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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21569
Pioneer Ibbotson Asset Allocation Series
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: July 31
Date of reporting period: August 1, 2006 through July 31, 2007
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
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PIONEER
-------
IBBOTSON
ASSET ALLOCATION
SERIES
Annual
Report
7/31/07
[Logo] PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Market Overview and Outlook 4
Comparing Ongoing Fund Expenses 8
Portfolio Reviews 16
Prices and Distributions 18
Conservative Allocation Fund - Portfolio Summary and
Performance Update 20
Moderate Allocation Fund - Portfolio Summary and
Performance Update 25
Growth Allocation Fund - Portfolio Summary and
Performance Update 30
Aggressive Allocation Fund - Portfolio Summary and
Performance Update 35
Schedule of Investments 40
Financial Statements 44
Notes to Financial Statements 66
Report of Independent Registered Public Accounting Firm 79
Trustees, Officers and Service Providers 80
President's
Dear Shareowner,
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Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. Those
were particularly useful guides during the past year, as U.S. and global stock
and bond markets grew strongly during the period.
In the 12 months ending July 31, 2007, equity investors were generally rewarded
as, despite a late-July decline, the Standard & Poor's 500 Index generated a
return of 16% over that period, the Dow Jones Industrial Average returned 21%,
and the NASDAQ Composite returned 22%. International developed and emerging
markets equities performed even better than U.S. equities, with the MSCI EAFE
Developed Market Index returning 24% and the MSCI Emerging Markets Index
returning 51% in the 12-month period.
The U.S. bond market, as measured by the Lehman Aggregate Bond Index, returned
6% in the 12 months ending July 31, 2007, with returns comprising both coupon
income and price gains linked to a modest decline in interest rates over the 12
months. The high-yield market, as measured by the Merrill Lynch High Yield Bond
Master II Index, returned 7%, reflecting its higher coupon yields and continuing
investor confidence in the strength of the U.S. economy.
U.S. economic growth has slowed recently, but continuing growth at a moderate
rate appears more likely than a recession. Slowing growth was due in large part
to a decline in the rate of new home construction and in part to the lagging
effects of rising energy and commodity prices and rising short-term interest
rates. It also stemmed from the natural maturation of the cyclical expansion as
U.S. factories approach full utilization and the labor market approaches full
employment. This slowdown, therefore, was not entirely unwelcome, as it reduces
the threat of higher inflation.
The Federal Reserve Board (the Fed) continues to highlight its commitment to
keeping inflationary pressures contained. This is in keeping with "best
practices" among the world's central banks: low and stable inflation is believed
to be the best backdrop for stable economic growth and low average unemployment
over the long term. Keeping inflation low is also an important support for stock
and bond valuations, and so the Fed's policy is "investor friendly."
In Europe, solid GDP growth driven by a positive operating environment for
European companies, especially those that are benefiting from strong
2
Letter
export markets for their goods and services, is pushing unemployment lower and
supporting growing consumption. European inflationary pressures appear to be
largely under control, with the European Central bank remaining strongly
vigilant. Japanese economic growth continues, and the country has become a more
attractive market as deflationary problems recede. Economic growth in emerging
market countries remains faster than in the developed world as they continue to
"catch up," led by China, which continues its rise as a world economic power.
Looking forward, the economic outlook and equity valuations continue to appear
generally positive, although the current environment is plagued by fears that
sub-prime mortgage problems will result in a systemic liquidity/credit crunch.
While falling risk tolerances may depress asset prices in the short term,
valuations appear reasonable if credit market problems do not spread to the
broader economy.
Sudden swings in the markets are always to be expected. Just as staying
diversified and invested are important investment principles, it is also
important to pay attention to asset allocation. As always, we encourage
shareholders to work closely with their financial advisor to find the mix of
stocks, bonds and money market assets that is aligned to your particular risk
tolerance and investment objective.
Respectfully,
/s/Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Portfolio's historical or future performance are
statements of the opinion of a portfolio's management as of the date of this
report. These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Ibbotson Asset Allocation Series
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MARKET OVERVIEW AND OUTLOOK 7/31/07
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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 Allocation
Series for the annual period ended July 31, 2007.
Q: Could you characterize the economic and market backdrop during the 12
months ended July 31, 2007?
A: As the period began, economic growth showed some signs of moderating, led
in particular by a softening in the housing sector. At its August meeting,
after 17 consecutive quarter point increases in the Fed funds rate, the
Federal Reserve paused in its tightening campaign, leaving the benchmark
short-term rate at its current 5.25%. Longer-term interest rates fell
sharply early in the period, leading to a flattening and then an inversion
of the yield curve (where shorter-term issues yield more than long-term
issues). As the period progressed, the economy displayed solid growth
despite continued uncertainty over the future impact of the housing sector,
and in particular the subprime mortgage market. While inflation generally
remained moderate, there were indicators including continued strong
employment and high oil prices that raised concerns over its future
direction. A pick up in inflationary concerns caused the yield curve to
re-steepen over the second half of the year, as yields on longer Treasuries
began to reflect the risk of their returns being eroded.
As the period drew to a close, heightened concerns over the subprime
mortgage sector led to a sharp increase in financial market volatility. For
the full period, bonds generally provided positive returns. Both domestic
and international equity markets provided strong positive returns for the
fiscal year.
Q: What were the tactical considerations that you applied to the four
portfolios in allocating assets?
A: For each portfolio, assets have been invested in keeping with their broad
asset allocation and specific mutual fund targets. Within this strategic
framework, during the year, we maintained our tactical positioning in three
areas across all the portfolios.
Within the U.S. stock portion of the Funds, we continued to emphasize
large-capitalization stocks relative to small-cap stocks in relation to the
Funds' target allocations. We have done this for a number
4
Pioneer Ibbotson Asset Allocation Series
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of reasons. While small-cap stocks have historically outperformed
large-caps over significant periods, there is a cyclical aspect to this
performance leadership, and the recent cycle of outperformance has been
unusually long. In addition, small-cap stocks are currently trading at
valuations approximately double those for large caps. Finally, if the
economy slows as a result of higher interest rates, large-cap stocks may be
more resilient. For the annual period, this strategy was a positive for
performance, as large cap stocks began to display meaningful outperformance
versus small caps. We believe that the market may be on the brink of a
cycle of large cap performance leadership, and expect to maintain this
positioning going forward. With respect to the other equity categories,
exposure remained in line with the target allocations throughout the
period. We have also maintained neutral target weightings in the non-U.S.
equity market alternatives, both developed and emerging.
A second strategic emphasis is within the bond portion of the portfolios,
where we have continued to emphasize the long-term bond vehicle versus the
target allocations, with the difference allocated to the shorter-term
fixed-income alternative. This strategy was essentially a neutral factor in
performance for the full period, although it began to work well for the
portfolios as longer-term issues experienced the most impact as interest
rates rose. While it is difficult to predict the direction for long-term
interest rates over the short term, over time we do expect long-term bond
yields to continue to trend higher, with corresponding downward pressure on
prices of these issues. In addition, short-term rates are reasonably
attractive given the Fed's past increases of the benchmark rate. In view of
these factors, we believe the risk/reward profile continues to be more
favorable among shorter-term issues. Elsewhere within fixed-income, we have
maintained target 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 relation to the Funds' targets. REITs are traditionally most attractive
to investors seeking income return, and these issues benefited from the
period of low interest rates experienced in the recent past. As rates have
risen, REIT yields have reached historically low levels relative to
Treasury bonds. At the same time, REITs on the whole continue to be priced
at well above the general stock market, as gauged by traditional valuation
measures, such as price-to-earnings
5
Pioneer Ibbotson Asset Allocation Series
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MARKET OVERVIEW AND OUTLOOK 7/31/07 (continued)
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ratio. In addition to appearing less attractively valued when compared to
both bonds and the rest of the stock market, REITs may be vulnerable to
higher market interest rate levels, which we expect to lead to continued
cooling in the real estate sector. This strategy added to performance over
the year, as REITs fell sharply. We continue to underweight REITs in view
of our risk/reward assessment.
Q: What factors are you watching most closely as you determine allocations for
the portfolios going forward?
A: Overall, despite the recent rise in market volatility, our outlook
continues to be for a relatively stable economic backdrop. Core inflation
continues to run at the upper end of the Fed's comfort zone, and the job
market is producing solid employment numbers. We anticipate ongoing
weakness in the U.S. dollar in view of the U.S. trade, budget and savings
deficits. This also implies the likelihood of higher interest rate levels
and relatively low returns for bonds. We are continuing to monitor
high-yield bonds in particular for possible trimming.
The outlook for corporate profit growth remains solid, and we believe the
U.S. stock market is fairly priced. In view of our outlook for the U.S.
dollar, however, we continue to evaluate overseas markets as a possible
focus area (relative to target allocations) as valuations permit. We
anticipate further softening in the real estate sector and will be closely
watching for any impact on the broader economy.
Going forward, we will continue to monitor economic indicators and interest
rates to evaluate whether we need to adjust the views underlying our
strategic allocations.
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.
6
Pioneer Ibbotson Asset Allocation Series
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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 16 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 portfolio's management as of the date of this
report. These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
7
Pioneer Ibbotson Conservative Allocation Fund
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COMPARING ONGOING FUND EXPENSES 7/31/07
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As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Conservative Allocation
Fund
Based on actual returns from February 1, 2007 through July 31, 2007.
Share Class A B C Y
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Beginning Account Value
On 2/1/07 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value (after
expenses) On 7/31/07 $1,024.53 $1,020.29 $1,020.22 $1,026.39
Expenses Paid During Period* $ 6.93 $ 11.42 $ 11.42 $ 7.44
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.38%, 2.28%,
2.28% and 1.48%, 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.
8
Pioneer Ibbotson Conservative Allocation Fund
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Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Conservative Allocation
Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from February 1, 2007 through July 31, 2007.
Share Class A B C Y
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Beginning Account Value
On 2/1/07 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value (after
expenses) On 7/31/07 $1,017.95 $1,013.49 $1,013.49 $1,017.46
Expenses Paid During
Period* $ 6.90 $ 11.38 $ 11.38 $ 7.40
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.38%, 2.28%,
2.28% and 1.48%, 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.
9
Pioneer Ibbotson Moderate Allocation Fund
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COMPARING ONGOING FUND EXPENSES 7/31/07
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As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Moderate Allocation
Fund
Based on actual returns from February 1, 2007 through July 31, 2007.
Share Class A B C Y
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Beginning Account Value
On 2/1/07 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value (after
expenses) On 7/31/07 $1,025.41 $1,021.30 $1,022.40 $1,027.00
Expenses Paid During Period* $ 6.88 $ 11.08 $ 10.53 $ 5.08
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.37%, 2.21%,
2.10% and 1.01%, 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.
10
Pioneer Ibbotson Moderate Allocation Fund
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Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Moderate Allocation
Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from February 1, 2007 through July 31, 2007.
Share Class A B C Y
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Beginning Account Value
On 2/1/07 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value (after
expenses) On 7/31/07 $1,018.00 $1,013.84 $1,014.38 $1,019.79
Expenses Paid During
Period* $ 6.85 $ 11.03 $ 10.49 $ 5.06
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.37%, 2.21%,
2.10% and 1.01%, 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.
11
Pioneer Ibbotson Growth Allocation Fund
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COMPARING ONGOING FUND EXPENSES 7/31/07
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As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Growth Allocation Fund
Based on actual returns from February 1, 2007 through July 31, 2007.
Share Class A B C Y
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Beginning Account Value
On 2/1/07 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value (after
expenses) On 7/31/07 $1,029.89 $1,025.35 $1,025.42 $1,029.58
Expenses Paid During Period* $ 7.45 $ 11.75 $ 11.05 $ 5.69
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.48%, 2.34%,
2.20% and 1.13%, 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 Growth Allocation Fund
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Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Growth Allocation Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from February 1, 2007 through July 31, 2007.
Share Class A B C Y
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Beginning Account Value
On 2/1/07 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value (after
expenses) On 7/31/07 $1,017.46 $1,013.19 $1,013.88 $1,019.19
Expenses Paid During
Period* $ 7.40 $ 11.68 $ 10.99 $ 5.66
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.48%, 2.34%,
2.20% and 1.13%, 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.
13
Pioneer Ibbotson Aggressive Allocation Fund
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COMPARING ONGOING FUND EXPENSES 7/31/07
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Aggressive Allocation
Fund
Based on actual returns from February 1, 2007 through July 31, 2007.
Share Class A B C Y
- ---------------------------------------------------------------------------
Beginning Account Value
On 2/1/07 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value (after
expenses) On 7/31/07 $1,030.54 $1,026.49 $1,026.91 $1,033.36
Expenses Paid During Period* $ 8.21 $ 12.36 $ 11.76 $ 6.10
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.63%, 2.46%,
2.34% and 1.21%, 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.
14
Pioneer Ibbotson Aggressive Allocation Fund
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Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Ibbotson Aggressive Allocation
Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from February 1, 2007 through July 31, 2007.
Share Class A B C Y
- ---------------------------------------------------------------------------
Beginning Account Value
On 2/1/07 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value (after
expenses) On 7/31/07 $1,016.71 $1,012.60 $1,013.19 $1,018.79
Expenses Paid During
Period* $ 8.15 $ 12.28 $ 11.68 $ 6.06
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. The combined totals were 1.63%, 2.46%,
2.34% and 1.21%, 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.
15
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PORTFOLIO REVIEWS 7/31/07
- --------------------------------------------------------------------------------
Conservative Allocation
The Fund's total return for the annual period ended July 31, 2007 was 8.99% for
Class A shares, at net asset value.
The Fund targeted an asset allocation of 30% equities and 70% fixed-income
during the period. Within the equity portion of the Fund, Pioneer Research Fund
was the largest holding at 7.55% of assets on July 31, 2007. Pioneer
International Equity Fund was the next largest equity holding at 6.53% of
assets. Large-capitalization holdings were weighted slightly above target at the
end of the period, reflecting management's view that these stocks were more
attractive than their smaller-cap counterparts. Within the fixed-income portion
of the Fund, the largest holding at the end of the period was in a shorter
duration bond fund, Pioneer Short Term Income Fund, at 28.38%, followed by
Pioneer Bond Fund at 18.75% of assets. (Duration is a measure of a bond price
sensitivity to changes in interest rates.)
Moderate Allocation
The Fund's total return for the annual period ended July 31, 2007 was 12.58% for
Class A shares, at net asset value.
The Fund targeted an asset allocation of 60% equities, 40% fixed-income during
the period. Within the equity portion of the Fund, Pioneer International Equity
Fund was the largest holding at 10.24% of assets on July 31, 2007. Pioneer
Research Fund was the next largest equity holding at 10.18% of assets.
Large-capitalization holdings were weighted slightly above target at the end of
the period, reflecting management's view that these stocks were more attractive
than their smaller-cap counterparts. Within the fixed-income portion of the
Fund, the largest holding at the end of the period was in a shorter duration
bond fund, Pioneer Short Term Income Fund, at 18.73%, followed by Pioneer Bond
Fund at 9.32% of assets.
Growth Allocation
The Fund's total return for the annual period ended July 31, 2007 was 14.73% for
Class A shares, at net asset value.
The Fund targeted an asset allocation of 75% equities, 25% fixed-income during
the period. Within the equity portion of the portfolio, Pioneer International
Equity Fund was the largest holding at 12.22% of assets on July 31, 2007. The
largest domestic equity allocation was to Pioneer Research Fund, 11.70%,
followed by Pioneer Oak Ridge
16
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Large Cap Growth Fund, 9.16% of assets. Large-capitalization holdings were
weighted slightly above target at the end of the period, reflecting management's
view that these stocks were more attractive than their smaller-cap counterparts.
Within the fixed-income portion of the Fund, the largest holding at the end of
the period was in a shorter-term bond fund, Pioneer Short Term Income Fund, at
11.41% of assets, while an intermediate-duration bond fund, Pioneer Bond Fund
represented 7.99% of assets.
Aggressive Allocation
The Fund's total return for the annual period ended July 31, 2007 was 16.41% for
Class A shares, at net asset value.
The Fund targeted an asset allocation of 90% equities, 10% fixed-income during
the period. Within the equity portion of the portfolio, Pioneer International
Equity Fund was the largest holding at 15.17% of assets on July 31, 2007. On the
domestic side, Pioneer Research Fund, 13.03% of assets and Pioneer Oak Ridge
Large Cap Growth Fund at 10.28% of assets were the largest holdings.
Large-capitalization holdings were weighted slightly above target at the end of
the period, reflecting management's view that these stocks were more attractive
than their smaller-cap counterparts. The fixed-income portion of the Fund was
invested in an intermediate-term bond fund, Pioneer Bond Fund, at 6.08% of
assets, while Pioneer Short Term Income Fund represented 2.47% of assets.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Any information in this shareholder report regarding market or economic trends
or the factors influencing each portfolios' historical or future performance are
statements of the opinion of the portfolios' management as of the date of this
report. These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
17
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Class 7/31/07 7/31/06
----- ------- -------
A $11.28 $10.56
B $11.10 $10.44
C $11.09 $10.44
Y $11.30 $10.57
Moderate Allocation Fund
Class 7/31/07 7/31/06
----- ------- -------
A $12.50 $11.39
B $11.97 $10.92
C $11.88 $10.85
Y $12.55 $11.43
Growth Allocation Fund
Class 7/31/07 7/31/06
----- ------- -------
A $13.47 $12.04
B $12.17 $10.93
C $12.90 $11.58
Y $13.55 $12.13
Aggressive Allocation Fund
Class 7/31/07 7/31/06
----- ------- -------
A $14.20 $12.39
B $13.55 $11.84
C $13.73 $12.00
Y $14.26 $12.41
18
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS (continued)
- --------------------------------------------------------------------------------
Distributions Per Share
- --------------------------------------------------------------------------------
Conservative Allocation Fund
8/1/06 - 7/31/07
----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- ------ ------------- -------------
A $0.1923 $ - $0.0191
B $0.1601 $ - $0.0191
C $0.1613 $ - $0.0191
Y $0.1858 $ - $0.0191
Moderate Allocation Fund
8/1/06 - 7/31/07
----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- ------ ------------- -------------
A $0.2777 $0.0038 $0.0297
B $0.1865 $0.0038 $0.0297
C $0.2111 $0.0038 $0.0297
Y $0.3159 $0.0038 $0.0297
Growth Allocation Fund
8/1/06 - 7/31/07
----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- ------ ------------- -------------
A $0.2283 $ - $0.1000
B $0.1442 $ - $0.1000
C $0.1623 $ - $0.1000
Y $0.2678 $ - $0.1000
Aggressive Allocation Fund
8/1/06 - 7/31/07
----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- ------ ------------- -------------
A $0.1561 $ - $0.0567
B $0.0629 $ - $0.0567
C $0.0826 $ - $0.0567
Y $0.2025 $ - $0.0567
19
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 7/31/07
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[The following data was represented as a pie chart in the printed material]
Fixed Income 70%
Equity 30%
Short Term Bond 27.00%
---------------------------------------------
Domestic Corporate Bonds 17.00
---------------------------------------------
Cash & Cash Equivalents 13.00
---------------------------------------------
High-Yield Corporate Bonds 13.00
---------------------------------------------
Large-Cap Growth 9.00
---------------------------------------------
Large-Cap Value 9.00
---------------------------------------------
International Equities 8.00
---------------------------------------------
Mid/Small Cap Value 2.00
---------------------------------------------
Mid/Small Cap Growth 2.00
---------------------------------------------
Real Estate Investment Trusts (REITs) 0.00
---------------------------------------------
Emerging Market 0.00
---------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ----------------------------------------- ------------------------------------
Pioneer Research 7.55% Pioneer International Equity 6.53%
- ----------------------------------------- ------------------------------------
Pioneer Fund 5.42 Pioneer Europe Select Equity 2.15
- ----------------------------------------- ------------------------------------
Pioneer Oak Ridge Large Cap Growth 3.36 Bonds
- ----------------------------------------- ------------------------------------
Pioneer Cullen Value 3.28 Pioneer Short Term Income 28.38
- ----------------------------------------- ------------------------------------
Pioneer Independence 2.19 Pioneer Bond 18.75
- ----------------------------------------- ------------------------------------
Pioneer Mid Cap Growth 1.08 Pioneer High Yield 7.81
- ----------------------------------------- ------------------------------------
Pioneer Value 1.07 Pioneer Strategic Income 5.70
- ----------------------------------------- ------------------------------------
Pioneer Small Cap Value 1.05 Pioneer Global High Yield 3.33
- ----------------------------------------- ------------------------------------
Pioneer Government Income 2.35
------------------------------------
This list excludes temporary cash and derivative instruments. The portfolio is
actively managed, and current holdings may be different. The holdings listed
should not be considered recommendations to buy or sell any security listed.
20
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund at public
offering price, compared to that of the Standard & Poor's 500 Stock Index and
Lehman Brothers Aggregate Bond Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
Public
Net Asset Offering
Period Value (NAV) Price (POP)
Life-of-Class
(5/12/05) 6.83% 4.01%
1 Year 8.89 2.76
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
2.83% 1.49%
- ---------------------------------------------
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Conservative & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
5/05 9,425 10,000 10,000
7/05 9,599 10,386 9,963
7/06 9,910 10,945 10,108
7/07 10,800 12,710 10,672
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 12/1/09 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
21
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(5/12/05) 5.93% 4.66%
1 Year 8.09 4.09
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
3.79% 2.39%
- ---------------------------------------------
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Conservative & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
5/05 10,000 10,000 10,000
7/05 10,178 10,386 9,963
7/06 10,409 10,945 10,108
7/07 10,950 12,710 10,672
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class B Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
22
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(5/12/05) 5.89% 5.89%
1 Year 8.00 8.00
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
3.51% 2.39%
- ---------------------------------------------
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Conservative & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
5/05 10,000 10,000 10,000
7/05 10,168 10,386 9,963
7/06 10,419 10,945 10,108
7/07 11,253 12,710 10,672
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class C Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
23
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Conservative Allocation Fund, compared to
that of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(5/12/05)* 6.88% 6.88%
1 Year 8.91 8.91
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
2.90% 2.90%
- ---------------------------------------------
* Inception date of Class A Shares.
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Conservative & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
5/05 10,000 10,000 10,000
7/05 10,188 10,386 9,963
7/06 10,538 10,945 10,108
7/07 11,477 12,710 10,672
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance for periods prior to the inception of the Fund's Class Y shares on
10/5/05 reflects the NAV performance of the Fund's Class A shares. The
performance does not reflect differences in expenses, including the Rule 12b-1
fees applicable to Class A shares. Since fees for Class A shares are generally
higher than those of Class Y shares, the performance shown for Class Y shares
prior to their inception would have been higher. Class Y shares are not subject
to sales charges and are available for limited groups of eligible investors,
including institutional investors.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
24
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 7/31/07
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[The following data was represented as a pie chart in the printed material]
Equity 60%
Fixed Income 40%
Short Term Bond 17.00%
---------------------------------------------
Large-Cap Growth 15.50
---------------------------------------------
Large-Cap Value 15.50
---------------------------------------------
International Equities 12.00
---------------------------------------------
Domestic Corporate Bonds 9.00
---------------------------------------------
High-Yield Corporate Bonds 8.00
---------------------------------------------
Mid/Small Cap Value 6.00
---------------------------------------------
Cash & Cash Equivalents 6.00
---------------------------------------------
Mid/Small Cap Growth 6.00
---------------------------------------------
Real Estate Investment Trusts (REITs) 3.00
---------------------------------------------
Emerging Market 2.00
---------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------ ------------------------------------
Pioneer Research 10.18% Pioneer International Equity 10.24%
- ------------------------------------------ ------------------------------------
Pioneer Fund 9.14 Pioneer Europe Select Equity 2.95
- ------------------------------------------ ------------------------------------
Pioneer Oak Ridge Large Cap Growth 7.54 Pioneer Emerging Markets 2.27
- ------------------------------------------ ------------------------------------
Pioneer Cullen Value 4.07 Bonds
- ------------------------------------------ ------------------------------------
Pioneer Value 3.04 Pioneer Short Term Income 18.73
- ------------------------------------------ ------------------------------------
Pioneer Independence 2.96 Pioneer Bond 9.32
- ------------------------------------------ ------------------------------------
Pioneer Real Estate 2.64 Pioneer High Yield 4.22
- ------------------------------------------ ------------------------------------
Pioneer Mid Cap Growth 2.06 Pioneer Global High Yield 1.97
- ------------------------------------------ ------------------------------------
Pioneer Growth Opportunities 1.99 Pioneer Government Income 1.52
- ------------------------------------------ ------------------------------------
Pioneer Mid Cap Value 1.96 Pioneer Strategic Income 1.26
- ------------------------------------------ ------------------------------------
Pioneer Small Cap Value 1.94
- ------------------------------------------
This list excludes temporary cash and derivative instruments. The portfolio is
actively managed, and current holdings may be different. The holdings listed
should not be considered recommendations to buy or sell any security listed.
25
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund at public offering
price, compared to that of the Standard & Poor's 500 Stock Index and Lehman
Brothers Aggregate Bond Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
Public
Net Asset Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 10.66% 8.48%
1 Year 12.58 6.15
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
1.42% 1.42%
- ---------------------------------------------
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Moderate & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
8/04 9,425 10,000 10,000
7/05 10,570 11,358 10,282
7/06 11,097 11,969 10,433
7/07 12,493 13,900 11,015
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 12/1/09 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
26
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 8.62% 7.76%
1 Year 11.70 7.70
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
2.30% 2.30%
- ---------------------------------------------
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Moderate & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
8/04 10,000 10,000 10,000
7/05 10,978 11,358 10,282
7/06 11,417 11,969 10,433
7/07 12,453 13,900 11,015
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class B Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
27
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 8.43% 8.43%
1 Year 11.83 11.83
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
2.21% 2.21%
- ---------------------------------------------
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Moderate & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
8/04 10,000 10,000 10,000
7/05 11,122 11,358 10,282
7/06 11,573 11,969 10,433
7/07 12,941 13,900 11,015
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class C Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
28
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Moderate Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
- ---------------------------------------------
If If
Period Held Redeemed
Life-of-Class
(8/9/04)* 10.96% 10.96%
1 Year 12.98 12.98
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
1.07% 1.07%
- ---------------------------------------------
* Inception date of Class A Shares.
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Moderate & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
8/04 10,000 10,000 10,000
7/05 11,213 11,358 10,282
7/06 11,826 11,969 10,433
7/07 13,361 13,900 11,015
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance for periods prior to the inception of the Fund's Class Y shares on
9/23/05 reflects the NAV performance of the Fund's Class A shares. The
performance does not reflect differences in expenses, including the Rule 12b-1
fees applicable to Class A shares. Since fees for Class A shares are generally
higher than those of Class Y shares, the performance shown for Class Y shares
prior to their inception would have been higher. Class Y shares are not subject
to sales charges and are available for limited groups of eligible investors,
including institutional investors.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
29
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 7/31/07
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[The following data was represented as a pie chart in the printed material]
Equity 75%
Fixed Income 25%
Large-Cap Value 17.50%
---------------------------------------------
Large-Cap Growth 16.50
---------------------------------------------
International Equities 16.00
---------------------------------------------
Short Term Bond 12.50
---------------------------------------------
Mid/Small Cap Growth 8.50
---------------------------------------------
Mid/Small Cap Value 8.50
---------------------------------------------
Domestic Corporate Bonds 7.50
---------------------------------------------
High-Yield Corporate Bonds 5.00
---------------------------------------------
Emerging Market 4.00
---------------------------------------------
Real Estate Investment Trusts (REITs) 4.00
---------------------------------------------
Cash & Cash Equivalents 0.00
---------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------ ------------------------------------
Pioneer Research 11.70% Pioneer International Equity 12.22%
- ------------------------------------------ ------------------------------------
Pioneer Oak Ridge Large Cap Growth 9.16 Pioneer Emerging Markets 4.51
- ------------------------------------------ ------------------------------------
Pioneer Fund 9.03 Pioneer Europe Select Equity 3.71
- ------------------------------------------ ------------------------------------
Pioneer Cullen Value 4.09 Bonds
- ------------------------------------------ ------------------------------------
Pioneer Mid Cap Value 3.68 Pioneer Short Term Income 11.41
- ------------------------------------------ ------------------------------------
Pioneer Real Estate 3.42 Pioneer Bond 7.99
- ------------------------------------------ ------------------------------------
Pioneer Mid Cap Growth 3.22 Pioneer High Yield 2.13
- ------------------------------------------ ------------------------------------
Pioneer Value 3.14 Pioneer Global High Yield 0.94
- ------------------------------------------ ------------------------------------
Pioneer Independence 2.90 Pioneer Strategic Income 0.67
- ------------------------------------------ ------------------------------------
Pioneer Growth Opportunities 2.86 Pioneer Government Income 0.54
- ------------------------------------------ ------------------------------------
Pioneer Small Cap Value 2.68
- ------------------------------------------
This list excludes temporary cash and derivative instruments. The portfolio is
actively managed, and current holdings may be different. The holdings listed
should not be considered recommendations to buy or sell any security listed.
30
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund at public offering
price, compared to that of the Standard & Poor's 500 Stock Index and Lehman
Brothers Aggregate Bond Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
Public
Net Asset Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 13.00% 10.77%
1 Year 14.73 8.17
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
1.57% 1.57%
- ---------------------------------------------
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Growth & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
8/04 9,425 10,000 10,000
7/05 10,892 11,358 10,282
7/06 11,577 11,969 10,433
7/07 13,281 13,900 11,015
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 12/1/09 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
31
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund, compared to that of
the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
- ---------------------------------------------
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 8.95% 8.09%
1 Year 13.67 9.67
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
2.45% 2.40%
- ---------------------------------------------
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Growth & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
8/04 10,000 10,000 10,000
7/05 11,046 11,358 10,282
7/06 11,657 11,969 10,433
7/07 12,950 13,900 11,015
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class B Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
32
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund, compared to that of
the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
- ---------------------------------------------
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 11.00% 11.00%
1 Year 13.75 13.75
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
2.29% 2.29%
- ---------------------------------------------
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Growth & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
8/04 10,000 10,000 10,000
7/05 11,310 11,358 10,282
7/06 11,933 11,969 10,433
7/07 13,575 13,900 11,015
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class C Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
33
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Growth Allocation Fund, compared to that of
the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
- ---------------------------------------------
If If
Period Held Redeemed
Life-of-Class
(8/9/04)* 13.37% 13.37%
1 Year 14.87 14.87
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
1.15% 1.15%
- ---------------------------------------------
* Inception date of Class A Shares.
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Growth & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
8/04 10,000 10,000 10,000
7/05 11,553 11,358 10,282
7/06 12,387 11,969 10,433
7/07 14,229 13,900 11,015
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance for periods prior to the inception of the Fund's Class Y shares on
9/26/05 reflects the NAV performance of the Fund's Class A shares. The
performance does not reflect differences in expenses, including the Rule 12b-1
fees applicable to Class A shares. Since fees for Class A shares are generally
higher than those of Class Y shares, the performance shown for Class Y shares
prior to their inception would have been higher. Class Y shares are not subject
to sales charges and are available for limited groups of eligible investors,
including institutional investors.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
34
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 7/31/07
- --------------------------------------------------------------------------------
Target Asset Allocations
- --------------------------------------------------------------------------------
[The following data was represented as a pie chart in the printed material]
Equity 90%
Fixed Income 10%
International Equities 21.00%
---------------------------------------------
Large-Cap Growth 19.00
---------------------------------------------
Large-Cap Value 19.00
---------------------------------------------
Mid/Small Cap Growth 10.50
---------------------------------------------
Mid/Small Cap Value 10.50
---------------------------------------------
Domestic Corporate Bonds 7.00
---------------------------------------------
Emerging Market 5.00
---------------------------------------------
Real Estate Investment Trusts (REITs) 5.00
---------------------------------------------
Short Term Bond 3.00
---------------------------------------------
High-Yield Corporate Bonds 0.00
---------------------------------------------
Cash & Cash Equivalents 0.00
---------------------------------------------
Actual Portfolio Holdings
(based on total portfolio)
- --------------------------------------------------------------------------------
U.S. Stocks International Stocks
- ------------------------------------------ ------------------------------------
Pioneer Research 13.03% Pioneer International Equity 15.17%
- ------------------------------------------ ------------------------------------
Pioneer Oak Ridge Large Cap Growth 10.28 Pioneer Europe Select Equity 5.66
- ------------------------------------------ ------------------------------------
Pioneer Fund 10.08 Pioneer Emerging Markets 5.64
- ------------------------------------------ ------------------------------------
Pioneer Cullen Value 5.01 Bonds
- ------------------------------------------ ------------------------------------
Pioneer Mid Cap Value 4.60 Pioneer Bond 6.08
- ------------------------------------------ ------------------------------------
Pioneer Real Estate 4.40 Pioneer Short Term Income 2.47
- ------------------------------------------ ------------------------------------
Pioneer Value 3.92
- ------------------------------------------
Pioneer Small Cap Value 3.63
- ------------------------------------------
Pioneer Growth Opportunities 3.57
- ------------------------------------------
Pioneer Mid Cap Growth 3.33
- ------------------------------------------
Pioneer Independence 3.13
- ------------------------------------------
This list excludes temporary cash and derivative instruments. The portfolio is
actively managed, and current holdings may be different. The holdings listed
should not be considered recommendations to buy or sell any security listed.
35
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund at public
offering price, compared to that of the Standard & Poor's 500 Stock Index and
Lehman Brothers Aggregate Bond Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
- ---------------------------------------------
Public
Net Asset Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/9/04) 15.07% 12.80%
1 Year 16.41 9.68
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
1.72% 1.72%
- ---------------------------------------------
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Aggressive & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
8/04 9,425 10,000 10,000
7/05 11,173 11,358 10,282
7/06 11,989 11,969 10,433
7/07 13,956 13,900 11,015
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 12/1/09 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
36
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
- ---------------------------------------------
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 12.97% 12.18%
1 Year 15.49 11.49
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
2.59% 2.54%
- ---------------------------------------------
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Aggressive & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
8/04 10,000 10,000 10,000
7/05 11,690 11,358 10,282
7/06 12,434 11,969 10,433
7/07 14,061 13,900 11,015
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class B Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
37
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
- ---------------------------------------------
If If
Period Held Redeemed
Life-of-Class
(8/9/04) 13.50% 13.50%
1 Year 15.63 15.63
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
2.46% 2.46%
- ---------------------------------------------
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Aggressive & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
8/04 10,000 10,000 10,000
7/05 11,563 11,358 10,282
7/06 12,299 11,969 10,433
7/07 14,221 13,900 11,015
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 12/1/08 for Class C Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
38
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 7/31/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Ibbotson Aggressive Allocation Fund, compared to that
of the Standard & Poor's 500 Stock Index and Lehman Brothers Aggregate Bond
Index.
- ---------------------------------------------
Average Annual Total Returns
(As of July 31, 2007)
- ---------------------------------------------
If If
Period Held Redeemed
Life-of-Class
(8/9/04)* 15.40% 15.40%
1 Year 17.10 17.10
- ---------------------------------------------
Expense Ratio
(Per prospectus dated 12/1/06)
Gross Net
1.27% 1.27%
- ---------------------------------------------
* Inception date of Class A Shares.
[The following data was represented as a line graph in the printed material]
Value of $10,000 Investment
Pioneer
Ibbotson Standard Lehman
Aggressive & Poor's Brothers
Allocation 500 Stock Aggregate
Fund Index Bond Index
8/04 10,000 10,000 10,000
7/05 11,860 11,358 10,282
7/06 12,759 11,969 10,433
7/07 14,941 13,900 11,015
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance for periods prior to the inception of the Fund's Class Y shares on
9/23/05 reflects the NAV performance of the Fund's Class A shares. The
performance does not reflect differences in expenses, including the Rule 12b-1
fees applicable to Class A shares. Since fees for Class A shares are generally
higher than those of Class Y shares, the performance shown for Class Y shares
prior to their inception would have been higher. Class Y shares are not subject
to sales charges and are available for limited groups of eligible investors,
including institutional investors.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure
of the broad U.S. stock market. The Lehman Brothers Aggregate Bond Index is a
measure of the U.S. bond market. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
39
Pioneer Ibbotson Conservative Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 7/31/07
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 88.7%
PIONEER FUNDS - 88.7%
706,995 Pioneer Bond Fund Class Y $ 6,299,325
53,239 Pioneer Cullen Value Fund Class Y 1,102,585
16,101 Pioneer Europe Select Equity Fund Class Y 720,999
36,324 Pioneer Fund Class Y 1,820,175
93,187 Pioneer Global High Yield Fund Class Y 1,119,179
85,467 Pioneer Government Income Fund Class Y 790,568
235,352 Pioneer High Yield Fund Class Y 2,624,172
51,679 Pioneer Independence Fund Class Y 734,877
77,791 Pioneer International Equity Fund Class Y 2,193,715
21,710 Pioneer Mid-Cap Growth Fund Class Y 364,077
77,775 Pioneer Oak Ridge Large Cap Growth Fund Class Y 1,128,510
211,351 Pioneer Research Fund Class Y 2,538,324
976,175 Pioneer Short Term Income Fund Class Y 9,537,234
11,014 Pioneer Small Cap Value Fund Class Y 352,678
185,502 Pioneer Strategic Income Fund Class Y 1,914,379
20,605 Pioneer Value Fund Class Y 360,995
-----------
TOTAL INVESTMENTS IN SECURITIES - 88.7%
(Cost $32,672,694) (a) $33,601,792
OTHER ASSETS AND LIABILITIES - 11.3% 4,276,224
-----------
TOTAL NET ASSETS - 100.0% $37,878,016
===========
(a) At July 31, 2007, the net unrealized gain on investments based on cost for
federal tax purposes of $32,722,533 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $1,047,882
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (168,623)
----------
Net unrealized gain $ 879,259
==========
Purchases and sales of securities (excluding temporary cash investments) for the
year ended July 31, 2007 aggregated $21,727,283 and $4,013,102, respectively.
40 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Moderate Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 7/31/07
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 98.6%
PIONEER FUNDS - 98.6%
3,065,010 Pioneer Bond Fund Class Y $ 27,309,242
575,345 Pioneer Cullen Value Fund Class Y 11,915,404
163,862 Pioneer Emerging Markets Fund Class Y 6,662,649
193,160 Pioneer Europe Select Equity Fund Class Y 8,649,697
534,365 Pioneer Fund Class Y 26,777,044
481,351 Pioneer Global High Yield Fund Class Y 5,781,028
481,912 Pioneer Government Income Fund Class Y 4,457,690
196,884 Pioneer Growth Opportunities Fund Class Y 5,831,717
1,107,970 Pioneer High Yield Fund Class Y 12,353,864
609,033 Pioneer Independence Fund Class Y 8,660,454
1,064,389 Pioneer International Equity Fund Class Y 30,015,757
360,497 Pioneer Mid-Cap Growth Fund Class Y 6,045,527
223,490 Pioneer Mid-Cap Value Fund Class Y 5,741,471
1,523,021 Pioneer Oak Ridge Large Cap Growth Fund Class Y 22,099,038
277,426 Pioneer Real Estate Shares Fund Class Y 7,731,858
2,485,323 Pioneer Research Fund Class Y 29,848,729
5,619,320 Pioneer Short Term Income Fund Class Y 54,900,755
177,673 Pioneer Small Cap Value Fund Class Y 5,689,104
358,363 Pioneer Strategic Income Fund Class Y 3,698,309
507,768 Pioneer Value Fund Class Y 8,896,090
------------
TOTAL INVESTMENTS IN SECURITIES - 98.6%
(Cost $263,624,784) (a) $293,065,427
OTHER ASSETS AND LIABILITIES - 1.4% 4,272,046
------------
TOTAL NET ASSETS - 100.0% $297,337,473
============
(a) At July 31, 2007, the net unrealized gain on investments based on cost for
federal tax purposes of $265,294,879 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $29,619,833
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (1,849,285)
-----------
Net unrealized gain $27,770,548
===========
Purchases and sales of securities (excluding temporary cash investments) for the
year ended July 31, 2007 aggregated $75,211,098 and $53,163,861, respectively.
The accompanying notes are an integral part of these financial statements. 41
Pioneer Ibbotson Growth Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 7/31/07
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 101.7%
PIONEER FUNDS - 101.7%
2,640,397 Pioneer Bond Fund Class Y $ 23,525,940
580,742 Pioneer Cullen Value Fund Class Y 12,027,172
326,345 Pioneer Emerging Markets Fund Class Y 13,269,190
243,909 Pioneer Europe Select Equity Fund Class Y 10,922,244
530,317 Pioneer Fund Class Y 26,574,182
229,958 Pioneer Global High Yield Fund Class Y 2,761,800
171,736 Pioneer Government Income Fund Class Y 1,588,554
284,349 Pioneer Growth Opportunities Fund Class Y 8,422,431
563,405 Pioneer High Yield Fund Class Y 6,281,967
600,316 Pioneer Independence Fund Class Y 8,536,499
1,275,695 Pioneer International Equity Fund Class Y 35,974,597
565,603 Pioneer Mid-Cap Growth Fund Class Y 9,485,170
421,105 Pioneer Mid-Cap Value Fund Class Y 10,818,182
1,857,532 Pioneer Oak Ridge Large Cap Growth Fund Class Y 26,952,789
361,331 Pioneer Real Estate Shares Fund Class Y 10,070,297
2,868,147 Pioneer Research Fund Class Y 34,446,445
3,436,904 Pioneer Short Term Income Fund Class Y 33,578,548
246,283 Pioneer Small Cap Value Fund Class Y 7,885,980
189,543 Pioneer Strategic Income Fund Class Y 1,956,084
527,550 Pioneer Value Fund Class Y 9,242,670
------------
TOTAL INVESTMENTS IN SECURITIES - 101.7%
(Cost $262,767,673) (a) $294,320,741
OTHER ASSETS AND LIABILITIES - (1.7%) (4,955,467)
------------
TOTAL NET ASSETS - 100.0% $289,365,274
============
(a) At July 31, 2007, the net unrealized gain on investments based on cost for
federal tax purposes of $263,443,143 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $32,059,607
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (1,182,009)
-----------
Net unrealized gain $30,877,598
===========
Purchases and sales of securities (excluding temporary cash investments) for the
year ended July 31, 2007 aggregated $88,370,621 and $29,376,260, respectively.
42 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Aggressive Allocation Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 7/31/07
- --------------------------------------------------------------------------------
Shares Value
MUTUAL FUNDS - 100.4%
PIONEER FUNDS - 100.4%
1,223,598 Pioneer Bond Fund Class Y $ 10,902,256
433,753 Pioneer Cullen Value Fund Class Y 8,983,025
248,847 Pioneer Emerging Markets Fund Class Y 10,118,111
226,569 Pioneer Europe Select Equity Fund Class Y 10,145,742
360,689 Pioneer Fund Class Y 18,074,102
216,310 Pioneer Growth Opportunities Fund Class Y 6,407,108
395,029 Pioneer Independence Fund Class Y 5,617,313
964,581 Pioneer International Equity Fund Class Y 27,201,182
356,603 Pioneer Mid-Cap Growth Fund Class Y 5,980,224
320,725 Pioneer Mid-Cap Value Fund Class Y 8,239,419
1,270,176 Pioneer Oak Ridge Large Cap Growth Fund Class Y 18,430,257
282,985 Pioneer Real Estate Shares Fund Class Y 7,886,780
1,945,472 Pioneer Research Fund Class Y 23,365,116
452,525 Pioneer Short Term Income Fund Class Y 4,421,172
203,070 Pioneer Small Cap Value Fund Class Y 6,502,292
400,901 Pioneer Value Fund Class Y 7,023,786
------------
TOTAL INVESTMENTS IN SECURITIES - 100.4%
(Cost $154,692,772) (a) $179,297,885
OTHER ASSETS AND LIABILITIES - (0.4%) (740,628)
------------
TOTAL NET ASSETS - 100.0% $178,557,257
============
(a) At July 31, 2007, the net unrealized gain on investments based on cost for
federal tax purposes of $155,643,384 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $24,074,420
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (419,919)
-----------
Net unrealized gain $23,654,501
===========
Purchases and sales of securities (excluding temporary cash investments) for the
year ended July 31, 2007 aggregated $56,690,622 and $29,218,755, respectively.
The accompanying notes are an integral part of these financial statements. 43
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 7/31/07
- --------------------------------------------------------------------------------
Conservative Moderate Growth Aggressive
Allocation Allocation Allocation Allocation
Fund Fund Fund Fund
ASSETS:
Investments in securities of affiliated
issuers, at value (at cost
$32,672,694, $263,624,784,
$262,767,673 and
$154,692,772, respectively) $33,601,792 $293,065,427 $294,320,741 $179,297,885
Cash 4,091,053 4,660,624 - -
Receivables for:
Investment Funds sold 4,811 683,991 101,450 187,287
Capital stock sold 255,825 308,149 595,197 215,839
Due from Pioneer Investment
Management, Inc. 11,890 - 12,031 8,978
Other assets 30,909 33,263 52,554 39,588
----------- ------------ ------------ ------------
Total assets $37,996,280 $298,751,454 $295,081,973 $179,749,577
----------- ------------ ------------ ------------
LIABILITIES:
Payables for:
Due to Custodian $ - $ - $ 663,941 $ 533,122
Funds purchased 15,018 112,717 190,664 366,653
Capital stock redeemed 20,827 1,015,355 4,546,228 85,911
Due to affiliates 27,337 216,626 245,365 142,490
Accrued expenses and other
liabilities 55,082 69,283 70,501 64,144
----------- ------------ ------------ ------------
Total liabilities $ 118,264 $ 1,413,981 $ 5,716,699 $ 1,192,320
----------- ------------ ------------ ------------
NET ASSETS:
Paid-in capital $36,138,916 $258,946,001 $249,615,111 $149,533,567
Accumulated undistributed net
investment income 483,044 2,072,065 571,326 321,362
Accumulated net realized gain on
investments 326,958 6,878,764 7,625,769 4,097,215
Net unrealized gain on investments 929,098 29,440,643 31,553,068 24,605,113
----------- ------------ ------------ ------------
Total net assets $37,878,016 $297,337,473 $289,365,274 $178,557,257
=========== ============ ============ ============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of
shares authorized)
Net Assets of Class A shares $23,323,650 $165,090,227 $157,452,654 $114,053,748
Net Assets of Class B shares $ 4,729,198 $ 60,795,576 $ 76,094,766 $ 37,748,526
Net Assets of Class C shares $ 9,814,492 $ 47,405,435 $ 52,861,496 $ 23,583,570
Net Assets of Class Y shares $ 10,676 $ 24,046,235 $ 2,956,358 $ 3,171,413
=========== ============ ============ ============
Class A Shares outstanding 2,067,022 13,205,584 11,693,265 8,032,841
Class B Shares outstanding 425,883 5,080,381 6,253,890 2,786,111
Class C Shares outstanding 884,953 3,991,734 4,096,879 1,717,199
Class Y Shares outstanding 945 1,915,400 218,173 222,415
=========== ============ ============ ============
Net Asset Value - Class A shares $ 11.28 $ 12.50 $ 13.47 $ 14.20
Net Asset Value - Class B shares $ 11.10 $ 11.97 $ 12.17 $ 13.55
Net Asset Value - Class C shares $ 11.09 $ 11.88 $ 12.90 $ 13.73
Net Asset Value - Class Y shares $ 11.30 $ 12.55 $ 13.55 $ 14.26
=========== ============ ============ ============
MAXIMUM OFFERING PRICE:
Class A (100 [divided by] 94.25 x net asset
value per share) $ 11.97 $ 13.26 $ 14.29 $ 15.07
=========== ============ ============ ============
44 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
Conservative Moderate Growth Aggressive
Allocation Allocation Allocation Allocation
Fund Fund Fund Fund
INVESTMENT INCOME:
Dividend income from securities
of affiliated issuers $ 937,834 $ 6,568,664 $ 4,761,914 $ 2,011,799
Interest 157,667 400,075 17,758 67,434
---------- ----------- ----------- -----------
Total investment income $1,095,501 $ 6,968,739 $ 4,779,672 $ 2,079,233
---------- ----------- ----------- -----------
EXPENSES:
Management fees $ 39,012 $ 377,431 $ 342,936 $ 214,111
Transfer agent fees and expenses
Class A 23,594 213,775 271,713 249,730
Class B 9,874 137,937 228,417 127,228
Class C 9,134 49,717 67,893 37,420
Class Y 25 4,764 2,247 2,834
Distribution fees
Class A 45,261 406,920 358,831 260,722
Class B 37,929 602,056 718,393 356,430
Class C 77,304 402,475 444,793 199,411
Administrative reimbursements 14,737 76,975 71,094 53,490
Custodian fees 19,692 154,714 167,125 127,935
Registration fees 57,400 80,759 78,885 68,036
Professional fees 41,433 59,373 53,223 51,076
Printing fees 7,500 13,941 19,353 14,410
Fees and expenses of nonaffiliated
trustees 4,522 2,057 7,162 6,446
Insurance expense 357 6,440 5,016 3,200
Miscellaneous 2,059 3,082 2,672 2,090
---------- ----------- ----------- -----------
Total expenses $ 389,833 $ 2,592,416 $ 2,839,753 $ 1,774,569
Less management fees waived and
expenses reimbursed by Pioneer
Investment Management, Inc. (50,668) - (12,023) (10,500)
Less fees paid indirectly (1,376) (15,964) (25,260) (17,662)
---------- ----------- ----------- -----------
Net expenses $ 337,789 $ 2,576,452 $ 2,802,470 $ 1,746,407
---------- ----------- ----------- -----------
Net investment income $ 757,712 $ 4,392,287 $ 1,977,202 $ 332,826
---------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments $ (3,804) $ 1,469,923 $ 309,918 $ 1,148,529
Realized gain distributions from
investment company shares 449,214 8,871,123 9,796,499 7,145,723
Change in net unrealized gain (loss)
on investments 943,898 18,224,119 20,626,049 14,484,776
---------- ----------- ----------- -----------
Net gain on investments $1,389,308 $28,565,165 $30,732,466 $22,779,028
---------- ----------- ----------- -----------
Net increase in net assets resulting
from operations $2,147,020 $32,957,452 $32,709,668 $23,111,854
========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 45
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 7/31/07 and 7/31/06
Conservative Allocation Fund Moderate Allocation Fund
------------------------------ ------------------------------
Year Year Year Year
Ended Ended Ended Ended
7/31/07 7/31/06 7/31/07 7/31/06
FROM OPERATIONS:
Net investment income $ 757,712 $ 176,494 $ 4,392,287 $ 2,661,929
Net realized gain on investments 445,410 41,436 10,341,046 9,459,032
Change in net unrealized gain (loss) on
investments 943,898 (36,031) 18,224,119 (1,460,980)
------------- ------------- ------------- -------------
Net increase in net assets resulting
from operations $ 2,147,020 $ 181,899 $ 32,957,452 $ 10,659,981
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income
Class A ($0.19, $0.06, $0.28 and
$0.06, respectively) $ (352,800) $ (22,489) $ (3,595,361) $ (695,194)
Class B ($0.16, $0.06, $0.19 and
$0.03, respectively) (51,337) (9,129) (965,092) (142,133)
Class C ($0.16, $0.06, $0.21 and
$0.01, respectively) (109,847) (10,659) (710,891) (31,961)
Class Y ($0.19, $0.06, $0.32 and
$0.08, respectively) (176) (6) (686,855) (334,603)
Net realized gain on investments
Class A ($0.02, $0.01, $0.03 and
$0.24, respectively) (35,042) (3,055) (433,722) (2,636,349)
Class B ($0.02, $0.01, $0.03 and
$0.24, respectively) (6,124) (1,240) (173,354) (1,086,431)
Class C ($0.02, $0.01, $0.03 and
$0.24, respectively) (13,007) (1,448) (112,813) (524,670)
Class Y ($0.02, $0.01, $0.03 and
$0.24, respectively) (18) (1) (72,838) (1,057,414)
------------- ------------- ------------- -------------
Total distributions to shareowners $ (568,351) $ (48,027) $ (6,750,926) $ (6,508,755)
------------- ------------- ------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 27,279,565 $ 17,709,197 $ 82,429,746 $ 113,368,592
Reinvestment of distributions 470,891 35,314 6,044,029 5,879,935
Cost of shares repurchased (8,329,288) (2,777,184) (81,098,373) (73,049,619)
Shares issued in reorganization - - - 155,508,777
------------- ------------- ------------- -------------
Net increase in net assets resulting
from Fund share transactions $ 19,421,168 $ 14,967,327 $ 7,375,402 $ 201,707,685
------------- ------------- ------------- -------------
Net increase in net assets $ 20,999,837 $ 15,101,199 $ 33,581,928 $ 205,858,911
NET ASSETS:
Beginning of period 16,878,179 1,776,980 263,755,545 57,896,634
------------- ------------- ------------- -------------
End of period $ 37,878,016 $ 16,878,179 $ 297,337,473 $ 263,755,545
============= ============= ============= =============
Accumulated undistributed
net investment income,
end of period $ 483,044 $ 149,065 $ 2,072,065 $ 2,083,330
============= ============= ============= =============
46 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Growth Allocation Fund Aggressive Allocation Fund
------------------------------ ------------------------------
Year Year Year Year
Ended Ended Ended Ended
7/31/07 7/31/06 7/31/07 7/31/06
FROM OPERATIONS:
Net investment income (loss) $ 1,977,202 $ 659,773 $ 332,826 $ (134,073)
Net realized gain on investments 10,106,417 4,635,900 8,294,252 4,831,003
Change in net unrealized gain
on investments 20,626,049 3,158,797 14,484,776 1,495,849
------------- ------------- ------------- -------------
Net increase in net assets resulting
from operations $ 32,709,668 $ 8,454,470 $ 23,111,854 $ 6,192,779
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income
Class A ($0.23, $0.05, $0.16 and
$0.02, respectively) $ (2,440,569) $ (345,018) $ (1,175,654) $ (73,792)
Class B ($0.14, $0.02, $0.06 and
$0.00, respectively) (862,255) (82,794) (170,484) -
Class C ($0.16, $0.00, $0.08 and
$0.00, respectively) (542,866) - (119,362) -
Class Y ($0.27, $0.06, $0.20 and
$0.03, respectively) (55,783) (39,851) (79,270) (25,479)
Net realized gain on investments
Class A ($0.10, $0.13, $0.06 and
$0.27, respectively) (1,069,019) (902,786) (427,031) (1,223,951)
Class B ($0.10, $0.13, $0.06 and
$0.27, respectively) (597,958) (577,319) (153,679) (567,882)
Class C ($0.10, $0.13, $0.06 and
$0.27, respectively) (334,483) (261,229) (81,935) (231,664)
Class Y ($0.10, $0.13, $0.06 and
$0.27, respectively) (20,830) (80,074) (22,196) (243,638)
------------- ------------- ------------- -------------
Total distributions to shareowners $ (5,923,763) $ (2,289,071) $ (2,229,611) $ (2,366,406)
------------- ------------- ------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 101,083,097 $ 118,122,801 $ 59,146,717 $ 75,239,813
Reinvestment of distributions 5,541,108 2,099,209 2,097,785 2,169,818
Cost of shares repurchased (57,961,702) (36,958,781) (38,857,236) (30,943,807)
Shares issued in reorganization - 68,183,852 - 51,316,549
------------- ------------- ------------- -------------
Net increase in net assets resulting
from Fund share transactions $ 48,662,503 $ 151,447,081 $ 22,387,266 $ 97,782,373
------------- ------------- ------------- -------------
Net increase in net assets $ 75,448,408 $ 157,612,480 $ 43,269,509 $ 101,608,746
NET ASSETS:
Beginning of period 213,916,866 56,304,386 135,287,748 33,679,002
------------- ------------- ------------- -------------
End of period $ 289,365,274 $ 213,916,866 $ 178,557,257 $ 135,287,748
============= ============= ============= =============
Accumulated undistributed
net investment income,
end of period $ 571,326 $ 672,433 $ 321,362 $ 75,741
============= ============= ============= =============
The accompanying notes are an integral part of these financial statements. 47
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
For the Years Ended 7/31/07 and 7/31/06
Conservative Allocation Fund
----------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
CLASS A
Shares sold 1,675,353 $18,500,177 898,359 $9,400,261
Reinvestment of distributions 33,733 368,359 2,031 21,079
Less shares repurchased (479,247) (5,344,105) (148,457) (1,557,446)
--------- ----------- -------- ----------
Net increase 1,229,839 $13,524,431 751,933 $7,863,894
========= =========== ======== ==========
CLASS B
Shares sold 236,187 $ 2,583,516 286,529 $2,974,458
Reinvestment of distributions 4,693 50,688 835 8,620
Less shares repurchased (85,992) (940,137) (37,816) (393,152)
--------- ----------- -------- ----------
Net increase 154,888 $ 1,694,067 249,548 $2,589,926
========= =========== ======== ==========
CLASS C
Shares sold 568,924 $ 6,195,872 510,972 $5,324,478
Reinvestment of distributions 4,805 51,844 544 5,615
Less shares repurchased (187,162) (2,045,046) (79,377) (826,586)
--------- ----------- -------- ----------
Net increase 386,567 $ 4,202,670 432,139 $4,503,507
========= =========== ======== ==========
CLASS Y
Shares sold - $ - 945 $ 10,000
Reinvestment of distributions - - - -
Less shares repurchased - - - -
--------- ----------- -------- ----------
Net increase - $ - 945 $ 10,000
========= =========== ======== ==========
Moderate Allocation Fund
-----------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
CLASS A
Shares sold 4,074,111 $49,725,116 6,405,638 $ 72,857,111
Reinvestment of distributions 314,311 3,781,164 269,424 3,009,471
Less shares repurchased (4,222,518) (51,804,650) (2,680,612) (30,546,449)
Shares issued in reorganization - - 6,095,571 68,142,545
---------- ----------- ---------- ------------
Net increase 165,904 $ 1,701,630 10,090,021 $113,462,678
========== =========== ========== ============
CLASS B
Shares sold 932,886 $10,869,626 1,605,785 $ 17,587,651
Reinvestment of distributions 89,682 1,037,617 105,082 1,131,732
Less shares repurchased (983,186) (11,535,587) (664,314) (7,283,351)
Shares issued in reorganization - - 3,086,496 33,269,915
---------- ----------- ---------- ------------
Net increase 39,382 $ 371,656 4,133,049 $ 44,705,947
========== =========== ========== ============
CLASS C
Shares sold 1,736,902 $20,273,756 1,923,525 $ 20,933,219
Reinvestment of distributions 50,255 576,929 33,895 362,338
Less shares repurchased (782,532) (9,089,223) (395,765) (4,288,391)
---------- ----------- ---------- ------------
Net increase 1,004,625 $11,761,462 1,561,655 $ 17,007,166
========== =========== ========== ============
CLASS Y
Shares sold 127,023 $ 1,561,248 174,727 $ 1,990,611
Reinvestment of distributions 53,758 648,319 123,333 1,376,394
Less shares repurchased (696,159) (8,668,913) (2,706,254) (30,931,428)
Shares issued in reorganization - - 4,838,972 54,096,317
---------- ----------- ---------- ------------
Net increase (decrease) (515,378) $(6,459,346) 2,430,778 $ 26,531,894
========== =========== ========== ============
48 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For the Years Ended 7/31/07 and 7/31/06
Growth Allocation Fund
---------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
CLASS A
Shares sold 4,581,469 $59,854,154 5,798,720 $69,197,676
Reinvestment of distributions 260,778 3,361,429 99,749 1,172,050
Less shares repurchased (2,797,188) (36,805,149) (1,538,171) (18,428,645)
Shares issued in reorganization - - 2,572,757 29,688,353
---------- ----------- ---------- -----------
Net increase 2,045,059 $26,410,434 6,933,055 $81,629,434
========== =========== ========== ===========
CLASS B
Shares sold 1,407,692 $16,572,434 2,420,842 $26,412,340
Reinvestment of distributions 119,895 1,403,970 59,006 631,954
Less shares repurchased (891,286) (10,570,178) (750,314) (8,164,423)
Shares issued in reorganization - - 2,915,273 30,697,135
---------- ----------- ---------- -----------
Net increase 636,301 $ 7,406,226 4,644,807 $49,577,006
========== =========== ========== ===========
CLASS C
Shares sold 1,876,853 $23,627,869 1,909,199 $21,909,801
Reinvestment of distributions 56,602 702,425 17,009 192,886
Less shares repurchased (714,675) (9,034,349) (387,946) (4,507,506)
---------- ----------- ---------- -----------
Net increase 1,218,780 $15,295,945 1,538,262 $17,595,181
========== =========== ========== ===========
CLASS Y
Shares sold 76,408 $ 1,028,640 51,290 $ 602,984
Reinvestment of distributions 5,650 73,284 8,708 102,319
Less shares repurchased (116,745) (1,552,026) (482,918) (5,858,207)
Shares issued in reorganization - - 675,780 7,798,364
---------- ----------- ---------- -----------
Net increase (decrease) (34,687) $ (450,102) 252,860 $ 2,645,460
========== =========== ========== ===========
Aggressive Allocation Fund
---------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
CLASS A
Shares sold 2,897,818 $39,680,448 4,278,800 $52,739,788
Reinvestment of distributions 113,085 1,533,432 100,587 1,213,082
Less shares repurchased (1,820,781) (25,206,002) (1,049,894) (12,946,732)
Shares issued in reorganization - - 1,763,269 20,930,973
---------- ----------- ---------- -----------
Net increase 1,190,122 $16,007,878 5,092,762 $61,937,111
========== =========== ========== ===========
CLASS B
Shares sold 614,633 $ 8,000,633 958,460 $11,426,790
Reinvestment of distributions 23,644 307,367 44,921 520,186
Less shares repurchased (417,719) (5,489,710) (311,556) (3,687,072)
Shares issued in reorganization - - 1,360,585 15,538,420
---------- ----------- ---------- -----------
Net increase 220,558 $ 2,818,290 2,052,410 $23,798,324
========== =========== ========== ===========
CLASS C
Shares sold 724,822 $ 9,693,390 838,226 $10,065,538
Reinvestment of distributions 12,263 161,506 14,339 168,202
Less shares repurchased (313,094) (4,183,498) (178,514) (2,148,569)
---------- ----------- ---------- -----------
Net increase 423,991 $ 5,671,398 674,051 $ 8,085,171
========== =========== ========== ===========
CLASS Y
Shares sold 131,135 $ 1,772,246 84,627 $ 1,007,697
Reinvestment of distributions 7,031 95,480 22,288 268,348
Less shares repurchased (287,047) (3,978,026) (986,399) (12,161,434)
Shares issued in reorganization - - 1,250,780 14,847,156
---------- ----------- ---------- -----------
Net increase (decrease) (148,881) $(2,110,300) 371,296 $ 3,961,767
========== =========== ========== ===========
The accompanying notes are an integral part of these financial statements. 49
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Year Year 5/12/05 (a)
Ended Ended To
7/31/07 7/31/06 7/31/05
CLASS A
Net asset value, beginning of period $ 10.56 $10.29 $ 10.00
------- ------ -------
Increase from investment operations:
Net investment income (b) $ 0.32 $ 0.25 $ 0.05
Net realized and unrealized gain
on investments 0.61 0.09 0.24
------- ------ -------
Net increase from investment operations $ 0.93 $ 0.34 $ 0.29
------- ------ -------
Distributions to shareowners:
Net investment income $ (0.19) $(0.06) $ -
Net realized gain (0.02) (0.01) -
------- ------ -------
Net increase in net asset value $ 0.72 $ 0.27 $ 0.29
------- ------ -------
Net asset value, end of period $ 11.28 $10.56 $ 10.29
======= ====== =======
Total return* 8.89% 3.33% 2.90%***
Ratio of net expenses to average net assets+ ++ 0.78% 0.78% 0.78%**
Ratio of net investment income to average
net assets+ ++ 2.90% 2.38% 2.26%**
Portfolio turnover rate 15% 15% 9%
Net assets, end of period (in thousands) $23,324 $8,837 $ 877
Ratios with no waiver of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 0.98% 2.12% 40.41%**
Net investment income (loss) 2.70% 1.04% (37.37)%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 0.78% 0.78% 0.78%**
Net investment income 2.90% 2.38% 2.26%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
50 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Year Year 5/12/05 (a)
Ended Ended To
7/31/07 7/31/06 7/31/05
CLASS B
Net asset value, beginning of period $10.44 $10.28 $ 10.00
------ ------ -------
Increase from investment operations:
Net investment income (b) $ 0.21 $ 0.15 $ 0.03
Net realized and unrealized gain
on investments 0.63 0.08 0.25
------ ------ -------
Net increase from investment operations $ 0.84 $ 0.23 $ 0.28
------ ------ -------
Distributions to shareowners:
Net investment income $(0.16) $(0.06) $ -
Net realized gain (0.02) (0.01) -
------ ------ -------
Net increase in net asset value $ 0.66 $ 0.16 $ 0.28
------ ------ -------
Net asset value, end of period $11.10 $10.44 $ 10.28
====== ====== =======
Total return* 8.09% 2.26% 2.80%***
Ratio of net expenses to average net assets+ ++ 1.69% 1.68% 1.68%**
Ratio of net investment income to average
net assets+ ++ 1.91% 1.49% 1.23%**
Portfolio turnover rate 15% 15% 9%
Net assets, end of period (in thousands) $4,729 $2,830 $ 221
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.91% 3.08% 38.96%**
Net investment income (loss) 1.69% 0.09% (36.05)%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.68% 1.68% 1.68%**
Net investment income 1.92% 1.49% 1.23%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 51
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Year Year 5/12/05 (a)
Ended Ended To
7/31/07 7/31/06 7/31/05
CLASS C
Net asset value, beginning of period $10.44 $10.26 $ 10.00
------ ------ -------
Increase from investment operations:
Net investment income (b) $ 0.21 $ 0.15 $ 0.03
Net realized and unrealized gain
on investments 0.62 0.10 0.23
------ ------ -------
Net increase from investment operations $ 0.83 $ 0.25 $ 0.26
------ ------ -------
Distributions to shareowners:
Net investment income $(0.16) $(0.06) $ -
Net realized gain (0.02) (0.01) -
------ ------ -------
Net increase in net asset value $ 0.65 $ 0.18 $ 0.26
------ ------ -------
Net asset value, end of period $11.09 $10.44 $ 10.26
====== ====== =======
Total return* 8.00% 2.46% 2.60%***
Ratio of net expenses to average net assets+ ++ 1.68% 1.68% 1.68%**
Ratio of net investment income to average
net assets+ ++ 1.92% 1.48% 1.17%**
Portfolio turnover rate 15% 15% 9%
Net assets, end of period (in thousands) $9,814 $5,201 $ 679
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.76% 2.80% 45.38%**
Net investment income (loss) 1.84% 0.36% (42.53)%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.68% 1.68% 1.68%**
Net investment income 1.92% 1.48% 1.17%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
52 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Conservative Allocation Fund
Year 10/5/05 (a)
Ended To
7/31/07 7/31/06
CLASS Y
Net asset value, beginning of period $10.57 $10.32
------ ------
Increase from investment operations:
Net investment income (b) $ 0.29 $ 0.16
Net realized and unrealized gain
on investments 0.65 0.16
------ ------
Net increase from investment operations $ 0.94 $ 0.32
------ ------
Distributions to shareowners:
Net investment income $(0.19) $(0.06)
Net realized gain (0.02) (0.01)
------ ------
Net increase in net asset value $ 0.73 $ 0.25
------ ------
Net asset value, end of period $11.30 $10.57
====== ======
Total return* 8.91% 3.13%***
Ratio of net expenses to average net assets+ ++ 0.90% 1.23%**
Ratio of net investment income to average
net assets+ ++ 2.64% 1.96%**
Portfolio turnover rate 15% 15%
Net assets, end of period (in thousands) $ 11 $ 10
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 0.90% 2.19%**
Net investment income 2.64% 0.98%**
Ratios with waivers of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 0.88% 1.23%**
Net investment income 2.66% 1.96%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 53
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Moderate Allocation Fund
Year Year 8/9/04 (a)
Ended Ended To
7/31/07 7/31/06 7/31/05
CLASS A
Net asset value, beginning of period $ 11.39 $ 11.15 $ 10.00
-------- -------- -------
Increase from investment operations:
Net investment income (b) $ 0.21 $ 0.16 $ 0.15
Net realized and unrealized gain
on investments 1.21 0.38 1.27
-------- -------- -------
Net increase from investment operations $ 1.42 $ 0.54 $ 1.42
-------- -------- -------
Distributions to shareowners:
Net investment income $ (0.28) $ (0.06) $ (0.04)
Net realized gain (0.03) (0.24) (0.23)
-------- -------- -------
Net increase in net asset value $ 1.11 $ 0.24 $ 1.15
-------- -------- -------
Net asset value, end of period $ 12.50 $ 11.39 $ 11.15
======== ======== =======
Total return* 12.58% 4.98% 14.37%***
Ratio of net expenses to average net assets+ ++ 0.65% 0.63% 0.77%**
Ratio of net investment income to average
net assets+ ++ 1.75% 1.40% 1.37%**
Portfolio turnover rate 19% 52% 19%
Net assets, end of period (in thousands) $165,090 $148,495 $32,893
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 0.65% 0.63% 1.26%**
Net investment income 1.75% 1.40% 0.88%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 0.65% 0.63% 0.77%**
Net investment income 1.75% 1.40% 1.37%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
54 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------
Moderate Allocation Fund
Year Year 8/9/04 (a)
Ended Ended To
7/31/07 7/31/06 7/31/05
CLASS B
Net asset value, beginning of period $ 10.92 $ 10.77 $10.00
------- ------- ------
Increase from investment operations:
Net investment income (b) $ 0.11 $ 0.06 $ 0.02
Net realized and unrealized gain
on investments 1.16 0.36 0.98
------- ------- ------
Net increase from investment operations $ 1.27 $ 0.42 $ 1.00
------- ------- ------
Distributions to shareowners:
Net investment income $ (0.19) $ (0.03) $ -
Net realized gain (0.03) (0.24) (0.23)
------- ------- ------
Net increase in net asset value $ 1.05 $ 0.15 $ 0.77
------- ------- ------
Net asset value, end of period $ 11.97 $ 10.92 $10.77
======= ======= ======
Total return* 11.70% 4.00% 10.11%***
Ratio of net expenses to average net assets+ ++ 1.50% 1.51% 1.67%**
Ratio of net investment income to average
net assets+ ++ 0.91% 0.51% 0.16%**
Portfolio turnover rate 19% 52% 19%
Net assets, end of period (in thousands) $60,796 $55,053 $9,781
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.50% 1.51% 2.08%**
Net investment income (loss) 0.91% 0.51% (0.25)%**
Ratios with waivers of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.49% 1.51% 1.67%**
Net investment income 0.92% 0.51% 0.16%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 55
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Moderate Allocation Fund
Year Year 8/9/04 (a)
Ended Ended To
7/31/07 7/31/06 7/31/05
CLASS C
Net asset value, beginning of period $ 10.85 $ 10.68 $ 10.00
------- ------- -------
Increase from investment operations:
Net investment income (b) $ 0.12 $ 0.07 $ 0.05
Net realized and unrealized gain
on investments 1.15 0.35 0.87
------- ------- -------
Net increase from investment operations $ 1.27 $ 0.42 $ 0.92
------- ------- -------
Distributions to shareowners:
Net investment income $ (0.21) $ (0.01) $ (0.01)
Net realized gain (0.03) (0.24) (0.23)
------- ------- -------
Net increase in net asset value $ 1.03 $ 0.17 $ 0.68
------- ------- -------
Net asset value, end of period $ 11.88 $ 10.85 $ 10.68
======= ======= =======
Total return* 11.83% 4.06% 9.32%***
Ratio of net expenses to average net assets+ ++ 1.39% 1.42% 1.67%**
Ratio of net investment income to average
net assets+ ++ 1.03% 0.60% 0.44%**
Portfolio turnover rate 19% 52% 19%
Net assets, end of period (in thousands) $47,405 $32,416 $15,223
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.39% 1.42% 2.03%**
Net investment income 1.03% 0.60% 0.08%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.38% 1.42% 1.67%**
Net investment income 1.04% 0.60% 0.44%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
56 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Moderate Allocation Fund
Year 9/23/05 (a)
Ended To
7/31/07 7/31/06
CLASS Y
Net asset value, beginning of period $ 11.43 $ 11.18
------- -------
Increase from investment operations:
Net investment income (b) $ 0.26 $ 0.17
Net realized and unrealized gain
on investments 1.21 0.40
------- -------
Net increase from investment operations $ 1.47 $ 0.57
------- -------
Distributions to shareowners:
Net investment income $ (0.32) $ (0.08)
Net realized gain (0.03) (0.24)
------- -------
Net increase in net asset value $ 1.12 $ 0.25
------- -------
Net asset value, end of period $ 12.55 $ 11.43
======= =======
Total return* 12.98% 5.19%***
Ratio of net expenses to average net assets+ ++ 0.29% 0.28%**
Ratio of net investment income to average
net assets+ ++ 2.09% 1.79%**
Portfolio turnover rate 19% 52%
Net assets, end of period (in thousands) $24,046 $27,792
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 0.29% 0.28%**
Net investment income 2.09% 1.79%**
Ratios with waivers of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 0.29% 0.28%
Net investment income 2.09% 1.79%
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 57
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth Allocation Fund
Year Year 8/9/04 (a)
Ended Ended To
7/31/07 7/31/06 7/31/05
CLASS A
Net asset value, beginning of period $ 12.04 $ 11.50 $ 10.00
-------- -------- -------
Increase from investment operations:
Net investment income (b) $ 0.15 $ 0.09 $ 0.08
Net realized and unrealized gain
on investments 1.61 0.63 1.70
-------- -------- -------
Net increase from investment operations $ 1.76 $ 0.72 $ 1.78
-------- -------- -------
Distributions to shareowners:
Net investment income $ (0.23) $ (0.05) $ (0.03)
Net realized gain (0.10) (0.13) (0.25)
-------- -------- -------
Net increase in net asset value $ 1.43 $ 0.54 $ 1.50
-------- -------- -------
Net asset value, end of period $ 13.47 $ 12.04 $ 11.50
======== ======== =======
Total return* 14.73% 6.29% 17.96%***
Ratio of net expenses to average net assets+ ++ 0.72% 0.74% 0.81%**
Ratio of net investment income to average
net assets+ ++ 1.09% 0.74% 0.69%**
Portfolio turnover rate 11% 27% 2%
Net assets, end of period (in thousands) $157,453 $116,161 $31,212
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 0.72% 0.74% 1.42%**
Net investment income 1.09% 0.74% 0.08%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 0.71% 0.74% 0.81%**
Net investment income 1.10% 0.74% 0.69%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
58 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth Allocation Fund
Year Year 8/9/04 (a)
Ended Ended To
7/31/07 7/31/06 7/31/05
CLASS B
Net asset value, beginning of period $ 10.93 $ 10.50 $ 10.00
------- ------- -------
Increase (decrease) from investment
operations:
Net investment income (loss) (b) $ 0.03 $ (0.01) $ 0.01
Net realized and unrealized gain
on investments 1.45 0.59 0.74
------- ------- -------
Net increase from investment operations $ 1.48 $ 0.58 $ 0.75
------- ------- -------
Distributions to shareowners:
Net investment income $ (0.14) $ (0.02) $ -
Net realized gain (0.10) (0.13) (0.25)
------- ------- -------
Net increase in net asset value $ 1.24 $ 0.43 $ 0.50
------- ------- -------
Net asset value, end of period $ 12.17 $ 10.93 $ 10.50
======= ======= =======
Total return* 13.67% 5.53% 7.59%***
Ratio of net expenses to average net assets+ ++ 1.58% 1.57% 1.71%**
Ratio of net investment income (loss) to
average net assets+ ++ 0.23% (0.08)% 0.05%**
Portfolio turnover rate 11% 27% 2%
Net assets, end of period (in thousands) $76,095 $61,373 $10,219
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.60% 1.62% 2.27%**
Net investment income (loss) 0.21% (0.13)% (0.51)%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.57% 1.57% 1.71%**
Net investment income (loss) 0.24% (0.08)% 0.05%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 59
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth Allocation Fund
Year Year 8/9/04 (a)
Ended Ended To
7/31/07 7/31/06 7/31/05
CLASS C
Net asset value, beginning of period $ 11.58 $ 11.10 $ 10.00
------- ------- -------
Increase (decrease) from investment
operations:
Net investment income (loss) (b) $ 0.05 $ - $ (0.01)
Net realized and unrealized gain
on investments 1.53 0.61 1.37
------- ------- -------
Net increase from investment operations $ 1.58 $ 0.61 $ 1.36
------- ------- -------
Distributions to shareowners:
Net investment income $ (0.16) $ - $ (0.01)
Net realized gain (0.10) (0.13) (0.25)
------- ------- -------
Net increase in net asset value $ 1.32 $ 0.48 $ 1.10
------- ------- -------
Net asset value, end of period $ 12.90 $ 11.58 $ 11.10
======= ======= =======
Total return* 13.75% 5.51% 13.67%***
Ratio of net expenses to average net assets+ ++ 1.44% 1.46% 1.71%**
Ratio of net investment income (loss) to
average net assets+ ++ 0.37% 0.02% (0.07)%**
Portfolio turnover rate 11% 27% 2%
Net assets, end of period (in thousands) $52,861 $33,315 $14,874
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.44% 1.46% 2.13%**
Net investment income (loss) 0.37% 0.02% (0.49)%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.43% 1.46% 1.71%**
Net investment income (loss) 0.38% 0.02% (0.07)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
60 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth Allocation Fund
Year 9/23/05 (a)
Ended To
7/31/07 7/31/06
CLASS Y
Net asset value, beginning of period $12.13 $11.54
------ ------
Increase from investment operations:
Net investment income (b) $ 0.19 $ 0.13
Net realized and unrealized gain
on investments 1.60 0.65
------ ------
Net increase from investment operations $ 1.79 $ 0.78
------ ------
Distributions to shareowners:
Net investment income $(0.27) $(0.06)
Net realized gain (0.10) (0.13)
------ ------
Net increase in net asset value $ 1.42 $ 0.59
------ ------
Net asset value, end of period $13.55 $12.13
====== ======
Total return* 14.87% 6.84%***
Ratio of net expenses to average net assets+ ++ 0.36% 0.32%**
Ratio of net investment income to average
net assets+ ++ 1.40% 1.23%**
Portfolio turnover rate 11% 27%
Net assets, end of period (in thousands) $2,956 $3,068
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 0.36% 0.32%**
Net investment income 1.40% 1.23%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 0.36% 0.32%**
Net investment income 1.40% 1.23%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 61
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
Year Year 8/9/04 (a)
Ended Ended To
7/31/07 7/31/06 7/31/05
CLASS A
Net asset value, beginning of period $ 12.39 $ 11.82 $ 10.00
-------- ------- -------
Increase from investment operations:
Net investment income (b) $ 0.06 $ 0.01 $ -
Net realized and unrealized gain
on investments 1.97 0.85 2.14
-------- ------- -------
Net increase from investment operations $ 2.03 $ 0.86 $ 2.14
-------- ------- -------
Distributions to shareowners:
Net investment income $ (0.16) $ (0.02) $ -
Net realized gain (0.06) (0.27) (0.27)
Return of capital - - (0.05)
-------- ------- -------
Net increase in net asset value $ 1.81 $ 0.57 $ 1.82
-------- ------- -------
Net asset value, end of period $ 14.20 $ 12.39 $ 11.82
======== ======= =======
Total return* 16.41% 7.30% 21.57%***
Ratio of net expenses to average net assets+ ++ 0.82% 0.82% 0.86%**
Ratio of net investment income (loss) to
average net assets+ ++ 0.44% 0.10% (0.04)%**
Portfolio turnover rate 18% 51% 3%
Net assets, end of period (in thousands) $114,054 $84,775 $20,689
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 0.82% 0.82% 2.14%**
Net investment income (loss) 0.44% 0.10% (1.31)%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 0.81% 0.82% 0.86%**
Net investment income (loss) 0.45% 0.10% (0.04)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
62 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
Year Year 8/9/04 (a)
Ended Ended To
7/31/07 7/31/06 7/31/05
CLASS B
Net asset value, beginning of period $ 11.84 $ 11.39 $10.00
------- ------- ------
Increase (decrease) from investment
operations:
Net investment loss (b) $ (0.05) $ (0.08) $(0.03)
Net realized and unrealized gain
on investments 1.88 0.80 1.72
------- ------- ------
Net increase from investment operations $ 1.83 $ 0.72 $ 1.69
------- ------- ------
Distributions to shareowners:
Net investment income $ (0.06) $ - $ -
Net realized gain (0.06) (0.27) (0.27)
Return of capital - - (0.03)
------- ------- ------
Net increase in net asset value $ 1.71 $ 0.45 $ 1.39
------- ------- ------
Net asset value, end of period $ 13.55 $ 11.84 $11.39
======= ======= ======
Total return* 15.49% 6.36% 17.02%***
Ratio of net expenses to average net assets+ ++ 1.66% 1.64% 1.76%**
Ratio of net investment loss to average
net assets+ ++ (0.39)% (0.70)% (0.26)%**
Portfolio turnover rate 18% 51% 3%
Net assets, end of period (in thousands) $37,749 $30,382 $5,845
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.69% 1.69% 2.81%**
Net investment loss (0.42)% (0.75)% (1.31)%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.64% 1.64% 1.76%**
Net investment loss (0.38)% (0.70)% (0.26)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 63
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
Year Year 8/9/04 (a)
Ended Ended To
7/31/07 7/31/06 7/31/05
CLASS C
Net asset value, beginning of period $ 12.00 $ 11.54 $10.00
------- ------- ------
Increase (decrease) from investment
operations:
Net investment loss (b) $ (0.03) $ (0.08) $(0.04)
Net realized and unrealized gain
on investments 1.90 0.81 1.88
------- ------- ------
Net increase from investment operations $ 1.87 $ 0.73 $ 1.84
------- ------- ------
Distributions to shareowners:
Net investment income $ (0.08) $ - $ -
Net realized gain (0.06) (0.27) (0.27)
Return of capital - - (0.03)
------- ------- ------
Net increase in net asset value $ 1.73 $ 0.46 $ 1.54
------- ------- ------
Net asset value, end of period $ 13.73 $ 12.00 $11.54
======= ======= ======
Total return* 15.63% 6.37% 18.52%***
Ratio of net expenses to average net assets+ ++ 1.52% 1.56% 1.76%**
Ratio of net investment loss to average
net assets+ ++ (0.26)% (0.64)% (0.39)%**
Portfolio turnover rate 18% 51% 3%
Net assets, end of period (in thousands) $23,584 $15,524 $7,144
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.52% 1.56% 2.74%**
Net investment loss (0.26)% (0.64)% (1.37)%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.52% 1.56% 1.76%**
Net investment loss (0.26)% (0.64)% (0.39)%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
64 The accompanying notes are an integral part of these financial statements.
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Aggressive Allocation Fund
Year 9/23/05 (a)
Ended To
7/31/07 7/31/06
CLASS Y
Net asset value, beginning of period $12.41 $11.87
------ ------
Increase from investment operations:
Net investment income (b) $ 0.14 $ 0.06
Net realized and unrealized gain
on investments 1.97 0.78
------ ------
Net increase from investment operations $ 2.11 $ 0.84
------ ------
Distributions to shareowners:
Net investment income $(0.20) $(0.03)
Net realized gain (0.06) (0.27)
------ ------
Net increase in net asset value $ 1.85 $ 0.54
------ ------
Net asset value, end of period $14.26 $12.41
====== ======
Total return* 17.10% 7.13%***
Ratio of net expenses to average net assets+ ++ 0.39% 0.37%**
Ratio of net investment income to average
net assets+ ++ 1.01% 0.63%**
Portfolio turnover rate 18% 51%
Net assets, end of period (in thousands) $3,171 $4,607
Ratios with no waivers of management fees
and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 0.39% 0.37%**
Net investment income 1.01% 0.63%**
Ratios with waiver of management fees
and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 0.39% 0.37%**
Net investment income 1.01% 0.63%**
(a) Commencement of operations.
(b) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period, and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which
the Fund invests. Because each of the underlying funds bears its own
varying expense levels and because the Fund may own differing
proportions of each fund at different times, the amount of expenses
incurred indirectly by the Fund will vary from time to time.
++ Ratios with no reduction for fees paid indirectly.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 65
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/07
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Ibbotson Asset Allocation Series (the Trust) was organized as a Delaware
statutory trust on April 22, 2004 (amended July 1, 2004) and was registered with
the Securities and Exchange Commission under the Investment Company Act of 1940
(the 1940 Act) as an open-end management investment company. The Trust consists
of four separate funds, each issuing four classes of shares (collectively, the
Funds, individually, the Fund) as follows:
Pioneer Ibbotson Conservative Allocation Fund (Conservative Fund)
Pioneer Ibbotson Moderate Allocation Fund (Moderate Fund)
Pioneer Ibbotson Growth Allocation Fund (Growth Fund)
Pioneer Ibbotson Aggressive Allocation Fund (Aggressive Fund)
The investment objective of the Conservative Fund is to seek long-term capital
growth and current income. The Moderate Fund seeks long-term capital growth and
current income. The Growth Fund seeks long-term capital growth and current
income. The Aggressive Fund seeks long-term capital growth.
Each Fund is a "fund of funds," which means that it seeks to achieve its
investment objective by investing exclusively in other Pioneer Investment funds
("underlying funds") managed by Pioneer Investment Management, Inc. (PIM) rather
than by direct investment in securities. In the future, the Funds also may
invest in regulated investment companies that are not managed by PIM. The Funds
indirectly pay a portion of the expenses incurred by the underlying funds.
Consequently, an investment in the Funds entails more direct and indirect
expenses than direct investment in the underlying funds.
Some of the underlying funds can invest in either high yield securities or
small/emerging growth companies. Investments in these types of securities
generally are subject to greater volatility than either higher-grade securities
or more-established companies in more developed markets, respectively.
Information regarding the Funds' principal investment risks is contained in the
Funds' prospectuses. Please refer to those documents when considering the Funds'
investment risks.
Each Fund offers four classes of shares designated Class A, Class B, Class C and
Class Y. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has equal rights to voting, redemptions, dividends
and liquidation proceeds, except that each class of shares can bear different
transfer agent and distribution
66
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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. There is no distribution plan for Class Y shares.
The financial statements have been prepared in accordance with U.S. generally
accepted accounting principles that require the management of the Fund to, among
other things, make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of income and expenses during the reporting period. Actual results could
differ from these estimates.
The following is a summary of significant accounting policies followed by the
Trust in preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of the trade date. The net asset
value is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In
computing the net asset value, holdings of mutual fund shares are valued at
the net asset value of each fund held. Dividend income and realized capital
gain distributions from investment company shares held are recorded on the
ex-dividend date. Temporary cash investments are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and Federal income tax purposes.
B. Federal Income Taxes
It is the Funds' policy to comply with the requirements of the Internal
Revenue Service Code applicable to regulated investment companies and to
distribute all taxable income and net realized capital gains, if any, to
shareholders. Therefore, no Federal income tax provisions are required.
The amount and characterization of distributions to shareowners for
financial reporting purposes is determined in accordance with Federal
income tax rules. Therefore, the source of the Funds' distributions may be
shown in the accompanying financial statements as either from or in excess
of net investment income or net realized
67
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/07 (continued)
- --------------------------------------------------------------------------------
gain on investment transactions, or from paid-in capital, depending on the
type of book/tax differences that may exist.
At July 31, 2007, the Funds made reclassifications as listed below. These
reclassifications have no impact on the net asset values of the respective
Funds and are designed to present the Funds' capital accounts on a tax
basis.
Undistributed Accumulated
Net Investment Realized Gain/
Portfolio Income (Loss) (Loss)
- --------------------------------------------------------------------------------
Conservative Allocation Fund $ 90,427 $ (90,427)
Moderate Allocation Fund 1,554,647 (1,554,647)
Growth Allocation Fund 1,823,164 (1,823,164)
Aggressive Allocation Fund 1,458,165 (1,458,165)
The tax character of distributions paid during the year ended July 31, 2007
was as follows:
Ordinary Long-Term
Fund Income Capital Gains Total
- --------------------------------------------------------------------------------
Conservative Fund $ 514,160 $ 54,191 $ 568,351
Moderate Fund 6,048,120 702,806 6,750,926
Growth Fund 3,901,473 2,022,290 5,923,763
Aggressive Fund 1,544,770 684,841 2,229,611
The tax character of distributions paid during the year ended July 31,
2006 was as follows:
Ordinary Long-Term
Fund Income Capital Gains Total
- --------------------------------------------------------------------------------
Conservative Fund $ 42,282 $ 5,745 $ 48,027
Moderate Fund 1,203,891 5,304,864 6,508,755
Growth Fund 467,663 1,821,408 2,289,071
Aggressive Fund 99,271 2,267,135 2,366,406
68
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a Federal
income tax basis at July 31, 2007:
Undistributed Undistributed Net Unrealized
Ordinary Long-Term Appreciation
Fund Income Capital Gains (Depreciation)
- --------------------------------------------------------------------------------
Conservative Fund $ 509,024 $ 350,816 $ 879,259
Moderate Fund 2,540,036 8,080,888 27,770,548
Growth Fund 933,087 7,939,477 30,877,598
Aggressive Fund 321,362 5,047,827 23,654,501
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
C. Fund Shares
The Board of Trustees has authorized the issuance of four classes of
shares, designated as Class A, Class B, Class C and Class Y. Additional
classes of shares have been authorized but are not referenced in the Fund's
prospectus. The Conservative Allocation Fund, Class A, Class B and Class C
shares were first offered for sale to the public on May 12, 2005. Class Y
shares were first offered for sale to the public on October 5, 2005. The
Moderate Allocation, Growth Allocation and Aggressive Allocation Funds
Class A, Class B and Class C shares were first offered for sale to the
public on August 9, 2004. Class Y shares of these three Funds were first
publicly offered on the following dates: Moderate Allocation on 9/23/05,
Growth Allocation on 9/23/05 and Aggressive Allocation on 9/23/05. Shares
of each class represent an interest in the same portfolio of investments of
the Fund and have equal rights as to voting, redemptions, dividends and
liquidation, except that the level of transfer agent and distribution fees
may differ among classes. Class A, Class B, and Class C shareowners have
exclusive voting rights with respect to distribution plans for each class.
There is no distribution plan for Class Y.
The Funds record sales and repurchases of Fund shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Funds and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.
(UniCredito Italiano), earned the following in underwriting commissions
during the year ended July 31, 2007:
69
Pioneer Ibbotson Asset Allocation Series
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NOTES TO FINANCIAL STATEMENTS 7/31/07 (continued)
- --------------------------------------------------------------------------------
Fund Amount
- ---- ------
Conservative Fund $ 18,852
Moderate Fund $112,258
Growth Fund $190,221
Aggressive Fund $130,388
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of each Fund,
respectively, (see Note 4). Shareowners of each class share all expenses
and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services, which are allocated
based on the number of accounts in each class and the ratable allocation of
related out-of-pocket expenses (see Note 3). Income, common expenses and
realized and unrealized gains and losses are calculated at the Fund level
and allocated daily to each class of shares based on the respective
percentage of adjusted net assets at the beginning of the day.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by each of the Funds with respect to each class of
shares are calculated in the same manner, at the same time, and in the same
amount, except that Class A, Class B and Class C shares can bear different
transfer agent and distribution fees.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Funds, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of the
purchase. The collateral for all repurchase agreements is held in
safekeeping in the customer-only account of the Funds' custodian, or
subcustodians. The Fund's investment adviser, PIM is responsible for
determining that the value of the collateral remains at least equal to the
repurchase price.
70
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, is the Funds'
investment adviser, and manages the Funds' portfolios. Management fees are
calculated daily at the following annual rates on Pioneer managed assets:
Management Fee as a Percentage
of each Fund's Average
Fund Daily Net Assets
- ---- ----------------
Conservative Fund 0.13%
Moderate Fund 0.13%
Growth Fund 0.13%
Aggressive Fund 0.13%
For each Fund, management fees will be calculated daily at a 0.17% annual rate
on any third party managed assets.
PIM has entered into a sub-advisory agreement with Ibbotson Associates, LLC.
PIM, not the Funds, pays a portion of the fee it receives from each Fund to
Ibbotson Associates as compensation for its services to the Funds.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Funds. At July 31, 2007, the following amounts were
payable to PIM relating to management fees and certain other services and are
included in due to affiliates:
Fund Amount
- ---- ------
Conservative Fund $ 5,066
Moderate Fund $40,831
Growth Fund $40,330
Aggressive Fund $24,619
PIM contractually agreed to limit ordinary operating expenses to the extent
required to reduce fund expenses, other than underlying fund fees and expenses,
as follows. These expense limitations are
71
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/07 (continued)
- --------------------------------------------------------------------------------
in effect through December 1, 2009 for Class A shares and through December 1,
2008 for Class B and Class C shares:
Fund Class A Class B Class C
- ---- ------- ------- -------
Conservative Fund 0.78% 1.68% 1.68%
Moderate Fund 0.74% 1.52% 1.52%
Growth Fund 0.79% 1.57% 1.57%
Aggressive Fund 0.85% 1.64% 1.64%
3. Transfer Agent
PIMSS provides substantially all transfer agent and shareowner services to the
Funds at negotiated rates. Included in due to affiliates are the following
amounts of transfer agent fees payable to PIMSS at July 31, 2007:
Fund Amount
- ---- ------
Conservative Fund $ 4,248
Moderate Fund $37,180
Growth Fund $49,387
Aggressive Fund $33,826
4. Distribution Plans
The Funds have adopted Plans of Distribution with respect to Class A, Class B
and Class C shares (Class A Plan, Class B Plan and Class C Plan, respectively)
in accordance with Rule 12b-1 of the Investment Company Act of 1940. Pursuant to
the Class A Plan, the Funds pay PFD a service fee of up to 0.25% of the Fund's
average daily net assets attributable to Class A shares in reimbursement of its
actual expenditures to finance activities primarily intended to result in the
sale of Class A shares. Pursuant to the Class B Plan and the Class C Plan, the
Funds pay PFD 1.00% of the average daily net assets attributable to each class
of shares. The fee consists of a 0.25% service fee and a 0.75% distribution fee
paid as compensation for personal services and/or account maintenance services
or distribution services with regard to Class B and Class C shares. At July 31,
2007
72
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
the following fees were payable to PFD relating to distribution and service fees
and are included in due to affiliates:
Fund Amount
- ---- ------
Conservative Fund $ 18,023
Moderate Fund $138,615
Growth Fund $155,648
Aggressive Fund $ 84,045
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase. Class B shares that are redeemed within five years
of purchase will be subject to a CDSC at declining rates beginning at 4.00%,
based on the lower of cost or market value of shares being redeemed. Redemptions
of Class C shares within one year of purchase are subject to a CDSC of 1.00%.
For the year ended July 31, 2007, the following CDSC's were paid to PFD:
Fund Amount
- ---- ------
Conservative Fund $ 15,816
Moderate Fund $229,007
Growth Fund $216,762
Aggressive Fund $113,971
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"):
73
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/07 (continued)
- --------------------------------------------------------------------------------
Pioneer AmSouth AmSouth Pioneer
Moderate Growth and Moderate Growth Moderate
Allocation Fund Income Fund and Income Fund Allocation Fund
(Pre-Reorganization) (Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- --------------------------------------------------------------------------------------------------------------
Net Assets
Class A $40,918,497 $ 47,985,562 $20,156,983 $109,061,042
Class B $11,519,608 $ 19,432,527 $13,837,388 $ 44,789,524
Class C $17,124,590 $ 17,124,590
Class Y $ 54,096,317
Class I $ 40,453,115 $13,643,202
Total Net Assets $69,562,695 $107,871,204 $47,637,573 $225,071,473
Shares Outstanding
Class A 3,660,813 4,708,295 2,060,226 9,756,384
Class B 1,068,504 1,914,637 1,423,053 4,155,001
Class C 1,602,231 1,602,231
Class Y 4,838,972
Class I 3,953,925 1,390,285
Shares Issued in
Reorganization
Class A 6,095,571
Class B 3,086,496
Class Y 4,838,972
Unrealized
Appreciation Accumulated Gain
On Closing On Closing
Date Date
- -------------------------------------------------------------
AmSouth Growth and
Income Fund $8,743,400 $2,595,540
AmSouth Moderate Growth
and Income Fund $1,726,341 $ 851,251
74
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Pioneer Growth AmSouth Pioneer Growth
Allocation Fund Growth Fund Allocation Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- ---------------------------------------------------------------------------------------------
Net Assets
Class A $38,438,637 $29,688,353 $ 68,126,990
Class B $12,106,330 $30,697,135 $ 42,803,465
Class C $16,868,540 $ 16,868,540
Class Y $ 7,798,364
Class I $ 7,798,364
Total Net Assets $67,413,507 $68,183,852 $135,597,359
Shares Outstanding
Class A 3,332,335 3,007,670 5,905,091
Class B 1,149,798 3,155,064 4,065,072
Class C 1,516,287 1,516,287
Class Y 675,780
Class I 786,487
Shares Issued in
Reorganization
Class A 2,572,757
Class B 2,915,273
Class Y 675,780
Unrealized
Appreciation Accumulated Gain
On Closing On Closing
Date Date
- ----------------------------------------------------------
AmSouth Growth Fund $5,108,682 $1,905,046
75
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/07 (continued)
- --------------------------------------------------------------------------------
Pioneer Aggressive AmSouth Aggressive Pioneer Aggressive
Allocation Fund Growth Fund Allocation Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- ---------------------------------------------------------------------------------------------
Net Assets
Class A $25,582,418 $20,930,973 $46,513,391
Class B $ 7,003,626 $15,538,420 $22,542,046
Class C $ 8,276,330 $ 8,276,330
Class Y $14,847,156
Class I $14,847,156
Total Net Assets $40,862,374 $51,316,549 $92,178,923
Shares Outstanding
Class A 2,154,549 2,128,158 3,917,819
Class B 613,143 1,653,405 1,973,727
Class C 715,365 715,365
Class Y 1,250,780
Class I 1,509,339
Shares Issued in
Reorganization
Class A 1,763,269
Class B 1,360,585
Class Y 1,250,780
Unrealized
Appreciation Accumulated Gain
On Closing On Closing
Date Date
- --------------------------------------------------------
AmSouth Aggressive
Growth Fund $6,818,836 $1,802,796
6. New Pronouncements
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions have a
"more-likely-than-not" probability of being sustained by the applicable tax
authority. Tax positions deemed to not meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the reporting period in which
they are realized. Adoption of FIN 48 is required for fiscal years beginning
after December 15, 2006 and is to be applied to all open tax years as of no
later than December 31,
76
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2007. At this time, management is evaluating the implications of FIN 48 and any
impact in the financial statements has not yet been determined.
In addition, in September 2006, Statement of Financial Accounting Standards No.
157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal
years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Trust's financial statement disclosures.
77
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 7/31/07 (continued)
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION (unaudited)
For the fiscal year ended July 31, 2007, certain dividends paid by the Funds may
be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth
Tax Relief Reconciliation Act (the Act) of 2003. The Funds designated up to the
maximum amount of such dividends allowable under the Act, as taxed at a maximum
rate of 15%. Complete information was computed and reported in conjunction with
your 2006 Form 1099-DIV.
The qualifying percentage of ordinary income dividends for the purposes of the
corporate dividends received deduction was:
Moderate Fund 17.62%
Growth Fund 27.87%
Aggressive Fund 49.69%
Conservative Fund 11.22%
78
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of
Pioneer Ibbotson Asset Allocation Series:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Pioneer Ibbotson Asset Allocation Series (the
"Funds", comprising, respectively, the Pioneer Ibbotson Conservative Allocation
Fund, the Pioneer Ibbotson Moderate Allocation Fund, the Pioneer Ibbotson Growth
Allocation Fund and the Pioneer Ibbotson Aggressive Allocation Fund) as of July
31, 2007, and the related statements of operations for the year then ended, the
statements of changes in net assets for the two years then ended and financial
highlights for each of the periods indicated therein. These financial statements
and financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of July 31, 2007, by correspondence with the Funds'
custodian and the transfer agent of the underlying funds. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds constituting the Pioneer Ibbotson Asset Allocation
Series at July 31, 2007, the results of their operations, the changes in their
net assets for the two years then ended and the financial highlights for each of
the periods indicated therein, in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
September 17, 2007
79
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The trust's Board of Trustees provides broad supervision over the funds'
affairs. The officers of the trust are responsible for the trust's operations.
The trust's Trustees and officers are listed below, together with their
principal occupations during the past five years. Trustees who are interested
persons of the trust within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the trust are
referred to as Independent Trustees. Each of the Trustees (except Mr. Bock)
serves as a trustee of each of the 83 U.S. registered investment portfolios for
which Pioneer serves as investment adviser (the "Pioneer Funds"). Mr. Bock
serves as Trustee of 82 of the 83 Pioneer Funds. The address for all Interested
Trustees and all officers of the trust is 60 State Street, Boston, Massachusetts
02109.
80
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age With the Fund and Term of Office During Past Five Years Held by this Trustee
John F. Cogan, Jr. (81)* Chairman of the Trustee since 2004. Deputy Chairman and a Director of None
Board, Trustee and Serves until a Pioneer Global Asset Management
President successor trustee is S.p.A. ("PGAM"); Non-Executive
elected or earlier Chairman and a Director of Pioneer
retirement or removal. Investment Management USA Inc.
("PIM-USA"); Chairman and a
Director of Pioneer; Chairman and
Director of Pioneer Institutional
Asset Management, Inc. (since
2006); Director of Pioneer
Alternative Investment Management
Limited (Dublin); President and a
Director of Pioneer Alternative
Investment Management (Bermuda)
Limited and affiliated funds;
Director of PIOGLOBAL Real Estate
Investment Fund (Russia) (until
June 2006); Director of Nano-C,
Inc. (since 2003); Director of
Cole Management Inc. (since 2004);
Director of Fiduciary Counseling,
Inc.; President and Director of
Pioneer Funds Distributor, Inc.
("PFD") (until May 2006);
President of all of the Pioneer
Funds; and Of Counsel, Wilmer
Cutler Pickering Hale and Dorr LLP
(counsel to PIM-USA and the
Pioneer Funds)
- ------------------------------------------------------------------------------------------------------------------------------------
81
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Positions Held Length of Service Principal Occupation Other Directorships
Address With the Fund and Term of Office During Past Five Years Held by this Trustee
David R. Bock (63) Trustee Trustee since 2005. Executive Vice President and Chief Director of The
3050 K. Street NW, Serves until a Financial Officer, I-trax, Inc. Enterprise Social
Washington, DC 20007 successor trustee is (publicly traded health care Investment Company
elected or earlier services company) (2004 - present); (privately-held
retirement or removal. Partner, Federal City Capital affordable housing
Advisors (boutique merchant bank) finance company); and
(1997 to 2004); and Executive Vice Director of New York
President and Chief Financial Mortgage Trust
Officer, Pedestal Inc. (publicly traded
(internet-based mortgage trading mortgage REIT)
company) (2000 - 2002)
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (59) Trustee Trustee since 2004. President, Bush International, LLC Director of Brady
3509 Woodbine Street, Serves until a (international financial advisory Corporation
Chevy Chase, MD 20815 successor trustee is firm) (industrial
elected or earlier identification and
retirement or removal. specialty coated
material products
manufacturer);
Director of Briggs &
Stratton Co. (engine
manufacturer);
Director of UAL
Corporation (airline
holding company) and
Director of Mantech
International
Corporation (national
security, defense,
and intelligence
technology firm)
- ------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (60) Trustee Trustee since 2004. Founding Director, Vice-President None
1001 Sherbrooke Street West, Serves until a and Corporate Secretary, The
Montreal, Quebec, Canada successor trustee is Winthrop Group, Inc. (consulting
H3A 1G5 elected or earlier firm); and Desautels Faculty of
retirement or removal. Management, McGill University
- ------------------------------------------------------------------------------------------------------------------------------------
82
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Positions Held Length of Service Principal Occupation Other Directorships
Address With the Fund and Term of Office During Past Five Years Held by this Trustee
Thomas J. Perna (56) Trustee Trustee since 2006. Private investor (2004 - present); Director of
89 Robbins Avenue, Serves until a and Senior Executive Vice Quadriserv Inc.
Berkeley Heights, NJ 07922 successor trustee is President, The Bank of New York (technology products
elected or earlier (financial and securities services) for securities
retirement or removal. (1986 - 2004) lending industry)
- ------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (59) Trustee Trustee since 2004. President and Chief Executive Director of New
200 State Street, 12th Floor, Serves until a Officer, Newbury, Piret & Company, America High Income
Boston, MA 021098 successor trustee is Inc. (investment banking firm) Fund, Inc.
elected or earlier (closed-end
retirement or removal. investment company)
- ------------------------------------------------------------------------------------------------------------------------------------
John Winthrop (71) Trustee Trustee since 2004. President, John Winthrop & Co., None
One North Adgers Wharf, Serves until a Inc. (private investment firm)
Charleston, SC 29401 successor trustee is
elected or earlier
retirement or removal.
- ------------------------------------------------------------------------------------------------------------------------------------
83
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
TRUST OFFICERS
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age With the Fund and Term of Office During Past Five Years Held by this Officer
Daniel K. Kingsbury (48)* Executive Vice Since March 2007. Director, CEO and President of None
President Serves until a Pioneer Investment Management USA
successor trustee is Inc.; Pioneer Investment
elected or earlier Management, Inc. and Pioneer
retirement or removal. Institutional Asset Management,
Inc. (since March 2007); Executive
Vice President of all of the
Pioneer Funds (since March 2007);
Director of Pioneer Global Asset
Management S.p.A. (since March
2007); Head of New Markets
Division, Pioneer Global Asset
Management S.p.A. (2000 - 2007)
- ------------------------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (59) Secretary Since 2004. Serves Secretary of PIM-USA; Senior Vice None
at the discretion of President - Legal of Pioneer;
the Board Secretary/Clerk of most of
PIM-USA's subsidiaries; and
Secretary of all of the Pioneer
Funds since September 2003
(Assistant Secretary from November
2000 to September 2003)
- ------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (42) Assistant Secretary Since 2004. Serves Vice President and Senior Counsel None
at the discretion of of Pioneer since July 2002; Vice
the Board President and Senior Counsel of
BISYS Fund Services, Inc. (April
2001 to June 2002); Senior Vice
President and Deputy General
Counsel of Funds Distributor, Inc.
(July 2000 to April 2001); and
Assistant Secretary of all of the
Pioneer Funds since September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Vincent Nave (62) Treasurer Since 2004. Serves Vice President - Fund Accounting, None
at the discretion of Administration and Controllership
the Board Services of Pioneer; and Treasurer
of all of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
84
Pioneer Ibbotson Asset Allocation Series
- --------------------------------------------------------------------------------
TRUST OFFICERS
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age With the Fund and Term of Office During Past Five Years Held by this Officer
Mark E. Bradley (47) Assistant Treasurer Since 2004. Serves Deputy Treasurer of Pioneer since None
at the discretion of 2004; Treasurer and Senior Vice
the Board President, CDC IXIS Asset
Management Services from 2002 to
2003; and Assistant Treasurer of
all of the Pioneer Funds since
November 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Treasurer Since 2004. Serves Assistant Vice President - Fund None
at the discretion of Accounting, Administration and
the Board Controllership Services of
Pioneer; and Assistant Treasurer
of all of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (49) Assistant Treasurer Since 2004. Serves Fund Accounting Manager - Fund None
at the discretion of Accounting, Administration and
the Board Controllership Services of
Pioneer; and Assistant Treasurer
of all of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (33) Assistant Treasurer Since 2004. Serves Fund Administration Manager - Fund None
at the discretion of Accounting, Administration and
the Board Controllership Services since June
2003; Assistant Vice President -
Mutual Fund Operations of State
Street Corporation from June 2002
to June 2003 (formerly Deutsche
Bank Asset Management); and
Assistant Treasurer of all of the
Pioneer Funds since September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (47) Chief Compliance Since January 2007. Chief Compliance Officer of None
Officer Serves at the Pioneer since December 2006 and of
discretion all the Pioneer Funds since
of the Board January 2007; Vice President and
Compliance Officer, MFS Investment
Management (August 2005 to
December 2006); Consultant,
Fidelity Investments (February
2005 to July 2005); Independent
Consultant (July 1997 to February
2005)
- ------------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan is an Interested Trustee because he is an officer or director of the funds' investment adviser and certain of its
affiliates.
The outstanding capital stock of PFD, Pioneer and PIMSS is indirectly wholly owned by UniCredito Italiano S.p.A. ("UniCredito
Italiano"), one of the largest banking groups in Italy. Pioneer, the funds' investment adviser, provides investment management and
financial services to mutual funds, institutional and other clients.
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HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our website: www.pioneerinvestments.com
Please consider the Fund's investment objectives, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about the Fund and should be read carefully before you invest. To obtain a
prospectus and for other information on any Pioneer fund, call 1-800-225-6292 or
visit our website www.pioneerinvestments.com.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
AUDIT FEES
Fees for audit services provided to the Series, including fees
associated with the filings of its Form N-1A, totaled approximately
$136,700 in 2007 and approximately $132,940 in 2006.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no audit-related services in 2007 or 2006.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
TAX FEES
Fees for tax compliance services, primarily for tax returns,
totaled $31,280 in 2007 and $28,560 in 2006.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
Other Fees
There were no other services provided to the Series during the fiscal
years ended July 31, 2007 and 2006.
(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.
Beginning with non-audit service contracts entered into on or after
May 6, 2003, the effective date of the new SEC pre-approval rules,
the Fund's audit committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the services are
determined to have a direct impact on the operations or financial
reporting of the Fund. For the years ended July 31, 2007 and 2006,
there were no services provided to an affiliate that required the Fund's
audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and affiliates, as previously
defined, totaled approximately $31,280 in 2007 and $28,560 in 2006.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has considered
whether the provision of non-audit services that were rendered to
the Affiliates (as defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible
with maintaining the principal accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Ibbotson Asset Allocation Series
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date September 28, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date September 28, 2007
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date September 28, 2007
* Print the name and title of each signing officer under his or her signature.