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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, 2005 through January 31, 2006
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
PIONEER
-------
IBBOTSON
ASSET ALLOCATION
SERIES
Semiannual
Report
1/31/06
[LOGO] PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Market Overview and Outlook 4
Comparing Ongoing Fund Expenses 7
Portfolio Reviews 15
Prices and Distributions 17
Conservative Allocation Fund - Portfolio Summary and
Performance Update 19
Moderate Allocation Fund - Portfolio Summary and
Performance Update 24
Growth Allocation Fund - Portfolio Summary and
Performance Update 29
Aggressive Allocation Fund - Portfolio Summary and
Performance Update 34
Schedule of Investments 39
Financial Statements 43
Notes to Financial Statements 65
Factors Considered by the Independent Trustees in Approving
the Management Contract 76
Trustees, Officers and Service Providers 80
Pioneer Ibbotson Asset Allocation Series
President's
Dear Shareowner,
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We would like to extend a special welcome to fund investors who have joined us
from the AmSouth Funds. On September 23, 2005 the transaction bringing all of
the AmSouth Funds to Pioneer Investments was finalized.
As we look back at 2005, U.S. investors can see a year of major challenges,
though without much change in the market indices. The problems in Iraq
continued, oil prices rose, and three major hurricanes hit the United States.
Short-term interest rates ratcheted steadily higher. Nevertheless, inflation
remained low, the economy and corporate earnings continued to grow, and
intermediate and long-term rates stayed about the same, signaling market
confidence that the Federal Reserve could control the inflationary pressures
induced by a rising economy.
The growing economy and profits were not reflected in the small gains in the
major U.S. stock market indices, as declining Price/Earnings ratios largely
offset earnings gains. Among capitalization ranges, Mid-caps continued to lead,
while Growth returns lagged Value only modestly.
The U.S. economy faces challenges in 2006, but from a position of relative
strength. Although overall U.S. economic growth may slow somewhat in 2006, this
would not necessarily be bad news for investors who are more concerned about
inflation risk than the risk of economic weakness.
Fourth quarter gross domestic (GDP) product was slower than the preceding
quarters, but this may be more of an aberration than an emerging trend as the
first quarter GDP is likely to be quite strong. Past increases in interest
rates and energy prices have not stalled economic, employment, or profit growth
yet. Recent Fed language ("...some further measured policy firming may be
needed to keep the risks to the attainment of both sustainable economic growth
and price stability roughly in balance.") suggested it is nearing the end of
its steady tightening of monetary policy. That said, the Fed has signaled it is
willing to continue to raise rates to prevent possible economic overheating and
a rise in inflation. In the interim, growth appears solid and inflation appears
to still be well-contained.
In 2005, rising interest rates and improving business conditions helped the
dollar strengthen versus the euro, yen, and other key
2
Pioneer Ibbotson Asset Allocation Series
Letter
currencies. The stronger dollar muted -- for U.S. investors -- the high stock
returns local investors in international markets enjoyed. Looking forward, the
economies of Europe, Japan, and the emerging markets appear likely to exhibit
continued growth and we continue to have a positive view of the opportunities
in international equity markets for the coming year. Like the U.S. Fed, though,
the European Central Bank and the Bank of Japan appear to be moving toward
higher interest rate policies as their economies strengthen, limiting the
opportunity for bond market rallies.
The breadth of economic possibilities here and abroad underscores the
importance of maintaining a well-diversified portfolio. We believe this is a
good time for investors to review their portfolio holdings with their advisor
and determine if their portfolios are positioned to benefit from the wide range
of investment opportunities that exist across many asset classes, and from the
risk reduction that prudent asset allocation can offer.
Respectfully,
/s/ Osbert M. Hood
Osbert M. Hood,
President
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of the report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Before investing, consider the fund's objectives, risks, charges and expenses.
Contact your advisor or Pioneer investments for a prospectus containing this
information. Read it carefully.
3
Pioneer Ibbotson Asset Allocation Series
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MARKET OVERVIEW AND OUTLOOK 1/31/06
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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 semiannual period ended January 31, 2006.
Q. Could you characterize the economic backdrop during the six months ended
January 31, 2006?
A. The U.S. economy continued to display healthy, if somewhat more moderate,
growth over the period. Inflation has shown signs of picking up, driven
primarily by high energy prices, although core inflation (which excludes
energy and food) has remained relatively subdued. A major development
during the period was the widespread damage that ensued as Hurricanes
Katrina and Rita hit the Gulf Coast in late August and September,
respectively. The short-term economic impact of this year's catastrophic
hurricane season is expected to be a modest drag on growth. 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 for much of this cycle of Fed tightening, although they
did finally begin to show signs of trending upwards during the period. In
this environment, equity markets overall have basically fluctuated within
a range. Performance eased during the period for the credit sensitive
sectors of the bond market, which had experienced an extended run of
attractive relative and absolute returns.
Q. What were the strategic considerations that you applied to the portfolios
in allocating assets?
A. Assets have continued to be invested in keeping with the respective broad
asset allocation and specific mutual fund targets initially established
for each portfolio. In addition, we implemented three strategies across
all the portfolios.
First, within the U.S. stock portion of the portfolios, as the semiannual
period began we maintained a moderate emphasis on value stocks and a
corresponding underweighting of more growth-oriented investments. This was
done because we believed the U.S. economy was in a slowing growth cycle
that would favor value equities with relatively stable earnings prospects.
We also believed that the potential for higher inflation and interest
rates favored the value
4
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
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investment style over growth. Our equity valuation and momentum models
further supported this assessment. As the period progressed, we removed
this overweighting of value stocks in favor of a neutral position between
the growth and value categories. This reflects our current view that there
is no clear direction with respect to leadership within the U.S. equity
market that would support an overweighting of either category, especially
given the additional uncertainty in the aftermath of Katrina and Rita.
With respect to the other equity asset classes, the portfolios' targeted
exposure across large-, mid-, and small-cap equities remained neutral
throughout the period. We have also maintained neutral target weightings
in the non-U.S. equity market alternatives, both developed and emerging.
The second strategic emphasis has been within the bond portion of the
portfolios, where we have continued to implement an underweighting of the
long-term bond vehicle, with the difference allocated to the shorter-term
fixed-income alternative. We believe that the prospect is for higher
long-term U.S. interest rates given the "twin" current account and budget
deficits, and that shorter duration fixed income investments present a
more attractive alternative. While this positioning has not helped our
performance as the yield curve has flattened, we continue to believe that
long-term rates will exhibit upward trends, and we are maintaining this
allocation. Elsewhere within fixed income, we have maintained neutral
positions in the high yield bond offering, as well as in the non-U.S.
fixed income option.
Finally, we continue to underweight REITs (real estate investment trusts)
in view of their extended run of outperformance and the prospect of higher
market interest rate levels. REITs have provided exceptional returns over
most of the past several years and are fully valued in our view,
especially given our expectation for continued cooling in the real estate
sector. In addition, REITs are traditionally most attractive to investors
seeking income return 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 continue to monitor economic indicators and
interest rates to evaluate whether we need to adjust the views underlying
our strategic allocations. In this vein, U.S. consumer sentiment has
recently shown signs of weakening while inflation has strengthened
somewhat, in both cases reflecting to a degree higher energy prices. In
addition, the yield curve flattened significantly over the second half of
2005, a trend that in the past has often been
5
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
MARKET OVERVIEW AND OUTLOOK 1/31/06 (continued)
- --------------------------------------------------------------------------------
associated with a slowing economy. The impact on consumer spending of the
slowing housing market, driven in part by the Fed's recent tightening,
will also bear close watching. We continue to view the financial markets
as lacking in clear direction, making appropriate diversification across
asset classes more important than ever as we enter a new calendar year.
Each portfolio's performance depends on the adviser's skill in determining the
strategic asset class allocations, the mix of underlying Pioneer funds, as well
as the performance of those underlying funds. The underlying funds' performance
may be lower than the performance of the asset class that they were selected to
represent. Stocks and bonds can decline due to adverse issuer, market,
regulatory, or economic developments. International markets may be less liquid
and can be more volatile than U.S. markets. These risk factors, including those
associated with currency exchange rates, also apply to investments in
international markets, all of which make international markets more volatile
and less liquid than investments in domestic markets. Some of the underlying
funds can invest in either high-yield securities or small/emerging growth
companies. Investments in these types of securities generally are subject to
greater volatility than either higher-grade securities or more-established
companies, respectively. Before making an investment in any portfolio, you
should consider all the risks associated with it.
Please see the Portfolio Reviews beginning on page 15 for information on
specific weightings and performance for each of the four portfolios in the
Pioneer Ibbotson Asset Allocation Series.
Any information in this shareholder report regarding market or economic trends
or the factors influencing each portfolios' historical or future performance
are statements of the opinion of the portfolios' management as of the date of
this report. These statements should not be relied upon for any other purposes.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
6
Pioneer Ibbotson Conservative Allocation Fund
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COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Conservative
Allocation Fund
Based on actual returns from August 1, 2005 through January 31, 2006.
Share Class A B C Y
- -----------------------------------------------------------------------------------------
Beginning Account Value
On 8/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/06 $1,031.40 $1,026.50 $1,026.60 $1,033.30
Expenses Paid During Period* $ 7.32 $ 11.90 $ 11.90 $ 5.43
* 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%,
2.33% and 1.06% for Class A, Class B, Class C and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period, and then multiplied by 184/365 (to reflect the
partial year period) to calculate the "Expenses Paid During Period" in the
table above.
7
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES 1/31/06 (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Conservative
Allocation Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from August 1, 2005 through January 31, 2006.
Share Class A B C Y
- --------------------------------------------------------------------------------
Beginning Account Value
On 8/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/06 $1,018.00 $1,013.46 $1,013.46 $1,019.86
Expenses Paid During
Period* $ 7.27 $ 11.82 $ 11.82 $ 5.40
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.43%, 2.33%,
2.33% and 1.06% for Class A, Class B, Class C and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period, and then multiplied by 184/365 (to reflect the
partial year period) to calculate the "Expenses Paid During Period" in the
table above.
8
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Moderate Allocation
Fund
Based on actual returns from August 1, 2005 through January 31, 2006.
Share Class A B C Y
- ----------------------------------------------------------------------------------------
Beginning Account Value
On 8/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/06 $1,057.20 $1,052.40 $1,052.10 $1,059.30
Expenses Paid During Period* $ 7.26 $ 12.00 $ 11.33 $ 5.45
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.40%, 2.32%,
2.19% and 1.05%, for Class A, Class B, Class C and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period, and then multiplied by 184/365 (to reflect the
partial year period) to calculate the "Expenses Paid During Period" in the
table above.
9
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES 1/31/06 (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Moderate Allocation
Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from August 1, 2005 through January 31, 2006.
Share Class A B C Y
- --------------------------------------------------------------------------------
Beginning Account Value
On 8/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/06 $1,018.15 $1,013.51 $1,014.17 $1,019.91
Expenses Paid During
Period* $ 7.12 $ 11.77 $ 11.12 $ 5.35
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.40%, 2.32%,
2.19% and 1.05%, for Class A, Class B, Class C and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period, and then multiplied by 184/365 (to reflect the
partial year period) to calculate the "Expenses Paid During Period" in the
table above.
10
Pioneer Ibbotson Growth Allocation Fund
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COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Growth Allocation Fund
Based on actual returns from August 1, 2005 through January 31, 2006.
Share Class A B C Y
- ----------------------------------------------------------------------------------------
Beginning Account Value
On 8/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/06 $1,074.30 $1,069.70 $1,069.70 $1,076.60
Expenses Paid During Period* $ 8.26 $ 12.52 $ 11.95 $ 5.97
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.58%, 2.40%,
2.29% and 1.14%, for Class A, Class B, Class C and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period, and then multiplied by 184/365 (to reflect the
partial year period) to calculate the "Expenses Paid During Period" in the
table above.
11
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES 1/31/06 (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Growth Allocation Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from August 1, 2005 through January 31, 2006.
Share Class A B C Y
- --------------------------------------------------------------------------------
Beginning Account Value
On 8/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/06 $1,017.24 $1,013.11 $1,013.66 $1,019.46
Expenses Paid During
Period* $ 8.03 $ 12.18 $ 11.62 $ 5.80
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.58%, 2.40%,
2.29% and 1.14%, for Class A, Class B, Class C and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period, and then multiplied by 181/365 (to reflect the
partial year period) to calculate the "Expenses Paid During Period" in the
table above.
12
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Aggressive Allocation
Fund
Based on actual returns from August 1, 2005 through January 31, 2006.
Share Class A B C Y
- ----------------------------------------------------------------------------------------
Beginning Account Value
On 8/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/06 $1,088.60 $1,084.30 $1,083.20 $1,090.50
Expenses Paid During Period* $ 8.95 $ 13.13 $ 12.81 $ 6.43
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.70%, 2.50%, 2.44%
and 1.22%, for Class A, Class B, Class C and Class Y shares, respectively.
These combined ratios were multiplied by the average account value over the
period, and then multiplied by 184/365 (to reflect the partial year period)
to calculate the "Expenses Paid During Period" in the table above.
13
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES 1/31/06 (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Aggressive Allocation
Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from August 1, 2005 through January 31, 2006.
Share Class A B C Y
- --------------------------------------------------------------------------------
Beginning Account Value
On 8/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 1/31/06 $1,016.64 $1,012.60 $1,012.91 $1,019.06
Expenses Paid During
Period* $ 8.64 $ 12.68 $ 12.38 $ 6.21
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.70%, 2.50%,
2.44% and 1.22%, for Class A, Class B, Class C and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period, and then multiplied by 184/365 (to reflect the
partial year period) to calculate the "Expenses Paid During Period" in the
table above.
14
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PORTFOLIO REVIEWS 1/31/06
- --------------------------------------------------------------------------------
Conservative Allocation
The Fund's total return for the semiannual period beginning July 31, 2005 and
ending January 31, 2006 was 3.14% for Class A shares, at net asset value.
The Fund targeted an asset allocation of between 20-40% equities and between
60-80% fixed-income during the period. Within the equity portion of the Fund,
Pioneer Oak Ridge Large Cap Growth Fund was the largest holding at 7.98% of
assets on January 31, 2006. Pioneer International Equity Fund was the next
largest equity holding at 7.01% of assets. Within the fixed income portion of
the Fund, the largest holding at the end of the period was in a shorter
duration bond fund, Pioneer Short Term Income Fund, at 24.00%, followed by
Pioneer Bond Fund at 18.03% of assets.
Moderate Allocation
The Fund's total return for the semiannual period beginning July 31, 2005 and
ending January 31, 2006 was 5.72% for Class A shares, at net asset value.
The Fund targeted an asset allocation of between 50-70% equities, between
30-50% fixed income during the period. Within the equity portion of the Fund,
Pioneer Oak Ridge Large Cap Growth Fund was the largest holding at 13.98% of
assets on January 31, 2006. Pioneer International Equity Fund was the next
largest equity holding at 12.05% of assets. Within the fixed income portion of
the Fund, the largest holding at the end of the period was in a shorter
duration bond fund, Pioneer Short Term Income Fund, at 14.02%, followed by
Pioneer Bond Fund at 10.03% of assets.
Growth Allocation
The Fund's total return for the semiannual period beginning July 31, 2005 and
ending January 31, 2006 was 7.43% for Class A shares, at net asset value.
The Fund targeted an asset allocation of between 70-100% equities, and between
0-30% fixed income during the period. Within the equity portion of the Fund,
Pioneer International Equity Fund was the largest holding at 16.07% of assets
on January 31, 2006. The largest domestic equity allocation was to Pioneer Oak
Ridge Large Cap Growth Fund (13.99%) followed by Pioneer Research Fund
(10.96%). Entering the period, value holdings were weighted slightly above
target, reflecting management's view that value stocks were more
15
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PORTFOLIO REVIEWS 1/31/06 (continued)
- --------------------------------------------------------------------------------
attractive than their growth counterparts. However, as the period progressed
the Fund targeted a neutral posture with respect to its growth versus value
allocation. Within the fixed income portion of the Fund, the largest holding at
the end of the period was in a shorter duration bond fund, Pioneer Short Term
Income Fund, at 10.02% of assets, while Pioneer Bond Fund represented 9.04% of
assets.
Aggressive Allocation
The Fund's total return for the semiannual period beginning July 31, 2005 and
ending January 31, 2006 was 8.86% for Class A shares, at net asset value.
The Fund targeted an asset allocation of between 85-100% equities, and between
0-15% fixed income during the period. Within the equity portion of the fund,
Pioneer International Equity Fund was the largest holding at 21.18% of assets
on January 31, 2006. On the domestic side, Pioneer Oak Ridge Large Cap Growth
Fund (18.06%) and Pioneer Research Fund (11.0%) were the largest holdings.
Entering the period, value holdings were weighted slightly above target,
reflecting management's view that value stocks were more attractive than their
growth counterparts. However, as the period progressed the Fund targeted a
neutral posture with respect to its growth versus value allocation. The fixed
income portion of the Fund was invested in a long-term bond fund, Pioneer Bond
Fund, at 9.03% 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.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
16
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Class 1/31/06 7/31/05
- ------- --------- --------
A $10.54 $10.29
B $10.48 $10.28
C $10.47 $10.26
Y $10.56 -
Moderate Allocation Fund
Class 1/31/06 7/31/05
- ------- --------- --------
A $11.48 $11.15
B $11.05 $10.77
C $10.98 $10.68
Y $11.49 -
Growth Allocation Fund
Class 1/31/06 7/31/05
- ------- --------- --------
A $12.17 $11.50
B $11.09 $10.50
C $11.75 $11.10
Y $12.20 -
Aggressive Allocation Fund
Class 1/31/06 7/31/05
- ------- --------- --------
A $12.57 $11.82
B $12.07 $11.39
C $12.23 $11.54
Y $12.61 -
17
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS (continued)
- --------------------------------------------------------------------------------
Distributions Per Share
- --------------------------------------------------------------------------------
Conservative Allocation Fund
8/1/05 - 1/31/06
----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.0633 $ - $0.0086
B $0.0633 $ - $0.0086
C $0.0633 $ - $0.0086
Y $0.0633 $ - $0.0086
Moderate Allocation Fund
8/1/05 - 1/31/06
----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.0645 $ - $0.2446
B $0.0320 $ - $0.2446
C $0.0149 $ - $0.2446
Y $0.0774 $ - $0.2446
Growth Allocation Fund
8/1/05 - 1/31/06
----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.0493 $ - $0.129
B $0.0185 $ - $0.129
C $ - $ - $0.129
Y $0.0642 $ - $0.129
Aggressive Allocation Fund
8/1/05 - 1/31/06
----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.0162 $ - $0.2687
B $ - $ - $0.2687
C $ - $ - $0.2687
Y $0.0281 $ - $0.2687
18
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 1/31/06
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Fixed Income 70%
Equity 30%
Large Cap Growth Stocks 9.0%
- --------------------------------
Large Cap Value Stocks 9.0
- --------------------------------
Mid/Small Cap Growth Stocks 2.0
- --------------------------------
Mid/Small Cap Value Stocks 2.0
- --------------------------------
International Stocks 8.0
- --------------------------------
Emerging Markets 0.0
- --------------------------------
Real Estate (REITs) 0.0
- --------------------------------
High Yield Bonds 13.0
- --------------------------------
Bonds 22.0
- --------------------------------
Short Term Bonds 25.0
- --------------------------------
Cash Equivalents 10.0
- --------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- --------------------------------------- ----------------------------------
Pioneer Fund 3.28% Pioneer International Equity 7.71%
- --------------------------------------- ----------------------------------
Pioneer Research 7.65 Bonds
- --------------------------------------- ----------------------------------
Pioneer Oak Ridge Large Cap Growth 8.77 Pioneer High Yield 11.02
- --------------------------------------- ----------------------------------
Pioneer Value 1.09 Pioneer Bond 19.81
- --------------------------------------- ----------------------------------
Pioneer Cullen Value 2.20 Pioneer Short Term Income 26.37
- --------------------------------------- ----------------------------------
Pioneer Mid Cap Growth 1.10 Pioneer Government Income 5.50
- --------------------------------------- ----------------------------------
Pioneer Small Cap Value 2.20 Pioneer Strategic Income 3.30
- --------------------------------------- ----------------------------------
This list excludes temporary cash and derivative instruments. Portfolio
holdings will vary for other periods.
19
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 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.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/06 $9,900 $10,872
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(5/12/05) 6.13% 0.03%
- --------------------------------------------------------------------------------
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.
20
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/06 $10,048 $10,872
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(5/12/05) 5.53% 1.53%
- --------------------------------------------------------------------------------
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.
21
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/06 $10,339 $10,872
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(5/12/05) 5.33% 4.33%
- --------------------------------------------------------------------------------
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). "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.
22
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/06 $10,528 $10,872
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(5/12/05) 6.33% 6.33%
- --------------------------------------------------------------------------------
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.
Performance for periods prior to the inception of Y shares reflects the NAV
performance of the Fund's A shares. The performance does not reflect differences
in expenses, including the Rule 12b-1 fees applicable to A shares. Since fees
for A shares are generally higher than those of Y shares, the performance shown
for Y shares prior to their inception would have been higher. Class Y shares are
not subject to sales charges and are available for limited groups of eligible
investors, including institutional investors.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
23
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 1/31/06
- --------------------------------------------------------------------------------
Target Asset Allocations
- -------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Equity 60%
Fixed Income 40%
Large Cap Growth Stocks 15.0%
- --------------------------------
Large Cap Value Stocks 15.0
- --------------------------------
Mid/Small Cap Growth Stocks 6.0
- --------------------------------
Mid/Small Cap Value Stocks 6.0
- --------------------------------
International Stocks 12.0
- --------------------------------
Emerging Markets 2.0
- --------------------------------
Real Estate (REITs) 4.0
- --------------------------------
High Yield Bonds 8.0
- --------------------------------
Bonds 13.0
- --------------------------------
Short Term Bonds 13.0
- --------------------------------
Cash Equivalents 6.0
- --------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ----------------------------------------- ----------------------------------
Pioneer Fund 6.28% Pioneer International Equity 12.66%
- ---------------------------------------- ----------------------------------
Pioneer Research 10.46 Pioneer Emerging Markets 1.08
- ---------------------------------------- ----------------------------------
Pioneer Oak Ridge Large Cap Growth 14.69 Bonds
- ---------------------------------------- ----------------------------------
Pioneer Value 3.14 Pioneer High Yield 6.34
- ---------------------------------------- ----------------------------------
Pioneer Cullen Value 3.16 Pioneer Bond 10.54
- ---------------------------------------- ----------------------------------
Pioneer Mid Cap Growth 3.16 Pioneer Short Term Income 14.73
- ---------------------------------------- ----------------------------------
Pioneer Mid Cap Value 1.05 Pioneer Government Income 4.21
- ---------------------------------------- ----------------------------------
Pioneer Small Cap Value 3.20
- ----------------------------------------
Pioneer Real Estate 3.16
- ----------------------------------------
Pioneer Growth Opportunities 2.14
- ----------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio
holdings will vary for other periods.
24
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 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.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/05 $10,077 $10,772
1/06 $11,175 $11,890
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 13.69% 9.23%
1 Year 10.89 4.50
- --------------------------------------------------------------------------------
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.
25
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/05 $10,519 $10,772
1/06 $11,153 $11,890
Average Annual Total Returns
(As of January 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 10.47% 7.88%
1 Year 9.82 5.82
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.
26
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/05 $10,653 $10,772
1/06 $11,701 $11,890
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 9.92% 8.92%
1 Year 9.84 9.84
- --------------------------------------------------------------------------------
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). "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.
27
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/05 $10,690 $10,772
1/06 $11,888 $11,890
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 13.92% 13.92%
1 Year 11.21 11.21
- --------------------------------------------------------------------------------
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.
Performance for periods prior to the inception of Y shares reflects the NAV
performance of the Fund's A shares. The performance does not reflect differences
in expenses, including the Rule 12b-1 fees applicable to A shares. Since fees
for A shares are generally higher than those of Y shares, the performance shown
for Y shares prior to their inception would have been higher. Class Y shares are
not subject to sales charges and are available for limited groups of eligible
investors, including institutional investors.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
28
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 1/31/06
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Equity 75%
Fixed Income 25%
Large Cap Growth Stocks 16.0%
- --------------------------------
Large Cap Value Stocks 17.0
- --------------------------------
Mid/Small Cap Growth Stocks 8.0
- --------------------------------
Mid/Small Cap Value Stocks 8.0
- --------------------------------
International Stocks 16.0
- --------------------------------
Emerging Markets 4.1
- --------------------------------
Real Estate (REITs) 4.0
- --------------------------------
High Yield Bonds 5.0
- --------------------------------
Bonds 11.0
- --------------------------------
Short Term Bonds 9.0
- --------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------ -------------------------------------
Pioneer Fund 6.97% Pioneer International Equity 16.05%
- ------------------------------------------ -------------------------------------
Pioneer Research 10.94 Pioneer Emerging Markets 3.02
- ------------------------------------------ -------------------------------------
Pioneer Oak Ridge Large Cap Growth 13.98 Bonds
- ------------------------------------------ -------------------------------------
Pioneer Value 3.98 Pioneer High Yield 3.01
- ------------------------------------------ -------------------------------------
Pioneer Cullen Value 3.99 Pioneer Bond 9.02
- ------------------------------------------ -------------------------------------
Pioneer Mid Cap Growth 4.01 Pioneer Short Term Income 10.01
- ------------------------------------------ -------------------------------------
Pioneer Mid Cap Value 1.99 Pioneer Government Income 2.00
- ------------------------------------------ -------------------------------------
Pioneer Small Cap Value 3.00
- ------------------------------------------
Pioneer Real Estate 4.01
- ------------------------------------------
Pioneer Growth Opportunities 4.02
- ------------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio
holdings will vary for other periods.
29
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 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.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/05 $10,267 $10,772
1/06 $11,702 $11,890
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 17.36% 12.76%
1 Year 13.97 7.43
- --------------------------------------------------------------------------------
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 Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund, compared to that of
the Standard & Poor's 500 Stock Index.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/05 $10,467 $10,772
1/06 $11,427 $11,890
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 10.03% 7.44%
1 Year 12.99 8.99
- --------------------------------------------------------------------------------
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 Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund, compared to that of
the Standard & Poor's 500 Stock Index.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/05 $10,709 $10,772
1/06 $12,098 $11,890
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 14.12% 14.12%
1 Year 12.97 12.97
- --------------------------------------------------------------------------------
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). "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 Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund, compared to that of
the Standard & Poor's 500 Stock Index.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/05 $10,890 $10,772
1/06 $12,458 $11,890
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 17.66% 17.66%
1 Year 14.40 14.40
- --------------------------------------------------------------------------------
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.
Performance for periods prior to the inception of Y shares reflects the NAV
performance of the Fund's A shares. The performance does not reflect differences
in expenses, including the Rule 12b-1 fees applicable to A shares. Since fees
for A shares are generally higher than those of Y shares, the performance shown
for Y shares prior to their inception would have been higher. Class Y shares are
not subject to sales charges and are available for limited groups of eligible
investors, including institutional investors.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
33
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 1/31/06
- -----------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Equity 90%
Fixed Income 10%
Large Cap Growth Stocks 18.0%
- ----------------------------------
Large Cap Value Stocks 18.0
- ----------------------------------
Mid/Small Cap Growth Stocks 10.0
- ----------------------------------
Mid/Small Cap Value Stocks 10.0
- ----------------------------------
International Stocks 21.0
- ----------------------------------
Emerging Markets 5.0
- ----------------------------------
Real Estate (REITs) 8.0
- ----------------------------------
High Yield Bonds 0.0
- ----------------------------------
Bonds 10.0
- ----------------------------------
Short Term Bonds 0.0
- ----------------------------------
Cash Equivalents 0.0
- ----------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------ -------------------------------------
Pioneer Fund 6.97% Pioneer International Equity 21.08%
- ------------------------------------------ -------------------------------------
Pioneer Research 10.95 Pioneer Emerging Markets 4.02
- ------------------------------------------ -------------------------------------
Pioneer Oak Ridge Large Cap Growth 17.97 Bonds
- ------------------------------------------ -------------------------------------
Pioneer Value 3.98 Pioneer Bond 8.99
- ------------------------------------------ -------------------------------------
Pioneer Cullen Value 5.00
- ------------------------------------------
Pioneer Mid Cap Growth 5.02
- ------------------------------------------
Pioneer Mid Cap Value 2.98
- ------------------------------------------
Pioneer Small Cap Value 3.00
- ------------------------------------------
Pioneer Real Estate 5.01
- ------------------------------------------
Pioneer Growth Opportunities 5.03
- ------------------------------------------
This list excludes temporary cash and derivative instruments. Portfolio
holdings will vary for other periods.
34
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 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.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/05 $10,436 $10,772
1/06 $12,163 $11,890
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 20.85% 16.11%
1 Year 16.55 9.88
- --------------------------------------------------------------------------------
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.
35
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/05 $10,962 $10,772
1/06 $12,276 $11,890
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 17.46% 14.95%
1 Year 15.64 11.64
- --------------------------------------------------------------------------------
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.
36
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/05 $10,841 $10,772
1/06 $12,525 $11,890
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 18.39% 18.39%
1 Year 15.53 11.53
- --------------------------------------------------------------------------------
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). "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.
37
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 1/31/06 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index.
[THE FOLLOWING DATA WAS REPRESENTED 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
1/05 $11,077 $10,772
1/06 $12,964 $11,890
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of January 31, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 21.19% 21.19%
1 Year 17.03 17.03
- --------------------------------------------------------------------------------
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.
Performance for periods prior to the inception of Y shares reflects the NAV
performance of the Fund's A shares. The performance does not reflect differences
in expenses, including the Rule 12b-1 fees applicable to A shares. Since fees
for A shares are generally higher than those of Y shares, the performance shown
for Y shares prior to their inception would have been higher. Class Y shares are
not subject to sales charges and are available for limited groups of eligible
investors, including institutional investors.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
38
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 1/31/06 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 91.0%
PIONEER FUNDS - 91.0%
182,398 Pioneer Bond Fund Class Y $1,656,173
----------
10,204 Pioneer Cullen Value Fund Class Y 183,474
----------
6,022 Pioneer Fund Class Y 273,948
----------
48,786 Pioneer Government Income Fund Class Y 459,568
----------
84,061 Pioneer High Yield Fund Class Y 921,313
----------
26,344 Pioneer International Equity Fund Class Y 644,115
----------
5,823 Pioneer Mid Cap Growth Fund Class Y 91,938
----------
80 Pioneer Mid Cap Value Fund Class Y 1,976
----------
53,163 Pioneer Oak Ridge Large Cap Growth Fund Class Y 732,580
----------
62,953 Pioneer Research Fund Class Y 638,972
----------
226,076 Pioneer Short Term Income Fund Class Y 2,204,243
----------
5,362 Pioneer Small Cap Value Fund Class Y 183,504
----------
26,658 Pioneer Strategic Income Fund Class Y 276,173
----------
5,027 Pioneer Value Fund Class Y 91,243
----------
TOTAL INVESTMENTS IN SECURITIES - 91.0%
(Cost $8,262,199) (a) $8,359,220
OTHER ASSETS AND LIABILITIES - 9.0% 827,620
----------
TOTAL NET ASSETS - 100.0% $9,186,840
==========
(a) At January 31, 2006, the net unrealized gain on investments based on cost
for federal tax purposes of $8,262,199 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $133,030
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (36,009)
--------
Net unrealized gain $ 97,021
========
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended January 31, 2006 aggregated $7,246,717 and $524,587,
respectively.
The accompanying notes are an integral part of these financial statements. 39
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 1/31/06 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 95.2%
PIONEER FUNDS - 95.2%
2,834,385 Pioneer Bond Fund Class Y $ 25,736,215
------------
428,498 Pioneer Cullen Value Fund Class Y 7,704,392
------------
88,840 Pioneer Emerging Markets Fund Class Y 2,639,450
------------
337,085 Pioneer Fund Class Y 15,333,984
------------
1,091,720 Pioneer Government Income Fund Class Y 10,284,003
------------
154,480 Pioneer Growth Opportunities Fund Class Y 5,221,425
------------
1,411,849 Pioneer High Yield Fund Class Y 15,473,860
------------
1,264,610 Pioneer International Equity Fund Class Y 30,919,725
------------
489,115 Pioneer Mid Cap Growth Fund Class Y 7,723,131
------------
103,262 Pioneer Mid Cap Value Fund Class Y 2,554,711
------------
2,602,829 Pioneer Oak Ridge Large Cap Growth Fund Class Y 35,866,988
------------
279,325 Pioneer Real Estate Shares Class Y 7,726,139
------------
2,516,742 Pioneer Research Fund Class Y 25,544,931
------------
3,689,228 Pioneer Short Term Income Fund Class Y 35,969,969
------------
228,518 Pioneer Small Cap Value Fund Class Y 7,819,884
------------
422,073 Pioneer Value Fund Class Y 7,660,633
------------
TOTAL MUTUAL FUNDS
(Cost $229,731,001) $244,179,440
------------
TIME DEPOSITS - 4.7%
12,086,696 HSBC Bank USA, 3.84%, 2/1/06 $ 12,086,696
------------
TOTAL TIME DEPOSITS
(Cost $12,086,696) $ 12,086,696
------------
TOTAL INVESTMENTS IN SECURITIES - 99.9%
(Cost $241,817,697) (a) $256,266,136
OTHER ASSETS AND LIABILITIES - 0.1% 281,883
------------
TOTAL NET ASSETS - 100.0% $256,548,019
============
(a) At January 31, 2006, the net unrealized gain on investments based on cost
for federal tax purposes of $241,817,697 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $16,645,652
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (2,197,213)
-----------
Net unrealized gain $14,448,439
===========
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended January 31, 2006 aggregated $120,837,080 and $90,674,274,
respectively.
40 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 1/31/06 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 100.1%
PIONEER FUNDS - 100.1%
1,769,611 Pioneer Bond Fund Class Y $ 16,068,071
------------
396,178 Pioneer Cullen Value Fund Class Y 7,123,285
------------
180,792 Pioneer Emerging Markets Fund Class Y 5,371,344
------------
272,728 Pioneer Fund Class Y 12,406,407
------------
378,637 Pioneer Government Income Fund Class Y 3,566,761
------------
211,614 Pioneer Growth Opportunities Fund Class Y 7,152,542
------------
489,603 Pioneer High Yield Fund Class Y 5,366,054
------------
1,168,735 Pioneer International Equity Fund Class Y 28,575,580
------------
452,159 Pioneer Mid Cap Growth Fund Class Y 7,139,592
------------
143,309 Pioneer Mid Cap Value Fund Class Y 3,545,454
------------
1,805,954 Pioneer Oak Ridge Large Cap Growth Fund Class Y 24,886,039
------------
257,950 Pioneer Real Estate Shares Class Y 7,134,907
------------
1,920,076 Pioneer Research Fund Class Y 19,488,766
------------
1,827,609 Pioneer Short Term Income Fund Class Y 17,819,192
------------
156,189 Pioneer Small Cap Value Fund Class Y 5,344,796
------------
390,356 Pioneer Value Fund Class Y 7,084,968
------------
TOTAL INVESTMENTS IN SECURITIES - 100.1%
(Cost $164,544,661) (a) $178,073,758
OTHER ASSETS AND LIABILITIES - (0.1%) (235,573)
------------
TOTAL NET ASSETS - 100.0% $177,838,185
============
(a) At January 31, 2006, the net unrealized gain on investments based on cost
for federal tax purposes of $164,544,661 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $14,357,111
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (828,014)
============
Net unrealized gain $13,529,097
============
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended January 31, 2006 aggregated $87,522,430 and $39,332,487,
respectively.
The accompanying notes are an integral part of these financial statements. 41
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 1/31/06 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 100.5%
PIONEER FUNDS - 100.5%
1,093,708 Pioneer Bond Fund Class Y $ 9,930,871
------------
307,311 Pioneer Cullen Value Fund Class Y 5,525,461
------------
149,578 Pioneer Emerging Markets Fund Class Y 4,443,971
------------
169,248 Pioneer Fund Class Y 7,699,089
------------
164,258 Pioneer Growth Opportunities Fund Class Y 5,551,906
------------
952,393 Pioneer International Equity Fund Class Y 23,286,022
------------
350,899 Pioneer Mid Cap Growth Fund Class Y 5,540,702
------------
133,186 Pioneer Mid Cap Value Fund Class Y 3,295,025
------------
1,440,999 Pioneer Oak Ridge Large Cap Growth Fund Class Y 19,856,965
------------
200,104 Pioneer Real Estate Shares Class Y 5,534,881
------------
1,191,698 Pioneer Research Fund Class Y 12,095,733
------------
96,942 Pioneer Small Cap Value Fund Class Y 3,317,363
------------
242,276 Pioneer Value Fund Class Y 4,397,316
------------
TOTAL INVESTMENTS IN SECURITIES - 100.5%
(Cost $98,159,787) (a) $110,475,305
OTHER ASSETS AND LIABILITIES - (0.5%) (511,944)
------------
TOTAL NET ASSETS - 100.0% $109,963,361
============
(a) At January 31, 2006, the net unrealized gain on investments based on cost
for federal tax purposes of $98,159,787 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $12,426,079
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (110,561)
-----------
Net unrealized gain $12,315,518
===========
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended January 31, 2006 aggregated $66,715,353 and $45,652,782,
respectively.
42 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- -----------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES 1/31/06 (unaudited)
- -----------------------------------------------------------------------------
Conservative Moderate Growth Aggressive
Allocation Allocation Allocation Allocation
Fund Fund Fund Fund
ASSETS:
Investments in securities of
affiliated issuers, at value
(at cost $8,262,199,
$241,817,697, $164,544,661
and $98,159,787, respectively) $8,359,220 $256,266,136 $178,073,758 $110,475,305
Cash 933,295 51,850 83,208 -
Receivables:
Investment securities sold - - 196,778 354,660
Capital stock sold 90,637 3,316,597 1,589,716 363,353
Due from Pioneer Investment
Management, Inc. 15,590 125,303 90,046 54,909
Miscellaneous assets - - - 1,862
---------- ------------ ------------ ------------
Total assets $9,398,742 $259,759,886 $180,033,506 $111,250,089
========== ============ ============ ============
LIABILITIES:
Payables:
Due to Custodian $ - $ - $ - $ 640,769
Securities purchased 156,737 2,692,227 1,690,640 300,527
Capital stock redeemed 313 225,258 225,033 54,999
Due to affiliates 18,182 203,002 204,068 132,680
Accrued expenses and other
liabilities 36,670 91,380 75,580 157,753
---------- ------------ ------------ ------------
Total liabilities $ 211,902 $ 3,211,867 $ 2,195,321 $ 1,286,728
---------- ------------ ------------ ------------
NET ASSETS:
Paid-in capital $9,018,719 $237,293,655 $161,261,714 $ 95,297,852
Accumulated net investment income 93,049 4,948,175 3,687,495 2,771,107
Accumulated net realized gain (loss)
on investments (21,949) (142,250) (640,121) (421,116)
Net unrealized gain on investments 97,021 14,448,439 13,529,097 12,315,518
---------- ------------ ------------ ------------
Total net assets $9,186,840 $256,548,019 $177,838,185 $109,963,361
========== ============ ============ ============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of
shares authorized)
Net Assets of Class A Shares $5,324,319 $137,073,645 $ 93,396,293 $ 63,706,467
Net Assets of Class B shares $1,728,451 $ 51,234,463 $ 52,715,261 $ 26,929,879
Net Assets of Class C shares $2,133,047 $ 25,713,928 $ 25,465,591 $ 12,027,440
Net Assets of Class Y shares $ 1,023 $ 42,525,983 $ 6,261,040 $ 7,299,575
========== ============ ============ ============
Class A Shares outstanding 505,011 11,943,528 7,674,722 5,066,908
Class B Shares outstanding 164,981 4,634,883 4,754,226 2,231,675
Class C Shares outstanding 203,823 2,342,214 2,167,914 983,639
Class Y Shares outstanding 97 3,700,225 513,370 579,077
========== ============ ============ ============
Net Asset Value - Class A Share $ 10.54 $ 11.48 $ 12.17 $ 12.57
Net Asset Value - Class B Share $ 10.48 $ 11.05 $ 11.09 $ 12.07
Net Asset Value - Class C Share $ 10.47 $ 10.98 $ 11.75 $ 12.23
Net Asset Value - Class Y Share $ 10.56 $ 11.49 $ 12.20 $ 12.61
========== ============ ============ ============
MAXIMUM OFFERING PRICE:
Class A (100 [divided by] 94.25 x net asset
value per share) $ 11.18 $ 12.18 $ 12.91 $ 13.34
========== ============ ============ ============
The accompanying notes are an integral part of these financial statements. 43
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (unaudited) (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended 1/31/06
Conservative Moderate Growth Aggressive
Allocation Allocation Allocation Allocation
Fund Fund Fund Fund
INVESTMENT INCOME:
Dividend income from securities of
affiliated issuers $ 149,540 $ 6,594,872 $ 4,775,697 $3,302,341
Interest 9,059 153,654 6,899 3,551
--------- ----------- ----------- ----------
Total investment income $ 158,599 $ 6,748,526 $ 4,782,596 $3,305,892
--------- ----------- ----------- ----------
EXPENSES:
Management fees $ 3,084 $ 121,987 $ 82,801 $ 53,101
Transfer agent fees
Class A 1,627 42,255 66,519 50,294
Class B 1,182 61,130 79,055 48,192
Class C 781 9,786 15,332 8,340
Class Y - 2,242 1,017 1,515
Distribution fees
Class A 3,282 119,399 82,503 55,643
Class B 4,563 184,947 181,398 95,344
Class C 6,034 96,954 98,562 46,050
Administrative fees 6,893 11,292 5,995 4,323
Custodian fees 7,142 19,597 18,144 15,680
Registration fees 43,494 47,472 43,843 40,175
Professional fees 20,029 29,175 25,450 23,938
Printing fees 5,771 15,463 10,120 8,416
Fees and expenses of nonaffiliated
trustees 2,328 2,813 2,813 2,812
Insurance expense - 2,044 1,559 1,375
Miscellaneous 96 3,037 1,697 1,698
--------- ----------- ----------- ----------
Total expenses $ 106,306 $ 769,593 $ 716,808 $ 456,896
Less management fees waived and
expenses reimbursed by Pioneer
Investment Management, Inc. (78,238) (13,329) (28,075) (21,382)
--------- ----------- ----------- ----------
Net expenses $ 28,068 $ 756,264 $ 688,733 $ 435,514
--------- ----------- ----------- ----------
Net investment income $ 130,531 $ 5,992,262 $ 4,093,863 $2,870,378
--------- ----------- ----------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments $ (16,606) $ 5,230,264 $ 1,184,317 $1,847,673
Change in net unrealized gain on
investments 75,790 1,770,935 5,760,875 3,691,030
--------- ----------- ----------- ----------
Net gain on investments $ 59,184 $ 7,001,199 $ 6,945,192 $5,538,703
--------- ----------- ----------- ----------
Net increase in net assets resulting
from operations $ 189,715 $12,993,461 $11,039,055 $8,409,081
========= =========== =========== ==========
44 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (unaudited)
- --------------------------------------------------------------------------------
Conservative Allocation Fund Moderate Allocation Fund
---------------------------- -------------------------
Six Months Six Months
Ended 5/12/05* Ended 8/9/04*
1/31/06 to 1/31/06 to
(unaudited) 7/31/05 (unaudited) 7/31/05
FROM OPERATIONS:
Net investment income (loss) $ 130,531 $ 4,206 $ 5,992,262 $ 237,724
Net realized gain on investments (16,606) 401 5,230,264 301,790
Change in net unrealized gain on
investments 75,790 21,231 1,770,935 2,207,763
---------- ---------- ------------ -----------
Net increase in net assets
resulting from operations $ 189,715 $ 25,838 $ 12,993,461 $ 2,747,277
---------- ---------- ------------ -----------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income
Class A $ (22,489) $ - $ (695,194) $ (45,923)
Class B (9,129) - (142,133) -
Class C (10,659) - (31,961) (4,387)
Class Y (6) - (334,603) -
Net realized gain on investments
Class A (3,055) - (2,636,349) (248,071)
Class B (1,240) - (1,086,431) (58,542)
Class C (1,448) - (524,670) (93,285)
Class Y (1) (1,057,414) -
Return of capital
Class A - - - -
Class B - - - -
Class C - - - -
Class Y - - - -
---------- ---------- ------------ -----------
Total distributions
to shareowners $ (48,027) $ - $ (6,508,755) $ (450,208)
---------- ---------- ------------ -----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $8,119,968 $1,451,162 $ 58,690,973 $59,474,035
Reinvestment of distributions 35,314 - 5,879,935 294,903
Cost of shares repurchased (887,110) (20) (27,913,006) (4,214,373)
Shares issued in reorganization - - 155,508,777 -
---------- ---------- ------------ -----------
Net increase in net assets
resulting from fund share
transactions $7,268,172 $1,451,142 $192,166,679 $55,554,565
---------- --------- ------------ -----------
Net increase in net assets $7,409,860 $1,476,980 $198,651,385 $57,851,634
NET ASSETS:
Beginning of period 1,776,980 300,000 57,896,634 45,000
---------- ---------- ------------ -----------
End of period $9,186,840 $1,776,980 $256,548,019 $57,896,634
========== ========== ============ ===========
Undistributed net investment
income, end of period $ 93,049 $ 4,801 $ 4,948,175 $ 159,804
========== ========== ============ ===========
* Commencement of operations
The accompanying notes are an integral part of these financial statements. 45
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (unaudited) (continued)
- --------------------------------------------------------------------------------
Growth Allocation Fund Aggressive Allocation Fund
----------------------------- -------------------------------
Six Months Six Months
Ended 8/9/04* Ended 8/9/04*
1/31/06 to 1/31/06 to
(unaudited) 7/31/05 (unaudited) 7/31/05
FROM OPERATIONS:
Net investment income (loss) $ 4,093,863 $ 85,313 $ 2,870,378 $ (21,217)
Net realized gain on investments 1,184,317 311,611 1,847,673 195,632
Change in net unrealized gain on
investments 5,760,875 2,659,540 3,691,030 1,805,652
------------ ----------- ------------ -----------
Net increase in net assets
resulting from operations $ 11,039,055 $ 3,056,464 $ 8,409,081 $ 1,980,067
------------ ----------- ------------ -----------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income
Class A $ (345,018) $ (22,438) $ (73,792) $ -
Class B (82,794) - -
Class C - (2,600) - -
Class Y (39,851) - (25,479)
Net realized gain on investments
Class A (902,786) (163,365) (1,223,951) (92,234)
Class B (577,319) (62,965) (567,882) (37,320)
Class C (261,229) (88,675) (231,664) (47,257)
Class Y (80,074) - (243,638) -
Return of capital
Class A - - (16,797)
Class B - (3,788)
Class C - - - (4,796)
Class Y
------------ ----------- ------------ -----------
Total distributions
to shareowners $ (2,289,071) $ (340,043) $ (2,366,406) $ (202,192)
------------ ----------- ------------ -----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 55,495,588 $56,458,098 $ 33,666,848 $33,604,731
Reinvestment of distributions 2,099,209 285,838 2,169,818 168,962
Cost of shares repurchased (12,994,834) (3,200,971) (16,911,531) (1,917,566)
Shares issued in reorganization 68,183,852 - 51,316,549 -
------------ ----------- ------------ -----------
Net increase in net assets
resulting from fund share
transactions $112,783,815 $53,542,965 $ 70,241,684 $31,856,127
------------ ----------- ------------ -----------
Net increase in net assets $121,533,799 $56,259,386 $ 76,284,359 $33,634,002
NET ASSETS:
Beginning of period 56,304,386 45,000 33,679,002 45,000
------------ ----------- ------------ -----------
End of period $177,838,185 $56,304,386 $109,963,361 $33,679,002
============ =========== ============ ===========
Undistributed net investment
income, end of period $ 3,687,495 $ 61,295 $ 2,771,107 $ -
============ =========== ============ ===========
* Commencement of operations
46 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For the Six Months Ended 1/31/06 (unaudited) and Period Ended 7/31/05
Conservative Allocation Fund
---------------------------------------------------------
'06 Shares '06 Amount '05 Shares '05 Amount
CLASS A
Shares sold 487,655 $5,071,175 75,252 $763,192
Reinvestment of distributions 2,031 21,079 - -
Less shares repurchased (69,925) (730,891) (2) (20)
------- ---------- ------ --------
Net increase 419,761 $4,361,363 75,250 $763,172
======= ========== ====== ========
CLASS B
Shares sold 152,159 $1,571,666 11,447 $116,425
Reinvestment of distributions 834 8,620 - -
Less shares repurchased (9,459) (97,398) - -
------- ---------- ------ --------
Net increase 143,534 $1,482,888 11,447 $116,425
======= ========== ====== ========
CLASS C
Shares sold 142,740 $1,476,127 56,247 $571,545
Reinvestment of distributions 544 5,615 - -
Less shares repurchased (5,708) (58,821) - -
------- ---------- ------ --------
Net increase 137,576 $1,422,921 56,247 $571,545
======= ========== ====== ========
CLASS Y
Shares sold 97 $ 1,000
Reinvestment of distributions - -
Less shares repurchased
------- ----------
Net increase 97 $ 1,000
======= ==========
Moderate Allocation Fund
---------------------------------------------------------
'06 Shares '06 Amount '05 Shares '05 Amount
CLASS A
Shares sold 3,439,420 $ 38,834,648 3,174,114 $33,967,502
Reinvestment of distributions 269,424 3,009,471 17,263 185,747
Less shares repurchased (810,546) (9,117,001) (243,218) (2,627,215)
Shares issued in reorganization 6,095,571 68,142,545 - -
--------- ------------ --------- -----------
Net increase 8,993,869 $100,869,663 2,948,159 $31,526,034
========= ============ ========= ===========
CLASS B
Shares sold 749,941 $ 8,150,574 956,645 $ 9,913,133
Reinvestment of distributions 105,082 1,131,732 5,162 53,946
Less shares repurchased (214,586) (2,333,025) (55,357) (574,934)
Shares issued in reorganization 3,086,496 33,269,915 - -
--------- ------------ --------- -----------
Net increase 3,726,933 $ 40,219,196 906,450 $ 9,392,145
========= ============ ========= ===========
CLASS C
Shares sold 1,002,350 $ 10,833,070 1,516,928 $15,593,400
Reinvestment of distributions 33,895 362,338 5,329 55,210
Less shares repurchased (119,485) (1,285,545) (98,303) (1,012,224)
--------- ------------ --------- -----------
Net increase 916,760 $ 9,909,863 1,423,954 $14,636,386
========= ============ ========= ===========
CLASS Y
Shares sold 77,944 $ 872,681
Reinvestment of distributions 123,333 1,376,394
Less shares repurchased (1,340,024) (15,177,435)
Shares issued in reorganization 4,838,972 54,096,317
---------- ------------
Net increase 3,700,225 $ 41,167,957
========== ============
The accompanying notes are an integral part of these financial statements. 47
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (unaudited) (continued)
- --------------------------------------------------------------------------------
Growth Allocation Fund
-------------------------------------------------------------
'06 Shares '06 Amount '05 Shares '05 Amount
CLASS A
Shares sold 2,856,008 $33,459,883 2,872,133 $31,415,731
Reinvestment of distributions 99,749 1,172,050 15,346 168,809
Less shares repurchased (568,943) (6,677,901) (173,828) (1,918,265)
Shares issued in reorganization 2,572,757 29,688,353 - -
--------- ----------- --------- -----------
Net increase 4,959,571 $57,642,385 2,713,651 $29,666,275
========= =========== ========= ===========
CLASS B
Shares sold 1,052,566 $11,291,689 1,032,426 $10,360,090
Reinvestment of distributions 59,006 631,954 5,558 56,193
Less shares repurchased (245,401) (2,609,339) (66,702) (673,461)
Shares issued in reorganization 2,915,273 30,697,135 - -
--------- ----------- --------- -----------
Net increase 3,781,444 $40,011,439 971,282 $ 9,742,822
========= =========== ========= ===========
CLASS C
Shares sold 925,592 $10,397,842 1,389,335 $14,682,277
Reinvestment of distributions 17,009 192,886 5,702 60,836
Less shares repurchased (114,524) (1,302,790) (56,700) (609,245)
--------- ----------- --------- -----------
Net increase 828,077 $ 9,287,938 1,338,337 $14,133,868
========= =========== ========= ===========
CLASS Y
Shares sold 32,162 $ 346,174
Reinvestment of distributions 6,708 102,319
Less shares repurchased (201,280) (2,404,804)
Shares issued in reorganization 675,780 7,798,364
--------- -----------
Net increase 513,370 $ 5,842,053
========= ===========
Aggressive Allocation Fund
------------------------------------------------------------
'06 Shares '06 Amount '05 Shares '05 Amount
CLASS A
Shares sold 1,950,183 $23,557,562 1,830,200 $20,539,993
Reinvestment of distributions 100,587 1,213,082 8,741 98,166
Less shares repurchased (497,088) (6,049,498) (90,484) (1,020,697)
Shares issued in reorganization 1,763,269 20,930,973 - -
--------- ----------- --------- -----------
Net increase 3,316,951 $39,652,119 1,748,457 $19,617,462
========= =========== ========= ===========
CLASS B
Shares sold 407,300 $ 4,796,431 537,702 $ 5,801,097
Reinvestment of distributions 44,921 520,186 3,181 34,579
Less shares repurchased (94,274) (1,093,320) (29,240) (316,350)
Shares issued in reorganization 1,360,585 15,538,420 - -
--------- ----------- --------- -----------
Net increase 1,718,532 $19,761,717 511,643 $ 5,519,326
========= =========== ========= ===========
CLASS C
Shares sold 401,307 $ 4,704,785 667,003 $ 7,263,641
Reinvestment of distributions 14,339 168,202 3,286 36,217
Less shares repurchased (51,164) (594,722) (52,632) (580,519)
--------- ----------- --------- -----------
Net increase 364,482 $ 4,278,265 617,657 $ 6,719,339
========= =========== ========= ===========
CLASS Y
Shares sold 52,657 $ 608,070
Reinvestment of distributions 22,288 268,348
Less shares repurchased (746,648) (9,173,991)
Shares issued in reorganization 1,250,780 14,847,156
--------- -----------
Net increase 579,077 $ 6,549,583
========= ===========
48 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Six Months
Ended 5/12/05(a)
1/31/06 To
(unaudited) 7/31/05
CLASS A
Net asset value, beginning of period $ 10.29 $ 10.00
------- --------
Increase from investment operations:
Net investment income (b) $ 0.31 $ 0.05
Net realized and unrealized gain on investments 0.01 0.24
------- --------
Net increase from investment operations $ 0.32 $ 0.29
------- --------
Distributions to shareowners:
Net investment income $ (0.06) $ -
Net realized gain (0.01) -
------- --------
Net increase in net asset value $ 0.25 $ 0.29
------- --------
Net asset value, end of period $ 10.54 $ 10.29
======= ========
Total return* 3.14% 2.90%
Ratio of net expenses to average net assets** 0.78% 0.78%
Ratio of net investment income (loss) to average
net assets** 6.00% 2.26%
Portfolio turnover rate*** 12% 9%
Net assets, end of period (in thousands) $ 5,324 $ 877
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 4.08% 40.41%
Net investment income (loss) 2.70% (37.37)%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not annualized.
The accompanying notes are an integral part of these financial statements. 49
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Six Months
Ended 5/12/05(a)
1/31/06 To
(unaudited) 7/31/05
CLASS B
Net asset value, beginning of period $ 10.28 $ 10.00
------- --------
Increase from investment operations:
Net investment income (loss) (b) $ 0.26 $ 0.03
Net realized and unrealized gain on investments 0.01 0.25
------- --------
Net increase from investment operations $ 0.27 $ 0.28
------- --------
Distributions to shareowners:
Net investment income $ (0.06) $ -
Net realized gain (0.01) -
------- --------
Net increase in net asset value $ 0.20 $ 0.28
------- --------
Net asset value, end of period $ 10.48 $ 10.28
======= ========
Total return* 2.65% 2.80%
Ratio of net expenses to average net assets** 1.68% 1.68%
Ratio of net investment income (loss) to average
net assets** 5.15% 1.23%
Portfolio turnover rate*** 12% 9%
Net assets, end of period (in thousands) $ 1,728 $ 221
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 4.84% 38.96%
Net investment income 1.99% (36.05)%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not annualized.
50 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Six Months
Ended 5/12/05(a)
1/31/06 To
(unaudited) 7/31/05
CLASS C
Net asset value, beginning of period $ 10.26 $ 10.00
------- --------
Increase from investment operations:
Net investment income (loss) (b) $ 0.23 $ 0.03
Net realized and unrealized gain on investments 0.05 0.23
------- --------
Net increase from investment operations $ 0.28 $ 0.26
------- --------
Distributions to shareowners:
Net investment income $ (0.06) $ -
Net realized gain (0.01) -
------- --------
Net increase in net asset value $ 0.21 $ 0.26
------- --------
Net asset value, end of period $ 10.47 $ 10.26
======= ========
Total return* 2.66% 2.60%
Ratio of net expenses to average net assets** 1.68% 1.68%
Ratio of net investment income (loss) to average
net assets** 4.67% 1.17%
Portfolio turnover rate*** 12% 9%
Net assets, end of period (in thousands) $ 2,133 $ 679
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 5.07% 45.38%
Net investment income (loss) 1.28% (42.53)%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not annualized.
The accompanying notes are an integral part of these financial statements. 51
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative
Allocation Fund
10/5/05(a)
To
1/31/06
(unaudited)
CLASS Y
Net asset value, beginning of period $ 10.32
-------
Increase from investment operations:
Net investment income (loss) (b) $ 0.23
Net realized and unrealized gain on investments 0.08
-------
Net increase from investment operations $ 0.31
-------
Distributions to shareowners:
Net investment income $ (0.06)
Net realized gain (0.01)
-------
Net increase in net asset value $ 0.24
-------
Net asset value, end of period $ 10.56
=======
Total return* 3.33%
Ratio of net expenses to average net assets** 0.41%
Ratio of net investment income (loss) to average
net assets** 6.71%
Portfolio turnover rate*** 12%
Net assets, end of period (in thousands) $ 1
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.41%
Net investment income (loss) 6.71%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not annualized.
52 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Moderate Allocation Fund
Six Months
Ended 8/9/04(a)
1/31/06 To
(unaudited) 7/31/05
CLASS A
Net asset value, beginning of period $ 11.15 $ 10.00
-------- -------
Increase from investment operations:
Net investment income (loss) (b) $ 0.37 $ 0.15
Net realized and unrealized gain on investments 0.26 1.27
-------- -------
Net increase from investment operations $ 0.63 $ 1.42
-------- -------
Distributions to shareowners:
Net investment income $ (0.06) $ (0.04)
Net realized gain (0.24) (0.23)
-------- -------
Net increase in net asset value $ 0.33 $ 1.15
-------- -------
Net asset value, end of period $ 11.48 $ 11.15
======== =======
Total return* 5.72% 14.37%
Ratio of net expenses to average net assets** 0.61% 0.77%
Ratio of net investment income (loss) to average
net assets** 6.54% 1.37%
Portfolio turnover rate*** 51% 19%
Net assets, end of period (in thousands) $137,074 $32,893
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.61% 1.26%
Net investment income 6.54% 0.88%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not annualized.
The accompanying notes are an integral part of these financial statements. 53
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Moderate Allocation Fund
Six Months
Ended 8/9/04(a)
1/31/06 To
(unaudited) 7/31/05
CLASS B
Net asset value, beginning of period $ 10.77 $ 10.00
------- -------
Increase from investment operations:
Net investment income (loss) (b) $ 0.31 $ 0.02
Net realized and unrealized gain on investments 0.24 0.98
------- -------
Net increase from investment operations $ 0.55 $ 1.00
------- -------
Distributions to shareowners:
Net investment income $ (0.03) $ -
Net realized gain (0.24) (0.23)
------- -------
Net increase in net asset value $ 0.28 $ 0.77
------- -------
Net asset value, end of period $ 11.05 $ 10.77
======= =======
Total return* 5.24% 10.11%
Ratio of net expenses to average net assets** 1.53% 1.67%
Ratio of net investment income (loss) to average
net assets** 5.68% 0.16%
Portfolio turnover rate*** 51% 19%
Net assets, end of period (in thousands) $51,234 $ 9,781
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.60% 2.08%
Net investment income (loss) 5.61% (0.25)%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not annualized.
54 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Moderate Allocation Fund
Six Months
Ended 8/9/04(a)
1/31/06 To
(unaudited) 7/31/05
CLASS C
Net asset value, beginning of period $ 10.68 $ 10.00
------- -------
Increase from investment operations:
Net investment income (loss) (b) $ 0.30 $ 0.05
Net realized and unrealized gain on investments 0.25 0.87
------- -------
Net increase from investment operations $ 0.55 $ 0.92
------- -------
Distributions to shareowners:
Net investment income $ (0.01) $ (0.01)
Net realized gain (0.24) (0.23)
------- -------
Net increase in net asset value $ 0.30 $ 0.68
------- -------
Net asset value, end of period $ 10.98 $ 10.68
======= =======
Total return* 5.21% 9.32%
Ratio of net expenses to average net assets** 1.40% 1.67%
Ratio of net investment income (loss) to average
net assets** 5.63% 0.44%
Portfolio turnover rate*** 51% 19%
Net assets, end of period (in thousands) $25,714 $15,223
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.40% 2.03%
Net investment income 5.63% 0.08%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not annualized.
The accompanying notes are an integral part of these financial statements. 55
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Moderate
Allocation Fund
9/26/05(a)
To
1/31/06
(unaudited)
CLASS Y
Net asset value, beginning of period $ 11.18
-------
Increase from investment operations:
Net investment income (loss) (b) $ 0.28
Net realized and unrealized gain on investments 0.35
-------
Net increase from investment operations $ 0.63
-------
Distributions to shareowners:
Net investment income $ (0.08)
Net realized gain (0.24)
-------
Net increase in net asset value $ 0.31
-------
Net asset value, end of period $ 11.49
=======
Total return* 5.64%
Ratio of net expenses to average net assets** 0.26%
Ratio of net investment income (loss) to average
net assets** 7.13%
Portfolio turnover rate*** 51%
Net assets, end of period (in thousands) $42,526
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.26%
Net investment income 7.13%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not annualized.
56 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth Allocation Fund
Six Months
Ended 8/9/04(a)
1/31/06 To
(unaudited) 7/31/05
CLASS A
Net asset value, beginning of period $ 11.50 $ 10.00
------- -------
Increase from investment operations:
Net investment income (loss) (b) $ 0.40 $ 0.08
Net realized and unrealized gain on investments 0.45 1.70
------- -------
Net increase from investment operations $ 0.85 $ 1.78
------- -------
Distributions to shareowners:
Net investment income $ (0.05) $ (0.03)
Net realized gain (0.13) (0.25)
------- -------
Net increase in net asset value $ 0.67 $ 1.50
------- -------
Net asset value, end of period $ 12.17 $ 11.50
======= =======
Total return* 7.43% 17.96%
Ratio of net expenses to average net assets** 0.76% 0.81%
Ratio of net investment income (loss) to average
net assets** 6.79% 0.69%
Portfolio turnover rate*** 31% 2%
Net assets, end of period (in thousands) $93,396 $31,212
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.76% 1.42%
Net investment income 6.79% 0.08%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not annualized.
The accompanying notes are an integral part of these financial statements. 57
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------
Growth Allocation Fund
Six Months
Ended 8/9/04(a)
1/31/06 To
(unaudited) 7/31/05
CLASS B
Net asset value, beginning of period $ 10.50 $ 10.00
------- -------
Increase from investment operations:
Net investment income (loss) (b) $ 0.31 $ 0.01
Net realized and unrealized gain on investments 0.43 0.74
------- -------
Net increase from investment operations $ 0.74 $ 0.75
------- -------
Distributions to shareowners:
Net investment income $ (0.02) $ -
Net realized gain (0.13) (0.25)
------- -------
Net increase in net asset value $ 0.59 $ 0.50
------- -------
Net asset value, end of period $ 11.09 $ 10.50
======= =======
Total return* 6.97% 7.59%
Ratio of net expenses to average net assets** 1.58% 1.71%
Ratio of net investment income (loss) to average
net assets** 5.77% 0.05%
Portfolio turnover rate*** 31% 2%
Net assets, end of period (in thousands) $52,715 $10,219
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.73% 2.27%
Net investment income (loss) 5.62% (0.51)%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests.
Because each of the underlying funds bears its own varying expense levels
and because the Fund may own differing proportions of each fund at
different times, the amount of expenses incurred indirectly by the Fund
will vary from time to time.
*** Not annualized.
58 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth Allocation Fund
Six Months
Ended 8/9/04(a)
1/31/06 To
(unaudited) 7/31/05
CLASS C
Net asset value, beginning of period $ 11.10 $ 10.00
------- -------
Increase from investment operations:
Net investment income (loss) (b) $ 0.35 $ (0.01)
Net realized and unrealized gain on investments 0.43 1.37
------- -------
Net increase from investment operations $ 0.78 $ 1.36
------- -------
Distributions to shareowners:
Net investment income $ - $ (0.01)
Net realized gain (0.13) (0.25)
------- -------
Net increase in net asset value $ 0.65 $ 1.10
------- -------
Net asset value, end of period $ 11.75 $ 11.10
======= =======
Total return* 6.97% 13.67%
Ratio of net expenses to average net assets** 1.47% 1.71%
Ratio of net investment income (loss) to average
net assets** 6.26% (0.07)%
Portfolio turnover rate*** 31% 2%
Net assets, end of period (in thousands) $25,466 $14,874
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.47% 2.13%
Net investment loss 6.26% (0.49)%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not annualized.
The accompanying notes are an integral part of these financial statements. 59
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth
Allocation Fund
9/26/05(a)
To
1/31/06
(unaudited)
CLASS Y
Net asset value, beginning of period $ 11.54
-------
Increase from investment operations:
Net investment income (loss) (b) $ 0.30
Net realized and unrealized gain on investments 0.55
-------
Net increase from investment operations $ 0.85
-------
Distributions to shareowners:
Net investment income $ (0.06)
Net realized gain (0.13)
-------
Net increase in net asset value $ 0.66
-------
Net asset value, end of period $ 12.20
=======
Total return* 7.27%
Ratio of net expenses to average net assets** 0.32%
Ratio of net investment income (loss) to average
net assets** 7.03%
Portfolio turnover rate*** 31%
Net assets, end of period (in thousands) $ 6,261
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.32%
Net investment loss 7.03%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests.
Because each of the underlying funds bears its own varying expense levels
and because the Fund may own differing proportions of each fund at
different times, the amount of expenses incurred indirectly by the Fund
will vary from time to time.
*** Not annualized.
60 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
Six Months
Ended 8/9/04(a)
1/31/06 To
(unaudited) 7/31/05
CLASS A
Net asset value, beginning of period $ 11.82 $ 10.00
------- -------
Increase from investment operations:
Net investment income (loss) (b) $ 0.07 $ -
Net realized and unrealized gain on investments 0.97 2.14
------- -------
Net increase from investment operations $ 1.04 $ 2.14
------- -------
Distributions to shareowners:
Net investment income $ (0.02) $ -
Net realized gain (0.27) (0.27)
Return of capital - (0.05)
------- -------
Net increase in net asset value $ 0.75 $ 1.82
------- -------
Net asset value, end of period $ 12.57 $ 11.82
======== ========
Total return* 8.86% 21.57%
Ratio of net expenses to average net assets** 0.85% 0.86%
Ratio of net investment income (loss) to average
net assets** 7.20% (0.04%)
Portfolio turnover rate*** 56% 3%
Net assets, end of period (in thousands) $63,706 $20,689
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.85% 2.14%
Net investment loss 7.20% (1.32%)
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not annualized.
The accompanying notes are an integral part of these financial statements. 61
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
Six Months
Ended 8/9/04(a)
1/31/06 To
(unaudited) 7/31/05
CLASS B
Net asset value, beginning of period $ 11.39 $ 10.00
------- -------
Increase from investment operations:
Net investment income (loss) (b) $ 0.36 $ (0.03)
Net realized and unrealized gain on investments 0.59 1.72
------- -------
Net increase from investment operations $ 0.95 $ 1.69
------- -------
Distributions to shareowners:
Net investment income $ - $ -
Net realized gain (0.27) (0.27)
Return of capital - (0.03)
------- -------
Net increase in net asset value $ 0.68 $ 1.39
------- -------
Net asset value, end of period $ 12.07 $ 11.39
======= =======
Total return* 8.43% 17.02%
Ratio of net expenses to average net assets** 1.65% 1.76%
Ratio of net investment income (loss) to average
net assets** 6.26% (0.26)%
Portfolio turnover rate*** 56% 3%
Net assets, end of period (in thousands) $26,930 $ 5,845
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.87% 2.81%
Net investment income (loss) 6.04% (1.31)%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not annualized.
62 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
Six Months
Ended 8/9/04(a)
1/31/06 To
(unaudited) 7/31/05
CLASS C
Net asset value, beginning of period $ 11.54 $ 10.00
------- -------
Increase from investment operations:
Net investment income (loss) (b) $ 0.40 $ (0.04)
Net realized and unrealized gain on investments 0.56 1.88
------- -------
Net increase from investment operations $ 0.96 $ 1.84
------- -------
Distributions to shareowners:
Net investment income $ - $ -
Net realized gain (0.27) (0.27)
Return of capital - (0.03)
------- -------
Net increase in net asset value $ 0.69 $ 1.54
------- -------
Net asset value, end of period $ 12.23 $ 11.54
======= =======
Total return* 8.32% 18.52%
Ratio of net expenses to average net assets** 1.59% 1.76%
Ratio of net investment income (loss) to average
net assets** 6.74% (0.39)%
Portfolio turnover rate*** 56% 3%
Net assets, end of period (in thousands) $12,027 $ 7,144
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.59% 2.74%
Net investment (loss) 6.74% (1.37)%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not annualized.
The accompanying notes are an integral part of these financial statements. 63
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------
Aggressive
Allocation Fund
9/26/05(a)
To
1/31/06
(unaudited)
CLASS Y
Net asset value, beginning of period $ 11.87
-------
Increase from investment operations:
Net investment income (loss) (b) $ 0.34
Net realized and unrealized gain on investments 0.70
-------
Net increase from investment operations $ 1.04
-------
Distributions to shareowners:
Net investment income $ (0.03)
Net realized gain (0.27)
-------
Net increase in net asset value $ 0.74
-------
Net asset value, end of period $ 12.61
=======
Total return* 8.58%
Ratio of net expenses to average net assets** 0.37%
Ratio of net investment income (loss) to average
net assets** 8.09%
Portfolio turnover rate*** 56%
Net assets, end of period (in thousands) $ 7,300
Ratios with no waivers of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.37%
Net investment (loss) 8.09%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Not annualized.
64 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
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NOTES TO FINANCIAL STATEMENTS 1/31/06 (unaudited)
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1. Organization and Significant Accounting Policies
Pioneer Ibbotson Asset Allocation Series (the Trust) was organized as a
Delaware statutory trust on April 22, 2004 (amended July 1, 2004) and was
registered with the Securities and Exchange Commission under the Investment
Company Act of 1940 (the 1940 Act) as an open-end management investment
company. The Trust consists of four separate funds, each issuing four classes
of shares (collectively, the Funds, individually, the Fund) as follows:
Pioneer Ibbotson Conservative Allocation Fund (Conservative Fund)
Pioneer Ibbotson Moderate Allocation Fund (Moderate Fund)
Pioneer Ibbotson Growth Allocation Fund (Growth Fund)
Pioneer Ibbotson Aggressive Allocation Fund (Aggressive Fund)
The investment objective of the Conservative Fund is to seek long-term capital
growth and current income. The Moderate Fund seeks long-term capital growth and
current income. The Growth Fund seeks long-term capital growth and current
income. The Aggressive Fund seeks long-term capital growth.
Each Fund is a "fund of funds," which means that it seeks to achieve its
investment objective by investing in other funds ("underlying funds") rather
than 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 four classes of shares designated Class A, Class B, Class C
and Class Y. Each class of shares represents an interest in the same portfolio
of investments of the Fund and has equal rights to voting, redemptions,
dividends and liquidation, except that each 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
65
Pioneer Ibbotson Asset Allocation Series
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NOTES TO FINANCIAL STATEMENTS 1/31/06 (unaudited) (continued)
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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
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. The tax character of current year distributions paid will
be determined at the end of the current fiscal year.
66
Pioneer Ibbotson Asset Allocation Series
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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 Allocation Fund $ 595 $ - $ (595)
Moderate Allocation Fund (27,610) 30,458 (2,848)
Growth Allocation Fund 1,020 364 (1,384)
Aggressive Allocation 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.
67
Pioneer Ibbotson Asset Allocation Series
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NOTES TO FINANCIAL STATEMENTS 1/31/06 (unaudited) (continued)
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C. Fund Shares
The Board of Trustees has authorized the issuance of four classes of
shares, designated as Class A, Class B, Class C and Class Y. Additional
classes of shares have been authorized but are not referenced in the
Fund's prospectus. For the Moderate Allocation, Growth Allocation and
Aggressive Allocation Funds, Class A, Class B and Class C shares were
offered for sale to the public on August 9, 2004. For the Conservative
Allocation Fund, Class A, Class B and Class C shares were offered for sale
to the public on May 12, 2005. Class Y shares were offered for sale to the
public on October 5, 2005. 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 six months ended January 31, 2006:
Fund Amount
---- ------
Conservative Fund $ 11,366
Moderate Fund $ 70,425
Growth Fund $112,103
Aggressive Fund $ 65,275
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). Share owners of each class share all expenses
and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services, which are allocated
based on the number of accounts in each class and the ratable allocation
of related out-of-pocket expenses (see Note 3). Income, common expenses
and realized and unrealized gains and losses are calculated at the Fund
level and allocated daily to each class of shares based on the respective
percentage of adjusted net assets at the beginning of the day.
68
Pioneer Ibbotson Asset Allocation Series
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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.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Funds, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of the
purchase. The collateral for all repurchase agreements is held in
safekeeping in the customer-only account of the Funds' custodian, or
subcustodians. The Fund's investment adviser, Pioneer Investment
Management, Inc. PIM is responsible for determining that the value of the
collateral remains at least equal to the repurchase price.
2. Management Agreement
PIM, 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.
69
Pioneer Ibbotson Asset Allocation Series
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NOTES TO FINANCIAL STATEMENTS 1/31/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
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 January 31, 2006, the following fees
were payable to PIM relating to management fees and certain other services and
are included in due to affiliates:
Fund Amount
---- --------
Conservative Fund* $10,974
Moderate Fund $36,724
Growth Fund $25,956
Aggressive Fund $16,805
* Commenced operations May 12, 2005.
From August 1, 2005 through August 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
- --------------------------------------------------------------------------------
Conservative Fund .78% 1.68% 1.68%
Moderate Fund .74% 1.64% 1.64%
Growth Fund .79% 1.69% 1.69%
Aggressive Fund .85% 1.75% 1.75%
Effective September 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 .78% 1.68% 1.68%
Moderate Fund .74% 1.52% 1.52%
Growth Fund .79% 1.57% 1.57%
Aggressive Fund .85% 1.64% 1.64%
70
Pioneer Ibbotson Asset Allocation Series
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3. Transfer Agent
PIMSS provides substantially all transfer agent and shareowner services to the
Funds at negotiated rates. Included in due to affiliates are the following
amounts of transfer agent fees payable to PIMSS at January 31, 2006:
Fund Amount
---- ------
Conservative Fund $ 2,532
Moderate Fund $75,320
Growth Fund $92,209
Aggressive Fund $66,675
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 January 31, 2006 the following fees were payable to PFD relating
to distribution and service fees and are included in due to affiliates:
Fund Amount
---- ------
Conservative Fund $ 4,676
Moderate Fund $90,958
Growth Fund $85,903
Aggressive Fund $49,200
71
Pioneer Ibbotson Asset Allocation Series
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NOTES TO FINANCIAL STATEMENTS 1/31/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
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 five years of purchase will
be subject to a CDSC at declining rates beginning at 4.00%, based on the lower
of cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%. For the six months
ended January 31, 2006, the following CDSC's were paid to PFD:
Fund Amount
---- ------
Conservative Fund $ 1,553
Moderate Fund $48,542
Growth Fund $57,396
Aggressive Fund $29,873
5. Merger Information
On September 22, 2005, the beneficial owners of certain AmSouth Funds approved
a proposed merger agreement and Plan of Reorganization that provided for the
mergers listed below. These tax-free reorganizations were accomplished on
September 26, 2005 by exchanging all of the AmSouth Fund's net assets for
shares of the applicable Pioneer Ibbotson Fund, based upon the Fund's Class A,
Class B and Class Y shares' ending net asset values, respectively. The
following charts show the details of the reorganizations as of that closing
date ("Closing Date"):
72
Pioneer Ibbotson Asset Allocation Series
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- --------------------------------------------------------------------------------
Pioneer AmSouth AmSouth Pioneer
Moderate Growth and Moderate Growth Moderate
Allocation Fund Income Fund and Income Fund Allocation Fund
(Pre-Reorganization) (Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- --------------------------------------------------------------------------------------------------------------
Net Assets
Class A $40,918,497 $ 47,985,562 $20,156,983 $109,061,042
Class B $11,519,608 $ 19,432,527 $13,837,388 $ 44,789,524
Class C $17,124,590 $ 17,124,590
Class Y $ 54,096,317
Class I $ 40,453,115 $13,643,202
Total Net Assets $69,562,695 $107,871,204 $47,637,573 $225,071,473
Shares
Outstanding
Class A 3,660,813 4,708,295 2,060,226 9,756,384
Class B 1,068,504 1,914,637 1,423,053 4,155,001
Class C 1,602,231 1,602,231
Class Y 4,838,972
Class I 3,953,925 1,390,285
Shares Issued in
Reorganization
Class A 6,095,571
Class B 3,086,496
Class Y 4,838,972
Unrealized
Appreciation Accumulated Gain
On Closing On Closing
Date Date
- --------------------------------------------------------------------------------------------------------------
AmSouth Growth and
Income Fund $8,743,400 $2,595,540
AmSouth Moderate Growth
and Income Fund $1,726,341 $ 851,251
73
Pioneer Ibbotson Asset Allocation Series
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NOTES TO FINANCIAL STATEMENTS 1/31/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
Pioneer Growth AmSouth Pioneer Growth
Allocation Fund Growth Fund Allocation Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- ---------------------------------------------------------------------------------------------
Net Assets
Class A $38,438,637 $29,688,353 $ 68,126,990
Class B $12,106,330 $30,697,135 $ 42,803,465
Class C $16,868,540 $ 16,868,540
Class Y $ 7,798,364
Class I $ 7,798,364
Total Net Assets $67,413,507 $68,183,852 $135,597,359
Shares
Outstanding
Class A 3,332,335 3,007,670 5,905,091
Class B 1,149,798 3,155,064 4,065,072
Class C 1,516,287 1,516,287
Class Y 675,780
Class I 786,487
Shares Issued in
Reorganization
Class A 2,572,757
Class B 2,915,273
Class Y 675,780
Unrealized
Appreciation Accumulated Gain
On Closing On Closing
Date Date
- ---------------------------------------------------------------------------------------------
AmSouth Growth Fund $5,108,682 $1,905,046
74
Pioneer Ibbotson Asset Allocation Series
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Pioneer Aggressive AmSouth Aggressive Pioneer Aggressive
Allocation Fund Growth Fund Allocation Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
---------------------- ---------------------- ----------------------
Net Assets
Class A $25,582,418 $20,930,973 $46,513,391
Class B $ 7,003,626 $15,538,420 $22,542,046
Class C $ 8,276,330 $ 8,276,330
Class Y $14,847,156
Class I $14,847,156
Total Net Assets $40,862,374 $51,316,549 $92,178,923
Shares
Outstanding
Class A 2,154,549 2,128,158 3,917,819
Class B 613,143 1,653,405 1,973,727
Class C 715,365 715,365
Class Y 1,250,780
Class I 1,509,339
Shares Issued in
Reorganization
Class A 1,763,269
Class B 1,360,585
Class Y 1,250,780
Unrealized
Appreciation Accumulated Gain
On Closing On Closing
Date Date
- ---------------------------------------------------------------------------------------------
AmSouth Aggressive
Growth Fund $6,818,836 $1,802,796
75
Pioneer Ibbotson Asset Allocation Series
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FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT
- --------------------------------------------------------------------------------
The Investment Company Act of 1940 requires that both the Board of Trustees and
a majority of the Independent Trustees (collectively "the Trustees") voting
separately initially and annually thereafter approve the Fund's management
contract (the "Management Contract") between the Fund and Pioneer Investment
Management, Inc., the Fund's adviser (the "Investment Adviser"). The Investment
Adviser has retained Ibbotson Associates Advisors LLC. (the "Sub-adviser") to
act as sub-adviser to the Fund pursuant to a sub-advisory agreement between the
Investment Adviser and the Sub-adviser (the "Sub-advisory Agreement"). The
Trustees have determined that the terms of the Management Contract and the
Sub-advisory Agreement are fair and reasonable and that approval of these
contracts will enable the Fund to receive quality investment advisory services
at a cost deemed reasonable and is in the best interests of the Fund and its
shareowners. In making such determinations, the Independent Trustees relied
upon the assistance of counsel to the Independent Trustees and counsel to the
Fund.
Throughout the year, the Independent Trustees regularly met in executive
session separately from the Interested Trustees of the Fund and any officer of
the Investment Adviser, or its affiliates. While the Trustees, including the
Independent Trustees, act on all major matters relating to the Fund, a
significant portion of the activities of the Board of Trustees (including
certain of those described herein) is conducted through committees, the members
of which are comprised exclusively of Independent Trustees. Such committee
meetings are attended by officers of the Fund or the Investment Adviser to the
extent requested by the members of the committee.
In evaluating the Management Contract and Sub-advisory Agreement, the Trustees
conducted a review that was specifically focused upon the renewal of the
Management Contract and Sub-advisory Agreement, and relied upon their
knowledge, resulting from their meetings throughout the year, of the Investment
Adviser, its services and the Fund. Both in meetings specifically dedicated to
renewal of the Management Contract and at other meetings during the course of
the year, the Trustees, including the Independent Trustees, received materials
relating to the Investment Adviser's investment and management services under
the Management Contract. These materials included (i) arrangements in respect
of the distribution of the Fund's shares, (ii) the procedures employed to
determine the value of each of the Fund's assets, (iii) the Investment
Adviser's management of the relationships with the Fund's
76
Pioneer Ibbotson Asset Allocation Series
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unaffiliated service providers, (iv) the record of compliance with the Fund's
investment policies and restrictions and with the Fund's Code of Ethics and the
structure and responsibilities of the Investment Adviser's compliance
department, (v) the nature, cost and character of non-investment management
services provided by the Investment Adviser and its affiliates, (vi) the
disclosures included in the Fund's prospectuses and reports to shareowners and
(vii) the investment and compliance staff and operations of the Subadviser.
Specifically, in connection with the Independent Trustees' review of the
Management Contract and the Sub-advisory Agreement, the Independent Trustees
requested and the Investment Adviser provided additional information in order
to evaluate the quality of the Investment Adviser's and Sub-adviser's services
and the reasonableness of the fee under the Management Contract and the
Sub-advisory Agreement. Among other items, this information included data or
analyses of (1) management and other fees incurred by a peer group of funds
selected by the Independent Trustees for this purpose, (2) the advisory fees of
comparable portfolios of other clients of the Investment Adviser and the
Sub-adviser, (3) estimated expense ratios for the Fund and a peer group of
funds selected by the Independent Trustees for this purpose, (4) the overall
organization of the Investment Adviser and the Sub-adviser, (5) the Investment
Adviser's and Sub-adviser's financial results and condition, including, in the
case of the Investment Adviser, its and certain of its affiliates profitability
from services performed for the Fund, (6) transfer agency fees and
administrative reimbursements paid to the Investment Adviser or affiliates, (7)
investment management staffing, and (8) operating expenses paid to third
parties. The Trustees also reviewed information regarding the potential for
each of the Fund and the Investment Adviser to benefit from further economies
of scale in the management of the Fund in light of reasonable growth
expectations for the Fund and certain of the Fund's expenses that are not
incurred as fees based on a percentage of net assets.
The following summarizes factors considered by the Trustees in connection with
reviewing the information described above and their renewal of the Fund's
Management Contract. The Trustees did not identify any single factor as
all-important or controlling, and the summary does not detail all the matters
that were considered.
A. Ancillary Benefits to Shareowners. The Trustees considered the benefits to
shareowners of investing in a Fund that is part of a
77
Pioneer Ibbotson Asset Allocation Series
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FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
large number of investment companies offering a variety of investment
disciplines and providing for a large variety of Fund and shareowner
services.
B. Compliance and Investment Performance. The Trustees determined that the
Investment Adviser had policies and systems reasonably designed to achieve
compliance with the Fund's investment objectives and regulatory
requirements. Since the Fund had limited history of operations, the
Trustees did not evaluate investment performance.
C. The Investment Adviser's Personnel and Methods. The Trustees reviewed the
background of members of the team responsible for the daily management of
the Fund and the Fund's investment objective and discipline. The
Independent Trustees also have had discussions with senior management of
the Investment Adviser responsible for investment operations. Among other
things, the Trustees considered the number, education and experience of the
Sub-adviser's investment staff. The Trustees concluded that the Investment
Adviser and the Sub-adviser have the quality and depth of personnel and the
well-developed methods essential to performing their duties under the
Management Contract and the Sub-advisory Agreement.
D. Nature and Quality of Other Services. The Trustees considered the nature,
quality, cost and extent of other services provided to shareowners of the
Fund, including administrative and shareowner services performed by the
Investment Adviser under the Management Contract. The Trustees also
considered the reasonableness of the arrangements for reimbursement of the
Investment Adviser's out-of-pocket costs and expenses, including overhead,
for certain administrative services that the Investment Adviser is not
required to provide under the Management Contract. The Trustees also
considered the nature and extent of the other services provided by the
Investment Adviser's affiliates under other contracts and its supervision
of third party service providers. Based on these considerations, the
Trustees concluded that the nature, quality, cost and extent of such
services are satisfactory and reliable and serve the shareowners of the
Fund well.
E. Management Fee and Expenses. The Trustees considered the Investment
Adviser's fee under the Management Contract relative to the management fees
charged by a peer group of funds
78
Pioneer Ibbotson Asset Allocation Series
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- --------------------------------------------------------------------------------
selected by the Independent Trustees for this purpose using data provided
by an independent third party. The Fund's management fee is below the
median fee for the peer group of funds. Since the Fund had limited
operating history, the Trustees concluded that an evaluation of the Fund's
expense ratio against the expense ratio of a peer group of funds was not
meaningful at this time.
F. Economies of Scale. The Trustees considered the economies of scale with
respect to the management of the Fund, whether the Fund had appropriately
benefited from any economies of scale, and whether there was potential for
realization of any further economies of scale. The Trustees concluded that,
given current and anticipated assets levels, a break point in the
management fee was not necessary. As the assets increase, the Trustees will
continue to evaluate annually the appropriateness of break points.
H. Other Benefits to the Investment Adviser. The Trustees also considered the
character and amount of fees paid by the Fund, other than under the
Management Contract, for services provided by the Investment Adviser and
affiliates, including fees for services such as shareowner services. The
Trustees also considered the receipt of sales loads and payments under Rule
12b-1 plans in respect of the Pioneer Funds (including the Fund). The
Trustees further considered the revenues and profitability of the
Investment Adviser's businesses other than the fund business, including the
Investment Adviser's institutional investment advisory business. The
Trustees considered the intangible benefits that accrue to the Investment
Adviser and its affiliates by virtue of its relationship with the Fund and
the Pioneer Funds as a group. The Trustees concluded that all these types
of benefits accruing to the Investment Adviser were reasonable in the
context of the overall relationship between the Investment Adviser and the
Fund.
Conclusion. Based on their evaluation of all material factors deemed relevant
and the advice of independent counsel, the Trustees concluded that the
Management Contract with the Fund and the Sub-advisory Agreement are fair and
reasonable and voted to approve the Management Contract and the Sub-advisory
Agreement.
79
Pioneer Ibbotson Asset Allocation Series
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Osbert M. Hood, Executive
Mary K. Bush Vice President
Margaret B.W. Graham Vincent Nave, Treasurer
Thomas J. Perna Dorothy E. Bourassa, Secretary
Marguerite A. Piret
John Winthrop
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.pioneerfunds.com. This information is also available on our
web site at www.pioneerfunds.com and on the Securities and Exchange
Commission's web site at http://www.sec.gov.
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HOW TO CONTACT PIONEER
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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.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's independent auditor, Ernst &
Young LLP ("E&Y"), has advised the Audit
Committee of the Fund's Board of Trustees that
E&Ys Spanish affiliate (E&Y Spain) performed
certain non-audit work for Pioneer Global
Investments Limited ("PGIL"), an affiliate of the
Funds investment adviser. The services involved
the receipt and disbursement of monies transferred
to E&Y Spain by PGIL in payment of individual
payroll and related income tax withholdings due on
returns prepared by E&Y Spain for certain PGIL
employees located in Spain from February 2001 to
October 2005. E&Y became auditors of the Fund in
May 2002. These payroll and tax services were
discontinued in November 2005. The annual fee
received by E&Y Spain for all such services totaled
approximately 9,000 Euro per year. E&Y has informed
the Audit Committee that based on its internal
reviews and the de minimus nature of the services
provided and fees received, E&Y does not believe
its independence with respect to the Fund has been
impaired or that it is disqualified from acting as
independent auditors to the Fund.
N/A
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
The registrant has a separately-designated standing audit
committe eestablished in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer and principal financial
officer have concluded, that the registrant's disclosure controls and
procedures are effective based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Ibbotson Asset Allocation Series
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date March 31, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date March 31, 2006
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date March 31, 2006
* Print the name and title of each signing officer under his or her signature.