for audit services provided to the Fund, including
fees associated with the seed balance sheet audit and
annual filings of its Form N-1A totaled approximately
$132,000 in 2005.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no audit-related services provided to the
Fund for the fiscal year ended June 30, 2005.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Tax Fees
Fees for tax compliance services, primarily for tax
returns, totaled approximately $27,200 for 2005.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
Other Fees
There were no other services provided to the Fund
during the fiscal year ended June 30, 2005.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Funds audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Fund. For the
year ended June 30, 2005, there were no services
provided to an affiliate that required the Funds audit
committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The Fund's independent auditor, Ernst & Young
LLP ("E&Y"), has advised the Securities
and Exchange Commission, the Public Company
Accounting Oversight Board, and the Audit
Committee of the Fund's Board of Trustees that
certain non-audit work performed by E&Y's China
affiliate raised questions regarding E&Y's
independence with respect to its performance of
audit services for the Fund. In July 2004, E&Y
became aware that member firms in China ("E&Y
China") provided certain tax services to offices of
UniCredito Italiano, S.p.A. ("UCI"), a member of
the Fund's Investment Company Complex. The
services included receipt and disbursement of
monies transferred to E&Y China by UCI in
payment of individual expatriate income taxes due
on returns prepared by E&Y China for certain UCI
employees located in China from October 1998 to
May 2003. E&Y became auditors of the Fund in
May 2002. These expatriate tax services were
discontinued in May 2003. The fees received by
E&Y China for all such services totaled $3,685.
The Fund's Audit Committee and E&Y have
discussed the matter, including the nature of the
services provided, the personnel involved in
providing the services and the fees received by
E&Y for performing the services. E&Y has informed
the Audit Committee that based on its internal reviews
and the de minimis nature of the services provided and
fees received, it does not believe its independence
with respect to the Fund has been impaired.
Aggregate Non-Audit Fees
The aggregate non-audit fees for the Fund and
affiliates, as previously defined, totaled approximately
$27,200 in 2005.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer and principal financial
officer have concluded, that the registrant's disclosure controls and
procedures are effective based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Ibbotson Asset Allocation Series
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date September 29, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date September 29, 2005
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date September 29, 2005
* Print the name and title of each signing officer under his or her signature.